33-year old Laom Ry started her roadside noodle shop with just US$20 – the sum of the monthly rent she pays for the small plot of land on the outskirts of Siem Reap City, Cambodia. Alongside her passion for cooking her speciality noodle dish of kuy tea, Ry’s primary motivation for starting the business was to earn enough to pay off her mounting debt, and keep her family afloat.
Ry used to make her living across the border in Thailand, but was keen to return home, where she is now settled with her two daughters, aged 7 and 12. “The main benefit of having my own business is that I can continue to live with my family, rather than having to seek work elsewhere,” she explains. Ry’s husband currently works as a Tuk Tuk driver in Siem Reap City, and is able to return home every month or two.
Although things have been looking up since Ry started her business, it has not been an easy road for the family. Prior to COVID-19, Ry took out a loan from the bank, but when the pandemic hit, she struggled to make the necessary re-payments. As a result, like many others in her situation, Ry resorted to borrowing from informal lenders in the community, who charge extortionately high interest rates of up to 20 per cent. Although the practice is illegal in Cambodia, with widespread efforts from authorities to crack down on the issue, informal and predatory lending remains a major challenge in communities across the country.
The burden of indebtedness is a daily struggle for many households and individuals across the region, with disproportionate impacts on women. According to a recent report from the United Nations Economic and Social Commission (ESCAP), in at least 65 per cent of selected member states and associate member states analysed, women are more financially worried and less financially resilient than men. Women’s financial worrying and resilience are closely linked to social norms and roles within their households and communities. While the control of money often remains with men, women are generally expected to take on the role of the household financial planner, including managing household budgets, handling loans from multiple lenders and controlling loan (re)negotiations.
