Human Rights Due Diligence and Foreign Direct Investmentin Ethiopia: The Case of Labour Rights in Textile and Garmentsector At Bole Lemi Industrial Park
No Thumbnail Available
Date
2016-05
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa,University
Abstract
FDI is one of the main engines for economic development of a country. The possible developmental benefits out of FDI includes employment creation, the development of human capital, the implementation of internationally acceptable codes of employment practice, improving the access of the host economy to world markets. The sum of these in effect results in boosting the economy of capital receiving state. Through by way of such investments many international trade companies do their business all over the world including our country. At first look, investment activities present opportunities for business and profit, but do not immediately bring to mind having positive human rights impacts. In some circumstances, Foreign Direct Investments does not always bring positive impacts with regards to human rights. These cases are very evident when it comes to developing countries to which our country is a great example. Where, as a result, undesirable consequences are being followed such as forced eviction of indigenous peoples, unfair labour practices including forced child labour, discrimination against certain types of individuals, failing to provide safe and healthy working conditions, repressing trade unions, discouraging the right to bargain collectively and environmental pollution. This in turn will have contribution to the failure of social and economic development of a society. This takes us to case of business and human rights. This issue became permanently implanted on the global policy agenda in the 1990s, reflecting the dramatic worldwide expansion of the private sector at the time, coupled with a corresponding rise in transnational economic activity. These developments heightened social awareness of businesses’ impact on human rights and also attracted the attention of the United Nations which has resulted in the endorsement of the United Nations Guiding Principles on Business and Human Rights in the year 2011 following its Protect, Respect and Remedy Frame work. Such international standards advocates for the conduct of adequate Human Rights Due Diligence by business enterprises in a way clearly stating that business corporates also do have a responsibility to respect human rights.
Ethiopia is one of the fast growing countries. Foreign direct investment plays a vital role in the country’s economic development through creating wealth and job opportunity. Through this way foreign investment by transnational corporations many investors are running their business in many industrial parks. Labour rights treatment in industrial parks are known to be not sound enough to be respected.
Description
Keywords
UNGP, MNC, TNC, Globalization, Human Rights Due Diligence,