Giving Compass' Take:

• The author outlines the reasons why funders are not interested in investing in economic development within the Northeastern states of India even though they may need it the most.

• How can the philanthropic sector in India (and other countries) work to make the areas that need more funding noticeable and more of a priority?

• Read about impact investing models that aim to support and enhance education in parts of India.

There has been little or no interest among funders in looking at the northeast region in our country (India). But this lack of attention and investment is impacting not only the development of the communities in the eight states of the region but also the economic opportunities that they have access to.

It is therefore important for all of us in the sector–especially funders–to understand the nuances of the region better if we are to improve the development indicators for the country as a whole.

Here are a few reasons for lack of funder interest in the Northeast:

Most funders are unfamiliar with the region and territory. Twenty years ago, when there was any development report in India and there was data being collected and analyzed, there would be data on all the states and then there would be a category called ‘other states’.

There is limited knowledge regarding the issues facing the states in the Northeast. If you see the different Human Development Reports published by the UN agencies and Government of India, in a survey where they mapped all the districts in India on multiple parameters, the northeastern states fared well on health and education but did poorly on economic development.

There is an assumption that overheads incurred in managing operations in this region will be high. There is also the belief that the ‘impact’ will be less because people ‘reached’ will be lower in absolute numbers.

There is uncertainty and fear regarding the region. There are assumptions made by decision makers in the large cities regarding the intensity of conflict in the region. And, while that might have or haven’t been the case earlier, it definitely isn’t the case now.

Read the full article about investing in northeast India by Biswanath Sinha at India Development Review