The book “Full Disclosure” is a must read for anybody working with transparency policies.
In this brief new paper, the authors (David Weil, Archon Fung and Mary Graham) discuss the concept of targeted transparency, and shed light on how and when it works.
Targeted transparency represents a more focused approach to public information in which government compels companies or public service agencies to disclose information in standardized formats in order to reduce specific risks or improve services. Such policies are more light-handed than conventional regulation because they rely on the power of information rather than on enforcement of rules and standards or financial inducements to alter choices.
Targeted transparency is frequently used to introduce new scientific evidence of public risks into market choices. As targeted transparency takes a prominent place beside standard-setting and financial incentives as a tool of social policy, it becomes more important to understand when and how it works. Ineffective disclosure requirements can be costly. Forcing companies to collect and disclose information can require substantial resources. Mandated disclosure of incomplete or ou-tof-date information can mislead consumers and create new risks.
Read the full paper here [PDF]
In the video below you can watch a panel discussion on “Full Disclosure” at Harvard’s Kennedy School of Government on April 11, with Elena Fagotto, Archon Fung, Mary Graham, and David Weil.