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Human Rights, Export Credits and Development Cooperation

Accountability for Bilateral Agencies

Barbara Linder

This book analyses to what extent the current human rights system allows affected individuals to claim accountability for human rights violations resulting from bilateral development and export credit agency supported undertakings. The author explores three legal pathways: host state responsibility, home state responsibility and corporate responsibility. The book concludes with recommendations on how to strengthen human rights accountability and improve access to justice for adversely affected individuals. It will be of great interest to those researching the intersection between human rights, development cooperation, and investment.
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Index

Barbara Linder

accountability

for human rights violations 50, 74–5113, 137–141, 185, 188, 194, 208–14, 218, 221, 238, 288–90

in development cooperation 1, 2, 5, 32–57

framework for public and private development actors 7

African Commission on Human and Peoples’ Rights 17, 38

SERAC and CESR v. Nigeria 123

Working Group of the Experts on Indigenous Populations and Communities 124

African Development Bank 18–19

African Human Rights Commission 122

African Union 229

Agenda 2030 for Sustainable Development 1, 55–7, 285, 289

Andritz (Austrian company) 71

anti-discrimination bill 17

Army of the Republika Srpsky (VRS) 209

Asia Pulp and Paper Project, Indonesia 79

Association of Southeast Asian Nations 229

Atatürk dam project, Turkey 64, 122

Austrian Development Agency (ADA) 19, 141, 150–52

Austrian Export Credit Agency see Oesterreichische Kontrollbank Aktiengesellschaft (OeKB)

Austrian Export Guarantees Act 160

bilateral development agencies 2–5, 7, 9, 276, 281, 284–6, 288

Baku-Tbilisi-Ceyhan Pipeline (BTC) 78–9

Bankovic' doctrine 193–5, 197

Belo Monte dam, Brazil 78

bilateral investment treaties 112–13, 285

Birecik dam project, Turkey 64–5, 122

Bujagali dam, Uganda 78

burden of proof 205

Business Social Compliance Initiative (BSCI) 256–7

Cernavoda Nuclear Power Plant, Romania 79

Chad Cameroon Oil pipeline 125

child labour 17, 82, 83

child trafficking 17

see also human trafficking

civil society

capacity-building of 45

civil society organisations 25, 55

clean environment, right to 123–4

Cold War 34–5, 43

collective bargaining, restrictions of 94, 261

Committee of Experts (CoE) 68–9, 74

common human rights accountability framework, creation of 288–90

communal property, right to 131, 133–4

complaints mechanisms, for human rights violations 68, 258, 271–2, 288

Compliance Advisor Ombudsman (CAO) 2, 95, 287

consultation, right to 131–3

corporate complicity

concept of 239–49

financial complicity 244–5

legal complicity 241, 245

‘non-legal’ complicity 245–6

corporate conduct

legally binding regulation of 222

measures to regulate and control 121, 276

corporate governance, OECD guidelines on 142, 158

corporate human rights violations 230, 242

state’s obligation to protect against 115, 121, 123

corporate responsibility

access to remedies 237–8

concept of 6, 222, 233, 281, 283

due diligence 7, 85, 91, 94, 106, 226, 232, 234, 253

grievance mechanisms 238–9

monitoring 237, 269–70

policy commitment on human rights 226, 234

role of, in the agencies 268–9

impact assessments 235

‘soft law’ 227

in official export credits 75–101

corporate social responsibility (CSR) 231, 257, 272

Council of Europe 59–61, 229

credit risk management framework, for financial institutions 97

crimes against humanity 223, 246

cultural heritage 68, 82, 88, 90, 93, 261

customary land rights 90

decolonisation movements 35

Deutsche Gesellschaft für internationale Zusammenarbeit (GIZ) GmbH 153–4, 155, 250–59

