Without Usery: The Kiva model of micro-loaning and it’s potential.
Comments (0) A little over a year ago, I was introduced to an organization called Kiva. According to their website “Kiva is the world’s first person-to-person micro-lending website, empowering individuals to lend directly to unique entrepreneurs in the developing world.” Basically people with funds (as little as $25) loan money to entrepreneurs and small business owners internationally in an effort to spark development and economic growth. You get to choose who you want to loan your money to and see what they intend to spend it on.
One major issue America is facing now is liquidity. The big banks loaned money they don’t have on the promise that the government would sweep in and save the day if the well ever dried up. One problem. Our trusted government was itself running off of credit. In addition to borrowing ungodly sums from foreign investors (often foreign governments) the US Federal Reserve was printing money like Leo DiCaprio in Catch Me If You can, with no guarantee (like say gold) to back up the bills. So now, there is no capital available for budding business venture to launch.
I wonder if micro-loaning could be a crucial tool in dealing with world-wide poverty and fixing American economy. Kiva is paving the way, serving as trailblazers toward development and stability, by simultaneously teaching benevolence and responsibility. If nothing else, micro-loaning maybe able to set an example of responsible lending/borrowing.
