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Why do we urgently need a culture of giving?

For Movimento Bem Maior

Dec 2021

The answer to this question, which should support our philanthropic actions, lies in the numbers that portray the country's social reality. Data released in November by the Brazilian Institute of Geography and Statistics (IBGE) demonstrate that in 2020 the portion of the population with the highest income in Brazil, which represents 1%, earned 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 lowest level since 2012, standing at R$2,213.

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

The path to reducing inequalities and reducing the gaps that separate the different layers of the Brazilian people involves philanthropy and the promotion of social justice. For much-needed transformations, we must provide people 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 seek prosperity.

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

If we consider the poverty situation we see in all regions, we would need much more donations. There is a mistake that makes it difficult to advance in the objective of improving the general condition of the population, which is the confusion we make of the concepts of tax, donation and alms. Almsgiving does not promote social justice – momentarily helping someone in need can be beneficial, but this is a deeper debate, which involves the awareness of giving back and trying, with the best of our efforts, to give people the opportunity that society failed to offer. It is the Culture of Donation that brings results to the issues we raise, provides social advancement and creates opportunities to change the country's poverty and inequality rates.

For the Culture of Donation to become effective, it will be necessary for business leaders to get closer to social causes, turning to philanthropy. When companies effectively engage in the plan to reduce inequalities, committing to return and share achievements, the result will be the strengthening of society and, consequently, the economy. If we want an economically active, fairer and more egalitarian society, we need to understand that the responsibility for changing the scenario depends on a joint effort between government, companies and civil society.

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

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