The Ambassador of Kiva

Those of you who have been reading this blog for a while may have noticed the ad in the lower right for kiva.org.


Since beginning my MBA the sheer numbers regarding global poverty and economic growth have disturbed me. Approximately 4 billion people live in poverty and are not part of the formal economy. These people live on less than $2 a day. In B-school these people are referred to as being at the "bottom of the pyramid". There has been a tremendous push lately by global multi-nationals to try to turn these people into consumers. The talk in the board rooms of J&J or P&G goes something like "imagine if all those people were buying our products!"


My fascination with the bottom of the pyramid is more drawn toward the reasons those people are there in the first place and what simple things can I do to help them out. I've read "FastCompany" articles about a couple of guys that designed and built a foot operated water pump that cost about $70.00 to manufacture. Farmers in Africa can use this pump to help irrigate their crops and grow more food. The additional food allows them to sell some of it for a profit. The additional profits help them buy more pumps, seed, fertilizer etc. and grow more food...


So i sit here occasionally and say, "I'm an engineer. I'm a smart guy. How am I using my talents to make the world a better place?" I also know that the best way to solve a social issue is to build a business case around it. The free market is far more efficient than any government at moving capital and investing in peoples future.


For now I cannot really draw a direct line between my work and improving the planet. I can rationalize one but eventually I want to be able to draw a direct line. So for now I lend through Kiva.


Kiva is a non-profit organization that allows people to lend to microfinance institutions around the globe so they can fund loans to local entrepreneurs. The entrepreneurs pay the loans back in 6 to 18 months with interest (retained by the microfinance partner) and then I can re-lend the same funds to someone else. Kiva provides a vehicle for me to invest in the development of people worlds away $25 at a time. Check it out.