compliance and integrity unit 254

cooperation with the business sector 256–7

corporate value statement 251

Gender Strategy 251, 255

good practice 258

HIV/AIDS workplace programme 252

occupational health and safety management measures 252

Orientation on Human Rights 251, 254

risk management system 254

Sustainability Report 251

developing countries

domestic responsibilities of 42

EU financing for 1

public and private financing for 2

development agencies 105–6

Austrian Development Agency (ADA) 150–52

as hybrid entities 232–9

Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ) 153–4, 250–59

legal relations with the home states 168–75

Swedish International Development Cooperation Agency (SIDA) 148–50

development community 13, 14, 33, 35, 49, 51

development compacts 41

development cooperation 4

accountability gap in 5, 281, 284

human rights accountability in 1, 32–57, 233

human rights compliance in 3, 5, 9, 135, 276, 288

monitoring of 284–6

power relations in 51

public and private financing for 2

development, right to 41–2, 223

domestic violence 17

due diligence

in business conduct 7, 83, 97

environmental and social 92

by host state 106, 134

Inter-American Court’s standard of 115

principle of 9, 114, 136, 209, 276

notion of 46

economic development, human rights effects of 2, 8, 18, 24, 33, 43, 107–8, 136, 277, 287

Environmental and Social Framework (ESF) 87

safeguards set out in 89

environmental and social impact assessment (ESIA) 83, 94, 129

Environmental and Social Management System (ESMS) 88, 92

Environmental and Social Standard (ESS) 88

Assessment of Environmental and Social Risks and Impacts 89

Information Disclosure and Stakeholder Engagement 88

Environmental Impact Assessment (EIA) 67, 73, 107, 129–30, 133

Equator Principles 97, 229

Erdogan, President 61

Ethiopia

anti-discrimination bill 17

Anti-Terrorism Proclamation 16–17

aspects of development in 13

Bureaus of Finance and Economic Development (BOFEDs) 21

Charities and Societies Proclamation 16

civil society organisations 25

civil war in 15

donors’ Development Assistance Group (DAG) 24

donor-supported programmes in 22

economic development plan 18

economic progress 14

Ethiopian Electric Power Corporation (EEPCO) 18

Ethiopian Peoples’ Revolutionary Democratic Front (EPRDF) 15–16, 22, 24–5

fight against terrorism 14

Gibe III Hydropower dam 17–18

Human Development Index 14

Human Rights Commission 15

human rights situation in 14, 17

kebele administration 23

Mass Media and Freedom of Information Proclamation 16

Ministry of Finance and Economic Development (MOFED) 21

national Ombudsman 15

political commitment to federalism and democracy 14

Protection of Basic Service Programme see Protection of Basic Service Programme (PBS), Ethiopia

public financial management 20

quantitative development indicators 14

UN Development Assistance Framework for 14

‘villagisation’ programme 18, 26, 28–9

Woreda Finance and Economic Development Offices (WOFEDs) 21

Equator Principles 229

Euler Hermes Kreditversicherungs-AG (Euler Hermes) 67, 141, 163–5, 173, 219

European Commission 99, 144

European Convention on Human Rights (ECHR) 59, 61, 143–4, 146, 169–70, 193, 208, 215, 251

European Court of Human Rights (ECtHR) 277–8

Akkus v. Turkey 122

Al-Saadoon and Mufdhi v. United Kingdom 195

Al-Skeini and Others v. United Kingdom 196–9

Bankovic' and others v. Belgium 193–4

case law of 137, 143, 147

Catan and others v. Moldova and Russia 200

complaints against Turkey 60

criteria for hybrid entities 232

Fadeyeva v. Russia 117

Holy Monasteries v. Greece 143

Ilascu and Others v. Moldova and Russia 199, 206, 214, 219

Ledyayeva, Dobrokhotova, Zolotareva and Romashina v. Russia 118–19

López Ostra v. Spain 117

Medvedyev v. France 195

Öneryildiz v. Turkey 120

Osman v. United Kingdom 115

Radio France and Others v. France 146

RENFE v. Spain 144–5

standard of due diligence 115

on state duty to protect against corporate human rights violations 116–17

Steel and Morris v. United Kingdom 121

Taskin v. Turkey 119–20

Vilnes and others v. Norway 169, 175

European Investment Bank 18

European Parliament 98

European Social Charter 59

European Union (EU)

