Natural Resource Governance Institute

The Natural Resource Governance Institute (NRGI) is an independent nonprofit organisation dedicated to improving countries' governance over their natural resources (in particular oil, gas and minerals) to promote sustainable and inclusive development.[1] The headquarters of NRGI are based in New York.

Natural Resource Governance Institute
AbbreviationNRGI
Formation2013
Headquarters80 Broad Street, Suite 1801, New York, NY 10004
Interim President and CEO
Suneeta Kaimal
Staff
70+
Websitehttps://resourcegovernance.org/

History

The Natural Resource Governance Institute was established through the merger of the Revenue Watch Institute and the Natural Resource Charter in 2013.[2] Originally based in New York, NRGI has opened offices in London, Accra, Lima, Washington, D.C., Jakarta and Dar Es Salaam.[3] This partly reflects its focus on Colombia, Democratic Republic of Congo, Ghana, Guinea, Mexico, Mongolia, Myanmar, Nigeria, Tanzania and Tunisia as "priority countries".[4]

Organisation and Activities

The Natural Resource Governance Institute is led by a president and CEO, with Suneeta Kaimal currently serving in that role as an interim appointee.[5] Its activities are supervised by a board of directors, with Smita Singh as interim chair.[6] Finally, NRGI's leadership team and its board of directors are supported by an Advisory Council co-chaired by Michael Spence and Joseph Bell.[7] Other prominent figures affiliated with NRGI include Paul Collier, Ernest Aryeetey, Elena Panfilova, Alicia Bárcena Ibarra, Peter Eigen, Daniel Kaufmann, Antonio La Viña, Ilgar Mammadov, José Antonio Ocampo, Anya Schiffrin, Andrés Velasco, Tony Venables and Ernesto Zedillo.

In line with its mission, NRGI supports civil society organisations, government institutions, private sector enterprises, and the media with technical advice, advocacy, applied research, policy analysis, and capacity development with regard to natural resource governance.[8] Key tools developed in that context include for example the Resource Governance Index, a repository of resource contracts, and the Natural Resource Charter Benchmarking Framework.[9] Notably, research and resources from NRGI have been featured by international media such as The Atlantic,[10] Financial Times[11] and Forbes,[12] as well as national media in the concerned countries.

The Natural Resource Charter

The Natural Resource Charter is a document aimed at providing advice and policy options with regard to the management of resource wealth in order to help resource-rich countries use their natural resources for sustainable development. NRGI promotes the implementation of the Natural Resource Charter and provides policy advice with regard to this implementation process. The Natural Resource Charter consists of the following 12 Precepts, which are organised into three parts based on the chain of decisions involved in natural resource management:[13]

  • Domestic foundations for resource governance
(1) Resource management should secure the greatest benefit for citizens through an inclusive and comprehensive national strategy, clear legal framework and competent institutions.
(2) Resource governance requires decision makers to be accountable to an informed public.
  • Economic decisions required to manage resources for prosperity
(3) The government should encourage efficient exploration and production operations, and allocate rights transparently.
(4) Tax regimes and contractual terms should enable the government to realize the full value of its resources consistent with attracting necessary investment, and should be robust to changing circumstances.
(5) The government should pursue opportunities for local benefits, and account for, mitigate and offset the environmental and social costs of resource extraction projects.
(6) Nationally owned companies should be accountable, with well-defined mandates and an objective of commercial efficiency.
(7) The government should invest revenues to achieve optimal and equitable outcomes, for current and future generations.
(8) The government should smooth domestic spending of revenues to account for revenue volatility.
(9) The government should use revenue as an opportunity to increase the efficiency of public spending at the national and sub-national levels.
(10) The government should facilitate private sector investments to diversify the economy and to engage in the extractive industry.
  • International foundations for resource governance
(11) Companies should commit to the highest environmental, social and human rights standards, and to sustainable development.
(12) Governments and international organizations should promote an upward harmonization of standards to support sustainable development.

