Measuring results from open contracting in Ukraine

Curated on Posted on by Stefaan Verhulst

Kathrin Frauscher, Karolis Granickas and Leigh Manasco at the Open Contracting Partnership: “…Ukraine is one of our Showcase and Learning (S&L) projects, and we’ve already shared several stories about the success of Prozorro. Each S&L project tests specific theories of change and use cases. Through the Prozorro platform, Ukraine is revolutionizing procurement by digitizing the process and unlocking data to make it available to citizens, CSOs, government, and business. The theory of change for this S&L project hypothesizes that transparency and the implementation of the Open Contracting Data Standard (OCDS), combined with multi-stakeholder collaboration in the design, promotion and monitoring of the procurement system, is having an impact on value for money, fairness and integrity.

The reform introduced other innovations, including electronic reverse auctions and a centralized procurement database that integrates with private commercial platforms. We co-created a monitoring, evaluation, and learning (MEL) plan with our project partners to quantify and measure specific progress and impact indicators, while understanding that it is hard to attribute impacts to distinct aspects of the reform. The indicators featured in this blog are particularly related to our theory of change.

We are at a crucial moment in this S&L project as our first round of comprehensive MEL baseline and progress data are coming in. It’s a good time to reflect on key takeaways and challenges that arose when defining and analyzing these data, and how we are using them to inform the Prozorro reform.

Openness can result in more competition and competition saves money.

One of the benefits of open contracting appears to be improving market opportunity and efficiency. Market opportunity focuses on companies being able to compete for business on a level playing field.

From January 2015 to March 2017, the average number of bids per tender lot rose by 15%, demonstrating an increase in competition. Even more notable, the average number of unique suppliers during that same time grew by 45% for each procuring entity, meaning that agencies are now procuring from more and more diverse suppliers….

High levels of responsiveness can benefit procuring entities.

Those agencies that leverage their opportunities to interact with business and citizens throughout the contracting cycle, by actively responding to questions and complaints via the online platform, tend to conduct procurement more smoothly, without high levels of amendments or cancellations, than those who don’t. Tenders with a 100% response rate to feedback have a 66% success rate, while those with no response, show a 52% success rate. The portal provides procuring entities with the resources needed to address questions and problems, saving time, effort and money throughout the contracting process.

People are beginning to trust the public procurement process and data more.

According to a survey of 300 entrepreneurs conducted by USAID, most respondents believed that Prozorro significantly (27%) or partially (53%) reduces corruption. Additionally, fewer respondents who participated in procurement said they faced corruption when using the new platform (29%) compared to the old system (54%). These numbers only tell a part of the story, as we do not know what those outside of the procurement system think, but they are a necessary first step towards measuring increased levels of trust for the public procurement process. We will continue looking at trust as one of the proxies for health of an open procurement process.

Citizens are actively seeking out procurement information.

Google search hits grew from 680 in the month of January 2015 to more than 191,000 in the month of February 2017 (tracking 43 related keywords). This means the environment is shifting to one where people are recognizing that this data has value; that there is interest and demand for it. Implementing open contracting processes is just one part of what we want to see happen. We also strive to nurture an environment where open contracting data is seen as something that is worthwhile and necessary.

The newly established www.dozorro.org monitoring platform also shows promising results…..

The main one is feedback loops. We see that procuring entities’ responsiveness to general questions results in better quality procurement. We also see that only one out of three claims (request to a procuring entity to amend, cancel or modify a tender in question) is successfully resolved. In addition, there are some good individual examples, such as the ones in Dnypro and Kiev. While we do not know if these numbers and instances are sufficient for an effective institutional response mechanism, we do know that business and citizens have to trust redress mechanisms before using them. We will continue trying to identify the ideal level of institutional response to secure trust and develop better metrics to capture that….(More)”.

