Ukraine: Economic reforms should protect human rights

Ukraine: Economic reforms should protect human rights and fight corruption

GENEVA/KYIV (23 May 2018) – The United Nations Independent Expert on debt and human rights recognised that Ukraine has progressed in its fight against illicit financial flows but warned that economic reforms without clear safeguards for human rights can further entrench inequality and poverty.

“All human rights, be it housing, health or access to justice are closely linked to public finances. Human rights cannot be effectively realised without adequate budget allocated for the common good, and without addressing corruption,” Juan Pablo Bohoslavsky said at the end of his 10-day visit to the country.

“A healthy economy must ensure the well-being for all, including the most vulnerable. The economic reforms should not go forward in spite of them.”

The Independent Expert addressed a number of issues related to economic reforms, illicit financial flows and their impact on human rights during his meetings with Government officials, researchers, investigative journalists, civil society activists and members of the international community in Kyiv.

“Corruption is a serious human rights concern everywhere precisely because it drains a sizeable part of the public budget away from its social function. State capture by a small elite matters because it erodes the trust in institutions, hampers accountability and weakens democracy,” he said.

Bohoslavsky expressed his support for the establishment of an independent High Anti-Corruption Court that will address high-profile corruption cases, in accordance with the recommendations of the Venice Commission of the Council of Europe.

At the same time, he underlined that fighting corruption requires a holistic approach which covers not only investigations and sanctions but also a proper regulation to minimise the economic incentives to become corrupt.

With regard to the package of reforms that were set as requirements by international lenders, in particular the International Monetary Fund (IMF), the Independent Expert noted that “most of my interlocutors seem to share the perspective that moving from over-regulation to deregulation would undoubtedly foster economic growth and prevent corruption. However, I disagree with this view”.

“Comparative experiences show that private actors require effective regulation also, in particular to ensure human rights compliance,” he said. “This is only achievable with robust legislation and independent public institutions that prevent market abuses, ensure the rule of law and tackle economic and social inequality in order to promote inclusive sustainable growth.”

The Independent Expert expressed concern at the growing inequalities faced by the poor and unemployed, and by the stark wage gap between men and women. He also found worrying the situation with payment of pensions to people affected by the armed conflict. He recommends that the Government of Ukraine eliminates the obstacles that prevent Ukrainian citizens from having equal access to pensions regardless of their place of residence or registration as internally displaced persons (IDPs).

The Independent Expert will submit a comprehensive report on his visit to Ukraine to the UN Human Rights Council in March 2019.

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