Responsibility of International Financial Institutions for Human Rights Violations

Abstract

Most of the international financial institutions (IFIs) are international organisations that explicitly mandated to enhance economic prosperity and to support poverty reduction. Their activities are also directly or indirectly related to support governments to meet their human rights obligations. Despite the great variety of IFIs and the fact that available practice is limited, there is a broad consensus that IFIs are bound by general principles and customary norms of international law, including certain human rights norms. Nevertheless, privileges and immunities conferred upon IFIs ensure protection from any suit brought against them. The present article is devoted to a discussion of the boundaries of responsibility between the affected persons and the IFIs for project related harms. While these institutions have historically insisted that they have no obligations under human rights law, recent years have seen a shift towards the adoption of their restrictive immunities.