A world full of bankers to the poor

I first learned about the microcredit site Kiva.org during the holidays, when I was feeling particularly unhelpful to the world. It was such a great find. Kiva links small businesses in developing countries with people willing to loan them money. Suddenly I had the ability to help someone on the other side of the world take a step toward financial independence.

With $25 ready to loan, I pored over the list of cab drivers, farmers, shopowners, and more on Kiva’s site, not knowing how to choose.

Each person had a picture and a few sentences about why they needed the loan, but beyond that, I guess I was just waiting to feel a connection, a tug in someone’s direction.

Finally, I came across Narish, a 44-year-old businesswoman in Azerbaijan, east of Armenia. Narish had slowly built up a perfume business and was renting a store, and she wanted $2,000 to buy the place outright. A female entrepreneur. I felt a tug.

I made the loan and left Narish a comment on Kiva’s site saying good luck. A couple of months later I got an email from Kiva saying she had made a repayment of more than $300, meaning $4.18 for me. I checked the comments, just for the heck of it, and there was Narish, saying thank you to me.

The idea of microcredit has been around for quite a while, but it’s only recently getting worldwide attention, thanks in part to the 2006 Nobel win for Muhammad Yunus and Grameen Bank.

Check out this video from New York Times columnist Nicholas Kristof. He recently wrote about Kiva (loans) and about Global Giving (donations), and overnight his blog was jammed with comments from people who decided to make microloans, people who recommended more organizations, and people who pointed out that giving doesn’t end by clicking a few keys on a laptop.

There’s a lot to say about microlending. But the most important thing to say is that someone thought of it, and instead of tossing the idea in a pile labeled “Ideas That Will Never Work,” they tried it out. And now look where we are. The Nobel committee says it’s working, and thousands of people worldwide say it’s making a difference in their lives. And it’s an idea that created many, many opportunities for people to jump in and help. Not to mention it started a worldwide dialogue about an innovative new way to help communities out of poverty.

As a member of humankind, you have the ability to start from where you are. Even if you can’t see it, change is within reach.

Coming soon, we’ll bring you a story about Grameen Bank founder Muhammad Yunus.