GREATER TRANSPARENCY IN THE EXTRACTIVE SECTOR

Speeches Shim

Natural resource extraction helps grow Peru’s economy and provides funding for essential public services. Revenue from mineral and hydrocarbon resources, however, often fails to reach the Andean and Amazonian communities and has led to social conflict. USAID supports efforts to strengthen transparency, accountability, and social dialogue related to extractive industries, particularly to support these communities.

The Extractive Industries Transparency Initiative (EITI) is a global standard for open and accountable management of oil, gas, and mineral resources. EITI requires disclosure of financial information along the industry value chain starting from licenses and contracts, through intergovernmental revenue transfers, and on to public expenditures. Peru was an early entrant to the initiative.

In Peru, taxes and fees from mining or hydrocarbon projects accrue to the central government. “Canon” laws re-direct 50 percent of that revenue to subnational budgets in the regions and municipalities impacted by their respective projects. EITI reporting provides clear, accessible information for stakeholder oversight of these funds.

USAID’s Greater Transparency and Best Practices in the Extractive Sector Activity promotes detailed revenue reporting, increases citizen participation in decisions about how natural resource revenue is used, and improves extractive sector governance.

Issuing Country 
Date 
Friday, November 26, 2021 - 4:45pm

Last updated: November 26, 2021