Life of Joy

Ever wondered what kind of organization goes into the microloan business? Who are these people, and what are they seeking to do?

Here are two:

FUDECOSUR

"The first, FUDECOSUR, funds mostly farmers (about 98% of their portfolio) in southern Costa Rica, one of the poorest areas of the country. They use a village banking methodology, but one that is different from other organizations. The village banks operate quite independently, with the idea that they can be responsible for the economic development in their communities. The organization is really committed to training and financial education, and is working with some communities on organic farming methods and environmentally friendly agriculture practices. They have also received a social performance evaluation using a tool called CERISE, which indicated that they have strong outreach to poor and marginalized communities."

AMK

"I wanted to highlight a loan that was recently posted by AMK – our largest microfinance partner in Cambodia. This loan is the first made by AMK's Special Interest Group Unit (SIGU) – a department within AMK ,designed to serve more ‘vulnerable’ groups that are currently underserved by microfinance services. These groups include women who are victims of trafficking, domestic violence and other gender-based traumas, people living with HIV/AIDS, street people and children and people with disabilities. AMK is currently focusing on assisting women who are victims of trafficking, domestic violence and other gender-based traumas."

http://www.kiva.org/about/inside?category=Kiva+Field+Partners

I have news for and about our KIVA lending team, "Blue Star Wicca and Friends".

1. As badseed1980 pointed out, we 've passed the $4000.00 mark. As of this writing, we are at $4275.00, in fact. This is amazing---particularly since the team has been in place for less than six months. I'm excited and proud of our work. Wooo-hooo!

Here's the link:

http://www.kiva.org/community/viewTeam?team_id=7406


2. KIVA has been involved in some controversy over the last few months. As Bill (our very own Gardnerian) pointed out, their transparency has been criticized, and with some merit. Many of the microloan organizations that post on KIVA have already fronted out loans to the folks whom they list. If the loan is funded on KIVA, all is well. But if the loan expires, the organization may suffer. KIVA has always explained this on its website, but they could have emphasized this information much more clearly, placing it front and center on the initial webpage (they've since altered their site in several ways to make this clearer).

I've had occasional unsuccessful loans refunded throughout my time on KIVA, and it's always made me a little sad. A good deal of the time, the loan was pre-made and the microloan partner has enough money to support it. In these lucky cases, the folks who have been listed on KIVA get their loans anyway. Sometimes, though, it doesn't work out---either there was no pre-loan or the organization had insufficient padding to support the borrower without KIVA's help. In these cases, the person/group whose loan has expired is just out of luck.

In a recent NY times article, one journalist said that the practice of "pre-lending" means that KIVA loaners aren't really loaning to individuals at all--they are just bolstering the grassroots microloan organizations that support them.

I don't think this is an accurate depiction of what's happening, but I do agree that KIVA should make it very clear that their microloan partners often make their loans in advance. Most importantly, I don't think that pre-loaning means that I'm not supporting the person I've chosen.

If I donate money to a small group doing a charity bike ride because one of them is a friend, does this mean I'm not supporting my friend? I don't think so. It does mean that I'm helping out a few extra people, but I'm OK with that. Helping a few additional folks is not a problem for me. If the biking group puts in their own money in advance, and my donation then reimburses them, I'm still OK with it---I feel that I've still offered support to my friend.

But I do understand that not everyone feels this way. I want to make sure that you know about this controversy so you can decide what you think for yourself.

You can read a blog post about this and find a link to the New York Times article here:

http://www.blogcatalog.com/search.frame.php?term=microloans&id=fa18a98ecc7ad256425159d3f95903be

Wow...even people's parents are getting involved.

We have 30 official members and 43 loans. Our total: $1075.00

http://www.kiva.org/community/viewTeam?team_id=7406


P.S. Tolkien fans/sci-fi geeks: we even loaned to a Nazgul. Seriously.

http://www.kiva.org/app.php?page=businesses&action=about&id=125416

1. If you pick one, or at maximum two, organizations to help, you can make a big difference.

2. Once you've funded a critical mass of microloans by doing one or two a month for a year or so, you can just keep reloaning the same dollars as they are repaid without putting more money in.

