Independent research for global prosperity
As I've mentioned, I've been asked many times whether all the bad press around microfinance in the last few years has affected perceptions among the public in general and funders in particular. Usually in response to this question, I've shrugged and pointed out that Kiva seems to be doing fine.
OK, even if it's not quite what it seems, this is pretty darn cool. (Tip: turn off the sound.)
[vimeo 28413747 600 337]
The idea of helping the poor by giving them loans goes way back. This video spectacularly highlights one novelty in the modern wave: cross-border flows.
Hat tip to @viewfromthecave.
Aside from a quick pictogram, I've said little about this week's story in the New York Times about high and opaque prices in microcredit.
A few thoughts:
Last week on the Kiva blog, Kiva vice president Isabelle Barres reviewed what we know about the impacts of microfinance:
Despite the limited evidence around whether microfinance lifts people out of poverty, evidence shows that microfinance is critical to help poor people cope with poverty, by smoothing consumption and allowing to better deal with emergencies.
I just noticed that Kiva has revamped its individual loan pages. Here's a screen shot of a loan page from March 2007 that I dug up (thank you nau.com), for a loan to Galib Asadov, a hairdresser in Azerbaijan:
Milford Bateman, "a confessed microfinance sceptic" made a serious and novel (to me) charge against Kiva on the devfinance mailing list, that Kiva's cheap capital is padding the profits of any for-profit microfinance banks through which it lends. I tweeted his message, so I ought to share with you the reply I received from Kiva. First Milford:
Most of the verbiage about Kiva recently has come from northerners. Here's Kenyan Margaret W. Karuri, who founded the microcreditor People Microcredit Investment Bureau (PEMCI). PEMCI was a Kiva partner until it was upended by regional violence after the Kenyan election two years ago.
The demand for direct connection is baffling to me since most donors absolutely refuse direct connection to the people in need that are closest to them. Consider: how often do you or your friends take advantage of the opportunity to give directly and establish a connection by giving $20 to the guy standing at the corner with the cardboard sign saying, “Will Work for Food”?
You've read the blog post, scanned the tweets, digested the New York Times story...now see the play. Or read it anyway:
BILL: Hey, what are you looking at there?
PENNEY: Huh? Oh, this? Just the most horrible news ever.
BILL: What? What happened?
