Uncalculated Risks

The report 'Uncalculated Risks' examines how development finance institutions (DFIs) often fail to account for human rights risks, leading to the stigmatization, criminalization, and physical attack of human rights defenders. Through 25 case studies across various countries and sectors, it argues that DFIs frequently rely on inadequate client reporting and overlook the enabling environment for public participation. The document provides a 'Leverage Toolbox' and a 'Reprisal Prevention and Response Process' to help DFIs move toward a human rights-based approach to development.

• Threats and attacks against human rights defenders in development contexts are widespread and often begin with the stigmatization of individuals or groups as "anti-development."
• Governments and businesses are increasingly using the legal system to harass and criminalize defenders, a strategy termed "judicial harassment," to silence opposition and divert resources.
• A primary root cause of threats to defenders is the implementation of development projects without the meaningful consultation or consent of local communities and marginalized groups.
• DFIs frequently fail to conduct adequate human rights due diligence, often relying on client reporting or assumptions that domestic legal systems are functioning, while ignoring early warning signs of threats.
• Existing grievance and accountability mechanisms in DFIs are often insufficient for addressing defender-related threats and can potentially put defenders at greater risk if they lack safeguards against reprisals.
• DFIs often remain silent or respond too late when attacks occur, missing opportunities to use their financial, normative, or diplomatic leverage to protect defenders.
• In Honduras, the IFC continued to provide financing to the Dinant Corporation despite widespread allegations of violence and killings of farmers in the Bajo Aguán Valley.
• In Mexico, the Mareña Renovables wind project led to the criminalization and harassment of indigenous leaders, including Bettina Cruz, while the IDB was criticized for failing to identify the conflictivity of the area.
• In Guatemala, the Santa Rita hydroelectric project saw the use of police force and the burning of homes, while the IFC and other lenders were found to have lacked analysis of contextual risks.
• In Brazil, the Belo Monte dam project was associated with systemic corruption and the use of judicial restraining orders to fine and intimidate activists.
• In South Africa, the Marikana massacre resulted in 34 deaths after police opened fire on striking miners at a platinum mine where the IFC held equity shares.
• In Uzbekistan, labor monitors documenting forced and child labor in the cotton sector have been subjected to beatings, detention, and psychiatric institutionalization.

APA

Center for International Environmental Law (2019). Uncalculated Risks. https://www.ciel.org/wp-content/uploads/2019/06/Uncalculated-Risks.pdf

Chicago

Center for International Environmental Law. Uncalculated Risks. 2019. https://www.ciel.org/wp-content/uploads/2019/06/Uncalculated-Risks.pdf.

Wikipedia

{{cite report |author=Center for International Environmental Law |title=Uncalculated Risks |date=May 2019 |url=https://www.ciel.org/wp-content/uploads/2019/06/Uncalculated-Risks.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{centerforinternationalenvironmentallaw2019uncalculated, author = {{Center for International Environmental Law}}, title = {{Uncalculated Risks}}, institution = {Center for International Environmental Law}, year = {2019}, month = may, url = {https://www.ciel.org/wp-content/uploads/2019/06/Uncalculated-Risks.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }