Sunday 14 February 2010

No 83: More about Kiva

Please read 81 and 82 first.

ANNA is right to ask about what happens to the money donated through Kiva.

You may notice this post has changed.

I've been doing more research into Kiva, and there seems to be a couple of problems.

First, money does not directly go to the people who you see on the website, but to the Microfinance Bank who lent to them. Secondly, the interest rates charged to poor entrepreneurs by these banks is often high - as much as 50-100% in some cases.

Therefore, time is needed to ponder this and decide if loaning through Kiva is worthwhile or not.

Help me by reading (and giving your opinion about) these:

http://www.scam.com/showthread.php?t=76720
http://blogs.cgdev.org/open_book/2009/10/kiva-is-not-quite-what-it-seems.php
http://digg.com/people/Kiva_A_great_Idea_That_Isn_t_Exactly_What_it_Seemed

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