PhD Topic

Eradicating Poverty with Income Contingent Loans

Overview

This research explores how income contingent loans (ICLs), where repayments are linked to income, can move beyond their limited use in higher education to become a broader tool for financing low-cost housing, education, healthcare and daily essentials such as food, clothing and utilties.

By tying repayments to capacity to pay, ICLs protect borrowers during times of low income while ensuring lenders recover funds as prosperity grows. One challenge is that existing ICLs rely heavily on tax agencies and lack modular, ready-to-use systems, making them hard to adopt in many countries.

My project seeks to fill this gap by designing scalable, modular systems for administering ICLs specifically for poverty eradication, supported by policy frameworks that make adoption practical for both developed and developing economies.

Research Goals

Design modular systems for loan origination, income monitoring, repayment scheduling, and risk management.
Develop income verification models that use banking and financial data, not just tax systems.
Build user-friendly interfaces for borrowers, lenders, and government agencies.
Create policy guidelines that show how governments, banks, and enterprises can collaborate.

Methodology

The study uses a Design Science Research framework, moving through four stages:

Problem identification – stakeholder consultations in Australia (advanced economy) and Vietnam (developing economy).
System design – building modular technical blueprints for ICL administration specifically for poverty eradication.
Evaluation – refining designs through expert feedback from policymakers, financial institutions, and system specialists.
Comparative analysis – testing adaptability across institutional settings.

Ethical safeguards; privacy, fairness, transparency, and informed consent—will underpin all stages.

Expected Outcomes

Theoretical contributions: New insights into how institutional contexts shape the feasibility of ICLs.
Practical outputs: A system architecture, prototype modules, and guidelines for real-world adoption.
Policy impact: Frameworks for building sustainable credit systems that align repayment obligations with income.

Ultimately, the project aims to position ICLs as a ladder to increased producitivity and income and a way out of poverty on a global scale.