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Extractive Industries Transparency Initiative

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The Extractive Industries Transparency Initiative (EITI) is a Norwegian-based organization that seeks to establish a global standard for the good governance of oil, gas and mineral resources. It seeks to address the key governance issues in the extractive sectors.

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99-400: The EITI Standard requires information along the extractive industry value chain from the point of extraction, to how the revenue makes its way through the government and its contribution to the economy. This includes how licenses and contracts are allocated and registered, who the beneficial owners of those operations are, what the fiscal and legal arrangements are, how much is produced, how much

198-411: A category, or the selection of the person to represent a stakeholder organization. Multistakeholder governance arrangements are being used - or are being proposed to be used - to address a wide range of global, regional, and national challenges. These governance challenges, often ones that have a significant political, economic, or security impact can be categorized as the following - (1) those involving

297-429: A central institution (be it a business, a project, or a government agency) should engage more formally with related institutions (be it other organizations, institutions, or communities). In multistakeholder governance, the central element of multistakeholder undertaking is a public concern (e.g. protection of the climate, management of the internet, or the use of natural resources), not a pre-existing organization. Second,

396-452: A certain rate and natural processes will restore them. In contrast, many extractive industries rely heavily on non-renewable resources that can only be extracted once. Natural resource allocations can be at the centre of many economic and political confrontations both within and between countries. This is particularly true during periods of increasing scarcity and shortages ( depletion and overconsumption of resources). Resource extraction

495-901: A country's wealth; however, a sudden inflow of money caused by a resource boom can create social problems including inflation harming other industries (" Dutch disease ") and corruption, leading to inequality and underdevelopment, this is known as the " resource curse ". Extractive industries represent a large growing activity in many less-developed countries but the wealth generated does not always lead to sustainable and inclusive growth . People often accuse extractive industry businesses as acting only to maximize short-term value, implying that less-developed countries are vulnerable to powerful corporations. Alternatively, host governments are often assumed to be only maximizing immediate revenue . Researchers argue there are areas of common interest where development goals and business cross. These present opportunities for international governmental agencies to engage with

594-426: A democracy, there is only one elemental category for public decision-making, the 'citizen'. Unlike the concept of 'citizen' in democratic governance theory, the concept of 'stakeholder' in multistakeholder governance theory and practice remains unsettled and ambiguous. In multistakeholder governance, there are three tiers of 'stakeholder' definitions: (1) the definition of the 'stakeholder category' (e.g. business); (2)

693-535: A given multistakeholder group, provided leave to participate in their personal, professional capacity, or formally designated to represent a specific organization. This ambiguity between commitment of the institution as a whole and the participation of a representative of a specific office or agency can affect a number of different roles inside and outside the multistakeholder group. The multistakeholder group may well appreciate being able to assert publicly that x governments or y transnational corporations are part of

792-625: A global multistakeholder body by the World Bank and the World Conservation Union (IUCN) in response to growing opposition to large dam projects. The twelve Commission members came from a variety of backgrounds, representing a broad spectrum of interests in large dams – including governments and nongovernmental organizations (NGOs), dam operators and grassroots people's movements, corporations and academics, industry associations and consultants. In WCD's final report from 2000,

891-402: A half years later. The result of Validation is a measure of how well the country is progressing to meet the requirements of the standard. It can make satisfactory, meaningful, inadequate or no progress. The EITI board will ask the country to improve aspects which Validation deemed insufficient to fulfil the standard. An overview of Validation results is available online Archived 2017-07-07 at

990-465: A major source of social unrest and conflicts in developing nations. At present, there is a particular concern for rainforest regions that hold most of the Earth's biodiversity. According to Nelson, deforestation and degradation affect 8.5% of the world's forests with 30% of the Earth's surface already cropped. If we consider that 80% of people rely on medicines obtained from plants and 3 ⁄ 4 of

1089-876: A minimum a multistakeholder group must have two or more actors from different social, political, or economic groups. If not, then the group is a trade association (all business groups), a multilateral body (all governments), a professional body (all scholars), etc. Almost all multistakeholder bodies have at least one multinational corporation or business-affiliated body and at least one civil society organization or alliance of civil society organizations as key members. Alternative terminologies for multistakeholder governance include multi-stakeholder initiatives(MSIs), Multi-StakeHolder (MSH), multi-stakeholder processes (MSPs), public-private partnerships (PPPs), transnational multistakeholder Partnerships (transnational MSPs), informal governance arrangements, and non-state regulation. The key term 'multistakeholder' (or 'multistakeholderism')