This allows you keep on giving---and keep on helping---right through tough financial times.



"Ayaba Gloria Kuegah is a young single woman with a real passion for dress-making. She opened her own studio in 2005 after training for 3 years under the instruction of a dynamic woman. Now, working for herself, she works in every possible way to ensure the success of her small business. She is asking for this first loan in order to buy ‘pagnes’ (coloured West African cloth) and fabric so that she can make and sell clothes. With the income from this business, she will be able to support herself."

http://www.kiva.org/app.php?page=businesses&action=about&id=96629

"Meow" - A surprising number of cats lead double lives as international financiers

http://www.kiva.org/lender/john6554

"Leisure Suit Salesman" - "I try to exhibit a professional appearance and pursuade others to invest in red leisure suits... mustache optional" [Photo is priceless]

http://www.kiva.org/lender/jeff9113

"Microstock Group" - a smart idea

http://www.kiva.org/lender/microstockgroup

"David" - "If I didn't [lend it], this money would be going towards beer" [Another great photo]

http://www.kiva.org/lender/david5671

Since wylddelirium turned me on to KIVA, I've become obsessed. Check out this family:

http://www.kiva.org/app.php?page=businesses&action=about&id=23576

"Doryz recycles plastics, nylon, paper and cartons. She works as a micro-entrepreneur with her two small daughters' support, who help her in this challenging job. This is her source of income that supports her 4 children. She lives in her parents' home that is located in the Villa Ingenio in the city of El Alto [Bolivia].

The loan will be used to realize her long yearned dream: to buy a piece of land to build her own home. This is her fourth loan with IMPRO. Her credit history approves her for this loan.

Translated from Spanish by Geraldine Kim, Kiva Translator."

About the Entrepreneur

Name: Doryz Mendoza
Location: El Alto, Bolivia
Primary Activity: Recycling
Loan Requested: $1,200.00 [Generated through individual loans of $25 made through Paypal]

Repayment Term: 24 months - repaid monthly
Loan Use: to buy land
Date Posted: Nov 11, 2007
Date Funded: Nov 11, 2007

My parents are coming to visit today. They were mercifully delayed, so unpacking and cleaning have been happening, thank the Gods.

I don't know what the visit will be like. My mom has no love lost for mage_imbroglio for reasons that are only partially transparent. My dad likes him, but both are worried for me and I cannot blame them, seeing as my last selection in a life partner was so clearly unsuitable.

However...I am really happy, and treated like a goddess every day. It's hard to argue with that.

On other fronts, I have been playing my favorite video game in stolen moments and enjoying it immensely. It makes me happy. I wish I could occasionally make it a 2-or more-player game, and I mentioned this to my honey this morning. My bunny said he would happily play with me as soon as he completes his financial plan for the year and has some available cash with which to play.

Yay! I get to choose investments with another person! It's fun constructing a portfolio alone (shall I plan to buy the slinky little black Small Cap or the classic wide-legged taupe Blue Chip? Both would be valuable additions to my collection. Oh, the fun of creating an elegant wardro---uh, portfolio...)

Even though I don't have available cash to invest right now, I can still plan for the future. It's almost as much fun as doing the actual buying. And then, when you have the cash, you know exactly what to do with it and why.

Sometimes I wish I had an investment club. It's sad when you don't get to share the joy of your hobby with friends. Plus, it's an old adage that people get wealthy in groups, so I guess as I get more into my game, I need a cohort.

Oh, I forgot---today I get to choose a new Third-World entrepreneur to fund at kiva.org. One of my original micro loans was paid off yesterday and I can now re-loan the money (thanks for the heads up, wylddelirium). Oh boy!

I guess that even if my parents decide they hate my chosen life, I will have plenty to keep me happy.

wylddelirium posted a link to this site, introducing it to her LJ friends:

http://www.kiva.org/app.php

I really liked it. The folks I am sponsoring are here:

http://www.kiva.org/app.php?page=lender&action=view&name=sabrina7185&rdr