LESSON 4 HR 324

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Wilfrid Laurier University *

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324

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Economics

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Jun 2, 2024

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docx

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LESSON 4 - THE ECONOMICS OF HUMAN TRAFFICKING Lesson Tasks 1. Complete the online lesson sections, including watching the videos as you encounter them 2. Read the indicated selections as you encounter them in the course of the lesson. The lessons are designed with the intention that you will alternate between text provided in this lesson and sections of various course learning materials (e.g., textbook, Library electronic reserves, online materials, etc.). Please follow the prompts that will instruct you when to read the corresponding readings from the learning materials. 3. Complete all lesson activities 4. Make some notes as you work through the lesson and readings based on the learning objectives. You can then refer to them when you answer the quiz. 5. Complete ungraded “Stop and Think” prompts 6. Complete Quiz #4 . Readings Busch-Armendariz, N. Nsonwu, M., & Heffron (2018). Human Trafficking: Applying Research, Theory, and Case Studies. Chapter 4: The Economics of Human Trafficking (pp. 111-138) Kara, S. (2011). Supply and Demand: Human Trafficking in the Global Economy. Harvard International Review, 33 (2), 66-71. Learning Outcomes After completing this lesson, students should be able to demonstrate that they can: 1. Recognize the following definitions and ideas taken from the main reading, as demonstrated by answering questions on the end-of-lesson quiz: o supply and demand factors of human trafficking o the cost-benefit economic theory o supply chain o the price elasticity of demand o economic disparity between the global north and the global south o neo-liberalism o the cost-benefit perspective o various types of costs associated with human trafficking o estimate economic impact of human trafficking: incidence- based vs. prevalence-based

o anti-trafficking strategies that increase the cost and risk for traffickers o bonded labour – debt bondage o consumer behaviour and consumers’ power 2. Examine and reflect upon core issues raised in this lesson, as demonstrated in completing other course assignments, such as response papers, the conceptual map and the mini-research paper. INTRODUCTION Human trafficking, like other criminal activities (e.g., drug trade and arms trade), generates a significant amount of revenue, with human beings treated as a commodity. The 2021 Trafficking in persons report, which is the U.S. Government's principal diplomatic tool to engage foreign governments on human trafficking, estimated an approximate 150 billion dollars worldwide annually through this highly profitable crime. This illegal economic activity has received governments’ attention nationally and globally. We will begin our lesson by reading Chapter Four of the main text. You will learn about the economic aspect of human trafficking and forced labour. By completing this Lesson, you should be able to familiar with:  major economic theories of human trafficking and cheap labour o demand theory o cost-benefit economic theory o migration theory  academic literature on human trafficking, such as o demand for cheap labour in various industries o supply chain management o the economic impact on victims Please read Chapter 4: section 4 and 5.1 to 5.3 (pages 120-123) of the text by Busch-Armendariz, Nsonwu, & Heffron. This opening video titled “Sold to the Sea: Human Trafficking in Thailand's Fishing Industry” provides evidence of human trafficking and forced labour in Thailand’s sea processing industry. As well, it offers an economic context of human trafficking and forced labour for the subsequent theoretical discussion. THE DEMAND AND SUPPLY PERSPECTIVE Do you know that the price of any product or service in the world is often determined by supply and demand? This economic principle provides a crucial context for studying the condition conducive to human trafficking and forced labour. In this section of the Lesson, you will explore the entire process in which many products and services we purchase regularly are likely from exploited labour. We, as customers, are often unaware of human trafficking and forced labour

associated with products and services. Through the reading, you will observe various stakeholders involved in the supply chain, and how human trafficking and forced labour are embedded within this chain. In doing the reading, please pay attention to the following:  the definition of supply chain  the definition of the price elasticity of demand (from the text by Kara, see page 70) o the price of the product, the cost of production, labour exploitation  the trajectory of how individuals are trafficked and exploited  connection between global competition of product price and labour exploitation  economic disparity between the global north and the global south  neoliberalism Please read Chapter 4  Busch-Armendariz, Nsonwu, & Heffron: section 5.7-5.8 (pages 127-129) and  Kara (2011) "Incentives Underlying Trafficking”, p. 69-71. The following video titled “Modern day slavery - Supply Chains” provides evidence of human trafficking and forced labour in different sectors around the world. Stop and Think After watching the video, in your opinion, what can businesses and consumers do to guarantee the things in our lives are genuinely slave free? It is worth paying attention to ‘neoliberalism’ mentioned in the text (see page 129), a core concept that contributes to our understanding of the growing global human trafficking. Although the author, Kara (2011) did not provide a definition of neoliberalism, it is necessary to understand its meaning in order to acknowledge its value in the study of human trafficking. According to Venugopal (2015:15), neoliberalism refers to ‘market deregulation, privatization and welfare-state withdrawal’. In other words, neoliberalism emphasizes free market and limited government intervention and regulation. Scholars have pointed out the connection between neoliberalism and human trafficking. For example, Peksen, Blanton and Blanton (2017) stated, “We find that economic liberalization in general significantly increases the likelihood of human trafficking for labour purposes…. We posit that the linkages between neoliberal policies and labor trafficking are common to all countries where labor trafficking exists, as these policies have a permissive role in the use of trafficked labor across a wide variety of countries.” Stop and Think

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