What are the arg uments that can be used to speak against the motion which says Child Labour should be a punishable offence
Answers
Don't get me wrong: sarcastic headline aside, I'm not in favor of the exploitation of children. However, I feel moved to speak against a recent push, I guess led by Hugh Sinclair, to insert a ban on child labor into the lending policies of microfinance institutions (MFIs), microfinance investors, and such accrediting programs as the Smart Campaign and the Seal of Excellence. The concern behind this movement is serious: that microcredit is financing, thus increasing, the exploitation of children. So the cause it leads to is understandable: a push for policies to break any such link.
My challenges to this proposal are four:
Legality. Hugh argues that child labor is wrong because it is illegal in many countries with microfinance. Excellent point! In fact, most microfinance clients are engaged in illegality one way or another: squatting on city land to build houses the width of a queen-sized bed, failing to pay taxes on their meager earnings, failing to register their tiny businesses with the authorities... So to expunge microfinance of scofflawery, we need to shut it all down. Seriously, Hernando de Soto showed how, at least in Latin America, elites have purposely complicated the law in order to make formality---legality---a privilege rather than a right. Being poor means you are almost automatically illegal. Thus legality is a wobbly compass microfinance.
Ethics. We are all descendants of children who survived to adulthood only by laboring, whether as farmers or herders or gatherers. Only with their labor could the family subsist. I look forward to the day when there is no child on earth for whom this is the best choice. But we are not there yet. And we are not as close as you might think. Going by the numbers, the world has made great progress getting kids into school. However, a huge number of these children aren't learning very much. So how quick should we be to tell parents struggling under circumstances far different from our own what the right choice is? Many of them agree with you on the value of education. Whether it is best to put their children in the schools they can afford today is another matter.
Evidence. The effect of microfinance on child labor is an empirical question, whose answer will probably vary by context. On the hand, microfinance sometimes stimulates at-home businesses, leading parents to pull kids out of school and employ them at home. On the other, it gives parents a new way to finance school fees, providing them the discipline to set aside money each week for this purpose.
The evidence, like the ethics and the legal argument, is ambiguous. A good non-randomized study in Thailand found credit to increase child labor. One in Guatemala found the opposite. (Hat tip to Hugh for both.) The randomized studies, which I trust more, have mostly found little impact. In Hyderabad microcredit availability did not lift or lower the number of kids in school. In Manila, loans made no difference for the average response to "Any Household Member Helping in Family Business?" Ditto, essentially, in Mongolia. In Morocco, children worked 5.05 hours/week in areas with more microcredit versus 4.88 in areas without, a difference that is not statistically significant; meanwhile the number of children per family in school was slightly but statistically higher in the microcredit treatment