Lotus Ruan, MAAPPS // March 25, 2015
In my last blog post, I discussed one possible motivation for Mongolia to push forward subnational EITI reporting. Here are some other reasons that why subnational reporting matters to Mongolia and especially its citizens and companies in the countryside.
All Mongolians are affected directly directly and indirectly by the extractive sector, both positively and negatively. So citizens and companies, especially customers of Khan Bank who care about their financial performance, have an vested interest in knowing what taxes and royalties companies are paying to national, provincial and local government, who the beneficial owners are, what they are licensed to mine for.
To companies and investors in particular, subnational EITI reporting provide them with a clearer assessment of local investment climate. While EITI reporting assists and has been proven quite successful in strengthening accountability and good governance, helping individuals and corporates in local communities understand EITI reports can lead to public supervision and contribute to the prevention of corruption or conflicts based around the extractive sectors.