(Originally published on 09/11/2015)

An international forum was held today in Beijing to discuss internet finance regulatory policies and share innovative practices, in China and around the world. The event was jointly hosted by the United Nations Development Programme (UNDP), the China International Center for Economic and Technical Exchange (CICETE) and the China Association of Microfinance and Huizhong Wealth Management.

“Accelerating financial inclusion is a priority for poverty alleviation globally. Internet finance is a useful tool that can make a huge difference,” said Mr. Patrick Haverman, UNDP Deputy Country Director. “Today, the nternet has made it possible to enlarge scale and reduce costs for financial inclusion, through platforms such as P2P lending and mobile banking,” he added. 

The Internet Finance (P2P Lending) Innovation Forum was attended by representatives from the People's Bank of China (PBOC), the China Banking Regulatory Commission (CBRC), the State Council Development Research Center, regional financial offices, international organizations, and internet finance companies.

This event was part of UNDP and CICETE’s Building Inclusive Financial System in China programme. In addition to organizing platforms for knowledge exchange among internet finance stakeholders such as the Forum, the programme also plans to establish an inclusive finance research center and cooperate with the Research Department of PBOC to promote internet finance policies and practices.

During the Forum, participants discussed the newly released regulatory guidelines called Guiding Opinions on Promoting the Sustainable Development of Internet Finance, and shared different perspectives on risk management in inclusive finance and international practices. Participants also engaged in a panel discussion around challenges and new opportunities facing China’s Internet finance sector.

Funded by the Huizhong Group, the Forum provided a unique opportunity for regulatory authorities, research institutions and private sector companies to work together to achieve inclusive finance for poverty reduction.

As the first organization to introduce microfinance in China, UNDP has been working since 1994 with the Chinese government to push for inclusive finance for poverty alleviation. With 48 microfinance pilot projects in 17 provinces, the partnership has greatly contributed to the development of microfinance in China.

(Originally published on 11/17/2015)

On Tuesday 17^th November, Beijing, UNDP China participated in the China Philanthropy Forum 2015. This year’s theme was ‘Changes & Sustainability’. The forum sought to promote changes in theory and practice of philanthropy through exchanges and discussions among academia, practitioners in the sector and other related parties in China and abroad. It also aimed to make use of the opportunity to connect representatives from charity organizations, businesses, government agencies, academia and the media so as to promote the healthy development of the philanthropic sector.

UNDP Country Director Agi Veres was part of the opening panel for a discussion on ‘Changes in Global Philanthropy and the Emergence of New Driving Forces’. The event was opened by Liu Jing, Chairman of China Association for Friendship. Ms. Veres mentioned the preliminary results of a UNDP report titled “Unleashing the potential of philanthropy in China” which will be launched later this year in Beijing.

Philanthropy can be a pivotal contribution to sustainable development. Corporate philanthropy and public-private partnerships, in particular, can make up for the failure of government or the marketplace. The UN recognizes that philanthropy played an important role in supporting the achievement of the Millennium Development Goals (MDGs).

With the recent adoption of the new Sustainable Development Goals (SDGs) to eradicate poverty, reduce inequality and combat climate change, it is clear that looking forward, private and corporate philanthropy will play an even bigger role in achieving these new global goals.

As the world looks for additional sources of funding to finance its fight against poverty, inequality and disease, a lot of hope is resting in the rise of philanthropy in countries like China. A strong and healthy philanthropic sector in China, confident in looking outside its borders, will benefit China as well as the rest of the world.

In many ways China today has the unprecedented opportunity to tap into its increasing economic development and its expanding non-profit sector. As the levels of personal and corporate wealth in China are rising faster than ever before, at the end of last year more than 400 billionaires resided in China, surpassing even the number residing in the USA. The total net worth of the 400 richest people in China was valued at around $570 billion USD, a 35% increase from the year before. According to some estimates, in 2012 China's top 100 philanthropists together contributed the equivalent of $1.6 billion to support charitable causes including healthcare, education, poverty alleviation, disaster relief as well as culture and sports.

All of this is a sign that a new culture of giving is taking root here in China, however, there are challenges. Despite the rapid growth in corporate and personal wealth, total charitable giving in China is just 4% of the level in the US and Europe. In many respects, China is still a place where philanthropists are finding it hard to build, promote, and sustain effective charitable organizations.

Due to a combination of public distrust in the sector, an unclear legal and policy environment and outdated regulations that have not kept pace with the fast growth of the sector. Current regulations not permitting independent foundations to fundraise publicly, for example, are slowing innovation and growth. Financial incentives to give to charity remain very small, and the opportunities for fundraising and awareness raising presented by the internet and social media have not been fully utilized. Finally, China lacks clear incentives for organizations and foundations to invest in their human resources and talent to work in the non-profit sector.

UNDP hopes that the new China Charity Law, currently being discussed by the National People’s Congress, will address some of these structural issues and allow this sector to flourish for the benefit of China’s most vulnerable.

UNDP has always incorporated the support for an enabling environment for civil society and philanthropy as a key component of effective development cooperation at the national and global levels.