Experience of the Euro area for realizing the full potential of Open Data in Ukraine

How Open Data facilitates development of EU economic or experience of the Euro area for realizing the full potential of Open Data in Ukraine

In today’s world, Open Data is not only a tool for facilitating transparency and efficiency of the state’s authorities, but also a powerful source for stimulating development of the country’s economy. But unfortunately, as of today, most of Ukrainian government top managers do not really realize the potential and capability of Open Data particularly in economic dimension.  Experts of EGAP program have prepared just another informational material on impact of Open Data on the EU economy. We hope that this material will contribute to the strengthening of political will and civic engagement in Ukraine and further disclosure of data.

In 2015, in the EU there was conducted one of the most extensive study assessing the impact and potential of Open Data in terms of the development of economy of the EU countries and the Euro area as a whole. As a result, the key indicators of growth of the Open Data market were calculated. In particular, there were determined the direct market size and the indirect market size of Open Data, that together form the total market size for Open Data. For 2016, the direct market size of Open Data is expected to be 55.3 bn EUR. Between 2016 and 2020, the market size is expected to increase by 36.9%, to a value of 75.7 bn EUR in 2020. The cumulative direct market size for Open Data is estimated between 193 bn EUR and 209 bn EUR for 2016 and 265-286 bn EUR by 2020, including inflation corrections.

The influence of Open Data usage in terms of specific economic sectors is as follows. The experts believe that public administration is by far the sector that will gain the most from opening up data (with a value of 22 bn EUR in 2020). This confirms that the public sector is the first user of its own data. For agriculture, and the arts and entertainment sector, the benefits expected are smaller with 379 million EUR each. Open Data still has a lot of potential in these sectors but will take more time to reach the full potential.

Concerning the job market, the number of jobs that will be directly linked to the reusage of Open Data in the EU private sector was determined. Thus, this excludes staff working in public statistical offices and other government administrations. The forecasted total number of direct Open Data jobs in 2016 has an upper bound of 75,000 jobs. By 2020, the upper bound provides a forecast of just under 100,000 direct jobs directly related to Open Data jobs. This equals a growth of 32% over a 5-year period (that is 7,3% per year).

Public administrations seek to further understand the cost savings they can realise thanks to Open Data. The cost savings can be calculated on the basis of the forecasted GDP for the EU countries for 2020. The accumulated cost savings for the EU countries in 2020 are forecasted to equal 1.7 bn EUR. Efficiency is an important factor both for public and private sectors and across all economic branches. The enhancement of efficiency aims to improve resource allocation so that waste is minimized and the outcome value is maximized, given the same amount of resources. Three key indicators were used to assess the efficiency: the preservation of life, the preservation of time and the achieving of environmental benefits of the usage of Open Data.

Thus, the assessment revealed that Open Data has the potential of saving 1,425 lives a year (that is 5,5% of the European road fatalities). Furthermore, Open Data will save up to 629 million hours on the road.

Therefore, realizing the necessity of implementation and the feasibility of usage of Open Data, the experts made a list of recommendations for the European governments to be taken into account when developing and implementing the Open Data Policy. We feel confident that these recommendations will come useful for Ukrainian officials too:

  1. The costs and benefits of Open Data dissemination should be further detailed.

Additional proposal by the EGAP experts: we think the existing road map for the development of Open Data in Ukraine shall be further refined by including the corresponding task. It is this analysis that could be decisive for shaping political will and clear understanding of officials.

  1. Open Data should be provided free of charge or at a minimum cost.

Additional proposal by the EGAP experts: the Law of Ukraine “On Access to Public Information” established the right to free use of Open Data. Still it does not regulate the issue on access to such data that could lead to abusive practices. We offer to determine the rules and principles clearly by making appropriate amendments to the Resolution of the Cabinet of Ministers of Ukraine No. 835 “On adoption of the Regulation on the data sets to be published in the form of Open Data”.

  1. Government Portals should maintain site analytics in order to obtain information on user segment and identify the most popular sets of Open Data.

Additional proposal by the EGAP experts: the current version of portal data.gov.ua allows to conduct a thorough analysis of website usage and popularity of data sets. However, this analysis should be made public for the users to the fullest degree.

  1. The feedback mechanisms should be created on the portal.

Additional proposal by the EGAP experts: the feedback tools are available on the current version of portal data.gov.ua. However, its efficiency is low and further work needs to be done to increase it by undertaking improvements to user interface.

  1. The governments should conduct regular surveys into the level of usage and reusage of Open Data in the private sector.

Additional proposal by the EGAP experts: we think the existing road map for the development of Open Data in Ukraine shall be further refined by including the corresponding task.

  1. The work force should be empowered to make the most of Open Data in an ongoing manner.

P.S.: The article was prepared using research material provided by Capgemini Consulting for European Data Portal in 2015.