"Investing in Every Child, An Economic Study of the Costs and Benefits of Eliminating Child Labour," a study by the International Labour Organization (ILO) was released  in Geneva on 3 February 2003. The study is the first integrated analysis of the economic costs and benefits of eliminating child labour to be conducted worldwide. It compares costs and benefits - not with a view to justifying action to eliminate child labour, which is already called for by the ILO in its Conventions 138 and 182,  but with the aim of understanding the economic implications of these international commitments.

According to the study, the benefits of eliminating child labour will be nearly seven times greater than the costs, or an estimated  5.1 trillion dollars  in the developing and transitional economies, where most child labourers are found. Child labour, which involves one out of every six children in the world, can be eliminated and replaced by universal education by the year 2020 at an estimated cost of  760 billion dollars. The ILO estimates say that 246 million children are currently involved in child labour worldwide. Of  these, 179 million  or one in every eight children worldwide are exposed to the worst forms of child labour, which endanger their physical, mental or moral well-being.

The ILO/International Programme for Eliminating Child Labour (IPEC) study says that all regions of the world would experience large net gains from the elimination of child labour, although some would benefit more than others. In Asia, the ratio would be 7.2 to 1, in transitional countries 5.9 to 1, while in Latin America it would be 5.3 to 1. The global net economic benefits of the hypothetical programme would amount to 22.2 per cent of aggregate annual gross national income.

Meanwhile, in spite of the fact that India did a commendable job in the first and second phase of the ILO/IPEC programme, the government`s decision not to sign the third phase of the project has raised eyebrows. The trade unions were happy with the project.