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Unformatted text preview: ey t o live on, wit h ent repreneurs in poor c ount ries who need
small loans t o st rengt hen or expand t heir businesses. An
ent repreneur who has a plan and needs a loan c onnec t s wit h a
f ieldworker f or one of several mic rof inanc e organizat ions t hat
administ er small, unsec ured loans (usually less t han $1,000). T he
Use d for ide ntifica tion purpose s
f ieldworker c omposes a prof ile of t he individual and his or her
needs, and post s t he prof ile and t he request t o t he Kiva websit e. Individual donors c ont ribut e
t o t he loan in $25 inc rement s. Onc e t he sum is obt ained, t he loan is delivered t o t he c lient . A
sc hedule f or repayment is agreed t o and, ac c ording t o t hat sc hedule, t he money is paid bac k
in inc rement s t o t he lenders.
T he genius of Kiva is it s use of t he Int ernet . Using t he Int ernet t o c o- ordinat e relat ions
bet ween t he lenders and t he rec ipient s makes everyt hing go f ast er, and lowers overheads and
t ransac t ion c ost s. But most of all, what t he Int ernet does is f ost er st rong bonds bet ween
part ic ipant s in Kiva. T he princ iple bond is bet ween t he lender and t he loan rec ipient , and webbased prof iles and f ieldworker logs help t o c reat e t hat . T hose are bet t er t han older syst ems
(t he regular mail and phot ographs), but Kiva also uses Int ernet - based soc ial net working
syst ems t o c reat e a new kind of relat ionship. On t he page devot ed t o a loan rec ipient , a
pot ent ial lender c an see brief prof iles of all t he ot her people who have loaned t o t hat business
or individual. Clic k on one of t hem, and you c an see all t he people t hey’ve loaned t o. T his
f eat ure f ost ers a sense of c ommunit y and shared purpose bet ween t he lenders, and
enc ourages t hem t o make f urt her loans and t o share t heir Kiva experienc es wit h t heir f riends.
Kiva is inc redibly suc c essf ul. Af t er about t wo years of operat ion, Kiva.org has f ac ilit at ed
$10,000,000 in loans f rom nearly 100,000 dif f erent people. In f ac t , Kiva has been t oo
suc c essf ul: in Sept ember of 2007, it t emporarily limit ed pot ent ial lender...
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This note was uploaded on 04/10/2013 for the course PD 6 taught by Professor Katherineacheson during the Fall '12 term at Waterloo.
- Fall '12