In his book Sex Trafficking: Inside the Business of Slavery, author Siddharth Kara presents a business and economic analysis of sex trafficking. Though such a study may seem heartless or dehumanizing, Kara argues that analyzing sexual slavery through the lens of economics can reveal short- and long-term solutions to end trafficking, and that, in fact, without this type of analysis intervention attempts may do more harm than good.
Kara, a former investment banker with an MBA from Columbia University, left his corporate career to pursue anti-slavery research and work. He is a board member of Free the Slaves. In his book, he argues that ending sex slavery will necessitate ending the demand for sex slavery, and that the most effective way to decrease demand is to increase risk. He presents suggested ways to increase the risk/cost of slavery to traffickers, and uses basic economic concepts, such as elasticity of demand, to evaluate the effectiveness of anti-trafficking efforts.
Many of Kara's findings are more suggestive than conclusive, which he readily acknowledges. For example, he argues that increasing the costs of using sex slaves will dramatically decrease the demand for these slaves due to the elasticity of demand for commercial sex. Though his conclusion aligns with my own beliefs and the beliefs of many NGOs, the analysis is based on an extremely small sample size that may not be representative. While this example points to some of the challenges in conducting research on human trafficking and its causes, it also points to the need for more research and data.
Kara extensively researched sex trafficking around the world, and he contextualizes his economic analysis within his firsthand interviews with sex trafficking victims and survivors, and his experiences with the market for sex slaves. While many of the most compelling parts of his books spring from these experiences, his analysis of slavery in the United States is somewhat anemic and does not discuss the sex trafficking of US citizens.
Throughout the book, Kara discusses the role that globalization has played in creating situations rife for exploitation and slavery. He demonstrates the ways that governmental policies and corrupt greed help perpetuate human rights abuses and poverty. He argues that vulnerability to trafficking can often be traced to unequal distributions of power and wealth that are only increasing as a result of globalization.
Though his book focuses mainly on sex trafficking, Kara does touch on labor trafficking issues and acknowledges the need for a similar analysis of the business of labor trafficking. Many of his insights about the economic factors that contribute to the demand for slavery and the need to increase the economic costs of slavery for producers and consumers will prove useful in such an analysis. At the same time, the causes of labor trafficking and the factors that fuel its demand are different from sex trafficking, and more research on this form of trafficking is vitally needed.
Kara's research and analysis provide a useful foundation for further efforts to effectively end slavery that is grounded in an understanding of the economic and business realities that fuel this crime.
*Fast forward to 10:00 minutes into the presentation.
Researcher Hans Rosling uses his innovative data tools to show how countries are pulling themselves out of poverty. His presentation revolves around globalization, health and economic prosperity.
About Hans Rosling: Even the most worldly and well-traveled among us will have their perspectives shifted by Hans Rosling. A professor of global health at Sweden's Karolinska Institute, his current work focuses on dispelling common myths about the so-called developing world, which, he points out, is no longer worlds away from the west. In fact, most of the third world is on the same trajectory toward health and prosperity, and many countries are moving twice as fast as the west did.
In December, the world watched the progress of the Copenhagen United Nations Climate Change Conference. While the conference may not have been front and center in the anti-trafficking community, the impact of environmental degradation on slavery and human rights cannot be ignored.
This issue is particularly pressing in light of the recent tragic events in Haiti resulting from a 7.0 earthquake. Haiti already faced extremehardships and poverty, making the devastation even greater. Haiti also has a significant problem with trafficking of children called restaveks for forced domestic labor, often in situations of extreme abuse and neglect.
Environmental catastrophes, from Hurricane Katrina to the 2004 tsunami in the Indian Ocean to a cyclone in Myanmar, wreck incredible damage on people's lives. Sadly, the devastation often impacts the most vulnerable, leaving them even more susceptible to abuse and exploitation. According to the United Nations Climate Change Conference, while it is hard to predict the extent of the consequences of climate change, we can expect more droughts, more flooding, and increased incidence of extreme weather, all of which could negatively impact people's lives in extreme ways.
According to Linking Human Rights and the Environment, by Romina Picolotti and Jorge Daniel Taillant, "victims of environmental degradation tend to belong to more vulnerable sectors of society - racial and ethnic minorities and the poor - who regularly carry a disproportionate burden of [human rights] abuse. Increasingly, many basic human rights are being placed at risk, as the right to health affected by contamination of resources, or the right to property and culture comprised by commercial intrusion into indigenous lands." Such people are also extremely vulnerable to trafficking.
