PO’d Kiva lenders team up to spread outrage over U.S. lending
Kiva, the self-described “world’s first person-to-person micro-lending” Web site whose stated mission is “to connect people through lending for the sake of alleviating poverty”, has some of its participants fuming over an apparent change in the site’s business model that now allows loans to be made to people in the United States.
Kiva allows you to browse profiles of various would-be entrepreneurs from around the globe and then facilitates the funding of so-called micro loans to the them.
The loans are typically re-paid in installments over the course of a year, during which time lenders are kept apprised of the entrepreneur’s progress through journal updates on the Web site, which also tracks repayments.
The current popularity of micro loans — the United Nations declared 2005 as the Year of Microcredit, according to Wikipedia — can be traced to the Bangladesh-based Grameen Bank, which, along with its founder Muhammad Yunus, was awarded the Nobel Peace Prize in 2006.
What’s got the Kiva dissidents worked up is the notion that micro loans are intended to go to folks living in poverty who live in dire circumstances and don’t usually have access to credit from any other sources.
The groups screed, which can be found on the community section of Kiva itself, says that by including borrowers from the U.S. Kiva, “has undermined the very core of what made it so unique and special; impactful contributions to impoverished entrepreneurs in developing countries.”
Team PO’d cites an example of “a recent Kiva loan request from a US man with a four year college degree in architecture and many years experience in that field. He decided he wanted to do something different and try his hand at website design. He was looking for $7,000. He got it…so that’s $7000 which previously would have been available to perhaps 7-10 other borrowers in developing countries.”
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It is unfortunate that Kiva supporters are taking such a hard line on this. There is tremendous need in the US for disadantaged individuals and families to find opportunities to achieve self-sufficiency. This is a world issue of which the USA is not exempt. While most Americans don’t feel there is parity in the need, there is need.
I wonder if we are getting the whole story of this entrepreneur who received a small loan? Perhaps he lost his job in architecture. Maybe he has exhausted his unemployment benefits. Maybe his home is in foreclosure and he has lost his life savings due to our financial crisis. More would need to be known to judge.
Microfinance is an exellent and proven tool in moving families out of poverty in developing countries. Costs and loan sizes are minimal as economies are far different. Micro-Lending (microfinance in US terms) is also an excellent and proven tool in moving families out of poverty in the U.S. Kiva may have to address this concern with regard to their mission; regardless this work in the US is valid, important, and should be supported.
I would hope that those who support Kiva and international development would also support the need and the good work being done in other parts of the world.
The guy that started this particular Kiva TEAM has SPAMMED almost every other Kiva Team with the viewpoint that people in developed nations are not deserving of microfinance loans. Most people on Kiva are inclusionary, not exclusionary, and thus support the OPPORTUNITY for anyone, anywhere to APPLY for a loan.
I myself, do not as of yet give loans in developed countries, as my lending capital is very low, but if I find a deserving recipient of my loans, I want to be able to give one.
Kiva lenders should not be outraged by Kiva partnering with a U.S. lending organization.
Kiva is a media platform that raises money for Microfinance institutions. It takes advantage of the ’social’ aspect of microfinance because it is easy to highlight the microfinance clients who have small businesses and need money. Kiva allows lenders to select who they want to lend money too. Kiva does not actually run any Microfinance Institutions and does not actually lend money to any individuals. My only hope is that Kiva takes care to select organizations to partner with that diligently use the money that they receive from Kiva.
That being said, Kiva has created a successful platform that has taken philanthropy from pictures of starving kids on T.V. to Web 2.0. Kiva has played a part in making microfinance, a top development economic tool, an everyday word. Credit is needed around the world and Kiva lenders should decide where they feel their money will have the best ‘impact’ or ‘returns’.