WASHINGTON,
D.C. – The Subcommittee on International Monetary Policy and Trade today
approved an amendment by U.S. Representative Jan Schakowsky (D-IL) to establish
an Office of Human Rights Impact Assessment within the Export-Import Bank.
Below
is Schakowsky’s statement in support of her amendment during today’s hearing:
“Thank
you, Mr. Chairman. My amendment would establish an Office of Human
Rights Impact Assessment within the Export-Import Bank. For each
potential Ex-Im project worth $10 million or more, the Office would conduct
an assessment of the possible impact on human rights that implementation
of the project could have. Prior to the approval of such projects,
the office would share its report with the President of the United States,
the House Financial Services Committee and the Committee on Banking, Housing,
and Urban Affairs of the Senate, as well as management at the Bank.
“In
considering the proposed transaction, the report would consider several
important factors, including the possible effects of the project on:
“Internationally-recognized
labor rights, religious freedom, displacement of indigenous populations,
possible social unrest, capacity of the local government to uphold international
human rights standards, freedom of expression, assembly and association,
treatment of ethnic minorities, and treatment and rights of women in the
affected country.
“This
amendment is modest. It will not change the role of the State Department
or prevent State from weighing in on proposed projects. And it will
not make it difficult for projects to be approved. It will add a
needed level of political risk assessment that will benefit Ex-Im and U.S.
businesses and will demonstrate that the United States is as committed
to promoting human rights as it is to promoting corporate profits.
“The
work of the Office would not change the current authority of the State
Department or the Bank. Establishment of the Office would create
a mechanism that currently does not exist. The office would have
the capacity to evaluate possible transactions on a project-by-project
basis-identifying possible problems before they occur and creating an opportunity
for them to be prevented during the project design phase.
“The
office would utilize input from those with expertise in the affected country,
human rights experts, and personnel at the State Department to develop
the report, which would increase prospects for the long-term success of
Ex-Im. The Office would not have the authority to cancel projects.
It would provide a needed middle ground between the only two currently
available determinations-project financing or project cancellation.
By including input from organizations that are committed to human rights,
the Bank would be protected from criticism and would be able to move forward
in creating export opportunities for U.S. companies with an increased level
of confidence in project success and loan repayment.
“Currently,
Ex-Im employs 14 full-time staff in its environment and engineering division,
and one of those individuals is completely devoted to environmental assessments.
I believe that the United States should demonstrate a commitment to human
rights that is at least level with what we do to protect the environment.
“There
are past and current cases where an assessment could have been useful.
“In
the case of the Dabhol Power project in India, U.S. government officials
consistently lobbied the Indian government heavily on behalf of the companies.
“Demonstrations
and police reprisals occurred in 1993-1994, but the Enron/Dabhol power
project was approved without any consideration for those incidents.
An Office of Human Rights Impact Assessment could have prevented violations
in 1996-98 because safeguards could have been built into the loan guarantees.
“The
Dabhol project is just one example, I have with me a briefing paper that
was sent to each member’s office by Human Rights Watch. The paper
documents current projects in Russia, Uzbekistan, and Angola that could
have benefited from an assessment prior to project approval.
“Again,
this is a modest but necessary measure that will demonstrate the strong
commitment to human rights that I know all members of this Subcommittee
share. I urge all members to support this amendment.” |