10 - Debt bondage, Consequences.

Debt bondage, Consequences.  Revenue.  The International Labour Organization (ILO) estimates that $51.2 billion is made annually in the exploitation of workers through debt bondage. Though the employers actively take part in accruing the debt of laborers, buyers of products and services in the country of manufacturing and abroad also contribute to the profitability of this practice. Global supply chains that deliver goods throughout the world are most likely tainted with slave labor. The reason for this includes convoluted supply chain management that crosses many international borders, ineffective labor laws, corporates claiming plausible deniability, global political-economic restructuring and well-intended consumers. This effort to eradicate modern day slavery resonates with well meaning individuals who purchase fair-trade items, hoping they are making a difference. The fair trade industry is estimated to exceed $1.2 billion annually (Davenport & Low 2012). Unfortunately, this is barely a dent into the global economy. International labor laws need to be created by various authorities such as the International Labor Organization, World Trade Organization, Interpol and the United Nations that have teeth to adequately punish the wrongdoers. On-going cycle.  In many of the industries in which debt bondage is common like brick kilns or fisheries, entire families are often involved in paying of the debt of one individual, including children. These children generally do not have access to education thus making it impossible to get out of poverty. Moreover, if a relative who still is in debt dies, the bondage is passed on to another family member, usually the children. At the International Labour Organization Convention, this cycle was labeled as the "Worst Forms of Child Labor." Researchers like Basu and Chau link the occurrence of child labor through debt bondage with factors like labor rights and the stage of development of an economy. Although minimum age labor laws are present in many regions with child debt bondage, the laws are not enforced especially with regard to the agrarian economy.  Policy initiatives.  The United Nations.  Debt bondage has been described by the United Nations as a form of "modern day slavery" and is prohibited by international law. It is specifically dealt with by article 1(a) of the United Nations 1956 Supplementary Convention on the Abolition of Slavery. It persists nonetheless especially in developing countries, which have few mechanisms for credit security or bankruptcy, and where fewer people hold formal title to land or possessions. According to some economists, like Hernando de Soto, this is a major barrier to development in these countries. For example, entrepreneurs do not dare to take risks and cannot get credit because they hold no collateral and may burden families for generations to come.  South Asia.  India was the first country to pass legislation directly prohibiting debt bondage through the Bonded Labor System (Abolition) Act, 1976. Less than two decades later, Pakistan also passed a similar act in 1992 and Nepal passed the Kamaiya Labour (Prohibition) Act in 2002. Despite the fact that these laws are in place, debt bondage in South Asia is still widespread.   According to the Ministry of Labor and Employment of the Government of India, there are over 300,000 bonded laborers in India, with a majority of them in the states of Tamil Nadu, Karnataka, and Odisha.  In India, the rise of Dalit activism, government legislation starting as early as 1949, as well as ongoing work by NGOs and government offices to enforce labour laws and rehabilitate those in debt, appears to have contributed to the reduction of bonded labour there. However, according to research papers presented by the International Labour Organization, there are still many obstacles to the eradication of bonded labour in India.  Sub-Saharan Africa.  In many of the countries like South Africa, Nigeria, Mauritania, and Ghana in which debt bondage is prevalent, there are not laws that either state direct prohibition or specify punishment. In addition, though many of the countries in Sub-Saharan Africa have laws that vaguely prohibit debt bondage, prosecution of such crimes rarely occurs. Wikipedia: Creative Commons Attribution-ShareAlike 4.0 License.This episode includes AI-generated content.