Recession and Donations

The world is facing an economic crisis of unimaginable proportions. Economic activities have slowed down all over the world ( including India , though our government will like us to believe otherwise). USA's GDP is expected to contract by atleast 1.5 % in 2009, India's GDP is expected to grow by 6 % ( against 9.7 % in the previous year) , China the world saviour will see a slow down but still expected ( or hoped !!! ) to grow at a rate higher than 7 % in 2009. The world's GDP will grow by a mere 1 % in the same period.
Now view these economic growth / contraction against population growth figures. The world's population is growing at 1.19 % per annum. USA's population growth rate is 0.883 % per annum. China's population growth is at 0.629 % and India's at 1.578 %. You do not have to be an economist to work out the per ca pita growth in USA / China and India based on growth rates given above.
You will see a very small drop in per capita in USA and a resonable increase in per capita in India and China. The figures may show a small change from the figures of 2007 but the " R " word is having a catastrophic effect on people's psyche. Now lets come to India and see how the "R" word has started affecting the poorest of poors.
Till the third quarter of 2008 the donations to NGOs working for poor , donations to hospitals serving the poor, donations to every activity which helped the poor were robust. Corporates and individuals were playing their part in exercising their responsibility towards the less privileged. The situation changed drastically from October of 2008. All such donations drastically reduced . The reduction in such donations / grants were by almost 35 %. The poorest of poor were thus impacted the most despite technically India not being under any form of recession.
While the donations and grants to help the poor has reduced from Oct '08 the offerings by people at various temples / other religious places has seen an increase of almost 40 %. What does this show - people are ready to help others only when they feel good about themselves and about the future. Once that feeling 'good' factor is under stress people tend to become self centered and selfish. Whatever extra they have is given to God so that the almighty will remember to help them before any one else.
Coming out of recession is a slow process and more than financial stimulus it requires emotional cleansing so that we start feeling good about life and future once again. Only then will people start spending and helping the needy.


My next article will be on Degree Vs Pedigree. Here we will see how the recruitment yardstick for middle and senior level management has changed post economic slow down.