Debt bondage


Debt bondage, also known as debt slavery, bonded labour, or peonage, is the pledge of a person's services as security for the repayment for a debt or other obligation. Where the terms of the repayment are not clearly or reasonably stated, or where the debt is excessively large, the person who holds the debt has thus some control over the laborer, whose freedom depends on the undefined or excessive debt repayment. The services required to repay the debt may be undefined, and the services' duration may be undefined, thus allowing the person supposedly owed the debt to demand services indefinitely. Debt bondage can be passed on from generation to generation.
In 2021, the International Labour Organization estimated that, of the 27.6 million people currently participating in forced labour, 20.9%, or about 5.8 million, were in debt bondage. Debt bondage has been described by the United Nations as a form of "modern day slavery", and the Supplementary Convention on the Abolition of Slavery seeks to abolish the practice.
The practice is still prevalent primarily in South Asia and parts of Western and Southern Africa, although most countries in these regions are parties to the Supplementary Convention on the Abolition of Slavery. Lack of prosecution or insufficient punishment of this crime are the leading causes of the practice as it exists at this scale today.

Overview

Definition

Though the Forced Labour Convention of 1930 by the International Labour Organization, which included 187 parties, sought to bring organised attention to eradicating slavery through forms of forced labor, formal opposition to debt bondage in particular came at the Supplementary Convention on the Abolition of Slavery in 1956. The convention in 1956 defined debt bondage under Article 1, section :
Debt bondage, that is to say, the status or condition arising from a pledge by a debtor of his personal services or of those of a person under his control as security for a debt if the value of those services as reasonably assessed is not applied towards the liquidation of the debt or the length and nature of those services are not respectively limited and defined;

When a pledge to provide services to pay off debt is made by an individual, the employer often illegally inflates interest rates at an unreasonable amount, making it impossible for the individual to leave bonded labour. When the bonded labourer dies, debts are often passed on to children.

Usage of term

Although debt bondage, forced labour, and human trafficking are all defined as forms or variations of slavery, each term is distinct. Debt bondage differs from forced labour and human trafficking in that a person consciously pledges to work as a means of repayment of debt without being placed into labor against will.
Debt bondage only applies to individuals who have no hopes of leaving the labor due to inability to ever pay debt back. Those who offer their services to repay a debt and the employer reduces the debt accordingly at a rate commensurate with the value of labor performed are not in debt bondage.

History

Africa

Important to both East and West Africa, pawnship, defined by Wilks as "the use of people in transferring their rights for settlement of debt," was common during the 17th century. The system of pawnship occurred simultaneously with the slave trade in Africa. Though the export of slaves from Africa to the Americas is often analyzed, slavery was rampant internally as well. Development of plantations like those in Zanzibar in East Africa reflected the need for internal slaves. Furthermore, many of the slaves that were exported were male as brutal and labor-intensive conditions favored the male body build. This created gender implications for individuals in the pawnship system as more women were pawned than men and often sexually exploited.
After the abolition of slavery in many countries in the 19th century, Europeans still needed laborers. Moreover, conditions for emancipated slaves were harsh. Discrimination was rampant within the labor market, making attainment of a sustainable income for former slaves tough. Because of these conditions, many freed slaves lived through slavery-like contracts with their masters in a manner parallel to debt bondage.

Americas

During the colonial history of the United States, persons bonded themselves to an owner who paid their passage to the New World. They worked until the debt of passage was paid off, often for years. Debt peonage was practiced as "an illegal form of contemporary slavery... well into the 1950s" in "Florida, Georgia, Alabama, and other parts of the Deep South." Civil authorities would arrest "colored men off the street and in their homes if they were caught not working," charge them with vagrancy, assess fines equal to several weeks of pickers' pay, and compel them "to pick fruit or cut sugarcane to work off the debt.... Those captured were hauled to remote plantations..., held by force, and beaten or shot if they tried to escape."
In Peru, a peonage system existed from the 16th century until land reform in the 1950s. One estate in Peru that existed from the late 16th century until it ended had up to 1,700 people employed and had a prison. They were expected to work for their landlord a minimum of three days a week and more if necessary to complete assigned work. Workers were paid a symbolic two cents per year. Workers were unable to travel outside their assigned lands without permission and were not allowed to organise any independent community activity. In the Peruvian Amazon, debt peonage is an important aspect of contemporary Urarina society.

