Suddenly, post GFC, transparency has become a buzz-word.
Regulators are calling for “transparency” in financial products, shareholders (and regulators supposedly on their behalf) are calling for “transparency” in executive remuneration schemes, and so on.
Those of us who have been building demand chains know that transparency is a fundamental building block, not because it is just a feel good, but because it reduces transaction costs, exposed arbitrage profits, and enables the needs of the end customer to be the driver in the chain.
From the noise coming from newly enthused regulators, you would think they have discovered something new, rather than just catching up with the practices of a small but growing part of the commercial community that has recognised the contribution transparency can make to their economic and competitive sustainability.
