How data can transform government in Latin America and the Caribbean

Governments across Latin America and the Caribbean are grappling with deep governance challenges that threaten progress and stability, including the need to improve efficiency, accountability and transparency.

Amid these obstacles, however, the region possesses a powerful, often underutilized asset: the administrative data it collects as a part of its everyday operations.

When harnessed effectively using data analytics, this data has the potential to drive transformative change, unlock new opportunities for growth and help address some of the most pressing issues facing the region. It’s time to tap into this potential and use data to chart a path forward.

To help governments make the most of the opportunities that this data presents, the World Bank has embarked on a decade-long project to synthesize the latest knowledge on how to measure and improve government performance. We have found that governments already have a lot of the data they need to dramatically improve public services while conserving scarce resources.

But it’s not enough to collect data. It must also be put to good use to improve decision making, design better public policy and strengthen public sector functioning. We call these tools and practices for repurposing government data government analytics.

The potential of government analytics is enormous. World Bank research shows that Chile’s Ministry of Health has already saved hundreds of millions of dollars by capitalizing on its administrative data to reduce missed medical appointments among patients with chronic conditions. Guatemala’s Ministry of Education has reduced the dropout rate for students entering lower secondary school by 9% by identifying and supporting those who are most at risk of leaving school. And tax authorities in Ecuador and Peru have collected millions of dollars in additional tax revenue by using data to better detect evasion and allocate resources for enforcement.

Latin American and Caribbean countries are already world leaders in generating the fuel for government analytics. The digitalization of government work is well advanced across the region. Every byte of this information is not just a record of government business but also a potential diagnostic of its strengths and weaknesses.

Many governments are not yet using this data to tap into the promise of government analytics. According to a new report from the World Bank, Data for Better Governance, governments need to address data quality and accessibility issues, while also equipping themselves with staff who can analyze data and use it to support evidence-based decision making. Most fundamentally, they must effectively leverage their administrative data to embrace the increased efficiency and responsiveness of government.

Over the past 20 years, governments in Latin America and the Caribbean have invested heavily in building information systems to digitalize, automate and simplify core government functions. The data stored and tracked in these systems now covers an average of 79% of total government revenue and grants and at least 40% of the total spending of the central government – among the highest in the world.

Digital information systems gather granular, real-time data on the core functions of government. They can offer perhaps the most detailed picture ever produced about how public administration is working and where its challenges and obstacles are located. So why haven’t some governments in Latin America and the Caribbean been able to make greater use of this data – and what do they need to do to unlock its potential?

Governments in Latin America and the Caribbean often fail to make use of the data they have collected in management information systems because they don’t have the infrastructure in place to make it easily useable. Alternatively, they may not have skilled data analysts who can help public servants use analytical insights in their work.

The first task is to get the digital job done. Many information systems in the region remain only partially digitalized, especially in the health sector. Others are isolated and fragmented, making it difficult to share data across organizations. Less than 35% of these countries have an interoperability framework to support information exchange among government organizations.

The second task is to ensure what is in data systems makes sense. Only 25% of countries in the region have a framework to vet and improve data quality. This undermines confidence in inference based on this data. These infrastructural and regulatory barriers place analytics out of reach of many government organizations.

Governments in the region often fail to recruit and retain skilled data analysts. Only 12% of governments in Latin America and the Caribbean have a dedicated career track for analysts. Many also lack funding for analytical projects.

Likewise, training to support public servants in using data analytics in their work is weak across the region. This situation can be rapidly improved. Collaborations with academia, nonprofits and multilateral organizations could address budget constraints and skills shortages in this area in the short term.

By overcoming these challenges, governments in Latin America and the Caribbean can unlock the full power of their administrative data, fueling a transformative shift toward evidence-based decision making. This is not just an opportunity to improve governance, it's a chance to reshape the future of the region.