A/HRC/45/28
own standards when investing, there is reportedly no information pertaining to compliance
with such standards.15
25.
More generally, an enabling environment at the local level where international
financial institutions decide to invest is critical. Free and unhindered exercise of the rights
to freedom of opinion and expression, freedom of peaceful assembly and freedom of
association, as guaranteed under international human rights law, is the bedrock of
meaningful public participation in decision-making processes. However, assessment of the
enabling environment for such participation at the project and country levels is often not
covered as part of due diligence under international financial institutions’ existing
safeguards prior to making an investment decision, which is of serious concern to the
Independent Expert.16 He echoes the recommendation made by OHCHR and civil society
actors that due diligence should cover the enabling environment for the participation of
stakeholders, in law, policies and practice, and more generally the human rights situation,
taking into consideration the space for dialogue and the power dynamics at the project and
country levels.17 This should be done not only at the beginning, but throughout the project.
26.
The Independent Expert supports the emerging practice led by some international
civil society organizations to empower communities affected by a project to conduct their
own due diligence on the impact of the project, as they are best placed to inform such a
process. Evidently, the enabling environment for community-led human rights due
diligence should be secure. If it is not, as with any assessment, the international financial
institutions should question the appropriateness of their investment in that country. 18
2.
Transparency
27.
Early and timely access to information for stakeholders affected by development
projects is of paramount importance so that they can meaningfully engage in the
development process at stake. Several international financial institutions have put in place
disclosure policies pertaining to access to information for the projects that they fund. These
policies cover the proactive sharing of information, as well as reactive responses to requests
for information. The right to access to information, as guaranteed under international
human rights law, is explicitly recognized by some international financial institutions, such
as ADB. 19 The Independent Expert regrets that it is not currently the case with other
institutions, such as EBRD or IDB. The recognition of this right is key in framing the
balance between commercial interests and the rights of communities potentially affected by
projects supported by international financial institutions. 20 OHCHR and several civil
society organizations have produced thorough commentaries on the disclosure policies of
international financial institutions, including AfDB, the European Investment Bank, EBRD
and IDB.21
15
16
17
18
19
20
21
Ibid.
OHCHR, “Benchmarking study”, draft study report, p. 15.
Ibid., p. 17; and the joint statement by more than 150 civil society organizations entitled
“Responsibility of international financial institutions to ensure meaningful and effective participation
and accountability within their investments, and to foster an enabling environment for freedoms of
expression, assembly, and association” (11 July 2016), as provided by the Coalition for Human
Rights in Development.
Submission received from the Coalition for Human Rights in Development.
OHCHR, “Benchmarking study”, draft study report, p. 48.
OHCHR, “Benchmarking study”, draft study report, p. 48.
Submission received from Stichting Both Ends on the AfDB disclosure policy; submission received
from Counter Balance on the European Investment Bank’s Environmental and Social Principles and
Standards; Ishita Petkar, “Will the EBRD make a better offer on public information disclosure and
engagement?”, CEE Bankwatch Network, 28 March 2019; OHCHR, “Recommendations for EBRD
access to information policy“, 6 March 2019; and joint statement by the International Accountability
Project, Bank Information Center, Fundeps and Accountability Counsel entitled “Comments and
recommendations on the Inter-American Development Bank’s update to the access to information
policy profile”, 24 December 2019.
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