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Author Topic: Inadequate business descriptions, and other questionable loans  (Read 71977 times)
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Andrzej
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« Reply To This #470 on: May 08, 2009, 12:25:43 PM »

Yes and yes, Mungo. Lost enthusiasm for Kiva by many - will be very diffucult to regain...
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Unilove
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« Reply To This #471 on: May 08, 2009, 12:31:59 PM »

Well, I can say that KivaFriends are a passionate and literate bunch of people.  Whether we all agree or disagree, you can tell that we all care.  I love Kiva and what can be accomplished.  That hasn't changed.  And if Kiva takes a stand, they can - it's their business.  We can each make our own stands too.  

I think that dialogue is key to any issue, and communication is valuable.
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wthepoo
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« Reply To This #472 on: May 08, 2009, 01:00:33 PM »

For me, the issue here is that Kiva has exercised very poor judgment.  That bothers me far more than the actual cockfighting.  Listing this loan opens Kiva up to tremendous risk for bad publicity, and has a high potential for alienating some of their lenders.  Indeed, one lender stated yesterday that they would be removing their funds and taking their charity elsewhere.  Will that lender be replaced by someone who is excited that Kiva lists loans for cockfighting?

By comparison, there is very low risk for bad publicity or alienating lenders by establishing a policy that disallows loans that are used to raise animals for fighting.  Such a policy could be established without moral or cultural judgment, and I think if it had been done in the first place most people would have said "Makes sense."

You don't have to be a champion against animal cruelty to make decisions that are smart for your own company, and that recognize how the public might perceive such a decision.  Rather than take a reasonably pragmatic approach, Kiva has decided to stand on principle, a principle in this case which just doesn't make good sense or hold up to scrutiny.  The justification for listing this loan is not wanting to impose cultural imperialism.  Kiva hasn't avoiding doing so, they've just imposed it on their lenders, rather than their borrowers.

Hear, hear! I couldn't agree more, mungo.

I have heard/read from at least five or six lenders, among them some with larger portfolios, that they consider leaving Kiva altogether, and I can only imagine the impact on the donations Kiva receives, invites, Gift Certificates etc. - I know I won't as happily recommend looking at Kiva to friends as long as they are supporting such businesses, and think I am not alone in that. It is IMHO a seriously bad and ill-advised business decision apart from all ethical issues.

Kiva or some staff members might feel it would be perceived as "defeat" should they back down and change their guidelines, now, and take that as a reason to continue standing on principle - it wouldn't IMHO, just as a sign that they are listening to their lenders' widespread (though not universal) concerns and such as smart business judgment.

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I understand there is a slippery slope in play here, I really do. 

I don't - thanks for giving me that cue to address a point I wanted to address anyway.

Apart from all logical fallacities of "slippery slope"-arguments in general (see: http://en.wikipedia.org/wiki/Slippery_slope), it's IMHO plainly wrong to talk of a "slippery slope" when we are talking about consecutive decisions to be made by one entity (Kiva). The decision not to post bloodsports loans is in no way whatsoever predetermining any future decision on loans regarding lifestock loan or loans to butchers, furriers, poultry businesses, ... Kiva can draw the line basically wherever they want and choose to inside the frame of legality (and can change it, again, no problems) - but will have to live with (a) this decision and (b) its consequences.

As Gerard wrote in an earlier post here, Kiva makes a decision based on what they "feel comfortable with" to have on their website. I still am rather dumbstruck by what they (as an organisation) are obviously feeling comfortable with, and hope that we are able to make them reassess their concept of "comfort" - but I don't see any slippery slope in this.

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But given the risks on either side (listing the loan / not listing the loan) I think that the judgment in this case was very poor.  And it's almost insulting to respond to concerns about the loan by essentially saying we're not being sensitive to other cultures.

I agree. I still don't really see the cultural imperialism, either - but even if there were any, I'd have to say "fine! let's be imperialistic, then - anytime". There are certain values (not necessarily "Western" or "Northern", not necessarily connected to "prosperity") that I am willing to argue and stand up for, and even if it becomes a little bit missionary, maybe. Having respect for life and integrity (of human being as well as of other creatures) is right at the top of these - and this entails not harming anyone or any animal for so-called "entertainment". If it's bullfighting in Spain, cockfighting in Peru or the Philippines or (illegal) dogfighting in the USA doesn't matter - neither does (for me) if it's rooted in local culture or not.

Sure, discussing morals is always difficult, but the argument of "cultural imperialism" or just "local culture" is an all-too-easy way out of this debate about universal values - I once have been accused of little else than cultural imperialism when discussing the death penalty with a law professor from NYC. And sure - many people will find things I believe or do morally objectionable but I am prepared to discuss these with them, maybe reconsider them, and most of all I don't expect these people to support me in them. Same goes for "our society" here in Germany or (for most of you) in the US or in one of many other lender countries - sure, we all aren't (nearly) flawless and we should change certain things, too, but this is no reason not to oppose e.g. bloodsports wherever we find them.

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The most depressing thing is, I came into this forum 5 days ago, excited about Kiva and with grandiose plans for some amazing fundraising activities.  Today, if someone asked me about Kiva, I would have to say "Well, I used to be really excited about them, until..."  I suppose now I will have to find something else to be excited about.

