I am making these remarks on behalf of the Member States of the OIC.
We thank the Independent Expert on the affects of foreign debt and other related international financial obligations of States on the full enjoyment of all human rights, particularly economic, social and cultural rights and the Special Rapporteur on Adequate Housing for presenting their annual reports.
The report of the Independent Expert on affects of foreign debt focuses on implications of austerity-driven labour policies and their effectiveness in preventing and overcoming debt and financial crises.
Islam attaches great importance to the protection of the right of labourers. Prophet Muhammad (PBUH) said, “You should pay the labourer his wages before his sweat dries” (Sunan Ibn Mâjah (2443).
The time and again occurrence of global financial crises points to underlying structural flaws in the global financial system. It is thus important to analyze and address the root causes of a problem before devising a strategy for its resolution.
The Independent Expert’s assertion that fiscal consolidation should not be considered as the only available response to economic crises is dependent on the severity of the crisis and the extent of state’s available resources to address the situation. In order to ensure that fiscal consolidation remains the last resort and not the first measure to address financial crisis, the international community and the developed states have to play their constructive role. It is equally important that the key external creditors of the State concerned and international lending institutions should also not put pressure for implementation of austerity measures affecting labour rights. We agree that all such external creditors must carry out an impact assessment of their conditionalities on the population of a state facing economic crises. The result of the assessment would also help the state concerned to undertake an informed policy decision in this respect.
We ask the Independent Expert to kindly elaborate that how a State which is facing a severe financial crisis can adopt a comprehensive social security policy and, despite fiscal constraints, allocate the necessary budget for this purpose?
We acknowledge the challenges highlighted by the Special Rapporteur on Adequate Housing regarding the financialization of housing sector.
Slums and informal settlements are a tremendous challenge in providing adequate housing in the developing countries.
We ask the Special Rapporteur to underline five concrete ways in which developed countries can substantively support Slum Rehabilitation Schemes in the developing world.
I thank you.