popular articles

EITI: 17 years after its creation?

EITI, the Extractive Industries Transparency Initiative, was created 17 years ago to promote transparency in this sector, which is vulnerable to corruption. Although praised for its efforts, the real effectiveness of EITI remains a matter of debate. It aspires to become a global standard, with 55 member countries and extensive financial oversight.

Please share:

EITI, the Extractive Industries Transparency Initiative, celebrated its 17ᵉ anniversary this year. Inaugurated in 2003, this initiative aims to promote transparency of information across the extractive value chain. Its aim is to reduce the risks of corruption and poor governance in this sector. Extraction is a particularly vulnerable industry to fraud and misappropriation of public funds.

This often leads to mismanagement of resources and endemic corruption in the states concerned. Some economists even refer to this type of phenomenon as the “resource curse”. This problem is particularly prevalent in Africa, in both the oil and mining sectors. In Angola, for example, it is estimated that several billion dollars in public funds have been embezzled by President Santos’ family.

In this context, the EITI represents a major step forward in international transparency and the fight against illicit flows. However, its track record has been disputed since its implementation in 2003. While many experts applaud the transparency efforts undertaken, others are more skeptical about the real scope of this initiative. So, 17 years after its creation, what assessment can be made of EITI worldwide?

EITI: a standard that is constantly evolving worldwide

Since its creation, EITI has been promoting its transparency rules worldwide. The aim is to make the initiative an internationally recognized and binding standard for the sector. So far, with 55 member countries from every continent, this objective has been partially achieved. Many of these countries are African, reflecting a real awareness of the importance of transparency.

The organization even boasts impressive figures for monitoring financial flows. Nearly $3 trillion has been covered by the EITI standard since its inception. More than 800 civil society organizations are also involved in the initiative, along with nearly 60 companies in the extractive sector. This success is also supported by major international organizations such as the G20 and the IMF.

matia kasaija

For the latter, cooperation is envisaged to make the EITI criteria a condition of the aid provided to States. The organization thus directly assists the fund in its recommendations to producer countries. In the future, this could have a significant impact on the extractive sector, as it accompanies the globalization of transparency standards.

Unfortunately, for the time being, international recognition of EITI standards is still hampered by a number of heavyweights in the sector. The countries of the Middle East and North Africa, with the notable exception of Iraq, are not part of the organization. Yet these countries account for a significant percentage of the world’s extraction capacity. Similarly, neither China nor Russia is considering integration at this stage.

EITI: a limited improvement in the transparency of the extractive industries

To promote its internationalization, EITI can count on a number of successes in terms of transparency. In all member states, there has been a marked improvement in auditing and financial reporting controls. Studies by the University of Sussex have also shown positive environmental effects.

But it is above all in financial terms that progress has been most spectacular. In Nigeria, for example, EITI has enabled the government to recover nearly $2.5 billion in royalties. In Zambia, almost 874 operating licenses have been cancelled for failure to comply with EITI standards.

Yet this improvement in transparency remains limited. In fact, the actions undertaken do not impose any transparency constraints on national governments. Yet it is at this level of governance that the majority of corruption cases are found. In the Democratic Republic of Congo (DRC), for example, EITI membership has done absolutely nothing to curb the organized corruption of the Kabila regime.

EITI 2020

EITI: a mixed record in terms of public debate

To combat corruption at government level, EITI’s promoters were counting on the mobilization of civil society. When it was set up, the organization’s aim was to encourage public debate and raise awareness among local populations. This public debate was even seen as a sine qua non for the emergence of societal accountability.

So far, however, the results in this area have been extremely mixed. On the one hand, some companies have really benefited from the transparency of information to launch a genuine democratic debate. In Nigeria, for example, the implementation of EITI standards has reinforced demands for reform of the oil sector. In Latin America, these standards are also helping to improve dialogue between companies and indigenous communities.

