Markets working to support sustainable development

Localising transparency: Exploring EITI’s contribution to sustainable development

Publication ID: 
16555IIED
Authors: 
Emma Wilson, James Van Alstine
Date: 
May 2014
Description: 

Countries dependent upon exploitation of natural resources often suffer from the ‘resource curse’, characterised by poor economic growth, low living standards, corruption, and political authoritarianism. ~~Civil society organisations have been campaigning for voluntary and legal transparency in natural resource sectors as a way to combat these issues. These efforts helped to establish the Extractive Industries Transparency Initiative (EITI), a voluntary global standard for disclosing company payments and government revenues. Yet a decade since EITI was established, it is unclear how transparency works for development, particularly for those living closest to resource extraction projects. ~~This paper considers whether ‘localising’ the transparency agenda – ie making it more relevant to local communities directly affected by extractive industry operations – might increase its potential to deliver sustainable development and poverty alleviation objectives within resource-dependent countries. ~~Five case studies compare two lower middle-income countries that are EITI compliant (Ghana and Nigeria), two middle-income countries that are EITI compliant (Azerbaijan and Kazakhstan), and a lower-income country that is considering EITI participation (Uganda). ~~The report offers a set of recommendations for EITI stakeholders aimed at ensuring that information generated through the EITI and other transparency initiatives leads ultimately to positive social and economic change for local communities.~~This publication forms part of IIED’s work to identify pathways towards inclusive and responsible mining.