A piece of the puzzle

I first heard about Kiva.org on a Frontline World episode a couple months ago. It is an organization that facilitates microcredit between individuals. Basically, I whip out my credit card and give some money to a small business of my choosing in one of a variety of developing countries around the world. Kiva, a non-profit based in California, works with local microfinance institutions or "field partners" to identify appropriate loan recipients. The beneficiaries of the loans then put the monies to use creating or expanding their small businesses, and eventually pay back the loan. I, the original lender, would receive no interest. The interest is paid to the field partner to cover their operating costs. However, as of now Kiva is reporting a 100% repayment rate.

I'm the first to admit that this model is problematic in terms of combating global poverty as a whole. I have two primary concerns. The first is that microcredit doesn't address the root causes of global poverty or the institutional failures that perpetuate it. The second is that the success of microcredit could be used as an excuse to supplant rather than supplement other efforts that are being -- or should be -- made to alleviate global poverty.

However, for me as an individual, the aforementioned are nothing more than excuses. After all, I can provide a microloan and simultaneously continue advocating for what I perceive to be systemic solutions. Kiva is a means by which I can have a direct and almost immediate impact on another individual or family. The money I waste on frivolous purchases in the average month could have a tremendously positive impact on people's lives who are far less fortunate than I, and who would use the money with greater care.

Furthermore, there are notable advantages to microcredit over traditional remedies. Empowering people to become self-sufficient is a sustainable solution. At some point in the future, the same people who have lifted themselves out of poverty with my assistance may be in a position to aid those around them who did not benefit from microcredit.