Transparency in Iraq petroleum sector: More symbolic formality than impacting effectiveness

Abstract

Iraq’s petroleum sector has been the only economic sector that has experienced a formal articulated transparency regime for almost a decade through the Extractive Industry Transparency Initiative (EITI). As an entirely new concept in the Iraqi governance mindset, transparency was introduced following the 2003 invasion and Iraq has passed through distinct phases in its association with EITI, from application as a candidate in 2009 to a compliant country by the end of 2012, through its suspension in late 2017, from which time Iraq has worked hard to re-instate its compliancy status. This article discusses and assesses the Iraqi experience with transparency and the path it has followed in its implementation of this new concept for prudent management of its finite natural resources of petroleum. Specifically, what prompted or compelled Iraq to adopt EITI norms; what measures it had taken to gain the compliant status; why that status was suspended; what Iraq was expected to do if it wants to regain that status and, above all, what outcomes and how sustainable they might be are examined. Though Iraq’s EITI (IEITI) experience has been characterized as a bureaucratic formality and symbolic, the article argues that good, comprehensive and regular reporting on transparency enhances transparency and contributes to good governance in the petroleum sector. Hence, the article argues further, that what is needed is how to transform IEITI into a real, effective and impactful change agency.