Nimrat Kaur
Plaksha University
Data is something we have all heard of but need to learn more about. At times, it is even something that scares us. We are sceptical of data and the possibility that it might lead to a surveillance society. While this possibility may hold water, the probability of a surveillance societyto come up looks more multifaceted.
Remember when there was scepticism around technology? Truth be told, there still is. There is a fear of being overly dependent on technology. Yet, it is seemingly impossible to live isolated from technology, especially in a country where even a sugarcane juice vendor keeps a QR code to accept UPI payments. Perhaps it can be said that technology is changing society, but for the better, by allowing accessibility for all.
Diversity must be treasured in a geographically and culturally rich country like ours. Through technology, we can visibly recognize and safeguard it. Technology allows excellent connectivity within society and is inclusive of diverse sections by enablingequity.
Technology has entered nearly all domains and subject areas providing much-needed real-time data for accurate analysis. This shift is handy to better understand modern day phenomena wherein several variables worldwide affectany circumstance, for example, the pandemic and its effects on the global economy. Such recent developments bring to light how accurate data analysis could make economic policy more effective.
Initially, all economics talked about were theories with little significance to data. Even as the utilisation of data increased in economics, data was delayed. So, by the time data was received and analysed, it became irrelevant and unrepresentative of reality. However, economics today utilises huge chunks of real-time data in its applications.
At a micro level, say you are looking for a particular type of furniture online. You will start seeing related advertisements all over your online space because websites collect real-time data and use it to understand which of their content a user will be interested in. Now imagine this at a macro level. Such data, if accurately analysed and applied, can predict economic trends, and help make more effective policies.
I refer to a cover story on 'Instant Economics: The real-time revolution,' published in The Economist magazine's weekly edition dated October 23, 2021. The Economist showcased how many governments and companies have failed to properly judge the impact of COVID on production and demand and why real-time data analysis can change the field of economics and make it more relevant in the future working of the society. An example from this cover story mentioned that in January 2020, while a lockdown had been imposed in Hubei province, China accurately assessed that its economy was hitting a slump by analysing the cinema visits and daily beer consumption. This gave other countries a heads-up. This accurate assessment was facilitated by the high frequency of real-time data collected and used by the Chinese government.
The world needs a faster analysis of data to predict and solve any future challenges. Delayed data, even for weeks, can cost millions of jobs. Had an accurate assessment been made of the pandemic and the implications of the strict lockdown, the rise in price level and vast unemployment could have been predicted and perhaps even prevented. Further, the pandemic accelerated the rate of digitization exponentially.
Things are changing faster than ever. To prepare for and understand this drastically different environment, there is a need to use technology, data analysis, and economics together to face future challenges and solve them.
While scepticism around technology and data collection continues to linger, we must not forget that it is in our hands to control the extent of our dependence on these very tools which ease our lives. Regulations around data privacy are enforced everywhere to some degree, violations of which are often recognized as legal offences. There are several ways to manage the access various parties with technological interests may have to your data. For starters, you can always deny permissions to applications on your device settings or manage cookie privacy settings when browsing a website on the internet. These may help avoid and dodge the few entities that might use your data with malicious intent.
Often, the data you provide can benefit you eventually. It can be utilized in studies and research across various disciplines, which, if successful, can lead to the betterment of society. For example, in India, the government’s Aarogya Setu app helped to keep a track of COVID cases and alerted the users of any infected person in their locality. The app further helped in keeping a record of vaccinations and alerted the user if they were eligible or due for their COVID vaccination.
The COVID-19 pandemic has been a particularly challenging period for all. Those at the margins of the economic society witnessed the worst of it. Daily wage laborers, due to lockdowns, faced a multitude of problems ranging from food shortage, transport unavailability, and a lack of adequate facilities to deal with the pandemic in general. With everything at standstill, including their wages, this group of people was left to fend for themselves without any economic support or a way to return to their native homes in the absence of any shelter in the cities. Further, there was mismanagement of resources during the COVID medical response itself. There was a gross miscalculation and mishandling of data which led to the lack of oxygen and hospital beds.
Incomplete analysis of the ground level situation was followed by poorly implemented policies which were ignorant of the people from lower income brackets. The lockdowns were not considerate of the desperate circumstances of marginalized communities. What was needed was not just a total shutdown but also a systematic support system to ensure that people were able to stay safe in their homes or be able to return home with guaranteed sustenance.
The economy took a massive hit, and people had to use up their entire life savings to keep businesses barely afloat, or, in worse cases, just to meet basic sustenance needs. Funds were misdirected, and businesses that needed relief could not receive subsidies due to limited data.
The technology can be used in making more targeted financial support to vulnerable sections by providing accurate real-time data on ground-level situations and studying various socio-economic groups better. Once the vulnerable groups are identified, and data on resource accessibility is made available, distribution can take place by specifically targeting those in need. Further, the data can be used to study trends and project future requirements. This can allow governments to procure resources and plan for them ahead of time.
The better application of economic theory based on a strong technological foundation can make governance more responsive and makes businesses and organizations more resilient. Hence, reliable data and analysis can drive the betterment of the nation and, more importantly, its people.
The writer is a first year B.Tech student at Plaksha University
