The Underside of Microfinance: Performance Indicators and Informal Debt in Cambodia

Microfinance is a dominant strategy used to promote rural development around the world. Rather than directly track its impact on borrowers, however, microfinance institutions rely indicators of financial performance adopted from commercial banking as proxies for positive social impact. Yet, critical research has shown, industry depends coercive peer pressure, shaming and various forms gendered exploitation achieve high rates loan repayment. This article maintains that there need investigate how industry's own contribute ways can harm borrowers. Based qualitative in Cambodia during 2021 2022, demonstrates indicators, most notably portfolio quality, both hide exacerbate borrowers juggle debt between formal informal lenders. In making this argument, advances scholarship by showing repayment structures debt-juggling practices put at greater risk over-indebtedness. As result, able claim it successfully helps alleviate poverty, even accumulates profits appropriating wealth poor low-income households across global South.