In June 1998 the International Labour Conference adopted a Declaration on Fundamental Principles and Rights at Work and its Follow-up that obligates member States to respect, promote and realize freedom of association and the right to collective bargaining, the elimination of all forms of forced or compulsory labour, the effective abolition of child labour, and the elimination of discrimination in respect of employment and occupation.1 The InFocus Programme on Promoting the Declaration is responsible for the reporting processes and technical cooperation activities associated with the Declaration; and it carries out awareness raising, advocacy and knowledge functions - of which this Working Paper is an example. Working Papers are meant to stimulate discussion of the questions covered by the Declaration. They express the views of the author, which are not necessarily those of the ILO.

As part of ILO activities to promote the Declaration, a Special Action Programme to combat Forced Labour (SAP-FL) was created by the ILO Governing Body in November 2001. Since then, SAP-FL’s work has included research, awareness raising and technical cooperation, working with governments, employers, workers and others to abolish forced labour. And in all of these activities, particular attention has been given to the forced labour outcomes of human trafficking.

This Working Paper’s objective is to estimate the magnitude of global profits that are being realized through the exploitation of forced labourers. The paper is thus part of SAP-FL research on the quantitative and economic dimensions of forced labour and human trafficking. This analysis complements other research published by SAP-FL, in particular on the economic perspective on human trafficking in Europe (Working Paper No.31) and on the definition, indicators and measurement of forced labour (Working Paper No. 18). The calculations in the present analysis also use the result of another important piece of research, namely the calculation of a minimum estimate of forced labour in the world. Both the global minimum estimate and some of the figures calculated in this Working Paper are included in the ILO Director General’s 2005 Global Report on forced labour.

The paper’s main estimate is that global profits made from forced labourers exploited by private enterprises or agents reach US$ 44.3 billion every year, of which US$ 31.6 billion from trafficked victims. The largest profits - more than US$ 15 billion - are made from people trafficked and forced to work in industrialized countries. These figures show that profits are possibly much larger than has so far been recognized in the estimates of other national or international organizations. They also support the view that trafficking thrives because it is lucrative and that policy measures to combat this scourge must include the confiscation of the financial assets of those involved in trafficking across or within borders. I thank Mr. Belser for undertaking this experimental assignment and hope that this analysis will be heard and debated. I also hope that it will help to raise awareness and contribute to mobilize the world against forced labour and human trafficking. Roger Plant.

Head, Special Action Programme to Combat Forced Labour
InFocus Programme on Promoting the Declaration 1The text of the Declaration is available on the following web site:
http://www.ilo.org/declaration