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Forced Labour and its Economic Implications

Context:

The International Labour Organization (ILO) recently unveiled a report titled ‘Profits and poverty: The economics of forced labour’, shedding light on the dire economic implications of forced labour globally. According to the report, forced labour is responsible for generating illegal profits amounting to a staggering USD 36 billion annually. This alarming revelation underscores the pressing need for concerted international efforts to combat and eradicate forced labour, ensuring the protection of vulnerable individuals and upholding fundamental human rights worldwide.

Relevance:

GS I: Issues Related to Children

Dimensions of the Article:

  1. Forced Labour Defined by ILO
  2. Key Highlights from the Report
  3. Recommendations from the Report on Forced Labour
  4. International Labour Organisation (ILO): Overview

Forced Labour Defined by ILO:

Forced or compulsory labour is described by the International Labour Organization (ILO) as any work or service extracted from an individual under the threat of a penalty, where the person has not offered themselves voluntarily.

  • Involuntary Work: This refers to work carried out without the worker’s free and informed consent.
  • Coercion: This denotes the methods employed to force an individual into work against their will and without their consent.
Key Highlights from the Report:
  • Illegal Profits: Forced labour results in illegal gains amounting to USD 36 billion annually, marking a 37% surge since 2014.
  • Regional Illegal Profits: Europe and Central Asia lead with annual illegal profits of USD 84 billion, trailed by Asia and the Pacific at USD 62 billion, the Americas at USD 52 billion, Africa at USD 20 billion, and the Arab States at USD 18 billion.
  • Profit per Victim: Traffickers and criminals now make approximately USD 10,000 per victim, up from USD 8,269 ten years prior.
  • Commercial Sexual Exploitation: This form accounts for 73% of the total illegal profits, despite constituting only 27% of the victims in privately imposed labour.
  • Sectors Profiting from Forced Labour:
    • Industry: Leads with illegal profits of USD 35 billion, which includes mining, quarrying, manufacturing, construction, and utilities.
    • Services: Follows with USD 20.8 billion, covering wholesale and trade, accommodation and food services, art and entertainment, personal services, administrative and support services, education, health and social services, and transport and storage.
    • Agriculture: Contributes USD 5.0 billion, including forestry, hunting, crop cultivation, livestock production, and fishing.
    • Domestic Work: Yields USD 2.6 billion and is performed in third-party households.
  • Increase in Forced Labour Population: In 2021, 27.6 million people were subjected to forced labour on any given day, indicating a rise of 2.7 million since 2016.

Recommendations from the Report on Forced Labour:

  • Investment in Enforcement: There is an urgent call to invest in robust enforcement measures to disrupt illegal profit flows and ensure those responsible face consequences.
  • Strengthening Legal Frameworks: Enhancing and reinforcing legal frameworks is pivotal to effectively combat forced labour. This includes drafting and implementing stricter laws and regulations against forced labour practices.
  • Training for Enforcement Officials: Continuous training and capacity-building initiatives should be provided to law enforcement officials. This will equip them with the necessary skills and knowledge to identify, investigate, and prosecute cases of forced labour effectively.
  • Expansion of Labour Inspection: Extending labour inspection activities to high-risk sectors is crucial. This proactive approach can help identify and address forced labour practices in industries where exploitation is prevalent.
  • Coordination Between Law Enforcement Agencies: There is a need for improved coordination and collaboration between labour and criminal law enforcement agencies. This synergy will facilitate a more cohesive and efficient response to forced labour cases.
  • Addressing Root Causes: While enforcement actions are vital, addressing the root causes of forced labour is equally important. Efforts should focus on tackling issues such as poverty, inequality, lack of education, and limited access to decent work opportunities.
  • Safeguarding Victims: Victims of forced labour must be provided with adequate support, protection, and rehabilitation services. It is essential to prioritize their well-being and ensure they have access to justice, compensation, and redress.
  • Promotion of Fair Recruitment: To prevent forced labour at its source, there is a need to promote fair recruitment practices. This involves establishing and enforcing regulations that safeguard workers from exploitative recruitment practices and ensuring transparency throughout the recruitment process.
  • Freedom of Association and Collective Bargaining: Upholding and protecting the rights of workers to associate freely and bargain collectively is crucial. Empowering workers to voice their concerns, negotiate better working conditions, and participate in decision-making processes can significantly contribute to the prevention and elimination of forced labour.

International Labour Organisation (ILO): Overview

Establishment:

  • Founded in 1919 under the Treaty of Versailles post-World War I.
  • Established to promote universal and lasting peace through social justice.

UN Specialized Agency:

  • Became a specialized agency of the United Nations in 1946.

Tripartite Structure:

  • Unique tripartite organization involving representatives of governments, employers, and workers in its executive bodies.

Membership:

  • India is a founding member, and the ILO has a total of 187 member states.

Leadership Role:

  • In 2020, India assumed the Chairmanship of the Governing Body of ILO.

Headquarters:

  • Located in Geneva, Switzerland.

Awards and Recognition:

  • Awarded the Nobel Peace Prize in 1969 for efforts in improving fraternity and peace among nations.
  • Recognized for pursuing decent work, justice for workers, and providing technical assistance to developing nations.

-Source: The Hindu


May 2024
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