Nepal is one of the poorest countries in the world and after a decade of civil war, the Nepalese are facing growing hardships. Economic growth has slowed and inflation is rising.

According to DfID, almost half (48%) of children are suffering from malnutrition. In a country 25.5 million people, 7.75 million are living on less than $1 a day. 31% of the population are living below the poverty line. The rug manufacturing industry is vital to the economy, employing approximately 100,000 people and generating much needed foreign income. Nepal RugMark Foundation continues to work very hard to ensure that the beautiful rugs made in Nepal are manufactured in an ethical way.

Rug production in Nepal is centred around the Kathmandu Valley, usually in small factories. Rug weaving is typically carried out by women, and many rural people have migrated to the city to find alternative employment. Rug factories often provide accommodation to workers and their families.

RugMark Nepal is based in Kathmandu. The team there has partnered with several local NGOs to provide a rehabilitation centre, and several pre-school day centres for the children of parents employed in rug weaving. These day care centres provide a safe and healthy environment away from the weaving sheds where children can play and learn together.

RugMark Nepal has worked hard to address the child labour problem in Nepal and provide a meaningful alternative for the rug children. So far, approximately 1,721 children have been removed from rug factories, and almost 800 of those have been enrolled in RugMark rehabilitation programmes and over 650 have been reunited with their families.

Central to RugMark Nepal's work is the Rehabilitation Programme. The children who are rescued live at the rehabilitation centre, and receive informal, but intensive classes that bring them up to speed with their education. Following this, they continue with a formal education and re-union with their families is investigated.

Once formal education has been completed, the children can then continue with higher level education, or go onto vocational training such as carpentry, sewing and auto-mechanics.

RugMark Nepal has also partnered with several local NGOs to provide several pre-school day centres for the children of parents employed in rug weaving. These day care centres provide a safe and healthy environment away from the weaving sheds where children can play and learn together.

RugMark Nepal's Community Based Rehabilitation and Re-integration of Children is for children have been re-united with their families right from the beginning. When children have been reunited with their families, RugMark Nepal provides financial support for the children's continued education. Community based rehabilitation ensures the children have an emotional attachment with their families and is a cost-effective Rehabilitation programme.

Many of the adult weavers migrate to Kathmandu from remote farming villages where they have received no education. RugMark Nepal therefore runs adult literacy classes, and Awareness Programmes for Adults, teaching them about such things as the basics of sex education, the problem of child trafficking and health, nutrition and sanitation.