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  • Clinton on Micro-Lending and Kiva.org

     A conversation between Bill Clinton and Keith Olbermann of Countdown/MSNBC

    OLBERMANN:  This is the thing that is below the surface here, I would imagine.  Obviously gifts, money, those keep the wheels moving, but the idea of an idea.  Last year the one, the stuck in my mind, were the micro-loans, the idea that you got people going begging in many countries, give them something to sell and all of a sudden you have turned them into door-to-door salesmen.

    CLINTON:  Well, I can just give you an example of that — we can all be micro-bankers now thanks to a little Web site called kiva.org, which made its introduction here last year.

    They came here for the first time.  And one of the people who followed us on the Internet, of the 48,000 people, several hundred of them made their own commitment.  One of them said, I’m going to loan $25 to somebody in Africa to start a business or expand a business.  

    When I featured them in my book and then went on “The Oprah Winfrey Show” and she brought them there, within three days, all of the people in Africa, Asia, Latin America, Afghanistan, every one of their businesspeople was fully funded within three days by people giving between $25 and $200.

    It was amazing.  So now they all will get reports and when their loans are paid back, they can keep them or turn around and lend them again.  These are the kind of ideas that are circulating in the world.  And we can increase the visibility of the good idea.

    And people, even with a very modest amount of money can have a huge impact.  Just think about it.  You and I could become bankers to people and we could monitor their progress and people in their neighborhoods will see and they will look for micro-loans, they have their own ideas, so we can give them a chance to raise their kids with dignity, send their kids to school, and in troubled places like Afghanistan, we marginally increase the chance that peace can prevail because people will see there is a positive alternative to conflict.

     

    Watch the video (Part 3: Clinton's Global Initiative)

  • Uganda: A Little Goes a Long Way

    Frontline PBS Documentary covering Kiva.org and micro-lending.

     

    Microcredit is not new. It's been around in one form or another for hundreds of years. But in the Information Age, a San Francisco company has taken the idea of microfinance and upgraded it for the Web. Radio reporter Clark Boyd first reported about Kiva.org for Public Radio International's news program The World. He now travels to Uganda for FRONTLINE/World, where the first recipients of money collected through Kiva's Web site are building and expanding businesses.

    Kiva, which means "agreement" or "unity" in Swahili, would allow people with a little bit of extra cash to use their credit card or the online money transfer company, PayPal, to lend directly to African entrepreneurs. Kiva got its start a little more than a year ago in Uganda, where it forged partnerships with local microfinance institutes so that each business would be vetted and approved before being posted on the site.

    Boyd travels to Uganda to find out more about the real-world impact of these micro loans, He arranges to meet Grace Ayaa, whose peanut butter business received a micro loan through Kiva. When she fled a brutal war between government and rebel forces in the north, she took refuge in the capital. She takes Boyd to the Acholi Quarter, a poor neighborhood on the outskirts of Kampala, where many people displaced by Uganda's decades-long conflict scrape together a living.

    Most people living here work all day in the local rock quarry breaking rocks used to build houses. The pay is around $1 a day. Ayaa helps people in the quarter out of the quarry work and into a position where they can start viable businesses with the help of a loan. Traditionally, micro credit is offered through banks that charge as much as 35 percent interest or moneylenders who charge as much as 300 percent. Kiva provides loans from individuals at a fraction of the cost.

     

    Read more detail and watch the 15 minute Frontline video.

  • CNBC's John Larson travels to Africa to visit the Kiva Entrepreneurs he has loaned to.


    Watch the CNBC report. 

    (This is a "must see" video!)

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Yes, now everyone of us can!

Poverty in developing countries is a growing concern across the globe. Recent economic conditions have many of us wondering how we can help, even with limited resources. And we want to know that our dollars are being spent wisely. Now there's a way -- become a micro-leding team member at TrueChange.net!

