Micro-loans raise major questions in Cambodia

Studies show microfinance increasingly harming those it claims to help, while defenders cry “fake news”.

A recent report in Cambodia detailing human rights abuses in the microfinance sector has prompted government outcry – not against predatory lenders, but against the organisations and journalists who exposed them.

The study, released by Licadho and Sahmakum Teang Tnaut (STT), paints a picture of an abusive industry that is drowning Cambodians in debt, forcing them to sell their land, migrate for work, and reduce the quality and quantity of food.

The Cambodian government has pointed to the study’s low sample size of 28 households, and the Cambodia Microfinance Association dismissed its findings. But the results of the report are consistent with a growing lack of faith in the once-heralded industry.

In full: https://www.lowyinstitute.org/the-interpreter/micro-loans-raise-major-questions-cambodia

© 2019, All rights reserved.