The Implementation of the Extractive Industries Transparency Initiative Standards and the Petroleum Industry in Ghana

Abstract

The article argues that the current state of the law and regulatory environment have far-reaching impacts on the promotion of transparency and accountability in the socially beneficial management of petroleum revenue. The Extractive Industries Transparency Initiative (EITI) Standards are targeted at entrenching transparency and accountability and the gains that they portend. Ghana had long subscribed to the implementation of the EITI standards. The country has gained the status of an EITI-compliant country. It has established the Ghana Extractive Industry Transparency Initiative (GHEITI) in compliance with the EITI requirements. The article argues it is pertinent to examine how well it has implemented the standards in the petroleum industry. According to the article, benchmarking and comparing these principles in the areas of transparency, accountability and prudent management of petroleum revenue, which have been developed over time through best practices, could offer a viable option in Ghana's bid to avoid the resource curse. The article recommends the establishment of the GHEITI as a corporate body with powers to promote transparency in petroleum revenue. It is an international framework mechanism that is a notable instrument for accountability and transparency. It concludes that there is a need to strengthen the legal regime for the management of petroleum revenue through enabling the environment for transparency, accountability and checking against infractions in the legal regime in order to avoid the resource curse.