A/HRC/17/37
importance of the rights to information and participation, which helped citizens hold their
Governments accountable in relation to loan contraction, use of loan funds and debt
management.
44.
In the subsequent discussion, one participant expressed concern in relation to the
low level of participation of the African diplomatic corps based in Addis Ababa. It was
observed that this could possibly be attributed to the technical nature of the issues under
consideration. In this regard, it was suggested that efforts should be made to put the issues
under debate on the agenda of the African Union and to convene an African Union summit
on the question of foreign debt and its impact on human rights.
45.
There was broad agreement on the need for an improved legal framework to address
the impact of external debt on the realization of human rights. Some participants expressed
concern over the tendency of transnational corporations and international financial
institutions to claim that they are not bound by international human rights law.
D.
Session III: Debt, debt relief and economic reform
46.
The session opened with three panel presentations. The first presentation, addressing
debt relief, conditionality and accountability, highlighted the adverse impacts of
conditionalities imposed as part of the current multilateral debt relief schemes. These
conditionalities, it was contended, occasioned “sovereignty cost” which included a lack of
space for policy formulation that undermined national ownership of development policies.
The speaker also criticized the joint World Bank/International Monetary Fund debt
sustainability framework for its failure to adopt pro-poor and human rights-based
approaches.
47.
In the second presentation, the relationship between poverty and human rights was
explored and a human rights-based approach to poverty reduction strategies was proposed
which: (a) takes into account both a moral value and a legal obligation; (b) seeks to
empower people; (c) is based on the human rights obligations of States; (d) promotes
accountability; and (e) complies with human rights principles.
48.
In the third presentation, the speaker addressed the issue of coherence between debt
and trade policies and related obligations of States. It was asserted that one of the major
obstacles to finding an enduring solution to the debt problems of developing countries had
been the approach of bilateral and multilateral lenders that viewed the debt crisis as a mere
financial problem. For this reason, the measures aimed at addressing the debt crisis were
confined to fiscal and monetary restraints, structural reforms involving the reduction of
public sector spending (including on basic social services), and trade and financial
liberalization. The view was expressed that the debt problem of developing countries was
rooted in the unequal economic relationships between those countries and developed
countries and that most debts were illegitimate or odious. The current approach to debt had
resulted in massive poverty in many debtor countries. It was proposed that a human rightsbased approach to debt management and trade policies be adopted as a lasting solution to
the debt crisis and related socio-economic problems.
49.
In the discussions that followed, participants opined that the guidelines needed to
address more clearly the issue of illegitimacy or odiousness of debt. In this regard, it was
proposed that a set of criteria for the identification of illegitimate and odious debt should be
established.
50.
In regard to the question of policy coherence, participants underlined the need, both
at the international and national levels, for better coherence between debt and trade policies.
To illustrate, one participant referred to the huge subsidies that creditor countries provided
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