I just opened my drawbridge for the Boeing Corporate Yacht. That thing is probably worth 3 million dollars. And it will most likely be coming back through in less than an hour. Every time I do this, I can’t help but think that the money they are spending just on fuel for that one little jaunt could pay off my relocation debt and allow me to start saving for a used car that actually has a working heater. But no. That’s not how the world works.
But then I realize that for the vast majority of people on this planet, I must seem like the Boeing Corporate Yacht. What am I doing to help them? Quite a lot, actually, relatively speaking. I just gave my 58th microloan to a woman in my 48th developing country. Through Kiva.org you can make these microloans in increments of $25 each. And so far, I’ve always been paid back.
Twenty-five dollars may not seem like a huge amount to you or me, but for these people, it can mean the difference between being able to send their children to school or not. It can provide their family with nutrition that they wouldn’t otherwise receive, and allow them to build up businesses that can sustain them for many years.
Just recently I got an update from one of the loan disbursement organizations in Myanmar that I have supported. Here’s a little bit of what they said:
Before her loan, Daw Lei Lei’s family finances were in dire straits. Like her many neighbors who were gravely affected by Cyclone Nargis in 2008, Daw Lei Lei’s family lost a daughter and their seven-acre farm was demolished. Since then, the family has survived by farming ducks, but they have had to pay exorbitant rates on loans.
Rarely do microfinance organizations make it to these hard-to-reach rural areas, and when they do they rarely lend to non-crop farmers. According to a UNCDF research study, over 63% of the rural population has no access to regulated credit, and virtually no one has access to regulated savings or insurance.
Proximity’s loan has done wonders for Daw Lei Lei’s family. They have used the $200 micro-loan to purchase more ducks and quality duck feed. This modest injection of cash was enough to stabilize their income and generate profits from their duck and egg sales. With their newfound profits, Daw Lei Lei’s husband purchased a boat to start his own transportation business. His new business yields enough profit to cover their two children’s school fees. Now, instead of taking their children out of school early to work on the family business, a predicament that is extremely common in Myanmar’s rural areas, Daw Lei Lei and her husband are able to provide their children more educational opportunities than they were able to have.