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1188-421: A multistakeholder board. For products, the goal is to facilitate ethical, environmental, and development-friendly products that are desired by consumers and beneficial for producers, manufacturers and retailers. Processes refer to new, rapidly evolving, complex and high impact technologies on the international market that lack domestic standards or regulatory oversight. The multistakeholder groups determine how

1287-634: A new approach to global water policy and development". The role of multistakeholder processes in internet governance dominated the 2003-2005 World Summit on the Information Society (WSIS). However the summit failed to address the digital divide to the satisfaction of developing countries. The final outcome of the Summit, the Tunis Agenda (2005), enshrined a particular type of multistakeholder model for Internet governance, in which, at

1386-500: A number of arenas, opposing forces are actively challenging the legitimacy, accountability, and effectiveness of these experimental changes in global governance. Stakeholder management theory , stakeholder project management theory, and stakeholder government agency theory have all contributed to the intellectual foundation for multistakeholder governance. The history and theory of multistakeholder governance however departs from these models in four ways. The earlier theories describe how

1485-559: A number of principles that should define a multistakeholder partnership. Governments "stresse[d] ...[A partnership should have a] common purpose, transparency, bestowing no unfair advantages upon any partner of the United Nations, mutual benefit and mutual respect, accountability, respect for the modalities of the United Nations, striving for balanced representation of relevant partners from developed and developing countries and countries with economies in transition, and not compromising

1584-558: A policy intervention is necessary but governments or intergovernmental organizations are unwilling or unable to resolve a policy matter. Most multistakeholder governance groups meet independently of multilateral organizations , while some may include the multilateral system for their endorsement or support. Examples of policy-oriented multistakeholder governance groups: Product, finance and process-oriented multistakeholder groups are organizations that set standards for internationally traded products and processes and/or provide financing with

1683-559: A quality-assurance mechanism, called Validation, at least every three years. Validation serves to assess performance towards meeting the EITI Standard and promote dialogue and learning at the country level. It also safeguards the integrity of the EITI by holding all EITI implementing countries to the same global standard. Each implementing country has its own national secretariat and multi-stakeholder group made up of representatives from

1782-700: A senior official in the US Department of State's Bureau of Economic and Business Affairs. She argued that "Every meeting that is enriched by multistakeholder participation serves as an example and a precedent that opens doors for multistakeholder participation in future meetings and fora." There are generally accepted definitions for 'stakeholder' in management theory and generally accepted processes for selecting 'stakeholders' in project management theory. However, there are no commonly accepted definition of 'stakeholder' and no generally recognized process to designate 'stakeholders' in multistakeholder governance. In

1881-656: A set of 23 requirements, known as the EITI Rules in 2011. The EITI Standard replaced the EITI Rules on 24 May 2013. The Standard was revised in February 2016. The EITI is organised as a non-profit association under Norwegian law. It has three institutional bodies: The Members’ Meeting, the EITI Board, and the International Secretariat. The Members’ Meeting governs the EITI and convenes alongside

1980-638: A specific section of the conference report. A separate government effort to define multistakeholder governance has been a series of United Nations General Assembly resolutions on 'partnerships'. The earliest resolution (2002) drew "the attention of Member States to multi-stakeholder initiatives, in particular, the Global Compact Initiative of the Secretary-General, the Global Alliance for Vaccines and Immunizations ,

2079-444: A specific task and, as mutually agreed, to share risks and responsibilities, resources and benefits". Civil society organizations have had a series of parallel but distinct exchanges on the theory and practice of multistakeholder governance. Two elements of the definition of multistakeholder governance that are not central to the intergovernmental debate are (1) the connection between democracy and multistakeholder governance and (2)

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2178-595: A stakeholder category, the category members could be social scientists, physicists, philosophers, environmental experts, professors of religion, lawyers, university administrators, or a professional association affiliated with scholarly work. At the G7 summit (Cornwall, UK, 11-13 June 2021) G7 leaders highlighted the importance of standards in line with their values and affirmed their support for “industry-led, inclusive multi-stakeholder approaches to standards setting”. The definition 'inclusive' multi-stakeholder approach called for

2277-487: A stakeholder group. Having an individual from a given organization participate in the leadership of a multistakeholder group does not necessary mean that the sponsoring organization (be it a business, civil society organization or a government) is itself on board. The participation of any given individual may only mean that a particular office or department has chosen to work with that multistakeholder group. The individual involved may have been granted permission to liaise with

