Deputy Carolyn Labey told the JEP that as an increasing number of private sector and ethical investors are now becoming involved in philanthropy, the face of aid is changing.
And, in a move which could diversify finance and create local jobs, she said that with Jersey’s reputation as an international finance sector as well as the fact that it already has the necessary financial and legal infrastructure in place, the Island could be at the cutting edge of that change.
JOA – which this year is celebrating its 50th anniversary – is now in the process of approaching companies in the Island and said the move could diversify the finance industry and create jobs.
‘JOA will carry on what we have done previously – the community work, grants and emergency relief – but I think the world of aid is changing,’ Deputy Labey said.
‘It is no longer the white man turning up in the middle of Africa with a clipboard telling communities what he thinks they should do. It is now more sophisticated. I think we need to use the opportunity and our expertise as an international finance centre to be at the forefront of that change.’
As well as the financial expertise which could attract new large foundations, trusts and charities to the Island, Deputy Labey said Jersey already has many existing charities and donors and so it would only be a matter of ‘joining up the dots’ to create an international centre of philanthropy.
Simon Boas, director of JOA – which is the subject of a special anniversary exhibition which opened on Wednesday night at the Jersey Museum, said that in the past aid had been ‘quite siloed’ but added that financial models, such as development impact bonds (DIBs), were now responsible for changing philanthropy.
DIBs bring together a philanthropist investor or government with a private company. The private company will carry out a set project – for example, increasing literacy rates by a set percentage in a particular country within a certain timeframe – and if successful it will receive a pre-agreed sum. The rate the company is paid rises or drops in accordance with how successful an independent assessor finds that they have been at implementing the measure.
Mr Boas said that a similar scheme was already in operation in England to try to stop prisoners from reoffending.
Another financial model which was also gaining traction, Mr Boas said, was impact investing, also known as ethical investing.
‘A lot of people want more from their money,’ he said. ‘They may be an individual or a pension fund who want more than just a financial return but a social return as well.
‘As money floats down to the millennials they don’t want to maximise their return, they want an ethical element. It maybe as simple as: “Don’t invest in arms or tobacco” or they may be happy to take a smaller return if the rest is to go toward a social or environmental cause.
‘This is the expertise Jersey can provide. It will help attract funds to Jersey.’
Mr Boas added: ‘We could turn the Island into a centre of philanthropy. This is not just about our image. This would be a source of jobs in the Island and a way to diversify finance.
‘It could be a source of jobs and pride for the Island – a way of magnifying our already quite large impact for good on the world.’
