TY - JOUR
T1 - Compounding crises of social reproduction
T2 - Microfinance, over-indebtedness and the COVID-19 pandemic
AU - Brickell, Katherine
AU - Picchioni, Fiorella
AU - Natarajan, Nithya
AU - Guermond, Vincent
AU - Parsons, Laurie
AU - Zanello, Giacomo
AU - Bateman, Milford
N1 - Funding Information:
This research team and paper was supported by the UKRI Global Challenges Research Fund [Grant number ES/T003197/1] and the British Academy Postdoctoral Fellowship scheme [ref: pf170152].
Publisher Copyright:
© 2020
PY - 2020/8/2
Y1 - 2020/8/2
N2 - The COVID-19 pandemic has hit at a time when microfinance is at its historical peak, with an estimated 139 million microfinance customers globally. Cambodia's microfinance sector is one of the fastest growing, and like others in the Global South has moved from offering entrepreneurial capital to everyday liquidity, and even disaster relief. In this Viewpoint, however, we argue that the promotion of microfinance as market-based relief and recovery from the pandemic should be a source of concern, not comfort. We firstly suggest that as a result of the health and economic impacts associated with COVID-19, credit-taking is likely to escalate further in terms of the number of borrowers and loan amounts. Second, we contend that a growing reliance on MFIs will leave households undernourished, and further vulnerable to its disciplining and extractive impulses. Third, we argue that the interplay between over-indebtedness, pre-existing malnutrition challenges, and the global public health crisis of COVID-19 represents a major challenge to gender equality and sustainable development. Coordination between the Cambodian government, microfinance lenders, international investors, and development partners is vital to offer debt relief. Furthermore, to reverse the reliance of so many households on the microfinance industry for survival, inclusive socio-economic policies and public welfare services must be prioritised.
AB - The COVID-19 pandemic has hit at a time when microfinance is at its historical peak, with an estimated 139 million microfinance customers globally. Cambodia's microfinance sector is one of the fastest growing, and like others in the Global South has moved from offering entrepreneurial capital to everyday liquidity, and even disaster relief. In this Viewpoint, however, we argue that the promotion of microfinance as market-based relief and recovery from the pandemic should be a source of concern, not comfort. We firstly suggest that as a result of the health and economic impacts associated with COVID-19, credit-taking is likely to escalate further in terms of the number of borrowers and loan amounts. Second, we contend that a growing reliance on MFIs will leave households undernourished, and further vulnerable to its disciplining and extractive impulses. Third, we argue that the interplay between over-indebtedness, pre-existing malnutrition challenges, and the global public health crisis of COVID-19 represents a major challenge to gender equality and sustainable development. Coordination between the Cambodian government, microfinance lenders, international investors, and development partners is vital to offer debt relief. Furthermore, to reverse the reliance of so many households on the microfinance industry for survival, inclusive socio-economic policies and public welfare services must be prioritised.
KW - Asia
KW - COVID19
KW - Cambodia
KW - Microfinance
KW - Over-indebtedness
KW - Social reproduction
UR - http://www.scopus.com/inward/record.url?scp=85088937945&partnerID=8YFLogxK
U2 - 10.1016/j.worlddev.2020.105087
DO - 10.1016/j.worlddev.2020.105087
M3 - Comment/debate
AN - SCOPUS:85088937945
SN - 0305-750X
VL - 136
JO - WORLD DEVELOPMENT
JF - WORLD DEVELOPMENT
M1 - 105087
ER -