aquis communautaire 59

financing for developing countries 1

Eurostat 2

export credit agencies (ECAs) 2–3, 67, 103, 241, 272, 288

accountability for human rights violations 8–9, 74–5

as hybrid entities 232–9

of OECD and non-OECD countries 75

applications for export credit agencies

environmental and social impact assessment 83, 86

high-risk projects, categories of 77, 82–3, 270, 280

screening and risk classification of 82

Committee of Experts (CoE) 68–9, 74

competitiveness on the international market 8, 75

Environmental Failure Notice 70

Equator Principles 97, 229

Final Assessment Meeting (FAM) document 68

German export credit system 163–5

human rights policies 98, 233

legal relations with the home states 168–75

monitoring of 284–6

Recommendation on Common Approaches on Environment and Officially Supported Export Credits 80–86

Resettlement Action Plan 68

extraterritorial human rights obligations 227, 277

breaches of the ICCPR 278

enforceability of 277

exercise of effective control 189–90, 192–3, 195, 200–1, 206–8, 278–9

under international human rights law 175–214

under ILC Draft Articles 214–18

dimension of the obligation to protect 177

jurisdiction of 188–208

liability 137, 208–14, 215–18

fair trial, right to 17, 60, 64, 65, 78, 110, 128, 144

financial intermediaries (FI) 88

financial transparency, implementation of 25, 158

food insecurity 17

food, right to 23, 176, 186

forced evictions 17–18, 26, 31–2, 64, 73, 88, 108, 112, 124, 134, 180, 240

forced labour 24, 82–3, 93, 240, 261

foreign direct investment (FDI) 13, 58

foreign investment undertakings 9–10, 284–5, 289

Fourth World Conference on Women (1995) 40

freedom of expression 16–17, 30, 48, 60, 61, 78, 94

free, prior and informed consent (FPIC) 89, 90, 93, 95

free trade agreements 113

free, prior and informed consent (FPIC) 89, 93, 95

French law on the Duty of Vigilance (2017) 183

gender equality 53, 55, 251–2, 255–6

Genocide Convention 209

German Development Agency (GIZ) 141

German export credit system 163–5

German Foreign Trade Association of German Retail Trade (AVE) 256

German Global Compact network 257

German KfW Bank 19

Gezi park protests (2012), Turkey 60

Gibe III Hydropower dam (Ethiopia) 17–18, 125

forced evictions of indigenous groups 18

Global Compact Network 7, 221, 251–3, 257–8, 260, 268, 272–3, 283

Global Reporting Initiative

good governance, idea of 44–5, 255, 266–7, 271

governmental entities, classification of 232

grassroots organisation 34, 136

grievance mechanisms, against human rights violations 70, 86, 88, 91, 96–7, 101, 226, 237–8, 264, 282, 287

gross national products (GNP) 37, 41

Gülen, Fethullah 61

Gunns Pulp Mill, Tasmania 79

Hasankeyf town, Turkey 66, 73

health, right to 78, 123–4, 189, 203

home state, responsibility for human rights 137

see also extraterritorial human rights obligations

home state jurisdiction 278

International Law Commission’s Draft Articles on 138–9

legal implications of the agencies’ legal relations with the home state168–75

liability for extraterritorial breaches 137

requirements for establishing 279

host state, responsibility for human rights

case law, review of 113–34

exercise of due diligence 106

obligation to protect 104, 106, 113–6, 121, 123–4, 131, 177, 183–5, 187, 204, 209, 212, 277–8

