Examining the Implementation of the Extractive Industries Transparency Initiative in Azerbaijan and Kazakhstan

The paper looks at the key challenges facing the implementation of the Extractive Industries Transparency Initiative (EITI) in two former Soviet countries, Azerbaijan and Kazakhstan. Generally the EITI is playing a very significant role in attracting investment to national economies and improving revenue management, leading to poverty reduction in natural resource rich countries. EITI implementation in a country sends a message to international investors and companies about government commitment to enhanced transparency and accountability; thus, the country could be perceived as a more attractive investment opportunity, which in turn may contribute to rapid economic growth in other sectors. In the long term, an improvement in the country's risk ratings may ensure access to low-cost funds becomes easier