Unlocking E-Government Potential: Concepts, Cases and Practical Insights

Unlocking E-Government Potential

Unlocking E-Government Potential Concepts, Cases and Practical Insights

Subhash Bhatnagar

Copyright© Subhash Bhatnagar, 2009 All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage or retrieval system, without permission in writing from the publisher. First published in 2009 by SAGE Publications India Pvt Ltd B1/I-1 Mohan Cooperative Industrial Area Mathura Road, New Delhi 110 044, India www.sagepub.in SAGE Publications Inc 2455 Teller Road Thousand Oaks, California 91320, USA SAGE Publications Ltd 1 Oliver’s Yard, 55 City Road London EC1Y 1SP, United Kingdom SAGE Publications Asia-Pacific Pte Ltd 33 Pekin Street #02-01 Far East Square Singapore 048763 Published by Vivek Mehra for SAGE Publications India Pvt Ltd, typeset in 11/13 pt CG Times by Diligent Typesetter, Delhi and printed at Chaman Enterprises, New Delhi. Library of Congress Cataloging-in-Publication Data Available

ISBN: 978-81-7829-928-0 (PB) The SAGE Team: Reema Singhal, Gargi Bhattacharya and Trinankur Banerjee

Contents

List of Tables List of Figures List of Boxes Preface

x xii xiii xiv

Introduction

xviii

1 E-Government: Definition and Scope 1.1 1.2 1.3

Nature of Clients Served and the Service Delivery Process E-Government: Different Stages of Evolution E-Government versus E-Governance

2 E-Government in the Context of Developing Countries 2.1 2.2 2.3 2.4 2.5 2.6 2.7

Nature of Applications for Different Types of Clients Challenges in Design and Implementation Investments in E-Government Reasons for Implementing E-Government E-Government Readiness of Countries Status of E-Government in India Key Challenges in Further Development of E-Government

01 04 06 07 11 15 17 19 21 24 26 27

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Unlocking E-Government Potential

3 Potential Benefits of E-Government for Key Stakeholders 3.1 3.2 3.3

Benefits for Citizens: Results from an Impact Assessment Study Benefits for Businesses: Results from an Impact Assessment Study Benefits for Agencies Implementing E-Government Applications

4 Impact of E-Government on Transparency and Corruption 4.1 4.2 4.3

Results from a Study of Impact on Corruption Improvement in Transparency through E-Government Dealing with Corruption through E-Government

5 Guidelines for Implementing Projects Successfully 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10

Life Cycle of an E-Government Project Conceptualizing Project Definition and Scope: Starting Small Process Re-engineering Designing a Citizen-centric Service Delivery Mechanism Communicating with Users Seeking Partnerships: Avoiding Reinvention of the Wheels Phasing Implementation Capacity to Manage Change Strong Internal Leadership and Project Management Risk Factors in Implementing E-Government Projects

29 31 38 41 49 51 52 61 66 66 74 78 82 84 86 87 87 90 92

Contents

6 Guidelines for Designing a Countrywide Strategy for E-Government 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9

The Need for a Strategy and Implementation Plan Assessing E-Government Readiness Balancing Bottom-up versus Top-down Approach Selecting Quick-strike Projects Importance of Capacity Building Promoting Public–Private Partnerships Enabling Legal and Economic Frameworks Strategy for Reform: Incremental versus Big Bang Conclusion

7 Making E-Government Work for Rural Citizens 7.1 7.2 7.3 7.4 7.5

How Can ICT Use and E-Government Help the Poor? Challenges in Building Pro-Poor E-Government How Can Telecentres Be Made Viable? Examples of Pro-Poor E-Government Applications Gender Focus of E-Government Projects

8 A Framework and Methodology for Impact Assessment 8.1

Evaluation of E-Government Projects Done in the Past 8.2 Review of Literature on Impact Assessment 8.3 Proposed Measurement Framework 8.4 Methodology of Measuring Impact on Clients 8.5 Methodology for Measuring Impact on Agency and Society 8.6 Usefulness and Limitations Annexure 8.1 Suggested Questionnaire for Clients

vii

94 94 95 96 99 102 103 106 109 110 113 114 115 119 123 130 133 134 136 139 139 149 150 152

viii Unlocking E-Government Potential

9 Case Studies on Government to Citizen Applications 157 in E-Government 9.1 9.2 9.3 9.4 10

11

Computerization of Land Records in Karnataka (Bhoomi) Computer Aided Registration of Deeds in AP (CARD) Online Delivery of Municipal Services: Ahmedabad Municipal Corporation, Vijaywada, Kalyan–Dombivli E-Seva—Electronic Delivery of Citizen Services in Andhra Pradesh

160 175 185 200

Case Studies on Government to Business Applications in E-Government

221

10.1 Online Tax Filing Systems in Different Countries: Singapore, Guatemala, Chile and India 10.2 E-Procurement Experiences from Different Countries: Korea, Chile, Philippines and India (Andhra Pradesh) 10.3 Indian Customs Electronic Data Interchange (EDI) System 10.4 Computerization of Interstate Border Checkposts in Gujarat

223 236 259 267

Case Studies on G2G Applications in E-Government

275

11.1 CARING Gov—Andhra Pradesh Sachivalaya E-Application 11.2 Computerization of the Treasuries in Karnataka (Khajane)

276 290

Contents

12

13

ix

Guidelines for Design and Implementation of an E-Government Portal

300

12.1 Introduction 12.2 Key Features of an E-Government Portal—Single Access Point 12.3 Demand and Supply Factors for E-Government Portals 12.4 Standardization for Integrated Services 12.5 When to Move to an Integrated Portal? 12.6 Monitoring and Evaluation (M&E) Framework for Portal Projects 12.7 Conclusion

300 301

E-Government: The Way Ahead

321

Bibliography Index About the Author

302 307 312 315 319

327 346 352

List of Tables

2.1

Examples of application areas from different countries E-government project investment E-government readiness of countries

12

Potential benefits through e-government applications Examples of reduction in elapsed time Impact on key dimensions averaging over all states Impact on key dimensions across three projects Percentage growth in tax revenue and transactions

30

Goals of public sector reform through e-governance Proportion paying bribes: a comparison of manual and computerized delivery Transparency of information through e-government applications

50

5.1

Comparison of economic analysis across the two projects

78

7.1

Examples of pro-poor e-government applications

127

8.1 8.2

Key dimensions of impact on various stakeholders Counterfactuals in sample selection under different types of delivery modes

140 145

2.2 2.3 3.1 3.2 3.3 3.4 3.5 4.1 4.2 4.3

20 24

32 35 41 43

53 55

List of Tables

9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 10.1 10.2 10.3 10.4 11.1 11.2 11.3 11.4 11.5 12.1 12.2

Comparison of Bhoomi with the manual system Investment in Bhoomi (Rs million) Comparison of CARD with the earlier system Revenue collection and growth in revenue over five years Comparison of civic centre with the departmental system Elapsed time (in days) for various services Transaction volumes and revenue collection from civic centres Number of complaints received, addressed and pending in ward offices and civic centres Reduction in litigations pertaining to property tax Reduction in number of tax objections Department-wise list of services offered through e-Seva, Hyderabad Use of the e-procurement platform by departments and agencies of GoAP Andhra Pradesh tender analysis (GoAP) Client impact of the e-procurement portal in AP Client impact of computerized checkposts

xi

170 171 180 181 191 192 193 194 194 194 202 246 248 250 272

Annual investment in Khajane (in Rs million) Annual operating expense in Khajane (in Rs million) Comparison of Khajane with the earlier system Cases of misappropriations and embezzlements in Karnataka Khajane: transaction volumes

296 296 297 298

Available solutions at different stages in service evolution Communication channels for different stages of the e-service model

310

299

312

List of Figures

1.1 1.2

E-government evolution: four critical stages Elements of good governance

06 10

3.1

Number of trips required for availing service across all three applications Perception of supervisors about impact on agency (in percentage)

33

3.2

47

4.1

Percentage of users paying bribes in different states

51

5.1

E-government project life cycle

66

6.1

Balancing risk and value in selecting projects

101

7.1 7.2 7.3

Where can ICTs help rural citizens? Basic conditions for making telecentres viable NeGP MMPs focusing on the poor

114 120 123

9.1 9.2

Application architecture of e-Seva Transaction volumes of e-Seva (TWINS and districts) over five years Role of e-Seva Directorate

204 205 213

10.1

A schematic view of customs online

262

13.1

Critical success factors for different stages of e-government Enablers of e-government

324

9.3

13.2

326

List of Boxes

2.1

Challenges in further progress of e-government in developing countries

28

3.1

MCA21 e-governance project

39

4.1 4.2 4.3 4.4

56 57 58 59

4.7

CRISTAL website, Argentina Centre for responsive politics, USA Right to Information Act Online grievance redressal, Mumbai Municipal Corporation Teachers’ transfers in Karnataka, India OPEN system [Seoul Municipality, South Korea (OPEN)] Central Vigilance Commission

5.1 5.2

Some measures for securing e-government systems ASYCUDA: Avoid reinventing the wheel

84 87

6.1 6.2 6.3

Columbia’s carrot-and-stick approach NeGP—National e-governance plan A tale of two states

98 104 111

7.1 7.2 7.3 7.4

Gyandoot project Lokvani Progress of e-panchayat in Gujarat India health care project

116 124 125 132

Singapore eCitizen portal

316

4.5 4.6

12.1

60 62 64

Preface

For the last three decades, I have been interested in the application of information and communication technologies (ICTs) for development. India has always been a fertile ground for innovations in ICT applications for rural development. Several successful pilots were developed by entrepreneurs amongst civil servants. I was involved in an action research project in the Surendra Nagar district of Gujarat where a mini-computer was installed at the collectorate in 1985. A team of researchers attempted to develop applications that would support planning and monitoring of development programmes at the district level. Fifty district collectors came together in 1985 in a workshop at the Indian Institute of Management Ahmedabad (IIMA), to discuss the Surendra Nagar project and share their own experiences of ICT use in district administration. Some of these pilots were scaled up through central government initiatives, but for many years the overall impact of ICTs on India’s development remained marginal. Interest in ICT use by governments revived in the late 1990s in India and other parts of the developing world. India began to emerge as an important software development centre. Several IT multinationals companies set up offices in India. Internet and e-commerce became buzzwords. India also progressed towards a more liberalized economy. Anecdotes about e-government projects began to trickle in from many developing countries. Andhra Pradesh, in India, pioneered with a few applications. There was considerable interest in the vendor community as it saw a large market opportunity. In October 1999, IIMA set up the Centre for Electronic Governance with support from three private sector companies. I was

Preface

xv

asked to coordinate the activities of the new centre. At the same time I was also coordinating the work of the Telecom Policy Research Centre at the institute. The work of these two centres provided me the opportunity to look at emerging uses of ICT, particularly within the government and the rural sector. In the year 2000, IIMA organized a workshop on ICT and Rural Development in India in which several project leaders of innovative projects shared their experiences. Some significant e-government projects from Andhra Pradesh were also presented. Publication of the workshop proceedings was well received, encouraging me to undertake further case research on ICT uses within the government. Soon thereafter, I moved to Washington DC on a two-year assignment with the Public Sector Group within the Poverty Reduction and Economic Management Network of the World Bank to mainstream e-government into the lending activities of the World Bank. The assignment provided me the opportunity to broaden my horizon by understanding the developments in the use of ICTs within the government in a number of developing countries. I was able to document two dozen case studies from many developing countries of the world. I was also involved in assessing the e-government plans of many countries and in providing advice to such countries. Based on my two years of intensive work done at the World Bank, I wrote a book on e-government in 2004. I continued to work for the World Bank as an e-government advisor to the Information Solutions Group for the next four years. During this period I conducted several workshops and training programmes in the Bank, in which the field experience that I gathered was distilled and communicated to the Bank staff. I coordinated an impact assessment study of 10 e-government projects in India and Chile done in 2006 and a major study of 40 projects done in India in 2008. This book is a sequel to my first book on e-government published in 2004. It is based on my recent work on e-government including my association with capacity building and impact assessment work for the National e-Government Programme in India.

xvi Unlocking E-Government Potential

The book provides a conceptual basis and empirical results for understanding the potential of e-government and practical insights for implementation of e-government. The book is intended to serve as a practical guide for conceptualizing and implementing e-government at a local, state or national level by IT professionals, civil servants and managers from multilateral institutions. It should be useful for practitioners, researchers, as well as students. Ten case studies have been included, which provide learning for different facets of e-government. Each case study is structured in a standard format to highlight the application context and learning from the experience. These cases can be used as a basis of class discussion for key issues in implementing ICT applications. Even though many of the cases are drawn from India and my own experience and understanding of the subject has been moulded by the Indian experience, the issues of implementing e-government are similar across the world. The book includes a few cases from countries other than India and should be equally useful to professionals, academics and students from any part of the world. Material for this book has been drawn from a variety of sources, including my previous book published in 2004; impact assessment reports that I authored for a World Bank study of five projects (2007), a Department of Information Technology (DIT), Government of India, study of five projects (2007) and a DIT study of 36 projects (2008). These projects were done while working for the IIMA. I am grateful for the support extended to me by IIMA, World Bank and DIT to carry out the research. In documenting the Indian case studies that are carried in this book, I was greatly helped by the civil servants who had implemented these projects. I wish to thank Rajeev Chawla, J. Sathyanarayana, P. Panneervel for facilitating field visits as well as their contribution in drafting the cases. I wish to acknowledge the contribution of Ms Nupur Singh, Incharge, Centre for Electronic Governance (CEG) at the IIMA, Ms Aryamala Prasad and Ms Anuradha Parekh, research associates with CEG at the IIMA. They provided research support, drafted some of the boxes, helped in the editing of the manuscript

Preface xvii

and provided me valuable suggestions to improve the manuscript. Final thanks are due to my wife Prof. Deepti Bhatnagar, for encouraging me to undertake this project. I wish to dedicate this book to my late father Prof. Brij Mohan Lal Bhatnagar, who instilled in me a love for academics and went beyond his means to send me to some of the best educational institutions in the country.

Introduction

E-government applications have emerged rapidly in the developing world. Many countries use e-government as an enabling tool to increase efficiency, enhance transparency, collect more revenue and facilitate public sector reform. Recent empirical studies on impact of e-government have shown that while e-government is not a panacea, it is a powerful enabling tool that has aided governments to achieve some of their development and administrative reform goals. Although e-government can be a catalyst for change, it is not a complete solution, and it must be part of a broader commitment to reform the public sector. Three factors are critical for the successful implementation of e-government. These include willingness to reform, availability of information and communication technology infrastructure and the institutional capacity to absorb and manage change. The book is based on the analysis of impact of dozens of projects from India and case studies from many developing countries where e-government has been implemented to address social and economic development challenges.1 Case studies on 10 of these projects have been included in this volume. It should be noted that documented case studies often highlight success stories. There may be a significant number of failed projects amongst the applications that have not been documented. The main source is the documentation of case studies carried on the website of Public Sector Group at the World Bank, http://www1.worldbank.org/ publicsector/egov. Another source is the IDPM website of Manchester University, http://www.mceg.org. uk/links.htm. Four detailed cost–benefit evaluations of Indian projects are available at http://www1.worldbank.org/ publicsector/bnpp/egovupdate.htm. 1

Introduction

xix

In the last 10 years, ICT investment by governments in developing countries has witnessed a dramatic increase. Most developing countries are using ICT to modernize and increase internal efficiency as well as improve service delivery. As a result, many developing countries have either embarked on e-government or are in the process of creating strategies. The book is intended to provide practical guidelines on selection of application areas, conceptualization of the scope, project design, strategy and implementation. Analysis of existing applications provide useful insights into the emerging trends of e-government in the developing world and also provide lessons on the many ways to overcome challenges in implementation. The book also documents the benefits and impact of e-government on different stakeholders, particularly citizens and businesses. Results from various impact assessment studies are reported. The book identifies critical success factors that must be present for e-government applications to improve governance. Critical success factors such as defining project goals that are measurable and focused on governance reform, institutional capacity and presence of reform-minded leadership are discussed in detail. Although no comprehensive framework exists, several countries have incorporated these factors into the design of their e-government programmes in many creative ways. The book presents the material in 13 chapters. Chapter 1 provides a comprehensive definition of e-government. Chapter 2 provides an overview of the global experience in implementing e-government, how it has emerged and for what purposes it has been used in different countries. Examples of e-government that include integrated service delivery portals and citizen service centres offering services to citizens such as transactions involved in obtaining certificates and permits, payment of taxes and services to businesses like customs, business licences and procurement are provided. The goals and delivery models used for e-government differ across countries. Many developing countries have used creative approaches to bridge literacy, infrastructure and digital divides in service delivery. Often a

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hybrid form of service delivery is used, combining manual and online mechanisms. Chapter 3 explores the potential impact of e-government on the cost of access, quality of service and quality of governance for the citizens and businesses that use e-government services. The benefits delivered to the various stakeholders including the agency implementing the system and its employees are described. The actual realization of such benefits in the projects that have been systematically assessed is discussed. Possible ways in which the potential benefits can be realized are analyzed. Chapter 4 analyzes the potential impact of e-government on transparency and corruption. The section details the extent to which corruption and transparency have been impacted in the projects that have been implemented on a wide scale in India. Evidence shows that e-government has had a significant impact on broader governance goals where political leadership and a commitment to reform have been present. Many illustrative examples are provided and the reasons for success or failure of such projects in enhancing transparency and reducing corruption are identified. Chapter 5 explains the different stages in the life cycle of an e-government project. It discusses best practices in project conceptualization, design and implementation with specific focus on managing change. Particular attention is given to the need for a well-defined project scope, goals and target audience. E-government projects must be accompanied by process re-engineering of back-office procedures. Processes should be re-engineered to reduce the cost and effort for the citizens and businesses that use the system, rather than to downsize the department. This is necessary to deliver effective and speedy service delivery with reduced corruption. Many e-government projects invest too little effort in process re-engineering because this exercise meets significant internal resistance from civil servants who fear losing their jobs and their power. Chapter 6 provides practical guidelines for the creation of a country-level strategy and implementation plan. The guidelines are drawn from best practices that document both risks and

Introduction

xxi

merits of different strategies that have been used in developing countries. One lesson of particular importance is the need for departments to have ownership of e-government projects. National strategy and standards are important in the long run for establishing interoperability. However, government departments need to take the lead in design, implementation and developing pilots that bring significant benefits to the target users. Chapter 7 discusses a strategy for making e-government work for the poor. Key challenges in providing access to rural population are discussed. Several examples of pro-poor applications are described. Lessons are drawn from successful experiments of service delivery in rural areas to propose some solutions for making rural telecentres viable. Chapter 8 emphasizes the need for the evaluation of egovernment projects and proposes a methodology for impact assessment. Many projects rely on purely anecdotal evidence to measure success. This has left little comprehensive information about the success factors and ways to tackle failure in e-government. The basic methodology provided in this section is based on the experience of two major impact assessment studies carried out in India. Chapters 9–11 present 10 case studies of e-government applications. These cases cover the whole range—serving different types of clients (citizens, business); focusing on different purposes (improving service delivery, transparency, increasing tax revenue, controlling government expenditure, empowering rural communities) and built by different tiers of government (federal, state and local). All the cases are structured in a similar format. They explain the application context, new approaches embodied in the e-government application, challenges faced during implementation, benefits delivered and costs incurred. The final section of the case study discusses key lessons that can be drawn from the case study itself. Reference to these cases has been made in the early chapters that present the analysis of the ‘what’, ‘why’ and ‘how’ of e-government. Chapter 9 presents four government-tocitizen (G2C) cases dealing with delivery of services to citizens. Chapter 10 presents four government-to-business (G2B) cases

xxii Unlocking E-Government Potential

dealing with delivery of services to businesses. Chapter 11 deals with two government-to-government (G2G) cases. Chapter 12 discusses delivery of e-government service through an integrated portal. It provides guidelines for design, implementation and evaluation of portals. The conditions necessary for developing portal based delivery are discussed. Chapter 13 looks ahead and also summarizes some of the important learnings that emerge in the book. The book is written for a diverse audience. It analyzes the trends that have emerged in developing countries and how e-government has impacted the delivery of services and broader governance reform goals. The book recognizes many different challenges that must be overcome for the implementation of e-government, and many diverse approaches that can be used to tackle these challenges. Successful e-government will be shaped by local contexts. The book provides a few guidelines that emerge from worldwide experience. A discussion of e-government can cover several perspectives. A technical perspective will focus on technical architecture of solutions; choice of technology and platforms; different ways of handling security and electronic payments. A public administration perspective may focus on outcomes—impact on efficiency, transparency and corruption. An economic perspective will focus on the questions of investments, cost and benefits. A managerial perspective may focus on systems analysis, re-engineering and management of change. It requires a multi-disciplinary approach to plan and implement e-government. While not emphasizing technology, the book attempts to integrate the many different perspectives.

1 E-Government: Definition and Scope Governments have been engaged in deploying Information and Communication Technologies (ICTs) for several decades to increase the efficiency and effectiveness of their functioning. Early applications were focused on building management information systems for planning and monitoring. Many large projects were undertaken and there were prominent failures.1 The record of using ICT to gain any benefit has been quite dismal. However, with the advent of the Internet and its explosive growth, fuelled by the use of e-mail, e-commerce prompted some governments to use the Internet for delivery of information and services to citizens. The growing use of Internet for advocacy, distance learning and fostering participation revived the hope that ICTs could indeed deliver value commensurate with investments. Borrowing from the world of e-commerce, a new term, e-government, was coined to describe a variety of use of the Internet by governments. The use of the term e-government has grown explosively: only a decade ago, the term was just beginning to get known even in scientific circles. Major English dictionaries do not list the word e-government or electronic government. The term was perhaps coined about 15 years ago after the success of electronic commerce to represent a public sector equivalent to e-commerce. The term is used in a loose manner to describe the legacy of any kind of use of information and communication technology within the public sector. For those who see it as some form of extension According to a survey, only 15 percent of the e-government projects are successful, 35 percent are total failures and 55 percent are partial failures (Heeks 2003). 1

2

Unlocking E-Government Potential

of e-commerce to the domain of the government, it represents the use of the Internet to deliver information and services by the government. Most definitions use the word e-governance and e-government interchangeably.2 Although an Internet search on the phrase ‘e-governance definition’ can produce several thousand hits, there is no single universally accepted definition. Some examples of definitions are presented to illustrate the different perspectives that are represented. A definition of e-government that is used in this book is then provided to clarify the distinction between e-governance and e-government. In using a definition, it is important to note that ‘“too narrow” a definition can constrain opportunity and “too broad” a definition dilutes its value as a rallying force’ (Caldlow 1999). Some examples of the definitions are: 1. A rather restrictive definition inspired by e-commerce is ‘digital information and online transaction services to citizens’. A report by the United Nations Educational, Scientific, and Cultural Organization (UNESCO) and the Commonwealth Network of Information Technology for Development (COMNET-IT) (UNESCO and COMNET-IT 2000) defines e-governance as the delivery of government services and information to the public, and of public input to the process of government. This definition is less restrictive as it specifies a two-way exchange of information between the government and citizens. 2. International Institute for Communication and Development (Backus 2001) (IICD), focusing on processes, defines e-governance as the application of electronic means in: (a) the interaction between the government and citizens and the government and businesses, as well as (b) in internal government operations to simplify and improve democratic, government and business aspects of governance. The Council of Europe (Council of Europe nd) defines it as the use of electronic technologies in For various definitions and scope of e-government, see Pacific Council on International Policy 2002; Symonds 2000; Tambouris nd; Caldlow 1999. 2

E-Government: Definition and Scope

3

three areas of public action: (a) relations between the public authorities and civil society, (b) functioning of the public authorities at all stages of the democratic process (electronic democracy) and (c) the provision of public services (electronic public services). 3. From a public management perspective, the definition that has been proposed is: electronic government is a form of organization that integrates the interactions and the interrelations between the government and citizens, companies, customers and public institutions through the application of modern information and communication technologies. Another definition looks at e-government as the sum of new possibilities for public institutions to communicate with others electronically. Various forms of decision-making, business transactions or simply communication can take place through electronic networks, dramatically changing the way the government works. E-government is seen to be a technology-driven reform movement, whereby the reform strategy follows the potential created by modern ICT (Schedler and Scharf 2002). The term e-government, as it is used and understood in this book, borrows the essential feature from the given definitions: the use of emerging technologies for reforming processes of service delivery and citizen engagement. In addition, the definition includes a focus on outcomes. E-government is about a process of reform in the way governments work, share information and deliver services to external and internal clients. Specifically, e-government harnesses information technologies (such as wide area networks (WAN),3 the Internet and mobile computing) to transform relations with citizens, A Wide Area Network (WAN) is a geographically dispersed telecommunications network. The term distinguishes a broader telecommunications structure from a Local Area Network. A WAN may be privately owned or rented, but the term usually connotes the inclusion of public (shared user) networks. An intermediate form of network in terms of geography is a Metropolitan Area Network (MAN). 3

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businesses and other agencies of the government. These technologies can serve a variety of ends: better delivery of government services to the citizens; improved interactions with business and industry; citizen empowerment through access to information or more efficient government management. The resulting benefits can be less corruption, increased transparency, greater convenience, revenue growth and/or cost reductions.

1.1 Nature of Clients Served and the Service Delivery Process Analogous to the concept of e-commerce, which brings customers closer to businesses (B2C) and enables businesses to transact with each other (B2B) more efficiently, e-government aims to make the interaction between government and citizens (G2C), government and business enterprises (G2B) and inter-agency dealing (G2G) friendly, convenient, transparent and less expensive. In fact, one way of classifying e-government applications is the type of clients being served. Chapter 2 discusses many examples of each type of application. Traditionally, the interaction between a citizen or business and a government agency took place in a government office at designated counters/desks where the clerical staff interacted with the client. At these counters, citizens could seek information on how a service could be obtained, collect an application form, submit the filled form, provide supporting documents, make a payment of fee or any other charge and receive the desired document. Normally, different counters needed to be visited for different tasks. Depending on the queues and time taken in transactions, different tasks could be done in one visit else, several visits were required. Operators at the counters recorded data in manual registers, looked up information from registers and wrote information in the documents that needed to be delivered. Different levels of computerization may exist at the back-end in different agencies but in traditional delivery, computers were not accessed by the operators for any task.

E-Government: Definition and Scope

5

Many departments are moving to a basic form of e-government from the current manual processes, where the citizens interact with an operator who accesses data and information from online terminals located in the premises of the department. The first stage consists of departments computerizing the back-end so that records can be retrieved, modified and printed online. In such a mode of delivery, the citizens need to visit different departments for the services that they need although each department could be working more efficiently in comparison to the old manual system. The timings often remain inconvenient and restricted. With emerging ICTs, it is possible to locate service centres closer to the clients. Such centres may consist of an unattended kiosk in a public place or in a community service centre owned by a government agency or even a private service provider. Services may also be accessed from a personal computer via the Internet. Counters at community service centres are manned by public/ private agencies. Multiple services are offered at each location. Such counters can have extended timings (in comparison to the departmental counters) and even remain open on weekends and holidays. Operators are able to deal with citizens who are not so literate and comfortable with using technology themselves. Such centres can quickly wean off traffic from the departmental counters. Building these centres requires coordination among different departments. Services from municipal, state and federal governments can be offered under one roof. Citizen self-service through portals are popular in countries where Internet penetration and skills are high. The portals offer a variety of services and require a completely computerized backend in various departments. A portal can be accessed 24 hours a day at the convenience of the user. This model requires investment in security and the building of mutual trust. Many countries have experienced a gradual build up of its usage.4 Adoption rate has to be driven through training and the raising of awareness. Building For example, in Canada, currently only 11 percent of the citizens use the portal even though 60 percent of citizens have access to the Internet. 4

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a portal requires strong centralized leadership to facilitate and encourage inter-departmental coordination. Even through interdepartmental portals, self-service is often difficult to achieve, particularly when the service requires approval from different departments.

1.2 E-Government: Different Stages of Evolution E-commerce has evolved through four stages: pure publishing, interactivity, completing transactions and delivery. Similar stages have been defined for assessing the maturity of e-government. E-government applications normally evolve through a four-stage process as depicted in Figure 1.1 (Gartner Dataquest 2000).The first stage includes the publication of information on a website for citizens to seek information about procedures governing the delivery of different services. The second stage allows for online interaction. Clients can download applications for receiving services. The third stage involves the electronic delivery of documents. The fourth stage offers integrated electronic delivery

Delivering value to citizens

Figure 1.1: E-government evolution: four critical stages

Web Presence Agency websites provide citizens with information on rules and procedures

Limited interactions Intranets link departments that allow for e-mail contact, access to online databases and downloadable forms

Transactions Electronic delivery of services with some or all stages automated Applications include issue of certificates and renewal of licences

Complexity of implementation and technology

Source: Gartner Dataquest 2000.

Transformation Joined-up government All stages of transactions including payments are electronic Applications include government portals such as ukonline.gov New models of service delivery with public–private partnerships

E-Government: Definition and Scope

7

of services where more than one department may be involved in processing a request or service. Public–private partnership models are offered. The case study on computerized land records explains the four stages in the context of transactions relating to a property. E-government comprises an alignment of ICT infrastructures, institutional reform, business processes and service content towards the provision of high-quality and value-added e-services to citizens and businesses. Omnipresent e-government services require relaxation of time, place and other accessibility constraints and compliance to architectural principles such as true one-stop services and life-event orientation (navigation in portals made easy by organizing it according to key events in the life of a citizen where interaction with the government is needed). Critical issues arise with respect to prioritization and pilot scoping of e-government services projects, exploitation of multi-device/ multi-channel access technologies, re-engineering and security of back-end ICT infrastructure as well as evaluation of operational schemes. These issues are elaborated in Chapter 4.

1.3 E-Government versus E-Governance While the terms ‘e-governance’ and ‘e-government’ are often used interchangeably, the two terms bear different meanings. The confusion arose because over the last three decades ICTs have been used by governments for various purposes. Some of these purposes were directly related to efficiency and effectiveness in delivering a variety of services concerning different life events of key stakeholders. Another broad area where ICT was deployed was to make democracy function better. When the terms ‘e-government’ and ‘e-governance’ were coined, both usages were brought under its rubric. For example, the Internet is seen as a tool of empowerment of disadvantaged groups and rural communities (Smith 1997). Some experiments in infusing greater democracy and participation in the functioning of private sector companies through the use of tools of decision conferencing and electronic meeting

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Unlocking E-Government Potential

rooms have prompted new experiments in the use of similar tools in the context of citizen’s engagement in the governing process. Widespread access to the Internet has prompted some politicians to put forth ideas about direct democracy (Murray 1992). The Minnesota Electronic Democracy Project (MN E-D Project) was founded in July 1994 by Steven Clift to study the impact of new communication technologies on government organizations and the political process (Aikens 1996). Originally, the project was designed to create a place on the Internet for the public to access information from the candidates and about the candidates running for office in the upcoming state and national elections in November 1994. It had many features that collectively made the experiment unique: it was designed for the electoral process, it was based locally, it was organized by citizens and civic organizations, it sought to distribute political information directly from the candidates and it featured an interactive public forum. The most important was the preservation of the combination of the contacts created with candidates and the e-mail-based listserve for citizen dialogue in a hypermail archive at the Twin Cities Freenet. All such experiments within the local governments and political parties came to be collectively known as e-democracy and these were included within the scope of e-governance. As against such use of ICTs by elected members, e-government was seen as the use of ICTs in administrative functions (Clift 2003). After the World Development Report placed knowledge at the core of the development agenda, there has been much focus on the ‘knowledge society’ and the problems of digital divide (World Development Report 1998–99). Effectiveness of distance learning and experiments with computer-assisted learning in programmes have demonstrated the potential of ICT in promoting literacy, education and an opportunity for life long learning in remote areas.5 With the growth of the Internet within the educational system, new opportunities of virtual classrooms/degrees Like Programmed Logic for Automated Teaching Operations (PLATO), which began in 1963 with Control Data and the University of Illinois using a grant from the National Science Foundation to develop technology and content for a computer-assisted instructional system. 5

E-Government: Definition and Scope

9

have been demonstrated. Many governments have launched initiatives to connect schools with the Internet. Many nations have come to believe that unless they address the problem of a digital divide by expanding their Internet infrastructure, they will not be able to participate in the global economy and will further lag behind. Policies for the growth of the Internet and equitable distribution of access are being designed. For a while, all these uses of ICTs within the government to achieve different objectives and goals and associated policies for promoting the use of ICTs were being collectively labelled as e-government in some articles (Heeks 2004). Discussions in the earlier sections and in subsequent chapters are largely with reference to e-government. This section discusses the meaning of governance and e-governance so that some distinction can be made between the two terms. Given the history of confusion, it would be difficult to draw completely separate boundaries around the two. However, it is possible to establish that e-governance subsumes e-government. The concept of governance generally refers to the task of running a government or any appropriate entity for that matter. Governance is a broader notion than government. It involves interaction between the formal institutions and those in civil society. Governance refers to a process whereby elements in society wield power, authority and influence, and enact policies and decisions concerning public life. E-government is the efficient delivery of government services using emerging technologies like the Internet. E-governance uses these technologies to facilitate effective decision-making in the community. E-governance has been defined as an all encompassing term—the process of enabling transactions between concerned groups and the government through multiple channels by linking all transaction points, decision points, enforcing/implementation points and repositories of data using information and communication technologies, to improve the efficiency, transparency, accountability and effectiveness of a government (Srivastava nd). Definitions often miss out on the major distinction between e-governance and e-government. If e-governance is treated as the

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Unlocking E-Government Potential

use of ICTs to achieve good governance (see Figure 1.2) we can easily understand that e-governance focuses on processes whereas e-government is predominantly concerned with improving the outcomes in service delivery for all the stakeholders. Figure 1.2: Elements of good governance Consensus oriented

Accountable

Transparent

Participatory GOOD GOVERNANCE Follows the rule of law

Responsive Effective and Efficient

Equitable and Inclusive

Source: Author.

E-governance is a broader concept that encompasses the state’s institutional arrangements, decision-making processes, implementation capacity and the relationship between the government officials and public. It is the use of ICT by the government, civil society and political institutions to engage citizens through dialogue and feedback to promote greater participation in the process of governance of these institutions. For example, e-governance also covers the use of the Internet by the politicians and political parties to elicit views from their constituencies in an efficient manner or the ability of civil society to publicize views that are in conflict with the ruling powers. E-governance consists of two distinct but intimately intertwined dimensions: one, political, and the other, technical, relating to the issues of efficiency and public management. With some overlapping goals between the two, e-government can be viewed as a subset of e-governance and its focus is largely on improving administrative efficiency and reducing administrative corruption.

2 E-Government in the Context of Developing Countries Assessments made by some consulting companies indicate that e-government is in a nascent stage of implementation in both developed and developing countries (United Nations 2001). Government departments, in many developing countries, publish information on websites as a first step towards e-government. Many of these sites are poorly designed and the departments do not update or monitor the quality of information. Initially, the online publishing of information was targeted at attracting foreign investments, but as the Internet penetration grew in urban areas, many sites began to focus on delivering information and services to the citizens and businesses. A large number of developing countries from Asia and Latin America have implemented transaction-oriented e-government applications on a pilot basis. However, only a few of these pilots have been replicated on a wider scale. Table 2.1 enumerates documented case studies of e-government applications from different developing countries. The table lists countries where such applications have been developed and identifies a few benefits that have been realized. These applications represent the low hanging fruit: applications that deliver significant benefit and yet are not difficult to implement. This table is used as a basis for further analysis to understand the types of clients that have been served and purposes for which e-government applications have been built. This chapter also presents salient features of design and implementation and provides some idea of the costs of different projects. Finally, some key overall trends and future challenges are enumerated.

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Unlocking E-Government Potential

Table 2.1: Examples of application areas from different countries Application area

Examples of projects

1. Delivering citizen services Computerized in 10 states in India. Issue of record • See case on Bhoomi in Karnataka in Chapter 9 of rights of land and mutation of land (Case 9.1—Computerization of Land Records). records. Registration of property transactions.

Computerized in 11 states in India. • See case on CARD in Andhra Pradesh in Chapter 9 (Case 9.2—Computer Aided Registration of Deeds). • Also, see best case example: SARITA, Government of Maharashtra (India): Available at http://darpg. nic.in/arpg-website/bestpracticesingovt/sarita.ppt

Issue of driving licence and vehicle registration and checkpost administration.

Computerized in 12 states in India and several developing countries. • See ‘Description of computerized motor vehicles department’, Kerala. Available at http://keralamvd. gov.in/

Municipal services such as issue of birth and death certificate, payment of local taxes, etc.

• See case on Online Procedures Enhancement for Civil Applications (OPEN) in Seoul municipalities, in Chapter 4 (see Box 4.6); many municipalities in Latin America. • Also, see best case example: Citizen Facilitation Centres (CFC) of Kalyan–Dombivli Municipal Corporation (KDMC), Maharashtra, India: Available at http://www.iimahd.ernet.in/egov/ifip/ aug2007/kdmc.htm

Passport.

Computerized in several developing countries like Singapore and Malaysia. • Best case example: electronic passports in Malaysia: Available at http://www.stockholmchallenge.se/data/tamper_proof_electronic_p

Income tax online.

Brazil, Mexico and Chile • See case on Guatemala’s online tax administration (see Chapter 10—Case 10.1). • See case on ‘Chilean Tax System Online’: Available at http://unpan1.un.org/intradoc/groups/ public/documents/other/unpan022120.pdf (Table 2.1 contd.)

E-Government in the Context of Developing Countries

13

(Table 2.1 contd.) Application area

Examples of projects

Multiple services from local, state and national levels (bill payment, issue of certificates, tax collection).

• See case on citizen service centres in Brazil, Bahia: Available at http://unpan1.un.org/intradoc/groups/ public/documents/other/unpan022348.pdf • See best case example on e-Seva in Hyderabad, Andhra Pradesh: Available at http://www.apdip. net/resources/case/in07/view • See ‘Bangalore ONE’ in Karnataka, http://www. bangaloreone.gov.in/

Publishing budgets at central and municipal level, publishing project-wise expenditure, executing agency.

• Turkey, India—see case on the ‘Central Vigilance Commission’ website: Available at (http://unpan1. un.org/intradoc/groups/public/documents/other/ unpan022415.pdf). • See description of ‘Cristal: a tool for transparent government in Argentina in Chapter 4 (Box 4.1). • Panchayat websites in Karnataka, India. See website of Shimoga district in Karnataka, India: Available at http://shimoga.nic.in/

2. Delivery of services to business and industry E-procurement

Several developing countries like Brazil, Bulgaria, Mexico, Philippines and Chile. • See case on e-procurement in Mexico, Philippines and Chile in Chapter 10 (Case 10.2—Experiences from the developing world). • Also, see case on e-procurement in Andhra Pradesh, India: http://himachaldit.nic.in/ Casestudy-APeProcurement.pdf

New business registration.

Jordan, Jamaica, China. • Best case example: MCA21, India: http://www. mca.gov.in/MinistryWebsite/dca/aboutus/aboutus. html

Tax collection (sales tax, VAT and corporate income tax).

Gujarat checkpost, Cameroon, Chile and Mauritius. • See case on checkposts in Gujarat in Chapter 10 (Case 10.4—Computerized inter.state checkposts in Gujarat).

Customs online.

A total of 70 countries, including India, Philippines, Mauritius and Jamaica. • See case on Indian customs online in Chapter 10 (Case 10.3). (Table 2.1 contd.)

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Unlocking E-Government Potential

(Table 2.1 contd.) Application area Trade facilitation

Examples of projects Dubai, Mauritius, Tunisia, Yemen, Singapore. • See case on trade facilitation in Tunisia: Available at http://www1.worldbank.org/prem/premnotes/ premnote89.pdf • See best case example on trade facilitation in Singapore: Available at http://www.unescap.org/ tid/publication/t&ipub2327_annex2.pdf

3. Increased efficiency within government Use of e-mail and video conferencing.

Government offices in a large number of countries.

Document management and workflow for paperless operations.

• See case on CARING-Gov in Andhra Pradesh Sachivalaya, India in Chapter 11 (Case 11.1).

Integrated Financial Management System.

Computerized treasuries in Karnataka, Kosovo and Afghanistan. • See case on Khajane (online treasury computerization project, Karnataka, India): Available at http://www. iimahd.ernet.in/egov/ifip/dec2006/article3.htm

4. Integrated portals Information and transaction services organized by life events of citizens and businesses.

• US government’s official web portal: FirstGov. gov; Available at http://www.stockholmchallenge. se/data/firstgov_gov_u_s_governme • UK Online with all government departments fully online: Available at http://archive.cabinetoffice. gov.uk/e-envoy/reports-annrep-2002/$file/07.htm, see description at: http://archive.cabinetoffice.gov. uk/e-envoy/mediacentre-pressreleases-2002/$file/ 26feb02.htm • eCitizen, Singapore, user friendly citizen-centric portal, gateway to all government services: Available at http://www.ecitizen.gov.sg/; http:// unpan1.un.org/intradoc/groups/public/documents/ APCITY/UNPAN014668.pdf

Source: Compiled by the author.

E-Government in the Context of Developing Countries

15

2.1 Nature of Applications for Different Types of Clients The list of applications can be divided into three broad categories: (a) delivering information and transaction services to citizens, (b) delivering services to business and industry and increased efficiency within the government and (c) delivering services to internal clients (for example, employees in other departments). Some applications serve both citizens and businesses such as the online tax payments.

Delivering Services to Citizens The largest number of applications have been built for service delivery to citizens. Agencies which collect taxes from citizens have been quick to embrace e-government. Departments with regulatory functions have also made early moves, while developmental departments, such as education and health, have been slow. A large number of applications have been built to issue certificates and licences and often a fee is charged for such services. One of the reasons may be that the informational content for regulatory service makes them more amenable to electronic delivery. Applications have been built at all levels of government—by local, state and federal level agencies. In developing countries most of these applications are at the second or third stage of evolution (see Figure 1.1). There are very few examples of integrated portals offering services from agencies: It is something that is more common in developed countries. Some of the direct benefits to citizens include lower costs of access, enhanced quality and greater convenience. Some countries have used e-government applications to reach out to communities that do not have easy access to government information. Many of these applications, done on a pilot basis, require government departments to invest a significant amount of time in developing content that is relevant and useful to the community needs. In rural South Asia and Latin America, a number of these applications have resulted in limited empowerment of

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Unlocking E-Government Potential

communities that previously could not acquire information, such as government rules or prices of agricultural commodities, either due to physical distance or corruption. A number of governments in Asia, Latin America and Central and Eastern Europe are using the Internet to increase accountability through publication of budgets, civil servant assets and notices of procurement awards and procedures. Providing this kind of information online has increased the transparency of government spending and operations and also enabled civil society to monitor government performance and activities better.

Delivery of Services to Business and Industry Tax collection, customs and e-procurement have been popular and therefore quickly embraced by many governments in developing countries as they are often perceived to be more prone to corruption. Tax collection agencies also present opportunities for enhancing revenue collection—something that is attractive for most governments. Investments in such systems tend to have a quicker payback because of increased revenue collection. Businesses are also quick to use these services because they are provided with an easier and hassle-free channel to interact with the government. Businesses are often burdened with significant administrative road-blocks when interacting with the government. Rules can be made transparent and consistent across departments. A number of countries have implemented online business registration and trade facilitation systems at ports and customs to become more business friendly.

Increased Efficiency within the Government E-government can lead to higher productivity by interconnecting different government agencies and different offices of an agency, enabling them to improve communication by sharing data and documents. Integrated Financial Management Systems have

E-Government in the Context of Developing Countries

17

been implemented by a large number of countries by networking treasuries at different locations. Significant reduction in costs (of paper, storage space and processing time) can result from a paperless environment in which electronic documents flow across workstations for approval and action. Reduction in the administrative burden of decision-makers is a very significant benefit as it releases time for important issues of policy and decision-making. Applications that focus entirely on internal efficiency are limited, primarily because these are difficult to implement as they encounter resistance from a well-entrenched civil service.

2.2 Challenges in Design and Implementation The most severe challenge faced by the developing countries is the inadequacy of ICT infrastructure. Most government agencies operate with manual systems and procedures, making the digitization of archived data a mammoth task. Departments are not interconnected as the networking infrastructure is weak outside the capital cities and large urban centres. Internet penetration is low and access to broadband is limited. Some countries, like India, which have adopted e-government as a national priority, are fast building such infrastructure. Fortunately, the penetration of mobile phones has ramped up very well in many developing countries but e-government applications have not yet exploited the mobile phone as a mode of delivering some types of services. Many developing countries have adopted a creative approach in designing e-government applications to overcome the digital divide and lack of resources. As a result, e-government applications are quite different from similar applications in industrialized countries where the delivery model is based on self-service through the Internet. Often, the design is built around assisted delivery at community service centres, and the process of delivery is a hybrid of automated and manual processes. For example, the payment processes in most developing countries are not electronic, Chile and Brazil being exceptions. Payments are still handled by

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Unlocking E-Government Potential

traditional means of cash, cheques and credit cards. In fact, in many developing countries, like Africa and South Asia, credit cards are not used by a majority of citizens. Government service counters are not connected to credit card processing bureaus, thus, verification cannot be done online. Most countries have, therefore, not implemented an electronic payment gateway. For specific applications, such as toll fee, stored value cards are being tried. New technologies, such as radio frequency identification have already found a few uses such as collecting toll fee from cars (Booth-Thomas 2003). Many more applications are likely to be found in the coming years. In the absence of countrywide policies on data standardization and data sharing, security provisions have not been adequately handled in designing systems. Surprisingly, privacy has not been a major issue for citizens in the developing countries. Governments are now recognizing the need for authenticating users (particularly in highly distributed environments). Security over networks is becoming an issue and the need for a certification authority is being felt. The task of integration across departments has been particularly difficult. As a result, applications that involve a few departments and deliver a specific service to a limited constituency have had the most impact. Consequently, local governments have shown the maximum potential. Amongst the countries that use languages other than English, some countries were quick to develop a local language interface for their applications. For example, the Middle Eastern countries that use Arabic have been very successful in developing a standard for the local language interface. Similarly, in Latin America the use of Spanish is well developed. Other countries, like Malaysia, adopted the Roman script for writing in their own language. In India, which has many developed languages, a standard for local language interface was slow to evolve. In general, the lack of resources and technical capacity has meant that e-government applications cannot be scaled easily. Also, there is a great deal of variability in the technical sophistication of e-government applications built in the developing countries. Nowhere is it more pronounced than in the large number of websites put up by various departments. Resource constraints

E-Government in the Context of Developing Countries

19

often force departments to use in-house software developers who are not up-to-date in their technical skills and tend to economize hardware/software purchase.

2.3 Investments in E-Government Costs of e-government projects depend on the initial conditions— whether the application is built from scratch replacing an existing manual system or an extension of an existing computerized system. Major cost elements are hardware and software at the back-end, data conversion, training and maintenance and communications infrastructure to link the public access points to the back-end. Costs vary quite dramatically according to scope and scale of application. Projects involving web publishing may cost in thousands of dollars (20 to 200), whereas online service delivery portals for a country takes millions of dollars to build. Table 2.2 indicates that the cost of a typical project may vary from USD 50,000 to USD 80 million. Most projects were done at a low cost because the design of these projects done at local/state level is simple: it does not involve any integration. Investment in e-government is relatively small in comparison to other types of development programmes or infrastructure project. For example, in India, the total expenditure to implement the National Rural Employment Guarantee Act for the year 2007–2008 was USD 419 million.1 However, comprehensive national programmes can be costly as in the case of the National e-governance plan (NeGP) in India. Given the low rates of Internet penetration, developing countries have to invest heavily in creating the infrastructure for citizen access. The cost of building applications that will deliver services through these centres would be separate. The cost of building e-government applications also depends on whether the software is developed or an existing packaged solution is used. Unless inexpensive software developers are available, as in India and China, it is often more costly to make the software The currency exchange rate of Rs 42 to a USD 1 was applied to convert the amount of Rs 1,783 crores reported in the NREGA (NREGA). 1

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Unlocking E-Government Potential

than to buy it. Consultant services for re-engineering and change management can also be expensive if they have to be sourced from large multinational firms, which is often the case as such capabilities do not exist in developing countries.2 Capacity, both to build and manage software, is a key consideration. Mistakes made in software design can lead to high expenses for correction Table 2.2: E-government project investment Project

Current/projected investments ($)

National E-governance Programme, India

50 billion (spread over six years) 53 million 81.14 million 8.5 million 27 million 26 million 12 billion 2.70 million 4 million 3.7 million 4.3 million 4.5 million—(for the first phase) 5.88 million 35.28 million 55.8 million 13 million 1.8 million

e-Lanka, Sri Lanka Department of Company Affairs MCA 21 Treasury Computerization-Karnataka Customs Modernization, Philippines E-procurement, Korea E-procurement, Andhra Pradesh Computerization of Commercial Taxes Computerized Interstate Checkposts Bhoomi Online Land Title Registration AP CARD Online Services e-Seva, Andhra Pradesh Ahmedabad Municipal Corporation e-panchayat, Gujarat Tax System in Thailand Mandals Online Citizen Service Centres Poupatempos

Source: Compiled from investment amounts mentioned in various case studies written by authors. Note: Values in Indian rupee converted into USD as per the exchange rate of 1 USD = 42.517 INR, as on 16 May 2008. Change management can be viewed from two perspectives—from those implementing the change and from the recipients of change. Basically, they are the processes and steps that an organization undertakes to manage change. There are two dimensions of change management that must be incorporated in any strategy: the top-down managers’ perspective and the bottom-up employees’ perspective (see Business Process Reengineering Online Learning Centre nd). 2

E-Government in the Context of Developing Countries

21

in the future. A balance between software alternatives—open source and proprietary platforms and applications—can provide avenues for reducing costs.

2.4 Reasons for Implementing E-Government A major goal of e-government projects in developed economies is to enhance productivity of both the public and private sectors through the leveraging of ICT. E-government has captured the interest of developing countries. There has been a considerable demonstrative effect of the well publicized large projects of e-government in advanced economies in the delivery of services, provision of information and internal administration of the public sector. Many developing countries that have developed significantly in building IT applications feel that they can leap to take advantage of the new electronic channels that are available for delivering government services. The reasons for investing in e-government are quite diverse. A country’s ICT infrastructure and its openness to public sector reform play an important role in determining the types of applications and kinds of goals for which e-government is implemented. Countries that have an advanced ICT infrastructure invest in e-government because they are faced with a population that expects the government to provide services at the same rate of efficiency and speed that is offered by the private sector. Citizens in developing countries are experiencing a significant improvement in service levels in e-commerce, vis-à-vis the private sector. They feel that if the private sector can make systematic improvements in service delivery, why can the government not use the same technologies? Thus, citizens in some countries are, in fact, asking the government to go online. Yet, other countries are focusing on improving the efficiency of the public sector to increase economic competitiveness. A number of countries have invested in e-government applications that aim to reduce administrative burdens on the private sector and increase foreign direct investment. Governments are also

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Unlocking E-Government Potential

using e-government applications to encourage citizens to move towards self-service to save cost and time for both citizens and the government. Countries, where external accountability institutions are being strengthened, often use e-government tools to augment basic democratic principles such as citizen participation, fundamentally altering the contours of democracy and how citizens interact with the government. These governments involve their citizens in deciding the kind of services they should offer and the platforms through which these can be delivered. Other countries, after experiencing early successes, wish to be pioneers in the e-government field. These successes are a source of pride. For example, Brazil launched an electronic voting system. They are proud that it is a better system than that of the United States. There is a competition taking place amongst developing countries and also with developed countries, which spurs the development of new applications. In the last decade, many countries have gone through a process of political and economic liberalization and economic growth under advice from multilateral lending agencies. Many large countries, like India and China, have grown at 8 to 10 percent over the last decade. Having completed the first phase of economic policy reform, such countries are now under compulsion to move to the next phase of reform in the field of governance. Governance reform agendas have included e-government pilots that aim to reduce corruption, increase transparency and quality of service. When e-government has been used towards a specific governance goal that is backed by political leadership, it is seen as an effective tool for governance reform by these countries. Increasingly, governments in the developing world seek to tie e-government with their overall economic and social development goals. For example, in India, alleviation of poverty is an important goal and, therefore, many applications that deliver services online in rural areas are being tried out in spite of numerous infrastructural constraints. These applications have an effect on empowerment, poverty reduction and improving government responsiveness to poor communities who have had little

E-Government in the Context of Developing Countries

23

prior access to public services. Bhoomi (Case 9.1) in Karnataka, India is a striking example where land titles are delivered online to millions of farmers in 15 minutes instead of the earlier practice where bribes had to be paid and it took weeks to obtain a land title. In other cases, knowledge relevant to economic activities is being delivered to communities in local languages through rural Internet kiosks. In Latin America, corruption has been a key public issue and, therefore, e-procurement and transparency in public spending have been emphasized. A number of e-government projects in other countries have also focused on the reduction of administrative corruption and increase in transparency. E-government can have a direct impact on (a) reducing the number of intermediaries that citizens need to interact with in order to get a government service, (b) improving government ability to monitor, and (c) disclosing information about government processes and public budget spending to citizens. Increasingly, governments would like to use e-government as a tool to enhance transparency and reduce corruption, although this goal is sometimes not stated publicly as it may create resistance within the civil service. A country’s willingness to adopt basic public sector reform must determine the breadth and scope of e-government applications. Many times, e-government applications are used as a catalyst and enables further reform. E-government projects are funded with the expectation that these applications will increase efficiency and bring about more transparency and accountability to citizens. Success in reforms is directly linked to the openness of a government and its interest in pursuing basic reform goals. For example, many e-government applications would be incompatible with a regime that does not promote increased access to information. Several e-government projects have failed because they were not aligned with realistic expectations and the willingness of governments to introduce basic reform. It is critical that e-government projects become more closely aligned with the political context of a country and its pace of reform. A reform agenda needs to be encouraged more broadly and e-government cannot be perceived as a panacea or the driver of reform.

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There is a real danger that some governments may wish to appear to be modernizing and may implement e-government without making any serious attempt to reform government’s functioning.

2.5 E-Government Readiness of Countries A useful indicator to understand the current status of e-government in a specific developing country is to compare its e-government readiness rank with countries that are known to be leaders. There are many different e-government readiness indicators that are published. The UNPAN indicator (UNPAN 2008) is published every year, it is used here to analyze trends. Table 2.3 presents the performance of 21 countries (covering the entire spectrum of development and ICT infrastructure) as a useful benchmark. Australia, Canada, US, France and the Republic of Korea are ranked very high in telecommunications infrastructure and e-government readiness. Developing countries in South Asia rank lower on both these indexes and China, Philippines, Vietnam and Thailand are somewhere in the middle. However, in web presence and e-participation, the two measures that indicate existing e-government activity, India has done as well as the middle rung country. The use of community service centres as opposed to individual access by citizens in India seems to have enabled India to overcome the handicap of poor performance in telecom infrastructure index. Table 2.3: E-government readiness of countries

Index

Rank

Telecommunications infrastructure index2

0.7525 0.3512 0.7659 0.5084 0.8294

9 NA 8 47 5

0.6884 0.0246 0.6966 0.1600 0.5992

Web measure assessment1 Country Australia Bangladesh Canada China France

Index

Rank

E-gov. readiness rank

0.8864 0.1364 0.6136 0.4773 0.9318

5 78 11 20 3

8 142 7 65 9

E-participation3

(Table 2.3 contd.)

E-Government in the Context of Developing Countries

25

(Table 2.3 contd.)

Index

Rank

Telecommunications infrastructure index2

0.5753 0.4783 0.3344 0.7425 0.6756 0.4214 0.2876 0.4247 0.5117 0.8227

33 54 NA 10 17 NA NA 70 45 6

0.6164 0.0435 0.0702 0.6232 0.3022 0.0911 0.0119 0.0540 0.1006 0.6886

0.1591 0.2500 0.0455 0.6136 0.2955 0.2727 0.0227 0.0909 0.2727 0.9773

74 49 135 11 41 47 152 98 47 2

22 113 106 11 34 82 150 131 66 6

0.6120 0.3946 0.5050 0.6923 0.9532 0.4448

25 NA 50 16 3 63

0.5853 0.0656 0.1510 0.7022 0.6663 0.1081

0.6364 0.0682 0.2955 0.4318 1.0000 0.5227

10 116 41 25 1 16

23 101 64 10 4 91

Web measure assessment1 Country Germany India Indonesia Japan Malaysia Mongolia Nepal Pakistan Philippines Republic of Korea Singapore Sri Lanka Thailand UK USA Vietnam

E-participation3 Index

Rank

E-gov. readiness rank

Source: Compiled from UN Global e-Readiness Survey (UNPAN 2008). Notes: 1 The web measure survey assessments were based on a questionnaire which allocated a binary value to the indicator based on the presence/ absence of specific electronic facilities/services available. The primary site was the national portal or the official government homepage of the member states. Where no official portals were available, other governmental sites were assessed. The web measure index provides the member states with a comparative ranking on their ability to deliver online services to their citizens. 2 The infrastructure index is calculated on the basis of the Internet index, PC index, cellular index, main telephone lines index and the broadband index. 3 In total, 21 citizens’ informative and participatory services and facilities were assessed across 189 countries, in instances in which these services and facilities were online and where data was available. The e-participation index assesses the governmental implementation of products and services concerning e-information, e-consultation and e-decision-making.

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Unlocking E-Government Potential

2.6 Status of E-Government in India The extent of electronic delivery of government services in India is commensurate with India’s position in the readiness ranking produced by several agencies. At the end of 2008, the bulk of the individual tax payers will file their taxes on paper returns although many other tax related transactions, such as the taxes deducted at source, may be processed and reported electronically. The bulk of the new passport applications will be made manually and processed manually with piecemeal computerization at the back-end. The bulk of the import/export way bills of cargo handling agents will be processed on a computerized system although the extent of integration of the customs system with other trade facilitation partners (shipping, ports, banks) is still weak. Nearly all the new company registrations and old companies that file statutory reports with the department of company affairs will do the same online. So, in terms of the national agencies dealing with citizens and businesses, the extent of electronic delivery is still limited. At the state level, 3–4 agencies (transport department, land records and registration of property transactions) have started delivering services online but at the departmental counters. A recent assessment by the Department of Information Technology (DIT), Government of India, indicated that 10 states have computerized the delivery of these services covering the entire state. There are a dozen other departments which deal with citizens and businesses, where the delivery is entirely manual. At the urban and rural local government levels, perhaps less than 5 percent of the agencies have computerized delivery of services. The focus of e-government, till now, has largely been on urban areas. Creating access points in rural areas which have connectivity is a key challenge. The bulk of the applications were driven by reformist civil servants without much central coordination. A large number of government departments across all states have their websites. However, publishing information online has not had the kind of impact it was expected to create. In most states, citizens are not ready to engage in a dialogue on how they should

E-Government in the Context of Developing Countries

27

be governed. Intermediaries (non-governmental organizations, grassroots organizations and the media) are often required to generate a debate on public issues to draw in citizens. The total cumulative investment in e-government so far is of the order of USD 2 billion. Given the size of NeGP at USD 50 billion, India has just begun its journey of e-government. In summary, if India’s experience could be generalized to many developing countries, most countries have a long way to go in terms of the scale and scope of their e-government implementation. The impact is not assessed through independent evaluation. The largest number of applications has been built for service delivery to citizens. Tax collection, customs and e-procurement have been popular and quickly embraced because they create more efficient means to collect revenue: this is critical for governments that are cash constrained and cannot enforce payment. Departments with regulatory functions have been quick to embrace e-government while developmental departments such as education and health have been slow. There is a large urban/rural ICT divide that forces governments to adopt creative approaches to delivering services over ICT channels to communities with uneven access to ICT networks. Community centres with operator-assisted online counters have been the most popular mode of delivering services.

2.7 Key Challenges in Further Development of E-Government Box 2.1 summarizes the status of e-government and some key challenges in the further development of e-government in developing countries that emerge from the discussion in this chapter.

28

Unlocking E-Government Potential

Box 2.1: Challenges in further progress of e-government in developing countries 1. 2.

3.

4.

5. 6.

7.

Very few government agencies have been covered. Expanding the scale of e-government to cover more agencies and larger population is a key challenge. Most of the applications are at the second stage of evolution converting manual delivery to a delivery from a computerized departmental counter. Often, only part of the delivery process is computerized. Even though such systems deliver value to citizens, the full potential can be harnessed by expanding the scope of the application and moving towards delivery through common service centres. There is a large urban/rural ICT divide that forces governments to adopt creative approaches to delivering services over ICT channels to communities with uneven access to ICT networks. Community centres with operator-assisted online counters have been the most popular mode of delivering services. Expanding the coverage of such centres in rural areas is a key challenge. Sharing data, scalability of key operations and security concerns have not been adequately reflected in design. So far, privacy has not been a major issue for citizens in the developing world. However, with the expansion of e-government and more integration and web-based delivery, security issues will become important. The task of integration across departments has been particularly difficult. There are hardly any integrated applications. Absence of a unique citizen identity card/number hampers integration. Existing applications have impacted the cost of access for citizens. However, the impact on transparency and corruption has been low. It is easy to show the impact when moving from manual to computerized systems, but further impact will come from constant innovation. E-government has to be seen as a process of continuous reform, rather than a one-time project. A large number of government departments across all countries have their websites. However, publishing information online has not had the kind of impact it was expected to create. In most countries, citizens are not ready to engage in a dialogue on how they should be governed. Intermediaries (NGOs, grassroots organizations and media) are often required to generate a debate on public issues to draw in citizens.

