bitmask
speech
this was #9 (persuade). It was on microfinance, and how it's possible to make a huge difference to someone's life with as little as $25 through a microcredit organization such as kiva.
Here are my notes for the speech so you can read them:
World bank:
extreme poverty $1/day
moderate poverty $2/day
3.8 billion people live on less than $2 a day
these people are poor for a myriad of reasons which are not their fault
deficiencies in public administration
failures of their environment
overpopulation
disease
whatever the reason, they are unable to thrive
what have you done to help?
give money to charities..
and when you do, do you pay attention to what percentage of your donation goes to helping people
when you give to charities do you know who's life you've changed?
aid can do good
but specifically in africa, despite the billions of dollars poured in to the continent, of people in extreme poverty is increasing
increasing aid increases dependency on aid as free goods flood the market and put local merchants out of business
if you're given everything, how much incentive do you have to become self reliant?
just after the new year, i got an email saying that manuella had finished paying back her loan
manuella enterprising woman who raised money for her current store by giving massages and manicures
now she sells school supplies and she had just paid back a loan to buy a photocopier which will expand her business
I was impressed by how she bootstrapped
and so when I found her profile on kiva, I lent her part of what she was asking for
32 other people also contributed to her loan
which was then distributed by one of kiva's field partners in ecuador
kiva is a person to person microlending organization
$700,000 loaned
to 2026 entrepreurs
i went back to kiva and started looking at other available loans
i lent to
safina in tanzania who works 10 hour days to make $50/mo expand her business selling cloth
sun chrip, mother of 4 in cambodia build a roof and a sturdy wall so that her house wouldn't leak.
loans are few hundred to 1000, many people contribute to one loan
small sums would never be lent by a normal bank
and because the borrowers have no credit
because the administrative costs outweigh the interest on the loan
first microfinance bank
Grameen bank started by Muhammad Yunus as a research project to test this method for providing credit and banking services to the rural poor
grameen means 'of the village', so this is is a bank of, for and by the people
aim to lend to the poorest of the poor
it was wildly successful
In 2006, Yunus and the Grameen bank were jointly awarded the nobel peace prize
for their efforts to create economic and social development from below.
Lasting peace can not be achieved unless large population groups find ways in which to break out of poverty.
...
That vision can not be realised by means of micro-credit alone. But Muhammad Yunus and Grameen Bank have shown that, in the continuing efforts to achieve it, micro-credit must play a major part."
why does microlending work so well
targeting women
more likely to spend money on improving their family and children
than to spend it on themselves
raises socio economic status gives them power
2nd innovation
group lending
group not responsible for the loan
but will not receive another loan if any of the members defaults
encourages others to fill in, and to help each other make payments
borrowers have better information about each other than the bank, credit
support group, community, business ideas
traditional aid doesn't have the power to affect people at this level
loans are small
and have tremendous potential to affect the lives of the recipients
who has become rich from receiving handouts?
prosperity is the result of opportunity and effort
microlending gives the opportunity and allows people to
to provide services and gain esteem in their community
to gain skills
build their own future, to become self reliant
the next time you want to give money, take a minute to consider WHO you are giving it to.
sources
wikipedia
kiva
microplace
www.csa.com/discoveryguides/microfinance/review2.php?SID=...
speech
this was #9 (persuade). It was on microfinance, and how it's possible to make a huge difference to someone's life with as little as $25 through a microcredit organization such as kiva.
Here are my notes for the speech so you can read them:
World bank:
extreme poverty $1/day
moderate poverty $2/day
3.8 billion people live on less than $2 a day
these people are poor for a myriad of reasons which are not their fault
deficiencies in public administration
failures of their environment
overpopulation
disease
whatever the reason, they are unable to thrive
what have you done to help?
give money to charities..
and when you do, do you pay attention to what percentage of your donation goes to helping people
when you give to charities do you know who's life you've changed?
aid can do good
but specifically in africa, despite the billions of dollars poured in to the continent, of people in extreme poverty is increasing
increasing aid increases dependency on aid as free goods flood the market and put local merchants out of business
if you're given everything, how much incentive do you have to become self reliant?
just after the new year, i got an email saying that manuella had finished paying back her loan
manuella enterprising woman who raised money for her current store by giving massages and manicures
now she sells school supplies and she had just paid back a loan to buy a photocopier which will expand her business
I was impressed by how she bootstrapped
and so when I found her profile on kiva, I lent her part of what she was asking for
32 other people also contributed to her loan
which was then distributed by one of kiva's field partners in ecuador
kiva is a person to person microlending organization
$700,000 loaned
to 2026 entrepreurs
i went back to kiva and started looking at other available loans
i lent to
safina in tanzania who works 10 hour days to make $50/mo expand her business selling cloth
sun chrip, mother of 4 in cambodia build a roof and a sturdy wall so that her house wouldn't leak.
loans are few hundred to 1000, many people contribute to one loan
small sums would never be lent by a normal bank
and because the borrowers have no credit
because the administrative costs outweigh the interest on the loan
first microfinance bank
Grameen bank started by Muhammad Yunus as a research project to test this method for providing credit and banking services to the rural poor
grameen means 'of the village', so this is is a bank of, for and by the people
aim to lend to the poorest of the poor
it was wildly successful
In 2006, Yunus and the Grameen bank were jointly awarded the nobel peace prize
for their efforts to create economic and social development from below.
Lasting peace can not be achieved unless large population groups find ways in which to break out of poverty.
...
That vision can not be realised by means of micro-credit alone. But Muhammad Yunus and Grameen Bank have shown that, in the continuing efforts to achieve it, micro-credit must play a major part."
why does microlending work so well
targeting women
more likely to spend money on improving their family and children
than to spend it on themselves
raises socio economic status gives them power
2nd innovation
group lending
group not responsible for the loan
but will not receive another loan if any of the members defaults
encourages others to fill in, and to help each other make payments
borrowers have better information about each other than the bank, credit
support group, community, business ideas
traditional aid doesn't have the power to affect people at this level
loans are small
and have tremendous potential to affect the lives of the recipients
who has become rich from receiving handouts?
prosperity is the result of opportunity and effort
microlending gives the opportunity and allows people to
to provide services and gain esteem in their community
to gain skills
build their own future, to become self reliant
the next time you want to give money, take a minute to consider WHO you are giving it to.
sources
wikipedia
kiva
microplace
www.csa.com/discoveryguides/microfinance/review2.php?SID=...