A/HRC/4/10 page 14 obligations. In this context, the feasibility of simultaneous tax and trade reforms should be assessed in order to compensate negative revenue impacts and subsequent lower capacity to fulfil human rights obligations. If the trade reform has been carefully designed, fiscal gaps should however be transitional and ultimately compensated by increased trade flows, higher economic growth, reduction of tax evasion and higher customs administration efficiency following trade related reforms. 45. Trade liberalization agreements between poor countries and industrialized (or advanced developing countries) should ideally contain adequate aid packages designed to tackle the above-mentioned supply side constraints and help to strengthen the competitiveness of domestic sectors during the agreed liberalization transition periods. They should also include appropriate assistance packages such as safety nets and mechanisms for the vulnerable groups who would potentially be affected by reform-induced shocks. 46. Investment and trade decisions always take the respective business environment into consideration, in particular the legal and administrative framework set by government policy. While the creation of a stable and transparent environment conducive to investment and trade is the full responsibility of host Governments, the international community should support its implantation though development cooperation measures. 47. While not being part of economic reform policy in a strict sense, the importance of improved and stable access for poor countries to the markets of industrialized and advanced developing countries ought to be emphasized. This is especially the case of agricultural products, where many poor countries have comparative advantages. The problem of agricultural subsidies in the rich countries, undermining export opportunities of poor countries is, therefore, closely linked to this issue. D. Governance 48. Governance can be defined as the institutional capacity of public organizations to provide the public services and other goods demanded by a country’s citizens or their representatives in an efficient, transparent, impartial and accountable manner.21 49. The Commission on Human Rights had recognized in its resolution 2000/64 that “transparent, responsible, accountable and participatory government, responsive to the needs and aspirations of the people, is the foundation on which good governance rests, and that such a foundation is a sine qua non for the promotion of human rights”. 50. Most economic reform programmes and PRSPs refer to a large number of governance aspects including accountability and anti-corruption measures; civil service and legal reforms; transparency within the budgetary process; strengthening of institutions and the enhancement of civil society’s monitoring capacities. 51. Governance related reforms are generally very closely linked to human rights. Transparency in budgetary and other governmental processes is congruent with the right to information and the capacity of people to participate in the monitoring and assessment of polices