3 Potential Benefits of E-Government for Key Stakeholders There are three broad stakeholders who are impacted by the introduction of e-government: citizens/businesses who access services, agencies that deliver services and employees of the agency. Positive impacts may be considered as benefits. E-government helps in reducing the cost incurred by the citizens and businesses for obtaining services from the government agencies. Citizens need to spend less effort in finding out how a service can be obtained because such information is available on the websites (publishing rules and procedures). Services can be accessed from homes/offices or delivered to conveniently located service centres. Citizens have better documentation for follow-up action. Quick processing time reduces the total time of transaction and reduces waiting periods. This also involves fewer visits to government departments. Improving service delivery to citizens helps increase the all round productivity by diminishing time wasted in commuting, standing in queues and seeking information. In a longer time frame, e-government can subtly shift the balance of power between the service providers and clients. In many countries, e-government has made governments more citizen-centric. Several portals organize information and services according to the clients’ needs (SINGOV online) and not according to the government department structure. E-applications enable greater participation of citizens leading to their empowerment. For example, it is easy to strengthen feedback on services. Collection of statistics on performance in service delivery also becomes easy. This data can also be made public.

30

Unlocking E-Government Potential

Departments/agencies that implement e-government may be able to collect more taxes, prevent fraud, reduce costs and be able to cope with growth in transactions. By automating routine clerical work, staff time is released for more substantive tasks. Employees can get better information for monitoring and decisionmaking. Table 3.1 lists various benefits for different stakeholders that are targeted by the designers of e-government applications. It is important to understand the conditions under which potential benefits can actually be realized. Realization of the benefits would depend on the manner in which the applications are designed, the mode of delivery of service and the extent to which basic processes were reformed. The chapter highlights examples where Table 3.1: Potential benefits through e-government applications Stakeholders Citizens and businesses

Civil servants

Government agency

Source: Author.

Potential benefits Improving service delivery • Shorter elapsed time for completing transactions. • Reduce costs of accessing service. • Improve quality and convenience. • Enhance geographic coverage to reach larger segment of population. • Less corruption. Improving performance • Increase the ability of managers to monitor task completion rates of civil servants. • Improve efficiency of civil servants by automating tedious work. Improving government finances • Reduce unit cost of transactions. • Increase revenue: tax and non-tax. • Prevent fraud and leakage in revenue. • Improved control of corrupt practices. • Provide better control of expenditure. • Increase speed and efficiency of inter-andinter-agency workflow and data exchange. • Eliminating redundancy of staff. • Ability to cope with growth.

Potential Benefits of E-Government for Key Stakeholders

31

e-government has delivered concrete benefits to citizens, businesses and the implementing agencies. The necessary conditions that can enhance the realization of benefits are discussed. The next section presents the results of a systematic study that measures the impact of e-government from the viewpoint of the users in terms of the cost of access and the quality of delivery of services.

3.1 Benefits for Citizens: Results from an Impact Assessment Study Many projects from different countries report shorter elapsed time to complete a transaction from application to the final delivery of documents (see Table 3.2). These gains come from reducing the number of steps involved, making each step more efficient and reducing the number of agencies that need to be consulted. Assessment studies of citizen impact of 36 e-government projects in 12 states in India, focusing on three services delivered to citizens, issue of copies of land record, registration of property and issue of driver’s licence (DIT 2008), report improvements in a number of indicators that determine the cost of accessing a service. The study engaged 11 market research agencies. Each agency was assigned the three projects in a given state in which they surveyed nearly 800 citizens being serviced by 16 service delivery points for each project. The survey captured the experience of using the manual and computerized modes of delivery for each service. Study results indicate an abysmal state of delivery of services in the existing manual system in all the three types of projects. Users need to make 3–4 trips to the government offices on an average (up to eight trips in some cases), wait for two hours or more (up to six hours in some cases) in each trip and pay frequent bribes (20–50 percent of all transactions) to get services. Even in a simple service, such as issue of a copy of land record, the elapsed time (submission of the application to the receipt of document) averaged five days. For property registration and drivers licence, the average time (over 12 states) was 33 and 23

32

Unlocking E-Government Potential Table 3.2: Examples of reduction in elapsed time

Country

Type of government application

Number of days to process before application

Number of days to process after application

Brazil

Registration of 29 documents

Several days

20–30 minutes per document, 1 day for business licences.

Chile

Taxes online

25 days

12 hours

China

Online application for 32 business services

2–3 months for business licence, several visits to multiple offices for filings.

10–15 days for business licence, several seconds for routine filing for companies.

India—11 states

Registration of property

33 days

13 days

India—5 states

Change (mutation) of land record

73 days

40 days

India—12 states

Issue of driver’s Licence

23 days

15 days

India

Registration of new company

15 days

1–5 days

Gujarat, India

Inter-state checkposts for trucks

30 minutes

2 minutes

Jamaica

Customs online

2–3 days for brokers 3–4 hours to process entry

Philippines Customs online

8 days to release cargo

4 hours–2 days to release cargo

Singapore Issue of tax assessments

12–18 months

3–5 months

Source: Department of Information Technology 2007, 2008; Bhatnagar 2000, 2001, 2007.

days respectively. In some states, the elapsed time was as high as 2–3 months. The need for reforming the delivery system is beyond doubt. The question is whether e-government can help make the system more citizen-friendly. Figure 3.1 presents a comparison of the average number of trips that were made by users in different

Potential Benefits of E-Government for Key Stakeholders

33

Source: Department of Information Technology 2008.

MP

WB

Punjab

Kerala

Punjab

MP

Kerala

WB

Uttarakhand

TN

Manual System Computerized System Statistically Insignificant Statistically Insignificant

Rajasthan

Orissa

HP

Haryana

WB

Uttarakhand

TN

Rajasthan

HP

Orissa

Manual System Computerized System

MANUAL SAVING 3.48 1.03 3 OUT OF 12 AT OPTIMAL LEVEL

Delhi

Uttarakhand

TN

Rajasthan

Orissa

HP

Haryana

Gujarat

Haryana

Delhi

Gujarat

10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0

Manual System Computerized System

MANUAL SAVING 4.02 1.16 2 OUT OF 11 AT OPTIMAL LEVEL

Gujarat

PROPERTY REGISTRATION

10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0

MANUAL SAVING 3.16 1.15 4 OUT OF 10 AT OPTIMAL LEVEL

Delhi

LAND RECORDS

10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0

TRANSPORT

Figure 3.1: Number of trips required for availing service across all three applications

34

Unlocking E-Government Potential

states for obtaining different services in the manual system and the computerized system. Citizens incur travel costs and waste precious time in making frequent trips to government offices to complete service transactions. In the manual system, in most of the states, 2–3 trips are required to get a Record of Right (RoR) issued. In three states, more than three trips are required and in one of them, six trips are needed to be made to get an RoR. Only two states do it in less than two trips. Computerization seems to have helped a great deal, reducing 1.15 trips from an average of 3.16 trips in the manual system. In fact, in five out of the 10 states, the number of trips after computerization averages 1.2. Considering that at least one trip to the service centre is necessary, in these five states, an ideal condition has been reached. On the other hand, in Orissa and Madhya Pradesh (MP), users need 3–4 trips for collecting an RoR even after computerization. In MP the average number of trips has gone up after computerization. These states need to investigate the reasons and strive to reduce the number of trips to around one. The cost of each trip averages about Rs 20. This cost can be further saved if the RoRs can be issued at Internet kiosks located close to the villages where the users reside. In the manual property registration, users in seven states needed 4–6 trips to complete the transactions. Only in three states could the transaction be done in 2–3 trips. After computerization, the average number of trips across all states has come down by 1.16 from 4.02 in the manual system. In eight (out of 11) states, the transaction can be done in nearly two days. Orissa, Gujarat and Haryana require 3–4 trips even after computerization. In the manual issue of driver’s licence in nine (out of 12) states, nearly three trips are required to obtain the service. In Haryana, seven trips were needed to obtain the service. With computerization, one less trip needs to be made. In eight states, the work can be completed in two trips whereas in three states, it needs nearly three trips. The study suggests that almost under any condition, moving from manual to computerized delivery at departmental offices, it

Potential Benefits of E-Government for Key Stakeholders

35

can cut down one trip for the user. The cost of a trip is roughly Rs 20–30. It should be possible to complete the transaction in one trip in transport and property registration even when paper documents need to be submitted. If the complete service—submission of documents, payment and delivery of document (by courier in case of paper/plastic documents)—could be made available online, more, if accessed from the users’ homes, then no trip would be needed. Overall, in all three types of services, there has been some improvement in various service levels indicators that were measured (see Table 3.3). The waiting time has been reduced by 20–40 percent. Reduction in time elapsed between an application for a service and its final delivery (example, a document being delivered) is important from the point of view of the clients. The RoR delivery is immediate in most of the states. In case of property Table 3.3: Impact on key dimensions averaging over all states Land record Number of trips Waiting time (minutes) Total elapsed time (days) Error rate (%) Service quality score (five–point scale) % preference for computerized system

Property

Transport

M

C

Change

M

C

M

C

3.2

2.0

1.2

4.0

2.3

1.7

3.5

2.4

1.1

127

91

36

132

76

56

122

91

31

11.0

5.5

5.5

32.5 12.9

19.6

22.7 15.4

7.3

4.2

3.9

0.3

6.3

3.2

3.1

4.4

3.4

1.0

3.0

3.9

0.9

3.0

4.1

1.1

2.8

3.7

0.9

91.0

Change

95.7

Source: Department of Information Technology 2008. Notes: M stands for manual. C stands for computerized.

87.8

Change

36

Unlocking E-Government Potential

registration, computerization has significantly reduced the elapsed time from an average (across all states) of 33 days to 13 days, which is a 60 percent reduction. In transport, the impact is much smaller and in four states, the elapsed time is one month or more even after computerization. Perception of quality-of-service and governance shows an allround improvement. As seen in Table 3.3, in all the three applications, the overall perception of service quality has improved with computerization by about one point on a five-point scale. This represents a significant improvement of one notch—from ‘satisfactory’ to ‘good’ or from ‘good’ to ‘very good’. An important component of service quality is the error rate which can be measured directly. All the three projects reported a reduction in error rate with property registration halving the proportion of errors from 6 percent to 3 percent. Citizens indicated an overwhelming preference for computerized service delivery. Direct cost savings to citizens averaged from Rs 50–90 in the three projects across all states. In five projects, the cost went up significantly after computerization. Computerized service delivery in all the three projects is in the early stages of evolution. For example, in most states, land record computerization has been limited to the issue of RoR. Mutation, which is a more complex process, has been computerized in just five states. No state in India has reached an evolved stage in land record computerization which integrates the functioning of three related agencies—revenue department where land records are maintained, survey department where maps of land parcels are maintained and registration department where deeds of sale/purchase of land are registered and maintained. There is a great deal of difference in the performance of the best and the worst state in case of each of the three computerized applications. Given the fact that the processing steps in the delivery of the three services can be very similar across states, there is no explanation for the variation in performance, other than the varying quality of design and process reform in these systems. Each state has chosen to design its application without learning from best practices elsewhere.

Potential Benefits of E-Government for Key Stakeholders

37

Possible reasons why the number of trips is abnormally high in a few states are that such states have not cut down on the number of supporting documents that are required to avail a service. For example, in the case of property registration in Orissa, a large number of documents are required as proofs of ownership of property that is being transferred, whereas in other states this requirement has been trimmed. There has to be a balance between ensuring that a system prevents fraudulent transactions and the burden that extensive checks can place on honest people. Often information about the required documents for registration of property or issue of licence is not publicized well. Users need to make a trip to the agency just to determine the requirements. Alternatively, users prefer to go through agents as they know the requirements. Some times users make unnecessary trips as they find that on a given day their work will not get done because of long queues. This is because the capacity to process a service request and the demand for service may not match on many days. Some states like Gujarat have adopted the practice of building an appointment system through a web portal or phone to take care of such a problem. Whenever there is a mismatch in demand for service and capacity to handle the service request, the system of orderly queues breaks down. This can also happen because of equipment breakdown. Such opportunities are used by touts to get work done by paying speed money. In other cases, functionaries have unnecessary discretion to delay or deny a service without assigning a reason. Very often, there is no specified order in which service request should be processed. Functionaries abuse their discretion in all these cases to seek rent. In some cases, a particular step in the workflow of processing a service becomes a bottleneck. For example, the requirement of inspection of property before registration can often delay the registration and provide opportunity for rent seeking. Some states like Andhra Pradesh and Karnataka have done away with prior inspection. A selective post inspection may be done to spot malpractice and punish the guilty through cancellation or fines.

38

Unlocking E-Government Potential

Most of the simple re-engineering principles like simplification and rationalizing of forms, putting in place an appointmentand-queue management system, post-inspection instead of preinspection, automated workflow enforcing a first-come-first-serve discipline, documenting the submission of an application and reasons in case the application is rejected, do have a significant impact on the number of trips, waiting time and bribes. Yet, in many projects, such a simple process reform is not undertaken.

3.2 Benefits for Businesses: Results from an Impact Assessment Study There are several areas where e-government can have potential economic impact. E-government can increase the competitiveness of a nation by reducing the costs of setting up and operating an enterprise. The costs of setting up an enterprise can be reduced by making the process of business registration, issue of a variety of licences and provision of services fast, efficient and corruption free. Corruption adds significantly to the cost of doing business and any lowering of corruption can make the industry more competitive. Through simplification of government rules and procedures and by increasing transparency in their implementation, the governments can reduce some amount of uncertainty for the investor. As we noted in Chapter 2, the primary objectives of some governments in implementing e-government is to enhance their image of being investor friendly. In India, the Department of Company Affairs launched a project called MCA21 which enables new companies to be registered and existing companies to file annual returns without having to visit the departments’ offices. All transactions (uploading document, making payments, accessing information and filing returns) can be done through their portal. See Box 3.1 for a description of the application and the concrete benefits delivered to businesses. Impact of two projects delivering services to business (eprocurement in Andhra Pradesh and inter-state checkpost in Gujarat) and one delivering services to government employees

Potential Benefits of E-Government for Key Stakeholders

39

of other departments (Khajane—computerized treasuries in Karnataka) was assessed in a study in 2006. The results show that computerized delivery reduced the cost of transactions for businesses by reducing wait time, number of trips and bribery (see Table 3.4). In the treasury application (Khajane), both Box 3.1: MCA21 e-governance project The MCA21 e-Governance Project was launched by the Ministry of Corporate Affairs (MCA), Government of India, as a pilot, at Coimbatore in February 2006, while the nationwide roll-out to 20 offices was completed by September 2006. MCA is primarily responsible for regulating the functioning of the corporate sector through administering rules and regulations framed under the Companies Act of 1956 and other allied Acts. Key services provided by the project are registration and incorporation of a new company, downloading of e-forms, annual and event-based filing of documents such as annual returns, balance sheets, profit and loss account statements, etc., payment of penalty and fees, registration, and tracking and redressal of complaints relating to shares, dividends, etc., filed against a company by an investor. Service delivery is done through three modes: the Virtual Front Office (VFO) or the MCA21 portal, which can be directly accessed by the citizen through the Internet from his/her home or office, 53 Physical Front Offices (PFOs) that have been set up across the country to ensure a smooth transition to electronic delivery of MCA’s services and about 550 Certified Filing Centres (CFCs) run by professional institutes like The Institute of Company Secretaries of India (ICSI), The Institute of Chartered Accountants of India (ICAI) and The Institute of Cost and Works Accountant of India (ICWAI), individual practising members and firms of professionals. While the PFOs provide services without any charge, the services provided by CFCs entail payment of pre-specified service charges. The cost of the project was Rs 3,450 million which provided for an implementation phase and an operations phase extending over six years from the start of the implementation. As of 30 November 2007, the portal had registered an average of 1.7 million hits per day, and about 3.4 million documents had been filed electronically. About 400,000 balance sheets and an equal number of annual returns have been filed by companies using the system. About 84 percent of the filings are made directly using the portal (VFO). Pending applications, which used to be 30–40 percent earlier, is now just about 10 percent. MCA21 has facilitated easy online access to documents by the corporate sector, research institutes, regulators and the (Box 3.1 contd.)

40

Unlocking E-Government Potential

(Box 3.1 contd.) general public for a nominal payment of Rs 50 for a period of three hours. Nearly 225,000 people have availed of this facility. A comparative picture of the time taken in delivery of services under the pre-MCA21 and postMCA21 scenarios is given: Service

Prior to MCA21

After MCA21

Approval of company name Company incorporation Change of company name Obtaining certified copy of document Inspection of public documents Registration of documents Annual return Balance sheet Change in directors Change in registered office address

7 days 15 days 15 days 10 days

1 to 2 days 1 to 5 days 3 days 2 days

Physical visit to RoC

Online

60 days 60 days 60 days 60 days

Instantaneous Instantaneous 3 days 3 days

The role of middlemen and agents was eliminated through MCA21 as they were no longer able to manipulate, replace or mishandle company documents filed with RoCs. The back-office application that takes care of internal processing of e-forms filed by the corporate user automatically routes electronic documents to the concerned MCA official based on the type of service request. The application, especially the electronic workflow system, has brought transparency and accountability in the working of the department, as well as speed and certainty in service delivery. All e-forms along with their attachments are stored in the electronic repository which the MCA staff can view depending upon access privileges assigned to them. This has enhanced their efficiency in technical scrutiny ensuring close follow-up on matters related to compliance and facilitating identification of defaulters. Source: Ministry of Corporate Affairs.

pensioners and government employees indicated a significant reduction in error rates. The quality of governance and quality of service were measured on a five-point scale. Both indicators improved with computerization. More significantly, bribes were

Potential Benefits of E-Government for Key Stakeholders

41

Table 3.4: Impact on key dimensions across three projects Khajane

Performance indicator Number of trips

Waiting time (minutes) Error rate (%) Improvement in service quality (five–point scale) Improvement in governance (five–point scale) % paying bribes % preference for computerization

Mode Manual Computerized Saving Manual Computerized Savings Manual Computerized

Manual Computerized

Drawing and Disbursing Officer e-Procure(DDO) Payee ment Checkpost 2.7 1.6 1.1 63.2 21.7 41.5 12.79 3.49 0.40

2.11 1.21 0.9 60.1 24.7 35.4 14.94 1.14 0.55

2.42 1.54 0.88 115.0 Nil 115.0 NA NA 0.27

NA NA NA 29.6 20.7 8.9 NA NA 0.57

0.70

0.61

0.38

0.88

0.00 0.00 NA

5.7 0.00 NA

14.5 2.7 83.7

20.4 14.2 91.2

Source: Department of Information Technology 2007, Bhatnagar 2007.

reduced or eliminated in two of the projects. The three projects are discussed in detail in Chapters 10 and 11.

3.3 Benefits for Agencies Implementing E-Government Applications E-government can make a significant impact on government finances. Leakage in government revenues can be plugged by making tax collection services efficient (incentive for tax payers

42

Unlocking E-Government Potential

to comply), providing tools for improved audit of likely defaulters and evaders and reducing collusion between taxpayers and collection agencies by minimizing opportunities for corruption. Investments in technology and operating costs for delivery of services can be passed on to a private partner who can recover the cost through a service fee. E-government can also help governments in expenditure control in a variety of ways. Transparent and efficient delivery of services connected with economic activity can stimulate production growth by correcting the incentive structure. For example, a fair payment system for procurement of milk and farm produce in rural areas, removal of intermediaries from the procurement process can provide the incentive for increasing investments in productive resources and improving yields (Chakravarty 2000).

Cost Reduction in Service Delivery The motivation to introduce e-government in industrialized countries is to save the high employee cost. The effort of entering data in records is shifted from employees to the users in e-governance applications and it works to the advantage of both parties. Such savings can accrue in the long run when services delivered through portals can be ramped up to cover a large proportion of the population. For example, Singapore’s income tax system has been able to cut manpower costs even in the 20th year of its operation (see Case 10.1). Even in developed countries, where Internet penetration is high, the proportion of citizens using portal for services is low when the applications are launched. In most cases, e-government becomes an additional channel to offer services. Until this proportion reaches a level when there can be some cut back in the number of personnel employed in delivering services through the traditional departmental channel or telephone, there will be little cost reduction. In fact, initially, the costs will rise on account of investments in organizing electronic delivery. In the developed countries, privacy and security issues seem to be holding the citizens back. In the developing countries,

Potential Benefits of E-Government for Key Stakeholders

43

the Internet penetration is very low. Even in urban areas, where this is high, there is an overwhelming preference for using service centres (see Case 9.4 on e-Seva). Table 3.5: Percentage growth in tax revenue and transactions Bhoomi Indicator

RTC

Tax revenues

NA

Mutation KAVERI NA

28.7

CARD 24.0

e-Seva AMC NA

44.7

Number of transactions

22.2

87.8

10.6

16.8

87.7

38.0

Source: Bhatnagar 2007.

Perhaps, the most concrete benefit of any computerization is the ability of an agency to cope with growth of transaction volumes. Table 3.5 indicates that yearly growth percent of transactions has been 10–87 percent in the five agencies that were studied. In all these agencies, the manpower remained static. Of course the employee cost in government is affected by broader policies on recruitment and salaries.

Control of Government Expenditure Many countries have implemented Integrated Financial Management Systems (IFMS) (Dorotinsky nd) to track and control payments made out of government treasuries. For example, the Karnataka has connected all its 215 treasuries through a satellite– based network (see Case study 11.2). Every payment is now centrally authenticated to ensure that a budget provision exists for the payment and that it is not exceeded. By reducing the error rate from 12.8 percent to 3.5 percent in processing payments to nearly 20,000 drawing and disbursal officers from all over the state, the system has enhanced productivity, as errors in 9.3 percent of the transactions do not need to be corrected any more. Similarly, for pensioners, 13.8 percent transactions do not need any correction. Of course this benefit to the agency is in addition to the benefit to the users. Experience suggests that it is difficult to implement IFMS as they are complex and need to be

44

Unlocking E-Government Potential

comprehensive in their scope to deliver concrete benefits. Inland Revenue Authority of Singapore (IRAS) has been able to save paper costs by continuously encouraging more tax payers to file online (see Case 10.1). Another strategy to control expenditure is to introduce paperless offices in large government departments. Few of these applications have been implemented. The Committed, Accountable, Responsive, Inspiring, Nationalistic and Genuine Government (CARING Gov) project (see Case 11.1) in Andhra Pradesh is an example where the entire state secretariat is being made paperless. The more potent savings through downsizing governments has not yet happened, however, because of the strong resistance from well organized unions of government employees. Some projects in Latin America have reported tremendous savings on rental of office space because of e-government applications. In India, many projects continue to hold paper records (even those which have been digitally archived) because the laws governing archives are not clear and as yet not e-friendly. E-procurement systems are often designed to save total cost of procurement. For example, savings have been reported through reduced advertising requirements, lower prices of procurement through more competition and reduced cost of paper work within procurement agencies and at the supplier end (see Case study 10.2 on e-procurement implementation in Mexico, Chile and South Korea). The government of Andhra Pradesh claims that use of e-procurement has lowered the amount spent on 1,212 projects, amounting to an estimated Rs 28,010 million, by 22 percent (Agarwal 2006). Savings on account of reduced advertising costs were Rs 2.5 million at the end of one year (see Case 10.2).

Collecting Revenues from Service Fee in E-Government Applications With a large push for public–private partnership (PPP) in implementing e-government, it is perceived that additional revenues

Potential Benefits of E-Government for Key Stakeholders

45

can be raised to set off investment and operational costs through a transaction fee charged for e-delivery of services. In some applications, this has been possible, but in other cases, a fee may not be acceptable. A fee that would be accepted by users can be charged if the application delivers direct economic value to the user that is significantly more than the fee. The framework discussed in Chapter 8 has to be used to ascertain the monetized value delivered to a user. When a user fee is only a small fraction of the total value of the transaction, people may find it easier to accept. Experience has shown that even rural poor citizens are willing to pay a reasonable fee for a useful service. There are a few examples, such as the Bhoomi project in Karnataka (see Case 9.1) where farmers pay a transaction fee of Rs 15 for receiving a signed copy of land title from an online kiosk. In the first year, 5.5 million farmers have collected the title, forking out nearly Rs 80 million which is half the cost of the entire project.

Growth of Tax Revenue The inefficient collection of taxes in many developing countries has led to the increasing use of ICTs in tax collection agencies. Moreover, corruption in the collection process leads to less money going to the government and a lack of public confidence in the system. Modernizing tax systems through e-government applications has been a priority for many countries. Through online tax filing and processing system, governments aim to reduce corruption and enhance transparency to create more public trust. In 2005, Chile’s tax collection increased by 19 percent to USD 19,981 million, reflecting higher economic growth and an effective e-filing system. Chile’s strategy of focusing the tax auditing on certain areas of higher evasion risk is showing its effectiveness. In the first semester of 2007, a record figure of USD 612.2 million was demanded as additional tax based on detailed scrutiny. Computerized inter-state checkposts in Gujarat, India, have resulted in a growth of 21 percent in the penalty collected on

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account of a 26 percent increase in the number of violations being detected between 2000–01 and 2004–05. In 2004–05, the penalty collected on account of violations of transport norms by commercial vehicles was Rs 2,872 million while paying back the total project cost of Rs 625 million in just one year of operation (see Case 10.4).

Employee’s Perceptions of Impact of E-Government Although it is widely believed that e-government will enhance employee performance because it permits better management and analysis of data, actual measurement of impact on employees is not easily available. A study collected data on perceptions of impact on costs, governance and work on a five-point scale, from 85 supervisors in the five projects in India (Bhatnagar 2007). Most supervisors considered that except for the employee and stationery costs, other costs like establishment and communication costs increased after computerization. None of the costs were perceived to have reduced. There was a strong perception of improvement in all dimensions of governance among supervisors (see Figure 3.2). About two-thirds of all respondents indicated significant positive impact on transparency, corruption and the level of discretion to deny services. Nearly half of the respondents indicated a significant positive impact on accountability, the presence of intermediaries and the effectiveness of the complaint-handling mechanism. There was a positive impact on the quality of information handling. More than two-thirds of the respondents perceived an improvement in the accuracy of data, traceability of transactions and effectiveness of disaster-recovery measures. Supervisors believed that their effectiveness in monitoring subordinates, decision-making and policy formulation had been enhanced. Most supervisors reported that the extent of re-engineering and integration of services was only moderate during the computerization process, yet the impact on achievement of overall organizational goals is perceived as being significantly positive. Somewhat similar results were reported from the tax agency in Chile. Both employees and supervisors rated the new work

Potential Benefits of E-Government for Key Stakeholders

47

Figure 3.2: Perception of supervisors about impact on agency (in percentage) 120

Impact on Governance

In Percentage

100 80 60 40 20 0 Transparency

Accountability

Level of corruption

Presence Unnecessary Discretion Effective- Compliance with citizens’ ness of to deny discretion of intercharter services complaint with mediaries handling employees

Role of Supervisors In Percentage

In Percentage

Improvement in Information Handling 120 100 80 60 40 20 0

120 100 80 60 40 20 0

Accuracy Traceability Effective- Effort in of data of transac- ness of generating tions disaster statutory recovery reports Increased Significantly

Increased Marginally

Moni- Decision Effectivetoring of support ness of subordipolicy nates formulation Same

Decreased Marginally

Work- Workload – load – Super- Subordivisors nates

Decreased Significantly

Source: Bhatnagar 2007.

environment as significantly positive, with ratings of most items above four on a five-point scale. For the employees, there are a number of perceived benefits. However, to realize these benefits so that overall organizational performance is positively impacted will require a strong managerial culture. Improved information systems do not automatically translate into better decisions or effective monitoring. Civil servants need to have the incentive to improve performance and the capacity to analyze and profit from new information that is available. They need to be trained to use information for purposes of planning and monitoring.

Conclusion Results from the assessment of many projects indicate that most benefits outlined in Table 3.1 have been realized in some

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project or the other. In fact, for users (citizens and businesses), an e-government project is very likely to reduce the number of visits to offices, waiting period and elapsed time. Case studies discussed in Chapters 9 and 10 indicate that the quality of conceptualization, design and implementation of the project determines the extent of benefits that are actually delivered. Chapter 5 explores these processes in some detail. Chapter 4 discusses the potential impact of e-government on transparency and corruption. Different agencies can hope to realize some benefit or the other in terms of lowering costs, improving quality and improving governance. Often, the least likely cost to be impacted is the employee cost.

4 Impact of E-Government on Transparency and Corruption E-government has been used by a number of public agencies as an enabling tool that can help achieve broader goals of improving governance. Some governments are beginning to link their public sector reform initiatives that pursue both social and economic goals with e-government strategies. E-government cannot be considered a magic bullet that can solve governance problems. When accompanied by the right mix of complementary initiatives in governance reform and tailored to specific institutional contexts, e-government applications have demonstrated meaningful impact on the governance and public sector reform goals given in Table 4.1. Through its pioneering surveys in recent years, the Transparency International (TI) has tried to gauge the extent of corruption in different countries, identify government departments where corruption appears to be most rampant and establish some reasons why it seems to grow (TI 2003). Consequences of administrative corruption are quite severe for developing societies. 1. Largest cost of corruption is borne by the poor. 2. Corruption raises the cost of doing business for small and medium enterprises by 20 percent. 3. Corruption is an irritant to investors and impedes Foreign Direct Investment flows. 4. There is a significant loss of revenue for the government. 5. Corruption creates a disincentive for honest and efficient employees and citizens.

50

Unlocking E-Government Potential Table 4.1: Goals of public sector reform through e-governance

Governance reform goals

Measure of achievement of goals

Increasing transparency

• Citizens can access and understand government rules and procedures to obtain a service. • Disclosure of public assets, government budget and procurement of information. • Citizens can access decisions of civil servants. • Proportion of transactions that need a payment of bribe. • Amount of bribes paid directly to civil servants or through agents. • Reduce costs of accessing service. • Improve quality and convenience. • Enhance geographic coverage to reach larger segment of population. • Provide channels for feedback and consultations. • Making governments more accountable. • Reduce the brokerage power of intermediaries.

Reducing administrative corruption

Improving service delivery

Empowerment

Source: Author.

6. Frequent payment of bribes by citizens increases tolerance for corruption; society begins to value wrong attributes. 7. Petty corruption can be organized to collect illicit funds for politicians. 8. Petty corruption opportunities lead to bigger corruption in appointments and transfers. Recent studies on the impact of e-government projects in India have reported a reduction in bribery in some projects, not all. These results seem to suggest that e-government can potentially impact administrative corruption in a significant way. The chapter highlights examples where e-government has delivered concrete benefits by increasing transparency, reducing corruption and empowering people. The necessary conditions that can enhance the realization of benefits are discussed.

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4.1 Results from a Study of Impact on Corruption This section discusses the results from systematic assessment studies of citizen impact of 36 e-government projects in 12 states, focusing on three services delivered to citizens: issue of copies of land record, registration of property and issue of driver’s licence. The study measured the proportion of users who had to pay bribes to get the service, the amount of bribes paid and the proportion of the user who engaged agents to get the service. The study engaged 11 market research agencies. Each agency was assigned all the three projects in a given state in which they surveyed nearly 800 citizens being serviced by 16 service delivery points for each project. The survey captured the experience of using the manual and computerized modes of delivery for each service. Figure 4.1 charts the proportion of users paying bribes for getting a copy of the land record issued in the manual and computerized modes of delivery. The chart indicates an abysmal state of delivery of services in the existing manual system. Incidence of bribery was very high. In the issue of Record of Rights (RoRs) bribes had to be paid in nine out of the 10 states in the manual system. Even in a simple service such as the issue of a copy of land record mostly required Figure 4.1: Percentage of users paying bribes in different states 100.00 90.00

In Percentage

80.00

MANUAL 38.36

SAVING 13.39

70.00 60.00 50.00 40.00 30.00 20.00 10.00 0 Delhi Gujarat Haryana

HP

Orissa Rajasthan TN Uttarakhand WB

Computerized

Manual

Source: Department of Information Technology 2008.

MP

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by poor farmers, on an average, Rs 50 had to be paid as a bribe by as many as 80 percent of the farmers in some states. After computerized delivery, the percentage of users paying bribes declined from an average of 38 percent to 25 percent over the 10 states. It is noteworthy that in five states there is a significant reduction in bribes. In the transport and property registration also the users needed to pay frequent bribes (20 to 50 percent of all transactions) to get services. However, computerization did not reduce bribery by any significant margin. A peculiar feature of these two services was the presence of agents. Nearly 50–55 percent of all transactions in the case of transport and property registration in all states were done through agents. Although the outcome in reducing corruption is mixed, egovernment seems to have the potential for significant reduction in corruption, as indicated by the fact that the need for bribes in the issue of RoRs has either been eliminated or significantly reduced in five states after computerization. Another study, carried out in 2006 which covered eight agencies (G2C and G2B) in three states of India, corroborates the results from the quoted study. The impact on proportion paying bribes was not uniform across projects, but in some projects, the reduction was significant (see Table 4.2). At least in three different projects—land record computerization in Karnataka (Karnataka was not covered in the study quoted in Figure 4.1), e-procurement in Andhra Pradesh (AP) and payment to pensioners by treasuries in Karnataka—bribes have virtually been eliminated. Since bribery has been impacted in a number of projects, it is worthwhile to explore the ways in which e-government applications can be designed to impact administrative corruption.

4.2 Improvement in Transparency through E-Government Two major factors that contribute to the growth of corruption are the low probability of discovery and perceived immunity against prosecution. Secrecy in government, restrictions on access

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Table 4.2: Proportion paying bribes: a comparison of manual and computerized delivery Proportion paying bribes (%) Project Issue of RoR, Karnataka Mutation of land record, Karnataka Property registration, Karnataka Online treasury, Karnataka—DDO Online Treasury, Karnataka—Payee Property registration, AP e-procurement, AP Multiple services—e-Seva, AP Ahmedabad Municipal Corporation Inter-state checkposts, Gujarat

Reduction after Manual Computerised computerization 29.7 33.8

0.8 0.7

28.9 33.1

34.3 0.0

21.6 0.0

12.7 0.0

5.7

0.0

5.7

28.0 14.5 0.4 3.4

23.7 2.7 0.0 0.8

5.0 11.8 0.4 2.6

20.4

14.2

6.2

Source: Compiled from Department of Information Technology 2007.

to information by citizens and the media, ill defined/complex and excessive rules and procedures and regulations can all lead to a low chance of discovery. A lack of transparency in the functioning of the government agencies can make it easy for the perpetrators to cover their tracks and unearthing corruption becomes very difficult. The weak character of institutions, which are supposed to investigate charges of corruption and prosecute the guilty as well as an inefficient or corrupt judiciary, further exacerbates the problem of corruption and facilitates immunity against prosecution. Moreover, lack of transparency induces the users of services to offer bribes in the hope of being able to manipulate the system in their favour. Other users find it difficult to deal with government systems that are ambiguous and complex, preferring instead to use agents to get their work done. Just the mere presence of agents can create a market for bribes.

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A few applications have demonstrated that e-government can serve as one of the key tools to fight against corruption by opening up government processes and enabling greater public access to information (Bhatnagar 2003). E-government systems can lead to greater transparency resulting in reduced administrative corruption.1 If the right procedures are in place, e-government can make financial or administrative transactions traceable and open to challenge by citizens. Those responsible for particular decisions or activities can be readily identified. By providing enhanced accounting, monitoring and auditing systems, e-government applications can ensure that public finances are fully open to senior managerial and external scrutiny. As the possibility of exposure of wrong doing gets enhanced, the fear of consequent embarrassment can be a deterrent to corrupt practices. There is an implicit hierarchy and sequentiality of objectives on which e-government applications must focus to reduce corruption. Increasing access to information, presenting the information in a manner that leads to transparency of rules and their application in specific decisions and increasing accountability by building the ability to trace decisions/actions to individual civil servants represent the successive stages in the hierarchy. All these objectives in tandem can curb corruption significantly and ignoring some of them can defeat the whole purpose. For example, numerous websites created by government departments are ineffective because they tend to focus on the single objective of providing electronic access to information. Not enough effort is made to ensure that transparency and accountability are increased.2 Table 4.3 presents the type of information where greater transparency can be enabled through e-government applications, Administrative corruption refers to the intentional distortion of prescribed implementation of existing laws, procedures and regulations to provide an unfair advantage to an individual or a firm in return of an illicit private gain to a public official (World Bank 2000). 2 Katherine Reilly (Reilly 2001) quotes an OECD (1998) study which reported ‘…many homepages have been mounted less for reasons of information and education than for reasons of prestige—to show that the government or department in question is ‘WITH IT’ and not lagging others in the new digital world’. A September 2001 article in the Costa Rican newspaper El Financiero stated that while some innovative online government services are emerging, most Central American government websites are brochures with static information. 1

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Table 4.3: Transparency of information through e-government applications Type of information being made transparent. Rules and procedures governing services, public officials responsible for different tasks, citizen’s charter, enhancing citizen’s exposure.

Information about decisions and actions of government functionaries: outcome and process, for example, award of contracts and licence, allocation of resources. Data about individual entities in government records such as land records, comments on application for licence, bill of entry for goods, status of tax payments. Information on performance of economy: statistical employment, income, trade, etc. Performance indicator for government departments. Names of citizens with large outstanding loans, taxes; civil servants under investigation or convicted, index of corruption, performance of investigating agencies. Disclosure of assets, income, profile of election candidates, elected representatives, ministers and civil servants.

Resulting benefits.

Illustrations of e-government applications. Leads to standardized Websites of procedures for delivery government of service. Citizens can departments in resist attempts to delay many countries. processing. Reduces arbitrariness, for example, demand for additional documents. Exposure of corruption E-procurement in and improved Chile, Philippines accountability. (see Case 10.2).

Exposure of manipulation for exchange of bribe and corruption.

Civic engagement in governance. Greater accountability.

Bhoomi, online land records in Karnataka (Case 9.1), OPEN in Seoul and Korea (see Box 4.6). CRISTAL-Budget disclosure in Argentina (see Box 4.1).

A kind of punishment for the corrupt through public exposure.

Central Vigilance Commissioner Website, India (see Box 4.7).

Creates disincentive for corruption by creating fear of exposure.

Centre for Responsive Politics, USA (see Box 4.2), Public Affairs Council, India.3

Source: Author. (CARD). For more details of the project see the case study at (World Bank 2002). 3

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which in turn can create disincentives for corrupt officials and businesses by increasing the chances of exposure. As indicated in Table 4.3, publication of budgetary allocations and expenditure on the web, systems for tracking status of applications for a variety of licences, sharing citizen’s charter and performance data on the web are all known to increase accountability. CRISTAL is one of the early examples of building transparent government in one of the South American countries. Not all efforts at publishing data have been successful. Increasing availability of information on the Internet does not mean Box 4.1: CRISTAL website, Argentina The CRISTAL government website was launched in early 2000 to fulfil the mandate of the September 1999 Fiscal Responsibility Law, which required that the Argentine state make available to its citizens information related to the administration of public funds. The website disseminates information on the use of public funds in Argentina in an easily understandable format, which enables the citizens to exercise a more effective control over their political representatives. The information is on the execution of budgets to the lowest level of disaggregation, purchase orders and public contracts, payment orders submitted to the National Treasury, financial and employment data on permanent and contracted staff and those working for projects financed by multilateral organizations, an account of the public debt, inventory of plant and equipment and financial investments, outstanding tax and customs obligations of Argentine companies and individuals and regulations governing the provision of public services. The website is currently organized into three thematic areas: ‘The State within Reach of All’, which explains how public monies are redistributed between the national government and provinces, ‘Goals and Results’, which gathers information on all national policies to evaluate their management and the manner in which public funds are allocated and ‘Accountability and Representatives’, which gathers information related to the fight against corruption, both in government and in non-governmental sectors. Tutorials explain each of the themes in a clear and easy-to-grasp fashion. Users can also interact with website staff and feedback is provided within 24 hours. To further strengthen the transparency, CRISTAL itself is externally audited by Foro Transparencia, a coalition made up of 15 non-governmental organizations concerned with government transparency. This initiative is proving significant as it seeks to improve governmental transparency, and many agencies have actually started to improve their data gathering practices in response to CRISTAL’s requests. Source: (World Bank 2000).

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that citizens will automatically use the information to demand greater accountability. The proportion of citizens who are willing to be constantly engaged in the process of governance is very small. Conscious efforts are required to drive citizens to the portal through advertising campaigns and education. Intermediaries that can analyze such information and highlight exceptional conditions which deserve citizens’ attention are needed. Even in a country like the US, which is a well developed democracy, such agencies are needed and are indeed present (see Box 4.2). Traditional media can also play this role. As an alert watch dog, media needs to highlight such information and generate Box 4.2: Centre for responsive politics, USA The centre’s website, interestingly called ‘OpenSecrets.org’, illustrates the constructive role of intermediaries in presenting information to citizens in a format that makes it actionable. The website provides a comprehensive review of finances received by political parties from lobbyists and campaign contributors and examines its impact on the American public policy. The analysis is based on data, that is, in the public domain, but not in a form that illuminates any corrupt practice. The site provides timely analysis of voting patterns in the Congress and the amount of money donated by the interest groups. For example, in an ongoing debate on a bill that provides immunity to telecom companies facing lawsuits for monitoring US residents’ phone calls, it was observed that 68 senators who, on an average, got more funding from telecom companies voted in favour of the bill compared to the 29 senators who got nominal funds from the telecom companies. Source: Compiled by author.

widespread debate around significant issues of public concern. The web is a new medium for the traditional media reporters. Through workshops and seminars, they need to be made aware of the detailed information made available on the web. E-government can lead to transparency provided that the legal framework supports free access to information. Until a few years ago, most countries still had strict national secrecy laws. These have been repealed in favour of Freedom of Information Laws in the US and much of Europe, but only after decades of lawsuits. Secrecy laws are still in effect in much of the developing countries. While increasing citizens’ access to information,

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the governments must also address risks to privacy and security. India offers an excellent example of such a law that has already made some impact. The Right to Information (RTI) Act in India came into effect on 13 October 2005 and applies to all public authorities in India (see Box 4.3). Many NGOs help the citizens to use the RTI to expose corruption in public spending.4 Box 4.3: Right to Information Act According to this Act, a citizen can request for information by filing an application and paying the prescribed fees with the public authority. The RTI Act gives citizens the right to (a) inspect works, documents, records (b) take notes, extracts or certified copies of documents or records (c) take certified samples of material and (d) obtain information in form of printouts, diskettes, floppies, tapes, video cassettes or in any other electronic mode or through printouts of information related to public. There are exemptions applied in 11 cases covered under Section 8 of the Act—national interest, privacy of third party and commercial secrets are few of them. As per the Act, every public authority must appoint a Public Information Officer (PIO) to provide information requested under the Act. The applications are submitted to PIOs in person or through post and it is the responsibility of the PIO to collect information from relevant departments and officers. The law mandates that PIO must, in any case, reply to the request within 30 days of receiving the application. A PIO cannot refuse to accept an application under any circumstances. If an application is not accepted, the applicant can approach the Central/State Information Commission to file a complaint. In case the answer given by the PIO is not satisfactory, the applicant can then appeal with first appellate authority appointed by the government agency. The Central/State Information Commission/s (CIC/SIC) are also established to ensure the proper implementation of the RTI Act. CIC/SICs are in charge of ensuring that public authorities abide by the provisions of the Act. Applicants can also file complaints related to the Act with information commissions. The decisions of these complaints are published on CIC website for reference. State Information Commissions have similar responsibilities as CIC, only that the SICs are state specific. Source: Compiled by author. For example, an NGO, Parivartan, has brought accountability in local government in Delhi by seeking information on expenditure on roads in housing colonies. In a number of cases, no roads were constructed but payments were shown in the books. 4

Impact of E-Government on Transparency and Corruption

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In addition to making rules simple and more transparent, e-government should explicitly empower citizens to question the rules. Citizens and businesses should feel emboldened to question unreasonable rules and procedures and their arbitrary applications (Rose 2002). Experience from some projects has shown that the objective of transparency can be enhanced through the following means: 1. Publishing on the web: a citizen’s charter stating clearly the service level that a citizen can expect in transacting with the government, actual performance in the past on the parameters that measure service levels and details of how governments spend money. 2. A mechanism to receive feedback from citizens on the quality of service offered (see Box 4.4). Box 4.4: Online grievance redressal, Mumbai Municipal Corporation The online grievance redressal system developed by the Greater Mumbai Municipal Corporation (BMC) and the NGO, Praja (http://www.praja. org/), allows users to file their complaints online, receive a tracking number and check on the status of a complaint at any time. Complaints are sent first to a complaints officer. If this person fails to resolve the problem within a stipulated time-frame (three days at most), the complaint automatically escalates to a higher office and finally to an Additional Municipal Commissioner. Praja and BMC follow up on unresolved issues. Over 400 people file complaints daily—one can also do so in person in which case the data is entered into the same system. Funding for the system was provided by some private trusts. The role of the NGO is critical in this process. Source: Compiled by author.

Transparency is not just a valid objective in G2C and G2B services. Even while dealing with other government agencies and with government employees, transparency can lead to a significant impact on corruption. In countries like India, transfers of the government employees in departments that employ tens of thousands of employees is a corruption industry. Karnataka’s experience in making rules of transfer simple and transparent and building a simple e-government application to process transfer requests produced a very significant impact (see Box 4.5).

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Box 4.5: Teachers’ transfers in Karnataka, India The Department of Public Instruction in Karnataka has introduced a new system of processing 15,000 requests received every year for a transfer to a place of their choice from teachers working in government schools. The process of handling these requests is riddled with corruption and nepotism. In the manual system, every teacher seeking a transfer would submit an application to the administrative controlling authority, the state level authority and also forward another application through politicians known to the person. Often, action was initiated at different points, resulting in multiple transfer orders. Guidelines for processing transfers were not outlined. District authorities were unable to keep track of the vacant posts in the district as transfer orders were issued at various levels. Exodus of teachers from backward districts created serious manpower crisis in schools. The need-based distribution of manpower within the district was also disturbed. The system also gave room for a lot of human interference, corruption and harassment for the hapless teachers. The teacher transfer process was streamlined in 2001 by automating the entire process. Under this system, the transfer requests were prioritized based on the ‘reasons’ cited for a transfer. After long deliberations with teachers and officers at various levels, the priority for each reason was determined. Applicants with reasons such as ‘terminally ill’, ‘suffering from serious illness’, ‘physically handicapped’, ‘spouse in government service’, ‘verge of retirement’ and ‘working in the same place for more than seven years’ were prioritized in that order. All transfer aspirants were instructed to apply to the concerned district authority in a pre-defined format. A computer generated list containing the names of the transfer aspirants along with their ranking (decided based on the reason for transfer) was published on the notice board of the department and objections if any were invited. By doing so, the whole method became very transparent. During the counselling, the teachers were called in the order of priority and were allowed to select the place of posting from among the vacant teacher posts in the database. Once the selection was made, a transfer order was printed and handed over to the teacher and his/her current place of posting was released in the database. Since the vacancy positions were announced in advance, the teachers could make a decision on the place of posting prior to the counselling session. The entire counselling session, including the printing of the transfer order, took around 2–5 minutes. This enabled the counselling of 75–100 teachers on a daily basis. After every session, a list of new posting and another list containing vacant positions are published. Source: Write-up provided by Lakshmisa S., Senior System Analyst, National Informatics Centre Education Unit, Government of Karnataka, India.

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4.3 Dealing with Corruption through E-Government E-government can be used to combat corruption in two ways. First, e-government can become one of the key components of a broader anti-corruption strategy as is demonstrated by the OPEN system installed in the Seoul Municipality in Korea (see Box 4.6). The OPEN system of Seoul Municipality exemplifies the impact on corruption of making transparent the decisionmaking processes and actions of individual civil servants. Extensive municipal regulations, spurred by the expansion of the municipal bureaucracy, had created new opportunities for corruption. In 1998, the Mayor of the city declared an all-out war on corruption through preventive and punitive measures, increased transparency in administration and enhanced public–private partnership. Some other measures introduced prior to computerization included simplifying regulations and actively involving citizens in various anti-corruption activities. Citizens could track the processing of an application for service (those that are not delivered across the counter) thus increasing transparency. Supervisors can also track unusual behaviour. Second, service delivery improvement initiatives can be implemented in corrupt departments, specifically targeting transparency and reduced corruption as objectives. The very process of building an online delivery system requires that rules and procedures are standardized across regions and made explicit (amenable for computer coding). This reduces the discretion and opportunity for arbitrary action available to the civil servants in dealing with every applicant on a case by case basis. E-government can be used as an entry point for simplification of rules and reengineering processes. E-government can lead to centralization of data which can be used for improving audit and analysis. Unbiased sampling procedures can be applied for audit purposes. Integration of data across applications can provide improved intelligence. Not all e-government applications have profited from such integration, as the technical challenges in integrating data are considerable (see Customs Computerization in India, Case 10.3).

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Box 4.6: OPEN system [Seoul Municipality, South Korea (OPEN)] A portal called OPEN—Online Procedures Enhancement for Civil Applications—was a key element in this fight. The portal explains to users the elements of the anti-corruption drive, displays an anti-corruption index (compares five services that are most susceptible to corruption), educates citizens on rules and procedures and enables real-time monitoring of progress of an application for a permit or licence. The system enables online tracking of individual applications for a variety of municipal licences. It makes completely open and transparent those administrative practices that were vulnerable to corruption. In the first 13 months of the OPEN system, civil applications published by each city department totalled 28,000 and the number of visits to the OPEN site reached two million by the end of year 2000 (Kang 2000). The OPEN system has been evaluated in different ways. Results from a survey of 1,245 citizens showed that 84.3 percent believed that OPEN led to greater transparency. Other surveys conducted by the local chapter of Transparency International in 2000 and 2001 indicate a growing interest but a marginal decline in user satisfaction over time (Transparency International Korea 2001).5 There was little change in the perceived benefits of ‘reduced time’ or ‘easy access’. However, the percentage of respondents identifying ‘greater transparency’ (25.1 percent in 2000) and ‘prevention of corruption’ (9.3 percent in 2000) as benefits did go down over this timeperiod by 3.3 and 1.4 percent respectively. The focus of the anti-corruption programme was not on IT but on simplification of regulations and procedures, re-engineering of work practices, transparency in procedures and effective communication with the citizens. The learning emerges that in order for anti-corruption efforts to be effective, reformers must look beyond individual instances of corrupt behaviour and focus on the structural factors that allow corruption to develop. Two factors contributed to the success in implementation. First, there was strong leadership provided by the Mayor. Second, there was widespread citizens’ participation. Source: OPEN: Seoul’s Anticorruption Project. Available online at http:// www1.worldbank.org/publicsector/egov/seoulcs.htm The percentage of respondents (from a random sample of 1000 people) familiar with OPEN grew by 19 percentage points to 74 percent. Nearly 90 percent intend to use (up by 20 percent) OPEN in future, while actual users grew to 16 percent of respondents (up by 5 percentage points). The proportion of satisfied users declined from 56 percent to 48 percent and the proportion of dissatisfied users grew marginally to 9 percent. 5

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By providing an alternative to a departmental channel for service delivery, e-government introduces competition which improves service levels and lowers corruption. Publishing government information on the web builds accountability by providing documentation to citizens to substantiate their complaints against corrupt practices. Corruption often reflects the power distance between the civil servants and the citizens, particularly in case of poor, illiterate and ignorant citizens in remote areas. Demand for a bribe even when no favour is involved cannot be easily refused (as in the case of truckers without overload in the border checkpost case). It is important to supervise and monitor the performance of newly installed e-government systems until the norms of higher levels of service get ingrained in the civil servants. Much of the evidence linking e-government with reduction in corruption is anecdotal. Only in a couple of cases has the impact on corruption of e-government applications been audited independently (PAC 2000). Systematic surveys of citizens and other stakeholders can help establish the linkage more clearly and will also provide invaluable feedback on the parts of the system that need improvements. There is some evidence that use of ICT in the government can also enhance opportunities for corruption (Heeks 1998). Several case studies on e-government applications from developing countries report varying impact on reducing corruption.6 Amongst the cases included in this book, Bhoomi (see Case 9.1) demonstrates a significant impact on corruption, whereas in computerized interstate checkposts in Gujarat (see Case 10.4) and CARD in AP (see Case 9.2), corruption continued unabated after implementation. The example of Central Vigilance Commission website (see Box 4.7) describes a brave attempt to strengthen the institutions that are supposed to check corruption and stigmatize senior civil servants who were being investigated for corrupt practices. For example, the cases on Beijing’s Business e-park, Philippine customs reform, OPEN system in Seoul Municipality report less corruption as one of the benefits. 6

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Box 4.7: Central Vigilance Commission In an effort to propagate the idea of zero tolerance for corruption, the Central Vigilance Commission (CVC) in India began to share a large amount of information related to corruption through its website in January 2000. The CVC website communicates with the general public by providing details on convictions of public servants by the courts and penalty imposed on officers. Monthly reports are published with names of the officers, designation and penalty imposed and also reveals the number of complaints received against individual government agencies. The statistical reporting of the achievements of the commission is available through the annual report. The website also gives details on how to file a complaint against specific officers. The commission then scrutinizes the information so received and if the information is considered sufficient for carrying out detailed investigations, the CBI (Central Bureau of Investigation) or the Income Tax authorities would be advised accordingly. The commission clearly states that it does not entertain anonymous or pseudonymous complaints. However, the identity of the complainant can be protected if he/she so desires. Both print media and radio have been able to transmit the content of the CVC website throughout the country. Thus, the site has had a much bigger impact than what could be expected based on India’s computer density alone. Source: Author.

Many governments have chosen to go online in departments such as customs, income tax, sales tax and property tax which have a large interface with citizens or businesses and are perceived to be more corrupt. In Philippines and Indian customs, face-to-face contact of inspectors and cargo agents was removed by introducing electronic submission. Procurement by the government is also seen to be an area where corruption thrives and some states/countries have been able to lower corruption through e-procurement (Case 10.2). Although these examples indicate the potential of e-government in impacting corruption, it would be fair to conclude that overall exploitation of this potential has been quite limited. Many applications have been able to build an efficient (less time to transact) service delivery system but only a few have succeeded in tackling corruption. E-government needs to be seen as one of

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the many tools to combat corruption and should be implemented as part of a wider programme for tackling corruption. Benefits from e-government such as reduction of corruption opportunities are often incidental and not part of the design objectives. To extract maximal benefit from such applications, some features that can lead to greater transparency and accountability needs to be consciously built in the design objectives (Gopakumar 2001). By reducing administrative corruption in service delivery, e-government can reduce the tolerance of corruption amongst citizens who would no longer be required to compromise their honesty by paying a bribe to public officials. In addition, a massive societal education effort is required to reinforce fundamental values like honesty.

5 Guidelines for Implementing Projects Successfully This chapter explains the various tasks that need to be done during the life of a project. Success of a project in terms of its sustained use and the benefits that it delivers depend on how well the tasks in each of these phases are executed.

5.1 Life Cycle of an E-Government Project An e-government project, like any other Information Technology (IT) application, has a life cycle from its conceptualization to the point where it is replaced by a new system. The life cycle can be described as consisting of six phases as given in Figure 5.1. The first three phases correspond to the ‘development’ of an application and the last three phases define its ‘implementation’. There are a large number of stakeholders who actively contribute to the execution of different tasks over the life cycle of a project or are in turn impacted by the application. For example, the head Figure 5.1: E-government project life cycle Conceptualization

Analysis and design

Construction

Enhancements

Evaluation

Piloting and rollout

Source: Author.

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of an agency (political and/or administrative level) or a senior functionary may be considered as the owner of a proposed system and will usually be involved in the conceptualization process. The task of conceptualization may be managed by a designated project champion and will usually involve consultations with other stakeholder groups such as system users (agency employees) and clients of the system (citizens and businesses). Professionals who design the solution may be known by various names depending on the complexity of the application. A solution architect may be involved when a large basket of services from many different agencies is delivered through a unified portal. Delivery through a portal means accessing services through the Internet that brings in issues of authentication of clients, design of interface, providing access to data from different data bases managed by different agencies using different structures and software, security of such data and the management of workflow across agencies. For a single agency assisting online application, a system designer may translate the conceptualization into a technical solution-designing database on servers, input/output screens on client nodes and networks that connect various elements together. In designing the systems, various types of standards may be specified. Actual solution development is done by software engineers. Each stage in the life cycle is explained briefly.

Conceptualizing a Project The project conceptualization phase defines the overall vision, mission and objectives of the project, the outcomes to be achieved and the scope and scale of the project. The objective is defined in the context of the overall political and governance agenda of the government. The outcomes are defined as measurable benefits to be delivered to different stakeholders. In Chapter 2, some of the objectives that e-government applications aim for were identified and in Chapters 3 and 4, the several benefits that a project may deliver were discussed. The scope is defined in terms of the basket of services, the delivery channels and how the existing delivery processes for these services will

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be modified with electronic support to realize the objective and outcome of the project. The scope, therefore, defines the ‘to be’ functionality of the proposed application. The scale is defined in terms of geographic reach. Often, the final grand vision of the ‘to-be-state’ is conceptualized, but the project implementation could be done in stages to realize the grand vision. Documented output of the conceptualization phase can be a Detailed Project Report (DPR). The DPR also includes an estimate of the cost of investments and operations needed to roll out the application.

Analysis and Design The conceptualization phase specifies the outcomes to be achieved by the proposed application, recognizes the need for reforming current processes but does not detail the new processes to a level that an ICT solution can be developed. So, one of the tasks in analysis is to document the existing processes, analyze them to understand the process reforms that need to be carried out to achieve the proposed outcomes. In existing service delivery mechanism, many redundant, non value-adding processes may have crept in. The business processes need to be reviewed and rationalized or eliminated. Some new processes may have to be added to ensure that desired outcomes are achieved. This exercise of adding and deleting processes is termed as re-engineering and is an extremely important part of the analysis and design phase. The new way of delivering the service also needs to be documented in a form that an ICT solution can be architected, designed and developed. Data flow diagram is one of the ways of documenting the to-be business process. A data flow diagram for a business process is an associated set of processes, inputs to the processes, outputs from the processes and data storage from which the process will read/write data. A process is defined as a set of actions performed by individuals or automated systems in accordance with pre-defined procedure, rules or logic. In delivering a service (that is, executing a business process), a number of processes may have to be executed

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in a pre-defined logic. A process needs to be defined in its most elemental form as a basic process may be similar across delivery of many different types of services. Therefore, once the processes are coded as software, these could presumably be used whenever required. A library of commonly used processes could be maintained. There are other approaches to documentation such as Object Oriented Analysis (OOA) which may be directly useful for designing databases and software modules to computerize a business process.1 With further evolution in the object oriented methods, UML diagrams are becoming a standard way of documentation.2 These techniques are not presented in this book, as they are technical in nature and are discussed in detail in several books on the topic (Dennis et al. 2006). A formal document produced in the analysis and design phase is a Requirement Definition Report (RDR). It is an outlined text report, specifying both functional (covering different services and steps in the service) and non-functional (operational, performance, security, political and legal) requirements understood from a public administration and technology point of view. An important function of the RDR is to define the project scope and user expectations. It serves as a base document for others to do further work on the project and a reference for resolving any disputes that may arise when different partners coordinate their work on the project. Objects are entities (things, persons, place and events) of interest to the application. Each object may have several instances (passport application and its instance as an application from a specific individual). Objects and instances have properties that are similar to data about such entities. The OOA pictorial depiction models behaviour of objects as how properties are modified. 2 UML or Unified Modelling Language is a general-purpose modelling language that includes a graphical notation used to create an abstracted model of a system, referred to as a UML model. Concepts from many other ObjectOriented (OO) methods were loosely integrated with UML so that it could support all OO methods. UML follows a universally specified standard for object modelling and is not restricted to modelling software, but is also used for business process modelling, systems engineering modelling and representing organizational structures. 1

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The task performed by a solution architect and a system designer was described in a simplistic manner earlier in this chapter. Taking a technology view, the solution architecture has evolved from main frame, to client server, to 3-tier, to an n-tier architecture. The effort is to define a logical view of different components of the system so that these can become independent of the hardware/software platforms that are used to build them. Such architecture is exemplified in the case study on e-Seva (Case 9.4). Figure 9.1 in the e-Seva case study describes an n-tier architecture. Even non-technical users can understand that key components have been identified and separated and the communication between these components defined in a logical manner. It is easy to see why e-Seva was able to add services, add access devices with minimal effort as it expanded in its functionality and geographical scope. There was no dislocation of what was already working. The basic design (database design, sizing of hardware and adherence to standards) needs to ensure that technical performance of the application in terms of response rates to access requests and processing times is within limits that will enable services to be delivered within specified outcomes. The use of an e-government architecture enables scalability and flexibility.

Construction Construction is the phase of actual development of the application software which can either be built in-house or outsourced. There are issues of whether to use propriety software or Open Source/Free Software. Also, standards to be followed in the process of development need to be specified. Open Source Software is a software where source code is available; the software can be freely distributed (to different locations), can be used without a restriction but the integrity of the author’s software must be protected. Free Software, on the other hand, can be modified, improved, used in any way and redistributed. Open Standards are technology specifications that are developed collaboratively, followed universally and address common requirements

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and goals. By design, products and services that follow open standards are available from many vendors. For the user, this means lower prices because of competition, independence from vendors, flexibility in changing vendors, mixing products from different vendors and inter operability. Most administrators will not be equipped with adequate technical knowledge to make such decisions. Expert advice should be sought from wherever it is available.

