Transparency is more than simply the disclosure of information. The OECD defines it as “the capacity of regulated entities to identify, understand and express views on their obligations under the rule of law”. Thus a transparent government should provide easy access to government information, make the information simple and easy to understand and provide an opportunity to businesses, “the regulated entities”, to express their opinions. Policy risk is another critical factor that can negatively affect the business climate. It refers to the frequency and predictability of changes in government policies that affect businesses as perceived by firm managers, investors, and other stakeholders.
The Transparency and Policy Risk Sub-index aims to access transparency and policy risk at the district level. Several questions were specially designed to gauge the variables of access to information and the predictability of government policies.
The higher overall index score along with the individual scores for sub-indices always refer to a better performance within the context of the BEI.