A/HRC/28/65
legal traditions. These barriers have been overcome in only some instances and, in those
cases, usually as a result of innovative approaches adopted by lawyers, the patience of
victims and responses by perceptive judges. 57
54.
If TNC activities are criminally justiciable and reasonable compensation is
enforceable, the issue of extraterritoriality may not arise. However, in cases of indirect
violations of the right to food, for instance by way of voluntary displacement or not being
able to farm because of a lack of access to necessary resources such as water because of
privatization, or seeds because of a monopoly by TNCs, human rights adjudication
becomes vital. Consequently, such remedies should provide enforceable compensation and
restitution. The remedies currently available for individuals whose economic, social and
cultural rights are violated are somewhat limited. Considerable improvements in this regard
are essential for cases involving violations of the right to food to be protected from
violations committed by foreign and national actors.58
3.
Private arbitrations and dispute mechanisms
55.
In relation to IFIs, private dispute mechanisms have been developed, including the
establishment of an ombudsperson for international finance corporations, as have complaint
mechanisms, such as the World Bank’s International Centre for Settlement of Investment
Disputes (ICSID) and the contact point procedure under the OECD Guidelines for
Multinational Enterprises.59 Under these mechanisms ICSID States and private actors are
on an equal footing. The flip side is that corporations are in a position to sue governments.
56.
Developing countries are increasingly subject to dispute procedures brought by
private companies. For example, high water prices and poor water quality following the
privatization of the water supply in the Bolivian town of Cochabamba, culminated in
protests against Aguas de Tunari, a subsidiary of the United States firm Bechtel.60 The
Government succumbed to public pressure and reversed the decision to privatize, which
prompted the company to bring the Government before ICSID. The case posed the
fundamental question of whether the property rights of the company could trump the rights
to food and to access water and sanitation. In the end, civil society pressure led to a
settlement and, as a result, Bolivian water laws were amended with the 2009 Constitution
guaranteeing the right to access to water. 61
57.
Other examples include a lawsuit brought by the Oceana Gold mining company
against El Salvador through ICSID for US$301 million for failure to grant a mining permit.
It was alleged that the project posed a risk to the country’s livelihood. Having failed to
change the domestic law to relax regulation, the company initiated arbitration measures to
pressure El Salvador into paying for lost exploration costs and future profits. 62 These cases
demonstrate how intervention is necessary to prevent democratic rights from being
undermined by global norms.
57
58
59
60
61
62
16
Ibid., p. 5.
Skogly, “Right to adequate food”, p. 355.
Malcolm Langford et al. (eds.), Global Justice, State Duties: The Extraterritorial Scope of Economic,
Social, and Cultural Rights in International Law (Cambridge University Press, 2013), p. 7.
Aguas del Tunari S.A. v. Republic of Bolivia, ICSID Case No. ARB/02/3.
Andreas Fischer-Lescano and Kolja Moller (eds.), The struggle for transnational social rights: land
grabbing and the right to food (2014).
International Allies Against Mining in El Salvador, “Call for international support”. Available from
www.stopesmining.org/j25/index.php/campaigns/2014-international-month-of-action.
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