A/HRC/31/60 I. Introduction 1. Severe economic inequality frequently affects the enjoyment of particular civil, political or social, economic and cultural rights as well as the principle of nondiscrimination enshrined in all international human rights treaties. Human rights law imposes certain legal obligations on States to address economic inequalities affecting the enjoyment of human rights and bestows effectual guidance for reducing inequalities, including prioritization of policy responses in this field. Human rights mechanisms have therefore recently paid increased attention to economic inequality and human rights. 1 2. Furthermore, a better understanding of the negative effects of increased economic inequality on social development has recently emerged. For example, States have made reducing inequality within and among countries Goal 10 of the Sustainable Development Goals, which includes not only the promotion of the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status, but also the adoption of fiscal, wage and social policies to progressively achieve greater equality and better regulation of global financial markets and institutions. 3. Yet, there is one particular facet of inequality that has been frequently neglected: the linkages among economic inequality, financial crises and human rights. There is widespread acknowledgement that financial crises and adjustment programmes adopted in their response not only impair a country’s general economic performance, but also frequently increase inequality and have a negative impact on socioeconomic outcomes and particularly on vulnerable populations. However, the notion that inequality may also be an important contributing factor to the emergence of financial crises has only recently gained wider attention. In the present report, the Independent Expert on the effects of foreign debt and other related international financial obligations of States on the full enjoyment of all human rights, particularly economic, social and cultural rights, will offer reflections on both dimensions, exploring answers to the following questions: does inequality lead to more financial instability? Does financial instability lead to higher levels of inequality? What are the impacts on human rights of increased inequality? And, finally, what guidance does human rights law provide for addressing inequality? 4. In so doing, the report will be exclusively devoted to the relationship between human rights and economic inequality, and specifically income and wealth inequality. Hence, the term “inequality” employed in the report, unless otherwise qualified, should be understood as referring to these types of inequality. 2 1 2 See, for example, the report of the Special Rapporteur on extreme poverty and human rights (A/HRC/29/31). Moreover, while both income and wealth inequality relate to economic disparities, there are important differences between the two aspects. Inequality in wealth appears to be more pronounced in many countries and in the world generally. Policy responses designed to address wealth inequality on the one hand and income inequality on the other hand may differ. Therefore, the report clearly distinguishes between those two forms of inequality where necessary. However, if such distinction is not expressly made, then the term “inequality” encompasses both forms of economic inequality. 3