anthonyrichter

Registration for the EITI Global Conference has opened | Extractive Industries Transparency Initiative

2010-10-23T04:18:00.000-07:00

See you all in Paris Registration for the EITI Global Conference has opened | Extractive Industries Transparency Initiative

Revenue Watch Index | Revenue Watch Institute

2010-10-23T04:14:00.000-07:00

Read all about it in the first ever Revenue Watch Index Revenue Watch Index | Revenue Watch Institute

Ghana, Mongolia, Indonesia Move Ahead in the EITI | Revenue Watch Institute

2010-10-23T04:11:00.000-07:00

Congratulations to friends in Mongolia, Ghana, and Indonesia!

Ghana, Mongolia, Indonesia Move Ahead in the EITI | Revenue Watch Institute

Testimony at US Helsinki Commission on the Link between Revenue Transparency and Human Rights

2010-04-23T14:03:00.000-07:00

Yesterday Chairman Benjamin L. Cardin and Co-Chair Rep. Alcee L. Hastings of the US Helsinki Commission held a hearing on The Link between Revenue Transparency and Human Rights. Here are statements by the Chair and Co-Chair's , Deputy Assistant Secretary Daniel Baer of the US State Department, Ian Gary of Oxfam America, Here's a link to my testimony, Max Bokayev, Chairman of the Kazakhstan NGO "Arlan." Or you can read it right here:

U.S. Helsinki Commission
Commission Hearing on
“The Link between Revenue Transparency and Human Rights”
April 22, 2010

Testimony of Anthony Richter
Chairman, Governing Board of Revenue Watch Institute
Member, International Board of Extractive Industries Transparency Initiative (EITI)

Chairman, Members of the Commission,

I thank you for the opportunity to talk to you about the link between natural resource revenue transparency and human rights.

The Revenue Watch Institute is a non-profit policy institute and grantmaking organization that promotes the responsible management of oil, gas and mineral resources in resource-rich countries. We have been involved in the Extractive Industries Transparency Initiative (EITI) since its inception and I am currently a member of its International Board.
I would like to talk to you about three issues relating to the subject of today’s hearings: first, how revenue transparency and human rights are connected; second, the record of resource rich countries on adherence to human rights; and third, the work of EITI in dealing with questions of rights and democracy. I will conclude with some policy recommendations for your consideration.

Revenue Transparency and the Need for Rights

There is now a substantial consensus that natural resource revenues must be transparent. There are several reasons for this: first, energy security, as consuming countries increasingly view transparency as a way of minimizing uncertainty about supplies. Second, in the current economic downturn transparency is seen as helping to price risk more accurately. Third, transparency is seen as a way to foster better development outcomes. Finally, and for some, most importantly, transparency is viewed as an important weapon in combating corruption.

Countries with non-renewable natural resource wealth face special opportunities and special challenges. If used well, these resources can create greater prosperity for current and future generations; if used poorly, they can cause economic instability, social conflict and lasting environmental damage. The transparent, accountable and effective management of non-renewable resources can be an engine for economic growth, promote the welfare of the population in general and be environmentally sustainable. And most importantly, where corruption and mismanagement are present in such economies there are often human rights abuses.
Revenue transparency can only be meaningful in a society that respects basic rights. Basic rights enable the public to learn and discuss the facts about how their society is governed, to air this information in the media, and to have recourse to elections. Among other institutions, revenue transparency needs good NGO laws, an independent judiciary, a strong parliament capable of playing its oversight role as well as a free and independent media.

There are two significant areas where revenue transparency and human rights interact: first, with respect to the rights of civil society advocates and organizations to promote transparency and accountability. Advocates of transparency face politically motivated harassment. EITI has confronted cases in several countries – including Niger, the Republic of the Congo, and Gabon. Some of these are described in more detail in the testimony submitted today by Oxfam America. We share their concerns.

The second link between revenue transparency and rights is the question of what political arrangements and basic freedoms are necessary for transparency mechanisms to be meaningful. Do you need basic democracy and human rights first? It may seem obvious, but corrupt resource rich countries do not sign up to conventions or protect rights very well.

Resource Rich Countries and Ratification of Human Rights and Governance Instruments

I have appended a table showing the status of countries participating in the Extractive Industries Transparency Initiative, including those which recently lost their candidate status. The table shows that many of the EITI countries have committed to international human rights instruments. But the performance in human rights protection of many of these countries is poor. The table also shows a high number of these countries have failed to sign up to important instruments, such as the Optional Protocol to the Convention Against Torture & Other Cruel Inhuman or Degrading Treatment or Punishment and the Convention for the Protection of All Persons from Enforced Disappearance. A number of countries have failed to ratify the UN Convention Against Corruption.

Resource-rich countries also lag in the area of freedom of information. Worldwide there has been dramatic progress made by campaigners for freedom of information. 82 countries have adopted freedom of information laws; in fact just this week Pakistan adopted a constitutional amendment guaranteeing a citizen’s basic right to information. The broad international advance of this issue is a cause for celebration. But of the countries in the EITI only 6 of 34 have a law providing access to information: Albania, Azerbaijan, Kazakhstan, Kyrgyzstan, Norway and Peru. Further research along these lines looking at ratifications and performance of other indicators is needed.

