Supporting economic growth

We support several initiatives to promote stable economic development and transparency in countries that are rich in natural resources

The risk is that mismanagement of resource revenues can destabilize economies, damage traditional industries, breed corruption and jeopardize the performance and reputation of the companies involved. BP therefore supports governments in promoting transparency and prudence as they manage oil and gas revenues.

Many of our projects have life cycles of 30 to 40 years, and to sustain our business over such a period, we endeavour to make our presence a force for positive change.

Supporting economic management in Azerbaijan

In Azerbaijan, where oil and gas revenues, some from BP’s operations, are helping to drive high economic growth, we are supporting an advisory programme for the government on macroeconomic management and institutional reform. The project’s objective is to assist the Ministry of Economic Development in economic policy, and implementing efficient structural reforms. Specific areas covered will include evaluation of economic data, preparation of long-term projections, and building the planning capacity for comprehensive public investment policies.

In addition we are helping to fund the Azerbaijan business enabling environment project which is designed to support the government’s efforts to improve the business environment.

Oxford Centre for the Analysis of Resource-Rich Economies

We fund the Oxford Centre for the Analysis of Resource-Rich Economies (OxCARRE) at the University of Oxford, which studies how countries rich in oil, gas and minerals can use their resources for successful development. In 2008, the centre published a range of papers on topics including the role of trade, aid, tariffs and extraction rights in the economies of resource-rich countries. It also held a conference at which experts presented their research and exchanged views on subjects ranging from civil wars to sovereign wealth funds. The director of OxCARRE is Tony Venables, the first BP Professor of Economics and formerly chief economist at the UK’s Department for International Development.

Extractive Industries Transparency Initiative

We remain a member of the Extractive Industries Transparency Initiative (EITI) which supports the creation of a standardized process for transparent reporting of company payments and government revenues from oil, gas and mining. In Azerbaijan we have continued to publish our disaggregated EITI data in our annual sustainability reports. The Azerbaijani government has decided to proceed with the EITI validation process this year and has already established a working group for co-ordination of this process. The validator, Coffey International Development, will disclose the final report in early 2009. We hosted the launch of the EITI Country Implementation Guide at the BP headquarters in July and we remain an active member of the industry group of EITI members.