Hostname: page-component-78c5997874-4rdpn Total loading time: 0 Render date: 2024-11-13T09:09:54.476Z Has data issue: false hasContentIssue false

RECONSTRUCTING STATE OBLIGATIONS TO PROTECT AND FULFIL SOCIO-ECONOMIC RIGHTS IN AN ERA OF MARKETISATION

Published online by Cambridge University Press:  28 September 2021

David Birchall*
Affiliation:
Lecturer in Law, London South Bank University, birchald@lsbu.ac.uk.

Abstract

States hold international human rights obligations to protect rights-holders from infringements by third parties and to fulfil access to rights. States also increasingly rely on businesses to provide essential human rights resources, including for housing, food, and healthcare. How these obligations apply where States rely on businesses has not been adequately conceptualised, particularly regarding the scope of business infringements in this context, and how the obligation to fulfil relates to market regulation. The Committee on Economic, Social and Cultural Rights has not directly addressed these questions, but recent General Comments develop ambitious regulatory obligations in this area. However, their methodology is questionable, often collapsing the distinction between obligations to protect and to fulfil. This article reconstructs the obligations to provide distinct content under each. It delineates State duties to protect from profiteering and to fulfil human rights through market regulation. It concludes by arguing that this reconstruction may challenge central aspects of globalised capitalism based on the human rights harm inherent therein.

Type
Shorter Articles
Copyright
Copyright © The Author(s), 2021. Published by Cambridge University Press for the British Institute of International and Comparative Law

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

1 See generally: De Feyter, K and Isa, F Gómez (eds), Privatisation and Human Rights in the Age of Globalisation (Intersentia 2005)Google Scholar; see on some specific human rights: O'Connell, P, ‘The Human Right to Health in an Age of Market Hegemony’ in Harrington, J and Stuttaford, M, Global Health and Human Rights (Routledge 2010)Google Scholar; MacNaughton, G and Frey, DF, ‘Decent Work for All: A Holistic Human Rights Approach’ (2010) 26 American University International Law Review 441Google Scholar; Akers, J et al. , ‘Liquid Tenancy: ‘‘Post-Crisis’’ Economies of Displacement, Community Organizing, and New Forms of Resistance’ (2019) 1(1) Radical Housing Journal 1CrossRefGoogle Scholar.

2 Lubienski, C, ‘Privatising Form or Function? Equity, Outcomes and Influence in American Charter Schools’ (2013) 39 Oxford Review of Education 498, 502–4CrossRefGoogle Scholar.

3 Callaghan, H, ‘Who Cares about Financialization? Self-Reinforcing Feedback, Issue Salience, and Increasing Acquiescence to Market-Enabling Takeover Rules’ (2015) 13 Socio-Economic Review 331, 333–4CrossRefGoogle Scholar.

4 IE Koch, ‘Dichotomies, Trichotomies or Waves of Duties?’ (2005) 5 HRLRev 81.

5 International Covenant on Economic, Social and Cultural Rights (adopted 16 December 1966, entered into force 3 January 1976) 993 UNTS 3 (ICESCR).

6 See, for example, on housing: Human Rights Council, ‘Report of the Special Rapporteur on adequate housing as a component of the right to an adequate standard of living, and on the right to non-discrimination in this context: The Financialization of housing and the right to adequate housing’ (18 January 2017) UN Doc A/HRC/34/51, paras 34–7 (hereinafter UNSR, Financialization).

7 CESCR, ‘General comment No. 24 (2017) on State obligations under the International Covenant on Economic, Social and Cultural Rights in the context of business activities’ (10 August 2017) UN Doc E/C.12/GC/24, para 17 (hereinafter General Comment 24, Business).

8 ibid paras 21 and 24; A Nolan, ‘Privatization and Economic and Social Rights’ (2018) 40 HumRtsQ 815, 818 (Nolan, Privatization). Nolan highlights the limited use of the obligation to fulfil in General Comment 24 and makes the important point that a State decision to privatise an essential service necessitates that fulfil obligations become relevant to that private actor and the regulation thereof. The argument herein builds on this perspective.

9 ibid para 37; Darcy, S, ‘The Elephant in the Room’: Corporate Tax Avoidance & Business and Human Rights’ (2017) 2 Business and Human Rights Journal 1CrossRefGoogle Scholar.

10 O De Schutter et al., ‘Commentary to the Maastricht Principles on Extraterritorial Obligations of States in the Area of Economic, Social and Cultural Rights’ (2012) 34 HumRtsQ 1084.

11 SL Seck, Moving beyond the E-word in the Anthropocene’ in DS Margolies et al. (eds), The Extraterritoriality of Law (Routledge 2019) 49.

