What is EITI
The Extractive Industries Transparency Initiative (EITI) is the global standard for the good governance of oil, gas and other mineral resources.
Guided by the belief that a country’s natural resources belong to its citizens, the EITI has established a standard to promote the open and accountable management of oil, gas and mineral resources.
The EITI Standard requires countries to publish timely and accurate information on key aspects of their natural resource management, including how licenses are allocated, how much tax, royalties and social contributions companies are paying, and where this money ends up in the government at the national and local level.
Through the EITI, governments, companies and citizens gain insight into who is operating in the sector and under what terms, how much revenue is being generated, where it ends up and who it benefits.
With the EITI, policy makers, investors, governments, civil society organizations, academics and journalists have transparent and verified information. This information contributes to a well-founded debate about the financial flows between the minerals sector, including the mining industry, and the government. Targeted reforms can then be taken to combat corruption and promote good governance.
In every implementing country, the EITI is supported by the MSG (multi-stakeholders group), a coalition of government, companies and civil society, providing a platform to build trust and encourage multi-stakeholder dialogue.
DID YOU KNOW…
- billion people live in countries rich in oil, gas and minerals. With good governance, the revenues from extractive industries can have a significant impact on reducing poverty and boosting shared prosperity.
- 2.3 trillion US Dollars in estimated revenues have been disclosed in EITI Reports from 394 fiscal years.
- 95% of EITI data is publicly available in open data format.
- On average 85% of Suriname’s export earnings come from the mining sector between 2013 – 2017
- Suriname became an EITI candidate in May 2017
- Suriname must publish two EITI reports in 2019, covering the years 2016 and 2017.
How EITI Works
- The national MSG (multi-stakeholders group) in each country decides how their EITI process should work.
- Key information about the governance of the sector is reported annually alongside recommendations for improving sector governance.
- This information is widely disseminated to inform public debate and ensure recommendations are followed up.
Informing public debate:
Publicly available information improves the debate about the management and use of a country’s natural resources. Leaders can be held accountable for their decisions.
EITI data are used to:
- inform legal and fiscal reforms
- strengthen tax collection
- create financial models to handle fluctuating commodity prices
- monitor whether contracts are being adhered to
- clarify the investment environment for companies.