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eGovernment, Public Sector reform, and Poverty Reduction.

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eGovernment, Public Sector reform, and Poverty Reduction. April 18, 2006 PREM Week Linkages and debate around ICT and PSR Skepticism and perception ICT is a luxury ... – PowerPoint PPT presentation

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Title: eGovernment, Public Sector reform, and Poverty Reduction.


1
eGovernment, Public Sector reform, and Poverty
Reduction.
  • April 18, 2006
  • PREM Week

2
Linkages and debate around ICT and PSR
  • Skepticism and perception ICT is a luxury good
    within WBG
  • Unlike the major studies on ITs impact on
    private sector for the last 25 years, it is only
    recently that systematic studies have been made
    on ITs impact on the public sector .
  • Past evidence and perception that IT investments
    have been risky with questionable returns and
    outcomes in public administration.
  • IT alone ? no major public sector reform
    champions gt Isolated successes at best, no or
    very slow real change in the Admin/Bureaucracys
    approach to public sector management. If you are
    operating in that context make sure you start
    very small, and use all the champions/PR tools at
    hand to try to scale-up.
  • Willingness to Reform (leadership), with no ICT
    Laudable but ineffective as it ignores a whole
    decade of research in Impact of ICT on
    productivity and transformation of supply chain
    in private sector. If we chose that route, are we
    advising our clients in the most cost-effective
    way ?
  • Willingness to Reform (leadership) Sound
    Introduction of ICT applications Sustained
    Change Management and technology transfer
    throughout political cycles Critical success
    factors.

3
Measuring Impact of eGovernmenta must to assess
linkages to poverty reduction
  • Unlike the major studies on ITs impact on
    private sector for the last 25 years, it is only
    recently that systematic studies have been made
    on ITs impact on the public sector , and more
    recently on eGovernments impact.
  • WSIS summits changed the perception of policy
    makers on ICT4D for developing countries.
  • Linkages between ICT, poverty reduction
    pro-poor innovation (CK Prahalad)
  • Linkages between sound Admin transformation
    Doing Business indicators
  • Measurement frameworks developed by Consulting
    Firms (Accenture, Gartner, IDC, Forrester, Booz
    Allen Hamilton, KPMG etc.)
  • EU eGovernment Action Plan Benchmarking Impact
  • Australias Demand Value Assessment methodology
    (1.1 Billions saved 02)
  • Italys modeling of eGovernment (Lucio Picci,
    2005)
  • World Bank Group commissioned a few studies on
    impact measurement.

4
The Impact of ICT on Poverty(Based on 2006
McKinsey Co study on impact of Mobile phones in
Asia)
Major benefits from mobile
Benefits qualification
  • USD 100/ month (in additional business)
  • Critical for ad-hoc employment
  • Time saved getting to customerss house or by
    referral
  • Valuable time everyday (6)
  • Surplus re-used for production
  • Stay connected with family members
  • Stay connected with clients. Gets repeat
    Customers.
  • Emotional benefits Less frustration, more
    happiness, hope and free time.
  • Quest for longer term value Quality driving
    repeat Customer

5
Links to Productivity Growth
On Productivity
On Economic Growth
Av Annual percentage rates of labor productivity
growth in Selected Countries (1995-2000)
An increase of 10 mobile phones per 100 people
boosts GDP growth by 0.6
1.2
Thailand
(0.9)
2.1
Philippines
1.2
A 1 increase in the number of Internet users
increases total exports by 4.3.
1.8
(2.3)
Malaysia
(0.7)
(1.5)
Indonesia
In 2006, IT usage in China caused 38 increase
in total factor productivity growth and 21 of
GDP growth (Heshmati Yang). In US, IT was
responsible for 2/3 of total factor growth in
productivity and all the growth in labor
productivity. ICT Sector 06 7 of global GDP,
10 growth, 12 jobs OECD.
5.2
South Korea
3.5
2.7
Singapore
(5.7)
2.2
USA
1.0
Labor Productivity
Labor Productivity without ICT
Source Van Ark et al. (2003)
6
eGovernment Activities Assessing Value, Mapping
processes, outputs, and costs
  • G2G Transition from traditional to e-Government
    approach Impact on poverty?
  • Public Expenditure Management (Federal,
    Municipal/Local)
  • Judicial System Management
  • Civil service management/payroll
  • Taxes Customs
  • Asset Registration (land, vehicles, etc.)
  • Social Security and Pension Administration
  • Public Health Management-e-Health, clinics/drug
    administration mgmt
  • Public Education Management, Distance learning
    and e-Education
  • Early disaster warning/prevention
  • ..other G2G activities, processes and
    applications.
  • Procurement for Government (E-Procurement)
  • G2C One stop shop with priority services to
    Citizens Impact on poverty?
  • E-Citizen one stop shop
  • Hundreds of services (refer to Eduardos
    presentation)
  • G2B

