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Introduction to the EITI
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A countrys natural resources belong to all its people.
Citizens should have the right to see what their
government is receiving from these resources.
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However, in too many countries this
information is not publicly available
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The EITI is a global standard for
disclosingcompany paymentsand government revenues in theextractive sector.
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The EITI Standard has two core elements:
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THE NEW EITI STANDARD
Includes:
Licensing information
Information on state ownership
Production
Transfers to local governments
Revenues from State Owned Companies
Company social & infrastructure expenditures
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Increasing transparency and accountability in the natural resource
value chain.
A national multi-stakeholder group
(government, companies and civil
society) decides how their EITI
process should work.
This group publishes an EITI
Reportwhere government
revenues and other data are
disclosed and independently
assessed.
The findings are communicated to
create public awareness and
debateabout how the country
should better manage their
resources.
Production
data
Transfers to local
government
Transit
payments(encouraged)
State
Owned
Enterprises
Government
publishreceipts
Companies
publish
payments
Licenses &contracts
Monitoringproduction
Tax collectionRevenueallocation
Expendituremanagement
Licensing
information
State
ownership
Productioncontracts(encouraged)
Beneficial
ownership(encouraged)
Company social
and infrastructure
investments
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EITI reports: An example from Norway
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Key Features of EITI
Country ownership - shape the EITI asappropriate in each country.
Annual reportingboth for companies and for
government. Make use of the data to answer the key
questions facing the country and create public
debate. Multi-stakeholder governance at all levels.
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39 countries now implement the EITI
Standard around the world
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Country progress
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Supported by companies, institutional investors,
civil society and international organisations
Implementationsupported by
multiple donors
EITI supporters
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Progress of the EITI
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Progress of the EITI
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OECD Countries
Norway is Compliant
Australia, Germany, United States Italy, United
Kingdom and France have all taken steps to
become members
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When citizens can follow the money being
generated by their resources, they ask
questions about how the money is being
managed
Azerbaijan - upgraded sovereign credit ratings Mongolia - improved relationship with
multinational companies (including Chinese
and Australian) and local communities Nigeria- uncovered 4 billion USD in unpaid
taxes
The benefits
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World Bank Role
Supports country in meeting steps to becomecandidate country (Bank managed)
Provides country a grant (through Multi-donorTrust Fund) to move from candidate to compliant
countrytakes about 2 years (recipientmanaged) Note: to be eligible for grant Government must set up
national secretariat to manage day to day process;reports to Multi-Stakeholder Group
Provides on-going assistance to nationalsecretariat
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Becoming EITI Compliant
Companies and countries provide information as indicated in the EITIStandard
Auditing company reconciles information from both sides & points out anydiscrepancies or omissions
Independent validator, hired by EITI International Secretariat, assessesprogress of the country and, if necessary, makes recommendations forstrengthening the process (must begin validation within 2 years ofbecoming candidate)
The EITI Board, through the EITI Secretariat, oversees the Validationprocess and reviews all Validation Reports.
If the Board considers that the country meets all the EITI Requirements,the country will be designated as EITI Compliant
Compliant countries must undergo Validation every 3 years
If Validation Report shows progress but not all the EITI Requirements, thecountry will remain a Candidate (and try again with time restriction)
If country does not proceed to Validation on time, or Validation shows nomeaningful progress, the Board may revoke candidate status
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Further Information: www.eiti.org
Thank you!
http://www.eiti.org/http://www.eiti.org/