sharing in governance of extractive industries
Today, the International Monetary Fund released its model for evaluating and designing oil and mining deals in resource-rich countries. NRGI welcomes the move. With growing availability of open data on extractives and a growing community of users of such models, it’s an important step toward bettering public scrutiny and understanding of resource deals and the flow of revenues.
Last year, NRGI wrote about why this matters so much for citizens and governments. Models like the Fiscal Analysis of Resource Industries (FARI) are used to design the deals countries sign with companies to extract their resource wealth. Lots of data, assumptions and forecasts go into these models. This can have major consequences for the revenues that countries subsequently receive. Therefore, these models are a crucial step in opening up a discussion on whether countries are “getting a good deal” for their resources. Open models help citizens to monitor contracts enhance public understanding of what money is to be expected to reach the budget.
Today’s release makes the Excel-based model available for use by anyone. The IMF's completed models or results for any particular analysis are still not typically available—governments can opt-out from disclosing them. However, an increasing number of reports are becoming accessible. (See a Philippines example or a full list on the FARI site.)
If governments fail to disclose their own projections or citizens want to challenge the assumptions, the public can now access the framework and put it to work using their own data.
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