Peace organisation PAX is one of the leading organisations in the national and international Stop Explosive Investment campaign. PAX and the Cluster Munition Coalition (CMC) aim to stop investment in cluster munitions producers and call on financial institutions to put an end to these investments. We also call on states to install national legislation prohibiting investment in companies that produce cluster munitions.
Cluster munitions Foto © John Rodsted
The 2008 international Convention on Cluster Munitions (CCM) forbids the use, stockpiling, transfer and production of cluster munitions. States may also not assist with prohibited activies, such as cluster munition production. According to PAX, the Cluster Munition Coalition and a growing number of states, this means that investment is also forbidden as is constitutes as assistance with production. After all, no money means no production. Moreover, it is completely illogical to ban a weapon for the humanitarian harm it causes while permitting investment in companies that produce them elsewhere.
Meanwhile, ten countries have adopted legislation prohibiting investment in cluster munitions. In the Netherlands, Dutch financial institutions are forbidden to make direct investments in cluster munitions producers, effective 1 January 2013. Additionally, there are twenty-nine other countries that, while not yet having adopted legislation, have stated that they consider investments in cluster munitions to be prohibited under the Convention on Cluster Munitions.
A growing number of financial institutions have modified or introduced new policies on cluster as a result of the Stop Explosive Investment campaign. Some of the producers of cluster munitions have stopped the production, this could be the result of a lack of financial flows.