12 A Davis, ‘Masked Racism: Reflections on the Prison Industrial Complex’ (2000) 4.27 Indigenous Law Bulletin 4, 6–7.

13 OHCHR, Guiding Principles on Business and Human Rights (United Nations 2011) (hereinafter Guiding Principles). The author has published on the direct business responsibilities in relation to marketised rights. See Birchall, D, ‘Any Act, Any Harm, to Anyone: The Transformative Potential of “Human Rights Impacts” under the UN Guiding Principles on Business and Human Rights’ (2019) 1 University of Oxford Human Rights Hub Journal 120Google Scholar; Birchall, D, ‘Irremediable Impacts and Unaccountable Contributors: The Possibility of a Trust Fund for Victims to Remedy Large-Scale Human Rights Impacts’ (2019) 25 AJHR 428Google Scholar.

14 Ennser-Jedenastik, L, ‘Credibility Versus Control: Agency Independence and Partisan Influence in the Regulatory State’ (2015) 48 Comparative Political Studies 823CrossRefGoogle Scholar.

15 And see on the evolving nature of marketisation: McGimpsey, I, ‘Late Neoliberalism: Delineating a Policy Regime’ (2017) 37 Critical Social Policy 64, 75–7CrossRefGoogle Scholar.

16 Waldron, R, ‘Capitalizing on the State: The Political Economy of Real Estate Investment Trusts and the ‘‘Resolution’’ of the Crisis’ (2018) 90 Geoforum 206CrossRefGoogle Scholar.

17 Verkuil, P, Outsourcing Sovereignty: Why Privatization of Government Functions Threatens Democracy and What We Can Do about It (Cambridge University Press 2007)CrossRefGoogle Scholar; Hood, C and Dixon, R, A Government That Worked Better and Cost Less? Evaluating Three Decades of Reform and Change in UK Central Government (Oxford University Press 2015)CrossRefGoogle Scholar.

18 Discussed in Wettstein, F, Multinational Corporations and Global Justice: Human Rights Obligations of a Quasi-Governmental Institution (Stanford University Press, CA 2009) 174–9Google Scholar.

19 Tombs, S and Whyte, D, ‘Transcending the Deregulation Debate? Regulation, Risk, and the Enforcement of Health and Safety Law in the UK’ (2013) 7 Regulation & Governance 61, 74–5CrossRefGoogle Scholar.

20 Stephens, M, ‘Mortgage Market Deregulation and Its Consequences’ (2007) 22 Housing Studies 201CrossRefGoogle Scholar.

21 Harvey, D, ‘Neoliberalism as Creative Destruction’ (2007) 610 The Annals of the American Academy of Political and Social Science 21, 30–2CrossRefGoogle Scholar.

22 Loretz, S, ‘Corporate Taxation in the OECD in a Wider Context’ (2008) 24 Oxford Review of Economic Policy 639CrossRefGoogle Scholar.

23 See generally Thrift, N, ‘Re-inventing Invention: New Tendencies in Capitalist Commodification’ (2006) 35 Economy and Society 279CrossRefGoogle Scholar.

24 Greer, I, ‘Welfare Reform, Precarity and the Re-commodification of Labour’ (2016) 30 Work, Employment and Society 162CrossRefGoogle Scholar.

25 Nolan, Privatization (n 8) 818.

26 Hodge, G, Privatization: An International Review of Performance (Routledge 2018) 6CrossRefGoogle Scholar (Hodge, Privatization).

27 Rolnik, R, ‘Late Neoliberalism: The Financialization of Homeownership and Housing Rights’ (2013) 37 International Journal of Urban and Regional Research 1058, 1059–60CrossRefGoogle Scholar.

28 Birchall, D, ‘Human Rights on the Altar of the Market: The Blackstone Letters and the Financialisation of Housing’ (2019) 10 Transnational Legal Theory 446CrossRefGoogle Scholar.

29 Chadwick, A, ‘Regulating Excessive Speculation: Commodity Derivatives and the Global Food Crisis’ (2017) 66 ICLQ 625CrossRefGoogle Scholar.

30 Jongbloed, B, ‘Marketisation in Higher Education, Clark's Triangle and the Essential Ingredients of Markets’ (2003) 57 Higher Education Quarterly 110, 114–15CrossRefGoogle Scholar.

31 Leijten, I and Bel, K de, ‘Facing Financialization in the Housing Sector: A Human Right to Adequate Housing for All’ (2020) 38 NQHR 94Google Scholar.

32 On wages, see below. On private health insurance: Dickman, SL, Himmelstein, DU and Woolhandler, S, ‘Inequality and the Health-Care System in the USA’ (2017) 389(10077) The Lancet 1431CrossRefGoogle ScholarPubMed.

