Chapel Address — Kiva

I’m sure you’ve all heard the saying. “Give a man a fish, you’ll feed him for the day. Teach a man how to fish, you’ll feed him for a lifetime” but what if the man knows how to fish but just can’t afford the net?

The reality is that many people in the developing world face this problem. Very often poverty is not a product of laziness or ignorance, it’s a result of misfortune. Intelligent, honest and hard-working people are sometimes forced into poverty simply because of circumstance, things that no person has any control over: a hurricane, a war, the death of a relative and all of the sudden people no different than you or I find themselves trying to make it through the day alive.

So this “Fisherman.” You know the one who needs a net. Well some of you may ask “why don’t we just donate a net!” And that’s great. It really is. The belief that someone somewhere needs your help, that unequivocal generosity that we individually express is what’s going to make the world a better place. And you hope that more people start thinking this way.

But sometimes good intentions are practically useless.

This fisherman is no different than you or I. And that’s something we have to start believing. Just because fortune never found the fisherman it doesn’t mean that he is not proud. That he’s not loyal. He and his family will live under a dollar a day and not utter a word of complaint, not to mention accept a hand-out. But what if he doesn’t need a net? What if he needs to fix his boat or pay the mortgage on his house? And it’s not like we can go around giving money to anyone who seems to need it.

We need to give the fisherman something else. Maybe not give.

What about a loan? When you loan someone money. You’re not only exchanging a sum of money for an obligation. You’re exchanging trust. You trust that your borrower will put the money to good use and improve his situation. This fisherman, like you or I, is too proud for a free net, his need is too great for a tiny bursary.

If you loan him the money to set up his fishing business, not only are you positively acknowledging his endeavour but also acknowledging that you trust him. In doing so you become his equal. And inequality, as we know it, is a major source of conflict. Giving handouts, by definition, puts one person higher than the other. A loan equalizes both parties.

You empower him. So that he can use the skills and the work ethic to pull himself out poverty. Bringing tremendous pride and, of course, a dearly needed material benefit.

So he takes that money, invests it in his business thanks to his skill and his work ethic he will manage to pull himself out of poverty. And considering the fierce sense of loyalty that many impoverished people posses, your loan will be paid back.

Microfinance is a growing trend. The loans range anywhere from $100 to $5000. Traditional banks refuse to take part in such small amounts often leaving people to borrow form loan sharks and other illegal organizations that can put their families in danger. Kiva is an organization that brings people like you and I together to contribute the capital for microfinance. Microfinance has had an impressive track record; Kiva boasts a ninety-eight percent repayment rate and has loaned out more than a hundred million dollars to entrepreneurs all over the world.

Tomorrow you will have the opportunity to finance an entrepreneur in the developing world. Go to Kiva.com and take some time to browse the entrepreneurs and their profiles. Send in your suggestion to me or one of the other Prefects. After school you everyone will have an opportunity to vote with your money. Each vote means you are contributing $5 dollars the mutual fund. The entrepreneur with the most votes will receive all money given. There is a maximum of five votes per student. Hope to see you there.

Thank you,
Valentine S.