“The development challenge of the decade is undoubtedly resource governance,” said Daniel Kaufmann, RWI president, addressing an Extractive Industries Transparency Initiative (EITI) roundtable this week.
Along with EITI chair Clare Short and Norwegian Minister of International Development Heikki Holmås, Kaufmann joined civil society organizations from around the world as well as oil, gas and mining company representatives in Oslo, Norway, to discuss the future of EITI and next steps in the fight for resource revenue transparency.
Governments and companies have disclosed more revenue information in recent years, and countries such Iraq and the Democratic Republic of Congo, long plagued by conflict and corruption, have signed on to EITI and agreed to its reporting requirements. A new era of openness is upon us, but better resource governance in countries rich in oil, gas and minerals remains critical to the future of these nations.
In his speech, Kaufmann honed in on four “powers” that will strengthen efforts to establish transparency and accountability as international standards:
- Data
- Smart transparency
- Incentives
- Partnerships
Whether their wealth comes in the form of barrels of oil or heaps of diamonds, resource-rich countries have often fared worse than their neighbors on many governance measures. Corruption thrives, poverty rates increase and civil unrest escalates—largely due to poor management.
Data and research can cut through the secrecy and provide civil society and government officials with the information needed to inform the public. With information, citizens can lobby for their cause and intelligently address their government. It is the responsibility of international organizations, including Revenue Watch, the World Bank and EITI, to share research findings with local actors.
Access to information is critical, but only if it is “smart transparency,” for not all transparency is effective. “Zombie transparency” is opaque, aggregated information. “Partial transparency” includes disclosure of only revenues rather than contracts, expenditures, sovereign funds and other valuable information.
Governance matters for development, yet many nations fall short. Controlling corruption is key to better development outcomes, and transparency with sanction has more power.
Belonging to a global transparency “club,” like EITI, is a powerful incentive to do the right thing and operate in an open, accountable manner. As founding members of this club, Revenue Watch, EITI, Publish What You Pay and other organizations in this movement have to make sure not just any country can get in by maintaining only minimal standards. We have to instill inclusiveness, along with tough implementing criteria, so countries have incentives to improve and become a real performer, or “club member.”
It’s these partnerships with other institutions, large and small, domestic and international, that have the power to make a real impact in these resource-rich countries and across the globe. Making transparency and accountability international standards is no easy task, so we in the international community need to join forces and map out activities, divide up tasks and strategically pair up in key countries. Working together, we can accomplish more than we ever would alone.
Carolyn Bielfeldt is RWI communications coordinator.
