A/HRC/45/15
2018–2020, sought to facilitate the transition from financing based on development
assistance to other sources of development financing.
72.
Another important aspect was the participation of the Russian Federation in debt relief
and restructuring for least developed countries through the Paris Club of Industrial Country
Creditors. The share of the Russian Federation amounted to $51 billion, of $583 billion
regulated by the Paris Club since its establishment.
73.
The Russian Federation had ratified the Convention on Mutual Administrative
Assistance in Tax Matters. In 2016, it had signed the multilateral competent authority
agreement on automatic exchange of financial account information. In 2019, it had ratified
the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base
Erosion and Profit Shifting.
74.
Finnfund is a Helsinki-based development financier owned by the Finnish State and
run by the Ministry for Foreign Affairs of Finland. Finnfund reported that it invested in
private sector businesses that operated in developing countries, and provided expertise on
how to invest in developing markets. Finnfund expected projects to be profitable and put
special emphasis on sectors that facilitated sustainable development, such as clean energy,
sustainable forestry, sustainable agriculture and financial services, although the fund invested
in other sectors as well.
75.
Finnfund reported that the planning of financing interventions was not done at
Finnfund. Rather, the fund encouraged its investee or borrowing companies to support and
contribute to local development projects. Finnfund also expected its clients to provide
information to local communities and other relevant stakeholders, to actively engage with
them at different stages of a project and to make adequate grievance mechanisms available
to stakeholders.
76.
The fund was actively working to integrate a human rights lens into its investment
process and was promoting gender equality through the financing of gender-positive projects
and companies. Finnfund had published a human rights policy statement and a gender
statement. It also had a tax policy that set out principles for responsible taxpaying and
published the taxes paid by its investee and borrowing companies at a country level.
77.
Before approving an investment, Finnfund assessed its potential impact on income
distribution and inclusiveness, and the fund strove to mitigate risks to the most vulnerable
segments of the population. Where possible, the fund encouraged companies to engage in
benefit-sharing schemes.
78.
The Associazione Comunità Papa Giovanni XXIII submitted information about the
Rainbow Project, a participatory microfinance scheme in Zambia. The Project coordinated
local community-based organizations to support vulnerable children and AIDS orphans. The
Associazione Comunità Papa Giovanni XXIII highlighted the Project’s twin-track approach.
Small loans in the first track consisted of agricultural inputs, such as seeds, fertilizer and
tools, and families were provided with technical training. The recipients then repaid the loan
with in-kind contributions, such as a portion of the crops that they had cultivated. The second
track consisted of food, education and health-care assistance for families. In more urban
settings, the loans supported small commercial initiatives.
79.
The governance structure of the Project ensured that all relevant decisions were taken
with participatory mechanisms involving beneficiaries: individuals and communities. They
were involved in needs assessments, planning, implementation and evaluation. The twintrack approach was based on needs assessments performed at the community level, and
beneficiary participation allowed for the better tailoring of programmes to the real needs of
the people.
III. Challenges in implementing the right to development in
financing for development
80.
The Special Rapporteur welcomes the information received about financing for
development practices at the national level. The examples cited above provide a selection of
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