Sunday, January 11, 2009

What is that Kiva thing?

A Fistful Of Dollars: The Story of a Loan from Kieran Ball on Vimeo. Visit Kiva today.

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Daniel Rezac said...

While I'm excited for the idea of KIVA, and love the altruistic notion of the idea, I think that the business model would work so much better if they made it for-profit. Who wouldn't turn down the offer to give people micro-loans if they new that they'd get 8% or 10% back?

Why can't the interest made go to the people actually giving the money? The company doesn't assume the risk. The donor's do.

If the people actually made the interest, people would actually begin investing in people. Apparently if you want to make any type of real return on any investment, it has to be either risky or the bank takes most of the profits.

Here's what they said to me: "At the moment there are no plans in motion to provide interest to our lenders. Doing so would mean that we have to work with regulatory bodies like the Securities and Exchange Commission and other entities."

Of course, you could say that the investment is non-tangible social ideals involved, which is good.

But what if you could truly make a profit? What of you could be your own bank? How would that effect the economy? I don't know. Maybe the banks would fail, but the people might not.

Kevin Hodgson said...

A teaching colleague and I are trying to start a "team" within Kiva to get middle school students to invest fundraising money and then track the progress in businesses of the third world.
If you or others are interested in joining the team, drop me an email.


Kevin Hodgson