2 minutes read
Poverty alleviation in Asia remains a critical challenge despite strides in economic growth. As the most fundamental and pervasive challenge facing humanity, alleviating poverty is both essential and extremely challenging. For example, in the aftermath of the COVID-19 pandemic, it is estimated that an additional 67.8 million individuals in Asia were pushed into extreme poverty. As of 2023, 155 million people in developing Asia persist in extreme poverty, earning less than USD 2.15 per day. Poverty is therefore a daunting obstacle that is difficult for any single entity or intervention to solve.
In this first, in a series of thematic briefs on Faith and Giving in Asia, How Faith-aligned Capital is Tackling Poverty in Asia, we examine how these organisations are using their unique approach to achieve deep and lasting change.
- Holistic Approach
Faith-aligned organisations go beyond basic needs, addressing systemic issues that perpetuate poverty. Take the International Justice Mission (IJM), for example, which tackles abuse and exploitation intertwined with poverty.
- Transformational Interventions
These organisations target individual and community well-being. The Aga Khan Development Network (AKDN) invests in businesses that create jobs and improve local living standards. The Tiger Center combines wildlife conservation with community development through ecotourism and skill development.
- Long-Term Resilience
Beyond emergency relief, faith-aligned givers aim for long-term solutions. The Li Ka Shing Foundation supports disaster victims and rebuilds infrastructure for future resilience. The UNHCR Refugee Zakat Fund prioritises empowering refugees with income-generating assets.
- Public-Private Collaboration
Collaboration between faith-aligned actors and the public sector holds significant potential. Malaysia’s iTEKAD initiative uses zakat and cash waqf to support low-income entrepreneurs, aligning with national goals. Indonesia’s Semua Bisa Makan program leverages Islamic financing to provide meal assistance to the poor.
- Partnerships with Corporates
Faith-aligned organisations can be valuable partners for businesses looking to create social impact. The Shri Kshetra Dharmasthala Rural Development Project (SKDRDP) partners with banks to bring financial services to the rural poor and provides access to affordable insurance schemes through partnerships with insurance companies.
Looking ahead
Millions still struggle with poverty in Asia. The insights from faith-aligned organisations offer valuable lessons for philanthropists, investors, and others in the ecosystem.
- Philanthropists can adopt a two-pronged approach, combining individual-level interventions with community-level initiatives to achieve deeper and more sustained impact.
- Impact investors can explore innovative financing tools and models developed by faith-aligned organisations which align with their values and goals.
- Intermediaries can play a crucial role in connecting funders and resource providers with faith-aligned organisations, facilitating partnerships and exploring new financing mechanisms.
Join AVPN’s Faith and Giving Initiative
Faith-aligned organisations are invaluable collaborators for poverty alleviation. By drawing on the experiences and lessons of faith-aligned organisations, stakeholders in the poverty alleviation ecosystem can develop more effective and sustainable strategies to address this pressing global challenge.
AVPN aims to build a community of faith-aligned givers in Asia. Join us to learn from each other, partner, and co-create solutions that eradicate poverty and achieve a just and sustainable future for all.
- Visit Faith and Giving in Asia for more information on AVPN’s Faith & Giving Initiative
- Join an upcoming learning circle, a small group conversation between peers, on Bringing Stewardship from Philosophy to Practice in Faith-Aligned Giving
- Contribute to the next thematic brief on how faith-aligned capital is driving outcomes in education and skills development in Asia by contacting us at [email protected]
