Highlighting that more than 27.6 million people are in forced labour worldwide, the International Labour Organisation (ILO) has stated that freeing people from forced labour and reintegrating them into the mainstream workforce could help increase the global gross domestic product (GDP) by USD 611 billion.
The paper titled Acting Against Forced Labour: An Assessment of Investment Requirements and Economic Benefits mentioned that transferring these workers from perpetrators and the illicit economy to the freed workers and formal economy could lead to the stated demand-driven rise in the economy.
As per the paper, the one-time cost for the implementation of necessary steps to tackle the issue of forced labour is estimated at USD 212 billion, which is equivalent to 0.14 per cent of the global GDP. The organisation’s 2022 global estimates of modern slavery publication revealed that there was an increase of 2.7 million people in forced labour since 2016 as around 27.6 million people are still the victims of forced labour worldwide.
“Ending forced labour is first and foremost a human imperative and legal obligation. The financial benefits identified in our study also suggest it makes clear economic sense,” explained Francesca Francavilla, Senior Economist in the ILO’s Fundamentals branch.
The paper has mentioned that the estimated rise in the global GDP would lead to an increase in tax revenues and contribute to savings on forced labour victim services.
“The risk of forced labour continues to threaten millions worldwide. If we want to reverse this trend and return to a path of progress we need to urgently invest more in action,” said Scott Lyon, ILO Senior Project Policy Researcher, Fundamentals.
Citing the need for a broader investment to fight the root cause of the problem, the paper has highlighted that the findings cannot be presented in simple cost-benefit terms. However, the paper has highlighted that the projected increase in GDP is more than enough justification to go ahead with the additional investment.
