Sticks and carrots

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Posted: Mon Aug 18, 2008 12:02 am

I'm talking about sticks and carrots to try and make 419 activities unattractive to those who may be tempted to go in for them. There will always be a criminal class in all societies tempted by the idea of easy wealth or living outside the law. These people are beyond salvation (in a non-religious sense of the word) and all we can do as baiters is to make their lives as much of a misery as possible, and foil their plots if at all feasible.

But for those hovering on the brink of an honest career or a 419 life, seeing scammers humiliated and baited may help discourage some, and this is the stick part.

The carrot would be some way of making it easier for these people who are not yet scammers to earn an honest naira/cedi/whatever. To this end, I've been giving money to a microloan organization called Kiva - click here for some time. In their own words:

Quote:

Kiva is the world's first person-to-person micro-lending website, empowering individuals to lend directly to unique entrepreneurs in the developing world.

The people you see on Kiva's site are real individuals in need of funding - not marketing material. When you browse entrepreneurs' profiles on the site, choose someone to lend to, and then make a loan, you are helping a real person make great strides towards economic independence and improve life for themselves, their family, and their community. Throughout the course of the loan (usually 6-12 months), you can receive email journal updates and track repayments. Then, when you get your loan money back, you can relend to someone else in need.

Kiva partners with existing expert microfinance institutions. In doing so, we gain access to outstanding entrepreneurs from impoverished communities world-wide. Our partners are experts in choosing qualified entrepreneurs. That said, they are usually short on funds. Through Kiva, our partners upload their entrepreneur profiles directly to the site so you can lend to them. When you do, not only do you get a unique experience connecting to a specific entrepreneur on the other side of the planet, but our microfinance partners can do more of what they do, more efficiently.

Kiva provides a data-rich, transparent lending platform. We are constantly working to make the system more transparent to show how money flows throughout the entire cycle, and what effect it has on the people and institutions lending it, borrowing it, and managing it along the way. To do this, we are using the power of the internet to facilitate one-to-one connections that were previously prohibitively expensive. Child sponsorship has always been a high overhead business. Kiva creates a similar interpersonal connection at much lower costs due to the instant, inexpensive nature of internet delivery. The individuals featured on our website are real people who need a loan and are waiting for socially-minded individuals like you to lend them money.

I try to concentrate on West African businesses when I select the loan targets, in order to try and encourage the message that there are alternatives to 419. I've had my money back several times and not had a loan default yet.

I believe many Eater members might be interested in this. It's not as much creative fun as baiting, but it might prove effective as a preventative measure to stop a few people becoming scammers in the future.

Posted: Mon Aug 18, 2008 12:47 am

Looks interesting.

Do you have any direct contact with people you loan money to, or is it all done through an umbrella lender? (Sorry, I could probably find this in their FAQs, but I'm feeling lazy Smile

).

Posted: Mon Aug 18, 2008 12:56 am

@WBH ^^^

No, there's no direct contact but there are sometimes updates. Kiva seems to be acting as a go-between and clearing house between the local microloan organizations (who screen the applicants and manage the loan processes at the point of disbursal) and the public like you and me.

I think this is one reason why this is a good idea - they're thinking globally and acting locally (or rather, using local talent where appropriate).

Posted: Mon Aug 18, 2008 1:19 am

I once heard about something like this....They say it really does work.

Posted: Mon Aug 18, 2008 3:28 am

To be honest I think that this is a good idea, because not every small business, wherever it is, requires large sums of cash to start up. If someone needs a small amount, then they would otherwise be buggered because the financial institutions wouldn't touch it because it is just way too small.

However, I don't think that potential would be scammers would let a useful and good opportunity to make a productive life for themselves get in the way.

But, you know, best of luck to anyone who is invovled in this. It's a good idea.

Baiting Guru Joined: 07 Jan 2007 Posts: 2788

@ttt. Thanks for providing this, whilst i do not have the funds at present it is something i would consider in the future and have bookmarked their site.

May i offer you a two for one deal and share two sites that benefit just from you clicking on them. 100% Free!!! Very Happy

http://www.bhookh.com/

http://www.thehungersite.com/clickToGive/home.faces?siteId=1 this one has various different tabs along the top.

Posted: Mon Aug 18, 2008 12:21 pm

Micro loans are a very good way to jump start a "just starting" economy. One of the mega rich here in the US did this over in... I think it was India?... and had great success. He was not making a ton of money off of it, but that was not his point. I forget the details, but he bundled the loans together in a community such that if the people did not pay them back there would be no more loans in that community, but if they did, there was kind of a self perpetuating fund from which further loans would be made. The shame of not paying back and effectively hurting your neighbor's chance for a loan gave him a near 100% pay back.

I don't have time to google for it at the moment.