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EITI

Arbeiter in einem Kohletagebau in Sambia. Urheberrecht: Manoocher Deghati/IRIN

Context: The EITI – greater transparency in extractive industries

In many de­vel­op­ing countries natural resources are an important economic factor, but mis­manage­ment, cor­rup­tion and local conflicts prevent the poor benefiting from the revenues generated.

To enable all population groups to profit from their country's resource wealth, the governments of these countries are called upon to put in place an appropriate and reliable business environment and to ensure good governance. Above all, this involves combating corruption, for example by ensuring greater transparency in financial transactions.

At the World Summit for Sustainable Development in Johannesburg in 2002, the Extractive Industries Transparency Initiative (EITI) was set up. The Initiative is based on the G8 Africa Action Plan which was adopted in the same year and has its headquarters in Oslo.

Shaft tower at sunset. Copyright: GTZThe aim of the Extractive Industries Transparency Initiative is to increase the transparency of cash flows associated with the extraction of oil, gas and other natural resources, thereby enabling civil society to monitor the whereabouts of the funds. The Extractive Industries Transparency Initiative process is designed to help ensure that the proceeds of resource extraction arrive by a traceable route in the public coffers and are used to combat poverty.

In September 2008 the goals of the Extractive Industries Transparency Initiative were also officially recognised for the first time by the United Nations. At the sixty-second session of the General Assembly of the United Nations, the resolution on "Strengthening transparency in industries" was adopted. This stresses the necessity for transparency in the natural resources sector and urges the international community to actively support the Initiative.

Members of the Initiative (as of February 2010)

Compliant countries (2):

Azerbaijan, Liberia

Candidate countries (30):

Afghanistan, Albania, Burkina Faso, Cameroon, the Central African Republic, Cote d'Ivoire, the Democratic Republic of the Congo, Equatorial Guinea, Gabon, Ghana, Guinea (suspended), Iraq, Kazakhstan, Kyrgyzstan, Madagascar, Mali, Mauritania, Mongolia, Mozambique, Niger, Nigeria, Norway, Peru, the Republic of the Congo, São Tomé and Príncipe, Sierra Leone, Tanzania , Timor-Leste, Yemen, Zambia

Other countries (3):

Ethiopia, Indonesia, Ukraine

Donor countries:

Australia, Belgium, Canada, Denmark, Finland, France, Germany, Italy, Japan, the Netherlands, Norway, Qatar, Spain, Sweden, Switzerland, the United Kingdom, the USA

International organisations:

African Development Bank (AfDB), African Union (AU), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), InterAmerican Development Bank (IDB), European Union (EU), Group of Eight (G8), International Organisation of the Francophonie (OIF), International Monetary Fund (IMF), Organisation for Economic Cooperation and Development (OECD), United Nations, World Bank Group.

A detailed list of participating non-governmental organisations, companies and industry associations can be found on the

EITI standards

Key components of the Extractive Industries Transparency Initiative process include

  • the involvement of businesses and civil society in implementing common standards

  • the creation of a legal basis for the disclosure of payments made by companies in the natural resources sector

  • the introduction of a legal basis for ensuring equal competition conditions

  • the voluntary nature of the Extractive Industries Transparency Initiative process (voluntary accession of resource-owning countries)

  • the disclosure of revenues of resource-extracting countries

  • the auditing of figures by an independent firm of auditors

  • the publication of regular reports.

The Extractive Industries Transparency Initiative attaches great importance to ownership. The responsibility for implementation therefore lies with participating states. The involvement of the private sector and the disclosure of payments to the governments concerned are nevertheless essential. The inclusion of emerging economies such as China and India, which import large quantities of energy and raw materials from Africa, also represents a major challenge.

The Extractive Industries Transparency Initiative is fully in line with the provisions of the United Nations Convention against Corruption (UNCAC). In addition, the transparency of revenues from natural resource extraction is a key component of the criteria of the Highly Indebted Poor Countries Debt Relief Initiative.

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