Syeda Ghulam Fatima and Her Fight Against Bonded Labor

by Jack Barclay

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Syeda Ghulam Fatima
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AND HER FIGHT AGAINST BONDED LABOR
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By: Jack Barclay
Who is Syeda Ghulam Fatima?
Syeda Ghulam Fatima was born in Pakistan. She attended Punjab University in Pakistan, and has spent the last 40 years of her life as a worker's rights activist, battling bonded labor.
What is Bonded Labor?
In many South Asian countries, such as Pakistan, poor people are often offered small "loans" to help them.
Most of the people who accept these loans do not understand the "terms" or price for paying back the money.
How Loans Work
The simplest way to describe a loan is one person lending money to another person. After a certain amount of time, the person who borrowed the money must pay back the person who gave them the money.
For example, if your friend lets you borrow $10 to buy lunch, you must pay them back in a reasonable amount of time.
Click here to view a short video explaining how loans work.
Introducing "Interest"...
However, when you borrow money from a bank or a professional lender, they are not as nice as your friend who just makes you pay back the $10 you borrowed...
"Interest" is a tool lenders use to make money off of their loans. Instead of letting someone borrow $10 and only making them pay $10 back, a lender may put a "10% interest rate" on the loan. Since 10% of $10 is $1, the borrower now owes the lender $11.
Lenders and borrowers also agree on a time period the loan must be paid back in. If the borrower cannot pay back the lender the amount they borrowed plus the interest, then they "default" on the loan and the lender has the right to take something from the borrower. The lender can take something that is agreed on at the time of the loan, and this 'thing' they can take is known as "collateral".
Back to Bonded Labor...
In Pakistan, many money lenders take advantage of uneducated and poor people who can't get loans from banks. People take the loans as they need the money, but what they do not realize is that the lenders put extremely high interest rates on these loans, making it impossible to pay them back.
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