Investing Curiouscatblog

Tag: microfiance

  • Debate Should be Encouraged – Calling Judgement “Extremely Paternalistic” is Normally Unwise

    My response to a comment by John Green on Reddit

    I really really like your work and webcasts (example included below).

    It seems to me extremely paternalistic for people in rich countries to claim to know what is best for people in poor countries

    This seems to me to make it really difficult on people trying to use judgement. Calling people’s actions “extremely paternalistic” if they are not definitely so, I think impedes debate. And I think debate should be encouraged.

    When making Kiva loans I do steer away from loans with rates above 40% (I also prefer loans that are geared toward a capital investment that will increase earning power going forward though this is hard – lots of loans are essentially for inventory that will be sold at a profit so a fine use of loans but not as powerful [in my opinion] and new capital investments – say a new tool, solar power that will be resold to users…).

    Just like people anywhere, people taking Kiva loans are capable of getting themselves into trouble. Choosing to allocate my lender toward certain loans does not mean I am being paternalistic.

    I am not being paternalistic if I chose not to invest in the stock of some company that vastly overpays executives and uses high leverage to do very well (in good times).

    I do like the idea of direct cash to people in need. I give cash that way (and in fact did it a long time ago, 20 years, for several years – before any of this new hipster cachet :-). And I still do like it.

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  • Creating a World Without Poverty

    Creating a World Without Poverty by Muhammah Yunus (founder of the Grameen Bank and 2006 Nobel Peace Prize recipient). Giving people the opportunity to advance economically is something I see as very important. It is hard to imagine in the USA when those that are seen as poor have air conditioning, indoor plumbing, cars, TVs, electricity… but billions of people would love to approach such material wealth.

    When you really have to struggle to put food on your plate or get clean water economic concerns are critically important. Economic progress may well decide whether your children live or not. Muhammah Yunus’ new book is a good read to hopefully encourage more people to realize there really are much more important things than your fourth pair or shoes (to say nothing of you 20th pair) or expensive wine or a newer car or…

    Microfinance is a great system where those that have been lucky to receive material wealth can help provide opportunity to others. Loans of $200-$500 can make a huge difference in an entrepreneurs life. Just giving them the chance to use their intellect and hard work to create a life where they can get raise themselves slightly can change their lives, their children’s lives and together with others perhaps their community.

    Trickle Up, Kiva and Grameen Bank are three great ways to help give entrepreneurs a chance to improve their lives. As I have mentioned before if you are a Kiva lender add a comment with your Kiva page and I will add a link to: Curious Cat Kiva Supporters. I will say I am happy with the success of this blog in general, the thing that disappoints me is how few links we have on that page.

    Related: Microfinancing Entrepreneurs – Interview with Mohammad Yunus – Trying to Keep up with the Jones – Providing a Helping Hand via Kiva – Curious Cat Science and Engineering blog posts on appropriate technology