The exploitation of natural resources represents big business globally. Like any industry where there is so much money to be made, every step of the way may be vulnerable to corruption.
The Extractive Industries Transparency Initiative (EITI) acts as a global standard for the good governance of oil, gas and mineral resources.
In a recent factsheet, the EITI states that it “requires the disclosure of information along the extractive industry value chain, from licensing to extraction, to how revenue makes its way through to government, to how it contributes to the economy and wider society”.
This helps to promote a culture of strong governance and transparency, as well as providing data that can help to identify corruption risks, guide legislative reforms, strengthen tax collection and foster public debate.
Which countries follow the standard?
The EITI standard is implemented in 52 countries.
Furthermore, there are a number of:
- Supporting countries (including Australia): who are committed to promoting good governance in the extractive industries across the world
- Outreach countries: other resource-rich countries that could benefit from EITI implementation and could contribute to improved global governance of natural resources