16.01.02
Statements
Paper Presented by OMCT to the Preparatory Committee for the International Conference on Financing for Development Resumed Fourth Session
HUMAN RIGHTS AS AN ESSENTIAL ELEMENT FOR GUARANTEEING THE ERADICATION OF POVERTY AND A FULLY INCLUSIVE AND EQUITABLE GLOBAL ECONOMIC SYSTEM:
IMPLICATIONS FOR THE INTERNATIONAL CONFERENCE ON FINANCING FOR DEVELOPMENT
Paper Presented by the World Organisation Against Torture (OMCT) to the Preparatory Committee for the International Conference on Financing for Development
Resumed Fourth Session
New York, January 2002
For further information, please contact omct@omct.org
The World organisation Against Torture (OMCT) is today the largest international coalition of non governmental organisations (NGOs) fighting against torture, summary executions, forced disappearances and all other forms of cruel, inhuman or degrading treatment or punishment. The submission of this position paper to the fourth session of the Preparatory Committee for the International Conference on Financing for Development forms part of the Programme on Economic, Social and Cultural Rights of the World Organisation Against Torture (OMCT). This programme focuses on altering the socio-economic conditions that pave the way for the emergence of torture and other forms of violence within OMCT's mandate.
1. Globalisation and Human Rights
Considerations of a socio-economic nature form an integral part of the fight against torture, summary executions, forced disappearances and all other forms of cruel, inhuman or degrading treatment. The eradication of these violations cannot be achieved without the realisation of a socio-economic climate in which every individual can fully enjoy economic, social and cultural rights. In other words, it is not enough to denounce violent situations when they occur, but it is important to contribute to the development of an environment within which the sources of these phenomena are significantly reduced. As the High Commissioner for Human Rights highlighted before the Third Session of the Preparatory Committee last October, inequality, injustice and discrimination generate conflict, in which torture and other forms of violence are likely to occur.
The current context of economic and financial globalisation, the benefits of which still have to reach half of the world’s population, makes it clearer than ever that socio-economic conditions have to be addressed in order to guarantee the full enjoyment of all human rights. This awareness is accompanied by greater complexity of the situation that results from the different types of actors whose policies or activities affect human rights. While legal responsibility continues to rest upon States, other factors, such as the implementation of trade agreements, the policies and programmes of International Financial Institutions (IFIS) and the activities of transnational corporations (TNCs), can directly impact on the enjoyment of human rights in a given country, or have an influence on a State’s capacity or willingness to abide by its human rights obligations. The human rights system itself is not immune to these developments, highlighting the urgent need to guarantee that it does not get marginalized in the process.
The International Conference on Financing for Development is well placed to confront this issue, as it aims, among other goals, at eradicating poverty and guaranteeing a fully inclusive and equitable global economic system, and as it recognises the need to adopt a holistic approached to the interconnected national, international and systemic challenges.
2. Human Rights: a Powerful Tool for Enabling People to Escape from Poverty and for Guaranteeing a Fully Inclusive and Equitable Global Economic System
OMCT welcomes the fact that the preparatory process of the International Conference on Financing for Development recognised the essential role of human rights and labour rights for sustainable development. There is an undeniable link between human rights and socio-economic development. The principles of non-discrimination, participation, accountability and transparency, which are rooted in human rights norms and standards, are key elements for guaranteeing that every individual receives protection from poverty and an equitable participation in the benefits arising out of the globalisation process.
Indeed, many goals and issues on the Conference’s agenda find their normative and legal basis in international human rights instruments. For instance, the revised draft outcome recognises the vital role of investment in education, health, nutrition and social security programmes in enabling people to better adapt and benefit from changing economic conditions. Such acknowledgement refers directly to the human rights framework that guarantees that every individual enjoys the right to education, the right to health, the right to food and the right to social security, which are enshrined in the International Covenant on Economic, Social and Cultural Rights (ICESCR). Similarly, article 2 of the ICESCR recalls the obligations arising out of international cooperation.
As a human rights approach can make a practical and powerful contribution to the topics that are on the agenda for the Conference on Financing for Development, a human rights perspective must be fully integrated at every stage of the final outcome document.