policy coherence between different departments 112

third parties 103

Human Development Index 14

human rights-based approach to 43–4, 46

human rights

in bilateral investment treaties 113

challenges faced by donors 8

human rights impact assessments 212, 235, 237, 245, 253–4, 261, 278, 285, 289

Human Rights Watch 16, 18, 22–4, 28

human trafficking 83

Ilisu Hydropower Dam Project (Turkey) 8, 18, 58–75, 108, 271

compliance with World Bank Operational Policies 67, 69

construction of 66–7, 72

Environmental Failure Notice 70

Environmental Impact Assessment 73

environmental implications of 67

export credit agencies (ECAs) 67–70

foreign investors in 67

Hasankeyf town 73

human rights violations 70, 73

IFC Performance Standards 67

jobs offered to project affected people 72

resettlement areas 72

resettlement plan 70

social, cultural and ecological impacts of 69, 73

terms of reference (TORs)

failure to comply with 74

requirements of 68–70

income restoration plan 68

independent responsibility, principle of 216

indigenous community 87

Anuak people 28

communal property, right to 134

customary land rights 90

Indigenous Peoples Plans 90

Inter-American Commission 125

Inter-American Court of Human Rights 122

Claude Reyes et al. v. Chile 126–8

Kichwa Indigenous People of Sarayaku v. Ecuador 129–33

Manfredo Velásquez case 115

Saramaka People v. Suriname 128

standard of due diligence 115

Velásquez-Rodríguez v. Honduras 114–15

International Bill of Human Rights 226

International Code of Conduct for Private Security Service Providers 254

International Commission of Jurists (ICJ) 245–7, 282

International Conference on Human Rights (1968) 36

international cooperation and assistance, notion of 202, 207

International Court of Justice (ICJ) 137, 205

International Finance Corporation (IFC) 3, 77, 79, 91, 271

Compliance Advisor Ombudsman (CAO) 2, 95

grievance mechanisms 96

Performance Standards 67, 80, 91–3, 97, 101, 228, 287

project level grievance mechanisms 96

risk classification 92

Stakeholder Engagement Plans 95

Sustainability Framework 94

International Financial Institutions (IFIs) 79, 238, 244–5, 282

international human rights law 103, 174–5, 239, 246, 277, 286

extraterritorial obligations and jurisdiction 139

extraterritorial state responsibilities under 175–214

International Labour Organization (ILO)

core labour standards 256, 258

Declaration on Fundamental Principles and Rights at Work 226

MNE Declaration (1977) 228

International Law Commission (ILC) 168

Draft Articles on the Responsibility of States for Internationally Wrongful Acts 138–9, 171, 214

International Legally Binding Instrument on Transnational Corporations and other Business Enterprises 230

International Monetary Fund (IMF) 77

Islamic State (ISIS) 63

Jaitapur Nuclear Power Plant, India 79

judicial protection, obligation to ensure 128, 131, 134, 136

justice, for adversely affected persons 286–8

land grabbing 180

Land Management and Administration Project (LAMP), Cambodia 179

legal empowerment

elements of 50

versus rule of law 50

life-threatening occupational health and safety situations 82

Lisbon Treaty 100

Maastricht Principles on Extraterritorial Obligations of States 181, 183, 205, 210, 212–14, 279

