EITI Overview
3.5 billion people live in countries rich in oil, gas and minerals. With good governance the exploitation of these resources can generate large revenues to foster growth and reduce poverty. However when governance is weak, it may result in poverty, corruption, and conflict. The Extractive Industries Transparency Initiative (EITI) aims to strengthen governance by improving transparency and accountability in the extractives sector. The EITI sets a global standard for companies to publish what they pay and for governments to disclose what they receive. more
"Despite the persistence of Africa’s natural and man-made horrors, the latest trend is cheeringly positive", The Economist writes in a Leader article in this week's edition. Further it writes: "Another promising new mechanism is the Extractive Industries Transparency Initiative, a voluntary code that a score of African countries have adopted, with governments and foreign firms accounting openly for their dealings."
Representatives from 21 Candidate Countries met in Oslo from 7-9 October for the first EITI National Coordinator Meeting. The meeting was organised in response to strong demand from implementers for information exchange and peer learning regarding EITI implementation. In particular, there is a pressing need to accelerate activities with respect to the EITI’s Validation requirements.
EITI Chairman, Dr Peter Eigen met with the Iraqi Deputy Prime, Dr Barham Ahmad Salih, and the Minister for Oil, Hussain Ibrahim Saleh al-Shahristani, in Baghdad on 6 October. The Ministers reaffirmed their strong commitment to the initiative and their intent to progress towards revenue transparency by publishing monthly reports of their oil revenue.
The US Senate Committee on Foreign Relations held 24 September a hearing on Resource Curse or Blessing? Africa's Management of its Extractive Industries. In his opening statement Senator Feingold said "The Extractive Industries Transparency Initiative is one of several international efforts to fight the resource curse, and the report urges the administration to give the EITI more vigorous support."
Welcome to a new edition of the EITI Newsletter. The main story is the passing of a UN Resolution endorsing the EITI. In addition, it provides a briefing on the EITI International Conference, and updates from the West Africa Conference and from Azerbaijan.
The Swedish Government announced today their support of the Extractive Industry Transparency Initiative (EITI). State Secretary Mr Gunnar Wieslander announced the Swedish support of the initiative at a meeting with Dr Peter Eigen, Chairman of the EITI, and Swedish companies that operate in the extractive sector.
The African Union Commission and the European Commission launched an Africa-EU Energy Partnership on 8 September. The Joint Statement on the Energy Partnership states that transparency is necessary to improve private investment in the energy sector. The EC and the AUC therefore calls for more countries to become members of the EITI, and to develop transparency guidelines for companies in the extractive sector.
West African EITI Implementing countries met together for the first EITI West Africa Conference 10-12 September in Abudja.
At the opening of the conference, Nigerian President Umaru Yar'Adua gave this message: "The Nigerian experience shows that there is a sense in which we can talk of blood oil.
The UN General Assembly has adopted a resolution on the subject of 'Strengthening Transparency in Industries'. The resolution gives strong backing to the EITI by noting EITI implementing countries' efforts to strengthen transparency.
[UPDATED with link to the resolution.]
Abuja, Nigeria, 12 September 2008 -- African civil society activists met the European Commissioner for Energy, Andris Piebalgs, and urged him to ensure that openness and accountability to Africa’s people are at the heart of Europe’s growing energy relationship with Africa.
Upcoming events
- 29 October 2008 - 30 October 2008
- 30 October 2008 - 2 November 2008
- 10 November 2008 - 14 November 2008
- 17 November 2008 - 20 November 2008
- 1 December 2008 - 9 December 2008
The EITI Blog
The EITI Blog gathers together ideas about the role of transparency and natural resources in creating economic growth and fighting poverty and corruption. The blog is authored by members of the EITI Secretariat and key stakeholders.
By Susan Aaronson, Associate Research Professor of International Affairs, George Washington University.
The resource curse has stymied development in numerous oil-rich economies. This column uses World Bank and UNCTAD data from 2006 to describe how the Extractive Industries Transparency Initiative might help business, government, civil society and citizens alleviate the curse.
Policymakers in resource-rich countries often become addicted to oil industry revenues. They rarely use these funds to diversify their economy or to invest in other productive sectors such as agriculture, education, and manufacturing. Instead, these officials frequently pad their bank accounts and ignore the needs of their constituents as well as producers from other sectors. Moreover, these officials rarely disclose the royalties that oil companies pay to extract oil resources, increasing the potential for revenue misappropriation.
Key Documents
Conference website
Compliant Countries
To become Compliant, the country needs to complete validation process and meet all of the Validation Indicators. All Candidate countries must complete validation within two years.
Candidate Countries
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The EITI Newsletter is sent out bimonthly to friends and partners of the EITI from the International Secretariat. Comments and questions about it can be sent to Anders Tunold Kråkenes.