Why is transparency important during a government’s financial response to a crisis?
Answer (1)
Transparency is crucial during a financial crisis because it builds public trust and ensures that funds are being used properly. When the government clearly explains its plans, reports spending, and updates the public honestly, citizens and businesses feel more confident and less panicked. This encourages cooperation and faster recovery. For example, if people trust that ayuda (cash aid) is being distributed fairly, they are more likely to follow rules and support recovery efforts. On the other hand, if they see corruption or unclear policies, they lose confidence, which can lead to unrest or refusal to cooperate with government programs.
