Global Policy Forum

by Joseph Stiglitz and Roumeen Islam*

Nearly 400 years ago, the English philosopher and writer Francis Bacon wrote that knowledge is power. Today, we see that maxim play out in many ways in the political and economic spheres in both rich and poor countries.

In government, a high level of secrecy often enables those in authority to hoard their knowledge to increase their power, hobbling peoples' ability to take part in the political process in a meaningful way. Behind closed doors, corruption thrives. In the private sector, corrupt corporate captains can keep shareholders in the dark and line their own pockets.

Most countries pay lip service to the value of transparency and openness in government. Some have gone further; they have taken strong actions to promote transparency, recognizing that citizens have a basic right to information and public debate. But there are still far too many governments that withhold information and stifle the media who try to bring knowledge to the public.

A new book published by the World Bank says that this needs to change. It argues that access to information is an essential component of a successful development strategy. To reduce global poverty, we must liberate access to information and improve its quality.

Free and independent media can expose corruption in government and the corporate sector, provide a voice for citizens to be heard, help build public consensus to bring about change, and enable markets to work better by providing reliable economic information.

Free speech and a free press not only make abuses of government powers less likely, they also enhance the likelihood that people's basic social needs will be met. In doing so, a free press reduces poverty and boosts economic development.

In many countries, a free and independent media providing reliable information is increasingly being recognized as contributing to greater government accountability and more efficient markets. Anyone who doubts the power and importance of information just needs to look at the increasing proportion of the work force involved in gathering, processing and disseminating information.

Despite this revolution in the information industry, those in government often monopolize information, just as corporate heads frequently withhold information about the firm's markets, prospects and technology from shareholders. When they present information to the public, they often use accounting frameworks that are misleading. Recent examples in the private sector include the treatment of stock options; in the public sector, they include deceptive use of 10-year budget windows.

But previous work at the World Bank and elsewhere has shown that the media can play an important watchdog role that narrows the knowledge gap. This is true not only in the "big picture" issues involving the overall performance of the public and private sectors, but also in more specific areas. For example, requiring companies to report their pollution levels in the media can be an effective way of curbing pollution.

The key question for decision-makers is what steps might be taken to establish and maintain free and independent media. Governments can help expand the media's reach by enhancing competition, reducing restrictions on the entry of new media, establishing a balanced regulatory framework, and encouraging and participating in innovative ways to reach people.

Too often in the process of privatization, not enough attention has been placed on the importance of maintaining a diversity of perspectives. Substituting state controlled media with a system controlled by one or two oligarchs has not restored confidence in the media, nor has it strengthened the nascent democracies.

Establishing a legal framework that ensures freedom of the press and the concomitant "right to know," through freedom of information acts, is also essential. Finally, part of a successful strategy of democratic development must focus on enhancing independent and informed reporting by setting up journalism schools and other programs for training journalists.

But the media are in essence a business. Their survival depends on the overall economic environment. It can be shaky, especially in poor countries. Still, there are hopeful signs. Countries ranging from Albania to Zambia are trying to find ways to develop the incentives, policies, education systems, and technical expertise that will allow them to take advantage of the enormous changes brought by the rapid spread of communications and information technologies.

Joseph Stiglitz is a Nobel laureate in economics and a professor at Columbia University. Roumeen Islam is a manager at the World Bank Institute. They contributed this comment to the International Herald Tribune.