# **I. Introduction**

Access to information can empower citizens to monitor the quality of government services and the use of public resources. Because government markets are usually monopolistic, the consumers of public services have no “exit” option — they cannot “vote with their feet” by going to a competitor for better services. Access to information is therefore critical if citizens are to exercise their “voice” in demanding greater accountability from public servants (Hirschman (1970), Paul (1992)). A growing body of literature attests to the important role that information can play in improving the delivery and quality of services provided by governments in areas such as public health, sanitation and education (World Bank (2004), Reinikka and Svensson (2005), Deininger and Mpuga (2005), Besley and Burgess (2002)). For example, the government of Uganda demonstrated this by having newspapers publish data on monthly transfers of school grants to local governments. By improving the ability of schools and parents to monitor how local officials handled the grants, the program reduced the share of grant funding lost to corruption from 80% to 20% (Reinikka and Svensson (2005)). With more information, people can better evaluate different options and manage risks more effectively (Ackerlof (1970), Stiglitz and Weiss (1981), Hirshleifer (1980), Stigler (1971), Posner (1981)).

Little attention has been paid so far to the role of information for those branches of government that are in charge of business regulatory requirements. This gap needs to be closed because there is compelling evidence that badly implemented business regulations affect firm creation and productivity negatively. Entry rates of new businesses and business density are lower and more businesses stay in the informal sector, where rules and requirements are cumbersome (DablaNorris et al. (2008), Klapper et al. (2006), Antunes and Calvacanti (2009)). Excessive regulation also goes hand in hand with lower firm productivity (Barseghyan (2008)), Alesina and others (2005), Fisman and Sarria-Allende (2004), Klapper and Richmond (2009)).

The World Bank Enterprise Surveys suggest that there is much room for improvement in service quality and accountability in business regulation. The companies surveyed report that in a typical week their senior managers spend on average 11% of their time dealing with government regulations. More than 50% of them disagree with the notion that regulations are implemented consistently and predictably. And what is worse, companies often have to pay a bribe to get things done. Worldwide, 19% of firms report having had to pay bribes in connection with their application for an operating license or electricity connection.

To shed light on the role that information can play in improving the quality of business regulation, we present and analyze a unique new data set that captures the information practices of public agencies in charge of business regulation. Specifically, the new data capture in which of the sampled 185 economies fee schedules for procedures such as company or property registration, building permitting and electricity connections could be accessed by businesses 2