2376-678: A stakeholder individual or group "as one that has an interest in any decision or activity of an organization" ( ISO 26000 ). Hemmati, a co-founder of the MSP Institute, a multistakeholder support organization, defines stakeholders as "those who have an interest in a particular decision, either as individuals or representatives of a group. This includes people who influence a decision, or can influence it, as well as those affected by it. The trade association of international environmental and social standard setting bodies, ISEAL, defines stakeholder groups as those "that are likely to have an interest in

2475-625: A traditional state-based response. While the evolution of multistakeholder governance is occurring principally at the international level, public-private partnerships (PPPs) are domestic analogues. Stakeholders refer to a collection of actors from different social, political, economic spheres working intentionally together to govern a physical, social, economic, or policy area. The range of actors can include multinational corporations , national enterprises, governments , civil society bodies, academic experts, community leaders , religious figures, media personalities and other institutional groups . At

2574-638: A wide variety of social actors: (a) UN agencies and bodies, (b) civil society and non-governmental organizations and their networks, (c) international agricultural research systems, (d) international and regional financial institutions and (e) representatives of private sector associations and (f) private philanthropic foundations. Unlike the multiple definitions inside the UN system, the definition of stakeholder categories for autonomous multistakeholder groups are generally versions of "interest-based" definitions. International Organization for Standardization (ISO) defines

2673-419: Is a practice of governance that employs bringing multiple stakeholders together to participate in dialogue, decision making, and implementation of responses to jointly perceived problems. The principle behind such a structure is that if enough input is provided by multiple types of actors involved in a question, the eventual consensual decision gains more legitimacy, and can be more effectively implemented than

2772-544: Is a series of broad policy papers on multistakeholder governance and a broad array of theme-specific policy options. These policy and thematic program recommendations were designed to display the new governance structure's ability to respond to a range of global crises. These global policy areas include investment flows; educational systems; systemic financial risk; philanthropy and social investing; emerging multinationals; fragile states; social entrepreneurship; energy security; international security cooperation; mining and metals;

2871-515: Is a type of land management that seeks to conserve , protect and restore habitat areas for wild plants and animals , especially conservation reliant species , and prevent their extinction, fragmentation or reduction in range . Natural resource management is a discipline in the management of natural resources such as land, water , soil , plants , and animals —with a particular focus on how management affects quality of life for present and future generations. Hence, sustainable development

2970-529: Is also a major source of human rights violations and environmental damage. The Sustainable Development Goals and other international development agendas frequently focus on creating more sustainable resource extraction, with some scholars and researchers focused on creating economic models, such as circular economy , that rely less on resource extraction, and more on reuse , recycling and renewable resources that can be sustainably managed. There are various criteria for classifying natural resources. These include

3069-438: Is another factor causing depletion of natural resources. For example, the depletion of nutrients in the soil due to excessive use of nitrogen and desertification . The depletion of natural resources is a continuing concern for society. This is seen in the cited quote given by Theodore Roosevelt , a well-known conservationist and former United States president, who was opposed to unregulated natural resource extraction. In 1982,

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3168-510: Is considered a sustainable development issue. The term sustainable development has many interpretations, most notably the Brundtland Commission's 'to ensure that it meets the needs of the present without compromising the ability of future generations to meet their own needs'; however, in broad terms it is balancing the needs of the planet's people and species now and in the future. In regards to natural resources, depletion

3267-417: Is followed according to the judicious use of resources to supply present and future generations. The disciplines of fisheries, forestry, and wildlife are examples of large subdisciplines of natural resource management. Management of natural resources involves identifying who has the right to use the resources and who does not to define the management boundaries of the resource. The resources may be managed by

3366-479: Is increasingly spelled without a hyphen to maintain consistency with its predecessor 'multilateralism' and to associate this new form of governance with one of the key actors involved that is also generally spelled without a hyphen; ' multinationals '. 'Multistakeholderism' is similarly used in parallel to bilateralism and regionalism . As an evolving global governance form, only a limited number of organizations and institutions are involved in multistakeholderism. In

3465-707: Is not uncommon for the founders of a multistakeholder groups to select a key individual to be a member of a multistakeholder group and then retroactively classify that individual and/or the individual's organization into an appropriate definitional category. At the United Nations Rio conference in 1992, governments formally accepted nine Major Groups as 'stakeholder' categories. The designated Major Groups were Women, Children and Youth, Indigenous Peoples, Non-Governmental Organizations, Local Authorities, Workers and Trade Unions, Business and Industry, Scientific and Technological Community, and Farmers. Two decades later,

