Dr. Nasser bin Ghaith outlined the economic rationale behind increased transparency and applied the lessons to Dubai and the UAE in a Monday evening lecture on “The Economics of Transparency.” Moderated by civic affairs commentator Mishaal Al Gergawi, the event was sponsored by The Kanoo Group.
During his talk, Dr. bin Ghaith highlighted the economic implications of transparency in terms of its effects on important economic sectors (markets) and political institutions (governments). The lecture focused particularly on good governance, market efficiencies, smooth business cycles and the efficient allocation of resources, as well as on the impact that transparency has on each of these factors.
He mentioned that while there is no real incentive for companies to be transparent in their dealings, there are also no serious legal consequences for defaulters who exploit the lack of transparency in the system for personal gain. He stressed the urgency of building an effective judiciary system in the UAE that would have the capacity to deal with the complexities of corporate malpractice and large-scale financial crimes.
Speaking about the possible corrective measures that economies could take at the thought level to promote transparency, Dr. bin Ghaith said: “Belief and religion have a key role to play in changing people’s attitudes towards transparency. Belief is a strong sentiment, which can be a foundation for self restraint. When self restraint becomes a mainstream practice, there is peer pressure to remain honest and veer towards better transparency.”
Dr. bin Ghaith commended the Dubai School of Government for holding discussions on topics that impact policy formation, and added: “By opening up the discussions to members of the media, entrepreneurs and the public at large, this institute promotes a culture of debate, discussion and awareness, which are all key to the future of transparency. Policy formation in this direction can begin effectively through platforms that are honest and offer an unbiased perspective.”
Dr. Nasser bin Ghaith is an Emirati financial analyst specializing in economic trading blocs. Since 2006, he has served as the legal advisor for the UAE Armed Forces/Directorate of General Purchasing, responsible for negotiating contracts with major global defense firms such as Boeing, Lockheed Martin Aeronautics, and Northrop Grumman. He is currently a professor at the UAE Armed Forces Staff College, as well as a lecturer of International Economic Law at La Sorbonne, Abu Dhabi. |