A/HRC/17/37 need for coherence between trade and debt policies. Attention was drawn to the adverse impact of macroeconomic conditionalities on the capacity of Governments to deliver essential social services and to the need for a new approach to debt sustainability, lending and borrowing and debt resolution that took account of resources needed by Governments to meet their development objectives. 26. In one presentation, some basic principles for responsible lending and borrowing were underlined, including the following: (a) loans must be driven by national needs and growth strategy; (b) fair interest rates and penalties policies must be applied; (c) parliamentary and citizen participation and consent are crucial; (d) full public disclosure of information must be ensured; (e) activities financed must not violate human rights treaties; (f) independent ex ante long-term integrated impact assessments of viability of project and details of how risk must be shared between signatories; (g) compliance with social, labour and environmental standards as enshrined in international agreements must be ensured; and (h) provision must be made for an independent and transparent arbitration procedure in the event of repayment difficulties or dispute. 27. Participants expressed support for the work of the Independent Expert and welcomed the consultation on the guidelines. Participants further highlighted the need for an international sovereign debt resolution or restructuring mechanism, under the aegis of the United Nations, to replace ad hoc mechanisms. D. Session III: Core human rights principles and obligations 28. This session explored core human rights principles and obligations relevant to foreign debt and economic reform. Participants underscored the importance of adopting a human rights-based approach5 to foreign debt and related policies. It was stated that one of the key contributions that the guidelines could make was the utilization of the analytical framework of respect, protect and fulfil – three levels of State obligations – for the framework of public policies concerning external debt. 29. The presentations highlighted the need for: (a) the guidelines to emphasize the shared responsibility of creditors and debtors for preventing and resolving situations of unsustainable debt; (b) public scrutiny of loan negotiations; (c) public participation through domestic representative bodies; (d) a gendered perspective to be central to decision-making; and (e) debt relief not to be considered official development assistance. It was further noted that international assistance was not an act of charity, but rather an obligation that States had assumed through the ratification of international human rights treaties. 30. One participant stated that given the vulnerability to climate change of some island States in the region it was necessary to evaluate how that vulnerability affected gross domestic product and debt management processes. 5 8 A human rights-based approach is a conceptual framework that is normatively based on international human rights standards and operationally directed towards promoting and protecting human rights. See OHCHR, Frequently Asked Questions on a Human Rights-based Approach to Development Cooperation (New York and Geneva, United Nations, 2006), p. 15. See also “The human rights-based approach to development cooperation: towards a common understanding among United Nations agencies” (2003).