Workin' It internationally, with Kiva

The concept of microfinance is sweeping the world. Bangladeshi economist Muhammed Yunus, through his Grameen Bank, kicked off the trend by making loans as small as $20.00 to people who could not qualify for traditional loans. In 2006, Yunus and the bank won the Nobel Peace Prize for these efforts. Now Kiva.org has made it possible for regular folks to get in on the action.


Low income entrepreneurs in developing nations have very little access to capital and often a loan of a few hundred dollars is enough for them to begin a new business or expand an existing one. Through Kiva I loaned $50 to Asli Gasimova in Azerbaijan (pictured here), so she could increase the inventory in her market. She's already well on her way to paying me back, as are my other loan recipients, including a carpenter in Iraq who has already paid me back in full -- and that can't have been easy.

I recently heard Yunus speak and he mentioned that some people questioned his focus on entrepreneurship, but he maintains that anyone can be an entrepreneur. Grameen Bank has a program specifically to loan tiny amounts of money to beggars, who use the money to buy trinkets that they sell when they go begging. Apparently, it's been very successful.

There is no guarantee that you'll get your money back if you loan it, although your odds are way better than in any other existing loan market: the repayment rate is above 95%. I think ultimately interest will have to be paid for this trend to sustain itself. But for now, the great feeling of helping someone out goes a long way.

Sorry that sounds so much like a press release for Kiva, but I really am a big fan. Let me know if I've convinced you to sign up.

Monday: an interview with an airline pilot!