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