ILO AND THE GLOBAL FORCED LABOUR - Наукові конференції
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Рік заснування видання - 2014

ILO AND THE GLOBAL FORCED LABOUR

26.04.2016 20:33

[Секція 1. Економіка, організація і управління підприємствами, галузями, комплексами]

Автор: Насіф Карім, Чернівецький національний університет імені Ю.Федьковича


The International Labour Organization (ILO) is a United Nations agency dealing with labour issues, particularly international labour standards, social protection, and work opportunities for all.[1] The ILO has 187 member states: 186 of the 193 UN member states plus the Cook Islands are members of the ILO [1].

In 1969, the organization received the Nobel Peace Prize for improving peace among classes, pursuing decent work andjustice for workers, and providing technical assistance to other developing nations [2].

The exaction of forced labour often involves a range of intermediaries such as brokers, moneylenders or criminal networks. They all take advantage of workers who are vulnerable to deception, abuse and fraud. But the individuals and enterprises that employ workers under conditions of forced labour stand to gain the most by underpaying their workers, or by not paying them at all. The ILO Global Estimate of Forced Labour in 2012 also provided evidence on the length of time that victims of forced labour were held captive. In more than one third of the reported cases that contained such information, forced labour lasted one to two years. Almost half of reported cases indicated that victims spent six months or less in forced labour.9 During this time, unscrupulous employers and criminals can make significant profits by exacting forced labour.

By the data collected by the ILO for the 2012 (table № 1) the new estimate is the aggregation of regional figures of profits for three forms of forced labour, namely forced  labour exploitation outside domestic work, forced domestic work and forced sexual exploitation. These forms concern 18.7 million victims out of the 20.9 million people estimated to be in forced labour in 2012. In absence of reliable information on the economics of state-imposed forced labour, and the theoretical difficulties in estimating the profits in forms such as child soldiers, it was decided to exclude the profits generated by the 2.2 million victims of state-imposed forced labour.




Estimated annual profits from forced labour (US$ billion)

(table № 1)




It is estimated that the total illegal profits obtained from the use of forced labour worldwide amount to US$150.2 billion per year. More than one third of the profits – US$51.2 billion – are made in forced labour exploitation, including nearly US$8 billion generated in domestic work by employers who use threats and coercion to pay no or low wages.




(figure № 1)




Globally, two thirds of the profits from forced labour were generated by forced sexual exploitation, amounting to an estimated US$ 99 billion per year. In calculating the profits, it is assumed that wages and intermediate consumption make up about 30 per cent of the total earnings of forced labour victims in forced sexual exploitation.

Victims of forced labour exploitation, including domestic work, agriculture and other economic activities, generate an estimated US$ 51 billion in profits per year. Out of those, the profits from forced labour in agriculture, including forestry and fishing, are estimated to be US$ 9 billion per year. This was calculated by estimating the difference between the value added accruing to labour (using the value added per worker, which was then multiplied by the labour share, conservatively estimated to be two thirds) and the wages paid to victims of forced labour in that sector, using information of the 2012 Global Database.

Profits for other economic activities are estimated at US$ 34 billion per year, encompassing construction, manufacturing, mining and utilities. In this case, the value added accruing to labour is calculated using the sector-specific average earnings divided by the labour share.

Finally, it is estimated that private households employing domestic workers under conditions of forced labour save about US$8 billion annually by not paying or underpaying their workers. Those savings were calculated based on the difference between the wage that domestic workers should receive and the actual wages paid to domestic workers in forced labour. Based on information in the 2012 Global Database, it can be estimated that forced domestic workers are paid on average about 40 per cent of the wage they should receive.

Profits per victim are highest in forced sexual exploitation, which can be explained by the demand for such services and the prices that clients are willing to pay, and by the low capital investments and low operating costs associated with this activity. With a global average profit of US$21,800 per year per victim, this sector is six times more profitable than all other forms of forced labour, and five times more profitable than forced labour exploitation outside domestic work [3].




References:

1- Назва. "Mission et objectifs de l'OIT"-[Електронний ресурс] - Режим доступу: http://www.ilo.org/global/about-the-ilo/mission-and-objectives/lang--fr/index.htm

2- Назва.  "The Nobel Peace Prize 1969" - 2006. -[Електронний ресурс] - Режим доступу: http://www.nobelprize.org/nobel_prizes/peace/laureates/1969/labour-history.html

3- Назва книжки. PROFITS AND POVERTY: The economics of forced labour  - 2014. -[Електронний ресурс] - Режим доступу: http://www.ilo.org/wcmsp5/groups/public/---ed_norm/---declaration/documents/publication/wcms_243391.pdf

__________________

Scientific leader: Kobelya Z.I.

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