You, Too, Can Be a Banker to the Poor
Tuesday, March 27, 2007
For those readers who ask me what they can do to help fight poverty, one option is to sit down at your computer and become a microfinancier.
That?s what I did recently. From my laptop in New York, I lent $25 each to the owner of a TV repair shop in Afghanistan, a baker in Afghanistan, and a single mother running a clothing shop in the Dominican Republic. I did this through www.kiva.org, a Web site that provides information about entrepreneurs in poor countries ? their photos, loan proposals and credit history ? and allows people to make direct loans to them.
So on my arrival here in Afghanistan, I visited my new business partners to see how they were doing.
On a muddy street in Kabul, Abdul Satar, a bushy-bearded man of 64, was sitting in the window of his bakery selling loaves for 12 cents each. He was astonished when I introduced myself as his banker, but he allowed me to analyze his business plan by sampling his bread: It was delicious.
Mr. Abdul Satar had borrowed a total of $425 from a variety of lenders on Kiva.org, who besides me included Nathan in San Francisco, David in Rochester, N.Y., Sarah in Waltham, Mass., Nate in Fort Collins, Colo.; Cindy in Houston, and ?Emily?s family? in Santa Barbara, Calif.
With the loan, Mr. Abdul Satar opened a second bakery nearby, with four employees, and he now benefits from economies of scale when he buys flour and firewood for his oven. ?If you come back in 10 years, maybe I will have six more bakeries,? he said.
Continue reading “You, Too, Can Be a Banker to the Poor“