Global Norm Compliance: A Study on the Implementation of the Extractive Industries Transparency Initiative (Norm Research in International Relations)

This book examines the implementation of, the spread of, and compliance with emerging global norms. Based on empirical country studies on the implementation of transparency norms defined by the Extractive Industries Transparency Initiative (EITI) – a multi-stakeholder process seeking to promote global standards for the transparent and accountable management of oil, gas and mineral resources –, it investigates the various factors and motivations affecting actors with regard to norm compliance. The book demonstrates that compliance with global norms depends on a combination of various factors, including motivations and conditions for introducing norms into the domestic political space; local actors’ level of commitment to the norm; and their capacity for norm compliance. Given its scope, the book will appeal to all international relations scholars interested in processes of norm localisation, compliance, and contestation. Acknowledgements Contents Abbreviations 1 Introduction. Presenting the Extractive Industries Transparency Initiative as a Norm 1.1 Defining a Norm 1.2 Norm Diffusion 1.3 Norm Implementation 1.4 Research Puzzle 1.5 Case Study Selection 1.6 Research Methodology 1.7 Chapter Breakdown References 2 The Theory of Norms: Norm Emergence, Implementation and Diffusion 2.1 Norm Definition 2.2 Norm Emergence and Actors Involved (Norm Entrepreneurs) 2.3 Norm Diffusion Models 2.3.1 World–Polity Model 2.3.2 Finnemore and Sikkink’s Norm Life-Cycle 2.3.3 ‘Boomerang Effect’ Model 2.3.4 ‘Spiral’ Model of Norm Implementation 2.4 Norm Compliance 2.4.1 Sanctions and Norm Non-compliance 2.5 Legitimacy and Norms 2.6 Norm Contestation 2.7 Domestic Norm Implementation 2.7.1 Critical Junctures 2.7.2 Norm Commitment 2.7.3 Norm Internalisation 2.8 Conclusion References 3 EITI as an Emerging Global Norm 3.1 Introduction: A Definition of Transparency and a History of Transparency 3.1.1 Definition and Emergence of Transparency 3.2 Transparency and Civil Society Advocacy 3.3 Resource Curse and Transparency 3.4 Good Governance and Transparency 3.5 International Initiatives to Promote Transparency in Extractive Industries 3.5.1 Criticism of Transparency 3.6 Theoretical Implications for the Study of the Transparency in Extractive Industries Norm 3.7 The EITI as a Pillar of Institutional Support for the Transparency in Extractive Industries Norm 3.7.1 History of the EITI 3.7.2 Supporters of the EITI 3.7.3 The Stages of the EITI Process 3.8 Conclusion References 4 Norway: Leading by Example 4.1 Introduction 4.2 The Importance of the Oil Sector for Norway 4.2.1 Norwegian Government Pension Fund: An Instrument for Oil Revenues Management 4.3 EITI Process in Norway: From Endorsement to Implementation 4.3.1 Norm Emergence: Norway as a Transparency Norm-Setter and Follower 4.3.2 Norm Commitment: Actions to Achieve Compliant Status 4.3.3 Norm Internalisation: Sustaining Compliant Status and the Future Prospects of the EITI in Norway 4.3.4 Actors Involved, Transnational Networks, and Norm Entrepreneurs 4.4 Outcomes of the EITI’s Implementation in Norway 4.4.1 Access to Information and the EITI 4.4.2 The EITI as a Mechanism to Support Extractive Companies 4.4.3 The EITI as a Mechanism to Create Links Between Civil Society, Government and Private Sector 4.5 Challenges and Debates Relating to EITI Implementation in Norway 4.5.1 Sustainability of the EITI Process in Norway 4.5.2 Limited Interest Inside Norway 4.5.3 Reverse Legitimacy: Domestic Implementation for International Benefits 4.5.4 The EITI as Part of the Norwegian Foreign Policy Agenda 4.6 Conclusion References 5 EITI Implementation in Kazakhstan: Overcoming Hurdles to Reach Compliance 5.1 Introduction 5.2 Elites and the Internal Structure of the Extractive Industry Sector in Kazakhstan 5.2.1 