Such due recognition in the final outcome document also requires the guarantee that human rights norms and principles, as well as labour rights are not sacrificed in the globalisation process and that policy coherence between States’ human rights obligations and the implementation of trade agreements, the policies of IFIs and the activities of TNCs are guaranteed at national, regional and international levels. This crucial need to address the impact that economic and financial issues can have on the enjoyment of all human rights has been increasingly addressed by the human rights community and should constitute a basis of work and reflection to be duly recognised in the outcome document.
3. Implications for the International Conference on Financing for Development: a Full Recognition and Integration of the Human Rights Framework
As mentioned, the Conference must recognise that national, regional and international strategies aiming at ensuring the realisation of all human rights have to be pursued. In such strategies human rights are no longer seen as finger-pointing agenda, as disguised protectionist measures or as conditionality for aid. On the contrary, human rights are important guiding principles for development and international cooperation, as well as essential safeguards guaranteeing that the implementation of trade agreements, the policies of IFIs and the activities of TNCs are not conducted to their detriment.
3.1. International Trade, Development and Human Rights
Developments in the trade agenda and implementation of trade agreements, at the international and regional levels or bilaterally, have raised increasing concern within the human rights community. While the primacy of human rights obligations over economic policies has been reiterated on several occasions by various United Nations Human Rights mechanisms, in practice, two parallel regimes continue to develop separately, with a risk that the human rights principles, instruments and mechanisms will be marginalized.
Whereas economic integration and exchanges can constitute important elements for the improvement of living standards and the reduction of socio-economic imbalances, both among and within nations, the way the current trade system is being developed and implemented jeopardises the very objectives and rationale for which it has been created.
A lack of transparency and accountability in the functioning of the WTO, a power relationship clearly biased to the advantage of developed countries and corporations, as well as the agreements in themselves and the way they are implemented, bear serious implications with regard to the universal enjoyment of all human rights, including the right to health, the right to food, the right to education, the right to an adequate standard of living and the right to work.
The contradiction between, on the one hand, a trade system matching economic integration with liberalisation, and a human rights system calling for regulations, justice and non-discrimination, are likely to increase.
OMCT believes that if the current trade regime wants to promote sustainable development, and reduce poverty and widespread inequalities, it will have to look at its compatibility with the human rights system, and take appropriate measures to remedy situations that are likely to lead to human rights violations or clash with its members’ legally binding human rights obligations. The outcomes of the fourth Ministerial Conference of the WTO, including the Doha Ministerial Declaration on the TRIPS Agreement and Public Health, do not diminish the pressing need for full integration of human rights in the negotiations, implementation and follow-up to the Uruguay Round Agreement and new round of negotiations.
3.2. International Financial Institutions and Human Rights
The World Bank and the International Monetary Fund (IMF) continue to consider that they do not have to take human rights considerations into account in the elaboration and implementation of their policies and programmes. While not taking issue with the merits or necessity of carrying reforms requested by both institutions, there are cases where policies and programmes implemented by either the World Bank of the IMF have led to human rights violations. Again, the contradictions between reforms calling for deregulation and less State intervention and a human rights system demanding regulations, justice and non-discrimination are likely to increase if no action is taken.
If IFIs want to promote sustainable development, economic and financial stability and reduce poverty and widespread inequalities, the compatibility of their policies with the human rights system needs to be addressed, notably within the realm of the HIPIC initiative.
3.3. Transnational Corporations and Human Rights
Over the last decade, more and more cases have been documented regarding the involvement of TNCs in human rights violations. To respond to this reality and to the fact that States are often unable or unwilling to take action, several initiatives have been taken either by the companies themselves (promulgation of codes of conduct), or by the international community, including the United Nations Global Compact, the Sub-Commission’s Working Group on the Activities of TNCs, as well as the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy.
3.4. Suggested changes/additions to the Outcome Document
Proposed OMCT changes to the draft outcome document are indicated in bold and aim at guaranteeing that human rights, as well as labour rights, gain due recognition in the final outcome document.
