A Role for the International Finance Corporation in Intergrating Environmental and Human Rights Standards into Core Project Covenants: Case Study of the Baku-Tbilisi-Ceyhan Oil Pipeline Project

TRANSNATIONAL CORPORATIONS AND HUMAN RIGHTS, Oliver DeSchutter, ed., Hart Publishing, 2006

Global Law Working Paper 01/05

41 Pages Posted: 18 Dec 2009 Last revised: 8 Sep 2013

See all articles by Terra Lawson-Remer

Terra Lawson-Remer

The New School Graduate Program in International Affairs; United Nations - World Institute for Development Economics Research (UNU/WIDER); New York University

Date Written: 2006

Abstract

The purpose of this paper is to argue that the International Finance Corporation (the member of the World Bank Group responsible for financing private-sector projects) can and should require inclusion of commitments regarding sustainable development and human rights in the legal covenants that often govern large private-sector investments. The Baku-Tbilisi-Ceyhan Pipeline Project illustrates both the risk of States being pressured by foreign investors wishing to obtain government guarantees that insulate their investment from risk, and the potential role multilateral lending institutions might play in limiting the detrimental effects of such imbalance in bargaining power. In this paper I explore the relationship (or lack thereof) between the legal framework underlying the Baku-Tbilisi-Ceyhan (BTC) oil pipeline project and the International Finance Corporation, and argue that the IFC would more effectively further its purported mission of promoting environmentally and socially sustainable development by requiring this legal framework to be compatible with the effective enforcement of evolving international environmental and human rights norms.

Keywords: International Finance Corporation, BTC Pipeline, Human Rights, Environment, Corporate Social Responsibility, Legal, Multilateral

JEL Classification: K12, K32, K33, O1, Q2, Q3, Q4

Suggested Citation

Lawson-Remer, Terra, A Role for the International Finance Corporation in Intergrating Environmental and Human Rights Standards into Core Project Covenants: Case Study of the Baku-Tbilisi-Ceyhan Oil Pipeline Project (2006). TRANSNATIONAL CORPORATIONS AND HUMAN RIGHTS, Oliver DeSchutter, ed., Hart Publishing, 2006. Available at SSRN: https://ssrn.com/abstract=1524854

Terra Lawson-Remer (Contact Author)

The New School Graduate Program in International Affairs ( email )

66 W. 12th Street
New York, NY 10011
United States

United Nations - World Institute for Development Economics Research (UNU/WIDER) ( email )

Katajanokanlaituri 6B
Helsinki, FIN-00160
Finland

New York University ( email )

New York, NY
United States

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