Name______

Date______

Period______

Why is there poverty in the world?

Have you ever considered why some people are “haves” and some are “have nots?” Why is there poverty in the world? What are the causes of poverty? Is there anything a 7th grader at Thomas Jefferson Middle School can do about erasing poverty?

Actually, you can do something about poverty. You can educate yourself and others. You can use the website Kiva.org to learn about microfinance and have a real impact in the struggle to eliminate poverty. The directions listed below will help you accomplish this noble goal:

  1. A basic understanding of microfinance, important economic terms, and reasons why banks usually do not conduct business with poor people.
  2. Lend money to an entrepreneur in the country of your choice. Consider risks when selecting a client.
  3. Create an infomercial showing visual, text, and/or audio information about the person you loaned to as well as explain how Kiva works.

Question 1: (Prediction) Why do you think banks do not usually lend money to poor people? ______

Question 1: (Answer) Banks usually do not lend money to poor people because…

A. they have no money to open a savings account

B. they have little or no collateral

C. they have no history of using banks or employment to check

D. may not be able to complete paperwork because of illiteracy

I Go to the Kiva page at either lissteach.webs.com or heagneyhistory.webs.com and click on the Indexmundi weblink. Review your attached vocabulary words, look at the charts, and answer the following questions:

  1. View “infant mortality” and sort by “ALL.” What number is the United States? ______What did you notice about the countries at the top of the list?______

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  1. View “life expectancy” and sort by “ALL.” What number is the United States? ______What did you notice about the countries at the top of the list?______

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  1. View “fertility rate” and sort by “ALL.” What number is the United States? ______What did you notice about the countries at the top of the list?______

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  1. View “literacy rate” and sort by “ALL.” What number is the United States? ______What did you notice about the countries at the top of the list?______

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II Go to the Kiva page at lissteach.webs.com or heagneyhistory.webs.com and watch the Zaption video. Answer all questions.

III LENDING TO KIVA CLIENTS

  1. Go to the Kiva.org website. Click on the “Lend” tab. Review how to sort loans as a class. Click on “Popular Categories” and discuss. For more specific criteria click on “Advanced Filters” and refine your search using the left hand column.
  2. Go to the Kiva page at lissteachw.webs.com or heagneyhistory.webs.com and click on the sample client.

What is the purpose or use for this loan?

How long will it take to repay the loan?

What is the name of the field partner or MFI?

Is the field partner or MFI reliable? How do you know?

  1. With your partners, find an entrepreneur you would like to fund and write their complete name here: ______. Consider risk factors and emotional factors. Tell us the last name of the borrower you would like to finance and we will lend the money.
  2. Complete the client profile organizer for your borrower on paper.

IV CREATING AN INFOMERCIAL

  1. Use wevideo.com to create an infomercial
  2. The infomercial will contain the following:
  3. Introduction to the country in which you loaned. Include statistics and vocabulary words from the research sites provided. KEEP IT SIMPLE. Use pictures to tell the story – limit your words!
  4. Promotion and explanation of Kiva.org. Focus on microfinance and how it works. Again, keep this simple.
  5. A picture and details about the person to whom you loaned. Tell their story. Where do they live? What are they using the money for? Don’t skimp here…this is what generates interest in your movie! Tug on the heartstrings!
  6. Compelling visual images.
  7. A soundtrack and/or audio commentary.
  8. Present to the class. You may post your creations on the web independently.

Kiva Terms to Know

poverty - the state or condition of having little or no money, goods, or means of support

literacy rate - percentage of the adult population that knows how to read and write

infant mortality rate - the infant death rate during the first year of life per 1,000 births

life expectancy - The average period that a person may expect to live.

fertility rate - the average number of children that would be born to a woman over her lifetime

population density - measure of the average population per square mile

loan - a sum of money that is borrowed and is expected to be paid back with interest.

microfinance - Microfinance is the supply of loans, savings, and other basic financial services to the poor.
interest rate - Prices that people pay to borrow money or are paid to lend money
entrepreneur - Someone who organizes a business venture and assumes the risk for it
collateral - Borrower's pledge of specific property to a lender, to secure repayment of a loan

Kiva Client Profile

Name of the entrepreneur to whom you are lending: ______

Location: ______(town and country)

Activity (type of business) ______

Amount of Loan Request: ______

Repayment Term: ______

Field Partner: ______

Field Partner Risk Rating: ______

Explain why you selected this borrower: ______

Use the IndexMundi site to learn about your entrepreneur’s country. Provide at least three facts that address poverty there.