UN Expert Calls for Rights-Focused Reform of Global Financial System

Waris emphasised that international cooperation in financial matters should not be treated as voluntary generosity but as a legal obligation under international human rights law.

A United Nations human rights expert has called on governments to fundamentally reshape global financial governance, warning that rising debt burdens, weak tax systems and illicit financial flows are undermining countries’ ability to protect basic human rights.

Presenting her latest report to the UN Human Rights Council, the UN Independent Expert on foreign debt and human rights Attiya Waris urged Member States to reorient international financial cooperation toward what she described as “fiscal legitimacy” — a system where economic governance prioritises people and their rights rather than purely financial indicators.

International Assistance Is a Legal Duty

Waris emphasised that international cooperation in financial matters should not be treated as voluntary generosity but as a legal obligation under international human rights law.

“International assistance is a legal obligation, not an act of charity,” she said.

“It must be grounded in legality, transparency, accountability, efficiency, effectiveness, fairness and justice.”

She argued that global financial rules must be redesigned to ensure governments can maintain the minimum essential levels of economic, social and cultural rights, including access to healthcare, education and social protection.

Debt, Tax Failures and Illicit Flows Undermining Rights

The report highlights three major systemic problems weakening states’ capacity to deliver public services:

• Escalating sovereign debt burdens

• Failures in global tax governance

• Large-scale illicit financial flows draining public resources

Waris warned that these pressures are especially severe for developing countries, which often lose significant revenue through tax avoidance and capital flight while simultaneously facing growing debt repayments.

“Failures in global tax governance, escalating sovereign debt burdens, and unchecked illicit financial flows are eroding States’ ability to uphold minimum essential levels of economic, social and cultural rights,” she said.

Call for Global Tax Reform

To address structural inequalities in the international financial system, the expert called for the creation of a UN Framework Convention on International Tax Cooperation.

Such a framework would establish more equitable global tax rules, enabling countries to better protect their tax bases and prevent harmful tax competition.

Waris said global tax reform is critical to ensuring states have the resources needed to meet their human rights obligations.

New Approach to Sovereign Debt

The report also recommends rights-based sovereign debt restructuring mechanisms that ensure debt crises are resolved quickly and fairly.

Waris said debt restructuring processes should be:

• Timely

• Inclusive

• Consistent with international human rights standards

She also called for stronger international action to combat illicit financial flows, which disproportionately affect countries with limited fiscal capacity.

Reforming Global Financial Institutions

The UN expert urged International Financial Institutions (IFIs) such as the World Bank and the International Monetary Fund to reform their governance structures and policy frameworks.

Key recommendations include:

• Rebalancing voting power to better reflect the interests of developing countries

• Expanding grant-based financing instead of relying heavily on loans

• Integrating human rights impact assessments into financial programmes and policy advice

Waris said these reforms are necessary to address historical inequalities embedded within the global financial architecture.

“The current global financial architecture, shaped by historical inequities, too often extracts resources rather than enabling rights,” she said.

Putting Human Rights at the Centre of Global Finance

The report concludes that meaningful reform of the global financial system is essential to ensure economic policies support dignity and social justice.

“Transformational change is essential to place dignity, equity and human rights at the centre of global economic governance,” Waris said.

She urged governments and international institutions to take decisive steps to align global financial systems with the principles of fairness, accountability and human rights protection.