Promoting the Revenue Transparency Index

The Promoting Revenue Transparency Project, conducted by Transparency International and the Revenue Watch Institute, will attempt to track and detail the progress of the revenue transparency movement with a series of indexes using a set of robust indicators.

Oil, gas and mining industries can generate huge revenues for companies and governments. However, rather than fostering economic growth and development, extractive revenues are too often associated with poverty, conflict and corruption – a phenomenon often called the "resource curse." There is growing recognition that one part of the solution lies in transparent and accountable management of natural resource revenues, to ensure that natural resource wealth is translated into societal well-being.

A growing international movement of governments, companies, investors and civil society activists is supporting a new standard for natural resource revenue management, through the promotion of the Extractive Industries Transparency Initiative (EITI), among other activities. Participants in this movement recognize that revenue transparency improves both broader governance and the investment climate for businesses, and provides a necessary condition for sustainable development.

The Promoting Revenue Transparency Project (PRT) has three specific objectives:

1. To measure revenue transparency performance by all relevant stakeholders and diagnose areas for improvement
2. To promote high standards for revenue transparency
3. To support the use of PRT's findings by companies, rating agencies, investors, government regulators and civil society as robust indicators of revenue transparency performance

The PRT will measure and compare the degree of revenue transparency currently demonstrated by selected companies, their host countries where production is taking place, and the home countries where companies are registered or raising capital. The assessments will result in three separate reports with a focus on the oil and gas sectors, to be later extended to the mining sector. The Companies Report 2008 will be the first to be released, with the Host and Home Government assessments to follow.

The PRT will heighten awareness in both governments and the private sector of the steps required to achieve and to mainstream revenue transparency. It also aims to mobilize governments and companies not yet participating in EITI and related transparency measures to join those efforts.

This initiative builds on work done in 2005 by Save the Children UK with support from RWI. Under the overall title "Beyond the Rhetoric," Save the Children UK produced an initial series of reports focusing on companies and home governments.