7
Assessing Value and Return on InvestmentHas
e-Government led to Cost Reduction? Quality
Improvements?
First 10 years
8
G2G Platform integration Assessing
Impact(Courtesy Gartner Group, 2006)
9
Cost Savings eProcurement (e-GP)
  • G2G, G2B activity. Government purchases account
    for 15-20 of GDP
  • On-line purchases, 2006 almost 13 Trillions
    (Forrester)
  • E-GPs have proven to save money for governments
    Between 10-50 on costs of goods and services
    based on country benchmarks.
  • MERX (Canada)
  • GEBIZ (Singapore)
  • eMarylandM_at_rketplace
  • Brazil Total savings/year exceed 25 in costs of
    services contracted, for a system that cost 3
    millions in Capex.
  • ChileCompra (e-tendering and e-purchasing).
  • Compranet (Mexico).
  • Estonia.
  • Sri-Lanka eProcurement funded under WBG project
    (too early to tell).
  • Government savings could be re-invested in
    pro-poor programs.

10
Add State Local Spending
E-GP Savings, US economy
Procurement Spend (bn) Savings US
Federal 245 49 US State Local 290 58 TOTAL
535 117 billion
Savings amount to more than 1,400 per US
Household
Source US Department of Commerce, 2005
11
Government Services on-line (G2C)
  • Australian Centrelink Experience
    australia.gov.au
  • UK Directgov UK BusinessLink
  • Singapore (eGov 2010 Plan) www.igov.sv (winner
    of several awards)
  • CitizenConnect and Singapore EnterpriseOne
  • USA www.usa.gov
  • Canadas ServiceCanada
  • Estonia
  • Hong Kong
  • Korea
  • Germany
  • South Africa
  • Chile
  • Cape Verde
  • India e-Seva www.esevaonline.com
  • Brazil Poupatempo
  • Etc..

12
Affordable infrastructure to access
servicesMaximum distribution channels, and
Standards
  • Government e-Services Portals
  • Common Access Kiosks (fee based)
  • (Also called Citizen Assistance Service Centers,
    Telecenters, service centers, community centers,
    etc.)
  • Self Service
  • Assisted service, Face to face
  • Digital TV (T-government)
  • Mobile Phone (M-government)
  • At the basis Common Enterprise architecture
    (Inter-operability framework)
  • Common standards for data interchange
  • Unique registries for citizens, businesses, and
    other entities/assets.

13
www.usa.gov
14
Service Canada Portal http//servicecanada.gc.ca
15
www.australia.gov.au
16
E-Government benefit study, Australia, 2002
  • Australias eGovernment benefits (2002) study
    showed that 90 of egov service users thought
    improvements were significant over traditional
    government interaction.
  • Study modeled methods of demand and value
    assessment and conducted intensive surveys for
    households and businesses
  • 45 surveyed could quantify cost savings of
    10-25 per transaction, the rest of those
    surveyed could not quantify that saving.
  • Businesses surveyed reported cost savings gt
    50/transaction.
  • .. And they did not have to bribe to get their
    requests serviced in earlier model!
  • Cost savings to governments were
  • 67 improved business processes
  • 64 reduced costs of servicing (printing,
    advertisement, etc.)
  • 17 cross-agency collaboration
  • Benefits to users of egov services are estimated
    to be a saving of 1.1 Billion in 2002

