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the Imposed Constitution

Consequences[edit]

Revenue[edit]

The International Labour Organization (ILO) estimates that $51.2 billion is made annually in the exploitation of workers through debt bondage.[38] 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.[6]

On-going cycle[edit]

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.[6][32] These children generally do not have access to education thus making it impossible to get out of poverty.[39] Moreover, if a relative who still is in debt dies, the bondage is passed on to another family member, usually the children.[39] At the International Labour Organization Convention, this cycle was labeled as the “Worst Forms of Child Labor.”[39]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.[39] 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.[39]

Policy initiatives[edit]

The United Nations[edit]

Debt bondage has been described by the United Nations as a form of “modern day slavery”[5] 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.