<h1><br></h1>
<a href="http://www.coc.org/rbw">Rethinking
Bretton Woods</a> | Tue, Oct 25, 2011
<p>Center of Concern joins other organizations
in inviting organizations and networks to sign onto the statement to the
Group of 20 Leaders on Embedding Human Rights in Financial Regulation.</p>
<p>Send organizational signature to <a href="mailto:conf_moderator@coc.org">conf_moderator@coc.org</a>
by October 31, 9 am US Eastern time.</p>
<p><strong>Joint Civil Society Statement to the Group of 20 Leaders on
Embedding Human Rights in Financial Regulation</strong></p>
<p><span style="font-family:Calibri;mso-bidi-font-family:Calibri"> </span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt"><span style="font-family:Calibri;
mso-bidi-font-family:Calibri">We are writing to the Group of 20 Leaders, in
advance of their upcoming Summit in Cannes, to remind them that even in the
policies of a most eminently economic nature, their duties to respect, protect
and fulfill the economic, social, cultural, civil and political human rights,
including the right to development, do not cease, but should take primacy in
every commitment they undertake.</span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt"><span style="font-family:Calibri;
mso-bidi-font-family:Calibri">In particular, we are demanding action on the
following issues on the agenda of the G20:</span></p>
<ul style="margin-top:0in" type="disc"><li class="MsoNormal" style="margin-bottom:10.0pt;mso-list:l0 level1 lfo1;
tab-stops:list .5in"><span style="font-family:Calibri;mso-bidi-font-family:
Calibri">Endorsement of worldwide stimuli measures according to human
rights principles; </span></li><li class="MsoNormal" style="margin-bottom:10.0pt;mso-list:l0 level1 lfo1;
tab-stops:list .5in"><span style="font-family:Calibri;mso-bidi-font-family:
Calibri">Reforms to prevent speculative activity in financial markets from
undermining the enjoyment of human rights;</span></li><li class="MsoNormal" style="margin-bottom:10.0pt;mso-list:l0 level1 lfo1;
tab-stops:list .5in"><span style="font-family:Calibri;mso-bidi-font-family:
Calibri">Action to limit the damage to public funding of financial
institutions that collapse due to excessive risk-taking </span></li><li class="MsoNormal" style="margin-bottom:10.0pt;mso-list:l0 level1 lfo1;
tab-stops:list .5in"><span style="font-family:Calibri;mso-bidi-font-family:
Calibri">Regulations of bank capital requirements consistent with human
rights standards; </span></li><li class="MsoNormal" style="margin-bottom:10.0pt;mso-list:l0 level1 lfo1;
tab-stops:list .5in"><span style="font-family:Calibri;mso-bidi-font-family:
Calibri">Agreement to increase the relative fiscal pressure on the banking
sector and to cooperate to increase transparency and mutual accountability
in revenue mobilization; </span></li><li class="MsoNormal" style="margin-bottom:10.0pt;mso-list:l0 level1 lfo1;
tab-stops:list .5in"><span style="font-family:Calibri;mso-bidi-font-family:
Calibri">An agreement to drastically reduce greenhouse emissions which
contribute to climate change. </span></li></ul>
<p class="MsoNormal" style="margin-bottom:10.0pt"><strong><span style="font-family:
Calibri;mso-bidi-font-family:Calibri">Background</span></strong></p>
<p class="MsoNormal" style="margin-bottom:10.0pt"><span style="font-family:Calibri;
mso-bidi-font-family:Calibri">More than three years after the beginning of the
global financial crisis the world economy faces an uncertain situation. The
continuing economic malaise calls into question the real extent of the recovery
so highly celebrated last year. </span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt"><span style="font-family:Calibri;
mso-bidi-font-family:Calibri">At the same time, the world was at no point close
to a “recovery” from the human rights toll of the financial crisis. Poverty and
inequality have increased, and economic growth, where it did take place, has
been largely jobless, wageless and unevenly distributed to the wealthiest
sectors of society. As the world braces for what seems like another coming
economic recession, countries and households barely able to cope last recession
are now in an even worse situation, with negative consequences for<span style="mso-spacerun:yes"> </span>fundamental human rights in rich and poor
countries alike.</span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt"><a name="OLE_LINK2"><span style="font-family:Calibri;mso-bidi-font-family:Calibri">G20 Leaders’ duties to
place human rights norms at the center of their financial policies and
regulations cannot be exhausted with a merely rhetorical recognition (however
much such recognition would be an improvement over current practice). States’
human rights obligations embedded in the International Bill of Rights require
that governments carefully assess their respective choices and courses of
action against the human rights consequences in transparent, participatory,
non-discriminatory and accountable ways. Only an enduring commitment to
respect, protect and fulfill legally-binding human rights obligations enshrined
in the Universal Declaration of Human Rights and core international human
rights treaties can provide the basis for reforms to ensure a more sustainable,
resilient and just global economy.</span></a></p>
<p class="MsoNormal" style="margin-bottom:10.0pt"><span style="mso-bookmark:OLE_LINK2"><a name="OLE_LINK1"><span style="font-family:Calibri;mso-bidi-font-family:Calibri">Large-scale
deprivations of human rights stemming from the financial and economic crises
are not inevitable, natural phenomena.<span style="mso-spacerun:yes">
</span>The G20 agenda in </span></a><span style="mso-bookmark:OLE_LINK1"><span style="font-family:Calibri;mso-bidi-font-family:
Calibri">Cannes</span></span><span style="mso-bookmark:
OLE_LINK1"><span style="font-family:Calibri;mso-bidi-font-family:Calibri"> in
fact provides several actionable opportunities for governments—individually and
in concert with one another—to choose alternative, human rights-centered paths