Asia

The ancient Near East

Severe personal debt was widespread in the ancient Near East. Debtors who did not pay up could become their creditors' chattel, as could other members of their families. The problem of debt bondage, in conjunction with the state's ability to levy serfs for labour, led many to flee their homes. Some of these fugitives formed bands of roving warriors called 'habiru-men', especially in the Levant of the late second millennium. The consequences of widespread debt bondage caused many kings to annul debts on ascending to the throne.

From the 19th century

In the 19th century, people in Asia were bonded to labor due to a variety of reasons ranging from farmers mortgaging harvests to drug addicts in need for opium in China. When a natural disaster occurred or food was scarce, people willingly chose debt bondage as a means to a secure life. In the early 20th century in Asia, most laborers tied to debt bondage had been born into it. In certain regions, such as in Burma, debt bondage was far more common than slavery. Many went into bondage to pay off interest on a loan or to pay taxes, and as they worked, often on farms, lodging, meals, and clothing fees were added to the existing debt causing overall debt and interest to increase. These continued added loan values made leaving servitude unattainable.
Moreover, after the development of the international economy, more workers were needed for the pre-industrial economies of Asia during the 19th century. A greater demand for labor was needed in Asia to power exports to growing industrial countries like the United States and Germany. Cultivation of cash crops like coffee, cocoa, and sugar and exploitation of minerals like gold and tin led farm owners to search for individuals in need of loans for the sake of keeping laborers permanently. In particular, the Indian indenture system was based on debt bondage by which an estimated two million Indians were transported to various colonies of European powers to provide labor for plantations. It started from the end of slavery in 1833 and continued until 1920.
Poor Uighur peasants gave their own women as collateral to Sindhi Hindu bankers from Shikarpur when taking out loans since they were too poor to pay in anything else. The Sindhi Hindus used the Uighur women as concubines, this was accepted since Chinese officials in Xinjiang took Uighur Muslim women as concubines, unlike Russian officials in Russian Central Asia, where the Sindhi Hindu merchants did not marry local women.
Chinese-Moro mestizo historian Samuel Kong Tan wrote that on his home island of Siasi, the native Moro Muslims and Chinese had good relations. The Chinese sold guns to the Moros in exchange for marine products like shark fins, shells and pearls. The native Moros also took out loans from the Chinese creditors and with the Moros putting their women and guns up as collateral for the debts.
Moro Muslim parents from Cotabato in mainland Mindanao sold their children and slaves to Chinese merchants so the Chinese could later sell them in the Sulu Sultanate after Cotabato was hit by famine and smallpox in 1872. Jesuits stepped in by buying the children from the Chinese.
The Cotabato-based Jesuit mission lasted from 1862 until Spanish rule in Cotabato ended and during famine and disease epidemics they bought children from Muslim parents themselves or from Chinese merchants who had bought the children from the Muslim parents and placed them into a "ransomed slave children" orphanage. The Muslim datus sold their child slaves to the Jesuits during the famine in 1872. Thomas M. McKenna reported that he was told by Datu Adil that Moro Maguidanaons would send their slaves to schools instead of their own children in Cotabato when the Americans opened up schools so these slaves later became bureaucrats and teachers for the Magindanaons. In South Sulawesi in the Dutch East Indies, elite Toraja would also not send their own children to school and instead send their slaves.

Europe

Classical antiquity

Debt bondage was "quite normal" in classical antiquity. The poor or those who had fallen irredeemably in debt might place themselves into bondage "voluntarily"—or more precisely, might be compelled by circumstances to choose debt bondage as a way to anticipate and avoid worse terms that their creditors might impose on them. In the Greco-Roman world, debt bondage was a distinct legal category into which a free person might fall, in theory temporarily, distinguished from the pervasive practice of slavery, which included enslavement as a result of defaulting on debt. Many forms of debt bondage existed in both ancient Greece and ancient Rome.