One of my favorite people, Kareem Mayan, just sent along the following note about Kiva.org, a group that matches up Western investors with businesses in the developing world:
I just want to let you know about one of the coolest websites I've found in a long time (and my job at FOX was to find cool websites.)It's www.kiva.org. Kiva aggregates small loans from rich Westerners like you and me (1), and loans the money to entrepreneurs in the developing world who need capital to grow their businesses. This is also known as microfinance (2).
In May last year I lent $25 to Jane Gathiru, a butcher in Kenya, as part of a $750 loan she was looking for. She got the loan in early August, and repaid 10% of the loan a few weeks later. A couple of days ago, Kiva emailed me saying Jane had made her final payment on the $750 loan. This is pretty typical of Kiva--they have an *extremely* low default rate. It was awesome to know that from the comfort of my own couch, I could make a difference.
The coolest part about this is that the money is a loan, not charity. Since Jane has paid back her $25, I have reloaned that money to a family in Cambodia (3). IMHO, it's a way to put my money to much better use than I often do.
To learn more about Kiva (who have also been in Time (4) and the NY Times (5), amongst others (6)) check out this great Frontline video (it's their highest-rated story ever): http://tinyurl.com/yrhzjw
And to loan money, check out www.kiva.org.
[...]
1. You're in the top 1% of the world's richest people if you make more than $50k: http://tinyurl.com/ou2c
2. Muhammad Yunus won the Nobel Peace Prize last year for his pioneering work in microfinance lending at the Grameen Bank.
3. I loaned my money to Ly Leang and her family, in Cambodia: http://tinyurl.com/2zwh85
4. Kiva in Time Magazine: http://tinyurl.com/2c2fc9
5. Kiva in NY Times article: http://tinyurl.com/y4f5ml, and video: http://tinyurl.com/24c5l6
6. All Kiva press: http://www.kiva.org/about/press
Great stuff. I'm all about capitalism, and this is just the kind of globalization that I'm happy to sign up for. Please give Kiva a look and consider a donation. I know I will.
thanks eric! you can donate to kiva itself, or loan money through kiva to an entrepreneur. while i’ve done both, i find the latter to be much more satisfying.