On charities and microloans...

I have recently discovered Kiva and Myc4. These sites make it possible to lend money to poor people in the world (mostly in developing countries).

Kiva does not allow lenders to make a profit. Instead, repayments are typically reinvested in new loans. Alternatively, a lender can also retrieve the money after as a loan is repaid. Entrepreneurs across Asia, South America and Africa can request loans.

Just like Kiva, MyC4 puts in contact lenders in rich countries and borrowers in poorer parts of the World. Unlike Kiva, MyC4 is still in Beta phase, and it allows lenders to make benefits. MyC4 is also limited to loans targeted at a few African countries (Kenya, Uganda, Tanzania and Rwanda).

Compared to other charities, microloans have the advantage of helping local businesses get established. One could say the idea is to "teach a man how to fish, instead of giving away fish", except that the man actually knows a lot more about fishing than I do! Instead, I lend money to the fisherman and trust him to use it in whatever way he finds best, as he probably knows better what he needs.

In exchange for that, I (hopefully) make a benefit. I tend to think that development is more likely to be sustainable when based on transactions than when based on generosity. Generosity is scarce, and tends to follow the media's spotlight, which jumps from one side of the globe to the other, as disasters happen.

Charity still plays an important role. Microloans and business development require a certain degree of entrepreneurial freedom and a stable supporting infrastructure. Where these lack, charities are the only ones capable of filling in the void and helping people survive through the worst.