Did you see the report about Kiva on TV last night? The Business Nation guys were highlighting the rapid progress that has been made at the Kiva micro-loan website. It gave me confidence that we are on the right track promoting Kiva here, because the report came out very favorably - and let's face it, if anyone is looking for a hole in a "$25 loans can change the world" plan, it is the hard-nosed business people at Business Nation.

Developing fast

In their first year, the Kiva website channeled $1m worth of small loans direct to budding business men and women in Third World countries. This last year, $15m worth of loans have been transacted. Not a bad growth rate. And the cheering aspect is that growing numbers of ordinary people like you, me and Polli are funding the loans, $25 at a time.

Micro business mega returns

We aren't talking about financing Bill Gates' type businesses. Think lower than low tech.

One Kenyan guy was a bicycle taxi, pedaling people around town, around potholes and around piles of garbage for 14 hours a day. With his loan he bought a new bike and set his wife up with a road-side restaurant selling beans and rice. They were doing great and had moved out of their mud hut into a concrete one.

Another recipient of a loan was already in business selling seeds and cereals. Before his loan, his stall must have looked pitiful, because even with his $1000 worth of extra inventory and a corn field, most Westerners would have wept. Not him. Far from it. His 3 kids can go to school now and he has a nice suit for work.

A group of women bought cattle with their $1000, plus a load of beads to make their masai jewelry for tourists. They were the cheeriest and most colorful bunch you could imagine, and like the founder of Kiva said, when you go the site and see the pictures of the people requesting a loan, and you realise that $1000 will make such a huge difference to their lives and prospects, it is an irresistible urge to contribute $25 towards their micro-loan.

Ed's take

I should disclose that I am a Kiva fan. Years ago I co-founded a development program in Africa, and I can assure you that money with strings attached is the primary problem faced by most people trying to get ahead on that amazing continent. Sure, genocide and tribal wars don't help continuity in some countries, but by and large, if you can loan people a few bucks for a chance to fish (and don't interfere), they will teach you a thing or two about fishing.

Kiva kool aid

Kiva is one of the coolest, lowest impact /least interfering ways to enable people in developing nations to develop in a way they feel comfortable with. In the long run, it is a win-win for lenders too, because it doesn't cost you a dime overall. Kiva have such a good relationship with their loan reps in the field, that if you become a lender and contribute the basic $25 to a business(wo)man in the Third World, you have a 0.2% chance of not being repaid! No sub-prime risk there!