In The Slave Next Door, Kevin Bales and Ron Soodalter make the link between the environment and human trafficking even more explicit with a slightly different perspective. In their discussion of slavery and consumer goods, they point out that trafficking victims are often forced to contribute to environmental degradation to produce products. Bales and Soodalter describe teh horrific conditions endured by slaves in charcoal camps in Brazil: "slaves suffer burns and cuts, the heat is ferocious, and their flesh wastes away. . . Unknowingly, the US consumer provides the incentive for this destruction of both human life and the environment" (146).
A report entitled Close to Slavery: Guestworker Programs in the United States by the Southern Poverty Law Center, shows another point of intersection between environmental issues and human trafficking. They highlight a trafficking case where a company exploited guestworkers from India to fill hotel positions vacated by people who evacuated after Hurricane Katrina. Threatened with massive "debts" and unable to leave their employee because of visa restrictions, they were ripe for exploitation.
Environmental degradation and slavery exist in a vicious cycle where people can be trafficked for labor that harms the environment or as the result of environmental issues, and where such environmental degradation places additional burdens on those who are already the most vulnerable to trafficking. Ending slavery and promoting human rights will require addressing this cycle.
The State Department released the ninth Trafficking in Persons Report on 16th. In addition to the country reports, the TIP report also highlighted the impact of the economic crisis on the global trade in persons for forced labor and commercial sexual exploitation. As Secretary Clinton said in her opening letter to the report, “This year, there is new urgency in this call. As the ongoing financial crisis takes an increasing toll on many of the world’s migrants – who often risk everything for the slim hope of a better future for their families – too often they are ensnared by traffickers who exploit their desperation” (1).
According to the report, the economic crisis has lead to a decrease in legitimate economic opportunities for the world’s most vulnerable people, an increased demand for extremely cheap labor, and a decrease in the resource available to anti-trafficking NGOs (7,9). Combined, they form a lethal combination for trafficked victims and potential victims.
As the report states, “workers are made more vulnerable to forced labor practices because of high rates of unemployment, poverty, crime, discrimination, corruption, political conflict, and cultural acceptance of the practice” (17). The TIP report cites the International Labor Organization’s January 2009 report that found that the global financial situation is “causing dramatic increases in the numbers of unemployed, working poor, and those in vulnerable employment “(32-3).
The situation is likely to only grow worse, particularly in areas that already have extreme trafficking problems. The TIP report notes that Southeast Asia – Already home to 77% of the world’s forced labor – could face unemployment as high as 113 million people in 2009 (33). In Eastern Europe “international organizations and local authorities have already reported a rise in victims of labor exploitation” (34). The situation is not likely to improve in the near future, according to a recent World Bank report that suggests that economic recovery will be slow, particularly in impoverished nations.
In addition to the cost to trafficked victims directly, the “cost of coercion” or the loss of wages people would earn were they not enslaved, also harms the families of trafficked victims, further exacerbating global poverty and making people more vulnerable to being trafficked themselves (34).
Even as increased vulnerability is leading to growth in the supply of trafficked victims, the financial crisis is also leading to growth in the demand for trafficked victims. The TIP report cites UN officials as stating that “(t)hey expect the impact of the crisis to push more business underground to avoid taxes and unionized labor” (37). The demand for cheap products and services, coupled with the pressure of the economic crisis is thus fueling the demand for modern-day slavery.
The TIP report also points out that this crisis affects different populations differently. The report notes that “Research links the disproportionate demand for female trafficking victims to the growth of certain “feminized” economic sectors (commercial sex, the “bride trade,” domestic service) and other sectors characterized by low wages, hazardous conditions, and an absence of collective bargaining mechanisms” (36). According to FAIR Fund, 80% of trafficked victims are women and girls, and the current economic situation is likely to only increase this disparity. Plans to address the economic crisis need to consider the gendered manifestations of the crisis, and ensure that stimulus efforts do not simply create economic opportunities for men only.
Finally, along with increased supply and demand, anti-trafficking efforts are also facing a decline in resources to work to prevent trafficking, assist survivors, and punish perpetrators. The TIP report points out that “The tough times are also affecting the work of anti-trafficking NGOs, which often provide crucial services in the absence of adequate government or private-sector programs. Donors are tightening their belts, and organizations are finding it difficult to continue their operations” (40).
