Who really benefits from economic development? Experts say human rights needs to be priority

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A new study by the University of Portsmouth calls for human rights to be at the heart of any economic development.

Published in the Business and Human Rights Journal, the study by Professor Leïla Choukroune and Dr. Lorenzo Cotula critically examines how international investment deals and dispute settlements often overlook the voices of local communities and indigenous peoples, prioritizing economic growth over inclusive and sustainable development.

The researchers highlight how international investment law predominantly supports a model of development centered on economic growth and market integration, sidelining alternative perspectives that emphasize cultural, environmental, and social sustainability.

Leïla Choukroune is Professor of International Economic Law and Director of the upcoming Global Justice and Rights Center of Excellence. She says, “From Colombia to Peru, Nigeria to Indonesia, large investment projects have raised urgent questions about who really benefits from ‘development.’ These projects frequently cause harm to local communities, including environmental degradation, displacement, and human rights violations.”

Recent examples include:

• Colombia: The protection of the Paramos high-mountain ecosystems, vital for water production and biodiversity, faces challenges from mining interests.
• Peru: Indigenous leaders have been criminalized for protesting against extractive projects, as seen in the case of the Bear Creek mining investment.
• Nigeria: Oil spills and pollution from Shell have devastated local communities, leading to unprecedented global legal battles over corporate accountability.
• Indonesia: Communities have sought justice for human rights abuses tied to major corporations, such as ExxonMobil’s recent settlement in a long-running torture case.

Professor Choukroune explains, “By connecting human rights and development in immediate terms, ongoing discussions about the right to development can provide an arena to center ‘peoples’ as the key actors in development processes. But this shift would also require ensuring that the wider frameworks of international economic law recognize and provide space for plural notions of development.”

The study aligns with the UN’s efforts to elevate the “right to development” by pushing for a legally binding treaty that prioritizes equality, human rights, and respect for natural resources. This treaty seeks to shift the focus of development from nations to “peoples,” ensuring that those most affected by investment projects—local communities and indigenous peoples—are included in the decision-making process.

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Professor Choukroune says, “It is critical that any treaty agreed reflects the broader aspirations of local and indigenous communities, who often face environmental harm, land loss, and insufficient consultation. The international rules governing foreign investment embody a notion of development that tends to prioritize economic considerations, against the rights of ‘peoples’ who articulate development in different terms.”

The study emphasizes the following critical areas:

• Balancing economic growth with local and cultural development for economic, environmental and social sustainability.
• Recognizing indigenous rights in large international investments such as free, prior, and informed consent.
• Creating legal frameworks that support diverse development visions.
• Supporting access to adequate and efficient remedies for local communities and all stakeholders involved in international investments.

As global inequalities widen, the UK’s human rights performance will soon be reviewed by the United Nations. This highlights the pressing need to reconsider how development is defined and who benefits from it.

The research argues that integrating human rights into international economic law can pave the way for fairer, more sustainable, and inclusive outcomes, ensuring development works for all, especially the most vulnerable.

More information:
Leïla Choukroune et al, ‘Local Communities’ and the Development Conundrum: Where International Investment Law Meets Human Rights and Businesses, Business and Human Rights Journal (2024). DOI: 10.1017/bhj.2024.22

For more information on the UN’s proposed treaty on the “right to development,” visit UN OHCHR.

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University of Portsmouth

Citation:
Who really benefits from economic development? Experts say human rights needs to be priority (2025, January 13)
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