Towards Transparency in Finance and Governance

The study of transparency is increasingly a more topical, broadly relevant, but also more under-researched enterprise. The Asian financial crisis has highlighted not only the welfare consequences of financial sector transparency, sparking a series of yet unresolved debates, but has also linked this relatively narrow problem to the broader context of transparency in governance. Its significance has broadened geographically as well as across different sectors. It has been observed that curtailment of transparency, often on scanty pretexts, is commonplace even in the highly developed countries. This suggests a broad and possibly radical reform agenda. Departing from the urgency of these observations, this paper reviews the existing literature on transparency in finance and governance, indicates remaining knowledge gaps, and offers some hypothesis on the mutual significance of the two issues. The first two sections of the paper outlines a conceptual framework for defining and measuring transparency that distinguishes among its desirable characteristics; access, timeliness, relevance, and quality. It also suggests methodologies that may produce tractable measures of transparency. Additionally, it places in context debates concerning transparency; its desirability, contingency, complexity and regulation. Reviewing critiques of objections against disclosure, the chapter advances a general preference for transparency, not only in the developing but also in the developed world. Nevertheless, it emphasizes the need to weigh the costs and benefits of more transparency in designing regulatory policy. In general, while consequences of information imperfections are well recognized, the solution is not simply a matter of more information. The third section treats the role of transparency in promoting greater financial stability, acknowledging exceptions to the general preference expressed earlier, in relation to financial stability. It treats as priority policy issues the following problems: developing institutional infrastructure, developing standards and accounting practices, improving incentives for disclosure and balancing countervailing regulations to minimize perverse incentives generated by safety net arrangements such as deposit insurance. An important suggestion is that since institutional development is gradual, relatively simple regulations such as limits on credit expansion, may be best tailored to developing countries. Implicit in this section is the notion that there are absolute limits to transparency, in particular for lack of adequate enforcement. The last section elaborates on the concomitant link between financial markets and governance, discussing select consequences of transparency for national-level and local governance, identifying some policy implications and suggesting further research issues. As illustrated by the case of Indonesia, it argues that financial reform may be predicated on broader public sector reforms. Again, because formal institutions take time to develop, it highlights three principles of reform to promote incentives for openness: harnessing private sector participation in service provision, promoting exit and contestability, and encouraging "voice" and public participation. These are now increasingly being integrated to new innovative data collection and analysis techniques, and to particular dissemination methods promoting collective action to improve governance and enhance transparency. The chapter concludes by outlining the difficulties of implementing greater participation and voice.financial liberalization, transparency, corruption, governance, banking crisis, asymmetric information, local investors, shocks, bad loans, emerging markets

Effect of angiotensin-converting enzyme inhibitor and angiotensin receptor blocker initiation on organ support-free days in patients hospitalized with COVID-19

