We have all read about the greedy moneylenders in Bangladesh that led social entrepreneur Mohammad Yunus to create microfinancing, but a similar situation still persists on the other side of the world in Hong Kong.
Avaricious moneylenders are in cahoots with job agencies with an aim to squeeze money out of immigrant domestic workers. While licenced moneylenders can charge up to an exorbitant amount of 60% annual interest under Hong Kong law, job agencies are charging the house keepers not only placement fees but also fees for training – even to teach them how to do something easily learned like using a washing machine. What’s more, when these workers can’t pay the fees, their agencies point them in the direction of the greedy moneylenders and they are left with no choice.
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In the case of Arida, a live-in helper who lost her job after three months, she was in great debt from the initial fees and forced to dig an even deeper debt by taking out more loans. She was left with the meagre amount of $3 USD per day to support herself and her family back home. Why is it that the government is not controlling the outrageous behavior of these moneylenders? What about workers’ rights – shouldn’t labor laws be able to prevent such things from happening?
Unsurprisingly, “in the past two years, the number of licensed moneylenders listed in Hong Kong’s Companies Registry increased 20 percent”. This I assume, is the result of lenders jumping at the chance to make money from the helpless. Consequentially, thousands of women are subjected to this treatment each year; there has to be something done about it. It sounds to me, that the exploited workers need social entrepreneurs like Yunus to help them.
Prasso, Sheridan, and Cathy Chan. “Indentured Servitude, Hong Kong-Style.” Bloomberg Businessweek Markets & Fincance. BLOOMBERG L.P, 15 Nov. 2012. Web. 18 Nov. 2012. <http://www.businessweek.com/articles/2012-11-15/indentured-servitude-hong-kong-style#r=nav-r-story>.