It’s no surprise that I am a big supporter of Kiva.  One thing that I really like are the updates that they send from the individual donors that I lend to.  Recently I received an email from one of the Kiva field volunteers, Omeed Selbe, who is volunteering in Phnom Penh, Cambodia, which I thought was pretty interesting.  It gives a generalized overview of things going on in Cambodia, so  I wanted to share some of it:

Cambodia is fortunate to be making gains in healthcare, education and political transparency, though the country still has a long way to go in recovering since it was plunged into tumult by the brutal Khmer Rouge regime. I don’t believe that microfinance alone is by any means a panacea for development, here in Cambodia or anywhere else in the world. However, I have witnessed the substantial impact that microfinance has on enterprising, motivated individuals.

A well regulated microfinance sector – cambodia_flag.gifcompleting the kind of work that Kiva and HKL do – provides the financial resources necessary for upward mobility to those who would otherwise lack these resources or at least pay dearly for them (e.g., through village money lenders or informal lending circles). Many Kiva/HKL [Hattha Kaksekar Limited] Borrowers have been able to significantly improve their living conditions by expanding small businesses like grocery stalls, food stands, and personal farms to the level that would create consistent increased income.

An example of the success of a Kiva loan is Ya Fatimas of Phnom Penh City. Her loan of $1000 was used to expand her modest business of selling pumpkin cakes to local villagers and to purchase a motorcycle for her husband to use for taxi services in the city. After receiving the loan she saw a substantial increase in her household income, which enables her to pay school fees for her children without sacrificing other necessities.

HKL is a socially progressive, profit-driven organization, which I have witnessed to work extremely efficiently throughout the country. The organization operates successfully in nine provinces, and has long-term plans to expand to serve the entire country. In light of HKL’s large footprint, I’m continually impressed by the intimate geographical knowledge of the HKL distribution network. Local credit officers seem to understand so well the web of interaction between all of the inhabitants of their designated village or region, and can therefore lend adequately to clients without approving over-indebtedness. HKL has been a partner with Kiva since February 2008 and is committed to further strengthening its relationship with Kiva. Look out for new HKL clients that are continually posted on Kiva.org.

I recently visited Cambodia and was able to see first hand the effects that the Khmer Rouge political party had on the country, so it is great to hear that the country is doing better and that it’s citizens are able rise out of poverty due to microfinance.