According to the latest data published by the OECD, globally, Spain is the second contributor to development through philanthropic funding, thanks to the BBVA Microfinance Foundation (BBVAMF) surpassed only by the United States and followed by the UK and Switzerland.
Out of the more than 3.9 billion dollars provided by the Spanish private organizations between 2016 and 2019 in recipient countries of official development assistance, more than 3.6 billion have been disbursed by BBVAMF’s microfinance institutions in Latin America, the most unequal region in the world.
“These results reflect our commitment to the 2.8 million low-income people who we support with a model focused on their progress, which has proven its efficiency through the years, and now, it has turned into a fundamental tool for their recovery”, assured BBVAMF CEO, Javier M. Flores.
These data compile the figures provided by 205 organizations from 32 countries that have, between 2016 and 2019, contributed to development with more than 42.5 billion USD, as was published in the OECD’s Private Philanthropy for Development Report in its second edition, Data for Action.
More than half of these funds came from organizations from the United states to which the Bill & Melinda Gates Foundation contributed 38%.
Latin America, the most unequal region on the planet
Latin America is the top recipient region, with 6.7 billion USD, provided mainly by BBVA Microfinance Foundation and large domestic organizations in Mexico, Colombia and Brazil.
Aside from the top Foundation that contributes to development in Latin America, this report confirms that BBVAMF is a world leader, just behind the Bill & Melinda Gates Foundation.
During the launch of the report, OECD Secretary-General Mathias Cormann said: “Private philanthropy for development is playing a pivotal role in providing targeted resources, leveraging private capital, and testing innovative approaches in support of many communities in the Global South. It can be agile in the face of changing conditions to address development needs.”
The report also finds that BBVAMF is the world’s second largest funder in agriculture, followed by Howard G. Buffet and Mastercard foundations, to support development in rural areas, where poverty rates are higher.
It also recommends foundations to aim for high impact assessment standards: 53% of the foundations that participated in this research have a dedicated evaluation unit or department. This is the case for BBVAMF, which works with its own Social Impact Measurement model that allows it to access economic and social information from the entrepreneurs it serves; it uses indicators to inform its decisions and to adjust the design of its products and services tailored to the entrepreneurs’ needs.
The foundations’ contribution to development is more necessary than ever, especially given the devastating effect of COVID-19: 100 million people have fallen into extreme poverty, according to the Global Outlook on Financing for Sustainable Development report, also published by the OECD.