The cost of Azerbaijan's leaving the Extractive Industries Transparency Initiative (EITI): analysis of the impact on the economy and civil society

Abstract

Azerbaijan's membership in the EITI is considered a key asset to the country's oil and natural gas economy. As a result of leaving the EITI, Azerbaijan might be regarded as ineligible for future loans by the World Bank and other international institutions for projects, such as the Southern Gas Corridor Project (TAP&TANAP). It is quite an important decision for the country, which was a founding member of the initiative, to leave it. It is going to have considerable effects on the economy and civil society in Azerbaijan. This article aims to shed light on the possible domestic developments of Azerbaijan's suspension of the EITI. In the beginning, essential information on the Extractive Industries Transparency Initiative (EITI) and its role in Azerbaijan's economy will be presented. Next, the article will move on to the history of Azerbaijan-EITI relations. After exposing the current tense situation between the parties and explaining the reasons for the tension, the article will move on to possible impacts of the decision to leave EITI on the economy and civil society in Azerbaijan. In the final section, concluding thoughts will be provided.