At A Glance
- Approximately 3.5 billion people live in countries rich in oil, gas, and minerals, but many of these countries suffer from poverty, corruption, and conflict stemming from weak governance.
- The Extractive Industries Transparency Initiative (EITI), launched in 2003, promotes and supports improved governance and transparency in resource-rich countries. It does this through the full publication and verification of company payments and government revenues from oil, gas, and mining activities. As a voluntary association of stakeholders with common goals, the EITI includes resource-rich developing countries, donors, international and national resource companies, and civil society.
- The World Bank’s oil, gas, and mining unit provides countries with technical assistance and grants to implement the EITI principles of revenue transparency and accountability, as well as support capacity building for civil society. Funds for this purpose have been contributed to a multi-donor trust fund (MDTF) managed by the Bank and supported by 15 donor countries.
- Grants from the trust fund help support technical assistance and global knowledge sharing activities in EITI implementing countries. As of September 2012, donors include: Australia, Belgium, Canada, Denmark, the European Commission, Finland, France, Germany, Japan, the Netherlands, Norway, Spain, Switzerland, the United Kingdom, and the United States.
- As of September 2012, 36 countries are implementing the EITI. Fourteen countries have become compliant with EITI principles while 15 more have made significant progress toward validation.
How are EITI countries doing?
EITI Compliant* (14)
EITI Candidate: published 1 or more EITI reports (15)
EITI Candidate: working toward 1st EITI report (7)
Azerbaijan, Central African Republic, Ghana, Kyrgyz Republic, Liberia, Mali, Mauritania, Mongolia, Niger, Nigeria, Norway, Peru, Timor-Leste, Yemen
Albania, Burkina Faso, Cameroon, Congo, Côte d’Ivoire, Democratic Republic of Congo, Republic of Congo, Gabon, Guinea, Iraq, Kazakhstan, Madagascar, Mozambique, Sierra Leone, Tanzania, Zambia
Afghanistan, Chad, Guatemala, Indonesia, Solomon Islands, Togo, Trinidad and Tobago
*As of August 2012
Progress to date
- A total of 31 EITI implementing countries have now published one or more reports, and a total of 134 reports have been published. Not only are these reports improving in data quality, the coverage is also wider, and the debate that is generated is deeper.
- Nigeria has just undertaken a review of its 10 years of EITI reporting which highlights at least $9 billion increase in government revenue from the sector since EITI reporting. While it is hard to know how much of this vast sum in increased revenue can be explained by the EITI, reforms supported by EITI are having some impact.
- Mozambique’s report includes a survey on whether companies would be willing to disclose their tax agreements and an increasing number of reports include data on volumes of production.
- Mining companies in Mongolia disclose environmental rehabilitation deposits paid to the government and real expenses. These flows are included in the EITI report as a means of making companies accountable for how they manage the environmental aspects of mining.
- Several countries suffering from ongoing or recent conflicts have also made progress with EITI implementation, often as part of wider reform efforts. Afghanistan has published its first EITI report, DRC its third, and Iraq and Guinea are going through validation. Cote d’Ivoire and Madagascar are due to publish their next reports shortly.
- The EITI is generating interest from parts of the world that have been difficult to reach in the past. Senior participants from 12 countries in Latin America gathered in Lima last June to discuss EITI implementation when just over a year ago, there was only one implementing country in the whole region.
- There is recent progress in South East Asia, with Myanmar and the Philippines having committed to implement the EITI. Tunisia has become the first “Arab Spring” country to commit to implement, alongside the lifting of Yemen’s suspension of implementation. The Solomon Islands welcomed as the first Oceania implementing country.
The future of EITI
Whilst it is encouraging to see the EITI being used as a platform for generating wide understanding and public debate regarding government revenues generated by the extractive industries, more can be done to encourage countries that link EITI outcomes with policy reforms on public expenditure, licensing, contracts, tax regimes, and other wider aspects of natural resource management.
At its meeting in Lima last June, the EITI International Board focused on how the EITI standard can and ought to evolve. Good progress has been made in reaching agreement on the need to improve some of the EITI minimum requirements, particularly ensuring that the data in EITI reports is reliable, and on making the EITI more of a platform for a range of efforts seeking to ensure improved governance in the sector. The Board’s strategy working group, with participation from the WB, will develop concrete policy proposals for the Board to consider when it meets in October in Zambia.
For more information, please visit: www.worldbank.org/eiti-mdtf and www.eiti.org
Mauricio Ríos: 1 (202) 458 2458 firstname.lastname@example.org
Christopher Neal: 1 (202) 473-2049 email@example.com
Updated September 2012