Piloting and Rollout A pilot implementation in a few selected locations can provide very useful feedback for a full scale rollout. It provides an opportunity for a thorough debugging of the application. Potential problems that are beyond the control of the project team can surface enabling project managers to be better prepared to handle the problems in a full scale rollout. Problems due to scope, delivery model and design can be corrected. A realistic estimate of the effort needed to implement and support a full scale rollout can be made. Pilot locations need to cover different geographies to capture the variability in conditions that may later give rise to various problems. One of the decisions in the full scale implementation is the phasing of the rollout. These are tactical decision based on the resources available at the command of the project leader. One of the decision issues in implementation is how the process of change from the old to the new system should be managed. Many different paths can be followed in the change over.

Parallel Running The old and the new system run in parallel providing users the option to use any system. When the old system consists of delivery at departmental counters and the new system is delivery through a portal, the approach is useful as it provides time for users to become familiar and trained with the new system. In case Internet penetration is low and public access points do not cover

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the entire population, this approach is useful. The use of the new system ramps up gradually and at some stage the old system can be discontinued.

Total and Immediate Switch When manual systems are replaced by computerized systems, the method is favoured because consistency of the databases can be maintained. If the application has a wide geographical scope (example of many offices being computerized for delivery services at different locations), the switch can be made gradual in stages. There are many important tasks that need to be planned for whatever form of delivery model is chosen. Some of these elements are procurement and installation of new hardware and software, creation of databases from legacy data, training of front line operators, training of users, putting a maintenance contract in place, redesign of office spaces and management of change.

Evaluation and Enhancements An evaluation exercise can be useful at different stages in the life cycle of a project. An ex-ante economic analysis is normally done initially while preparing a DPR based on the somewhat gross estimates available at the project conceptualization stage. The analysis is useful in deciding whether the project should be taken up for further detailed design and implementation. After the project has been completely designed, the estimates of costs and improvements should be recalculated. Decision on redesign of the project to enhance value or lower investments and operating costs can be taken if the recalculated costs and benefit are significantly different from the initial estimates. The project could also be dropped at this stage if such a redesign was not possible. The impact of the project needs to be assessed after its implementation and use to determine whether the estimated benefits are being indeed delivered. Projects can be continuously enhanced, particularly when the implementation is in phases. Chapter 6

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provides a framework for evaluation at different stages of the life cycle. Many successful applications demonstrate that it is important to identify measurable benefits. Post-implementation audit of benefits, particularly feedback from clients, allows for improvements that add value and expand the client base. To ensure that projects have been evaluated adequately, independent auditing and evaluating has been cited as a best practice. Often systematic methods are not used to accurately measure the success or failure of an e-government project. Success is often judged on the basis of media reports, recognition by international agencies and assessment provided by the project implementers. In all of these cases, clients that are supposed to benefit from these projects supply no feedback. If feedback is recorded, it is usually anecdotal and not based on a systematic survey. It is important that e-government projects have an in-built component of periodic assessment by an independent agency. An evaluation methodology is discussed in Chapter 8.

Project Management An e-government project is an endeavour consisting of several inter-related activities/tasks, some of which can be done simultaneously if resources are available and many of which need to be performed in some pre-defined sequence. Normally, details get progressively elaborated as the time to perform approaches. Often, execution of tasks and activities need to be revisited as execution does not come right the first time. If several agencies are involved in execution, the problems get compounded because of a lack of clarity on what is an acceptable level of execution. IT projects typically undergo the risks of time overrun because of creeping scope (users keep redefining the scope of work); some activities creating bottlenecks as subsequent activities are held up waiting for the completion of these activities. Cost over-run will result because of time over-runs and unplanned use of resources. Just like in any other IT application development project, project management is critical to successful execution of an e-government

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application, more so because government officers at senior levels who initiate e-government projects often lack a reasonable understanding of the process of development and implementation of IT projects. In addition to time and cost, quality and risks have also to be managed. Many tasks that need to be done in preparation of the rollout are the ones in which administrators need to get involved. Some valuable lessons have emerged through the documentation of a number of case studies of e-government implementation (some are presented in the last part of the book), a few impact assessment studies and numerous seminars that have been held to discuss e-government. These lessons are presented in the context of various stages in the life cycle of an e-government project.

5.2 Conceptualizing Project Definition and Scope: Starting Small One of the key factors is an appropriate definition of the scope of the project. Scope, in terms of basket of service and the new modes of delivery, would determine the benefits and value that users would realize from implementation, the investments and operating costs that are likely to be incurred and the degree of risk for implementing the project successfully. Given the versatile nature of information technology and the poor state of manual delivery in many agencies, there is a tendency to become very comprehensive and ambitious in defining the scope. Making the scope of a project very ambitious from the beginning increases the risk of failure in implementation. Often, a large-scope project involves a very large number of stakeholders who are affected by the application. Managing such largescale change proves to be difficult. For example, the success of many projects in land record computerization (see Case 9.1 on Bhoomi) can be traced to the fact that initial scope was limited to the issue of Record of Rights (RoR). Mutation, which is a more complex process, has been computerized in just five states of India. The fact is that even the issue of RoR touches the life of millions of farmers and delivers significant benefits as indicated

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in Chapters 3 and 4. More complex scope can be taken up in subsequent phase of implementation. For example, Andhra Pradesh, after 10 years of computerized RoRs, is now attempting to implement a pilot in two districts which integrates the functioning of three related agencies—revenue department where land records are maintained, survey department where maps of land parcels are maintained and registration department where deeds of sale/ purchase of land are registered and maintained (NISG 2008). A grand long-term vision (over 10 years) may be created at the beginning that lays out the path to an eventual evaluation (5th stage in Figure 5.1) of implementation but the beginning should be small enough to be manageable. In fact, many consultants advise to think big, start small and scale up quickly. It is not necessary that all the steps in the delivery of a service should be handled electronically. Handling a few critical components electronically can derive significant benefits. For example, in Chile, the e-procurement system announces the requirements of the government on a website, but handles the bids in a manual mode. Registered suppliers for the needed product/service are sent an e-mail to broaden the choice of suppliers. Once the bids have been processed manually, the results are announced on a website. Significant costs have been saved in Chile because of expanded supplier choice. In addition, the whole process of selection of suppliers has been made more transparent. Yet, the core process of bidding continues to be manual (see Case 10.2). In environments where ICT infrastructure is non-existent, departments may choose to aim for partial instead of complete electronic delivery.3 In other examples (e–Seva case study), payments are handled in the conventional manner. In most cases in India, submission of supporting documents is not electronic as the infrastructure for the issue of digital certificate has not been created and users do not have access to equipments to convert their documents into an electronic form or to upload the For example, the FRIENDS project implemented in Kerala computerized the delivery at the front-end much before the connectivity with back-end databases was established (Madon and Kiran 2002). 3

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documents for electronic delivery. The extent of automation is also determined by the need to reduce the discretion available to civil servants in processing transactions. Complete automation can reduce the gate-keeper role that many officers play in the manual systems. It can also prevent arbitrary action of delaying service to some customers or expediting services to others who pay speed money. The benefits delivered from such hybrid applications (manual and electronic) can be substantial compared to traditional methods of service delivery. Benefits of moving from these hybrid solutions to a fully automated self-service mode may not be commensurate with the additional investments that are needed. There are many examples where some components of an electronic service delivery continue to be handled manually. Yet, in all these examples, significant benefits have been delivered to the users in terms of reduced time and corruption.

Carrying Out Economic Analysis Specifying Concrete Benefits for Different Stakeholders It is very important for the projects to focus on measurable goals in terms of the specific benefits that would be delivered to citizens, businesses or government employees depending on the service being taken up for electronic delivery. Potential benefits and possible benchmarks (cost of access, improvement in quality of service and governance), that could be targeted on the basis of evaluation of 40 projects, were discussed in Chapters 3 and 4. All benefits may not result from every application. However, unless the benefits are identified and targeted, the process reform and the delivery modes that are needed will not become apparent and will therefore be difficult to achieve. Also, the achievement of measurable benefits makes it easier to estimate the total value of the project and helps in justifying the investment. A feasibility analysis spelling out the investments, operating costs, benefits and risks associated with implementing the project needs to be carried out. This analysis could be useful in making a go/no-go decision on the project. Even though the investment and operating costs need to be estimated in advance

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of the project design, it is possible to produce ‘good’ estimates if detailed checklists of various cost elements are used. As discussed in Chapter 3, benefits may be qualitative or quantitative. Only some benefits can be monetized. Trying to force quantification or monetization can only distort judgement. The exercise should not be done to produce a cut and dried decision—it should rather provide an accurate picture of quantifiable and qualitative cost/ benefits and document risk factors so that judgement can be sharpened and not replaced. An understanding of the quantum of change involved by analyzing the gap between current reality and proposed conception of processes, technology, job roles and outcomes can help assess risks. The larger the degree of change on different dimensions, the greater may be the risks. In a later chapter, some good practices in assessing risks are discussed. Often, the decision to go ahead with an application is taken first and feasibility analysis is used to project an assessment that supports the decision. Projects need to be conceptualized by the project owners. Table 5.1 provides an illustration of economic analysis from two projects.4 A Public Distribution System (PDS) in which subsidized grains can be bought from Fair Price (FP) shops (licensed by the government) by poor families on the basis of a ration card. Computerization will reduce cost of getting ration cards and grains from FP shops for the citizens by cutting down on the number of trips and waiting time. The FP shop owners reduce the cost of getting supplies from godowns. The government gains by reduced subsidy as number of bogus cards will be weeded out. Also, less pilferage by FP shops would mean more savings on subsidy. The analysis indicates that the yearly costs and benefits are equal as the costs are recouped through savings in subsidy. There are high development benefits, but the implementation risk is also high. The social benefits to the citizens are very high making the project a high risk, high benefit project. In the commercial tax project, dealers and trucking companies (clients) gain a significant amount in comparison to the cost incurred The analysis is from two Detailed Project Reports submitted for funding to the eBharat programme within the NeGP in India in 2008. The analysis was done by the author using the data from DPRs. 4

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by the agency. However, there is no direct gain to the agency. The costs need to be recovered through a user fee, which is feasible since user gains are higher than the cost. The implementation risk and development impact are low. It would appear that such an economic analysis which can be carried out with moderate effort does sharpen judgement in terms of which applications can be selected for implementation. Table 5.1: Comparison of economic analysis across the two projects

Project PDS project

Department of commercial tax

Annualized investment Yearly (Rs in operatNumber million) ing cost of users

Yearly benefit (Rs in million)

Ration Cards 19.70 million FP Shops 28,579

559.4

Citizens: 5856.6

Dealers: 202,000

62.0

38.5

Overall developImplemen- ment tation risk benefits 7

8

3

3

FP shops: 2.8 Subsidy to bogus cards: 480 Savings on food diversion: 150 12.0

Dealers: 361.7 Trucking companies: 159.2 Agency: 24.0

Source: From detailed project reports of Public Distribution System Project and the Department of Commercial Tax.

5.3 Process Re-engineering Many e-government applications are implemented in a quick time frame which does not permit the re-engineering of processes. When online systems are implemented, it is difficult to make

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changes subsequently. Therefore, it is a good practice to limit the scope of the application (services covered) to contain the effort to a planned level while maintaining an emphasis on the depth of re-engineering that needs to be conducted. Re-engineering administrative processes and re-organization of information ownership is the most important step for implementing an e-government application. Many task managers of e-government projects have noted that a large percentage of time is spent in change management and process re-engineering. Process re-engineering requires that an agency implement substantive reform in organizational structure, initiate a change in culture and mindset, train and improve skills of its people and put in place the appropriate supporting ICT infrastructure to enable online processes that are timely and efficient to both the user and the government agency. While these tasks need not happen simultaneously, they need to be in place before an e-government application is offered to the public so that immediate impact and value can be acquired. The task of re-engineering begins with mapping of existing methods and procedures.5 Often, different branches of the same department do not use the same procedures as local context and conditions result in variations being introduced over time. Existing procedures need to be simplified in a manner that the overall task can be completed in as few steps as possible without compromising on the basic purposes. Often, tasks are carried out in a mechanical fashion because, with time, the original purpose of carrying out these tasks has been lost or forgotten. Government agencies must evaluate every step in the processing cycle to ascertain if it adds any value. If a process is not serving a valid purpose, it should be eliminated. This entire process of simplification of documents and workflow, points of approval and audit is termed as re-engineering. Such re-engineering must precede any exercise in automation. According to the Business Process Re-engineering (BPR) Online Learning Centre, buisiness proccess re-engineering, referred to as re-engineering in this chapter, is the redesign of business processes and the associated systems and organizational structures to achieve a dramatic improvement in performance. BPR is not downsizing, restructuring, reorganization, automation or new technology.

5

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The outcome of re-engineering may be to modify processes, resulting in fewer steps and limiting the number of people needed to perform the tasks. This has a significant effect on the way that civil servants perform tasks and can produce a considerable resistance from the mid to lower levels of civil servants. A great challenge in implementing e-government is to overcome this resistance through education and training. E-government projects have to consciously strive to provide benefits to civil servants at this level as they tend to lose power and authority over citizens when electronic delivery of services is introduced. E-government projects need to focus on making the entire process of decisionmaking more transparent. Because of automation, the workflow is regulated and often civil servants lose the flexibility to deal with applications in any sequence other than the one dictated by the computerization. This takes away the power of patronage and inability to expedite work as in the case of Bhoomi (Case 9.1) and the computerization of customs (Case 10.3). On the other hand, inability to stall work can be noticed easily because both the public and the supervisors now have the capacity to track information and application as they move from workstation to workstation. Often, the resistance to re-engineer comes from the leadership as change of a simple procedure/form may need a great deal of effort. It may even need a change in some legislation. Other departments may be affected and therefore inter-departmental coordination is needed. Successful implementation of projects requires that there is a clear focus on the purpose for which the application is being built as is illustrated by all the projects discussed in Chapter 9 for the delivery of citizen services. The intended beneficiaries of the application are identified and benefits that will accrue to the stakeholders are concretized. In fact, specific benefits like reduction in time or number of trips to an office need to be targeted and made public. It is only then that the process of re-engineering can work towards its ultimate goal. Typically, e-government requires complete back-end computerization and integration for workflow and data sharing. This

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allows for seamless information sharing and reorganization of information ownership. Many e-government projects remain limited or fail as a result of neglecting this process. There have been a few examples of successful improvement of services without computerizing the back-end.6

Learning from Best Practices Almost all types of applications have been developed in some location or the other. Project teams need to study some of the best practices from within the country as well as other countries. A visit to see an operational application provides very useful insight as it gives the opportunity of getting feedback from the operators who have an intimate knowledge of the system. It may not be necessary to replicate a best practice completely. It may be worthwhile for designers to scout for core ideas (process reform, use of a technology and method of change management) around which successful applications have been built. For example, one such idea that has been used to make many applications transparent is to introduce payments linked to automated weighing machines. For example, in Kolkata, the system of municipal waste collection by private contractors has been computerized. The weight of lorries entering and leaving landfill sites is recorded electronically and the cheques in payment due at the end of each month are generated automatically. There is no opportunity for the operators to ‘negotiate’ the payments; the result has been a 30 percent saving to the municipality in the cost of garbage collection. Some of these benefits have been shared with An exceptional case is the example of Bahia, Brazil, which was able to successfully rollout e-government services without going through this process. Through citizen service centres, Brazilians, in Bahia, were able to acquire multiple government services in one location. Over half of the workforce for the centres was made up of new contract employees who provided services to citizens at a service centre. Similarly, Poupatempo ‘Time Saver’ Citizen Centres in Brazil, provided citizens with government services without significant re-engineering of the back-end processes. The citizen centres improved the image of the government because the model was perceived as a ‘modern’ highquality system for providing public services. 6

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the operators in an equitable way thereby providing legitimate rewards for good performance. A similar idea was used in the case of inter-state checkposts in Gujarat (see Case 10.4) where fine collection is based on the weight of trucks. Another example of the use of this idea is milk collection centres in dairies in India at 3,000 rural locations.

5.4 Designing a Citizen-centric Service Delivery Mechanism There are a number of tasks such as acquiring information about government rules and procedures, applying for permits and licences and obtaining legal documents for which citizens interact with the government. Traditionally for most of these tasks, citizens had to make several trips to a departmental counter. A very limited amount of information is available over the phone. Community service centres (offering electronic delivery of multiple services) and a website are the new channels for delivering such information and services. When alternate channels are available, uptake of a new one, like a web portal, is slow. Significant effort and resources need to be spent to make citizens aware of the added advantages that Internet channels can offer as opposed to more traditional ones. This is particularly true in projects like Bhoomi (see Case 9.1) which serve rural populations. The number of access points has to be sufficient to be within easy reach and citizens also need to be trained to navigate through service delivery portals. The local language interfaces also need to be built. Countries with significant illiterate populations have to create access points where assistance is provided. Intermediaries such as volunteers, kiosk owners and paid employees often play a positive role in applications where information is disseminated to rural/illiterate populations.7 In Sri Lanka, the existence of volunteers who run the Kothmale community radio has contributed to the success of the programme. The daily programme received an average of five to six queries for which volunteers seek information from the Internet and then broadcast the responses (Kothmale Community Radio/Internet Project). For details, see Jayaweera 2001. 7

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The design of the website is critical. It should be simple to search for information and the information should be complete. Citizens should not have to follow up a website access with a visit or a call. If several departments have websites, there should be a common ‘look and feel’, which minimizes learning on the part of the citizen. The information delivered to a citizen through the mediae (a website, telephone, office visit or as paper documents) should be consistent. Often, procedures are modified, but such modification is not reflected in every channel that a citizen can access. To make a website useful, it is critical that time is invested in building appropriate content. Designing websites is a demanding task and should be done by professionals. Many successful portals are seen to be citizen-centric because they follow a navigation structure that closely mimics the life cycle of a citizen (see SINGOV nd). It needs to consider the quality of Internet infrastructure available in the country so that the download time can be kept within acceptable limits. Standards need to be laid down for the ‘look and feel’, data definitions, structures of databases, security provisions and an organizational structure to maintain the integrity of data. When transactions are carried over the Internet, security becomes a major issue. Security of data in terms of its privacy and confidentiality, prevention of fraudulent transactions, ability to prevent hackers from slowing or shutting down the application and defacing sites and safeguard against natural calamities are important in the design of e-government solutions. Adherence to N-layered architecture principles makes it easy to put in place different security solutions; even while implementing integrated applications that span across agencies, different types of hardware/ software platforms and are accessed through the Internet. Security threats may arise from internal employees as well as external users who use the application for unauthorized purposes. Security of a system is as good as the weakest link in the entire system. The system consists of the technology components, people, rules and procedures of access to physical buildings and rules and procedures governing electronic access. The ability to track

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actions of internal users is an important element of a secure system. A number of different types of actions listed in the Box 5.1 can help secure data, authenticate identities and prevent fraud and cyber crimes. Box 5.1: Some measures for securing e-government systems • Authentication to ensure access to only authorized personnel. • Digital signatures to ensure non-repudiation of the transactions (example, sensitive data upload should be digitally encrypted using private key). • Online antivirus scanning (for the document uploads into e-government system). • 128 bit SSL encryption (for transport level security). • Audit trail of each activity. • Privilege-based user access. • Time stamping of each transaction. • Firewall for screening system access. • Access control system. • Intrusion detection system (both at network and host level). • Segregation between system administration and super user functions at service provider level. • Disaster recovery measures. Source: Author.

5.5 Communicating with Users Communication with the user is important at several stages of the life cycle of the project but, more specifically, in the context of designing citizen-centric delivery mechanisms discussed in the previous section. The user needs have to be assessed in identifying the services to be taken up for e-delivery and the parameters on which the users seek improvement in the delivery of the service. The attributes of a service delivery system that are considered important by users can vary with the type of service, location of the user and the user profile. A study of 40 projects reported that when users were asked to pick the three most important attributes from a list of 20 attributes (covering cost, convenience, governance, quality, etc. as discussed in Chapter 8) of

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a service delivery system, there were many differences across services and across locations. The most important attribute in all the services and locations was the durability and legibility of the certificate/document issued by the agency at the end of the service (Centre for Electronic Governance 2008). Cost was considered important only in one of the three services. Corruption was seen to be important in two services but not in the third even though the incidence of corruption was the highest in this service. The lesson is to design the new system through user participation. Such feedback could be obtained through a structured survey or through focus group discussion. In fact, a survey to benchmark the existing delivery system is a good practice as it will help to sharply define the improvement that can be targeted. In post-implementation impact assessment, a benchmark study will make it easier to measure impact. The usage build-up of an e-service would be more gradual than expected when alternate modes of service delivery are available. E-government channels are quickly embraced if the service provided fulfils the needs of the community. Uptake in the Bhoomi project (see Case 9.1), in Karnataka, was quick because no alternate channel was permitted. In the e-Seva project (see Case 9.4), in Andhra Pradesh, the number of transactions crossed the 10 million mark even though competing channels of departmental counters were still open. On the other hand, the number of transactions in the rural Gyandoot project dwindled to a few hundred as it was not perceived by the public to be delivering value. In case of access through portals, IT literacy and inertia are other factors inhibiting usage. To create a critical mass of users, a number of e-government projects incorporate activities that raise awareness amongst targeted users. These include training of service providers and potential users, publicity and media campaigns before, during and after the implementation phase of the project.8 In the Canada Online initiative, citizens who do not know how to navigate the site for any service are provided instructions when they visit the department (Aurray 2002). 8

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5.6 Seeking Partnerships: Avoiding Reinvention of the Wheel There are many tasks in the application development which can and need to be outsourced. Often, the technical capacity within the government system is inadequate to handle a large design/ development project. An honest assessment needs to be made of the capacity to build in-house projects. Use of in-house construction does go against the current trend of outsourcing. Sometimes, the issue is not material for the phase of construction as all the phases of the development process are either outsourced or done by a private partner. Many governments have captive organizations that were responsible for developing ICT solutions within government agencies. Often, personnel employed by such organizations have not been able to keep themselves up-to-date with modern methods of application development. Government salary structures are much lower than the private sector encouraging a migration of talent to the private sector. The choice should not be based on the cost of constructing a solution. The direct cost of outsourcing is high as many of these costs are explicit. For many captive organizations the costs are hidden. Cost cannot be the overriding consideration if there is an enhanced risk of poor design or implementation failure. Often, rules and procedures that govern the delivery of a particular type of service are not standardized across countries. Therefore, packaged solutions are available only in a few application domains. The advantage of off-the-shelf solutions is that the software is tried and tested. In applications that deal with procurement and customs, there are a number of generic solutions that only need marginal tailoring for local conditions. Automated System for Customs Data (ASYCUDA)9 is one such example (see Box 5.2). ASYCUDA is a computerized customs management system, which covers most foreign trade procedures. The system handles manifests and customs declarations, accounting procedures, transit and suspense procedures. ASYCUDA can be configured to suit the national characteristics of individual customs regimes and national tariff legislation. ASYCUDA provides for Electronic Data Interchange (EDI) between traders and customs using Electronic Data Interchange for Administration, Commerce and Transport (EDIFACT) rules.

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Box 5.2: ASYCUDA: Avoid reinventing the wheel Online processing of imports/exports in customs departments is an excellent example of benefits from the use of standard software. ASYCUDA, designed by United Nations Conference on Trade and Development (UNCTAD), has been used in nearly 60 countries to computerize processing of exports/imports at airports and seaports. The time for implementation has been shortened and it has been easy to implement the system in countries like Yemen which lack local capacity in developing software. Presumably, ASYCUDA has been designed after studying the best practices in different countries. It offers readymade templates for re-engineering processes to increase efficiency, reduce processing time and make self-assessment and selective audit. The physical contact between the customs inspector and a cargo handling agent has been eliminated. These tools have a significant impact in reducing corruption in customs transactions. Source: Author.

5.7 Phasing Implementation Pilot projects have allowed governments to experiment and tailor their product to fit the needs of users. The safest approach to adopting a new technology with a steep learning curve is to take small steps with activities that are manageable within a relatively short time-frame. This allows greater flexibility for tailoring the system and formulating a long-term strategy based on the actual experiences of the organisation and feedback from the client. If capable of showing quick success, pilot projects allow for buy-in from groups that are originally resistant. Bhoomi (see Case 9.1) illustrates the advantage of using a phased approach in defining project scope.

5.8 Capacity to Manage Change Many e-government projects face substantial resistance from internal staff. Public servants view e-government projects as a threat to their jobs. E-government changes workload, work profile and work content. It forces the need for retooling and training. It often creates redundancy of employees. Public servants see

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the automation of a process as a loss of power and responsibility. When information is published and easily accessed, they view this as a loss of control. Their role as an intermediary between citizen and government is minimized. E-government affects civil service in several ways. It alters accountability, reduces discretion and flexibility and makes performance monitorable and visible. Often, e-government forces information sharing and provides easier and equal access to organizational knowledge to all employees. Even citizens become privy to some part of the information. It tends to flatten hierarchy (alters the power and authority vested at different levels). Different groups in the civil service may be affected differently. Some effects may increase resistance to change, whereas others may accelerate acceptance of change. Introduction of a paperless environment in SmartGov (see Case 11.1) illustrates many of these effects.

Fear of Unknown Introduces Resistance This may happen because of introduction of new technology, changes in procedures and different work assignment. Uncertainty in benefits that may accrue from the new system or a perception that disadvantages outweigh advantages for individuals can also lead to resistance.

Attitudinal Factors The perception that someone else will get credit for the success of the system can also create resistance in the higher echelons of civil service. Design of the application needs to be reviewed for increase in workload; there is a need for new learning as some processes are changed and complexity in some tasks is introduced. Technical performance such as poor access, lack of bandwidth, down time, slow response, frequent breakdowns and software problems can also build resistance. Effects on civil service need to be understood and mapped into accelerating (making it easier to implement) and decelerating

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factors. Strategies need to be devised to dampen deceleration and enhance acceleration. The actions that help minimize resistance have already been discussed. Some known generic strategies are discussed. Ensuring that the organizational climate is right By ensuring shared values with advocates of change, a sense of ownership can be generated amongst employees. Participative design where employees’ feedback and involvement helps shape the new initiative/process/system can contribute to greater acceptance. Quality of work-life and job satisfaction needs to be seen as explicit objectives in the design of the new initiative. Training and education of all levels of employees can help mitigate fear of the unknown and reduce resistance. Ensuring that all stakeholders understand The expected pay-off and the role of stakeholders in terms of new tasks and development of skills. Counselling is often a useful mechanism. It is also necessary to gather stakeholder feedback on their understanding of these changes. Change has to be explicitly managed and, therefore, needs an organization Some useful mechanisms are to identify champions and legitimize their role. There needs to be a clear definition of a project team and a command structure. For encouraging a participative design, user-led design groups have to be organized. Identifying obstacles to change advance of implementation is important as it helps in defining strategies to overcome obstacles These obstacles may be financial, technical, organizational, social or the presence of anti-champions. A large part of the implementation effort, some say up to 40 percent, must be spent on managing change. For a project leader it is important to garner political support for the proposed project.

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It is critical that support is demonstrated publicly through workshops and seminars organized for employees. The project must build benefits for all stakeholders. Training helps to alleviate anxiety amongst employees about changes in methods of working. Pilot projects enable civil servants to understand exactly what may lie in store and also to experience benefits. Project managers need to be trained in managing change. The property registration project CARD in Andhra Pradesh (see Case 9.2) and land record computerization in Bhoomi (see Case 9.1) provide an interesting insight into the different ways by which resistance can be tackled. The number of local intermediaries who stood to lose from the changes due to the CARD project had to be appeased so that a complete boycott of the project did not occur. The government did not banish the intermediaries by law, hoping that the market will gradually eliminate the demand for them. Care was also taken not to antagonize the lower rungs of bureaucracy. The government announced, at the outset, that no downsizing would result from the introduction of this technology. The project consciously sought to build some benefits for the operating levels of bureaucracy. Although the project was operationalized successfully, agents and bribery continue to flourish. In Bhoomi, 9000 village accountants were outflanked and completely disassociated from the task of issuing RoRs. Other measures were used to counter resistance.

5.9 Strong Internal Leadership and Project Management Strong leadership has been cited as a defining factor for success in all cases. High-level leadership and support from the top levels of government have facilitated buy-in from other government departments. Strong leadership also creates motivation from other agencies to join in the process. Leadership is also important as it helps ‘sell’ the project to a larger internal audience and the public. Besides leadership, many governments face lack of adequate human resources to implement and manage projects related to e-government. Strong project management skills are needed

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within the department. Project managers need to clearly identify goals and benefits in concrete terms. The task is often vast and not manageable within the resources that are available internally to a government department. Many tasks such as design, software development, data preparation and training can easily be outsourced. Systems analysis, which provides the necessary cues for re-engineering, should be conducted internally. Training expenses should not be minimized. Successful projects typically spend about 10 percent of the budget on training. Awareness about benefits of e-government has to be created in senior civil servants and political executives. Training is required for project leaders who need to define project deliverables, deal (negotiate) with consultants and vendors and manage an outsourced development process. Clerical staffs need to be trained on specific applications. Supervisors and managers need to be trained on using information. Citizens need to be made aware of online services and how to transact business on web portals. Successful computerization of land records in Karnataka (see Case 9.1) and property registration in Andhra Pradesh (see Case 9.2) illustrate the role of leadership and the importance of training. Project managers need to have an adequate understanding of various techno commercial decision that need to be made particularly when working with private partners or agencies to whom work is outsourced. For procuring different types of services, a Request for Proposal (RFP) needs to be drafted. An RFP has to reflect a complete understanding of the project scope, scale and its critical success factors. Pre-qualification criteria need to be specified for the bidders. Formats for submission of technical bids and commercial bids need to be designed. An evaluation criteria needs to be defined that is transparent, can be operationalized without an inordinate effort and balances technical competence of the bidder to undertake a task and the total costs that the bidder will charge the organization. After a private partner has been selected, a Service Level Agreement (SLA) is signed to define the roles and responsibilities of all the concerned parties. The tasks to be performed by each

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party are specified in sufficient detail with associated measures to judge performance, so that all parties can be held accountable for their performance. SLA would specify terms of payment including rewards and penalties based on measurements of various performance parameters, governance structure–dispute resolution mechanism and exit management.

5.10 Risk Factors in Implementing E-Government Projects The incidence of failed implementation is high in e-government projects (Heeks 2003a). A failed project is one in which the delivery of e-services does not take off or is abandoned midway because of a malfunctioning design. Projects may also begin to falter after an initial success. Evaluations of two e-government projects that were deemed to be successful later indicated that the projects could be termed as failed projects (IIMA 2002a). An analysis of the failed projects suggests a number of risk factors that can affect the long-term sustainability of e-government projects. Often, ministerial changes result in a situation where the new minister is not supportive of the ideas and innovations implemented by a predecessor. A similar risk arises because of frequent changes in administrative leadership when key functionaries are transferred. Project initiators need to ensure that key administrative functionaries will have an adequately long tenure to see through the implementation. Projects that take a very long time to implement are at risk because of rapid changes in technology, and the fact that realization of benefits comes long after the pains of implementing the application. This tends to heighten resistance. On the other hand, implementation, that is hurried through because of political pressure to show quick results or because of the uncertainty created by short tenures of administrators, carries its own set of risks. Often, corners need to be cut and key elements of the application are either not taken up or are done in a shoddy manner.

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An inappropriate definition of project scale and scope also results in failure. If the project’s scale is ambitions, the task may become unmanageable or resources may run dry. If new and untested technology is used some vital components of an application may not work because of the breakdown of technology. Similarly, a project scope defined too narrowly may not deliver the intended benefits. It is important to manage expectations of various stakeholders. Often e-government is treated as a panacea for several longstanding ills of a system. It needs to be recognized that governance reform is a multi-pronged process in which e-government is only one tool among many other changes that need to be made. E-government projects focused on transparency and corruption need to be implemented in a context of wider administrative reform. Poorly designed systems in terms of underlying architecture, technology and process can lead to implementation failures. If computerization is partial and not conducted with re-engineering initiatives, many of the benefits do not accrue. Such systems may function for a while because of the higher level of monitoring and supervision, but in the absence of process improvements such temporary gains cannot be institutionalized. Considering the degree of change that is involved in implementing e-government projects, there is a temptation to bypass existing employees by outsourcing work to private sector or hiring new recruits. However, unless the resistance among bypassed employees is broken through education, training or any other means, it continues to foster. The system can get sabotaged after the initial champion has left. Normally, close identification of a project with a single powerful champion automatically weakens the support that a project can receive from peers and other departments. It is best not to personalize a project. If some of the risk factors can be anticipated, project managers have a better chance of mitigating the risks.

6 Guidelines for Designing a Countrywide Strategy for E-Government

6.1 The Need for a Strategy and Implementation Plan Different countries are at different stages of evolution of e-government (see Figure 1.1) and need strategies to move further along the path of evolution. Countries which are just starting to move towards e-government need strategies to initiate e-government. Other countries need strategies to scale up activities and work towards more integration across agencies. Chapter 2 reviewed the overall status of e-government in India. A few agencies in some states have built successful applications, but many of these projects had not been replicated in other states. By and large, the urban population was benefiting from such applications, but the rural areas remained uncovered. India has three key challenges in moving forward on e-government: scaling up to cover more states and more agencies in each state, enhancing access to e-government services in rural areas and designing systems that will deliver greater benefits particularly in improving transparency and corruption. Perhaps, India is at a stage where a national programme of e-government, like in Singapore, Australia and Canada, can help scale up e-government activities. India launched the National e-Governance Plan in 2006, roughly eight years after the first e-government project became operational in India. The timing of the launch of such programmes is an important issue in defining a country strategy. Another important issue in the context of public sector reforms (of which e-government can be an important part) is the

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sequencing of reforms. Should e-government come as the culmination of public sector reforms preceded by other efforts to rationalize government activity and strengthen key institutions or can e-government applications serve as a catalyst for such change? Reform of the public sector is typically painful, slow and meets much resistance. The appeal of e-government in developing countries can sometimes overcome resistance to change. In a number of cases, e-government applications have been the catalyst for change and have enabled public sector reforms to move quickly. Sequencing of different reform initiatives can be a question of tactics, but for e-government to be effective, it must be implemented in a wider context of basic reforms. An e-government strategy will encompass answers to many such questions in the specific context of a country. Developing a strategy would require an assessment of the e-government readiness of a country. The strategy will define the nature of projects that are taken up, the organizational and institutional arrangements that can best harness resources and deliver the intended benefits. A policy framework would need to be defined for creating a supportive environment. Most importantly, the idea of ICT-enabled reform will have to be packaged and sold to different stakeholders such as citizens, civil servants and nongovernmental institutions.

6.2 Assessing E-Government Readiness There are a number of tool kits to compare e-readiness and e-government readiness of countries. Table 2.2 in Chapter 2 presented the rankings of selected countries on one such measurement. However, a more detailed assessment of e-government readiness covering technology infrastructure, human capacity and strength of existing institutions is needed to evolve a strategy. The first task is to establish the current stage of evolution of e-government in the country. Broadly, the factors e-government readiness would cover are: 1. the extent to which computerization of back-end processes has been conducted as well as hardware, software

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4. 5.

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and networking infrastructure required to provide access points to clients at the front-end; a strong intent to reform governance backed up by demonstrated political will and leadership; capacity to design and implement e-government systems as demonstrated by the existence of institutions, which can assist in systems analysis, design, process re-engineering and software development; availability of funds from public, private and multilateral sources to support the e-government effort; existence of an enabling legal framework encompassing privacy and security of data, legal sanction of new forms of storage and archiving, and laws that accept paperless transactions; and finally, the most important factor is the attitude of the civil servants. Civil servants need to have a customer orientation, willingness to change, adequate ICT literacy, and a modicum of honesty and integrity.

The assessment of e-government readiness has to be based on a mix of quantitative measures and qualitative assessment, which can best be done by appropriately trained consultants through field visits to different departments. No government is completely ready for e-government, but that does not mean that such projects should not be taken up.

6.3 Balancing Bottom-up versus Top-down Approach Some governments have opted for centralized, well-defined and controlled national strategy1 to launch the country into e-governance. Typically, large countries have chosen a more decentralized approach, allowing bottom-up initiatives, letting individual departments drive their own projects. Many of For example, Jordan, Mauritius and Singapore have followed a centrally driven strategy. 1

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these countries like India went for national programmes after a number of years of decentralized effort. In fact, many of the industrialized countries went for centrally coordinated strategy only when integration across agencies was needed for offering services through a portal. For decades, their agencies were offering services from departmental counters which were online with back-end databases. Whereas in developing countries, most agencies are moving from totally manual systems to some form of computerized delivery under the e-governance initiatives. There are risks and merits to each approach. A bottom-up approach of ‘letting a thousand flowers bloom’ without any coordination can result in overlap, lack of focus and waste of funds. A centralized approach is difficult to implement because it leaves very little room for innovation, self-starters and creativity, making it hard for buy-in from different departments. One of the major drawbacks of a bottom-up strategy is the use of a variety of hardware and software platforms by different field agencies. This tends to impede designing systems that allow agencies to share data and transactions across departments, which is necessary for any kind of integrated or joined up government.2 In some countries, different departments use their own methods of identifying citizens. This leads to a multiplicity of citizen identification cards, causing a problem for the citizen as well as creating confusion within government, resulting in multiple record-keeping of the same information. In countries that are new to e-government, a bottom-up strategy has been quite popular as this has allowed national agencies, state and municipal governments to launch projects that have quick impact and low risk. Many government departments have implemented such projects without waiting for the adoption of a national strategy or the creation of a coordination unit. Many local governments have seen impressive results because they are well placed to implement small, focused projects that involve low risk. ‘Joined-up Government’ involves new channels and new points of connection (using ICT) between different parts of government in the area of policy making, operations and services. 2

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Perhaps creating a central coordination unit offers the right balance. It promotes better use of resources, reduces overlap and allows for better goals setting. Additionally, it gives enough flexibility for initiatives to be carried out from lower levels of government. Clearly, defined guidelines by a central agency for data definitions, hardware/software platforms and citizen identification cards can be very useful in promoting data sharing. Many countries are adopting this approach with varying degrees of coordination and control. Colombia’s centrally coordinated approach, illustrated in Box 6.1, focuses on monitoring and achieved good results. Departmental ownership of e-government is vital because no external agency can drive the kind of change that is needed in implementing e-government. Box 6.1: Columbia’s carrot-and-stick approach Columbia opted for a top-down strategy and provided strong leadership with direct involvement from the president. The president established an action framework for ICT development and used both carrots and sticks by ordering government agencies to engage in e-government by creating a website, offering online services and conducting purchases online by a specific date. The government also provided a carrot by helping agencies to comply with the requirements. The government monitors and publishes the degree of agency compliance on a website, which has led to healthy competition between agencies. Source: Author.

A centrally coordinated approach can encourage departmental initiative through suitable incentives and also avoids the pitfalls of a completely bottom-up approach where data sharing is hampered and delivery of services such as licencing for a business, where a large amount of documents and data must be shared across departments, becomes difficult. Also, each department may not have the capacity to use the correct method and latest design techniques in developing the application. A central agency can provide the necessary guidance using correct methodology. It can also build and maintain common services that are required to be used by different departments.

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Reporting arrangements for such an agency within the government structure can be tricky. Typically, such agencies have been set up as part of the budget/finance ministry or even as part of the civil service reform agency. Such an agency needs a power base that enables it to coordinate work across different agencies. It also needs a home that enables it to attract a multi-disciplinary professional staff. Often, e-government projects are viewed as information technology projects, within the sole domain of the information services department, as opposed to an enabler of core business services. This approach has several drawbacks. For example, it results in low buy-in from the staff that is responsible for providing the service. Consequently, there is lack of change management and business process re-engineering needed for the project to realize the efficiencies associated with e-government. Andhra Pradesh is the best example of a centrally coordinated strategy (Bhatnagar 2003) at the state level and the NeGP is the most recent example of a centrally coordinated effort at the federal government level. In the recent years, several e-government initiatives have been undertaken in a few states in a bottom-up fashion. Some of these initiatives have delivered concrete benefits such as reduced the cost of accessing services by citizens and less corruption and enhanced revenues for agencies that were collecting taxes. However, only a few departments in a few states have been covered. The NeGP is trying to provide a framework to replicate these initiatives and provide impetus for long-term growth and expansion of e-governance within the country. The plan seeks to set up the core infrastructure and policies and implement a number of Mission Mode projects at the centre, state and integrated service levels to create a citizen-centric and business-centric environment for governance. NeGP will lay a special emphasis on process re-engineering and change management to ensure successful implementation.

6.4 Selecting Quick-strike Projects An important part of a state or country strategy is to identify the basket of services that will be taken up for e-delivery. Whether

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the delivery is through a unified portal or from a citizen service centre, concerned agencies that deliver such services have to be selected. Countries which are just beginning their e-government effort, quick-strike projects are helpful in demonstrating potential gains from e-government. They allow different stakeholders to understand what e-government holds in store for them. Such projects help in generating demands from citizens for more such initiatives. They enable the implementers and central teams to learn about specific bottlenecks and how these can be tackled. They help in breaking down any organized resistance within civil servants by demonstrating gains and losses for them. A list of quick-strike projects can be chosen by inviting proposals from different departments. Projects that are typically easier to implement and deliver significant benefits should be chosen. Some governments identify departments that have the maximal contact with citizens/businesses and others choose departments that are perceived to be corrupt and inefficient. Those departments that have already computerized the back-end are good candidates as implementation effort is less. Most important is the support for reform from the political and administrative leadership and the presence of a high-energy, innovative civil servant at a senior level to act as a project champion. Prioritizing pilot projects to choose quick-strike projects has been a good practice adopted by many early implementers of e-government. It is often useful to assess the risk and benefits of projects. To prioritize and select projects, many countries have developed a framework for evaluation, allowing them to choose those projects that complemented their priorities with those that demonstrated quick value for the citizen. The framework provided in Figure 6.1 illustrates a strategy that involves selecting pilot projects by balancing risk in implementation with the perceived value that the project will deliver to beneficiaries. Many government departments with little or no experience in ICT can test the waters by opting for projects in the top left quadrant representing low-value, low-risk projects. For example, they can begin by publishing websites that provide information about rules, procedures and basic information.

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Beginners can test the water

Projects to be avoided

Countries embarking on e-government. Projects include agency websites offering useful timely information

Projects that use untested, expensive technology

Low hanging fruit

High value and complex execution

Quick-strike projects for countries with some maturity. Online service delivery by single departments such as driver’s licences and land registrations.

These projects require significant investment, long implementation time-frame and coordination of several departments. Examples include e-customs and e-tax.

High

Value

Low

Figure 6.1: Balancing risk and value in selecting projects

Low

Risk

High

Source: Author.

This generally is low in risk and low in value; however, in some countries where government information is difficult to access this approach has much value in creating a basic sense of transparency of government information. Low-risk and high-value projects (bottom left quadrant) are often innovative. Such projects are started by individual departments and target a specific community need, such as the ability to acquire forms online. High-risk, low-value projects (top right quadrant) are to be avoided. These often involve initiatives that are untried, untested and can significantly affect the government’s credibility if they fail. High-value, high-risk projects (bottom right quadrant) often provide significant benefits to citizens and businesses and involve services such as the ability to pay online fines, taxes and conduct procurement processes online from bid announcements to final selection. These require complex and long implementation periods and coordination from more than two departments. Many projects aiming at ‘joined-up government’ fall into this category.

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6.5 Importance of Capacity Building A large number of failures of e-government projects can be attributed to a lack of capacity within the government to conceptualize and implement e-government applications and a lack of continuity in project leadership. In many unsuccessful projects, technology performed well but managers failed to recognize the importance of managing change. The transformational nature and large scale of e-government makes the task complex. Civil servants have diverse academic backgrounds. Normally very few have an engineering or management background. It is not easy for them to keep abreast of technology, particularly when rapid changes are taking place. Service training focuses on the skills of general use. In the few programmes on ICTs, the focus is rather narrow on some aspect of technology rather than how to make it work. For effective leadership in a project, multidisciplinary approach and good coordination skills are needed. Therefore, to mount large nationwide e-government programmes, concerted efforts are needed to build capacity. Given the continuous growth of the IT sector in many countries and the consequent gap between demand and supply of trained information system professionals, it is unlikely that e-government projects will be able to draw manpower from the existing pool of IT professionals. There is a clear need for expanding the pool of trained manpower which can conceptualize, design and implement e-government projects. Capacity would need to be built within the existing government officials and IT professionals besides launching open educational programmes to develop interdisciplinary skills. A variety of training programmes would be needed for developing personnel to play different roles in the execution of a countrywide strategy/programme. Capacity building will help to maintain a continuity of approach despite changes of key incumbent officials during implementation. The types of training programmes that need to be designed are: 1. E-gov. champions programme: for political and administrative heads of departments. Such functionaries need

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2.

3. 4.

5. 6.

not be concerned with project details, but need to provide leadership and an enabling environment. They need some understanding of the potential benefits of e-government and key challenges in its implementation and the key elements of an enabling environment. Chief Information Officers (CIOs): comprehensive skills to implement e-government project from conceptualization to complete rollout. CIOs need knowledge inputs in technology and its management, project management and concepts of e-government. They also need to develop the right attitude and skills to provide leadership to project teams and manage change. Chief Technology Officers: need inputs on advanced topics in security, architecture, standards to supplement their technical background and skill set. Users of IT systems in government departments: trained specifically on the application package as part of the project implementation. Large numbers will need to be trained for every project. External users: for example, Company Secretaries and Chartered Accountants acting on behalf of companies to file online tax returns or incorporate new companies. General: IT awareness and training for citizens.

Liberal budgetary provision needs to be made for building capacity. A need assessment exercise to estimate total demand for training for various roles and the institutional capacity to offer such programmes needs to be carried out on the basis of projected levels of e-government activity. NeGP in India has earmarked 10 percent of the total expenditure for capacity building (see Box 6.2).

6.6 Promoting Public–Private Partnerships Popularly believed to be the fastest and most efficient approach to rolling out e-government services, public–private partnerships (PPP) are often a key element of an e-government strategy.

104 Unlocking E-Government Potential Box 6.2: NeGP—National e-governance plan NeGP aims to improve the delivery of services by government agencies at the national/state and local levels to citizens and businesses by making services accessible at conveniently located common service delivery outlets and ensure the efficiency, transparency and reliability of such services at affordable costs. Nearly 26 Mission Mode Projects (MMP) have been defined covering central government agencies (for example, income tax, central excise, passports, Department of Company Affairs) and state specific projects (for example, agriculture, land records, transport, treasuries, commercial taxes, gram panchayats, municipalities, registration, police, employment exchange, and e-district). A few of the MMPs cover integrated projects covering the entire country (example, India Portal, e-courts, e-procurement). All services are to be supported by three infrastructure pillars to facilitate web-enabled services anytime, anywhere access in the long run: 1. Connectivity: State Wide Area Networks (SWANs)/NICNET; 2. National Data Bank/ State Data Centres (SDCs); 3. Common Service Centres (CSCs): primary mode of delivery in rural and urban areas. NeGP is a centralized initiative with de-centralized implementation. NeGP will enable state and central agencies that plan to implement an MMP to draw upon a central pool of funds by making proposals that conform to the guidelines developed in a consultative manner and institutionalized though a policy framework. Standards are being developed for technology, data, information, software, architecture to which MMPs will adhere. The framework emphasizes public–private partnership in the implementation of MMPs. NeGP is a large and complex endeavour covering 20 Government of India (GOI) departments, 30 states, 360 departments in all the states and nearly 500 implementation agencies. The total expenditure over 5–6 years is likely to exceed Rs 500 billion involving 70,000 man-years of effort. About 25 percent of the outlay will be spent on creating the core infrastructure and human capacity and the remaining 75 percent on the implementation of MMPs. Realizing that NeGP is a large and complex programme, new organizational structures are being devised to ensure successful implementation. At the national level, an e-governance council, headed by the Prime Minister, will over-guide the entire effort and provide the necessary political backing and push from the highest echelons of government. At the central level, a Project e-governance Mission Team (PeMT) will be created to plan, strategize, define policies, devise funding framework, create standards and build capacity. At the state level, a Programme Steering Council should (Box 6.2 contd.)

Guidelines for Designing a Countrywide Strategy for E-Government 105 (Box 6.2 contd.) be set up ideally under the chairmanship of the Chief Minister in the state to provide the overall vision, broad policy and guidance to SeGP. At the programme level (in a state), a State e-governance Mission Team (SeMT) will function as a full time advisory body in undertaking the e-governance projects. At the project level, for each MMP, a full time dedicated PeMT will be created. This team would conceptualize the project and work with private partners to architect and develop the pilot project, handle issues with its rollout phase, evaluate and enhance the project. Source: Author.

The need for PPP does not solely come from the government’s inability to fund e-government investments. Rather, the lack of human capacity within the government makes it necessary to partner with the private sector to benefit from their expertise. In the simplest arrangement the private sector is used for outsourcing different components of work in developing an application. In several Indian projects (see Bhoomi, Case 9.1 and CARD, Case 9.2), software development, training, data entry of manual archives and maintenance were outsourced to the private sector. Private companies can also be used to develop an e-government application as a product, as was done in the case of VOICE (see Section 9.3). The choice for outsourcing can vary from a multinational consultant/vendor to a small local company. Ideally, partnering arrangement with overseas companies should lead to a capacity development of local agencies. That is why some governments insist on involving a local partner. PPP implies a stronger partnership built around the ‘build, operate and transfer’ (BOT) or ‘build, own, operate and transfer’ (BOOT) models.3 When the private sector operates an e-government application, in some cases private sector parties BOT/BOOT (Build–Own–Operate–Transfer) is a new concept in infrastructure development that allows direct private sector investment in large-scale projects such as roads, bridges and ICT. To ‘build’, a private company invests in a public infrastructure project and provides its own financing to construct the project. To ‘operate/own’, the private company then owns, maintains and manages the facility for an agreed period and gains from the investment through fees. To ‘transfer’, after the agreed period, the company transfers ownership and operation of the facility to the government. 3

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can be reimbursed a fixed fee per transaction, as in e-Seva (Case 9.4). Alternatively, it can charge a user fee from citizens/businesses who avail the service (e-Procurement in AP in Section 10.2). A revenue sharing model can be used as well. However, not all PPP projects have been equally successful. For example, a PPP initiative to launch web development projects for business services agencies in Hanoi suffered because of the excessive reliance on outside consultants, which resulted in lack of real ownership of the project at the government level (Desai and de Magalhaes 2001). Several governments, as in case of Mexico, South Africa and a few state governments in India, have been quick to encourage private partnerships as a way to share or transfer start-up costs for e-government projects. While this may be cost effective in the short run, many government agencies find themselves ‘locked in’ to agreements that offer exclusive privileges to companies in terms of product use and purchase of equipment. Public agencies need to carefully negotiate terms of agreement when entering into private partnerships to avoid giving firms special privileges. For successful execution of PPP strategies, it is important to recognize that the contracting arrangement should deliver gains to all partners. Often, the fact that the private sector needs to make profits is forgotten by the government contracting agencies. It is a good strategy for governments to implement pilots on their own so that cost structure and implementation issues are well understood. This understanding can be useful in defining contracts when scaled-up versions are being implemented on a wider scale. Implementation of the e-Procurement project in AP (see Section 10.2) exemplifies how these partnerships can be successfully executed.

6.7 Enabling Legal and Economic Frameworks A lack of mutual trust between the citizens and governments (which is often the case in many developing countries) can be an inhibiting factor in developing e-government. Setting up a legal enabling environment is necessary to build this trust and to

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validate the use of e-government applications. Creating a certification authority, payment gateways and e-commerce legislation, as well as amending laws to reflect information access, privacy, data security, evidence laws and cyber crimes also need to be considered. In the specialized area of digital signatures, some commentators are of the opinion that written signature requirements pose the greatest stumbling block to the development of electronic commerce and advocate a unified global regulatory scheme for digital signatures. It must be noted that different countries or in some cases different states within the same country have considered or proposed digital signature statutes. Security has several aspects. Transactional security covers electronic communication and contracts and electronic evidence. Computer network security deals with cyber crime and hackers as well as viruses. Privacy deals with how data about individuals is collected, processed and disseminated. Data must be fairly and lawfully processed for limited purposes. Data should be processed in accordance with individuals’ rights and kept secured. It should not be kept longer than necessary. Domestic national security and privacy interests are conflicting. After 11 September 2001, many governments exempt national security agencies from various privacy law and regulations. Security is also a component for privacy. Thus, the use of cryptography for electronic communications is seen as an acceptable use of technology to establish privacy. However, such technologies counter the interest of security agencies. Experience from some developing countries has shown that privacy issues do not seem to be a major concern as there is greater cultural acceptance of government collecting information about an individual. Governments have taken different approaches in implementing a legal framework for e-government and e-commerce. Some have opted for the creation of an umbrella cyber law4 that encompasses all e-transactions. A large umbrella law saves the need Cyber laws refer to laws regulating the Internet. These can deal from security issues to regulating Intellectual Property Rights over the Internet and rules for dealing with Internet fraud. 4

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for amending a multitude of laws that address procurement, tax, archives, etc. In some countries waiting for the passing of an umbrella cyber law is too politically contentious and governments have chosen to amend existing laws to avoid the delays associated with passing a major piece of new legislation. The United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce (hereafter, Model Law) is a generic law that can be extended and enhanced by individual countries if they wish. In devising the Model Law, UNCITRAL had set out to develop rules that could be used in all countries regardless of their technological proficiency or the legal framework under which these countries operated. The Model Law provides, generally, that electronic communications should be given equivalent legal effect to paper-based communications and, specifically, addresses how certain types of electronic communications could substitute existing paper-based means of satisfying requirements of writing, signatures and contract formation (Samtani and Tan 2003). The Model Law has been adopted by many countries, including, Australia, Hong Kong, the Republic of Korea, Singapore and the Philippines. Other laws related to the public sector also need to be changed. For example, in Chile, the government had to amend the tax code to authorize taxpayers to present their annual reports and accounts, and tax returns online (see Case 10.2). In India, legislative changes were needed in implementing registration of property deeds (Case 9.2) and maintaining land records electronically in the case of Bhoomi (Case 9.1). An enabling economic policy such as liberalization of the telecom sector that makes the Internet easily accessible can promote widespread use of e-government. Privatization can be explored in ICT agencies of the government which have failed to contribute to the e-government effort. In its widest context, privatization refers to a range of policies to embrace private sector capital in the development of the industry, everything from outsourcing to full-blown market liberalization. Privatization, in its narrow sense, means full or partial transfer of ownership of a state-owned enterprise to the private sector, usually by share

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issue privatization. Overall, the evidence suggests that while privatization is usually associated with a faster fixed-line growth, greater profitability and higher productivity, evidence on prices, net employment effects and capital investment are less clear-cut.

6.8 Strategy for Reform: Incremental versus Big Bang Few management reforms using ICT innovations have the sole aim of reducing corruption or increasing public accountability. Most have both efficiency and other softer goals and the two goals are intertwined. But stakeholder resistance to corruption and accountability goals is much greater. Corrupt public agencies cannot be expected to embrace such reforms with any enthusiasm. Consequently, a reform strategy to be successful will need to carry out a very thorough and insightful stakeholder analysis and find ways to overcome or bypass the resistance. Stakeholder analysis will need to distinguish between those likely to benefit, those who will be largely unaffected, those who will suffer minor losses of benefits, privileges, status or power and those who are likely suffer major losses. The reform strategy will need to address each of these groups. Compromises are generally unavoidable. The analysis must include both informal reality as well as formal arrangements. Official bureaucracies often have difficulty accepting informal realities that everyone knows exist, but few are willing to acknowledge it publicly. This will often include major irregularities. In some cases, huge amounts of public resources are being diverted to personal benefit, which the reforms, if successful, would stop. For example, posting the tax code on a website and permitting individual taxpayers to complete self-assessments and submit their tax returns and tax payments electronically will help stop huge private benefits being reaped by tax collectors who previously ‘negotiated’ with taxpayers. And the same is true for customs officials dealing with importers. Such systems must be backed up with very rigorous spot audits. Control efforts and resources can then focus

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on preventing corrupt audits. Resistance to such reforms can be vicious. For example, in one instance, customs officers in Bangladesh simply smashed the computers introduced at ports, forcing the reforms to be withdrawn (Landell-Mills 1999). In most situations, there are individual ‘drivers of change’ who, for various reasons, are strongly motivated to support reforms. Generally, these are decision-makers who are not the beneficiaries of corruption, who may even resent it and may see significant political advantage in ‘cleaning up’ a corrupt agency. Some will be driven by high personal integrity. The reform strategy will need to identify and nurture the drivers of change. These may be both within the public bureaucracy and the civil society—such as citizen watch groups like the national chapters of Transparency International, NGOs, both local and international, and the media. In the most difficult cases all such groups will need to be mobilized. A reform strategy should not be overly ambitious. Incrementalism may triumph over the ‘big bang’ reform that is sometimes preferred by crusading politicians brought to power on a wave of public revulsion at widespread corruption. In the end, what is important is ensuring the sustainability of reform. However, ICT innovations may sometimes bring about system changes that cannot be easily reversed, for example, changes brought about when accounts and land registries are computerized. These are the reforms to be promoted first. Moreover, some low-level ICT innovations can subtly change the way business is conducted, making it much more transparent, so that the change takes place before the ones who have lost out have realized the consequences, and faced by a fait accompli, find that it is too late to oppose the reform.

6.9 Conclusion No government is completely ready for e-government, but that does not mean that such projects should not be taken up. It is important to think through a big picture of how e-government will be rolled out over the next four to five years. A balance

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should be maintained between planning/co-ordinating and action. Experience from many countries has shown that strategy and planning have important roles in creating vision, goals and targets. The articulation of a vision, which could take some time given the need to reach consensus and win over stakeholders, should not impede the launching of small-scale quick-strike projects. A few quick-strike projects implemented in a nine to twelve month time-frame can motivate government agencies to follow suit and help bring momentum to the conception of a national strategy and legal enabling framework. If there is an overemphasis on planning and coordination (such as forming various committees) and not enough attention is paid to the actual implementation, the credibility of the strategy may suffer in the eyes of the civil servants. In devising an e-government strategy there is no one size that fits all. Often, very different strategies have been used by different states/countries, as is illustrated in the case of Andhra Pradesh and Karnataka which are considered leaders in e-government in India (see Box 6.3). In the initial years, the outcome did not appear to be very different because the bulk of the civil service in both states was keen on preserving the status quo. However, in the long run, AP is moving ahead because of its investments in capacity building and developing a coherent vision and strategy. Box 6.3: A tale of two states Karnataka’s e-government effort was largely based on several key departmental initiatives. Some of these projects, like Bhoomi and Khajane, are now up and running and are beginning to create an impact. In Karnataka, there is an almost complete reliance on the National Informatics Centre (NIC-a state agency) for development of applications. Karnataka later paid attention to the task of developing a vision and strategy for e-government. A strategy paper was formerly launched in October 2002. New institutional arrangements were created to promote e-governance. A new post of secretary, e-governance was created in the department of personnel and administrative reform. The task of promoting the growth of the IT sector in Karnataka has been separated from the task of using ICT within the government. (Box 6.3 contd.)

112 Unlocking E-Government Potential (Box 6.3 contd.) Andhra Pradesh (AP) started with a well-articulated vision and strategy in 1999. Two major planks of AP’s strategy are strong partnership with the private sector and a very strong emphasis on capacity development of civil servants. The Andhra Pradesh Programme for Chief Information Officers is an example of rare foresight on part of the political executive. The programme was designed by the Indian Institute of Management Ahmedabad. Nearly 10 residential programmes, of an 8–12 weeks duration, have trained 200 officers from 25 departments in the last 10 years. Senior line officers with an aptitude for ICTs are selected from different agencies. The programme aims to transform participants into Chief Information Officers (CIOs) who can lead large e-government projects from conceptualization to implementation. The programme objectives are: • Provide a holistic view of an e-government project. Define scale and scope of project to balance benefits and costs. • Provide adequate skills in the analysis, design and implementation of an e-government application. Learn to re-engineer business processes, enact/revise regulations for efficiency, transparency and reduced corruption. To effectively monitor such projects during their different phases of life cycle. • Provide exposure to the current trends in hardware, software, communications and networks. Procure cost-effective technology and to acquire a variety of skills for handling techno-commercial decisions. To interact meaningfully with agencies who have been awarded contracts. • Inculcate the importance of managing organizational changes and interagency collaboration and acquire the skills for change management. AP’s e-government programme is centrally coordinated and many projects are centrally directed. CIOs have played significant leadership roles in the AP e-government programmes and projects such as the CARD, e-Seva, SmartGov and e-procurement. The largest difference between Karnataka and AP was in political support. In AP, the Chief Minister, Chandrababu Naidu (1998–2004), was very aggressive in pushing the use of technology. Andhra’s e-government programme was widely publicized and admired. In Karnataka, political support existed but at a lower key. Karnataka also has a few projects that are nationally very visible. Source: Author.

