Notes

1) I'm going to be investing in Kyrgyzstan for two reasons: it's a country we don't hear about very often (and therefore interesting to learn about), and most of the Kiva projects from Kyrgyzstan were self-sustaining, long-term projects. I'm investing in a small dairy farmer named Gulnara. I chose dairy farming because of the above reason - dairy cows can live for many years, continually producing milk, so they seem like they'll have a longer impact. On the other hand, small business owners who need money to buy supplies may find themselves in the same position quite often. I chose Gulnara specifically because she owns less arable land than many of the other Kyrgyzstani farmers on Kiva, making her more dependent on her dairy cows than the others.

2) I am investing in a female business, but I think it actually has little impact on the business. CIA World Factbook reports that 48% of Kyrgyzstanis are employed in agriculture, and the majority of those are small family farmers. Both men and women work on those family farms. For example, Gulnara is married, so whether the loan goes to her or her husband makes no difference in the end. Farming in Kyrgyzstan can be risky. The Osh Region, where Gulnara lives, has experienced recent droughts, despite Kyrgyzstan's overall abundance of water. Higher production costs, like in gasoline, have led many farmers to flee to cities. The drop in domestic farming has then created a rise in agricultural imports, which are generally cheaper than domestic products. However, milk is one of the few agricultural products that is still a net export for Kyrgyzstan, so the dairy industry has not been as adversely affected.

3) Because I wanted to loan to a farmer, and all of the Kyrgyzstani farmers on Kiva work with their families, it wasn't possible to loan to an actual business group. However, by loaning to one member of the family, I'm indirectly investing in that entire family - husband, wife, and any kids who work on the farm. In this case, Gulnara has four children. It's nice to be helping out an entire family, instead of just one person. Gulnara previously took out a smaller loan through Kiva for the same purpose (buying cows) and repaid it in 14 months. Since this is a larger amount, I think I'll be repaid within around two years, if not earlier.

4 & 5) There are groups in Kyrgyzstan that do experience discrimination, and those groups tend to also live in the areas with more difficult lives. The richest parts of Kyrgyzstan are urban, like the capital Bishkek and city of Osh. Poorer, more rural areas are found in the east, southeast, and southwest. In those rural areas, women are often the victims of bride kidnapping and rape (illegal, but laxly enforced). The ethnic minority of Uzbeks have experienced recent violence and are concentrated in the southern Fergana Valley area. The very small Shia Muslim minority and larger ethnic Russian minority are concentrated in Bishkek and experience little to no tension with the larger groups - the Shiites because there are so few of them, and the Russians because they tend to enjoy a high status.

6) Kyrgyzstan experienced bloody ethnic riots (between the Uzbeks and Kyrgyz) in 2010 that caused an estimated 2000 deaths. That same year, President Bakiyev was ousted and a new parliamentary system created. However, since then, both social and political stability have improved. With the election of President Jeyenbekov, Kyrgyzstan became the first Central Asian country to peacefully and democratically change leaders. Persistent corruption and under-representation of minorities in the government, in addition to inequality and competition over resources, creates an environment that could potentially erupt into violence again, though it hasn't yet. By investing in a less politicized industry (dairy farming) and in a rural area (whereas previous ethnic clashes have happened in urban areas), I hope to avoid effects of any possible unrest.

7) Finally, I think that investing in Gulnara can help her community. If she's able to provide them with nutritious milk, instead of the often scarce and polluted water in Kyrgyzstan's rural areas, she can improve the overall health of the community. With additional income, she can also invest in her four children's educations, as many Kiva borrowers have mentioned. Education usually leads to higher incomes, and those children could bring more money back to her community. If she has more cows, she may even need farm hands, creating local jobs.

Sources:

Agricultural woes give way to food security concerns; Climate change creates agricultural uncertainty; CIA World Factbook, Kyrgyzstan; Are tensions likely for the Russian diaspora in Kyrgyzstan?; Politics and civil unrest; Repression in Kyrgyzstan is eroding Central Asia's only democracy; Kyrgyzstan violence, four years on to share with others. Click here ...