“…Daru et al . () discussed the root causes of debt bondage, which include: interlinked and monopolistic labour and credit markets, deeply entrenched social exclusion, and asymmetric information particularly regarding legal rights. The above causes could be identified as credit market imperfection, credit rationed households, lower educational status of households.…”
Section: Child Labour Debt Bondage and Microfinancementioning
confidence: 99%
“…However, countries with bonded child labour have a lower level of financial sector development. Daru et al (2005) discussed the root causes of debt bondage, which include: interlinked and monopolistic labour and credit markets, deeply entrenched social exclusion, and 4 Climate related risk is a major source of income fluctuations almost in every year for rural households in the northwestern region of Bangladesh, which is termed as Monga, a "near-famine" situation. This situation occurs during mid September to mid December, a period between transplantation and harvest of aman paddy.…”
Section: Child Labour Debt Bondage and Microfinancementioning
This research aims to discover whether access to microinsurance might make any difference for the microcredit receivers in reducing child labour by decomposing households into three broad groups: microcredit participants with microinsurance, microcredit participants without microinsurance and non‐participants of microcredit and microinsurance. In extremely poor households, quasi health and/or microlife insurance in combination with microcredit have a significant effect of reducing child labour. In moderately poor households, microinsurance does not make any difference in determining child labour. Microfinance has no role in determining child labour in households above the poverty level.
“…Daru et al . () discussed the root causes of debt bondage, which include: interlinked and monopolistic labour and credit markets, deeply entrenched social exclusion, and asymmetric information particularly regarding legal rights. The above causes could be identified as credit market imperfection, credit rationed households, lower educational status of households.…”
Section: Child Labour Debt Bondage and Microfinancementioning
confidence: 99%
“…However, countries with bonded child labour have a lower level of financial sector development. Daru et al (2005) discussed the root causes of debt bondage, which include: interlinked and monopolistic labour and credit markets, deeply entrenched social exclusion, and 4 Climate related risk is a major source of income fluctuations almost in every year for rural households in the northwestern region of Bangladesh, which is termed as Monga, a "near-famine" situation. This situation occurs during mid September to mid December, a period between transplantation and harvest of aman paddy.…”
Section: Child Labour Debt Bondage and Microfinancementioning
This research aims to discover whether access to microinsurance might make any difference for the microcredit receivers in reducing child labour by decomposing households into three broad groups: microcredit participants with microinsurance, microcredit participants without microinsurance and non‐participants of microcredit and microinsurance. In extremely poor households, quasi health and/or microlife insurance in combination with microcredit have a significant effect of reducing child labour. In moderately poor households, microinsurance does not make any difference in determining child labour. Microfinance has no role in determining child labour in households above the poverty level.
“…Microfinance is just one of the tools that can be deployed for achieving poverty reduction (Besley and Burgess, 2003; Daru et al, 2005) although there is a widespread impression that microcredit alone should be sufficient to reduce poverty. In the foreword of the best‐selling book by Sinclair (2012), in a section entitled ‘Too good to be true,’ David Korten, the author of When Corporations Rule the World , observes: Microfinance is now a $70 billion industry and some investors and microfinance institutions enjoy eye‐popping returns.…”
Section: Was the Microfinance Movement Too Ambitious?mentioning
Most contributions in the fast‐growing literature on microfinance seem to agree that all the stakeholders (borrowers, lenders, communities, government and regulators, interested third parties) should become fully aware of the potentiality of the joint value creation achieved through cooperation.
“…While borrowing can help households to faster access health care in case of illness
[16], taking out loans in such situation often leads to the sale of productive assets and results in impoverishment. For example, in East Asia, the inability to repay loans can lead to debt bondage, literally enslaving people
[17]. Van Damme et al .…”
BackgroundBorrowing money is a common strategy to cope with health care costs. The impact of borrowing on households can be severe, leading to indebtedness and further impoverishment. However, the available literature on borrowing practices for health is limited. We explore borrowing practices for paying for health care by the poor in Cambodia and provide a typology, associated conditions, and the extent of the phenomenon.MethodsIn addition to a semi-structured literature review, in-depth interviews were conducted with representatives of 47 households with health-related debt and 19 managers of formal or informal credit schemes.ResultsA large proportion of Cambodians, especially the poor, resort to borrowing to meet the cost of health care. Because of limited cash flow and access to formal creditors, the majority take out loans with high interest rates from informal money lenders. The most common type of informal credit is locally known as Changkar and consists of five kinds of loans: short-term loans, medium-term loans, seasonal loans, loans for an unspecified period, and loans with repayment in labour, each with different lending and repayment conditions and interest rates.ConclusionThis study suggests the importance of informal credit for coping with the cost of treatment and its potentially negative impact on the livelihood of Cambodian people. We provide directions for further studies on financial protection interventions to mitigate harmful borrowing practices to pay for health care in Cambodia.
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