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    "There is work that profits children, and there is work that brings profitonly to employers. The object of employing children is not to train them,

    but to get high profits from their work."

    BUSINESS ECONOMICS - 1 -

    http://www.amazon.co.uk/Just-Facts-Child-Labour/dp/0431161682/ref=sr_1_1?ie=UTF8&s=books&qid=1207229070&sr=1-1
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    PREPARED BY:

    SAAD NAUMAAN[091116]

    BABAR MAJEED [091118]

    PREPARED FOR:

    Sir Muhammad Imran

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    ACKNOWLEDGEMENTACKNOWLEDGEMENT

    We thank Almighty Allah for giving us opportunity to learn and seek knowledge. We are

    also thankful to our beloved parents who were very cooperative throughout the research

    and made it possible to complete the task in a good manner. Other than that we thank toour respectable teacher Muhammad Imran who was always there to help and guide us

    all the time whenever we needed him. It was because of him that we had such an

    excellent practical experience through which we learned a lot. It was because of ourteacher who assigned us such a topic with the help of which we learned minute details

    about child labor.

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    TABLE OF CONTENTS

    ACKNOWLEDGEMENT ...................................................................................................3

    These efforts resulted in the establishment in 1912 of the Children's Bureau as afederal information clearinghouse. In 1913 the Children's Bureau was transferred tothe Department of Labor. When Congress passed federal child labor laws in 1916

    and 1918, they were declared unconstitutional by the Supreme Court. ......................6

    CHILDREN OUT OF SCHOOL (COUNTRY WISE )............................................22

    Who is a ChildInternational conventions define children as aged 18 and under. Individual governmentsmay define "child" according to different ages or other criteria. "Child" and "childhood"

    are also defined differently by different cultures. A "child" is not necessarily delineated

    by a fixed age. Social scientists point out that childs abilities and maturities vary so

    much that defining a child's maturity by calendar age can be misleading.

    Definition of a Child LaborChild labor is the employment of children at regular and sustained labor. "Child labor" is,generally speaking, work for children that harms them or exploits them in some way

    physically, mentally, morally, or by blocking access to education. UNICEF defines child

    labor as work that exceeds a minimum number of hours, depending on the age of a childand on the type of work. Such work is considered harmful to the child and should

    therefore be eliminated.

    There is no universally accepted definition of child labor. Varying definitions of the termare used by international organizations, non-governmental organizations, trade unions

    and other interest groups. Writers and speakers don't always speak what definition they

    are using and that often leads to confusion.

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    BACKGROUNDThe majority of the worlds children do some work every day, usually in the form of

    household chores or an after school job, which develop skills and a sense ofresponsibility. However, according to the International Labor Organization (ILO) the

    harsh reality is that 390 million child-workers worldwide are involved in activities thatare either hazardous, excessive or where their employers exploit them. Inevitably, the

    emotional, physical and psychological effects for these children can be extremely

    damaging and such work leaves little or no time for play or school.

    The rise of the factory system in the nineteenth century led to widespread employment of

    children as cheap laborers. In United States, child labor was uncontroversial in the

    colonial period, as children worked on family farms or would enter into tradeapprenticeships between ages 10 and 14. Educational reformers in the mid-nineteenth

    century pressed for legislation that would establish wage minimums and school

    attendance requirements. These efforts at the social protection of children were stymiedby the influx of southern and eastern European immigrants, the patchwork quality of

    American state legislation and the powerful interests who sought, for economic reasons,

    to confine the protective legislation. Child labor grew such that by 1900, 18 percent of10-15 year olds the official figure of 1.75 million were employed. One-quarter of

    southern cotton mill employees were under 15 half of these children were under 12. After

    the Civil War, the availability of natural resources, new inventions, and a receptive

    market combined to fuel an industrial boom. The demand for labor grew, and in the late19th and early 20th centuries many children were drawn into the labor force. Factory

    wages were so low that children often had to work to help support their families.

    Businesses liked to hire children because they worked in unskilled jobs for lower wagesthan adults, and their small hands made them more adept at handling small parts and

    tools.

    For the first time the industrialized worlds diplomats and economists started discussingwhy vast numbers of children were working rather than being educated, and what should

    be done about it. The focus was on developing countries. This new attention to an old

    issue was largely due to worries raised by people in industrialized countries such as the

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    United Kingdom. Trade unionists, politicians and campaigners for social justice voiced

    concern that jobs were disappearing rapidly as businesses switched production from theindustrialized world to developing countries where labor costs were much lower.

