Cambodia: how microcredit is making the world’s poor even poorer

IWTW ‘Explore’ is about highlighting different trends around the world and presenting audiences with both sides of the story in order to facilitate a better understanding of world issues and decision making in the spheres of the economy, society, environment, technology and politics.

What is it about?

Microcredits for the world’s poor have long been considered the ideal way to combat poverty. But this film documents a bleak scenario — in which microcredits have destroyed entire families. Over-indebtedness has driven some recipients to suicide.

Expectations were high. When Muhammad Yunus, the “banker to the poor” and founder of the Grameen Bank for microfinance in Bangladesh, received the Nobel Peace Prize for his work in 2006, it was clear to many that the principle of helping people to help themselves would lift many out of poverty.

From the 1980s to the early 2000s, microcredits were seen as one of the best tools for combating poverty. However, the loans, which were initially seen as a positive inflow of liquidity, quickly led to further financial obligations for many families. After all, interest had to be paid on these loans. Illegal lenders stepped in. The pressure on families became unbearable, leading to the sale of land, migration, the break-up of families and ultimately even suicide.

The film tells the stories of three Cambodian families. Along the way, it debunks the myth of microfinance as a tool that truly helps the poor. Told through the eyes of the protagonists and through their personal experiences, this film highlights the hardships faced by so many Cambodians because of debt.

Why should I watch it?

  • More than 353K views since Jan 16, 2025
  • More than 5.8K likes

Full video (by DW Documentary)

IWTW note: The opinions in the video don’t necessarily represent those of IWTW. The goal of IWTW ‘Explore’ is to inform its audience about interesting developments around the world through a selection of short and long documentaries. IWTW considers those documentaries to be great starting points for further discussion. I strive to update the selection of content should ‘better’ documentaries emerge over time.

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