human trafficking

The Private Scams Behind the Scenes of War

Soldiers, the traditional actors in a war, patrol in remote Afghanistan. Not shown here are those that provide comforts on the U.S. bases nearby. Photo: <a href="http://www.flickr.com/photos/soldiersmediacenter/1634664667/">The U.S. Army (flickr)</a>
Soldiers, the traditional actors in a war, patrol in remote Afghanistan. Not shown here are those that provide comforts on the U.S. bases nearby. Photo: The U.S. Army (flickr)

At the end of a movie, the credits run for cast and crew. At the end of a war, soldiers receive Purple Hearts and well-earned pensions. But when is the production crew of a war recognized?

Lacking in grandiosity, working at a McDonald's inside a U.S. military base isn’t going to win you any medals. And yet, you face the same mortar attacks, the same war zone threats, as soldiers.

In a recent article from The New Yorker, Sarah Stillman reveals the rampant deception involved in recruiting these laborers from the developing world and the slavery-like conditions that prevent them from returning home.

The expansion of private-security contractors in Iraq and Afghanistan is well known. But armed security personnel account for only about sixteen per cent of the over-all contracting force. The vast majority—more than sixty per cent of the total in Iraq—aren’t hired guns but hired hands. These workers, primarily from South Asia and Africa, often live in barbed-wire compounds on U.S. bases, eat at meagre chow halls… A large number are employed by fly-by-night subcontractors who are financed by the American taxpayer but who often operate outside the law.

In recent years, federal officials have been spurred into action. The Department of Defense (DoD) initiated an investigation in 2006 following several such grievances. According to the Pentagon-issued directive, FRAGO 06-188 [Trafficking in Persons], (pdf) which went into effect later that same year, “an inspection of contracting activities supporting DoD in Iraq revealed evidence of illegal confiscation of worker (Third Country National) passports by contractors/subcontractors; deceptive hiring practices and excessive recruiting fees, substandard worker living conditions at some sites, circumvention of Iraqi immigration procedures by contractors/subcontractors and lack of mandatory trafficking in persons awareness training.”

Based on a yearlong investigation, Stillman discloses that despite the directive against human trafficking and the Department of Defense's efforts to increase subcontractor accountability, poor workers are still being manipulated, swindled, and robbed.

A typical manpower agency charges applicants between two thousand and four thousand dollars, a small fortune in the countries where subcontractors recruit. To raise the money, workers may pawn heirlooms, sell their wedding rings or land or livestock, and take out high-interest loans... Many learned [upon arrival] that they were to earn as little as two hundred and seventy-five dollars a month as cooks and servers for U.S. soldiers—a fraction of what they’d been promised, and a tiny sliver of what U.S. taxpayers are billed for their labor.

Taking advantage of the least advantaged is despicable enough, but these workers not only lose money and freedom but sometimes their lives. Stillman writes that "for the first time in American history, private-contractor losses are now on a par with those of U.S. troops in both war zones [Iraq and Afghanistan], amounting to fifty-three per cent of reported fatalities in the first six months of 2010." Yes, that is more than half of the total fatalities—and, she notes, the true number is probably higher. The official number is based solely on what the private contracting companies report.

According to the Trafficking in Persons Report 2011, the United States is ranked in Tier 1. This means that the U.S. government has identified human trafficking as a problem and is implementing preventative and remedial laws and programs. After reading Stillman's article, you might question the United States' rating.

Fighting Slavery With Economics

Human trafficking is a very profitable, low risk business venture. Photo: <a href="http://www.flickr.com/photos/samuelr/2212313791/">Samuel Ronnqvist (flickr)</a>
Human trafficking is a very profitable, low risk business venture. Photo: Samuel Ronnqvist (flickr)

Modern slavery takes many forms. Free the Slaves estimates that worldwide, there are 27 million people being forced to work without pay. In a recent interview with the Boston Globe, Siddarth Kara says that human sex trafficking has become one of the most lucrative types of slavery, with much higher profit margins than those of top-performing companies like Google. Kara, a former investment banker with an MBA and a law degree, believes that the best way to fight human trafficking is to address its economic side:

Sex trafficking is probably the most profitable form of slavery the world has ever seen, in that you can acquire or transport someone for a few hundred dollars, maybe a couple thousand dollars, and generate tens of thousands, if not hundreds of thousands....That’s the essential functioning and logic of the business model: low cost and risk to transport the slave, and immense profitability on the exploitation side.

