UN Committee on Economic, Social and Cultural Rights issues statement on debt

Ireland ratified the International Covenant on Economic, Social and Cultural Rights (ICESCR) in 1989. It protects a range of basic rights including housing, education, decent work, healthcare and social security. The UN Committee on Economic, Social and Cultural Rights, a body composed of 18 independent experts, is responsible for monitoring States’ records in implementing their obligations under the ICESCR. Ireland’s most recent examination by the Committee took place in June 2015.

From time to time, the Committee publishes guidance on how best States can meet their obligations under the ICESCR. In its most recent statement, issued in early July, the UN Committee provides guidance to States and other actors as to the scope of their obligations under the ICESCR in the context of ‘structural adjustment’ and ‘austerity programmes.’

In its statement the Committee expresses concern regarding the impact that austerity measures can have on the protection of economic, social and cultural rights. It identifies the right to just and favourable conditions of work (Art. 7), as well as the right to social security (Art. 9) and the right to an adequate standard of living which encompasses food, water and housing (Art. 11) as most ‘at risk’ in the context of austerity.

The Committee reaffirms the general principle that States are obliged to ‘progressively realise’ the rights protected by ICESCR ‘to the maximum of available resources.’ Therefore, when a State seeks financial assistance it should be cognisant of ‘any conditions attached to a loan that would imply an obligation to adopt retrogressive measures’ and ensure that ‘such conditions do not unreasonably reduce its ability to respect, protect and fulfil’ economic, social and cultural rights.  In particular, the Committee reminds States of their ‘duty’ to assess the potential impact that austerity measures may have on the protection of human rights and to ensure that ‘any negative impacts are reduced to the minimum inevitable.’ In order to avoid a violation of the ICESCR, the Committee has previously stated that austerity measures must be (i) temporary, (ii) necessary and proportionate, (iii) non-discriminatory, and (iv) must not affect the ‘minimum core content’ of a right.

However, it is not just ‘borrower’ States that possess human rights responsibilities when negotiating the terms of a loan. There are also duties incumbent upon ‘lenders’ to respect human rights guarantees. The Committee employs a broad definition of lender, which includes international organisations such as the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (World Bank) as well as regional organisations such as the European Union. According to the Committee, these organisations are ‘bound by any obligations incumbent upon them under general rules of international law’ and ‘are therefore bound to comply with human rights.’ Specifically, UN agencies, like the IMF and the World Bank, have obligations stemming from the principles of the UN Charter which include the realisation of human rights. As a result, international financial institutions and States acting as lenders ‘should refrain from adopting measures that result in human rights violations.’

There are two main points to be taken from the Committee’s statement: the first, is that States like Ireland which have implemented structural adjustment or austerity programmes cannot use fiscal constraints or challenging economic circumstances as excuses to justify violations of ICESCR rights. The duty to respect, protect and fulfil economic, social and cultural rights remains fully intact, even during a period of economic crisis; the second, is that international organisations and indeed other States which act as lenders have responsibilities to incorporate a concern for the protection of economic, social and cultural rights into the design of any loan agreements that they make available to states.

For further commentary on the statement click here.

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