Perhaps a fourth reason is the youth bulge and associated predictions of escalating unemployment among youth in developing nations. Job creation just isn't keeping pace with growth among the under-30 population, particularly in the Middle East, Africa and SE Asia. For the most part, these regions don't have the same kind of entrepreneurial support systems enjoyed by the United States and other developed nations. They also don't have consistent access to quality education, so employability becomes a greater issue, especially at the bottom of the pyramid.
Helping youth understand the basic tenets of running your own business is a great start. Global Entrepreneurship Week does that, and provides models and idea exchanges to motivate budding entrepreneurs. But one week is only a start. The next step is to provide ongoing training and mentoring, as well as microloans and access to markets throughout the year.
First, an acknowledgement to Nathanial. Of all the comments I've read in the blogosphere about the Kiva controversy, yours are the most eloquent and well-explained.
To your point about efficiency, facilitating direct 1:1 loans requires substantial operational involvement -- not to mention language and connectivity barriers -- that would dramatically escalate the cost of the loan. Having talked with Matt Flannery face-to-face earlier this year, and having been a KivaFriend for the past year, I truly believe their hearts and minds are in the right place.
While they scramble to address the misperception, it is a reminder to all of us to be authentic and transparent -- not just in a controversy, but in our lives.