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Beyond Governments

Making Collective Governance Work - Lessons from the Extractive Industries Transparency Initiative

In a world characterized by globalization, governments increasingly find themselves unable to govern. Corruption is everywhere, natural resources are being exploited, the environment damaged, markets distorted, and the fight against poverty is often ineffective. Certain challenges cannot be addressed by governments alone. Increasingly, collective governance “beyond governments” is seen as part of the solution, with state and non-state actors working together.

This book sets out a framework for those wishing to implement collective governance, involving civil society, companies and governments as key actors. Based on over eight years of running the most advanced example of collective governance at international level, the Head and Deputy Head of the Extractive Industries Transparency Initiative (EITI) outline the practicalities and pitfalls, and draw out the experience of the EITI as a case example.

Beyond Governments tells a positive story of how this type of innovative governance can make real achievements, but also cautions against those who see collective governance as a silver bullet to solve development challenges. It provides practical guidance from a practitioner’s perspective and is essential reading for those in government, business and academia.

Quirky, readable and honest. Jonas and Eddie have contributed enormously to bringing the EITI to this stage of maturity. The lessons they point to are important and honest. But the most crucial lesson – which they underline – is humility.

Clare Short, Chair of the EITI; former Secretary of State for International Development

The great progress towards transparency in the oil and gas sector is very encouraging. In my memoir, Beyond Business, I wrote about some of the early steps towards the EITI. Now Eddie and Jonas have written Beyond Governments, teasing out some lessons from the EITI. I am pleased that they are telling the story of how change really happens.

Lord Browne of Madingley, Chairman, L1 Energy; former Group Chief Executive, BP

Transparency is not only about fighting corruption. It is also about building trust. Collective governance is an underused tool that must be applied along the extractive industries value chain.

Eleodoro Mayorga Alba, Former Minister of Mines in Peru

It makes me proud to read Eddie and Jonas’s book. It has been such a pleasure working with them. The EITI is state-of-the-art moving further into normative territory every year. Transparency and the fight against corruption require multi-stakeholder approaches. In this book they provide a framework that I draw on as I continue the quest for transparency also in other sectors, such as the garment or fisheries sectors. The multi-stakeholder approach described so vividly in this book may come close to being the “silver bullet” we are all looking for when struggling for better global governance.

Professor Peter Eigen, former Chair of the EITI and Founder of Transparency International

In an era of widespread governance failures there is a growing need for collaboration. The EITI offers valuable insights. The experiences Jonas and Eddie share are of great importance for all corporations that understand that long-term financial success goes hand in hand with good governance and good environmental and social stewardship.

Georg Kell, Executive Director of the UN Global Compact

This is more than just the definitive account of the EITI, valuable to those seeking developmental benefits from mining, oil and gas. It is the most grounded explanation of what governance is, and ought to be, that any scholar or practitioner of multi-stakeholder decision-making is likely to encounter.

Dr Kathryn Sturman, Senior Research Fellow, Centre for Social Responsibility in Mining, The University of Queensland

Bringing about change in my country required a collective determination towards openness and transparency – the power and locomotives of our development. The EITI contributed to providing this and this book helps others to do so elsewhere.

Roza Otunbayeva, former President of Kyrgyzstan

The EITI has come a long, remarkable way since our first discussions in 2002. Business today needs to come together with civil society to help governments govern better. This book provides important lessons from one of the more sophisticated efforts.

Mark Moody-Stuart, Chairman of Foundation for the United Nations Global Compact; former Chairman of the Royal Dutch/Shell Group and Anglo American

In Nigeria the EITI sits at the heart of contentious debate about the governance of our oil, gas and solid minerals. The debate still has a long way to go, but at least it is now informed by facts and not just innuendo, intrigue and allegation.

Ledum Mitee, Chair of Nigeria EITI and long-time Nigerian oil sector activist

For investors, whether corporates sinking billions into decade-long projects, equity investors taking a stake in extractive companies, or sovereign bond investors betting on an emerging country's development, initiatives like the EITI have always been about driving up value by driving down country risk. As such, the business case of the EITI is to shift the risk–return equation by squeezing out opaque business practices, and allowing the discipline of transparent markets to bring about competitive, sustainable financial returns.

Karina Litvack, former Head of Governance & Sustainable Investment, F&C Asset Management

My country, Timor-Leste, has been gifted with a once-in-a-lifetime opportunity, which comes in the form of oil and gas. The building of our nation hinges on the success of our governance. As a post-conflict nation, with human capacity and infrastructure challenges, a different form of governance is necessary. This book guides those going through similar journeys.

Alfredo Pires, Minister of Petroleum and Natural Resources, Timor-Leste

Development is more about good leadership and governance than it is about money. Looking back, I am very proud that Norway decided not just to support the EITI, but to do it at home. It has led to a global standard. We must get better at these collaborative governance efforts. Eddie and Jonas's book helps us on the way.

Erik Solheim, Chair of the OECD Development Assistance Committee (DAC); former Minister of Environment & International Development, Norway

The book is timely and fills a gap in the literature of practitioner guidance. Accessible, provocative and not afraid to challenge.

Michael Jarvis, Program Leader, Governance for Extractive Industries, World Bank

Foreword by Clare Short, Chair of the Extractive Industries Transparency Initiative (2011-2016)

Preface

Acknowledgements

Part 1: Introduction

1. The irresistible rise of collective governance?

Part 2: A Brief History of the EITI

2. Collective governance in practice

3. Preconditions for collective governance

4. Build trust through building momentum: just get on with it

5. Move the consensus from the narrow to the meaningful

6. Getting the most from people

7. Governing the governance

8. Saying goodbye: sunset clauses and appreciating the life-cycle of institutions

9. How to be a governance entrepreneur: checklist

10. Recommendations

11. Applicability of governance entrepreneurship in other sectors

12. Conclusions

Bibliography

About the authors

JONAS MOBERG and EDDIE RICH have been the Head and Deputy Head of the Extractive Industries Transparency Initiative (EITI) International Secretariat since 2007. Jonas was previously Senior Advisor to the UN Global Compact.

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