On the other hand, for many countries, the adoption of EITI standards has not advanced the public debate. Countries such as Kazakhstan and the DRC are characterized by the weakness of their democratic debate. In reality, the importance of the latter depends largely on the strength of civil societies. In countries at war or under dictatorship, the absence of civil society considerably limits public debate.

Since 2003, the EITI balance sheet can be seen as a glass half-full or half-empty. On the one hand, the organization has succeeded in promoting an internationally applicable standard of transparency for extractive activities. On the other hand, its adoption remains limited due to the absence of any real constraints on governments.

Register free of charge for uninterrupted access.

Publicite

Recently published in

The Algerian energy group Sonelgaz is offering its technical expertise to Burkina Faso to strengthen its electrical infrastructure, illustrating Algeria's strategic intention to consolidate its presence in sub-Saharan Africa’s energy markets.
Washington again delays the enforcement of sanctions against NIS, the Serbian energy company controlled by Gazprom, extending the status quo until the end of April according to Serbian President Aleksandar Vucic.
Washington again delays the enforcement of sanctions against NIS, the Serbian energy company controlled by Gazprom, extending the status quo until the end of April according to Serbian President Aleksandar Vucic.
The United States has strengthened its support for Guyana amid Venezuela’s claims over the Essequibo, warning Caracas of a military response in case of aggression targeting the territory or American oil interests.
The United States has strengthened its support for Guyana amid Venezuela’s claims over the Essequibo, warning Caracas of a military response in case of aggression targeting the territory or American oil interests.
No attacks on energy installations have been reported since a partial agreement announced by the United States, marking a pause in hostilities targeting critical infrastructure.
No attacks on energy installations have been reported since a partial agreement announced by the United States, marking a pause in hostilities targeting critical infrastructure.
During a visit to Guyana, U.S. Secretary of State Marco Rubio announced that any Venezuelan attack on the territory or oil infrastructure of Guyana would trigger a military response, heightening regional tensions.
US Secretary of State Marco Rubio launches meetings with Caribbean leaders to discuss energy security, trade pressures and regional instability, including in Haiti and Guyana.
US Secretary of State Marco Rubio launches meetings with Caribbean leaders to discuss energy security, trade pressures and regional instability, including in Haiti and Guyana.
Hungary’s Foreign Minister travelled to Moscow for talks with Russian authorities on energy security, reinforcing a strategic energy partnership already bolstered by record gas and oil deliveries in 2024.
Hungary’s Foreign Minister travelled to Moscow for talks with Russian authorities on energy security, reinforcing a strategic energy partnership already bolstered by record gas and oil deliveries in 2024.
Donald Trump imposes 25% tariffs against importers of Venezuelan oil, particularly targeting China, which has already condemned an infringement on its economic sovereignty, signaling increased tensions in global energy markets.
Donald Trump imposes 25% tariffs against importers of Venezuelan oil, particularly targeting China, which has already condemned an infringement on its economic sovereignty, signaling increased tensions in global energy markets.
The planned visit of senior US officials to Greenland sparks political backlash in Nuuk, as no new government has been formed since the 11 March elections.
Starting 2 April, the United States will apply a 25% customs duty on all goods from countries trading with Venezuela’s oil or gas sector, Donald Trump announced.
Starting 2 April, the United States will apply a 25% customs duty on all goods from countries trading with Venezuela’s oil or gas sector, Donald Trump announced.
Washington imposes sanctions on Luqing Petrochemical, the first independent Chinese refinery targeted for its alleged ties to Iranian oil, as part of its intensified economic pressure campaign against Tehran.
Washington imposes sanctions on Luqing Petrochemical, the first independent Chinese refinery targeted for its alleged ties to Iranian oil, as part of its intensified economic pressure campaign against Tehran.
A Panama-flagged vessel suspected of belonging to the Russian shadow fleet was detained by German customs after suffering an engine failure in the Baltic Sea in January.
