The economy of human rights

Purpose

Two studies have been elaborated, the first a literature study examining the interrelationship between four parameters and economic growth. The four analytical areas were Economic inequality, Human development, Effective institutions, and Conflicts and political instability. The literature study indicated a positive relationship between there four analytical areas and economic growth, but did not examine how human rights formed part of this relationship. In a second econometric study, the relationship between specific freedom and participation rights and economic growth is analysed.

The purpose is to throw light on whether human rights are not only a right way to engage in growth and development, but also a smart approach in this respect. The study examines: a. whether economic growth can be demonstrated empirically to reinforce human rights, or b. whether trade-offs exist between human rights reinforcement and economic growth, or c. whether positive relationships can be demonstrated empirically from human rights respect.

The difference we make

When observing change over a time horizon of 10-15 years, the analytical results so far indicates that freedom and participation rights contribute positively to economic growth. The results also indicate that there are no trade-offs between human rights respect and economic growth and that there is no significant causality between economic growth and human rights respect.

Partners

The second study has been discussed with colleagues at the University of Copenhagen, the National Bank in Denmark, and with colleagues at the World Bank and the IMF.