    Simultaneously, organizations in developing countries sounded the alarm when they sawchildren working longer and longer hours not only producing goods for export, but also

    providing a cheap and malleable workforce for the local economy. As more attention was

    given to the work children were performing, so the statistics about the numbers involved

    became more startling. In the early 1990s, the number of children between 5 and 14 infull-time employment had been 100 million but by 1996 it was 120 million.

    By the early 1900s many Americans were calling child labor "child slavery" and weredemanding an end to it. They argued that long hours of work deprived children of the

    opportunity of an education to prepare themselves for a better future. Instead, child labor

    condemned them to a future of illiteracy, poverty, and continuing misery.The NationalChild Labor Committee was organized in 1904 to address the problem. In 1904 a group

    of progressive reformers founded the National Child Labor Committee, an organization

    whose goal was the abolition of child labor. The organization received a charter from

    Congress in 1907. It hired teams of investigators to gather evidence of children workingin harsh conditions and then organized exhibitions with photographs and statistics to

    dramatize the plight of these children. Along with numerous state child labor groups, the

    movement "pioneered the techniques of mass political action, including investigations byexperts, the widespread use of photography to dramatize the poor conditions of children

    at work, pamphlets, leaflets and mass mailings to reach the public and sophisticated

    lobbying. The number of children under the age of 15 who worked in industrial jobs forwages climbed from 1.5 million in 1890 to 2 million in 1910.

    These efforts resulted in the establishment in 1912 of the Children's Bureau as a federal

    information clearinghouse. In 1913 the Children's Bureau was transferred to the

    Department of Labor. When Congress passed federal child labor laws in 1916and 1918,

    they were declared unconstitutional by the Supreme Court.

    By 1920 the number of child laborers was cut to nearly half of what it had been in 1910.

    Child labor opponents managed to press for Congressional passage of a constitutionalamendment authorizing federal child labor legislation in 1924 church groups and farm

    organizations prevented ratification. But Child labor came under the international

    spotlight in the 1990s.

    In 2002, when the information available had been scrutinized more carefully, the total

    was estimated at 211 million, along with a further 141 million young people aged 15 to

    17 who were also in employment.

    INTRODUCTION

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    STATICTICS ABOUT CHILD LABOR

    The vast majority of working children about 70 per cent work in the agriculture sector.Sub-Saharan Africa has an estimated 48 million child workers.

    Almost one child in three (29 per cent) below the age of 15 is economically active,15 percent of children in the Middle East and North Africa are working; approximately 2.5

    million and 2.4 million children are working in developed and transition economies

    respectively.A recent UNICEF survey in 25 countries in just one region, sub-Saharan Africa,

    revealed that almost one-third of the working children aged between 5 and 14 were

    involved in the unconditional worst forms of child labor.In addition, almost 10 per cent were working for more than 43 hours a week, threatening

    their wellbeing.

    The incidence of child labor is highest in Africa, where 41% of 5- to 14-year-olds areknown to work, compared with 21% in Asia and 17% in Latin America and theCaribbean.

    Nevertheless, with its higher population, Asia has the largest total number of working

    Children, 60 per cent of the worlds total.Official figures produced by the ILO indicate that at least 200 million young children

    under the age of 15 are working to support themselves and their families. The actual total

    may be twice as high.

    PAKISTAN LABOR FORCE GRAPH AND DATA

    Year Labor force RankPercentChange

    2003 40,400,000 11

    2004 43,980,000 11 8.86 %

    2005 45,430,000 10 3.30 %

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    2006 46,840,000 10 3.10 %

    2007 48,290,000 10 3.10 %

    2008 48,230,000 10 -0.12 %

    AN ANALYTICAL FRAMEWORK

    Incentives, Constraints and Agency:When discussing the determinants of child labor, the idea that poverty compels childlabor reflects the importance of subsistence constraints. However, micro-data reveal that

    children work in households that cannot be classified as subsistence-poor. There must,

    therefore, be other reasons that children work.

    A useful organization of causes is to categorize them as incentives, constraints or agency.

    Thus children may work because the net returns to education are low and the returns towork experience are relatively large. Policy can modify incentives, for example, by

    improving school quality or lowering school fees. Even where incentives favor educationover work, a household may be compelled by poverty constraints to send a child to work.

