While the term is usually applied to the Kamalya system of bonded labour found in western and far western Nepal, many thousands of families throughout the country are indebted to landlords and moneylenders, and must use their children's labour as part of their debt payment. In rural areas, children are forced to work as servants or agriculture workers for their families' creditors. Many of the child household servants in cities such as Kathmandu and Biratnagar are servants of families with rural landholdings, to which the children's families are indebted. The Kamaiya system, a traditional, formalized system of serfdom, still exists in many districts of western and far western Nepal. Although there are no precise statistics regarding the number of Kamaiya bonded labourers in Nepal, one study estimates approximately 35,000, most from the Tharu ethnic community, of which almost 6,000 are bonded child labourers.
Compulsory education is a potential solution for the problem of child labour.
While compulsory education would not eliminate child labour, especially in the short run, it could reduce it significantly. It would draw many children out of the work force and into school, and would reduce the working hours of many others. Through education, children would gain the awareness and confidence needed to fight exploitation, and the knowledge and skills that prepare them to participate in society. TOP Child prostitution and trafficking Child prostitution and trafficking are on the rise in Nepal, as in the rest of the world, both developed and undeveloped. The magnitude, contributing causes and structure of child prostitution and trafficking in Nepal are, however, largely unknown at this time, and most figures are at best educated guesses.