Azerbaijan EITI Validation Progresses, as EITI Plans for Country Awards
By Galib Efendiev, RWI Caucasus and Central Asia Regional Coordinator
The fourth annual EITI Global Conference in Doha this February will include the first-ever presentation of the EITI Chairman's Awards for "partners who have shown leadership in establishing resource transparency since the last EITI conference." Among the awards categories is an award for the EITI Implementing Country Award. Most likely the nomination for this award will go to the country that successfully passes the validation process.
The goal of EITI Validation is to ensure that countries and companies do what they have said they will in the process, and that their program is aligned with EITI criteria and principles. By appointing a Validator to examine the country's key EITI documents and then compile a report on EITI compliance, countries affirm their commitment to transparency and good governance in the extractives sector; they also receive international recognition for their efforts.
While there are more than 20 countries at different stages of EITI implementation, to date only Azerbaijan has begun validation procedures. In fall 2008, it volunteered to be the first country to undergo validation. After leading the call for a UN resolution on EITI, Azerbaijan continues to be at the forefront of the validation process, which it began at the end of 2008 with the appointment by the country's multi-stakeholder group of a Validator, Coffey International Limited. The first draft of the Validator's report is expected by the end of January.
However, there are critical points of disagreement between the stakeholders in Azerbaijan's EITI process. The civil society coalition firmly insists on establishing an EITI work plan and a permanent multi-stakeholder council to oversee all EITI progress. So despite the fact that Azerbaijan has produced nine EITI reports, its multi-stakeholder engagement—normally considered the "soul" of the entire EITI program—still needs fine-tuning. This is unsurprising, as activists familiar with the Azerbaijan EITI process have harbored concerns that the nation's EITI reports are not detailed enough to ensure government accountability. Furthermore, while NGOs in the multi-stakeholder group have pushed for disaggregated reporting by companies, only five of 26 companies implementing EITI in Azerbaijan had agreed to disaggregated reporting by fall of 2008.
With little time left until the Global EITI event in Doha, it is crucial that Azerbaijan's varied EITI advocates at least agree upon an action plan for fixing the country's validation process. Without such a resolution, Azerbaijan risks jeopardizing its years of work on EITI implementation.
On the eve of the new EITI Chairman's awards, the state of the validation process in Azerbaijan is an important and sobering reminder about the importance of comprehensive and substantial transparency progress.
The Revenue Watch Institute will be attending the EITI Global Conference in Doha from February 16 to 19. RWI Director Karin Lissakers was a founding member of the EITI advisory and governing board, and RWI has worked to develop and implement a strategy for transforming EITI from a UK-based initiative to an international effort based in Norway.
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