The Extractive Industries Transparency Initiative [EITI] is an international standard for openness around the governance of oil, gas, mineral and other natural resources. Through this avenue Governments are expected to disclose how much they receive from extractive companies operating in their country and these companies disclose how much they pay. Governments sign up to implement the EITI Standard and must meet its requirements. With plans for Exxonmobil to commence work in this regard here, Guyana is aiming to submit its candidature application to become an EITI candidate country in August 2017.
The extensive work to satisfy the comprehensive list of requirements to make Guyana eligible to submit its application is being successfully completed by a tripartite Multi-Stakeholder Group and the Guyana Extractive Industries Transparency Initiative [GYEITI] National Secretariat.
Advocates of EITI argue that companies will have a stronger social license to operate locally and this will lead to better relations with communities and Government. For companies, the EITI could promote better understanding of company activities and mitigate political risk and public discontent. This is necessary in order to safeguard assets and pave the way for further investments. It could also be a catalyst for developing local capacity and infrastructure.
The EITI’s benefits to civil society will come from increasing the amount of information in the public domain about the revenues that governments manage on behalf of citizens, thereby potentially promoting more accountable governance.
Benefits for Government include an improved investment climate by providing a clear signal to investors and international financial institutions that the government is committed to greater transparency. EITI also assists in strengthening licensing, record keeping and tax collection systems, and legal and fiscal frameworks for a relatively low cost. The EITI could also promote greater economic and political stability which can prevent conflicts in the extractive industries.