The responsibility for change lies not only with the countries themselves. Oil, gas and mineral wealth insulates countries from international criticism. In a perceptive article in Foreign Affairs Aryeh Neier identified the inconsistency in applying human rights norms, calling this a “new double standard.” In short: human rights abuses in countries with geopolitical or economic significance receive less criticism than countries without the same trade, energy or strategic significance. Major resource exporting countries have strategic significance to consumers, and may thus get a pass where human rights abuses are concerned. A shared concern for good governance, built on a shared expectation of human rights, is reflected in new transparency mechanisms such as the Extractive Industries Transparency Initiative.

The Extractive Industries Transparency Initiative (EITI) and Civil Society

The Extractive Industries Transparency Initiative, created in 2003, is the global standard for companies to disclose their payments to governments and for governments to state their receipts. In each country EITI is run by government and supervised by a multistakeholder group consisting of government, companies and civil society. The results for each country are independently audited and published. Then the entire process is externally validated and finally judged to be compliant or not by the EITI’s international board. The free participation of independent civil society is an essential element of this process.

The EITI deals with the issue of democracy and rights largely through guaranteeing the participation of civil society. Transparency without such participation is hollow. The EITI’s criteria, principles, and rules articulate a framework for civil society to play an active, free, full and independent role in the process. A country must meet these conditions in order to be deemed compliant with EITI’s transparency standard. Appendix II contains some of the key references to civil society from the EITI Rules.

A Complementary Transparency Initiative: The Natural Resource Charter

The Natural Resource Charter, in the words of one of its founders, Paul Collier, author of The Bottom Billion, “is intended to complement EITI in spelling out, in clear precepts, the entire decision chain by which natural assets can become a blessing instead of a curse.” The Charter articulates an even clearer link than EITI does between transparency and human rights. In part the Charter states, “The principle that the public has a right to full and timely information necessary to meaningfully participate in environmental and social decision-making, which resource extraction invariably involves, has been enshrined in international instruments including the Universal Declaration of Human Rights, the Rio Declaration, the Aarhus Convention, and the OECD Guidelines for Multinational Enterprises.” The Natural Resource Charter is not an international convention with rules, adherence procedures and sanctions. However, the Charter does represent the most formally articulated statement of best practices for resource rich countries.

EITI Experiences and Mechanisms Dealing with the Rights of Civil Society

The prestige associated with implementation of EITI provides a strong incentive for implementing countries to adhere to its guidelines. Participating governments are highly motivated to maintain their status within the initiative. The EITI Board has repeatedly used its authority to address harassment of civil society organizations or denial of the freedoms civil society needs for its participation to be meaningful. Cases have arisen in Azerbaijan, Gabon, Guinea Conakry, Mauritania, Niger, and the Republic of the Congo. The following examples of EITI’s actions or structures illustrate its growing commitment to protect civil society participation.
Ensuring that the Conditions are Right for EITI Implementation

To further strengthen EITI’s leverage in dealing with rights abuses, it has been suggested that “implementing countries formally commit themselves to respect the UN Declaration of Human Rights and recognize its applicability to the representatives of the civil society involved in EITI. It also was suggested that EU Member States prepare a statement announcing that their use of the EU Guidelines on Human Rights.”

Decisions of the Board: The Case of Ethiopia

In one of its most significant recent decisions the board declined to admit Ethiopia as and EITI candidate due to its excessive constraints on freedom of association. The board concluded that Ethiopia’s “Proclamation on Charities and Society” would prevent civil society groups from being sufficiently independent and meaningfully participate in the process. The board decided, in effect, not to admit Ethiopia “until the Proclamation on Charities and Society is no longer in place.” This is the only such instance in the history of EITI where a country has failed to be admitted and the grounds for this action was clearly rights-based.

EITI’s Rapid Response Committee

The EITI Board has created a Rapid Response Committee to deal with what it calls “implementation problems,” largely to protect civil society. When the Committee intervenes it does so with considerable force. This can involve EITI’s Chair and members of the multistakeholder committee, which includes governments and companies as well as civil society groups. The emphasis is on ending harassment, coercion or constraints on civil society, without which EITI literally cannot function. In December 2009 EITI adopted a policy imposing sanctions, ranging from suspending to de-listing a country that violates EITI Principles or Criteria.
Interventions by EITI’s Rapid Response Committee have helped, if not to correct general patterns of human rights abuse, then to stop harassment in specific cases, using the influence and authority of the Initiative.

Working Group on Participation of Civil Society Organizations in the EITI

The discussion of the Ethiopia case has led, in part, to the establishment of a Working Group to address the conditions required for participation of civil society. The Working Group will soon prepare coherent and comprehensive guidance fto the board. The EITI Board should, in a timely and rigorous manner, undertake the assessment it is now commencing via the Working Group on Civil Society Participation, of the necessary conditions that need to be in place to ensure that independent civil society can freely and meaningfully participate in the EITI process. This assessment should guide the revision of the EITI sign-up criterion for countries that are interested in becoming EITI Candidates.

Conclusions

The international movement to foster transparency in resource-rich countries has emerged as one of the most potent and fast growing campaigns of recent times. To be effective, transparency needs to develop in a context that provides for meaningful participation by civil society including NGOs, parliament, and the media. The track record of resource-rich countries both in ratification to and implementation of international human rights treaties remains an area of very significant concern. Those concerned with the advance of transparency in these countries must also see to it that basic rights are protected.