"Microfinance offers poor people access to basic financial services such as loans, savings, money transfer services and microinsurance. People living in poverty, like everyone else, need a diverse range of financial services to run their businesses, build assets, smooth consumption, and manage risk."
Reference - http://www.cgap.org/p/site/c/template.rc/1.26.1302/

TrueChange.net is a team of web masters, web site owners, hosting providers and other internet users established at Kiva.org -- the world's first person-to-person micro-lending website, empowering individuals to lend directly to unique entrepreneurs in the developing world. The beauty of Kiva.org is the transparency of the process.

"Any real solution to the issues of povery, economic independence and self-determination must reach across national and political boundaries in new and inventive ways," says Joseph Maas, team captain. "TrueChange.net is teaming up with Kiva.org because we see the value in micro-lending and wish to build and expand the micro-lending community."

Since inception, micro-lending has produced very positive results within developing countries by encouraging entrepreneurship and business development on a grass-roots level. Unlike charitable contributions (for which no doubt there will always be a need), micro-lending by its very nature sows the seeds of creativity and sustained growth.

Clearly the benefits can reach far beyond the loan recipient. Common examples include:

-- Funding a dairy rancher to purchase another milking cow means that better nourishment is available for the people of his village through the cold winter months.

-- Funding a garment maker to purchase two additional sewing machines results in local employment for six more people. (That's six people that no longer need to work at the grueling rock quarry or at the shoe factory 20 miles away).

-- Funding a carpenter to buy better tools results in local homes with better roofs and windows - and fewer incidents of crippling but preventable diseases such as pneumonia and malaria.

Read more...
 
Purpose driven business?

Does the phrase "purpose driven" as it applies to business refer to a profit driven approach? Or does this imply a faith inspired approach? Both? Neither?

Capitalism in its most basic form is an exchange of one kind of energy for another; Currency in exchange for goods and services, and goods or services in exchange for currency, thus the age old mojo by which we all run our livelihoods. However, it may be most important to keep in mind that which really makes this system work is a good relationship between customer and merchant. (Naturally.) So if good relationships are key, then the next step would lead directly to an expanded and more qualitative field of communication. Of course the best form of this "next step" is one that is unrestrained by fear.

As George Harrison once said, "It's not really the yin, nor the yang, but it's the third element in this symbol, it's the line down the middle that we need to pay the most attention to."

Perhaps the "line down the middle" is the highway that stretches between and beyond all the classic, if not occasionally divisive polar opposites: Us and them, black and white, east and west, rich and poor, old and young, higher and lower (cast/sect), etc. Indeed, the transcendent line in the middle may be the best tool for an exquisitely balanced approach when it comes to any and all business ventures as well as every other kind of human relationship. Indeed a purpose driven approach could be a way of achieving this finer balance.

The internal process here is one where we begin to care just as much for the general human condition as for our own condition. It would follow that running an "environmentally conscious" business within this context as it applies to human affairs, is thereby transformed into a purpose driven approach.

In terms of a faith inspired approach, that great Golden Rule, "Do unto others as you would have them do unto you" also fits perfectly within the framework of a purpose driven business.

But of course, there are questions: Other than keeping up a good reputation with one's customers, how exactly can a purpose driven approach increase your bottom line? After all, the success of any enterprise is usually measured in terms of fiscal health. Is this not true? I suppose a good answer to this question is - The purpose driven approach would be entirely worthless if the world were flat. But thankfully the world is not flat. This is true both physically and metaphorically, thus, "What goes around, comes around." is an axiom that will probably always hold true.

Read more...
 
More Articles...

Noteworthy Quotes

"It is a simple, but powerful concept. Small acts of faith that have
changed the lives of thousands of people who are not looking for
a hand out, [but rather] just a hand."
 
-- CNBC's John Larson, on Kiva.org


"Revolutionising how donors and lenders in the US are connecting
with small entrepreneurs in developing countries."
 
-- BBC
 

"If you've got 25 bucks, a PC and a PayPal account, you've now got
the wherewithal to be an international financier."
 
-- CNN Money

 

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