A Panama-flagged vessel suspected of belonging to the Russian shadow fleet was detained by German customs after suffering an engine failure in the Baltic Sea in January.
Amidst war and geopolitical uncertainty, Ukraine must choose between European influence and the strategic promises of the United States, a choice that could redefine its economic and security future, particularly in terms of natural resources.
As Russian gas deliveries via Nord Stream have ceased, Europe is exploring possible solutions to repurpose or replace this major infrastructure within a complex energy transition and diversification of supply sources.
As Russian gas deliveries via Nord Stream have ceased, Europe is exploring possible solutions to repurpose or replace this major infrastructure within a complex energy transition and diversification of supply sources.
Donald Trump and Vladimir Putin are set to discuss the sharing of rare earth resources in Ukraine on Tuesday, including energy production plants and territories rich in raw materials. These resources are at the heart of the ceasefire negotiations.
Donald Trump and Vladimir Putin are set to discuss the sharing of rare earth resources in Ukraine on Tuesday, including energy production plants and territories rich in raw materials. These resources are at the heart of the ceasefire negotiations.
UK Energy Minister Ed Miliband met Chinese officials in Beijing to discuss energy cooperation and reducing greenhouse gas emissions, despite disagreements over Hong Kong, forced labour, and the war in Ukraine.
UK Energy Minister Ed Miliband met Chinese officials in Beijing to discuss energy cooperation and reducing greenhouse gas emissions, despite disagreements over Hong Kong, forced labour, and the war in Ukraine.
The European Union has announced a €4.7 billion investment to support South Africa’s energy transition. This initiative is part of a broader strategy of economic cooperation and strategic repositioning of international partners.
American and Vietnamese companies have signed several commercial agreements totaling $4.15 billion, primarily in the energy and aviation sectors, aiming to reduce the trade imbalance between the two countries.
American and Vietnamese companies have signed several commercial agreements totaling $4.15 billion, primarily in the energy and aviation sectors, aiming to reduce the trade imbalance between the two countries.
Presidents Vladimir Putin and Nicolás Maduro announced an agreement to expand their cooperation, particularly in the energy sector. This initiative comes amid increased U.S. sanctions against Caracas.
Presidents Vladimir Putin and Nicolás Maduro announced an agreement to expand their cooperation, particularly in the energy sector. This initiative comes amid increased U.S. sanctions against Caracas.
A tripartite meeting between China, Russia and Iran will be held in Beijing to address the Iranian nuclear dossier as tensions surrounding Iran's nuclear programme continue to rise.
A tripartite meeting between China, Russia and Iran will be held in Beijing to address the Iranian nuclear dossier as tensions surrounding Iran's nuclear programme continue to rise.
Donald Trump applies his negotiation methods to the energy sector, leveraging tariffs and targeted statements to influence markets and trading partners. Behind these decisions lies an ambiguous commercial strategy blending bluff and concrete actions.
Newcleo and Danieli have signed a strategic agreement to integrate advanced nuclear reactors into steel production processes, aiming to eliminate fossil fuel use amid rising energy costs in Europe's industrial sectors.
Newcleo and Danieli have signed a strategic agreement to integrate advanced nuclear reactors into steel production processes, aiming to eliminate fossil fuel use amid rising energy costs in Europe's industrial sectors.
The U.S. Secretary of Energy has announced a strategic shift towards fossil fuels, abandoning several climate-related policies from the previous administration, creating uncertainty among energy professionals about long-term market stability.
The U.S. Secretary of Energy has announced a strategic shift towards fossil fuels, abandoning several climate-related policies from the previous administration, creating uncertainty among energy professionals about long-term market stability.
The United States has decided not to renew Iraq’s exemption, granted since 2018, allowing Baghdad to import electricity from Iran despite U.S. sanctions. This measure increases pressure on Iraq, whose energy supply largely depends on its neighbour.
The United States has decided not to renew Iraq’s exemption, granted since 2018, allowing Baghdad to import electricity from Iran despite U.S. sanctions. This measure increases pressure on Iraq, whose energy supply largely depends on its neighbour.

Advertising