MONDAY, NOVEMBER 1, 2010


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The World A15 Brazil elects its first female president


Rousseff, handpicked by Lula, says she ‘will govern for all’


BY JUAN FORERO DilmaRousseff, a formerMarx-


ist guerrilla turned button-down technocrat with expertise in ev- erything from energy to high fi- nance, comfortably won Brazil’s presidency Sunday in a contest thatdemonstratedvoter loyalty to the man who handpicked her for the job,PresidentLuiz InacioLula da Silva. With nearly all of the votes


EMILY WAX/THE WASHINGTON POST


AnjalMalkani visits a shelter for street children that she helps fund inMumbai. “We wanted to give back,” she says of her family.


In India, new wealth brings a rise in giving


As foreign aid declines, a growing number of millionaires do more


BY EMILYWAX


mumbai — The Malkani family made its fortune selling plane tickets and tour packages to India’s fast-expanding middle class, building one of the coun- try’s first online travel agencies. Now the Malkanis are among


a growing number of successful Indian entrepreneurs blazing an- other trail: charitable giving. “Earlier, if an Indian traveled,


it was so rare that 25 people would see themoff at the airport, garland them with flowers and print their picture in the newspa- per,” said Anjal Malkani, whose husband helped her family start the business. “That has com- pletely changed in India, and we’ve been so blessed in our lives to benefit. We wanted to give back.” As India’s wealth continues to


expand, a growing number of millionaires here are finding ways to do more for the poor, especially as cash-strapped for- eign donors, including the Unit- ed States, curtail aid. The philanthropic mood ex-


tends to some of India’s biggest corporations, many of them IT companies at the forefront of India’s boom. India has a long tradition of


giving, and all major religions here — Hinduism, Islam and Buddhism — see charity as a cornerstone of a noble, happy life. Wealthy families have long built wells and schools in their native villages, and even the poorest Indians leave a rupee coin at a temple ormosque. But organized, large-scale giv-


ing by wealthy Indians and cor- porations has only recently be- come common as India’s econo- my soars ahead. “Old money really looked at


alleviating poverty and commu- nity development — largely at factory sites — by providing services and facilities to their workers,” said Priya Viswanath, a philanthropy expert. “New mon- ey giving is really about empow- erment.” The number of Indian billion-


aires grew from 27 in 2009 to 52 this year, according to a report by Bain, a global consulting firm. Half of the top 25 Asian billion- aires listed in a recent Forbes magazine survey were Indian. During a visit to China last


month, Bill Gates and Warren Buffett urged Asia’s billionaires to give more. India’s growing pool of super rich would be their next target, they said.


Where to invest? Indian billionaires give more


than billionaires in China but less than those in developed countries, including the United States, according to the Bain report. The U.S. Agency for Interna-


tional Development gives India $131 million per year to fund girls’ education, farming pro- grams and solar energy projects. But those funds have long been a source of embarrassment for In- dia’s government, which is team- ing up with Indian corporations to help the poor. “Corporations and India’s


growing wealthy classes should be doing a lot more because all profitability is premised on sta- bility,” said Narendra Jadhav, a senior member of Prime Minis- ter Manmohan Singh’s planning commission for economic devel- opment. “The corporation should, out of enlightened self- interest, move forward to join the change of India’s underprivi- leged participating in India’s prosperity.” When President Obama visits


India this month, his meetings with business leaders will focus on ways to strengthen India’s growing middle class and lift hundreds of millions out of pov- erty, senior U.S. and Indian gov- ernment officials said. “The India-U.S. relationship is


no longer one of donor and donee,” said a senior U.S. govern- ment official. “It’s more equal, and we are looking to help unleash that potential.” However, some of the rich in


India say they don’t give more because they question how the money will be spent. “In India, there’s a psychology


of scarcity. So in India, the tip- ping point for philanthropy has yet to come,” said Arpan Sheth, a partner at Bain who wrote the report. “There still has to be more institutions in place to make people feel more comfort- able about giving. There is a significant amount ofwealth cre- ation. Now the question will be what to do with that wealth.” Last month, India’s Tata


Group donated $50 million to Harvard Business School, the largest gift ever received by the institution froman international donor. The gift came days after another wealthy industrialist — Anand Mahindra, a Harvard alumnus — gave $10 million to the Humanities Center at Har- vard. “There was a lot of criticism


here, and Indians asked, ‘Why couldn’t you both give it to India?’ ” Sheth said. “But others felt like, ‘Well, the structure is there at Harvard.’ Everyone knows where the money will be well spent.”