Because the sex trade involves such minimal risk, the cost to consumers has plummeted. Kara says that in some countries, sex costs the equivalent of one and a half to two hours of work — which many people can afford. If prosecution rates for traffickers were to increase, prices would go up and demand would fall. Kara also recognizes the importance of cutting off the supply of sex slaves:

The minute [you] pull someone out of a sex slave condition, [you’ve] cut off all future cash flows. In terms of a sex slave it’s 10, 15, 20, transactions a day, a week, a month, year after year. You’ve got to pull people out, care for them...and then prosecute and convict effectively. That means several things: fast track courts, judicial review, and an economic penalty regime that makes it uneconomic to be in this business. If you start to alter the landscape, then the perception by the offender is: This business doesn’t pay. Right now the perception is: Huge profit, almost no risk, I’m there. This is about money: It’s not cruelty for the sake of cruelty. I’ve met traffickers. Some of them are just mundane opportunists."

Kara estimates that his proposed reforms would cost about $400 million a year, which could be a relatively cheap solution to a major problem. To read Kara's full interview, click here.

Skepticism Helps Determine the Real 'Price of Sugar'

Topics: Agriculture
Countries: Haiti, Dominican Republic
Market in Port au Prince, Haiti. Photo: <a href="http://www.flickr.com/photos/cguille/2196594927/">Miguel Ángel (flickr)</a>
Market in Port au Prince, Haiti. Photo: Miguel Ángel (flickr)

I recently accepted an invitation to speak at a showing of the documentary “The Price of Sugar” sponsored by Portland State University. “The Price of Sugar,” which I had not seen before that event, is a powerful documentary depicting the plight of Haitians who toil on sugar plantations in the Dominican Republic.

According to the filmmakers, these workers cross the border from Haiti to labor in conditions that the film's central protagonist, Father Christopher Hartley, calls "quasi-slavery." They are housed in sugar company towns called bateyes. Stripped of identification papers, they cannot legally travel elsewhere in the country.

My role in the May 7 event involved offering my perspectives on the economic conditions in Haiti that drive Haitians to cross the border illegally and risk arrest and deportation. Since February 2006, I’ve had several opportunities to travel to Haiti to work on developing economic and educational projects in this poorest of counties in the Western Hemisphere.

Imagine my surprise the morning of the event to receive both an email and a fax at my office at Marylhurst University from the Washington, D.C. office of Patton Boggs, LLP informing me their law office represents the Vicini family, “who are involved in various business ventures in the Dominican Republic including sugar.”

According to the 29-page document, the Vicinis are the victims of misrepresentation by the makers of the documentary; the documentary contained no less than 53 errors, omissions, or fabrications that allegedly amount to defamation of the Vicini family and businesses; and a “cease and desist” motion had been filed in a United States District Court in Boston, Massachusetts. “What,” I thought, “kind of mess did I just step in?”

A careful reading of the legal document revealed that I wasn’t a target, but simply being informed that a legal effort has been underway to stop the distribution and showing of the video. Since I had no direct knowledge of the information contained in the video, nor was I in any way responsible for obtaining and showing the video, I chose to go ahead with my prepared remarks on general economic conditions in Haiti and show my own photos from recent trips to that country.

What’s important here, and both I and my hosts at the video screening were careful to point this out, is that anyone interested in learning more about the economic, political, and social conditions of people engaged in trade around the world are obligated to choose their information sources wisely and carefully.

Researchers seeking support for their own agendas and ideas can easily find sources that will support their position. We are human after all and we gravitate toward those bits of data that seem to resonate with our opinions. But careful researchers who desire to build a real knowledge of the world have a much tougher challenge. Researchers seeking an accurate picture of the conditions under which people labor around the world may find it harder to find unbiased, neutral, accurate data.

It is not my intent here to pass judgment on the veracity of the information contained in “The Price of Sugar” or to comment on the legal claims of anyone connected with the video. My intent is to caution viewers to be diligent in their pursuit of true knowledge by exercising a reasonable amount of skepticism and to engage in critical thinking any time they are learning something new.

From the Archives

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Previously filed under: Africa, Global Economy
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