Item 4: The realization of Economic, Social and Cultural Rights
The realization of Economic, Social and Cultural Rights, The International Economic Order and the Promotion of Human Rights
Madam Chairperson,
Pax Romana welcomes the report of Mr. Oloka-Onyango and Ms. Udagama on Globalization and its impact on the full enjoyment of human rights (E/CN.4/Sub.2/2000/13) and the working paper on the promotion of the realization of the right to drinking water supplies and sanitation (E/CN.4/Sub.2/2000/16, E/CN.4/Sub.2/1998/7). We also welcome the report of Mr. Bengoa on the establishment of a social forum as a place for proactive dialogue on economic, social and cultural rights.
In the early 1990s, the phenomenon of globalization, was hailed by the International Financial Institutions as the way for the South to develop and industrialize. However, the more recent development experience has forced the IMF, the WTO and the World Bank to demote structural adjustment programs such as privatization, from the certain prescription for success to mere prerequisites for development. Nevertheless, these stringent economic policies remain as harsh as ever, often posing serious challenges to the realization of human rights, and in particular the right to drinking water and thus the right to life.
In carrying out a serious dialogue with International Financial Institutions, Pax Romana met with the leadership of the International Monetary Fund and the Inter-American Development Bank, as well as regional and project staff of the IMF and the World Bank in October 1999. It became clear to us that the primary model of development advocated by these global financial institutions is not presently socially viable, or inclusive of local communities. In fact the report of Mr. Oloka-Onyango and Ms. Udagama acknowledges that institutions that currently make the rules that govern the processes of globalization as we know them require reform.
As is also pointed out in their report, "there is a need for a critical reconceptualization of the policies and instruments of international trade, investment and finance . In other words, there is a dire need for human rights." International Financial Institutions must acknowledge and respect their human rights obligations and formulate their development policies with the context of these rights.
Economic development always runs contrary to respect for human rights and often globalization can offer an opportunity for local empowerment. The experience of the Grameen Bank in Bangladesh shows that a micro finance program instituted to provide loans to women interested in self employment, raised living standards, alleviated poverty and in many instances improved womens' social standing. Such grass roots economic activity both serves the purpose of development, as well as honored and respected human rights and dignity. However community based, local programs still constitute only a small fraction of the World Bank's development programs.
It is unfortunate that the World Bank, the WTO, and the IMF, along with TNCs have perpetuated an environment where the human being is too often treated as an instrument of production and a means for profit rather than as the subject and purpose of economic activity.
The recent trend to privatize public works, as is often recommended by the International Financial Intuitions, is a disturbing one. Too often the privatization of public works puts the control over local industries into the hands of northern-based TNCs, thereby taking away the right of the local people to their own development.
The World Bank development aid has often contributed to the increased occurrence of drought and desertification and growing water crises in many parts of the world. The solution to this problem has most often been the privatization of water. However, water has often become too expensive for local use. As a result, not only is the local people's right to drinking water but their right to food security is also impinged. Farmers can no longer grow food within the context of privatized water simply because of the cost. Food security depends on water security, and maximizing food security in the context of water scarcity is most often incompatible with cost-efficient allocation.
Large projects and numerous structural adjustment policies create an environment in which it is nearly unavoidable that the few reap the benefits at the expense of the majority. Such was the case in Bolivia where the government, under the recommendation of the World Bank, privatized the water supply and Aguas del Tunari, an affiliate of the American based TNC, Bechtel, took over. As a result the price of water rose to 20 dollars per month and for many of the Bolivian families whose monthly income does not exceed 100 dollars, the increase was catastrophic. Many families were forced to make the difficult choice between safe drinking water and food. In the days following the privatization, riots broke out in Cochabamba. Six people were killed and many more were injured in the ensuing violence. The government did eventually give into the demands of the people, reaching an agreement that the Bechtel affiliate would leave the country and that the government would approve a reform of the national water law. Commenting on the crisis, Bolivian Bishop Juarez said that the "demands of the rural population must be listened to if you want lasting peace." Despite the final success, the privatization of water produced not only monetary hardship for the Bolivain populace but also impinged on their right to safe drinking water and denied them the right to development.
Privatization policies such as the privatization of water are compounded by the crippling debt of the developing states, making them more susceptible to accepting even the questionable development recommendations, while at the same time also leaving them particularly vulnerable to the deleterious effects of the failed projects.
Madam Chairperson, we would like to bring your attention to two alarming statistics; according to UNCTAD nearly 43 percent of the population of LDCs has no access to drinking water and more than a billion people in developing countries lack access to safe water. Also more than 2.4 billion lack adequate sanitation according to the UNDP 2000 report. At the same time transnational water companies wield immense power and some generate income in access of 80 billion dollars a year, four times the annual sales of Microsoft.
Madam Chairperson, Pax Romana would like to propose two recommendations for further action:
- Pax Romana calls on the Sub-Comission to respond to the recommendation of the experts, Mr. J. Oloka-Onyango and Ms. Deepika Udagame, and formulate guidelines that elaborate the basic human rights obligations of the main actors, in particular the World Bank, IMF, and WTO, within the context of globalization. We believe that such guidelines would foster a more local development. We also call upon the Sub-Commission to evaluate the relationships between the International Financial Institutions and human rights.
- Pax Romana would like to encourage Mr. Guisse to include in his working paper on the promotion of the realization of the right to drinking water supplies and sanitation services, the deleterious effects of privatization of drinking water, especially on women and the poor in developing countries.
Thank you for your attention.