7 Making E-Government Work for Rural Citizens Reducing poverty and generating employment are the topmost priorities of many developing countries. In spite of many propoor programmes directly targeting poverty and a decent rate of Gross Domestic Product (GDP) growth, countries like India have not been able to tackle poverty and hunger effectively. Asia is still home to the world’s largest number of poor people. If the Millennium Development Goals (MDGs) are to be achieved in the 2015 time-frame, there is a need to develop new effective strategies. Therefore, any alignment of e-government with the needs of the poor will make e-government politically more attractive in most developing countries. Large investments are being made in e-government programmes in many countries and currently, there is a lack of pro-poor focus in these programmes as was pointed out in Chapter 2. A few projects in some countries have yielded significant positive gains for the poor demonstrating the potential of e-government to impact the poor. However, there are a number of challenges in providing e-delivery of services in the rural areas that need to be overcome. Therefore, a strategy needs to be developed to align e-government to the needs of the poor and develop models of delivery that can be cost effective in rural areas. This chapter presents a few ideas on how large investments, being made in many developing countries on e-government, can be focused on creating an infrastructure that can deliver government services which are directly beneficial to the rural and urban poor. Such infrastructure could also be used to pipe in services from the private sector that benefit the poor. Section 7.4 identifies projects that have delivered different types of benefits to the poor so that similar projects can

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be taken up by various countries. The chapter also explores the ICT enablement of existing programmes and governance reform initiatives that are designed to accelerate the development process and help in improving MDG performance.

7.1 How Can ICT Use and E-Government Help the Poor? Figure 7.1 indicates that the poor can be helped by ICT in a variety of ways: by reducing the cost of inputs for their economic activities, enabling them to get better prices for their produce and by fulfilling their social needs which may otherwise not be met. Both the private and public sectors are currently engaged with the poor in their day-to-day life activities. Since the main reason for high cost of servicing rural client is the lack of basic infrastructure, it is the business of the government to ensure that the poor are not put to a great disadvantage even in the case of ICT infrastructure. Figure 7.1: Where can ICTs help rural citizens? Private sector and cooperatives

Supply of inputs

Procurement of produce

Issue of certificates and licences Development info on projects, schemes, expenditure and income

Supply of consumer products and services Knowledge and info useful for economic activities

WHERE CAN ICTs HELP RURAL CITIZENS?

Entertainment and info for social needs Training for employment and economic opportunity

Source: Author.

Minutes of panchayat proceedings Delivery of health and educational services

Access to markets

Common Services Centre

e-Government

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The poor can be helped indirectly if organizations serving them become more efficient. In the last three decades, ICTs have enabled private sector organizations in developing countries to become globally competitive (Glinskaya and Narayan 2007). Government organizations have used ICTs for internal efficiency and improved delivery of services. A few experiments have demonstrated that many pro-poor growth strategies such as ensuring property rights, connecting the poor to markets and lowering transaction costs can be made more effective through ICTs. The poor can also be helped more directly. ICTs are seen as a tool for life long learning for citizens, enabling knowledgeable workers to improve skills and their capacity to innovate by accessing knowledge via the Internet from the public domain. ICTs should be able to play a similar role for the rural and the poor to help them participate in the emerging knowledge society. Creation of multi-functional telecentres in the rural areas can provide avenues for employment become a means of training in new vocations and a source of information for key economic and social activity of the community. The use of ICTs within government systems can improve the delivery of services to the poor and empower them to participate in decisions on resource allocations that affect them. Transparency and accountability can also be increased. The real challenge lies in the inclusion of rural populations.

7.2 Challenges in Building Pro-Poor E-Government Pro-poor e-government will need back-end computerization in local governments that deliver services which are important for rural areas. In India, these are the village/taluk and district level Panchayati Raj institutions and government agencies present at these levels. Currently, the back-end computerization is limited to the district level. However, current computerization is focused on planning and monitoring and is not geared for delivering services. The other key problem is the one of creating service centres

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from which rural poor can access services delivered by government agencies as well as the private sector. Creating economically viable telecentres in rural areas is a possible means of providing access to rural and isolated populations. Many countries like India, Sri Lanka, Mongolia and Fiji have set up telecentres in remote rural areas. Similarly, many NGOs have set up telecentres in rural areas. For example, in India about 10,000 of the total 600,000 villages may be covered with a telecentre today. Only half of these have Internet connectivity. Many of the telecentre projects in different countries were set up a decade ago but have failed to sustain and scale up. Some experiments like Gyandoot (see Box 7.1), which had many innovative features, failed to sustain because of weak infrastructure and the fact that the back–end computerization was not done. Box 7.1: Gyandoot project The Gyandoot project was launched on 1 January 2000 with the establishment of a low cost Intranet connecting a server at the district headquarters with 20 government-owned information kiosks in five blocks of the district. Subsequently, 17 privately owned kiosks were added. The information kiosks (consisting of a computer, a modem, a printer, a UPS and furniture) were located in government buildings or in a market along the main road. Each kiosk provided services to 20 to 30 villages and a population of about 30,000. The owners of the kiosk, mostly young and educated, were jointly elected by the village committees and the local community. Villagers could apply for different government services (copy of land record, old age pension, birth certificate) and file complaints online and access market prices through these kiosks. As the back-end at the district was not computerized, hard copies of e-mails received by the official at the district headquarters (complaints and applications) were forwarded manually to the concerned departments. To ensure financial sustainability of the project, a fee of Rs 15 was charged for the services provided at the kiosks. Kiosks had to pay 10 percent of the income from government services to the district council. A licence fee of Rs 5000 per annum was also paid by a kiosk. Privately owned kiosks added services such as STD/PCO, photocopy, horoscope and computer training. To popularize the concept, cash awards (Rs 2,000–5,000) were offered to the three best performing kiosks. Moderate activity levels (more than 6,000 e-mail complaints) were reported in the very first year of the project operation. Villagers who use (Box 7.1 contd.)

Making E-Government Work for Rural Citizens 117 (Box 7.1 contd.) the Gyandoot kiosks saved time and cost of one trip to the district headquarters. Over time, infrastructure bottlenecks such as slow and unreliable dial-up connectivity and irregular power supply (a 6–hour power cut was a regular occurrence) forced additional investments in power back-up and made these kiosks economically unviable. Often, the availability of power supply determined the timings for which the kiosks could be opened. The number of users had diminished significantly by the third year of the project. The initial team of district officers who conceived the idea and implemented it enthusiastically were transferred out. Various departments in the district headquarters slowly reverted to the unresponsive attitude to citizen’s requests for services and complaints. An important lesson is the need to institutionalize the improvements and not make them dependent on the project champion. The back-end should have been computerized and significantly re-engineered so that applications received electronically could also be processed fast within the district headquarter. An evaluation study (IIMA 2002a) reported that the grievance redressal system, which was very popular initially, left 90 percent of the users dissatisfied in terms of response time as well as corrective action. Similarly, the process of obtaining land records had become more tedious and prone to corruption. Prior to Gyandoot, land records could be obtained directly from the patwari, (though ‘speed money’ had to be paid). But now, even though the request can be filed electronically, speed money has to be paid to the tehsildar (the authorized signatory of the land record) and sometimes to the kiosk owner who printed the land record certificate. For issue of certificates, kiosk owners had replaced the earlier agents, doing the job for a fee (more than that prescribed by Gyandoot but less than the fee charged by other agents). Source: Author.

Some of the reasons why telecentre projects did not scale up are:

Poor Infrastructure and High Cost of Access in Remote Areas Most developing countries lack the necessary infrastructure to build computerized system and provide access to such systems via the Internet in rural and remote areas. Even the basic infrastructure of a stable electricity supply does not exist in rural/remote areas of most countries. Basic communication infrastructure such

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as access to telephony is also poor as is reflected in Table 7.1. In the absence of telecommunications infrastructure, providing Internet access in rural areas becomes expensive. The cost of installation and maintenance are also higher than in urban areas. There is a need to encourage the establishment of Small and Medium Enterprises (SMEs) in rural areas which can service the ICT infrastructure at a lower cost.1 By some estimates, the cost of an Internet kiosk in a rural area is nearly twice the cost in urban areas because a rural kiosk needs a power back-up as well as a satellite connection for communication besides the computing equipment (Shakeel et al 2001). Some of the countries are experimenting with new technologies which can lower the costs of providing access in rural areas. Even if Internet access is provided, it is unlikely to be broadband, limiting the kind of applications that can be supported. The experience of some countries suggests that the problem is one of the last mile. Many countries, like India, have invested in large networks using optical fibre which connect the semi urban towns but do not reach the villages.

Problem of IT and General Illiteracy In addition to the problems of infrastructure, there are problems of illiteracy that need to be overcome. Applications have to be designed for use by illiterate people and non-English speaking people to provide a local language interface. Use of devices such as touch screens, can further multiply the costs. Building content in local languages can also be an expensive proposition. In general, there is a lack of IT literacy. This requires that most online services need to be offered through an intermediary (operator) who can understand the need of the illiterate client, operate the computer to service the need and often interpret the out-put if the need is informational. In most rural/inaccessible areas, large pockets of semi-literate populations have not yet had any experience of benefiting from Akashganga servicing the computerized milk collection centres in 1000 locations in rural Gujarat. 1

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access to knowledge and information. Nor can they conceptualize the benefits of electronic delivery of government services. The demand for services, therefore, needs to be catalyzed as it is weak. An effort needs to be made to understand the latent needs. In the face of a weak demand, building appropriate content without a market pull working is another challenge that is not recognized.

7.3 How Can Telecentres Be Made Viable? These challenges suggest that the task of creating viable telecentres is too large for any single organization to handle on its own. A partnership between the government, civil society and private sector is the best way to promote digital inclusion and pro-poor government programmes. The private sector can bring in the investments and operational management expertise, the government can provide the enabling policies and bridging subsidies and the civil society can intermediate between the technology and illiterate populations by interpreting the needs and scouting for solutions. Some of the telecentre projects built by the private sector have scaled up in a limited way and have been successful in catalyzing and servicing the demand. There are lessons to be drawn from these projects (IIMA 2004). Such projects were focused on creating economic viability as a means of ensuring long-term sustainability. One of the basic conditions for viability is that the telecentres are multi functional (Senthilkumaran and Arunachalam 2002). They should offer service which can serve all kinds of needs (see Figure 7.1) of the rural population. The design of each project must focus on services that help generate income. These could be affordable user fees, commissions from delivery of priced services offered by the private sector and opportunities of earning advertising revenues. Rural populations are willing to pay a fee for systems that have very clear business or personal uses. Villagers are not enamoured of electronic delivery. The uptake depends on whether significant value is being delivered in comparison with existing ways of receiving information and services.

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Other useful lessons include the need to work with many different technologies to overcome constraints in delivering services, adapting business models to local contexts to make them sustainable, and harnessing entrepreneurial capacity of the rural community—they possess great acumen, but need plenty of training. Figure 7.2 identifies the four basic conditions that will need to be fulfilled for telecentre projects to be successful. Figure 7.2: Basic conditions for making telecentres viable Technology that makes rural access inexpensive and robust

Applications that draw a large clientele that pays for the service, ensuring economic viability of the kiosk

Bridging the Digital Divide

NGOs and grassroots organizations that catalyze and manage the community building process

Content that empowers rural citizens and enables formation of communities

Source: Author.

The government can be helpful by identifying services that are needed by a large proportion of the poor, so that these can serve as the killer applications. For example, in Karnataka, Bhoomi has become the killer application supporting 800 privately run telecentres. Governments need to develop pragmatic policies on providing subsidies to compensate for higher costs of taking ICTs to rural areas or vulnerable groups. However, subsidies are not required in all cases and private sector may well be able to provide access in those areas which have a strong rural economy. There are many ways to provide the subsidy on a competitive basis. Only in the most backward areas would a direct intervention by the government may be needed. Private

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sector has already recognized the importance of an intermediary. Successful telecentre projects have spent a significant amount of effort in identifying a local entrepreneur who can play the role effectively. The governments will need to do more on providing incentives to the private sector as well as directly contributing to development of content. Based on the Indian experience, success in setting up telecentres on a large scale is likely by organizations with financial resources, leadership, strong project management and ability to discover valued services (Network Orchestrators). Four models have emerged: 1. Large private/public/cooperative sector companies operating in rural markets may be able to derive sufficient value by improving their own business processes to make such centres viable and scalable (Bhatnagar nd).2 Once these are established e-government services and services from other private content providers can also be piped in. For egovernment services government agencies should take the initiative to build partnerships with these organizations. 2. E-government services that are valuable and can support a user fee can be delivered through franchised telecentres which are privately owned. 3. Private sector companies can partner with providers of valued service as well as with rural entrepreneurs (who create and operate the access points) to orchestrate the operations of a large network of kiosks (Bhatnagar nd).3 The government must come forward to partner with such agencies. 4. Government subsidizes access to basic infrastructure and invites network orchestrators to set up a specified number of telecentres giving them an exclusive access to government services. E-chaupal is the best example of this model. ITC has established 6000 rural Internet kiosks to provide information and services to farmers that sell their produce to ITC. 3 Drishtee is an example of this model. Nearly 1500 kiosks are operational in India. 2

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There are three ways in which the needs of the poor could be targeted by an e-government programme: building infrastructure to provide access points, provide incentives to providers of content for rural populations, building applications that directly benefit the poor and encouraging participation by the poor in the design of applications so that needs of the poor are articulated. For creating telecentre based access to rural populations, governments need to put together an organizational design that will bring together different partners with specific value proposition, incentives and rules to cooperate. India is addressing some of the above issues through its National e-Government Plan (NeGP) which aims to (a) implement mission mode projects in key departments (that focus on development or serve rural populations) with large public interface, (b) ensure that even the remote areas can benefit from ICT and (c) provide generic programme components including capacity building. Four of the 26 mission mode projects under the NeGP have a direct focus on serving the rural populations (see Figure 7.3). First is the creation of 100,000 Citizen Service Centres (CSCs) with private entrepreneurship where the aim is to create access points for one out of six villages for delivery of services as mentioned by the department of information technology (CSCs). Each state has been carved out into several regions and bids have been invited from private and non-governmental organizations to orchestrate the creation of CSCs within the specified regions. The government has promised to build networking infrastructure that the CSCs can connect to locally. Different states are in different phases of rollout of this programme, but in general, the progress is slow with only a few states having processed bids. The other two projects on e-district and e-panchayat will support computerization of the back-end in local governments at the district and panchayat level to offer services to rural populations. The fourth project is on creating a unique identity for every citizen (UID nd).4 It proposes to initially create a central database of residents above the age of 18 years, and generate a Unique Identification number (UID) for all such residents. This UID 4

Project UID is an MMP that is being driven by the Planning Commission.

Making E-Government Work for Rural Citizens 123

would at the first instance serve as the basis for efficient and effective delivery of various social and welfare services to persons below the poverty line (BPL). Figure 7.3: NeGP MMPs focusing on the poor

Employment exchange Services & information from panchayats

Services from private sector RURAL CITIZEN

Services from collectorate and district/state agencies

Unique ID (UID) Use of data for improved targeting

ePanchayat back-end computerization of panchayats CSC Access point for service delivery

eDistrict back-end computerization of departments delivering services to rural population

Agriculture back-end extension services, mandi computerization

Source: Author.

Often, the failure to impact the poor comes not from a lack of intent and strategy but from poor implementation. Institutionalizing national e-government plans and designing implementation mechanisms that will ensure the development of appropriate applications and make them sustainable should be seen as the more important part of the strategy building process.

7.4 Examples of Pro-Poor E-Government Applications Once the CSCs are created and back-end in district administration and panchayats is computerized through MMPs in NeGP, a variety of services can be offered to the rural population from CSCs. Lokvani is a good example (see Box 7.2) of the kind of services that could be scaled up.

124 Unlocking E-Government Potential Box 7.2: Lokvani Lokvani, a rural e-governance application, was started in 2004 by the government of Uttar Pradesh in Sitapur district in partnership with existing private cyber cafes. Lokvani offers various online services such as land records, information on various government schemes and status of various applications through cyber cafes. Of all the services offered, the online grievance system has been more popular among the residents. People can file their complaints through kiosks for a nominal fee and kiosk owners ensure that complaint has been filed properly and a reference number has been issued. Residents can then track their complaint status online through visiting these kiosks later. In addition, the government has also started a telephone based service, Lokvani Complaints Status Information System, through which residents can get information on the complaint, complaint status, name of officer to whom the complaint was referred and the response through dialing a designated number (Prologix 2005). On an average, the government receives 100–150 complaints daily and more than 60,000 complaints have been redressed in 1.5 years in Sitapur alone. Source: Kumar 2006.

Ultimately, the impact of e-government on the poor will come from meaningful identification of applications that either help the poor increase their income or lower the cost of their livelihood activities. Table 7.1 provides several examples of projects that have been implemented on a pilot/full scale basis in different countries and have delivered benefits to the poor. The applications are classified according to five major types of benefits delivered. In each type of benefit, examples with brief description are provided that deliver specific outcomes related to the major benefit. Both types of applications are covered—those which deliver government services to rural populations and those which make rural development programmes more efficient and effective. For most examples, a reference is provided where more details can be obtained. Amongst those applications that deliver services to the poor, computerization of land records is a prime example of significant benefits being delivered to the poor. The Bhoomi case (see Case 9.1) describes how poor preferred the computerized system while the rich urban farmers preferred the old manual system.

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E-government at the local government level is likely to create the most impact on the poor as most serviced delivered by the local governments in rural areas are meant for the poor. A few panchayats (local elected government) in India have used ICT for service delivery.5 As was pointed out earlier, NeGP includes a MMP on panchayats. Gujarat is perhaps the best example of a concerted effort to take ICTs to local government level in a well coordinated programme (see Box 7.3). Box 7.3: Progress of e-panchayat in Gujarat Gujarat has 25 districts, 223 taluks and 13693 village panchayats with a total rural population of 31.7 million. The yearly annual expenditure of the panchayat department in 2006–2007 was Rs 3.352 billion, whereas the revenue earned was Rs 4.086 billion. Gujarat has computerized (computers, laser printer and UPS) village panchayats under a scheme labelled e-gram. All district panchayats are to be equipped with video conferencing facilities. All taluka panchayats are connected through Gujarat State Wide Area Network (GSWAN). A rapid rollout of the scheme was possible as special purpose vehicle called the e-gram Vishwa Gram Society was created under the chairpersonship of the Chief Minister and an executive body headed by the principal secretary. A PPP model has been deployed to leverage IT resources at the village panchayat. VCEs (Village Computer Entrepreneurs) will be selected for all e-grams. Apart from the e-gram services (issue of land record copies, birth certificate) VCEs could provide commercial services such as collection of payment for utilities like electric supply, telephones and work as an agent for postal insurance and stamp paper services. E-gram services are provided at a fee which is shared among the panchayat, VCE (Box 7.3 contd.) Bellandur was one of the earliest GPs to be computerized in the country in 1998. Today, it holds a full-fledged database on the 2500 families residing in five villages covered by the VP. Details, such as land records, property tax records, birth and death records, ration card details and voter lists are stored in the data base. Citizens can get a variety of certificates based on this data by paying a service charge of Rs 50. The computerization project is an independent initiative funded by the Village Development Committee (VDC). Further, Bellandur has also been airing its committee meetings over cable television in 20 neighbouring villages for over a year now as mentioned by R. Sarkar (Sarkar 2003). 5

126 Unlocking E-Government Potential (Box 7.3 contd.) and operational expenses. The PPP model provides additional income to the village panchayat, self-employment opportunity for the rural youth and prompt services to public. The Gujarat government is setting up 3000 CSCs in addition to computerized village panchayats to cover the entire rural population. All CSCs are to be broadband enabled. The connectivity of village panchayat will be completed by June 2008. It will be compatible with the existing GSWAN and provide for data, voice and video (over IP) services at the panchayat offices. The sources of funds include grants from state and central governments, the World Bank and public contribution. To strengthen the financial management and transparency, accounting firms have been hired to implement a double entry accounting system for the PRIs over the next two years at a cost of Rs 90 million. Training and accounting manuals have been prepared and circulated among PRIs. An online browser based application called ‘VIKAS p@th’ has been developed for approval, reporting and monitoring of panchayat schemes which is available through kiosks. This has been implemented in few districts on a pilot basis. Gujarat has put considerable efforts in building capacity: • Technical support of one assistant programmer, one operator and a district-level executive is available at the district level, and one operator, two executives is available at the taluka panchayat. Four hundred and sixteen technical staff has already been deployed. • At the taluk level connectivity to the Bhaskaracharya Institute for Space Applications and Geo-Informatics (BiSAG) studio is available, which is useful for capacity building. An IT orientation programme for all types of functionaries is broadcast once a week through BiSAG studio. • Basic training has been provided to all VCEs and those with average skills are being re-trained by Teaching Learning Equipment (TLE). • A basic computer training programme of 40 hours for talatis and 20 hours for elected members of the Panchayati Raj is being provided under which 8688 elected members have been trained. • Computer operators have been provided training in operation and upkeep of the centre, hardware management and upkeep of new software and new versions of existing software. • Representatives of the Training Service Provider attend various meetings regarding issues of e-gram panchayats. A total of 30,000 certificates have been issued indicating that it is early to discuss actual usage and impact. Source: Ministry of Panchayati Raj 2008 (375–376).

Making E-Government Work for Rural Citizens 127 Table 7.1: Examples of pro-poor e-government applications Indirect benefits to the poor gained through greater efficiency in the delivering agency Expanded reach, enhanced quality and reduced costs of service delivery in health, education, sanitation, water, police Daknet, India—The project involves use of WiFi technology to transmit data between kiosks, using Mobile Access Points (MAP) and portable storage devices mounted on a vehicle. This application helps in providing access to the Internet and voicemail services in remote rural areas. MIS /planning and monitoring within the agency Health Management Information System, Gujarat—The project involves the use of IT supported applications for record keeping, monitoring pre-defined health indicators and health database management in 12 of 30 government hospitals. This MIS application has helped administrators to have better monitoring and control of the functioning of hospitals across the state. The record keeping and report preparation has enhanced the quality of health services. Strengthen local administrative capacity through accounting and financial management systems Efficiency of agency in delivery of services to the poor Planning systems for improved allocation and utilization of resources India Healthcare Project, Andhra Pradesh—The project provides Auxiliary Nurse Midwives (ANMs) with personal digital assistants (PDAs) for data capturing, data transmission and report generation. The data captured is then used to develop a health database. The database developed through the project helps in efficient allocation of resources. Better targeting of direct subsidy and assistance through identification of poor Nationwide Poverty Registration Project, Thailand—The project allows people to register their grievances with the government. The problems gathered are then classified and published onto a website. The project helps in creating a poverty map to know the real causes of poverty and eases the planning and operation process Enhancing skills and knowledge of extension workers Direct economic benefits to the poor: enhanced employment opportunities Skill development and training Technology for the People (TFTP), Andhra Pradesh and Karnataka—The telecentres are converted into Resource Centres to provide skills development training, education to school drop-outs and skill mapping of individuals. The project makes innovative use of ICT to resolve individual developmental challenges and also to make them more employable. (Table 7.1 contd.)

128 Unlocking E-Government Potential (Table 7.1 contd.) Greater awareness of opportunities Krishi Vigyan Kendra—The Krishi Vigyan centres provide training to farmers, women and youth through audio-visuals with emphasis on long-term self employment. Also, conduct various programmes for farmers to teach them about latest technologies relevant to their profession. These centres help in identifying farmers’ needs and bridge the technological gaps. Facilitating contact with employers Employment exchange (e-rozgaar), Jharkhand—The project enabled computerization of employment exchange and introduced online registration and renewal facility. The information registered is categorized as unskilled/skilled depending upon the needs. This project facilitates contact with employers and promotes awareness about available opportunities. Direct economic benefits to the poor: enhanced livelihood opportunities Access to markets for products and services E-Krishi, Kerala—This project consists of setting up a toll-free call centre for the farmers and buyers to register on a portal for trading produces in Mallapuram district of Kerala. This initiative facilitates and enables farmers to sell their produce efficiently. Skill development for opening new enterprises, creating new services Rural Knowledge Centres, Pondicherry—The project establishes a multipurpose centres, managed by the community, equipped with computers, Internet, scanner, printer and web cameras. The services offered depend on the community needs. These centres facilitate empowerment by disseminating information, focusing on skill building at local level and also offering access to expert advice. Banking and financial services within easy reach at reasonable costs such as micro credit Computer Munshi—In this project, local youth are trained to set up a small business to provide computerized accounting services to Self-Help Groups (SHG). This project helps in increasing employability of rural youth while providing access to proper accounting services to SHGs. Information/knowledge (design) inputs to improve quality of products and services Soochna Se Samadhan Sewa (Lifelines India)—The farmers access this paid service by dialling a designated number to register their query and receive an answer within 24 hours. This project helps in disseminating information and exchanging knowledge inputs to improve quality of products and services among marginalized and rural communities. (Table 7.1 contd.)

Making E-Government Work for Rural Citizens 129 (Table 7.1 contd.) Better prices for agriculture produce through current price information and efficient supply chain MANDIS, Madhya Pradesh—The ICT system connects the mandis (agricultural commodity market) located in remote areas and provide a series of services such as latest information on daily arrival of crops, rates at which the crops have been sold, etc. Aggregation of demand for inputs to production processes to reduce input costs. Extension services to bring innovations in agri-production and services E-Sagu, Andhra Pradesh—The project provides quality personalized agroadvice to the farmers through use of ICT. The agricultural expert gives advice to the farmers by getting information in digital form through photographs. This project enables farmers to improve productivity by using the expert advice in a personalized and timely manner. Lower cost of accessing government services and reduced corruption Reduced cost of accessing transactional services (issue of licences, certificates, payments) Bhoomi, Karnataka—This project involved computerization of land record system in the state and online delivery of RoRs, tenancy and crops to farmers. It allows farmers to access database of land records. It has also improved transparency by providing greater access to information. Improved quality and lower costs of communication services Shyam Telecom, Rajasthan (rural areas)—Drivers peddle mobile payphones throughout the countryside providing exclusive opportunity for disadvantaged rural community members to make a call or send an SMS. The project ensures access to communication technology in remote rural areas. Direct social benefits to the poor Citizen engagement with governance at local level Community Radio, Nepal—The Village Development Committee (VDC) has started conducting various awareness programmes on the rights of women and children, legal rights and human rights through community radio. The project helps creating awareness and addressing local issues. For instance, a campaign against the production and consumption of liquor in the village with the help of community radio. Empowerment in dealing with government agencies through grievance redressal Parishkaram Call Centre, Andhra Pradesh—This project created a helpline for citizens to complaint, check the status of the complaint and seek information on various government schemes, services, examination results, admissions related to 25 government departments. This helpline ensures grievance redressal and provides information on government services. (Table 7.1 contd.)

130 Unlocking E-Government Potential (Table 7.1 contd.) Transparency in dealing with local, state and central governments Mandakini ki Awaaz Community Radio, Uttaranchal—As part of the programme a radio group mediates between the people and the local governing bodies in order to create an open platform where policies, schemes and financial budgets can be made available for public discussion and scrutiny. Access to healthcare e-Sanjeevani, Hyderabad—The project was tested on pilot basis in two villages. The health care system consists of two machines one at the urban centre where an expert doctor is available and the other is a mobile hospital which is a bullock cart mounted mobile unit shuttling between various clusters of villages. Audio, visual and vital signs and patient records are transmitted in real time. Environmental sustainability Access to information on government programmes (information on development projects/schemes, expenditure and income) e-Sampark and m-Sampark, Chandigarh—This project offers various services through its e-sampark website and allows people to register grievance and helps them in filling applications under Right to Information Act. The m-Sampark provides similar services through mobile phones where an SMS is send to a number to access menu of services. Access to general knowledge in social, economic and political affairs Sim Tanka and Jal Chitra, Rajasthan—The project uses a software for evaluating drinking water quality, levels of groundwater pollution, predicting roof-top rainwater harvesting, agriculture and integrated water resource management. Provides specific information to villagers in terms of water resource management. Source: Author.

7.5 Gender Focus of E-Government Projects Poverty is one of the major reasons for vulnerability. The inability of the poor to afford access to any sort of computing equipment further denies them an opportunity to use ICTs to improve their circumstances. There are other forms of vulnerability such as old age, physical handicap and IT illiteracy that need to be recognized in designing e-government applications. Insensitivity to gender issues is another reason that leads to vulnerability. Service planners and deliverers keep women at the centre of their service design and delivery efforts. For example, in the delivery

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of health services, are there special programmes geared to women’s needs? Will ICT serve large number of women, generate greater awareness among women about child and health care, improve the mobility, reach or effectiveness of health workers who deliver the medical and extension services to poor women? Do e-government initiatives view women as a special category of service recipients with unique needs and preferences? An equally important concern is political empowerment. Electronic delivery of services such as issue of certificates, licences and tax collection by governments is largely confined to regulatory agencies. There are very few examples of e-government where health and education services are being delivered through the use of ICT. In most of these examples there is little focus on content that is especially useful for women or on services that are primarily used by women. A pilot application in Andhra Pradesh is an exception where ANMs use PDAs to record service data on mother and child health care and family planning. The use of PDAs makes the task of the ANMs less burdensome, increases efficiency in data collection and storage, and streamlines the actual delivery of services (see Box 7.4). Most e-government applications are of recent origin and have not been evaluated in detail to determine whether they promote greater use of services by women. FRIENDS, in Kerala, is an exception. It provides one-stop service centres to collect all kinds of payments made to government agencies, including utility bills, university fees and licence fees. An evaluation of the project in 2002 showed that the number of women making such payments at the FRIENDS service centres was more (11.3 percent) than the number of women making similar payments at 74 departmental counters (3.1 percent). Eighty percent of women respondents indicated a preference for using the FRIENDS centre. Whether this helps women in any particular way is difficult to state. In some e-government projects, women have emerged as unintended beneficiaries. For example, in Brazil’s efforts to provide e-government services in rural areas of Bahia, women happen to gain most from the visits of the mobile Service Assistance Centre (SAC) unit because men migrate to cities to seek employment and women constitute the pre-dominant rural population. The SAC is

132 Unlocking E-Government Potential Box 7.4: India health care project The basic health care delivery system in India is implemented through the Primary Health Centres (PHC) employing female outreach workers called ANM, each covering a population of 5000. These ANMs deliver health care to rural people at their homes and maintain a number of records in registers. In a pilot, PDAs were provided to the 459 ANMs based in 67 PHCs in Nalgonda District of Andhra Pradesh State for capturing data at the doorsteps of the rural people. In the project district, ANMs captured and updated data in PDAs, completely eliminating the maintenance of multiple paper registers. Nearly 30 percent of an ANM’s time spent on record keeping was released for field work and improved planning. Data from all the PDAs was uploaded to the PHC computer, to generate a variety of MIS reports. The PDAs generated activity plans such as reminders for immunization, ante and post-natal care for pregnant women and distribution of contraceptives. The schedules helped the ANM to know which households she needed to visit. With the training that was provided ANMs did not have any problems in using the PDAs. Effectiveness of services improved. For example, in treating a high-risk pregnant woman, the history of past treatment and allergies proves to be very useful. Source: Author.

a large truck equipped with a computer and other facilities to provide birth certificates, identification cards, labour identification cards and criminal record verification to the rural community at their doorstep. It remains parked near a rural community for a few days before moving to the next rural area. Examples of conscious incorporation of women-friendly policies and practices in e-government are almost non-existent. In social service delivery, women are recipients of benefits arising from the use of ICT, especially through services such as health and education. Being passive beneficiaries of these services, women have little power to influence the use of ICT. It is necessary, therefore, that these services are designed and implemented keeping in mind the special requirements, convenience and preferences of women. E-government projects meant to benefit women can succeed, provided women are consulted and involved both at the design and implementation stages and their concerns and requirements are addressed through the project.

8 A Framework and Methodology for Impact Assessment In this chapter we present a framework for assessing the impact of e-government projects and describe a methodology that has been tested in the field for assessing the impact of a large number of projects. Results from the study based on this framework were discussed in Chapters 3 and 4 in the context of benefits delivered by e-government projects. The framework outlines the stakeholders and dimensions on which impact needs to be measured for each kind of stakeholder and the methodology identifies the steps necessary to make an assessment of impact of a specific project. The framework was developed after reviewing a number of current frameworks being discussed in literature. Impact assessment of e-government projects is important because an increasing number of governments are making investments in e-government on the basis of a few success stories publicized by the media. On the other hand, evidence of failed projects has drawn attention to the level of risk in implementation. A failure rate of more than 50 percent based on the opinions of 15 experts and student submissions is widely cited (Heeks 2003). In the context of developing countries, many projects launched have not led to any significant improvement in the delivery of government services. A report by the United Nations laments the fact that documented research on the social or economic impact of e-government development is virtually non-existent (United Nations 2003). A systematic and clear assessment to a better understanding of the effects of e-government applications introduced by the public sector on the socio-economic, organizational and behavioural

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changes and the factors involved in these changes is therefore needed to guide policy regarding future investments in this area. Currently, there are few frameworks or methodologies available to accurately measure the success or failure of an e-government project. Success is often judged on the basis of media reports, recognition by international agencies and assessment provided by the project implementers. In all of these cases clients who are supposed to benefit from these projects supply no feedback. If feedback is recorded, it is usually anecdotal and not based on a systematic survey. An evaluation of four successful projects in India through independent agencies, carried out in 2001, had revealed surprising results. Two of the four projects that were recognized as successes actually showed up as failures. It is important that e-government projects have an in-built component of periodic assessment by an independent agency. This is in addition to a continuing feedback mechanism from the clients.

8.1 Evaluation of E-Government Projects Done in the Past Based on a review of documentation on 175 projects, the conclusions a World Bank report drew on the kind of evaluations being carried out in practice are: 1. Evaluative studies had been done to serve a variety of purposes. Some studies looked at implementation success in terms of whether the systems were functioning as they were designed to or the degree to which the specified outcomes were achieved. Some studies looked at long-term sustainability and replicability of the project.1 Some studies measured the benefits that were delivered to agencies. Few studies have focused on the benefits to the clients. There was hardly any comprehensive study that assessed the Government of India, Ministry of IT had commissioned quick assessment of 29 projects. 1

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2.

3.

4.

5.

impact on all the stakeholders and covered both short-term and long-term direct and indirect impacts. There were a few studies that had carried out a cost-benefit analysis. Often evaluation studies had been done by agencies that may be seen as having an interest in showing a positive outcome. A variety of approaches had been used for evaluation. These included surveys, expert opinions, ethnographic studies and internal assessments produced by the lending agencies. Different studies of the same project showed very different outcomes, thus, indicating a lack of credibility of results.2 Part of the reason for different outcomes was the use of very small samples and a lack of rigour in sampling and collecting data from the clients of the systems. The results could therefore not be easily generalized over the entire population of clients. The studies evaluated the functioning of the computerized system but were not able to assess the difference made by ICT use as the need for counterfactuals (evaluation of systems as they worked before computerization) was ignored. Often the impact of ICT use was not separated from other interventions that were made simultaneously with the computerization effort. Finally, since different studies did not use a standard methodology, it was difficult to compare the outcome for a project with other projects. Many researchers have noted that past evaluation studies have not used a common framework or methodology and that rates of success/ failure have been declared based on purposive samples (Peters et al. 2004).

For example, the Bhoomi project of issuing copies of land title has been evaluated by the Public Affairs council reporting significant positive outcomes including reduction in bribes. Recent studies by a team from the Massachusetts Institute of Technology (MIT) and the Indian Institute of Information Technology (IIIT) Bangalore found that corruption had not declined and major benefits were derived by land sharks. 2

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8.2 Review of Literature on Impact Assessment While a significant amount of academic and policy studies have been carried out on how best to evaluate public sector ICT projects, these have so far proved inadequate in providing policy-makers with a systematic framework for evaluation. The first group of studies provides macro-level estimations of e-government activity using appraisal indices focusing on supply-side, quantifiable measures such as web presence of government, network coverage, institutional and regulatory support and human capital provision (UNPAN 2004; West 2005). Such factor-based assessments of e-readiness do not have immediately obvious and tractable policy implications. They tend to focus almost exclusively on the measurement of physical access to certain types of ICT without incorporating other issues such as affordability, appropriateness, ICT capacity and training, and the regulatory and macroeconomic environment (Bridges.org 2005). The second group of studies, which have occurred in a largely anecdotal piecemeal fashion, provide project-level evaluations with little prospect for synthesis from past approaches. A small number of studies have focused on the impact of projects in terms of how they affect both citizens and government agencies, but findings have seldom been linked to broader national, regional or global trends, for example, in terms of changes in the approach to development and governance policy (Grant 2005; Heeks 2003a; Madon and Kiran 2002). The US Government’s Performance Reference Model (PRM) is a widely-cited model which aims to measure value creation in the public sector.3 The framework builds from value chain and programme logic models to reflect how value is created as inputs (such as technology), are used to create outputs (through processes and activities), which in turn impact outcomes (such as mission, business and customer results). Guiding the entire PRM framework is a strategic outcome representing broad policy priorities which is seen to drive the direction of government. Some of the main techniques included in the PRM are strategic planning and analysis, business cases, value chain, applied information economics and the balanced scorecard. 3

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Common best practice factors for value creation in e-government projects have been well-documented in several reports by governments and external consultants (Accenture 2002; EU 2003; Gartner 2002). One example is the study conducted jointly by the Danish Ministry of Finance and Accenture which identifies two primary dimensions of value: (a) value to investors in terms of tangible financial benefits, cost savings, cost avoidance and increased revenue, and (b) value to users in terms of improved services, reduced cost and/or time savings to citizens and reduced administrative burden to businesses. The calculation of time and money spent in finding and using public information are the most direct and measurable benefit of e-government applications to users as shown in recent Organization for Economic Cooperation and Development (OECD) and EU studies (eGEP 2005, Lau 2005). These reports identify improved revenue collection, lower costs due to efficient processing of transactions and a reduction of administrative burdens due to simplification or elimination of procedures as some direct impacts that can be measured. Financial savings to users in terms of time and money spent in finding and using public information are the most direct and measurable benefits of e-government applications for clients. A significant amount of work has also been done on studying users’ perceptions of quality in terms of attributes such as accessibility, attitude of staff, cost of service, provision of information, procedural fairness and convenience. Calculation of net economic benefit of an IT project has proven to be extremely challenging as outcomes are multi-dimensional and composed of both quantitative and qualitative indicators. It appears that there is room to give further attention to the linkages between issues of quality of service, governance, wider impacts on society and ICT investment. More recent frameworks are evolving around a notion that an exclusive focus on financial costs and benefits for the government leaves out many important non-economic benefits (Lau 2005). One such benefit relates to improvements brought about in various aspects of governance activity. Another non-economic benefit relates to the addressing of wider policy priorities which for the context of developing

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countries could constitute the priorities as articulated in the UNDP Millennium Development Goals. Most of the assessment models proposed in the literature have not been used in a developing country context and many have actually not yet been applied in practice even in developed countries. Nor do they account for a variety of delivery models used in developing countries such as common service centres and franchised outlets that can retail e-services offered by the government. Practical issues of paucity of data have not been taken into account—particularly in a developing country context where baseline surveys are not done and monitoring and evaluation systems are weak. Since impact assessment is the key objective, establishing counterfactuals is an important element of the proposed measurement framework. Two approaches—Method of Analysis and Value Enhancement (MAREVA) developed by the Agence pour le Dévelopement de l’Administration Electronique—Electronic Administration Development Agency (ADAE) in France with the help of Bearing Point and the WiBe Economic Efficiency Assessment methodology being used by the German federal administration (Federal Ministry of the Interior 2004)—were useful in developing the framework proposed in this chapter. These methodologies developed by the two governments in the EU countries focus broadly on the same dimensions. They offer two levels of impact assessment: first, in terms of how the project provides a business case justification of expenditure and second, in terms of how the project meets the goals of the agency concerned and, in turn, how this helps in meeting wider government strategies. Guiding these assessment frameworks is a strategic outcome pursued by respective governments representing broad policy priorities that drive the direction of government. These considerations have been incorporated in the assessment framework proposed for e-government projects in this chapter.4 4 The indicative items are based on a review of the following documents: (a) Performance Reference Model of the US Federal Enterprise Architecture Framework used by the office of Management and Budgets in the US Federal Government, (b) (European Commission 2005), (c) (Rao et al 2004), (d ) (Lau 2005) and (e) (Bruno 2005).

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The framework focuses on the idea of measuring the total value delivered by a project to different stakeholders and takes a balanced approach between case study and quantitative analysis. It recognizes that some part of the value for each stakeholder can be monetized and other part needs to be assessed qualitatively. The next section provides more detailed description of the measurement framework and how the framework was derived.

8.3 Proposed Measurement Framework An e-service delivery project impacts three groups of stakeholders: (a) clients receiving the service, (b) agency (including several partners) that delivers the service and (c) the larger society consisting of citizens, businesses, government as a whole and civil society. The impact can be assessed in terms of a variety of outcomes experienced by each type of stakeholder. Since ICT is introduced mostly in the context of governance reform to improve efficiency, effectiveness and transparency of governments, a crucial first stage is to ascertain to what extent these intended outcomes from ICT applications in the public sector have been achieved. Table 8.1 lists key dimensions of outcomes and the indicators that can be considered for each type of stakeholder. The generators of these outcomes are inputs and business processes. Therefore, assessment needs to incorporate project information such as inputs (technology, human capital, etc.), process outcomes (re-engineered processes, shortened cycle time, improved access to data and analysis and flexibility in reports) and organizational processes (institutional arrangements, organizational structure and other reform initiatives of the government that might have influenced the outcome for the IT project) (Hu et al. 2005).

8.4 Methodology of Measuring Impact on Clients While the framework and indicators to be measured for each dimension can be applied across all types of service delivery projects, the selection of survey methodology can vary based on

140 Unlocking E-Government Potential Table 8.1: Key dimensions of impact on various stakeholders Stakeholder

Key dimensions of impact

Client.

• Direct and indirect economic costs (number of visits, travel costs, travel time, waiting time, elapsed time for service delivery, service fee and cost of bribes). • Governance (corruption, accountability, transparency and participation). • Quality of service (error rate, decency, fairness and convenience).

Agency (Including partners in implementation).

• Direct and indirect economic impacts (operating cost reduction, revenue growth, amortized costs of investments, collection of service fees and incidence of fraud). • Governance (corruption, accountability, transparency of rules, procedures, decisions and participation in project design). • Performance on key non-economic objectives (coverage of under-served population, basket of services, MIS for monitoring and decision support). • Process improvements (integration of services across agencies, reduction in data handling, record maintenance: accuracy, consistency, security and disaster recovery and transaction traceability and audit trails).

Society and government as a whole.

Impact on development goals (poverty reduction, increased employment, economic growth and social sector development).

Source: Author.

the characteristics of the projects, available resources for evaluation and the desired level of control of the quality collected data. Key elements of the methodology include: 1. Interviews and focus group can be used in conjunction with surveys to obtain deeper understanding of the process of how values are created. Data collection should be done by independent agencies that are not seen to be connected to the project implementers. 2. Sampling procedures should be such that small impact can be calculated, estimates can be projected for the entire population and the accuracy of such results can be defined.

A Framework and Methodology for Impact Assessment 141

Project Selection Selection of projects would depend on the purpose of assessment. For a retrospective evaluation of investment decisions or decisions about replicating projects in other geographies, mature projects should be selected. Maturity is reflected in the number of years for which the project has been operational, the designed scope (services that have been computerized and the number of steps that have been automated for each service) of the project and extent to which it has been achieved and the extent to which electronic delivery of services covers the targeted population. Projects that are still evolving on any of the above dimensions will not be considered mature.

Constructing a Project Profile Get the approval of the agency to conduct the study. Explain the purpose of the assessment and broad methodology that will be used to key officers of the agency including the head. Even though the study may be funded from independent sources, data would need to be collected from the agency. If the agency does not cooperate it will be difficult to assess agency level impact. Data would need to be collected on the project context: basic information on the type of clients (users), types of services delivered, mode of delivery; scale of operation and years of operation at current scale and coverage. Projects can be implemented with different scale and scope: 1. countrywide, by national level agencies such as Income Tax, Customs and Excise and Department of Company Affairs; 2. state-wide, by agencies such as the transport department, commercial tax department, registration department or 3. at a local level by a district or municipality. Services could be offered to different client segments such as citizens, businesses or intermediaries (such as chartered accountants and cargo handling agents). The scope of the service could be limited

142 Unlocking E-Government Potential

such as in filing an online application or could be wide, and may cover the complete process of delivering a service as in processing a bill of entry, e-payment of duty and clearance of goods. Study the delivery of services and collect data on the number of different types of transactions handled. Identify the key services (based on volume or contribution to fee revenue or taxes) based on inputs from agencies. Identify different stakeholders that could be impacted.

Design of Data Collection Instrument There are three basic ways of collecting data from clients: through face to face interviews conducted by trained investigators, surveys conducted over the Internet and focus groups conducted by trained researchers. Direct interviews of an adequate sample of users are a powerful way to extract detailed information from the users about actual economic impact and the perception on quality. The time and costs associated with this approach, however, may not make it amenable for frequent use. The Internet survey, on the other hand, can be an effective tool to collect information in a short period of time, but it is difficult to control the characteristics of respondents. Limited interviews and focus group methods can be used to complement this weakness. Choose the modes of data collection depending on access to funds and research assistance. Use professional market research agencies with trained investigators for face to face interviews. Its cost will depend on the time it will take to survey a client, number of locations at which clients have to be surveyed and the number of respondents to be surveyed. The costs could vary between Rs 150 and 500 per respondent depending on the nature of location of respondents and the size and complexity of the instrument. Use the framework to develop a questionnaire for the clients. Customize the survey instrument to each project and the specific services being studied. It is meaningful to measure costs in the context of a specific service. Adapt the questionnaire in the local language using colloquial terms. A sample questionnaire is

A Framework and Methodology for Impact Assessment 143

presented in the annexure at the end of the chapter. Some useful tips for questionnaire design are: • Design the analytical reports prior to the survey. Often key variables can be missed if the nature of analysis in not thought through prior to the study. • Pre code as many items in the questionnaire as possible. • Use consistent coding for scales—representing high versus low or positive versus negative perceptions. • Use worded questions differently to measure some key items/perceptions. • Wording of questions should be appropriate to skill level of interviewer and educational level of respondent. • There are many ways to elicit responses on perceptions measured on a scale. Scales can be read out or symbols associated with each point on the scale can be displayed for semi-literate users.

Selection and Training of Investigators Select a team of investigators. Investigators need to have a higher qualification and experience than is usually required for a social sector survey. Investigators would need to understand the basic steps through which e-delivery of service takes place and also understand terms that are used in measuring governance. It is necessary for the investigators to observe the process of service delivery by visiting a delivery centre. The team would usually undergo a training programme. The study team should participate in the training of investigators. Unless investigators have clarity on what is being measured through each question, the quality of data would be poor. Many examples would have to be provided to explain meaning of terms such as travel cost, transparency, accountability, etc. Test the questionnaire with actual users before. Feedback from pre-testing of questionnaire should be discussed between the study team and investigators. The feedback may include the length of questionnaire, interpretation of each question and degree

144 Unlocking E-Government Potential

of difficulty in collecting sensitive data. Assessing the quality of investigators is a good idea. Training and feedback sessions can be used to weed out investigators.

Determining the Sample Size Data needs to be collected from two groups—one which has used the e-government system being assessed (users) and the other which has used an alternate system (non-users) that was replaced by the e-government system. Samples drawn from the two groups may consist of entirely distinct set of respondents. The two samples should be similar in terms of characteristics like education, income, age, geographical proximity. Normally the sample of users of the e-government system is easier to select from the current users of the system. However, the selection of a sample of nonusers is difficult because the alternate system may not be in use currently. One strategy to match the two samples can be to first do a pilot study to develop a profile for users of the e-government system. Based on the profile, screening questions can then be developed to screen out non-users that do not match the profile of the users. The detailed survey would then only be conducted from the matched non-users. Alternatively, if a sample can be found consisting of respondents who have experienced both systems (e-government and counterfactual), then two distinct samples are not needed. However, when asking respondents to compare their experience of both (e-government and counterfactual) systems, we should make sure the results are not sensitive to recall bias. Table 8.2 analyses different delivery modes and indicates the conditions under which two distinct samples are needed. Effect size is used to measure the magnitude of impact (of computerization in this case) and can be computed as the standardized difference between the two means. Effect sizes (Cohen 1988) can be defined as small (between 0 and 0.2), medium (> 0.2 and <= 0.5) and large (>= 0.8). Sample size is determined by the desired effect size that we would like to be able to statistically detect with the desired precision (power) needed for the study. The primary criterion for determining the sample size in an impact analysis is the ability to ‘detect’ an impact of a desired magnitude

A Framework and Methodology for Impact Assessment 145 Table 8.2: Counterfactuals in sample selection under different types of delivery modes Self-use: through a portal Frequent Mandatory Example, annual filing of company reports in MCA 21. A common user group with experience of both the manual and computerized systems.

Infrequent

Assisted: service centre Frequent

Infrequent

Example, registration of a new company in MCA21.

Example, issue of RTC in Bhoomi.

Example, registering property.

Different user groups for manual and computerized system with matching profiles.

A common user group with experience of both the manual and computerized systems.

Different user groups for manual and computerized system with matching profiles.

Voluntary Example, passport application. Difficult to match the profile of those who opt for self-use and those who do not. As part of assessing impact, reasons for use and non-use by the two groups will have to be understood.

Example, payment of bills in e-Seva Different user groups for manual and computerized system with matching profiles.

Source: ‘Annexure 2.4 guidelines for Selecting Sample Design and Size for State level Projects’ (Department of Information Technology 2008).

with a high degree of confidence—the Minimum Detectable Effect (MDE).5 In other words, if we believe an impact of a certain magnitude has policy relevance, then we should have the statistical power to test whether or not it is statistically different from zero. The smaller the MDE, the more likely we will be able to detect smaller impacts. The MDE depends on: MDE=Factor (α, β, df) * √(Var(Impact)/σ where Var(Impact) is Variance of Impact Estimate; ó is Standard Deviation of the Outcome Measure and df is Degrees of Freedom for test. This depends on the total sample size and sample design. Generally this is equal to Total Number of Individuals − Number of Strata −1. Factor is a constant function of the significance level (α), statistical power (β) and the number of degrees of freedom. For two-tailed tests with greater than 100 degrees of freedom, a 5 percent significance level and 80 percent power factor is equal to 2.80. 5

146 Unlocking E-Government Potential

• The expected variance of the impact estimate. • The assumed significance level (selected to reduce Type 1 error), typically assumed to be 95 percent. • The assumed ‘power’ level (selected to reduce Type 2 error). The typical level chosen is 80 percent. At this level there is an 80 percent chance of detecting an effect as big as the MDE. These three factors determine the minimum detectable effect size, that is, the smallest programme effect that has a reasonable chance of detection. A sampling frame needs to be developed for data collection through structured survey for clients. A stratified sample for sub regions of the total coverage is useful in maintaining precision of estimates. In case of service centres (the most common way of delivery), activity levels (number of users), geographical spread of the catchment area, level of transport infrastructure and profile of the users would influence cost of access by users. The variability in demand and efficiency of service centres and in the location of user, in terms of the distance from a service centre, need to be captured in the process of stratification. A sample size is calculated so that accurate estimates of impact can be calculated and the results can be projected to the entire population. The sample size is determined in terms of: • number of service delivery centres to be selected; • number of locations (cities/towns/villages from which users/non-users are selected) within the catchment of each service centre and • number of users (and non-users) within each location. For a given total sample size, increasing the number of delivery centres provides the most power.6 On the other hand, For example, in assessment study of 36 projects by DIT, for each state level project a sample size of around 800 respondents was found to be adequate. These respondents were distributed over the 20–30 sampling units (delivery centres) in proportion to the activity levels experienced by these units. For each sampling unit two locations (one far and one near) were selected for the actual survey of respondents. Average number of respondents per location was 20. 6

A Framework and Methodology for Impact Assessment 147

increasing the number of interviews (respondents) per sampling unit does not improve power. Also, for a given number of sampling units that can be visited, it is better to include larger number of service centres rather than more locations (within the catchment of each service centre) from which respondents are chosen. The sampling unit from where the respondents are to be interviewed should be chosen on the basis of distance of the unit from the delivery centre. Locations can be categorized as far and near. The number of respondents from ‘far’ or ‘near’ location can be proportionate to the number of respondents visiting the delivery centre from such locations. A list of users 5–10 times the size of the actual number to be selected for each of the selected sampling units is compiled. Desired number of respondents can be chosen from the list on a random basis.

Conduct of the Survey Survey teams have to be supervised tightly with no more than 2–3 teams per supervisor. Quality of supervision by market research agency is crucial. Generally the supervision is much worse than specified in the contract. Physical supervision by study team of the survey process is a good idea, even if it is done selectively. The Market Research (MR) agency should be asked to document the results of their field supervision. One of the key items of supervisory check is the legibility of data recording by investigators. A pre-specified proportion of filled instruments have to be verified by the supervisors. This requires that the complete address of the respondent be recorded so that the supervisor can validate the survey of randomly selected respondents.

Data Entry and Establishing Data Validity Data entry can be done in a format that can be directly input into a statistical analysis package. The format can be specified after taking a decision on the data analysis package. Statistical Package for the Social Sciences (SPSS) provides adequate range of

148 Unlocking E-Government Potential

analytical procedures for analysis of survey data. Some useful tips for ensuring data quality are: • Randomly check for data entry problems by comparing data from questionnaires with printouts of data files. • Check extreme values for each item in data files and identify unacceptable values for coded items. • Cross-check the data recorded for extreme values in the questionnaire. • Check for abnormally high values of standard deviation. • Even though a code may be provided for missing values, there can be confusion between a missing value and a legitimate value of zero. • Look for logical connections between variables such as travel mode and travel time, bribe paid and corruption. • Poor data quality can often be traced to specific investigators or locations. • Complete data validity checks before embarking on analysis.

Analysis and Reporting Given the proposed framework and methodology, impact can be analyzed in several ways. The first type of analysis is by stakeholders and key dimensions of impact on each type of stakeholder. For citizens, impact on cost, quality, governance and overall satisfaction need to be reported with the attendant levels of statistical significance. It is useful to report monetizable and qualitative impacts separately. If the samples are adequate, impacts can be further analyzed by the profile of users (for example, rural/urban, high income/ low income in case of citizens) and the mode of delivery (service centre versus portal). Similarly impact can be analyzed by location (region/city/taluk/village) of the service centre. If a large number of projects have been assessed, it may be possible to report on impact of different types of applications based on data from clusters of projects. The more interesting part

A Framework and Methodology for Impact Assessment 149

of the analysis is to use the qualitative understanding of a project and its clients to explain the nature and quantum of impact and the variation in impact across projects/services/modes/locations. Examples of the above type of analysis can be found in various sections of this book where results from two impact studies are discussed. If there are models/hypotheses to explain the nature or quantum of impact, these can be tested through more sophisticated analysis.

8.5 Methodology for Measuring Impact on Agency and Society Measuring Impact on Agency A large amount of historical data on operating costs and investments needs to be collected for measuring impact on agency. Formats can be designed for each major item by defining it and specifying the unit of measurement. A workshop to discuss the formats with employees/investigators who will assist in the process of data collection is very useful. For measuring qualitative perception on improvement in governance, the extent of process reforms carried out and the degree to which non-economic objections have been achieved, small surveys of employees and focus group discussions with the same employees can be carried out to gain a deeper understanding.

Assessing Impact of Society There are many components in assessing the likely broader impact on society such as social sector development, growth, employment and poverty reduction. Such impacts can be best assessed in qualitative terms and represented on a Likert Scale. Absolute numbers of users served, nature of service and its frequency of use by clients and the relative importance of the service for the well being of clients needs to be ascertained for any qualitative assessment of such impact.

150 Unlocking E-Government Potential

8.6 Usefulness and Limitations The impact assessment methodology outlined in the preceding can be used: • In new projects as a core element of the project’s M&E (Monitoring and Evaluation) system. • For benchmarking of manual service delivery systems before computerization. • Retrospective assessments of computerized service delivery projects. The methodology defines appropriate indicators for different types of outcomes and provides guidelines for selecting appropriate indicators. The methodology can be used to examine the business case for public sector ICT projects in developing countries by providing better understanding of the costs of such projects and highlighting areas of potential benefits. Manual benchmark surveys can be used to set targets for various components of service level for the proposed system. These targets can define a citizens’ charter for the online delivery of services. Client surveys for assessing the manual system will also provide an understanding of the structure of client costs for accessing a service. The targeted improvements in service delivery can be used to perform a cost-benefit analysis of the proposed system. Targeted improvements in various indicators will also be an input for determining the nature of process re-engineering that would be required and the technical design that would enable the degree of proposed improvement. The design specifications in turn would determine the proposed investments and likely operating costs. Figures on benefits and costs can be compared prior to implementing a project. An estimate of the potential savings in cost to clients will help determine the level of user fee, particularly if somewhat accurate estimates of investments and operating costs can be made.

A Framework and Methodology for Impact Assessment 151

The limitations that need to be considered while interpreting results are: • For the assessment of the manual system, respondents need to rely on memory. In case of systems that have been operational for a large number of years, such recall can introduce an error. There has been no benchmarking of the service delivery in a manual system prior to implementing a new computerized system—something that needs to be done for new projects that are taken up in the future. • The fact that there are no established reporting standards for public agencies to publish basic operating data in the public domain makes it difficult to collect operational data. Also, public agencies are wary of evaluation and therefore it is difficult to gather data. • Different benchmarks can be used for evaluation—improvement over manual system, absolute rating of computerized system (which can be a moving target) or potential impact that could have been delivered. • The effort required for assessment of a project tends to be under estimated. There are many issues in measuring what we purport to measure: design of questions, training, pretesting, field checks and data triangulation. The next three chapters present case studies on 10 projects of which seven were evaluated using the impact assessment methodology. In each case the impact assessed through the methodology is shared as part of the case.

152 Unlocking E-Government Potential

Annexure 8.1: Suggested Questionnaire for Clients PART 1:

IDENTIFICATION DETAILS

S. NO.

CIVIC CENTRE

NAME OF RESPONDENT _________________________________ ADDRESS

_________________________________

STATUS OF RESPONDENT HEAD ....................................... SPOUSE .................................... FAMILY MEMBER ...................... SERVANT.................................. OTHERS ....................................

DATE OF VISIT (DD/MM)

NAME OF INTERVIEWER ___________

_________________________________ _________________________________

1 2 3 4 5

SIGNATURE OF INTERVIEWER _________________________________________ PART 2:

HOUSEHOLD PROFILE

Q1. What is your age in completed years? Q2. Please record the gender of the respondent Male ................................................... 1 Female................................................. 2 Q3. What is the level of education that you have completed?

lliterate ................................................ Literate without formal schooling ................ Upto 4th standard.................................... 5th to 9th standard................................... SSC/HSC ............................................ Some college but not graduate .................... Graduate/Post Graduate (General) ................ Graduate/Post Graduate (Professional) ..........

Q4. What is your main occupation? SINGLE CODE

Unskilled worker .................................... 1 Skilled worker ....................................... 2 Petty trader .......................................... 3 Shop owner ........................................... 4 Businessman/Industrialist with no employees .... 5 Businessman/Industrialist with 1–9 employees .. 6 Businessman/Industrialist with 10+ employees . 7 Self employed/professional ........................ 8 Clerical/Salesman ................................... 9 Supervisory level .................................... 10 Officer/Executive—Junior ......................... 11 Officer/Executive—Middle/Senior ............... 12 Housewife ............................................ 13 Agricultural labourer................................ 14 Cultivator ............................................. 15 Others (SPECIFY) .................................. 16

Q5. What is your monthly household income <500 .................................................. from all sources? 500–999 ............................................... IN RUPEES 1000–2999 ............................................ 3000–4999 ............................................ 5000–6999 ............................................ 7000–9999 ............................................ >=10,000 ...........................................

1 2 3 4 5 6 7 8

1 2 3 4 5 6 7

A Framework and Methodology for Impact Assessment 153 PART 3:

AWARENESS AND USAGE OF CIVIC CENTRES

Q6. Have you heard of the civic centre?

YES .................................................... 1 NO .......................................... 2 END

Q7. How long have you been aware of the civic centre?

MONTHS

Q8. Please specify the source of awareness about the use of civic centre. MULTIPLE RESPONSE

Newspaper ............................................ Television ............................................. Other department pay counters .................... Neighbours ........................................... Colleagues at office ................................. Others .................................................

1 2 3 4 5 6

Q9. Have you or your family members ever visited the civic centre for any service?

YES .................................................... 1 NO .......................................... 2 END

Q10. How often do you or your family members visit the civic centre?

Once in a month ..................................... Once in two months ................................. Once in three months ............................... Once in 3–6 months ................................. Once in an year ...................................... Others (SPECIFY) ..................................

1 2 3 4 5 6

Questions to assess the respondent’s knowledge of the working of the application/service. For example, Q11 and Q12 given below: Q11. Do you know if the civic centre works on Saturdays and Sundays?

SATURDAYS SUNDAYS YES .............................................. 1 NO ............................................... 2 DON’T KNOW ................................ 3

Q12. At what time does the civic centre open and close? RECORD IN 24 HOURS IF DON’T KNOW, CODE 98 PART 4:

TIME OPENS

TIME CLOSES

HH MM

HH MM

1 2 3

SERVICES AVAILED

Q13. Please give details of the services that you have ever availed from the civic centre and the ward office S. Type of service No.

