jonas moberg at gwu washington dc 4 may 2010
TRANSCRIPT
EITI at crossroads
Jonas MobergGeorge Washington University
May 2010
www.eiti.org
I. the resource curse
1997
December 1999
Petrol is the best vector of corruption
Petrol is the best vector of corruption
“
2010examines how the world's poorest societies make the least of their natural resources
- Corruption- Link between resources and
conflicts- Link between resources and
human rights abuses- Dutch diesease
www.eiti.org
Governance failure Pressure/attention
Investigative reporting
Facilitation
Business case for action Negotiation
Implementation
Quality Assurance
Code/standard
II. Part of the remedy and a place to start
Award of licenses
&contracts
Regulation&
monitoring of operations
The EITI provides a forum for dialogue and a platform for broader reforms
Revenuedistribution
& management
Implementation of sustainable development policies
Government Spending
Companies disclose
payments
Government discloses receipt
of payments
Independent verification of tax & royalty
payments”EITI report”
Oversight by aMulti-Stakeholder
Group
How the EITI works
Implementing Countries
o 31 Implementing Countries across Africa, Asia, Latin America, Middle East and Central Asia
o 48 major international oil, gas, and mining companies
o 80 institutional investors with collective assets of over $16 trillion
o 100s of civil society groups and networks – e.g. Publish What You Pay, Open Society/Revenue Watch Institute, Transparency International
o Supporting Countries, including Japan, Australia, Canada, France, Germany, the Netherlands, Norway, the UK and the US
EITI in 2010
46 of the world’sleading oil, gas andmining companiesSupport the EITI
EITI Implementing countries31 countries
Supporting countries and organisationsincluding the World Bank, AfDB and ADB
Civil society organisationshundreds, often through Publish What You Pay
Supporting institutional investors
16trillion US in Management
Supporting companies45, including most of the world’s largest
EITI International Secretariat
Oslo
The EITI Board
EITI
Chart of original media articles mentioning “Extractive Industries Transparency Initiative” from 1 Jan 2008 – 31 Dec 2009:
Dr Peter Eigen, Chairman of the EITI, interviewed by Jonathan Charles on the BBC news programme HARDtalk, November 6, 2009.
Norway, first OECD reporting country
Liberia 2nd report: 4 sectors
Ellen Johnson SirleafPresident of Liberia
“The Liberia EITI is one of the institutional pillars of integrity anchoring and sustaining the reform agenda of Liberia.”“By promoting better management and use of public resources and discouraging corruption, LEITI … is critical to poverty reduction and social development in Liberia.”
July 2009, when signing the new LEITI law
Peru 1st Report
- Covers 4 years, 2004-2007
-Reporting model that differs from other EITI reports: Companies decide disclose data in an aggregated or disaggregated manner
EITI reporting
• 16 reports published (28 in Jul 09, 44 in Mar 10, Madagascar has produced a pilot report).
• 11 countries have reported for the first time.• The number of both reports* and reporting
countries *(excluding Azerbaijan) has almost doubled.
• The proportion of reports with disaggregated figures have increased, from 20% (5 out of the first 28) to 50% (8 out of the last 16).
-
Why governments implement the EITI
-Enlightened self-interestTo prevent corruptionTo build trust amongst communitiesTo attract foreign direct investmentTo attract leading companies To gain international recognitionTo improve credit rating
- Encouragement from the international community Development community promoting good governanceIMF and others wishing to see improved fiscal managementEnergy security through transparency
- Encouragement from industryLicense to operateLong-term investment depends on a sound business
climate
EITI
The EITI has been politically endorsed by many Governments and in many forums
The AU, EU, UN, G8, G20,..
III. Does we know if it works?
Challenges: - Causality- Alternatives - Output/impact- Time
”Emerging anecdotal evidence”
• It can be a platform for long-term reform• From transparency to accountability • To fight corruption – maybe• To build trust and confidence
- definetely
Lessons
• Depth – implementation quality• Width – continued progress with large
emerging economies
Looking ahead
IV. Challenges
Companies disclose
payments
Government discloses receipt
of payments
Independent verification of tax & royalty
payments”EITI report”
Oversight by aMulti-Stakeholder
Group
1.Rules and Validation
2.Improvedreporting
4. Civil societyparticipation
6.Impact
5. Outreach/expansion
3. Incentivising
V. Multi-stakeholder governance
www.eiti.org
Governance failure Pressure/attention
Investigative reporting
Facilitation
Business case for action Negotiation
Implementation
Quality Assurance
Code/standard
Multi-stakeholder governance
• ”voluntary” and mandatory- evolution
• Focus• Something for everyone• High transaction costs – must learn
more • Not a panacea• Requires leadership