Background Documents
- EITI Process
- Factsheet pdf (عربي, English, Français, Portuguese, Pусский, Español)
- Oil for Development: Strengthening Good Governance in Oil-Producing African Countries--The Role of the World Bank, speech, Peter van der Veen, Manager, Oil, Gas and Mining Policy Division, The World Bank , Berlin, May 23, 2006
About EITI
What is EITI?
The Extractive Industries Transparency Initiative (EITI) supports improved governance in resource-rich countries through the verification and full publication of company payments and government revenues from oil, gas, and mining. The Initiative works to build multi-stakeholder partnerships in developing countries in order to increase the accountability of governments.
Good governance is a precondition for converting large revenues from extractive industries into economic growth and poverty reduction. When transparency and accountability are weak, the extractive industries may instead contribute to poverty, corruption, and conflict—the so-called “resource curse.” The EITI is an important step in defeating this “curse.”
What are the benefits of implementing EITI?
The primary beneficiaries of EITI are the governments and citizens of resource-rich countries. Knowing what companies pay and what governments receive is a critical first step to holding decisionmakers accountable for the use of revenues. Resource-rich countries implementing EITI can benefit from an improved investment climate by providing a clear signal to investors and to international financial institutions that the government is committed to strengthening transparency and accountability.
Companies and investors, by supporting EITI in countries where they operate, can help mitigate investment risk. Civil society can benefit from an increased amount of information in the public domain about those revenues that governments manage on behalf of citizens. In summary, implementing EITI as part of a program of improved governance will help to ensure that oil, gas, and mining revenues contribute to sustainable development and poverty reduction.
Which countries are implementing EITI?
EITI is now a global initiative. Some twenty countries have either committed to, or are now actively implementing EITI—in Africa, Asia, Europe, and South America. For the most recent list of countries and information on what they are doing, click here.
How does it work?
The EITI Secretariat has developed an EITI Source Book that provides guidance for countries and companies wishing to implement the Initiative. The process shown in this diagram, combined with the “EITI Principles and Criteria,” shows how an EITI process would work.
Who else is involved?
EITI is supported by an International Secretariat presently based in the UK’s Department for International Development. The Secretariat works closely with the World Bank and the IMF. In addition to the implementing governments, EITI is supported by donors; by many of the largest oil and mining companies in the world, as well as investors in those companies; and by civil society groups many of which work under the umbrella of the Publish What You Pay Coalition and the Revenue Watch Institute. To find a full list of organisations involved in EITI, click here.
How can my organisation become involved?
The EITI Source Book provides guidance about how to become involved in the Initiative. Organizations can become active in EITI at the international level by participating in EITI conferences and promoting the principles of the EITI in their work. Organizations with a presence in oil, gas, and mining producing countries can contribute to the adoption and implementation of the Initiative in those countries. If an organization wishes to state its support for the Initiative, it should publish a statement of policy on their website and send a copy to the EITI Secretariat.
How is implementation of EITI financed?
EITI is financed in part through a Multi-Donor Trust Fund (MDTF) administered by the World Bank. France, Germany, Norway, the Netherlands, and the United Kingdom all currently contribute to the Fund. The funds are being disbursed to implementing countries to help meet the EITI criteria. Implementing countries also provide their own resources wherever possible. In addition, extractive industries transparency is now being mainstreamed into World Bank country programs. Individual donors also provide some separate funds for EITI implementation on a country-by-country basis.
How is EITI governed?
The EITI International Advisory Group (IAG) met after the Third Plenary Session in Oslo. The group agreed to establish a governing Board to oversee the future development of the EITI. The Board consists of five constituent groups representing implementing countries, supporting countries, civil society organisations, industry, and investment companies. Peter Eigen, founder and chairman of Transparency International, chairs the Board. The Board is supported by an International Secretariat, a group of full-time professional staff, currently based in London to be moved to Oslo in the near future.
The EITI Principles and Criteria
Click here for the EITI Principles and Criteria.
Key contacts and further information
If you have any questions, then you can email the Secretariat at eiti@dfid.gov.uk or write to us at: EITI Secretariat, 1 Palace Street London SW1E 5HE, United Kingdom.