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.

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RGI products on http://www.revenuewatch.org/rgi

• 58 printable country pages

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RGI products• 58 detailed country questionnaires with sources for every

indicator score

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RGI products• An interactive tool for comparing and visualizing resource

governance

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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