    When these are binding, the opportunity cost of schooling is too high. In this case, policy

    interventions are best targeted at alleviating poverty in households supplying child labor.Most child workers are employed on household-run farms or enterprises, by their own

    families. Even if they work outside the home, decisions over child time allocation are

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    often taken by adults. While these adults are typically parents, a substantial and growing

    fraction of children in Africa are in the care of adults who are not their parents- this isbecause of both fostering and orphan hood. There are therefore agency issues relating to

    child labor that distinguish it from adult labor. Child welfare may be raised by policiesthat make schooling compulsory or that ban child labor, thereby eliminating adult agency.For example, adult labor supply decisions will determine the tightness of the household

    budget constraint. So adults with limited altruism may choose to consume some leisure

    while sending children to work. If poverty is measured by adult income then what

    appears to be a poverty constraint might in fact be relaxed under greater parent altruism.

    Markets and Institutions

    The strength of markets and institutions will mediate the force of incentives, constraints

    and agency. The role of imperfections in the markets for credit, land and labor, and the

    part played by tastes and norms will be discussed here. For example, underdevelopedcredit marketswill tend to increase the impact of constraints in determining child labor.

    Limited access to capital markets not only perpetuates chronic poverty but also traps non-

    poor households. In some societies and at certain stages of industrialization, child labormay be more acceptable than in other times and places.

    Supply and Demand

    We have so far spoken largely of how incentives, constraints and agency, working

    through markets and institutions, influence the decision to supply child labor. Togetherwith total supply, demand determines relative wages and hence the incentive to supply

    labor. If child labor is in fact substitutable for (unskilled) adult labor in production, thencost-minimizing employers will only prefer children if they are effectively cheaper. In

    principle, a well- functioning labor market should equalize effective wages, that is, wagesadjusted for productivity. Under these conditions, employers are indifferent between

    adults and children and, with improvement in adult skills and, thereby, the relative

    productivity of adults, households will face a falling nominal return to child labor. Inpractice, however, just as women continue to be paid less than men for equal work,

    children may be paid disproportionately less than adults. This sort of wage

    discrimination, by making child labor more cost-effective, raises the demand for it.Total demand increases or decreases depend upon the relative strength of efficiency and

    substitution effects. This is basically concentrated on the supply side that is on the

    characteristics of households that send children into work or upon the characteristics ofchildren themselves. Many do not control for demand effects which may be done byincluding region fixed effects or a regional unemployment rate.

    CHILD LABOR AND EDUCATIONChild labor is closely associated with poverty. Many poor families are unable to affordschool fees or other school costs. The family may depend on the contribution that a

    working child makes to the household's income, and place more importance on that than

    on education. And when a family has to make a choice between sending either a boy or

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    girl to school, it is often the girl who loses out. More than ever today, children need a

    good quality education and training if they are to acquire the skills necessary to succeedin the labor market. However, in many countries the schools which are accessible to the

    poor families are under-resourced and inadequate. Poor facilities, over-sized classes, andlack of trained teachers lead to low standards of education. In the MillenniumDevelopment Goals the United Nations and the broader international community set

    targets of ensuring that by 2015 all boys and girls complete a full course of primary

    education and that there is gender parity in education. These targets cannot be met unless

    the factors that generate child labor and prevent poor families from sending children toschool are addressed. Among the most important steps required are:

    Provision of free and compulsory education;

    Tackling barriers to girls education;Ensuring that children have access to a school and a safe and quality learning

    environment;

    Providing catch up education opportunities for children and youth who have so farmissed out on formal schooling;

    Tackling the worldwide shortage of teachers and ensuring a properly trained and

    professional teaching force;

    Enforcing laws on child labor and education in line with international standards;Tackling poverty, and creating decent work for adults;

    Raising public awareness to tackle child labor.

    Child laborers work for most of the time. In some cases they work for 16 hours a day.

    This deprives the child from time to seek education, which is essential for the overall

    development and future progress of the child. Some children are bound by theiremployers as slaves and have to work all the time. In some cases the poverty of the

    household and low level of parental education are responsible for child labor. The value

    of education is less important to the parents than the income the child earns for them. Inthe present money-oriented environment, the parents consider putting their child to work

    a better education method than schooling as work assures survival and better future

    prospects. This is due to the failure of many graduates to get a job, which is evident from

    the high level of unemployment existing among them.

    "Education broadens your mind but it does not teach you

    how to survive.

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    Pverty and child LaborFrom a policy perspective, it is interesting to consider how child labor responds to trends

    in economic growth and globalization. There is some evidence on the effects of growthand trade-expansion on poverty and poverty levels will reflect changes associated with

    growth and trade reform for instance, in consumer and producer prices, a first step in

    linking the available micro econometric evidence with the larger questions of growth andGlobalization is to study the relation of poverty and child labor.

