Transparency as stimulus

This is a great idea that the Rudd government should adopt.

"…The ‘American Recovery and Reinvestment Act,’ better known as our national Hail Mary stimulus bill, … also contains a measure promoting a less-noted type of economic infrastructure: government data. In the name of transparency, all the Fed’s stimulus-spending data will be posted at a new government site, Recovery.gov"Extract from Wired Magazine

Lack of transparency (in financial markets) has turned a cyclical down-turn into a deep, world-wide, recession. Nothing better demonstrates the crucial role of transparency in markets. But transparency in government can stimulate growth, too.

Government agencies and institutions can create opportunity by providing direct access to data, not just to their own representation of data, which is inevitably selective and prone to spin. Access to data means that entrepreneurs can access and develop on top of the data, creating new industries, technologies and economic 'spillover' benefits.

Possibly the most striking example of a new industry created by data followed the decision by President Clinton to reverse the intentional degrading of the GPS satellite signal, releasing accurate global positioning data that the government already collected, directly to the public. It was the birth of a multi-billion dollar industry (GPS decoders) in the USA alone and led to the creation of multi-billions more in net consumer benefits.

Title XV of H.R.1. is entitled: "Accountability and Transparency". It establishes the:

"Recovery Accountability and Transparency Board to coordinate and conduct oversight of covered funds to prevent fraud, waste, and abuse."

The Title goes on to specify the purpose of the Board is to make clear, detailed reports on expenditure using a public website:

"(a) Establishment.--The Board shall establish and maintain, 
no later than 30 days after enactment of this Act, a user-
friendly, public-facing website to foster greater 
accountability and transparency in the use of covered funds.
  (b) Purpose.--The website established and maintained under 
subsection (a) shall be a portal or gateway to key 
information relating to this Act and provide connections to 
other Government websites with related information.
  (c) Content and Function.--In establishing the website 
established and maintained under subsection (a), the Board 
shall ensure the following:
  (1) The website shall provide materials explaining what 
this Act means for citizens. The materials shall be easy to 
understand and regularly updated.
  (2) The website shall provide accountability information, 
including findings from audits, inspectors general, and the 
Government Accountability Office.
  (3) The website shall provide data on relevant economic, 
financial, grant, and contract information in user-friendly 
visual presentations to enhance public awareness of the use 
of covered funds…"

Try it out now. Recovery.gov is not yet displaying data but it looks like an encouraging start.

Tags for this entry: policy data transparency stimulus