The key to leverage extractive resources to attain beneficial development outcomes is to increase accountability and transparency as well as improve governance in the sector.
A new publication, Implementing EITI for Impact: A Handbook for Policymakers and Stakeholders, analyzes the importance of implementing the Extractive Industries Transparency Initiative (EITI)to domestic economies, governance structures, and local populations, and suggests measures to leverage its potential to ensure inclusive growth and sustainable development.
Today, nearly 3.5 billion people live in resource-rich countries with oil, natural gas, and mineral deposits. Given the massive scale of benefits from natural resource extraction, many countries face issues such as corruption and conflict. The Extractive Industries Transparency Initiative (EITI) was formed to address such issues, fuel economic growth and enable sustainable development, ultimately leading to poverty reduction.
According to the EITI rules, companies publish what they pay, and governments publish what they receive in an EITI report. The key to progress is more accountability and transparency.
Who will benefit from the EITI handbook?
Stakeholders (including policymakers, industry, and civil society) in countries currently implementing/seeking to implement EITI will benefit from the EITI handbook
What is the unique feature of this handbook?
This handbook outlines the Extractive Industries Value Chain and details the steps needed to launch and implement the EITI process successfully. The book will be an invaluable tool in helping EITI- implementing countries "mainstream" the principles of accountability and transparency into their good-governance agenda. Country-based case studies and results provide practical insights into EITI implementation and the challenges overcome.
The handbook builds on established EITI principles, standards, and practices to provide a holistic one-stop guide to effective EITI implementation.
Background: What is EITI?
The Extractive Industries Transparency Initiative (EITI) was launched in 2002 in an effort to improve public accountability of governments. EITI is a global standard designed to improve transparency in the sector by publishing reconciled payments by companies and revenues received by governments from oil, gas, and mining exploration and production operations. It helps promote and support improved governance, especially in resource-rich countries, ultimately leading to a better life for the citizens of such countries through sustained poverty reduction and inclusive growth. The World Bank manages the EITI Multi-donor Trust Fund, which provides resources to countries that aim to implement the EITI.