I'm going to take a break from my usual whining and judging others to tell you about this really sweet website that has a unique charitable concept, Kiva.org. I learned about it from our old friend, Bill Clinton.
Kiva.org is based on the concept of micro-financing. (Microfinance is the supply of loans, savings, and other basic financial services to the poor.)
You can loan people money in the developing world to help get their small business growing. These people do not have money, collateral or a credit record making it difficult to open a bank account to secure a loan.
Kiva partners with existing microfinance institutions. In doing so, we gain access to outstanding entrepreneurs from impoverished communities world-wide. Our partners are experts in choosing qualified borrowers. That said, they are usually short on funds. Through Kiva.org, our partners upload their borrower profiles directly to the site so you can lend to them.
The cool part is that you dont have to be rich to sponsor a business. Most people give just $25 to get the ball rolling. The default rate is not too shabby. With over two-million loans in action, the default rate is only 0.2%. But you can check out the Risk and Due Diligence page to get up to speed on the details. The best part about sacrificing $25 is that you will get your money back from the small-business owner. After that you can pocket your money or get back into the cycle and loan it to someone else.
I've convinced some people in my family that now that we're all adults we should go easy on the Christmas present thing this year and instead give to others. This is about all I can afford to do charity-wise but I think it's the best bang for your buck, especially when you can keep up with your sponsored business and actually see where you've made a difference.
Genara and her husband seem pleased with the new cow they have!!
They say that all their milk production is being sold to PIL Andina ( factory that process dairy products) and the demand for milk is still growing. So, this is a good sign for Genara because it means more income for the family.
The loan they took from Kiva and its lenders is being repaid according to schedule; so far three payments were made and the fourth one is due by November 30th.
2
Crane
I'm lost
September 2007
NOV 26, 2007 05:03 AM
Sounds pretty interesting, I'm taking a look.
Thanks!
it's a great site. i have 3 loans out, and they're half repaid. as soon as they're repaid, i'm going to redirect that money to other projects. and as soon as i can, i'm going to loan more.
just put out a couple loans. seems like an awesome site. i think i'm going to aim towards having a specific sum of money in circulation (like $500 or something) that just goes right back out once it's repaid
I've had some bad luck with loans I made to West Bank businesses 2 years ago on Kiva. Probably not as bad as the luck that the business owners have had, though.
I still think the interest rates are too high, in spite of their explanation. I think that there are probably ways that you could organize things so that cost can be minimized. I also don't like when people start talking about the profits possible in the micro-lending game. In the case of the loans I made to West Bank businesses given what happened there since I made the loans, I wish I had the option to simply forgive them, but Kiva doesn't offer that.
Ultimately, though, I'm all for empowering people to better their own situations.
I don't disagree with the fact that there is a lot wrong here too. I also work locally to help but nothing interesting or globally relatable enough to write about that others could get involved with from afar.
Emi said:
this is cool and all but there's poverty and shit in people's home countries that no one cares about.
I like what Vandana Shiva has to say about microcredit:
I agree that [microcredit is] an instrument. And it's an instrument in certain context. We need other instruments, too. In Earth Democracy, that's what I've talked about: the instruments necessary to defend the rights to water as a common resource. Credit, loans, money circulation cannot solve the problems of alienation of participating in earth democracy. Privatization of water leading to a high cost of water could be financed by flows of credit, but the solution to access to water is rights to water. Rights cannot be substituted by credit. Rights need to be recognized as rights and collective rights to the common wealth of this planet -- the atmosphere, the water, the seeds, the biodiversity. That needs a rights solution. Credit can come after that rights solution has been offered.
I mean, yeah, microcredit is one way to help people out who are at the bottom of this rotten system where they have to pay for things (like clean water and a decent education) that are basic human rights, things that we should all have equal claim to as a commons. I'm not going to begrudge people this way to help out, but "if we fought for justice there'd be no need for charity."
We gotta have more Robin Hood bandits to balance out the philanthropists. A Robin Hood bandit gives away privately what he steals publicly and a philanthropist, well, you figure it out.
Normally I'd be all indignant about something I wrote an article about a year and a half ago getting another article, but in this case I think the cause is cool enough that it's worth reminding people about, especially just before Christmas.
Emi said:
this is cool and all but there's poverty and shit in people's home countries that no one cares about.
You might be interested in Global Giving. It's similar, though the focus is more on specific, small, local programs organized by non-profit groups rather than on loans to individuals. But it includes projects worldwide, including in the US.
i agree with emi, its not that you cant make donations to local charities but seems like the ones that cater to overseas needs have a much more upfront, in your face approach. i mean you have to go looking for local charities. and by local i mean in this country. it takes a natural disaster or terrorist attack to get people to give here.
i think some peoples think of it as " i pay taxes and they collect welfare,food stamps,etc.. i dont need to do more than that". i say everyone should drive through the smokey mountains or anywhere in the appalachians. go off the beaten path and youd be very surprised. remember that movie "nell" with jodie foster. very stupid movie but in some areas that is not far from the truth. and that goes for probably every state in this country, there are some very poor people without education,internet,tv,newspaper,cars...some dont even know they can get help.
it irks me when i see the commercials that show starving kids overseas, with the bearded guy, showing the colseups of kids in need, and explaining how you can be that kids saviour. they could have made that commercial here and saved enough to feed a family here,for a year, with the travel costs it took to get them there.
SleepyLady
Los Angeles, CA
October 2007
NOV 25, 2007 02:31 PM