The development narrative in recent times is clear that strengthening public sector management (PSM), and the institutions that are formed within it, is critical if governments are to spur further economic and social progress. As these institutions do not function in a vacuum, understanding the context of PSM in what has been termed ‘real-world conditions’ is an extremely important exercise. Dr. Bhatta takes a public policy perspective to argue that information asymmetry resulting from incomplete information is at the core of what governments should be focusing on for PSM and governance reforms. The fundamental premise of incomplete information leading to information asymmetry (ie, [IIIA]) is a powerful concept when one considers it in its entirety. Given such asymmetry, all individuals, economic agents, governments, and others incur transaction costs to deal with the asymmetry. And in doing so, all of them are on the lookout for credible commitment from the others (be they contractual parties, governments, or neutral entities that uphold the rules of the game). The presentation is based on Dr Bhatta’s current research using the methodology and constructs inherent in New Institutional Economics (at an intellectual level) as well as the Country Performance and Institutional Assessment (at an operational level). The study benefits from several strands of his development programming, academic, consulting, and public sector work over the past 30 years, including as Chief of the Governance Thematic Group at ADB and as Senior Advisor in the New Zealand State Services Commission.