A/HRC/22/42 chances of detection and therefore increases the likely returns”.59 If parts of the political elite are able or willing to accumulate wealth through illicit outflows, economic inequalities are exacerbated and incentives to strengthen tax agencies, investigatory powers of police services, the independence of the judiciary and public audit services are low. This is in particular a problem in developing countries that face resource constraints in establishing well-equipped and independent institutions to address such complex issues like transfer mispricing. 50. It is important that asset recovery efforts are viewed as part of several efforts that States must make in order to comply with their human rights obligations. As the OHCHR study on the subject underscores, these “obligations apply to both countries of origin and recipient countries of funds of illicit origin due to the principle of international cooperation and assistance towards the realization of human rights, particularly economic, social, and cultural rights” (A/HRC/19/42, para. 24). 51. In addition, a human rights approach to asset recovery has to consider policy implications relating to the use of returned illicit funds. The StAR Initiative has pointed out that the use of returned assets is the sovereign decision of the country that recovers its stolen property. However, in a study on the management of returned assets, it has concluded that “countries that have embraced a policy of openness and transparency in the design of arrangements for the management of returned assets have benefitted from this approach”.60 52. The Independent Expert supports this view. In his estimation, respect for and adherence to the human rights principles of transparency, accountability and participation is a critical factor in ensuring the prudent use of repatriated illicit funds. He further endorses the view advanced in the OHCHR study that “decisions over resources allocation cannot be made behind closed doors, but publicly and openly, with due attention to civil society‟s demands. In some cases, lack of transparency and participation in the allocation decisions can end up in the use of the recovered assets to ends different from those sought by human rights principles” (A/HRC/19/42, para. 30). As the study underscored, since “recovered resources are not foreseen or public income included in the budget, States must allocate them in accordance with their obligation to devote the maximum of available resources to the fulfilment of economic, social, and cultural rights. This is the starting point with regards to the measures that must be taken with repatriated funds” (ibid., para. 28.) 53. It is worth noting in this regard that the Special Rapporteur on the right to education has recently stressed that the restitution of illicit funds frozen by the European Union would provide Tunisia with an opportunity to ensure and improve the realization of the right to education.61 In transitional countries, returned illicit assets may also help States to fulfil their obligations to provide reparation to victims of human rights violations of a previous regime.62 While not a comprehensive solution to the problem of financing transitional justice initiatives and reparation programmes, recovered assets have for example been used in Peru for anti-corruption and transitional justice measures, including truth-seeking and 59 60 61 62 18 Mick Moore, “The Practical Political Economy of Illicit Flows” in Peter Reuters (ed.), Draining Development, p. 474. StAR Initiative, Stolen Asset Recovery – Management of returned assets: Policy considerations (Washington, D.C., 2009), p. xi. Special Rapporteur on the right to education, “Restitution de fonds à la Tunisie: une chance unique pour l‟éducation”, News Release, 21 December 2012. Available from www.ohchr.org/EN/NewsEvents/Pages/DisplayNews.aspx?NewsID=12907&LangID=E. See OHCHR, Rule-of-law tools for Post-Conflict States: Reparations programmes (New York and Geneva, 2008). Available from www.ohchr.org/Documents/Publications/ReparationsProgrammes.pdf.