The Better Option

Politics are adversarial. Sometimes, it seems that's all they are. General nastiness and stubbornness are used to score political points. It would be much more pleasant and possibly effective if our politicians would work to formulate plans to benefit everyone through an exchange of ideas and principles and compromises.

Don't laugh. It is possible.

While waiting for that to happen, check this out: Occupy Santa Cruz and other groups held an event today in Santa Cruz to promote food sovereignty and sustainable farming methods. Doesn't that seem much more effective than fighting with police in the streets of Oakland? At the very least, it feels more forward-thinking and positive.

On a related note, this feels like a good time to bring up Kiva again. Kiva.org is a microlending, not-for-profit site, where you can lend an amount as low as $25 to individuals around the world, such as a woman who raises chickens in Kenya, or a single mother in Central America trying to run a village community market.

Microlending is not necessarily a panacea for financial inequality. There have been some horrible news stories out of India, where a surge in demand for microloans from for-profit lenders has caused a spike in interest rates and the subsequent collapse of the system amid reports of predatory lending and over 100 suicides linked to microlending debt.

But I think that Kiva is different. I emailed them to inquire if they have any connection to any of the microlending firms in India, but I do not believe they do. The Kiva lenders do not expect to profit; in my experience, I've even lost a small amount of the $50 I originally put in, due to a default and some donations to Kiva. Overall, I think the system works. I lend the money, and a few months later, once the credit is repaid, I lend again. In about four years, I've made about 8 loans. I don't know that I will ever have a sense of making a real difference, but it feels right.

In any case, it feels better than sitting around reading or watching the news about our political debacles. If the government can't always make a difference, we can.

UPDATE: Here is a portion of the response I got from Kiva regarding microlending in India:

We are working hard to expand our partnerships to all regions across the globe at a pace that is healthy for both our current partners and for Kiva. In fact, Kiva staff are actively looking into partnering with microfinance institutions in India; however, before we are able to move forward, there are numerous financial and legal regulations that we must investigate.

We know that the microfinance industry in India has been in the news quite a bit lately, the concerns about over-indebtedness and client protection that have been raised are important issues for Kiva and the rest of the microfinance industry to address. At Kiva, we are continuing to direct our resources to foster responsible microfinance at all of our Field Partners around the world through due diligence, monitoring, and staffing. To read more about this, you can check this blog post written by Kiva's Senior Director of Social Performance: http://www.kiva.org/updates/kiva/2011/01/28/kivas-commitment-to-responsible.html.

Kiva seeks to partner with microfinance institutions that have a strong social mission, and when conducting due diligence on potential Field Partners, we favor organizations that excel in:
--Client protection, especially regarding the prevention of over-indebtedness, fair and transparent pricing, good collection practices and the security of
client information;
--Targeting and outreach that ensures vital services reach the unbanked, the under-served and the poor;
--Innovative loan products, savings and non-financial services specifically tailored to the needs of the target group;
--Measuring outcomes in the lives of client borrowers and savers.

Many of the partners are chosen because in addition to lending money, they also offer services such as savings, financial literacy training and empowerment programs.