5. The increasingly interdependent world economy requires a holistic approach to the interconnected national, international and systemic challenges of financing for development – sustainable, gender-sensitive, people-centred and human rights and labour rights -centred development in all parts of the globe. To this end, coherent actions are needed in each interrelated area of our agenda, with the active partnership of all stakeholders, public and private.
7. In our common pursuit of growth, poverty eradication, realisation of human rights, fundamental freedoms and labour rights, as well as sustainable development, a critical challenge is to ensure the necessary internal conditions for mobilising enough domestic savings to sustain adequate levels of investment in productive and human capacity. A crucial task is to enhance the appropriateness, coherence and consistency of macroeconomic and structural policies and to guarantee that they do not negatively impact on the enjoyment of all human rights. An enabling domestic environment is vital for mobilising domestic resources, reducing capital flight, and attracting and making good use of international development assistance.
9. We will consolidate appropriate policy and regulatory framework to encourage private and local initiative to foster a dynamic and well-functioning business sector, while improving income distribution, empowering women, and protection labour rights, human rights and fundamental freedoms and the environment. We recognise that the specific mix between market-oriented policies and State intervention will vary from country to country, according to specific circumstances. However, the respect of human rights and fundamental freedoms should always constitute the guiding principles for establishing a proper balance between these two elements.
13. Social security and safety nets, Investments in basic economic infrastructure and social services including education, health, nutrition and social security programmes to foster the realisation of human rights such as the right to education, the right to health, the right to food and the right to social security, which take special care of children, minorities and indigenous peoples and are gender-sensitive and fully inclusive of the rural sector and all disadvantaged communities are vital to enabling people to better adapt to and benefit from changing economic conditions and opportunities and to contribute to economic activity. Recent economic crises have also stressed the importance of effective social safety nets.
18. Private international capital flows, particularly long-term flows, as well as international financial stability, are vital complements to national development efforts. Foreing direct investment (FDI) contributes towards financing development in the long term in a more stable and orderly fashion than portfolio investment. And FDI is especially important for its potential to transfer knowledge, skills and technology, create decent jobs, boost overall productivity, enhance competitiveness and entrepreneurship, and ultimately reduce poverty through economic growth and sustainable people-oriented development. A central challenge, therefore, is to attract direct investment flows to a much larger number of developing countries.
19. To attract stable inflows of capital, countries need to continue their efforts to achieve transparent, stable and predictable investment climates, embedded in sound macroeconomic policies and institutions that allow business, both domestic and international, to operate efficiently and profitably, in the respect of human rights, fundamental freedoms and labour rights and with maximum sustainable, people-oriented development impact. Special efforts are required in such priority areas as economic policy and regulatory frameworks for the promotion and protection of human rights and labour rights, taking into account the United Nations Global Compact, the Sub-Commission’s Working Group on the Activities of TNCs, as well as the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy.
21. While Governments provide the framework within which businesses operate, firms, for their part, have a responsibility to engage as reliable, transparent, accountable and consistent partners in the development process. In a spirit of good corporate citizenship firms should take full account not only the economic and financial but also the social, environmental and human rights and labour rights implications of their undertakings.
23. More equitable and fairer trade would substantially stimulate sustainable, equitable and peoples-oriented development worldwide, benefiting both industrialised and developing countries. The current slowdown in the world economy urges us to reaffirm our commitment towards a more equitable and fairer trading system, ensuring that trade plays its full part in promoting recovery, growth, the enjoyment of all human rights, labour rights, fundamental freedoms and development.
25. Nations will attain full benefits from such reforms only if we ensure an open, transparent, accountable, ruled-based, predictable and non-discriminatory multilateral trading system. Trade barriers, subsidies and other trade-distorting measures particularly in agriculture, have negative effects on developing countries that significantly exceed the value of aid flows –and must be eliminated.
26. To ensure that the world trade supports development goals, we will strive to:
· Support measures to ensure consistency of trade policies with the promotion and protection of all human rights;
· Regarding trade-related intellectual property rights, ensure the rights of people to their traditional knowledge and promote the transfer of knowledge and technology, while providing incentives to innovate, and respecting, in particular the right to health.
There are no further changes/additions to the rest of this paragraph.