The EITI is not a human rights framework, but rather a transparency standard. But EITI has helped to create the space where transparency supporters in civil society can test the political will of their countries to adhere to the commitments they have made by signing onto international human rights agreements; it is also a “gateway” or springboard for transparency and good governance initiatives. As the global transparency standard the EITI is evolving a body of language, actions, and decisions, that define its expectations with respect to the democratic feedoms and rights needed for it to work. The principles, criteria, and rules make it clear that civil society’s participation must be full, active, independent, and free of constraint and coercion.

To make revenue transparency mechanisms effective a concerted effort is needed to protect human rights and create an enabling environment of basic rights and freedoms in resource-rich countries.

Recommendations

To The United States Government and Congress:

 Adopt a clearly integrated approach that focuses human rights support into other policies directed at countries rich in natural resources;

 Press resource-rich countries to adopt all important human rights treaties such as the Optional Protocol to the Convention Against Torture & Other Cruel Inhuman or Degrading Treatment or Punishment and Convention for the Protection of All Persons from Enforced Disappearance;

 Press for full ratification and adherence by resource-rich countries to the United Nations Convention Against Corruption (UNCAC);

 Consistently apply human rights standards to countries with strategic energy resources;
 Continue to press for compliance with already ratified UN Human Rights instruments and treaties;

 Support adoption of freedom of information laws in resource-rich countries;

 Ensure that the International Convention on Civil and Political Rights Article 19 is fully observed as EITI and civil society (including media) cannot function properly without such guarantees;

 Encourage adoption within the EITI of a robust EITI Policy Note on Civil society Participation outlining clearer expectations of applicants, Candidate and Compliant countries, and encouraging the US State Department’s Bureau for Democracy, Rights and Labor to work closely with US government representation on the board;
 Endorse better NGO laws in resource-rich countries using the experiences of groups such as the International Center for Not-for-profit Law.
 Building on the work of groups such as the National Democratic Institute (NDI) and the International Republican Institute (IRI), to build the capacity of parliaments to play their critical oversight role;
 Develop a broad-based integrated program to protect rights of transparency advocates in resource-rich countries bringing in the experience of organizations Freedom House, NDI, IRI, etc.
 Pass the Lugar/Cardin Energy Security through Transparency Act (S.1700).

To the Organization for Cooperation and Security in Europe (OSCE):

 Endorse EITI and forge closer links between resource revenue transparency and human rights observance The shared desire to hold an OSCE Summit with meaningful outcomes opens a door for a discussion or resource revenue transparency with a view of an endorsement of EITI by the Summit.

Thank you for allowing me to testify today to discuss this important subject. I look forward to answering any questions Commission members may have.

EITI Board Sends Wake Up Call to Candidates Countries

2010-04-19T08:30:00.000-07:00

In lieu of a personal post as I am trying to sort out a return home from behind the ash cloud, I am posting the Revenue Watch Institute press release which captures some of my views.

April 16, 2010

EITI Board Sends Wake Up Call to Candidates to Continue with Transparency Process: Board Tests Its Own Resolve to Apply Rules

Revenue Watch encourages advocates to keep pressing for accountability in oil and mining sectors

FOR IMMEDIATE RELEASE

BERLIN—The global movement for accountable natural resource management gained ground today as the Extractive Industries Transparency Initiative (EITI) resolved questions over the status of 18 countries that had missed a key deadline in the voluntary program.

At a meeting in Berlin, Germany, the EITI International Board decided on limited extensions for 16 countries to complete their reporting and validation processes, including Kazakhstan, Timor Leste and Ghana.

The board also announced that Equatorial Guinea and São Tomé and Príncipe have lost their EITI candidate status and will need to reapply if they want to rejoin the initiative. The Revenue Watch Institute urges all stakeholders in these countries to renew their commitment to improve transparency practices, take action to regain EITI candidate status and move quickly toward full EITI compliance.

Revenue Watch Institute Governing Board Chair Anthony Richter, a member of the EITI International Board, said, "This was a road test for the EITI board to see whether it could apply its own rules. Countries are learning what it means to implement EITI standards, and the EITI itself is establishing what it takes to enforce them. We still have concerns about the board’s will in this regard. We’ll be pressing for clear decisions on validation this fall."

Richter called the decisions by the EITI board a test of authority and will for all EITI participants. "It's important that the board articulate and apply clear, consistent standards. The countries receiving extensions must now take rigorous steps to meet all EITI requirements. The extensions that have been granted should be viewed as a wake up call for those countries to renew their commitment to implement the EITI and to complete the validation process in a timely manner."

"A country cannot claim EITI candidate status while performing well short of the requirements," said Revenue Watch Institute Director Karin Lissakers. "A demonstrable effort to complete all reporting and a commitment to government dialogue with citizens are essential elements of compliance."

The next test for the EITI will come when the remaining candidate countries complete their validation processes and the EITI board conducts a full review of each country's EITI reporting and governance program.

A total of 33 countries have committed to implement the EITI, most recently including Chad, whose candidate application was accepted by the board in Berlin. To date, Liberia and Azerbaijan are the only two countries to be ruled fully compliant.

