Extractive Industries Transparency Initiative (EITI)

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Founded Year: 
2002
Sector: 
Social sector
Entity Type: 
Non Governmental Association
The Extractive Industries Transparency Initiative (EITI) is a non-profit association which promotes openness of the management of natural resource revenues
 
The EITI was formed to change the so-called “resource curse”, which refers to the paradox that countries with a wealth of natural resources, tend to have less economic growth and worse development outcomes than countries with fewer natural resources. Too often this is due to poor governance, which leaves citizens suffering from conflict and corruption.

To address these challenges, countries can implement the EITI Standard. This include that governments must disclose how much they receive from oil, gas and mining companies operating in their country and these companies must disclose how much they pay the governments. These figures are then reconciled by a third party and published in an annual EITI Report. The information in the EITI Report should contribute to public debate on how to improve the management of the country’s natural resources so that the wealth produced can benefit all citizens.