Millennium Development Goals (MDGs) 53, 56

Human Rights Approach to 54

Millennium Summit (2000) 40

‘naming and shaming’ campaigns 222, 242

national action plans, development of 229

New International Economic Order (NIEO) 35

NIEO Declaration (1974) 37

non-discrimination, principles of 47–8, 54, 88, 223

non-governmental organizations (NGOs) 17, 43, 45, 136, 143, 146, 148, 279

non-realisation of rights, causes of 50

North–South relations 35, 42

nuclear power stations 82

Oesterreichische Kontrollbank Aktiengesellschaft (OeKB) 141–2, 160–63, 165, 173

official development assistance (ODA) 1, 3, 180

official export creit agencies 3, 8, 75, 163

human rights concerns in 75–101

Ogoni protests 123

open-ended inter-governmental working group 230

Organisation for Economic Co-operation and Development (OECD) 7

Common Approaches 80–81, 98, 100, 261, 265, 267

Development Assistance Committee (DAC) 3, 168

Export Credit Group (ECG) 168, 233

Guidelines for Multinational Enterprises 7, 80–81, 221, 227

Guidelines on Corporate Governance 142

Organisation of American States 229

ownership by the state 142

Paris Principles 17

participation and inclusion, principles of 48

participation, right to 48, 78, 131–2

Post-2015 Agenda 54

poverty alleviation 50

power relations

through legal empowerment 46

transformation of 53

PriceWaterhouseCoopers (PWC) 141, 163–5

private lending 245

property, right to 65, 189

obligation to guarantee 134

restrictions of 128

Protection of Basic Service Programme (PBS), Ethiopia 8, 13–32

Action Plan by the Bank management on 28

budget support for 21

Commune Development Programme (CDP) 26

contribution to ‘villagisation’ programme 26

diversion and unequal distribution of services 31

financing of 19

forced eviction of indigenous community 26

human rights violations and 23, 31

idea of 21

implementation of 15

Inspection Panel’s findings on 26–8

objectives of 20

services co-funded by 25

UK DFID’s support in 279, 283

public and private financial services providers 88

public law entities 144

publicly-listed companies 143

remediation, for human rights violations 5, 110–12, 136, 226, 238, 244, 277, 286–7

reparation, for human rights violations 110–12, 223, 225

rights-based development 36

Rio + 20 Conference on Sustainable Development 1, 40

Outcome Document of 54

Rio Madeira dam, Brazil 78

risk management 81, 97, 158, 254, 258, 259

Rolnik, Raquel 91

Ruggie, John 76, 80, 84–5, 224, 228, 231, 233, 242–3

rule of law, principle of 15, 44, 49, 250

versus legal empowerment 50

Rwanda’s genocide (1994) 33

Second World Conference on Human Rights, 1993 (Vienna) see Vienna World Conference on Human Rights (1993)

self-determination, right to 35, 37–8

Sengupta, Arjun 40

shared responsibility to protect, concept of 231

social impacts 82–3, 87–8, 129

assessments of 80, 83, 91–2, 97, 101, 129, 132, 268, 269, 272

of business activity 94

definition of 81

social justice 35

social labelling 182

social security 59, 178

South-East Anatolian (GAP) project (Turkey)

effect on women 66

economic and social problems 66

forced evictions due to 64

human rights violations 64

protests against 64

sovereign equality, principle of 35

standard of living 36, 64, 78, 189

state-based human rights system 281

state-owned enterprises (SOEs) 7, 104, 139, 141–2, 145, 147, 158, 184, 221, 243–4, 249

state responsibility, concept of 5–6, 215

suicide bombings 60, 63

Supreme Administrative Court 119

sustainable development 1, 53, 57, 64, 88, 243, 251, 290

Sustainability Reporting Guidelines 228

Swedish Export Credit Agency (EKN) 260–66

access to remedy 264

confidentiality legislation 264

Exportkreditnämnden 154–60

findings and monitoring of the mitigation measures 263–4

human and labour rights standards 265

human rights

due diligence 261–4

efforts to comply with its corporate responsibility 264–6

policy commitment 260

reporting and communication of violation of 264

risk assessments 261

social and environmental impacts on 262

policy on corporate responsibility 261

Svensk Exportkredit 154–60

Swedish Export Credits Guarantee Board (EKN) 141

Swedish Export Credit Corporation (SEK) 141, 154, 157, 159

Swedish International Development Cooperation Agency (SIDA) 141, 148–50

Syrian crisis 63–4

Tehri dam, India 78

Three Gorges Dam, China 78, 112

trade unions 61, 223, 247

transnational corporate abuses 205

transnational corporate human rights violations 184

transnational corporations 178, 224, 290

human rights obligations for 230

Treaty on Business and Human Rights 227, 288

Turkey

accession process into the EU 59

breakdown of Kurdish peace process 63

conflict with Kurdish minority 58, 62–3

foreign direct investment (FDI) regulations 58

Gezi park protests (2012) 60

human rights violations 59, 64, 70

Ilisu Hydropower Dam Project see Ilisu Hydropower Dam Project (Turkey)