3564-647: Is now cited as 'Major Groups and Other Stakeholders'. The International Labour Organization (ILO)'s governance system functions with just three constituencies: 'workers', 'business', and 'government'. In this tri-partite arrangement, workers and business are on the same footing as governments. The Committee on World Food Security (CFS) has different main categories: 'Members', 'Participants’ and 'Observers'. The CFS sees itself as "the foremost inclusive international and intergovernmental platform for all stakeholders to work together to ensure food security and nutrition for all". Their 'Participants' category however includes

3663-596: Is of concern for sustainable development as it has the ability to degrade current environments and the potential to impact the needs of future generations. "The conservation of natural resources is the fundamental problem. Unless we solve that problem, it will avail us little to solve all others." Theodore Roosevelt Depletion of natural resources is associated with social inequity . Considering most biodiversity are located in developing countries, depletion of this resource could result in losses of ecosystem services for these countries. Some view this depletion as

3762-409: Is paid, where the revenue is allocated, and its contributions to the economy, including employment. The EITI Standard is implemented in 55 countries around the world. Each of these countries is required to publish an annual EITI Report to disclosing information on: contracts and licenses, production, revenue collection, revenue allocation, and social and economic spending. Every country goes through

3861-504: Is the Global Food Safety Initiative which is designed to define their benchmarking requirements thus controlling the minimum requirements in the schemes they recognize. The difference between international standards and private standards is explained by a publication from ISO . Each organization designated to "represent" a stakeholder category can use its own method to select an individual to participate in

3960-666: Is the scientific study of the nature and status of Earth's biodiversity with the aim of protecting species , their habitats , and ecosystems from excessive rates of extinction . It is an interdisciplinary subject drawing on science, economics and the practice of natural resource management . The term conservation biology was introduced as the title of a conference held at the University of California, San Diego , in La Jolla, California, in 1978, organized by biologists Bruce A. Wilcox and Michael E. Soulé . Habitat conservation

4059-640: Is widely regarded to have started with the 1992 U.N. Conference on Environment and Development (more commonly known at the Rio Conference ). There, governments created nine major non-state groups which could be part of the official intergovernmental process. Ten years later in Johannesburg the follow-up conference created a new multistakeholder implementation process called officially "type II conference outcomes," where transnational corporations, NGOs, and governments pledged to work together to implement

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4158-583: The United Nations developed the World Charter for Nature , which recognized the need to protect nature from further depletion due to human activity. It states that measures must be taken at all societal levels, from international to individual, to protect nature. It outlines the need for sustainable use of natural resources and suggests that the protection of resources should be incorporated into national and international systems of law. To look at

4257-589: The Wayback Machine . When a candidate country passes EITI Validation, it is declared “EITI compliant” by the Board. As of September 2022, 57 countries are implementing the EITI: Other countries, such as Lebanon, France and Australia have shown interest in implementing the EITI. The EITI has made significant contributions to improved governance of the extractive sector in several countries around

4356-587: The World Economic Forum 's Global Redesign Initiative (GRI). Its 2010 600-page report "Everybody's Business: Strengthening International Cooperation in a More Interdependent World" was a comprehensive proposal for re-designing global governance. The report sought to change in fundamental ways the global governance system built since World War II. The report authored by the leadership of the World Economic Forum, including Klaus Schwab ,

4455-552: The private sector and host governments through revenue management and expenditure accountability, infrastructure development, employment creation , skills and enterprise development , and impacts on children, especially girls and women. A strong civil society can play an important role in ensuring the effective management of natural resources. Norway can serve as a role model in this regard as it has good institutions and open and dynamic public debate with strong civil society actors that provide an effective checks and balances system for

4554-509: The EITI Board is Helen Clark , Former Prime Minister of New Zealand and former UNDP Administrator. The previous chairs have been Fredrik Reinfeldt , former Prime Minister of Sweden , Clare Short (2011-2016), former UK Secretary of State for International Development and Peter Eigen (2009-2011). The EITI International Secretariat is located in Oslo, Norway and is headed by Mark Robinson. The Extractive Industries Transparency Initiative (EITI)

4653-762: The EITI Standard. Countries implementing the transparency standard include OECD states such as Norway, the United Kingdom and the United States as well as countries in Africa, Central and East Asia, Europe, and Latin America and the Caribbean. When a country intends to join the EITI Standard , it is required to undertake five sign-up steps before applying. These steps relate to a clear commitment of

