United Nations Economic and Social Council
Commission on Human Rights
Sub-Commission on Prevention of Discrimination and protection of Minorities
Working Group on Contemporary Forms of Slavery
22nd Session
Geneva, June 1997
Bonded Labour in Nepal
Last year Anti-Slavery International and Informal Sector Service Centre (INSEC) submitted evidence to this Working Group on the problem of bonded labour in Nepal. Since that time there have been a number of developments in Nepal, not least a change in government. While we can report progress in some areas and some positive signs, the substantive issues remain unaddressed.

In 1994 the National Bank of Nepal (Nepal Rastra Bank), published a survey of rural credit which found that:
Among the types of borrowings from the landlord, the most prevalent is the bonded labour type.

These findings were confirmed in detailed research carried out by and INSEC, the results of which will be published in July this year in a joint report entitled Forced to Plough: Bonded Labour in Nepal's Agricultural Economy. The report gives the first detailed analysis of the Haliya system of agricultural labour, a system characterised by bonded labour, forced labour and serfdom. This form of labour is not an isolated phenomenon but is in fact the norm in many districts of the country.

The Haliya system is directly linked to the practice of caste discrimination and affects low caste ethnic groups and "untouchable" occupational castes. Indebted Haliya are forced to plough for up to 20 hours a day (working at night if need be) without payment. They are bound to work for up to 10 months of the year and sometimes all year round.

The amount of the debt which keeps them in servitude is usually small, between 500 - 4000 Nepali Rupees (US$10 - $40) but it is very uncommon for a Haliya to repay even this amount and the debt is often passed on from father to son. Debts are incurred to pay for food or medical expenses for which no formal sources of credit are available.

There is no data to indicate the number of people affected, however, an estimated one million rural households in Nepal are effectively landless and dependent on work as agricultural labourers. As such they may be considered "at risk" of becoming victims of bonded labour.

Experts on this Working Group will recognise the strong similarities that exist between the Haliya system in Nepal and systems of bonded labour in India and Pakistan. Indeed, in India the same word Haliya is used to describe what has long been recognised as a system of bonded labour. While domestic legislation has been introduced in both India and Pakistan to abolish these practices, no such action has yet been taken in Nepal.

INSEC and ASI have reported to this Working Group on several occasions about a particular form of the Haliya system prevalent in five districts of western Nepal. This system is more frequently known as the Kamaiya system and affects the Tharu indigenous group. Anti-Slavery is encouraged to note that in late 1996 a new coalition of non-governmental organisations and development agencies (including specialised agencies of the United Nations) came together under the chairmanship of INSEC to form the Kamaiya Concern Group. The group has undertaken to share knowledge and devise intervention strategies to tackle the problem of bonded labour affecting the Tharu.

Anti-Slavery is further encouraged by the news that in May of this year the new Nepali Government invited INSEC to discussions plans for government action against the Kamaiya system. This is an encouraging sign, although we are of course keen that the Government of Nepal should take action against bonded labour on a country-wide basis, rather than in just five of the country's 75 districts.

We hope the Working Group will find ways of encouraging the Government of Nepal to introduce a specific law against bonded labour, as well as to take other actions. The resolution adopted at last year's Working Group addressed the situation in countries such as India and Pakistan which have already adopted such laws, but did not address the information presented about Nepal.

Even though action concerning the debt bondage of the Tharu people is limited to just five of Nepal's 75 districts, we are very hopeful that this indicates a new commitment on the part of the Nepali Government toward tackling problems of bonded labour. We are urging the Nepali authorities to further demonstrate this commitment by:

Ratifying the International Labour Organisation's Convention No. 29 Concerning Forced Labour (1930). This is a "core convention" of the ILO ratified by 135 countries, but which Nepal has not yet ratified. Failure to ratify implies a lack of commitment to upholding a very basic labour standard.

Introducing a law banning all slavery-like practices as an essential first step toward the progressive elimination of the problem. This law should ban all institutions and practices akin to slavery according to the definitions contained in the UN Supplementary Convention on the Abolition of Slavery, the Slave Trade and Institutions and Practices similar to Slavery (1956) to which Nepal is a signatory.

Make land and resources available to provide for the rehabilitation of the victims of slavery enabling them to use their existing skills and knowledge to support themselves and their families.

Introduce a minimum wage for agricultural labourers. This should be set at no less than the minimum daily rate for subsistence including provision for food, clothing and medical expenses.

Adopt new procedures for the proper enforcement of anti-caste discrimination laws including the establishment of a special commission to promote equality between castes and ethnic groups in Nepal.

Introduce measures to help the rural poor find alternative ways of paying for medical facilities such as a system of deferred payment or regulated credit that would allow them to avoid the usurious rate of interest charged in the informal sector.