to a sustainable economic recovery. </span></span></span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><strong><span style="font-family:Calibri;
mso-bidi-font-family:Calibri">STIMULUS MEASURES:</span></strong></span></span><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="font-family:Calibri;mso-bidi-font-family:Calibri"> First, the
seriousness of the problems threatening the world economy today warrant a
cohesive and coordinated response from Group of 20 countries to stimulate their
economies. The premature move towards austerity and the consequent reductions
in aggregate demand have been the main reasons why the world is falling back
into an economic crisis. Austerity policies threaten to continue to deprive
people of access to finance, jobs, and services, while their governments for
the most part refuse to establish fair systems for the private sector to share
the burden of public debt restructurings. </span></span></span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><strong><span style="font-family:Calibri;
mso-bidi-font-family:Calibri">We call on the G20 to implement economic stimulus
measures within a human rights framework. Human rights standards and principles
provide a framework for the design and implementation of stimuli measures which
are participatory, transparent, accountable and non-discriminatory. We are not
in favor of blind stimuli measures, especially those that would place new
strains on public budgets to benefit private risk-taking. Gender- and
environmentally-sensitive public infrastructure programs, transformational
universal social protection systems and household debt restructuring that
restores spending power, as well as measures to increase disposable income of the
poorest, are among the measures that should be undertaken to ensure any
recovery benefits those most in need.</span></strong></span></span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><strong><span style="font-family:Calibri;
mso-bidi-font-family:Calibri">SPECULATION IN FINANCIAL MARKETS:</span></strong></span></span><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="font-family:Calibri;mso-bidi-font-family:Calibri"> Second, in spite of
the continued surges in speculative activity in financial markets, there is
still limited progress in the regulation of commodity derivatives trading. Near
60 studies have been produced showing that speculation in commodity derivatives
is either a good part or the main reason behind the spikes in food and energy
prices that have increased hunger and malnutrition. </span></span></span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><strong><span style="font-family:Calibri;
mso-bidi-font-family:Calibri">The Group of 20 should commit to the immediate
implementation of reforms to bring Over–the- Counter derivatives to public
exchanges, and establish meaningful position limits on derivatives in exchanges
under their jurisdiction. The setting of circuit-breakers, compulsory delivery
or banning of certain types of derivatives trading, in accordance with human
rights standards and principles, should be given explicit individual and
collective support. </span></strong></span></span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><strong><span style="font-family:Calibri;
mso-bidi-font-family:Calibri">LARGE AND COMPLEX FINANCIAL INSTITUTIONS:</span></strong></span></span><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="font-family:Calibri;mso-bidi-font-family:Calibri"> Third, regrettably,
there is no guarantee that companies that took undue risks will not again have
to be bailed out with public funding. Large and complex financial firms, some
of them operating in dozens of jurisdictions, have successfully resisted calls
to reduce their complexity or size. They are able to profit from the tax and
regulatory arbitrage that such position makes possible, while their complexity
and size limits the chances that they can be successfully resolved without
disrupting vital banking activities in the event of a collapse. </span></span></span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><strong><span style="font-family:Calibri;
mso-bidi-font-family:Calibri">The Group of 20 should undertake measures to
reduce the size and complexity of systemically important financial
institutions, including through direct regulatory intervention to break up
large firms. Strict separation between traditional banking activities such as
deposit –taking and credit provision to households and small companies and
proprietary trading should be enforced. Cross-border banking resolution
agreements should be pursued. Yet, given the presumably long time it will take
to develop them, it is urgent to ensure banks are incorporated and separately
capitalized in every jurisdiction where they operate.</span></strong></span></span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><strong><span style="font-family:Calibri;
mso-bidi-font-family:Calibri">BANK CAPITAL REQUIREMENTS:</span></strong></span></span><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="font-family:Calibri;mso-bidi-font-family:Calibri"> Fourth, the reforms
to the Basel Agreement on capital requirements amount to too little and are too
slow in implementation. Above all, they amount to more of the same–a reliance
on a bank capital regulation model that banks have proven they can manipulate
to hide the true extent of their risks. Financial companies that have produced
record profits in the last decade and that claim to operate on a highly
efficient basis due to their large size have no justification for their
persistent complaint that they will reduce credit if such capital requirements
are implemented. </span></span></span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><strong><span style="font-family:Calibri;
mso-bidi-font-family:Calibri">Governments in the long term should lend support
to replacing Basel
requirements with a framework for banking regulation that fully recognizes the
duty of States to prevent and protect against and provide effective remedy for
human rights infringements by private actors, including the financial sector.