4752-477: The EITI global conferences, which are held every two to three years. The board develops the Standard and assesses the progress of the countries. It is supported by the international secretariat, located in Oslo, Norway. The EITI Board meets between two and four times a year and is composed of three groups: countries, companies and civil society. The membership of the Board reflects the multi-stakeholder nature of

4851-778: The EITI process is one of the only functioning global mechanisms to inform and channel debate in resource-rich countries in a way that includes all stakeholders. In Peru, EITI Reports have highlighted that, only about 15% of revenues from the mining and hydrocarbon sector has been used for developmental spending, such as infrastructure or economic diversification. The rest has been spent on current expenditures such as salaries and servicing debts. Local citizens are using this information to engage with their regional authorities on alternative ways to spend these resources. EITI Reports make recommendations aimed at addressing weaknesses in government systems and improving extractive sector management. In Nigeria, President Buhari has initiated major reforms in

4950-548: The EITI standard. The body's credibility was questioned after it permitted an Ethiopian application for membership in 2014. EITI has also been criticised for ignoring the violations of human rights in Azerbaijan , and for not reacting sufficiently strongly to the harassment of Azerbaijani civil society groups that are part of EITI's multi-stakeholder approach. On the other hand, the EITI has been criticised by an international lending institution for shifting its mandate beyond

5049-461: The EITI. The report issued in June 2006 by the international advisory group recommended the establishment of a multi-stakeholder board and an independent secretariat, and these were set in place at the third EITI conference held in Oslo, Norway on 11 October 2006. Oslo was chosen as the new location for the secretariat. In the following years the body further fleshed out the criteria, turning them into

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5148-518: The EITI. Supporting companies publicly endorse the EITI and contribute to covering the cost of the international secretariat of the EITI. Extractive companies are involved on the national level in countries implementing the transparency standard. They are part of the stakeholders and are required to hand over numbers on payments as part of the reporting process under the EITI standard. Company advocacy has resulted in several countries beginning EITI implementation. Campaigning organisations have criticised

5247-501: The EITI. The EITI Board has eight committees (audit, finance, governance and oversight, implementation, nominations, outreach and candidature, rapid response and Validation) to develop recommendations to the full board. The funding of the EITI is two-fold. At the country level, implementation is funded by the governments. At the international level, the EITI is funded by implementing countries, supporting governments and companies. Any country with extractive industry sectors can adhere to

5346-478: The assessment of the efficiency and effectiveness of multistakeholder projects. In 2019 Felix Dodds , a founder of the Stakeholder Forum, argued that "involving stakeholders in the decision-making process makes them more likely to partner with each other and with governments at all levels to help deliver on the commitments associated with [intergovernmentally adopted] agreements". In this perspective,

5445-526: The chair Professor Kader Asmal described the Commissioners' views about multistakeholder governance this way: "We are a Commission to heal the deep and self-inflicted wounds torn open wherever and whenever far too few determine for far too many how best to develop or use water and energy resources. That is often the nature of power, and the motivation of those who question it. Most recently governments, industry and aid agencies have been challenged around

5544-436: The country's government, extractive companies and civil society. The multi-stakeholder group takes decisions on how the EITI process is carried out in the country. The EITI Standard is developed and overseen by an international multi-stakeholder Board, consisting of representatives from governments, extractives companies, civil society organisations, financial institutions and international organisations. The current Chair of

5643-598: The definition 'exclusive' multi-stakeholder approach, where multinational corporations in the private sector create exclusive multi-stakeholder initiatives, adopting non-consensus private standards and holding majority voting rights. Not meeting the WTO principles described above. Exclusive multi-stakeholder initiatives, adopting private standards are discussed a report from The Institute for Multi-Stakeholder Initiative Integrity (MSI Integrity), another example of an exclusive multi-stakeholder initiative adopting private standards

5742-468: The definition or the specification for selecting organizations or institutions within a 'stakeholder category' (e.g. micro-enterprises or women-owned businesses); and (3) the definition or the specification for selecting an individual person to represent a designated organization or institution within a stakeholder category (e.g. the CEO, the external affairs officer, or a professional staff member). In practice it

5841-438: The earlier theories aimed to strengthen a pre-existing institution. In multistakeholder governance, multistakeholder groups can strengthen associated institutions but they can also marginalize institutions or functions of existing governance bodies (e.g. governmental regulatory authorities, UN system). As earlier theories were concerned with improving the operations of corporations and project management, they did not need to address

