The extractive industries transparency initiative: Achieving disclosure, but falling short on corruption reduction

Abstract

The Extractive Industries Transparency Initiative (EITI) sets the benchmark for income transparency across 50 nations, operating on the premise that adherence to the initiative enhances transparency and mitigates corruption within member governments. However, individual case studies have raised doubts about the initiative's effectiveness. This study examines the impact of EITI membership on transparency and corruption levels from 2010 to 2023, drawing on existing research on compliance and governance. Using interrupted time series and panel data analysis, the study demonstrates that EITI membership significantly improved overall aggregate data disclosure in member nations during this period. Simultaneously, the findings suggest that perceptions of corruption remained unchanged. This outcome challenges the efficacy of advocating a narrow interpretation of transparency in the extractive sectors as a means of addressing corruption. The results highlight the need for a more comprehensive approach to transparency, particularly to differentiate between regimes using transparency measures for public relations and those genuinely committed to systemic reform.