Kiva: Microfinance 2.0
As part of the Engine Group, with its Our Little Bit CSR policy, we at Altogether Digital are always on the look-out for ways of doing our little bit. And via a Tweet by Mike Butcher, editor of TechCrunch UK, I found Kiva.
Basically Kiva is a site which takes the idea of microfinance or microcredit, as popularised by
Muhammad Yunus (who won a Nobel Peace prize for his troubles), whereby people in the developing world are given small loans which allow them to take control of their lives, and mixes it with the collaborative nature of Web 2.0. Essentially Kiva allows you to loan a small amount of money to an entrepreneur in the developing world, so that they no longer have to rely on charity.
The site has partnered with a host of existing microfinance institutions, who are unable to reach out to the global audience Kiva puts them in touch with, so that the loans go directly to those striving to improve their lives. And, being a fully online operation, the site allows you to pay using PayPal; a system most people will be familiar with from eBay - this of course makes the whole process incredibly easy.
Obviously, as Kiva point out, as with any loan there is a risk that you may lose your money.
Lending to the working poor through Kiva involves risk of principal loss.
Kiva does not guarantee repayment nor do we offer a financial return on your loan.
That said, if you’re planning to make a donation to charity anyway, where you are guaranteed not to get your money back, the donations being requested ($25 or £12.66) seem like a price worth paying in order to be able to bring to reality the age-old proverb.
Give a man a fish; you have fed him for today.
Teach a man to fish; and you have fed him for a lifetime
In this case the proverb could probably be amended to:
Loan a man enough for a boat, a fishing rod & a stall, and you’ve set him up for life.
I should at this point mention that we have not yet tested Kiva, so can take no accountability for anything relating to the site. But it’s a great cause and is worth shouting about.
Header image: My Hobo Soul on flickr
