Philanthropy in India: Role In Science

 

Mahatma Gandhi’s idea of concept of philanthropy was, “I shall pass through this world but once. Any good, therefore, that I can do or any kindness that I can show to any human being, let me do it now. Let me not defer or neglect it, for I shall not pass this way again”. Philanthropy in India dates back to several thousands of years where temples used to be first and foremost institutes of charity. There has always been the rich tradition of the businesses contributing for social welfare in our land. As individuals began to prosper from the mid 19^th century charity began to eventually flow into the society for the less privileged. Indian philanthropy sector is presently valued at $5billion or 30,000 crores.

Developing countries like India have been struggling over years to achieve large scale healthcare where large huge chunk of population lack access to health care. India even has a long way to go to reach the Millennium Development Goals (MDG), a feat accomplished by developed countries like US decades ago.  Hence the priorities for philanthropic initiatives are different those of developed countries. Presently Indian Government is making strategic investments in reproductive, maternal, new born, child and adolescent health (RMNC+A) to reduce maternal and child mortality.  Health care, education and providing basic amenities have become a key focus of the corporate philanthropic initiatives too. They are supporting even skill development initiatives. Currently 320 million population of India is in age group of 6-16. They are going to be future work force hence engaging them productively would be first and foremost step in the process of nation building. Over the years large industrial houses have recognised that wealth creation wouldn’t have been possible but for the countless others and hence have decided to give back to larger sections of the under privileged and marginalised sections by donating lump sum amounts towards health, education and environment.

After opening up of Indian economy two decades back Indian industrial units have generated considerable amount of wealth. Further, the breed of the new industrialists have realised that further wealth generation would be difficult if they fail to address the issues of basic amenities and infrastructure available to all. Non-state investments have to be generated by private agencies. India with its fiscal and budgetary allocations cannot fund the basic amenities and hence mandated corporations’  with net worth of 500 crores or turnover of more than 1000 crores to mandate 2% of their last three years average profits on Corporate Social Responsibility (CSR). Ministry of Corporate Affairs have set out guidelines for businesses, setting out social, environmental and economic responsibilities in 2011. As per World Bank estimates, CSR spend in India for the year 2009-10 was USD 7.5 billion against public sector spend of 700 million annually.  

Science in India suffers from shortage of funds and most of the scientists lament about the poor investments made in field of science and technology. Science in US is facing similar doldrums as the federal financing towards scientific research has been drastically reduced. Now billionaires in US are shouldering the responsibility of footing the science bill. The way in which science is practised and paid for is undergoing a profound change. Science has become more of private investment with superrich pitching in investments and announcing millions of dollars of their personal property for scientific initiatives. Some of the note worthy investments were from co-founder of Microsoft Paul Allen has set up brain science research institutes at Seattle. Fred Kavali a real estate and technology billionaire has started brain research centres in Universities of Yale, Columbia and California.

The elitist class of the super rich in US are inching forward to reinvent themselves as patrons of social progress through investments in scientific research. They are already making headlines for their enormous contributions through foundations that are waging a relentless war against communicable diseases, malnutrition etc across several under developed and developing nations. Now they intend to break the walls that separate the academia and industry and began laying down firm bridges to utilise scientific discoveries into effective treatments. They are rekindling the scientific temper by financing the explorations aimed at unravelling some of the amazing mysteries like the sudden disappearance of the dinosaurs, venturing into private deep space exploration missions and even trying to beat out the federal funding by pouring in millions of dollars towards undersea crafts and giant telescopes.

Philanthropy in the new age is dictated by individualistic priorities and the entrepreneurial outcomes. Perhaps this is the reason why most of the patrons complain that basic research is on back foot now. Over the centuries, people have rigorously worked in the field of basic research to reach the level of the technological competence we have currently. Feel good and fancier fields like the environmental studies and space explorations are receiving much patronage under the new philanthropic initiatives.

Though India doesn’t lag too far behind US but they don’t share the similar mindset as the Westerners do. There is one serious cultural barrier affecting Indians to donate personal wealth due to their strong family bonds. Indian parents tend to transfer their wealth to their offspring unlike the western counterparts. Westerners use their personal wealth for social causes and the greatest examples have been Bill Gates, Melinda Gates and Warren Buffet who have pledged millions of dollars for philanthropic causes. It will take years for such cultural change to slowly creep into our Indian system. But currently our Indian society is highly driven by the strong feeling of joy of giving. As the ease of doing business improves, corporate sector would be able to divert more funds towards philanthropy.

In India the major centres of excellence have been the outcome of the culmination of the scientific vision and the generous contributions of wealthiest families. To name a few IISc     (Indian Institute of Science), TIFR (Tata Institute of Fundamental Research), TISS( Tata Institute of Social Sciences), BITS Pilani( Birla Institute of Technology and Science), Dalmia Institute of Management stand as the tallest examples of the contribution of the super rich in institute building and also for laying foundation for developing a scientific temper in India. The Tata’s, Birla’s and Dalmia’s, Muruguppa Group, Agarwal’s and Goenka’s were the major contributors towards setting up of schools, colleges and hospitals. May be the younger generation of HNI (High Net Worth individuals with more than USD 1 million) should envision the need for sustainable development through rapid innovations by boosting scientific research through investments in science.

Bain India Philanthropy Report gave encouraging trends about charity in India. The average contribution of HNI has risen to 3.1% of their income. India is now leader in private giving compared with other developing countries like China and Brazil. More than 70 % donors are first time givers and more than third are 30 years old or younger. India’s private donations account to 0.3 to 0.4% of GDP as against 2.2% of GDP in US. It is really a welcome trend that the younger generation are more inclined to the concept of giving.

Some of the major  philanthropists in the modern times include Ratan Tata through the Ratan Tata Trust, Anil Agarwal of Vedanta Resources Kiran Mazumdar Shaw of Biocon, GMR group through GMR Varalakshmi foundation made generous contribution towards underprivileged and their clinical care. Ronnie Screwvala of UTV, Nandan Nilkeni had donated crores towards safe drinking water, water purification, harvesting and getting assured water supplies to poor. Shiv Nadar the second highest contributor focuses on education initiatives and expansion programmes. Azim Premji with donations worth 12,300 crores pledged a quarter of his wealth has set a precedent in corporate philanthropy in India. His contributions are directed for upliftment of poor through education and other social development projects in India. He is the third non-American to join Philanthropic club. He is also the first India to sign Giving pledge led by Warren Buffet and Bill Gates.

 

 

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