Ending child labour in Latin America could create $235 billion net benefit – UN

Eliminating child labour in Latin America within the next 20 years could generate an estimated $235 billion in net economic benefit as a result of children's improved access to universal education and better health care, according to a new study by the United Nations International Labour Organization (ILO).

The study prepared by the ILO's International Programme on the Elimination of Child Labour (IPEC), said the overall $340 billion of benefits would vastly outweigh the costs of eliminating child labour, estimated at about $105 billion between 2006 and 2025.

“The net economic benefits of eliminating child labour are positive and quite significant,” ILO Central America office Director Gerardina González said. “Even if we only take economic criteria into account, we can say that it pays. The results obtained will be a core element for promoting social policies and programmes.”

The study is based on data from 19 countries where an estimated 19.7 million children aged 5 to 17 currently work as child labourers, namely Argentina, Belize, Bolivia, Brazil, Colombia, Costa Rica, Chile, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, the Dominican Republic, Uruguay and Venezuela.

The original call for an analysis of the cost of eliminating child labour in Latin America came from the Vith Iberoamerican Ministerial Meeting of Ministers and high-level government representatives in charge of children and youth last year in San José, Costa Rica.

The study simulates the elimination of child labour over the next 20 years, including the eradication of its worst forms within the first 10 years, through the improvement of educational programmes at an estimated cost of $56.5 billion and direct interventions in the case of the worst forms of child labour estimated at $14.9 billion.

Furthermore, it foresees a $28.5 billion investment to compensate costs for supporting households. The administrative costs of such a programme would be around 5 per cent.

The ILO estimates that some 246 million children are currently involved in child labour worldwide. Of these, 179 million are exposed to the worst forms of child labour, which endanger their physical, mental or moral well-being. National and regional programmes on child labour have flourished under the ILO's IPEC programme which began with six participating countries in 1992 with a single donor government, and has expanded to include operations in 80 countries funded by 30 donors.