Interesting article about Extractive Industries Transparency Initiative Implementation

Supporting Extractive Industries Transparency Initiative Implementation

  • 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.

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2 thoughts on “Interesting article about Extractive Industries Transparency Initiative Implementation

  1. I found that article interesting and what caught my attention is how many of these oil rich countries are suffering from serious corruption and poverty problems. I actually wonder if it is of the oil companies’ best interest that these countries stay in such a state of corruption!

    • The implementation of “The Extractive Industries Transparency Initiative (EITI)” is a good step in reducing corruption in these oil-rich countries. The fact that they have enormous power over how these resources are utilized, it is necessary to implement such an act to protect consumers from excessive taxation as well as health, safety and environmental issues.

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