1.

Issue of birth and death certificates

2.

Computation and payment of property tax

3.

Payment of vehicle tax

4.

Filing and issue of building plan and use permission

5.

Complaints

6.

Issue and renewal of licences for shops and establishments

7.

Registration of birth

8.

Registration of death

9.

Payment of TDO fees

Availed the service at civic centre and ward office?

Time last availed the service Civic centre

Ward office

10. Issue and renewal of hawkers licence 11. Issue and renewal of hotel/restaurant licence 12. Right to information 13. Others (SPECIFY)____________________ Yes-1; No-2

Specify month Specify month and year and year

154 Unlocking E-Government Potential PART 5:

COSTS OF AVAILING SERVICE

Q14. From the above services, please specify the service that you consider important so that we may ask you the following questions with specific reference to that service. RECORD SERIAL NUMBER OF THE SERVICE AS GIVEN IN Q13 Civic centre

Ward office

To expedite the process ................1 To enable service to be provided to you out of turn.....................2 To influence functionaries to act in your favour..................3 To reduce the penalty to be paid by you ....4 Others (SPECIFY) ...5

To expedite the process ...................1 To enable service to be provided to you out of turn........................2 To influence functionaries to act in your favour ...3 To reduce the penalty to be paid by you ..........4 Others (SPECIFY) .....5

Q15. How far is the centre/office from your residence? SPECIFY DISTANCE IN METERS Q16. What is your usual mode of travel to the centre/office? Walk-1; Cycle-2; Two wheeler-3; Four wheeler-4; Auto- 5; Bus-6; Others-7 Q17. How many trips did you need to make for the service? Q18. Please specify the average travel cost of making each trip. SPECIFY AMOUNT IN RUPEES Q19. Please specify the average travel time of making each trip. SPECIFY TIME IN MINUTES Q20. On an average, how long do you wait for availing the service after reaching the centre/office? SPECIFY TIME IN MINUTES Q21. What is the total service charge you paid? SPECIFY AMOUNT IN RUPEES Q22. Please estimate the total wage loss, if any, due to time spent in availing the service? SPECIFY AMOUNT IN RUPEES Q23. Have you come across errors in the documents, which required correction? Yes-1; No-2 Q25 Q24. How many trips were required for the correction to be done? Q25. Did you pay a bribe to civic centre/ward office functionaries/agents? Yes-1; No-2 Q28 Q26. For what purpose did you pay a bribe? MULTIPLE RESPONSE

A Framework and Methodology for Impact Assessment 155 Q27. How much money was paid as bribe to the functionaries/agents? SPECIFY AMOUNT IN RUPEES Q28. Was any other amount paid to agents to facilitate the service? SPECIFY AMOUNT IN RUPEES Q29. What was the total cost of preparation of documents? SPECIFY AMOUNT IN RUPEES Q30. What was the total effort required to prepare the documents? SPECIFY EFFORT IN TERMS OF HOURS OR DAYS Q31. Please indicate the change in number of documents to be submitted when you used the computerized system vis-à-vis the manual system?

HOURS

HOURS

DAYS

DAYS

Significantly increased ................................1 Marginally increased ..................................2 No change ..............................................3 Marginally reduced....................................4 Significantly reduced..................................5

Q32. What was the total elapsed time in availing the service, right from the date of application to actually receiving the service? SPECIFY TIME IN DAYS. IF <1 DAY RECORD 00

PART 6 QUALITY OF SERVICE AND QUALITY OF GOVERNANCE Q33. Please rate the performance on the following dimensions on the basis of your use experience with both the systems. Very Poor-1; Poor-2; Just Satisfactory-3; Good-4; Very Good-5 S. No.

Civic Ward S. centre office No.

Civic centre

1.

Durability and legibility of certificates

2.

Simple design and layout of forms

3.

Convenient location of centre/office

4.

Transparency of information and decisions

5.

Convenient working hours

6.

Less time and effort required to avail service

7.

Courteous, helpful and knowledgeable staff

8.

Confidentiality and security of data

9.

Speedy/efficient handling of queries

10. Error free transactions

11.

Accurate and consistent information provided by staff

12. Less corruption

13.

Fair treatment

14. Need for dependence on agents

15.

Predictability of the outcome

16

Efficient queuing system

Ward office

156 Unlocking E-Government Potential 17.

Complaint handling mechanism

18. Officers can be held accountable

19.

Good service area facilities

20. Clear and simple processes and procedures

Q34. Among the above 20 factors, please list the three factors that you consider as the most important. RECORD THE S. NO. FROM Q35. To what extent do you agree (after seeing the civic centre in operation) that Information Technology/computerization can be used to give better citizen service?

Strongly disagree ................................... 1 disagree .............................................. 2 Neither agree nor disagree ........................ 3 Agree ................................................. 4 Strongly agree ....................................... 5 Civic centre

Ward office

Q36. Have you ever needed to engage intermediaries in order to deal with the functionaries?

Yes .....................1 No ......................2

Yes ............ 1 No ............. 2

Q37. Are you aware of the citizen’s charter?

Yes .....................1 No ......................2

Yes ............ 1 No ...2 Q39

Q38. Does the time frame for service delivery adhere to the citizen’s charter?

Never ..................1 Rarely .................2 Sometimes ............3 Very often ............4 Always ................5

Never ......... 1 Rarely ........ 2 Sometimes ... 3 Very often ... 4 Always ....... 5

Q39. Overall, do you prefer the civic centre or the Ward Office?

Civic centre .....................................1 Ward office .....................................2

Q40. Please estimate the level of anxiety or stress caused due to any delay in receiving the service. Very high-1; High-2; Neutral-3; No stress-4; None at all-5

ADDITIONAL INFORMATION: PLEASE ASK THE RESPONDENT IF HE/ SHE WOULD LIKE TO MAKE ADDITIONAL COMMENTS ON THE CIVIC CENTRE, MANUAL SYSTEM OR COMPUTERIZATION IN GENERAL. RECORD VERBATIM.

THANK AND CLOSE Source: Bhatnagar 2007.

9 Case Studies on Government to Citizen Applications in E-Government This chapter includes four case studies of e-government applications covering different types of services to citizens and a variety of benefits that are delivered. These applications have been implemented in many states in India and in many other countries as well. The impact of these applications on citizens has been studied systematically and, therefore, it is possible to make a judgement about their success. Every case has shades of successes and some elements that have not worked so well. All these cases incorporate the results from the assessments of these projects. There is learning to be derived from both successes and failures. The cases are structured to present the problems with earlier manual methods, the details of the new approach, implementation challenges that were faced, costs and benefits delivered and key lessons that can be learnt by others who wish to implement e-government systems. Section 9.1 describes the computerization of land records (CLR) in Karnataka (Bhoomi). Land records have been computerized in 10 states of India. It is one of the MMPs of the NeGP. In most states, computerization was limited to the issue of Record of Rights (RoR). Mutation, which is a more complex process, has been computerized in just five states. A study of the impact of online issue of RoRs indicated a reduction in overall cost for the clients and a significant reduction in bribery. Computerization reduced the number trips in almost all states by one. Average number of trips for all users in all the 10 states was 3.2 in the manual mode which was reduced to 2 in the computerized mode. Waiting time was reduced by 30 percent from an average

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of 130 minutes in the manual mode. Bribes had to be paid in nine out of the 10 states in the manual system. The percentage of users paying bribes declined from an average of 38 percent to 25 percent over the 10 states. It is noteworthy that in five states there is a significant reduction in bribes. However, in most states, users reported an increase in travel costs (in spite of a reduction in number of trips) because the delivery of RoRs has been centralized to taluk level from the village level in the manual mode. For the five states where mutation has been computerized, the number of trips was reduced from nearly four in the manual system to 2.3 in computerized delivery (an average reduction of 1.5). In states other than West Bengal, only two trips were required which is almost an optimal level. The waiting time has been reduced by almost an hour from nearly 3–2 hours. In three states there are very significant gains in elapsed time which has come down from 80–110 days to less than 30–60 days after computerization. Unlike RoRs, in all the five states agents were used by 50–80 percent of all users across the five states in the manual system. Even after computerization agents continue to be used by a large proportion of users in four states. Gujarat has been able to eliminate the use of agents. In two states corruption has been impacted significantly. Bhoomi is widely acknowledged as the best practice example of land record computerization in India. Section 9.2 describes the Computer-Aided Registration of Deeds (CARD) project in which sub-registrar’s offices that register property transactions and other types of deeds were computerized in Andhra Pradesh. Sub-registrar’s offices in 12 states have been computerized in the last decade. It is one of the MMPs of the NeGP. A study of the impact of computerized property registration on citizens in the 12 states indicated that the number of trips have been reduced from an average of four to 2.3. Reduction in waiting time is more significant as nearly one hour has been shaved off from a two-hour wait in the manual system. The impact of computerization on bribes was very marginal. Nearly 2 percent of all transactions in the 11 states reported payment

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of bribes in the manual system and there was not much change. However, significant gains were reported in the elapsed time (days elapsed from application to final registration) from 32 days in the manual system to 13 days in computerized processing. Property registration was the only project where a reasonable reduction was reported in the cost of preparing documentation for the service. The CARD project in Andhra Pradesh (AP), which went live all over AP in 1998, is the earliest e-government application in India. Eleven other states have implemented computerization of registration of deeds improving upon some aspect of CARD. A public–private partnership (PPP) has been used in Maharashtra and Karnataka. Section 9.3 describes three separate initiatives from Ahmedabad, Kalyan-Dombivli and Vijayawada municipalities in which delivery of municipal services have been computerized. Computerization of municipalities is one of the MMPs in the NeGP. Perhaps 20–30 municipalities in India have computerized some parts of delivery of municipal services. Results of an impact assessment of the Ahmedabad Municipal Corporation computerization are reported in the case study. Section 9.4 describes the e-Seva project from AP where multiple services from federal, state and local government are delivered online at a number of e-Seva centres in various municipal towns of AP. E-Seva, launched in 2001, was one of the earliest e-government projects of its kind (offering multiple services under one roof) in India. Many other states and cities have followed the example of e-Seva. Results from an impact assessment of e-Seva are reported in the case study. All the cases exemplify many critical success factors as discussed in Chapters 4 and 5. Some of these cases were initially documented in 2000–01, about a year after the application had been implemented. They were updated in 2008 at the time of writing this book to incorporate recent data and information available from formal and informal evaluations. The purpose of including these cases is not to pronounce them as successes or failures. In fact, the degree of perceived success may change as

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time progresses, project implementers make way for new teams and political support weakens or strengthens. These cases do not merely present facts at a point of time, but include analysis of the process of developing these applications to provide learning for those who will strategize and implement e-government in different contexts in the future. The cases are not necessarily intended to serve as best practice examples that can be replicated in other contexts. Readers are encouraged to seek more details in case a similar application is to be implemented in another context.

9.1 Computerization of Land Records in Karnataka (Bhoomi) The Department of Revenue in Karnataka, India has computerized 20 million records of land ownership of 6.7 million farmers in the state. Previously, farmers had to seek out the village accountant to get a copy of the Record of Rights, Tenancy and Crops (RTC), a document needed for many tasks such as obtaining bank loans. There were delays and harassment and bribes had to be paid. For a fee of Rs 15, a printed copy of the RTC can be obtained online at computerized land record kiosks (Bhoomi centres) in 203 taluk offices. Processing mutation of land records has been streamlined after an application is made online. Taluk databases are uploaded to a central database. RTCs would be available online at Internet kiosks which are being set up in rural areas.

Application Context In the manual system, land records were maintained by 9,000 village accountants, each serving a cluster of three to four villages. Two types of records were maintained: (a) registers, which indicated the current ownership of each parcel of land, its area and cropping pattern and (b) village maps that reflected the boundaries of each parcel. Requests to alter land records (upon sale or inheritance of a land parcel) had to be filed with the village accountant. However, for various reasons, the village accountant could afford to ignore these ‘mutation’ requests. Upon receiving a request, the

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village accountant is required to issue notices to the interested parties and also paste the notice at the village office. Often neither of these actions was carried out and no record of the notices was maintained. Notices were rarely sent through post. An update of the land records was to be carried out by a revenue inspector if no objections were received within a 30-day period. In practice, however, it could take up to years for the records to be updated. Landowners found it difficult to access the village accountant as his duties entailed travelling. The time taken by him to provide RTCs has ranged from three to 30 days, depending upon the importance of the record for the farmer and the size of the bribe. A typical bribe for a certificate could range from Rs 100 to Rs 2,000. If some details were to be written in an ambiguous fashion, out of selfish motives, the bribe could go up to Rs 10,000. Land records in the custody of village accountant were not open to public scrutiny. Over time, several inaccuracies crept into the old system through improper manipulation by the village accountant particularly, with respect to government land. Even where accountants were law-abiding, village maps could not remain accurate as land was parcelled into very small lots over generations. The system of physical verification of records by deputy tehsildars (supervisors of village accountants) became weak as the number of records multiplied and these functionaries were burdened with a host of other regulatory and developmental work.

A New Approach The first phase of computerization was completed in 2002 making a computerized land record kiosk (Bhoomi centre) operational in all the 203 taluks in Karnataka. At these taluk offices a farmer can obtain a copy of an RTC online by paying a Rs 15 fee. A second computer screen faces the clients to enable them to see the transaction being performed. Copies can be obtained for any land parcel in the taluk by providing the name of the owner or the plot number. A village accountant is available full time at these kiosks.

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When a change of ownership takes place through sale or inheritance, farmers can file for a mutation of the land record at the Bhoomi centre. Each request is assigned a number by the computer. The number can be used to check the status of the application on a touch screen provided on a pilot basis in three of the computerized kiosks. The computer automatically generates notices which are then handed over to the village accountant stationed in the field who is responsible for servicing the particular village. Most village accountants stationed in the field visit the central taluk office once in two or three days to pick these papers. The process of issuing notices by village accountants to the interested parties remains the same. As before, the revenue inspector who is stationed in the field approves changes to the land record 30 days after the notices are served, provided that there are no objections. A significant change in the process makes it mandatory to stick to a first-come-first-serve discipline. It takes a few days for the approval to reach the Bhoomi kiosk where it is scanned on the day of its arrival. An inward and outward register is maintained. The updated RTC is printed at the Bhoomi kiosk and handed over to the village accountant for her record. The new owner receives a copy on demand. Bhoomi kiosks create scanned copies of the original mutation orders and notices to avoid unnecessary litigation due to claims that the notices were not served. With the computerized system, administrators can quickly determine the number of approved and overdue mutation orders. Information collected from one of the urban taluks indicates that 3,000 mutations were handled annually earlier. In two years after computerization, there was a 200 percent increase in the number of mutation requests. This change seems to indicate a level of approval of the new system by the citizens and willingness to update changes in landownership that were previously left undocumented. The Bhoomi software incorporates the bio-logon metrics system from Compaq which authenticates all users of the software using their fingerprint. A log is maintained of all transactions in a session. This makes an officer accountable for her decisions

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and actions. The government also has plans to web-enable the database to make available to the farmer a copy of the land record locally through an Internet kiosk—although without a signature such a copy will only have an informative value. After the first phase, all the taluk Bhoomi kiosks were connected to a state data centre by using the extra bandwidth available with the network of another state-wide application. A government order decentralizing Bhoomi to the village level was passed. Eight hundred kiosks which will access RTCs from the central database are being opened with public–private partnerships. These centres will charge a fee of Rs 25 instead of Rs 15, enabling them to retain Rs 10 per RTC to cover their operational costs and provide a small return on the investment. The property registration application now passes information on every land transaction to Bhoomi so that a mutation request can be anticipated. The work of the survey department has been reorganized with a number of private surveyors licenced to do the survey work after mutation. In a pilot, in 2004, around 200 village accountants were given ‘simputers’ (locally developed handheld computers) costing about Rs 3.5 million. One round of crop updating for 600 villages was done using simputers. The second round of crop updating was done in the last quarter of 2003. Teething problems such as maintenance and software bugs were manageable. However, a further expansion could not be done because of the high investments involved.

Implementation Challenges Rollout of the application initially to 177 locations was a challenge due to the poor quality of manual records and the enormity of the data entry task. In the first phase the project was implemented on a pilot basis in a controlled environment at four taluks. After gaining experience in data entry operations and implementation of the software, the scheme was extended to one pilot taluk in each of the 27 districts. In the third phase the project was rolled out simultaneously to all the remaining 203 taluks.

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Records in the field were not up-to-date due to poor work culture and lack of training amongst the revenue staff. Also, farmers often do not report transactions within the family either because they are discouraged by the attitude of the revenue staff or due to internal family problems. The maintenance of land records is not uniform across districts. As revenue officials were not interested in data entry, private data entry agencies tackled the 20,000 man-months of work in an offline mode at the taluk level. A comprehensive software that accommodated all variations in manual records across districts was used. After the initial data entry, prints were validated against the original record books by the village accountants. Many problems were encountered in offline data entry. The process was slow and error prone due to poor work quality by data entry agencies. Technical guidance from officers of the district informatics centre was not easily available as they were overloaded with other work. And data entry agencies were unwilling to recruit more manpower as it required investment in training on a specialized data entry software which would not be useful to them for other projects. Moreover, interruptions in electrical power in the taluk headquarters and delay in maintenance of computers at the taluk level by vendors were a problem. Every district was provided with a consultant to act as a bridge between the data entry agency and the district administration. After the system is operational, the consultant trains the taluk staff and helps the district administration in day-to-day work at the Bhoomi kiosk. Operators were provided for one year to handle online data entry at the Bhoomi kiosks. Village accountants took over the work of these operators after a year. A comprehensive training module was designed jointly by the department and the National Informatics Centre (NIC, a software development agency of the central government) to train the accountants. Training lasted for seven days, 11 hours each day, followed by a paperless test on the last day. The village accountants who are in charge of the new kiosks were chosen very carefully. Young persons, fresh out of college, were recruited and trained at the headquarters. These

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officials had not experienced the power that a village accountant could exercise over rural farmers. The project leader (additional secretary of the department) personally participated in the training given to every batch of accountants to ensure that they felt complete ownership and a sense of importance in being assigned to this new initiative. Accountants were encouraged to talk to the project leader either at his home or at his office. Nearly 500 officials, including all deputy tehsildars, were trained at the state headquarters and more than 1,000 officials were trained by the Bhoomi consultants at the district level.

Challenge of Getting the Staff on Board To allay the fears of field officials that their job descriptions would change in a major way, 12 state-level information seminars were organized for 1,200 senior and mid-level officers. Additionally, four division-level workshops were organized to train 800 officials. These seminars emphasized that maintenance of land records was only one of their many functions and that computerization would remove the drudgery of maintaining these records manually. Revenue officials would continue to be responsible for field enquiry. Reducing corruption was not a key message at these gatherings. The political executive was completely involved in the computerization project. The state Chief Minister and Revenue Minister highlighted the importance of the project publicly. The Chief Minister wrote regularly to all district deputy commissioners exhorting them to get fully involved in the computerization. He inaugurated a large number of land record kiosks. Meanwhile, the Revenue Minister regularly reviewed the computerization process and also inaugurated a large number of kiosks. A committee of Members of the Legislative Assembly (MLAs) visited the kiosks and deputy commissioners invited MLAs of their districts to witness the functioning of kiosks. All this helped demonstrate that there was a strong political will for computerization. Selected field-level personnel were invited to participate in the software development process for various Bhoomi modules through a formal state-level Bhoomi committee. Meetings were

166 Unlocking E-Government Potential

held with participation from various levels in the department to elicit suggestions for improvement; and decisions taken at these meetings were incorporated into the software design. Nearly 125 person-months were spent on software development. A further effort of 30 person-months will be needed to upgrade to the next version. Field supervision is critical to rollout any new system. The project leader in charge preferred to appoint four independent consultants who could tour sites randomly in each division and report on the problems and progress of Bhoomi. Appointing consultants turned out to be problematic, as the central government project did not permit such a line item of expenditure. The expected cost was Rs 1.5 million.

Evaluation of Bhoomi Improving the land record delivery system has a significant social and economic impact in rural areas. Nearly 2,500 bank branches in Karnataka loan approximately Rs 40 billion to farmers as working capital every year. A copy of the RTC is absolutely essential for the farmer to procure the loan. Effective land record management can help banks in recovery. More than 70 percent disputes in courts are land based. Adjudication of disputes can be faster if access to land records is made efficient. Bhoomi as a transparent land record system is a vast improvement over the manual system that it has replaced. For a fee of Rs 15 a printed copy of the RTC could be obtained online in minutes at computerized Bhoomi kiosks in 203 taluk offices. The land records are in the public domain. Copies of RTCs can be obtained for any land parcel in the taluk by providing the name of the owner or the plot (survey) number. Any record can be viewed through a touch screen at a few kiosks. Farmers can apply for mutation and expedite the process by reviewing the status of their request online, presenting documentary evidence to supervisors in the event that their request is not processed within the stipulated time period. With the computerized system, administrators can quickly determine the number of

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approved and overdue mutation orders. In four years, the number of RTC transactions has nearly doubled from 6.56 million to 12 million per year. The number of mutations has grown from 0.29 million in 2003 to 1.03 million in 2005. This change would seem to indicate a level of approval of the new system by the citizens and willingness to update changes in landownership that were previously left undocumented. In 2002, the annual revenue generated through issuance of RTCs was Rs 40 million. In 2005, yearly collection had risen to Rs 203 million. Nearly 92 percent of all Bhoomi users take an RTC whereas 8 percent apply for a modified RTC (involving mutation). The users of Bhoomi collect these documents for a variety of reasons. The largest proportion of users (60 percent) collects the RTCs for applying for loan from a bank. Nearly 25 percent use a RTC to verify the details of their own property or an adjoining property. About 5 percent uses the documents in courts. Bhoomi is one of the few e-government applications that have been evaluated in many different ways by different agencies. Two of these evaluations done in July 2002 and in June 2006 were based on structured survey of a random sample of users carried out by an independent market research agency. Both assessments reported that Bhoomi showed significant impact on efficiency in delivery and corruption.1 The gains that the 2002 survey reported were: The report card on the Bhoomi initiative by the Public Affairs Centre, Bangalore, sought to assess benefits derived by the users of Bhoomi centres in relation to improved quality of service and satisfaction. A sample survey was carried out among citizens who have used Bhoomi kiosks as well as a control sample of those who have used non-computerized land record providers. Quality of service and user satisfaction was compared across these two groups to derive conclusions on the impact and benefit from the Bhoomi initiative. Data was collected from six districts reflecting geographic regions of Karnataka, and two Bhoomi kiosks were selected through sampling (weighted by intensity of use) among the kiosks operating in each district. A total of 198 respondents were interviewed across the Bhoomi kiosks. For the non-computerized facility user sample, four taluks were selected and 59 respondents interviewed. A team from A.C. Nielsen and ORG-MARG carried out the field survey and preliminary analysis (Source: Public Affairs Centre, Bangalore, 2002, http://www1.worldbank.org/publicsector/egov/cvc_cs.htm). 1

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1. Ease in use of the Bhoomi kiosks: Many users (66 percent) were able to utilize the Bhoomi kiosks with no help, in contrast with 25 percent in the case of the manual system. Most users of the Bhoomi system (78 percent) found the system to be very simple. Many Bhoomi users (68 percent) had also made use of the manual system in the past. A majority of users (78 percent) who had past experience with the manual system found the Bhoomi system more simple. 2. Complexity of procedures: Most users (79 percent) of Bhoomi kiosks did so without having to meet any official except the counter staff. In contrast, in the earlier manual system, users had to meet a minimum of one official (19 percent). The extent of complexity is reflected in the fact that 61 percent users of the manual system had to meet two to four officials for their work. Legacies of the manual system have not completely faded away. About 18 percent of Bhoomi users reported that their document was not signed by the appointed village accountant operating the kiosk, 6 percent reported that they filled out an application form for the issue of an RTC. 3. Errors in documents received: Users indicated that the Bhoomi kiosks provided error-free documents to more users (74 percent), in contrast with 63 percent in the case of the manual system. Among those reporting errors, names spelt wrongly were the most frequent (81 percent in case of manual system and 53 percent in the Bhoomi system). However, major errors in land details were noticed by 31 percent of those who reported errors in the manual system in contrast with 4 percent in case of Bhoomi users. 4. Rectifying errors: Given that errors are not unusual at this stage of development of the Bhoomi system, how efficient are the response systems? Almost all users of the Bhoomi system had confidence to complain and sought rectification (93 percent) as compared to less than half (49 percent) in the manual system. Half the complainants (58 percent) got timely response in case of Bhoomi while

Case Studies on Government to Citizen Applications in E-Government 169

5.

6.

7.

8.

such response was reported by only 4 percent of those using the manual system. Cost of service: All users of the Bhoomi facility who wish to receive a hard copy of the RTC are to pay a fee of Rs 15 each and receive a receipt for the same. A large segment of users (66 percent) reported that they did not get a receipt for the payment they made. Hidden costs: Citizens also incur hidden costs of time and effort to secure these certificates. Most Bhoomi users (79 percent) reported a minimal waiting time in the queue of 10 minutes or less, in contrast with 27 percent who could meet the concerned official in such short time. The bigger issue is the number of times a citizen had to visit these offices to get the certificate. While most users got the RTC (72 percent) one visit to the Bhoomi kiosk, only 5 percent got it that fast in the manual system. Reduced corruption: The most serious issue is that of corruption and bribery. Two-thirds of the users of the manual system paid a bribe and 66 percent of them reported having to do so very often. In contrast, only 3 percent of the users of the Bhoomi system reported paying bribes. Staff behaviour: While the technical capacity of the system plays an important role in its success, the approach of people who handle these tasks is of critical significance, too. Most Bhoomi users (85 percent) rated staff behaviour at the Bhoomi kiosks as ‘good’. None of the users of the manual system rated staff behaviour as ‘good’.

Bhoomi empowers the small rural farmer in many ways. Their relationship with lower rungs of civil servants can be on a more equal footing. Armed with genuine certificates, farmers can raise loans for a variety of purposes and cannot be easily harassed by bank staff. Mutations became an instrument for rural corruption, exploitation and oppression. In case of disputes, landowners simply bribed the officials to get the records changed to favour their position. Now the records are in the public domain and can be easily verified by anyone.

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The benefits of Bhoomi as reported by the 2006 study are shown in Table 9.1. Table 9.1: Comparison of Bhoomi with the manual system RTC Manual Number of trips

Mutation

Computerized Change

2.3

1.8

(0.5)

Waiting time (minutes)

73.5

77.7

4.2

Elapsed time (days)

3.3

2.9

Error rate (%)

3.3

Quality of service (5-point scale)

Manual

Computerized Change

2.3

1.9

(0.5)

102.0

68.1

(34.0)

(0.4)

5.3

11.3

6.0

8.3

5.0

1.5

0.7

(0.8)

N.A.

N.A.

N.A.

3.1

4.0

0.9

Proportion paying bribe (%)

29.7

0.8

(28.9)

33.8

0.7

(33.1)

Quality of governance (5-point scale)

N.A.

N.A.

N.A.

3.3

4.0

0.8

Composite score (5-point scale)

N.A.

N.A.

N.A.

2.9

4.5

1.6

Source: Bhatnagar 2007.

The only group of farmers that did not prefer Bhoomi was the group of large urban farmers, perhaps, because they lost the ability to manipulate the system in their favour.

Benefits and Costs The total investment in the project is estimated at Rs 216.348 million. This does not include the cost of software development done gratis by the NIC. The breakup of the investment in the project as of 31 March 2006 is shown in Table 9.2.

Case Studies on Government to Citizen Applications in E-Government 171 Table 9.2: Investment in Bhoomi (Rs million) Amount spent Operating system Application software Kannada software Database Hardware & civil construction (Rs 0.64 million/Taluka X 203) Data entry (one time) Total

2.66 0 0.39 4.07 129.92 79.31 216.35

Source: Bhatnagar 2007.

The entire initial funding came from the central government. Additional components have been funded by the Karnataka state government, which has provided Rs 64.4 million. The Ministry of Communication and Information Technology, Government of India, provided Rs 50 million to set up a state data centre at Bangalore. This data centre, however, is not exclusively for Bhoomi and can also be used by other agencies of the Government of Karnataka (Bhoomi 2007). The unit cost of processing an RTC has been roughly estimated at Rs 13, assuming a life of five years for the hardware and an activity level of 2 million RTCs issued from all the kiosks (10 percent of all holdings). This cost includes an assumed operational expenditure of Rs 2 for stationery, cartridges and electricity. The current user fee of Rs 15 seems sufficient to cover these costs. However, if the scheme is extended to 700 sub-taluk offices, then there would be an additional expenditure of Rs 0.25 million per kiosk on hardware (one PC, Rs 45,000; printer, Rs 20,000; UPS, Rs 5,000; generator, Rs 30,000) and site preparation, raising the unit cost of processing above Rs 15 per record. By the end of 2005, Rs 625 million had been collected through user fees for the distribution of RTCs and mutation done through 203 kiosks. The number of RTCs issued and mutations carried out in a year has doubled in four years and will perhaps stabilize at 12 million RTCs and 1 million mutations.

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The total yearly operating expenses for all the 203 centres, including employee cost, in 2005 was Rs 160 million. The yearly revenue from user fee in 2005 was Rs 215 million leaving a surplus of Rs 55 million every year. Therefore, the payback period for the investment in first phase was four years. In addition, there are indirect and monetizable benefits for the farmers. The cost to farmers on account of travel cost and travel time has marginally gone up after computerization even as the number of trips to offices and waiting time has been reduced. The major gain is in the reduction of bribes. The 2002 survey reported a reduction of 60 percent in the number of farmers paying bribes, whereas the 2006 survey reports a 30 percent reduction. The weighted average value of bribe paid in 2002 was Rs 152 per person, while it is about Rs 50 according to the 2006 survey. Therefore, the reduction in cost because of less corruption can be estimated to be between Rs 15 (2006 survey) and Rs 90 (2002 survey).

Potential Future Benefits There are plans to use the 800 privately owned rural Bhoomi kiosks being set up for disseminating other information like lists of destitute and handicapped pensioners, families living below the poverty line, concessional food grain card holders, mandi rates and weather information. Such information is already available at one taluk on a pilot basis. The system generates various types of reports on landownership by size, type of soil, crops, owner’s sex, etc. which would be useful for planning poverty alleviation programmes and supplying agricultural inputs. Banks and other lending institutions could be provided electronic access to the database for processing requests for crop loans and conduct some advance planning on the quantum of lending required. Similarly, the high court, district and taluk courts could access the database for resolving legal disputes surrounding land. The system could also lead to better administration of the Land Reforms Act such as enforcing a ceiling on landholdings.

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Key Lessons Implementation of land records computerization has been difficult in India. Bhoomi succeeded because there was a champion who worked a 15-hour day for over a year, devoting 80 percent of his time to the project. Minimizing resistance from staff by harnessing political support was an important contributory factor. Extensive training coupled with a participatory style also helped to diminish resistance. The phasing of implementation in terms of scope (first RTC, then mutation, then state data centre and expansion to rural areas and finally integration across agencies) and geographic coverage was well conceived to balance the potential benefits against the risk of implementation failure in deciding how much reform (re-engineering) to tackle at any one time. In Bhoomi, significant benefits are delivered in issuing RTCs, but much of the old mutation process remained unaltered in the first phase. In the next phase mutation was taken up. Bhoomi has reduced the discretion of public officials by introducing provisions for recording a mutation request online. Farmers can now access the database and are empowered to follow up. Reports on overdue mutations can point to errant behaviour. Still, supervisors must examine the reports and take appropriate action. In remote areas operators can turn away citizens by telling that the system offering online service is down. An analysis of kiosk wise performance across six kiosks in 2006 indicated a wide variability in performance. The variation was largely traced to poor electricity supply at a few locations. Strict field supervision is needed (through empowered citizens committees and NGOs) to curb such behaviour. Ultimately, the only recourse that a citizen has against such practices is to lodge a complaint. The process for lodging a complaint should be facilitated through the web. The back-end has to be geared to handle complaints received electronically. As an implementation strategy, manually written RTCs were declared illegal from the day the computerized system became operational in a taluk. The notification was issued on a taluk-by-taluk

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basis as and when the scheme became operational there. This forced the department and the farmers to completely rely on the new system. The strategy worked because the application design was robust and did not falter. There was some concern in Karnataka about raising the user fee to Rs 15 from Rs 2 in the manual system. Often these fears about user fees are exaggerated, particularly if services have genuinely been improved. The response of the people at taluk level has been overwhelming as is indicated by the growth in number of mutations and RTCs issued. Soon after the initial success, elected representatives, district officials and farmers made demands that Bhoomi be extended to the sub-taluk level. Presumably, the project was considered an unqualified success. However, this expansion would have increased the costs without necessarily increasing the number of RTCs that would have been issued. The department did well to resist the temptation as it would not have been able to monitor and support a geographically spread operation. In any case, systems should be allowed to stabilize and prove their sustainability over a two-year period before attempting any replication. Many years ago, a District Rural Development Agency computerization project called Computerize Rural Information Systems Project (CRISP) was replicated in 500 districts in a hurried manner. The expansion turned out to be a failure. The department did well to explore other possibilities, short of direct expansion, that could make RTCs available at subtaluk level. Plans to allow private rural kiosks to issue unsigned copies may never have come about if a hurried expansion of the Bhoomi system had been made. If such copies can be accepted by banks and verified by accessing the departmental database, the need for signed copies will be reduced. A solution may emerge through wider consultations with the ultimate consumers of these documents (The Case Study is based on Chawla and Bhatnagar 2002, Bhatnagar 2003, Lobo 2002, Islam 2003, Gupta 2002, CLR nd).

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9.2 Computer Aided Registration of Deeds in AP (CARD) Application Context Registration of document changes in ownership and transactions involving immovable property are governed by the Indian Stamp Act of 1899. Deeds of various kinds are required by law to be written on stamp paper of prescribed value. Certain transactions require a fixed duty. For others the ad valorem method is used, whereby the stamp duty is a percentage of the property value or loan that is the subject of the instrument. The ad valorem method ensures that inflation will not erode the value of stamp revenues. This method accounts for over 90 percent of the total revenue from stamp duty. Registration is carried out at the office of the sub-registrar of assurances. In Andhra Pradesh (AP), there are 387 sub-registrar offices that registered approximately 1.2 million documents per year. The work of the sub-registrar is supervised by a hierarchy of district registrars (28), deputy inspectors (6) and an inspector general. The traditional eleven-step registration procedure prior to computerization in 1998 was complex and time consuming, beyond the comprehension of most citizens. It consisted of the following steps: Step 1: The value of the property was determined. Step 2: Stamp duty, transfer duty, registration fee and other fees was calculated. Step 3: Stamp paper was purchased by the citizen. Step 4: The legal registration document and certificates to be enclosed with the document were prepared. Step 5: These documents were presented to the sub-registrar of the jurisdiction. Step 6: The sub-registrar scrutinized the documents reviewing the valuation of the property and calculation of stamp duty, transfer duty, registration fees and miscellaneous fees.

176 Unlocking E-Government Potential

Step 7: Payment of deficit stamp duty, if any, is required. Step 8: Final document was certified by the citizen before the sub-registrar and two witnesses. Step 9: The document was copied into the register books. Step 10: Copies were posted to two indexes (by name and property) and accounts and reports. Step 11: The document was returned to the citizen. The actors involved in the conventional registration process are: 1. Stamp vendors: Stamps were sold to the public through private stamp vendors (licenced by the Registration and Stamps Department) and at stamp counters located at the offices of the sub-registrars. The private stamp vendors commonly charged an illegal premium on the face value of the stamps when there was scarcity of stamps of a particular denomination. They also resorted to the sale of fake stamps and post-dated stamps for an additional charge. There were about 2,300 licenced stamp vendors and 221 departmental stamp counters in AP. 2. Document writers: The document writers were given official recognition in several states of India through a system of licencing (there were 3,908 licenced writers in AP). In AP, when a document was not written by a licenced document writer, an additional fee (approximately Rs 215) was levied at the time of registration. Document writers prepared the maps and location sketches to describe the property, filled in various forms and assisted citizens in procuring certificates from various authorities. For their comprehensive services they demanded a fee higher than that prescribed by law. 3. Registration agents: These are self-employed individuals and firms who, for a lump sum payment, get a document registered, covering the whole range of services.

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This manual registration system had a number of important drawbacks. The most important ones were: 1. Lack of transparency in valuation: Since the stamp duty is linked to property values, valuation procedures are vital. A system of market value guidelines was introduced in 1975, whereby the rate per unit of rural/urban lands is assessed for all villages/towns and incorporated in a register for public guidance. However, the basic value registers were usually not accessible to the public and even if they were, it was difficult for a common citizen to read them and calculate the amount of stamp duty, transfer duty, registration fee and miscellaneous fee. All this created an impression that the valuation of property was ‘flexible’ and ‘negotiable’, prompting a host of corrupt practices and a flourishing business of brokers and middlemen who exploited the confusion surrounding the registration process. 2. Tedious back-office functions: Conventional manual methods of copying, indexing and retrieving documents were laborious, time consuming and prone to errors and manipulations. Thus, a premium was often paid for speedy delivery of services. 3. Difficulties in preserving documents: The registers occupied a lot of physical space, usually in dusty back rooms. These records also deteriorated with age and repeated handling.

A New Approach CARD, implemented in 1998, was designed to eliminate the maladies affecting the conventional registration system by introducing electronic delivery of all registration services. CARD was initiated to meet key objectives namely: 1. demystify the registration process, 2. bring speed, efficiency, consistency and reliability, and 3. improve the citizen interface substantially.

178 Unlocking E-Government Potential

These goals were to be achieved by: 1. introducing a transparent system of valuation of properties easily accessible to citizens, 2. replacing the manual system of copying and filing of documents with a sophisticated document management system using imaging technology, and 3. replacing the manual system of indexing, accounting and reporting through the introduction of electronic document writing. Since 60 percent of the documents, Encumbrance Certificates (ECs) and certified copies related to agricultural properties, the success of the CARD project was expected to benefit the rural farming community greatly. Agriculturists would also benefit from a possible link-up of the CARD network with the rural bank network which would enhance the efficiencies of the rural credit services by eliminating the need for paper-based procedures.

Implementation Challenges Implementation of an IT project involving over 200 locations state-wide was a formidable challenge. The project was divided into nine major tasks and 64 sub-tasks. Approximately, 2,000 hardware items and software packages were procured within a span of about five months through the agency of AP Technology Services. The project had to be implemented rapidly so that the technology (both hardware and software) would not become obsolete prior to the project launch. Implementation required considerable re-engineering. First, the National Registration Act of 1908 did not envisage the use of computers to handle registration procedures. The Registration Act, therefore, had to be amended, a process that took over a year. The Act, in its application to the state of AP, has been amended to provide for: 1. Document registration and copying may be completed with the aid of electronic devices like computers, scanners and

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CDs, and copies may be preserved and retrieved with the same tools. 2. Copies of documents registered and stored electronically, retrieved, printed and certified by the sub-registrar shall be received as legal documents. 3. The registration software shall be prescribed by the inspector general. Second, to use these new technologies effectively, a large and well-designed training programme was carried out by a private sector company at a cost of Rs 13 million (9 percent of the project cost). A training programme of one to three weeks was organized for different categories of officers. Seventy-five Data Processing Officers (DPOs) were trained for six months and 1,200 data entry operators were provided two weeks of training. Extensive system reforms cannot be brought about without adequate motivation within the organization. The decisions taken to motivate employees were: 1. A cross-section of field personnel was closely associated with the design and development of the software and especially in the task of business process re-engineering. 2. No external technical personnel were recruited. 3. The Head of Department undertook extensive tours throughout the state and conducted workshops, presentations and special training camps involving all departmental employees. The officials who managed the two pilot sites were closely associated with this effort. 4. Senior functionaries of the government such as the principal secretary and minister of the revenue department were closely associated with, and supportive of, the project. A third implementation challenge was the tremendous data backlog. The CARD masters (state level) could be built without much difficulty as the data is both limited and readily available. However, the project encountered major challenges in building basic value data and EC data for the last 15 years. The basic value data consisted of about 50,000 records at each sub-registrar office. These data were entered in the systems by the trained

180 Unlocking E-Government Potential

staff in six to eight weeks. The task of entering EC data, which has a more complex size and structure—about 1.2 million records of 2 KB size each—was outsourced to five agencies in March 1998. Fourth, the installation of the CARD application software in 212 locations was considered a major challenge. Seven versions of the software had to be developed, tested and deployed in a period of four months to achieve the desired functionality across the counter. This task was made possible by the relentless efforts of the DPOs who were groomed in preparation for this. One significant strategy adopted to ‘de-bottleneck’ this process was to enable the DPOs to contact the head of the department and a core of technical personnel at the headquarters at any time to solve problems encountered in installation. The CARD project was launched on 4 November 1998. Political figures from each region inaugurated the new centres on the same day, thus helping to solidify.

Benefits and Costs Within six months of the launch of the CARD project, about 80 percent of all land registration transactions in AP were carried out electronically. By 2006, all the 387 offices had been computerized and nearly 4.6 million deeds had been registered. Table 9.3 presents the improvements of the CARD project over the manual system as reported by a 2006 field survey of users. Table 9.3: Comparison of CARD with the earlier system Manual Number of trips Waiting time (minutes) Elapsed time (days) Error rate (%) Quality of service (5-point scale) Proportion paying bribe (%) Quality of governance (5-point scale) Composite score (5-point scale) Source: Bhatnagar 2007.

Computerized

Change

2.8

1.4

(1.4)

184.8 4.7

87.8 1.8

(97.0) (2.9)

4.7 4.3 28.0 3.3 3.8

3.9 3.8 23.7 3.9 3.9

(0.9) (0.5) (4.3) 0.6 0.2

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Citizens now save 1.4 trips for completing the registration process. The waiting time has been cut by nearly two hours. The elapsed time to complete the process has been significantly reduced from five days to two days. However, there is a very marginal impact on bribery. ECs are now issued to citizens in a span of 10 minutes, using a system that searches through more than 15 years of records from over 50 offices. Table 9.4 indicates the yearly revenue collection for five years. After factoring out the natural upward trend in nominal revenues, the CARD system has generated a modest increase in revenue. Table 9.4: Revenue collection and growth in revenue over five years Revenue from tax (Rs million) Growth (%) in revenue from tax Revenue from fees (Rs million) Growth (%) in revenue from fees

2001–02

2002–03

2003–04

2004–05

2005–06

5,933.5

7,790.8

10,084.2

11,851.2

17,282.7

-

31.3

29.4

17.5

45.8

388.8

404.0

522.6

618.6

1,130.9

-

3.9

29.4

18.4

82.8

Source: Bhatnagar 2007.

Still another benefit of the CARD project was that it prompted the public to pressurize government for similar changes in other areas. The improvements made in CARD over the years were: 1. Introduction of the Telugu (local language) version of the software. 2. Citizens can now book prior appointment with the SRO for registration in order to reduce the burden of waiting for long hours at the office. This can be done through the CARD website as well over the telephone. The service of registration by prior appointment for citizens started on 15 February 2008 and is available only in selected SROs.

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3. Other web-based citizen services have been introduced. These include: (i) (ii) (iii) (iv) (v) (vi) (vii)

search facility for SROs location in urban and rural areas of Andhra Pradesh along with the history of each SRO; assistance for calculation of duty rates for apartments/flats for lease and other transactions; calculation of land rates of property (rural as well as urban) based on its location, Duty and fee statement for properties situated in urban and rural areas; search for encumbrances on various properties registered in SROs as well as viewing and printing the statement of encumbrances; online display and download of various government orders relevant to the Registration and Stamps Department, Acts, Rules and Forms; online help to citizens to write and create various legal documents like sale deed, gift deed, mortgage deed, etc.; status regarding execution of various documents pending with the department and submission of online feedback and suggestions.

The cost of the CARD project was funded entirely by the AP government. The 1996 pilot project to computerize two SROs cost about Rs 2.37 million (USD 55,000). The original outlay for the full CARD project was about Rs 150 million (USD 3 million) and this figure finally grew to Rs 300 million (USD 6.0 million). This cost includes hardware, software, training, site preparation, data entry, air-conditioners, furniture, stationery and storage media, and other miscellaneous expenses. The annual operating expenses were Rs 65 million in 2005–06 for all the offices. If an under valuation is discovered, a separate notice must be issued to collect it and this collection may go into litigation. There is also a need to encourage payment by cheque or electronic means instead of the current practice of accepting cash.

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Key Lessons Clear-cut plan The government should have a clear, coherent and rational plan for choosing a particular e-government application. The AP government prioritized and selected a service that generates high tax revenues, had a large citizen interface and some prior involvement with IT. The land deeds registration service was one such area. Targeting concrete benefits In this application, IT solutions were used for the specific goal of reducing the time it took for citizens to register their deeds. Reducing corruption was never the stated goal of the CARD project, nor has it been eliminated to a significant degree. Any government that sets out to eliminate corruption as an explicit objective is likely to encounter greater resistance from employees who stand to lose. Effective change management Of all the factors that contributed to the success of CARD, this clearly emerges as the most important factor. To circumvent predictable and formidable opposition from the intermediaries who stood to lose from these changes, the project did not confront them directly, but chose, instead, to coexist with the old system, thereby allowing the market to eliminate gradually the demand for these intermediaries. Care was also taken not to antagonize the lower rungs of bureaucracy. The government announced at the outset that no downsizing would result from the introduction of this technology and is now trying to transfer excess capacity into previously neglected activities (for example, fieldwork). However, the strategy did not work as agents continue to operate brazenly. The AP government has decided that such projects in the future will be led only by public administrators who have been trained to understand technology rather than by technical specialists trained to manage. In a huge and costly demonstration of commitment to this belief, the government has set aside funds to

184 Unlocking E-Government Potential

interview, select and train promising public administrators for future projects. This experience underscores that e-governance projects can perhaps be managed best by public servants. Infrastructure Appropriate physical telecom infrastructure is absolutely necessary for the application of IT solutions, but is an insufficient condition to achieve successful e-government reforms. The Andhra Pradesh Technology Service, a different kind of ‘infrastructural’ element, was instrumental in the progress of AP’s overall IT and e-governance agenda. This government-owned company functions as a kind of in-house consulting group for government projects. It is not bound by the government’s pay structure and is capable of attracting and retaining specialists from the private sector as well. Making a successful transition from a manual to an electronic process demanded changes to a number of established work procedures. Also, related elements, such as legislation, had to be updated.

Why Has Tax Revenue Not Increased More Significantly Since the Implementation of CARD? The department has no way to accurately measure the revenue loss in the existing system. Surrogate indicators such as the number of court cases protesting valuations can be used to suggest whether valuation is lenient or strict. Changing the basis of valuation from the current reliance on historical records (which reflect depressed prices to evade stamp duty) would increase revenue. However, while using historical prices does not optimize revenue collection, it is considered relatively transparent. A system based on market intelligence could use current prices, but would be considered arbitrary unless very well specified. Such specification would require building a Geographic Information System (GIS) database of all properties and collecting market prices of new buildings with an explicit depreciation rule. A system of that kind will require a large one-time effort, as well as continuous monitoring. One

Case Studies on Government to Citizen Applications in E-Government 185

reason why the implementation of CARD succeeded is because it skirted the contentious issue of pricing.

The Prospects of Charging Citizens for Transformed Services Every e-government project will require new investments. If manpower cannot be reduced, operational costs are likely to increase. In the long run, the CARD application may generate more tax revenues. However, in the short term, it has been a net fiscal loss for the government. The government was initially reluctant to charge a transaction fee to offset the costs. But examples elsewhere have shown that even very poor rural citizens are often willing to pay reasonable fees for legitimate and useful improvements in services. The CARD also began to charge a user fee from August 2001. The CARD project was one of the first large e-government projects implemented in India. Subsequent evaluations have confirmed the benefits delivered to citizens in terms of transactional efficiency. However, other expected benefits, like the gradual fading of intermediaries, have not materialized. Other states like Maharashtra and Karnataka were encouraged to take up computerized registration of property deeds by the success of CARD. Both states made changes in the delivery model, outsourcing day-to-day computer operations to the private sector (The Case Study is based on Bhatnagar 2000, Department of Registration and Stamps nd.)

9.3 Online Delivery of Municipal Services: Ahmedabad Municipal Corporation, Vijaywada, Kalyan–Dombivli Municipal services touch the lives of millions of citizens living in urban areas. By and large the services offered by a municipality are similar across cities and therefore it should be easy to replicate a successful e-government project from one municipality to the other. In the three examples described in this section,

186 Unlocking E-Government Potential

applications were developed by a private vendor. Yet, there are only a limited number of municipalities in the country which deliver services online. One aspect of a countrywide strategy is to develop mechanisms to promote transfer of best practices and use of packaged solution whereever possible.

City Civic Centres of the Ahmedabad Municipal Corporation Application context The Ahmedabad Municipal Corporation (AMC) provides civic services to nearly 4 million citizens residing within the urban limits of Ahmedabad city spanning an area of 190.84 sq. km. In addition, suburbs of 150 sq. km. with a population of about 1 million people also live on the support of AMC’s civic services. The corporation employs more than 40,000 people. Services provided by the corporation include construction and maintenance of all public streets and places, water supply, primary education, health and medical services, fire services, sewage and drainage services, maintenance of public transport facilities, construction and maintenance of educational institutes and provision of shelter to the homeless, poor and working classes. The AMC is headed by a municipal commissioner, an officer of the Indian Administrative Service appointed by the state government. Eight deputy municipal commissioners are responsible for the functioning of the various departments under the commissioner. The corporation has a de-centralized administration with the area under the AMC divided into six zones—Central, North, South, East, West and New West—that are further segregated into 45 wards. Each ward is represented by three councillors who are elected by residents of the respective ward. The administration of ward offices is headed by ward officers whose major responsibilities include engineering, health and sanitation. Collection from property tax levied on residential and nonresidential properties constitutes more than 90 percent of the total revenue collected through civic centres, which was about Rs 2,900 million in 2007–08. Collection of property tax used to

Case Studies on Government to Citizen Applications in E-Government 187

be a cumbersome task for the agency while its assessment was beyond the understanding of ordinary citizens. When a citizen approached the ward office to pay his dues, the ward officer needed to locate old files and records for details on past dues. The tax liability would then be calculated and approved by a higher authority after which the citizen would pay the tax and a receipt would be issued to him. Delays on the part of tax collectors and unnecessary discretion allowed to them resulted in malpractices. Complex and incorrect computations led to disagreements between the citizen and the ward office and evasion of taxes by citizens. Issue of a birth or a death certificate used to take about 10 days. The citizen’s request would be forwarded by the ward office to the central office where registers containing records of birth and death would be looked up, the requested details located and scrutinized, after which the certificate would be issued and sent back to the ward office. Besides the delay in issuing the certificate, chances of errors in details were high as data had to be recorded manually at different places by different persons. The process of issuing licences to run shops and establishments was the sole responsibility of the Gumasadhara department, which was entirely responsible for accepting, scrutiny and issuing of new or renewed licences to applicants. This involved a lot of paper work and each application was required to be approved by the Chief Inspector of shops, which delayed the issue of the licence. Thus, improper and disorganized systems for maintaining records made internal processes unmanageable and the collection system inefficient resulting in loss of revenue for the corporation. A new approach City civic centres of the AMC have been operational for more than five years. The implementation of the project started in the beginning of 2002 and the first civic centre was launched at Law Garden in September 2002. Six more were started in the same year, while an additional nine were launched in the year 2004–05. At present there are 24 civic centres operating across the five zones.

188 Unlocking E-Government Potential

The application running at the civic centres comprises of a database server located at the main office of the AMC, a web server and front-end client machines that access the database through the web server. Dedicated 64 kbps lease lines are used to connect the client machines at the civic centres to the database at the central office. The application is also available through the Internet and citizens can access the website to look up information relating to taxes applicable to them and status of complaints submitted by them. Payments can be made through various modes—cash, cheque, demand draft, credit card and debit card by physically visiting the civic centre or electronically through the website. The number of service counters at each civic centre varies between 3 and 10 depending on its activity level. The queuing system at the civic centre is based on a first-come firstserved basis with rows of chairs provided for those waiting to be served. Operational support and maintenance of each centre is taken care of by a system manager and a system operator, both of whom are employees of the AMC. Major services offered at the civic centres are: 1. Computation and payment of property tax: The website enables self-assessment of property tax through a simple formula understandable to all, displays details of payments made in the past and of dues. Payments can be made at the civic centre or online using a credit card. 2. Issue of birth and death certificates: The database contains records of birth and deaths from the year 1981 onwards. A printed and laminated copy of the birth/death certificate can be obtained instantly for a nominal fee of Rs 25. 3. Issue and renewal of shop and establishment licence, hawker licence, hotel and restaurant licence: data pertaining to shops and establishments, hotels and restaurants is linked to the property tax database based on a unique tenement number. A citizen can approach the city centre with relevant documents to modify, renew or request approval for licences. After verification at the counter, new

Case Studies on Government to Citizen Applications in E-Government 189

4.

5. 6. 7.

licences and renewal certificates are issued instantly and handed to the applicant. Payment of motor vehicle tax: The database is integrated with that of the Regional Transport Office (RTO) thus enabling control of tax evasion. Vehicle tax payments are accepted through the online mode as well as Internet by credit card and also at the civic centres. Payment of impact fee to the Town Development Office (TDO) for regularization of constructions. Processing of applications made under the Right to Information (RTI) Act. Filing, tracking and redressal of complaints pertaining to civic amenities: Complaints pertaining to civic amenities can be filed at ward offices, civic centres or through the website since they are all connected through an intranet. Details of the complaint are directed to the relevant department automatically. Complainants can follow up on the status of their complaint through the website.

Implementation challenges Processes under the manual system were complex, non-standard across ward offices and not well-documented. Inefficiencies in the system were mainly due to the existing system of information management which indirectly encouraged bad practices. Therefore, it was felt necessary to reform the functioning of the corporation by making information easily accessible to staff as well as to citizens. Stakeholders of the system include citizens who could bribe employees to get their work done out of turn and in their favour and elect councillors who support illegal activities in order to retain their popularity among citizens, thereby ensuring their reelection. The AMC employees, who are the major stakeholders of the system, could not be held accountable for the inefficiencies and malpractices in the system. Lack of transparency in the system, complex procedures and weak supervisory control encouraged employees to be undisciplined and indifferent to their work.

190 Unlocking E-Government Potential

During project development and implementation, involvement of employees at every stage helped to develop a sense of ownership in them, and motivated them to ensure that the system was run efficiently and with greater accountability. Employees from all 42 departments of the corporation were involved with the development of the computerized system. A task team, comprising two officers from each department, was formed to prepare flow charts of manual processes being handled by the departments. These processes were then modified to reduce the number of steps involved. Software modules to handle these re-engineered processes were developed and implemented across the organization. Employees selected from the various departments were trained to work as front desk operators at the civic centres. Evaluation A client survey2 that involved structured interviews of 239 citizens who had availed services from both the civic centre and the ward office was undertaken by the Indian Institute of Management (IIM) Ahmedabad in 2006. The respondents were entirely urban, educated, employed or business people. The majority of the respondents, that is about 98 percent, preferred the computerized system over the manual system and reported a substantial improvement in the civic centre vis-à-vis the earlier manual system. An attempt was made to understand the client’s overall assessment of the application by computing a composite score on the basis of attributes covering aspects of location and accessibility, cost incurred in availing services, perception on quality of service and perception on quality of governance. The composite score thus computed was 3.4 (satisfactory) for the manual system and 4.1 (good) for the computerized system on Eight civic centres—Girdhar Nagar, Law Garden, Rakhial, Mani Nagar, Isanpur, Nava Vadaj, Saraspur and Sardar Baug—were selected for the study on the basis of their activity levels. The number of respondents from each of these locations was about 30. Data was obtained using counterfactuals so that the difference between pre-project service delivery and post-project service delivery could be understood on the dimensions of cost of accessing the service, quality of service and quality of governance. 2

Case Studies on Government to Citizen Applications in E-Government 191

a five-point scale. Statistical tests applied to assess the statistical significance of this difference of 0.7 show that the scores obtained for the civic centre are significantly higher than those for the ward office. Table 9.5 presents the improvements of the civic centre project over the manual system as reported by the survey. Table 9.5: Comparison of civic centre with the departmental system Number of trips Waiting time (minutes) Elapsed time (days) Error rate (%) Quality of service (5-point scale) Proportion paying bribe (%) Quality of governance (5-point scale) Composite score (5-point scale)

Manual

Computerized

Improvement

2.7 29.3 9.8 1.7 3.8

2.1 14.6 5.3 1.3 4.5

0.7 14.7 4.5 0.4 0.7

3.4

0.8

2.5

3.7

4.5

0.7

3.4

4.1

0.8

Source: Bhatnagar 2007.

In terms of actual costs incurred in availing service, time spent by a client waiting at the service centre has on an average reduced by half from 29.3 to 14.6 minutes in the case of the civic centre. Similarly, the elapsed time for availing services has reduced by half from 10 days to five days. This improvement in service level can be seen across all key services provided by the civic centre (see Table 9.6). There has been a perceptible improvement of 0.75 points on a five-point scale in the quality of governance and a similar improvement of 0.7 points in service quality. On the whole, the project can be considered to be moderately successful in terms of its impact on clients. Costs and benefits The entire initial investment for the project had been provided by the Government of Gujarat which had made a provision of

192 Unlocking E-Government Potential Table 9.6: Elapsed time (in days) for various services Service

Ward office

Civic centre

Computation and payment of property tax Issue of birth and death certificates

5.6 4.7

1.6 2.2

Issue and renewal of licences for shops and establishments Registration of birth

8.2

3.0

2.5

0.5

Source: Bhatnagar 2007.

Rs 50 million for e-governance during the year 2002–03. Gujarat Informatics Limited (GIL), which is the nodal agency for IT development in the state, initiated the project and provided a grant of Rs 10 million for the software. The annual budget of the AMC provides for any additional funding that is required. The total project cost (including computer hardware, communication equipment and software development but excluding civil works) was Rs 250 million. The hardware and networking costs for the system was Rs 25 million while the software cost was Rs 6 million. The cost of establishing a civic centre works out to Rs 2– 2.5 million. This includes the cost of one server, 8–10 computer nodes and other infrastructure. The annual maintenance cost of a centre is approximately Rs 1.2 million. Support and maintenance of hardware, software and networking is provided by the total solution provider, M/s Microtech Systems Limited, on the basis of a service contract that is renewed every three years. There has been a growth of 26 percent in transaction volumes since the system was computerized. In 2006-07 the number of transactions was 0.69 million. The revenue from transaction fee grew by 16.77 percent to Rs 61.09 million in 2006–07. The revenue from tax grew by 36.86 percent over four years to Rs 2,285.53 million in 2006–07 (see Table 9.7). Manual reconciliation of revenue collection used to be a tedious and timeconsuming task and led the AMC to lose about Rs 100 million per annum. The automated system facilitates quicker reconciliation by enabling easy access to information to assess real time demand and collection, thus reducing tax evasion and increasing the collection. Facility for online payment through the payment

Case Studies on Government to Citizen Applications in E-Government 193

gateway of local banks has resulted in cost savings of at least Rs 400 million per annum. The daily validation of cheques and payments has reduced losses that were earlier incurred by the corporation due to a lack of validation. Table 9.7: Transaction volumes and revenue collection from civic centres Service Number of transactions Revenue from fees (Rs million) Revenue from taxes (Rs million)

Sep 02– Mar 03

2003– 04

2004– 05

2005– 06

271,094

621,296

679,194

713,113

32.86

125.20

919.57

53.32

2006– 07

2007– 08

686,283 970,698

61.09

141.48

651.36 1,366.34 1,746.31 1,974.26 2,285.53 2,687.76

Source: AMC 2005.

In addition to economic benefits realized by the AMC, computerization has greatly enhanced the ability of the agency to comply with the citizen’s charter and to provide services to citizens in an efficient and effective manner. The capacity to handle complaints pertaining to civic amenities has also been enhanced significantly since computerization, as can be seen from the data given in Table 9.8. Provision of self-assessment which allows citizens to compute taxes applicable on property, thus making calculations transparent has brought down the number of litigations and disputes pertaining to property tax to almost nil (see Table 9.9 and Table 9.10) (The Case Study is based on IIMA 2004a, Panneervel 2005, Ray and Rao 2004, Tripathy and Mahajan 2004).

VOICE—Computerized Service Centres for Municipal Services, Andhra Pradesh The Vijayawada Online Information Centre (VOICE) in Andhra Pradesh delivers municipal services such as building approvals

194 Unlocking E-Government Potential Table 9.8: Number of complaints received, addressed and pending in ward offices and civic centres Year Number of complaints received Ward offices Civic centres Total Number of complaints addressed Ward offices Civic centres Total Number of complaints pending Ward offices Civic centres

2002–03

2003–04

2004–05

2005–06

42,767

73,168

41,565

16,554

31,647 74,414

53,070 126,238

56,489 98,054

80,906 97,460

42,559 31,642 74,201

71,842 53,070 124,912

40,817 56,489 97,306

15,382 80,625 96,007

208 5

1,326 0

748 0

1,172 281

213

1,326

748

1,453

Total Source: AMC 2005.

