Iris Cheng

worldbank@worldmun.org

Iris Cheng is a sophomore at Harvard College studying Economics and Social Studies from Houston, Texas. Within WorldMUN, she serves as the Committee Chair for the World Bank. Aside from WorldMUN, she serves on the John F. Kennedy Jr. Forum and works as a research assistant for various projects in economics and international affairs. In the free time, Iris enjoys making matcha lattes, going on long walks, and hanging out with her little brother.

Topic: Microloans and Debt Traps

This year, the World Bank will confront the issues regarding national development through microloans. Specifically, taxpayer-funded development banks have poured record amounts into predatory lenders that have contributed to accumulating debt in countries such as Cambodia, Jordan, Sri Lanka, and more. Although these microloans are intended to support vulnerable populations, small businesses, and entrepreneurs, high interest rates and harsh penalties have forced borrowers to sell their assets, migrate, or find alternatives to generate quick cash. As one of the major development banks continuing to invest public money into microloans, the World Bank will tackle the issue of balancing the necessity of providing capital for financially underprivileged communities with the risk of escalating indebtedness and poverty. To this effect, the World Bank will examine ways to sufficiently regulate and influence microfinance institutions and protect vulnerable populations, such as borrowers who live in rural areas, women borrowers, socioeconomically disadvantaged borrowers, and more.