The 2013 Resource Governance Index

A measure of transparency and accountability in the oil, gas and mining sector

New York, UNDP, May 16, 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, and 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 sub-Saharan Africa.

– In 1980-2006: Oil-rich states 3 times less likely to democratize than non-oil producers.

• 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

• Concretize what may be seen as a vague challenge

• Enable empirical research and analysis

• Enable evidenced-based policymaking and advocacy

• Inform dialogue across all stakeholders

• 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.

• For each country,

researchers, gathered

primary information in 2012

to answer a standard

questionnaire with 173

questions, vetted by a peer

reviewer.

4

How is the Index built?

Resource Governance Index composite

5

80% of countries do not meet satisfactory governance standards

98

92

88

85

80

77 76 75 74 74 73

70 68

66

63 62 61 58 57

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

20

40

60

80

100

1. N

orw

ay

2. U

nit

ed

Sta

tes

(Gu

lf o

f M

exic

o)

3. U

nit

ed

Kin

gdo

m

4. A

ust

ralia

(W

este

rn A

ust

ralia

)

5. B

razi

l

6. M

exic

o

7. C

anad

a (A

lber

ta)

8. C

hile

9. C

olo

mb

ia

10

. Tri

nid

ad a

nd

To

bag

o

11

. Pe

ru

12

. In

dia

13

. Tim

or-

Lest

e

14

. In

do

nes

ia

15

. Gh

ana

16

. Lib

eri

a

17

. Zam

bia

18

. Ecu

ado

r

19

. Kaz

akh

stan

20

. Ven

ezu

ela

21

. So

uth

Afr

ica

22

. Ru

ssia

23

. Ph

ilip

pin

es

24

. Bo

livia

25

. Mo

rocc

o

26

. Mo

ngo

lia

27

. Tan

zan

ia

28

. Aze

rbai

jan

29

. Ira

q

30

. Bo

tsw

ana

31

. Bah

rain

32

. Gab

on

33

. Gu

ine

a

34

. Mal

aysi

a

35

. Sie

rra

Leo

ne

36

. Ch

ina

37

. Yem

en

38

. Egy

pt

39

. Pap

ua

Ne

w G

uin

ea

40

. Nig

eri

a

41

. An

gola

42

. Ku

wai

t

43

. Vie

tnam

44

. Co

ngo

(D

RC

)

45

. Alg

eria

46

. Mo

zam

biq

ue

47

. Cam

ero

on

48

. Sau

di A

rab

ia

49

. Afg

han

ista

n

50

. So

uth

Su

dan

51

. Zim

bab

we

52

. Cam

bo

dia

53

. Ira

n

54

. Qat

ar

55

. Lib

ya

56

. Eq

uat

ori

al G

uin

ea

57

. Tu

rkm

enis

tan

58

. Mya

nm

ar

Satisfactory (71-100) Partial (51-70) Weak (41-50) Failing (0-40)

6

RGI Results for the 58 countries

Transparency is missing where it is needed most

8

Satisfactory performance is possible in diverse contexts

9

Concrete Illustrations of the governance deficit

• In 20 countries (e.g. Venezuela) substantial resource revenue bypass the treasury.

• 21 countries (e.g. Guinea) do not publish information on primary sources of revenue (royalties, profit shares or taxes)

• In 18 countries (e.g. Alberta, Canada) government officials do not disclose their financial interest in any extractive activity.

• Azerbaijan, Russia and Kazakhstan have poor records in key areas including corruption, civil and political liberties and democratic accountability.

10

Regional performance

11

State-owned companies in 45 countries

0

20

40

60

80

100

Stat

oil

Pem

exP

etro

bra

sO

NG

CR

osn

eft

Eco

pet

rol

PD

VSA

Kaz

Mu

nai

Gaz

Per

tam

ina

CO

DEL

CO

CN

PC

O.C

.P.

Son

ango

lP

etro

min

ZCC

M-I

HSO

CA

RP

etro

trin

KP

CP

etro

ecu

ado

rP

etro

nas

YPFB

Son

atra

chN

NP

CM

inis

try

of

Oil

YOG

CP

MD

CA

RA

MC

OP

etro

viet

nam SN

HQ

atar

Pe

tro

leu

mST

AM

ICO

Deb

swan

aN

ile P

etro

leu

mEG

PC

Gec

amin

esEN

HZM

DC

Erd

enes

MG

LLi

bya

n N

atio

nal

Oil

Co

rpo

rati

on

NIO

CB

AP

CO

GEP

etro

lN

ort

her

n C

oal

En

terp

rise

MO

GE

Turk

men

gas

12

Natural resource funds in 23 countries

0

20

40

60

80

100

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

Thank you!

http://www.revenuewatch.org/rgi

http://www.revenuewatch.org/rgi/findings

http://www.revenuewatch.org/rgi/countries