REDESCA urges to guarantee a human rights approach in reparation policies and responsible exit in development projects

March 27, 2025

Washington, DC—The Special Rapporteurship on Economic, Social, Cultural, and Environmental Rights (REDESCA) of the Inter-American Commission on Human Rights (IACHR) expresses its concern over the persistent absence or weak incorporation of a human rights approach in the remediation and responsible exit frameworks adopted in the context of development projects in Latin America and the Caribbean. In particular, the Rapporteurship is troubled by the fact that many of these policies and practices—promoted by various actors, including development finance institutions operating in the region—fail to adequately guarantee full reparation for the harms caused, or ensure broad, meaningful, and culturally appropriate consultation processes with affected communities.

The Special Rapporteurship considers it essential that States ensure that any development policy or instrument implemented within their territories—including those financed by third-party actors—is fully aligned with the principles of integral reparation, meaningful participation, and non-discrimination, in accordance with the corpus iuris of the inter-American and international human rights systems. In this regard, REDESCA recalls that, as developed in its thematic report Business and Human Rights: Inter-American Standards, States are obligated to prevent and remedy human rights violations stemming from business activities, and to ensure effective accountability and reparations mechanisms—even when such projects are financed by international financial institutions. These standards underscore the non-delegable responsibility of States to guarantee that economic development does not come at the expense of the dignity and rights of individuals, especially those in situations of heightened vulnerability.

REDESCA further underscores that the right to full reparation must serve as the foundation for any responsible exit policy. While acknowledging progress in the adoption of new safeguards and socio-environmental frameworks by various actors, the Special Rapporteurship observes that significant gaps remain that must be addressed to ensure the protection of affected communities and to prevent impunity for potential abuses or human rights violations.

In this context, the Special Rapporteurship values the efforts aimed at developing a Remedial Framework and Responsible Exit Principles, promoted by the International Finance Corporation—the private sector arm of the World Bank—as a relevant step toward building stronger accountability standards. Nevertheless, it warns that substantial gaps remain in the effective integration of a human rights approach within these regulatory frameworks and their practical implementation. In this regard, REDESCA emphasizes the importance of ensuring that these processes are developed in constructive and coordinated dialogue with the mandates of international and regional human rights protection systems, so that the policies and instruments adopted are consistent with States' legal obligations and effectively respond to the realities and needs of affected communities.

Furthermore, responsibility in project exit processes—understood as a planned, transparent disengagement carried out with the participation of affected communities and ensuring reparation for the harms caused—requires clear procedures and effective mechanisms for consultation and follow-up. REDESCA is particularly concerned that, in several cases, disinvestment or early termination of financing has taken place without adequately informing communities or ensuring the fulfillment of pending commitments, thereby leaving them in greater vulnerability. To reverse this pattern, it is essential to establish responsible exit plans that are developed in close consultation with local stakeholders and independent grievance mechanisms, including clear timelines for compliance, impact monitoring, and reparation measures.

In the context of development projects, human rights defenders face significant risks, including threats, intimidation, and violence. REDESCA also highlights the importance of preventing and addressing reprisals against human rights defenders and community leaders in this context. Any responsible exit strategy or remediation process must include a specific risk analysis related to potential reprisals, including acts of intimidation, violence, or stigmatization, and must establish effective protection measures for those who voice concerns, file complaints, or actively participate in defending their rights. These measures must fully comply with inter-American human rights standards and with the obligations established under the Escazú Agreement.

The Special Rapporteurship on Economic, Social, Cultural, and Environmental Rights is a specialized office created by the Inter-American Commission on Human Rights (IACHR) to strengthen the promotion and protection of economic, social, cultural, and environmental rights across the Americas, leading the Commission's efforts in this area. 

No. RD062/25

11:45 AM