The fourth High Level forum on aid effectiveness, Busan, will talk a lot about transparency. There is a lot of optimism for what transparency can offer, and it fits within a general context of more transparency. I am thinking of wikileaks, but also the UKs growing commitment to open data in all walks of government and the MPs expenses scandal in the UK. The idea is very much that obtaining information leads to better public scrutiny, which leads to better policy.
There are some clear ’wins’ that can be chalked up in transparencies favour. The Extractive Industries Transparency Initiative seems like a good case study. By getting information on how natural resource contracts work they are pushing the equilibrium in the favour of developing countries. Perhaps an under-appreciated aspect is how this works through simple information sharing between developing countries. This makes the most of technical expertise and learns sensible lessons about past behaviour.
There is also a part of me that looks at the prospect of new data with a great deal of enthusiasm. That is because I am a development economist, who typically uses data to answer interesting questions. The better the data available, the easier my job. A friend was working on interest rates as the finanical crisis of 2008 happened. While she was obviously not happy about a global recession, her professional mind was excited by the turn of events. Being excited by a global financial crisis is the economist’s lot I suppose. The development community will generally push to get more information than the equilibrium between costs and benefit suggests, because intellectual curiosity means data is interesting to us, even if not useful for others.
While the role of transparency in the UK is quite positive, I am not yet absolutely convinced about the role of transparency in development. Especially given the opportunity cost of time, money and political will. Why? Two reasons. First, there a lots of examples of donors failing to carry out promises where transparency hasn’t made a difference. To take one example, the failure of donors to honour the aid commitments they made in Gleneagles (independent ’09, oxfam ’11 and guardian ’11). There are other things we already know: the USA tie too much aid (ironically, we know this because unlike other donors they don’t report how much they tie), all donors spread their aid too thinly and there is too much volitility in the aid system. There are so many different promises and so little attention that I don’t have much hope in the ability to build and sustain public pressure on all of the important fronts.
Second, I am often less than impressed with how the data is used. The popular method right now is an index, which typically collates a load of data on a number of topics and gives a nice clean ranking of donors. I dealt with one type of ranking in a paper with Ed Anderson (pdf working paper version, and see posts on this), but the bottom line is we didn’t much like the assumptions underlying the measures. My point here is similar to the crime map in the UK: crime was shown over the UK and anomalies lead to some very odd conclusions. If the only consequence of the new data is that we get a wave of news stories with simple observations devoid of analysis, transparency hasn’t really helped. Basically I am worried that the data may produce more heat than light.
Neither of these reasons are fatal or inevitable. Maybe I am just being a grump. One of the joys of making data available is that people find interesting ways to use the data that would never have been envisaged beforehand. I hope the promise of transparency is fulfilled, but that fulfilment will not be automatic.