CONTACT:
Jed Miller, +1 917 257 0670, jmiller@revenuewatch.org

Validation Deadline Arrives: A Crucial Test for EITI

2010-03-09T18:56:00.000-08:00

Today is the deadline for 20 of the implementing countries in the Extractive Industries Transparency Initiative to complete validation. As everyone who has been watching this process now knows, 19 of the 20 didn't make it in time. This will be a source of great frustration for supporters of EITI and rightly so. For detractors of EITI it will be proof to judge -- prematurely -- that it has been a dismal failure. Some countries have been signed up for EITI for several years and yet were not ready; it is understandable that with so many countries going through validation at the same time and for the first time that it was messy; maybe the countries were poorly advised or assisted in the task. But still, some countries such as Liberia were so determined to move ahead that they were deemed compliant ahead of time. There are many reasons why countries ended up as they did; and some may have tried to game the system by attempting to demonstrate that they were more committed than they actually were, hoping to be rewarded while not acting in good faith; others clearly didn't consider validation a priority.

Still, many of the countries were working hard and, if given an extension, will complete and move on to be assessed for their compliance. As much as this is a test for the implementing countries it is also challenge for the EITI itself. How rigorously the Board handles this will be a measure of how seriously this voluntary experiment can be taken. If any extension is given to any country it will have to be granted according to the established rules using clear principles, consistently and transparently applied on a one-time basis.

The ultimate evaluation of EITI still lies a way ahead, after looking at a class of compliant countries' performance we can judge how much of a difference it has made in battling corruption or promoting better development outcomes. EITI, which has done so much to popularize the idea of a global standard for transparency in oil and mining rich countries, is just one (though presently the most notable and elaborated) of the many ideas out there -- other initiatives, including powerful mandatory legislative efforts are among them. We should embrace them all.

If you want to understand all this better see Publish What You Pay's explanation and or the PWYP press release and Revenue Watch's press release.

Iraq Applies to EITI

2010-01-26T20:55:00.000-08:00

With 115 bn barrels proven reserves Iraq has the world's 3rd largest supplies and will be the most significant producer in the Initiative. Nuri al Maliki, Prime Minister of Iraq, spoke at the Iraq EITI launch event in Baghdad on January 10, 2010. Since the oil industry is 100% nationally owned a special form of transparency of receipts will be devised for Iraq. Another challenge for Iraq is that civil society organizations will need to get a lot of help to play their role in the process given the hurdles they have had to overcome.

The EITI Board will review the application in Oslo next month. Iraq will have two years to complete the validation process.

EurasiaNet Civil Society - Azerbaijan: Detention of Youth Activists Causes Storm in Blogosphere

2009-07-23T05:25:00.001-07:00

EurasiaNet Civil Society - Azerbaijan: Detention of Youth Activists Causes Storm in Blogosphere

Shared via AddThis

OSCE Meeting on Energy Security: Will Transparency Be on the Agenda?

2009-07-03T03:01:00.000-07:00

The Organization for Security and Cooperation in Europe (OSCE) is meeting on July 6 to talk about energy security in Europe. I have looked at the agenda but don't see telltale signs such as the words transparency or accountability anywhere in sight. I would think that the US and Kazakhstan both of which are involved closely with establishing the international standard for transparency in the extractives sector would raise this issue. It's not only important that Kazakhstan do this as they are both preparing for validation as an implementing country but also as the incoming Chairman-in-Office of the 53-country institution. It is a reminder that the OSCE has not yet endorsed EITI while the EU and the OECD have done. This should be a priority for us to achieve with Kazakhstan in the lead role next year. Also transparency is vital to energy security as the EU and Ukraine recognized when they established this as a goal for their memorandum of understanding earlier this year.

NGO Laws in Azerbaijan, Kyrgyzstan and beyond: apparent victory in the first round

2009-07-02T06:45:00.001-07:00

There is an ominous pattern of attempts in certain natural-resource rich countries in the former Soviet Union to adopt restrictions on the NGO laws that regulate civil society. In Azerbaijan we have just witnessed an amazing effort to undercut the operating environment for NGOs by the Parliament; this has now been beaten back by a remarkable action by a civil society coalition in Azerbaijan supported internationally by governments, legal experts and activists. In Azerbaijan the proposed amendments would have had a direct impact on the ability of civil society to play its essential role along with government and companies in the multi-stakeholder process at the heart of the Extractive Industries Transparency Initiative. Among those directly and adversely affected would be the NGO Coalition for Transparency in the Extractive Industry and the National Budget Group, but of course the impact would reach far wider. Moreover this would have had a negative impact on Azerbaijani democracy more broadly. A functioning democracy requires a strong civil society with independent, sustainable non-governmental organizations. NGOs are essential to the development and realization of democracy and human rights as they promote public awareness; facilitate participation in public life and help secure transparency and accountability of public authorities.

Now, apparently, most of the harmful provisions have not been adopted according to international reports from EurasiaNet and from Baku.. We should watch this space for further detailed analysis from authoritative groups like the International Center for Not-for-Profit Law. Kyrgyzstan meanwhile has another draft law in its parliament awaiting action at some point in the future. There, too, vigilant attention has had a seemingly positive result for now, with a working group created with the President's secretariat to manage NGO relations and issues.

While an immediate crisis seems to have been averted the situation calls for vigilance and also reflection about what the basic requirements of civil society are to ensure that they play their critical role in the EITI and also in ensuring transparency and accountability.

Oby: EITI at the Crossroads

2009-05-16T07:36:00.000-07:00

Obiageli Ezekwesili, is one of Africa's great women. Vice President for Africa of the World Bank and formerly Nigeria's Minister for Solid Minerals Development and Chairperson of Nigeria's EITI , she is a strong-willed visionary who played a crucial role in the establishment of EITI when she represented Nigeria on the International Advisory Group and continues to support it from within the Bank.