5940-515: The environment. Every man-made product is composed of natural resources (at its fundamental level). A natural resource may exist as a separate entity such as freshwater, air , or any living organism such as a fish, or it may be transformed by extractivist industries into an economically useful form that must be processed to obtain the resource such as metal ores , rare-earth elements , petroleum , timber and most forms of energy . Some resources are renewable , which means that they can be used at

6039-488: The evolution of multistakeholder governance marks a positive transformation from representative democracy to stakeholder-based participatory democracy . The 2019 Transnational Institute (TNI) in Amsterdam report on multistakeholderism takes a different perspective. It considers that democracy is at great risk from multistakeholder governance. TNI sees the lack of a legitimate public selection process for 'stakeholders';

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6138-713: The extractive sector. A pilot phase of the EITI was launched in Nigeria, Azerbaijan, Ghana and the Kyrgyz Republic. The management of the Initiative continued to lay with the UK Department for International Development . The second EITI Conference on 17 March 2005 in London established six criteria based on the principles. These set out the minimum requirements for transparency in the management of resources in

6237-476: The formulation of public policies with minimal or marginal government participation; (2) those involved in setting market-governing standards that were previously a state function; and (3) those involved in implementing large-scale projects, often large-scale infrastructure projects, with government participation. Policy-oriented multistakeholder governance groups are used to address an international policy issue. These groups tend to arise when global actors believe

6336-414: The future of government; ocean governance; and ethical values. What sets the World Economic Forum's proposal apart is that it was developed as a cooperative effort involving 750 experts from the international business, governmental, and academic communities working in sixty separate task forces for one and a half years (2009/2010). WEF also had over fifty years' experience convening leading stakeholders from

6435-519: The government as in Norway's case, natural resources can actually be a factor in whether a civil war starts and how long the war lasts. In recent years, the depletion of natural resources has become a major focus of governments and organizations such as the United Nations (UN). This is evident in the UN's Agenda 21 Section Two, which outlines the necessary steps for countries to take to sustain their natural resources. The depletion of natural resources

6534-510: The government's management of extractive industries, such as the Extractive Industries Transparency Initiative (EITI), a global standard for the good governance of oil, gas and mineral resources. It seeks to address the key governance issues in the extractive sectors. However, in countries that do not have a very strong and unified society, meaning that there are dissidents who are not as happy with

6633-420: The government, company and civil society engagement, the establishment of a multi-stakeholder group and agreement on a work plan, which sets out what the country wants to achieve within a certain time frame. Once the application of the country has been accepted by the board, the country is called an “EITI candidate”. The candidate receives the deadlines for publishing information and undergoes “Validation” two and

6732-601: The importance of effectively engaging these nine sectors of society was reaffirmed by the Rio+20 Conference . However that conference added other stakeholders, including local communities, volunteer groups and foundations, migrants and families, as well as older persons and persons with disabilities. Subsequently, governments also added as stakeholders private philanthropic organizations, educational and academic entities and other stakeholders active in areas related to sustainable development. The 'Major Groups' designation

6831-661: The importance of protecting natural resources further, the World Ethic of Sustainability, developed by the IUCN , WWF and the UNEP in 1990, set out eight values for sustainability, including the need to protect natural resources from depletion. Since the development of these documents, many measures have been taken to protect natural resources including establishment of the scientific field and practice of conservation biology and habitat conservation, respectively. Conservation biology

6930-417: The independence and neutrality of the United Nations system in general and the agencies in particular". In the same resolution, government further defined the 'common purpose' and 'mutual benefit and respect' as voluntary partnerships and as "collaborative relationships between various parties, both public and non-public, in which all participants agree to work together to achieve a common purpose or undertake

7029-480: The inherent power imbalance between categories of 'stakeholders', particularly transnational corporations and community groups; and the intrusion of business interests in formal international decision-making as counter to the development of a globally representative democratic system. Gleckman, an associate of TNI and a senior fellow at the Center for Governance and Sustainability, UMass-Boston, advances other arguments on

7128-412: The inherently un-democratic character of multistakeholder governance. The 1991-1994 Commission on Global Governance , the 2003-2007 Helsinki Process on Globalisation and Democracy ., and the 1998-2001 World Commission on Dams each addressed the evolution of the concept of multistakeholderism as a force in global governance. For example, The World Commission on Dams (WCD) was established in 1998 as

