Companies have been operating without borders for a quite a while trying to hire the best talent or seeking the best idea’s, all in the best interest of making profit. Having only profit as their God, the multinational conglomerates, the most visible facet of globalization are destroying the rights and the livelihoods of peoples in the two-thirds world (Rajput, 2003). Women, especially those in developing countries seem to experience the adverse effects of globalization.
Women and Globalization
“Micro credit is a critical anti-poverty tool-a wise investment in human capital, when the poorest,
especially women, receive credit, they become economic actors with power. Power to improve not onlytheir own lives, but in a widening circle of impact, the lives of their families, their communities and their nations···” Kofi Annan, Secretary General, United Nations.
The adverse impact of globalization upon women’s livelihood, employment, education, health, etc has been highlighted by numerous national and international reports. Lack of access to credit is a key barrier to economic development and growth in the informal sector in which women constitute an overwhelming majority. This has led to an increasing emphasis upon micro credit and microfinance for women as means for their empowerment (Rajput, 2003). In laymen’s term micro financing is the extension of credit or loan to people who do not have access to the traditional financial system.
It has been known that empowering one women can empower successive generations. This is where KIVA comes in. KIVA is a nonprofit organization that empowers individuals to lend to an entrepreneur across the globe. The organization has partnered with microfinance organizations and 82 % of the loans have been made to women. KIVA has combined microfinance with Internet and created a global community of people connected through lending. The organization takes great efforts to present the realities of microfinance by giving lenders the opportunity to learn about the borrower’s background and their personal story for seeking the loan.
How KIVA works
I stumbled upon KIVA around the same time last year and chose to help a member called Hannah, who lived in Ghana. Hannah, a 40 year old single mother of three children works very hard to be able to provide for her family. She lives with her school going children in a rented apartment in a fishing-dominated community called Axim in the western region of Ghana. Hannah trades in provisions and sells on a tabletop in front of her house. She has been in business for three years and sought a loan to procure goods in bulk. She sought a loan for $1,050 with the repayment term of 8 months. She works with a local field office in Ghana and with their help is able to provide information that is displayed on the KIVA website for potential lenders to see. In Hannah’s case, 38 lenders from countries like Japan, US, UK, Netherlands, Australia, Canada etc saw her profile and chose to help her by funding her $1,050 loan. In my opinion KIVA is a social enterprise that touts a simple business model, which just might make the world a true global village, in terms of connectivity and philanthropy.
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Sources:
Rajput, P (2003). Women and Globalization: Is Microcredit the Answer?
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