banking service chronicle november 2019

 banking service chronicle november 2019

banking service chronicle november 2019  published this articleThe Government intervenes to correct market failures or to influence the allocation of resources in favour or against the interests of a defined group of people. The more transparent and accountable the actions of the Government the less distortion in the allocation of resources and the less resulting inefficiency. The Government should declare its intentions and actions in advance whenever possible then it should act through public open tenders report often to regulatory and legislative bodies and to the public and so on. The more information provided by this major economic player the most dominant in most countries – the more smoothly and efficaciously the Market will operate. The converse unfortunately is also true. The less open the government the more latent its intents the more shadowy its operations – the more cumbersome the bureaucracy the less functioning the market. From Government to the Firms – The same principles that apply to the desirable interaction between Government and Market apply here. The Government should disseminate information to firms in its territory and out of it accurately equitably and speedily. Any delay or distortion in the information or preference of one recipient over another – will thwart the efficient allocation of economic resources. From Government to the World – The World here being multilateral institutions foreign governments foreign investors foreign competitors and the economic players in general providing that they are outside the territory of the information disseminating Government. banking service chronicle november 2019

banking services chronicle official website

  banking services chronicle official website

 banking services chronicle official website published this article Again any delay or abstention in the dissemination of information as well as its distortion disinformation and misinformation will result in economic outcomes worse that could have been achieved by a free prompt precise and equitable =equally available dissemination of said information. This is true even where commercial secrets are involved It has been proven time and again that when commercial information is kept secret – the firm or Government that keeps it hidden is HARMED. The most famous examples are Apple which kept its operating system a wellguarded secret and IBM which did not Microsoft which kept its operating system open to developers of software and other software companies which did not. Recently Netscape has decided to provide its source code the most important commercial secret of any software company free of charge to application developers. Synergy based on openness seemed to have won over old habits. A free unhampered unbiased flow of information is a major point of attraction to foreign investors and a brawny point with the likes of the IMF and the World Bank. The former for instance lends money more easily to countries which maintain a reasonably reliable outflow of national statistics. From Firms to the World – The virtues of corporate transparency and of the application of the properly revealing International Accounting Standards IAS GAAP or others need no evidencing. Today it is virtually impossible to raise money to export to import to form joint ventures to obtain credits or to otherwise collaborate internationally without the existence of full unmitigated disclosure. The modern firm if it wishes to interact globally must open itself up completely and provide timely full and accurate information to all. This is a legal must for public and listed firms the world over though standards vary. Transparent accounting practices clear ownership structure available track record and historical performance records – are sine qua non in todays financing world. From Firms to Firms – This is really a subset of the previous axis of dissemination. Its distinction is that while the former is concerned with multilateral international interactions – this axis is more inwardly oriented and deals with the goingson between firms in the same territory. banking services chronicle official website