33 GM Dery III, ‘Trading Privacy for Promotion? Fourth Amendment Implications of Employers Using Wearable Sensors to Assess Worker Performance’ (2020) 16 Northwestern Journal of Law & Social Policy 17.

34 S McKay et al, ‘Study on precarious work and social rights’ (Study VT/2010/084 carried out for the European Commission by the Working Lives Research Institute, April 2012) 5.

35 P Bourquin et al., ‘Why Has In-Work Poverty Risen in Britain?’ (2019) Institute of Fiscal Studies Working Paper W19/12, 12 <https://www.ifs.org.uk/publications/14154>.

36 ‘Latest figures on Homelessness in Ireland’ (Focus Ireland) <https://www.focusireland.ie/resource-hub/latest-figures-homelessness-ireland/>.

37 Fitzpatrick, S and Pawson, H, ‘Fifty years since Cathy Come Home: Critical Reflections on the UK Homelessness Safety Net’ (2016) 16 International Journal of Housing Policy 543, 549CrossRefGoogle Scholar.

38 A Pittini et al., ‘The State of Housing in the EU 2019’ (Housing Europe, September 2019) 11. This adopts the OECD's 40 per cent income-housing costs ratio. Many jurisdictions set affordable housing at 30 per cent of income costs, including both the US and Canada. See ‘About Affordable Housing in Canada’ (Canada Mortgage and Housing Corporation, 31 March 2018) <https://www.cmhc-schl.gc.ca/en/developing-and-renovating/develop-new-affordable-housing/programs-and-information/about-affordable-housing-in-canada>; ‘Defining Affordable Housing’ (HUD USER) <https://www.huduser.gov/portal/pdredge/pdr-edge-featd-article-081417.html>.

39 UNSR, Financialization (n 6) para 27.

40 Shue, H, Basic Rights: Subsistence, Affluence, and US Foreign Policy (2nd edn, Princeton University Press, NJ 1996) 52Google Scholar (Shue, Basic Rights); This was applied directly to business, with the argument being that businesses have direct responsibilities only to ‘avoid depriving’, in Donaldson, T, The Ethics of International Business (Oxford University Press 1989)Google Scholar.

41 Shue, Basic Rights (n 40) 52.

42 UN Economic and Social Council, ‘The New International Economic Order and the Promotion of Human Rights—Report on the Right to Adequate Food as a Human Right Submitted by Mr. Asbjørn Eide, Special Rapporteur’ (7 July 1987) UN Doc E.CN.4/Sub.2/1987/23, para 66 (Eide, Report on Food).

43 ibid para 68.

44 ‘The obligation to respect requires the State, and thereby all its organs and agents, to abstain from doing anything that violates the integrity of the individual or infringes on her or his freedom, including the freedom to use the material resources available to that individual in the way she or he finds best to satisfy the basic needs.’ ibid para 67.

45 Discussed in Clapham, A, Human Rights Obligations of Non-State Actors (Oxford University Press 2006) 49CrossRefGoogle Scholar.

46 Maastricht Guidelines on Violations of Economic, Social and Cultural Rights (Maastricht 22–26 January 1997) para 6 (Maastricht Guidelines) <http://hrlibrary.umn.edu/instree/Maastrichtguidelines_.html>.

47 General Comment 24, Business (n 7) para 14.

48 Eide, Report on Food (n 42) para 68.

49 A Eide, ‘Human Rights and the Elimination of Poverty’ in A Kjønstad and JH Veit-Wilson (eds), Law, Power and Poverty (CROP Publishers 1997).

50 ICESCR (n 5).

51 Maastricht Guidelines (n 46) para 6.

52 General Comment 24, Business (n 7).

53 Duties to facilitate are usually cited in General Comments, see eg CESCR, ‘General comment No. 23 on the right to just and favourable conditions of work (article 7 of the International Covenant on Economic, Social and Cultural Rights)’ (7 April 2016) UN Doc E/C.12/GC/23, para 61.

54 General Comment 24, Business (n 7) 21–2.

55 ibid para 26.

56 ibid para 33.

57 ibid para 23.

58 ibid para 37.

59 See below for examples and see also Nolan, Privatization (n 8) 852–3.

60 General Comment 24, Business (n 7) para 21.

61 ibid para 24.

62 ibid para 19.

63 See, for similar blurred distinction, CESCR, ‘General Comment No. 18: The Right to Work (Article 6 of the International Covenant on Economic, Social and Cultural Rights)’ (6 February 2006) UN Doc E/C.12/GC/18, para 25 (protect) and para 36 (fulfil).

