The Kiva Transparency Debate: Here’s What’s Crystal Clear
In the microfinance world there has been a lot of discussion about Kiva in the past month. Much of the talk has centered on Kiva’s description of the way that its users’ dollars are channeled to microentrepreneurs. Clearly there is room for debate over how to best structure (and then explain) what is admittedly a complex system.
Lost in the debate was Kiva’s announcement last week that it had topped $100 million raised, just four years after the organization’s founding. With a stunning number like this, it seems safe to say that no other microfinance organization has so effectively mobilized large amounts of capital in very small increments.
ACCION USA witnessed the “Kiva effect” firsthand, shortly after posting our first clients to Kiva.org this summer. Before long, Good Morning America, CNN, and NPR were all running stories about microfinance in the United States. We were flooded not just by calls from entrepreneurs seeking a loan, but also overwhelmed by the support of individuals who wanted to help.
Kiva’s work worldwide makes two facts crystal clear: the Internet offers tremendous potential to connect individuals to the transformative power of microfinance and that Kiva lenders have an unwavering commitment to helping others succeed. This is true whether they are supporting an entrepreneur a world away or one right in their backyard. As an organization working to deliver capital to those who desperately need it, we at ACCION USA are thrilled to welcome to our organization these new stakeholders (some of whose stake is just $25). We are so glad they joined us, and hope that they will continue to learn about our work and the clients we exist to serve.