ECONOMIC RESTRUCTURING SCHEMES MUST CONSIDER RIGHTS OF POOR, SAYS UN EXPERT

ECONOMIC RESTRUCTURING SCHEMES MUST CONSIDER RIGHTS OF POOR, SAYS UN EXPERT
New York, Oct 25 2007 8:00PM
International financial institutions and wealthy States imposing structural reform programmes on poor countries or executing debt repayments should ensure that when doing so they do not undermine basic cultural, social and economic rights, an independent United Nations human rights expert said today.

Bernard Mudho, the Human Rights Council's Independent Expert on the effects of economic reform policies and foreign debt on the full enjoyment of all human rights, unveiled draft guidelines at the General Assembly for financial institutions and industrialized States to follow when pursuing economic restructuring programmes in developing countries.

He told the Assembly's third committee that the draft guidelines include a provision calling on institutions demanding repayment of foreign debts to ensure that a debtor country is not prevented from fulfilling its human rights obligations to its citizens as a result.

Moreover, whenever major economic reform programmes are being considered, including macroeconomic stabilization, trade liberalization and social sector reform, social, cultural and economic impact assessments should be conducted first.

Human rights obligations should also play a vital role during international trade negotiations, Mr. Mudho said.

Loan performance should be monitored by both creditors and borrowers, he added, while the agreements should allow for the review of loan conditions.

The Independent Expert also said the global lending economy should also agree on common lending principles.

The guidelines are now being circulated among Member States and others and Mr. Mudho said he hoped the draft would serve as a basis for constructive discussions on issues of economic management.
2007-10-25 00:00:00.000

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