RES/37/11 The effects of foreign debt and other related international financial obligations of States on the full enjoyment of all human rights, particularly economic, social and cultural rights

 GE.18-05519(E)



Human Rights Council Thirty-seventh session

26 February–23 March 2018

Agenda item 3

Resolution adopted by the Human Rights Council on 22 March 2018

37/11. The effects of foreign debt and other related international financial

obligations of States on the full enjoyment of all human rights,

particularly economic, social and cultural rights

The Human Rights Council,

Guided by the Charter of the United Nations, the Universal Declaration of Human

Rights, the Vienna Declaration and Programme of Action and other relevant international

human rights instruments,

Reaffirming all resolutions and decisions adopted by the Commission on Human

Rights and the Human Rights Council on the effects of structural adjustment and economic

reform policies and foreign debt on the full enjoyment of all human rights, particularly

economic, social and cultural rights, the latest being Council resolution 34/3 of 23 March

2017,

Reaffirming also its resolution 34/11 of 23 March 2017,

Reaffirming further its resolution S-10/1 of 23 February 2009 on the impact of the

global economic and financial crises on the universal realization and effective enjoyment of

human rights,

Bearing in mind paragraph 6 of General Assembly resolution 60/251 of 15 March

2006,

Stressing that one of the purposes of the United Nations is to achieve international

cooperation in solving international problems of an economic, social, cultural or

humanitarian character,

Emphasizing that the World Conference on Human Rights agreed to call upon the

international community to make all efforts to help to alleviate the external debt burden of

developing countries in order to supplement the efforts of the Governments of such

countries to attain the full realization of the economic, social and cultural rights of their

people,

Stressing the primacy of the means of implementation for the 2030 Agenda for

Sustainable Development, and in this regard underlining the fundamental principles of

international cooperation, which are pivotal for the practical achievement of the Sustainable

Development Goals,

Stressing also the determination expressed in the 2030 Agenda to assist developing

countries in attaining long-term debt sustainability through coordinated policies aimed at

fostering debt financing, debt relief and debt restructuring, as appropriate, and to address

the external debt of highly indebted poor countries to reduce debt distress,

Recognizing the commitments made in the Addis Ababa Action Agenda, and noting

that, despite international debt relief efforts, many countries remain vulnerable to debt crisis

and some are in the midst of a crisis, including a number of least developed countries and

small island developing States and some developed countries,

Mindful of the role, mandate and activities of other United Nations agencies, funds

and programmes in dealing with the issues of foreign debt and international financial

obligations,

Acknowledging that there is greater acceptance that the increasing debt burden faced

by the most indebted developing countries, in particular the least developed countries, is

unsustainable and constitutes one of the principal obstacles to achieving progress in people-

centred sustainable development and poverty eradication and that, for many developing and

some developed countries, excessive debt servicing has severely constrained their capacity

to promote social development and provide basic services to create the conditions for the

realization of economic, social and cultural rights,

Expressing its concern that, despite repeated rescheduling of debt, developing

countries continue to pay out more each year than the actual amount they receive in official

development assistance,

Recalling the Basic Principles on Sovereign Debt Restructuring Processes, which

emphasize that sovereign debt restructuring workouts should be completed in a timely and

efficient manner and lead to a stable debt situation in the debtor State, minimizing

economic and social costs, warranting the stability of the international financial system and

respecting human rights,

Recognizing the sovereign right of any State to restructure its sovereign debt, which

should not be frustrated or impeded by any measure emanating from another State,

Recognizing also that illicit financial flows, including tax evasion by high net-worth

individuals, commercial tax evasion through trade misinvoicing and tax avoidance by

transnational corporations, contribute to the build-up of unsustainable debt, as Governments

lacking domestic revenue may resort to external borrowing,

Emphasizing that inequality continues to increase, and that it often contributes to

social exclusion and the marginalization of certain groups and individuals,

Recognizing the severe human rights impact of the recent financial crisis and that

human rights have not always being taken into account in the development of policy

responses to the crisis,

Affirming that debt burden further complicates the numerous problems facing

developing countries, contributes to extreme poverty and is an obstacle to sustainable

human development, and is thus a serious impediment to the realization of all human rights,

1. Takes note with appreciation of the report of the Independent Expert on the

effects of foreign debt and other related international financial obligations of States on the

full enjoyment of all human rights, particularly economic, social and cultural rights,1 and

welcomes the work and contributions of the Independent Expert;

1 A/HRC/37/54.

2. Also takes note with appreciation of the mapping of human rights impact

assessment tools undertaken by the Independent Expert,2 and requests him to continue to

develop guiding principles for assessing the human rights impact of economic reform

policies, in consultation with States and all other relevant stakeholders, and to submit the

guiding principles to the Human Rights Council at its fortieth session;

3. Recalls that every State has the primary responsibility to promote the

economic, social and cultural development of its people and, to that end, has the right and

responsibility to choose its means and goals of development and should not be subject to

external specific prescriptions for economic policy;

4. Recognizes that more than two thirds of countries across the world are

contracting their public purses and limiting, rather than expanding, their fiscal space;

5. Reaffirms the fact that responses to the global economic and financial crises

should not result in a decrease in debt relief, nor should they be used as an excuse to stop

debt relief measures, as that would have negative implications for the enjoyment of human

rights in affected countries;

6. Recognizes that debt relief can play a key role in liberating resources that

should be directed towards activities consistent with attaining sustainable growth and

development, including poverty reduction and the achievement of development goals,

including those set out in the 2030 Agenda for Sustainable Development, and therefore that

debt relief measures, where appropriate, should be pursued vigorously and expeditiously,

ensuring that they do not replace alternative sources of financing and that they are

accompanied by an increase in official development assistance;

