Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)

Abstract

Compatibility of the World Bank's Ease of Doing Business Index with UNGPs on Business and Human Rights

Author(s): Rully Sandra, Huala Adolf, Agus Mulya Karsona, R. Achmad Gusman Catur Siswandi

This article aims to analyse and refute one concern from the Government of Indonesia (GoI) that implementation of UNGPs on Business and Human Rights (BHR) might hamper the goal for Indonesia to be in the top 40 of Ease of Doing Business (EDB) rank. In particular, the article will analyse whether there are indications that BHR will create another barrier for EDB. The rebuttal is built from qualitative research which led to an exploratory study with data from interview, various secondary references related to BHR interpretation and implementation, human rights instruments, as well as the World Bank reports on EDB and Indonesia. We argue that, a growing global trend on BHR that cannot be ignored by EDB Index. Especially since EDB indicators have direct and indirect correlations with human rights. Furthermore, countries in the top 40 EDB ranks take BHR seriously and do not consider it as an obstacle. Thus, the authors would like to attest whether or not GoI concern is warranted. This article is relevant for further study the field of human rights, in particular on issues related to human rights responsibility of non-state actors, including International Finance Institutions. Although the study is specifically about Indonesia but the analysis might contribute to public policy discussion in other WB borrower countries that face the same dilemma. At the time of the writing, no similar efforts of finding linkages between UNGPs and EDB Index have been found.

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