A/HRC/42/38 67. States should diversify sources of revenue to ensure sustainability, thereby avoiding the negative consequences of economic shocks and discouraging corruption. Natural resource extraction should not be the only engine of development. 68. States should develop intentional development policies to which they remain committed over time, including: (a) a specific strategy about the sectors in which the State would invest and the sequencing of that investment; (b) a conscious policy commitment to social and economic inclusiveness, either through social welfare programmes or investment in public services like housing, education, social protection and health care; and (c) an open policy space where policies could be evaluated and revised as needed. 69. States should promote social innovation and new endeavours aimed at meeting social needs. Where economic activities that promote social welfare and solidarity exist, Governments should not hamper such activities and provide support. 70. States should not embark on broad economic liberalization measures without first assessing the human rights impact of the policies to be undertaken, since such measures have the potential to entrench social inequalities and undermine the regulatory capacity of States, in particular in relation to the enjoyment of social, cultural and economic rights. 71. Tax breaks and subsidies by States to businesses should be evaluated to assess whether they are achieving the goals of creating employment, providing living wages and good working conditions for the population. 72. States should not offer fiscal incentives to foreign investors and corporations without having first made an impact assessment evidencing that the benefits to their constituents outweigh losses in tax revenue and do not result in human rights infringement. States should seek to attract foreign investors that can fill domestic competence gaps and develop local businesses. Information on granting tax incentives to foreign corporations and the methodologies and outcomes of assessments should be publicly available. 5 Regional and international levels 73. States should shift from a donor-recipient paradigm to a genuine partnership with developing countries as envisaged in the Declaration on the Right to Development and in Goal 17 of the Sustainable Development Goals. States should base their development financing on the priorities of recipient partners and guarantee that beneficiary States have ownership of development projects carried out with this financing. 74. Governments and international organizations should not focus on development financing solely as a means to elicit economic returns. The debate on funding development should be recentred on States’ obligations to promote development using the maximum resources available and seeking or providing international cooperation in that regard. 75. The European Union, as one of the major contributors to development cooperation, should continue to promote the establishment of social protection floors, which have proved to have positive impacts. 76. The Green Climate Fund should be directly accessible to States and communitybased stakeholders. Specifically: (a) States should review the rules regulating access to funds so that they are more inclusive and guarantee projects that are truly geared towards reducing emissions and promoting clean energy solutions; (b) States that have contributed disproportionately to climate change should meet their corresponding financial commitments, in accordance with Principle 16 of the Rio Declaration on Environment and Development. 5 10 The Committee on Economic Social and Cultural Rights has offered similar guidance regarding the potential negative impacts of business activities on economic, social and cultural rights. See the Committee’s general comment No. 24 (2017) on State obligations under the International Covenant on Economic, Social and Cultural Rights.