Tech Tips for the Week of November 30 - kiva.org

All too often when we think of integrating technology into the curriculum we fall into what I might call the Application Trap.  In other words, we discover some piece of software and ask ourselves how that might be applied within a particular subject and/or at a particular grade level.  The fault in this approach is that it tends to place the application first and the human/learning element second.
It also ignores one of the fundamental advantages of living in our current technological world - technology connects people and ideas.  Just think about the technologies that youth adopt most readily: instant messaging, cell phones, texting, ...  all of them are about making and maintaining connections.  It is this human element that we sometimes ignore when we explore how to use technology in the classroom.

Furthermore, in this season, sandwiched between Thanksgiving and Christmas, it seems fitting to look beyond our own abundance (generally speaking) to the world outside.

Therefore for the next few installments, Tech Tips is going to examine technologies that help students make connections with other people, both near and far.  This week's episode looks at kiva.org.



One of the fastest growing trends in alleviating poverty in the developing world is the concept of microfinance or microloans.  The basis of microfinance is the provision of small loans to individual entrepreneurs, or groups of entrepreneurs, in developing countries.  These budding entrepreneurs then use these loans to establish or expand their businesses, paying back the loans as they are able.  The entrepreneurial ventures might be as humble as raising money to buy a cow.

One of the major hurdles in microfinance is connecting the entrepreneur with the potential investor.  That's where kiva.org steps in.   It puts investors (your students?) in touch with aspiring business people in the developing world, allowing them to invest in small increments of $25.  Investors can then track the progress of the business(es) in which they invest.  As the loans are re-paid, investors can, in turn, re-invest in other ventures.

Investors can begin by investing as an individual, bystarting their own lending team or by joining one of 10,000 or more existing lending teams (like the Crazy Canucks or Team Canada).

kiva.org has some significant advantages over traditional forms of "donation" aid:

• The aid takes the form of a hand up rather than a handout.
• The entry point for investing is very low ($25).
  
• The investor knows where the money is going and what it will be used for, and he/she can and see the progress his investment has helped to create.
  
• The investor knows that the full amount of his investment has gone to a good cause; there is no hidden administrative overhead.  When making a loan, the investor is prompted for an optional donation to kiva.org.  The recommended donation is 15% of the loan amount, but the investor can choose as little as 0%.
  
• Finally, once the loan has been re-paid, the investor can re-invest in other projects.  In other words, that initial commitment can help people over and over again.
• While the term investor might be a bit off-putting for some, keep in mind that these loans are entirely philanthropic.  There is no rate of return.

That is not to say that investing in kiva.org comes with risk-free.  The loans provided to the entrepreneurs are unsecured.  There is no guarantee that a loan will be repaid. 

Furthermore, while loans in kiva.org target regions of relative poverty, they do not address the need for disaster/crisis relief (famine, earthquakes, tsunamis, ...)

How could kiva.org be used in the classroom or school environment?  Here are a few ideas:

• Students in SS 6 or SS 7 could invest in developing countries which they are studying in the classroom, thereby gaining a deeper understanding of economic and living conditions in those countries.
• Students in Entrepreneurship could examine the principles of entrepreneurship from an entirely different perspective by supporting other budding entrepreneurs.
• ELA Students studying a novel or short story in a given location in the developing world could expand their knowledge of that location through an investment.
  
• At present, many SRC's and other student groups choose to provide aid by sponsoring a foster child or other efforts.  Kiva.org provides them another outlet for their altruism.  (Note:  I'm not suggesting they stop their current efforts.)
  
• School Amnesty International groups can explore another means of philanthropy.
  
• Schools could establish "Investment Clubs" or enrichment groups which engaged in fund-raising for the express purpose of investing in - and thereby aiding - people in developing countries.  These groups could join with other student groups within the division (or elsewhere) to form lending teams which might collaborate to target their investments and focus their impact.
• No matter what the group, students must engage in critical thinking, as not all entrepreneurial proposals are equally sound.  Students must assess whether there is a possibility of a rate of return for the entrepreneur.  To aid in this decision making, kiva.org provides a rating scale to indicate level of risk that the entrepreneur might default.
  

Here are some examples of investment proposals put forth on kiva.org.  Remember that even though the entrepreneur may be looking for a large amount, investors may invest as little as $25 in any project.

• A group of women weavers in Bolivia wants a loan of $1,850 to purchase materials so that they can increase their production levels.
• A Cambodian woman who sells fruit and soup is looking for $1,200 for equipment and supplies to expand her business.
• A Philipino fish farmer needs $150 to repair a vehicle she uses in her business.  She has successfully re-paid five previous loans.
• An Azerbaijani wedding performer would like $2,500 to purchase a synthesizer to enhance his business.  At present, he has only a drum.
  

If you are considering using kiva.org with your students, please make sure that you examine the proposed re-payment schedule for any business in which you might invest.  Some schedules are very protracted, so students might not see any re-payment results within the time that you are working with them.

Looking for information from a old Tech Tip?  You can always find the archive of previous Tech Tips on the Tech Tips Blog, unless of course, your school network blocks blogs.  If your school currently blocks blogspot.com ask someone, "Why?"

Until next week ...