WASHINGTON (Thomson Financial) - The World Bank today launched a new initiative aimed at helping developing countries use the profits gained through the sale of natural resources toward development goals.
The so-called Extractive Industries Transpency Initiative Plus Plus (EITI++) would upgrade the original EITI, which called for full disclosure of company payments for the right to extract resources, and government tax revenues from oil, gas, and mining operations. The upgraded initiative will now also provide technical assistance and capacity building for improving the management of resource-related revenue so that it benefits the poor.
World Bank President Robert Zoellick said global commodity prices have risen by 75 pct since 2000, which he said is 'a burden for some and an opportunity for others.'
He added that for commodity exporters, 'revenue windfalls from high commodity prices must translate into tangible improvements in the lives of poor people living on the fringes of the global economy.'
While the initial focus of the program is on sub-Saharan Africa, the World Bank has pledged to work with all developing countries. Guinea and Mauritania have already requested support in implementing the EITI++, while other developing countries have indicated interest.
The World Bank will establish a multi-donor trust fund to finance the initiative, and will collaborate with regional and bilateral partners. There are plans to assemble an advisory committee of stakeholders, including client governments, key development partners and noted academics. pete.kasperowicz@thomson.com+tfn.newsdesk@thomson.com+tessa.moran@thomson.com tlm/wash COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.