So when she appeared somewhat unexpectedly at the EITI board it was a true pleasure. What she had to say was aimed to provoke thought in this select audience. As she addressed the national coordinators from some 25 EITI candidate countries she asked "What comes after validation?" While the EITI Rules are clear that validation gives a five-year certification of compliance, the question looms just over the horizon for 2010, when a number of candidate countries are likely to get the seal of approval.

Don't be fooled by her training as an accountant: Obi thinks on the grand scale and asks the larger questions of this experiment in transparency that is still proving itself, even as it gathers momentum. To her way of thinking the process of validation shouldn't be just a technocratic, bureaucratic exercise, culminating in a meeting with some reports to go unread on someone's bookshelf.

Oby sees EITI as potentially transformative, a trigger for change, and validation being a point to take the measure of what will have been achieved, by that measure of progress. EITI should be a way of showing how the private sector will have become an engine for change, how the private sector privileges quality environments where transparency provides a more stable attractive climate attracting foreign investment. For citizens EITI will show that opacity undermines the management and governance of the sectors that dominate their lives, and that they deserve and will get a different approach from their leaders and will have created the ability to put the politicians' old behavior on the table.

EITI is at the crossroads, looking at validation and what lies beyond. Without seeing EITI within the larger context, absent the ability to grow EITI and use its collateral benefits for broader change, it could end up as something of interesting for a small group of donors, the World Bank, government officials and an initiated group of civil society. Without connecting EITI to this broader agenda, we deprive it of its full potential and impact. What do we need to do before and after validation to achieve the goals consistent with Oby's ambitious vision?

The White House is with Us

2009-05-14T18:35:00.000-07:00

It was a long day of not the most scintillating stuff, board and committee discussions and the like, but it finished on a high note. At the World Bank's EITI reception Obama adviser Michael Froman stopped by to offer remarks. Froman is, of course, deputy assistant to the president and deputy national security adviser for international economic affairs, serving jointly at the National Security Council and the National Economic Council. He was seen at the President's side at the London G20 Summit, responsibility for which is among his important roles. So his coming by to welcome EITI was a big deal. Froman recalled that among President Obama's very first official acts he issued an executive order directing that "government should be transparent...government should be participatory...and government should be collaborative" and that every move the administration makes is thought through from this perspective. Among the key words of encouragement were "the Obama Administration strongly supports EITI" and notes its unique achievement of bringing together public sector, private sector and the nonprofit sector. Froman noted that transparency is good for companies good for countries, and good for investors. He called out Azerbaijan for being first through the validation process and also hailed Steve Gallogly of the US Department of State for his service to the EITI board. Froman was later seen mingling with guests from Liberia, Azerbaijan, and the Publish What You Pay US gang, Sarah Pray, Ian Gary, and Corinna Gilfillan. EITI, Revenue Watch and its friends were buoyed by the high-level show of support. Where do we go from here?

Down the tubes: Following Pipeline Revenues

2009-05-13T15:42:00.000-07:00

A quick post on transit revenues, before the EITI board meeting starts: Revenue Watch and EITI are jointly hosting a workshop today on how and whether we include transit fees for piping or shipping hydrocarbon resources in the framework of EITI, which has quickly become the global standard for extractive revenue disclosure. In particular we will be looking at the European case mostly, of gas and oil that comes from the Caspian and Russia going through Ukraine and Bulgaria(or the Caucasus and Turkey) It's a tricky business for a number of reasons and the European case is in a way anomalous as the pipeline is owned by the consumers rather than by the producers as is normally the case. Then there is the murky nature of the midstream / downstream trade which in a way is even more riddled with corruption and of a pettier more brutal type than the upstream. If you haven't read it yet, do take a look at Global Witness' 2006 report It's a Gas Funny Business in the Turkmen-Ukraine Gas Trade and if you want a more technical view read Revenue Watch's Expanding the EITI Agenda to Transportation of Hydrocarbon Resources. Either way, European energy security and the great cause of good governance mean that this issue is not going away anytime soon.

2009-05-08T10:22:00.000-07:00

It’s that time again. EITI “week” in Washington, DC.

Well, it’s been a while since I posted but I wanted my loyal readership to know what I have been up to since Doha. In March I spent a few days in Europe and took the opportunity to meet some of the new board members of the EITI. While in London Radhika Sarin the international coordinator of Publish What You Pay, Diarmid O’Sullivan and I visited with Tony Hodge who is President of the ICMM, the International Council on Mining and Metals. I also saw Stuart Brooks of Chevron along with my fellow PWYP colleagues Joe Williams as well as Diarmid from Global Witness. We got a chance with both of them to catch up on our various perspectives on the issues the new board of EITI will face. We also talked about about where EITI is heading – big picture, blue sky conversations, and also some of the nitty gritty of the board’s work. In Berlin I was hosted by Peter Eigen, Chairman of the Board of EITI, and he pulled together a half-day of roundtable meetings with German ministries and German NGOs. Unfortunately Ulla Mykota, the German EITI board member, wasn’t able to be there from Bonn, but I look forward to seeing her next week. Germany is so important for EITI and is also playing practically the leading role within the European Union in shaping relations with countries to the East, including the former Soviet states.

In fact a German company, RWE, Rheinisch-Westfälisches Elektrizitätswerk, just recently signed an MOU with the government of Turkmenistan for offshore gas exploration, the Oil and Gas Journal reports. Given RWE’s role in Nabucco it would also be good to hear about RWE supporting EITI. In Brussels I had an espresso with EITI Board member Henk Mahieu, General Counsellor, Dept. of Economic Issues, Ministry of Foreign Affairs. I hadn’t appreciated the extent to which Belgium is involved with natural gas and they have some major terminals for LNG as well.

