Archive for June 10th, 2009
In Defense of Kiva and Microfinance
Why is it that Kiva gets a bad rep for funding MFIs that give out loans to the people who otherwise would not receive them?! Recently, a blog was written on socialedge.org/blogs about a particular experience a “video journalist” had when she visited MFIs in Cambodia and Mozambique and spoke to “countless Kiva loan recipients” while there. The author’s article was based on the fact that “none of them had succeeded at pulling themselves out of poverty” because of these five reasons:
1) The High Interest Rates Being Charged
2) Inadequate Economic Opportunities
3) A Lack of Business Skills/Entrepreneurial Talent
4) Over-burdened Loan Officers
5) Lack of Sustainability
As most of you reading this are Kiva lenders, I want to refreshingly remind you of why the people she met (whom we do not learn much about in her article), were only a few of the 180,000 Kiva loan recipients to date, and do not necessarily represent the experiences of every Kiva loan. These few interviews can be seen in Episode 9 of her documentary series.
I want to use this blog post to layout, from a Kiva Fellow’s point-of-view, how challenging it is to lend to the poor, both fiscally and temporally. Let me share with you how Kiva (and microfinance) not only helps MFIs, and subsequently their borrowers/members, to stay afloat, but is also going to, overtime, help reduce poverty.
5 comments 10 June 2009
Kiva’s First US Loan
Maria Shriver and I just made a loan to Elizabeth, the first US Kiva Borrower- next week Elizabeth is cutting my hair!
The adrenaline rush I have right now going onto Kiva’s website and seeing loans for entrepreneurs in the United States might compare with what sports fans feel when they watch a good super bowl game.
It’s so exciting. I log into my Kiva account and can see the borrowers that we have been gathering the last few weeks all the sudden go active on the Kiva website.
Preparing for the U.S. launch has been somewhat of a “top secret” operation over the last few months and today it’s finally real.
Check out a few videos of some of the borrowers from ACCION USA that are included in the June 10th US Launch!
Joe from Erica Dorn on Vimeo.
Luis delivery service from Erica Dorn on Vimeo.
Gotta go.. Premal is coming on Good Morning America!!!
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My personal interest in US microfinance began while fundraising for rebuilding projects in New Orleans after Hurricane Katrina. Seeing the desperate need for support of small businesses aid and development to strengthen communities, it has become a goal to spread awareness about US Microfinance. I have been thrilled to be the first domestic Kiva Fellow helping launch such a momentous development in US Microfinance.
Check out all of the ACCION USA loans being funded on Kiva.
For more information- kivaprogram@accionusa.org (I’ll be the fellow checking the email) Wonder how many will come in today?
8 comments 10 June 2009
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