Report on Development Finance and Human Rights

The document argues that development finance institutions (DFIs) often cause harm to communities and must strengthen Independent Accountability Mechanisms (IAMs) to provide effective remedy. It calls for DFIs without IAMs to create them through public consultation, urges DFI networks to mandate these mechanisms for membership, and asserts that States must facilitate access to remedy for DFI-funded projects.

• Independent Accountability Mechanisms (IAMs) are essential governance tools for communities to address environmental, social, and human rights harms through dispute resolution, compliance reviews, and advisory functions. While over 1,600 complaints have been filed to IAMs since the World Bank created the first one 30 years ago, communities face barriers including inequitable treatment, lack of resources for remediation, and DFIs ignoring compliance investigation findings.
• Existing IAMs should be strengthened by expanding their scope to investigate client compliance with project requirements and granting them the power to make binding recommendations for remedy. Additionally, DFIs should establish public-consulted remedy frameworks to ensure resources are available throughout the project cycle.
• The International Finance Corporation's (IFC) draft approach to remedy is considered insufficient and requires improvements, specifically regarding the detailing of remedy types, a commitment to directly finance remedial measures, and extending the pilot to existing projects.
• There is a significant accountability gap in DFI networks; for instance, few of the 15 EDFI Association members and the vast majority of the over 500 public development banks in Finance in Common lack full-fledged IAMs. The document recommends that these associations require IAMs as a condition for membership.
• States have an international duty to protect against human rights abuses by ensuring national DFIs operate effective IAMs and by encouraging accountability in regional and multilateral development banks where they are shareholders. States should also provide judicial and non-judicial avenues to hold corporations accountable for private sector investments within their jurisdiction.

APA

Trend Asia (2023). Report on Development Finance and Human Rights. https://trendasia.org/wp-content/uploads/2023/03/3.6.23-OHCHR-DFI-Comment_Final-1.pdf

Chicago

Trend Asia. Report on Development Finance and Human Rights. 2023. https://trendasia.org/wp-content/uploads/2023/03/3.6.23-OHCHR-DFI-Comment_Final-1.pdf.

Wikipedia

{{cite press release |author=Trend Asia |title=Report on Development Finance and Human Rights |date=6 March 2023 |url=https://trendasia.org/wp-content/uploads/2023/03/3.6.23-OHCHR-DFI-Comment_Final-1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{trendasia2023report, author = {{Trend Asia}}, title = {{Report on Development Finance and Human Rights}}, publisher = {Trend Asia}, year = {2023}, month = mar, url = {https://trendasia.org/wp-content/uploads/2023/03/3.6.23-OHCHR-DFI-Comment_Final-1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }