Washington, Dec 10: The World Bank group today announced its formal endorsement of the extractive industries transparency initiative and pledged to work with several developing nations and companies on ways to publish revenues accruing from oil, gas and mining sectors. "We believe this step will both underscore and expand the leadership role that the bank group has had in fostering transparency, ensuring accountability and contributing sustainable development impact," said Rashad Kaldany, director of the group's oil, gas, mining and chemicals departments.
The World Bank group noted, in a press release, that revenues from oil, gas and mining companies -- in the form of taxes, royalties, signature bonuses and other payments -- have been an important engine for economic growth and social development.
However, research has found that in some nations with weak institutions, the lack of accountability and transparency about these revenues can exacerbate poor governance and lead to more corruption, conflict and inequality. Bureau Report