Human Rights and poverty


June 2023

Poverty a key element in depriving people of their rights

One of the criticisms of human rights and those who seek to promote them is the proliferation of what is regarded as a ‘right’. One such critic is Prof Eric Posner who has argued that the numbers and proliferation of rights makes them less and less effective. Others have joined in including the current Home Secretary who cites Posner in her various criticisms of human rights and how they are applied in the UK. On examination, much of what is termed ‘proliferation’ is in reality a refinement of a basic right often in the light of current circumstances. The world of social media and electronic communications with its contingent threat to the rights of individuals due to increased surveillance by states and others, would not have been anticipated by the drafters of the UN Declaration after the war. Increasing corporate power and globalisation has enable firms to move or outsource their manufacturing operations to countries with limited or no regard to the rights of their workers.

In its summer 2023 magazine, Amnesty International focuses on poverty as a key human rights issue. As James Griffin notes in his book On Human Rights (OUP, 2008) rights have little value unless people have the means to exercise them. Article 17 gives people the right to own property for example which is of little significance to those unable to get a mortgage, increasingly a concern for young people today. The government’s own statistics on poverty paint a dire situation in what, after all, one of the richest countries in the world. 11 million are in relative poverty before housing costs and 14.4 million after housing costs and there are 2.9 million children in poverty according to the report. We can argue about definitions (and these are explained in the report) but the fact remains that those who cannot afford to eat three meals a day and have to resort to food banks, who live precarious lives with low paid, uncertain jobs, or on zero hours contracts, are not going to be able to exercise many of their rights. Poverty is thus a key underlying factor.

It is one of the problems of a legally based system of rights. The law is only of comfort to those who can afford to gain access to it. For the vast majority it is expensive, extremely uncertain and of little direct value. Tackling poverty means addressing the ideas and politics which are the root causes of the problem.

Amnesty is part of a group ‘The Growing Rights Instead of Poverty Partnership GRIPP. In a report it says ‘[It] reveals how the UK government has created a system that keeps communities poor, ill, divided and isolated then blames them for the conditions they are living in.’ It was submitted to the UN Committee on Economic, Social and Cultural Rights (CESCR). The government would argue that they have introduced a variety of schemes to tackle poverty but fact remains that very large numbers of people are struggling. Recent rises in food prices – which hit the poorest the hardest as they spend a large proportion of their budget on food – rising interest rates and energy prices will have made matters worse for many. Article 25 of the UN Declaration says that ‘everyone has the right to a standard of living adequate for health and wellbeing.’

What is clear about poverty in the UK is how regionally disbursed it is. There are extremely prosperous areas and by contrast, large areas and numbers of communities where there is widespread deprivation. No one can argue that all those in such areas are somehow deficient or are responsible for their collective disadvantage. Clearly it is a systemic issue and a matter of political will or lack of it. Politicians have spoken about the problem and action has been promised, most recently with the levelling up programme. It does not seem to make a difference. The result is a significant number of people and shamefully, young people, who for no fault of their own, have significantly reduced life chances, health outcomes and opportunities mostly to do with poverty.

Poverty is thus a key factor in individual’s ability to secure a range of rights which, for the more prosperous, is taken for granted.

Tax avoidance and human rights


November 2017

Paradise Papers the latest to shine a light on the multi-billion pound avoidance industry

The publication of the Paradise Papers which have revealed yet more insights and names of those engaged in the murky world of massive tax avoidance, has so far stayed clear of discussing the human rights angle to this activity.  A letter in today’s Guardian newspaper, written jointly by Helena Kennedy and Hans Corel, draws attention to this particular aspect.  The huge outflow of resources from the developing world means governments are starved of the resources to tackle poverty, improve their health and education systems and to upgrade infrastructure generally.  A staggering $859bn was lost in 2010 and the cumulative loss between 2001 and 2010 amounted to $5.86trn *.  It often comes a surprise to people when it is pointed out for example that Africa, taken as a whole, is a net creditor to the rest of the world.  This is a combination of corruption, resource extraction and tax avoidance.  So while aid is paid into the country, more money flows out because of tax avoidance and criminal activity.

The Paradise Papers follows on from other leaks including the Panama Papers, Lux leaks and others which exposes the scale of the perfectly legal tax avoidance industry and names some of those involved.  These have included the Queen’s Duchy of Lancaster estate, Prince Charles and a slew of celebrities, media and sports people.  Several said they did not know this was being done in their name.

The letter draws attention to a report prepared by the International Bar Association in 2013.  This 262 page report examines exhaustively the nature of this activity and came before some of the recent revelations.  The key question for us is the link between this activity and human rights and the report discusses this in detail since it is not entirely direct.  In the report is says:

Most stakeholders tended to agree that there is an important distinction between labelling tax abuses as ‘legal violations of human rights’ versus stating that tax abuses have ‘negative impacts on human rights’.  Depending on the scope and scale of the tax abuses, they might have a significant impact on human rights.  As one tax authority expressed it: ‘What do we need to fulfill economic, social and cultural rights?  Resources including taxes.  Therefore, tax abuses are clearly a human rights issue when massive amounts are lost from State revenues.’ p96

To the extent that tax abuses have an impact on poverty and that poverty has an impact on human rights, as outlined above, it is possible to make a connection between tax abuses and human rights.  Most simply put, tax abuses deprive governments of the resources required to respect, promote and fulfil human rights. More dramatic examples of human rights impacts can be imagined when you juxtapose the billions of dollars that are said to be flowing out of developing countries with the comparatively small amounts that are required to lift individuals, families and communities out of the most extreme forms of poverty. p103

In a summary on p148  they say:

Human rights have not often been part of the global debate about tax matters. However, a human rights analysis can strengthen our understanding of poverty and development, as well as reinforce our determination to confront tax abuses.  In the recently adopted UN Guiding Principles on Extreme Poverty and Human Rights, the UN Special Rapporteur on Extreme Poverty and Human Rights describes how extreme poverty is connected as a cause or consequence of violations of numerous human rights, including all the key human rights principles − ranging from the right to life, the right to food, the right to health, the right to education, the right to social security and principles of non-discrimination, participation, transparency and accountability.

Simply put, tax abuses deprive governments of the resources required to provide the programmes that give effect to economic, social and cultural rights, and to create and strengthen the institutions that uphold civil and political rights.  Actions of states that encourage or facilitate tax abuses, or that deliberately frustrate the efforts of other states to counter tax abuses, could constitute a violation of their international human rights obligations, particularly with respect to economic, social and cultural rights.  p148  Our italics

It is important to recognise therefore that this is not a victimless activity.

The City of London is a key player in the avoidance industry and is surrounded by a worldwide network of islands which have secrecy in one form or another as part of their appeal to international corporations, rich individuals, criminals and despotic governments.  These include the Isle of Man, Jersey, British Virgin Islands, and several more.

The report also devotes space to non-state actors and in particular the international corporations such as Apple, Amazon, Starbucks and several others.  These are able to move funds between one jurisdiction and another employing various legal techniques such as ‘The Swiss Role’ ‘Going Dutch’ and Thinning on Top’.  Apple featured most strongly in the latest revelations.


For those who would like to read the report in full it can be accessed from this link.  Full report

*586 000 000 000 000 US dollars

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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