Societal impacts of big data: challenges and opportunities in Europe

Curated on Posted on by Stefaan Verhulst

Martí Cuquet, Guillermo Vega-Gorgojo, Hans Lammerant, Rachel Finn, Umair ul Hassan at ArXiv: “This paper presents the risks and opportunities of big data and the potential social benefits it can bring. The research is based on an analysis of the societal impacts observed in a set of six case studies across different European sectors. These impacts are divided into economic, social and ethical, legal and political impacts, and affect areas such as improved efficiency, innovation and decision making, changing business models, dependency on public funding, participation, equality, discrimination and trust, data protection and intellectual property rights, private and public tensions and losing control to actors abroad. A special focus is given to the risks and opportunities coming from the legal framework and how to counter the negative impacts of big data. Recommendations are presented for four specific legal frameworks: copyright and database protection, protection of trade secrets, privacy and data protection and anti-discrimination. In addition, the potential social benefits of big data are exemplified in six domains: improved decision making and event detection; data-driven innovations and new business models; direct social, environmental and other citizen benefits; citizen participation, transparency and public trust; privacy-aware data practices; and big data for identifying discrimination. Several best practices are suggested to capture these benefits…(More)”.

Why are America’s Tax Forms Still so Horribly Designed?

Curated on Posted on by Stefaan Verhulst

Meg Miller at Co.Design: “If there’s one issue that this divided nation can agree upon, it’s a common hatred of the federal government’s dizzying, overly complicated tax forms. Show me one person who enjoys digging up last year’s return and embarking on a byzantine quest through tax credits, deductions, exemptions, and withholdings, all for a measly return, and I’ll show you a masochist. Surely, simplifying the forms and the process—shifting the burden from individual taxpayers to the tax specialists at the Internal Revenue Service—is a bipartisan issue that we can all get behind.

Alas, it is not.

Since the government already has all of the information that we put on our tax forms, it would be completely feasible for the IRS to hand us prefilled tax forms that we could review and modify if needed—eliminating most of the headache of filing. Countries like Sweden, Finland, and Spain do it already. Yet in the U.S., some moneyed third-party tax preparers oppose government tax preparation—because, according to Propublica, it poses a risk to their business. The nonprofit news organization, which has covered this topic for years, reports that big private tax companies like H&R Block and Intuit, which owns TurboTax, have been lobbying against simplifying the filing process for nearly a decade. (For its part, Intuit denies that these assertions are factually accurate.)

Regardless, all of this means that taxpayers in the U.S. are faced with a choice: file online through a tax preparer service like TurboTax or H&R Block At Home, hire an accountant, or try to navigate this mess on your own.

In fact, each year, consulting giant PricewaterhouseCoopers ranks 189 countries by the complexity of their taxes—and this year, the U.S. came in 35th….

Another indicator of a tax process that doesn’t disproportionately put the onus on the filer is the design of the tax form itself….

For example, Finland’s tax forms are divided neatly into columns and each section is boxed off for clarity. The portions the filer needs to fill are highlighted in a faint baby blue. It’s seven pages of clear language and guiding visual signifiers.

Oh and also—it’s filled out for you, so that all you need to do is review and approve or modify. That’s true user-friendly design.

The true indicator of a simple tax form, then, isn’t the graphic design of the form—this is very clearly a UX problem. The forms I found online varied from clearly legible to impossible to understand, regardless of the country. In that way, tax policy is what would benefit most from a redesign, especially given that the users, in this case, are tax-paying citizens….(More)”

Decentralized Self-Organizing Systems

Curated on Posted on by Stefaan Verhulst

Fred Wilson at AVC: “Mankind has been inventing new ways to organize and govern since we showed up on planet earth. Our history is a gradual evolution of these organization and governance systems. Much of what we are using right now was invented in ancient Greece and perfected in western Europe in the 17th, 18th, and 19th centuries.

I have been thinking for some time that we are on the cusp of something new. I don’t know exactly what it will be but I think it will be inspired by the big technological innovations of the late 20th century and early 21st century and it will be based on decentralized and self-organizing systems.

The Internet is, at its core, a scaled decentralized system. Its design has been a resounding success. It has scaled elegantly and gradually to well over 2bn users over fifty years. No central entity controls the Internet and it upgrades itself and scales itself slowly over time.

