Right to public information -The example of EITI, -of knowing what Governments earn from selling a countries’ natural resources Carter Centre, 27 February 2008 Jonas Moberg, Head of the EITI Secretariat

1. The problem

3.5 Billion people live in countries rich in oil,gas & minerals... Bad management and lack of transparency of these resources can lead to poverty, conflict and corruption...

Financial statement Board paper 4-2, p. 11

Source: The Economist July 20th 2006 A Commodities Boom...

= A Resource Revenue Boom.

2. Part of the solution?

How Does EITI Work? 2. Government ‘publish what they receive’ EITI provides Independent Verification & Reconciliation Oversight by a Multi-Stakeholder Group 1. Companies ‘publish what they pay’

Property rights (ownership, auctioning, contracting) Operational phase (i.e. cost/profit oil, tax calculations) Fiscal revenues collection - Disclosure Revenue’s distribution (federal-national/sub-natl) Final allocation of resources (quality of spending) EITI

- Major international oil, gas, and mining companies and investors in those companies (including BP, ChevronTexaco, ExxonMobil and Shell) - Implementing Countries (including Ghana, Gabon,Cameroon, Nigeria, Azerbaijan, Kyrgyz Republic) - Civil society groups and networks – e.g. Publish What You Pay, Open Society / Revenue Watch, Transparency International - Donors: UK, Norway, France, Germany, Netherlands, Australia Multi-stakeholder Governance Initiative (*) ”Tackling the oil curse”, The Economist, Sep 23,2004 (The curious coalition [*])

Global standard, locally implemented The EITI Conference National EITI The EITI Board Supporters The Secretariat

The EITI has been politically endorsed by many Governments and in many forums

- LIETI - GEITI - Azerbaijan EITI - Norway Global minimum standard - local standard and process

Extract from the Gabon 2005 EITI Report (page 36)

3. Does it work?

Ngozi Okonjo–Iweala Managing Director, The World Bank “[NEITI] has lifted Nigeria’s profile in the eyes of investors and helped lead to significant increases in FDI not only in the oil sector (about US$ 6 billion a year) but also in the other non-oil sectors US$3 billion”. January, 2008

Umaru Musa Yar’Adua President of Nigeria “[NEITI] has recorded major achievements in its four years of operations. Among other accomplishments, it commissioned and popularized the first comprehensive audit of the petroleum sector for the period 1999 to 2004; it conducted studies that swelled government’s coffers by over $1 billion; and it catapulted our country into a leading position among countries implementing the EITI”. January, 2008

Cynthia Carroll CEO, Anglo American plc If, for example, members of one of our host governments pocket the revenues which we generate, rather than spending them for the public good, it simply is not enough for us to deny all responsibility. Whilst we may not be technically responsible, many people will view us as complicit if we remain silent. [EITI] is intended to guard against embezzlement, increase accountability and to lead to a wider debate about the use to which these time-limited revenues are put. It is not a silver bullet for dealing with all corruption but it is beginning to produce some worthwhile results. 24 October 2007

Why should I join? Implementing countries: Self-interest (reduce corruption; increased accountability; improved investment climate) International recognition Company, investor and international pressure

Why should I join? Companies: Self-interest (good with stable investment Climate and good goverance) Investor pressure Country demand

What now? Implemenation (Validation) Mainstreaming (listings requirements, UN, accounting standards Large emerging markets Coordinated support

Right to public information -The example of EITI, -of knowing what Governments earn from selling a countries’ natural resources Carter Centre, 27 February 2008 Jonas Moberg, Head of the EITI Secretariat