Debt as a tool for community development

I have been particularly interested in the prospect of debt (or credit) as a tool for community development. While we tend to think of debt in terms of our credit cards, there are ways to structure debt in order to have the impact we collectively desire. The microfinance movement started by Mr. Yunus and his Grameen Bank is currently the most popular version of "debt for development" and for good reason. Grameen has had unprecedented success and growth in developing nations based on their social capital model that targets women and other groups that have little to no access to capital. This model has worked very well in villages and countries where people have little else to rely on but their immediate community, and is even being applied in the United States by groups such as the Washington Community Alliance for Self Help (WA CA$H). This is all exciting, but I have recently been attracted to a more democratized model.

The Calvert Foundation has pioneered a community investment model that seems to be working very well. The main point of attraction that I feel towards this investment option is that there is so much choice involved. People can obviously choose the amount they would like to invest, but beyond that there are options to select the region of the US that your money will be invested in and you can even set your own interest rate (from 0-3%). These dollars then go to non-profits, community development groups, and social enterprises working to alleviate poverty.

This democratization of investment is really inspiring to me because it allows for individuals to make choices about where their money has impact. Additionally, an investment with the Calvert Foundation seems very secure given their SRI industry clout and the diversification that they employ. Once I get some extra cash it will most definitely be invested in the Calvert Foundation.