The Relationship Between Business and Political Elites in Kazakhstan 5.3 Extractive Industry Sector in Kazakhstan 5.3.1 Legislative Base of the Extractive Industry Sector in Kazakhstan 5.3.2 Management of Revenues from Natural Resources: National Fund of the Republic of Kazakhstan 5.4 Critical Juncture 5.5 The EITI Process in Kazakhstan 5.5.1 Pre-candidacy Period 5.5.2 Candidacy Period 5.5.3 Compliance Period 5.5.4 Sub-national-Level Implementation of the EITI 5.6 Outcomes of EITI Implementation 5.6.1 Access to Information on Resource Revenues 5.6.2 Government Responsibility 5.6.3 Interaction Between the Government and Business Entities 5.6.4 Corruption and Government Accountability 5.6.5 Interaction Between Government and Civil Society Organisations 5.7 Challenges in the EITI’s Implementation in Kazakhstan 5.7.1 Popularisation of the EITI in Kazakhstan 5.8 Sustainability of the EITI Process in Kazakhstan 5.9 EITI Implementation to Gain External Legitimacy 5.10 Conclusion References 6 Kyrgyzstan: Capacity Constraints and Failed Compliance 6.1 Introduction 6.2 Overview of Kyrgyzstan’s Economy 6.2.1 Kumtor Gold Mine 6.3 Beginning of the EITI Process 6.4 Implementation of the EITI: Challenges and Outcomes 6.4.1 EITI Governance in Kyrgyzstan 6.4.2 Cooperation with International Donors 6.4.3 Beneficial Ownership 6.4.4 Engagement with the General Public 6.5 Suspension and the Way Forward 6.6 State Capacity and Norm Compliance 6.7 Conclusion References 7 EITI Implementation in Azerbaijan: The Role of Internal Factors in the Norm’s Internalisation 7.1 Introduction 7.2 The Importance of the Oil and Gas Industries for the Domestic and Foreign Policy of Azerbaijan 7.2.1 History of Azerbaijan’s Oil Industry and the Politicisation of Oil 7.2.2 Role of Foreign Investors in Azerbaijan’s Energy Sector 7.2.3 Establishment of the State Oil Fund of Azerbaijan 7.3 Critical Juncture and Turning Point in Azerbaijan’s Decision to Join the EITI 7.4 The EITI’s Beginning 7.4.1 The Role of External Actors in the EITI’s Implementation in the Early Stages 7.4.2 Role of Internal Actors in the EITI’s Implementation 7.5 The EITI’s Implementation in Azerbaijan 7.5.1 Pre-candidacy Period 7.5.2 Candidate Period 7.5.3 Compliant Period 7.6 Outcomes of the EITI’s Implementation in Azerbaijan 7.6.1 The EITI Process as a Platform for Dialogue 7.6.2 Reputational Concerns 7.7 Challenges in Azerbaijan’s EITI Implementation 7.8 Downgrade of Azerbaijan’s EITI Status and Withdrawal: Clash of Rhetorics 7.8.1 The Unique Case of an EITI Status Downgrade 7.8.2 The Process of Azerbaijan’s EITI Status Downgrade 7.9 Second Critical Juncture—External Factors that Influenced the Withdrawal from the EITI 7.9.1 Internal Legitimacy from the Oil Rents and External Legitimacy from Transparency Implementation 7.10 Conclusion References 8 Elements of Norm Implementation 8.1 Introduction 8.2 The Special Case of the EITI 8.3 Critical Junctures and Norms 8.4 Domestic Structures’ Influence on Norm Implementation 8.4.1 The Circle of Decision-Makers and the Nature of the Decision-Making Process 8.4.2 State–Society Relations 8.4.3 Personality Factor 8.4.4 Existing Norms 8.5 Legitimacy of a Norm 8.6 Norm Implementation Model 8.6.1 Norm Commitment Stage 8.6.2 Norm Internalisation Stage 8.6.3 Norm Compliance Stage 8.6.4 Norm Diffusion Stage 8.7 Conclusion References 9 Conclusion 9.1 Major Contributions of the Book to the Study of Norms 9.1.1 Critical Juncture and Norms 9.1.2 Norway’s EITI Implementation 9.1.3 Kazakhstan’s EITI Implementation 9.1.4 Kyrgyzstan’s EITI Implementation 9.1.5 Azerbaijan’s EITI Implementation 9.2 Essential Elements of Norm Implementation 9.2.1 Interests and Norms 9.2.2 Identifying Factors for Norm Implementation—Domestic Structures and International Norms 9.2.3 Role of Actors in Norm Implementation 9.2.4 Norm Contestation 9.2.5 Reasons for Compliance 9.3 Areas for Further Research 9.4 Future of the EITI References