The Extractive Industries Transparency Initiative (EITI) is a global standard for transparency in oil, gas and mining.
In many countries, money from oil, gas and mining is associated with poverty, conflict and corruption. Commonly referred to as the "resource curse", this is often driven by a lack of transparency and accountability around the payments that companies are making to governments, and the revenues that governments are receiving from those companies. The EITI seeks to create that missing transparency and accountability. It is a voluntary initiative, supported by a coalition of companies, governments, investors and civil society organizations.
Alongside other efforts to improve transparency in government budget practice, the EITI begins a process whereby citizens can hold their governments to account for the use of those revenues. The EITI supports improved governance in resource-rich countries through the full publication and verification of company payments and government revenues from oil, gas and mining industries.
By encouraging greater transparency and accountability in countries dependent on the revenues from oil, gas and mining, the potential negative impacts of mismanaged revenues can be mitigated, and these revenues can instead become an important engine for long-term economic growth that contributes to sustainable development and poverty reduction.
As a complement to these efforts to improve governance, the EITI was launched at the world summit in September 2002. The EITI provides a good entry point for broader work and discussion on revenue management. From its inception, the EITI has enjoyed wide international support but the focus for the initiative is at the national level. Country ownership of EITI and company participation in the initiative provides a domestic and international signal of a commitment to high standards of transparency and accountability in public life, government operations and in business.
EITI is about
The EITI was launched at the World Summit for Sustainable Development in Johannesburg in September 2002. The I International EITI Conference held on June 17, 2003 in London, Lancaster house agreed the set of the EITI principles. These 12 principles are based on two fundamental conditions:
1. “Publish what you pay” – for the foreign and local companies of extractive industries;
2. “Publish what you receive” – for host governments of extractive industries.
These principles acknowledged that all citizens should benefit from natural resources of a country.