Bonded Labourers The Earl of Sandwich asked Her Majesty's Government:In which developing countries bonded labourers are listed by the Department for International Development among the poorest groups, and to what extent they are being targeted by development assistance such as micro-credit and income generation schemes. [HL834] Baroness Amos The Department for International Development (DFID) does not keep lists of the poorest groups or lists of developing countries in which bonded labourers are amongst the poorest groups. Bonded labour exists, in many guises, in many countries, despite international conventions and national laws which clearly identify bonded labour as a contravention of human rights. Marginalisation and poverty are key factors which help to maintain this practice.The elimination of poverty and fulfilment of human rights for all are comprehensively linked. We are supporting many activities which encourage governments actively to uphold human rights and to develop policies for trade and economic investment which encourage wide based growth and reduce social marginalisation and inequality. We are also supporting advocacy and action by civil society organisations and encouraging socially responsible business practices within the private sector.In some instances, the availability of micro-credit and other income generating schemes can offer poor people a viable alternative to bonded labour. DFID supports micro-finance and income-generation projects for poor groups all over the developing world, particularly in East, Central and Southern Africa, and South Asia. Services such as savings and micro-credit for income generation are delivered through some form of private, community-based institution, which is itself typically supported by a larger organisation such as a bank, a credit co-operative or an NGO. For these support institutions to develop and to be effective, a minimum level of social organisation is required amongst the savers and borrowers. However, where bonded labour relations exist, vested interests that control that labour will usually obstruct any form of social organisation, especially by external institutions. This situation can severely inhibit the successful extension of effective micro-credit institutions to bonded labourers.To date, no DFID micro-finance projects have explicitly targeted bonded labourers. However. DFID has delivered credit services to very poor communities that include bonded labourers. For example, in India, the DFID/CARE International Credit and Savings for Household Enterprises (CASHE) project in Andrha Pradesh includes many bonded labourers. In Western and Southern Orissa, where bonded labour is prevalent amongst tribal people, micro-finance is one among several interventions DFID is supporting to increase the security and range of livelihoods available to poor rural people.