Open source software development communities are also an important development of the past fifty years. These communities come together to create and maintain new software systems and are not financed or governed by traditional corporate models. The goals of these communities are largely based on delivering new capabilities to the market and they don’t have capitalist based incentive systems and they have shown that in many instances they work better than traditional corporate models, Linux being the best example.

And, for the past decade or so, we have seen that modern cryptography and some important computer science innovations have led to decentralized blockchain systems, most notably Bitcoin and Ethereum. But there are many more to study and learn from. These blockchain systems are pushing forward our understanding of economic models, governance models, and security models.

I think it is high time that political scientists, philosophers, economists, and historians turn their attention to these new self-organizing and self-governing systems….(More)”.

Welcome to E-Estonia, the tiny nation that’s leading Europe in digital innovation

Curated on Posted on by Stefaan Verhulst

 in The Conversation: “Big Brother does “just want to help” – in Estonia, at least. In this small nation of 1.3 million people, citizens have overcome fears of an Orwellian dystopia with ubiquitous surveillance to become a highly digital society.

The government took nearly all its services online in 2003 with the e-Estonia State Portal. The country’s innovative digital governance was not the result of a carefully crafted master plan, it was a pragmatic and cost-efficient response to budget limitations.

It helped that citizens trusted their politicians after Estonia regained independence in 1991. And, in turn, politicians trusted the country’s engineers, who had no commitment to legacy hardware or software systems, to build something new.

This proved to be a winning formula that can now benefit all the European countries.

The once-only principle

With its digital governance, Estonia introduced the “once-only” principle, mandating that the state is not allowed to ask citizens for the same information twice.

In other words, if you give your address or a family member’s name to the census bureau, the health insurance provider will not later ask you for it again. No department of any government agency can make citizens repeat information already stored in their database or that of some other agency….The once-only principle has been such a big success that, based on Estonia’s common-sense innovation, the EU enacted a digital Once Only Principle and Initiative early this year. It ensures that “citizens and businesses supply certain standard information only once, because public administration offices take action to internally share this data, so that no additional burden falls on citizens and businesses.”…

‘Twice-mandatory’ principle

Governments should always be brainstorming, asking themselves, for example, if one government agency needs this information, who else might benefit from it? And beyond need, what insights could we glean from this data?

Financier Vernon Hill introduced an interesting “One to Say YES, Two to Say NO” rule when founding Metro Bank UK: “It takes only one person to make a yes decision, but it requires two people to say no. If you’re going to turn away business, you need a second check for that.”

Imagine how simple and powerful a policy it would be if governments learnt this lesson. What if every bit of information collected from citizens or businesses had to be used for two purposes (at least!) or by two agencies in order to merit requesting it?

The Estonian Tax and Customs Board is, perhaps unexpectedly given the reputation of tax offices, an example of the potential for such a paradigm shift. In 2014, it launched a new strategy to address tax fraud, requiring every business transaction of over €1,000 to be declared monthly by the entities involved.

To minimise the administrative burden of this, the government introduced an application-programming interface that allows information to be automatically exchanged between the company’s accounting software and the state’s tax system.

Though there was some negative push back in the media at the beginning by companies and former president Toomas Hendrik Ilves even vetoed the initial version of the act, the system was a spectacular success. Estonia surpassed its original estimate of €30 million in reduced tax fraud by more than twice.

Latvia, Spain, Belgium, Romania, Hungary and several others have taken a similar path for controlling and detecting tax fraud. But analysing this data beyond fraud is where the real potential is hidden….(More).”

