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Article

17 Jun 2008

Author:
Bretton Woods Project

UN calls for human rights accountability - Community appeals in Kazakhstan and Nicaragua

A UN report says the World Bank's investment arbitration facility is at odds with the protection of human rights. The CAO [Compliance Advisor/Ombudsman] has found that the IFC violated its own standards in Kazakhstan, and a new complaint has been lodged against an IFC-funded sugar company in Nicaragua... In an April report...UN Special Representative on human rights and transnational corporations John Ruggie says that so-called 'stabilization clauses' found in many investment contracts...can make it difficult for host states "to strengthen domestic social and environmental standards... Ruggie calls on "institutions supporting investments" to develop arbitration procedures which better "balance investor interests and the needs of host states to discharge their human rights obligations". This is a direct challenge to the World Bank's International Centre for the Settlement of Investment Disputes (ICSID)... [refers to Karachaganak Petroleum, British Gas (BG Group), Agip (part of ENI), Chevron, Lukoil, Nicaragua Sugar Estate Limited (NSEL)]