Why do we urgently need a culture of giving?

The answer to this question, which should underpin our philanthropic actions, lies in the numbers that portray the social reality of the country. Data released in November by the Brazilian Institute of Geography and Statistics (IBGE) shows that in 2020 the portion of the population with the highest income in Brazil, representing 1%, earns 34.9 times more than half of Brazilians with the lowest income. While the average monthly income of the richest families in the country is around R$ 15,800, half of the poorest have an average income of R$ 453. Last year, the average monthly income of the population in general reached its lowest level since 2012, standing at R$ 2,213.

Despite our country's great natural wealth, which offers us good prospects for growth and prosperity, we are a nation with much poverty, reinforced by inequalities. Based on the GINI index, used to assess the level of income concentration, Brazil ranks among the ten most unequal countries in the world. The United Nations Human Development Report, released at the end of 2019, indicated that the country has the second highest income concentration in the world, second only to Qatar.

The path to reducing inequalities and narrowing the gaps that separate the various layers of the Brazilian people lies in philanthropy and the promotion of social justice. For such necessary transformations, we must provide those neglected by social challenges with the opportunity to have a dignified life, with access to health, education, housing, basic infrastructure, work, and all the resources that will enable them to pursue their prosperity.

The country we dream of requires a shift in awareness and approach to social action, understanding it as part of the engine that drives growth in all sectors. In the United States, philanthropy accounts for about 2% of the Gross Domestic Product (GDP) – which exceeds US$20 trillion. Here, we are still far from that reality, with a philanthropic index below 0.2% of GDP.

Considering the poverty we see in all regions, we would need much more donation. There is a misconception that hinders progress towards improving the overall condition of the population, which is the confusion we make between the concepts of tax, donation, and charity. Charity does not promote social justice – momentarily helping someone in need can be beneficial, but this is a deeper debate, involving the awareness of giving back and trying, with our best efforts, to give people the opportunity that society has failed to offer. It is the Culture of Giving that brings results to the issues we raise, fosters social progress, and creates opportunities to change the poverty and inequality rates in the country.

For a Culture of Giving to take hold, business leaders need to engage with social causes, turning to philanthropy. When companies effectively commit to reducing inequalities, promising to give back and share their achievements, the result will be a strengthening of society and, consequently, of the economy. If we desire an economically active, fairer, and more egalitarian society, we need to understand that the responsibility for changing this scenario depends on a joint effort between government, businesses, and civil society.

By Christian Klotz, partner at Brasil Capital, a company associated with the Bem Maior Movement. 

This article was originally published on the website of the newspaper O Globo.

Image Credit: Press Release/MBM