17
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18
Access Gaps in Coverage in Rural AreasCritical
for rural poor to adopt egoverment services
CHALLENGE
WHAT ARE WE DOING?
70 of the population covered with only 30 of
the geography
  • Universal Access Funds Nepal, Uganda, Nigeria,
    Pakistan
  • Community Solutions Transferring the Grameen
    Phone experience to other markets, MTN Nigeria
    with SME department (4.3 million TA program)
  • Shared infrastructure Tanzania (with Ericsson),
    India rural infrastructure
  • New technologies VSAT / Cellular,
  • Transmission over power line

100
80
60
Population Coverage
40
20
0
1
10
20
30
40
50
60
70
80
90
100
Geographic Coverage
5
19
Access Gap in Services
CHALLENGE
WHAT ARE WE DOING?
Despite impressive growth in access to voice,
access to the internet remains a challenge
  • PPPs for backbone infrastructure EASSY(22
    countries, 30 operators, 5 DFIs), Indonesia
  • New broadband solutions WiMax (Ukraine, Uruguay)
  • Broadband networks on other infrastructure
    Central Africa (Pipeline), DRC (Electricity
    Transmission). Need to work with other INF
    sectors.
  • Analytical work on importance of Broadband for
    trade and growth.

15x more internet users
40.0
30.0
20.0
10.0
0.0
Americas
Europe
LAC
SSA (IDA)
PCs / 100
Internet Users / 100
INDIA 150 million mobile phones vs 3 million
computers
6
20
Assessing Overall Savings to the Poor
  • Electronic delivery Saving citizen/customers the
    costs of interruptions, travel to governments
    several agencies per transaction, waiting in
    line.
  • When e-service goes to self-service, uncouples
    the work by government side to programming and
    then replication via software -- like ATM
    machines taking over clerical work in banks. Here
    the per transaction savings is typically
    something like 80-90. Must be calculated based
    on volume and current transaction costs.
  • With reengineering and modify much of the
    production flow and tasks, can typically save
    something like 30-40 of total per unit costs of
    service, but with substantial risk and
    uncertainty given the political resistance that
    comes to such changes.

21
Assessing Overall Benefits to the Poor
  • Simply making things transparent improves
    accountability and, typically, efficiency. Useful
    lesson for increased information disclosure on
    our own projects, via local country office web
    sites, or the Development Gateway.
  • In all the above, easier to measure cost
    reductions for innovations that keep the outputs
    the same. In reality, much of the value of
    innovation comes from finding entirely new things
    to produce, and savings to the overall structure.
    This is not well measured and we are still
    struggling to find a good econometric model to
    simulate the derived innovations benefits.
  • Impossible to quantify/model benefits such as
    satisfaction, social cohesion, inclusion,
    democracy etc.
  • Allow citizens to acquire ICT skills which may
    help towards future employment. Accessing
    information empowers and inspires.

22
Linkages eGovernment and Poverty reduction ?
  • Yes if Citizen can benefit from egovernment
    services in terms of
  • Time, Energy, transportation savings
  • Cost savings per transaction (self-service
    replaces bribery)
  • (Around R200 were paid/land record in
    Karnataka)
  • Knowledge/information acquired to be a better
    citizen/worker/parent
  • Innovations that benefit the citizen
  • Employment possibility in the business of
    eGovernment
  • Enhanced quality of life, service quality,
    ability to make good decisions.
  • Social cohesion, trust and more equity in
    accessing opportunities
  • YES If government re-invests savings from its G2G
    eGovernment savings in continuous delivery of
    public social programs targeting poverty
    reduction.
  • YES if government keeps focusing on ICT as a tool
    to support and innovate in public sector reform,
    decentralization accountability and transparency
    throughout its different political cycles.

23
Thank you!
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