Human Rights and Development
143
The European Bank for Reconstruction and Development (EBRD) adopts a similar approach, establishing direct operational implications for human rights obligations in development activities. Unlike other multilateral development banks (MDBs), the Agreement Establishing the EBRD sets forth a political mandate for the EBRD to further the transition to multiparty democracy and to encourage a respect for human rights, making an explicit provision for human rights in its preamble.121 Thus, “the preamble and the phrasing of Article 1 seem to imply that the founding members expected that the EBRD in its operations would be sensitive to the human rights of residents in the countries of its operation.”122 Building on its foundational agreement, the EBRD’s 2008 Environmental and Social Policy incorporates human rights as a minimum standard defined in accordance with human rights instruments. “The EBRD will not knowingly finance projects that would contravene obligations under international treaties and agreements related to environmental protection, human rights and sustainable development as identified through project appraisal.”123 The fact that the baseline underpinning this policy is rooted in human rights treaties has not insulated the EBRD from NGO criticism that the Bank’s commitment to human rights is weak in practice.124 A similar example is found in the Council of Europe Development Bank (CEB), administered under the authority of the Council of Europe, which has the protection and promotion of human rights as one of its principal aims. the competent minister is of the opinion that it (a) contributes to poverty reduction; (b) takes into account the perspectives of the poor; and (c) is consistent with international human rights standards.”
121 The preamble of the agreement establishing the EBRD provides that contracting parties are:
[c]ommitted to the fundamental principles of multiparty democracy, the rule of law, respect for human rights and market economics; . . . Welcoming the intent of Central and Eastern European countries to further the practical implementation of multiparty democracy, strengthening democratic institutions, the rule of law and respect for human rights and their willingness to implement reforms in order to evolve towards marketoriented economies.
Article 1 provides:
Purpose
In contributing to economic progress and reconstruction, the purpose of the Bank shall be to foster the transition towards open market-oriented economies and to promote private and entrepreneurial initiative in the Central and Eastern European countries committed to and applying the principles of multiparty democracy, pluralism and market economics. 122 A. McAuley, European Bank for Reconstruction and Development, in Oxford Encyclopedia of Human Rights vol. 2, 169, 171 (D. Forsythe ed., Oxford U. Press 2009).
123 EBRD, Environmental and Social Policy, paragraph 9. Paragraph 37 specifies that EBRD’s country and sector strategies should summarize the principal environmental, human rights, gender equality, and other social issues in the relevant country or sector and sets out the EBRD’s proposals for taking these issues into account in its operations, where appropriate. See http://www.ebrd.org/pages/about/principles/sustainability/policy.shtml. 124 For a brief discussion of such critiques, see A. McAuley, The European Bank for Reconstruction and Development, in Oxford Encyclopedia of Human Rights 172 (D. Forsythe ed., Oxford U. Press 2009).