Documente Academic
Documente Profesional
Documente Cultură
Client
Amir Shafaie & Erica Westenberg
If mining companies and governments published all their mutual transactions, that
would prevent corruption, extortion and loss of revenues, and ultimately lead to
inclusive development, equitable redistribution of wealth and a healthy environment.
Central Assumptions
1. Increased transparency requirements for
payments from extractive industry companies to
sovereign governments will serve to mitigate and
dispel the resource curse
International Financing
The research conducted by New
School students relates to Foreign
Direct Investment (FDI) in extractive
industry companies.
(investments from abroad)
It is an examination of the lenders
transparency requirements for the
lendees concessionary contracts
with the sovereign government of
the extraction site.
Purpose of Research
To determine IFI transparency and disclosure policies as they relate to
private sector investment and sovereign risk guarantees in the extractive
sector (oil, gas, and minerals).
To determine how new laws related to transparency and disclosure (DoddFrank 1504 and the EU Transparency and Accounting Directives) would
apply to private sector investments financed through DFIs and ECAs
Process
International Finance
Institutions (IFIs)
Extractive Industry
Companies
Sovereign Government
of Extractive Site
Research Topic
International Finance
Institutions (IFIs)
Extractive Industry
Companies
Require disclosure of
payments for this contract?
Sovereign Government
of Extractive Site
Research Findings
Most development finance intuitions had some form of payment
transparency and disclosure requirements (IFC, MIGA, EBRD, OPIC,
AfDB).
Implementation of policies is weak and not sufficiently disaggregated.
Several have very weak or no policies (IDB, ADB, JBIC).
MIGA
EBRD
IBD
AfDB
ABD
Mining
Mining
Mining
Mining
Mining
# of
Projects
30
37
14
16
N/A
N/A
N/A
N/A
# of
Countries
23
225
N/A
N/A
N/A
N/A
N/A
N/A
$2 billion
(2013)
$500
million
(2013)
$918.4
million
(2013)
$240
million
(2013)
$1.5
billion*
(20042013)
$1
billion*
(20042013)
Total
Portfolio
$50.8 million*
(2008-2012)
JBIC
Mining
N/A
N/A
$500 million*
(2003-2013)
OPIC
Mining
N/A
N/A
4 projects (2011
estimate)
N/A
N/A
N/A
Estimated $74
billion*
(20032013)
Mining
$345 million*
(2011 estimate)
Ranking of IFIs
1.2 Comparative Strength of Transparency, Accountability, and Accessibility in
IFIs
IFC
MIGA
EBRD
AfDB
OPIC
ADB
IDB
JBIC
Revenue and
Payment
Disclosure
Satisfactory
Partial
Partial
Weak
Partial
Weak
Failing
Failing
Contract
Disclosure
Partial
Partial
Weak
Weak
Partial
Weak
Failing
Weak
Mechanisms
of Compliance
Satisfactory
Satisfactory
Partial
Partial
Weak
Weak
Weak
Failing
Accessibility
of Information
Partial
Partial
Partial
Partial
Weak
Weak
Weak
Weak
Score
10
Scoring Matrix:
Satisfactory = 3
Partial = 2
Weak = 1
Failing = 0
Advocacy Recommendations
Existing policies on payment disclosure and transparency should be
strengthened and properly implemented.
Data should be disaggregated on a project by project basis.
DFIs should adopt EITI standards.
Dodd-Frank 1504 rules on payment disclosure should be reinstated
and implemented as soon as possible.