    (a) Market Imperfections

    Productive assets like land or enterprise-capital will have negative wealth effects on child

    labor and, in a perfect-markets economy we would expect the children of large

    landowners to be less likely to be in work than the children of small landowners orlandless agricultural workers. The common presumption is that child labor emerges from

    the poorest households.(b) Poverty ConstraintsA negative effect of income on hours of work is, however, expected for adults and for

    children and in poor as well as non-poor households. In other words, it only indicates that

    Child leisure or child schooling is a normal good. Generally, if the household is very

    poor, the income effect will tend to dominate the substitution effect and the wageelasticity will be negative. Thus a testable prediction of the hypothesis of compelling

    poverty is that the wage elasticity is negative. Positive wage elasticity, on the other hand,

    is consistent with the view that children work on account of the relative returns to schoolbeing low.

    (c) Multiple Choices

    Mens decision to work can be quite adequately modeled as a choice between markets

    work, self-employment and leisure. In the case of women, a third choice is home

    production i-e productive work within the households for which there is no explicit wage.In the case of children, a third choice is school attendance. The child labor supply

    decision involves allocation of time between labor, leisure and school. The basic

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    assumptions are that leisure is a good and labor is a bad and it is probably reasonable to

    assume that the marginal utility of school attendance is positive.Labor brings the benefits of a wage income today as well as the benefit of experience

    accumulation and therefore higher wages tomorrow. Education also promises higherwages tomorrow, so time allocation has to weigh up these dynamic benefits since moreeducation usually means less work experience.

    PER CAPITA TOTAL OPPURTUNITY COST OF CHILD LABOR IN EACH

    REGION AND IN URBAN/RURAL AREAS

    GROWTH IN SECTORS

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    FACTS & FIGURES OF CHILD LABOR IN ASIA AND

    WORLDWIDE

    According to estimates by the International Labour Organisation (ILO) in their report of

    June 2006, the numbers of children working aged 5 to 14 is:

    Globally 190 million

    In Asia 122 million

    In sub-Saharan Africa 50 million. In fact 26 percent of all children work here

    In Latin America 5 million.

    In the rest of the world 13 million.

    Across Africa, there are an estimated 80 million child workers, a number that could rise

    to 100 million by 2015.

    Hazardous child labour:

    Approximately 126 million children work in jobs which are considered hazardous formsof child labour. These include:

    Slavery

    Child trafficking

    Bonded labour

    Prostitution

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    Any other work which is harmful for the health, safety and morals of children.

    A survey carried out by the ILO showed that 70% of working children are involved in

    agriculture, forestry and hunting. There is a close interweavement here with the informaleconomy in which by far most working children are involved. Hence it can occur that

    commercial plantations contract work out to small family farms - or families manufacture

    goods in their homes which are then sold by a company on the domestic market or

    abroad.

    Injuries caused by unacceptable working conditions:

    Very few children are left unaffected by the frequent hard physical and hazardous work

    they carry out. Children suffer from:

    Broken arms and legs

    Burns

    Skin diseases

    Blindness

    Deafness

    Headaches, stomach-aches and breathing difficulties.

    TYPES OF CHILD LABOR

    Child Labor is not only found in factories, but also in many other places. Their %age is;

    1. Agricultural Labor 42.1%

    2. Cultivators-34.8%

    3. Mining, quarrying - 6.5%

    4. Manufacturing ex. industry - 5.4%

    5. Trade and commerce-2.5%

    6. Household industry-4%

    7. Others- 4.6%

    CAUSES OF CHILD LABOR

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    The main causes or reasons for creating child labor are;

    OVER POPULATION: Most of the Asian and African countries are overpopulated. Dueto limited resources and more mouths to feed, Children are employed in various forms ofwork.

    ILLITERACY: Illiterate parents do not realize the need for a proper physical, emotionaland cognitive development of a child. As they are uneducated, they do not realize the

    importance of education for their children.

    POVERTY: Many a time poverty forces parents to send their children to hazardous jobs.Although they know it is wrong, they have no other alternative as they need the money.

    URBANIZATION: The Industrial Revolution has its own negative side. Many a timeMNC's and export industries in the developing world employ while workers, particularly

    in the garment industry.

    UNEMPLOYMENT OF ELDERS: Elders often find it difficult to get jobs. The

    industrialists and factory owners find it profitable to employ children. This is so because

    they can pay less and extract more work. They will also not create union problem.

    ORPHANS: Children born out of wedlock, children with no parents and relatives, often

    do not find anyone to support them. Thus they are forced to work for their own living.

