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January 25, 2015

Responding To: Week 1: Priorities for the Development Agenda

Opportunities and Challenges of Using ‘Big Data’ for Development

Claire Cullen

One of many development challenges in the next decade will be for decision-makers to utilize the growing volume of available information to design the most effective and efficient development policies. ‘Big data’ will help decision-makers face this challenge. Some of the greatest opportunities for innovation in development in the next 20 years will come from big data. A key challenge in the next decade will be to ensure that developing countries are equipped to capitalize on these opportunities. But big data is not a panacea that will solve all development challenges; it is one promising tool in the decision-maker’s toolkit. While we lay the groundwork for big data in developing countries, we must continue to collect ‘traditional’ data to answer questions about the complex dynamics of development and find out what works, where, and why.

The term ‘big data’ refers to the increased volume, speed and diversity of data produced in the world. The number of devices that transmit and record data has significantly increased over time, from weather stations to CCTVs, and satellites to smartphones. And this data is big. Over 90% of the world’s data has been generated in the past two years [1],and the volume of global business data doubles every 1.2 years [2]. Businesses and governments are increasingly able to analyze this information in real-time, and as a result we can expect improvements in decision-making and performance.

The promise of big data in international development can be inferred from its current use in developed countries. For example, drivers and urban planners are using Google maps to identify traffic congestion; health officials are analyzing search engine queries to predict influenza outbreaks; and farmers are buying insurance based on more accurate drought predictions. But many developing countries aren’t there yet.

Three-quarters of the world’s data are generated in North America and Europe [3]. Internet access is vital for the creation, transmission and analysis of big data. Although mobile phone penetration is rapidly rising in developing countries (65% of Sub-Saharan African households now own mobile phones) [4], internet-capable smartphones are typically limited to the most wealthy, young, educated, urban citizens [5]. Only after internet and smartphone costs fall and coverage expands will sufficient and representative big data exist to help answer questions about the poor in developing countries.

Demand for big data will eventually bring the requisite technology to developing countries. Meanwhile, the development community needs to promote open data and appropriate regulatory frameworks, protect privacy, and invest in ICT infrastructure. In the coming decade, we must remember that big data alone won’t unlock all the answers to development. We need to continue asking questions about the dynamics of development, evaluating strategies to promote it, and gathering whatever information will best illuminate the answers, with or without big data. 

Claire Cullen is completing her Masters in International Development Policy at Georgetown University. Cullen previously worked for the Australian Agency for International Development, where she focused on Australia’s aid program to the Pacific Islands on issues including economic reform, public financial management, governance, sovereign wealth funds, gender equality, and migration policy.


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