Thursday, January 19, 2006

Be a Global Microfinacier

I read about this interesting organisation related to Microfinance, called Kiva. It is where ebay meets microfinance! The organisation let you choose and sponsor a business in the third world, you offer 'sponsorship' real time with paypal, then the money will be channel from Kiva to the local charity partner, who lend them your 'sponsorship' and monitor the progress of the business and repayment of the loan. You won't be paid interest on your sponsorship, just pictures and journal of the people you have supported. Kind of intersting concept. Microglobal financier link to microentreprenur. Though there is criticism from major MF organisations of this approach, as it ignore the need to build strong local microfinance institutes. As a pillar of MF is sustainability, microloan should get repaid and reused, treating it as charity fund will not motivate the borrower or the lender to ensure repayment in full. Secondly, another aspect MF promote is saving, the idea is if they saved properly, the community will be able to fund each other for their projects. Instead of relying on external financing. Nonetheless, it is a very interesting idea, imagine World Vision let you bid the sponsorship of a child on the internet...

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