'Reform programmes should not undermine basic rights'

UNITED NATIONS: International financial institutions and wealthy States while imposing structural reform programmes on poor countries should ensure that they do not undermine their basic cultural, social and economic rights, an independent UN human rights expert said on Friday.

Bernard Mudho, the Human Rights Council's Independent Expert on the effects of economic reform policies and foreign debt on the full enjoyment of all human rights, made the remarks while unveiling draft guidelines for financial institutions and industrialized States to follow when pursuing economic restructuring programmes in developing countries.

Mudho told a committee of Assembly that the draft guidelines include a provision calling on institutions demanding repayment of foreign debts to ensure that a debtor country is not prevented from fulfilling its human rights obligations to its citizens as a result.

Moreover, whenever major economic reform programmes are being considered, including macroeconomic stabilisation, trade liberalisation and social sector reform, social, cultural and economic impact assessments should be conducted first, he added. Human rights obligations should also play a vital role during international trade negotiations, Mudho said.

Loan performance should be monitored by both creditors and borrowers, he stressed, adding the agreements should allow for the review of loan conditions. The Independent Expert also said the global lending economy should also agree on common lending principles. The guidelines are now being circulated among member states and others and Mudho said he hoped the draft would serve as a basis for constructive discussions on issues of economic management.