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    Kiva: An Innovative Way To Help People In Third World Countries

    EDITOR'S COMMENT:

    If you, like me, are always on the lookout for how you might make a difference in the world without wasting time or squandering resources, I encourage you to check out Kiva:

    http://www.kiva.org/

    I was so impressed by what they are doing that I signed up, tonight, to help four people/families -- two in Tajikistan, one in Afghanistan, and one in Peru. And once these folks have repaid the "micro-loans" I've given them, I plan to reinvest this money (and probably more) in others in need.

    Here's how Kiva describes their program:

    "You can go to Kiva's website and lend to someone in the developing world who needs a loan for their business -- like raising goats, selling vegetables at market or making bricks. Each loan has a picture of the entrepreneur, a description of their business and how they plan to use the loan so you know exactly how your money is being spent -- and you get updates letting you know how the business is going. The best part is, when the entrepreneur pays back their loan you get your money back -- and Kiva's loans are managed by microfinance institutions on the ground who have a lot of experience doing this, so you can trust that your money is being handled responsibly.

    "It's finally easy to actually do something about poverty -- using Kiva you know exactly who your money is loaned to and what they're using it for. And most of all, you know that you're helping them build a sustainable business that will provide income to feed, clothe, house and educate their family long after your loan is paid back."

    Take a look:

    http://www.kiva.org/

    --- David Sunfellow

    -------------

    VIDEOS:

    FRONTLINE ON KIVA

    NICHOLAS D. KRISTOF ON KIVA

    -------------

    KIVA
    Oprah.com

    Original Link

    A revolutionary idea has made it possible for anyone to help people in Third World countries via the Internet -- and it can be addictive! Visitors to Kiva.org can read the story of someone who needs help starting a small business. For as little as $25, they can choose a loan to partially finance -- and help lift someone out of poverty in the process. Kiva's thousands of success stories include a peanut butter stand in Uganda, carpet weavers in Afghanistan and a fruit vendor in Vietnam.

    Even if their business partners are halfway around the world, lenders can check on the progress of the venture via e-mail. "You feel as if they're family, and you root for them," says Ann Brown, who lent money through Kiva. "You know their names and they become like these little celebrities in your life."

    Financing a loan through Kiva gave Ann the chance to help a small business owner in the same way a lender once helped her. Twenty years ago, Ann was a struggling artist who wanted to start a handbag business -- but she couldn't afford to buy the materials.

    Then Ann got the lifeline she desperately needed -- a small loan to get started. Now that her business is thriving, Ann says she wanted to give back. She visited Kiva.org, and decided to help Martiza, a mother of two living in Ecuador who wanted to start a business. Once the loan is paid back, Ann says she can look for someone else to help. "It feels wonderful," she says. "It's the ultimate shopping experience!"

    Matt and Jessica Flannery were newlyweds working in East Africa when they came up with the idea for Kiva. According to Matt, $10 million in loans have been made through the organization -- and 99.7 percent of the money has been repaid!

    Matt says it takes about 1.5 days for the average entrepreneur to receive funding for a project through the website. "We use PayPal, who provides us free payment processing," he says. "People loan through PayPal through Kiva, and we wire that money directly to the field partner that gives it to the entrepreneur."

    Jessica says she and Matt were first inspired by seeing entrepreneurs in East Africa doing great things with their families with small amounts of money. "It's their shot. And they just soar. They take it and they run with it," she says. "So to see so many borrowers, to know that that's happening with thousands of individuals because of Kiva, but also to know that other people can be connected and participate in the stories the way that we were."

    -------------

    CHANGING THE WORLD ONE LOAN AT A TIME
    GOT $25? BECOME A KIVA LENDER AND WATCH YOUR MONEY TRANSFORM A LIFE
    By Jen Brown
    MSNBC
    August 31, 2007

    Original Link

    When the women in a San Francisco mother's group called the Pace Mamas read about Tahira Ramzhan, a 25-year-old mother of four struggling to raise her family in Kabul, Afghanistan, they immediately wanted to help.

    "We wanted to connect with her, to send her a message that a group of women in the United States cared about her and her family," Pace Mama member Brandi Bernazzani via e-mail. "We knew how much the support and community of other women had meant to us, especially when we felt unsure and overwhelmed."

    The mothers used a Web site called Kiva to lend Tahira $25 each, money she used to buy a loom and raw materials for her carpet weaving business.

    "A few clicks of a mouse have connected us to the hearts and lives of women half a world away. And that means something to us," Bernazzani said.

    'Charity' in the 21st century

    Kiva has re-invented lending in the 21st century. Anyone with at least $25 can log on to the site, browse the profiles of entrepreneurs in third-world countries and choose which cause to support.

    "What struck me most was the interconnectedness that I felt instantly," said Jessica Garcia, one of the Pace Mamas lending to Tahira. "There's this woman. I can relate to her. She's raising a family, and we're raising a family… And so I could see this person and see this woman who is making her life and that we can touch each other in this kind cyberspace way was important to me."

    But the money is not a gift. Like all Kiva clients, Tahira is repaying her loan on a monthly basis. In fact, Kiva partners have an incredible repayment rate of over 99 percent. Once repayment is complete, lenders can either keep their money or redistribute it to another entrepreneur.

    Yvvonne Thoroughgood, a midwife in England, has rolled over her loans to help almost 200 women since she discovered Kiva while watching a documentary in May. The women profiled in the piece reminded Thoroughgood of her own mother, who raised nine children on her own in a poverty-ridden Jamaica town.

    "(Coming) from a poor family, I can directly relate to the needs of those who are in poverty and applaud Kiva in being able to give the first step out of it," Thoroughgood said via e-mail. "If I can help one person and make their life different, then I am happy."

    Empowering women around the world

    Lenders have already touched thousands of lives since Kiva was founded by Jessica and Matt Flannery in 2005.

    Shortly after the couple married, Jessica went to Africa to work in microfinancing; Matt headed to Silicon Valley to work for TiVo. It was while Matt was visiting Jessica that he realized how their two worlds could work together, and Kiva -- which is Swahili for "agreement" or "unity" -- was born.

    Since then, over $10 million have been loaned to entrepreneurs in 36 countries, and the overwhelming majority of these loan recipients are women.

    "I would say definitely Kiva is a tool and a resource for these women to become empowered, not just at the head of household level, but in their own community," said Olana Hirsch Khan, Kiva's Chief Operating Officer. "These women in the community now are allowing their children and their daughter to see that being a successful business woman is attainable and that's something that I think Kiva has empowered them to do."

    Changing lives one loan at a time

    The loan provided by the San Francisco Pace Mamas has drastically changed the lives of Tahira and her children. Tahira has been able to hire two employees to help her weave carpets, and has plans to expand her business.

    "With having this money we could improve our livelihood and the future of our children," Tahira said through an interpreter. "If we did not receive this money we could not improve our lives and would be working as daily labor."

    "I really appreciate and saying thanks to those mothers in U.S. who provide that money."

    Tahira and the borrowers aren't the only ones empowered because of Kiva; those San Francisco Mamas feel inspired as well.

    "This really provides a connection," Bernazzani said. "It makes you feel like, 'Gosh, I can do something!'"

    posted @ Monday, October 01, 2007 6:40 AM by sunfellow

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