Uzbekistan Forced Labor Linked to World Bank Loan

An Uzbek victim of forced labor in cotton production and three human rights defenders filed a complaint against the World Bank’s private lending arm, the International Finance Corporation (IFC), according to a coalition of human rights groups.

The June 30 complaint seeks an investigation into forced labor connected to a $40 million loan to Indorama Kokand Textile, which operates in Uzbekistan. The forced labor victim, who requested confidentiality, and the rights defenders Dmitry Tikhonov, Elena Urlaeva and a third who requested confidentiality, presented evidence that the loan to expand the company’s cotton manufacturing facilities in Uzbekistan allows it to profit from forced labor and sell illicit goods.

“The IFC should support sustainable rural development in Uzbekistan, not projects that perpetuate the government’s forced-labor system for cotton production,” says Tikhonov, who lives is in exile in France following possible retaliation—including the burning of his home—for his efforts to document forced labor in Uzbekistan.

“The ombudsman should investigate the IFC loan to Indorama, which we believe violates international law and the IFC’s own policies prohibiting forced labor.” The Cotton Campaign, the Uzbek-German Forum for Human Rights, the International Labor Rights Forum, and Human Rights Watch jointly announced the complaint.

1 Million in Forced Labor Each Year

Each year, the Uzbek government, which controls all of the country’s cotton production and sales, forces more than 1 million teachers, nurses and others to pick cotton for weeks. Last year, the government went to extreme measures—including jailing and physically abusing researchers independently monitoring the process—to cover up its actions.

Uzbekistan was downgraded to the lowest ranking in the U.S. State Department’s annual Trafficking in Persons report which was released last month.

The World Bank has invested more than $500 million in Uzbekistan’s agricultural sector. Following a complaint from Uzbek civil society, the bank attached loan covenants stipulating that the loans could be stopped and subject to repayment if forced or child labor was detected in project areas by monitors from the International Labor Organization (ILO), contracted by the World Bank to carry out labor monitoring during the harvest.

The World Bank approved the loan to Indorama in December 2015, despite an ILO report reaffirming the problem of forced labor.

In March, Cotton Campaign, a coalition of labor and human rights groups that includes the Solidarity Center, presented a petition signed by more than 140,000 people from around the world to World Bank President Dr. Jim Yong Kim, calling on the bank to suspend lending to the agriculture sector in Uzbekistan until the Uzbek government changes its policy of forced labor in the cotton industry.

Read the complaint here.