Resource Governance Index

The Resource Governance Index, developed by NRGI, measures the quality of countries' resource governance and ranks them accordingly. The index is constructed by sending a 149-item questionnaire to 150 experts in 81 countries, who research the issues raised in the questionnaire, compile documentation and complete the questionnaire. The quality of the survey data is then assessed by NRGI and enriched by further data on countries "enabling environments".[14] Finally, NRGI calculates the index as a composite score out of the:

  • Value realization score;
  • Revenue management score;
  • Enabling environment score;

with higher scores indicating a better resource governance process.

Country/territory Assessed sector RGI 2017 score RGI 2017 rank Value realization score Revenue management score Enabling environment score
 AfghanistanMining3471583114
 AlgeriaOil & gas3373402535
 AngolaOil & gas3570503125
 ArgentinaOil & gas5722585458
 AustraliaMining718655196
 AzerbaijanOil & gas4747494349
 BahrainOil & gas3959272663
 BangladeshOil & gas3667393534
 BoliviaOil & gas5434615149
 BotswanaMining6118406281
 BrazilOil & gas716627872
 Burkina FasoMining5920665457
 CambodiaMining3079311840
 CameroonOil & gas5430597033
 CanadaOil & gas754695997
 ChadOil & gas3472394319
 ChileMining812748190
 ChinaOil & gas5529525459
 ColombiaOil & gas717598567
 ColombiaMining6910598267
 DR CongoMining3375523512
 DR CongoOil & gas2584442012
 CongoOil & gas3958454429
 Ivory CoastOil & gas5528606046
 CubaOil & gas3666292357
 EcuadorOil & gas5432515852
 EgyptOil & gas3960453041
 Equatorial GuineaOil & gas2285291817
 EritreaMining108915510
 EthiopiaMining4057463837
 GabonOil & gas3665184744
 GhanaMining5624613770
 GhanaOil & gas6713656570
 GuatemalaMining4156423546
 GuineaMining3863532437
 IndiaOil & gas709756669
 IndonesiaMining6811647665
 IndonesiaOil & gas6812647665
 IranOil & gas3862364534
 IraqOil & gas3761524716
 KazakhstanOil & gas5625535461
 KuwaitOil & gas5433445167
 KyrgyzstanMining5138575144
 LaosMining3864423041
 LiberiaMining4452593041
 LibyaOil & gas188727206
 MadagascarMining3668363438
 MalaysiaOil & gas5627494177
 MaliMining5335487042
 MauritaniaMining2982411036
 MexicoOil & gas6117645465
 MexicoMining6019625365
 MongoliaMining6415635473
 MoroccoMining5237563564
 MozambiqueOil & gas5041664243
 MyanmarOil & gas3177443019
 MyanmarMining2783333019
 NigerMining5431556047
 NigeriaOil & gas4255504431
 NorwayOil & gas861778497
 OmanOil & gas5039324376
 Papua New GuineaMining4746505040
 PeruMining6216685762
 PhilippinesMining5821555267
 QatarOil & gas4353331977
 RussiaOil & gas4550474047
 Saudi ArabiaOil & gas3669232460
 Sierra LeoneMining4649623540
 South AfricaMining5723504080
 South SudanOil & gas327642475
 SudanOil & gas2186262611
 TanzaniaMining4942544053
 TanzaniaOil & gas5336654053
 East TimorOil & gas4943495742
 Trinidad and TobagoOil6414645771
 TunisiaOil & gas5626604067
 TunisiaMining4648403067
 TurkmenistanOil & gas118811021
 UgandaOil & gas4451424247
 UkraineOil & gas4944614045
 United Arab EmiratesOil & gas4254321678
 United KingdomOil & gas773706895
 United StatesOil & gas745666393
 UzbekistanOil & gas2980402522
 VenezuelaOil & gas3374483417
 VietnamOil & gas4845573059
 YemenOil & gas3078502811
 ZambiaMining5040583559
 ZimbabweMining2981373020

References

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