Wokai
 | |
| Founded | March 2007 |
|---|---|
| Founder | Casey Wilson Courtney McColgan |
| Focus | Economic development |
| Location | |
Area served | China |
| Method | Microcredit |
Key people | |
| Website | www.wokai.org |
Wokai was an organization that allowed people to contribute directly to microfinance institutions in China, which in turn lend the money to entrepreneurs in rural China.[1][2] It was a 501(c)(3) non-profit organization based in Oakland, California, with core operations in Beijing, supported by individual donors, corporate sponsors, fundraising events and grants.[3] As of May 2012, Wokai concluded operations due to funding roadblocks and the need for a new CEO.[4]
History
Wokai was founded in March 2007 by Casey Wilson and Courtney McColgan after they met studying at Tsinghua University in Beijing.[5] As of November 2010, Wokai has a leadership team of 5, a Board of Directors and an Investment Committee in addition to its 16 chapters of volunteer representatives in Beijing, Boston, Hong Kong, Los Angeles, Nanjing, New York, San Francisco, Seattle, Shanghai, Toronto and Washington, D.C., London, Singapore, Bristol, Dallas and Atlanta (with upcoming chapters in Brussels, Chicago, Kunming, Taipei and Vancouver).[6] Wokai also maintains a fellowship program called "Wokai Fellows", which allows selected individuals to work directly with one of Wokai's field partners in rural China. Wokai has raised almost $380,000 in loan capital through over 6,800 contributions from 55 countries in order to distribute 504 loans.[7]
[8] Found on the company website, features updates from the field through Wokai Fellows, profiles of Wokai volunteers from around the world, personal glimpses of rural Chinese life, and commentary about current developments in rural China and the microfinance sector.[8]
In May 2012, Wokai announced that it was concluding operations due to a variety of factors.
Activities
Wokai allowed accredited microfinance institutions in China, called "Field Partners", to post profiles of qualified local entrepreneurs on its website.[1] Wokai had two Field Partners, the Association for Rural Development of Yilong County (ARDY), which is based in Sichuan, and Chifeng Zhaowuda Women's Sustainable Development Association (CZWSDA), in Chifeng, Inner Mongolia. Lenders browse and choose an entrepreneur they wish to fund.[1] Wokai aggregates loan capital from individual lenders and transfers it to the appropriate Field Partners to disburse to the entrepreneur chosen by the lender.[3] The average loan is around $300 and is used by low-income entrpreneurs to invest in simple business improvements such as adding additional livestock or buying new products for dry goods stores.[2] As the entrepreneurs repay their loans, the Field Partners remit funds back to Wokai and the lender is alerted of this repayment.[3][9] Once the loan was repaid, the Wokai lenders could redistribute it to another entrepreneur, up to a total of three loan cycles.[3]
Donors' funds were transferred to Wokai through Google Checkout.[10] Wokai's Field Partners charge between 15% and 20% interest rates.[10] Field Partners used the interest from borrower loans to cover staff salaries, transportation, and operating costs.[10]
Shutdown
As of May 1, 2012, Wokai is no longer in business. The organization sent letters to all the donors and posted this message on its website:
Dear Wokai Contributors,
We regret to tell you that we are starting the process of winding down Wokai and concluding operations.
Wokai has been actively searching for a new CEO to take the organization to the next level in China. However, as of our application deadline, no clear candidate came to the fore. In addition, we have met unexpected funding road blocks, which have left us without the reserves necessary to extend the search further.
Considering Wokai's current situation, our Board of Directors has unanimously decided to take the resources that we currently have and wind down Wokai's operations. This approach will ensure that all of the resources that we have built up are used to continue our mission of growing microfinance in China.
Over the last 5 years since starting Wokai and 3.5 years since the launch of our website, our team and global supporter community has raised over a half a million dollars in loan capital for micro-entrepreneurs living under the poverty line in China. We've worked together to fund over 1,500 micro-loans to 961 borrowers, all at an over 98% on-time repayment rate. When you take into account the families of our micro-entrepreneurs, these funds have supported over 4,000 people to start the process of moving out of poverty. Not only have we directly impacted the lives of these individuals, but our over 30 major media features in the likes of CNN, Bloomberg, MSNBC, Phoenix TV, and China Newsweek and our global volunteer community of over 300 volunteers in 20 cities around the world has brought our cause of growing microfinance in China onto the global radar.
Moving forward, our Field Partners have committed to use the loan capital contributed to date to provide a continuous cycle of new loans to micro-entrepreneurs in China's rural Sichuan and Inner Mongolia Provinces. With this commitment, over the next ten years, over 9,000 micro-entrepreneurs should have the opportunity to lift themselves, their families, and communities out of poverty.
I cannot thank you enough for all of your support. Even as Wokai winds down, the legacy that we've built together will continue on, empowering a generation of micro-entrepreneurs to achieve their dreams and laying the groundwork for the future growth of microfinance in China.
Sincerely,
Casey Wilson Co-founder & CEO, Wokai info (at) wokai.org
See also
References
- ^ a b c Tiny loans, big difference at Bay Area Web site
- ^ a b "Role-reversal: Americans provide loans to Chinese - World Blog - msnbc.com"
- ^ a b c d "About" on Wokai.org
- ^ [1]
- ^ China Calling : Facebook for China's Farmers
- ^ "Team" on Wokai.org
- ^ "Home" on Wokai.org
- ^ a b [2]
- ^ "Bay Area Microfinance Reaches Rural Chinese : AsianWeek"
- ^ a b c "Help Center" on Wokai.org