eiti
Transparency in commodity trading
Switzerland is involved in the Extractive Industries Transparency Initiative (EITI).
Peru is tapping into its large copper deposits, Ghana is extracting significant quantities of oil, and Indonesia is mining minerals on a large scale. Many developing countries are rich in minerals and fossil fuels.
However, local populations usually derive little benefit from the commodities trade, and these countries do not fully realise their development potential.
However, local populations usually derive little benefit from the commodities trade, and these countries do not fully realise their development potential.
Transparency is key in preventing funds being embezzled or diverted from the public budget. Who are the shareholders of extractive companies and where exactly does the revenue from mining and trading end up?
The EITI has established a voluntary standard that obliges companies and states to disclose such information. This strengthens the rule of law, hampers corruption and improves the investment climate.
The EITI currently has 52 commodity-producing countries that have already disclosed their payment flows or plan to do so. It also comprises representatives of extractive and trading companies, civil society organisations and supporting countries including Switzerland.
Website: EITI standard implementation status per country
Website: EITI standard implementation status per country
Although Switzerland does not have any significant reserves of natural resources, some of the world's largest extractive and trading companies are based in the country. Switzerland therefore shares responsibility for ensuring that the economic prosperity generated by the commodities industry is fairly distributed.
In 2018, Switzerland represented its constituency of supporting countries at the board of the EITI. The board leads the initiative, sets priorities and monitors the implementation of the EITI standard in commodity-producing countries.
SECO Website: Strengthening public finances
SECO Website: Strengthening public finances
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