The micro-lending phenomenon that is Kiva.org intrigues me a great deal, because I’ve honestly never been sure how exactly it works and if it’s really making a difference in the lives of people. So it was a pleasant surprise to find that it’s cofounder, Jessica Jackley, was part of the Willow Creek Leadership Summit. If you don’t know, Kiva‘s mission is connecting people through lending to aleviate poverty. By providing microfinancing to entrepreneurs in developing nations, those entrepreneurs have the funding they need to make their business a success.
It’s a very interesting concept, because it’s very different from what we typically see. It’s not about aleviating poverty for people, it’s equipping people to do it themselves. I am very much a believer in development vs. aid (in the sense that we just throw cash at a problem and hope it goes away), and it’s refreshing to see that, so far in Kiva‘s case, it’s working really well. To date, more than 48 million dollars have been loaned through Kiva by ordinary people, and so far, 98.6% of this has been paid back in full. The secret, Jackley believes, is trust. “When you’re trust-based, you can get a lot more done. We believe if people are treated like we trust them, they most likely will [follow through.]” What Kivaand Jackley have seen so far is that entrepreneurs really are following through. Parents, now with a thriving small business, can buy clothes and pay their childrens’ school fees. It’s lead to improved health and better living conditions. It’s very exciting stuff.
Jackley is definitely a young lady who believes in the innate goodness of people—and that people actually want to give sacrificially (“It’s where a lot of our joy comes from,” says Jackley). I really have no comment on that point, sufficed to say that she has a very charitable attitude, and that it’s wonderful that Kiva‘s experiencing such phenomenal success.
What I see in something like Kiva is a great potential for those of us here in the developed world to love our neighbor in an exceedingly practical way, and one that we might not have otherwise.
Andrew Rugasira’s session was Thinking Forward: Aid vs. Trade. The Founder and CEO of Good African Coffee, Rugasira, a graduate of the University of London (where he received an honors degree in Law & Economics from the School of Oriental and African studies), is incredibly passionate about seeing Africa taking a strong position in the world economy. He wants to change the perspective the world holds about Africa. And that means ending changing our mindset from aid to trade. Because, as Rugasira believes, handouts don’t develop people and nations.
“There is no country in the world that was developed by handouts—so why is Africa different? Africans are looking for the same opportunities as an American, English [or] Indian entrepreneur. [We're] not looking for a handout.”
The statistics are startling. Between 1970 and 2000, Africa received $400 billion in aid. And during that time, the GDP dropped and conditions worsened. Rather than making the situation better, it actually made it worse.
“[Aid] creates a culture of dependency. It undermines the integrity and dignity of recipient countries,” says Rugasira.
“Integrity is being truthful about what you need to do to get out of a situation.” Aid (in the sense that Rugasira is speaking of) completely undermines this. “People have lost faith in themselves. [They believe] that they can’t do anything. That help only comes from outside… [And we want] the opportunity to bring quality products to the market and help Africans help themselves.”
Rugasira’s message is refreshing. I often struggle with the question of how much good are we really doing by doling out billions of dollars a year in foreign aid. When some countries have as much as 40 percent of their budget coming from aid, you know there’s something wrong with the system. I think aid in the sense of emergency, life saving assistance is incredibly important and necessary, which is why I’m grateful for organizations like the Red Cross, World Vision and several others. But I think it’s necessary that we look to assisting the poor around the world develop the skills required to not only aleviate poverty, but transform their society. That’s why it’s good that organizations like Good African Coffee and even Compassion exist.
We all know who Bono is, love him or hate him. And depending on the church, you won’t be the least bit surprised to hear at least one or two U2 songs in the worship set.
Honestly, for Bono’s part of the Summit, I’m not sure even how necessary it was. It didn’t really add anything except a bit of Bono. There was one great line thrown out in his interview with Bill Hybels, though, so perhaps that’s the reason he was there. In speaking about the Church’s sudden ramp up to assist the poor, particularly with HIV/AIDS treatment, Bono said, “As a person who’s really giving off about the Church, you have completely ruined it for me, because the Church has done incredible things, and… I’m taken aback. I think we referred to it [the Church] as the sleeping giant, but I didn’t know the giant could run that fast. And there’s no doubt in my mind that had the church not woken up on the issue of AIDS, we would not have two million Africans on retro-viral drugs. That simply would not have happened.”
That was a nice, albeit backhanded, encouragement, I suppose. It was enjoyable to see Bill Hybels get a few digs in at Bono for not being involved in a local church.
And that is my big take-away from Bono’s session at the Willow Creek Leadership Summit.