EGovernment: Opportunities and Challenges in India

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E-GovernmentOpportunities and Challenges in
India

• Subhash Bhatnagar
• Indian Institute of Management, Ahmedabad
• (subhash_at_imahd.ernet.in)
• and
• Consultant, PREM Public Sector, World Bank
• sbhatnagar_at_worldbank.org

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Presentation Structure

• E-Government different perceptions and delivery
  models
• Cases resulting in multiple benefits improved
  service delivery reduced corruption increased
  transparency increased revenue cost reduction
  and empowerment.
• What are the critical success factors in
  implementing e-government?
• How to move forward?

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E-Government Scope and Definition

• E-Government is about a process of reform in the
  way Governments work, share information and
  deliver services to external and internal clients
  for the benefit of both government and the
  citizens and businesses that they serve.
• E-Government harnesses information technologies
  such as Wide Area Networks (WAN), Internet ,
  World Wide Web, and mobile computing by
  government agencies to reach out to citizens,
  business, and other arms of the government to
  Improve delivery of services to
  citizensImprove interface with business and
  industryEmpower citizens through access to
  knowledge and information andMake the working of
  the government more efficient and effectiveThe
  resulting benefits could be more transparency,
  greater convenience, less corruption, revenue
  growth, and cost reduction

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Different Delivery Models

• Departments going on-line
• Greater departmental ownership significant
  re-engineering possible
• Citizen visit many departments, each one may be
  more efficient
• Could be a first step in the absence of high band
  width network
• Conveniently located Service Centers
• Counters manned by public/private agencies
• Multiple services at each location payment,
  licenses, certificates
• Can quickly move traffic from departments to
  service centers
• Requires significant coordination
• Self Service through a Portal one stop shop
• Back end computerization and Integration needed
  for data sharing
• High internet penetration willingness and
  ability of citizen to use
• Security and mutual trust (builds with successful
  outcome)
• Usage builds up gradually. Adoption rate has to
  be driven.
• Requires strong centralized leadership for
  extensive co-ordination

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Some Successful E-Government Applications from
Developing Countries

• CARD, FAST,eSeva, BHOOMI in India
• Citizen Service Center (mobile), Bahia, Brazil
• E-procurementMexico,Philippines,Bulgaria,Chile,
  Korea
• New Business Registration Jordan,Jamaica, China
• Tax collection State Border Check Posts, Gujarat
• Income Tax on-line in Mexico, Singapore, Brazil,
  Jordan
• Customs on-line India, Philippines, Jamaica
• OPEN- Seoul Municipality, VOICE in Vijayvada
• Gyandoot, n-Logue, drishtee in Rural India
• Teachers Transfer in Karnataka and SmartGov in
  AP, Khajane in Karnataka

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Overall Assessment

• Assessment is difficult in the absence of
  evaluations. Overall impact is marginal. Limited
  number of applications. Service delivery has
  become efficient but impact on transparency/
  corruption is marginal
• Largest number of applications for service
  delivery to urban citizens in revenue earning
  departments. Few applications in health/education
  
• Largely bottom-up, driven by reformist civil
  servants. Only 1-2 states have political support
  and central coordination.
• Technical sophistication in design varies a great
  deal. Data sharing, scalability, security have
  not been adequately addressed.
• Moving from manual to on-line for some steps.
  Produces large benefits. Integrating across
  departments is complex, more so with legacy
  systems.
• Large number of web sites are not used. Citizens
  unwilling to engage. Intermediaries are needed.

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Report Card on Bhoomi is GOOD

• Survey 180 users from 12 kiosks and 60 non users
  4 taluks
• Ease of Use 78 of users who had used both
  systems found Bhoomi simpler 66 used Bhoomi
  without help vs. 28 in manual
• Complexity of Procedures 80 did not have to
  meet any one other than at kiosk In manual 19
  met one officer and 61 met 2-4 officials
• Errors in documents Bhoomi 8 vs manual 64
• Rectification of errors sought correction 93
  vs 49, timely response 50 vs 4
• Cost of service 84 one visit to Bhoomi center
  at Taluk HQ
• Corruption 66 paid bribes very often vs 3 in
  Bhoomi
• Staff behavior Bhoomi Good (84) vs manual
  Average (63)

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Report Card on Gyandoot

• Offers 22 services at fees of Rs 10-15 Mandi
  prices (30), grievance (13), certificates
  promised in 8 days (25)
• Kiosks offer training, copying, word processing
  services for bulk of revenue
• Evaluation thru a survey indicates dwindling
  attendance at Kiosks. 5602 (85 males) over 2
  years logged in 18 kiosks. Attendance averages to
  one a day per kiosk
• Handle very small proportion of any type of
  transactions
• Doubtful Viability Investment in network of Rs
  2.5 million Rs 150K worth of equipment and
  expenses of Rs 1200 pm with average revenue from
  user fee of Rs 150 pm/ kiosk

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Critical Success Factors

• Strong Political and Administrative Leadership ,
  detailed Project Management
• Clearly identified goals and benefits
• Significant Process Reengineering Required
• Start Small, scale up through stages, manage
  expectations
• Adopt established standards and protocols
  minimize customization
• In-source Analysis Outsource design, software
  development, data preparation, training, etc.
• Training Expenses should not be minimized

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Enablers of e-Government

• 20 Technology
• 35 Business Process Reengineering
• 40 Change Management
• 5 Luck !

