Decisive period for the first wave of countries implementing the EITI
The EITI crossed an important milestone last week: 9 March was the deadline for the first 22 countries that became EITI Candidates in 2008 to complete an independent EITI Validation, the EITI’s quality assurance mechanism.
EITI Validation is an opportunity for countries to prove to their citizens and to the world that they have lived up to their pledges in fulfilling the EITI standards. Only two countries – Azerbaijan and Liberia - met the deadline.
However, it is abundantly clear that the Validation deadlines have worked to catalyse progress: never has there been so much activity and determination to improve transparency in the extractive sector in so many countries. In the last six months alone, the number of countries that have produced an EITI report has almost doubled to 21. Now almost all countries have asked for short extensions and are actively working to complete the validation process. The EITI Board will meet in Berlin in April and will assess each request on its own merit.
The Validation process is revealing a lot about what the EITI has achieved in implementing countries. Of the 22 countries, 19 of them have now disclosed the payments from their extractive sector in an EITI Report. In Nigeria, the EITI process has shed light on a complex labyrinth of opaque payments and transfers, and showed the way to a more open and effective management of the sector. Several recommendations are now being taken up in the country’s Petroleum Industry Bill.
In post-conflict countries like Liberia or the Democratic Republic of Congo, the EITI is part of a wider peace and reconciliation process. Azerbaijan now publishes reports on its oil income every six months, holding meetings that provide an unprecedented platform for civil society and companies to give input on natural resource management. The citizens of Equatorial Guinea and Timor Leste have for the first time access to information on state revenues from their oil industries.
In volatile states like Niger, Mauritania and Madagascar, the EITI creates a democratic space for citizens to contribute to their country’s development. Iraq and Afghanistan joined the process a month ago, showing determination against formidable odds.
We know that all the EITI implementing countries are at different stages of economic and political development. They are also at different levels of EITI implementation. The EITI’s supporters in industry, civil society and government can rest assured that, as we consider the lessons learned from last week’s deadline, and as we decide whether countries are meeting the EITI standard or not, we will act with utmost fairness.
We will also keep our sights firmly on seeing the EITI succeed in countries that suffer most deeply from the resource curse. The EITI will continue to support those EITI implementing countries that are making progress, and that are committed to development through better management of their natural resources.
Peter Eigen is Chair of the Extractive Industries Transparency Initiative.
2 Comments
Dear P. Eigen.
In fact, EITI has passed its most difficult stage - a stage of formation.
Your efforts, the efforts of the Secretariat and the EITI all participants at all levels and on all continents have brought incredible results - EITI is supported by the world's leading political and financial institutions, and EITI criteria are recognized as an international standard rating of investment attractiveness of countries.
However, I want to draw the attention of all colleagues in the volatility processes promote the principles of transparency, due to insecurity of civil society from various types of restrictions on their capacity to participate in the EITI.
I particularly note that we are not talking about repression and persecution.
It is an application by the Government and companies selectivity - with which of the NGOs them more profitable to negotiate and coordinate their decisions.
In other words - it comes to respecting Criteria EITI № 5 and 6.
For example, in Kazakhstan, we can all clearly traced, as in one and a half years, the most active representatives of NGOs have been consistently excluded from direct participation in the implementation of EITI.
And, despite the fact that Kazakhstan has received a negative assessment of the international validation, this policy is not only not ceased, but there is more
sharply.
Obviously, this is a threat throughout the ITI, as the most active NGOs have been almost totally deprived of grant support and were forced to work for his personal account. Of course, the number of the rapidly shrinking.
However, the rapidly emerging NGOs do not understand the essence of the EITI and not seeking work actively to gain recognition of the Government and companies and, accordingly, easy financing its activities.
In this regard, I propose to draw attention to these factors and consider the mechanisms of targeted financial support to NGOs, proven as a consistent and principled advocates of ITI, as well as mechanisms for more effective protection of NGOs than are currently available.
In my opinion, you need to create in the EITI permanent independent body with a rapid response to complaints from members of NGOs and to introduce responsibility of the participating countries EITI for the current deviation from the principles of EITI.
Sincerely, Yuriy Krivodanov
Dear Yuriy,
Thank you for your feedback on the effectiveness of the EITI in Kazakhstan. The EITI Board monitors progress in all implementing countries. EITI Validation independently assesses compliance with the EITI principles and criteria. Indicator 5 assesses the effectiveness of the multi-stakeholder group. Indicator 6 explores whether civil society is engaged in the process. The Board expects to receive the final Validation report from Kazakhstan in the coming months. We encourage all stakeholders in Kazakhstan to participate in the process to ensure that the Validation report incorporates feedback from all stakeholders.
Regards,
Jonas Moberg