The 2013 Resource Governance Index
A measure of transparency and accountability in
the oil, gas and mining sector
Marie Lintzer
Accra, 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 subSaharan 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
Resource Governance Index 2013
Institutional &
Legal Setting
Reporting
Practices
Safeguards &
Quality
Controls
10 Indicators; 16 Questions
20 Indicators; 122
Questions
15 Indicators; 35 Questions
Enabling
Environment
5 Indicators
5
Index structure
Institutional & Legal Setting
(20%)
Reporting Practices
(40%)
Safeguards & Quality Controls
(20%)
10 Indicators
Indicator
20 Indicators
Indicator
15 indicators
Indicator
Enabling Environment
(20%)
5 Indicators
Indicator
Accountability & democracy (EIU
1 Democracy Index & WGI voice and
accountability)
1
Freedom of information law
1
Licensing process
1
Checks on licensing process
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
Clarity in revenue collection
Comprehensive public sector
balance
6
Production value
6
7
Primary sources of revenue
SOC financial reports required
8
Secondary sources of revenue
9
Subsidies
10
Operating company names
10
Fund reports audited
11
12
Comprehensive SOC reports
SOC production data
11
12
13
SOC revenue data
13
14
SOC quasi fiscal activities
14
15
SOC board of directors
15
Checks on Fund spending
Government follows Fund rules
Fund disclosure of conflicts of
interest
Quality of subnational transfer
reports
Government follows subnational
transfer rules
16
17
Comprehensive Fund reports
Fund rules
Comprehensive subnational transfer
reports
Subnational transfer rules
Subnational reporting of transfers
6
7
8
9
Fund rules defined in law
Subnational transfer rules defined
10
in law
18
19
20
Corruption (TI Corruption
5 Perceptions Index & WGI control of
corruption)
SOC reports audited
SOC use of international accounting
7
standards
SOC disclosure of conflicts of
8
interest
9
Quality of Fund reports
6
80
60
40
20
1. Norway
2. United States (Gulf of Mexico)
3. United Kingdom
4. Australia (Western Australia)
5. Brazil
6. Mexico
7. Canada (Alberta)
8. Chile
9. Colombia
10. Trinidad and Tobago
11. Peru
12. India
13. Timor-Leste
14. Indonesia
15. Ghana
16. Liberia
17. Zambia
18. Ecuador
19. Kazakhstan
20. Venezuela
21. South Africa
22. Russia
23. Philippines
24. Bolivia
25. Morocco
26. Mongolia
27. Tanzania
28. Azerbaijan
29. Iraq
30. Botswana
31. Bahrain
32. Gabon
33. Guinea
34. Malaysia
35. Sierra Leone
36. China
37. Yemen
38. Egypt
39. Papua New Guinea
40. Nigeria
41. Angola
42. Kuwait
43. Vietnam
44. Congo (DRC)
45. Algeria
46. Mozambique
47. Cameroon
48. Saudi Arabia
49. Afghanistan
50. South Sudan
51. Zimbabwe
52. Cambodia
53. Iran
54. Qatar
55. Libya
56. Equatorial Guinea
57. Turkmenistan
58. Myanmar
100
98
92
80% of countries do not meet satisfactory
governance standards
88
85
80
77 76
75 74
74 73
70
68
66
63 62
61
58 57
Satisfactory (71-100)
Partial (51-70)
Weak (41-50)
Failing (0-40)
56 56 56
54 53 53
51 50
48
47 47 47 46 46 46
46
43 43 43 43 42
42 41
41
39 38
37
34 34 33
31 31
29 28
26
19
13
5 4
0
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
Statoil
Pemex
Petrobras
ONGC
Rosneft
Ecopetrol
PDVSA
KazMunaiGaz
Pertamina
CODELCO
CNPC
O.C.P.
Sonangol
Petromin
ZCCM-IH
SOCAR
Petrotrin
KPC
Petroecuador
Petronas
YPFB
Sonatrach
NNPC
Ministry of Oil
YOGC
PMDC
ARAMCO
Petrovietnam
SNH
Qatar Petroleum
STAMICO
Debswana
Nile Petroleum
EGPC
Gecamines
ENH
ZMDC
Erdenes MGL
Libyan National Oil Corporation
NIOC
BAPCO
GEPetrol
Northern Coal Enterprise
MOGE
Turkmengas
State-owned companies in 45 countries
100
80
60
40
20
0
12
Natural resource funds in 23 countries
100
80
60
40
20
0
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
Institutional & Legal
Setting (20%)
Indicator
Reporting Practices
(40%)
Indicator
Safeguards & Quality
Controls (20%)
Indicator
1
Freedom of information
law
1
Licensing process
1
2
Comprehensive sector
legislation
2
Contracts
2
3
EITI participation
3
Environmental and social
impact assessments
4
Independent licensing
process
4
Exploration data
Environmental and social
5
impact assessments
required
Clarity in revenue
6
collection
Comprehensive public
7
sector balance
Checks on licensing
process
Checks on budgetary
process
Quality of government
3
reports
Government disclosure of
4
conflicts of interest
5
Production volumes
5
Quality of subnational
transfer reports
6
Production value
6
Government follows
subnational transfer rules
7
Primary sources of revenue
8
Secondary sources of
revenue
9
Subsidies
10 Operating company names
Subnational reporting of
11
transfers
Enabling Environment
(20%)
Indicator
Accountability &
democracy (EIU Democracy
1
Index & WGI voice and
accountability)
2 Open Budget (IBP Index)
3
Government effectiveness
(WGI)
4
Rule of law (WGI)
Corruption (TI Corruption
5 Perceptions Index & WGI
control of corruption)
24
Thank you!
http://www.revenuewatch.org/rgi
http://www.revenuewatch.org/rgi/findings
http://www.revenuewatch.org/rgi/countries