A/HRC/41/39/Add.2
of the sector. Its approach should be tempered, however, by the failures of its “model” dam
Nam Theun 2, which has been strongly criticized by Thayer Scudder, a member of the Nam
Theun 2 panel of experts,67 the inadequate implementation of the 2015 World Bank Groupsupported Policy on Sustainable Hydropower Development and the Xe-Pian Xe-Namnoy
dam collapse. In general, the Bank has been reluctant to reckon with past shortcomings and
has accepted large disconnects between policy and practice.
84.
More consideration must be given to the harms experienced by communities
affected by land grabs and hydropower and other large infrastructure projects, as well as by
industrial plantations. Poverty alleviation programmes should ensure respect for the rights
of persons living in poverty and ensure that foreign investment takes place on terms that
benefit the Lao people and not just the investors.
85.
While the World Bank is an enthusiastic advocate for opening up space for the
private sector, it offers few words on civil society space or public participation.68
C.
Corporate sector
86.
Companies choose to invest or operate in the Lao People’s Democratic Republic
knowing full well the serious human rights concerns, the high levels of corruption and the
lack of resources for regulatory monitoring and enforcement. One might hope to see
proactive steps being taken, especially by multinational corporations with significant
resources, to avoid causing or being complicit in adverse human rights impacts, in line with
their responsibility to respect human rights (see A/HRC/17/31, annex). Companies,
including foreign companies investing in Lao special economic zones or the hydropower
and mining sectors, should have an ongoing human rights due diligence process to identify,
prevent and mitigate their impact on human rights, as well as a process for providing
remedies where appropriate. Unfortunately, many corporate actors operating in the country
have an abysmal track record on everything from environmental and social impacts to
compliance with domestic and international law.69 Companies should cooperate fully with
judicial and non-judicial grievance mechanisms in the Lao People’s Democratic Republic
and those based in their home State to address human rights abuses and other harms linked
to their work.
87.
Companies should make project documents available online in English and Lao,
including environmental, social and human rights impact assessments, as well information
about the process for seeking remedies and the status of compensation for land loss.
Companies should publish a human rights-compatible corporate accountability policy.
88.
Companies whose investments and activities will directly affect communities should
proceed with great care in consulting and seeking informed consent for their activities.
They should make use of existing tools, guidelines and best practices, proactively and
continuously provide information in communities’ preferred language and format, make
their representatives available to individuals and connect communities with independent
advocates. Consultations with or consent from village leaders is no substitute for
engagement with the community, including with individuals who are often marginalized or
shut out of such processes, such as women and people with disabilities.
89.
States have a crucial role to play in monitoring investors and their conduct in the
Lao People’s Democratic Republic. States should strengthen the capacity of their
institutions and legal frameworks to address the extraterritorial impacts of investments or
67
68
69
International Rivers, “Nam Theun 2 Dam”. Available from
www.internationalrivers.org/campaigns/nam-theun-2-dam.
World Bank, “World Bank East Asia and Pacific VP Highlights Human Capital, Green Growth in
Visit to Lao PDR,” press release, 1 April 2019. Available from www.worldbank.org/en/news/pressrelease/2019/04/01/world-bank-east-asia-and-pacific-vp-highlights-human-capital-green-growth-invisit-to-lao-pdr.
See, for example, Southeast Asian Press Alliance, “Poisoned fish worries village as Sangthong district
promotes good agricultural practices”, 2019. Available from www.seapa.org/laos-poisoned-fishworries-village-as-sangthong-district-promotes-good-agricultural-practices/.
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