CORRUPTION
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International Affairs Forum Fall 2016<br />
After controlling for both effects, we found that<br />
income per capita is the largest predictor of the<br />
destination of trafficked persons. Richer, more<br />
developed countries are indeed receiving more<br />
trafficked people. Economic freedom as such<br />
had no impact here.<br />
or adult pornography do not necessarily<br />
involve coercion. It is a categorical mistake to<br />
assume that all prostitutes are victims of human<br />
trafficking. The buyers and sellers in most black<br />
markets are operating completely voluntarily and<br />
there is no force involved per se.<br />
In contrast, when looking at the country of origin<br />
data, we found that income levels did not matter<br />
and economic freedom did, but not in the way<br />
opponents of “neoliberalism” would imagine.<br />
Countries with less economic freedom, meaning<br />
more taxes, protectionism, and government<br />
regulation, were greater suppliers of trafficked<br />
persons.<br />
Democracy, press freedom, and legal origins did<br />
not exhibit a robust association with trafficking in<br />
any way.<br />
What are the best economic practices to<br />
combat human trafficking?<br />
We did not find much evidence that policies<br />
directly aimed at stopping human trafficking<br />
are reducing the actual incidence of human<br />
trafficking. Economic development, especially if<br />
driven by economic freedom, seems to be the<br />
best approach to combatting human trafficking.<br />
Although development can fuel the demand<br />
for trafficked persons in recipient countries, it<br />
also can serve to dry up the supply from source<br />
nations.<br />
What other black market goods could<br />
potentially be trafficked in addition to<br />
humans (or have been in the past)?<br />
We should be careful not to equate human<br />
trafficking, which necessarily involves physical<br />
or serious psychological coercion, with run-ofthe-mill<br />
black markets. Black markets for illegal<br />
products like drugs, sex, untaxed cigarettes,<br />
With that said, human trafficking is frequently<br />
a direct response to the many governmentimposed<br />
restrictions on free commerce.<br />
Migration restrictions, work-visa rules, antiprostitution<br />
laws, etc. frequently push people into<br />
the hands of human traffickers because legal<br />
means of migrating and working are closed off.<br />
More generally, economically free countries<br />
experience less crime, fewer black market<br />
transactions, less organized crime, and afford<br />
less opportunity to carry out illicit transactions<br />
without discovery. As Supreme Court Justice<br />
Louis D. Brandeis once argued, “Sunlight is said<br />
to be the best of disinfectants”. Economically<br />
freer societies may offer more “sunlight”,<br />
exposing traffickers and decreasing incentives to<br />
engage in such behavior in the first place.<br />
Are there economic costs associated with<br />
human trafficking? If so, what are they?<br />
There are certainly costs, but there are also<br />
benefits. Almost by definition, however, human<br />
trafficking generates more costs than benefits.<br />
Given that human trafficking victims are not<br />
voluntarily agreeing to the market exchanges in<br />
which they are forced to participate, the costs<br />
certainly exceed the benefits in their eyes. It is<br />
not that people are moving from place to place<br />
with the assistance of “coyotes” or the unsavory<br />
nature (in some people’s eyes) of the work<br />
involved that is the problem of human trafficking.<br />
The problem is that people are being forced to<br />
move and work against their will.<br />
Fall 2016<br />
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