7227-543: The international, regional and national levels, social movements, religious bodies, professional associations, development organizations, humanitarian groups or environmental NGOs. The 'business' stakeholder category could mean multinational corporations, medium-sized national enterprises, small- and micro- local businesses, business trade associations at the international, national, or local level; businesses from developing countries, minority own businesses, women-owned enterprises or green global businesses. When 'academics' are

7326-537: The multi-stakeholder dialogue process of the Commission on Sustainable Development and the Information and Communication Technologies Task Force ". Over the next 17 years until 2019, the governments at the United Nations continued to evolve their understanding of multistakeholder governance by adopting eight other related resolutions. In the most recent partnership resolution from 2019, governments identified

7425-433: The multilateral system. National project-oriented groups address a public need that the relevant government is not able to fulfill. These may operate on the local, state, or national level. Project-oriented multistakeholder groups are frequently called public-private partnerships (PPP). Extractive industry Natural resources are resources that are drawn from nature and used with few modifications. This includes

7524-450: The multistakeholder group in order to garner greater political-economic recognition. Internally the other participants may believe that the institutional capacities and financial resources of the parent organization may be available to meet the goals of the multistakeholder group. There is no on-going international effort to standardize the core multistakeholder governance concept of 'stakeholder', nor any international efforts to standardize

7623-410: The national, regional, county/provincial and municipal levels, regional inter-government organizations (e.g. European Commission, Organization of American States), intergovernmental secretariats (e.g. FAO, WHO) or include members of parliaments, regulatory bodies, technical experts in specific government departments and courts. The 'civil society' category could similarly involve non-state organizations at

7722-404: The nature of the shared resources, the individuals who are affected by the rules can participate in setting or changing them. The users have rights to devise their own management institutions and plans under the recognition by the government. The right to resources includes land, water, fisheries, and pastoral rights. The users or parties accountable to the users have to actively monitor and ensure

7821-653: The oil sector, starting with restructuring the national oil company, a review of oil contracts, an pause in the awarding of the notorious oil swap deals, and a review of subsidy arrangements. These were all recommendations from Nigeria EITI Reports. Furthermore, the EITI can lead to higher attractiveness for investments. There is “mounting evidence that information release supports greater competition around government contracting and that being an EITI signatory leads to greater inflows of both aid and foreign direct investment”. As of January 2021, 68 oil, gas and mining companies, financial institutions and commodity traders support

7920-474: The oil, gas and mining sectors, laying the foundation for a rule-based organisation. This conference also established an international advisory group (IAG) under the Chairmanship of Peter Eigen to further guide the work of how the EITI is to be set up and function. More countries, companies and civil-society organisations joined the initiative. The International Monetary Fund and the World Bank endorsed

8019-403: The organisation for the lack of sanction possibilities. On the other hand, business representatives have commented that the EITI board is captured by civil society organisations. The EITI has been seen as insufficient to bring full transparency to payments in the extractive industries, since it does not cover countries active in commodity trading. This has since been addressed by new requirements of

8118-530: The political, economic, cultural, civil society, religious, and other communities to discuss the way forward in global affairs. As the three co-chairs observed in their introduction to the GRI report: "The time has come for a new stakeholder paradigm of international governance analogous to that embodied in the stakeholder theory of corporate governance on which the World Economic Forum itself was founded." The United Nations effort to develop multistakeholder governance

8217-405: The potential conflicts of interests between 'business' stakeholders and their commercial markets; (c) the asymmetric power of different categories of stakeholders and different organizations representing stakeholder categories within a multistakeholder group; and (d) the lack of a review structure or judicial mechanism to appeal the selection of stakeholder categories, stakeholder organizations within

8316-482: The procedure for designating an organization or an individual within any given stakeholder category. Unlike the use of 'stakeholder' in management theory and project management theory, there are a number of demographic, political, and social factors that can impact the use of the 'stakeholder' concept in governance. Among the identified issues are (a) the difficulty in balancing gender, class, ethnicity, and geographic representation in any given multistakeholder group; (b)

8415-406: The processes can best function internationally between competing commercial interests. These groups work with social justice civil society organizations, academic and government bodies to resolve conflicts and plan a path forward. Unlike traditional philanthropic organizations, finance-oriented multistakeholder groups operate with a governing body that explicitly designates individuals to "represent"

8514-488: The promotion of transparency. The EITI has been criticised in the EU debates on country by country reporting because governments (as opposed to corporations) need to publish the payments. These governments can erode the EITI rules because they can decide autonomously on the threshold size of payments and company operations that do not need to be published. Multistakeholder governance model Multistakeholder governance

