In Ukraine open data are evolving quite rapidly
Last year, open data has already brought more than $700 million, This figure may reach $1.14 billion if the state continues to make data available to everyone. In this column, head of open data (the project “Transparency and accountability in public administration and services”), Ekaterina Velioglu and the first Deputy Chairman of the State Agency for e-government Alexei Viscum tell how government transparency will bring money to the budget.
According to McKinsey & Company, 2013, the global market for open data has the potential to reach $3.2 trillion. According to the recent research conducted by Capgemini for the European Commission in 2015, and direct the amount of public sector open data in the countries of the EU28 + is € 55,3 and projected to increase 36.9% by 2020.
In Ukraine open data are evolving quite rapidly, as evidenced by the ratings. For example, the Open Data Barometer, where Ukraine has risen from 62 to 44. There are more startups that use open data as part of their business model, and for the development of these projects invested funds through a national competition Open Data Challenge. But how dynamic this market is and whether we can say that open data has economic influence in Ukraine too? Whether the state gets any benefit from the publication data?
How to measure the impact of open data
Open data has a direct and indirect impact on the economy. Companies developing new products or services using open data have a direct impact, because they make a profit and create jobs. But there are more indirect benefits that get users that is developed based on open data of goods or services. Indirect impact covers the development of the best and efficient services, as well as the growth of the knowledge economy and improve efficiency and productivity in the market. The market is open data always estimate taking into account direct and indirect effects, but in most cases it measures the impact on the global economy or the EU. Now influential is the methodology of the European Commission from 2015. Lateral Economics, using the methodology of the European Commission, showed that the economy of the countries of the big twenty is growing at 1.1% of GDP.
The value of open data in Ukraine
This year Lateral Economics, Open Data Institute and the Kyiv school of Economics has calculated the impact of open data on the Ukrainian economy,this is the first study for the state outside the countries of the big twenty. It showed that the 2017 open data has already brought more than $700 million If the open-data movement continue to gain momentum in Ukraine, this figure could rise to $1.14 billion, or 0.92% of GDP due to the combined direct and indirect impacts.
Open data and economic growth
Open data helps consumers make better decisions by giving them access to full market information. So, tabletki.ua allows you to compare drug prices at different pharmacies. Open data provide an opportunity to create new products and services. For example, EasyWay provides information on routes of public transport in Ukrainian cities and Opendatabot – service monitoring of registration data of Ukrainian companies and court registry for the control of contractors. Using open data businesses and governments can find new ways to improve efficiency, for example, through access to public procurement Prozorro.
What the government is doing to enhance the economic impact
According to the methodology of classification of maturity of the countries in the field of open data the European Commission, Ukraine is included into the group of “Followers” as other EU countries – Poland, Germany, Italy and Lithuania. They have successfully developed a basic policy of open data, although there are still limitations in using these data. Ukraine is striving to become a leader in the region. So, it is the first country in the former Soviet Union, which joined the Open Data Charter, an international initiative that disseminates best practice in the principle of Open by Default.
The state Agency for e-government modernizing its national open data portal. It needs to become a single entry point for business, where you can find all available open data. The Cabinet of Ministers approved an updated Ordinance 835 in December 2017, which doubles the number of sets that must be published in open data format. The set list was formed with the involvement of business and the startup community. The government holds an annual national competition Open Data Challenge and invests in projects based on open data.
Challenges for the Ukrainian government
To become a leader, the government should promote the use of open data and develop economic potential. First, is the establishment of an effective feedback system with users to better understand their needs. Second, the quality plays a key role. You need to improve and standardize the data collection process, as well as to focus on internal management, which will facilitate the publication of more and better data.
To make them fit for use, more sets should be published in machine-readable formats, and regularly updated. This will help to reduce the costs of companies in the processing of data, and thus they will become a valuable material. Another challenge is the introduction of indicators to assess open data at the level of Central and local authorities in order to understand how individual organs open data and encourage business to use them. Economic impact of open data is already a reality in Ukraine, and we maximize it.
Authors: Catherine Velioglu, head of open data, the project “Transparency and accountability in public administration and services”, Alex Vyskov, first Deputy Chairman of the State Agency for e-government