‘Spirit of giving’ Deval Sanghavi and his wife,


Neera Nundy, worked as invest- ment bankers in New York but decided to move back to India. They nowrun theMumbai-based Dasra, which helps prospective donors sift through the country’s 3.4 million registered non-gov- ernmental organizations to de- termine which would do the best work with theirmoney. In March, they held the first


Indian Philanthropy Forum to introduce prospective donors to potential programs. They also host quarterly workshops and visits to school and health proj- ects. “In India, the need is really


there and so is the spirit of giving,” said Sanghavi, who re- cently organized a giving circle of 10 wealthy philanthropists, including Malkani, which will donate $600,000 over the next three years to Mumbai’s public schools. “We want to create a community of do-gooders who canmotivate each other.” On a recent afternoon, Mal-


kani visited SalaamBaalak Trust, a shelter she helps support. The children there were preparing for a party celebrating Diwali, one of India’s most important Hindu holidays. A large Indian bank was spon-


soring the party, and dozens of young professionals, BlackBer- rys beeping in hand, had come. Some seemed overwhelmed at first, but within a few minutes, they were dancing with the chil- dren. As sweetswere brought out for


the children, Malkani explained that her father had been a mid- dle-class family doctorwho often helped feed his less fortunate patients. One day, a client who couldn’t afford to pay his bill left him a deed to his struggling travel business. The Malkani family later found the deed and decided to start their own com- pany. “My father’s family was


blessed by his act of generosity,” Malkani said. “I hopemanymore people like me start giving in India. Kindness is how we over- come all suffering.” waxe@washpost.com


countedintheworld’s fourth-larg- estdemocracy,Rousseff,62,Lula’s former chief of staff, had 56 per- cent of the vote to 44 percent for the challenger, Jose Serra, 68. On Jan. 1,whenshe is swornin,Rous- seffwill become the country’s first female president. “I offer special thanks to Presi-


dentLula,”Rousseff saidinavicto- ryspeechinthecapital,Brasilia. “I willknowhowtohonorhis legacy. Iwillknowhowtoconsolidateand go forwardwithhiswork.” Political analysts consider the


outcome in Brazil to be a strong show of support for the mix of generous social programs and prudent economic management. Brazilians credit Lula, who rose from shoe-shine boy to factory worker to leader of a country of almost 200 million, with trans- forming Brazil into a modern na- tion with a world-class economy and increasingly potent middle class. That sense of pride in what


Brazil has become led Manoela Monteiro, 27, a teacher, to vote for Rousseff inSaoPaulo.UnderLula, she said, she thought that her money had more buying power, and she bought her first car. “I voted for Dilma because I think the government has to continue the way it is, which is very good,”


Dilma Rousseff


SILVIA IZQUIERDO/ASSOCIATED PRESS


Asupporter in Sao Paulo celebrates the victory of Dilma Rousseff as president of Brazil on Sunday. Brazil’s president-elect is the


she said. Under


Lula, more than 20 mil- lion Brazil- ians rose out of poverty, 30 million joined the lower-mid- dle class and


the country’s historic, yawning gap between rich and poor got a little smaller. Brazil also joined a select group of countries given investment-grade status by inter- national credit agencies, and it emerged fromthe 2008 economic crisis stronger thanbefore. TocapoffLula’spresidency,Rio


de Janeiro last year was awarded the 2016 Olympics, which many Brazilians sawas amilepost. Hailed as “my man” and “the


most popular politician on Earth” by President Obama during a 2009summit,Lula,now65,hasan approval rating that tops 80 per- cent.


daughter of a well-off Bulgarian immigrant father who raised his family in the prosperous city of BeloHorizonte. In the 1960s,with Brazil ruled by amilitary dictator- ship, she joined a rebelmovement and, according to Brazil’smilitary of thetime,becameanurbancom- mander. Rousseff has told Brazilian re-


porters that her role in that era was political and did not involve violence. “I wore thick glasses, and I did not shoot very well,” the SaoPaulonewspaper,Folha,quot- edher as saying. After her capture by the securi-


ty forces in1970, shewas tortured. That included hanging upside down fromametal bar, herwrists wrappedtoherankles inanexcru- ciatingly painful position called the “parrot’s perch.” Releasedin1973,shecompleted


her studies ineconomicsandwent ontomanagethefinancesofPorto Alegre and the energy policies of Rio Grande do Sul. A decade ago,


she joined the Workers Party, caught Lula’s attention and, in his first term,becamehis energymin- ister. Shewas laternamedhis chiefof


staff,which in Brazil is a powerful position fromwhichRousseff had control of the country’s vast bu- reaucracy. “Peoplewho doubt her abilities


are plain wrong,” said Riordan Roett, author of a recent book, “TheNewBrazil.” Foreign investors and business


interestswill bewatching to see if Rousseff will take on nagging problems ranging from a Byzan- tine taxationsystemtoanoverval- ued currency. Some analysts also say shehas to reininspending. “The Lula administration over-


spent almost with abandon,” said AmaurydeSouza,aRiode Janeiro business consultant. “And a bill will come due.” foregoj@washpost.com


PaulaMoura contributed to this report fromSao Paulo.


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