    WILLINGNESS TO EXPLOIT CHILDREN: This is at the root of the problem Even if afamily is very poor; the incidence of child labor will be very low unless there are people

    willing to exploit these children.

    MYTHS ABOUT CHILD LABOR

    FOUR WRONG NOTIONS ABOUT CHILD LABOUR:

    1. Child labor is only found in poor countries.

    While it is true that in underdeveloped countries, child labor is found in large numbers.But it is also true that child is prevalent in almost all countries. For example, if in adeveloped country some children before going to school sells newspapers for one or two

    hours, very few people view it as child exploitation, even though that child might be

    getting a fraction of what is being paid to an adult for the same job. It is true that in mostof the rich countries too, child labor takes place. Often the exploited ones are the minority

    or immigrant children.

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    2. Child labor is only found in the industries.

    It is true that the child labor in the industries is the most visible layer. While it is also truethat children in Pakistan make footballs in factories, but we cannot ignore the lakhs ofchild laborers who work in unorganized sector where they face equal or greater dangers.

    In truth, only 5.4% of child laborers work in industries. If we fall into the fallacy that the

    most exploited children are the ones who work in factories then we are doing injustice to

    those whose labors are practically invisible.

    3. Child labor can be removed by legislation.

    This is not true. Legislation has proved to be a notoriously difficult thing to enforce.

    Therefore, it has not been effective. Every country has by now passed many laws againstchild labor.

    4. Without removing poverty we cannot solve the problem of child labor.

    While it is true that most of the child laborers come from poor families, the fact is that it

    is an employers willingness to exploit children which is at the root of the problem.

    However a poor family is they will be no problem regarding child labor unless there arepeople who are willing to exploit such children.

    EFFECTS OF CHILD LABOR

    1. Child labor deprives a child of a proper childhood.

    2. He suffers physical and mental torture.

    3. He becomes mentally and emotially mature too fast which is a dangerous sign.

    4. Child labor creates and perpetuates poverty.

    5. It condemns the child to a life of unskilled, badly paid work.

    6. Ultimately this leads to child labor with each generation.

    IMPACTS OF CHILD LABOR

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    (a) I n Pakistan

    Like elsewhere across the South Asia where governments are suffering from bad

    administration and poor governance, Pakistan is also suffering from the lingering peril ofchild labor and the economic exploitation of the poor. Because of peculiar socio-

    economic conditions and the chaotic political situations in the third world countries like

    Pakistan, Governments and the public sector institutions responsible for keeping an eyeon the child labor and child exploitation, often fail to come up to the expectations of the

    society.

    It has been observed that rising economic costs of life often resulting in falling livingstandards, lingering political crises, rising unemployment and poor planning, joblessness,

    unplanned population migration to mega cities, rapid urbanization, lack of education and

    many other factors have resulted in spiraling child labor as poor families cannot afford tocope with multiple economic crunch and use their children as a pawn to earn some extra

    pennies. Child labor, with the passage of time, has emerged as the biggest challenge to

    the society and the government in ensuring conducive atmosphere for the children withpoor economic background. Unfortunately, child labor is deeply engraved in the social

    culture of Pakistan.

    In Pakistan children aged 5 to 14 are above 40 million. During the last year, the FederalBureau of Statistics released the results of its survey funded by ILOs IPEC (International

    Program on the Elimination of Child Labor). The findings were that 3.8 million children

    age group of 5-14 years are working in Pakistan out of total 40 million children in thisage group; fifty percent of these economically active children are in age group of 5 to 9

    years. Even out of these 3.8 million economically active children, 2.7 million were

    claimed to be working in the agriculture sector. Two million and four hundred thousand(73%) of them were said to be boys Pakistan are leading lines below the line of poverty,

    whereas the Social Policy Development Centre (SPDC) Karachi has stated in one of its

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    reports that the ratio of poverty in Pakistan was 33% during 1999 that increased in 2001

    and reached 38%. The ratio of poverty in the current year is around 30%.Consider thepoint that if 30% of our countrys total population is leading life below the poverty-line

    wherein the people are deprived of basic necessities of life like clothing, shelter, food,education and medication, the children of these people will be forced to become Laborersor workers in order to survive. Another reason of child Labor in Pakistan is that our

    people dont have the security of social life. There is no aid plan or allowance for

    children in our country. Class-based education system is another reason for increasing

    child Labor; villages lack standardized education systems and as a result, child Labor ison increase in rural areas. The government has not put its laws into practice to stop child

    Labor in our country. Employers after exploiting child Labor, extract a large surplus,

    whereas child Labor, despite increasing poverty, unemployment and other problems, arepressed to do anything and everything for their livelihood and the survival of their

    families.