institutional structures of 59

Justice and Development Party (AKP) 60

Kurdistan’s Workers Party (PKK) 62–3

as middle-income country 58

military coup in 61

military operations against

Islamic State (ISIS) 63

Kurdish minority 62–3

People’s Democracy Party (HDP) 60

prosecution of public authorities 64

ratification of international human rights treaties 59

South-East Anatolian (GAP) project 64

State Council 73

United Kingdom (UK)

Department for International Development (DIFID) 28

contribution to human rights violations 279

support in Ethiopia’s PBS programme 219, 279, 283

Export Finance (ECGD) 77

provision of financial and military aid 218

United Nations (UN)

Charter of 178, 181

Commission on Human Rights 38

Committee on Economic, Social and Cultural Rights (CESCR) 17, 42, 44, 73, 108, 112, 171, 174, 178, 180–81, 186, 279, 280

Committee on the Elimination of Racial Discrimination (CERD) 14, 59, 108, 177

Common Understanding on a Human Rights-Based Approach to Development Cooperation 46

Conference on Trade and Development (UNCTAD) 142

Convention against Torture (CAT) 14

Convention on the Elimination of All Forms of Racial Discrimination (CERD) 14, 59, 108, 177

Convention on the Elimination of Discrimination against Women (CEDAW) 14, 59

Convention on the Rights of People with Disabilities (CRPD) 14, 59

Convention on the Rights of the Child (CRC) 14, 186

Declaration on the Right to Development 39

Development Assistance Framework 14, 34

Development Programme (UNDP) 43, 45

Draft Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human Rights 222–3, 226

Global Compact 7, 221, 251–2, 257

Guiding Principles on Business and Human Rights 7, 56, 80, 85, 91, 140, 182–3, 211, 221, 225, 236, 238, 240, 243, 251, 257, 281, 288

Human Development Report (2000) 45

Human Rights Commission 15, 17, 122, 223, 224

Human Rights Committee (HRC) 177, 278

Munaf v. Romania 192–3, 206

Human Rights Council (HRC) 42, 223, 225

International Children’s Emergency Fund (UNICEF) 43

International Covenant on Civil and Political Rights (ICCPR) 14, 59, 189, 193, 202, 204, 278

International Covenant on Economic, Social and Cultural Rights (ICESCR) 14, 36, 59, 202, 203–5

Office of the High Commissioner of Human Rights (OHCHR) 54, 56–7

Special Rapporteur on the Right to Adequate Housing 91, 176, 284

Special Representative to the Secretary-General (SRSG) 224

Sustainable Development Goals (SDGs)

Agenda 20301, 55

Reform Program 45

Special Rapporteur on the Right to Food 176

Special Representative on Business and Human Rights 106

Sub-Commission on the Promotion and Protection of Human Rights 222

treaty bodies 136

see also UN treaty bodies

Universal Declaration of Human Rights (UDHR) 36, 46, 55, 251

Universal Periodic Review (UPR) 4, 284

Working Group on Business and Human Rights 229, 243, 290

Uruguayan refugee 191

Uvin, Peter 33, 51

Vienna World Conference on Human Rights (1993) 39, 44

‘villagisation’ programme (Ethiopia) 18, 19, 26, 28–9

war crimes 223

wholly-owned subsidiaries 177

World Bank 3, 18–19, 77, 89, 242, 287

borrowing member countries 87

Health and Safety Guidelines 97

human rights

impact assessments 86

Inspection Panel 2, 26–8, 287

Operational Policies (OPs) 26, 67, 80, 87, 101, 269, 287

self-monitoring of the borrower 91

World Food Summit (1996) 40

World Summit for Social Development 40

Zenawi, Meles 15