A child worker at a laterite quarry in Ratnagiri district, about 360 kilometres south of Mumbai. Danish Siddiqui / Reuters / April 14, 2011
A child worker at a laterite quarry in Ratnagiri district, about 360 kilometres south of Mumbai. Danish Siddiqui / Reuters / April 14, 2011

Plagued by decades of child trafficking, India activists call for crackdown



MUMBAI // Activists are clamouring for the rapid introduction of a new law to crack down on child trafficking in India, a problem that has plagued the country for decades.

Child trafficking is “a matter of grave concern”, said Kailash Satyarthi, a Nobel Peace Prize laureate and activist for children’s rights.

“Despite the efforts of the government and civil society groups, we are failing to protect young girls and boys from trafficking and modern forms of slavery. ”

India’s ministry for women and children unveiled a draft of new anti-trafficking legislation in May last year but it has yet to present the final bill in parliament.

Mr Satyarthi said the government needed to produce a “strong and comprehensive” law as a matter of urgency. “We need a national surveillance system and structure ... [that] takes concrete measures for women and child protection and victim rehabilitation,” he added.

Children, largely from poor backgrounds, are trafficked in India for reasons including labour, sex work, adoption, to be sold off as child brides, and in some cases, sent overseas.

The victims are taken from villages to cities where they work in factories or as domestic help. In many cases they are not paid and so they are essentially slaves. In a number of instances, the children go missing without trace.

The extent of the problem was highlighted a few weeks ago after the arrest of Juhi Chowdhury, a leader from the ruling Bharatiya Janata Party, who was allegedly a central figure in a child-trafficking ring in West Bengal.

The racket involved selling Indian babies to Indians and foreigners from countries including the United States and Australia, for about 100,000 to 200,000 rupees (Dh5,600-Dh11,250), according to the police.

West Bengal, which has borders with Bangladesh and Nepal, has become known as a hub for human trafficking.

Government data shows that 9,104 children were trafficked in India last year, up 27 per cent from the previous year.

But Mr Satyarthi said such numbers do not reveal the full picture because a “lack of data has made it difficult to even report the figures correctly”.

“National and regional government agencies are finding it difficult to investigate and prosecute trafficking cases due to discrepancies in the law, which allow perpetrators to get away with their crime.”

Komal Ganotra, the director of policy and advocacy for Child Rights and You, a non-governmental organisation working in India, said child trafficking was largely the product of social and economic inequality. Children in rural areas are particularly vulnerable, because of the poverty and lack of work opportunities there.

She said new legislation was long overdue.

India’s existing law against human trafficking, introduced in the 1990s, had failed because it was reactive rather than preventative, and adequate protection by the authorities rarely extended to rural areas, enabling child trafficking to flourish. The Indian law also focuses more on commercial sexual exploitation and does not sufficiently address the many other activities for which children can be exploited.

Consequently, conviction rates for trafficking offences are low.

The government said last week that it was taking steps to tackle trafficking and was working to finalise the new legislation.

Shrimati Krishna Raj, a junior minister for women and children, said the legislation would include preventative measures such as anti-trafficking committees at national, state, and district levels and more investigations into trafficking offences.

“In addition, it defines some new forms of trafficking as aggravated or otherwise and proposes creation of a dedicated fund for the rehabilitation of victims of trafficking.”

The proposed legislation will be finalised and the government’s approval sought before being introduced in parliament, she said, without giving a timeline.

Ms Ganotra said it now seemed unlikely that the bill would be introduced in the current parliamentary session, but hoped this would happen in the next session of parliament in July or August.

“The indication definitely is that [the new legislation] is a much more comprehensive law which covers all dimensions of trafficking and focuses on prevention as well as response, so we are hopeful for a positive move,” she said. “In India, the way we have visualised trafficking as a problem has not been as big as it really is.”

For example, she said, an adult could travel within India with a group of children that he or she is not related to and would not be legally required to provide any documentation of authorisation.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”