Post on 18-Dec-2015
The 2013 Resource Governance Index
A measure of transparency and accountability in the oil, gas and mining sector
Marie LintzerAccra, August 2013
http://www.revenuewatch.org/rgi
What’s at stake?
• Oil, gas and mining sector governance as a development challenge– In resource rich countries:
• Over 1 billion people live on less than $5 a day• 640 million live on $2 a day or less.
– In 2011, Nigeria’s oil revenues alone were 60 percent higher than international aid to all of sub-Saharan Africa.
• Governance is the challenge, but also the solution. • The RGI aims to help advance this effort.
2
Why is a measure of resource governance needed?
• Raise awareness about a major development challenge
• Attract investors• Concretize what may be seen as a vague
challenge • Enable evidence-based policymaking and
advocacy• A diagnostic tool to identify global and country
reform priorities
3
What is the Resource Governance Index?
• A measure of transparency and accountability of the oil, gas and mining sector in 58 countries.
• 2012 data• 173 questions• 50 indicators• >100 researchers/experts
4
How is the Index built: summary
5
Resource Governance Index 2013
Institutional & Legal Setting
Reporting Practices
Safeguards & Quality Controls
Enabling Environment
10 Indicators; 16 Questions 20 Indicators; 122 Questions 15 Indicators; 35 Questions 5 Indicators
Index structure
6
Institutional & Legal Setting (20%) Reporting Practices
(40%) Safeguards & Quality Controls (20%) Enabling Environment
(20%) 10 Indicators 20 Indicators 15 indicators 5 Indicators Indicator Indicator Indicator Indicator
1 Freedom of information law 1 Licensing process 1 Checks on licensing process 1Accountability & democracy (EIU Democracy Index & WGI voice and
accountability)
2 Comprehensive sector legislation 2 Contracts 2 Checks on budgetary process 2 Open Budget (IBP Index)
3 EITI participation 3 Environmental and social impact assessments 3 Quality of government reports 3 Government effectiveness (WGI)
4 Independent licensing process 4 Exploration data 4 Government disclosure of conflicts of interest 4 Rule of law (WGI)
5 Environmental and social impact assessments required 5 Production volumes 5 Quality of SOC reports 5
Corruption (TI Corruption Perceptions Index & WGI control of
corruption)6 Clarity in revenue collection 6 Production value 6 SOC reports audited
7 Comprehensive public sector balance 7 Primary sources of revenue 7 SOC use of international accounting
standards
8 SOC financial reports required 8 Secondary sources of revenue 8 SOC disclosure of conflicts of interest
9 Fund rules defined in law 9 Subsidies 9 Quality of Fund reports
10 Subnational transfer rules defined in law 10 Operating company names 10 Fund reports audited
11 Comprehensive SOC reports 11 Checks on Fund spending 12 SOC production data 12 Government follows Fund rules
13 SOC revenue data 13 Fund disclosure of conflicts of interest
14 SOC quasi fiscal activities 14 Quality of subnational transfer reports
15 SOC board of directors 15 Government follows subnational transfer rules
16 Comprehensive Fund reports 17 Fund rules
18 Comprehensive subnational transfer reports
19 Subnational transfer rules 20 Subnational reporting of transfers
80% of countries do not meet satisfactory governance standards
1. N
orw
ay2.
Uni
ted
Stat
es (G
ulf o
f Mex
ico)
3. U
nite
d Ki
ngdo
m4.
Aus
tral
ia (W
este
rn A
ustr
alia
)5.
Bra
zil
6. M
exic
o7.
Can
ada
(Alb
erta
)8.
Chi
le9.