Open Data Maturity in Europe 2016

Curated on Posted on by Stefaan Verhulst

European Data Portal Report: “…the second in a series of annual studies and explores the level of Open Data Maturity in the EU28 and Norway, Switzerland and Liechtenstein – referred to as EU28+. The measurement is built on two key indicators Open Data Readiness and Portal Maturity, thereby covering the level of development of national activities promoting Open Data as well as the level of development of national portals. In 2016, with a 28.6% increase compared to 2015, the EU28+ countries completed over 55% of their Open Data journey showing that, by 2016, a majority of the EU28+ countries have successfully developed a basic approach to address Open Data. The Portal Maturity level increased by 22.6 percentage points from 41.7% to 64.3% thanks to the development of more advanced features on country data portals. The overall Open Data Maturity groups countries into different clusters: Beginners, Followers, Fast Trackers and Trend Setters. Barriers do remain to move Open Data forward. The report concludes on a series of recommendations, providing countries with guidance to further improve Open Data maturity. Countries need to raise more (political) awareness around Open Data, increase automated processes on their portals to increase usability and re-usability of data, and organise more events and trainings to support both local and national initiatives….(More)”.

Technology and the Voluntary Sector: Don’t (always) Believe the Hype

Curated on Posted on by Stefaan Verhulst

Gareth Lloyd at the NCVO: “One of the most important questions for voluntary sector organisations of all sizes is how their work can be supported by technology. We have talked before about how the sector needs to identify technology that is replicable and has low barriers to uptake, but we have also recently carried out a research project with Tata Consultacy Services on this issue, which involved an evidence review, mapping exercise and workshop with voluntary sector experts.

Here’s a brief overview of what we learned, including the different challenges for large and small organisations; as well as those that apply to everyone.

Grand ambitions

First, our work looked at the attraction – and possible dangers of – investing in new and largely unproven technologies. We have seen the voluntary sector undergo fleeting love affairs with new and exciting types of technology, such as big data, crowdfunding and bitcoin; and we go through periods of hearing about technologies that have the potential to change the way that the sector works…..

Defining problems and choosing solutions

For all the challenges mentioned so far, the underlying issue is the same: a mismatch between the problem to be solved and the solution implemented. The answer is to focus on the problem that you’re trying to solve, whether approaching it as a technology issue or not, and then look at the ways that technology can help you. For example, Jointly – the app developed by Carers UK to enable conversation between groups of carers – stands out as a problem that could have been addressed without use of technology, but was eventually enhanced by it.

But organisations also have to ensure that the technology used to solve those problems is cost effective, time effective, and appropriate for them in terms of where they are starting from. If the solution you choose is tying you up in knots, maybe it isn’t a solution at all.

Our research came up with some high level principles that organisations can use to avoid these problems, and try to ensure that adopting technology transforms the day-to-day activities of organisations while minimising disruption…

Think iterations, rather than discrete projects

Participants at our workshop talked about how the discrete project model doesn’t quite work when trying to embed technology at an organisation. That is, rather than these projects having straightforward planning and implementation phases, they need to be introduced iteratively, as an ongoing process of deployment, evaluation and redesign. Introducing technology in this way minimises risk, helps to ensure that the solution fits the problem, and ensures that it is tailored to the needs of the people who will use it on a day to day basis.

If you are interested in this research you can read the executive summary here, the full slide deck here, or find details of the Spark Salon event where it was launched here….(More)”

The Routledge Handbook of Global Public Policy and Administration

Curated on Posted on by Stefaan Verhulst

Book edited by Thomas R. Klassen, Denita Cepiku, T. J. Lah: “…a comprehensive leading-edge guide for students, scholars and practitioners of public policy and administration. Public policy and administration are key aspects of modern societies that affect the daily lives of all citizens. This handbook examines current trends and reforms in public policy and administration, such as financial regulation, risk management, public health, e-government and many others at the local, national and international levels. The two themes of the book are that public policy and administration have acquired an important global aspect, and that a critical role for government is the regulation of capital.

The handbook is organized into three thematic sections – Contemporary Challenges, Policy and Administration Responses and Forging a Resilient Public Administration – to allow readers to quickly access knowledge and improve their understanding of topics. The opening chapter, introductions to sections and extensive glossary aid readers to most effectively learn from the book. Each chapter provides a balanced overview of current knowledge, identifying issues and discussing relevant debates. The book is written by authors from Europe, Asia, North and South America, Africa and Australia….(More)’

Standard Business Reporting: Open Data to Cut Compliance Costs

Curated on Posted on by Stefaan Verhulst

Report by the Data Foundation: “Imagine if U.S. companies’ compliance costs could be reduced, by billions of dollars. Imagine if this could happen without sacrificing any transparency to investors and governments. Open data can make that possible.

