An assessment of the human rights obligations of the World Bank and the International Monetary Fund with particular reference to the World Bank’s Inspection Panel

Abstract

The International Bank for Reconstruction and Development (“the World Bank”) and the International Monetary Fund (IMF) were created in the aftermath of the Bretton Woods Conference to, inter alia, assist in the reconstruction of member states and to provide a framework which facilitates the exchange of goods, services and capital, respectively. Over the years, however, the Bank and the IMF have developed new roles and have become the most important sources of development finance or facilitators of such assistance to developing countries. The assumption of new roles has cast attention on the place of human rights in the activities of the two institutions. In particular, concerns have been raised about the adverse effects of the policies and activities of the two institutions, especially on human rights. Nevertheless, the two institutions deny that they have any legal obligations to protect and promote human rights. On the assumption that development and human rights are strongly interlinked, this paper examines the human rights implications of the policies and activities of the two institutions and explores the extent to which they are bound, as specialised agencies of the United Nations, to promote and protect human rights.