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Article

11 Mar 2008

Author:
Andrea Shemberg, commissioned by IFC and UN Special Representative on business & human rights, John Ruggie

[PDF] Stabilization Clauses and Human Rights

The purpose of this study was to examine whether stabilization clauses, a widely used risk-management device in investment contracts, may affect a state’s action to implement its international human rights obligations…The study used social and environmental laws (such as nondiscrimination, health and safety, labor and employment rights, and the protection of the environment and cultural heritage) as a surrogate for human rights obligations, because these domestic laws are some of the most common means of implementing international human rights obligations in regulating business activity. [refers to BP, Arcelor Mittal, Markerings-Compagniet, Methanex]