Back home in the US I traveled to Houston, Texas, with Sarah Pray and Ian Gary (Oxfam) of the Publish What You Pay US campaign, to meet with ExxonMobil Production CEO Rich Kruger and John Kelley (another colleague from the EITI board). We then spent a couple of hours with Marathon, after a break for some pretty good Texas barbecue. The main item on the menu however with ExxonMobil and Marathon is the Extractive Industries Transparency Disclosure Act. PWYP US’ Open the Books campaign is making good progress and we are trying to communicate our respective positions and get a bit closer as the bill moves towards being reintroduced in the US Senate and the House with bipartisan support, which may be soon.

Looking ahead to the EITI week we have a number of interesting developments. As validation gets underway in earnest all of the National Coordinators will be in Washington getting their operations in high gear.

Revenue Watch will hold its board and advisory board meetings looking at everything from the natural resource charter, the commodities boom and the impact on extractives transparency, unpacking "package deals" and a hot new index to track transparency in resource rich countries. RWI is also holding a workshop on how transit revenues could be included into the framework of EITI based on a recent report looking at Azerbaijan, Ukraine, Kazakhstan and Georgia.

The EITI is going to look at progress of the now more than two dozen countries seeking to get validated as EITI compliant. Some are moving swiftly, like Liberia, Nigeria, Ghana, with Cameroon, Kazkahstan, Timor-Leste and Mongolia also doing well. There is reason for concern about other countries experiencing political or governance disruptions. If you look at the list of the countries you can more or less figure this out on your own but Publish What you Pay and Revenue Watch are also looking at the situation and trying to figure out what can be done to help the process along. Meanwhile more countries are still trying to get into EITI, proof that our brand is strong: Albania, Burkina Faso, Mozambique, Zambia and lately Afghanistan are all seeking candidacy. It will be a busy week.

Relentless Pursuit

2009-02-22T17:27:00.000-08:00

Apropos of my last post on Marc Ona I read an article in the New York Times today about Gabon, quoting Marc Ona. Also in the paper today was a piece by Jad Mouawad about Total's worldwide explorations, with particular emphasis on Yemen. In the case of Gabon - it's a country's dependence on oil and the impact on the environment of its relentless development; in the other it's a company's relentless pursuit of the resource. But for some reason, in neither account does the Times address the fiscal transparency aspect of this issue, which would seem like a worthwhile thing to do. That's something to keep pursuing -- relentlessly.

Marc Ona Essangui

2009-02-17T17:28:00.000-08:00

Marc Ona Essangui couldn't make it to Doha from Gabon. Let's raise his name at the EITI Stakeholder Forum.

Make Transparency the Vector of Growth

2009-02-17T13:09:00.000-08:00

Today the keynote speakers took center stage to explain why this movement is gaining momentum. It's a matter of will. Ellen Johnson-Sirleaf, president of Liberia made the biggest impression. Liberia has come so far, so fast. The reason? The single issue that changed Liberia was political will -- her political will -- to make space for civil society, parliament and government to play their roles. That will made everything else possible. And when you look at some of Liberia's neighbors that have made less, little or no headway against corruption - you see how much difference her political will has made for her people.

As Peter Eigen and Jeroen van der Veer reminded us: it's that unique multistakeholder initiative.

I also liked what the Deputy Prime Minister of Qatar, Sheikh Abdallah bin Hamad al al-Attiyah had to say. He's a straight-talking, insightful, affable Sheikh. Reinforcing the point of Johnson-Sirleaf he said "corruption has no country, no religion, no nationality." He touted Qatar's code of conduct and its high ranking on the TI Corruption Index. Best of all he was genuinely in his element on the subject and kept extending the session to allow more and more questions and discussion.

And now it's the economy itself that imho is rewriting the rules and calculations for how extracting countries think about being transparent in their business dealings and how we think about making the case for it. Throughout the day different speakers emphasized that the current financial crisis has revealed just how much investors need accurate information to make good business decisions; one reason banks haven't lent as much as they should have is that they can't evaluate risk properly. At one point, on a different panel, Karina Litvack of F&C Asset Management said it short and to the point: "Make transparency the vector of growth." (I am not exactly sure what a vector is but it sounded really persuasive).

George Soros said it in his remarks: "investors have have become severely risk averse. Instead of investors competing to pour money into resource rich countries, countries and companies will have to compete to attract needed capital. Information will be at a premium in this new market climate. Investors will want to see your books and they will want to know that the numbers can be trusted. They will want to see political stability. So countries should compete on transparency, accountability and good resource governance because financial regulators will be demanding more disclosure from governments and companies that want to raise funds in their markets."

"...in this difficult financial climate, resource rich countries that implement EITI will have a competitive edge. EITI not only makes vital information public and verifiable. It also promotes a level of trust among the country’s stakeholders that encourages investment."

