EITIfactsheet2013 EITI factsheet What is the EITI? What is the EITI Standard? What are the benefits of the EITI? Governments benefit from following an internationally recognised transparency standard that demonstra tes commitment to reform and anti-corruption, and leads to improvements to the tax collection process and enhanced trust and stability in a volatile sector. Companies benefit from a level playing field in which all companies are required to disclose the same information. They also benefit from an improved and more stable investment climate in which they can more effectively engage with citizens and civil society. Citizens and civil society benefit from receiving reliable information about the sector and a multi-stakeholder platform where they can better hold the government and companies to account. Energy security is enhanced by a more transparent and level playing field. This increased stability encourages long-term investment in production – and thus improves the reliability of supply. The EITI Standard is a set of seven requirementsthat countries need to meet in order to be recognised as first an EITI Candidate and ultimately an EITI Compliant country. The Standard is overseen by the i nternational EITI Board, with members from governments, companies and civil society. Countries implement the EITI Standard to ensure full openness of how their natural resource wealth is managed. By implementing the Standard countries must disclose taxes and other payments made by oil, gas and mining companies to government in an annual EITI Report. The Report must also include explanato ry information about the natural resource sector, including: production data, state ownership, transfers to local government, licensing information, state-owned enterprises, and social and infrastructure investments. It is also encouraged to include additional informationsuch as: beneficial ownership, contract transparency and transit payments. When all this information is gathered in an EITI Report,it allows citizens to see for themselves how their government is managing their natural resource wealth. Transparency can only lead to accountability if there is understanding of what the figures mean and public debate about how the country’s resource wealth should be managed. Therefore, the EITI Standard requires that EITI Reports are comprehensible, actively promoted and contribute to public debate. The Extractive Industries Transparency Initiative (EITI) is a global coalition of governments, companies and civil societyworking together to improve openness and accountable management of revenues from natural resources. Why do we need the EITI? How does it work? Natural resources, such as oil, gas, metals and minerals, belong to a country’s citizens. Extraction of these resources can lead to economic growth and social development . However, when poorly managed it has too often led to corruption and even conflict . More openness around how a country manages its natural resource wealth is necessary to ensure that these resources can benefit all citizens. EITI implementing countries each have their own national secretariat and multi-stakeholder group with members from government, companies and civil society. Representatives from implementing countries serve on the international EITI Board. The EITI International Secretariat serves the Board and manages the daily operation of the EITI at a global level.
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