My partners and I live in a third world country. For years we’ve been ruled by a government that is well known to be corrupt and exploitation is underneath every institution, private companies and everything we do. It is in our state spending, in our transportation agency, in the contracts for the company’s investments and in the everyday taxes we pay.
Although more explicit, corruption and misrepresentation is not only a third world problem. Think about the many cases of fraud involving investment banking, insurance companies and even in the retirement fund administration.
The problem is that society’s lack of openness and transparency often creates fertile ground for mistrust and mushrooming of misconceptions and negative perceptions that is dangerous to the governance of any ecosystem. The process of governance is incomplete without upholding transparency.
Take for example pension fund management: despite being heavily regulated, there are still several cases of fraud in pension funds around the globe like in UK and Brazil.
The main problems related to fraud in a pension fund include: employer not paying contributions, misappropriation of investment assets, improper payment for services, abuse of position providing of pension benefits or payments, deny in pension benefits, hidden fees and financial statements manipulation.
When an institution is able to lay bare its operational activities for open scrutiny by the public it allows citizen participation, involvement and meaningful engagement such that it can protect itself from the powerful and the corrupts, when they are acting in secrecy and concealed practices to take advantage from the system inefficiencies. That’s why we believe that radical transparency is the most potent strategy to battling corruption and misrepresentation.
For that ...