Natural Resources, the Extractive Industries Transparency Initiative, and Global Governance
This chapter analyzes the Extractive Industries Transparency Initiative (EITI) as a global governance tool to curb adverse effects of non-renewable natural resource extraction and commodification, and its interlocking challenges for environment, security, and justice. EITI’s premise that transparency in state resource revenues will foster broader societal transformations so far seems illusory. EITI lacks sanctioning mechanisms vis-à-vis participating companies that hinder full transparency, for example by evading the payment of taxes through tax loopholes. Such problems cannot be solved by resource-rich countries alone, but require political intervention by states that host global financial hubs as well as the most powerful multinational resource extraction companies. Going forward, an “EITI Plus” should also include environmental sustainability standards, so it may strengthen, not contradict broader global agreements such as the UN’s Agenda 2030 for sustainable development and the Paris Climate Accord.