The World Bank takes on the Human Rights agenda

A new Nordic fund will link the international human rights standards with the biggest economic engine for the developing countries - the World Bank.

The fund will enable the Bank will to respond positively to a client country's request for assistance to improve human rights in the country and establish the rule of law, says Ulrika Sundberg of the Ministry for Foreign Affairs.

Q: Why hasn't the World Bank integrated human rights in its work long before this?
A: The reason is that the Bank's articles of agreement explicitly prohibit intervention in a country’s internal affairs or in its political system. The UN Charter contains a similar provision, Article 2:7. The World Bank does, however, have the right to intervene in economic and financial national policies.

Don't World Bank economists agree that respect for human rights promotes a country's development?
Yes, I believe they do, but they may not be entirely convinced…  Generally, it can be said that there is a lack of practical evidence to show that human rights considerations constitute an added value to the economic development process. The arguments are there, of course, but they are mostly value-based.

In order to produce some tangible examples, the new Nordic fund will initially allow the Bank builds up its analytical capacity on human rights. Plus, the fund will make it possible for the Bank to launch some pilot projects to test the interrelationship between human rights, democratic processes and sustained poverty reduction.

Why do they need to be convinced, do you think?
I think they envisage a debate on conditionality, i e for decisions on the granting of loans or aid to be subject to tangible results in the area of human rights.

It's an issue where client- and donor countries have yet to find a consensus. One difficulty is establishing the criteria for what constitutes a result-oriented project. This is particularly difficult when it comes to the poorest countries, which may not have any other options for mobilizing resources and thus depend entirely on the Bank for cash flow.

A majority of the votes of the Board of Directors is required for linking loans or grants to a human rights performance. And the time is not ripe for that. The overarching goal of the Bank's projects, namely, poverty reduction, is of course of prime importance.

Will the new Nordic justice and human rights fund be able to make a difference?
Yes, in the long term. The fund will allow the Bank to start studying how the issue can be handled in a serious manner. In practice, the fund will enable the Bank will to respond positively to a client country's request for assistance, that wants to improve human rights and establish the rule of law.

The Nordic fund is the result of a process lead by the Nordic-Baltic Office of the Bank over some years. The Nordic countries have pursued the issue throughout the 1990s and during Mr. Wolfensohn's tenure we initiated a dialogue with the Bank and the UN system, as well as with some client countries. The UN World Summit 2005 provided additional support for our position that the Bank, together with the UN, should assist countries, at their request, with the national implementation of human rights.

Will the fund be enough? How can the World Bank become truly effective in promoting human rights?
No, it's not enough, but it is a start. Initially, the idea is to show the added value of human rights considerations in poverty reduction processes, through a series of pilot projects within the framework of countries' Poverty Reduction Strategies Processes (PRSP).

The World Bank should not take over the UN’s role when it comes to human rights. The protection mandate lies with the UN High Commissioner for Human Rights, as well as with UNICEF and UNHCR. These UN actors are the legal custodians of human rights standards. Other UN organisations have a different role, namely a duty to promote human rights. Our view is that this also applies to the Bank. This doesn’t mean "policing", reviewing or monitoring states' compliance with their obligations in the area of human rights, but rather to contribute to the achievement of this goal.
 
This is where one can start talking about coherence and effectiveness. This can achieved through harmonisation and cooperation between various actors. The Bank should be able to participate and collaborate in the development process and the dialogue among the UN, bilateral donors, the EU-Commission and civil society.

And they are not alone. Local, national and international NGOs also contribute to raising awareness about the importance of to improving the human rights situation in a country or region.

The purpose is to link normative work of the UN, such as the UN's treaty bodies and the Human Rights Council's special rapporteurs, with the World Bank’s "big bucks"!

Last edited 2006-10-10

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Nordic Fund on HR in the World Bank

Sweden and the other Nordic countries have set up a trust fund for justice and human rights in the World Bank for a five year period.

Initially the Fund will finance capacity building for the World Bank staff on Human Rights issues, selected pilot projects linked to the national Poverty Reduction Strategies (PRSP) and the development of indicators for efficient HR and justice programmes. In addition, the Fund will contribute to promoting the participation of the Bank in Donor coherence dialogues and work division between Donors in the field.

Ulrika Sundberg

Ulrika Sundberg is minister at the Ministry for Foreign Affairs Department for Development Policy which, together with the rest of the Ministry, Sida, the Ministry of Finance and others, is working on the implementation of Sweden’s policy for global development (PGD).

Ulrika Sundberg has previously worked with the UN reform and related issues at the Ministry for Foreign Affairs, the French Ministry of Foreign Affairs and most recently in Geneva as Sweden's representative in various UN human rights fora.