32. Revitalising official development assistance in accordance with article 2 of the ICESCR. Official development assistance (ODA) plays an essential role as a complement to other sources of financing for development, especially in those countries with the least capacity to attract private direct investment. ODA can help a country to reach adequate levels of domestic resource mobilisation over an appropriate time-horizon while human capital, productive capacities and export supplies are expanded.
There are no further changes/additions to the rest of this paragraph.
43. The Heavily Indebted Poor Countries' (HIPIC) initiative can provide a unique opportunity to strengthen the economic prospects and poverty reduction efforts of its beneficiary countries, as they commit to sound policies consistent with these countries' human rights and labour rights obligations. But a continued effort is needed to reduce debt in low-income countries to sustainable levels, and speedy and full implementation of the HIPIC Initiative is critical. Any further step to enhance this initiative should be based on three considerations. Firstly, debt sustainability should be assessed in terms of each country’s capacity to raise the finances needed to achieve the millennium development goals. Secondly, any new arrangement should avoid imposing burdens on other developing countries. Thirdly, any new Poverty Reduction Strategy Papers (PRSPs) should fully integrate the human rights dimension.
46. To complement national development efforts, the international monetary, financial and trading systems need to operate coherently, consistently and with full respect for human rights, fundamental freedoms and core labour standards. To contribute to this end, efforts should be strengthen at the national level to enhance coordination among all relevant ministries and other domestic institutions. Similarly, we commit ourselves to ensuring greater policy coherence and better coordination among international institutions in order to meet the goals of sustained, fair and equitable economic growth, poverty eradication and sustainable development. In this respect, concrete measures should be undertaken in order to guarantee policy coherence and consistency between the human rights and labour rights framework and the monetary, financial and trading systems in a way guaranteeing the full enjoyment of these rights.
50. We call on multilateral financial institutions, in providing policy advice and supporting adjustment programmes, to work on the basis of nationally owned programmes of reform, and to pay due regard to special needs, implementing capacities of developing and transition countries, as well as to human rights, labour rights and fundamental freedoms, aiming at the best possible fair and equitable outcomes for growth and development.
55.Improving Global Economic Governance. Good governance at the international level is also essential for sustainable development worldwide. To better the growth of interdependence and enhance legitimacy, global economic governance needs to improve in two areas: broadening the base for decision-making on issues of global concern, and filling organisational gaps. To complement and consolidate advances in these two areas, we must strengthen the United Nations's role in achieving policy coherence and coordination among international institutions and United nations specialised agencies , including the World Bank, the IMF, the Office of the High Commissioner for Human Rights and the International Labour Organisation, in a way guaranteeing the primacy of human rights and labour rights.
57. A first priority is to find pragmatic and innovative ways to further enhance the effective participation of developing countries and civil society in international dialogue and decision-making processes. We therefore encourage the following actions:
· IMF and World Bank. To continue to enhance the role of developing countries in their decision-making and deliberative bodies, taking into account these countries’ real economic weight as well as the need to strengthen the voices of low-income countries. To enhance the role of civil society and affected groups in the decision making and implementation of their policies, and reinforce existing mechanisms guaranteeing proper restitution, compensation and rehabilitation to those individuals whose human rights, fundamental freedoms and labour rights have been affected by their programmes and policies;
· World Trade Organisation: To ensure that any steering group is representative of the full membership of the World Trade Organisation and that participation is based on clear, simple, objective criteria. To establish an accreditation system for non-governmental organisations as it exists within the United Nations and the International Labour Organisation frameworks;
There are no further changes/additions to the rest of this paragraph.
