Urgent Evoke

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Water.org's WaterCredit micro-loans

I think the best idea to address the water crisis is an economic one: water.org's WaterCredit program (http://water.org/watercredit/watercredit-qa/).

It takes resources to solve any problem. Solving problems creates value. In the case of water, enabling easier access to clean water frees up time and effort (and sometimes money) spent obtaining clean water.

WaterCredit leverages that value created to enable a domino effect. Here's how it works: a small loan goes out to a person or community without secure access to clean water. The recipient of the loan uses the funding to invest in a water supply. They then have more time and effort to work on other things, and eventually pay back the loan. That repaid loan then goes to fund another water project in the same manner.

Contrast that to a traditional grant funding model, where the initial investment would only fund one project. Without the sustainability of repaid loans, it would take an incredible amount of grant funding to grant secure water access to the 1 out of every 6 people in the world that lack it. WaterCredit means the initial investment continues to fund change indefinitely.

There are other advantages; for example, grant funding by it's nature can lead to inefficiency or corruption; there's no incentive to use the money wisely. But a loan you have to repay removes the moral hazard inherent in grants. It's also demand-driven, flexible, and encourages innovation instead of a one-size fits all approach.

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