Table 9.9: Reduction in litigations pertaining to property tax Year

1999–00

2000–01

2001–02

2003–04

2004–05

Cases

42,378

38,500

Nil

4

5

Source: AMC 2005. Table 9.10: Reduction in number of tax objections Year Objections

2000–01

2001–02

2002–03

2003–04

55,098

895

238

158

Source: AMC 2005.

and birth and death certificates. It also handles the collection of property, water and sewerage taxes. With funding from the Ministry of Information Technology (48 percent), the Andhra Pradesh state government (32 percent) and the municipality (20 percent), implementation of the VOICE project was initiated in June 1998 and completed in December 1999. Citizens can go to any of the five kiosks set up in different parts of the city. Each kiosk has two terminals with multilingual

Case Studies on Government to Citizen Applications in E-Government 195

software. CMC Limited, a software company, developed the entire application as a product, which can be customized for other municipal governments in India. The web portal of Vijayawada Municipal Corporation (VMC) can also be used to access any kind of information, register complaints, search for birth and death records, calculate the property tax zone-wise and also view the list of top tax payers and defaulters, bid for tenders and download various forms. The Municipal Corporation approves building plans and sub-division of plots within the city limits. After submitting an application to the city civic centre, one can verify the status of its disposal. Telephonic services is another mode of obtaining services wherein the citizen has to dial a number to connect to the server after which the television screen acts like a computer monitor and the phone as a keypad helping the citizen to browse effectively. Vijayawada Municipal Corporation is the first ISO 9001 certified urban local body in the entire country. The departments of town planning, taxation, public health, estate and engineering have been automated. Citizens can see municipal budget allocations online. The cost of the project paid to the developer was Rs 18.7 million (USD 0.4 million), of which 48 percent was spent on hardware and system software and 52 percent on application development. In the first year, the system issued 15,000 birth/death certificates, 2,100 building approvals and 224,000 demand notices for taxes. According to usage statistics till February 2003, nearly 20,000 trade licences had been issued, collecting a licence fee of Rs 9 million. All commercial complexes have been rationalized by issuing photo identity cards and passbooks and by clearing all mutations, lease renewals and arrears till date. This has ensured effective monitoring of the status of the large number of commercial establishments owned by the Corporation, which fetches the VMC nearly Rs 50 million in annual revenues. The revenue collected through property tax is 270 million; revenue through water charges is 50 million. Tax collection in the year increased to Rs 520 million from Rs 450 million. Citizens are paying tax through e-Seva and citizen charter centres.

196 Unlocking E-Government Potential

Vijayawada Municipal Corporation as part of its e-governance programme has also established a 24-hour call centre that can be reached by dialling 103. About 19,200 grievances were redressed in the last one year. This application is an example of a partnership between central and state government agencies, the municipal government and a software development company. Contrary to the pattern in many government departments where new software applications have been custom developed in-house, this product was developed by a private company. VMC, as part of technology and process upgradation for better utilization of the available resources, upkeep of records and transparency in accounts has switched over to Accrual Based Double Entry Accounting System from Cash Based System with effect from 1 April 2007. The accrual basis of accounting helps in determination of correct income and expenditure of the municipal bodies. (This section is premised on Bhatnagar and Kumar 2001.)

Citizen Facilitation Centres of Kalyan–Dombivli Municipal Corporation (KDMC) Application context Kalyan–Dombivli Municipal Corporation (Wikipedia)3 serves a citizenry of about 1.1 million people and offers about 90 public utility services including property tax payment, new water connections, issue of various licences, building permission certificates, birth and death certificates and submission of tenders. The corporation is governed by the Bombay Provincial Municipal Corporation Act of 1949. Prior to the implementation of e-governance at KDMC, its functioning was that of a typical government office in India. Red tape, forcing citizens to run from pillar-to-post for services was common. For the working class people, availing any service from KDMC meant inconvenience, Kalyan–Dombivli is a municipal corporation in the Thane district of the state of Maharashtra, India. A municipal corporation was formed in 1982 to administer the twin townships of Kalyan and Dombivali. The municipal corporation has a population 1,193,266 (Census 2001).

3

Case Studies on Government to Citizen Applications in E-Government 197

loss of their working days and indifference on the part of the KDMC staff. This resulted in a high level of non-payment of dues like water tax and property tax, and encouraged use of middlemen to conduct illegal transactions. To change its poor image and bring about transparency, accountability and effectiveness in its functioning were the real challenges for KDMC. A new approach The Citizen Facilitation Centres by the KDMC were set up where citizens interact with the corporation staff in a citizen-friendly environment. This has led to the elimination of middlemen from the system, fewer illegal constructions and water connections, fewer defaulters and more revenue for the corporation. The project was carried out under the guidance of experts from institutions like IIT, Veermata Jijabai Technological Institute (VJTI), National Centre for Software Technology (NCST) and Tata Institute of Fundamental Research (TIFR). The entire e-government solution was provided by a Mumbai-based private firm. The test implementation of the project started in January 2002. The entire project was planned in a holistic manner and executed over two phases—the first phase consisted of computerization of all citizen-centric interactions, re-engineering the existing processes and back-end integration required to support the citizen-centric model, while the second phase consisted of e-enabling of all other back-end departmental activities. At present, there are a total of six CFCs, one in each ward office of the KDMC. CFCs are located at strategic locations in Kalyan and Dombivli. All CFCs have been connected to the central servers at Kalyan by fibre optic cables, Radio Frequency (RF) links or leased lines and offer over 90 corporation services across the counters. All the departments at KDMC are integrated by a Wide Area Network (WAN) of around 240 computers. CFCs are run by corporation employees who have undergone personality development sessions for improvement in their interactions with citizens. The centres have been designed aesthetically to create a pleasant environment for the corporation’s functioning. The back-end integration of all the departments with CFCs ensures

198 Unlocking E-Government Potential

that citizens’ applications and complaints are immediately available to the concerned officer on his PC. Due to efficient software systems basic services such as water bill payments, which typically took an hour to process, take a few minutes. Issuing a birth certificate, which required a minimum of 10 days, now takes 15 minutes. In addition, processes that involve physical verification on site have built-in mechanisms that automatically alert supervisors when site visits have been pending for more than two days. The KDMC web portal (http://www.kdmc.gov.in/kdmc/) was launched on August 30, 2002. The services provided by the portal include complaint lodging and tracking, monitoring application status, downloading forms for all services, and application and issue of birth and death certificates. Users are provided a step-by-step guide through the application process. In addition, a home-delivery option for customers provides for their convenience and saves valuable time. Earlier, citizens used to face many difficulties to lodge a grievance related to civic amenities and had to wait indefinitely for them to be resolved as there were no time-bound solutions available. Now, a citizen can walk into (or make a telephone call or visit the website) any of the six CFCs and register his grievance in the system. Dual Monitor Systems at the help desk ensure that the complaint is registered correctly. Citizens can track their complaints at the CFC through the telephone help-line or through the website. A double entry system payment gateway was introduced in September 2005 to facilitate payment of taxes through the KDMC portal. Implementation challenges Kalyan–Dombivli Municipal Corporation appointed a High Power Committee (HPC) comprising the commissioner and all departmental heads to monitor project activities and to ensure that deadlines were met. It was also decided to make the entire project transparent to non-officials and general public. This feedback helped KDMC in ironing out the lacunas and improving the effectiveness of the system. Several change management exercises like training for

Case Studies on Government to Citizen Applications in E-Government 199

creating IT awareness amongst officers, personality development for the CFC front desk staff and presentations on modules of the system were given to all concerned departmental staff. The total investment on projects undertaken by the IT department at KDMC has been around Rs 60 million while increase in tax revenue that can be attributed to ICT deployment is over Rs 120 million. Following its 2002 implementation, KDMC set water and tax dues collection target of USD 1.33 million for November. At the end of the month, KDMC exceeded its goal, collecting USD 1.88 million. A grant of Rs 20 million was given to KDMC by the state government towards the Intellectual Property Rights (IPR) of the application software for this replication. In addition, the project has earned Rs 2.8 million against IPR for replication of the project in other municipal corporations. KDMC has entered into an agreement with the Maharashtra State Electricity Board (MSEB) to use these CFCs as bill payment centres. Enhancements envisaged in the near future include setting up of kiosks at convenient locations like railway stations and markets to offer citizens easy access to services available through the website and allotment of a unique citizen identity to every citizen. Till date, KDMC has six CFCs and 90 CFC services with 1,264,569 transactions having been delivered. A total of 58,506 types of services have been rendered, 101,064 water and tax bills collected, and 28,130 complaints redressed. Approximately, 400–500 citizens apply for various services and 50–60 citizens lodge complaints every day.

Key Lessons from the Experience of Ahmedabad, Vijaywada and Kalyan–Dombivli Each application seems to have been successful in delivering benefits to the citizens. The municipalities have also gained on account of increased revenues from taxes. In AMC the growth in taxes is on account of a growing base, better compliance and accurate valuation. More important is the fact that computerization

200 Unlocking E-Government Potential

appears to have allowed the agencies to cope with high growth in a number of transactions. The applications across the three cities in three different states have a great deal of commonality in terms of services and delivery modes. It should therefore be possible for private vendors to develop a packaged e-government solution for different sizes of municipalities. Partnership with the private sector seems to have worked well in all the three examples. However, the application has not been replicated in other cities in the three respective states from which the examples are drawn. There is a need for a mechanism at the state level to promote replication.

9.4 E-Seva—Electronic Delivery of Citizen Services in Andhra Pradesh Application Context Citizens and businesses need to deal with several government agencies and departments in making routine payments for utilities, obtaining certificates and licences and for obtaining services. Most payment counters located within the premises of the agencies that raise the bill open for a few hours in the day and are closed on weekends and public holidays. Consumers need to go to a specific office to pay the bill. Even when such counters were computerized there are large queues on certain days of the month.

A New Approach In 1999, the AP government launched a pilot project in one location in Hyderabad called Twin Cities Network Services Project (TWINS) to provide online delivery of eight services under one roof. Later, more centres were opened in partnership with two private sector companies which have invested in application software development, computer equipment and communication

Case Studies on Government to Citizen Applications in E-Government 201

lines. Each centre has 8–10 counters operated by private contract staff. Counters have a printer, a bar code reader and a computer loaded with menu-driven software that can process multiple types of transactions by accessing a central web server which in turn communicates with departmental servers. Departments access and update their databases when a transaction is performed at a counter in the service centre. The project was renamed e-Seva when the AP government decided to extend similar services to major towns and municipalities of the state. There are 43 e-Seva centres with 350 service counters spread across Secunderabad and Hyderabad. Each centre operates from 8:00 am to 8:00 pm every day and from 9.00 am to 3.00 pm on Sundays and holidays. Services of 13 state and local government agencies, three central government agencies and nine private sector organizations are on offer. The e-Seva centres have evolved into a one-stop-shop for more than 130 government-to-consumer (G2C) and business-to-consumer (B2C) services including payment of utility bills, reservations of train tickets, getting birth and death certificates, vehicle permits, driving licences, transport department services, sale and receipt of passport applications, telephone connections, collection of small savings, ATM (cash withdrawal and deposits and issue of statement of accounts), mutual funds (collection of applications and transfer of shares), receipt of complaints or requests in connection with citizen services, cell phone bill payments, etc. Before the launch of e-Seva, citizens had to visit many offices to avail these services. The list of services offered at these centres is provided in Table 9.11. E-Seva has a three-tier application architecture built on a client-server model relying on web browsers at the front-end, a relational database at the back-end and a web application server and reliable communication lines in the middle. A combination of leased lines, ISDN lines and asynchronous lines has been established to connect the e-Seva data centre to all departmental servers and to all the e-Seva service centres. The transactions are done on a real-time basis. Figure 9.1 offers a schematic view of the entire application.

202 Unlocking E-Government Potential Table 9.11: Department-wise list of services offered through e-Seva, Hyderabad S. No.

Department

Service

G2C services (106) 1. 2.

APCPDCL HMWS and SB

3.

Municipal services

4.

BSNL

5. 6.

APSRTC RPO

7.

CTD

8. 9.

R&S RTA

10. 11.

Income Tax Education

Payment of electricity bills Payment of water bill Reservation of water tanker Payment of property tax of MCH Registration of birth certificates Issue of birth certificates Registration of death certificates Issue of death certificates Renewal of trade licences Renewal of labour licences Issue of prepaid parking tickets Payment of property tax of commercial establishments Payment of telephone bills Sale of ITC cards Reservation of APSRTC tickets Sale of passport applications Filing of passport applications Filing of A1/A2/AA9 returns of APGST Filing of C6 returns of APCST Payment of RD cess Payment of entertainment tax Maha bill Sale of non-judicial stamps Payment of vehicle tax for non-transport vehicles Payment of quarterly tax for transport vehicles Filing of IT returns Payment of examination fee of board of intermediate colleges (Table 9.11 contd.)

Case Studies on Government to Citizen Applications in E-Government 203 (Table 9.11 contd.) S. No.

Department

12.

APPSC

13.

Police

Service Sale of EAMCET applications Results of intermediate final examinations Sale of applications for APPSC information Results of group II recruitment Issue of duplicate hall tickets for group I examination 67 services like VISA fee, gun licences renewal fee, etc. Sale of tickets for games/events Sale of HUDA plan books

14. SAAP 15. HUDA B2C services (4) 1. Tata Teleservices Ltd. Payment of TTL telephone bills 2. Reliance Filing of applications for Reliance CDMA mobile phones 3. Airtel Sale of magic cards Sale of new kits of Airtel mobile phones Source: Government of Andhra Pradesh (2004).

Evolution of E-Seva Over Four Years (1999–2004) E-Seva has evolved in many ways since its implementation. Services from government departments and private service providers have been added to increase transaction volume. Service centres have been added to enhance convenience and increase volumes. The number of monthly transactions in e-Seva centres in Hyderabad has grown steadily to reach 1.8 million in July 2006. Aggregate data for transactions in 2004 indicates the following breakup for major utilities: electricity bills 51 percent; water bills 6.8 percent and BSNL 7.2 percent. E-Seva now provides many alternate channels through which citizens can access e-Seva services. First, the number of e-Seva centres was gradually expanded from 8 to the current level of 43. In a recent development, e-Seva counters have also been established in private and state run banks where a limited complement of

204 Unlocking E-Government Potential Figure 9.1: Application architecture of e-Seva

Architecture

3rd Tier Leased Line Sn

S1 C e n t r a l S i t e

Departmental Servers

(Govt. Depart.)

ISDN Leased

INTERNET

Leased Line

Router Pool

1Server

LAN1

2nd Tier

LAN3

LAN2 Web Apln Server

NYS

Web Server Leased Line

ICSC locations Router

Telecom Exchange

ISDN Card printer

Leased Line

ISDN

NB Servers 1st Tier (ICSC Locations)

Internet Kiosk Router

Counter Terminals With Printers KDSK

KDSK

Source: Author.

e-Seva services can be availed of. The banks find it attractive to host e-Seva counters because every citizen who comes for e-Seva services is a potential bank customer. Besides e-Seva centres, citizens can directly access e-Seva services through the Andhra Pradesh Online Portal that has been created with the help of another private sector partner. To avail of such services, citizens need to register at the portal and provide some minimal information so that their access can be authenticated. The Andhra Pradesh Online has also licenced the ‘Andhra Pradesh Online e-Seva Kiosks’ run by private entrepreneurs where citizens can avail of e-Seva services in an assisted mode. These kiosks permit different ways of making payments, whereas direct access of e-Seva services from home requires a payment through direct bank transfer. Revenues have been enhanced by selling space for advertisements. There has been an increasing use of private contract staff at the centres.

Case Studies on Government to Citizen Applications in E-Government 205

After the success of e-Seva in the twin cities of Hyderabad and Secunderabad, the AP government extended the facility to all the 117 municipalities in the state. For the expansion of e-Seva, nearly 230 centres were opened in the state covering 85 percent of AP’s population of around 75 million. These centres are connected to a district level data centre where the necessary databases of utility companies are maintained. Computerization within the municipal corporation was done on a standardized pattern through funding provided by the state government and various donor agencies. Figure 9.2 provides an analysis of the aggregate number of monthly transactions for centres in the twin cities of Hyderabad and Secunderabad as well as in district towns. The aggregate monthly collection from all the centres is of the order of Rs 4–5 billion. E-Seva has evolved in another direction—a call centre facility (Parishkaram) has been created wherein a citizen from any part of AP can dial a toll free number for accessing information and registering grievances. Information pertaining to major government schemes, education related news (admissions, fees, dates of reopening, counselling and results) could be accessed. Citizens can also register grievances pertaining to municipal services and welfare departments. An important service is the advice provided to farmers by agriculture scientists on seeds, fertilizers, pesticides,

Number of Transactions (in Thousand)

Figure 9.2: Transaction volumes of e-Seva (TWINS and districts) over five years Analysis of e-Seva’s Transactions

25,000

19,200.00

20,000 16,005.82

17,816.60

15,000 13,742.24 10,062.60

10,000 5,000

4,487.65 439.30

289.09 0 2001

2002

2003

2004

Year TWINS

Source: Bhatnagar 2007.

Districts

2005

206 Unlocking E-Government Potential

cropping pattern, rainfall, water level in the reservoirs, etc. The call centre also provides medical advice through government doctors specially deputed to the call centre for this purpose.

Potential for Further Re-Engineering Time to process transactions at an e-Seva counter can be further speeded up. Currently all departments are charged the same rate per transaction for a particular type of transaction. However, an examination of the number of keystroke entries per transaction can pinpoint instances where redundant data is being inputted. With thousands of transaction taking place daily, a fraction of a second saved on a single transaction can greatly improve the overall efficiency of the system and reduce the waiting time for the citizen at the service centres. Instead of charging a flat rate from all the departments, the possibility of a rate dependent on transaction time can be explored to incentivize the departments to re-engineer their processes. Throughput per counter can be increased through a combination of: 1. The unique transaction/customer identification number on each bill can be bar coded, so that time taken for manual entry and errors is eliminated. 2. In nearly 95 percent of all cases, bills are fully settled, that is, the amount of bill being paid is equal to the amount printed on the bill as payable. On the data entry screen, the amount column can therefore be populated automatically (by default) with the payable amount, minimizing data entry effort. In the remaining cases, the amount field would require editing by counter staff. Payments above a certain amount (say Rs 1,000) may not be accepted in cash so that the time to count cash can be reduced. Given that the bills are despatched on the same date, traffic is usually higher immediately after the issuing of the bills or around

Case Studies on Government to Citizen Applications in E-Government 207

the due date. Some time slots, before and after office hours, are more popular. This bunching results in long wait times. Ideally, a citizen should not be required to visit an Integrated Citizen Service Centre (ICSC) more than once, in a given period of time, say once in a month. This would mean that all the departments/ utility providers should synchronize their billing cycles and bill due dates, so that the citizens, if they so desire, are able to pay all their bills in one go. Currently, a citizen’s address or ownership of an entity is stored in databases of many different agencies. If there is a change in the address of a citizen or a change in the ownership of a house, it needs to be reflected in different databases. For each agency, a separate application is required for change of address. If a unique identifier can be developed for urban properties and citizens, a single application for change could suffice. The quality of maintenance of equipment at a few centres is an area of concern. Capacity of servers and communication bandwidth has not kept pace with the growth in transaction volume, resulting in slow response in many centres. Even though the waiting areas and the chairs within the waiting halls represent a vast improvement over the departmental counters where citizens had to transact services prior to e-Seva, there is considerable scope for providing further comfort to citizens at e-Seva centres.

Implementation Model—A Public–Private Partnership Given that scaling up of e-Seva to cover all towns and villages of AP would need financial resources, technical capability and large project management skills, a public–private partnership (PPP) model was evolved for implementation. For its expansion beyond Hyderabad, the state was divided into six zones. Tenders were called for each of the six zones to seek a partner who would invest in infrastructure using the software to be provided by the existing partner at Hyderabad. Three partners were identified through a bidding process. Nearly

208 Unlocking E-Government Potential

1.8 million transactions are being processed at 230 centres in municipal towns. The project was implemented on the basis of a Build-OwnOperate-and-Transfer (BOOT) model wherein the technology partners provided the necessary hardware, software, connectivity and maintenance for the centres. The same equipment will be transferred to government after the completion of contract period, that is, five years. Activities like framing the contract, inviting tenders, designating responsibilities to the partners and evaluating bids were undertaken by AP Technologies Services Limited (APTS), a Government of Andhra Pradesh enterprise established in 1986 to provide consultancy services to government and non-governmental bodies in the state of AP. Revenue model There are three distinct streams of revenue for the e-Seva centres which are then shared between different partners that operate the service. 1. Transaction-based service charges collected from each agency (example, utility companies and municipal corporations) that is offering a service or collecting bills/payments from citizens and businesses. For example, the utility company for every bill collected on its behalf pays a fee of Rs 5. Citizens do not pay any extra charge for bill payments at e-Seva centres. 2. A service fee collected from citizens for certain types of transactions. 3. Revenues from advertisers whose advertisements are carried on the Internet and on the receipts issued to citizens. The revenues are shared between partners. In case of the centres in Hyderabad, the private partner was reimbursed Rs 4.75 per transaction in the first 18 months and Rs 3.95 thereafter. If the number of transactions exceeded 0.36 million, the reimbursement was to be Rs 3.95 irrespective of the months elapsed. All banks

Case Studies on Government to Citizen Applications in E-Government 209

offering e-Seva services are reimbursed Rs 1.75 per transaction (out of the fee payable to the private partner) enabling them to cover the cost of infrastructure for an e-Seva counter. In the case of municipal towns, the reimbursement has been fixed based on competitive bidding for the six zones. It varies between Rs 6.4 and Rs 8.5 per transaction for the six zones at low volumes and Rs 5.1 and 5.95 when transactions exceed a pre-defined cut off.

Evaluation: Measuring the Success of E-Seva There have been very few formal evaluations of e-Seva by an independent agency. The results of one such assessment based on a field survey conducted in 2002 by the Administrative Staff College of India (ASCI 2002) indicate that many of the expected benefits are being realized. Eighty-four percent of respondents indicated that e-Seva counters provided faster service than traditional department counters. An overwhelming majority of users (97 percent) agreed that e-Seva staff were courteous. Convenience of location and faster service were cited as the main reason for use of e-Seva. Only a few respondents (about 5 percent) experienced problems when they paid their bills at e-Seva (example, payments not properly recorded and reflected in the subsequent bills). Most of the users (80 percent) transacted at e-Seva counters on their own behalf. The most popular service was payment of electricity bills (75 percent of users). Most of the users (87 percent) availed of only one or two of the 30-odd available services at e-Seva and very few users (13 percent) availed of more than two services. Most of the users (70 percent) pay the bills separately. An overwhelming majority of users (97 percent) are literate. According to a more detailed assessment carried out in 2006, users of e-Seva reported that 96.84 percent of respondents preferred the e-Seva system over the departmental systems. This preference was based on concrete benefits reported by the respondents. E-Seva has lowered the travel costs by Rs 9.3 per transaction for its users. Waiting time in e-Seva centres has been halved in comparison to agency counters from 32.9 minutes

210 Unlocking E-Government Potential

to 14.6 minutes. Significant improvement of 0.79 points on a five-point scale was reported in the quality of governance and an improvement of 0.94 points was reported in service quality. The composite score has moved from 3.39 (slightly better than satisfactory) to 4.66 (close to very good). There has been a growth of 88 percent in transaction volumes in the last three years since the system was computerized indicating a degree of success. This growth was achieved by addition of new centres (currently 43) and addition of new services (about 130 currently). There has been a continuous shift of customers from departmental counters to the e-Seva counters.4 In 2005 the number of transactions was 37.02 million. Another indicator of success is the increasing number of service providers that are participating in e-Seva. Private sector banks are keen to partner in providing additional channels.5 The popularity of e-Seva can also be seen from the requests by legislators and citizen associations for opening centres in specific areas. E-Seva has also received various recognitions and awards.6

Key Success Factors Strong and visible political support from the chief minister has been the most important factor in the success of e-Seva. E-Seva was the chief minister’s idea sparked by a visit to Singapore where he became familiar with the role of the city state’s portal in delivering services on-line. A civil servant hand-picked by the The electricity department indicated that nearly 80 out of 120 (60 percent) collection counters were closed in Hyderabad during the last four years of e-Seva operation. 5 For instance, the Industrial Credit and Investment Corporation of India (ICICI), Housing Development Finance Corporation Project (HDFC), Global Trust Bank (GTB), Unit Trust of India (UTI) are some of the banks with whom e-Seva has tied up to facilitate banking services. 6 E-Seva, the integrated citizen services project, having centres across the state, bagged the Commonwealth Association for Public Administration (CAPAM) innovation award that promotes innovations in government reforms in the commonwealth countries. 4

Case Studies on Government to Citizen Applications in E-Government 211

Chief Minister implemented the idea. Strong political support helped e-Seva persuade key departments from the state and central governments to participate. Funds for the pilot were made available easily and in one go. The Chief Minister reviewed the progress every week in the first year, forcing recalcitrant agencies to cooperate. Departments, for example, were persuaded to close their own counters and, in the case of the electricity utility, pay a transaction fee to e-Seva for bills collected on its behalf. The e-Seva directorate could operate with flexibility because of political support. The informal relationship with private partners has led to better coordination. However, the importance of visible political support can sometimes be exaggerated. Whereas the political support of the Chief Minister was critical to the success of e-Seva, in the case of Maharashtra, which is implementing a similar project, the same level of support has not been necessary. First time implementation needs much greater support because of the potential risks of a new project. Once the success of a concept has been demonstrated, the task of replication is easier. There are other projects like CARD-property registration in AP that have now been replicated in Maharashtra and Karnataka in a significantly modified manner without a strong and visible political support. Use of a PPP model and informal relationship with private partners has contributed to effective coordination. Robust technical design and reasonable IT infrastructure has also contributed to the success of the project. Application software has been able to assimilate many different channels of delivery (ATM and the Internet) and different types of services. There has been no major problem in connecting new e-Seva centres located in different parts of Hyderabad and e-Seva counters in Banks to the existing network. The error rate as a result of wrong postings is also very low7 indicating that system design is robust. One of the difficulties encountered by many countries in implementing e-government is the complexity of coordination across government departments that are reluctant to share information and resources. The effectiveness with which the e-Seva 7

Only a few hundred errors are reported out of a million transactions.

212 Unlocking E-Government Potential

directorate has played the coordination role is also responsible for the success of e-Seva. The e-Seva Directorate: constructing an experienced management team in a flexible organization A team of dedicated professionals implemented the project. A civil servant with expertise in e-governance projects was chosen to implement the pilot. In addition, a Directorate of e-Seva was established within the IT department to supervise rolling-out and stabilizing the initiative. The Directorate is a lean organization with a flat hierarchy. It operates out of an e-Seva centre in Hyderabad rather than the Secretariat to emphasize its closeness to clients and relative freedom from bureaucracy. The Directorate has a variety of functions ranging from coordinating with e-Seva’s partners, monitoring service-level agreements, business development, supervising centres to coordinating the relationship with departments and utility companies. The Directorate has had five directors in four years from the Indian Administrative Service (IAS), a fact that would normally arouse concern, but for the longer stability of tenure enjoyed by the IT Secretary. In addition, the Directorate was fortunate to possess a highly competent second rung of managers with adequate training and technical qualifications—four Deputy and Assistant Directors— who have been in position for four years each and can carry out the Directorate’s core functions without much supervision by the Director.

Future Challenges: Sustainability and Scalability in Rural Areas Sustainability of current operations Sustainability could be defined as the continued use of a system over long periods. It is interesting that a change in government at the centre and in AP, in 2004, did not affect the commitment of policymakers to increasing the use of ICTs for service delivery. The growing popularity of e-Seva amongst the urban population

Case Studies on Government to Citizen Applications in E-Government 213 Figure 9.3: Role of e-Seva Directorate

IT department Coordination with service provides, for example, utility companies

Coordination with partners, for example, CMS, TCS, banks

IT Strategic directions: new channels of delivery

Supervision of centres

e-Seva Directorate

Monitoring of service level agreement with private partners

Marketing awareness, new users

Settlement of receipts with service providers, partners, e-Seva

Business development, new services and providers

Source: Author.

in Hyderabad is the main reason why the new government is supporting the expansion of e-Seva. Another factor that usually makes projects unsustainable is tenurial instability of project leaders. In e-Seva there have been frequent changes in leadership. The e-Seva Directorate has had five directors in four years. However, in a highly visible application, such as e-Seva, which enjoyed the support of the Chief Minister and the state’s long-time Information Technology Secretary, tenurial instability in the Directorate proved not to be an impediment to the success of the project. Each director has contributed in a different manner, attempting to leave a distinctive mark. For example, the second director contributed to the growth of centres, while the third focused on marketing and community

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involvement to grow traffic. The fourth director strengthened monitoring and focused on the performance of private partners, while the fifth intends to focus on internal systems and rural expansion in tune with the new political direction. The stability of the second rung of administrators is another reason why frequent transfers of directors were not disruptive in e-Seva.8 Perhaps, tenurial stability is more important when the civil servant is the sole driver of the project. Sustainability primarily depends on the economic viability of the project for all the partnering agencies. E-Seva needs to be viable for the private operators who have invested in software development, hardware and networking infrastructure. E-Seva has to be viable for the government, which invests in building e-Seva centres. The utility companies must feel that the payment per transaction made to e-Seva is less than the costs they would need to incur in collecting bills on their own. For the first phase covering Hyderabad, so far 70 million transactions of all types have been processed cumulatively generating revenue of nearly Rs 250 million for the partner. Partner’s investment in Hyderabad is approximately Rs 80 million and their annual operating expenses are in the range of Rs 30 million for peak transaction volumes. On the basis of these gross calculations, private partners have recovered their investments and operating expenses in five years from the inception of the project. In addition, the private partners own the application software that can be used in other geographies.9 Nearly 50 percent of this amount was on building and interiors. The other 50 percent was borne by the private sector partners. The yearly operating expense for the year 2005 was estimated to be Rs 168.9 million. The revenue from transaction fee has grown by 120.15 percent to 203.59 million in 2005–06. The numbers of customers of the electricity company are large and bills need to be paid every month. So far 31.6 million transactions of all types have been processed cumulatively Most of the current staff at mid level (3–4 deputy directors/assistant directors) has been with e-Seva Directorate for the last four years. 9 Government is a joint owner with a small share of the intellectual property. 8

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generating revenue of nearly Rs 130 million for the partner. Private partners’ revenue in the next two years is likely to be Rs 130 million at current levels of activity (1.6 million transactions per month). The partners made a total investment of Rs 200 million10 and their annual operating expenses are in the range of Rs 15 million11 for peak transaction volumes. On the basis of these gross calculations, private partners should recover their investments and operating expenses over the life of the project. In addition, the private partners own the application software that can be used in other geographies.12 The second phase of e-Seva covering 200 districts should also become economically viable. In a typical district with five centres, the investment by the private operator in equipment is approximately Rs 3.5 million.13 Annual operating expense for each of the five centres is 1 million rupees.14 Currently 25,000 transactions are being processed per month generating revenue of Rs 2 million per year. Therefore, the private operator is likely to recover the investment and operating expenses in about four years at current volumes. In fact the volumes are also likely to grow, enhancing the profitability of the project. In rural areas, each kiosk will have to invest about Rs 100,000 and incur an operational expense of Rs 60,000 per year. Presuming a user fee of Rs 10 per transaction, at least 8,000 transactions will have to be processed in a year to break even within two years. It would be difficult to generate a demand for 8,000 fee-paying Investments of Rs 70 million in data centre, Rs 20 million in equipment at 43 service centres, Rs 30 million in networking equipment, Rs 10 million in miscellaneous equipments and Rs 70 million in software development. These estimates are based on discussions with the partners and Mr. Satyanarayana. 11 Nearly 40 people are employed for the operations. Other expenses include rentals for communication lines, electricity, maintenance of equipment and stationery. 12 Government is a joint owner with a small share of the intellectual property. 13 Investments in a web server, database server, back up server and router at the data centre and five PCs, printers and miscellaneous equipment at the centres are made. 14 Operating expenses cover operator’s salaries (Rs 2500 pm), electricity, rentals for communication lines and stationery. 10

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transactions in many rural areas, making the viability of a rural kiosk most difficult to attain. For the government, which had to invest in real estate for the expansion programme, operation may not become viable at current volumes of about 200 transactions per day. Government has invested Rs 1.4 million in building and furniture of each e-Seva centre in a municipality. To recover the investment over six years, nearly 700 transactions have to be processed per centre per day.15 Scalability in rural areas In the next phase, coverage of e-Seva is being expanded to rural areas. Given the rural orientation of the new government that came to power in mid 2004, this expansion has acquired a sense of urgency. One thousand new rural kiosks known as Rural Service Delivery Points (RSDPs) have already been opened. These kiosks owned by private entrepreneurs will provide e-Seva services through an Internet connection to the Andhra Pradesh Online portal. The services include bill payments, information, download of forms and telemedicine. The entire effort is being orchestrated by the e-Seva directorate and district collectors. The existing basket of e-Seva services is not likely to generate transaction volumes that are needed to make an e-Seva kiosk viable in rural areas because of the sparse nature of habitation in rural areas. Rural areas need multi-function access points (kiosks) which can deliver a large basket of services that appeal to different segments of rural population. Some government services, for which citizens can pay a user fee for electronic delivery (for example, land titles and other certificates), need to be included in the basket. It is too early to judge the success of the expansion of e-Seva in rural areas which is being implemented by government agencies. The idea of using a private network orchestrator like Dhrishtee, e-choupal or N-logue has not been accepted. Often, Figures are taken from a brief note on e-Seva in Medak district. The revenue for government is assumed at Re 1 per transaction, as is the case in urban areas. 15

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the government is the monopoly service provider in rural areas. There is very little private sector involvement even in commercial services such as insurance, banking and transport. Given the serious crunch on their financial and managerial resources faced by most governments, it becomes essential to involve the private sector. Private sector can bring the necessary entrepreneurship to create a demand for electronically delivered services and managerial skills to run a network in difficult conditions that exist in rural areas.

Key Lessons for Replicating E-Seva on a Wider Scale E-Seva provides a replicable business model for e-delivery of services in urban areas The investments needed to build integrated electronic delivery systems are not large. The total investment in the first phase of e-Seva that benefits 1.6 million customers is of the order of USD 4.5 million. The business model of e-Seva for delivery of services to urban areas is robust. E-Seva can be replicated in large cities in other states. However, a different business model would have to be evolved for rural areas. While the support for the e-Seva project has come both from the bureaucracy and the politician the uniqueness of e-Seva is the role of the private sector in a successful and apparently sustainable partnership. A major concern in the context of IT-related investments by the government is the lack of adequately trained manpower to manage and maintain software applications. Shortage of skills and experience can lead to a high risk of failure in an IT project. Building a public–private partnership for reforming service delivery could result in a win–win situation for both the government and the private sector. E-delivery is a potent tool for improving services E-Seva demonstrates that electronic delivery can significantly improve the delivery of certain types of services. Even when only a few stages of a service are delivered electronically, as in

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the case of acceptance of passport applications, the benefits to the citizens can be considerable. Electronic delivery of services introduces competition amongst delivery channels (between new service centres, new channels and departmental counters). In e-Seva, for some types of services such as bill payments, the entire transaction can be done online at one go. For some of the other services such as passport renewals, only the first stage—that of receiving the application—is handled online. The actual delivery of documents is done offline after due processing. In choosing a service for online delivery, it is immaterial whether a service can be completely automated or only partially automated as long as there is a significant improvement for the customer. E-Seva represents a single window where IT has been used to glue together separate departments without effecting many changes in the internal computerization and working of each of the department. Services that are offered in the e-Seva centres are not of any strategic importance to broader objectives such as the achievement of the millennium development goals or reduction in poverty. Nor does the electronic delivery of these services improve the investment climate of the state in any direct way. However, these services touch the lives of a very large number of citizens in a small way and the fact that bills need to be paid every month also helps in reminding citizens that the state is modernizing. Whereas the need for improving basic social services such as health and education for the poor should receive the highest priority, simple services that are used by non-poor citizens in urban and rural areas and simple goals of transaction efficiency are also worthy projects to implement. Support for e-Seva across the political spectrum indicates that such projects are also seen to be important by the politicians. Creating successful public–private partnerships An important factor is the design of appropriate technology architecture which will enable different private sector partners to offer services through a variety of channels. Since technology is

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evolving continuously, the architecture of future projects could be more flexible in their ability to accommodate more partners and new channels. In the early stages, the number of electricity bill payment transactions was nearly 85 percent of all transactions, representing the bulk of the revenues collected by the private partner. As other services were added to the basket of services offered by e-Seva, the proportion of electricity bill transactions has declined to 51 percent of all transactions. Fixation of the fee to be charged to the organizations (example, utility companies) that offer their services through e-Seva is a complex issue. The fee can be based on the existing cost of the utility companies for collecting payments. However, calculation of existing cost is not a straightforward task. The fee can also be based on the opportunity cost of collecting payments bills which would mean that the utility company may explore a variety of arrangements, choosing the one that is least costly to them even though it may cost more to the paying party. In the case of the Andhra Pradesh electricity company, there is resentment within the company against the charge of Rs 5 that is paid to e-Seva. The company accepted the fee because of political pressure. Perhaps this perception was molded by the fact that electricity bills were seen to be the mainstay of e-Seva in the initial stages. The reimbursement to the private sector partners is also a key determinant for the success of viability of the electronic service model. Since the reimbursement is determined through an open bidding process, the market decides its level. However, in case of Andhra Pradesh both the government and the private sector were clearly unaware of the level of uptake for electronic service delivery. As it turned out, the number of transactions grew to 1.6 million exceeding the expectations of both the government and the private partner. This means that the private sector partner has been able to recover its investments in a shorter timeframe than was expected. Perhaps, similar models being deployed by other states can benefit from the data on transaction volumes in Andhra Pradesh. The design of the Service-Level Agreement (SLA) with private operators in e-Seva could be improved considerably, as the

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original design could not benefit from any previous experience of similar service delivery projects. In the existing arrangement, there is considerable ambiguity with regard to the operational expenses incurred on creating awareness and marketing of e-Seva services. The success of e-Seva-like projects depends to a large extent on creating awareness and marketing of services, which can be expensive. Service levels need to be specified through many different dimensions and with a greater degree of specificity and detail. Service levels need to be focused on outcome measures such as transaction times at the counters the waiting period for customers, errors in posting payments, and the level of satisfaction of citizens with the queuing discipline and waiting hall conditions. However, SLAs are only as good as the quality of enforcement of these agreements. Since there is no automatic way of monitoring the performance on different parameters specified in a SLA, the staff of the e-Seva Directorate often find it difficult to enforce the SLA. An effective process of monitoring can provide the incentive for the private sector operators to continue investing in upgrading capacity to keep pace with growing transaction volumes. In the operations of e-Seva during the last four years there has been only one period of 3–4 months when any kind of fine or penalty has been levied on the private sector operator.

10 Case Studies on Government to Business Applications in E-Government This chapter includes four case studies of e-government applications covering different types of services to businesses and a variety of benefits that are delivered. Every case has shades of successes and some elements that have not worked so well. Three of these cases incorporate the results from recent assessments of these projects. There is learning to be derived from both successes and failures. The cases are structured to present the problems with earlier manual methods, the details of the new approach, implementation of challenges that were faced, costs and benefit delivered and key lessons that can be learnt by others who wish to implement e-government systems. Section 10.1 describes the implementation of online income tax filing system in Singapore, Guatemala, Chile and India. Many countries have implemented online tax filing for citizens and corporations with different levels of sophistication. In India, the income tax application is one of the MMPs. For the Chilean and Indian cases, results from formal impact assessment studies are incorporated. Section 10.2 describes the implementation of e-procurement at the national level in Korea, Chile, Philippine and at the state level in Andhra Pradesh, India. Many countries have begun to use an electronic platform for various stages and activities in the procurement of goods and services for government agencies. The goals of implementing e-procurement in different countries have been quite different leading to many alternate designs in which the process has been implemented. In India e-procurement

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is an MMP for the central government. Results from a systematic assessment were available for e-procurement in Andhra Pradesh, India, and have been incorporated in the case. Section 10.3 describes the computerization of the customs department in India to process import and export transactions. Nearly 70 countries have computerized their customs agencies using a software designed by UNCTAD. India chose not to use ASYCUDA and instead developed a home grown solution. Customs has been included as a central MMP in the NeGP signalling that the application will be designed afresh. Section 10.4 describes the computerization of inter-state border checkposts in Gujarat. Many states in India have contemplated implementing a similar system with greater functionality and integration across services as compared to Gujarat. The application was one of the early efforts of e-government in India. Several systematic studies have been done to evaluate its impact. Results will be discussed in the case study. The project represents an attempt to use fancy technology to outwit very strong vested interests which were resisting computerization. All the cases exemplify many of the critical success factors discussed in Chapters 4 and 5. Some of these cases were initially documented in 2000–01, about a year after the application had been implemented. They were updated in 2008 at the time of writing this book to incorporate recent data and information available from formal and informal evaluations. The purpose of including these cases is not to pronounce them as successes or failures. In fact, the degree of perceived success may change as time progresses, project implementers make way for new teams and political support weakens or strengthens. These cases do not merely present facts at a point of time, but include analysis of the process of developing these applications to provide learning for those who will strategise and implement e-government in different contexts in the future. The cases are not necessarily intended to serve as best practice examples that can be replicated in other contexts. Readers are encouraged to seek more details in case a similar application is to be implemented in another context.

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10.1 Online Tax Filing Systems in Different Countries: Singapore, Guatemala, Chile and India The manual system of income tax collection in some countries has a number of deficiencies like cumbersome procedures, poor intra-agency communication and coordination, inefficient deployment of resources, internal corruption and an endemic scepticism regarding the unfairness of tax collection policies and practices. These deficiencies often result in delayed payment, fraud and evasion. To overcome these deficiencies and to avoid the huge losses faced by the governments, some countries are now deploying online tax payment systems. Case studies of Singapore, Guatemala, Chilean and Indian online tax systems that allow citizens and businesses to connect to the tax agency website to file and, in a few cases, pay taxes are described.

Online Income Tax in Singapore (IRAS) Singapore’s transition from manual to electronic processes began early in the 1990s. In 1992, the Inland Revenue Authority of Singapore (IRAS) introduced an imaging system to electronically process the paper-based income tax returns filed by the citizens. Gradually, the interface with the citizen was changed, permitting filing by phone and later through the Internet. The future goal is to link the information in various government agencies related to earnings, eligible deductions, etc., so that the need for most taxpayers to file any kind of return can be eliminated entirely. When Singapore became an independent republic in 1965, its revenue structure and administration were similar to those of other former British colonies. The tax administration was a classically hierarchical bureaucracy, with extensive front-end revision of returns, followed by an extensive series of intermediate steps before the issuance of an assessment, and then a separate payment and enforcement process. In 1992, the IRAS was created for administering income and property taxes, and a value-added tax

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called the Goods and Services Tax (GST). Over the next eight years a completely new administrative system was introduced in a carefully phased, step-by-step fashion. One of the first changes implemented by the IRAS was to convert from a hard copy filing system to a paperless imaging system which permitted documents to be retrieved instantly from networked terminals. This improved the efficiency of the administrative process, facilitated back-end auditing and freed staff time from unproductive paper shuffling. But taxpayers still had to file paper originals. In 1995 electronic filing by telephone was introduced for individuals. Legal changes were needed to accept the computer output from an image system as a valid document. Most taxpayers continued to file paper returns. In 1998 Singapore introduced direct electronic filing for individual taxpayers with employment income. Filers see the entire tax form (including any corrections made for consistency) before it is submitted. If the taxpayer’s employer supplies the IRAS with filing information directly, all the taxpayer needs to do is to click the appropriate box to submit the form. The IRAS increasingly obtains data directly from employers in electronic form. In addition, data on dividends paid by Singapore-listed companies is obtained from the Central Depository. Some tax information is also reported electronically from such sources as the Ministry of Defence. Taxpayers can use electronic fund transfers (Giro) to pay their taxes via automatic deductions from their accounts. Adjustments in tax liabilities lead to automatic adjustments in payments. Alternatively, taxpayers can pay a lump sum using the telephone, Internet banking services or, finally, by debit card at payment kiosks or taxpayer service centres. About 60 percent of the individual taxpayers use one of these systems. The IRAS has introduced ‘e-stamping’ which makes it possible to pay the stamp duties levied on mortgage and stock transfer documents automatically. The system generates a legally accepted certificate of stamp duty that can be printed. The Singapore tax administration was reorganized and provided with considerable resources to carry out the major task of computerization. At its peak, for example, 200 people (including

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consultants) worked full-time on the development and implementation of the computer system to support the new tax administration. Implementation of the new systems was carefully phased and monitored, taking into account client feedback in each stage before proceeding to the next. Both the administrative structure and the related process of organizational control, as well as all internal procedures for processing taxpayer information, were completely re-engineered. Substantial and sustained effort were required to plan all these changes, to train staff, to manage the process of change and to monitor it. The project champion identified two key areas. First, to focus on building a team driven by overall organizational interest and not division interest, which was achieved by restructuring units, as structure shapes incentives. Second, to keep a detailed track of schedules, Gantt charts were used in regular meetings. Considerable efforts have been made to keep the Singapore system secure. For example, a Personal Identification Number (PIN) is mailed to each taxpayer and only raw data is accepted by the system (thus preventing virus contagion). Within IRAS access to information is on a need-to-know basis and is carefully tracked. This feature also facilitates a detailed evaluation of officials’ performance. An improved process of data mining is utilized to identify cases for audit and investigation. Up to 80 percent of tax assessments in Singapore are now made automatically for simple cases and the time needed to issue assessments has fallen from the earlier 12–18 months to three to five months now. Although staff size has been constant throughout the period, staff turnover has been reduced, tax arrears have fallen, property valuations have kept current and the audit function strengthened. Moreover, public satisfaction with the tax service has improved markedly. For the financial year ending 31 March 2007, total tax revenue collection amounted to USD 22.9 billion. This figure represented 73.1 percent of Singapore’s operating revenue and 10.7 percent of Singapore’s Gross Domestic Product (GDP). Income tax collection from individuals and corporations amounted to USD 13.2 billion in the year 2006–07, representing 57.7 percent to the

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total tax collection and a 13.0 percent increase over the previous year. IRAS aims to keep the cost of tax collection low. For fiscal year (FY) 2006–07, IRAS cost per dollar of tax collected is 0.83 cent. This was a reduction of 10.8 percent, from the previous year’s cost of 0.93 cent per tax dollar collected. This is mainly due to higher tax collections. The main contributor to the cost savings was reduction in manpower, through which almost USD 1.48 million was saved. Through another initiative IRAS saved USD 20,000 on the cost of printing letterheads. IRAS was also able to save USD 58,000 with a reduction in the issue of forms to taxpayers. This was possible as more taxpayers were being issued PIN mailers to encourage them to e-File, while some others were given a letter to inform them that they need not even file a tax return. In recognition of staff’s contribution to the improvement in the Net Economic Value (NEV) performance of the organization, a total of USD 0.7 million was given out as Productivity Savings Award to staff. At the end of FY 2006–07, IRAS had assessed 99.3 percent of the 1.46 million individual income tax returns received for year of assessment (YA) 2006. For corporate income tax, 70.0 percent and 89.5 percent of the assessments received for YA 2006 and YA 2005 respectively, were completed. In total, 106,537 and 109,748 corporations were assessed for YA 2006 and YA 2005 respectively.

The Guatemalan Online Tax Filing System (BancaSAT) The Guatemalan online tax filing and payment system BancaSAT was started in 2001 and accounted for 84 percent tax revenues by the end of 2002. The online system has significantly reduced transaction costs and improved service delivery. The system is considered successful and highly regarded by users, in particular, because of its simplicity. According to Guatemalan tax agency Superintendencia de Administración Tributaria (SAT) figures, in 2001, Guatemala’s tax revenues were USD 2.1 billion, approximately 10 percent of the

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country’s GDP and out of the 130,000 taxpayers, approximately 12,000 paid over USD 8,000 in taxes. The filing of taxes was done through the traditional paper forms which along with the payment had to be handed to commercial banks. The information in paper forms was typed into an electronic form by bank employees, then printed and sent to SAT within five days where the information was again transferred to new forms by the SAT staff. Finally, the forms were handed to another department for storage and could be accessed during audits. The enormous amount of paperwork at every stage of the process resulted in numerous typing errors and loss of information. Long lines at the banks and complaints were frequent. The complexity of the forms also contributed to errors in the declarations by taxpayers and made the process tedious and slow. It was apparent that such a cumbersome process could not contribute to increasing the taxpayer’s base and could not guarantee the quality of information stored by SAT. Under Guatemala’s BancaSAT model, taxpayers connect to their own bank’s website where they can click on a link to the BancaSAT system. After registration using a username and password previously provided by the same bank, they select the tax form according to the tax to be filed (income, value-added and so forth) and complete it online. The bank debits the taxpayer’s account with the amount due. Minutes later the taxpayer gets the confirmation of the transaction from the bank and seconds later the receipt from SAT. Banks are allowed to keep the payment for five days before transferring it to the central bank. Additionally, the system allows accountants to file and pay taxes in the name of their clients as long as they present an authorization document to the bank. Also, in 2001 BancaSAT initiated a newsletter (InfoSAT) service managed by a private company at no cost for the agency and the taxpayer. The company finances the newsletter through paid advertisements. This newsletter contains general information in the area of taxation in Guatemala and other countries and also technical advice for professionals in the field. The newsletter is highly regarded by the 17,000 subscribers of which 90 percent are taxpayers.

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In Guatemala, while most companies have Internet connections, most individuals do not. To address this problem, banks are deploying computers in their branches in order to allow individuals to file taxes online. Organizing a team to carry out the project was a challenge. Finally, a team of five people of national and international staff was formed which guaranteed an adequate mix of international and national experience and sufficient transfer of knowledge to the SAT staff to avoid sustainability problems. Overcoming resistance to change from public administration and taxpayers was a challenge. First presentations of the new system to the Ministry of Finance were received with scepticism. Also, taxpayers, although receptive, were uncertain of the project’s actual benefit. Many stakeholders perceived the plans for a new Internet tax payment system as a threat. This resistance was overcome by involving all stakeholders in the project. Initial meetings were held at several SAT departmental levels to explain the objectives of the project and the benefits from the Internet system. The new responsibilities that staff would gain as many activities were absorbed or simplified by the system were constantly emphasized. These new responsibilities included, among others, auditing and several activities to enhance customer satisfaction. Commercial banks, accustomed to an Internet environment, showed less resistance. Launching a new version of the system frequently also had a disadvantage. Users noticed that every six months there was a new BancaSAT icon in the banks’ websites which could have created confusion. In this respect, two initiatives were taken. First, it was decided that the previous BancaSAT versions should keep running as others were added (therefore, BancaSAT2 did not substitute BancaSAT1). Second, provide the adequate new functionality to the newest version in order to generate more incentives for users. Another important challenge was obtaining the approval of the new legal framework for electronic filing. This process involved intensive consultations with SAT and the Ministry of Finance. In the beginning, electronic filing was seen as non-reliable and nonsecure for payment transactions. However, presentations on how

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these systems work in other countries helped to overcome this resistance. Continuous changes among the SAT personnel made progress of the project more difficult. This was partly overcome by maintaining the same project director throughout. In 2001, the Guatemalan tax law was modified allowing taxpayers to file taxes by electronic means. In order to identify taxpayers filing electronically, a security and identification password was given to each of them by the commercial banks in which they filed and paid taxes. In Guatemala, commercial banks have, therefore, three roles that are usually carried out by the tax agency in other countries. These banks are authorized to certify taxpayer identity, collect tax forms and collect the payment. The estimated cost of the BancaSAT project is USD 220,000, spent mainly on consultants, IT equipments (two servers) and small training modules. There were no lay offs as most people were assigned new responsibilities within the agency. Commercial banks and important partners in BancaSAT were responsible for the following at no cost to the agency: front-end design, interconnection with SAT systems, security (firewalls, TOKEN cards, etc.), identification of tax filers, agreement with tax filer to use BancaSAT, advertisement and Internet servers, software and communications. The commission paid to the banks has been maintained and it is the same for paper and electronic filings. Currently, this amount is 0.085 percent of tax collected and USD 0.1 per filing. In December 2002, around 9,000 Guatemalan taxpayers filed taxes through BancaSAT, accounting for 84 percent of tax revenues. As per the projection, the online tax payment was to account for 95 percent of Guatemala’s total tax revenues by August 2003. The benefits for the taxpayers have been considerable. Citizens and businesses can now file and pay taxes at any time from anywhere. Transaction costs for both citizens and government have been reduced. Operational costs have also declined as paperwork, typing errors and use of cash is eliminated. Similar cost reductions can be estimated for SAT. Moreover, data errors and citizen complaints to the SAT have been significantly reduced. BancaSAT has notably contributed to a 13 percent increase in SAT’s

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revenue collection from 2000 to 2001. In past years growth in revenue collection stayed between 9 and 10 percent.

Chile—The Internal Taxation Service (SII) Chile, too, has moved from a cumbersome and costly manual system to a new system that allows taxpayers to file tax returns online and receive an assessment in 12 hours instead of several days under the earlier system. The Chilean government and the SII planned to start an online taxation package in 1998 to reduce the cost and increase the accuracy of tax collection, to equip Chile’s tax authority with the resources, it needed for the foreseeable future and to offer taxpayers throughout the country a higher standard of service along with swift, easy access to vital tax information. The first phase of the new tax service was simply to place taxpayer information online (including the tax structure, corporate topics, guidelines and procedures) rather than visiting the SII office or phoning for a printed document. In the next phase the website was made interactive and individuals could check their tax status online, which was followed within a year by electronic tax filing. In Chile the Internal Taxation Service (SII) is responsible for collecting individual as well as corporate taxes. Under the manual system, a mountain of paperwork was created, printed and dispatched by post to keep taxpayers and their advisers aware of latest regulations. Individuals had to visit their local tax office to see inspectors. The process culminated in a declaration presented on a piece of paper, which then had to be keyed, calculated, verified and paid. One of the biggest challenges for the SII was to create a technological platform that would streamline the tax filing and information process while maintaining absolute reliability. Moving from a traditional main-frame computing model, the SII chose three-tier Internet architecture capable of handling large numbers of concurrent users (over 500 in any 15-minute period) and huge volumes of data. The architecture allows a radical reduction in

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processing time, and the information supplied can be quickly retrieved at every level. Security and reliability were major considerations, as was the ability to expand the system painlessly to meet projected growth. In order to extend the mutual benefits of the online tax processing to more individuals and small businesses in Chile, SII and CTC-Internet (a private firm) collaborated to offer very low-cost Internet access to the people across the country, having little or no experience with the Internet, through a service called Republic 2000. The benefits of deploying the Internet technology have been multiple for the countries. In Chile, the online filing of taxes allowed taxpayers to key in and validate data themselves, thereby reducing queries and input errors. To rectify any potential mistakes, the new system enabled individuals to amend their tax returns online. Online customers find the system easier, faster and more accurate than traditional paper-based services. Whereas processing a tax return had previously taken 25 working days (still a healthy performance for a paper-based tax system) the new online package was delivering online assessments in just half a day. The SII saves money on printing, distribution and processing time. Moreover, the SII’s national network of offices can be reassigned or streamlined. In its first year of operation 23,081 personal access codes were requested and after three years of SII’s interactive services, over 400,000 taxpayers have checked their assessments online, 183,548 sworn returns and 89,355 income tax returns have been received. The Chilean ex-chequer has collected USD 1.943 billion through the electronic system. In the early years, the volumes being handled were approximately 1.8 million tax returns per annum plus 950,000 VAT returns every month. Currently, SII’s website (www.sii.cl) generates annual income tax returns online for each taxpayer with the information available to the SII and most taxpayers merely accept the return. Since 2005 tax payers can accept returns through short-text messages using mobile phones. If the tax return suggested by the SII is wrong or

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incomplete, the taxpayer inputs the missing income information online and the SII’s computers automatically recalculate the tax liability or refund due. The simplicity of these procedures explain why 96.3 percent of the tax returns were delivered online in 2005, up from 83 percent in 2004, 69 percent in 2003, 54.4 percent in 2002, 42 percent in 2001 and 25.7 percent in 2000. The SII is also accelerating the digitization of the economy through the spread of an electronic-invoicing system it launched as a pilot scheme in October 2002. It became fully operational in April 2003. The number of authorized companies that can issue an electronic invoice is approximately 10,000 in comparison to just 25 three years ago. Only 3 percent of the invoices issued in the country were electronic by mid-2004, but this proportion had reached 11 percent by end-2005. In 2005, tax collection increased by 19 percent to USD 19,981 million, reflecting higher economic growth, while the tax burden represented 17.3 percent of GDP. In Chile, the burden of central government taxes is the lowest in Latin America and is also lower than in the majority of European countries. However, in most European countries, taxes include a social security and pension component that is absent in Chile. The strategy of focusing the tax auditing on certain areas of higher evasion risk is showing its effectiveness, having reached during the first semester of 2007 a record figure of USD 612.2 million in determined tax differences. This figure is equal to 65 percent of taxes collected in the previous year. SII is developing an auditing model that would segment the taxpayers in accordance with taxpayer attributes which would allow the SII to focus its efforts on those tax payers who, by their dimensions, economic activity and/or category of taxation and comportment, present a greater risk of evasion. The result of this focused auditing is that fewer taxpayers will have their tax declarations audited for inconsistencies while simultaneously collecting substantially more revenue by concentrating SII resources on the most significant areas. An evaluation of the project in 2006 reported that SII appears to have improved the perception of fairness among businesses

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as revealed through focus group interviews (Bhatnagar 2007). All businesses that have a permit to trade issued from the municipality are now automatically included in the system if their annual earning is above a certain threshold. Earlier, many such enterprises were outside the system. This measure is perceived as being fairer by the business community. There was no strong endorsement, however, that the Tax Online had either increased transparency, eliminated corrupt practices, promoted confidential and secure data or that the SII takes into consideration the opinion of citizens while developing norms and rules. The site has won several awards including the Technology Innovation Award from the Chilean IT Association and a Government Management Innovation Award. Readers of the national newspaper El Diario also awarded the SII first prize for the best public institution website in the country.

Computerization of the Income Tax Department, India Comprehensive computerization of the income tax department in India was initiated in 1993 with the objective of facilitating easy access to information, income tax accounts and refunds by all assesses and citizens, jurisdiction-free filing of returns and online transactions of citizens with the department. The computerization process is in its final stage now, with back-end computerization involving setting up of a national database and data centres and an ‘All India Income Tax Network’ connecting all offices nearing completion. Online delivery of several taxpayer services has already been facilitated through the department website. Citizens can apply for a Permanent Account Number (PAN) and Tax Deduction Account Number (TAN) by filling an online application form and sending the acknowledgment form that is generated on successful submission, along with supporting documents, to either of the two agencies authorized by the department to issue the PAN/TAN cards. Return Preparation Utilities available on the website enable preparation and validation of income returns of non-business taxpayers, Tax Deducted at Source (TDS) returns by corporate and government deductors and annual

234 Unlocking E-Government Potential

information returns of high-value financial transactions by banks and institutions. E-filing of returns can be done directly through the website using a digital signature or through an e-Return intermediary. More than 600,000 individuals have filed their income returns electronically in the current assessment year while filing of e-TDS returns was made mandatory from 2007. Tax payments can be made through the Internet using net banking facility of designated banks. Online Tax Accounting System (OLTAS) allows the department to receive information and maintain record of taxes paid through banks. Banks can upload details of tax payment receipts through the website. The website also allows access to rules and regulations of the Income Tax Act and other related Acts and taxpayer-specific information like PAN allotted to oneself, payment receipts, and status of PAN application and tax payment.

Key Lessons E-government applications often require changes in the legal code in order to fully utilize their potential. In Chile, the popularity of the SII spurred citizens’ demands for a legal change to facilitate the authorization of online transfer of information between the SII and taxpayers. The government responded by making an amendment in Article 30 of the tax code which authorized the presentation of annual reports and accounts and tax returns by the taxpayers on media other than paper. Establishing adequate legal framework was also pivotal. In Guatemala, it was designed to help BancaSAT reach a critical mass of users. It was important, however, to find a balanced legal framework that, while obliging some tax filers to go online, did not put excessive burden on those without an adequate capacity to file taxes online. However, the current legal framework is pushing to increase the online taxpayer base. In March 2003 every filing over USD 8,000 had to be made with BancaSAT. Since April 2003, the threshold was reduced every month until August 2003, when every filing over USD 1,200 was expected to be made through the system. The impact of this change is not known.