58. To address several gaps in global economic governance, we encourage the following actions:
· Strengthen the World Trade Organisation by enhancing its capacity to provide technical assistance to developing countries and by upgrading its institutional relationship with the United Nations, through the creation of an observer status for other international and regional institutions such as the United Nations Office of the High Commissioner for Human Rights, the ILO, the World Health Organisation, etc;
· Strengthen the capacity of the International Labour Organisation and of the United Nations Office of the High Commissioner for Human Rights to implement their agreed standards;
· Strengthen the coordination of the United Nations system and all other multilateral financial and development institutions, including environment and human rights institutions, to more decisively mainstream gender and human rights issues into economic and development policies and support growth and people-oriented sustainable development worldwide;
IMPLICATIONS FOR THE INTERNATIONAL CONFERENCE ON FINANCING FOR DEVELOPMENT
Paper Presented by the World Organisation Against Torture (OMCT) to the Preparatory Committee for the International Conference on Financing for Development
Resumed Fourth Session
New York, January 2002
For further information, please contact omct@omct.org
The World organisation Against Torture (OMCT) is today the largest international coalition of non governmental organisations (NGOs) fighting against torture, summary executions, forced disappearances and all other forms of cruel, inhuman or degrading treatment or punishment. The submission of this position paper to the fourth session of the Preparatory Committee for the International Conference on Financing for Development forms part of the Programme on Economic, Social and Cultural Rights of the World Organisation Against Torture (OMCT). This programme focuses on altering the socio-economic conditions that pave the way for the emergence of torture and other forms of violence within OMCT's mandate.
1. Globalisation and Human Rights
Considerations of a socio-economic nature form an integral part of the fight against torture, summary executions, forced disappearances and all other forms of cruel, inhuman or degrading treatment. The eradication of these violations cannot be achieved without the realisation of a socio-economic climate in which every individual can fully enjoy economic, social and cultural rights. In other words, it is not enough to denounce violent situations when they occur, but it is important to contribute to the development of an environment within which the sources of these phenomena are significantly reduced. As the High Commissioner for Human Rights highlighted before the Third Session of the Preparatory Committee last October, inequality, injustice and discrimination generate conflict, in which torture and other forms of violence are likely to occur.
The current context of economic and financial globalisation, the benefits of which still have to reach half of the world’s population, makes it clearer than ever that socio-economic conditions have to be addressed in order to guarantee the full enjoyment of all human rights. This awareness is accompanied by greater complexity of the situation that results from the different types of actors whose policies or activities affect human rights. While legal responsibility continues to rest upon States, other factors, such as the implementation of trade agreements, the policies and programmes of International Financial Institutions (IFIS) and the activities of transnational corporations (TNCs), can directly impact on the enjoyment of human rights in a given country, or have an influence on a State’s capacity or willingness to abide by its human rights obligations. The human rights system itself is not immune to these developments, highlighting the urgent need to guarantee that it does not get marginalized in the process.
The International Conference on Financing for Development is well placed to confront this issue, as it aims, among other goals, at eradicating poverty and guaranteeing a fully inclusive and equitable global economic system, and as it recognises the need to adopt a holistic approached to the interconnected national, international and systemic challenges.
2. Human Rights: a Powerful Tool for Enabling People to Escape from Poverty and for Guaranteeing a Fully Inclusive and Equitable Global Economic System
OMCT welcomes the fact that the preparatory process of the International Conference on Financing for Development recognised the essential role of human rights and labour rights for sustainable development. There is an undeniable link between human rights and socio-economic development. The principles of non-discrimination, participation, accountability and transparency, which are rooted in human rights norms and standards, are key elements for guaranteeing that every individual receives protection from poverty and an equitable participation in the benefits arising out of the globalisation process.
Indeed, many goals and issues on the Conference’s agenda find their normative and legal basis in international human rights instruments. For instance, the revised draft outcome recognises the vital role of investment in education, health, nutrition and social security programmes in enabling people to better adapt and benefit from changing economic conditions. Such acknowledgement refers directly to the human rights framework that guarantees that every individual enjoys the right to education, the right to health, the right to food and the right to social security, which are enshrined in the International Covenant on Economic, Social and Cultural Rights (ICESCR). Similarly, article 2 of the ICESCR recalls the obligations arising out of international cooperation.
As a human rights approach can make a practical and powerful contribution to the topics that are on the agenda for the Conference on Financing for Development, a human rights perspective must be fully integrated at every stage of the final outcome document.