Technology
Process
People
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Organization for Implementing E-government

• A champion at the political level
• Ministerial level co-ordination committees
• A central support group
• Departmental Champions and co-ordination
  committee
• Institution for Training
• Private sector partners

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Issues that Need Resolution

• No country is completely ready? Balance between
  strategizing, coordination and action
• Approach centrally driven versus departmental
  initiative?
• Role, mandate, size of a central support agency.
  Where should it be created?
• Creating departmental ownership Budget
  allocations, training, demand, performance push
• Who can help?(partnership with private sector
  multi national/local/one or many partners,
  partnering arrangement)
• How can progress be measured?

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Role of the Central Support Group

• Assessing and enhancing preparedness
• Developing a strategy and implementation plan
• Resources for re-engineering, application
  development and change management
• Guidelines, standards and best practices
• Developing public private partnership
• Identifying departmental champions
• Monitoring progress and impact
• Overseeing a few key projects
• Building/managing shared infrastructure

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Training and Awareness Building Have a Key Role

• Training programs for Project leaders who can
  define project deliverables, deal (negotiate)
  with consultants and vendors and manage an
  outsourced development process
• Andhra Pradesh CIO Program conducted by IIMA
• Training of clerical staff on specific
  applications (developers)
• Awareness in citizens of on-line services and how
  to transact on Portals
• Training of supervisors and managers on using
  information
• Awareness in senior civil servants and political
  executives-highlighting benefits of Egovernment
  and effort required

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Technology that makes rural access inexpensive
and robust
NGOs and grass root organizations that catalyze
and mange the community building process
Applications that draw a large cliental that pays
for the service, ensuring economic viability of
the kiosk
Bridging the Digital Divide
Content that empowers rural citizens and enables
formation of communities
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Problems in Service Delivery

• Inadequate reach balancing quality and access
• High cost particularly to the rural poor
• Mismatch in demand and supplyhealth and
  education
• Low productivity and wasted resources
• Consequences of administrative corruption
• Service is denied/delayed unless bribe is paid
• Collusion --Loss of revenue to government
• Disincentive to SMEs, FDI, employees and
  citizens. Increases tolerance for corruption in
  society.
• Creates corruption in appointments and transfers.

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Corruption in Service Delivery Generic Problems

• Complex rules-need for intermediaries
• Discretion to delay or deny without assigning
  reasons
• Decisions and actions are not traceable. Citizens
  have poor access to information
• Lack of supervision in remote areas-problems of
  decentralization
• Large power distance between civil servants and
  citizens-afraid to assert and complain
• Poor mechanisms of complaint handling.
  Documentation is weak for any investigation

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Impact of E-Government

• Faster processing, shorter wait, shorter queues
• Less number of trips to government offices saves
  transport cost and avoids wage loss
• More accurate and legible documents, easy
  recovery from errors, better reception areas
• Lesser corruption more transparency
• Improved access to offices (nearer home, 24X7)
  and functionaries (no intermediaries)
• User fee may be levied- issue of acceptance
• Improved complaint handling

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Egovernment-How does it help

• Introduces transparency in data,
  decisions/actions, rules, procedures and
  performance of Govt. agencies
• Automates processes to take away discretion
• Entry point for simplification of rules and
  reengineering processes
• Makes decisions traceable- tracks actions
• Builds accountability- greater access to
  information through web publishing-role of civil
  society
• Provides documentation to citizens for follow up

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Egovernment-How does it help

• Modularizes Tasks Making Outsourcing Possible
• Introduces competition amongst delivery channels
  and departments
• Standardized documentation of comments/
  objections leads to effective supervision-
  through comparative indicators
• Centralizes data for better audit and analysis
  Integration of data across applications-provides
  improved intelligence
• Enables unbiased sampling for audit purposes

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Egovernment-How does it help

• Modularizes Tasks Making Outsourcing Possible
• Introduces competition amongst delivery channels
  and departments
• Standardized documentation of comments/
  objections leads to effective supervision-
  through comparative indicators
• Centralizes data for better audit and analysis
  Integration of data across applications-provides
  improved intelligence
• Enables unbiased sampling for audit purposes

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Summary egovernment is not irreversible magic

• E-Government can advance the agenda on Governance
  reform, transparency, anti- corruption,
  empowerment. It is NOT a panacea
• Potential is recognized but Implementation is
  difficult. Gains are real but risks need to be
  understood. Challenge is to promote wide spread
  use in areas where benefits outweigh risks.
• Situate in a broader framework of anticorruption.
  Identify all pressure points and reengineer to
  remove discretion, simplify procedures and put
  out as much information in public domain.
  Incentive structure and institutional capacity
• Create competition in delivery channels
• Strengthen physical supervision and actionable
  MIS
• Build other forms of benefits for those who loose
  power and income
• Co-opt civil society to build accountability

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