Indian children labour to bring sparkle to make-up



INDIA // Her face caked in dirt and hair matted with sweat, Lalita Kumari, 8, hacks away at pieces of rock containing an elusive mineral that adds a dash of sparkle to lipstick and nail polish.

While taking a breather in the hollow of a shimmery sand hill, Lalita says she has not known any other way of life after toiling in the mines of India’s eastern Jharkhand state since she was four.

“I want to go to school but there is never enough at home for us to eat. So I have to come here and work,” said the youngster in a pony-tail, her blistered hands hid behind her back after laying down her pickaxe.

Lalita is among hundreds of children who help their families make ends meet by spending their day collecting mica, often enduring hunger pangs while the sun beats down on their heads.

Two decades ago the Jharkhand government shut down the mines over environmental concerns but tonnes of scrap left behind continue to lure impoverished villagers.

The mica adds glitter to powders, mascara and lipsticks of top global brands although a complex supply chain makes pinning down the exact origin almost impossible, say activists.

The families of the children who collect the mica often sell it to small traders who in turn sell it to big suppliers.

In 2009, German pharma giant Merck was accused of using mica mined by children and supplying it to brands such as L’Oreal and Revlon.

Merck has since implemented several measures to make sure that “all mica used for the manufacture of our pigments comes from child labour free sources”, the company said.

Activists however say there is no way to guarantee the mica is child-labour free, as remote areas make monitoring impossible.

“I think for companies the situation has become a kind of passing the buck,” said Bhuvan Ribhu of Bachpan Bachao Andolan NGO whose founder Kailash Satyarthi won last year’s Nobel peace prize for his work combating child labour.

“It’s a collective responsibility of anyone who is procuring any mica from this region to come forward and ensure that all the children are in school,” said Mr Ribhu.

Major companies insist their suppliers follow good practices.

“Merck, our main supplier in India, only sources mica from legal gated mines and has submitted proof that its entire supply chain is secured,” a spokeswoman for L’Oreal said.

Repeated mails to Revlon, which is also supplied by Merck, went unanswered.

Although child labour below 18 is illegal with fines and jail terms for offenders, poor enforcement means rules remain on paper.

Children like Lalita often injure themselves with the pickaxes, while fine mica dust enter their eyes and chest, causing chronic health problems.

During the annual monsoon, they risk snake bites and being buried alive by collapsing slag piles.

“In a place where poverty is so entrenched it is difficult to convince parents to send kids to school,” said Ram Bachan Paswan, a district labour superintendent.

“Moreover these mines do not exist on paper so that makes our task very challenging.”

Shibu Yadav, a father of four, acknowledges that his children spend their days mining for mica to provide income for the family.

“This is the main source of livelihood for us,” he said, pointing at glittering silver and red mounds outside his ramshackle house.

“If it had not been for the mica, we would have starved to death,” said Mr Yadav who says his family makes about 1,000 Indian rupees (Dh56.70) a month from mica gathering.

Cosmetic giants such as Estee Lauder and Chanel have recently joined a scheme to help fund the education of children going back to schools, working alongside Mr Satyarthi’s NGO.

Seema Kumari, 13, says she can now fulfil her dream of becoming a teacher. She is just one of the lucky ones. Other youngsters see no end in sight to their labours.

“We know mica is used in powder and lipstick,” said Pushpa Kumari, whose weathered features belie her 13 years.

“It makes women look prettier,” she said, balancing a tray full of mica on her head. “But look what it does to us.”

* Agence Presse-France

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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