Do Kiva and be a Free Market Santa

Have you ever had a sneaking suspicion that Santa Claus is a communist? He dresses all in red and gives away free stuff produced in his collectivist toy shop. And the commune is disconcertingly close to the old Soviet Union.

As well as being a dirty old man, just like Mao.

But I have an idea about a different kind of Santa.

So, today I am going to quit my usual bitching and moaning and talk about a way any one of us can help make the world a better place one person at a time. And it is ideal for us crazed free market libertarian types.

Rather than wasting money on the stiffs running for president, or buying more crap your friends and family don't need , think about making a small loan to a budding entrepreneur somewhere in the world.

The loans can be as small as $25, but will still be greatly appreciated.

Banks are not into small loans. They tend to think of a small business loan as being at least a million. But, in many places in the world, a business can be started up for a thousand bucks or less.

In 2004 Kiva was started to fill this need. They partner with various microfinance partners throughout the world, who choose qualified borrowers.

You can look over the business plan of the various borrowers, and decide who you might like to sponsor. Over the period of the loan, which is usually six to twelve months, the lender receives email updates on the status of the business. As the loan is repaid you can pocket it, or reinvest with another business.

By lending money through Kiva, lenders help the working poor in the developing nations make great strides toward financial independence. It is so much more lasting than just sending a bag of rice.

And you can give, and make a difference, without actually being out any money. The repayment rate is extraordinarily high.

With over two-million loans in action, the default rate is only 0.2 %. That's not too shabby. The mortgage industry would die for numbers like like that.

For those nerds who like flow charts:



I am going to be promoting this highly worthy cause on my blog. I chose a dynamic banner that changes to show various borrowers:





On this whole Christmas thing--though I never have enough shiny rocks or clothes, I am at a point where I really don't want my family to knock themselves out buying me more crap. I think it would be nice if, instead of a Chia pet, they sent twenty-five dollars to Kiva.

Like everyone else, Kiva has holiday gift certificates. But they are different than the usual gift card. After the money is paid back it can be recycled over and over again to help more entrepreneurs in developing nations.

And, I like the idea of being a Free Market Santa /Diva Kiva to some enterprising folks in the third world.