Notes to United Nations Global Compact Expert Group on Investment in Conflict-Affected Countries, Meeting 5

Nicholas is a founding member of the United Nations Expert Group on Business and Investment in Conflict-Affected and High-Risk Areas.

By Nicholas A.J. Taylor

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I attach two documents: my comments on the guidance note, along with a few additional resources for the ‘tools’ section. In sum, I believe this is shaping up well after the last round.  However I make three recommendations:

1.  the language and content in the introduction is, at times, problematic.  Opportunities are elevated to such an extent that the purpose of the document is being lost.  For instance, there are significant negative impacts commerce can have in operating in conflict-affected and high-risk areas, and this is no longer acknowledged in the opening.  We advocate ‘engagement’ over divestment, however this is unrealistic in many contexts (e.g. when dealing with corrupt or violent regimes) and signifies a level of advice the expert group are unable, in addressing a broad issues such as this, to provide.

2.  we must explicitly link our work to that of Professor Ruggie’s ‘protect, respect and remedy’ framework.  The section where we discuss ‘responsibilities’ is not entirely in keeping with the latest thinking, and might more clearer distinguish between legal and moral norms.  That is, states (not governments) have legal responsibilities, however business entities may also have legal responsibilities based on the application of international law as well as the development of national law.  In addition, both states and business may consider the moral responsibilities they may have in such situations – which given the descriptive norms we are formulating here, is a useful point to make clear as we have begun to attempt in the introduction.

3.  we mention ‘risks’ a number of times throughout, but are not clear whether we mean financial risks, legal risks, risks in contributing to the rise of conflict, etc.  We must be very clear when using the word ‘risk’ as it has multiple meanings in this context.  I suggest, especially in the opening, that we outline what ‘risks’ there are: covering the business, the legal, the social,… perhaps signaling those that we will focus on in the remainder of the report.

The guidance note is expected to be launched 24/25 June at the United Nations Global Compact Leaders’ Summit to be held in New York.  [+]