64 CESCR, ‘General Comment No. 12: The Right to Adequate Food (Art. 11)’ (12 May 1999) UN Doc E/C.12/1999/5, para 15 (CESCR, Food).

65 CESCR, ‘General Comment No. 22 (2016) on the right to sexual and reproductive health (article 12 of the International Covenant on Economic, Social and Cultural Rights)’ (2 May 2016) UN Doc E/C.12/GC/22, para 43.

66 ibid para 14.

67 ibid para. 17.

68 This framing is borrowed from the UNGPs (n 13) Principle 13.

69 General Comment 24, Business (n 7) para 15.

70 ibid para 18.

71 ibid para 19.

72 ibid para 19.

73 General Comment 23 (n 53) para 59.

74 ibid para 61.

75 J Lee and A Smith, ‘Regulating Wage Theft’ (2019) 94 WashLRev 759.

76 ibid 767.

77 CESCR, ‘General Comment No. 4: The Right to Adequate Housing (Art. 11 (1) of the Covenant)’ (13 December 1991) UN Doc E/1992/23, para 8.

78 Birchall, D, ‘Challenging the Commodification of Human Rights: The Case of the Right to Housing’ (2021) 19 Santa Clara Journal of International Law 1Google Scholar.

80 See on some human rights impacts of private equity investments: Appelbaum, E, Batt, R and Clark, I, ‘Implications of Financial Capitalism for Employment Relations Research: Evidence from Breach of Trust and Implicit Contracts in Private Equity Buyouts’ (2013) 51 British Journal of Industrial Relations 498CrossRefGoogle Scholar; E Appelbaum and R Batt, ‘Private Equity Buyouts in Healthcare: Who Wins, Who Loses?’ (2020) Institute for New Economic Thinking Working Paper Series 118.

81 CESCR, ‘General Comment No. 14: The Right to the Highest Attainable Standard of Health (Art. 12)’ (11 August 2000) UN Doc E/C.12/2000/4, para 35.

82 Discussed further in Birchall, D, ‘Corporate Power over Human Rights: An Analytical Framework’ (2021) 6 Business and Human Rights Journal 42, 56–8CrossRefGoogle Scholar.

83 General Comment 24, Business (n 7) para 21.

84 Nolan, Privatization (n 8) 835.

85 General Comment, Health (n 81) para 36.

86 Genera Comment, Sexual Health (n 65) para 17.

87 This bears a similarity to the functional approach to human rights jurisdiction, see: Shany, Y, ‘Taking Universality Seriously: A Functional Approach to Extraterritoriality in International Human Rights Law’ (2013) 7 Law and Ethics of Human Rights 47, 56CrossRefGoogle Scholar.

88 In the UK, water suppliers are not permitted to shut off water for non-payment, suggesting an obligation to fulfil the right, Water Industry Act 1999, art 61, section 4.A.

89 Discussed critically in Hsieh, N, ‘Should Business Have Human Rights Obligations?’ (2015) 14 Journal of Human Rights 218CrossRefGoogle Scholar. Positive obligations are supported in Wettstein, F, ‘From Causality to Capability: Towards a New Understanding of the Multinational Corporation's Enlarged Global Responsibilities’ (2005) 19 Journal of Corporate Citizenship 105Google Scholar; Wettstein, F, ‘CSR and the Debate on Business and Human Rights: Bridging the Great Divide’ (2012) 22 Business Ethics Quarterly 739, 757–60CrossRefGoogle Scholar.

90 See for the most ambitious attempt to do just this: Wettstein, Global Justice (n 18) 311–47, and particularly for the purposes herein: 322–3 on multinationals such as agribusiness; 325 on privatisation; 328–33 on ‘global public goods’.

91 Maastricht Guidelines (n 46) para 6.

92 Eide, Report on Food (n 42) paras 71–2.

93 Explored in distinctive ways in Sen, A, ‘Human Rights and the Limits of Law’ (2005) 27 CardozoLRev 2913Google Scholar; Makau, MHuman Rights and Powerlessness: Pathologies of Choice and Substance’ (2008) 56 BuffLRev 1027, 1028Google Scholar; Dehm, J, ‘“A Pragmatic Compromise between the Ideal and the Realistic”: Debates over Human Rights, Global Distributive Justice and Minimum Core Obligations in the 1980s’ in Christiansen, C (ed), Histories of Global Inequality (Palgrave Macmillan 2019) 157Google Scholar.

94 D Gayle, ‘Private landlords get £9.3bn in housing benefit from taxpayer, says report’ The Guardian (20 August 2016) <https://www.theguardian.com/society/2016/aug/20/private-landlords-9bn-housing-benefit-taxpayers-national-housing-federation-report>.