EITI Conference Highlights Progress and Lessons in Extractive Industry Transparency
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The document discusses the Extractive Industries Transparency Initiative (EITI), which aims to address the "resource curse" that many resource-rich developing countries face. It provides the background and origins of EITI, how EITI works by requiring transparency in company payments and government revenues from oil, gas and mining, and emerging results from EITI implementation in countries like Nigeria and Ghana. Key lessons are that high-level government commitment is critical to success, and that EITI is beginning to show results but also has limitations and could be expanded to address broader extractive industry governance issues.
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EITI Conference Highlights Progress and Lessons in Extractive Industry Transparency
- 2. Why an Initiative for Natural Resources ?
- 8. Status today
- 9. Supporters
- 10. How does EITI work?
- 22. By design, EITI is narrowly-focused on disclosure – but is really part of a larger EI governance picture The EITI provides a forum for dialogue - and a platform for broader reforms Award of licenses & contracts Regulation & monitoring of operations Revenue Distribution & Management Implementation of Sustainable Development Policies Government Spending Companies Disclose Payments Government Discloses Receipt of Payments Oversight by a Multi-Stakeholder Group Independent Verification of Tax & Royalty Payments
Notes de l'éditeur
- Flood of academic, journalistic, campaigning publications (about governance of the extractive sector) Oil at $120 per barrel need for companies to demonstrate they are not associated with corruption, conflict, poverty and misery.
- When EITI was launched in September 2002 oil was averaging $27 a barrel, and gold $319 an ounce. By the “midpoint” of the March 2005 conference oil had risen to $51 a barrel, and gold $436 an ounce. By the time of the last major EITI conference in October 2006 oil was at $63 a barrel and gold $602. CPI in 2002 measured 102 countries, 23 of which were resource rich, only 6 of which would eventually commit to EITI. CPI in 2006 measured 163 countries, 50 of which were resource rich, and 21 of which were committed to EITI.
- It is important to distinguish between what EITI does and does not cover. But in many EITI implementing countries, EITI is becoming a banner under which governments address many of the issues in the second box as well. We need not tie ourselves in knots arguing about what counts as EITI and what doesn’t – EITI provides a valuable core; if countries chose to go beyond that we should work with them on that as well. What EITI does provide is a strong international brand – a quality mark – which can be used to cover very diverse programs I was interested to note in DFID’s recent White Paper – in which EITI featured prominently – that the UK government has proposed to extend EITI into “other areas of the oil, gas, and mining sectors”. I think we should welcome that, and I look forward to hearing from DFID about what those proposals in the White Paper mean.
- This slide: Key elements in every implementing country (companies disclose, governments disclose), independently and credibly verified and reconciled Process overseen (by multi-stakeholder group of government, companies, civil society), process published thoroughly discussed [Press again] EITI: forum for dialogue and platform for boarder reforms [Press again] – Example: the government along with stakeholders may decide to work for more transparency: in the award of licensing and contracts, and monitoring of the sector [Press again] – Might push for; more transparency (the distribution of government spending) [Press again] – Link up with other elements of governance (reform of the public financial and budgeting system) These additions; entirely up to them. Blue elements: the EITI ‘core’. Power of the multi-stakeholder process; help focus on ‘governance chain’ in the most need of transparency.