Extractive Industries Transparency Initiative

An Extractive Industries Transparency Initiative (or EITI) announced by UK Prime Minister Tony Blair at the World Summit on Sustainable Development in Johannesburg, September 2002, expressed as its aim to increase transparency over payments by companies to governments and to government-linked entities, as well as transparency over revenues by those host country governments. Ghana, Nigeria and Azerbaijan, piloted the EITI approach. As of September 2006, EITI is being implemented in some twenty resource rich countries around the world. Three countries Azerbaijan, Guinea and Nigeria have produced EITI reports; another five are expected to do so shortly.

Revenues from oil, gas and mining companies, in the form of taxes, royalties, signature bonuses and other payments should be an important engine for economic growth and social development in developing and transition countries. However, the lack of accountability and transparency in these revenues can exacerbate poor governance and lead to corruption, conflict and poverty.

EITI has issued a set of reporting guidelines, a Statement of Principles, available on its official website, and six Criteria which represent the global minum standard for EITI implementation. EITI received official endorsement from the World Bank Group, announced December 9, 2003. The World Bank pioneered pressure for structuring revenue transparency in several high-profile extractive industries projects in the opening years of the 21st century, including the Chad-Cameroon pipeline and the Baku-Tbilisi-Ceyhan pipeline.

In May 2005, an International Advisory Group (IAG) was established under the Chairmanship of Peter Eigen. Members of the IAG included: the Governments of Azerbaijan, France, Nigeria, Norway, Peru and the United States; AngloAmerican, BP, Chevron and Petrobras; the Azerbaijan EITI Coalition, Global Witness, Revenue Watch Institute, West African Catholic Bishops Conference; and F&C Assets Management. It was supported by the UK Government, the IMF and the World Bank. The EITI conference was held in Oslo Norway in October, 2006 and the secretariat has moved to Oslo in Norway in March 2007.

EITI implementing countries

The following countries have status as candidate countries:

*Azerbaijan
*Cameroon
*Gabon
*Ghana
*Guinea
*Kazakhstan
*Kyrgyzstan
*Liberia
*Mali
*Mauritania
*Mongolia
*Niger
*Nigeria
*Peru
*Yemen

At the EITI Board meeting in September 2007, the board asked for additional information by the end of 2007 before a reaching a decision about the candidate status for the following countries:

*Chad
*Democratic Republic of Congo
*Equatorial Guinea
*Madagascar
*Republic of Congo
*Sao Tome and Principe
*Sierra Leone
*Trinidad and Tobago
*Timor-Leste

Other countries have also officially stated that they want to implement EITI, including Norway.

ee also

*Transparency (humanities)
*Transparency (market)

External links

* [http://www.eitransparency.org Extractive Industries Transparency Initiative]
* [http://www.eitransparency.org/countryupdates/azerbaijancountryupdate.htm Azerbaijan EITI implementation]
* [http://www.eiti-az.org EITI Azerbaijan NGO Coalition]
* [http://www.uvm.edu/~shali/OliveraAli.pdf Can Corporate Power Transform Equatorial Guinea and Angola?]