Dan McLaughlin

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To Home Page Latest Newsletter Column Archives Click to get these columns for your local paper	© 2006 Daniel J. McLaughlin Child Labor In Our Time A recent New York Times story declared that child labor is increasing in Sub-Saharan Africa. While most modern societies have declining levels of child labor, Africa seems to be the exception. The story is about children in Zambia, but it applies to many other African nations. Child labor is a major issue with many organizations, and there are various international conventions and agreements that seek to prevent it. As the article states, child labor declines with prosperity. That should not be a surprise to anyone. The primary reason that children work in poor countries is because their families would starve without it. Outlawing child labor actually hurts families that rely on the children for survival. The case depicted in the story is a young boy who grinds up stone so his grandmother can sell it to builders to make cement. If he did not do that, they would not be able to pay for food or housing. The article has various references to labor organizations calling for the government to do something, like minimum wage enhancement and hiring more government officials to enforce child labor laws. What is missing from the analysis is acknowledgement of the significant correlation between high child labor and poverty due to lack of economic freedom. Child labor will decline as soon as families don’t have to rely on them for putting food on the table. Most industrialized countries started out with high levels of child labor. That was not because businesses wanted to abuse children, but rather, before industrialization, there was widespread destitution. Their families needed them to work. Those same countries don’t have significant child labor now, not because of child labor laws, but because families are able to provide without it. Industrialized societies provide better work and pay for more people. Zambia and the other countries in Africa have fallen prey to the faulty concept that government is the answer. Billions of dollars of aid to the poorest of countries has not made a dent in poverty because money is not the answer. According to a case study by the Heritage Foundation, three of the most repressed nations have received many times more aid than others, yet the GDP per capita is actually declining, the economies are falling apart. Government is, in fact, the problem. Lack of protection for property rights, strangulation of the markets with regulation and taxes, corruption and direct intervention in markets all erode personal freedom and profit, which are basic requirements for progress and prosperity. In the less developed countries, property rights are weak or non-existent and court systems to enforce those rights are unreliable. Without property rights, business owners can’t get financing for operation and growth, farmers can’t get equipment and supplies, and families can’t borrow money for homes. 60% of the population of Zambia works in agriculture, indicating a lack of industrialization and employment opportunities in higher value jobs. Government regulation of business poses insurmountable obstacles for most people trying to start a business in those countries. Red tape and licensing prevents people from even trying. Government sponsored and subsidized firms compete against private companies, making it even harder to survive in the market. Zimbabwe, described at one time as the breadbasket of Africa, now cannot even feed it’s own people. Property rights were thrown out the window and commercial farmers have lost their farms to government redistribution. Agricultural production has fallen to fraction of what it was in the year 2000 and the people now face famine. Food aid has been used for political gain to reward supporters. Corruption is rampant. Human rights activists, the United Nations, foreign aid promoters and media pundits consistently get it wrong when advocating intervention and aid programs. After decades of failed policies, it would seem reasonable that alternative approaches would be pursued. Alternative approaches are not only feasible, but crying out for people to embrace them. Child labor is one of the many statistics that show an amazing correlation to higher levels of economic freedom. Individuals and organizations who are really interested in improving the welfare of less developed countries will be much more effective when their efforts are focused on the benefits of freedom and property rights, and on less intervention from national and international governments. That probably has not happened because it is not in the best interests of United Nations and international aid bureaucrats for these countries to improve much. Their nice, cushy jobs depend on the many billions of dollars being thrown into the wind.
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Daniel Mclaughlin Copyright © 2006 [Daniel McLaughlin]. All rights reserved. Revised: 03/18/08

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Child Labor In Our Time

A recent New York Times story declared that child labor is increasing in Sub-Saharan Africa. While most modern societies have declining levels of child labor, Africa seems to be the exception. The story is about children in Zambia, but it applies to many other African nations. Child labor is a major issue with many organizations, and there are various international conventions and agreements that seek to prevent it.

As the article states, child labor declines with prosperity. That should not be a surprise to anyone. The primary reason that children work in poor countries is because their families would starve without it. Outlawing child labor actually hurts families that rely on the children for survival. The case depicted in the story is a young boy who grinds up stone so his grandmother can sell it to builders to make cement. If he did not do that, they would not be able to pay for food or housing.

The article has various references to labor organizations calling for the government to do something, like minimum wage enhancement and hiring more government officials to enforce child labor laws. What is missing from the analysis is acknowledgement of the significant correlation between high child labor and poverty due to lack of economic freedom. Child labor will decline as soon as families don’t have to rely on them for putting food on the table.

Most industrialized countries started out with high levels of child labor. That was not because businesses wanted to abuse children, but rather, before industrialization, there was widespread destitution. Their families needed them to work. Those same countries don’t have significant child labor now, not because of child labor laws, but because families are able to provide without it. Industrialized societies provide better work and pay for more people.

Zambia and the other countries in Africa have fallen prey to the faulty concept that government is the answer. Billions of dollars of aid to the poorest of countries has not made a dent in poverty because money is not the answer. According to a case study by the Heritage Foundation, three of the most repressed nations have received many times more aid than others, yet the GDP per capita is actually declining, the economies are falling apart. Government is, in fact, the problem. Lack of protection for property rights, strangulation of the markets with regulation and taxes, corruption and direct intervention in markets all erode personal freedom and profit, which are basic requirements for progress and prosperity.

In the less developed countries, property rights are weak or non-existent and court systems to enforce those rights are unreliable. Without property rights, business owners can’t get financing for operation and growth, farmers can’t get equipment and supplies, and families can’t borrow money for homes. 60% of the population of Zambia works in agriculture, indicating a lack of industrialization and employment opportunities in higher value jobs.

Government regulation of business poses insurmountable obstacles for most people trying to start a business in those countries. Red tape and licensing prevents people from even trying. Government sponsored and subsidized firms compete against private companies, making it even harder to survive in the market.

Zimbabwe, described at one time as the breadbasket of Africa, now cannot even feed it’s own people. Property rights were thrown out the window and commercial farmers have lost their farms to government redistribution. Agricultural production has fallen to fraction of what it was in the year 2000 and the people now face famine. Food aid has been used for political gain to reward supporters. Corruption is rampant.

Human rights activists, the United Nations, foreign aid promoters and media pundits consistently get it wrong when advocating intervention and aid programs. After decades of failed policies, it would seem reasonable that alternative approaches would be pursued. Alternative approaches are not only feasible, but crying out for people to embrace them.

Child labor is one of the many statistics that show an amazing correlation to higher levels of economic freedom. Individuals and organizations who are really interested in improving the welfare of less developed countries will be much more effective when their efforts are focused on the benefits of freedom and property rights, and on less intervention from national and international governments.

That probably has not happened because it is not in the best interests of United Nations and international aid bureaucrats for these countries to improve much. Their nice, cushy jobs depend on the many billions of dollars being thrown into the wind.

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