Finance

Development Finance Institutions Must Include ‘Right of Recourse’ in Investments |

Development Finance Institutions Must Include 'Right of Recourse' in Investments |

the Remedy in development finance The report gives advice to development finance institutions to ensure that the projects they fund do not harm people and that an effective remedy is readily available to any potential victim.

While development finance institutions are not and cannot be accountable for all results, Michelle Bachelet Recount the launch event in Washington DC that “in their own processes, they are uniquely positioned to assess risk, exercise due diligence and plan for adverse outcomes”.

And although clients are responsible for the implementation of projects and States are the main authors and recipients of international human rights law, she reminded that “all are obliged to respect human rights …should contribute in accordance with their own responsibilities and…have a role to play. in strengthening the ecosystem of remedies”.

Put simply: if you help to harm, you should help to fix“, she clarified.

Remedy ecosystem

Although day-to-day development work does not usually involve human rights abuses, it sometimes does, including cases of forced evictions, child labor and gender-based violence.

“Attacks against environmental and human rights defenders are on the rise. Bad policies can erode economic and social rights. New threats, such as the risks linked to digital technologies, are emerging,” attested the UN human rights chief.

As development finance institutions and major multilateral development banks have consistently set new global standards for sustainability and accountability, Ms. Bachelet told participants that “their leadership and the strength of their example are needed now, more than ever, on the question of the remedy” for “real results in people’s lives”.

“Deeply personal” connection

Addressing economic and social inequalities is “deeply personal” to the High Commissioner.

“In 1973, when I was 22, a military dictatorship took over my home country, Chile. My father was an army general of real integrity: he was detained and tortured almost daily, for months. He died of his torture,” Ms. Bachelet told the assembly.

“My mother and I were also detained for several weeks, and many of our friends were abducted, disappeared, killed. In 1975 I was forced to leave my country and became a refugee”.

The High Commissioner went on to explain that at 28, she was finally able to return to Chile, where she joined various organizations working to restore democracy.

“Repair Power”

“I am committed to the reconciliation process, to the search for facts and truth, to expanding spaces for dialogue so that injustices can be recognized and addressed,” she said.

And as a doctor, Ms. Bachelette worked with an organization that supported the social needs of children whose parents fell victim to the dictatorship.

“This experience demonstrated not only the intergenerational impact of human rights violations, but also the power of reparations, which helped survivors, families and communities to heal and be part of society at large. , with dignity,” she explained.

UN Women/Narendra Shrestha

Rural women make up a large part of the agricultural labor force in Nepal.

Proactive remedies would help

The report confirms that more proactive and robust redress approaches would help development finance institutions avoid causing or contributing to human rights abusesminimize their reputational risks and help them meet changing public expectations and standards for responsible business practices.

Remedy in development finance also encourages the consistent and effective implementation of remedies, noting that reparations can include restitution, compensation and guarantees of non-repetition – often most effective in combination.

Based on UN Guiding Principles on Business and Human Rightsthe report offers a framework to help development finance institutions assess how and when they should contribute to the remedy.