Better and more timely information promotes better allocation of resources, including the global allocation of capital. The financial crises of the last several years indicate that greater transparency is needed on levels of external debt, including short-term foreign currency debt of the central government, and on levels of international reserves, including financial derivative positions.
For transparency standards to be most effective, they require as broad a participation by authorities as possible. Further, they must balance the need for comprehensive and timely disclosure with the need for accurate data. Improvements in financial data from the private sector, which I have discussed, are crucial, but public sector disclosure must not await improvements in private sector disclosure.