    The issue of child labor and the economic exploitation of children of a lesser God has

    always been a burning issue in Pakistan. Successive governments tried to hush up this

    gargantuan issue, having multiple implications, while civil society and the media

    attempts to draw out kaleidoscopic view of the spiraling problem. While child labor hasserious impact on the childrens mental and social development, it also impedes their

    emotional growth. Children are our only hope for a better future and if we desire a better

    and prosperous Pakistan then we must give them their right of education. Education is theforemost fundamental right of the children which must be protected and given to each

    and every child. Although a number of protecting laws contain provisions prohibiting

    child labor or regulating the working conditions of children and adolescent workers butthe issue still remain unresolved. Pakistan has enacted many laws for eradicating child

    labor. The Constitution of Islamic Republic of Pakistan states that;

    No child below the age of fourteen shall be engaged in any factory or mine or in any

    other hazardous employment. And also, All forms of forced labor and traffic in

    human beings are prohibited.

    Various child labor issues are dealt with under following laws.

    (a) The Factories Act, 1934(b) The West Pakistan Shops and Establishments Ordinance, 1969

    (c) The Employment of Children Act, 1991

    (d) The Bonded Labor System Abolition Act, 1992(e) The Punjab Compulsory Education Act, 1994

    It is a great pity that out of the 160 million population of Pakistan, it is estimated that

    there are well over 10 million child laborers below the age of 18 years, the age where

    childhood ends. The International Labor Organization (ILO) defines child Labor as:

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    (a) When a child is working during early age

    (b) He overworks or gives over time to Labor(c) He works due to the psychologically, socially, and materialistic pressure

    (d) He becomes ready to Labor on a very low pay

    Punjab government is giving special attention to the social sector development for

    poverty alleviation and creating more job opportunities for the jobless. In this regard, a

    sum of Rs.58.64 billion has been provided in the Annual Development Program of the

    Punjab province to improve health care, education, social welfare and provision of waterand sewerage facilities.

    Punjab Government is also strengthening its Center for Improvement of Working

    Conditions and Environment for improving occupational safety and health surveillanceof the workers. A sum of Rs.100 million is also being utilized on seven different projects

    relating to labor welfare in the province. However, child labor cannot be eliminated by

    government efforts alone. Civil society, media, community leaders, Ulema and thescholars should also come out and foster the need of keeping families small. We must

    lean to live according to our economic means. Education is the only way to get rid of

    vicious circle of poverty. It is also needed to bring behavioral change towards adoption of

    affordable family size for better maternal and child health and sustainable socio-economic development to achieve the desired population growth rate in the province.

    Punjab government must adopt a holistic mechanism to fully utilize it Population Welfare

    department for sensitizing the people about utility of small families.

    (b) On International BusinessChild labor is linked to global business directly and, more commonly, indirectly. Critics

    blame increased trade and financial flows for increased child labor, and those criticismsthat have undermined the legitimacy of further trade and financial liberalization.

    Companies including multinationals such as Nike, Wal-Mart, Ikea and the Braziliansubsidiaries of U.S. and European automobile manufacturers have responded with a

    range of initiatives. Unless business responses alleviate the worst forms of child labor,

    the legitimacy of continued trade and financial liberalization will continue to be

    undermined by perceptions that liberalization disproportionately hurts children,especially child workers. This linkage between child labor and trade makes child labor at

    least an indirect concern for many businesses.

    International Business and Child Labor: Three DimensionsBusiness role in the economy of child labor has at least three dimensions, both in the

    formal and informal economic sectors. The three dimensions are:

    DIRECT: A firm or enterprise employs children directly.INDIRECT: Goods and services produced by children are purchased from other firms.EXTERNAL: A firm or enterprise plays a part, beyond its direct business interests, inshaping opinions and policies concerning child labor in the local economy.

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    (a)DIRECT: A firm or enterprise employs children directly:

    As mentioned, the majority of direct employment is in the informal sector, wherechildren take part in performing services, small-scale manufacturing, various agricultural

    occupations and work in the home. Many of these children are hidden workers, becausethey only work in their homes and thus do not show up in formal labor force statistics.Although many of these children are working under family supervision, full-time home

    work can bar a child from attending school; and many home-based activities can be as

    hazardous as work performed outside the home. In the formal sector, when children are

    employed, it is usually in businesses featuring fierce competition among producers, lowbarriers to entry, and labor-intensive work for relatively low-skill labor requirements.