Such due recognition in the final outcome document also requires the guarantee that human rights norms and principles, as well as labour rights are not sacrificed in the globalisation process and that policy coherence between States’ human rights obligations and the implementation of trade agreements, the policies of IFIs and the activities of TNCs are guaranteed at national, regional and international levels. This crucial need to address the impact that economic and financial issues can have on the enjoyment of all human rights has been increasingly addressed by the human rights community and should constitute a basis of work and reflection to be duly recognised in the outcome document.
3. Implications for the International Conference on Financing for Development: a Full Recognition and Integration of the Human Rights Framework
As mentioned, the Conference must recognise that national, regional and international strategies aiming at ensuring the realisation of all human rights have to be pursued. In such strategies human rights are no longer seen as finger-pointing agenda, as disguised protectionist measures or as conditionality for aid. On the contrary, human rights are important guiding principles for development and international cooperation, as well as essential safeguards guaranteeing that the implementation of trade agreements, the policies of IFIs and the activities of TNCs are not conducted to their detriment.
3.1. International Trade, Development and Human Rights
Developments in the trade agenda and implementation of trade agreements, at the international and regional levels or bilaterally, have raised increasing concern within the human rights community. While the primacy of human rights obligations over economic policies has been reiterated on several occasions by various United Nations Human Rights mechanisms, in practice, two parallel regimes continue to develop separately, with a risk that the human rights principles, instruments and mechanisms will be marginalized.
Whereas economic integration and exchanges can constitute important elements for the improvement of living standards and the reduction of socio-economic imbalances, both among and within nations, the way the current trade system is being developed and implemented jeopardises the very objectives and rationale for which it has been created.
A lack of transparency and accountability in the functioning of the WTO, a power relationship clearly biased to the advantage of developed countries and corporations, as well as the agreements in themselves and the way they are implemented, bear serious implications with regard to the universal enjoyment of all human rights, including the right to health, the right to food, the right to education, the right to an adequate standard of living and the right to work.
The contradiction between, on the one hand, a trade system matching economic integration with liberalisation, and a human rights system calling for regulations, justice and non-discrimination, are likely to increase.
OMCT believes that if the current trade regime wants to promote sustainable development, and reduce poverty and widespread inequalities, it will have to look at its compatibility with the human rights system, and take appropriate measures to remedy situations that are likely to lead to human rights violations or clash with its members’ legally binding human rights obligations. The outcomes of the fourth Ministerial Conference of the WTO, including the Doha Ministerial Declaration on the TRIPS Agreement and Public Health, do not diminish the pressing need for full integration of human rights in the negotiations, implementation and follow-up to the Uruguay Round Agreement and new round of negotiations.
3.2. International Financial Institutions and Human Rights
The World Bank and the International Monetary Fund (IMF) continue to consider that they do not have to take human rights considerations into account in the elaboration and implementation of their policies and programmes. While not taking issue with the merits or necessity of carrying reforms requested by both institutions, there are cases where policies and programmes implemented by either the World Bank of the IMF have led to human rights violations. Again, the contradictions between reforms calling for deregulation and less State intervention and a human rights system demanding regulations, justice and non-discrimination are likely to increase if no action is taken.
If IFIs want to promote sustainable development, economic and financial stability and reduce poverty and widespread inequalities, the compatibility of their policies with the human rights system needs to be addressed, notably within the realm of the HIPIC initiative.
3.3. Transnational Corporations and Human Rights
Over the last decade, more and more cases have been documented regarding the involvement of TNCs in human rights violations. To respond to this reality and to the fact that States are often unable or unwilling to take action, several initiatives have been taken either by the companies themselves (promulgation of codes of conduct), or by the international community, including the United Nations Global Compact, the Sub-Commission’s Working Group on the Activities of TNCs, as well as the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy.
3.4. Suggested changes/additions to the Outcome Document
Proposed OMCT changes to the draft outcome document are indicated in bold and aim at guaranteeing that human rights, as well as labour rights, gain due recognition in the final outcome document.
5. The increasingly interdependent world economy requires a holistic approach to the interconnected national, international and systemic challenges of financing for development – sustainable, gender-sensitive, people-centred and human rights and labour rights -centred development in all parts of the globe. To this end, coherent actions are needed in each interrelated area of our agenda, with the active partnership of all stakeholders, public and private.
