Dáil Éireann Debate, Tuesday - 30 June 2020
27. Deputy Róisín Shortall asked the Minister for Finance if he has considered the recommendations of the UN Special Rapporteur on foreign debt (details supplied); his views on the recommendations; and if he will make a statement on the matter. [13634/20]
View answerAs the Minister for Finance is Ireland’s Governor to the IMF, I propose to respond to the Deputy’s question as far as it relates to the Fund. I presume that the Deputy is referring to the 2012 set of UN Guiding Principles on Foreign Debt and Human Rights, endorsed by resolution (A/HRC/RES/20/10) obliging governments (lenders and borrowers) to ensure the primacy of human rights when they make lending and borrowing decisions.
I welcome the opportunity that the Deputy’s question affords me to clarify the richness of Ireland’s engagement with International Financial Institutions. While the role of the IMF is probably most often perceived through a fiscal and monetary lens that is accordingly associated with economic policy, our international development policy is also an important driver and compass in our engagement with the Institution. Our current whole-of-Government international development strategy, A Better World, is grounded and informed by the overarching principles in the UN’s Guiding Principles on Business and Human Rights. Echoing the priorities articulated in our international development strategy, Ireland’s IMF engagement advocates the promotion and protection of human rights and prioritises gender equality.
Of course, the IMF's primary mission is to ensure the stability of the international monetary system. It focuses on achieving sustainable growth and a stable macroeconomic environment, which in themselves are supportive of human rights, while encouraging member Governments and other Agencies to work together towards designing development strategies that take human rights into account. Broadly speaking, many of the Fund’s activities – reducing macroeconomic imbalances and structural bottlenecks; eliminating obstacles to international payments; and preventing financial crises - contribute directly or indirectly to reducing poverty and fostering human rights. However, the IMF recognises that while growth, macroeconomic stability, and a well-functioning international monetary system can contribute to an environment that supports poverty reduction, they cannot, by themselves, eliminate poverty or protect human rights.
The Fund has also acknowledged that it must be aware of any adverse effects of the corrective policy actions required as part of individual IMF programmes. Although the costs of adjustment are inevitable with any programme of financial support, the IMF insists that they need not to fall disproportionately on the poor nor compromise human rights. In some cases, the Fund encourages Governments to introduce appropriate social protection measures to help alleviate adverse social consequences during periods of adjustment. With regard to gender specifically, the IMF has increasingly recognised this as a macro-critical issue, noting that reducing gender gaps can have important economic benefits. Gender informs the Fund’s country work both in terms of surveillance and the structural reform commitments required by IMF-supported programmes which aim to promote gender equality. Gender issues are also an integral part of capacity development through technical assistance and training.
The IMF has a system of checks and balances to ensure accountability, ranging from internal and external audits, risk management, and evaluations of its policies and operations. The Fund is also accountable to all 189 member countries through the Board of Governors and the Board of Executive Directors on which all members are represented. The IMF recognises the benefits of a transparent and wide engagement with civil society groups to gather broader perspectives about the impact of the Fund’s work and improve policy advice and analysis and has worked to increase dialogue with CSOs.
In conclusion, I wish to assure the Deputy that a commitment to human rights shall remain central to Ireland’s ongoing engagement with the IMF.
