World Bank (2008) ‘Implementing the Extractive Industries Transparency Initiative: Applying Lessons from the Field’

Precept 2 states that successful natural resource management requires government accountability to an informed public. Transparency in such a process is a crucial first step. The Extractive Industry Transparency Initiative (EITI) is a mechanism through which such transparency can be fostered in natural resource revenues. Thus, it supports the principles of Precept two and is a key instrument for implementation.

The report by the World Bank provides a review of the early successes and challenges of EITI-implementation. The EITI is a global standard with the objective of promoting transparency in natural resource revenue flows, particularly between government and extractive companies. Once such company audits are made publicly available, stakeholders can hold the government to account. Such third party oversight is an important element for Precept two. In the report’s review of EITI implementing countries a number of overarching lessons and themes emerge. These include:

      - The countries that had the greatest success in EITI implementation were also those countries that had consistent and dedicated high level political leadership.

       - Civil society ought to participate and engage, not merely act as observers.

       - Sharing knowledge among other EITI implementing countries, especially regionally, can prove very fruitful.

       - Whilst EITI is a voluntary initiative, legislative backing can help to create greater certainty for all stakeholders.

 Access the report here.