section_path: Industry/Regulation and governance
section_name: Regulation and governance
paragraph_text: Regulation and governance
  
  New regulations and a process of legislative reforms aim to improve the harmonization and stability of the mining sector in mineral-rich countries. New legislation for mining industry in African countries still appears to be an issue, but has the potential to be solved, when a consensus is reached on the best approach. By the beginning of the 21st century, the booming and increasingly complex mining sector in mineral-rich countries was providing only slight benefits to local communities, especially in given the sustainability issues. Increasing debate and influence by NGOs and local communities called for new approaches which would also include disadvantaged communities, and work towards sustainable development even after mine closure (including transparency and revenue management). By the early 2000s, community development issues and resettlements became mainstream concerns in World Bank mining projects. Mining-industry expansion after mineral prices increased in 2003 and also potential fiscal revenues in those countries created an omission in the other economic sectors in terms of finances and development. Furthermore, this highlighted regional and local demand for mining revenues and an inability of sub-national governments to effectively use the revenues. The Fraser Institute (a Canadian think tank) has highlighted the environmental protection laws in developing countries, as well as voluntary efforts by mining companies to improve their environmental impact.
  
  In 2007, the Extractive Industries Transparency Initiative (EITI) was mainstreamed in all countries cooperating with the World Bank in mining industry reform. The EITI operates and was implemented with the support of the EITI multi-donor trust fund, managed by the World Bank. The EITI aims to increase transparency in transactions between governments and companies in extractive industries by monitoring the revenues and benefits between industries and recipient governments. The entrance process is voluntary for each country and is monitored by multiple stakeholders including governments, private companies and civil society representatives, responsible for disclosure and dissemination of the reconciliation report; however, the competitive disadvantage of company-by-company public report is for some of the businesses in Ghana at least, the main constraint. Therefore, the outcome assessment in terms of failure or success of the new EITI regulation does not only "rest on the government's shoulders" but also on civil society and companies.
  
  However, implementation has issues; inclusion or exclusion of artisanal mining and small-scale mining (ASM) from the EITI and how to deal with "non-cash" payments made by companies to subnational governments. Furthermore, the disproportionate revenues the mining industry can bring to the comparatively small number of people that it employs, causes other problems, like a lack of investment in other less lucrative sectors, leading to swings in government revenue because of volatility in the oil markets. Artisanal mining is clearly an issue in EITI Countries such as the Central African Republic, D.R. Congo, Guinea, Liberia and Sierra Leone – i.e. almost half of the mining countries implementing the EITI. Among other things, limited scope of the EITI involving disparity in terms of knowledge of the industry and negotiation skills, thus far flexibility of the policy (e.g. liberty of the countries to expand beyond the minimum requirements and adapt it to their needs), creates another risk of unsuccessful implementation. Public awareness increase, where government should act as a bridge between public and initiative for a successful outcome of the policy is an important element to be considered.