Rugmark Case Study

RUGMARK is a voluntary labeling program founded in India which tries to ensure that a product is made without the use of child labor. The program focuses on the hand-knotted carpet industry which holds a significant portion of the export market in India. The issues at stake here are the rights of children and the sovereignty of nations to decide their own policies regarding labor standards in their countries. Low labor costs are often the main advantage developing countries have in the global economy, and children's rights are often ignored in the heat of the competition to be the cheapest supplier of goods to the world market. There remains a question as to whether the demand side of the global marketplace (in this case the United States)has the right to choose not to buy products which were produced using unacceptable means. Should this right to choose be thought of as protectionism or altruism? The Rugmark Foundation works to balance the needs of India as a developing country with the values Western consumer markets are beginning to push onto third world country exporters. They do this by using the proceeds from their labeling scheme to create schools for the children who are taken out of the factories.

After establishment of the first office in 1994, a second office was opened in Germany. In 1995 the ILRF managed to assist in the opening of an office in the US. Now Rugmark operates in Nepal and Pakistan as well.

Since the founding of RUGMARK, other similar programmes have been developed by the various governments and by the carpet industry itself. The main question for all of them relates to their level of commitment and their ability to oversee and guarantee child labor free carpets.