Is Turkmenistan’s economy growing at over six per cent annually, as its government claims, or closer to two per cent, as the International Monetary Fund (IMF) estimates?

Nobody really knows. The UK government’s Overseas Business Risk report for 2021 noted, “No reliable economic data are published in Turkmenistan. Most sources cite figures which the government releases to the international financial institutions. These do not always square with observation on the ground.”

Meanwhile, thousands of kilometres northwest in much richer Estonia, any citizen can log into a government portal and track, in real-time, not just economic statistics but exactly which civil servant accessed their personal data and why.

This stark contrast between these two countries both once occupied by the Soviet Union illustrates a fundamental truth of 21st century statecraft: in the information age, transparency isn’t just good governance—it’s good economics.

Information asymmetry

The economic case for government data transparency has become overwhelming. McKinsey estimates open data’s economic potential at more than three trillion US dollars in additional value in the global economy.

These are not merely theoretical numbers—they translate into tangible improvements in both public services and private enterprise.

As Reinvantage’s senior data analyst, Bohdan Kostiv, notes, “Information-related market imperfection, such as information asymmetry among economic agents, can lead to adverse situations with negative implications for the whole economy.

“Information asymmetries distort markets, misallocate resources and concentrate advantages among those who can afford private intelligence.”

The mechanisms through which transparency delivers value are straightforward. Open data gives citizens the raw materials they need to engage their governments and contribute to the improvement of public services.

When transport authorities publish real-time data, developers create apps that help commuters save time. When health departments share anonymised medical statistics, researchers identify patterns that save lives. Open data has the potential of saving 7,000 lives a year by providing resuscitation earlier.

Furthermore, applying open data in traffic can save 629 million hours of unnecessary waiting time on the roads in the EU.

The United Kingdom exemplifies how transparency can be woven into the fabric of government. Since launching Data.gov.uk in 2010 with its Open Government Licence, Britain has consistently ranked among global leaders in open data provision.

The UK’s National Action Plan for Open Government 2024-25 demonstrates continued commitment, with initiatives ranging from enhanced international aid transparency to new procurement systems that, “embed transparency throughout the contract lifecycle, so everyone can access procurement data and see how public money is spent”.

The cost of opacity

At the opposite extreme sits Turkmenistan, where opacity isn’t a bug but a feature. The US State Department’s 2023 Fiscal Transparency Report painted a damning picture: “budget documents and information on debt obligations were not made public, including for state-owned enterprises”.

The country consistently ranks near the bottom of Transparency International’s Corruption Perceptions Index, scoring just 17 out of 100 in the latest rankings—placing it 165th out of 180 countries.

This opacity carries real costs. “Strengthening governance, enhancing transparency, and improving accountability in government decision-making and reporting of macroeconomic data are essential for Turkmenistan’s sustainable development,” notes the World Bank.

Without reliable economic data, investors stay away, citizens cannot hold leaders accountable, and even well-intentioned policies fail for lack of feedback mechanisms. The IMF diplomatically notes: “Further improvements in the availability, quality, and reliability of economic statistics would help inform policy makers and increase transparency and credibility.”

Kostiv puts it more bluntly: “When governments hoard economic data, they create artificial droughts that wither markets and stunt growth.”

The contrast extends beyond these extremes. Governments worldwide are discovering that ‘open data for government transparency’ is evolving into ‘open data having economic and social benefit’.

The Open Data 500, compiled by New York University’s GovLab, catalogues hundreds of companies building businesses atop government data, from healthcare analytics firms using Medicare statistics to agricultural technology companies leveraging weather and soil data.

The transformation requires more than simply posting spreadsheets online. Government has to ask itself, ‘Are we simply making data available, or are we sharing it in useful formats that businesses can get value from?’

Successful programmes ensure data reliability, maintain consistent formats, and commit to long-term availability. Companies need to know they can trust government to deliver the data and that it will be there five years from now.

The United States demonstrates this principle through Data.gov, which has grown from 47 datasets in 2009 to nearly 300,000 today. Opening government data increases citizen participation in government, creates opportunities for economic development, and informs decision making in both the private and public sectors.

Privacy concerns

The path to transparency isn’t, however, without its challenges. Privacy concerns must be balanced against openness—anonymisation techniques and careful data governance are essential.

Some governments fear that transparency will expose inefficiencies or corruption, though evidence suggests that sunlight remains the best disinfectant. Technical challenges abound: legacy systems, incompatible formats, and simple bureaucratic inertia all impede progress.

The economic evidence, however, overwhelmingly favours openness. And beyond direct impacts lie broader benefits: improved public services, enhanced democratic participation, and the cultivation of trust between citizens and state.

“Government statistics, freely provided and regularly updated, serve as a great leveller—allowing markets to function efficiently and giving all participants, large and small, the information they need to make sound decisions,” argues Kostiv. This democratisation particularly benefits small and medium-sized enterprises, which cannot afford the private intelligence gathering that larger firms routinely employ.

As data becomes the world’s most valuable resource, governments face a choice. They can hoard information like misers, maintaining control at the cost of innovation and growth. Or they can recognise that in the information age, transparency isn’t just good governance—it’s good economics.

The evidence from Estonia to Britain suggests that countries embracing openness gain a competitive edge, whilst those clinging to secrecy risk being left behind in what the World Bank calls “the grip of their worst economic crisis”.

The lesson for policymakers is clear: transparency pays dividends. In an interconnected world where data drives innovation, governments that share information freely don’t lose power—they multiply it.

Those that don’t risk becoming as outdated as the filing cabinets their secrets moulder in.

As Kostiv concludes, “In an age when data drives everything from monetary policy to investment decisions, keeping economic statistics locked away is not just secretive—it is economically destructive.”

Photo: Dreamstime.