7. Also recognizes that not all efforts to reduce public spending are harmful to

human rights, and calls for consistent public spending policies that ensure full compliance

with the human rights obligations of States and for those policies to take into account the

fact that the human rights of the poorest and most vulnerable must be respected, protected

and fulfilled;

8. Recalls once again the call on industrialized countries to implement the

enhanced programme of debt relief without further delay and to agree to cancel all the

official bilateral debt of those countries covered by the programme in return for their

making demonstrable commitments to poverty reduction;

9. Urges the international community, including the United Nations system, the

Bretton Woods institutions and the private sector, to take appropriate measures and actions

for the implementation of the pledges, commitments, agreements and decisions of major

United Nations conferences and summits, including the Millennium Summit, the World

Conference on Human Rights, the World Conference against Racism, Racial

Discrimination, Xenophobia and Related Intolerance, the World Conference on Sustainable

Development and the International Conference on Financing for Development, in particular

those relating to the question of the external debt problem of developing countries, in

particular of heavily indebted poor countries, least developed countries and countries with

economies in transition;

10. Stresses that the economic reform programmes arising from foreign debt

should maximize the policy space of developing countries in pursuing their national

development efforts, taking into account the views of relevant stakeholders in a way that

ensures balanced development conducive to the overall realization of all human rights;

11. Also stresses that the economic programmes arising from foreign debt relief

and cancellation must not reproduce past structural adjustment policies that have not

worked, such as dogmatic demands for privatization and reduced public services;

12 Further stresses that fiscal consolidation and economic reform measures

should never violate the minimum core content of economic, social and cultural rights, nor

be directly or indirectly discriminatory or result in the adoption of impermissible

2 See A/HRC/37/54.

retrogressive measures in terms of the enjoyment or implementation of economic, social

and cultural rights;

13. Calls upon States, the International Monetary Fund and the World Bank to

continue to cooperate closely to ensure that additional resources made available through the

Heavily Indebted Poor Countries Initiative, the Global Fund to Fight AIDS, Tuberculosis

and Malaria and other new initiatives are absorbed in the recipient countries without

affecting ongoing programmes;

14. Urges States, international financial institutions and the private sector to take

urgent measures to alleviate the debt problem of those developing countries particularly

affected by HIV/AIDS so that more financial resources may be released and used for health

care, research and treatment of the population in the affected countries;

15. Reiterates its view that, in order to find a durable solution to the debt

problem and for the consideration of any new debt resolution mechanism, there is a need

for a broad political dialogue between creditor and debtor countries and the multilateral

financial institutions, within the United Nations system, based on the principle of shared

interests and responsibilities;

16. Encourages States to continue to consider improved approaches to

restructuring sovereign debt, taking into account the Basic Principles on Sovereign Debt

Restructuring Processes and the work carried out by international financial institutions, in

accordance with their respective mandates;

17. Reiterates its request to the United Nations High Commissioner for Human

Rights to pay more attention to the problem of the debt burden of developing countries, in

particular of least developed countries, and especially the social impact of the measures

arising from foreign debt;

18. Takes note of the work of the Advisory Committee on the activities of vulture

funds and their impact on human rights, and requests the Committee to submit the final

report thereon to the Human Rights Council at its forty-first session;

19. Requests the Independent Expert to continue to explore the interlinkages with

trade and other issues, including HIV/AIDS, when examining the impact of structural

adjustment and foreign debt, and also to contribute, as appropriate, to the process entrusted

with the follow-up to the International Conference on Financing for Development with a

view to bringing to its attention the issue of the effects of structural adjustment and foreign

debt on the enjoyment of human rights, particularly economic, social and cultural rights;

20. Encourages the Independent Expert to continue to cooperate, in accordance

with his mandate, with the Committee on Economic, Social and Cultural Rights, special

rapporteurs, independent experts and members of the expert working groups of the Human

Rights Council and its Advisory Committee on issues relating to economic, social and

cultural rights and the right to development in his work;

21. Requests the Independent Expert to report regularly to the Human Rights

Council and the General Assembly in accordance with their respective programmes of

work;

22. Requests the Secretary-General to provide the Independent Expert with all

necessary assistance, in particular all the staff and resources required to carry out his

functions;

23. Urges Governments, international organizations, international financial

institutions, non-governmental organizations and the private sector to cooperate fully with

the Independent Expert in the discharge of the mandate;

24. Requests the Independent Expert to submit a report on the implementation of

the present resolution to the Human Rights Council at its fortieth session;

25. Decides to continue its consideration of this matter at its fortieth session

under the same agenda item.

53rd meeting

22 March 2018

[Adopted by a recorded vote of 27 to 16, with 4 abstentions. The voting was as follows:

In favour:

Angola, Burundi, Chile, China, Côte d’Ivoire, Cuba, Democratic Republic of

the Congo, Ecuador, Egypt, Ethiopia, Iraq, Kenya, Kyrgyzstan, Mongolia,

Nepal, Nigeria, Pakistan, Philippines, Qatar, Rwanda, Saudi Arabia, Senegal,

South Africa, Togo, Tunisia, United Arab Emirates, Venezuela (Bolivarian

Republic of)

Against:

Australia, Belgium, Brazil, Croatia, Georgia, Germany, Hungary, Japan,

Republic of Korea, Slovakia, Slovenia, Spain, Switzerland, Ukraine, United

Kingdom of Great Britain and Northern Ireland, United States of America

Abstaining:

Afghanistan, Mexico, Panama, Peru]