In the short to medium term, governments must be fully empowered to consider
regulations of banking services as one essential tool to enhance enjoyment of
human rights for all, including by taking proactive steps to ensure substantive
equality in financial regulatory policies to protect the poor and disadvantaged
and allow for where necessary the direct engagement of the State in the
provision of banking services. </span></strong></span></span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><strong><span style="font-family:Calibri;
mso-bidi-font-family:Calibri">FINANCIAL SECTOR TAXATION:</span></strong></span></span><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="font-family:Calibri;mso-bidi-font-family:Calibri"> <span style="color:black">Fifth, governments’ obligations to take steps “to the
maximum of their available resources” to fulfill their economic and social
rights responsibilities cannot be upheld without a thorough evaluation of the
contribution that the financial sector makes to public budgets through
taxation. In general, the liberalization of capital of the last two to three
decades has meant more indirect and regressive taxes, disproportionately
raising fiscal pressure on poorer and middle-income households.</span></span></span></span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><strong><span style="font-family:Calibri;
mso-bidi-font-family:Calibri;color:black">The G20 should take measures which
ensure their financial sectors pay their fair share. Governments should commit
to transparent, participatory and accountable taxation systems that introduce
greater progressivity overall, </span></strong></span></span><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><strong><span style="font-family:Calibri;mso-bidi-font-family:Calibri">and increase in
particular the relative weight of fiscal pressure on the banking sector.
Specifically, we<span style="color:black"> demand G20 members to agree on the
implementation of financial transaction taxes and to express a clear commitment
to use this newly-generated revenue to fulfill their human rights
obligations–at home and abroad. We further call on governments to take decisive
steps to cooperate internationally in order to ensure transparency and mutual
accountability in domestic revenue mobilization, putting an end to actions or
omissions which prevent governments from raising the resources needed to
fulfill their human rights obligations.</span></span></strong></span></span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><strong><span style="font-family:Calibri;
mso-bidi-font-family:Calibri">CLIMATE CHANGE:</span></strong></span></span><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="font-family:Calibri;mso-bidi-font-family:Calibri"> Lastly, the </span></span></span><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="font-family:Calibri;mso-bidi-font-family:Calibri;mso-ansi-language:
EN-ZA;mso-fareast-language:EN-ZA" lang="EN-ZA">absence of se</span></span></span><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="font-family:Calibri;mso-bidi-font-family:Calibri">r</span></span></span><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="font-family:Calibri;mso-bidi-font-family:Calibri;mso-ansi-language:
EN-ZA;mso-fareast-language:EN-ZA" lang="EN-ZA">ious commitments from G20 governments to
reduce greenhouse gas emissions and adopt greener </span></span></span><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="font-family:Calibri;mso-bidi-font-family:Calibri">technologies</span></span></span><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="font-family:Calibri;mso-bidi-font-family:Calibri;mso-ansi-language:
EN-ZA;mso-fareast-language:EN-ZA" lang="EN-ZA"> is fast becoming a huge human rights issue.
Emissions continue to trigger weather-related natural disasters, subjecting
vulnerable and marginalised communities to increased risk as well as
threatening the earth’s fragile biodiversity.</span></span></span><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="font-family:Calibri;mso-bidi-font-family:Calibri;mso-ansi-language:
EN-ZA" lang="EN-ZA"> </span></span></span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><strong><span style="font-family:Calibri;
mso-bidi-font-family:Calibri">As the world’s largest economies and emitters of
greenhouse gas emissions which are imperiling the planet, it is imperative that
G20 governments </span></strong></span></span><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><strong><span style="font-family:
Calibri;mso-bidi-font-family:Calibri;mso-ansi-language:EN-ZA;mso-fareast-language:
EN-ZA" lang="EN-ZA">take</span></strong></span></span><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><strong><span style="font-family:Calibri;
mso-bidi-font-family:Calibri"> the lead in arriving at consensus solutions to
drastically reduce greenhouse gas emissions at the 17<sup>th</sup> Conference
of the Parties of the UN Framework Convention on Climate Change at Durban in
November-December 2011. A fair, ambitious and binding treaty on addressing
climate change is the planet’s last hope which needs to be supported by G20
governments.</span></strong></span></span></p>
<p> </p>
<p class="MsoNormal" style="margin-bottom:10.0pt"><span style="font-family:Calibri;
mso-bidi-font-family:Calibri;color:black">Initial signatories: </span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt"><span style="font-family:Calibri">Center
for Economic and Social Rights (CESR)</span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt"><span style="font-family:Calibri">Center</span><span style="font-family:Calibri"> of Concern</span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt"><span style="font-family:Calibri">CIVICUS</span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt"><span style="font-family:Calibri">Development
Alternatives with Women for a New Era (DAWN) </span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt"><span style="font-family:Calibri">IBASE
</span></p>
<p class="MsoNormal" style="margin-bottom:10.0pt"><span style="font-family:Calibri">Social
Watch</span></p>
<p class="MsoNormal"> </p>