    (b) INDIRECT: Goods and services produced by children are purchased from other

    firms.

    This dimension is increasing as formal sector firms purchase goods and services made byinformal sector firms or enterprises, goods made in traditional home settings, and goods

    made by enterprises that have them outsourced production to home workers. In some

    cases, firms have been initially unaware that such production has a child-labor

    component.

    (c) EXTERNAL: A firm or enterprise plays a part, beyond its direct business

    interests, in shaping opinions and policies concerning child labor in the local

    economy.

    Some firms play active roles to shape local-economy attitudes toward child labor and theeducational institutions and social services that affect children. This third dimension has

    increased in prominence as global economic integration has led international business to

    playing a larger role in shaping the public policies of governments around the world.

    Primary school enrolment and attendance

    Countries andTerritories

    Primary schoolenrolment rate

    (2000-2007*)Gross

    Primary schoolenrolment rate

    (2000-2007*)Net

    Primary schoolattendance rate

    (2000-2007*)Net

    Male Female Total Male Female Total Male Female Total

    Afghanistan 126 75 101 74 46 61 66 40 53

    Albania 106 105 105 94 93 94 92 92 92

    Bangladesh 101 105 103 87 91 89 79 84 81

    Canada 100 99 100 99 100 100 - - -

    China 112 111 111 99 99 99 - - -

    Germany 103 103 103 98 98 98 - - -

    Egypt 108 102 105 98 94 96 96 94 95

    Japan 100 100 100 100 100 100 - - -

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    Iraq 109 90 100 95 82 89 91 80 86

    Kenya 107 104 106 75 76 76 79 79 79

    Pakistan 94 74 84 74 57 66 60 51 56

    United Kingdom 105 106 105 98 99 98 - - -

    Mexico 114 111 113 98 97 98 97 97 97

    Hungary 98 96 97 89 88 88 - - -

    SUMMARYINDICATORS

    Sub-SaharanAfrica

    101 90 96 75 70 73 64 61 62

    Eastern andSouthern Africa

    110 104 107 83 81 82 66 66 66

    Western and

    Central Africa 93 77 85 67 58 63 63 56 59

    Middle East andNorth Africa

    102 97 100 86 81 84 88 85 87

    South Asia 111 104 108 88 83 85 81 77 79

    East Asia and

    Pacific111 110 111 98 97 98 92 92 92

    Latin America

    and Caribbean120 116 118 94 95 95 90 91 91

    Central and

    Eastern Europe,Commonwealth

    of IndependentStates

    98 96 97 92 90 91 93 91 92

    Industrializedcountries

    101 101 101 95 96 96 - - -

    Developingcountries

    109 103 106 89 86 87 80 77 78

    Leastdevelopedcountries

    101 91 96 79 74 77 65 63 64

    World 108 103 105 90 87 88 80 77 78

    CHILDREN OUT OF SCHOOL (COUNTRY WISE )

    Country Primary NER or NAR,

    2000-2007*

    Children of primary school age

    out of school (thousands),2007

    Official

    primaryschool

    Source of

    primaryNER or

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    age

    (years)NARMale Female Total Year Male Female Total

    Afghanistan 74 46 61 2007 626 1190 1816 7 - 12

    Ministry ofEducation

    2008(NER)

    Albania 94 93 94 2004 6 7 13 6 - 9UIS 2008(NER)

    Algeria 96 94 95 2006 69 108 177 6 - 11UIS 2008(NER)

    Andorra 83 83 83 2006 0 0 0 6 - 11UIS 2008(NER)

    Angola 58 59 58 2001 415 409 824 6 - 9MICS 2001(NAR)

    Antigua andBarbuda

    - - - - - - 5 - 11

    Denmark 95 96 96 2006 11 8 19 7 - 12UIS 2008

    Nigeria 68 59 63 2005 3973 5027 9000 6 - 11UIS 2008(NER)

    Niue - - 90 2001 - - - 5 - 10RegionalMDG report(NER)

    Norway 98 98 98 2006 5 4 9 6 - 12UIS 2008(NER)

    OccupiedPalestinian

    Territory

    76 76 76 2006 60 58 118 6 - 9UIS 2008

    (NER)

    Oman 73 75 74 2006 47 42 89 6 - 11UIS 2008

    (NER)

    Pakistan 60 51

    REGION WISE

    Region

    Primary NER or NAR,2000-2007

    Children of primary school age out ofschool (millions), 2007

    Male Female Total Male Female Total

    Sub-Saharan Africa 66 62 64 21.8 23.7 45.5

    Eastern and SouthernAfrica

    68 69 68 10.2 9.9 20.1

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    Western and CentralAfrica

    64 56 60 11.6 13.8 25.4

    Middle East andNorth Africa

    88 83 86 2.9 3.8 6.7

    South Asia 82 77 80 16.4 18.6 35.0

    East Asia and Pacific 97 97 97 2.2 2.5 4.7

    Latin America andCaribbean

    93 93 93 2.2 2.0 4.2

    Central and EasternEurope,Commonwealth ofIndependent States

    93 92 93 0.8 0.9 1.7

    Industrializedcountries

    95 96 96 1.6 1.3 2.9

    Developing countries 84 81 83 46.7 52.2 98.9

    Least developed

    countries

    66 63 65 20.6 21.8 42.4

    World 86 83 85 47.9 52.8 100.7

    CONCLUSION

    As we all know that child labor is a major problem in all over the world today. It is not

    only prevailing in developing countries but also it is a cursed in developed countries. Ifwe talk about Pakistan then the child under the age of 15 or may be less is engaged in

    labor work. The main problem for this is the lack of education and lower income level of

    the people.

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    No doubt, child labor in United States also a dynamic problem but if we compare it with

    other countries it is less than those. The main reason for flourishing the child labor in thePakistan is the instability of political environment. The numbers of family members are

    more than the income level.

    For the better eradication of this problem is the government support. Because government

    should arranged such steps on international level through which this type of curse could

    be removed or minimized. But, this is not only the government responsibility, we as a

    citizen should forward our steps for elimination of this problem. We should arrangeseminars on v child labor; different speeches can play a vital role in this regard. And

    moreover, media can play a very important role for this. Different types of ads should be

    shown on TV for the awareness of this problem. If we adopted such little steps than maybe a small part of this curse could be eliminated.

    In a vivid, we can say child laboris a complex problem which demands a range ofsolutions. There is no better way to prevent child Labor than to make education

    compulsory. The West understood this a long time ago. Laws were enacted very early to

    secure continued education for working children; and now they have gone a step forward,

    and required completion of at least the preliminary education of the child before he or shestarts work. Better solutions should be adopted for its removal otherwise it will soon lick

    the pillars of the world.

    SUGGESTIONS

    Awareness raising activities should be arranged so that people are informed aboutchildrens rights to education and leisure.

    Microfinance programs so that families have sufficient income and can keep their

    children out of paid work.

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    Provision of health and educational services for working children should be ensured.

    Ensuring that children orphaned by AIDS are still accorded their rights and areequipped with skills that will help them as adults

    Plan works to raise awareness of the Convention on the Rights of the Child.

    Poor people should provide such opportunities to get themselves out of poverty, and

    prevent and stop all types of exploitation of children.

    Providing all children with access to education is every governments responsibility, as

    well as a practical response to preventing child labor. Free, compulsory, relevant and

    good-quality education services should be given.

    laws and regulations against child labor must be in place and rigorously enforced by

    governments should be in manner.

    Civil society and media engagement can change attitudes and it can condemn child

    labor. It can also helps in raising awareness of its harmful effects on health anddevelopment will help alleviate childrens vulnerability to abuse.

    Relevant school curricula and vocational training programes can be adapted tostudents circumstances and will increase their school attendance.

    Social programes to support families in need and help them find alternative income to

    replace their childs employment will help prevent child labor. Such support is alsoneeded for child-headed households, orphans and childrens.

    To create awareness on the different aspects of child labor issue and start campaigns

    on childrens for the implementation of children's rights.

    Family size should be small because Poor households tend to have more children, and

    with large families there is a greater likelihood that children will work and have lowerschool attendance and completion.

    Governments need to devote resources for Schooling and to provide good quality and

    relevance atmosphere with no cost to poor families.

    Base programming on childrens own perception of what constitutes safe / harmful /

    age appropriate / educational labor.

    Target and focus integrated packages of basic services on urban poor families.

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    Disabled children must receive priority attention due to their particular vulnerability to

    exploitation in the worst forms of child labor on the streets.

    Expand education services to make them accessible to working children.

    To give priority attention to immediately eliminating the worst forms of child laborwith appropriate programes.

    REFERENCES

    www.google.com

    www.unicef .org.com

    www.wikipedia.com

    The News

    BUSINESS ECONOMICS - 27 -

    http://www.google.com/http://www.unicef.com/http://www.wikipedia.com/http://www.google.com/http://www.unicef.com/http://www.wikipedia.com/
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