EITI as an Instrument of Fiscal Transparency and Accountability in Contexts of Fragility and Violence

Efforts in Afghanistan have sought to enable systematized data disclosures and simplify data collection efforts, given security concerns that often restrict movement and coordination. In this context, the following governance enhancements are being supported: the new draft mining regulations seek to empower the use of data for improved governance and fiscal accountability; digitized systems of the ministry of mines and petroleum (MoMP) now increase fiscal transparency and accountability. Efforts are being made in Iraq to facilitate reliable data disclosures in the oil and gas sector. Such disclosures will enable improved stakeholder engagement and provide a baseline for analyses and sector reforms. The most recent extractive industries transparency initiative (EITI) report has provided clarity to stakeholders about vital aspects of sector governance, such as data regarding licensing, revenue-sharing and allocation mechanisms, revenues collected, the roles and functions of various state-owned enterprises (SoEs), and the relationship of these SoEs with the governmental ministries. When it comes to using EITI or other data systems for improved fiscal transparency and accountability, the priority steps for the future in both case study countries are closely linked to their respective priorities: in Afghanistan, the priority is to boost investor confidence, increase governmental revenues, and counter illicit revenue flows; and in Iraq, the priority is to expand the umbrella of fiscal transparency and accountability to critical sectors and other areas of government intervention, which account for very significant revenue flows.