Investment, not Charity

Call me selfish, but I’ve never been a big fan of charity. I don’t mean things like giving time or money to help find a cure for cancer or to help the EFF to keep fighting for freedom. I’m happy to give a little to the EFF. I don’t like charity that’s just a hand out. I don’t care if its to corporations or individuals. I think its entirely counter productive and cultivates dangerous dependencies.
This is why I love the idea behind Kiva. Kiva connects people in developing nations who need micro investments with people who want to give micro investments. Each investment seeker works with a local NGO, posts a profile of themselves, thier need, thier projected repayment period and the amount of investment (rarely anything over $1000). Kiva shows you a bar of how much of their needed investment has been contributed so far.
I dropped into my new Kiva account $50 that has just been sitting in my PayPal account for months doing nothing. You probably have a few dollars sitting you PayPal as well, also doing nothing. I then looked over a number of business opportunities in areas of the world I’m interested in helping, and loaned $25 each to two latin american women trying to grow their little shops.
Check out Maria Pilco and Melvis Merchan. I know my portfolio isn’t terribly diversified, but these businesses had the shortest repayment periods, and I want to see if this really works before investing more. Remember, this ain’t charity.
I don’t know if they actually get the money (Kiva promises the businesses get 100% of your loan), or if I’ll ever see it returned. But for $50, and the amount of good a model like this could do in the world, I feel that its more than worth the risk.












