Kiva - Empowering Individuals and Groups to be International Financiers

In high school (early 1990s for me), I remember rich and famous people like Bill Gates and Ophrah visiting poor people around the world.  They made donations, gave speeches, started foundations and were hailed as making a difference.  However, there seemed to be a large gulf between “them” (rich, famous people) and “us” (regular people like me).

I thought, maybe in 20 or 30 years, I will be relatively wealthy and successful and make a difference in the future.  It was a vague dream like writing a novel or climbing Mt. Everest — yes it really could happen, but it is extremely unlikely.

Then something amazing happened.  The internet exploded and transformational organizations like Kiva.org enabled regular people like me to become international financiers and helping needy micro-entrepreneurs all over the world.  In my first batches of Kiva loans, I made loans to entrepreneurs in 5 different continents (no Australia yet; Antarctica may be tough :).  The businesses have included farming, a beauty parlor, grocery store, and construction.  Unsurprisingly, 100% of my loans were paid back.  Though these are small businesses and not revolutionary, they serve real community needs and provide a better quality of life for the family - better nutrition, housing as well as education for the children.  Grameen Foundation has conducted some research to capture these quality of life improvements with its “Progress Out of Poverty” metrics.

By using an innovative internet model and strategic partnering with effectively run local MFIs, Kiva.org has empowered ordinary individuals like you and me (and now ordinary communities - schools, businesses and even blog communities to become powerful internationial philanthropists who are giving impoverished people a hand out and not a hand out.

If you love Kiva.org, I encourage you to spread the word and to be “happy microfinancing” as the blogger Gavin put it.

Finally, please check out my Facebook application Cool Duels where you can both help the environment AND earn real money to donate to Kiva.org or your favorite cause.

Kiva Communities

Kiva now offers another exciting way to become part of the microfinance community.  You can team up with friends, classmates or co-workers to form a community group that can pool money together for a loan.

A class of students can gain insight into microfinance and the challenges of the developing world by making a loan to someone thousands of miles away.

A company can gain esprit de corps by working together for a social goal of helping others with a “hand up” rather than a “hand out”.

Each micro-entrepreneur is connected to Kiva through a local field partner.  These field partners have local expertise and ongoing relations with the micro-entrepreneurs.

Whether you have been an individual contributor to Kiva or haven’t joined yet, consider becoming part of a Kiva community.

Welcome

I support microfinance! Small loans can make a big difference. Over one billion people live on less than $1 per day. Many of these people have skills and energy to work, but don’t have the capital to create their own small business. With a loan of $50-200, an individual can buy her supplies for a business and start earning extra money. To learn more, please visit websites at the Grameen Foundation, FINCA and Kiva. The Grameen Foundation uses use microfinance, technology and innovative solutions to fight global poverty. I organized an event for them in April 2007 and met founder and executive director, Alex Counts. Read about the "Big Laughs for Small Loans" event here.

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