How Does Economic Development Truly Benefit Individuals?

A recent study from the University of Portsmouth advocates integrating human rights at the core of economic development. Authored by Professor Leïla Choukroune and Dr Lorenzo Cotula and published in the Business and Human Rights Journal, the research scrutinises the impact of international investment agreements and dispute resolutions, which often sideline the interests of local communities and indigenous peoples in favour of economic expansion, thereby compromising inclusive and sustainable growth.

The analysis conducted by the researchers brings to light the prevalent orientation of international investment law, favouring a developmental model heavily skewed towards economic acceleration and market integration, often at the expense of cultural, environmental, and social considerations. Professor Choukroune, who holds the position of Professor of International Economic Law and is the forthcoming Director of the Global Justice and Rights Centre of Excellence, underscores the real-world implications of such developmental projects across various regions, from Colombia to Peru and Nigeria to Indonesia. These initiatives, while ostensibly aimed at development, have repeatedly resulted in environmental damage, displacement, and violations of human rights.

For instance, in Colombia, mining activities threaten the Paramos high-mountain ecosystems, which are crucial for water supply and biodiversity. In Peru, indigenous leaders face criminal charges for their resistance against mining endeavours, as exemplified by the Bear Creek mining investment debacle. Nigeria has witnessed devastating community impacts from oil spills and pollution from corporations like Shell, leading to significant international legal disputes concerning corporate responsibility. Meanwhile, in Indonesia, communities are battling for justice concerning human rights abuses linked to major corporate entities, highlighted by ExxonMobil’s recent settlement in a prolonged torture lawsuit.

Professor Choukroune elaborates on the need for a transformative approach to development that prioritises human rights and positions local communities and indigenous peoples at the forefront of development strategies. This perspective aligns with ongoing debates regarding the right to development. It is in step with the United Nations’ initiative to promote a legally binding treaty that foregrounds equality, human rights, and environmental respect. Such a treaty would refocus national and local development efforts, ensuring participatory decision-making encompassing those directly impacted by development projects.

The study further discusses the necessity for a paradigm shift in how international economic law frames development, advocating for a model that balances economic objectives with the needs and rights of local and indigenous communities. This includes acknowledging Indigenous rights within large-scale international investments, specifically the right to free, prior, and informed consent, and establishing legal frameworks that cater to diverse developmental visions.

Moreover, the research highlights the urgency of facilitating access to effective remedies for communities and stakeholders involved in international investment schemes. As global inequalities continue to intensify, and as the UK approaches its human rights evaluation by the United Nations, there is an evident and pressing need to re-evaluate the definitions and beneficiaries of development.

In conclusion, the Portsmouth study argues for reintegrating human rights into the fabric of international economic law, aiming to foster fairer, more sustainable, and inclusive development outcomes that genuinely serve the most vulnerable segments of the population. This approach challenges traditional economic development paradigms and champions a more equitable distribution of benefits, ensuring that development genuinely benefits all stakeholders.

More information: Leïla Choukroune et al, ‘Local Communities’ and the Development Conundrum: Where International Investment Law Meets Human Rights and Businesses, Business and Human Rights Journal. DOI: 10.1017/bhj.2024.22

Journal information: Business and Human Rights Journal Provided by University of Portsmouth

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