While this news might seem dire, the TIP report also pointed to and encouraged efforts to continue to fight trafficking, suggesting that anti-trafficking work is more important now than ever before in light of these recent developments. For example, the report pointed out that, “the enactment of the Trafficking Victims Protection Reauthorization Act of 2008 (TVPRA of 2008) strengthened the U.S. Government’s criminal statute on forced labor” (25), a fortuitous develop in light of recent indications that labor trafficking is increasing.
The TIP report suggested that everyone has a role to play in decreasing demand for labor trafficking, from individuals to governments (31), suggesting that “One key to addressing such demand is raising awareness about the existence of forced labor in the production of goods. Many consumers and businesses would be troubled to know that their purchases— clothes, jewelry, and even food—are produced by individuals, including children, who are forced into slave-like conditions” (32).
The ninth Trafficking in Persons Report paints a grim picture: the global financial crisis is leading to increased supply of vulnerable people, increased demand for cheap labor and economic exploitation, and a decrease in services for trafficked survivors and efforts to fight trafficking. Rather than being paralyzing, this picture should be motivating. The call to fight modern-day slavery is more pressing now than ever before, and as Secretary Clinton concluded her opening remarks on the report “I am confident that together we can make a difference, all over the world, in the lives of people deprived of their freedom” (1).
Trade in people is not a new phenomenon, but the modern manifestation of slavery, according to US researchers. However, writing in the Journal of Global Business Advancement, they point out that human trafficking and trade in human organs has intensified with increased globalization. They hope to raise awareness of the issue among the business research community with a view to finding solutions.
It is a tragic fact of life that the world's most disadvantaged people are often the most easily exploited. Seeing greener grass on foreign shores, many are willing to risk everything with a people smuggler and to spend their life savings to be transported across borders with counterfeit documents. They often leave family behind, hoping to send money home, but more often than not end up beholden to the smugglers' associates and enslaved in a lowly job with little pay and poor accommodation, constantly on the look out for the shadow of immigration officials over their shoulder.
Now, Patriya Tansuhaj of the Department of Marketing and International Business Institute at Washington State University, in Pullman and Jim McCullough of the University of Puget Sound, Tacoma, suggest that international human trade is essentially the dark side of international business. They claim that the problem has been largely ignored by the international business research community. "International business academicians can no longer leave the understanding of this phenomenon in the hands of political scientists, sociologists and anthropologists," they assert, "We must be actively involved in providing a more systematic explanation with a clear set of recommendations to governments and the global business sectors."
The researchers suggest there has been a widespread assumption that globalization can only have a positive impact on individuals and societies around the world. This world view is far too simplistic and unrealistic, the researchers say, and ignores the dark side of international business to the detriment of legality and ethics. They cite the example of young Laotians looking West across the Mekong River to Thailand and dreaming of an escape that will give them and their loved ones a new life outside the poverty trap. Illegal crossings facilitated by criminals who trade in people is common here and across borders in the Americas, Asia, Africa, and Europe.
The globe's worst food crisis in a generation emerged as a blip on the big boards and computer screens of America's great grain exchanges. At first, it seemed like little more than a bout of bad weather.
In Chicago, Minneapolis and Kansas City, traders watched from the pits early last summer as wheat prices spiked amid mediocre harvests in the United States and Europe and signs of prolonged drought in Australia. But within a few weeks, the traders discerned an ominous snowball effect -- one that would eventually bring down a prime minister in Haiti, make more children in Mauritania go to bed hungry, even cause American executives at Sam's Club to restrict sales of large bags of rice.
As prices rose, major grain producers including Argentina and Ukraine, battling inflation caused in part by soaring oil bills, were moving to bar exports on a range of crops to control costs at home. It meant less supply on world markets even as global demand entered a fundamentally new phase. Already, corn prices had been climbing for months on the back of booming government-subsidized ethanol programs. Soybeans were facing pressure from surging demand in China. But as supplies in the pipelines of global trade shrank, prices for corn, soybeans, wheat, oats, rice and other grains began shooting through the roof.
At the same time, food was becoming the new gold. Investors fleeing Wall Street's mortgage-related strife plowed hundreds of millions of dollars into grain futures, driving prices up even more. By Christmas, a global panic was building. With fewer places to turn, and tempted by the weaker dollar, nations staged a run on the American wheat harvest.