Col
ombi
a10
. Tri
nida
d an
d To
bago
11. P
eru
12. I
ndia
13. T
imor
-Les
te14
. Ind
ones
ia15
. Gha
na16
. Lib
eria
17. Z
ambi
a18
. Ecu
ador
19. K
azak
hsta
n20
. Ven
ezue
la21
. Sou
th A
fric
a22
. Rus
sia
23. P
hilip
pine
s24
. Bol
ivia
25. M
oroc
co26
. Mon
golia
27. T
anza
nia
28. A
zerb
aija
n29
. Ira
q30
. Bot
swan
a31
. Bah
rain
32. G
abon
33. G
uine
a34
. Mal
aysi
a35
. Sie
rra
Leon
e36
. Chi
na37
. Yem
en38
. Egy
pt39
. Pap
ua N
ew G
uine
a40
. Nig
eria
41. A
ngol
a42
. Kuw
ait
43. V
ietn
am44
. Con
go (D
RC)
45. A
lger
ia46
. Moz
ambi
que
47. C
amer
oon
48. S
audi
Ara
bia
49. A
fgha
nist
an50
. Sou
th S
udan
51. Z
imba
bwe
52. C
ambo
dia
53. I
ran
54. Q
atar
55. L
ibya
56. E
quat
oria
l Gui
nea
57. T
urkm
enis
tan
58. M
yanm
ar
0
20
40
60
80
100 98
92
8885
8077 76 75 74 74 73
7068
6663 62 61
58 57 56 56 5654 53 53
51 5048 47 47 47 46 46 46 46
43 43 43 43 42 42 41 4139 38
3734 34 33
31 3129 28
26
19
13
5 4
Satisfactory (71-100) Partial (51-70) Weak (41-50) Failing (0-40)
7
Regional performance
8
RGI Results for the 58 countries
Transparency is missing where it is needed most
10
Satisfactory performance is possible in diverse contexts
11
State-owned companies in 45 countries
Statoil
Petrobras
Rosneft
PDVSA
Pertamina
CNPC
Sonangol
ZCCM
-IH
Petrotrin
Petroecuador
YPFB
NNPC
YOGC
ARAM
CO SNH
STAM
ICO
Nile Petroleum
GecaminesZMDC
Libyan National Oil Corporation
BAPCO
Northern Coal Enterprise
Turkm
engas
0
20
40
60
80
100
12
Natural resource funds in 23 countries
0
20
40
60
80
100
$1 trillion
13
Recommendations to improve resource transparency and accountability
• Disclose contracts signed with extractive companies. • Ensure that regulatory agencies publish timely,
comprehensive reports on oil, gas and mining operations.• Extend transparency and accountability standards to SOCs
and natural resource funds. • Concerted effort to control corruption, strengthen the rule
of law and guarantee civil and political rights.• Adopt international reporting standards for governments
and companies.
14
RGI products on http://www.revenuewatch.org/rgi
• 58 printable country pages
15
RGI products• 58 detailed country questionnaires with sources for every
indicator score
16
RGI products• An interactive tool for comparing and visualizing resource
governance
17
RGI products
• 5 regional factsheets summarizing regional findings and recommendations, translated in regional languages.
18
Ghana’s mining sector overall performance on the
RGI
19
Institutional and legal setting
20
Reporting practices
21
Safeguards and quality controls
22
Enabling environment
23
Ghana’s mining sector
24
Institutional & Legal Setting (20%) Reporting Practices
(40%) Safeguards & Quality Controls (20%) Enabling Environment
(20%)
Indicator Indicator Indicator Indicator
1 Freedom of information law 1 Licensing process 1 Checks on licensing process 1
Accountability & democracy (EIU Democracy Index & WGI voice and
accountability)
2 Comprehensive sector legislation 2 Contracts 2 Checks on budgetary
process 2 Open Budget (IBP Index)
3 EITI participation 3 Environmental and social impact assessments 3 Quality of government
reports 3 Government effectiveness (WGI)
4 Independent licensing process 4 Exploration data 4 Government disclosure of
conflicts of interest 4 Rule of law (WGI)
5Environmental and social
impact assessments required
5 Production volumes 5 Quality of subnational transfer reports 5
Corruption (TI Corruption Perceptions Index & WGI control of corruption)
6 Clarity in revenue collection 6 Production value 6 Government follows
subnational transfer rules
7 Comprehensive public sector balance 7 Primary sources of revenue
8 Secondary sources of revenue
9 Subsidies
10 Operating company names
11 Subnational reporting of transfers
Thank you!
http://www.revenuewatch.org/rgihttp://www.revenuewatch.org/rgi/findings http://www.revenuewatch.org/rgi/countries