Eliminating poverty around the world seems like a huge task. But
through microlending—a concept that is gaining in popularity—and a Web
site, Elon students in a Global Experience course recently put a human
face on global poverty and made loans to four people in different parts
of the world.
Ocek Eke, assistant professor of communications,
taught the Global Experience course during the 2006 fall semester and
introduced his students to www.kiva.org. The Web site provides users
with profiles of people in various parts of the world who are trying to
start small businesses to provide a living for themselves and their
families. Frequently, these people need a small amount of money,
usually less than $1,000, as startup funding for their ventures. Web
sites such as Kiva provide loans at lower interest rates than the
average microfinance lending rate of 35 percent. Borrowers repay the
loans, and lenders can decide to reinvest loan repayments into the same
project or direct them to new recipients.
Eke’s class committed
to helping four people from Honduras, Kenya, Togo and Azerbaijan
through Kiva. Each Thursday, class members donated $2 each to the cause.
“This was something small we could do that, when you added it up, could make a huge difference,” said freshman Sarah Pugh.
“This
is a great way to start eliminating global poverty by empowering people
to establish themselves financially,” said Eke. “The results are
amazing, because unlike other development projects, the loan goes
directly to the individuals who need it, instead of often-corrupt
government agencies. I am pleased that my students and I are
micro-lenders—we have truly made life-changing connections to the world
through this project.”
By the end of the semester, the class had
raised more than $700, which is helping a potato farmer in Kenya, a
market owner/operator in Togo, a cattle breeder in Azerbaijan, and a
clothing store operator in Honduras. At the Kiva Web site, lenders can
search potential borrowers from around the world, reading personal
profiles and business plans.
“The ability to say that I gained
knowledge from the class while working with others for the greater good
is very rewarding,” said freshman Jenny Cupero. “This project asked us
each to step up and make a difference for four people who really need
us.”