This first-ever research report, co-published by the Data Foundation and PwC, explains how Standard Business Reporting (SBR), in which multiple regulatory agencies adopt a common open data structure for the information they collect, reduces costs for both companies and agencies.

SBR programs are in place in the Netherlands, Australia, and elsewhere – but the concept is unknown in the United States. Our report is intended to introduce SBR to U.S. policymakers and lay the groundwork for future change….(More)”.

Towards an experimental culture in government: reflections on and from practice

Curated on Posted on by Stefaan Verhulst

 Jesper Christiansen et al at Nesta: “…we share some initial reflections from this work with the hope of prompting a useful discussion about how to articulate the value of experimentation as well as what to consider when strategically planning and doing experiments in government contexts.

Reflection 1: Experimentation as a way of accelerating learning and exploring “the room of the non-obvious”

Governments need to increase their pace and agility in learning about which ideas have the highest potential value-creation and make people’s lives the rationale of governing.

Experimental approaches accelerate learning by systematically testing assumptions and identifying knowledge gaps. What is there to be known about the problem and the function, fit and probability of a suggested solution? Experimentation helps fill these gaps without allocating too much time or resource, and helps governments accelerate the exploration of new potential solution spaces.

This approach is often a key contribution of government policy labs and public sector innovation teams. Units like Lab para la Ciudad in Mexico City, Alberta Co-Lab in Canada, Behavioural insights and Design Unit in Singapore, MindLab in Denmark and Policy Lab in the UK are specifically set up to promote, develop and/or embed experimental approaches and accelerate user-centred learning in different levels of government.

In addition, creating a culture of experimentation extends the policy options available by creating a political environment to test non-linear approaches to wicked problems. In our training, we often distinguish between “the room of the obvious” and the “room of the non-obvious”. By designing portfolios of experiments that include – by deliberate design – the testing of at least some non-linear, non-obvious solutions, government officials can move beyond the automatic mode of many policy interventions and explore the “room of the non-obvious” in a safe-to-fail context (think barbers to prevent suicides or dental insurance to prevent deforestation).

Reflection 2: Experimentation as a way of turning uncertainty into risk

In everyday language, uncertainty and risk are two notions that are often used interchangeably; yet they are very different concepts. Take, for example, the implementation of a solution. Risk is articulated in terms of the probability that the solution will generate a certain outcome. It is measurable (e.g. based on existing data there is X per cent chance of success, or X per cent chance of failure) and qualitative risk factors can be developed and described.

Uncertainty, on the other hand, is a situation where there is a lack of probabilities. There is no prior data on how the solution might perform; future outcomes are not known, and can therefore not be measured. The chance of success can be 0 per cent, 100 per cent, or anything in between (see table below).

There is often talk of the need for government to become more of a ‘risk taker’, or to become better at ‘managing risk’. But as Marco Steinberg, founder of strategic design practice Snowcone & Haystack, recently reminded us, risk-management – where probabilities are known – is actually something that governments do quite well. Issues arise when governments’ legacies can’t shape current solutions: when governments have to deal with the uncertainty of complex challenges by adapting or creating entirely new service systems to fit the needs of our time.

For example, when transforming a health system to fit the needs of our time, little can be known about the probabilities in terms of what might work when establishing a new practice. Or when transforming a social care system to accommodate the lives of vulnerable families, entirely new concepts for solutions need to be explored. “If you don’t have a map showing the way, you have to write one yourself,” as Sam Rye puts it in his inspirational example on the use of experimental cards at The Labs Wananga….

Reflection 3: Experimentation as a way to reframe failure and KPIs

Reflection 4: Experimentation on a continuum between exploration and validation

Reflection 5: Experimentation as cultural change…(More)”.