Microlending

I recently added some advertising for a few charities to this site. One of the charities is the Grameen Foundation, a microlending institution. I have a BA in International Studies, and much of what I did to earn that degree was learning about various save-the-world plans and their pros and cons. After four years, I pretty much knew why the world would never be saved, because pretty much every save-the-world plan has some major problems. Except the Grameen Bank.

The Grameen Bank gives small amounts of money to people in developing regions, which they then invest in what they need to sustain themselves, and pay back the money. Just like any loan, not everyone pays back the money, but it's not a lot of money, so no big deal. And those who do pay back the money gain both capital and experience helping themselves, which is ultimately much more valuable. It's generally an excellent program, and you can contribute to it via the Grameen Foundation.

Today Seth Godin pointed to Kiva, which does the same kind of micro-lending as the Grameen Bank, only without the bank. Rather than give your money to the Grammen Foundation, you give it directly to the people who need it. I have mixed feelings about this.

At first glance, it appears this direct connection primarily benefits donors, who get to know exactly where the money is going. I also imagine this system requires more overhead than Grameen. But it's also more transparent, which is something all non-profits should strive for. And even if it does primarily benefit donors, that should bring in more donors and ultimately benefit recipients. I think I'll give Kiva a little more time to establish a history before giving it my coveted banner ad endorsement, but it's nice to see new activity in microlending.

 
 
 
what do you think about heifer international? through this org., donors can buy pigs and other livestock for those in need. the livestock become more valuable through time and allow the recipients to buy more in the future.

and i'd like to plug accion international, another microlender.
 
 
 
 
I started to write a short comment about the general problem with charity, and it got rather long, so I'm going to make a new post.
 

Be number 3:

 
 
 
knows half of 8 is