Post on 02-Jun-2018
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Assessing Transparency:
Development Finance Institutions, ExpCredit Agencies,
and Extractive Industries
Jonathan Leonard and Alix Schroder
December 15, 2014
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Amir Shafaie & Erica Westenberg
Client
If mining companies and governments published all their mutual transac
would prevent corruption, extortion and loss of revenues, and ultimate
inclusive development, equitable redistribution of wealth and a healthy enviro
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Central Assumptions
1. Increased transparency requirements forpayments from extractive industry compansovereign governments will serve to mitigadispel the resource curse
2. International Finance Institutions (IFIs)finance extractive industry projects arlevers for a achieving this type of transpar
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The research conducted
School students relates tDirect Investment (FDI) inindustry companies.(investments from abroad
It is an examination of thetransparency requiremenlendees concessionary with the sovereign govethe extraction site.
International Financing
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To determine IFI transparency and disclosure policies as t
private sector investment and sovereign risk guarantees in tsector (oil, gas, and minerals).
To determine how new laws related to transparency and disclFrank 1504 and the EU Transparency and Accounting Dire
apply to private sector investments financed through DFIs and
Purpose of Research
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International Finance
Institutions (IFIs)
Extractive Industry
Companies
Soverei
of Ex
Process
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International Finance
Institutions (IFIs)
Extractive Industry
Companies
Soverei
of Ex
Research Topic
Does this contractRequire disclosure of
payments for this contract?
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Export Credit Agencies (ECAs
Investment banks are infused with the power of their sovereign governme
money to domestic companies for their activities abroad. They are unabasexplicitly motivated by the financial promotion of national economic interest
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Development Finance Institutions (
Institutions, created by a group of countries, to provides financing for the purpose o
MDBs have large memberships including both developed donor countries and dev
countries.
The most commonly known MDB is The World Bank
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State Laws Mandating EI Transpar
Dodd-FrankSection 1504
The Extractive Sector Transparency Measures Act
EU Transparency and Accounting Directives
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Global Frameworks Promoting Trans
Countries implement the EITI Stan
full disclosure of taxes and other p
by oil, gas and mining companies to
A global network of civil society
united in their call for an open an
extractive sector.
Has a sustainabilityframeworkcrea
(part of the World Bank) to e
transparency and accountability of its
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Most development finance intuitions had some form o
transparency and disclosure requirements (IFC, MIGA, EBAfDB).
Implementation of policies is weak and not sufficiently disaggreg
Several have very weak or no policies (IDB, ADB, JBIC).
EU Accounting and Transparency Directives and Dodd-Frank
implemented) will increase disclosure, but would not apcompanies receiving financing.
Research Findings
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IFC MIGA EBRD IBD AfDB ABD JB
Oil & Gas Mining Oil & Gas Mining Oil & Gas Mining Oil & Gas Mining Oil & Gas Mining Oil & Gas Mining Oil & Gas
# of
Projects30 37 7 5 14 16 N/A N/A N/A N/A 6 N/A
# of
Countries 23 225 5 3 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Total
Portfolio
$2 billion
(2013)
$500
million
(2013)
$918.4
million
(2013)
$240
million
(2013)
$1.5
billion*
(2004-
2013)
$1
billion*
(2004-
2013)
$50.8 million*
(2008-2012)
Est. $1.6 billion*
(1990s-2013)
$500 million*
(2003-2013)
Estima
billion*
20
1.1 IFI projects, countries, and total portfolio amount
IFIs Extractive Industry Portfoli
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IFC MIGA EBRD AfDB OPIC ADB IDB
Revenue and
Payment
Disclosure
Satisfactory Partial Partial Weak Partial Weak Failing
Contract
DisclosurePartial Partial Weak Weak Partial Weak Failing
Mechanisms
of ComplianceSatisfactory Satisfactory Partial Partial Weak Weak Weak
Accessibility
of InformationPartial Partial Partial Partial Weak Weak Weak
Score 10 9 7 6 6 4 2
1.2 Comparative Strength of Transparency, Accountability, and Accessibility
IFIs
Ranking of IFIs
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Existing policies on payment disclosure and transparency s
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 reand implemented as soon as possible.
Advocacy Recommendations
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