Author Archive
Costa Rica: Tropical Paradise?
By Gabriel Francis, Kiva Fellow class 12 in Costa Rica
When asked what they think of Costa Rica most people usually refer to the poster in their local travel agency, white palm beaches, virgin cloud forests, and toucans. Yet, there is a side of Costa Rica that the tour packages pouring out of San Jose regrettably fail to recount. The truth is, while eco-tourism and liberal trade agreements have brought prosperity to some in Costa Rica, many Ticos still live below the poverty line.
Is ignorance bliss? We Kiva Lenders know better.
A Costa Rican family displays the duality of Costa Rica: First class tourist destination on the outside but many families in the inner valleys still struggle.
Happy National Coffee Day from Kiva
by Gabriel Francis, Kiva Fellow at FUDECOSUR Costa Rica
Today, coffee lovers across the United States celebrate National Coffee Day. While you enjoy your daily cup you can take joy in knowing that your Kiva loans help support the independent coffee farmers who made it possible.
A coffee farmer proudly shows of his crop funded by a Kiva Loan. 25% of Kiva loans to Costa Rica support independent coffee growers.
Burgernomics, I’m Kiva Lovin’ It
By Gabriel Francis, Kiva Fellow class 12, FUDECOSUR Costa Rica
With few exceptions, wherever you are in the world there is a McDonalds nearby. From Bucharest to Bangladesh every restaurant has some variation of the classic hamburger, the Big Mac.
So what does a hamburger have to do with Micro-Finance?
Big Mac Index, source: The Economist Magazine
More than you might think. Some clever economists at The Economist Group have found the price of the universal hamburger is a good indicator of future exchange rates. Their research, compiled in the monthly Big Mac Index, is a tongue-in-cheek attempt to gauge the fair value of a currency against the dollar. For example, in Thailand a Big Mac costs 70 bhat, or $2.17. Compared to the base cost of a hamburger in the United States $3.73, hamburgers in Thailand are under-valued. And that means, at least according to the Big Mac Index, so is the bhat.
Kiva deals in dollars with its 119 partners in 53 countries so the local exchange rate has a direct relationship to the health of a partner’s loan portfolio. Could it be possible to predict the financial risk of Kiva’s micro-finance field partners using the Big Mac Index as proxy?
37 New Brushes to Paint the World
by Gabriel Francis, Kiva Fellow class 12, FUDECOSUR Costa Rica
As member of the upcoming Kiva Fellows class 12 (KF12), I am excited but exhausted. Although Kiva Fellow class 11 is still in the field class 12 is already preparing to follow in their steps. Last week 37 new Fellows of KF12 graduated from an intense week of training.