Ho hum "We are very grateful to the Qataris for hosting us here in Doha" is something I have heard a lot from the dais here. In fact I do think it is very important that a country like this signed up to host the conference, and it has been most generous of them as well. We need them as part of the movement for sure and their interest underscores that this is becoming more and more mainstream, a stated objective of the movement. But is it okay for folks to whine a little, too? It's the familiar brand of cognitive dissonance that comes of anti-corruption activists and officials sipping cappucinos at the Ritz Carlton. It's a coming-of-early-middle age moment (like turning 30). So part of it may just be that the process is maturing and feels a teeny bit as if some of the edge has been lost. It's that feeling you get after 2 exhilarating hours hashing out best practices of accounting and reporting templates. But it's also the way it was when I was 30; I am not worried, it is empowering to be more in charge of your future. And there's plenty of fight, passion, energy,optimism and righteousness to go around still, once we get back to the reality of the places that need EITI to be more open, more just, less poor. So if you have been feeling a little anomie think of it this way: you will have been doubly grateful to be here so that when you do leave you will feel more connected to the mission again. And just to help, we did have that very nice PWYP reception with virtually no snacks except for a few little bowls with oddly chewy peanuts. That's more like it!

It's okay, Gavin, just one more day.

A New EITI

2009-02-16T14:41:00.001-08:00

Okay, so it was cool to be elected today to the EITI board. But let's talk about what was actually a little bit interesting if you had been with me at Doha today.

Big-picture macroeconomic 'aha' moment: listening to George Soros speak at the National Oil Company workshop put on by Revenue Watch. I have gotten to listen to George quite a bit on the financial crash and the broader economic crisis over the past few months. Today what I heard that was new and fascinating was how he connected them to the collapse of oil prices. He observed that as the financial crisis gathered pace with the sub-prime mortgage meltdown two things happened: first of all, there was an increasing tendency for investors to seek profits by accumulating natural resources as a hedge; this led to a boom and a bubble in oil prices, partially explained by the fact that the market bought into the deceptive notion of Peak oil. (It's misleading because the half-life of oil projects can move a lot depending on the price, so in fact the potential for creating new energy can be considerably more elastic than the markets believe). Oil prices rose through 2008 without a corresponding rise in demand or consumption. Second, as the credit crunch progressed the dollar declined; this facilitated the price rise but paradoxically also a production drop as it became tempting for producers to keep the oil in the ground rather than monetizing above ground. To do so would have been to take an appreciating commodity and decrease its value by selling it for progressively depreciating dollars. Got that?

At the EITI board the clear emotional highpoint was the validation of Azerbaijan as the first EITI compliant country. As the motion passed the vote someone (was that Karina?) let out a whoop which brought on sustained applause. The most righteous moment was civil society board members' clear and strong statements making it plain that Gabon's treatment of Marc Ona was totally unacceptable; in seeing off Gabon's board membership civil society and the others (including the US) made an implicit pledge to keep absolutely vigilant in the protection of civil society actors in the future. I got the sense in the subsequent discussion that Gabon would have wanted to stayed on the board, but their plans to do so just didn't materialize. Translation: Marc Ona may have been successfully intimidated, but Gabon won the battle but lost the...well just lost this battle for now; hence they were left to twist in the wind with nary a statement of support from governments or companies, save the valedictory praise from our Olympian, for providing the occasion for a "healthy" discussion.

At the Constitutional meeting the EITI Association was founded by a throng of activists in business attire. Why is Jonas Moberg looking at me that way?

An activist questioned the Chairman and Head of the Secretariat about a Mauritanian's candidacy as an alternate on the board.

Breaking-new-ground moment Lorenzo Delesgues of Integrity Watch Afghanistan and Haroun Mir of the Afghanistan Center for Policy Research and Studies flew in from Kabul. IWA has done a very good report (and the only publicly accessible one I know)on the Aynak copper mine deal with China, a staggering $3 bn investment from China Mettalurgical and others. I don't think this deal has gotten the attention it deserves: it might help create some balance between the drug and non-drug parts of Afghanistan's GDP. It was very cool that some of the sharpest minds on Afghanistan took part: Saad Mohseny and Ahmed Rashid.

Celebrity moment of the day Delegates nibbled kebabs and coconut rice under the palms with the former president of Botswana, Azerbaijani Finance Minister Samir Sharifov, the Qatari Minister of Oil and Gas, Liberian President Ellen Johnson-Sirleaf. These are the kind of progressive international political personalities that make natural resource transparency nerds like me very excited.

The putting-it-all-back-into-perspective moment Over drinks with Oxfam's indomitable Bennett Freeman Simon Taylor inspirational director of Global Witness said: "I am amazed at how far we've come in so short a time, but there's still so much left to do. I mean, Jesus Christ! we won the basic argument back in 2002 and still in 2009 we have only partially succeeded in some places in accomplishing it."

A good thought going in to tomorrow's meeting.

Neophyte blogger revelation that I don't need to reveal: I am still figuring out uploading and layout of photos. But you get the general idea.

Personal Statement

2009-02-15T14:06:00.000-08:00

As we are all gathering here in Doha for the meeting that is going to elect the new board I thought this is as good a time as any to make sure my public statement is accessible, though many of you would have been interested saw this when Radhika Sarin sent it out recently.

Personal Statement of Anthony Richter
Chairman, Governing Board, Revenue Watch Institute

The global economic and financial crisis currently unfolding will present significant opportunities for national and international regulatory reform, strengthening efforts around the global standard in extractives transparency, the Extractive Industries Transparency Initiative. The climate for reforming industry and the attendant financing, insurance and regulatory architecture will likely never be more propitious than it is presently. To ensure this time is used to the fullest potential, vigorous civil society membership on the board of EITI at this time will therefore be especially important.

