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Collateral - Haiti Observer Blog
Collateral, Haiti Observer Blog. Read the following articles about Collateral
Modern Slavery Persists in Debt Bondage
Debt bondage occurs when a person is forced into debt, or voluntarily commits themselves as a form of collateral to pay off a debt.
The punitive nature of the system undervalues work performed and undercredits the debt being paid down. Circumstances of debt bondage are uncertain as to scope of tasks performed and duration of labor. As a result little progress is made towards paying down the debt. It can often turn into an intergenerational debt burden.
The United Nations officially considers debt bondage as a type of "modern day slavery". Since the mid-fifties, it has been legally banned by article 1(a) of the United Nations 1956 Supplementary Convention on the Abolition of Slavery. But nonetheless, it continues unabated in underdeveloped countries, such as South Asia and the Caribbean. In these places, no infrastructure exists to declare bankruptcy or be protected by consumer protection laws. Small- or mid-size businesses can't get approved for credit because they own no land titles or liquidity assets as forms of collateral.
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