Financializing the Central Highlands: Indebtedness in Everyday Life of the K’ho-Chil Ethnic Communities

Abstract

Ethnic communities in Vietnam’s Central Highlands as the K’ho-Chil in reality are highly integrated into the economic mainstream. Yet, without preparedness for the bad side of the market mechanism, they are falling into the vicious cycle of debt and poverty. Evidence reveals that indebtedness has shaped everyday life and the financialization process is increasing. From the household lens, the State policies create supportive environments for credit demands while cultural assimilation makes indebtedness emotive and acceptable. Cash crops generate limited incomes while the increase of household consumption has widened the earning-spending gaps. Debts are employed to fill in such gaps but in the long-run have led to the vicious cycle of impoverishment. Better policies need to broaden opportunities for the minority to escape the monopoly of commercial crops while aid packages should redesign to target indebted problems.