Researchers at the University of Portsmouth emphasize the need to integrate human rights into global economic development frameworks, highlighting the adverse effects of current international investment laws on local communities and indigenous peoples.
Economic development projects around the world often prioritize growth at the expense of local communities and indigenous peoples, argues a new study from the University of Portsmouth. Published in the Business and Human Rights Journal, the research by Leïla Choukroune and Lorenzo Cotula critically dissects how international investment deals and dispute settlements frequently overshadow voices from affected regions.
The study notes that the prevailing framework of international investment law primarily encourages economic growth and market integration. However, this approach tends to neglect the cultural, environmental and social sustainability perspective, crucial for inclusive development.
“From Colombia to Peru, Nigeria to Indonesia, large investment projects have raised urgent questions about who really benefits from ‘development,’” Choukroune, a professor of international economic law and director of the upcoming Global Justice and Rights Centre of Excellence, said in a news release. “These projects frequently cause harm to local communities, including environmental degradation, displacement and human rights violations.”
Illustrative examples from the study include:
- Colombia: Mining interests threaten the Paramos high-mountain ecosystems, critical for water production and biodiversity.
- Peru: Indigenous leaders have faced criminalization for protesting against extractive projects, notably the Bear Creek mining investment.
- Nigeria: Oil spills and pollution from Shell have ravaged local communities, spurring unprecedented global legal battles over corporate accountability.
- Indonesia: Communities have sought justice for human rights abuses tied to major corporations, including a recent settlement involving ExxonMobil and a long-running torture case.
“By connecting human rights and development in immediate terms, ongoing discussions about the ‘right to development’ can provide an arena to centre ‘peoples’ as the key actors in development processes,” Choukroune added. “But this shift would also require ensuring that the wider frameworks of international economic law recognize and provide space for plural notions of development.”
The effort aligns with the United Nations’ push for a legally binding treaty on the “right to development,” aiming to prioritize equality, human rights and respect for natural resources. This proposed treaty seeks to shift the focus of development from nations to “peoples,” integrating local communities and indigenous peoples into the decision-making process.
“It is critical that any treaty agreed reflects the broader aspirations of local and indigenous communities, who often face environmental harm, land loss and insufficient consultation,” added Choukroune. “The international rules governing foreign investment embody a notion of development that tends to prioritize economic considerations, against the rights of ‘peoples’ who articulate development in different terms.”
Key areas emphasized in the study include:
- Balancing economic growth with cultural and local development for comprehensive economic, environmental and social sustainability.
- Recognizing indigenous rights in large international investments, such as ensuring free, prior and informed consent.
- Creating legal frameworks that support diverse visions of development.
- Enhancing access to effective remedies for local communities and all stakeholders involved in international investments.
Integrating human rights into international economic law could lead to fairer, more sustainable and inclusive outcomes, ensuring development efforts benefit all, particularly the most vulnerable.