8613-548: The public governance consequences of multistakeholder decision-making. They also provide little or no guidance to autonomous multistakeholder groups on their internal rules of governance, as the pre-existing institution had its own functioning decision-making system. As multistakeholderism is an evolving system of governance, a good deal of its theoretical underpinning is a combination of formal theoretical writing and theory-derived from practice. The most extensive theoretical writing and most detailed practical proposals comes from

8712-591: The source of origin, stages of development, renewability and ownership . Resource extraction involves any activity that withdraws resources from nature. This can range in scale from the traditional use of preindustrial societies to global industry. Extractive industries are, along with agriculture, the basis of the primary sector of the economy. Extraction produces raw material , which is then processed to add value . Examples of extractive industries are hunting , trapping , mining , oil and gas drilling , and forestry . Natural resources can add substantial amounts to

8811-689: The sources of valued characteristics such as commercial and industrial use, aesthetic value, scientific interest, and cultural value. On Earth , it includes sunlight , atmosphere , water , land , all minerals along with all vegetation , and wildlife . Natural resources are part of humanity's natural heritage or protected in nature reserves . Particular areas (such as the rainforest in Fatu-Hiva ) often feature biodiversity and geodiversity in their ecosystems. Natural resources may be classified in different ways. Natural resources are materials and components (something that can be used) found within

8910-425: The standard or that are likely to be affected by its implementation, and provides them with mechanisms for participation that are appropriate and accessible." There is also no consistent definition or selection process to define the individual organization(s) that may "represent" a given category of stakeholders in a given multistakeholder group. For example, the 'government' category can involve government offices at

9009-511: The urging of the United States, the key function of administration and management of naming and addressing was delegated to the private sector, the Internet Corporation for Assigned Names and Numbers (ICANN). This US policy of using multistakeholder processes in effect to favor privatization of functions which had been traditionally performed by government agencies was well expressed in a 2015 statement by Julie Napier Zoller ,

9108-414: The use of common standards encouraging collaboration with International Organization for Standardization . ISO standards are voluntary consensus , therefore inclusive, developed using the core WTO Technical barriers to trade principles of transparency, openness, impartiality and consensus, effectiveness and relevance, coherence, and addressing the concerns of developing countries. In comparison,

9207-443: The users according to the rules governing when and how the resource is used depending on local condition or the resources may be managed by a governmental organization or other central authority. A "...successful management of natural resources depends on freedom of speech, a dynamic and wide-ranging public debate through multiple independent media channels and an active civil society engaged in natural resource issues..." because of

9306-438: The views of specific stakeholder categories. Examples of product-oriented multistakeholder groups: Examples of process-oriented multistakeholder groups: Examples of finance-oriented multistakeholder groups: Project-oriented multistakeholder groups accomplish global or national tasks that governments or the multilateral system are unable to accomplish. Global project-oriented groups accomplish governance goals implemented by

9405-444: The world for deciding the destiny of millions without including the poor, or even popular majorities of countries they believe to be helping. To confer legitimacy on such epochal decisions, real development must be people centred, while respecting the role of the state as mediating, and often representing, their interests...we do not endorse globalisation as led from above by a few men. We do endorse globalisation as led from below by all,

9504-487: The world's prescription medicines have ingredients taken from plants, loss of the world's rainforests could result in a loss of finding more potential life-saving medicines. The depletion of natural resources is caused by 'direct drivers of change' such as mining , petroleum extraction , fishing , and forestry as well as 'indirect drivers of change' such as demography (e.g. population growth), economy, society, politics, and technology. The current practice of agriculture

9603-536: The world. In countries like the Democratic Republic of the Congo, the EITI has been central to many reforms of the sector. At the international level, debates on transparency in the sector are unrecognisable from ten years ago, and the EITI is seen as being at the forefront of many frontier debates including beneficial ownership, commodity trading, and artisanal and small-scale mining. It is also clear that

9702-514: The “ Paradox of Plenty ”. NGOs such as Global Witness and “ Publish What You Pay ”, as well as companies such as BP pushed the UK government to working towards an international transparency norm. The organisation was founded at a conference in London in 2003. The 140 delegates from government, companies and civil society agreed on twelve principles to increase transparency over payments and revenues in

9801-536: Was first launched in September 2002 by the then UK Prime Minister, Tony Blair during the World Summit on Sustainable Development in Johannesburg, following years of academic debate, as well as lobbying by civil societies and companies, on the management of government revenues from the extractive industries. In particular, the EITI was established to be an answer to public discussions on the “ Resource Curse ” or

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