What is the Extractive Industries Transparency Initiative?

During the 2009 EITI Global Conference a video was screened called EITI – Making resources work for people. It gives a good overview of EITI from the perspective of all stakeholders in the process.

The Extractive Industries Transparency Initiative (EITI) is a multi-stakeholder initiative comprised of governments, companies, civil society groups, investors and international organizations. The EITI aims to strengthen governance by improving transparency and accountability in the extractives sector. It is a voluntary initiative that is implemented by countries whose governments sign-up to do so.

The EITI Board and the EITI International Secretariat are the guardians of the initiative’s methodology that supports improved governance in resource-rich countries through the verification and full publication of company payments and government revenues from oil, gas and mining. Implementation itself, however, is the responsibility of individual countries.

The EITI Source Book provides guidance for countries and companies wishing to implement the initiative. The Validation Guide establishes the methodology countries need to follow to become fully compliant with the EITI. Click here for the EITI Fact Sheet and the current workplan.

To view the initiative’s progress, see the EITI candidate and compliant country lists.

Why does PWYP focus on the EITI?

PWYP’s objectives are for companies to “publish what you pay” and for governments to “publish what you earn” as a necessary first step towards a more accountable system for the management of natural resource revenues. If companies disclose what they pay, and governments disclose their receipts of such revenues, then members of civil society in resource-rich countries will be able to compare the two and thus hold their governments accountable for the management of this valuable source of income.

The EITI provides an internationally recognised framework for companies to publish what they pay and for governments to disclose what they receive.

Due to the voluntary nature of the EITI, PWYP recognizes that the initiative’s principles will not capture all key resource rich-countries around the world. To complement work within the framework of EITI, PWYP also works to achieve mandatory rules requiring revenue disclosure, through, for example, accounting standard reforms and stock market listing regulations.

PWYP’s work on the EITI

At the international level, PWYP is represented on the EITI Board via the civil society seats that are part of the multi-stakeholder composition of the Board. You can view the list of EITI board members details online.

PWYP also has national affiliated coalitions in 22 of the 23 EITI candidate countries. Members of these national coalitions often serve among the civil society representatives as part of the national multi-stakeholder groups responsible for EITI implementation. At the same time, they also serve as the local watchdogs of the EITI. To learn more about what PWYP national coalitions are doing to engage in the EITI, please visit the individual country pages here.

You can also see details about PWYP’s work related to the EITI in the United Nations and G8 sections of the International Bodies advocacy page in addition to the Investors page.

For more information please contact Radhika Sarin, PWYP International Coordinator and EITI Board member, by email or on +44 20 7031 0204.