A/HRC/17/37
loan use and debt management. Some suggestions on strengthening parliamentary oversight
of debt management were put forward.
84.
A presentation on the role of civil society highlighted its role in the formulation,
adoption and advocacy of principles, standards and rules on lending and borrowing; public
revenue generation, public spending and debt management; establishment and
implementation of monitoring mechanisms; and the ensuring of transparency and
accountability in both borrowing and lending countries. The speaker emphasized the issues
of lender responsibility for the impact of their lending on the one hand and borrowers’ dual
obligations to the lender and to their citizens, on the other.
85.
Participants noted that a human rights impact assessment was not a one-size-fits-all
measure for loan agreements and that it depended on the project or activity in question. In
this regard, they underscored the need for development of a detailed human rights impact
assessment tool. It was further observed that impact assessments were the responsibility of
both lenders and borrowers.
86.
Participants underlined the need for the adoption of new, or the reinforcement of
existing, constitutional and legislative provisions concerning the role of parliament in loan
negotiation, contraction and debt management. Some participants expressed support for the
creation of specialized parliamentary committees due to the technical nature of the subject.
There was general agreement on the importance of debt audits – objective assessments of
debt from an ethical, financial, social and legal perspective – in ascertaining the debt
portfolio of countries.
87.
Concern was expressed over the increase in borrowing from private financial
markets due to the fact such loans were not subject to public auditing and impact
assessments.
F.
Other sessions
88.
The rest of the sessions were devoted to commenting on the scope and application of
the guidelines, overarching principles, guidelines on foreign debt, and guidelines on
economic reform policies, and to identifying missing elements in the draft guidelines.
89.
Discussions reflected the need: (a) to include a broad range of international
instruments in the general context section of the guidelines; (b) to include definitions of key
terms used in the guidelines; (c) to identify key overriding norms and principles, such as the
principle of non-retrogression and the do-no-harm principle; (d) to underscore the
obligations of international assistance and cooperation as enshrined in legally binding
human rights instruments; (e) to clarify the link between foreign debt and economic reform
policies; (f) to explain the role of different domestic institutions such as national human
rights institutions; (g) to refer to the impact of foreign debt on specific groups, as well as to
measures to address the needs of specific groups; (h) to consider whether a system of
remedies should be included in the guidelines; (i) to include the issue of bonds, secondary
debt markets and “vulture funds”; and (j) to include debt audits.
90.
Participants also stressed the importance of drawing lessons from other principles
and guidelines, such as those on development-based evictions and displacement developed
by the Special Rapporteur on adequate housing as a component of the right to an adequate
standard of living, and on the right to non-discrimination in this context.
16
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