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Good Governance Extractive Industries Transparency Initiative (EITI)
Promoting transparency along the supply chains in the extractive sector is a key objective of German development cooperation. Accordingly, Germany supports the Extractive Industries Transparency Initiative (EITI) (External link) for greater financial transparency and accountability in public revenues from the extractive sector.
The aim of the global initiative is to tackle the resource-curse through financial transparency and accountability, to set clear expectations for extractive companies and enhance participation for civil society. The EITI, based in Oslo, was founded in 2002 and is supported by the voluntary commitment of currently 55 governments. The German lawyer Peter Eigen, founder of Transparency International, played a key role in shaping the first years of the initiative as one of its initiators and first chair of the EITI Board. The EITI standard is implemented by state and civil society actors in joint efforts with private companies and investors through a multi-stakeholder process.
As part of this process, implementing countries annually disclose information on tax revenues, licenses, production figures und other important data related to the extraction of oil, gas and mineral resources. The aim is to prevent revenues from taxes or royalties from being lost due to corruption. With access to information on how much taxes and royalties mining companies have paid and what public revenues the state has collected from the sector, citizens are provided with an instrument to effectively hold companies and governments accountable.
Sector Programme Commitment
The German development cooperation has been supporting EITI politically, financially and technically since 2003. This includes technical assistance to national EITI processes in partner countries through bilateral and regional programmes and contributing to the international EITI secretariat and the EITI multi-donor trust fund administered by the World Bank. With a total funding volume of 30 million EUR, German development cooperation is among the leading supporters of the EITI worldwide.
The Sector Programme “Extractives and Development“ supports the Federal Ministry for Economic Cooperation and Development (BMZ) in asserting its interests as supporting country in the International EITI Board and in promoting and developing the initiative further. Moreover, the sector programme develops new approaches and concepts to contribute to the strategic priorities of the initiative including anti-corruption and impact measurement.
Germany is strongly committed to working towards an efficient and impactful design of the initiative. In 2016, the sector programme evaluated the effectiveness and impacts of EITI in the study Assessing the Effectiveness and Impact of the Extractive Industries Transparency Initiative (EITI). Based on this study, and as part of broader technical assistance package for national EITI-processes, the sector programme developed the Monitoring and Evaluation (M&E) of EITI Implementation guideline, which is available in three languages.
Additionally, the Sector Programme conducts trainings for national EITI stakeholders on EITI implementation issues. A specific emphasis is placed on new requirements such as gender or environmental reporting or new methods of EITI reporting. German development cooperation supports the national implementation of the EITI process in 17 partner countries.