Human Rights in German Development Policy. Part 2: Implementation and Effectiveness of the Human Rights-Based Approach in the Area of Action "Private Sector and Financial System Development"

While the projects examined are almost fully implementing the requirements of the human rights-based approach with regard to the principle of transparency and dealing with human rights risks during the planning of projects, there is a particular need for improvement in three areas: the projects should consider more closely the human rights risks that might arise during implementation, establish grievance mechanisms more firmly, and act more systematically to mainstream opportunities for participation.

Although the projects examined contribute to a progressive realisation of decent work by indirectly supporting the creation or securing of employment opportunities, they hardly aim at fostering just and favourable working conditions in the sense of the right to work. Moreover, any human rights-related strengthening of rights-holders and duty-bearers is likewise hardly part of their agenda.

The implementing organisations should improve their quality assurance for implementing the human rights-based approach and to establish incentives for mainstreaming this approach. The BMZ should also integrate this approach into all key issue strategies. The BMZ should further develop a development cooperation-wide grievance system in a consultative process.

To this end, implementing organisations should develop reference models for realising human rights effects in projects. The BMZ should offer interchange formats in the partner countries for exchanging ideas and information to enable better leveraging of synergies between state, civil society and private-sector actors.