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Complexity and complementarity – why more raw material alone won’t neccessarily bring open data driven growth

- November 6, 2012 in Featured, Open Data, Open Research

A guest post by Tim Davies from the Web Science DTC at the University of Southampton. Cross posted from the Open Data Impacts blog.

“Data is the raw material of the 21st Century”.

It’s a claim that has been made in various forms by former US CIO Vivek Kundra (PDF), by large consultancies and tech commentators, and that is regularly repeated in speeches by UK Cabinet Office Minister Francis Maude, mostly in relation to the drive to open up government data. This raw material, it is hoped, will bring about new forms of economic activity and growth. There is certainly evidence to suggest that for some forms of government data, particularly ‘infrastructural’ data, moving to free and open access can stimulate economic activity. But, for many open data advocates, the evidence is not showing the sorts of returns on investment, or even the ‘gold rush’ of developers picking over data catalogues to exploit newly available data that they had expected.

At a hack-event held at the soon-to-be-launched Open Data Institute in London a few weeks ago, a number of speakers highlighted the challenge of getting open data used: the portals are built, but the users do not necessarily come. Data quality, poor meta-data, inaccessible language, and the difficulty of finding wheat amongst the chaff of data were all diagnosed as part of the problem, with some interesting interfaces and tools developed to try and improve data description and discovery. Yet these diagnosis and solutions are still based on linear thinking: when a dataset is truly accessible, then it will be used, and economic benefits will flow.

Owen Barder identifies the same sort of linear thinking in much macro-economic international development policy of the 70s and 80s in his recent Development Drums podcast lecture on complexity and development. The lecture explores the question of how countries with similar levels of ‘raw materials’ in terms of human and physical capital, could have had such different growth rates over the last half century. The answer, it suggests, lies in the complexity of economic development – where we need not just raw materials, but diverse sets of skills and supply chains, frameworks, cultures and practices. Making the raw materials available is rarely enough for economic growth. And this something that open data advocates focussed on economic returns on data need to grapple with.

Thinking about open data use as part of a complex system involves paying attention to many different dimensions of the environment around data. Jose Alonso highlights “the political, legal, organisation, social, technical and economic” as all being important areas to focus on. One way of grounding notions of complexity in thinking about open data use, that I was introduced to in working on a paper with George Kuk last year, is through the concept of ‘complementarity’. Essentially A complements B if A and B together are more than the sum of their parts. For example, a mobile phone application and an app store are complements: as the software in one, needs the business model and delivery mechanisms in the other in order to be used.

The challenge then is to identify all the things that may complement open data for a particular use; or, more importantly, to identify all those processes already out there in the economy to which certain open data sets are a complement. Whilst the example above of complements appears at first glance technological (apps and app stores), behind it are economic, social and legal complementarities, amongst others. Investors, payment processing services, app store business models, remmitance to developers, and often-times, stable jobs for developers in an existing buoyant IT industry that allow them to either work on apps for fun in spare time, or to leave work with enough capital to take a risk on building their own applications are all part of the economic background. Developer meet-ups, online fora, clear licensing of data, no fear of state censorship of applications built and so-on contribute to the social and legal background. These parts of the complex landscape generally cannot be centrally planned or controlled, but equally they cannot be ignored when we are asking why the provision of a ‘raw material’ in open data has not brought about the use and impacts that many anticipated.

The newly forming Open Data Research network is currently developing a research project on ‘Exploring the Emerging Impacts of Open Data in the South’ which will be undertaking case study research to identify a range of different factors involved beyond just raw data in enabling open data to impact on political, social and economic governance. Join the mailing list at www.opendataresearch.org to find out more about the project as it develops. 

Analyzing the Yourtopia Dataset

- February 7, 2012 in Crowd-sourcing, Yourtopia

The following post is from Dirk Heine and Guo Xu, members of the Yourtopia project team. 

Last year, the Open Economics Working Group submitted Yourtopia, a crowd-sourced indicator of social progress, to the World Bank Apps4Development competition and has been awarded the third prize. Yourtopia allows users to assign weights on different dimensions of development (e.g. economy, health and education). Based on the weights submitted by all users, we constructed a robust aggregate weighting, reflecting a global “consensus weighting”, which can used as a consensus measure of development. One year later and after more than 4,000 submitted weightings, where do we stand? And perhaps most importantly, how does our “consensus weight” compare to conventional indices, such as the Human Development Index (HDI)?

The results are quite remarkable: Compared to the default weights of the HDI where economy, health and education receive equal weights (33% each), our consensus weight assigns 30% to economy, 34% to health and 36% to education. Two things are worthwhile pointing out:

1) The HDI weights, even though ad-hoc and arbitrary, are nearly identical to the weights obtained by crowd-sourcing. Taking measurement errors into account, we cannot reject that our consensus weights are equal to the HDI weights. Despite the criticism, the HDI appears to be quite robust.

2) Looking at the point estimates only, the consensus weights also suggest that education is the most important dimension of development, followed by health. This is not surprising as human capital plays a crucial role in fostering economic growth. The economy is merely a means towards expanding capabilities.

Finally, we were also able to explore cross-country variation: By matching the IP addresses of the users against their country of residence, we were able to merge individual weights to country-level means. Correlating the country-level averages against other socio-economic variables enables us to address interesting questions: For example, are weightings associated with country-level variables? Are people from richer countries more likely to assign higher weights to economy, or vice versa?

The figure below plots a country’s GDP per capita level against the average country-level consensus weight for “economy”. A high value for the weight indicates that more importance is given to the economy as an indicator of development. The plot suggests a significant negative relationship: People in rich countries tend to assign less importance to the “economy” dimension, while people in poor countries perceive the economy to be more important. If this is indeed the case, we have another reason to re-consider GDP per capita as a measure of social progress.

Of course, the results should be taken with a grain of salt: The submitted weights are obviously subject to selection bias, which can be substantial in developing countries as access to internet is relatively limited. In addition, measurement errors are likely to confound the results as users were allowed to submit several times. While the large sample size can help alleviate some of these concerns, the results should be seen as tentative.

Are you interested in our project?

Help us analyze the Yourtopia dataset! We have released the dataset and are looking forward to more sophisticated analyses!
We are also currently working on Yourtopia 2. If you would like to join the project or come along for a hackday, please contact us at economics [at] okfn.org.

 

Open Economics Hackday

- February 1, 2012 in Events, Hackathon

Open Economics Hackday

Open Economics Hackday at the Barbican, London. Photo by Ilias Bartolini.

 

The following post is by Velichka Dimitrova coordinator of the Open Economics Working Group.

It is great to see people coming together and doing something cool on a Saturday. The Open Economics Hackday gathered more than thirty people at the Barbican and online, crafting fancy visualisations, wrangling data and being creative together.

The day was devoted to ideas in open economics, as a transparent and collaborative academic discipline, which presents research outputs in a comprehensible way to the general public.

We aimed at building Yourtopia 2, an interactive application showing the development of Italy on several key social progress indicators over time. Building on preceding experience with alternative non-GDP measures of human development (Yourtopia), the new project’s objective is to show how different progress can be in the separate Italian regions, as Italy is traditionally a country with stark regional inequalities.

Although originally used as a term for the gatherings of computer programmers, the Open Economics Hackday was open to people with different backgrounds and various skills. Programmers were creating bits of code, data journalists were gathering and processing data, economists were making sure the project concept addresses key problems in this field of research.

Would you like to help finish the Yourtopia 2 application? Please join the follow-up online meeting this Saturday at 2pm GMT. Confirm your participation by typing in your name on the Etherpad: http://econ.okfnpad.org/hackathon-jan-2011.