Why do they work?

Why do these children work?

Child labor is not the result of culture or work ethics, but rather of companies and subcontractors searching for a cheap and obedient labor force.

Anything that results in or perpetuates poverty also encourages child labor. For many years, governments from industrialized countries have been re-engineering their economic systems in order to meet the moneylender's demands.

The World Bank's International Monetary Fund subjects deep-in-debt countries to a Structural Adjustment Program (SAP), which forces governments to increase exports, privatize schools and health care, and deregulate the industry.

By attracting foreign manufacturers to come and set-up local businesses, these countries must restructure their whole export economy. They promise these manufacturers cheap, non-unionized labor, as well as lax work legislation. The World Bank's requirements have particularly devastating repercussions on the children of poor families.

Numerous industry sectors hire subcontractors for a large part of their production needs. Consequently, large companies save significantly on labor and other general expenses. The local companies must deal with fierce competition when it comes to securing contracts, so they look for the cheapest possible labor force: children. Some of the very large and profitable companies in the world refuse to take responsibility for the subcontractors' business practices.

Poverty, performance leveling, technology, an expanding informal economy, and the International Monetary Fund's re-engineering requirements are the “new world economy” factors that have contributed to the increase in child labor.