7. In our common pursuit of growth, poverty eradication, realisation of human rights, fundamental freedoms and labour rights, as well as sustainable development, a critical challenge is to ensure the necessary internal conditions for mobilising enough domestic savings to sustain adequate levels of investment in productive and human capacity. A crucial task is to enhance the appropriateness, coherence and consistency of macroeconomic and structural policies and to guarantee that they do not negatively impact on the enjoyment of all human rights. An enabling domestic environment is vital for mobilising domestic resources, reducing capital flight, and attracting and making good use of international development assistance.
9. We will consolidate appropriate policy and regulatory framework to encourage private and local initiative to foster a dynamic and well-functioning business sector, while improving income distribution, empowering women, and protection labour rights, human rights and fundamental freedoms and the environment. We recognise that the specific mix between market-oriented policies and State intervention will vary from country to country, according to specific circumstances. However, the respect of human rights and fundamental freedoms should always constitute the guiding principles for establishing a proper balance between these two elements.
13. Social security and safety nets, Investments in basic economic infrastructure and social services including education, health, nutrition and social security programmes to foster the realisation of human rights such as the right to education, the right to health, the right to food and the right to social security, which take special care of children, minorities and indigenous peoples and are gender-sensitive and fully inclusive of the rural sector and all disadvantaged communities are vital to enabling people to better adapt to and benefit from changing economic conditions and opportunities and to contribute to economic activity. Recent economic crises have also stressed the importance of effective social safety nets.
18. Private international capital flows, particularly long-term flows, as well as international financial stability, are vital complements to national development efforts. Foreing direct investment (FDI) contributes towards financing development in the long term in a more stable and orderly fashion than portfolio investment. And FDI is especially important for its potential to transfer knowledge, skills and technology, create decent jobs, boost overall productivity, enhance competitiveness and entrepreneurship, and ultimately reduce poverty through economic growth and sustainable people-oriented development. A central challenge, therefore, is to attract direct investment flows to a much larger number of developing countries.
19. To attract stable inflows of capital, countries need to continue their efforts to achieve transparent, stable and predictable investment climates, embedded in sound macroeconomic policies and institutions that allow business, both domestic and international, to operate efficiently and profitably, in the respect of human rights, fundamental freedoms and labour rights and with maximum sustainable, people-oriented development impact. Special efforts are required in such priority areas as economic policy and regulatory frameworks for the promotion and protection of human rights and labour rights, taking into account the United Nations Global Compact, the Sub-Commission’s Working Group on the Activities of TNCs, as well as the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy.
21. While Governments provide the framework within which businesses operate, firms, for their part, have a responsibility to engage as reliable, transparent, accountable and consistent partners in the development process. In a spirit of good corporate citizenship firms should take full account not only the economic and financial but also the social, environmental and human rights and labour rights implications of their undertakings.
23. More equitable and fairer trade would substantially stimulate sustainable, equitable and peoples-oriented development worldwide, benefiting both industrialised and developing countries. The current slowdown in the world economy urges us to reaffirm our commitment towards a more equitable and fairer trading system, ensuring that trade plays its full part in promoting recovery, growth, the enjoyment of all human rights, labour rights, fundamental freedoms and development.
25. Nations will attain full benefits from such reforms only if we ensure an open, transparent, accountable, ruled-based, predictable and non-discriminatory multilateral trading system. Trade barriers, subsidies and other trade-distorting measures particularly in agriculture, have negative effects on developing countries that significantly exceed the value of aid flows –and must be eliminated.
26. To ensure that the world trade supports development goals, we will strive to:
· Support measures to ensure consistency of trade policies with the promotion and protection of all human rights;
· Regarding trade-related intellectual property rights, ensure the rights of people to their traditional knowledge and promote the transfer of knowledge and technology, while providing incentives to innovate, and respecting, in particular the right to health.
There are no further changes/additions to the rest of this paragraph.
