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Maplecroft report on child labour in the BRICs highlights growing supply chain risks

Updated 16/08/2010

The risks to business relating to child labour in the BRICs countries of Brazil, Russia, India and China are increasing according to a new report released by Maplecroft.

The report analyses the most recent events, reports and published raw data to offer a detailed overview of the child labour situation in the BRICs. It will enable business and investors to identify potential supply chain and investment risks arising from child labour in the world's fastest growing economies.

Of the four countries, India has the most challenging environment for business relating to child labour, as it is ranked 1/196 countries in Maplecroft's Child Labour Index. The country has the highest number of child workers in the world. Estimates from national and international NGOs place the figures of child workers in India between 60 and 115 million. Latest official government figures estimate 16.4 million child labourers between the ages of 5 and 14. Of those, approximately two million are thought to work in "hazardous industries," including mining, ship breaking and manufacturing or are trafficked and exploited in the sex industry.

China is rated "extreme risk" in all of Maplecroft's labour rights and protection indices with the risks for child labour, trafficking and discrimination increasing. Key findings of the report point towards the highest prevalence of child labour violations in the agricultural and manufacturing sectors of China. Human rights abuses associated with suppliers within the textile and electronic sectors are of particular concern following a recent cluster of suicides that occurred in a Foxconn factory based in the country.

"Child labour in the manufacturing sector is hard to identify. It often occurs down the supply chain when production is outsourced to home-workers," said Professor Alyson Warhurst, CEO of Maplecroft. "This means that companies need to be especially diligent when it comes to auditing their supply chains. But they also need to be cognisant of the implications for children of taking them out of work where schooling is inadequate and families live in poverty."

According to the report, child labour in Brazil is prevalent in the informal, agricultural and manufacturing sectors. In 2008, the ILO estimated that 58.7% of child workers between 5-14 years old worked in agriculture. Children working in this sector are particularly vulnerable to accidents, often involving agricultural chemicals and machinery. The latest available statistics from the Brazilian government reported that in 2006 there were 273,000 accidents involving child labourers. Maplecroft's labour protection risk indices show that working conditions are worsening in Brazil.

Business in Russia is not immune from the risks associated with child labour, as the country is ranked 75/196 and "high risk" in Maplecroft's Child labour Index. While an overall estimated figure on children working is unavailable, the Federal Labour and Employment Service (FLES) found over 10,000 child labour law violations in 2008. These children often received little pay and were discovered in dangerous working conditions in the industrial and agricultural sectors. The report also states that risks associated with working conditions in Russia are growing.

Detailed analysis about child labour in each of the BRIC countries is available within the report, which provides companies with an understanding of where child labour risk exposures may lie within their supply chains. The report includes country scores from Maplecroft's labour protection indices, analysis of the issues and sector insight, details of labour laws and ratification of ILO and other UN Conventions. Sub-national maps reveal hotspots and pinpoint incidents, particularly around economic zones. There are also stakeholder viewpoints and a chronology of key recent child labour reports.

The Child Labour in the BRICs report is part of Maplecroft's growing ethical supply chain management and human rights monitoring services.

To buy the report contact Beth Morgan or Stephen Hall on info@maplecroft.com or Register for a free trial to see samples of indices, maps, scorecards, briefings and in-depth reports.