Earlier this year the Extractive Industries Transparency Initiative (EITI) held its fifth Global Conference in Paris. The event was dominated by often lively debate on three broad issues: the extent to which the voluntary EITI was complemented by the requirements of the US Dodd-Frank Act (esp. Sec. 1504, the Cardin-Lugar Amendment); what comes next for those countries deemed compliant with EITI; and what could be done beyond transparency to ensure that the greatest social and economic benefit is secured from natural resource wealth.
Shell CEO Peter Voser made news by suggesting that Dodd-Frank’s reporting requirements diminished the sovereignty of resource-rich countries, which were being treated as ‘a problem and not a solution’ in contrast to the approach of the voluntary EITI.
Dr. Mo Ibrahim, a member of the Oversight Board of the Natural Resource Charter, warned against seeing any contradiction between Dodd-Frank-style regimes and EITI. Ibrahim called on Europe to ‘show its moral character’ by swiftly following the US example. And it certainly seems that the EU and its members are gearing up to act.
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