Foreign buyers, who typically seek to purchase one or two months' supply of wheat at a time, suddenly began to stockpile. They put in orders on U.S. grain exchanges two to three times larger than normal as food riots began to erupt worldwide. This led major domestic U.S. mills to jump into the fray with their own massive orders, fearing that there would soon be no wheat left at any price.
"Japan, the Philippines, [South] Korea, Taiwan -- they all came in with huge orders, and no matter how high prices go, they keep on buying," said Jeff Voge, chairman of the Kansas City Board of Trade and also an independent trader. Grains have surged so high, he said, that some traders are walking off the floor for weeks at a time, unable to handle the stress.
"We have never seen anything like this before," Voge said. "Prices are going up more in one day than they have during entire years in the past. But no matter the price, there always seems to be a buyer. . . . This isn't just any commodity. It is food, and people need to eat."
The global rush to switch from oil to energy derived from plants will drive deforestation, push small farmers off the land and lead to serious food shortages and increased poverty unless carefully managed, says the most comprehensive survey yet completed of energy crops.
The United Nations report, compiled by all 30 of the world organisation's agencies, points to crops like palm oil, maize, sugar cane, soya and jatropha. Rich countries want to see these extensively grown for fuel as a way to reduce their own climate changing emissions. Their production could help stabilise the price of oil, open up new markets and lead to higher commodity prices for the poor.
But the UN urges governments to beware their human and environmental impacts, some of which could have irreversible consequences.
The report, which predicts winners and losers, will be studied carefully by the emerging multi-billion dollar a year biofuel industry which wants to provide as much as 25% of the world's energy within 20 years.
Global production of energy crops is doubling every few years, and 17 countries have so far committed themselves to growing the crops on a large scale.
Last year more than a third of the entire US maize crop went to ethanol for fuel, a 48% increase on 2005, and Brazil and China grew the crops on nearly 50m acres of land. The EU has said that 10% of all fuel must come from biofuels by 2020. Biofuels can be used in place of petrol and diesel and can play a part in reducing emissions from transport.
On the positive side, the UN says that the crops have the potential to reduce and stabilise the price of oil, which could be very beneficial to poor countries. But it acknowledges that forests are already being felled to provide the land to grow vast plantations of palm oil trees. Environment groups argue strongly that this is catastrophic for the climate, and potentially devastating for forest animals like orangutans in Indonesia.
The UN warns: "Where crops are grown for energy purposes the use of large scale cropping could lead to significant biodiversity loss, soil erosion, and nutrient leaching. Even varied crops could have negative impacts if they replace wild forests or grasslands."
Globalisation has vastly increased human trafficking over the past decade and governments must take urgent action to combat the abuse, United Nations officials and human rights activists said on Tuesday.
On the eve of the first U.N. global forum on human trafficking in Vienna, Oscar-winning actress Emma Thompson said it was time end what the U.N. says is a multi-billion dollar market. "It is increasing big, big, big time," Thompson, chairwoman of human rights group the Helen Bamber Foundation. "It's the third largest shadow economy after drugs and arms."
The U.N. says some 2.5 million people are trapped in forced labour, including sexual exploitation, in forced marriages, or are pushed to provide body parts for black market organ trade.
The surge in human trafficking coincides with a revolution in affordable transport and instant communication around the world, said Antonio Maria Costa, executive director of the United Nations Office on Drugs and Crime (UNODC). "All of this has facilitated things like trade and services, (yet it has) also facilitated the trafficking of human beings," Costa told a news conference.
A U.N. anti-trafficking protocol took force in 2005, establishing a framework for a crackdown, and now governments must create laws and prosecute perpetrators, he said. "Governments have not done much. But the international agreement puts a burden on the countries," he said.
The organisers will push for a universal ratification of the U.N. protocol, which has been signed by more than 110 states.
There is also a pressing need for better data, as most has come so far from sources like media reports, said Costa.
Most trafficking victims come from nations in the Commonwealth, central and southeastern Europe, West Africa and Southeast Asia, according to a recent UNODC report. Western Europe, North America and Western Asia top the list of destinations for victims of human trafficking.
Adult woman and girls are most at risk of becoming victims and sexual exploitation is the most prevalent abuse, it said.
In his book Sex Trafficking: Inside the Business of Slavery, author Siddharth Kara presents a business and economic analysis of sex trafficking. Though such a study may seem heartless or dehumanizing, Kara argues that analyzing sexual slavery through the lens of economics can reveal short- and long-term solutions to end trafficking, and that, in fact, without this type of analysis intervention attempts may do more harm than good.
