Kiva high school preso


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Kiva high school preso

  1. 1. Microfinance and Global Poverty
  2. 2. Or, the really bad news. Poverty Poverty Today
  3. 3. The State of Global Poverty <ul><li>80% of humanity lives on less than $10 a day </li></ul><ul><li>According to UNICEF: 26,500-30,000 children die each day due to poverty </li></ul><ul><li>The GDP (Gross Domestic Product) of the poorest 48 nations is less than the combined wealth of the world's 3 richest people. </li></ul>
  4. 4. Why should we care? If you want to have a world that is at peace with itself, you have to start with poverty. Poverty, I mentioned again last week, is the most powerful weapon of mass destruction. Poverty usually is accompanied by lack of good governments, by oppression, and oppression ends in people feeling humiliated, angered, losing hope and faith. When you lose hope and you lose faith, this is a breeding ground for violence, civil war, interstate wars. When you have conflict that has been raging on for a hundred years, 50 years, 60 years, the temptation to acquire the big stick—which is nuclear weapons, like the major powers—it is very tempting. --Mohamed ElBaradei
  5. 5. Why should we care? <ul><li>Shared poverty </li></ul><ul><li>If developing countries win, everyone wins </li></ul>
  6. 6. How we fix it Development
  7. 7. Microfinance <ul><li> </li></ul>
  8. 8. Microfinance <ul><li>Microfinance is the provision of financial services to the poor </li></ul><ul><li>The poor are excluded by financial service providers because: </li></ul><ul><li>• No collateral, or credit history </li></ul><ul><li>• Illiterate </li></ul><ul><li>The poor need financial services, so they are forced to: </li></ul><ul><li>• Borrow money from loan sharks with such high interest rates, that it may be impossible to pay back </li></ul><ul><li>• Keep their life saving in their home which is vulnerable to theft </li></ul><ul><li>• Invest in livestock which is vulnerable to disease </li></ul>
  9. 9. The Benefit of Microfinance <ul><li>Microfinance works to provide the poor with these financial services </li></ul><ul><li>Using microfinance institutions that provide safe and controlled financial environments </li></ul><ul><li>Give a man a fish, feed him for a day. </li></ul><ul><li>Teach a man to fish, feed him for a lifetime. </li></ul><ul><li>What if he knows how to fish, </li></ul><ul><li>but just can’t afford a fishing net? </li></ul>
  10. 10. Why loans rather than charity? <ul><li>Dignified Business Transaction </li></ul><ul><li>Spreading opportunity, rather than charity </li></ul><ul><li>Sustainable </li></ul><ul><ul><li>A Hand-up not a hand-out! </li></ul></ul><ul><ul><li>Spreading opportunity rather than spreading wealth </li></ul></ul>
  11. 11. Success Story <ul><li>Studies have shown that during an eight year period, among the poorest in Bangladesh with no credit services available, only 4% pulled themselves above the poverty line </li></ul><ul><li>But people with access to credit from a microfinance organization, more than 48% rose above the poverty line during those 8 years </li></ul><ul><li>The Microcredit Summit Campaign estimates that as of 2006, over 3,100 MFIs were providing financial services to more than 113 million poor people worldwide </li></ul><ul><li>General repayment rates of over 95% </li></ul>
  12. 12. What can you do tomorrow? Action
  13. 13. Kiva and Kiva High School
  14. 14. What is Kiva? <ul><li> </li></ul>
  15. 15. More about Kiva <ul><li>Kiva is the world’s first microlending website </li></ul><ul><li>Kiva’s mission is to connect people, through lending, for the sake of alleviating poverty </li></ul><ul><li>With Kiva, you can become a micro-lender to people who just need a hand up </li></ul><ul><li>Kiva allows real people to make a real difference in the lives of the poor </li></ul>
  16. 16. The Social Network of Microlending <ul><li>Kiva posts profiles of entrepreneurs in the developing world, and allows you to choose where your money goes. </li></ul><ul><li>Creates a personal relationship between the lender and the entrepreneur </li></ul>
  17. 17. What can you do tomorrow? <ul><li>Make a loan! </li></ul><ul><li>Get involved with Kiva High School </li></ul><ul><ul><li>Start a chapter at your school </li></ul></ul><ul><ul><li>Have a Kiva week! </li></ul></ul><ul><li>Raise awareness about global poverty </li></ul><ul><li>Raise funds to invest in entrepreneurs </li></ul><ul><li>Start a Lending Team at your school </li></ul>