British Prime Minister Tony Blair yesterday called on Third World governments to be more open in their handling of cash for oil and mining rights, saying transparency would attract more foreign investment.
Some big Western oil companies have said they are happy to reveal their billion-dollar payments to countries such as Angola, but are prevented from doing so by confidentiality agreements imposed by the host governments.
"We need foreign investment to come into the developing world. It is less likely to come if there is a lack of transparency," Mr Blair told a forum organised by the Department for International Development in London.
"We aim to increase the commitment of the developed world to aid and to industry on the basis of partnership. In return, developing countries have to take measures towards governance. The transparency initiative is one part of that."
The British premier offered one million pounds in technical assistance to any country offering to pilot a new scheme aimed at improving transparency.
Non-government organisations (NGOs) have focused their campaigns on forcing companies to reveal payments for oil and metals deals, and urged Western governments to adopt a compulsory code.
Billionaire philanthropist George Soros backs a three-step campaign that would force companies to publish what they pay, governments to publish what they receive, and also make governments accountable for how they spend the money.
"A voluntary compliance approach may not achieve even the first step," Mr Soros said in a statement issued at the forum.
"While I support this approach, I am concerned that it should not turn into a sham."
Campaigners say a voluntary code could benefit companies that decide to keep payments secret, and disadvantage those that disclose them.
But a compulsory code imposed selectively could also benefit non-compliant countries and their companies.
The British government forum with NGOs and industry, called the Extractive Industries Transparency Initiative (EITI), backs voluntary disclosure, echoing an agreement by the Group of Eight powerful nations earlier in June.
Sam Laidlaw, executive vice-president of business development at US energy giant ChevronTexaco, insisted that the initiative must remain voluntary, involve host governments and also honour the sanctity of contract.
"So far the EITI has successfully adhered to those criteria. But corruption will not disappear without political will," he told the forum.
BP chief executive John Browne said investors in a number of countries had been discouraged by a lack of transparency. The British energy group has started a track record of transparency in the countries where it operates.
"It is not easy, but we are making progress," Mr Browne said. "The host countries will be the beneficiaries of improved transparency."