Tuesday, January 22, 2013

Child Labor & FDI!

Just saw a documentary produced by BBC under Our World series dealing with the problem of child labor in cotton industry in India & cocoa in Ivory Coast-both employing child labor, often enslaved and earning nothing at a tender age. The weaving unit in India from whom leading brands like GAP, Marks & Spencer etc sourced supplies looked okay in terms of working conditions & wages but the owner could not claim the same below the spinning unit. Since the supply chain begins with picking up of cotton in the fields, action should also begin from there. The responsibility must be shared by the local govt. under whose jurisdiction the laws prohibiting child labor & minimum wages are violated & the brands in developed world, which charge exorbitant prices but care little about the poor people at the first stage of supply chain.

As we introduce FDI into various segments of Indian economy, we should ensure that the benefits of investment flow to the poor of the poorest & we are not just exploited as a market. The stipulation for companies like Ikea, which have been granted permission to set up businesses in India, that a fixed percentage of material must be sourced locally should stay. At the same time, steps must be taken to ensure that no child labor is involved at any stage & remunerative wages are paid to everyone. Wonder why our own media remains confined to political debates in the capital & cannot do stories revealing how politics & economy is actually impacting the life & living of our people in a globalized economy!

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