I believe my background both working with civil society and extractive issues prepares me well for board membership; I have a deep and wide network of contacts within the field and am known personally by all of the current civil society members of the EITI board. I have been involved in the issues for nearly a decade. In 2001 amidst high interest in the new hydrocarbon deals in the former Soviet Union I launched the Caspian Revenue Watch project at the Open Society Institute as a way to promote a discourse of accountability and citizen engagement. In 2003 we expanded the work to hold to account the US-led occupation of Iraq and control of its oil revenues. Throughout these formative years I was also responsible for seed funding of grassroots movements on extractives in the former Soviet Union and Mongolia, and gave the start-up fund to PWYP-US. In addition I brought in international NGOs such as the International Budget Project to build capacity and partner with groups in producing countries to monitor expenditure of these revenues. The first publication we issued at Revenue Watch, a civil society manual, Follow the Money, translated into many languages, is now being used to orient civil society activists from Africa to Afghanistan.

Since Revenue Watch Institute became an independent organization in 2006 I have served as chair of its Governing Board and maintain links to civil society through our program of capacity-building, research and advocacy alliances around the world. Second, I travel extensively to Asia, Africa, Latin America, Middle East and Europe. At the Open Society Institute where I am the Associate Director I am deeply engaged in our work in the Middle East, South and Central Asia. I frequently seek the opportunity to meet with related civil society groups in countries where EITI works, or could be expanded. I also am engaged in promoting EITI expansion in new places where I think there is promise and scope, recently in Afghanistan, Kuwait and Turkmenistan. Based in New York, I also travel frequently to Washington for OSI.

If selected for EITI board membership, a particular priority would the promotion and protection of civil society perspectives within EITI. Civil society is an essential source of innovation, vigilance and vitality that enhances the country process, as demonstrated by the inclusion of forestry in Liberia’s process, sub-national reporting in Peru, and corporate social responsibility payments in Ghana. In particular I will stand up for the vigorous defense of civil society harassed and intimidated in EITI implementing countries. The cases of Gabon and Congo Brazzaville are as disturbing examples here that we do not want to see repeated in other implementing countries. The free and independent participation of civil society in the EITI process is fundamental to the entire multi-stakeholder approach.

A second priority is representing civil society as the EITI enters a crucial stage of the validation process where countries will be judged to be compliant or not, a technical as well as a political process. This will require dedication to EITI’s principles, sound judgment as well as the capacity for dialogue.

A third priority for my tenure in the EITI board would be to support passage of the Extractive Industries Transparency Disclosure Act in the United States. I will work with all civil society, other civil society board members and particularly those in the US, working closely with the PWYP US coalition members. I will also be ready to meet with US industry and USG representatives as the new congress and the new Administration take forward their commitment to transparency and accountability, and push for the United States take its place as a fully compliant implementing country in the Extractive Industries Transparency Initiative.

On a final note - I would be interested to explore creative formats for making my own membership transparent and accessible: I have started this periodic blog, a Twitter account, and the like. I will be open to your ideas.

Arrival blues...

2009-02-14T14:47:00.000-08:00

Well, we are not getting off to a good start here, but I guess that happens quite a bit with international travel. Apparently the Sierra Leone delegation was deported from Doha airport after a visa problem. Last I hear they're still nearby, relatively, in Bahrain, and are trying to figure out a way to get back and try again. I wish someone had been able to prevent this and better yet, would get on top of this and fix it. I guess that's the responsibility of the hosts. Sometimes when you try out new venues for international conferences it doesn't always come out smoothly and you don't know why mistakes like this happen. Let's hope it's something trivial and we can get back to the main work at hand

will Azerbaijan be validated at Doha?

2009-02-14T11:38:00.000-08:00

The flight from JFK to Doha was smooth and I have had hours and hours to read all the briefing documents for the EITI board meetings here. A big question awaiting us in Doha is the first validation of any country as part of the process. It's absolutely critical that there be a legitimate and credible process and that EITI keeps it moving forward. There are 24 candidate countries now. But someone has to go first. That would be Azerbaijan. There have been many discussions about their validation about whether or not there is a real multistakeholder group. I am remembering now that we got started partnering with Azerbaijani civil society partners quite a number of years ago, with Sabit Bagirov, Ingilab Ahmedov, Galib Efendiyev; then Ilham Aliyev, still not president of Azerbaijan, but with the support of his father, the late Heydar Aliyev, came to London and announced support. So now, it looks like they will be the first. If they are, will they stay true to the process and empanel a permanent Multistakeholder group and continue to publish regular reports? I hope so. And I hope they don't just rest on their laurels but deepen EITI in their own country. It will make for a good precedent; and also a better celebration in Baku later this year.

RWI is in the house.

2009-02-14T11:35:00.000-08:00

The first part of the RWI team arrives in Doha

Letter to Secretary Clinton

2009-02-07T20:19:00.001-08:00

Letter to Secretary Clinton

2009-02-07T19:15:00.000-08:00

This is a good place to start my blog which for the time being will focus on extractive industry transparency issues that I am following as a new civil society board member of the Extractive Industries Transparency Initiative (EITI). About me: I created a project several years ago, the Caspian Revenue Watch which eventually evolved into what is now the Revenue Watch Institute

I am posting a letter sent by several US members of congress and Senators to Secretary of State Hillary Clinton. The letter argues for vigorous support of EITI and the US role in it. I think this is an important statement demonstrating that there is growing awareness and political will in the United States to back EITI.