Shereef’s Kiva Blog

Posts Tagged ‘microfinance’

Kiva’s stated mission is to connect people through lending for the sake of alleviating poverty. The statement, fraught with vague nuance, runs through my head as I do borrower visits and judgmentally examine their lives, homes and dreams. Specifically, I compare their circumstances to my own imagined definition of the poverty Kiva strives to alleviate – and the two do not necessarily coincide.

I have walked down the dusty desert streets of the towns surrounding Chiclayo, through the unpaved dirt that separates the run-down homes connected by a spider web of tenuous cables and wires. But as soon as I enter the home of a lender all the expectations and stereotypes shatter. In my mind, the poor do not own dining room furniture and flat screen TVs.

So, what if we succeed? What if we alleviate poverty? If everyone were to start accumulating limitless material wealth it would defy my other privileged belief in the need to shift to sustainable consumption practices. On the other hand though, it would be hypocritical at best to suggest that other people do not have the same right to consume as I do.

Time-out. The experience I had (see the pictures of Kiva borrower Cruz below) is by no means universal but definitely forces me to step out of my own prejudgments and adjust to reality. The whole question of, “is the goal [of development] to level the playing filed or to move to a new field,” is still premature, and built on a partially false conflation.

I do think that more wealth leads on one level to more stuff but not that much more. Strictly conflating levels of material accumulation with degree of poverty is an error. Poverty is more nuanced. Here in Peru, and in many countries, the distance that separates the middle class from the poor is minimal, but the distance between middle class and the rich stretches immeasurably.

My experience so far has led me to believe that instability is what defines poverty. The means by which people accumulate wealth are tenuous and lead them to make instant material decisions instead of more long-term savings – they do not feel secure in the long term. And that is one of the reasons I sincerely believe in the mission of organizations like Kiva and EDPYME Alternativa: they do not just provide loans and services, but re-enfranchise the marginalized who then begin to trust in circumstance and plan a better future for themselves and their children.

Please feel free to leave comments below – it would be great to see a discussion going on the pitfalls of understanding poverty and directing development.

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09.04.09 - what if we succeed?

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I just finished my first post on the Kiva Fellows Blog and I encourage you all to become regular followers! Click here to read it.

I titled this post recession-proof because it really has become clear to me that micro-economies are much more resilient than macro-economies. To clarify: when 5 or 6 companies hold the reins to all industries they can manufacture widespread poverty when they ‘cut costs.’ America finds itself at the whim of profit driven corporations that are too big to fail.

Chiclayo does not. A region brimming with micro-entrepreneurs survives on slim margins and thrives in competition. Fear does not overwhelm the marketplace, but rather the will to live and make a better life for one’s children are the driving economic forces here. These businesses are too small to fail — their families depend on them. And microfinance institutions like EDPYME Alternativa enable businesses and consumers to have the credit lines they need to get ahead, not to get overwhelmed.

On EDPYME Alternativa — this is not a crunchy hipster organization at all. Working in the context of a highly efficient, highly organized, highly regulated institution with a highly devoted staff (11 hour days plus half days on Saturday) will define the next three months of my life. During the mornings I go out with Manuel the Kiva Assistant on site visits and the afternoons are consumed by strategizing and troubleshooting with Carlos the Kiva Coordinator. Directors and Managers keep engaging me in fantastic discussions and next week I will be presenting to all of them. My life has certainly changed in the last week!

I posted some pictures in the slideshow below; click on them for a description.

More to come next week!

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08.28.09 - recession proof and musings on chiclayo

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For those of you who may not know, my name is Shereef Zaki and I have just resigned from two steady and reliable jobs in order to become a Kiva Fellow. Kiva (www.kiva.org) is the world’s first person-to-person microlending website, connecting lenders around the world with entrepreneurs in developing countries. As opposed to being a charity, it helps people help themselves by giving them access to financial capital and creating a global community of business partners. As a result of these partnerships people can free themselves from the  indignities of poverty.

During my late teens and early twenties I traveled through North, Central and South America and repeatedly witnessed the tragic struggles of families, communities and in some cases countries as they attempted to lift themselves out of destitution. I saw external agencies and consultants dictate models and methods of growth, give handouts and unavoidably fail to make a sustained difference.

Kiva is different because it allows individuals to directly empower other individuals. After returning from Fellow’s training in San Francisco, I am more convinced than ever that I am stepping onto the right path — that my actions, with your support, will make a difference.

In my role as a Kiva Fellow, I will represent Kiva at a partner institution in South America this winter and then in the Middle East this spring. Resources lent via Kiva pass through a Microfinance Institution (MFI) which then physically disperses the funds to the borrower. I will work with an MFI to ensure that they are following all Kiva procedures. More importantly, I will be working to strengthen the connection between lenders and borrowers by meeting with the entrepreneurs and writing journals so that you can follow their progress.

As a measure of commitment to both Kiva and the mission of alleviating global poverty, a Kiva Fellow must receive funding externally. In other words, I receive no stipend. I intend to use part of my savings to facilitate my work. I believe this cause is just and am asking you to contribute in one of the following ways.

1. Contribute to my fellowship before April 30, 2010 and help me reach my goal of $7,500
2. Become a lender and join my lending team
3. Most importantly, send this link to your personal and professional networks

Many people budget philanthropy into their annual spending and this is a great cause with great volunteers working to make it successful. In exchange for your support, I will keep this page updated with stories as well as a monthly photojournal. The first slideshow from Fellow’s Training is below!

If you are able to do any or all of the above, feel confident in the fact that you are playing a meaningful and substantive role in the fight against poverty.

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05.18.09 - Kiva Fellows Training in San Francisco

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