A/HRC/10/7 page 8 securities, and making capital injections into banks. This so-called “bail-out”18 is considered by some observers as an opportunity to rethink a system in which individuals and private entities are seen to “take hostage” the population and the authorities, given the significant consequences of their activities. The financial sector is recognized to be in need of thorough reform and restructuring; massive public expenditure for the rescue of the financial sector requires all actors to be held accountable and ensuring that their activities do not negatively impact human rights. 16. The draft outcome document of the Follow-up International Conference on Financing for Development to Review the Implementation of the Monterrey Consensus states that “the current financial crisis, as well as the continued weaknesses in the international financial system, further underline the need to strengthen the international financial architecture”.19 Unfortunately, the document fails to recognize the need for a human rights-based approach to this process. The current crisis represents a threat to the implementation of housing rights - as well as other human rights - if bank losses are covered by public funds at the expense of State programmes and development aid for housing and other social areas. It can thus further deepen the current crisis in housing and living conditions. 17. Another important additional element that has to be taken into account in the context of the present report is the impact on States, housing policies and related issues of the acceleration of global interdependence, interaction and integration. While the financial crisis was initially seen as a crisis of developed countries, it is increasingly spreading to affect also developing ones. For many countries already hard-hit by food and energy price increases, the financial crisis and its impact on the global economy is triggering additional problems. The crisis is expected to affect developing countries differently, depending on their links with the international financial system. For instance, in sub-Saharan Africa, the impact of the crisis should be more limited than in other regions of the world because of its de-linkage from Western financial institutions.20 Despite these differences, four trends would have a negative impact on most developing countries: the decline in exports from developing to developed countries (because of the recession in the latter), possible decline in international development aid, decreasing income remittances from migrants, and a decline in foreign direct investment. In addition, in case of a global recession, the impact of the crisis will affect all countries. 18. The Special Rapporteur believes that the crisis, and its origins in the housing market, reflects fundamental flaws in current economic and housing policies, revealing the inability of market mechanisms to provide adequate and affordable housing for all. The underlying causes of the mortgage crisis and the resulting global financial crisis must be examined to assess their impact on the right to adequate housing. 18 Bail-out in economics and finance is a term used to describe a situation where a bankrupt or nearly bankrupt entity, such as a corporation or a bank, is given a fresh injection of liquidity, in order to meet its short-term obligations. 19 A/CONF.212/L.1/Rev.1, para. 68. 20 “Africa’s prospects - opportunity knocks”, The Economist, 9 October 2008.