Maybe give it a little more time before looking elsewhere (I know I will) - Kiva isn't perfect yet (far from it), but it's still a great idea with some very committed people backing it, following an important mission. I (think I) know how you are feeling, though.

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Kiva, if I'm hard on you, it's because I love you and want you to live up to your potential.  You're not doing that right now.  You've taken away funding to a large number of borrowers, for the sake of one or two.  That's is the net result of people who refuse to lend because you insist on listing these loans.  That position is doing more harm than good, to everyone.

Hear hear!

Thanks for your post, mungo, and best wishes,
Wolfgang.
« Last Edit: May 08, 2009, 01:04:38 PM by wthepoo » Logged
mungo
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« Reply To This #473 on: May 08, 2009, 01:29:42 PM »

Apart from all logical fallacities of "slippery slope"-arguments in general (see: http://en.wikipedia.org/wiki/Slippery_slope), it's IMHO plainly wrong to talk of a "slippery slope" when we are talking about consecutive decisions to be made by one entity (Kiva). The decision not to post bloodsports loans is in no way whatsoever predetermining any future decision on loans regarding lifestock loan or loans to butchers, furriers, poultry businesses, ...

What I am referring to is this.  When you say "I will not list this loan because some percentage of our lenders find the loan objectionable," then you create a problem where you have to ultimately decide what percentage of the lenders 'matter' in this context.  How many people need to object before it's worth pulling the loan?

However, I think that A - Kiva is already there anyway, and B - This one really isn't hard.

What's becoming clear is that it doesn't matter what we think is objectionable.  It matters what Kiva thinks is objectionable.  While not terribly social of them, I can respect that position.  They are just wrong, in this case.

Maybe give it a little more time before looking elsewhere (I know I will) - Kiva isn't perfect yet (far from it), but it's still a great idea with some very committed people backing it, following an important mission. I (think I) know how you are feeling, though.

The problem, as I said, is one of poor judgment.  And if Kiva is exercising poor judgment in this case, it is difficult to expect that they are exercising good judgment elsewhere.  I have a number of undisclosed concerns that, thus far, I have been keeping in check because I believed Kiva would exercise their best judgment in those circumstances.  I now have reason to doubt that, and those concerns have become a slightly bigger issue for me.  As much as I'd like to give them the time to work through these issues, my conscience will ultimately dictate otherwise.

All this, and I funded a loan just yesterday.
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Jane Sladen
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« Reply To This #474 on: May 08, 2009, 04:13:13 PM »

This was just posted on Animal Lovers:

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XYZ has left the following message for the Animal Lovers Lending Team:

I just received word from FincaPeru that they are refunding the loan in light of the opinions of some members of the Kiva community.

Jane Sladen.
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Eli
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« Reply To This #475 on: May 08, 2009, 04:19:41 PM »

Yep, refunded!

http://www.kiva.org/app.php?page=businesses&action=about&id=106842

What a smart move for Finca Peru.  Maybe we should all do a Finca loan in honor of their effort for change as a way of saying thank you?
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We will love only what we understand.
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wthepoo
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« Reply To This #476 on: May 08, 2009, 04:20:02 PM »

And here's the statement on the loan page (loan now being refunded):

http://www.kiva.org/app.php?page=businesses&action=about&id=106842

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This loan has been refunded for the following reason:

Kiva's field partner, FINCA Peru, has decided to refund this loan. Here FINCA Peru explains why, in their own words:

The story posted was from a young man, William, whose business is raising roosters for cockfights in Ayacucho. Cockfighting is legal in Peru. We understand and are sensitive to some of the Kiva community's opinions and criticisms regarding the use of this loan, which is why we have decided to ask Kiva to refund it, even though it has already been partially funded on the website.

We would also like to share a bit more about FINCA Peru. We are the pioneer in the village banking methodology in Peru and have been working in Lima, Ayacucho and Huancavelica since 1993. We work with over 12,300 microentrepreneurs, 93% are women, most of them mothers, and 25% are in rural areas where there are few to none financial services offered. As you may see, William's story is more of an exception than the average story of our wonderful clients.

Posted by Michelle May Kreger, Kiva Staff, from San Francisco, United States
May 8, 2009

Thank you, FINCA!

Best wishes,
Wolfgang.

PS:
Quote from: Eli
What a smart move for Finca Peru.  Maybe we should all do a Finca loan in honor of their effort for change as a way of saying thank you?

Great idea, Eli, I will do so, later or tomorrow.
« Last Edit: May 08, 2009, 04:20:58 PM by wthepoo » Logged
Canadian Here
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« Reply To This #477 on: May 08, 2009, 04:22:16 PM »

Jane:

I hope that we get confirmation about this message. (I would have rather seen a copy of the actual text.)

Lorna (& "The Critters")

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Canadian Here
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« Reply To This #478 on: May 08, 2009, 04:23:49 PM »

Awesome...

Thanks, Wolfgang and Eli!

Lorna (& "The Critters")
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cjp1973
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« Reply To This #479 on: May 08, 2009, 04:27:37 PM »

I received an email from Finca Peru.
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