A/HRC/37/63
taxation to specifically prohibit “sweetheart” deals; (g) conduct systematic human rights
impact assessments to monitor the spillover effects of their tax policies and agreements
nationally and overseas (these should be periodic and independently verified); (h) impose
criminal penalties for abusive tax practices and abolish tax amnesties; (i) enact legislation
to protect whistle-blowers and witnesses, and ensure that individuals who want to share
information about corporate tax practices that harm human rights are not prosecuted or
subjected to reprisals; States should cease punishing individuals for disclosing information
that the public has a right to receive pursuant to article 19 of the International Covenant on
Civil and Political Rights. A charter on the rights of whistle-blowers and a “protected
disclosure defence” should be adopted, pursuant to which criminal or civil liability for
protected disclosures is waved and an “authorized channel” is provided for such disclosures;
and (j) introduce a financial transactions tax and enforce it.
J.
International financial institutions
64.
In his 2017 reports on the World Bank and IMF, the Independent Expert called upon
both Bretton Woods institutions to amend their Articles of Agreement so as to better serve
the purposes and principles of the United Nations, precisely because some of their activities
had entered into conflict with the human rights and development goals of the United
Nations.
65.
The Independent Expert recommended that both institutions should amend their
Articles of Agreement so as to integrate human rights and require human rights, health and
environmental impact assessments before approving projects or loans. He also
recommended the abolition of the World Bank’s International Centre for Settlement of
Investment Disputes (A/HRC/30/44).
66.
He proposed that the General Assembly take appropriate measures to bring the
World Bank and IMF on board, so that they worked for development and human rights and
assisted the world community in the achievement of the Sustainable Development Goals,
solving global problems, including pandemics, climate change and sovereign debt.
67.
In his report, he also called on IMF to abandon its misguided prioritization of
economic growth above all other considerations, including human rights and the
environment. Indeed, there is evidence that, within the institution, broader considerations,
including income and gender inequalities, are already being discussed. In June 2016, the
research department of IMF produced a paper, entitled “Neoliberalism oversold?”, in which
it questioned the efficacy of the current guiding ideology of IMF. The authors begin with
the ominous finding that, “instead of delivering growth, some neoliberal policies have
increased inequality, in turn jeopardizing durable expansion”, and concluding that the
current policies did not deliver as expected.23
68.
The strict and selective loan conditions imposed by IMF, such as the requirement
that States demonstrate rapid economic growth, discourages States from making long-term
investments in health, education and public infrastructure. Furthermore, the lack of a global
consensus on sovereign debt restructuring means that States that are not in a position to pay
back loans may fall into vicious debt crises. Together, these factors can increase
unemployment, worsen working conditions, reduce access to free quality education and
weaken environmental protection. In a systematic sense, they also diminish the capacity of
States to guarantee rights and can lead to underresourced public sectors that are vulnerable
to breakdowns and emergencies.
69.
At this year’s spring meeting of the World Bank and IMF, the Independent Expert
had the opportunity to discuss a variety of issues with lawyers and economists at both
23
18
Jonathan D. Ostry, Prakash Loungani and Davide Furceri, “Neoliberalism: oversold?”, Finance and
Development, vol. 53, No. 2 (June 2016). Available at www.imf.org/external/pubs/ft/fandd/
2016/06/pdf/ostry.pdf. See also Rick Rowden, “The IMF confronts its N-word”, Foreign Policy, 6
July 2016. Available at http://foreignpolicy.com/2016/07/06/the-imf-confronts-its-n-wordneoliberalism.
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