IMPORTANCE Overactivation of the renin-angiotensin system (RAS) may contribute to poor clinical outcomes in patients with COVID-19. Objective To determine whether angiotensin-converting enzyme (ACE) inhibitor or angiotensin receptor blocker (ARB) initiation improves outcomes in patients hospitalized for COVID-19. DESIGN, SETTING, AND PARTICIPANTS In an ongoing, adaptive platform randomized clinical trial, 721 critically ill and 58 non–critically ill hospitalized adults were randomized to receive an RAS inhibitor or control between March 16, 2021, and February 25, 2022, at 69 sites in 7 countries (final follow-up on June 1, 2022). INTERVENTIONS Patients were randomized to receive open-label initiation of an ACE inhibitor (n = 257), ARB (n = 248), ARB in combination with DMX-200 (a chemokine receptor-2 inhibitor; n = 10), or no RAS inhibitor (control; n = 264) for up to 10 days. MAIN OUTCOMES AND MEASURES The primary outcome was organ support–free days, a composite of hospital survival and days alive without cardiovascular or respiratory organ support through 21 days. The primary analysis was a bayesian cumulative logistic model. Odds ratios (ORs) greater than 1 represent improved outcomes. RESULTS On February 25, 2022, enrollment was discontinued due to safety concerns. Among 679 critically ill patients with available primary outcome data, the median age was 56 years and 239 participants (35.2%) were women. Median (IQR) organ support–free days among critically ill patients was 10 (–1 to 16) in the ACE inhibitor group (n = 231), 8 (–1 to 17) in the ARB group (n = 217), and 12 (0 to 17) in the control group (n = 231) (median adjusted odds ratios of 0.77 [95% bayesian credible interval, 0.58-1.06] for improvement for ACE inhibitor and 0.76 [95% credible interval, 0.56-1.05] for ARB compared with control). The posterior probabilities that ACE inhibitors and ARBs worsened organ support–free days compared with control were 94.9% and 95.4%, respectively. Hospital survival occurred in 166 of 231 critically ill participants (71.9%) in the ACE inhibitor group, 152 of 217 (70.0%) in the ARB group, and 182 of 231 (78.8%) in the control group (posterior probabilities that ACE inhibitor and ARB worsened hospital survival compared with control were 95.3% and 98.1%, respectively). CONCLUSIONS AND RELEVANCE In this trial, among critically ill adults with COVID-19, initiation of an ACE inhibitor or ARB did not improve, and likely worsened, clinical outcomes. TRIAL REGISTRATION ClinicalTrials.gov Identifier: NCT0273570

Pakistan: Country Gender Assessment, Bridging the Gender Gap, Opportunities and Challenges

If Pakistan is to reduce gender gaps and achieve its development goals, policy interventions will require a dual focus on near-term and long-term outcomes. In the near term, females need access to basic services and opportunities. In the longer term the economic, cultural, and political environment must sustain improved circumstances for women in health, labor force participation, and other outcomes. Far deeper and more integrated initiatives are needed if long-standing trends in gender inequality are to be reversed. What role does public policy play? In many cases minor changes in laws and institutions can foster greater involvement by women in the public sphere to enable them to pursue activities that further enhance their autonomy and elevate their status. Such changes may encourage parents to educate their daughters, for instance, which will enable future generations of women to make better health-related and economic decisions within the household, and to participate in political life where they can contribute to further social and legal change. What is to be done in the meantime, as institutional reforms and economic growth may make limited and slow progress? Active policy measures to promote gender equality in the present are crucial. In particular, near-term approaches must work around existing constraints on women and girls, augmenting their access to basic services, paid work, and opportunities for decision-making in the public sphere. The analysis in this report has incorporated research and insights from scholars and civil society organizations in Pakistan in order to arrive at precisely these types of near-term approaches

Risk Management in South Asia: A Poverty Focused Approach

In recognition that poverty and vulnerability are mutually reinforcing, because the poor lack the ability to insure against risks, often shaping behavior and decision making to minimize exposure to risks, even at the cost of economic efficiency, and long-term interest, this paper reviews what is known about the risk-coping, and risk-mitigating behavior of the poor in South Asia. It examines the support received from the governments, and nongovernmental organizations, as well as the Bank's contributions, and, presents suggestions for a strategy to reduce poverty, and efforts to overcome risk. Analytical work classifies the risks that threaten different vulnerable groups, or poor households, according to poverty incidence and severity, and, a similar effort evaluates both the risk-reducing impact of anti-poverty programs, and the performance and potential of less traditional approaches, such as micro-finance. On assessing government programs, the study evaluates the role, impact, and potential of policy mechanisms, or strategies commonly used in the region, reviewing welfare programs in public works, transfers in cash or kind, innovative programs for savings and insurance services, and pension reforms, as well as how to expand such programs. The study argues on the need for a comprehensive social protection strategy that can address both poverty, and vulnerability, identifying the priorities of vulnerable groups, and specific risks, to then develop an implementation structure, and institutional reforms that expand market opportunities which facilitate formal mechanisms for risk management

Optimal Orderings for Parallel Project Selection.

Suppose there are a finite number n of activities or projects, each yielding an unknown reward at an uncertain time. Several m ( Copyright 1992 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.