June 28: How to Be a Microfinancier
2007-06-28 · explainer · John · 3:20 · watch on YouTube
Topic: Global development · mode: Advocacy & fundraising · tags: fundraising ask, heavy topic
John recounts the brothers' visit to poor neighborhoods in the Dominican Republic, explains how lack of credit traps people in poverty and how a microfinance organization's borrowers repay and grow, and proposes that he and Hank (and maybe Nerdfighters) lend through Kiva.org.
What is said
The parts of the video and what is said in each (★ — how much it matters to the video).
00:00:00 — Greeting from the new backyard; 'how to be microfinanciers'; the day in the real Dominican Republic; poverty figures; no access to banking and the cycle of poverty
- ★★ John announces they will learn how to be microfinanciers, joking that it is like being a regular financier, only free and good instead of evil. (playful) — 00:00:00
- ★★ John says the brothers' Dominican Republic resort was swank, but they took one day to visit 'the real Dominican Republic', where regular people live in poverty. — 00:00:00
- ★★ John says about 60% of people in the Dominican Republic live in extreme poverty and about half of those live on less than one dollar a day. — 00:00:00 · extreme poverty
- a number in question (doubtful): "about 60%" — check against the recording
- ★ John says that on the visit they saw people who did not know whether a check is signed on the front or the back. — 00:00:45
- ★★★ John explains a cycle of poverty: without collateral the very poor get no bank loans, so cannot start businesses, so there are no jobs and the economy stays weak. — 00:00:45 · extreme poverty
00:01:14 — Microfinance organizations vs loan sharks; the graduating women and their businesses; 98% repayment; the $180 loan that grew into a restaurant complex; swallowing a gnat
- ★★ John says microfinance organizations offer opportunities to the poorest of the poor, whose only other source of loans is loan sharks. — 00:01:14
- ★★ John says loan sharks often charge a thousand percent annual interest. — 00:01:14
- ★★ John recalls visiting a group of women graduating, in their own neighborhood, from five weeks of microfinance training in banking basics and business planning. — 00:01:14
- ★ Pointing to a photo, John lists the women's planned businesses: a shoe store, selling Avon products, a cafeteria. — 00:01:43
- ★★★ John says the microfinance organization they met has a loan payback rate above 98%, higher than most American banks. — 00:01:43
- ★★ John says the women repay well because they see the loans as a real chance out of poverty, and then take larger loans to grow their businesses. — 00:01:43
- ★★ John says that driving back they saw a sprawling restaurant complex started by one woman with one $180 microfinance loan. — 00:02:12
00:02:36 — Kiva.org lets anyone be a microfinancier; proposal that the brothers give to Kiva over the next week; sign-off
- ★★★ John says microfinance is an awesome idea. (hedged) — 00:02:36
- ★★ John says the problem is that the people who start microfinance organizations are usually really, really rich. — 00:02:36
- ★★★ John recommends Kiva.org, which lets anyone be a microfinancier: you give money directly to someone in extreme poverty and they pay you back. — 00:02:36 · extreme poverty
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★★ John sums up Kiva lending as like charity that costs you nothing. — 00:02:36
“it's like charity, only it doesn't cost you any money”
-
★★★ John proposes that over the next week (to 5 July 2007) he and Hank give several gifts to Kiva.org, and hopes the Nerdfighters may join. (hedged) — 00:02:36 · Nerdfighteria
Threads in this video
- update · John and Sarah move to Indianapolis (2007) — John films in his new backyard and must go back inside to paint his office. (00:00:00)
- retold · The brothers visit a village in the Dominican Republic, arranged by their dad (2007) — John retells the brothers' day visiting poor neighborhoods in the Dominican Republic and the graduating microfinance borrowers. (00:00:00)
- first on record · Is microfinance an effective way to fight poverty? — John argues microfinance breaks the no-collateral poverty cycle, beats loan sharks and gets high repayment: 'an awesome idea'. (00:02:36)
- asked · John asks Nerdfighters to make loans through Kiva.org (2007) — John proposes that he and Hank give several gifts to Kiva.org over the next week, and hopes Nerdfighters will join. (00:03:05)
Where the stories that moved here went next
- John asks Nerdfighters to make loans through Kiva.org (2007) — reported back; last: reminder, 2015-12-08
- John and Sarah move to Indianapolis (2007) — told 5×, last update 2021; last: retold, 2021-05-25
Mentioned
Central: Dominican Republic · Kiva · microfinance
Also: Avon Products · cycle of poverty · extreme poverty · loan shark · microfinance organization visited in the Dominican Republic
Also centred on Dominican Republic: June 11: SURPRISE · June 13: Dominican Debacles · Brotherhood 2.0: June 14: Good News/Bad News · How to be a Microfinancier Part 2 · Why is Haiti Poor?
Also centred on Kiva: How to be a Microfinancier Part 2 · Brotherhood 2.0: July 2nd: The Law of Compound Nerdfighting · October 24th: RANDOM NERDFIGHTING · Puppy Elephant Defends Capitalism · Awesome Bankers? · The Bank of Nerdfighteria
Also centred on microfinance: How to be a Microfinancier Part 2 · Puppy Elephant Defends Capitalism · Awesome Bankers? · Economics and Dentistry: YOUTUBE'S FAVORITE TOPICS
Later videos replying to this one
- 2007-06-29 · How to be a Microfinancier Part 2 (Hank) — continues (retell on The brothers visit a village in the Dominican Republic, arranged by their dad (2007)) — Hank retells the Dominican Republic visit from his side: feelings, the armed guard, and the women's questions to the brothers. (00:00:11)
- 2007-07-02 · Brotherhood 2.0: July 2nd: The Law of Compound Nerdfighting (John) — corrects (refine on Is microfinance an effective way to fight poverty?) — John revises Thursday's claim that only the very rich can open microfinance banks: Nerdfighters together probably could have. (00:00:29)