Importance and uses of data for decision-making

Importance and uses of data for decision-making

As we know, Statistics Day is celebrated every year on 29th June, since 2007. This day marks the birth anniversary of late Professor Prasanta Chandra Mahalanobis, in recognition of his valuable contribution to economic planning and statistics. The major objectives of celebrating Statistics Day are to create public awareness, especially among the younger generation, about the role and importance of statistics in socio-economic planning, policy formulation, and decision-making for the development of the country.
Every year on Statistics Day, one particular theme of current national importance is chosen for intensive and focused attention. The theme of this year’s Statistics Day, 2024, is “Use of Data for Decision-Making”. As we know, data-driven decision-making is important and an essential skill for better understanding statistical information emanating from official statistics and for facilitating evidence-based decision-making. Official statistics have had an enviable track record over the last few decades in guiding decision-making. In this age of information, the provision of reliable and high-quality data and information provided by National Statistical Offices (NSOs) and other sources of official data is of critical importance and an increasing requirement for economies and societies.
Over the past 50 years, data producers in various countries have relied heavily on data for decision-making. It is impossible to take the next stage of planning and policy formulation without any data or statistics. Earlier, data relied primarily on surveys, censuses, and administrative registers to produce official statistics, but nowadays artificial intelligence and other useful data sources based on statistical literacy play an important role in decision-making. The institutional requirement to perform and produce statistical activities for planning, policy, and decision-making through nationwide censuses and surveys as and when required is a continuous process.
The National Statistical Office (NSO) is one of the responsible government organizations for data collection and is capable of producing statistics on a national scale using prescribed methodologies and procedures. In our country, under the Ministry of Statistics and Programme Implementation, Government of India, the National Statistical Office (NSO), also known as the National Sample Survey Office (NSSO), is an authentic organization that is renowned internationally for producing official statistics. As the integration of administrative data gains popularity, ensuring that data users have access to high-quality statistical information is crucial. Producers of official statistics are not the sole suppliers of reliable data; there is a growing confusion between official statistics and less reliable data during decision-making. This may give more weight to opinions and impressions over data or statistics. Statistics need to stand out as a trustworthy source of information. The importance of relying on statistical surveys is increasing day by day. Data is not easily available to organizations or the public through open data providers, and the information is enshrined in enforced laws under which NSOs operate within the country.
The needs of official statistics users are becoming more complex and individualized, requiring more detailed information, for instance, on small population groups and geographic localities, with quality data. Quality of statistics is one of the key features that influence the value that users experience. Quality could be seen as “fit for use,” which includes many dimensions, such as relevance, accuracy, timeliness, accessibility, comparability, and coherence. Quality is by no means a monopoly of official statistics.
Data availability, combined with the availability of open-source software and free cloud computing services, means that anyone with an interest can analyze data efficiently. With advances in information technology, the sharing of digital data has become easier for NSOs. Gone are the days of having to capture paper forms to obtain data in a digital format that can be shared among organizations. With the majority of administrative data now being collected electronically and with secure transfer protocols, sharing data among NSOs and data custodians is becoming easier. Also, with advancements in record linkage methods, the ingestion of administrative data into the statistical system is easier than ever before.
In 2014, the United Nations General Assembly adopted ten fundamental principles for producing data or official statistics, keeping in mind the use of Artificial Intelligence technology to improve data quality. To produce quality statistics and enhance statistical practices, adhering to the Fundamental Principles on Official Statistics is essential:
Relevance, impartiality, and equal access: Official statistics provide an indispensable element in the information system of a democratic society, serving the government, the economy, and the public with data about economic, demographic, social, and environmental situations.
Professional standards and ethics: Statistical agencies need to decide on methods and procedures for data collection, processing, storage, and presentation based on scientific principles and professional ethics.
Accountability and transparency: Statistical agencies are to present information on sources, methods, and procedures according to scientific standards to facilitate correct data interpretation.
Prevention of misuse: Statistical agencies are entitled to comment on erroneous interpretation and misuse of statistics.
Sources of official statistics: Data may be drawn from all types of sources for statistical purposes, chosen based on quality, timeliness, costs, and burden on respondents.
Confidentiality: Individual data collected by statistical agencies for compilation are strictly confidential and used exclusively for statistical purposes.
Legislation: Laws, regulations, and measures under which statistical systems operate are to be made public.
National coordination: Coordination among statistical agencies within countries is essential for consistency and efficiency in the statistical system.
Use of international standards: Using international concepts, classifications, and methods promotes consistency and efficiency in statistical systems at all levels.
International cooperation: Bilateral and multilateral cooperation in statistics improves official statistics systems globally.
The demand for data or official statistics is rapidly growing to inform economies and societies about their status and development. An increasingly globalized and interconnected world creates new needs for accurate and authentic information about economies and societies. For instance, reporting on progress towards the 2030 agenda on Sustainable Development Goals requires many indicators produced in partnerships, respecting the Fundamental Principles of Official Statistics and human rights.
To ensure the use of real data or statistics, there is an urgent need to focus on the best producers of statistics, communicators of statistics, and statistical audiences. Statisticians, scientists, institutional and non-institutional survey organizations, survey industries, and companies are key producers of statistics that can enhance planning and decision-making. Scientific journals, charities, government departments, press officers, journalists, and editors can communicate statistics effectively. Audiences such as the public, policymakers, and professionals can improve by critically assessing available statistics. It is the duty of every citizen to identify and call out poor statistical practices. Thus, awareness of statistical literacy plays an important role in identifying poor statistical practices among producers and communicators. In this age of information, promoting statistical literacy among the entire population is crucial for understanding the value and use of data or statistics, fostering ethical use of data and official statistics.
The National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation collects data through censuses and surveys, providing authentic official statistics for decision-making. The important uses of official statistics for quick decision-making based on data include calculating minimum wage, dearness allowance for government employees, fuel surcharges, policies and strategies to reduce poverty and unemployment, analyzing population and labor force participation, property prices and rental markets, regional development, city planning, trade union negotiations, transport infrastructure, educational infrastructure, subsidies, quotas, government representation, electoral boundaries, health services, immigration, trade, quality of life comparisons, interest rates, budget and finance, and local, national, and international strategic planning and development, including crisis management and investment.
Altaf Hussain Haji (ISS) is Deputy Director General (DDG) at the National Statistical Office, Field Operations Division, Regional Office, Raipur, Chhattisgarh. Email: [email protected]

Leave a Reply

Your email address will not be published.