Good Practices and Innovations in Public Governance 2003-2011

Good Practices and InnovATIONS in Public Governance
The second EITI London Conference in March 2005 established an International
Advisory Group (IAG) to provide further guidance to the International EITI Secretariat
on defining and refining proposals regarding the future of EITI itself. Being a
pioneer of the EITI implementation process and having tremendous experience in the
EITI implementation, the Executive Director of the SOFAZ was nominated as IAG
member to represent Azerbaijan.
The IAG prepared a report on the future of EITI, which was presented at the third
International EITI conference in Oslo, 16-17 October 2006. One of the main outcomes
of the Oslo conference was the establishment of the multi-stakeholder Board
to manage EITI at the international level and to oversee the future operation of EITI.
Azerbaijan’s membership in the EITI Board proves the country’s leading role in implementing
EITI. The Executive Director of the State Oil Fund is representing the
government of Azerbaijan in the EITI board.
By implementing EITI, the government of Azerbaijan has achieved full accountability
and transparency in oil and gas revenues. Azerbaijan has also improved its investment
climate providing a clear signal to investors and international financial institutions
that the government is committed to greater transparency. EITI also assists in
strengthening accountability and good governance, as well as promotes greater economic
and political stability. This, in turn, contributes to the prevention of conflict
based on oil, mining and gas sectors.
Political instability caused by opaque governance is a clear threat to investments. In
extractive industries, where investments are capital intensive and dependent on longterm
stability to generate returns, reducing such instability is beneficial. Transparency
of payments made to the state oil fund also helps to demonstrate the contribution
that their investment makes to a country.
Endorsing and implementing EITI is an important step for the Government of Azerbaijan
and companies wishing to show their commitment to encouraging high standards
of transparency and accountability in public life, government operations and in
business within the legal framework of the country.
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