Trade, Growth and Child Labour practices in South Asia

South Asian countries have experienced spectacular export performance since the late 1980s. Their commitments towards market-oriented reforms appear to have contributed to this, although there is considerable scope for further reforms particularly in factor market. Reforms so far have increased access to intermediate inputs, capital and technology, and reduced production costs, making exports attractive in the world market than ever before. Successful completion of the Uruguay Round of trade negotiations has also increased their access to the world market. Unfortunately, expansion of exports, particularly labour-intensive manufactured exports, has triggered a protectionist response in developed countries (DCs). Protectionist groups argued that the race to the bottom has resulted in poor labour standards including child labour practices in developing countries, contributing to export growth