Case Studies on Government to Business Applications in E-Government 235

For a number of reasons, Singapore is unlike any other developing country (in fact, Singapore today has a high per capita income and a technologically sophisticated population and infrastructure). Still, many aspects of the Singapore experience do not depend on its particular characteristics. Strong support from political leaders, dedicated and skilled managers, the development and implementation of a strategic business plan, the creation of a semiindependent revenue authority, automating and restructuring control systems, strengthening the audit function and simplifying and reducing paper handling through adroit and appropriate use of IT are all the steps that are potentially available to other countries. It is important to remember, however, that Singapore’s successes in tax administration were not achieved overnight. The IRAS system took eight years to build, step by step. Many e-government projects fail to define a realistic scope. This makes projects take too long, limiting their achievements while going very high on costs. BancaSAT is an example of a well scope of the project from the beginning which was kept relatively small and manageable. This helped set clear goals that could be achieved in a reasonable timeframe. The long-term objectives were considered while defining different stages of future development. In order to keep the cost factor in line with the outcome, a more advanced version of the system was produced every six months and launched to the public instead of waiting for the final system with all the functionality. The first version was delivered within six months of the beginning of the project. This, like the Singapore case, suggests that a step by step approach is much safer in such initiatives. The BancaSAT initiative shows that it is difficult to succeed in an e-government project (and in any other in the area of service delivery) if the quality of the service is not high. In this case, the Internet signified a new medium. To persuade businesses and citizens to switch over to the Internet, incentives had to be offered: among others, reduction in transaction costs and time-frames for tax filing and payment, elimination of waiting lines, and the introduction of value-added services such as a tax newsletter and tutorials for assistance in online tax filing. Also, the simplification

236 Unlocking E-Government Potential

of both documents and processes is considered one of the main success factors of the project. The involvement of the private sector played a key role in the success and sustainability of the BancaSAT initiative. The SAT partnership with commercial banks has had a dramatic impact on the costs of the system for the tax agency. The banks manage almost every element of the infrastructure needed for the systems with little or zero maintenance cost for the SAT and for taxpayers. Banks are paid a commission for every declaration filed. BancaSAT is accessed through the banks’ web sites, and this has promoted a healthy competition among banks to attract clients. Quality of service is, therefore, kept at high level, as banks compete in order to retain and add customers. (This Case Study was based on IRAS, Bhatnagar 2000, Wajsman and Solana 2004, SII, World Bank 2001, Global Technology Forum 2006.)

10.2 E-Procurement Experiences from Different Countries: Korea, Chile, Philippines and India (Andhra Pradesh) An electronic procurement system increases transparency and probity by keeping a traceable electronic record of government transactions online. A comprehensive e-procurement system includes three components: information and registration, e-purchasing and e-tendering. However, e-procurement initiatives across various countries, including India (Andhra Pradesh), Korea, Chile and Philippines suggest that in practice the extent of computerization of processes can vary depending upon the requirement of different governments. The Andhra Pradesh e-procurement system permits online bidding and evaluation of bids and covers 90 percent of all procurement activity of the state. The Chilean and Philippine e-procurement systems focus on the first component of adequate public notification and oversight and provide complete information on procurement operations. The Korean government has incorporated a comprehensive e-procurement system as one of the main

Case Studies on Government to Business Applications in E-Government 237

pillars of e-government in the country. Each of these experiences is described in some detail.

E-Procurement in the Government of Andhra Pradesh, India Application context The GoAP procures goods, services, works and turnkey contracts worth USD 2.0 billion every year. This procurement is done centrally through a single unit, as well through individual government agencies who manage their own procurement needs. Many different mechanisms are used for procurement such as tenders (open, limited and single), rate contracts and catalogue purchases. Procurement processes are governed by the guidelines of the GoAP and sometimes of external agencies like the World Bank which may be funding a project. Tenders are announced in newspapers through paid advertisements, and suppliers were expected to buy tender documents at a price of USD 250. Prior to the introduction of an e-procurement platform, procurement in government departments was carried out through a ‘manual tendering process’. This process involved obtaining internal approval of the project, publishing a Notice Inviting Tenders (NIT) in several media outlets, bid submissions (voluminous sheaths of paper) by suppliers, bid evaluations by buyers and finally, the awarding of the procurement order and signing of agreements. The complete process required a long chain of internal authorizations and scrutiny (at times involving several departments), several visits by suppliers to departments, and the generation of reams of paper-based statements and evaluations. The manual tender system was suffering from deficiencies such as: 1. Discrimination and delay in issue of tender schedules to suppliers: Government departments control the issuance of tender documents to the bidders after verifying their applications. There existed an element of subjectivity and discrimination in this process, in addition to delays

238 Unlocking E-Government Potential

2.

3.

4.

5.

6.

in the preparation of tender schedules due to shortages of paper and related stationery items in the government departments. As a result, on occasion the tender documents were not issued to the bidders on the announced dates, putting some of the bidders in disadvantageous positions. Cartel formation to suppress competition: Through dubious means, the participating bidders would gather the list of prospective bidders for a procurement request. They would use this information to lobby for formation of syndicates or cartels and bid at higher quotations. Physical threats to bidders: In regions plagued by factions and/or mafia groups, genuine bidders were physically threatened and prevented from submitting their bids. The bidder or his agent had to risk their physical safety to submit bids in the tender box placed in the office of the tender inviting authority. The media often reported such incidents, showing the government in a bad light. Tender boxes at multiple locations: To counter the menace of contractors’ cartels and physical threats to bidders, some government departments started keeping the tender boxes at multiple locations. Instead of yielding the desired results, however, this practice was putting departmental officials who had to collect the tender boxes after closure of tender submission time at risk. Physical transportation of tender boxes from multiple locations to a central point also proved to be a risky proposition in such an environment. Tampering of tender files: For the purposes of evaluation, the bid documents are transported across the administrative hierarchy, which introduces the risk of tampering or loss along the way. The transportation of bid documents, manually and through surface mail, is also a time consuming activity. Delays in finalization of tenders: Red tape, lack of transparency and manual movement of files across the administrative hierarchy was resulting in inordinate delays in the finalization of tenders. Typically, tenders for major projects would take from 90 days to 150 days to process.

Case Studies on Government to Business Applications in E-Government 239

These delays were contributing to cost and time overruns for the projects. 7. Human interface at every stage: The manual system exposed the departmental personnel to the bidders at every stage of the process, namely, sale of tender schedules, issue clarifications, bid submission, bid evaluation. Such repeated contact between bidders and departmental staff could lead to subjectivity, favouritism and other undesirable practices. 8. Lack of transparency: Procurement is considered a sensitive function with all related information tightly controlled and closely guarded by government departments, resulting in a severe lack of transparency in the entire process. This lack of transparency leads to misinformation and a lack of trust in the system by the bidders, media and the citizens. A new approach The severe shortcomings in the manual tender system had an adverse effect on the reputation of government departments. Delays in the finalization of suppliers for materials and services for government projects had crippling impacts on the completion of projects and delivery of services to the citizens. A cabinet sub-committee on tender reforms instituted by GoAP in the year 2000 recommended the creation of an e-procurement market place. This would facilitate online tendering based on Internet technology to provide ‘any where any time’ access to the bidders for participating in tendering. This would also eliminate the nonvalue-adding activities like manual sale of tender documents, manual opening and reading of bids, preparation of comparative statements (as they are automatically available), audit/cross check of comparative statements, time spent in movement of files from one person to another, manual creation of purchase order and delivery schedule, etc. Automation of the procurement transactions reduces human error, enhances the integrity of the data, brings in transparency to the government procurements and facilitates standardization of processes.

240 Unlocking E-Government Potential

The entire e-procurement process was designed to avoid human interface i.e., supplier and buyer interaction during prebidding and post-bidding stages. The application ensures total anonymity of the participating suppliers, even to the buyers, until the bids are opened on the platform. The e-procurement application provides automatic bid evaluation based on the evaluation parameters given to the system. These improved processes have eliminated subjectivity in receipt and evaluation of bids and has reduced corruption to a significant extent. To bring in transparency in e-procurement, tender documents containing all details are hosted on the website. The documents can be downloaded by the interested suppliers free of cost from the day of publication of a tender. Suppliers are no more dependent on the officials for various details. At any time in the procurement cycle, any person associated with the transaction can check and know the status of the transaction. This saves time and effort involved in finding out the status of a purchase order, besides enabling better planning of inventory. At the outset, an effort was made to standardize the procurement processes and forms followed by various departments especially for public works tenders. Today, all the departments follow common tendering process and forms for works tenders. These processes have been re-engineered to further improve the efficiency and curtail subjectivity in tender evaluation on the part of the department users. A similar exercise is underway for products as well. Implementation challenges The first challenge was to arrive at a sustainable business model with proper implementation strategy. The GoAP considered three alternative business models for implementation of e-procurement, namely, 1. Government owned–government operated. 2. Government owned–operated by a private operator. 3. Public–Private Partnership (PPP) model.

Case Studies on Government to Business Applications in E-Government 241

The first two models required fresh government investment in an area where there was no prior experience in AP or any other state. These models were dropped from consideration as senior government functionaries were apprehensive about the return on investments and possible criticism in case of failure of the system. It was therefore decided to implement e-procurement in a PPP model wherein the private partner would bring expertise in technology, invest upfront in setting up the exchange and recover the costs by charging the user departments for completed transactions. The PPP model was selected because the private partner takes on the risks related to changes in technologies and return on investment. This model combines accountability with efficiency, as the services are governed by strict service level contracts. Moreover, GoAP had experienced success with the PPP model in some other projects. In view of the unique nature of the project, the GoAP engaged M/s Pricewaterhouse Coopers (PwC) as consultant for assisting GoAP in drawing project requirements, developing Request for Proposal (RFP) documents to select a partner and to advise in the selection process for establishing an e-procurement exchange. Only vendors with an existing e-procurement software or platform were considered for the project. Ground-up development of the exchange was avoided to expedite the implementation and also to benefit from the experience that the vendor was expected to bring from earlier implementations of similar projects. A consortium lead by M/s C1 India Pvt Limited was selected as the private partner, based on competitive bidding to implement the project through PPP model. In case of the PPP model which is of the Built Owned and Operated (BOO) type, M/s C1 India owns the system. The GoAP registers the website domain name and it is the absolute owner of data. As per the agreement, the GoAP reserves the right to buyout the software and hardware at a pre-specified written down value at the end of the present contract period, that is, 31 March 2007. The GoAP has not guaranteed any specific revenues on this model but has assured that all procurements costing above Rs 1 million by government departments, PSUs

242 Unlocking E-Government Potential

and local government bodies will be done exclusively through this portal. Though the ultimate objective of GoAP is to have a governmentwide e-procurement solution, considering the complexities involved, a strategy was evolved to approach implementation in a phased manner. A pilot was conducted in four selected departments to prove the new system and then roll out to other departments. Over a period of nine months, the pilot was used to create templates for various types of procurement practices prevalent in government departments to set the stage for rollout across other departments. In order to effect a gradual transition from the conventional tender system to e-procurement, the GoAP issued executive orders and made e-procurement mandatory in the pilot departments for all procurements exceeding a value of USD 250,000 in the first instance. This threshold limit was subsequently lowered to USD 125,000 at the end of the pilot phase. After the success of the pilot phase, e-procurement was immediately rolled out in all the remaining departments, for all procurement above USD 25,000. Within 30 months, the platform was servicing eight government departments, 13 public sector units, 51 municipalities and five universities with a cumulative turnover crossing USD 8.5 billion from 12,441 transactions. The second challenge was to ensure inter-departmental coordination, as e-procurement centralizes the processing of tenders and touches several departments located in different parts of the state. A high level Steering Committee (Project Implementation Committee) chaired by the Chief Secretary of the state, comprising the Secretaries, heads of all the participating departments and representatives of the private partner was formed to promote coordination. The Steering Committee dealt with issues related to business model, selection of private partner, interdepartmental coordination, business process re-engineering and other important issues in the implementation of the project. The Information Technology and Communications Department of the GoAP was made the nodal agency to oversee the implementation of the project.

Case Studies on Government to Business Applications in E-Government 243

The third challenge was Change Management as the implementation involved adoption of new ways of doing things for a variety of stakeholders. Setting up the e-procurement exchange was not difficult in terms of its technology components, but getting stakeholder buy-in to adopt the platform was a big challenge. The various steps taken to manage change with the stakeholders are enumerated below: 1. To ensure buy-in of the top management and to resolve procedural issues, the Steering Committee chaired by the Chief Secretary of GoAP met once every month during the pilot stage. The committee considered in great detail all issues that arose during implementation and the problems were resolved then and there without loss of time. 2. Meetings were held by the Chief Minister on regular basis to monitor the progress. Procurement targets were fixed for each participating department and were monitored closely. These targets were made part of the Performance Indicators that were used to measure the performance of key officials in the pilot departments. 3. Project champions were identified within each department. Core groups were formed in the user departments to chalk out a strategy for implementation within the departments. Fortunately, the Indian Institute of Management Ahmedabad (IIMA), had trained the key functional officials from the target departments that were associated with the e-procurement project as Chief Information Officers (CIO). They worked closely with the Project Manger, GoAP and C1 India project team. 4. The CIOs functioned as a bridge between the user departments and the technology experts, that is, service provider. The CIO’s assisted the Steering Committee in bringing in necessary regulatory changes and helped in re-engineering the departmental procurement process. The CIOs acted as project champions within their department driving the implementation and the change management process.

244 Unlocking E-Government Potential

5. The stakeholders were involved in the detailed ‘As-Is’ and ‘To-Be’ process studies. Feedback was taken from the Builders Association of Andhra Pradesh and Small Scale Industries Manufactures Associations on the ‘As-Is’ and ‘To-Be’ processes. The gaps thrown by the ‘To-Be’ process study were addressed through appropriate customisations and the agreed upon process by the stakeholders were mapped on the software. 6. To effectively communicate the objectives and benefits of the project, training and workshops were conducted for both the department users and the suppliers. At least 400 department users and 1000 suppliers were given hands-on training during the pilot phase. Training and workshops are regular features even in the rollout phase whenever a version change of software is introduced. 7. Detailed training kits and FAQs were prepared and hosted on the website for the benefit of users. These workshops also served as good forums to receive user feedback on the application. This feedback was always analyzed and appropriate changes were made in the process of the application. 8. The service provider runs a strong and committed call centre type help desk on a 24×7 basis to record and address all the issues of the users. The fourth challenge was resolving the security and authentication issues of the platform. Stakeholders have to be completely convinced that the transactions on the platform are secure. The identity of the participating bidders and the quotations that the bidders make are very sensitive information in the entire tendering process. The e-procurement solution was designed with extensive security features to help ensure that all activities are logged, no unauthorized person has access to data, all sensitive data is encrypted, and that the system can be restored in a minimal time in case of a disaster or system crash. A sound security policy for e-procurement has been implemented using the following features to ensure security in the platform.

Case Studies on Government to Business Applications in E-Government 245

• • • • • • • • • • • • •

Two-factor authentication Digital signatures to ensure non-repudiation Bid encryption at the database Online anti-virus scanning 128 bit SSL encryption Audit trail of each activity Privilege-based user access Time stamping Firewall for screening system access Access control system Intrusion detection system (network and host) Regular back up of data Disaster recovery site

The e-procurement software was audited for security by a third party during the pilot phase in August 2003. The security audit recommended better functional controls. There were no major security lapses identified by the auditors. M/s C1 India complied with the recommendations within a suitable time-frame to the satisfaction of the GoAP. Activity level on the e-procurement platform The GoAP’s annual expenditure on procurement through normal programmes is to the tune of USD 2 billion a year. This figure has now risen, as the GoAP is investing around USD 10 billion over a five year period in creating irrigation sources through a special programme named as ‘Maha Jala Yagnam’. Table 10.1 shows that nearly 90 percent of all procurement worth USD 4 billion was carried out on the e-procurement platform in 2005–06. Benefits and costs The initiative has transformed the procurement process in government departments. The automated processes and work flows have improved internal efficiency within the departments, shortened tender cycle times, eliminated subjectivity in the evaluation of tenders with system based auto bid evaluations and have reduced corruption.

246 Unlocking E-Government Potential Table 10.1: Use of the e-procurement platform by departments and agencies of GoAP

Year 2003–04 2004–05

2005–06

No. of departments/ agencies 8 7 departments 9 PSUs 17 municipalities 8 departments 13 PSUs 51 municipalities 5 universities

Percentage of e-procurement Value of out of total transactions No. of completed transactions government spend (%) USD (million) processed 447 3,522

564 3,746

20 80

3,740

7,931

90

Source: Compiled by the author from information received from Commissionerate of Tenders, Government of AP.

1. Reduction in tender cycle time: In the pre e-procurement era, the departments used to take 90–135 days for finalization of high value tenders. The tender cycle time has gradually come down to an average of 42 days over a period of one year and further reduced to 35 days at the end of the second year. This improvement is due to automated workflows, the ability to track and monitor file movements through a function called ‘tender tracker and tender monitor’ which pictorially displays the tender file status, indicating the number of days each government worker has taken to clear the file. These software features have made the procurement processes transparent. There is greater accountability since the electronic records/ documents can be retrieved at any given time and all the activities of a system user are logged in the system. The works departments has been able to divert surplus resources from procurement wings to other needy wings like works execution. 2. Reduction in opportunities for corrupt practices: The e-procurement system allows a supplier to view the NIT,

Case Studies on Government to Business Applications in E-Government 247

download bid documents and Bill of Quantities, free of cost on ‘any where’ and ‘any time’ basis from the Internet. This has empowered the supplier as he is no more dependent on the government workers for issue of RFPs, clarifications on the bids, bid submission, information on tender evaluation status, etc. The entire e-procurement process has been designed to eliminate the human interface, that is, supplier and department interaction during pre bid and post bid processes has been minimized. The automatic tender evaluation functionality introduced in version two of the software, launched in March 2005, has reduced subjectivity in tender evaluation and helped to curb opportunities for corrupt practices to a significant extent and increased the accountability of procurement officials. In terms of transparency, any supplier or an ordinary citizen can get information about tenders which are live on the platform through a search engine on the homepage. The NIT, corrigendum, bid documents, Bill of Quantities are available to a citizen for free downloads. A supplier participating in a tender knows the list of other participating suppliers, the documents furnished by his competitors, price quotations and the evaluation result, as soon as a stage is completed by the departments in the system. Short information on the status of tenders and award values will also be available to any citizen accessing the website. 3. Cost savings: One way to estimate cost savings is to compare the percentage discount of Tendered Contract Value over the Estimated Contract value for service contracts awarded before and after the implementation of the e-procurement system. Table 10.2 shows comparative savings in costs for works departments based on historical data available with the Commissionerate of tenders which is the nodal agency for finalization of tenders costing above USD 0.45 million value for works departments, like the Roads and Buildings Department and Irrigation Department. Tenders processed through the e-procurement platform in the pilot phase during 2003–04, the first year

248 Unlocking E-Government Potential Table 10.2: Andhra Pradesh tender analysis (GoAP)

Mode of No. of procurement tenders

Year

Estimated contract value in USD (million)

Tendered contract value in USD Percentage (million) discount

2001–02

Conventional mode

188

177

166

-2.65

2002–03

Conventional mode

125

126

115

-8.65

2003–04

Conventional mode

53

83

75

-9.00

2003–04

e-procurement mode

107

166

124

-25.00

Source: Compiled by the author from information received from Commissionerate of Tenders, Government of AP.

of the initiative, yielded a reduction of 16 percent in the quotations in comparison to the previous years when the procurement was manual. The project encourages bidders to participate in government tenders. Supplier participation has increased from an average of three per tender in conventional mode to 4.5 in e-procurement mode. The cartels are eliminated and even small and medium suppliers are now able to bid, as the platform facilitates ‘any where any time’ bidding. The departments have reaped significant cost savings of an average reduction of 20 percent in cost for the procurement transactions done through the exchange during the year 2003–04 and 12 percent in 2004–05 due to a competitive environment. There is also a substantial reduction in the advertisement costs in the press media as e-procurement tender notices were shortened to contain only basic information on the name of work, estimated costs and the URL of the e-procurement site. There has been a 25 percent saving in the column space used, resulting in savings of approximately USD 0.56 million in a year. Transparency in the bidding process

Case Studies on Government to Business Applications in E-Government 249

and in the system of automated tender evaluation through smart forms with parameterized qualification criteria has reduced subjectivity in the tender award process and reduced corruption. The MIS feature in the system reveals data on government procurements instantaneously to the bureaucrats and ministers. Besides, it has made a visible social impact, as the citizens are assured that government procurement is conducted in a transparent manner, saving taxpayers’ money. 4. Costs of implementing the system: A lean project team consisting of a Project Manager and an Assistant Project Manager (both trained as CIOs by IIMA) reporting directly to the Secretary of the IT&C Department has overseen the implementation. The IT&C Department spent Rs 0.55 million on training and Rs 7.2 million for purchase of desktops, printers, UPS and Internet connections (ISDN connections and modems) for the departments in which the project was piloted. The GoAP had engaged PWC to prepare an e-governance road map and blue print for 50 major departments, identify five core projects and implement these five core projects for a fee of Rs 16.2 million. About 15 percent of this expenditure can be apportioned for the e-procurement project. As per the agreed business model, the private partner has invested upfront in hardware and software for establishing an e-procurement exchange for GoAP and there are no costs to the government on this project. It is estimated that the private partner has incurred a capital expenditure of USD 1.12 million on software and hardware and an operational expenditure of USD 0.54 million per annum on the e-procurement platform. In order to encourage the suppliers using the platform, no charges were collected from the bidders participating in tender related transactions on the e-procurement platform. The government has incurred expenditures of USD 0.62 million on hosting charges at USD 101.6 per tender and transaction fees

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at 0.24 percent on the completed transaction fee to the private partner during the pilot period. However, in the rollout phase a new business model was evolved to shift the burden from the government to bidders with every participating bidder paying a transaction fee at 0.04 percent of tender value with a maximum cap. The transaction fee structure payable by a bidder is set up to be less than the tender fee charged in the manual tender system. Results from an assessment of the project by businesses Companies that bid to supply products and services to the AP government were surveyed in a study. Users of the e-procurement portal reported a significant improvement over the manual system (see Table 10.3). The composite score has moved from 3.2 (satisfactory) to 4.3 (good). Travel costs incurred by the vendor have been lowered significantly by as much as Rs 1,444.55 per bid submitted. There is a reduction in the number of trips that the vendor is required to make to the department offices and a significant reduction in the waiting time spent by vendors to obtain the tender document. The impact on bribery is significant. On the whole, 83.7 percent of the respondents preferred the e-procurement platform to the manual system of tendering. Table 10.3: Client impact of the e-procurement portal in AP Manual Number of trips Waiting time (minutes) Elapsed time (days) Quality of service (5-point scale) Proportion paying bribe (%) Quality of governance (5-point scale) Composite score (5-point scale)

Computerized

Change

2.4 115.0 5.8 3.9

1.5 0.0 5.7 4.2

(0.9) (115.0) (0.1) 0.3

14.5

2.7

(11.8)

3.6

4.0

0.4

3.2

4.3

1.0

Source: Department of Information Technology 2007.

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Key lessons 1. The support of political leadership and the formation of a high-powered steering committee (project implementation committee) with a mandate to take decisions on all issues were important factors for successful implementation of the e-procurement project. 2. Insistence on a single mode of bid submission through the e-procurement platform was a decisive factor in the adoption of the system by suppliers. 3. A participative design process that involved workshop attended by department users and suppliers/contractors was used to draw user requirements. Subsequent training of users was a major factor in developing the application to the satisfaction of users. 4. The pool of CIOs from various government departments trained at IIMA, acted as change agents in implementing e-procurement. The pace of implementation accelerated with Chief Information Officers from different domains taking over as project champions. 5. Implementation needed enormous efforts in change management. The users were slow to adapt to the changes in initial period but the project ramped up once the users became comfortable with the new system. 6. The selected Application Service Provider (ASP) business model under PPP was helpful in scaling up the transactions during roll out, as the private partner has resources to meet the challenge. 7. A rational and affordable pricing model based on value and number of bids per tender is also very important for sustaining the e-procurement initiative. Cost to government with ‘No Cost’ to supplier in the pilot phase and cost to supplier with ‘No Cost’ to government departments in the rollout phase facilitated easy acceptance from suppliers in the early stages and speedy roll outs to government departments in the later stages. 8. Committed project teams from both the service provider and the government, 24×7 help desk, strong security features,

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deployment architecture and MIS have contributed to the overall success of the e-procurement platform in AP.

E-Procurement in the Republic of Korea In 1994, Korea joined the World Trade Organization’s (WTO) Government Procurement Agreement and there was a need to overcome the in-efficiency caused by redundant manual processing methods. Government procurement processes were time consuming and painstaking as they required a lot of paperwork and involved multiple agencies. For instance, the number of paper documents processed reached 4 million in 1997. It took an average of three to four working days to process each document, contributing to the inefficiency of the system. Unlike other countries where the e-procurement system was not part of a bigger agenda, the Korean government selected the e-procurement system as one of the main pillars of e-government. The e-procurement system was implemented in three phases from 1997 to 2001. In 1997, exchange and authentication systems were implemented for the introduction of the new system. By 1999 the introduction of domestic procurement and accounting systems were completed. The strategies for government procurement, Business Process Re-engineering (BPR) and Information Strategy Planning (ISP) for G2B were formulated simultaneously in 2001. The Korean e-procurement portal is aimed at serving as a single window that provides bidding information in the public sector and processes various operations from purchase requests to payments. The G2B project to support e-procurement was completed in August 2002. The public procurement service is fully equipped to carry out electronic procurement services. Online transaction accounts for 87 percent of all trading activities. Public announcements to invite potential suppliers to biddings, selection of successful bidders and electronic contract closures are handled real-time by the electronic bidding system. The e-procurement system was being used by 770 institutions and agencies. By the end of February 2002, 2.92 million suppliers had participated in 20,400 cases of electronic bidding.

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The system ensures fair and transparent procurement processes and provides services that are open to all. Procurement processes that used to rely on mail registration and personal visits were computerized. This created a paperless government procurement system as convenient as the e-marketplaces in the private sector. In fact a business culture that preferred personal contacts to electronic interaction was the major cause of corruption and had impeded active use of procurement information systems in the initial stages. The G2B system is expected to play a key role not only in the public sector, but also in the private sector by stimulating online trading markets.

Chilean e-procurement system (ChileCompra) In Chile, the Dirección de Aprovisionamiento del Estado (DAE), the central purchaser for the public sector, had weak control mechanisms, lacked a uniform legal framework and was burdened by various regulations of different government agencies prior to e-procurement. Each agency started developing their own procurement systems and procedures, but it was becoming difficult for private companies to keep track of differing requirement of agencies. Developing the Chilean e-procurement system in the context of the functioning of diverse public agencies was not easy. The bid for the design of the e-system was granted to a consortium made up of the largest Chilean telecommunications company, a well-known consulting group and the leading Chilean company in Internet-based applications. Although the e-system’s development was relatively straightforward, there were some problems with the consortium in charge of its design. These problems mostly were related to issues of how to reconcile the opportunities and possibilities of the Internet and related new technologies with the cultural and administrative realities of different public organizations and the Chilean government as a whole. Finally, in August 1999, an entirely Internet-based e-system as launched as a pilot programme. The Chilean e-procurement system focuses on providing adequate public notification and oversight and provides

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complete information on procurement operations. The interested companies can register themselves online and the public agencies can notify them about contracts or requirements via e-mail. The bidding results are also available online. After the launch of the Chilean e-procurement system, the role and functions of the DAE had to be redefined. In October 1999, the Government Procurement Act was signed by the president which strengthened the new system by allowing e-commerce transactions, creating a new and common legislative framework and replacing the DAE with a smaller agency. This new agency is no longer in charge of purchasing goods and services, but supervises the system, provides technical assistance and, for some commodities, negotiates aggregated contracts. In Chile, a strong political support besides resources to develop the system was needed. The implementation committee prepared a study that showed the efficiency gains of the new system would reach (at a minimum) USD 200 million per year which was sufficient to gain the support of the budget office. The committee also sought political and public support through the media outlining the benefits of the initiative in terms of transparency, efficiency and development of the country’s e-commerce capacity. Citizens were told that information about procurement operations would be available online for everyone, at any time, from anywhere and without censorship. Transactions could also be traced to the political officials responsible for them. To maintain political momentum and avoid political and bureaucratic resistance to the initiative, the committee created a board, including the director of the DAE and representatives from each ministry and government agency involved in the reform programme. The Chilean e-procurement system has resulted in substantial savings, creation of a better information market and increased transparency and accountability in a relatively short period after its establishment. The growing number of requests posted for bidding in the first five months demonstrated confidence in the new system and in January 2000, the project committee called for further development of the e-systems administration and development to expand its electronic commerce capacities. By June

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2001 nearly 4,000 firms in 75 different business areas were registered with the site. Although participation in the e-system was expected to be mandatory for all public organizations, after two years of operation, less than 18 percent of public procurement is notified on the website. This was attributed to weakening of political support and resistance from labour in the DAE. The reported savings in costs range from 7 to 20 percent. An evaluation of the project in 2006 (Bhatnagar 2007) reported that there was a general consensus among respondents that ChileCompra has resulted in the public sector being held more accountable for its spending. Focus groups and interviews revealed that it is possible for a supplier to verify and challenge why the government had rejected a bid in ChileCompra. However, ChileCompra was rated quite poorly on all the governance indicators by the vendors whereas the public sector agencies rated it as moderately positive. Public sector users responded that ChileCompra had somewhat reduced corruption while there was no such endorsement from private sector users. The survey recorded strong agreement from public sector players that the rules and procedures of ChileCompra were clearly stated, while only 26 percent of the respondents agreed with this from the private sector. Public sector players strongly agreed that ChileCompra tends to add transparency to public sector operations while weaker endorsement was shown from the private sector.

Philippine e-procurement system In the Philippines government, procurement system lack of transparency was a major issue. The federal government had little or no information about government procurement. The online Electronic Procurement System (EPS) was introduced in 2000 to provide comprehensive online information on procurement and bid opportunities. The EPS was patterned after the MERX Service (the Canadian government’s procurement site) and was eventually extended to support other aspects of the procurement process including direct purchases, bid submissions, central accreditation and payments. Even with high-level political support, the adoption

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of EPS in the Philippines was relatively slow and inconsistent. Agencies lacked adequate resources to support the introduction of electronic services, as only around 25 percent of the agencies trained on the EPS were ready for Internet services. An EPS Customer Service Area was created to assist and answer queries from government agencies and suppliers. Some public terminals were set up to provide access to EPS for those without computers or Internet connections. The issue of accessibility was considered a challenge in broadening the base for EPS. Resistance to change by PSDBM (Procurement Service Department of Budget and Management) employees and government agencies had also been an obstacle. The employees feared that computerization would result in job losses, whereas the agencies were concerned that they would lose control of their procurement authority and that major changes would be made to their procurement process. Internal and external marketing was conducted before and after the launch of the EPS. Employees were informed that an efficient system would result in more transactions and they would be trained to use the EPS. Government agencies, on the other hand, were told that the EPS is primarily for information dissemination and they would continue to handle their own bid evaluation activities. Support was solicited from the executive and legislative branches of the government, donor agencies and the private sector to encourage the use of the EPS service. It was important for the Philippines government to understand that EPS is a business solution and not simply a technology solution. Increased efficiency and business transactions will not materialize with the establishment of the EPS if the PSDBM does not improve its overall operations—including delivery time, quality of products and accounting procedures. The total cost to develop and test the Philippines pilot EPS was USD 400,000, shared by DBM and a Canadian agency. Five months after the launch of EPS, there were 71 bid notices posted on the EPS, and 86 agencies and 62 suppliers were registered. The EPS provided agencies access to another advertising channel— in addition to the newspaper and bulletin boards—at essentially no cost. The savings from reducing bid notice advertising in

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newspapers were substantial over time as more and more notices were published on the EPS. The EPS provided comprehensive and timely information online to all suppliers. Suppliers did not have to visit government agencies to monitor bid notices and with the bid matching feature of the system, suppliers could download the bid documents immediately. The case of Philippines shows that in a country with low Internet penetration and undeveloped IT infrastructure, taking small steps with manageable activities within a relatively short time-frame is a safe approach to adopting a new technology. This allows greater flexibility for tailor-fitting the system and formulating a long-term strategy based on the actual experience.

Key lessons from the four implementations E-procurement is not just about introducing a portal but it has a large impact on the way procurement activity is organized and controlled. Invariably e-procurement leads to some kind of centralization and standardization which is why it is resisted by many agencies. By conducting public transactions electronically through portals, it is possible to eliminate the physical presence (waiting in line, going to multiple offices) that is often required when conducting business with the government. Online transactions reduce the amount of time needed to complete these transactions and the expenses incurred. These savings allow the government to get better value for its money. Even a limited introduction of e-procurement can produce benefits such as in the case of Philippines where significant advertising costs were saved. Transparency and probity are increased by publishing government transactions online, thereby providing access to anyone, anywhere, at anytime. This reduces opportunities for discretionary use of public funds, increasing the impartiality and integrity of such operations. Additionally, having a traceable electronic record of transactions reduces the opportunities for corrupt practices and increases the accountability of public

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officials. The examples signify that the e-procurement system has in fact helped improve the efficiency and transparency of the process as well as cost-reduction, irrespective of the varying extent of use in various cases. In one of the Latin American countries during 2001, some journalists surfing the e-procurement site found the President had ordered towels for his presidential palace costing USD 500 each (around half the average yearly per capita income of the country). While not good for the ruling party’s credibility, this was a visible demonstration of the increasing transparency delivered by e-procurement systems. A comprehensive approach, as taken by the Korean government, which mandates the need to computerize individual processes like procurement, as an integral part of a national e-government initiative, can be a successful strategy. Providing constant support and training can be vital in promoting the use of a new system. For instance, in some countries a free national phone assistance service for suppliers and other users was built. It is a better strategy to build e-procurement systems incrementally on the basis of what has been achieved in the previous stage as it allows time and space for amendments to address shortcomings and for all stakeholders to adjust to the new system. Political support for the initiative and participation and negotiation among the key stakeholders (within and outside the government) is important for the successful implementation of such an initiative. Political will plays a vital role in the success of such initiatives over a period. The experience of Chile shows that after initial success, the participation did not grow even after two years of implementation due to the weakening of political support. On the other hand, political support in the Philippines is a driving factor in the successful implementation of the e-procurement system despite the dearth of infrastructure and low Internet penetration in the country. (This Case Study is based on E-Government in Korea 2003; Orrego, Osorio and Mardones 2000; Granados and Masilungan 2001; Estrada 2002; Bhatnagar 2003a.)

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10.3 Indian Customs Electronic Data Interchange (EDI) System Application Context An importer or exporter is required to be registered with the Director General of Foreign Trade (DGFT) after making an application and paying a fee. Registration with Reserve Bank of India (RBI) is also required for the allotment of the Reserve Bank Code Number (RBI code number). The exporter is required to quote his RBI code number on shipment documents and for further correspondence with RBI. Custom clearance of goods is the next major phase that requires document submissions and verifications. The process of customs clearance starts after the goods have reached the customs area/station. The shipping bill or Bill of Entry1 along with other documents such as invoices, packing slips, excise challans, etc. are submitted to the customs authorities by the clearing agent.2 The customs authorities scrutinize the papers and submit it for appraising at the dock. The appraiser/customs officer physically checks the goods and after due satisfaction passes the consignment. The shipping bill/Bill of Entry is duly signed and stamped by the customs authorities and provided back to the clearing agent/exporter and thus serves as a proof of shipment. In the manual system, the issuance of the licences took more than 45 days (AFACT Year Book 2006). In some cases, the time taken for clearance and verification of the licences was as high as six months (Shrivastav Undated). The process of custom clearance of imports/exports was also marked by arcane procedures. In a typical export procedure there are a number of inspections of The shipping bill is a document which contains full details regarding export consignment and is prepared by the exporter or the clearing agent. It contains information such as name and address of exporter/importer, port of loading, port of destination, description of goods, weight, monetary value, etc. A similar document required during the import of goods is called as the Bill of Entry (B/L). 2 The Customs Clearing Agent undertakes the work of clearing the goods from the customs authorities. The clearing agent prepares/procures documents such as the invoices, export inspection certificates, packing slips, etc. 1

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documents and goods. A number of additional documents such as invoice, contract and GR form need to accompany the shipping bill. A clerk at Central Board of Excise and Customs (CBEC) assigns a serial number to the shipping bill along with the date of assignment. An appraiser or superintendent further scrutinizes the shipping bill before submitting it to the assistant or deputy commissioner, who verifies all information before affixing the signature to the shipping bill. Under the manual system, an average Indian exporter was required to sign more than 150 times on different export clearance documents and it took up to 15 days to complete the export procedures. Similarly, the procedure of import clearance was also timeconsuming. The Shipping lines/steamer agents/carriers file the Import General Manifest (IGM) in accordance with Section 30 of the Customs Act, 1962. The import manifest is required to be submitted prior to arrival of the shipment and gives itemwise detailed description of the goods brought by the concerned vessel. After filing the IGM and on arrival of the goods, the Custom House Agent (CHA)/importer file the Bill of Entry (cargo declaration) in terms of Section 46 of Customs Act, 1962. The first stage for processing a Bill of Entry is noting/ registration of Bill of Entry (B/E). The B/E is then forwarded to the concerned appraising group in the custom house dealing with the commodity sought to be cleared. The assessing officer in the appraising group assesses the duty liability, taking due note of any exemption or benefits claimed by the importer. If no further inspections are ordered, the B/E is finally assessed and the importer deposits the duty calculated with the nominated banks. After assessment the B/E is passed on to the Shed Appraiser/ Superintendent for examination of goods along with the B/E. The Shed Inspector examines the goods and enters their report on the B/E with the signature of the importer/CHA in token of examination in his presence. After completing the examination of the goods, the shed Appraiser/Superintendent would give order for ‘Out of Charge’. After issuing the Out of Charge order on the B/E, the importer presents the same to the Custodian who in

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turn issues the gate pass after verification of the correctness of Bill of Lading3 and the number of packages. The importer/CHA presents the importer’s copy of the B/E and the Custodian Gate Pass to the Customs Officer at the gate while taking the goods out of the customs area. The goods have to be cleared from the customs area within a stipulated time—usually three working days. If they are not so removed, demurrage is charged by port trust/ airport authorities, which is very high.

A New Approach The Indian Customs Electronic Data Interchange (EDI) System (ICES) was conceived in February 1994 as part of the customs modernization programme to overcome the cumbersome manual procedures. The Sperry system installed then had outlived its utility and the era of the paper-less office had just started. A system study conducted by the department led to the development of an online assessment and clearance system for import and export cargo. The air cargo unit of Delhi Customs was taken up as a pilot site where the implementation of the import module and later the export module was completed by November 1996. Figure 10.1 explains the network of institutions and hardware as it works at each location. Different cities are not networked as yet. The National Informatics Centre (NIC), a government agency, developed the software. Their network, called NICNET, has been used for data exchange. At each location fault-tolerant hardware consisting of standby servers, mirrored disks and dual networks has been provided. The uptime of the systems in five years has been 99 percent. An electronic Bill of Entry can be lodged by Cargo Handling Agents (CHA) from their own premises or a Service Centre (SC) created for the purpose at a location away from the Customs House. The appraising officer of customs accesses the document online and their approval is communicated to the Bill of Lading is the receipt issued by the shipping company to the exporter when the goods are accepted for shipping. 3

262 Unlocking E-Government Potential Figure 10.1: A schematic view of customs online Service centre or premises of CHA

NIC BDI server

Customs House

MODEM

RES package Communication Software

NICNET

UNIX server running Oracle

BANK

Bank counter

Air cargo warehouse

• • • • • •

Serve the view to the node Sequences the flow of each CHA document Provides info on duty structure Needs to be updated locally Provide reports on operative performance Data warehouse for mining

Source: Author.

CHA electronically. The system provides for clarification of doubts by exchange of queries and replies between customs and the CHA. Acknowledgement, queries and status are delivered at SC and responses of CHA are input at SC. Afterwards, approval duty can be paid at designated banks linked with the ICES system on EDI. The only interface between customs and the CHA is at the time of collection of goods where a concept of ‘green channel’ has been introduced. The system provides for waiver of physical examination on the basis of the importer’s profile stored in the system. In case of export, the duty drawback is credited to the exporters account in a designated bank. The ICES provides connectivity with other systems such as the Airports Authority of India-operated warehouses, Container Corporation of India, RBI, Port Trust and the Department of Foreign Trade. For a typical import consignment, the CHA has to perform tasks such as the following:

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[The clearing process can start only after the cargo arrival notice containing the Import General Market (IGM) number is received.] 1. Submit Annexure 2 plus a copy of invoice plus a copy of airway bill at the counter and get a job slip containing the job number by paying Rs 50. 2. Wait for one or two hours to collect the checklist placed outside in trays. 3. After verifying and signing the checklist, give it back at the same counter. 4. Find the status of the job periodically at the appropriate counter. 5. Collect three copies of the Bill of Entry and the copies of TR-6 challan and examination order from the printer after the Bill of Entry is assessed. 6. Fill up the challan and submit in the bank branch counter along with the necessary payment. 7. Get back the copy of the challan duly stamped and signed. At this point, the Bill of Entry gets detached. 8. Move to the cargo terminal and follow the next steps. 9. Present the delivery order and all the originals of the customs document in the International Airports Authority of India (IAAI) area to seek information on the location from where the packet(s) has to be obtained for physical check. 10. Get the packet examined by an inspector in the examination area. 11. The inspector, after finishing the examination, feeds the report into a computer. Then the appraiser verifies the report and signs and gives an Out of Charge (OC). 12. Submit paper to the airport authority for calculating the demurrage and handling charges. Pay the challan by cash or by debiting from Provisional Duty account (PD). 13. Submit all documents to get a gate pass. The gate pass is printed in duplicate. One copy goes to the handling agent with loader number.

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Implementation Challenges The implementation of the project has been delayed. Even after nine years only 33 of the envisaged 73 modules have been developed. Only 23 of the 29 ports have been covered. As project leaders and teams have changed, it was discovered that the documentation of procedures and systems was less than adequate. The department has had to completely rely on the implementing agency for all technical issues. The implementing agency has not turned out to be equal to the task of building a complex system. Security aspects have not been adequately handled resulting in fraudulent payments in one of the offices. Even though the top 120 officers of the department have been exposed to economic liberalization, change management and e-governance, in a three-day workshop conducted by the Indian Institute of Management Ahmedabad (IIMA), training efforts at other levels have been inadequate. The full potential of data analysis for policy formulation has not been made as all the systems are not interconnected and therefore data collation has been a problem. A citizen’s charter has yet to be implemented although tools for measuring and reporting performance exist. The systems run well at some places because the commissioners use the information thrown up by the system for monitoring. At other places such involvement is lacking.

Benefits and Costs It is estimated that the ECSI system now accounts for 85 percent of trade and contributes nearly 80 percent of the customs revenue (Central Board of Excise and Customs 2005). About 0.25 million importers and exporters are using the system for filing their declarations either themselves or through Custom House Agents. About 4.5 million declarations are processed under ICES annually. Varieties of information access channels are available to the trading community through enquiry counters, touch screen kiosks, interactive voice response system, SMS on GSM mobile phones, service centres, helpdesks, help mails and

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web-based systems, etc. (India Progress Report 2006). Extensive re-engineering of processes has been done thereby reducing the number of processing stages for imports from 18 to 6 and for exports from 15 to 5. A major benefit of the system is that it enables measurement of service levels. It is now possible for supervisors to monitor processing delays. If an inspector is raising unnecessary queries this becomes evident. The system was supposed to lead to a reduction in processing time. However, actual results have been disappointing. A check at one of the ports found that only 12 percent of the bills were being cleared in three days, the stipulated time in the citizen’s charter. The system has resulted in increased transparency as all bills are handled on a first-come-first-serve basis. Dues can be collected early and payment of duty drawback is directly credited to a bank account. The payment of ‘speed money’ and collusion between the CHA and inspectors to evade duty has lessened. However, some of the later stages of physical examination still provide an opportunity for interaction between the inspectors and the CHA in a process that is not guided by a computerized rule. The system can help in policy formulation through flexible analysis of data at the board and central government levels. A tight band of prices for each commodity can be specified by collating the declared value at different ports of entry and exit. Transactions that are out of norm can be investigated. Incidents of dumping can be spotted at an early stage. If tabs are kept on the products that tend to get classified wrongly, a richer documentation can be provided to the CHA on product classification. Exchange of electronic documents with RBI and other organizations has become feasible. For a while the success of the system in a few locations had become a source of pride for the department.

Key Lessons Systems that build operational dependence can not be easily rolled back once they are implemented successfully. In case of

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the ICES, adequate investments were made at one go as funding was not a problem. In other departments, a problem of creeping commitment arises as project managers ask for less than what is required, apprehending that the project may be turned down if the entire requirement is disclosed at one go. In spite of this advantage, the time taken to develop and rollout the system was more than expected. Several success factors identified in other case studies also hold true here. The extent of re-engineering, clarity of benefits and reducing direct contact between customs inspectors and cargo handling agents have contributed to the success. A large effort of education for the CHA had to be mounted. In the new system all information must be fed in correctly the first time. It is time consuming and expensive to make corrections later. The EDI has not been implemented at all locations, necessitating the constant presence of an agents’ representative at the service centre. The web has not been exploited. Detailed guidelines on product codes have to be made available on the web so that items do not get classified wrongly. Independent feedback from the CHA on the performance of the new system has not been obtained and, therefore, the success can not be fully measured. The overall complexity of the project seemed to have been underestimated. The department lacked an adequately trained Chief Information Officer who could conceptualize and implement a complex system of this magnitude. The choice of partner can also be questioned. The NIC did not have the experience of implementing a large-scale operational system. The quality of analysis and design were found to be weak. Even though a state agency was used as a partner, the system has turned out to be expensive because of delays in implementation. For complete success, the department will have to see itself as a trade facilitator rather than a mere tax collector. Such a change will be slow to come about even though the top management continuously talks about this new role (This Case Study is based on Workgroup on IT Audit 2002.)

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10.4 Computerization of Interstate Border Checkposts in Gujarat Everyday nearly 25,000 trucks pass through the 10 interstate checkposts in Gujarat in India. Many of these trucks are overloaded far beyond the permissible weight. The manual system lacked the capacity to check every truck and often those trucks that were found to be overloaded could avoid penalties by paying bribes. Through the use of computers and other electronic devices at these checkposts, a team of savvy public officials have significantly increased the revenue collected through taxes and fines and made a small dent in corruption. However, the system faltered after the early champions moved to other departments.

Application Context Gujarat has an extensive road network, carrying a large volume of commercial traffic. Major highway systems link Delhi to Mumbai and provide the principal link to the Kandla seaport on Gujarat’s west coast. Gujarat’s 10 checkposts are positioned at the border with three neighbouring Indian states. Nearly 25,000 transport vehicles enter daily through these checkposts. Trucking companies want to maximize their earnings from each vehicle. Often this has prompted transporters to load their trucks beyond permissible axle loads, creating a serious safety hazard. The central excise and state sales tax is levied on the basis of a record of the weight/count of manufactured goods that are shipped out from the factory or shipped to a trader. Yet the number of trucks despatched in a day is the primary basis of this assessment. Thus, by overloading trucks manufacturers have evaded excise duty. (Some estimates are that 80 to 90 percent of vehicles are overloaded.) The Gujarat Motor Vehicles Department (GMVD) controls road transport activity in Gujarat. While the broad policies are laid down by India’s central government in the Motor Vehicles Act, state governments are empowered to determine the penalties

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for infractions and procedures for enforcement. Nevertheless, state governments typically have been ineffective at reducing the number of overloaded vehicles. Inspection of 100 percent of commercial vehicles has been impossible and checkpost inspectors have been notoriously corrupt. The GMVD department has 137 inspectors, of whom 27 were on suspension (under scrutiny for corrupt practices). It is common knowledge that inspectors’ posts at lucrative checkposts can be bought for as much as Rs 10 million. In Gujarat’s traditional checkpost system a suspect vehicle is flagged to a stop and then weighed on a weigh bridge located away from traffic. The legal penalty for overload is Rs 2,000 per ton. However, a fine is often illegally negotiated. Inspectors are also expected to check for the driver’s interstate transit permit and that the state’s annual road tax has been paid by vehicles registered in Gujarat. Corruption by departmental inspectors at these checkposts has led to harassment of truck drivers and loss of revenue to the state. The problem of corruption was particularly difficult to attack as the corrupt were backed by politicians. In the absence of any systematic inspection of vehicles, transport companies also adopted various illegal practices. Duplicate copies of a single registration book from the Regional Transport Office (RTO) have been used for many different vehicles with fake licence plates.

A New Approach When P. Panneervel became the commissioner of the Transport Department in 1998, he was determined to introduce greater efficiency and root out corruption. First, he introduced Smart Card driver’s licences. His next IT project was to use computers and communication networks to collect fines from overloaded vehicles. In the computerized process, all the checkposts are monitored at a central location using video cameras. The video camera captures the registration number of all trucks approaching the checkpost. (There are floodlights and traffic lights which make the checkposts appear like a runway at night.) A software converts

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the video image of the registration number to a digital form and the details of the truck are accessed from a central database. An electronic weigh bridge captures the weight and the computer issues a demand note for fine automatically. Drivers can use a stored value card for payment. With each revamped checkpost a ten-lane approach road of 1.3 km has been built to receive vehicles. Each lane has a video camera positioned high on a pole with a proper protective casing. There is a control room with two servers—the database server that transmits the vehicle data through a 64 kbps leased line and a video server that captures and relays the video images frame by frame to a central server at the RTO. Power to the system is assured by dedicated lines from the State Electricity Board, backed up by a high-capacity generator and 72-hour back-up UPS. The video capture and transmit process (known as SIPCA— Satellite Image Processing and Capturing unit) has been supplied by a subsidiary unit of Phillips. The software for licence tracking and the weigh bridge equipment is also by Phillips. The RTO has an IBM server with DB2 Relational Database Management System (RDBMS). Operators who man the cabins are from the private sector. Although GMVD employees have been trained to operate the new equipment, they are not operating the key nodes at the checkposts. A database of all the 0.5 million commercial vehicles registered in Gujarat will be created at the head office in RTO premises. A powerful IBM server (AS 400) is installed there with DB2 as the RDBMS. With the vehicle’s registration number, the database can retrieve information on the make of the vehicle, whether its national permit exists and is valid or is insured, whether the vehicle tax has been paid, and so on. The operators at the checkposts essentially perform the following checks: levying penalty for overloaded or over-dimensioned commercial vehicles passing through the checkpost, verification of essential documents like the Vehicle Registration Book, driver’s licence, permit to enter the state or the National Permit, Pollution Under Control Certificate, insurance documents and delivery documents, inspection of the vehicle to check for broken or damaged headlights, non-standard licence plates, etc. and collection of tax dues, if any.

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Once the vehicle arrives at the weigh bridge, the unladen weight, the actual weight, the amount of overload and the fine that must be paid is displayed on an electronic (plasma) board. In this way the process is made wholly transparent to the driver. Drivers hold pre-paid cards (in denominations of Rs 2,000 or Rs 5,000) that are used for paying any penalty. This card costs Rs 50. If the driver cannot pay the penalty, the vehicle must be parked in a designated parking lot. The RTO inspector confiscates the vehicle’s registration documents until the payment is made. Future plans include integrating payment of sales tax on the goods carried by the vehicles.

Implementation Challenges The new system has had teething problems. The central database is being still built and it still does not hold the requisite details for many vehicles. Hence, the operator uses his judgement and, depending on the make of the vehicle, selects the permissible weight from a drop-down selection box. The leased line (64 kbps) connectivity is currently available at only two checkposts (Shamlaji and Bhilad, the two largest). The centralized video monitoring is, therefore, not working properly. In some checkposts inspectors still harass drivers to extort bribes. The writing and pattern of licence plates is often non-standard and not in compliance with the law. Hence, the licence tracking software has not worked properly (only about 35 out of 5,000 numbers were read accurately). Now trucks with non-standard number plates are required to replace them at the checkpost. A vendor is available to make the change for a fee. Initially, the system issued manual receipts with limited information since the automatic receipt generated by the computer, without the signature of an officer, was not legally valid. With the passage of the Central IT Act, the RTO’s signature has been digitally incorporated on the receipt. Data on the number of vehicles crossing the checkpost suggests that some vehicles have begun to divert through longer routes

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in adjoining states to avoid the penalty. Implementing similar systems in other states could plug the loophole.

Benefits and Costs Notwithstanding the implementation difficulties with the new system, the inspection of all vehicles produced a three-fold increase in tax collection in the first two years. The number of commercial vehicles passing through the checkposts is estimated to be more than 16 million annually.4 During the period 2000–01 to 2004–05, there has been a growth of 26 percent in the number of violations being detected and a corresponding growth of 21 percent in the penalty collected. The revenue earned from tax dues collected at the checkposts grew by 13 percent in the last year. The total investment on the automation of 10 checkposts was Rs 625 million which included Rs 185 for electronic weigh bridges, full system automation of lanes, PCs and servers, routers, video equipment and other automation devices and about Rs 440 million for civil works like widening of the highway. The operating expense for the last three years is about Rs 18–20 million per annum. In 2004–05 the penalty collected on account of violations of transport norms by commercial vehicles was Rs 2,872.6 million. Thus, the state government earns a contribution of Rs 2,850 million a year indicating that the revenue earned by just one year of operation was sufficient to pay for the investment. On an average, vehicles were expected to be cleared in two minutes but take about 20 minutes instead of 30 in the manual system. Harassment of truckers continues, though, abetted by the problems with the video monitoring system. Large and medium transport owners are happy with the system because they come to know the exact date and time their drivers passed a checkpost. The pre-paid card means that the driver does not have to carry much money. About 30,000 vehicles enter the state everyday, of which 80 percent are commercial transport vehicles. Gujarat has about 637,292 commercial transport vehicles (by March 2004) which cross the state border at least once a month. 4

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However, an independent evaluation of the project conduced after one year of implementation found that the impact on transparency and corruption had been poor. Corruption continues unabated. A bribe of USD 1 is being charged from every driver and a third of the overloaded trucks are allowed to go without fines. Bribes collected from such trucks average USD 3 which is only 10 percent of the fine that should have been collected. Another evaluation in 2006 base on a survey of drivers of trucks crossing the computerized checkposts of Gujarat reported a reasonable improvement over the manual system. Their overall evaluation of the manual and computerized systems (see Table 10.4) on a five-point scale has moved from 3.5 (satisfactory) to 4.3 (good). Time spent waiting at the checkpost has reduced and the proportion of truck drivers who had to pay bribes has come down marginally. There has been a perceptible improvement in the quality of governance and in service quality. Among the respondents, 91.25 percent preferred the computerized system over the manual system.

Key Lessons Although the corruption that has been so common at the checkposts was supported at the level of politicians and senior bureaucrats, Panneervel was able to capitalize on the support of a new Chief Minister and IT Minister who were interested in rooting Table 10.4: Client impact of computerized checkposts Manual

Computerized

Improvement

Waiting time (minutes)

29.7

20.7

8.9

Quality of service (five-point scale) Proportion paying bribe (%) Quality of governance (five-point scale) Composite score (five-point scale)

3.7

4.2

0.6

20.4

14.2

6.3

3.3

4.2

0.9

3.5

4.3

0.8

Source: Department of Information Technology 2007.

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out corruption and also raising more revenue. He made commitments to increase revenue in selling his proposal. The promoters of the private sector system employed by the department are known to be closely associated with the transport and IT ministers. In situations such as this, pragmatic bureaucrats have had to operate skilfully to ensure that the procurement of these services is carried out fairly. To root out corruption, automation has been used to reduce the discretion of manual operators to a minimum. Education of clients (drivers and transporters) about the operation of the new system is a key to stop any harassment. The total revamping of the checkpost area has helped in selling the concept to truckers. The new system could be used by the sales tax department of the state which must monitor the movement of goods in the state, as well as trans-shipments. This might require that documents carried by truckers be made computer readable (bar coded). The government is already working on a Smart Card based registration card. However, coordination across departments is difficult and resisted by the senior bureaucracy. Judged on the basis of the revenue increase, the application was perceived to be very successful. However, after the transport commissioner who implemented the project was transferred out (in one year), many components of the application have been disabled. The private operators who were manning the kiosks have left as their contract was not renewed because of a dispute on the quotation. A recent evaluation study indicated that revenue collection continues to be at USD 50 million in spite of the system not working. Failure of the system to curb corruption and sustain itself can be traced to factors such as: 1. The expectation of a short tenure led the transport commissioner (project champion) to force the pace of implementation and complete the whole task in nine months. Even though the equipment to automate the entire process was installed, many software and procedural elements could not be put in place in the short period. For example, the software to extract the registration number

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from the video image of the plate could not be debugged and fine-tuned. The maintenance contract for the private operator beyond the one-year warranty period was not finalized. A database of trucks was not created because of other components not working properly. 2. The corruption at checkposts is not purely administrative and one-sided. There is a clear case of collusion where overloaded trucks like to avoid a fine through payment of bribes. Such a situation requires complete and foolproof automation, where there is no gatekeeping role or manual discretion. Such systems also require a great deal of effort in changing attitudes of affected employees through change management. Intensive physical supervision for the first few years is necessary to institutionalize the change. 3. Finally, computerization alone was not sufficient to tackle corruption. There was no effort to place this application in a broader context of departmental reform or a drive against corruption within a wider range of departments of the government. The political support that the application enjoyed during the first year of implementation was taken away because of a change in leadership. In conclusion, the application was focused on the narrow purpose of increasing revenue. It did not build benefits for a variety of stakeholders, such as truck drivers, transportation companies and inspectors. There were many vested interests which bounced back after the political support was withdrawn. (This Case Study is based on Centre for Electronic Governance 2002 and Panneervel and Bhatnagar 2001.)

11 Case Studies on G2G Applications in E-Government This chapter includes two case studies of e-government applications covering different types of services offered by government agencies to other government departments or to internal employees. Similar applications have been implemented in some other states in India. The impact of one of these applications has been studied systematically, and, therefore, it is possible to make a judgement about its success. The other application has not been fully implemented even after seven years of effort. Both cases have shades of successes and some elements that have not worked so well. There is learning to be derived from both successes and failures. The cases are structured to present the problems with earlier manual methods, the details of the new approach, implementation challenges that were faced, costs and benefits delivered and the key lessons that can be learnt by others who wish to implement e-government systems. Both the cases exemplify many of the critical success factors discussed in Chapters 4 and 5. Section 11.1 describes the Sachivalaya workflow computerization in Andhra Pradesh (CARING Gov). Computerized work-flow projects are very attractive for government agencies dealing with a large number of files and their movement across different departments. The application was developed in partnership with a private partner with the intellectual property being owned by both the government and the private partner. The application is being implemented in a few other states in India after some modifications. The case was documented in 2004. It presents a snap-shot after two years of implementation. Section 11.2 describes Khajane—computerization and networking of government treasuries in Karnataka. Computerization

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of individual treasuries at district and taluk levels was done in the last two decades in many states. In many countries Integrated Financial Management Information Systems have been implemented which essentially begin with treasury computerization. Khajane has networked all the treasury offices in the state. It serves tens of thousand government officers and a large number of pensioners. The impact of the project was assessed in a systematic way in 2006. The results are incorporated in the case study. The purpose of including these cases is not to pronounce them as successes or failures. In fact, the degree of perceived success may change as time progresses, project implementers make way for new teams and political support weakens or strengthens. These cases do not merely present facts at a point of time, but include analysis of the process of developing these applications to provide learning for those who will strategise and implement e-government in different contexts in the future. The cases are not intended to serve as best practice examples that can be replicated in other contexts. Readers are encouraged to seek more details in case a similar application is to be implemented in another context.

11.1 CARING Gov—Andhra Pradesh Sachivalaya E-Application The Government of Andhra Pradesh (GoAP) has been a leader in deploying e-government applications for delivery of services to its citizens. In pursuit of its commitment to usher in SMART (simple, moral, accountable, responsive and transparent) governance, the GoAP in partnership with Tata Consultancy Services (with IPR equity ratio of 20:80) developed an innovative and futuristic product called the Secretariat Knowledge Information Management System. Rechristened as SmartGov, the application builds an electronic workplace that integrates workflow and knowledge management in a secure and collaborative environment. In 2004 the name was changed to CARING Gov with the acronym CARING standing for Committed, Accountable, Responsive, Inspiring, Nationalistic and Genuine Government.

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Application Context In the six months since its launch in November 2002, the implementation of CARING Gov had moved at a steady pace despite obstacles in terms of user resistance to change. The Chief Secretary’s office, the Chief Minister’s office and 12 departments had begun to use CARING Gov. As per the status reported by the application, 64,118 current and 19,952 electronic files were being processed on CARING Gov on May 8, 2003. CARING Gov was to be extended to district-level offices, to provide a complete e-governance network that would have enabled seamless information flow across different units of governance. However, such an extension did not happen and citizens still do not have a transparent and responsive government interface at the policy making level. The CARING Gov application is at various stages of consideration and implementation in several other states in India such as Jammu and Kashmir, Gujarat, Kerala, Tamil Nadu, Rajasthan and the Union Territory of Chandigarh. The Andhra Pradesh Secretariat is organized into 33 departments that are further divided into wings and sections. A large volume of communications is generated at the Secretariat every day (the average per day was 2,515 pages). Files related to establishment, proposals from 64 government departments, citizen requests (such as for construction of bridges or opening of private schools for aid from the Chief Minister’s Relief Fund, etc.) are processed on a regular basis. For example, at one point, during a fortnight, the Secretariat was dealing with 21,749 files of public importance, 10,295 files on court cases, 21,111 files on service matters and 29,438 files on other matters such as audit para and request for extra budget allocations. Information flow in the form of physical files from one government officer to another is massive. Manual processing of files involves several steps and is a long-winding affair. Dozens of officers read through the files and make comments before a decision can be taken. Moreover, the speed of movement depends on the whims and fancies of the individual officers. Citizen requests are serviced at a slow pace,

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and often citizens practically move with the file and end up paying speed money during the process. Files are often opened indiscriminately. On an average 15,000 files are opened every fortnight. Information is not shared across departments and some times intra-departmental sharing is also absent. Besides, there is duplication in the opening of files. This results in different decisions for similar issues. Sometimes new files are created for a consideration even when prima facie the requests are not actionable as they may contravene an existing order or policy. For example, transfers are requested during a transfer ban period or financial sanctions are sought when there is a freeze of funds. The quality of work on a file is dependent on the experience and knowledge of the officer involved. An efficient officer is one who remembers precedents, rules and procedures. Such officers are sought out and usually feel a misplaced sense of power. On the other hand, errors and omissions in decision-making have resulted in embarrassment, such as the government losing court cases. Files have been found to languish for as long as two years with an officer.

