A/HRC/4/10
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obligations. In this context, the feasibility of simultaneous tax and trade reforms should be
assessed in order to compensate negative revenue impacts and subsequent lower capacity to fulfil
human rights obligations. If the trade reform has been carefully designed, fiscal gaps should
however be transitional and ultimately compensated by increased trade flows, higher economic
growth, reduction of tax evasion and higher customs administration efficiency following trade
related reforms.
45.
Trade liberalization agreements between poor countries and industrialized (or advanced
developing countries) should ideally contain adequate aid packages designed to tackle the
above-mentioned supply side constraints and help to strengthen the competitiveness of domestic
sectors during the agreed liberalization transition periods. They should also include appropriate
assistance packages such as safety nets and mechanisms for the vulnerable groups who would
potentially be affected by reform-induced shocks.
46.
Investment and trade decisions always take the respective business environment into
consideration, in particular the legal and administrative framework set by government policy.
While the creation of a stable and transparent environment conducive to investment and trade is
the full responsibility of host Governments, the international community should support its
implantation though development cooperation measures.
47.
While not being part of economic reform policy in a strict sense, the importance of
improved and stable access for poor countries to the markets of industrialized and advanced
developing countries ought to be emphasized. This is especially the case of agricultural
products, where many poor countries have comparative advantages. The problem of agricultural
subsidies in the rich countries, undermining export opportunities of poor countries is, therefore,
closely linked to this issue.
D. Governance
48.
Governance can be defined as the institutional capacity of public organizations to provide
the public services and other goods demanded by a country’s citizens or their representatives in
an efficient, transparent, impartial and accountable manner.21
49.
The Commission on Human Rights had recognized in its resolution 2000/64 that
“transparent, responsible, accountable and participatory government, responsive to the needs and
aspirations of the people, is the foundation on which good governance rests, and that such a
foundation is a sine qua non for the promotion of human rights”.
50.
Most economic reform programmes and PRSPs refer to a large number of governance
aspects including accountability and anti-corruption measures; civil service and legal reforms;
transparency within the budgetary process; strengthening of institutions and the enhancement of
civil society’s monitoring capacities.
51.
Governance related reforms are generally very closely linked to human rights.
Transparency in budgetary and other governmental processes is congruent with the right to
information and the capacity of people to participate in the monitoring and assessment of polices
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