A/HRC/40/57 II. Obligations of States Principle 2 – Obligations of States with respect to economic policies and human rights States are obliged to manage their fiscal affairs and to adopt economic policies to ensure that they respect, protect and fulfil all human rights. Economic choices made by States, whether acting alone or as members of international financial institutions, must comply with their international human rights obligations at all times, including during times of economic crisis. Commentary 2.1 States are responsible for carefully examining different policy options at any and all times and for determining the most appropriate measures in the light of their circumstances and their international and domestic human rights obligations. 2.2 Taking timely, effective and preventive measures is a critical part of ensuring all human rights during economic and financial crises. 2.3 In times of economic and financial crisis, States’ efforts are often directed at trying to stabilize the economy. This comes with the risk of disregarding their human rights obligations with regard to those who suffer most from the economic crisis. Governmental efforts at stabilization can also exacerbate human rights violations. This approach is counterproductive because it is precisely during these periods that the population − in particular those who are disenfranchised, living in poverty or at high risk of falling into poverty − is in greatest need of State compliance with its obligations to respect, protect and fulfil human rights. 8 2.4 These obligations apply to all branches of the State (executive, judicial and legislative) and all levels of government (national, subnational and local) within their allocated sphere of responsibilities. 2.5 Commitments to fiscal discipline policies, whether stated in domestic constitutions or in regional or international agreements, must not lead to sacrificing international human rights obligations. States should undertake full assessments of the potential impacts of fiscal discipline policies in different national and subnational contexts before committing to such policies. Principle 3 – Burden of proof and obligation to conduct human rights impact assessments States and other creditors, including international financial institutions, should demonstrate that their proposed economic reform measures will realize, and not undermine, States’ human rights obligations. This implies a duty to carry out human rights impact assessments to evaluate and address any foreseeable effects of their economic policies on human rights. Consulting on, and making public in adequate formats the results of, human rights impact assessments are important components of complying with this obligation. Commentary 3.1 States and other creditors, including international financial institutions such as development banks, must carry out a human rights impact assessment before recommending or implementing economic reform policies that could foreseeably undermine the enjoyment of human rights. States have to establish, through the steps 8 Committee on Economic, Social and Cultural Rights, general comment No. 2 (1990) on international technical assistance measures, para. 9. 5