32. Revitalising official development assistance in accordance with article 2 of the ICESCR. Official development assistance (ODA) plays an essential role as a complement to other sources of financing for development, especially in those countries with the least capacity to attract private direct investment. ODA can help a country to reach adequate levels of domestic resource mobilisation over an appropriate time-horizon while human capital, productive capacities and export supplies are expanded.
There are no further changes/additions to the rest of this paragraph.
43. The Heavily Indebted Poor Countries' (HIPIC) initiative can provide a unique opportunity to strengthen the economic prospects and poverty reduction efforts of its beneficiary countries, as they commit to sound policies consistent with these countries' human rights and labour rights obligations. But a continued effort is needed to reduce debt in low-income countries to sustainable levels, and speedy and full implementation of the HIPIC Initiative is critical. Any further step to enhance this initiative should be based on three considerations. Firstly, debt sustainability should be assessed in terms of each country’s capacity to raise the finances needed to achieve the millennium development goals. Secondly, any new arrangement should avoid imposing burdens on other developing countries. Thirdly, any new Poverty Reduction Strategy Papers (PRSPs) should fully integrate the human rights dimension.
46. To complement national development efforts, the international monetary, financial and trading systems need to operate coherently, consistently and with full respect for human rights, fundamental freedoms and core labour standards. To contribute to this end, efforts should be strengthen at the national level to enhance coordination among all relevant ministries and other domestic institutions. Similarly, we commit ourselves to ensuring greater policy coherence and better coordination among international institutions in order to meet the goals of sustained, fair and equitable economic growth, poverty eradication and sustainable development. In this respect, concrete measures should be undertaken in order to guarantee policy coherence and consistency between the human rights and labour rights framework and the monetary, financial and trading systems in a way guaranteeing the full enjoyment of these rights.
50. We call on multilateral financial institutions, in providing policy advice and supporting adjustment programmes, to work on the basis of nationally owned programmes of reform, and to pay due regard to special needs, implementing capacities of developing and transition countries, as well as to human rights, labour rights and fundamental freedoms, aiming at the best possible fair and equitable outcomes for growth and development.
55.Improving Global Economic Governance. Good governance at the international level is also essential for sustainable development worldwide. To better the growth of interdependence and enhance legitimacy, global economic governance needs to improve in two areas: broadening the base for decision-making on issues of global concern, and filling organisational gaps. To complement and consolidate advances in these two areas, we must strengthen the United Nations's role in achieving policy coherence and coordination among international institutions and United nations specialised agencies , including the World Bank, the IMF, the Office of the High Commissioner for Human Rights and the International Labour Organisation, in a way guaranteeing the primacy of human rights and labour rights.
57. A first priority is to find pragmatic and innovative ways to further enhance the effective participation of developing countries and civil society in international dialogue and decision-making processes. We therefore encourage the following actions:
· IMF and World Bank. To continue to enhance the role of developing countries in their decision-making and deliberative bodies, taking into account these countries’ real economic weight as well as the need to strengthen the voices of low-income countries. To enhance the role of civil society and affected groups in the decision making and implementation of their policies, and reinforce existing mechanisms guaranteeing proper restitution, compensation and rehabilitation to those individuals whose human rights, fundamental freedoms and labour rights have been affected by their programmes and policies;
· World Trade Organisation: To ensure that any steering group is representative of the full membership of the World Trade Organisation and that participation is based on clear, simple, objective criteria. To establish an accreditation system for non-governmental organisations as it exists within the United Nations and the International Labour Organisation frameworks;
There are no further changes/additions to the rest of this paragraph.
58. To address several gaps in global economic governance, we encourage the following actions:
· Strengthen the World Trade Organisation by enhancing its capacity to provide technical assistance to developing countries and by upgrading its institutional relationship with the United Nations, through the creation of an observer status for other international and regional institutions such as the United Nations Office of the High Commissioner for Human Rights, the ILO, the World Health Organisation, etc;
· Strengthen the capacity of the International Labour Organisation and of the United Nations Office of the High Commissioner for Human Rights to implement their agreed standards;
· Strengthen the coordination of the United Nations system and all other multilateral financial and development institutions, including environment and human rights institutions, to more decisively mainstream gender and human rights issues into economic and development policies and support growth and people-oriented sustainable development worldwide;