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How does human trafficking affect the economy of a country and what laws are there to combat it?

Ean Laffan

Human trafficking is a heinous crime that not only affects the lives of the victims, but also has detrimental impacts on the economy of a country as a whole. Human trafficking is a form of modern-day slavery, in which people are coerced, deceived or forced into being sold or exploited for various purposes such as labor, sex or even organs. This underground criminal industry has far-reaching consequences on economies around the world, including decreased productivity, an increase in public expenditure and impeded economic growth.

One of the major ways in which human trafficking affects economies is by the loss of human capital. Human trafficking deprives many people of their right to fulfill their potential, which results in a negative impact on human resources. Trafficked individuals are often subjected to physical and emotional abuse, leaving them incapable of participating in society and creating a deficiency in skilled labor or manpower caused by the effects of mental and/or physical health impairments. Consequently, this not only hampers the growth of the economy but also leaves society vulnerable to poverty and inequality.

Moreover, human trafficking has a significant impact on a country’s public expenditure. Trafficking operations require operating costs that often come at the expense of taxpayers. These costs may manifest in the form of increased investment in policing, implementing policies, and providing legal assistance to victims. Such spending can lead to budget deficits, reduce resources available to government programs, and create an unwarranted burden on taxpayers. A government may also spend money in investigating and prosecuting traffickers, making it harder for such funds to be allocated toward sectors more beneficial to the economy, such as infrastructure and education.

Fortunately, several laws have been established to protect victims of trafficking and combat this illicit trade. One of the crucial laws is the United Nations Protocol to Prevent, Suppress and Punish Trafficking in Persons, Especially Women and Children, which outlines strategies to prosecute traffickers and protect victims. The protocol aims to empower victims and promote harmonization between governments in preventing and fighting against human trafficking. More recently in the United States, the Trafficking Victims Protection Act (TVPA) of 2000 has led to the creation of the Trafficking in Persons (TIP) Report which names governments that do not comply with the minimum standards for the elimination of trafficking in persons, as required by the TVPA. These laws and protocols not only punish traffickers but also help stop the vicious cycle of human trafficking in our world.

In conclusion, human trafficking may seem like a small crime at an individual level, but at a national level, it is a major social and economic problem. It dampers potential in many people and deprives countries of their right to develop. By enforcing policies to protect victims of trafficking and punish perpetrators, nations can move toward reducing human trafficking and stimulate economic growth.