Institute for International Economic Policy Working Paper Series Elliott School of International Affairs The George Washington University Limited Partnership: Business, Government, Civil Society (NGOs) and the Public in the Extractive Industry Transparency Initiative (EITI) IIEPWP201028 Susan Ariel Aaronson George Washington University Jennifer Brinkerhoff George Washington University October 2009 Institute for International Economic Policy 1957 E St. NW, Suite 502 Voice: (202) 994‐5320 Fax: (202) 994‐5477 Email:
[email protected] Web: www.gwu.edu/~iiep Limited Partnership: Business, Government, Civil Society (NGOs) and the Public in the Extractive Industry Transparency Initiative (EITI) 1 PAAD711 Limited Partnership: Business, Government, Civil Society and the Public in the Extractive Industry Transparency Initiative (EITI) Nigeria is awash in oil; Mali is flush with gold reserves; and Peru has abundant copper. These resources belong to the people, and thus, Nigerians, Malians, and Peruvians should benefit from their extraction and sale. But in many resource rich developing countries, policymakers lack the skills, will, or expertise to effectively manage the funds derived from these resources. Officials may funnel mining or petrodollars to their allies and families to stay in power. In some nations with weak institutions, a lack of accountability and transparency about resource revenues can exacerbate poor governance, and lead to corruption, conflict, and inequality (Karl, 1997, Ross: 2001; and Auty: 2001). Meanwhile, citizens of these resource rich countries have little say over how the revenues are spent or invested. This affliction is known as the resource curse (Lederman and Maloney: 2007, and Sachs and Warner: 1995). Extractive industry companies, civil society activists, and some developing county policymakers have collaborated to help people from resource rich nations such as Nigeria govern more effectively.