Export Credit Agencies and Human Rights

How do they take human rights into account? For the most part, they don’t Four general models

– Conflating social with human rights – Social +– Political risk assessment– Actual human rights screening

Model One: Conflating “Social” with human rights

Common Approaches – environmental and social safeguards (WB and IFC)

Human rights Few social “add-ons”– involuntary resettlement, (OD 4.30)– project-associated health impacts (IFC guidelines)– cultural property (OPN 11.30)– indigenous rights. (OD 4.20)

Approach of most ECAs Remainder left to host country legislation

Model Two: Social +

Reference in preambles (JBIC, EDC) Reference to OECD guidelines (Ducroire,

Atradius) Social + (ECGD) Compliance mechanism (JBIC, EDC, OPIC) Belgian Model (under discussion) Ex-Im – Office of Human Rights Assessment

(Failed)

Model Three: Political Risk Assessment

EDC assesses PRA at two levels:– Country level risk

Socio-economic equality Government action on corruption, regime legitimacy and stability Existence of democratic institutions Risks of political violence (existing and potential) Risks of expropriation

– Project level risk Projects relationship with local population Costs and benefits to the country and local populatoni

Total risk country+project = risk rating (financial) Reverse flow analysis (reputational)

Model Four: Actual Human Rights Screening

ECGD take account of social, environmental and HR Uses a case impact analysis

– Company questionnaire– See whether a country has ratified various conventions– Expects companies to comply with these conventions– Categorical prohibition: forced and child labour

Very superficial; other models are more advanced– Human Rights Impact Assessment (Rights & Democracy) – Conflict Risk Impact Assessment (International Alert)– Human Rights Compliance Assessment (Danish Institute)

Where to next?

Conflation of the issues isn’t working Social+ too ad hoc – more formal advances (regional,

international) PRA limited Improve screening - HRIA models

International context – who sets the pace More conditionalities? Better policies, better projects?