NATIONAL PUBLIC ESTABLISHMENTS: HOW DOES TRANSPARENCY INFLUENCE PERFORMANCE?

Public Finance Management

Transparency is a key focus of research concerning National Public Establishments (NPEs), even if its relationship with performance stays a debate subject within the scientific literature. In fact, existing studies offer mixed conclusions : some highlight significant performance improvements associated with increased transparency, while others do not manage to demonstrate a strong correlation. It is important to underline that this relationship is inherently complex, and it transcends simple direct causality. Multiple variables contextual, organizational, and stakeholder-related play a substantial role in shaping how transparency influences the operational efficiency of NPEs. Besides, transparency particularly serves as a significant mechanism in sectors which are vulnerable to corruption and power abuse. In this context, Financial Control assumes a major role by promoting the responsible allocation and use of public funds, while also fostering good governance. Such proactive approach avoids illegal exploitation and misappropriation, thereby guaranting that benefits are distributed fairly and equitably across the population. As a consequence, transparency can be a powerful driver for improving NPEs performance if it is applied with careful attention to organizational and contextual specificities. Each NPE must implement robust budgeting and expenditure control mechanisms to ensure resources the efficient and effective use of allocated resources. Ultimately, decisions to enhance financial transparency should be taken into consideration by a thorough assessment of each institution's unique characteristics, potential advantages, and possible constraints.

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.