# **Data Transparency in the Middle East and North Africa**

## **Introduction**

Modern and well-coordinated traditional data collection systems are a feature of advanced economies. Granting access to the research community has been characteristic of these data systems. However, many developing economies have lagged in their statistical capacity to generate data. Furthermore, when data is available, many economies have shied away from sharing it with the wider research community. This is particularly the case for many economies in the Middle East and North Africa (MENA) region. While the fears of data privacy are not unfounded, little attention has been afforded to the costs of inadequate data systems that persist in silos and are unavailable to the best minds to advance the boundaries of knowledge.

The objective of this study is to ascertain the state of data systems in the MENA region, while making the case that the long run benefits of good quality data are considerable. Through analysis of several indicators, the study uncovers six stylized facts of the region: (i) developing MENA economies have poor data ecosystems, largely due to the prevalence of conflict; (ii) MENA developing economies as a group have experienced the largest deterioration in data systems over time; (iii) data systems in richer economies in the MENA region underperform relative to their income peers; (iv) Gulf Cooperation Council (GCC) economies underperform in data openness, especially online access, despite having the resources for online features; (v) the regulatory framework for data (data infrastructure) is poor throughout the region, especially in GCC economies; and (vi) dispersion of source data scores – a measure of the availability and timeliness of micro data – in the region suggests that National Statistical Offices (NSOs) in the region could learn from each other.

Data transparency about critical economic issues will be the key to driving growth and enhancing trust in government in the MENA region (Arezki et al., 2020 – April 2020 MEU). The need for greater transparency has been more vivid during the pandemic when the prevalence of real time information has been crucial. Furthermore, the onset of the war in Ukraine gas generated shockwaves throughout the region, and lack of data makes it hard to establish the effects on the poor and vulnerable. Equally important for economic and social outcomes is the sharing of data for private sector stakeholders and citizens alike. The free and uncensored exchange of information can improve governance, citizen trust and accountability within the MENA region, while encouraging investments. Several knowledge products and technical analyses on the MENA region have been greatly constrained by the lack of availability of detailed data about the region, and the relatively outdated nature of many available datasets. MENA’s transformation agenda must include data transparency as one of its main pillars.

A core component of the Sustainable Development Goals is that countries must generate their own indicators with their own capabilities. The costs of such efforts are not trivial, and the trade-offs between investing in data capacity and systems versus other pressing needs are difficult for developing country governments to ascertain. Without significant investments and a change in the mindset or a paradigm shift towards data transparency, the MENA region risks being left behind with accelerating data gaps with the increasing digitization of data. The 2021 World Development Report on Data for Better Lives makes the case that a new social contract for data is needed in the region, and globally. The study summarizes what the conditions would be for such a contract, and how the MENA Statistics Compact can advance the data agenda.

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