Global Stories

Global Landscape

Pawning of People - West Africa and South Asia

"Pawnship," also known as debt bondage, has its roots in ancient societies. The Bible makes mention of this form of pawning where family members, usually children, enter into the service of a creditor until a loan is repaid. Debt bondage was used to recruit labor for European colonies in Africa, the Caribbean and Southeast Asia. During times of famine and extreme economic hardship, poor families in West Africa engaged in this type of human pawning. While common in pre-colonial West Africa, this form of pawning increased dramatically in the 1930s, when the worldwide economic depression impacted France, which in turn imposed staggering taxes on its West African colonies. Families in poor areas were driven into debt, and many were forced to pawn children, usually girls, to pay the colonial regime. This practice was encouraged by the local government.

This form of debt bondage still exists today in India and Pakistan. The pawns are usually children, and their families send them to a creditor to secure a loan. Ramappa Moogappa, of Karnataka, India, became a pawn at age 12, when his father borrowed 2,000 rupees (roughly $50) for his sisters wedding. His case came to the attention of antislavery activists, and they brought about an end to his pawnship. The Anti-Slavery Society, established in Britain in 1787, advocates for the ending of debt bondage and other forms of slavery throughout the world. Learn more at www.antislavery.org.

Pawnshops in Mexico

In Mexico, only wealthier people have bank accounts, so pawnshops are common destinations for loans. Mexico Citys Nacional Monte de Piedad is a government owned, privately operated lender that was founded in 1775 by Spains King Carlos III. During the Mexican Revolution of the early 20th Century, Pancho Villa described the Nacional Monte de Piedad as the "bank of the poor." Currently, in times of economic hardship, lines stretch around the block. Since the passage of the North American Free Trade Agreement, the economic depression that has hit Mexico has resulted in big business for the pawnshops.

The largest American pawnshop chains do some of their biggest business south of the border. First Cash Financial currently operates 150 stores in Mexico, while Cash America International reports that their stores in Texas, along the US-Mexico border do almost twice the business of their other locations.