27 May 2008

GPPi publishes study on the role of philanthropic foundations in international development cooperation

GPPi has published a new study entitled “Transforming Development: The Role of Philanthropic Foundations in International Development Cooperation”, the 10th paper in GPPi’s Research Paper series. 

The study examines how much money is spent by foundations on international development as well as where and in which sectors it is invested. It looks at the business model applied by foundations to international development work and overviews the implications of foundation engagement for international development cooperation, specifically for the Millennium Development Goals and the Paris Declaration on Aid Effectiveness. 

The study underlines the widely shared perception that foundations are increasingly becoming players in international development, spending a total of between USD3 - 5 billion annually in the past few years - a trend which is expected to continue. However, the study also shows that these numbers need to be examined critically. First, the numbers alone do not allow any conclusions regarding the actual impact foundations may have in international development; second, given that much of this total is fragmented geographically and sectorally, this amount of money should not be seen as one solid block of funding.

The study also shows how foundations generate new resources and bring innovative approaches to the field of international development cooperation, for example, by bringing a business-like approach to their work in development. This model has great potential to transform the development field, but also has some weaknesses.  There is sometimes a gap between the reality and the rhetoric of foundations’ implementation of this approach to development. This study examines these gaps, and suggests ways to close them. 

The study also identifies some of the challenges the increasing engagement of foundations poses for the international aid architecture. Particularly, it examines the implications of foundations’ involvement for the efforts to enhance donor coordination in developing countries.

This research paper was prepared by the Global Public Policy Institute with financial support from the German Federal Ministry for Economic Cooperation and Development.

To download the research paper, click here.

For a German version of the paper entitled "Private Geber in der internationalen Entwicklungszusammenarbeit: Trends und Herausforderungen", please click here.

For more information, please contact Robert Marten or Jan Martin Witte.

Back to: News Archive