A New Approach In January 2001, the GoAP signed a contract with Tata Consultancy Services (TCS) for a landmark assignment for the development of the Secretariat Knowledge and Information Management System (SKIMS). This was later renamed CARING Gov. In the manual system, incoming correspondence was entered into a register, then sorted according to dealing assistants and moved physically. Under CARING Gov, in case of a hard copy, the document is scanned into the system. The system automatically generates a number for the file and sends this file to the mailbox of the concerned section officer. The drafting procedure is completely electronic. The user simply clicks on the note file link on the left navigator of an e-file and enters the notes under the pre-defined note file headings. By scrolling back and forth, it is easy to see the history of

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these comments, that is, the date and time of entry of comments along with the commenter’s profile. CARING Gov encompasses an automatic system of maintaining checks and balances. For instance, budget data uploaded at the start of the financial year is automatically updated when release orders against the budget for each project/proposal are issued. If the balance budget with the finance department is zero, then the system prompts the user and the file cannot be sent to the finance department. Similarly, if the balance available with the department is zero and the department tries to sanction funds, then the user will be prompted and sanction will be stopped. These checks are done at the data entry level itself, so as to avoid the unnecessary circulation of the file to higher levels within the administrative department. Other prominent changes include: 1. Automated prioritization engine for assigning priority based on the importance of the subject and aging of the file. 2. Automated reminder mechanism. 3. Automated generation of routine drafts. 5. Reduction in the number of steps through structured workflows and introduction of checklists. 6. Introduction of the milestone concept for reminding senior officers about important activities. 7. Introduction of form-based decision processing for matters that do not have any subjectivity involved.

Implementation Process A team of 30 core technology specialists from the TCS was trained at the state government’s Institute of Public Administration on all Secretariat office procedures, explaining manual and business rules at length. In addition, several brainstorming sessions were held with the IT secretary. For each department, executive sponsors were identified from amongst senior civil servants to provide strategic direction regarding the requirements for CARING Gov. Department

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champions were identified from amongst middle-level officers. Data processing officers (DPOs) were appointed to provide support during implementation. One DPO was identified for every five sections in each department. To increase the confidence and comfort level of users and make them feel involved in system design, information was collected from around 2,000 users. Brainstorming sessions were conducted with each user group that dealt with specific applications to give users a feel of what was going to come in electronic form. Four hundred and eighty-three applications in the category of core, common and department-specific applications were identified.1 In addition, an application called the Generic File Processing Application was developed which caters to around 910 subjects. A human factor laboratory was set up to run the initial prototypes of CARING Gov through government secretaries and other users to test the usability of the application. Change management workshops were organized before the implementation of CARING Gov. A total of 10 programmes with participation from 40 middle-level officers (deputy secretary and assistant secretary) were conducted. In the next phase CARING Gov was to be extended to 10 heads of department, and finally to all districts and mandals (an administrative level below a taluk). A unified file management system For example, the tasks in the Information Technology and Communication Department were identified as training, application to define protocol for visiting dignitaries, monitoring of projects, arrangements for promotional visits, empanelment of agencies for IT promotional material, procurement and monitoring of promotional material, procurement of electronic equipment and register for monitoring the allotment of electronic equipment. Similarly, in transport, in the Roads and Buildings Department, they were information based on R & B land and buildings, information based on roads and bridges, processing of project proposals, processing of proposals on repairs/maintenance of roads and buildings, processing of proposals seeking exemptions from vehicle tax, performance monitoring of ports, processing of proposals of RTC schemes, information base on seaports and airports, funding status of projects, monitoring of project progress, processing requests for establishment/privatization of airports, information based on RTC routes, processing of proposals on railways and processing of proposals for reimbursements from RTC.

1

Case Studies on G2G Applications in E-Government 281

was to be introduced. It was anticipated that citizens would then be able to track the progress of their requests through a single file number and check the status of the file on the Internet. The GoAP also planned to install a kiosk at the Secretariat reception. Citizen representations would be scanned, an automatic number generated and the files transferred to the concerned department. The status of files could then be monitored at the kiosk.

Implementation Challenges The TCS team had an aggressive deadline to be met. Addressing the needs of around 2,000 potential users, the team covered 3,500 subjects and read, recorded and coded 100,000 files of data. Employees resisted the change due to factors such as perceived loss of power, fear of losing jobs and problems related to insufficient hardware. The lack of usage of CARING Gov by some senior officers sent a signal that they were not encouraging the initiative. There were too many vendors in the fray. While one service provider looked after network maintenance, another handled hardware maintenance. TCS was responsible for software development and implementation. If there were hardware or network problems, TCS was obligated to ensure smooth running of the system. This took away time from TCS’s primary responsibility of fine-tuning the software. As most users are accustomed to reading paper documents, reading documents on screen posed a challenge. Officers did not get a sense of attachment to government orders as they could not physically sign the document. Similarly, some officers were not used to electronically forwarding the files to other sections as their subordinates had been managing the routing in the manual system. Other officers felt that they could sign a physical file within seconds, whereas it took more than a minute with CARING Gov. In addition, typing skills—a prerequisite in using CARING Gov—were not easily acquired by most of the officers.

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Feedback on CARING Gov was collected from the participants. For certain features, conflicting requirements were received from different officers and, therefore, changes could not be made on an immediate basis. Due to the large user base, communicating the closure of change requests was a major challenge. However, the feedback mechanism in CARING Gov helps track change requests, thus increasing credibility and respect. The timing of the training also created some problems. After their return, trainees from earlier batches found that they had to still use the old manual system since CARING Gov was to be introduced after the training of all employees had been completed. By this time the earlier batches had lost their enthusiasm and a refresher course had to be organized at the workplace itself. Deployment of hardware, getting the software loaded into the systems and, finally, getting the employees to operate was a difficult task for the Department of Information Technology and Communication. The number of PCs installed was inadequate. In some departments, one PC was shared among three people, drastically reducing the efficiency of these officers. As a result, files were scanned, printed and sent physically across departments instead of being electronically transferred. Certain technical problems continued to persist. For instance, there was a fear that once the system became fully operational, the network would become clogged. A clear-cut policy on space management and archive mechanisms like closing and retrieving the files had yet to evolve.

Benefits and Costs CARING Gov is a simple tool that reduces time and effort. It automates routine matters like workflow and file numbering and lets employees perform more value-added work. Time wasted in typing and retyping the drafts is avoided. Employees benefit from transparent creation, movement, tracking and closure of files. CARING Gov introduced the GoAP employees to a corporate work culture.

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Six months after the launch of CARING Gov in November 2002, more than 50,000 current and 17,000 electronic files had been processed in CARING Gov. Further, more than 37,000 back files had been digitized and stored. A knowledge bank of more than 20,000 pages of Acts, rules and references had been included. According to a time-and-motion study of the manual and computerized processes, in the manual system a file along with a draft letter or order takes 22 hours to complete its journey. But using CARING Gov the same type of file should take hardly 2 hours 40 minutes to be ready for dispatch. The total hardware cost of the project, borne entirely by the GoAP, is Rs 193 million. A three-year contract for maintenance of hardware was expected to cost Rs 15 million. The entire cost of the application software estimated at Rs 45 million has been borne by TCS.

Key Lessons CARING Gov introduced a paperless file processing system in the state Secretariat to cut down processing times, improve quality of policy decisions and reduce corruption. Discretion to accelerate or stall the movement of files was taken away from lower rungs of civil service. The creation of unnecessary files that increased the processing burden was lessened. Time for processing files was reduced. The process of commenting on the files was formalized. In 2004, the system was in its early stages of implementation. It was, therefore, difficult to judge its impact on transparency and corruption. Since the new system was not in the public domain, most citizens were not even aware of the changes being ushered in. Effort was directed to getting the Secretariat staff to use the system so that all files were handled electronically. With such usage there could be an impact on petty corruption. Some monitoring was still needed to identify the remaining pressure points and loopholes so that these might be plugged in subsequent revisions.

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Although the change from the manual to the automated CARING Gov system was done to make the task of information flow easier, there was initial resistance to change on the part of many employees. They feared loss of jobs or perceived loss of power due to these changes. Most employees found the manual system more flexible and, therefore, resisted the change to a rigid automated system. Employees who showed enthusiasm in using the system were the ones who liked the idea of working with computers. The introduction of any new system within an organization needs to be preceded with requisite training and orientation programmes. The end user needs to be intimated and prepared for the forthcoming changes in the system to minimize the resistance to change. In the case of CARING Gov, the stakeholders and the potential users were involved in the project right from the start. The vision of the GoAP towards bringing in CARING government was clearly spelt out, and extensive presentations highlighting the old vis-à-vis the new system were made. Attempts were also made to discuss various issues with the stakeholders with specific emphasis on benefits in terms of preservation of files and other documents and massive saving of paper. A critical success factor for any project is the inclusion of key stakeholders and end users at every stage of the project. Transparency also needs to be maintained with regard to all important issues of the project. The implementation of the project cannot be considered as satisfactory. In 2004, the average number of electronics files being modified online was 320, whereas nearly 600 people logged in at peak times. In terms of buy-in from the departments, nearly 33 departments were quite enthusiastic, whereas about 20 departments were not but willing to experiment. The remaining 20 departments were not yet on board. Many employees out of 2,000, particularly in the age group of 35–40 years, were not interested, but were pushed into it. In a few departments, there were wrong signals emanating from the top. About 30 percent of the heads of department were enthusiastic and nearly 25 percent were hostile. Others were lukewarm in their response. At the middle level, among the 29 champions that were appointed, only 10 showed

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real enthusiasm. Amongst the 74 data processing officers, only 37 were really available for the tasks and about 25 did a good job. The implementation of the system was slow, even though some progress was made because the features in the system have been fine-tuned over time. Since such a system was designed for the first time and the environment of file processing in a Secretariat is quite complex, it was not possible for the designers to anticipate all the requirements of users.

Factors That Helped in the Partial Acceptance of CARING Gov There was strong political support for the idea of using ICTs in government. The Chief Minister took personal interest in ICT projects and was known to be a serious ICT user. The environment encouraged competition amongst departments. There were a large number of domestic companies that could build complex systems. CARING Gov was seen as a natural progression in a string of reasonably successful e-government projects in the state. A partnership was built with the largest software company in India that had the capability of designing complex systems. The partnership arrangement provided a good incentive for TCS to not cut corners in development and develop a strong product that could find markets elsewhere. TCS retains the rights to the product with the GoAP as a minor stakeholder. There was no organized resistance from the unions. Surprisingly, the association of officers played a positive role in implementation and did not create any major bottlenecks. One reason was the assurance that no employee would lose his or her job during the process of implementation. There were well-organized and trained ICT department to conceive and implement a complex system. In addition, a pool of 100 government officers had been trained as Chief Information Officers in an intensive four-month full-time residential training programme conducted by a leading management school. An elaborate structure was created for providing assistance and

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recording feedback during the implementation process. There was a help desk which received nearly 150 help calls per week. This was in addition to the hand-holding support provided by the data processing officers. There was one coordinator for 35 sections. There was a suggestion committee to which written feedback and suggestions could be provided by all users. A five-member team consisting of officers drawn from different departments oversaw the quality and design improvements. This team was distinct from the internal team of TCS. Technical implementers were trained extensively in domain knowledge so that they could speak the same language as the users. A sense of urgency in project completion and meeting project deadlines ensured that technology did not become obsolete due to prolonged project schedules. The involvement of the then Chief Secretary had greatly helped the implementation process. In two reviews by the Chief Secretary, the names of senior officers who were not using the electronic system were identified and discussed. This had a salutary effect on the officers. The entire backlog of files at the desk of these officers was cleared. It was important that top management was involved and intervened actively where necessary. The current version of the CARING Gov mimics the old system of file movement and this approach helped to avoid a wholesale rejection from users. Further, the well-structured note file and the checklist added an element of crispness to the file that earlier included a lot of irrelevant information. The knowledge bank was an added attraction, though users had to acquire familiarity with referring and comparing documents online. The dashboard was another value-added feature as it reduced the time spent on maintaining manual records like personal registers. The quantum of work at the lower levels of the hierarchy was clearly reduced since the approved e-file was ready to be dispatched unlike in manual form wherein the corrections in the draft order/letter had to be typed and retyped. Resistance to change came from the fact that initial efforts required for learning and using the system were significant and the benefits accrued only after a person had become reasonably

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familiar with the system. In fact, maximum benefits of the application are in peak load times. The system allows officers to maintain a perspective on their work backlog and to prioritize their work.

Factors That Produced Resistance during Implementation The locus of ownership was missing. The project should have been owned by the user departments but the application was seen as an ICT department baby. However, the ICT department lacked the authority to drive such a project which involved 70 other departments. The motivation to cooperate in implementation was governed by how the credit for success would get apportioned. The ICT department was seen to be hogging the credit. Real commitment to the goals of the project amongst the senior levels of civil servants was weak. This produced an underlying unspoken resistance to goals. Adaptation to technology also created resistance, particularly amongst the older employees. The quantum of change in the way work would be done was high— from paper-based to screen-based. Typing was a new skill for most employees. Overall, work could be done faster, but some individual components had become more complex and difficult. There were many benefits to the system, but not many benefits accrued to the lower-level employees. A shared terminal was an additional irritant. Employees had lost power over information, needed to adapt to a completely different way of work and could be subject to scrutiny, without any compensating gains. Although extensive training was provided to each employee, the timing was not always right and the bosses were not involved. Regarding the mechanism of departmental troubleshooters and departmental champions, only 30–40 percent of the identified people were capable of performing these roles effectively. The greatest challenge for the GoAP was sustainability. The GoAP lacked the network bandwidth for implementation and could not be sure of what the situation would be like five years down the line when the application was deployed at many more offices.

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Future Issues and Some Ways in Which Resistance Can Be Minimized In order to increase the usage of the CARING Gov system, certain mandatory procedures could have been introduced. For example, processing all employee related issues like sanction of leaves, loans and advances, medical reimbursements, etc., could be made compulsorily, done through CARING Gov. Senior officers should have refused to see a physical file except in subjects like vigilance inquiry cases or court cases where for reasons of confidentiality it was proposed to continue with paper files. CARING Gov operates in a collaborative environment. Inaction from a single point in the workflow can result in a deadlock. Therefore, keeping each individual motivated was the key to the overall effectiveness of the system. CARING Gov had to be popularized further by developing an informal competition among departments in terms of adapting the system. Awarding prizes and incentives to departments that use the system regularly and effectively could have done this. TCS was trying to win over users by making the system greet users on their birthdays. Perhaps intimation about the birthday of an employee could have been sent to all other employees in a particular department. This may have generated team spirit. CARING Gov would have had a better citizen interface if all government orders pertaining to common issues had been automatically uplinked to other government portals like AP Online. The citizen would then have had access to government orders instantaneously which is one of the key factors of transparency in a CARING government. Some applications in CARING Gov could have been further simplified to increase their acceptability. For instance, if a current formed part of an existing file, the Section Officer had to search for files, attach this current to the relevant file and then send it to the assistant section officer. Many section officers found this process cumbersome. This process could easily have been automated by introducing an additional field indicating the number of the existing file to which the current should automatically be attached.

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A clear fall-out of CARING Gov was that attendants and personal assistants/secretaries had no role to play in the electronic processing of files. Either their jobs needed to be redefined or they had to be redeployed elsewhere. The organizational arrangement that could have strengthened the internal implementation team and facilitated an easy phaseout of the TCS team is: 1. Subject matter experts who could have been made responsible for the implementation tasks. 2. A technology management group and a data management group for organizational support and knowledge upgradation. 3. A system administrator and a full-time qualified DPO in each department who could have taken over the tasks being performed by TCS professionals, such as those involving change of ID or change of subjects when employees were transferred. A cautious approach was to be followed for expansion of the project. Once the implementation of CARING Gov reached all levels at the Secretariat, it would be replicated in other places. It was proposed to expand it to heads of departments, districts and mandals. But while doing so, further simplification, standardization and replication of successes were needed. The government has not appointed a project manager for CARING Gov. Even among the DPOs and department champions, only 30 percent was effective and they only reacted to a situation. They did not have a regular job chart to check systems on a daily routine. Instead, they waited till a user called up and then attended to the problem. The government needed to find real champions in key departments for sending out the message that it was keen on implementing its CARING vision. Identifying these champions was difficult in an environment where everyone felt they were the first among equals. To tide over some of these problems, a core group was set up in February 2003. This group had to meet every Monday to

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review the situation. But it neither met as per schedule, nor was its decisions conveyed to the entire Secretariat. A new Chief Secretary took charge on 31 March 2003. The slow adoption of the new system continued to be a concern. The benefits of the system had largely not been realized either by the government or the citizens. It is difficult to predict whether this system will ever get incorporated into the work culture of the secretariat—to an extent that it can be sustained under any leadership (This Case Study is based on Bhatnagar et al. 2003.)

11.2 Computerization of the Treasuries in Karnataka (Khajane) With the launch of Khajane, a G2G project, all the treasuries and sub-treasuries of the state have been connected to a centralized server with a dedicated VSAT link. Any bill, in any treasury is now cleared online after checking the budgetary allocation and availability of funds from a central server. The project has improved the cash management system for the Karnataka government and has made the treasury operations more transparent.

Application Context The Finance Department of the Government of Karnataka sets the budget for the state at the beginning of the financial year. Based on the budget, funds are released to various departments. These departments present bills related to purchase, salary payments, etc. to the treasury for payments. After a bill is submitted by the Drawing and Disbursing Officer (DDO) along with appropriate documentation, it is categorized as one of the 24 different types of bills (such as Salary Pay Bill, Purchases Bill, Travelling Allowances Bill and Emergency Bill) processed by the treasury. Each type of bill is processed by a designated case worker who would cross-check the attached documents and verify the codes specified in the bill. Bills found to be in order will be approved

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by the treasury officer for payment. Payments are made by cheque. Bills with incorrect codes or missing support documents are returned and have to be resubmitted after making the required corrections. A monthly statement of payments made to each department is presented to the concerned department along with an account reconciliation form (called 62B). Any misclassification in the head of account is to be reported back to the treasury. Prior to 2001, these tasks were performed manually and could take more than a month. The delay in updating accounts resulted in cases of over withdrawal of funds. Manual verification of the bills provided scope for errors and corruption. The treasury is also entrusted with the payment of old-age pension and social welfare pension to nearly one million persons. The treasury offices also serve as bankers to the state’s 4,500 village administrators known as panchayats.

A New Approach ‘Khajane’ was initiated in 2001 and made fully operational in November 2002. It involved networking of all the 31 district treasuries and 185 sub-treasuries in the state through a State WAN using VSAT technology. Under the Khajane system, when a bill is presented at the treasury for payment, it is given an electronic tracking ‘stamp’ and the bill is then routed to the appropriate manager for approval. Since the bills are stamped electronically, it also becomes easier to clear the bill on a First-In-First-Out (FIFO) basis. The approval of the bill is done online through a series of checks built into the Khajane application. Before approving the bill, the manager can check the online system to view the up-to-date budget usage and the available balance. Real time budget visibility has been of immense help in curbing the menace of over spending.2 Time taken for payment approval has reduced from weeks to a few minutes. Similarly data regarding Karnataka state government streamlines treasury operations and improves transparency (Oracle e-Governance 2004). 2

292 Unlocking E-Government Potential

revenue collections (payments received by various agencies directly or through banks) is transferred quickly to the treasury and then to the central server from all the treasuries. The consolidated data from the Directorate of Treasuries is sent to the office of the state Accountant General (AG). In the AG office, the expenses are classified under the respective budget heads and financial statements prepared. In the old system, the AG office needed a team of 200–300 people to handle these tasks. With Khajane in place, most of these employees have been re-assigned other tasks as bills are categorized into the respective budget account at the treasury level itself. One of the key utilities of the Khajane application is the Online Budget System (OBS). Through the OBS, district-wise information on expenditure and collections can be generated on real time basis. This information is often required by various government departments for submission of progress reports of various government schemes. Data on the number of bills presented, processed and approved, and cheques issued, encashed or pending from a treasury unit is available on real time basis. Khajane serves 21,274 DDOs in 104 departments, 700,000 employees who are paid salaries, 373,000 pensioners and 1.4 million Social Security Beneficiaries who are paid through money orders. Nine thousand six hundred line items under the budget are updated and monitored.

Technological Details of the Khajane Application Software The system had to cover Online Transaction Processing at the subdistrict or taluk level also. Connectivity through VSAT was chosen over broadband as broadband connectivity had not reached the taluks at that point of time. The application software of Khajane has the following modules: payments, receipts, pension, social security pensions, deposits, master maintenance, house keeping and FMIS reports. Validation, processing and approval of bills, printing of cheques, accounting and cheque reconciliation are automated. The software enables relevant officers to directly transfer budget details

Case Studies on G2G Applications in E-Government 293

and modifications to the central server of the treasury. Information on allocation, expenditure and balance can be checked online. A FIFO system has been enforced for all transactions eliminating discretion at the local officer’s level. Electronic fund transfer to departments and local bodies is facilitated. An Interactive Voice Responsive System (IVRS) can be used for queries. The system generates fully classified accounts. Karnataka is the only state rendering classified accounts to the Accountant General and the Zilla Panchayats—the local rural bodies. There are plans for interfacing Khajane with the Human Resources Management System being planned for the entire state. The Network Management System (NMS) is co-located at the hub (Treasury NMC) for remote monitoring and control of the Ground Segment Equipment. All the remote locations are monitored on NMS restoring the site within the stipulated time as per the SLA requirement of 99.5 percent network uptime. The network can provide additional bandwidth for the required sites to speed the data transactions across the network. The complete network has been designed with built-in redundancies for fail-free operation. Password policies are maintained to protect the systems and servers across the network. Anti-virus server at the hub updates all the remote servers and clients from time to time. Each treasury was provided with power backup facility such as the UPS and batteries. The data is saved on the server every day as well as being saved on magnetic tapes at the treasury/sub-treasury. As part of the disaster recovery measure, a separate mirror site (called ‘Laxmi’) has been set up in the Dharwad district. A survey of 24 operators across seven districts of Karnataka revealed that instances of connectivity failures were extremely rare. Nearly 70 percent of the respondents regarded connectivity breakdowns as occurring ‘rarely’ or ‘never’. Almost all the respondents mentioned that the instances of computer hardware failure was also ‘rare’ or ‘never’. For most of the parameters related to the rectification of the connectivity, the respondents’ opinions were on the positive side.

294 Unlocking E-Government Potential

Planning and Implementation Internally the department was already exposed to some level of computerization with its district treasuries preparing the monthly accounts in an offline mode. A procedure manual covering various aspects of treasury transactions was also brought out prior to floating of the tenders to provide better understanding of the functions of the treasury. A project steering committee and an implementation committee were constituted. The steering committee took decisions on technical issues and policy matters and consisted of representatives from the finance, treasury and IT departments, academia, the network provider and the service provider (M/s CMC). Two thousand three hundred employees were trained in a variety of programmes covering the basics of computers, all aspects of the application software and higher level training as system administrators. Quarterly meetings at the state level and monthly meetings at the district level were held to update the staff on progress. Facility Management Engineers were trained and posted in all the districts. Departmental officers at the taluk, district and state levels were trained on budget monitoring procedures. Handbooks, manuals, circulars and government orders were issued regularly to keep the officials updated about the new features. Individual module-wise user manuals were provided to the staff and manuals in local language were also made available. Authority delegated to various levels of officers was defined more clearly and execution was controlled through the system. Introduction of any new feature in the application software was discussed at the district treasury/sub-treasury level first. Based on the feedback, final decision was taken at the state level. Hence, the level of acceptance is usually high. A major exercise of standardization and simplification of the existing procedures was undertaken by the department. Nearly 40 types of bills and challans were rationalized to 10 bills and five challans. Individual challans were replaced by a single consolidated bill for drawing salary of departmental employees.

Case Studies on G2G Applications in E-Government 295

Many of these ideas were picked up by a study team that visited Maharashtra, Andhra Pradesh and West Bengal states before deciding upon the final design. The FIFO process was introduced where the priority of the bill is decided by the sequence in which it is presented to the treasury. The system is designed to clear the bills in the order of priority alone. The discretion available to the staff has been removed and the system has been rendered transparent. IVRS is another important step in improving the transparency. Drawing Officers or the public can know the status of the bill presented to the treasury through a phone call to the IVRS. Timely digitization of the treasury data was a critical component of the Khajane application. Data records of nearly 600,000 state government employees and grant-in-aid institutions were migrated onto the Khajane databases. This laid the foundation for a comprehensive database for the application. Various MIS reports are made available at taluk, district and state levels enabling de-centralized decision-making. Meetings of the Karnataka Development Programme (KDP) held at the taluk, district and state levels use up-to-date financial data provided by the treasury to review the implementation of various development schemes being undertaken in the state. DDOs are provided details of classification of all their withdrawals from the treasury, budget releases and balances available under various schemes. Internally, the system has a provision for generating reports on all the aspects of transactions carried out in the treasuries.

Costs and Benefits Investments in Khajane for the period 2002–06 were estimated to be Rs 337.9 million (see Table 11.1). The total operating expenses of the project for 2000–01 to 2005–06 are estimated at Rs 173.08 million (see Table 11.2). The annual cost of the Khajane system is approximately Rs 130 million, assuming a five year life of an equipment.

296 Unlocking E-Government Potential Table 11.1: Annual investment in Khajane (in Rs million) Item

2002–03

Hardware Communication infrastructure Civil works Packaged software Application software Total

2003–04

2004–05

2005–06

Total

25.4

101.5

5.5

4.5

136.9

120.1 15

1.3 22.2

0 0

0 0

121.4 37.2

10

7.1

0

0

17.1

0 170.5

24.1 156.2

1.2 6.7

0 4.5

25.3 337.9

Source: Compiled from Department of Information Technology 2007. Table 11.2: Annual operating expense in Khajane (in Rs million) Item Training Maintenance Communication Total

2000– 2001– 2002– 2003– 2004– 2005– 01 02 03 04 05 06 0 1.2 0 1.2

0 0.38 1.2 0 0 13.6 1.2 13.98

0.1 12 29 41.1

0.1 18 39 57.1

Total

0.1 0.68 18 50.4 40.4 122 58.5 173.08

Source: Compiled from Department of Information Technology 2007.

Khajane has benefited four stakeholders: 1.4 million pensioners, 22,000 DDOs, the Treasury Department and the Government of Karnataka as a whole. Timely payment of pension has resulted in satisfied citizens. Pensioners who used to receive their pension once in two or three months today invariably get it in the first week of the month by a money order. A survey of pensioners reported a number of improvements as shown in Table 11.3. the number of trips, waiting time and error rate have been significantly improved reducing the cost incurred by pensioners. Computerization has eliminated the need to pay bribes. Similarly, DDOs have benefited in terms of trips to treasury, waiting time and a significant reduction in errors. The government has saved on manpower costs. Introduction of classified accounts by treasuries has rendered an establishment

Case Studies on G2G Applications in E-Government 297 Table 11.3: Comparison of Khajane with the earlier system DDO Manual Number of trips Waiting time (minutes) Elapsed time (days) Error rate (%) Quality of service (5-point scale) Proportion paying bribe (%) Quality of governance (5-point scale) Composite score (5-point scale)

Payee

Computerized Change

Manual

Computerized Change

2.7

1.6

(1.1)

2.1

1.2

(0.9)

63.2

21.8

(41.4)

60.1

24.7

(35.4)

2.4

2.0

(0.4)

N.A.

N.A.

N.A.

12.8

3.5

(9.3)

14.9

1.1

(13.8)

4.1

4.5

0.4

3.6

4.2

0.6

0.0

0.0

0.0

5.7

0.0

(5.7)

3.5

4.2

0.7

3.6

4.2

0.6

3.2

4.4

1.2

3.1

4.2

1.1

Source: Compiled from Department of Information Technology 2007.

of more than 300 officials superfluous in the AG’s office. These officials have been redeployed to other sections while 318 vacant posts in the treasury department itself have been abolished. The Finance Department receives the revenue and expenditure details for the entire state for the month latest by the fifth of the subsequent month. The AG gets fully classified accounts from all the treasuries. Through the OBS utility of Khajane, instances of overdrafts, misclassification and fraudulent withdrawals of funds have been effectively controlled. Optimal use of online information on cash inflow and outflow has enabled the government to monitor its cash flow better as is evidenced by the

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fact that the Government of Karnataka had no occasion to resort to over draft in the last few years. Reconciliation and compilation of accounts, which used to be a huge task in itself and took 45–60 days earlier now takes 2–3 days. In the earlier system, there were frequent instances of wrong data entry and tracking the error was a tedious task. The cash flow among the treasuries, government department, municipalities and local bodies could not be traced on a real time basis. Cases of misappropriation of funds were not very uncommon. Khajane has removed these maladies of the earlier system. This is an area where quantification is difficult, nevertheless the fact remains that the government used to incur a loss to the tune of millions of rupees every year. Past experiences show cases wherein the government was defrauded by a single office, sometimes of Rs 50–60 million. Data on cases of misappropriations and embezzlements for the period 1996–2004 clearly indicates that such cases have been significantly reduced since the inception of Khajane (see Table 11.4). Table 11.4: Cases of misappropriations and embezzlements in Karnataka Period Up to 1996–97 1997–98 1998–99 1999–2000 2000–01 2001–02 2002–03 2003–04

Cases reported

Amount (Rs in million) reported

165 33 40 19 15 23 4 2

30.82 53.14 27.04 8.92 14.01 22.37 3.69 0.09

Source: Accountants General Website.

There has been a modest increase in the number of transactions at the treasuries, but a significant reduction in the cases of error correction. Table 11.5 indicates the activity levels for the various services and cases of errors.

Case Studies on G2G Applications in E-Government 299 Table 11.5: Khajane: transaction volumes Transaction type Processing DDO bills Processing pension Payments to vendors and contractors Processing receipts Cheques issued Error correction

2003–04

2004–05

2005–06

2,733,640 534,864 825,025

2,798,198 613,941 894,246

2,935,745 589,711 917,527

7,018,983 4,009,922 6,410

7,159,511 3,926,282 7,769

7,230,077 4,017,367 922

Source: Compiled from Department of Information Technology 2007.

Key Lessons Treasuries represent a core function of the government and any reform of the core function is likely to produce multiple benefits beyond the immediate stakeholders. Computerization of treasuries can therefore be an attractive proposition as the benefits accrue to any individual or agency receiving payments from the government including panchayats, all departments of the government, pensioners and contractors. Moreover, there is a positive impact on the overall finances of the state. District and taluk treasuries have been computerized in India since the last two decades in a standalone mode with limited benefits. The real impact of computerization on state finances and benefits to multiple stakeholders has however come through integration with the central treasury. Therefore, in certain kinds of projects, small is not necessarily beautiful. Comprehensive scope and integration can significantly enhance the gains although new investments are needed for building a networking infrastructure. Treasury computerization is a high-pay-off-high-risk application that needs a supportive political patron, a competent project champion and partnership with private sector for successful implementation.

12 Guidelines for Design and Implementation of an E-Government Portal

12.1 Introduction In many cases included in this book, there are examples of agencies that are moving from manual service delivery to online delivery. Citizens interact with public or a private operator who accesses data and information from online terminals located in the premises of the department. In some countries, multiple services are delivered through online terminals and/or assisted counters in conveniently located service centres. Although portals are the most popular mode of service delivery in countries that are ahead in e-government, there are few examples from developing countries of well-developed portals. A portal is a generic word used in many contexts. The scope for the content of a portal can be a company or a division thereof, an organization, a section of government or the entire government institution. There are also sector portals of various kinds such as bookshops, trade portals, local or international marketplaces and many others. Regardless of the scope, the key feature of a portal is that it integrates services into a similar, if not necessarily standardized format as viewed by the user. In this chapter, we use this term to refer to comprehensive national portals. This chapter (based on Grönlund et al. 2008) provides a guide for officials in the governments of developing countries in making decisions as to whether or not to develop a government service portal as part of the e-government programme and what strategy to choose in terms of the contents and services provided.

Guidelines for Design and Implementation of an E-Government Portal 301

The chapter describes the key features of a portal and discusses factors that determine readiness to launch a portal. These factors are classified into those which determine the uptake of the services by clients (demand side factors) and those which affect service provision (supply side factors). The chapter also presents a conceptual framework focusing on the choice of a portal as a mode of delivery in the context of different levels of technological sophistication and administrative maturity of countries.

12.2 Key Features of an E-Government Portal—Single Access Point An e-government portal offers a single access point where citizens are able to access a comprehensive set of government services. The key feature of a portal is that it integrates several online services that are needed by clients (citizens/businesses) in their entire life cycle and presents these services in a format that mirrors the sequence in which these services are needed by the clients. E-government portal services often evolve over years, typically starting from publishing generic government information followed by interactive services using e-mails and other devices and more sophisticated services involving transactions. Portals are built using three key components. They are: 1. Customer interface applications: They are the core applications for information provision, interaction and transaction to serve the needs of citizens and/or businesses. 2. Information provision tools: These tools enable standards setting and interoperability among government agencies at the technical, semantic and business levels. They not only facilitate access to information, but also help create momentum towards standardization and integration of government services and operations. Examples of such tools include templates for text inputs, tools to add images, standardized texts for disclaimers and common forms.

302 Unlocking E-Government Potential

3. Value-added tools: They are primarily the tools to facilitate online transactions. A variety of value added tools are being used in portals; for example, payment solutions and subscription facilities; ‘feedback’ and support systems and electronic submission of certain forms. Search engine is an important value-added tool. As the functionalities and services offered in portals grow, user demand for finding right information quickly also grows. Thus, good search engines combined with user friendly navigation tools become crucial to improve user experience. Designers usually focus on the customer interface applications. The remaining two components are often perceived as imposing extra costs and restrictions on the design of services. However, to develop a user oriented portal that offers multiple services in an integrated manner, the last two components play an important role. Portals are sometimes compared with shopping malls, where different shops conduct their businesses in the same location and benefit from the infrastructure such as elevators and air conditioners to increase customer convenience. Similarly, portals provide a common platform for multiple service providers where they can benefit from shared valued added tools to enhance user experience. E-government portal projects typically need substantive investments. For example, the UK Government Gateway reportedly cost £ 36 million (2000–02) and 16 USA state portals have cost up to USD 2 million each. The cost of a portal is a function of the expected traffic, number of services offered, level of interactivity and the level of integration. The next section discusses the demand and supply factors relevant to e-government portal design and the process to enable standardization.

12.3 Demand and Supply Factors for E-Government Portals While assessing demand is the basic step towards designing a portal project in the private sector, it has been a weak point

Guidelines for Design and Implementation of an E-Government Portal 303

in e-government portal projects. There have been examples of portal projects which did not generate expected benefits because users did not utilize the portal services to the extent hoped for. This section reviews the key elements for assessing demand, which are related to the quality and availability of information infrastructure and the behaviour of user communities. The supply side elements, on the other hand, influence the choice of services from feasibility point of view. The current status of the capacity of service providers also affects the entry point for e-government portal project.

Demand Side Factors Key demand side factors relevant to e-government portal are: 1. 2. 3. 4.

Information infrastructure. Types of users. User acceptance. Consumer and business readiness for e-services.

For a large part of the population to access services from a portal, the infrastructure for key information services such as the Internet, landline phones and mobile phones have to be widely available in high-quality and at affordable prices. The quality and availability of information services has implications for the types of portal service that can be offered. For example, Internet use at cyber cafés, shared accounts and service intermediaries are prevalent in developing countries. Certain citizen services which require technically secure personal authentication capability would most likely not be suitable in such an environment. While it may be possible to overcome this challenge by combining multiple channels, for example, the use the Internet for information collection and a mobile phone for authentication, it would add technical and legal complications in project design. The availability and affordability of bandwidth is the other major factor affecting the decision of the types of services. Services which require more sophisticated technologies, such as

304 Unlocking E-Government Potential

transaction-based services, require larger bandwidth to ensure stable service experience. To circumvent the infrastructure constraint, some governments may opt for designing services suitable in low bandwidth environment. Such an approach certainly increases the coverage, but it often decreases usability, and may increase the costs of design. At what level of infrastructure would the portal approach be justified? A cut-off line might be drawn based on the number of people the e-government portal can reasonably be expected to reach based on available infrastructure level. In a number of developed countries, when the proportion of the population with some form of Internet access hit around 50 percent, broader groups of politicians (not only champions) became truly interested. In developing countries, this is a strategic issue that must be thought through. Even if public access is too low, developing an intranet portal for Governmentto-Government (G2G) services may still be worthwhile to pursue because this will provide a good basis for future development towards a citizen service portal. Different types of users play different roles during the process of online service dissemination. Understanding their behavioural pattern is useful for estimating the pace of demand uptake. Users have typically been classified into five categories (Rogers 1995): innovators, early adopters, early majority, late majority and laggards. The first three are the most important in terms of broadening the user base, since they form the ‘critical mass’ whose behaviour is consequently followed by the rest. In the context of e-government in developed countries, the innovators are expected to start using the new services relatively quickly, possibly within the first year, the early adopters within three years and the early majority within five to 10 years.1 If the approximate size and profile of these segments of population can be estimated, the projection for demand uptake becomes quite robust. The estimation of the number of years is purely indicative. While reflecting the developed countries experiences it depends on many factors such as the service content, quality, affordability, etc. 1

Guidelines for Design and Implementation of an E-Government Portal 305

An e-government portal offers multiple services with different dissemination timeframes. Some will be more popular than others. In order to sustain the momentum for e-government portal project, it is important to ensure that the portal design covers adequate variety of services which can be popular within a relatively short time-frame. If a mature service is offered to a mature market, the early majority may be reached within one to two years. Moreover, e-government portal projects should include user support services, for example, service centre, Frequently Asked Questions (FAQ), etc., to facilitate the acceptance process by different segments of users. Furthermore, the dissemination time can depend on social structure and languages spoken. There are usually influential community organizations, for example, teachers and the elderly in rural communities, who can help disseminate knowledge about available services. They can also be approached to provide feedback about the design and usability of services. The establishment and proliferation of e-government portal services are easier if comparable e-services exist in the commercial and voluntary sectors.

Supply Side Factors Key supply side factors relevant to e-government portal are: 1. 2. 3. 4.

Level of back-end, front-end integration. Government online presence and administrative maturity. Staff skills and training. Available supporting services.

Early portal efforts often put the thrust in front-end applications while leaving the back-end integration for later stages. In some cases, heavy emphasis on front-office applications without integration with back-office may be useful. This may be the case if contact with citizens is the burning issue and affordable manual labour is available to process back-office routines until the next step is implemented. In other cases, such a strategy may prove disastrous

306 Unlocking E-Government Potential

as user experience will not be up to the standard which can deter users to the extent of jeopardizing the whole project’s credibility. Generally, a good practice is to conduct a holistic examination of the status of computerization in relevant government agencies at the outset of project design. The review includes such areas as the current level of front-office computerization, back-office computerization, online systems and the degree of integration between online systems and back-office systems. This process is important to assess how the new project will fit within the current systems. The existing state of Government Online Presence (GOP) determines where a project should start and to what extent it can draw on available standards. It provides the indication of the level of administrative maturity defined by the extent to which administrative processes are organized, documented and functioning. Administrative maturity entails the existence of data sources and their degree of standardization and organizational capacity. There are a number of examples of ‘islands of excellence’ in developing countries where a limited group of government departments achieve excellent online presence while the remaining majority of the government stays at a primitive level. In a medium term perspective, the systems in these secluded agencies are at risk of becoming incompatible with other parts of the organization. As a result, eventual integration with other services may be hampered. While there is a need for rapid progress at some places to create momentum and raise awareness, ‘islands of excellence’ need to be balanced by a holistic approach. The effort required to achieve all of these at the same time is quite substantial as the challenges at different stages require different user e-maturity. Governments should approach this evolutionary process in a strategic manner. Measures taken in each phase should prepare for transition to the next phase. Information provision and manual support for e-services require different skills. Putting information online can be a relatively low-skilled work, provided that templates, tools and information are present. Historically, it has often been conducted as part of a ‘putting-people-to-work’ scheme, that is, in conjunction with

Guidelines for Design and Implementation of an E-Government Portal 307

labour-market and/or education policies. This is often attractive as it not only provides jobs but also enhances computer literacy and, in turn, increases people’s chances in the labour market. Much of this work can be automated, if paper-based information exists, but it can prove to be more expensive and not necessary for the project goals. An equally important aspect of an e-government portal project is the user support services. In fact, many portal services fail because user support is ignored. Thus, government staff involved in providing services has to be trained in producing information that is correct and intelligible, presenting information appropriate for online use and interacting with users at such venues as service centres and call centres in a service oriented manner. Finally, the capacity to execute the re-engineered new procedures is a crucial factor. There must be a plan to nurture a group of project mangers who have the skills needed to develop and maintain the new electronic services integrated with government process reform. An e-government portal requires many kinds of supporting services, both at central and local levels, and its success relies on the availability of these services. They include robust private sector capacity for e-business consulting and technical support services, industry-wide standards for platforms and programming languages and availability of training programmes for staff to run new services and use new technology.

12.4 Standardization for Integrated Services E-government portals offer multiple government services in a single online window. Traditionally, these services have been provided, managed and owned by different government departments. They typically have developed different business processes and standards for offering services over years. Integrating the services into a single access point requires cross-departmental efforts for standardization both in terms of business process as well as to meet the technical requirements associated with web publishing, data sharing and other technologies used in portals.

308 Unlocking E-Government Potential

To develop user-oriented business solutions for multiple government services and to maintain sufficient flexibility to respond to future changes in demand and technical development, a certain level of standardization is needed. The information provision tools and value-added tools mentioned before are the key technical tools in this effort. In general, the standardization plan should cover areas such as: 1. Service standards: i. Common presentation format. ii. Common search, navigation and information resources management tools. iii. Service centre serving all involved departments and services. iv. A structure for developing semantic specifications and standards for electronic data interchange/messaging services to ensure that information is provided to users without loss or change in meanings. To some extent, the government agencies may be able to utilize the existing structure used by the private sector. However, there is a need to develop customized specifications and standards for areas unique to government services. v. Technical standard—Today there is convergence towards use of Web Services Description Language (WSDL), Universal Description, Discovery and Integration (UDDI) and Simple Object Access Protocol (SOAP). 2. Front-end technology integration: i. Integrated search/navigation/inquiry (includes technical and manual components). ii. Integration of technologies (for example, mobile phone and the web, web and call centre). 3. Standardizing basic technology: i. Internet and World Wide Web specifications. ii. Interoperability technical standards, for example, Extensible Markup Language (XML).

Guidelines for Design and Implementation of an E-Government Portal 309

iii. Presentation standards, for example, the Extensible Style Sheet Language (XSL) family defining XML document transformation and presentation. iv. Metadata standard (makes search possible, guides information generation). Detailed planning and assessment of standardization in these areas require substantive inputs from information system experts as well as efforts to align the organizations to address these new challenges. To begin the process, e-government portal planners should make an assessment of the current status in the areas where standardization is needed. Depending on the status, the resource requirements for transitions from information provision to service transaction and from low technology to high technology will vary enormously.

Organizational Alignment Business process owners are not necessarily dedicated to standards since the process to agree on standards across agencies tends to slow down projects and make them more expensive. The same is true for value-added applications that are not within their area of business. The interest in e-government is also very dependent on the nature of the department’s operations and its available resources. To prepare the ground for standardization, e-government portal planners should focus on organizational transformation rather than on technology in the beginning. In order to address the interagency challenges, assigning a leading agency both at policy and operational levels can be effective. There are examples of such an agency in the UK and Korea (eGu nd, National Information Society Agency of Korea nd). However, this set-up is often not enough. In addition to formal institutional framework, there has to be an incentive mechanism to encourage agencies to adhere to the policies. To make the system acceptable for involved agencies, the system must be formed in a manner compatible

310 Unlocking E-Government Potential

with the culture and history of each country and respective organizations while still serving to promote desired changes. The challenge during early e-government implementation is to keep up with continuous and rapid change and development in technologies. Fortunately, due to increased standardization occurring in the technology market today, there are wider options for new entrants to utilize established standard technologies so that they can focus more on the issues related to organizational alignment. Nevertheless, the challenge in the technology front is far from being insignificant. E-government portals typically evolve from information publishing to more interactive platform by expanding value added functions allowing transaction and integration. Along this evolutionary path, there are several solutions available today with varying levels of technological sophistication. An illustration of low-tech, medium-tech and high-tech solutions for each evolutional phase is shown in Table 12.1. The standardization effort should be designed to accommodate dynamic transition from low-tech to high-tech solutions over the life cycle of the portal. For example, it makes it easier to Table 12.1: Available solutions at different stages in service evolution Low-tech solutions

Medium-level tech solutions

Publish

Manually putting information online.

Interact

Online Telephone or interaction. face-to-face interaction following web information.

Transact Online information, offline transaction.

Automatically On demand, putting informa- ‘personalization’ tion online. automatic queries.

Online transaction, offline confirmation.

Integrate Global menu system. Global search system. Source: Grönlund et al. 2008.

High-level technology and back-office integration

Service centre integrating all media in a structured interaction model (simple–medium– complicated issues). Online transaction and confirmation. Integrated services.

Guidelines for Design and Implementation of an E-Government Portal 311

evolve from manual posting of information on the web to more high-tech publishing services if the guidelines for definitions and formatting are developed to accommodate such development. Tagging information from the early stage would facilitate the introduction of automated publication tools at later stages. A standardized FAQ would be the basis for more automated interactive services. Although there will be pressure to meet immediate requirements to deliver the services, an e-government portal planners should take a strategic approach to avoid dead-end situations in which the standards established after substantive investments are not amenable to transition to the next stage.

User Interaction Another challenge is related to interaction with users, which is often conducted as part of client support functions. Integrated e-government portal services should be supported by standardized user support system across services and departments, so that users receive more or less equal level, quality and content of services. A good practice of the public sector service centres is to design the service standards according to the ‘e-service model’. This model consists of three layers of interaction with clients: (a) self-service; (b) standard responses to frequent questions and (c) expert responses to complicated questions (non-standard situations). Table 12.2 summarizes each layer using different media for interaction. Although users will migrate from manual to technical services over time as service quality, awareness and computer literacy increase, there will always be users preferring manual or personto-person services. Users will always choose the solution that is the easiest for them. Instead of going through long lists of frequently asked questions (FAQs), they will use e-mail or phone, if available. Occasional breakdowns of electronic services will also require users to call or visit an office in person. A sustainable service centre should therefore make use of all available service

312 Unlocking E-Government Potential Table 12.2: Communication channels for different stages of the e-service model

Web Self-service. Navigation tool, search function. FAQs, web Standard assistants, responses to standard interactive calculation questions. models. Online docuExpert response to mentation. complicated questions.

E-mail

Telephone (fixed/ mobile)

Other mobile services

Manual service

Notifications.

Voice menus.

SMS notifi- NA cations.

Responses to questions initiated in any medium. Consultation.

Call centre with generalist staff. Expert staff available through call centre.

SMS responses and notifications. Often not feasible due to limitations in interaction possibilities.

Physical ‘one-stopshop’ office with generalist staff. Feasible but expensive. Use as ‘last resort’.

Source: Grönlund et al. 2008.

channels and integrate them in a ’seamless’ fashion. It can be done by giving the options for users to choose their preferred channels of interaction, providing consistent answers across technologies and services and allowing users to switch between different channels smoothly at any time during the process.

12.5 When To Move to an Integrated Portal? Two factors determine the extent to which e-government and in particular portals can be adopted. These are administrative maturity and technological sophistication of a government. Administrative maturity basically entails the existence of data sources and a certain degree of standardization and organizational capacity. It determines at what pace the ‘putting information online’ phase can be executed. Technical sophistication is the degree of ‘informatization’ and technical interoperability in government. The delivery mode of e-government which is most suitable

Guidelines for Design and Implementation of an E-Government Portal 313

in a given country evolves as the public administration becomes better structured, more effective and transparent in serving citizens over years. It is possible to view countries in four profiles representing a high or low level of administrative maturity and a high or low level of technical sophistication. Whether moving to a portal is appropriate for each category is discussed.

Low administrative maturity and low technological sophistication: This is where many developing countries are currently situated. Administration procedures across government agencies are mainly manual, standardization across agencies is low and often documentation of existing practices is not accurate. Procedures have been modified piecemeal over the years, often leading to significant variation in the procedures across different units (offices) of the same agency. There is very limited computerization at the back-end or in the front-end for interfacing with the client. Such countries are not ready for a portal project. Their immediate focus should be on attaining an administrative maturity. This typically means designing basic registers and their computerization which would form a basic building block for e-delivery of services. If a short cut is taken, for example, by computerizing front-end, it is likely that the developed system cannot be integrated into a portal at a later stage. Some developing countries may be somewhat more mature, at least in some government sectors. However, administrative processes are still mainly based on manual procedures. Some records may be computerized but standardization of data definitions is generally low and thus preconditions for interoperability are a concern. Such countries need to begin with computerizing back-end databases and delivering services through front-end computerized counters which interface with citizens. The effort is in converting manual databases into an electronic form and to ensure its accuracy during the conversion process. Although the conversion process is done at the local office level, the entire effort needs to

314 Unlocking E-Government Potential

be preceded by an exercise to define a structure for the database. Data definitions should use standards/guidelines that have been evolved by a central agency to enable sharing of data across offices and agencies at a later time. A large part of the effort will be on training of employees to handle computerized data and profit from the analytical reports that would get generated. In determining the extent to which various tasks in delivering a service are automated, processes will be examined and reengineered.

High administrative maturity and low/intermediate technological sophistication This is where most e-government projects in developed countries started. These countries had well functioning administrative systems in place, and they were mostly computerized, but they were not connected and not web-enabled. Over the past decade, these countries have spent enormous efforts connecting these systems to the web. Web enablement is the easier part and has more or less been completed, but making them interoperable is proving to be the hard part. Only well-developed countries have been able to achieve the goal of interoperability in some areas like procurement, police, customs and trade facilitation systems. The final goal of such countries is to aim at truly networked services (Stage 4 in Figure 1.1). This can be achieved by focusing on coordination mechanisms ensuring global data definition, standard technology and standardized service design.

Low administrative maturity and high technological sophistication This can happen when countries directly import a system tried elsewhere. The route towards administrative maturity sometimes seems too long. Hence, some countries opt for shortcuts. This may be good and bad. It is good if the systems brought in can later be inserted as components into the maturing administrative and technical infrastructure. But it can be a costly mistake otherwise.

Guidelines for Design and Implementation of an E-Government Portal 315

High Administrative Maturity and High Technological Sophistication This is the position many developed countries are now approaching by ‘joining up’ their information infrastructure. It has required a lot of work on standards and converging processes. Prominent examples include the UK and the US, but all developed countries are putting a lot of effort into this. The first step is technical integration, using compatible technologies. It is helped by the IT industry which has a keen interest in their products being compatible with web technologies. The more critical part is data integration and metadata definitions. Tools are emerging and becoming standard, such as XML and Dublin Core, but these tools do not actually help define data; they only put the definitions in a similar format. To be interoperable without loss of data quality, data definitions themselves must be standardized or convertible. See Box 12.1 on e-citizen portal in Singapore for an example of a portal at the most advanced stage.

12.6 Monitoring and Evaluation (M&E) Framework for Portal Projects During the implementation phase, monitoring and evaluation becomes the most important process. In Chapter 8, which focused on assessing impact, there was no discussion of how an e-government portal can be assessed. A typical e-government portal would have three different levels where outcomes and progress can be followed. These levels include: 1. The goals level—status and impact on the achievement of pre-defined social, economic and political goals of the portal project. 2. The service level—quality of individual services. 3. The system level—quality of the entire systems for e-government portal services. The typical e-government definition includes multiple goals, for example, transformation of government’s relations with

316 Unlocking E-Government Potential Box 12.1: Singapore eCitizen portal Singapore offers comprehensive services through portals designed specifically for different groups of users including citizens, businesses and non-residents. The eCitizen portal is designed to cater for the needs of citizens through offering a wide range of e-services in an integrated manner. Launched in 1999, the portal is the first-stop for government citizen services on the web and organized with the needs of the citizens and customers in mind. The integration demonstrated in this portal is a product of long-term effort. Singapore’s e-Government journey began with the Civil Service Computerization Programme (CSCP) in the early 80’s. The CSCP was conceived with a clear direction of turning the Singapore Government into a world-class exploiter of IT. It marked the beginning of computerization in the public sector that focused on improving internal operational efficiencies through the automation of traditional work functions and reducing paperwork. A wide range of e-services offered by government ministries and agencies are categorized into following seven groups, which are called ‘towns’. • Culture, recreation and sports: Online virtual heritage trails, events/ festivals information, etc. • Defence and security: Passport application, fire hazards reporting, registration for National Service, etc. • Education, learning and employment: List of approved textbooks for schools, information on schools, online job matching database, foreign worker work pass verification, etc. • Family & community development: Information on family support services (child care, care for elderly), online filing of notice of marriage, services for persons with disabilities, etc. • Health and environment: Making appointment with a doctor online, online purchase of medicine, information on environment protection, etc. • Housing: Latest transacted prices of housing, housing financial schemes, etc. • Transport and travel: Tips on learning to drive and owning a car, road tax renewal, etc. eCitizen portal won the Stockholm Challenge Award in the e-government category in 2002. Source: Created by author from information available on Singapore eCitizen Portal (see SINGOV) and the public domain. Available online at http://www.ecitizen.gov.sg

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citizens and businesses, better delivery of public services, citizen empowerment, increased transparency and rural connection. Achievements of goals at this level are difficult to measure, but for many of them, at least estimates can be made. It is important to use both quantitative and qualitative measures, not only as a benchmark for achievements, but also as guidance for future actions. Each service needs to be evaluated for its technical soundness, for example, whether the functionalities are operating as expected or they conform to standards and best practices. There are proven methods for many of these aspects, including usability, use value, technical functionality, amount of use and Customer Relationship Management (CRM) evaluation. There are handson tools and techniques, the value of which can be reasonably easily and cheaply assessed. Fulfilling all the requirements does not mean the new service will actually be used, but it can at least tell whether it can be used. Usability and usefulness are often considered to be basic requirements. There are several methods for evaluating them. The combined results of two types of usability test should help ensure that the service is of high quality. First, an expert walkthrough can tell to what extent the service meets standard demands, such as Web standards and regulations. Typically evaluation includes assessment based on legislative requirements such as the US802 concerning disabilities and W3C World Wide Web Consortium (W3C) recommendations. Second, tests with small groups of users from key target populations will reveal a lot about how people perceive and use services. Factors to consider at the service level include:2 1. Services must match real user needs. 2. Services must mean a real improvement over existing services. A note of caution is that even if all of them apply, the change in the habits of users may occur for e-government service usage. The typical development includes gradual changes which cannot be easily predicted as they follow to a large extent the steps similar to the way fashion evolves—people do what others do. They can, however, be supported by good design and promotion. 2

318 Unlocking E-Government Potential

3. Services must be familiar to general users—they must be promoted in other media, typically in newspapers, radio, TV, or fliers. 4. Services must be understood. The simple case is when an electronic service matches a previously existing manual service. A more complicated case is when two or more previously separated services are integrated. Most complicated is when entirely new services are established. 5. Services must be usable (technically, semantically and well designed, content-wise). 6. Services must be culturally compatible with users. Critical issues here include privacy and identification, but also communication style in general. For example, the ability to use maps differs considerably among countries and cultures. 7. Subjective satisfaction of the user is a measure in itself. Hence, user satisfaction measurements are increasingly common.3 For task-specific portals, the structures of the portals have to support the problem-solving chain (orientation–investigation– choice–implementation), that is, information must be organized in a way users conceptualize the task at hand rather than to imitate the structure of the entity that provides the information. The various technologies used (telephone, mobile services, SMS, etc.) must be integrated with the web. A typical approach is to arrange services based on ‘life events’, such as marriage, buying a house, paying taxes, etc. It means grouping several services, often emanating from different providers, around such themes. This concept is very good from a user point of view, but has often failed to materialize because the provider of the portal platform and the provider of the service(s) (different departments in most cases) are not technologically, semantically and procedurally well integrated. 3

For example, Canada CMT: (Institute for Citizen-Centered Service nd).

Guidelines for Design and Implementation of an E-Government Portal 319

System Level Criteria System level criteria ensure that government as a whole is more efficient and effective. Only efficiency measures are typically used, but it makes good sense to include effectiveness measures as well. Portal and e-service development should not be prematurely linked to national performance goals such as the GDP growth or savings in the public sector, as there are many other factors that influence those measures. Instead, the focus should be on measuring capability enhancement and process improvements. Key output indicators expected to contribute to make government more efficient and effective as a whole are: 1. Standards development. 2. Availability, outreach, benefits, capacity building from user perspectives. 3. Infrastructure level in terms of human capital development, technical infrastructure, government re-organization. 4. Improved/mainstreamed regulatory system (‘cyber laws’). 5. Improved incentive system in government organizations.

12.7 Conclusion The key feature of e-government portals is the provision of a comprehensive set of pubic services using a common online platform. It is simplistic to view a portal as an extension of a website with enhanced features of interactivity and transaction processing. Efficient and integrated delivery through a portal requires both administrative maturity and technological sophistication. It may be tempting for developing countries to leap into technological sophistication by building portals without the deep reforms at the back-end that allow agencies to exchange data, documents and information. Design and implementation of an e-government portal must begin with an appraisal of demand and supply factors, standardization and infrastructure. Many of the factors that

320 Unlocking E-Government Potential

are important for e-government projects in general are also applicable to e-government portals. It is hard to overemphasize the importance of an underlying foundation established by a proper policy, legal and regulatory framework for successful e-government implementation. The challenge is that such frameworks tend to change slowly. In many countries, slow adaptation of legislation on electronic signatures has slowed down the rollout of e-government services for years. Laws and policies can also be too vague, allowing for multiple interpretations. Certain types of government policies, for example, civil service employment, laws restricting rational behaviour of government agencies and restrictions on the activities of the private sector, have also affected the pace of e-government development. As for technical aspects on portals, an important point to bear in mind is to develop and enforce technical tools which facilitate convergence, such as metadata standards. The interest in e-government portals is also very dependent on the nature of the department’s operations and its available resources. Again, e-government portal planners are expected to play the catalytic role to push the organizational boundaries to allow for synergies and collaborations in order to ensure success.

13 E-Government: The Way Ahead Governments around the world are embracing electronic government. In every region of the globe—from developing countries to industrialized ones—national and local governments are putting critical information online, automating once-cumbersome processes and interacting electronically with their citizens. This enthusiasm comes in part from a belief that technology can transform the government’s often negative image. In many places citizens view their governments as bloated, wasteful and unresponsive to their most pressing needs. Mistrust of government is rife among the public and businesses. Civil servants are often perceived to be inefficient and corrupt. The spread of ICT brings hope that governments can transform. And, indeed, reform-minded officials everywhere are using technology to improve their governments. Many countries have realized that the approach of allowing a thousand flowers to bloom will not create the desired overall impact. National strategies and programmes have been drawn up to promote e-government applications in a coordinated way. But e-government is not a short cut to a clean and efficient government. E-government is not the ‘Big Bang’—a single event that immediately and forever alters the universe of government. Rather, e-government is a process, and often a struggle, that presents costs and risks, both financial and political. These risks can be significant. If not well-conceived and implemented, e-government initiatives can waste resources, fail in their promise to deliver useful services and thus increase public frustration with the government. Particularly in the developing world, where resources are scarce, e-government must target areas with high chances for success and produce ‘winners’.

322 Unlocking E-Government Potential

We have seen that the targeted gains from e-government go beyond efficient delivery of services. E-government can advance the agenda of governance and that of fiscal reform, transparency, anti-corruption, empowerment and poverty reduction. However, as many assessment studies indicate that its full potential remains untapped to date. Poor human, organizational and technological infrastructure, coupled with inappropriate approaches taken by donors, vendors and governments, have resulted into less than optimal exploitation of information and communication technologies. Information and communication technologies have a valuable potential to help meet good governance goals in developing countries (Heeks 2001). Good governance can also be conceptualized as part of a development process; it should be participatory, transparent and accountable in character. Political, social and economic priorities in a country can be framed within the context of good governance with such a broad consensus that the voices of the poorest and most vulnerable may be heard in the decision-making processes regarding the allocation of resources. The emergence of the new information and communication technology has all the attributes of imparting added value to the processes that give identity, form and relationships to good governance. In charting increasingly ambitious goals for e-government, a word of caution is necessary. E-government should not be seen as a panacea for the complex and well-entrenched problems of corruption and poverty. These problems require multi-pronged action. E-government is one of the many tools whose potential in tackling these problems needs to be recognized. E-government provides an entry point for reform-minded politicians as it is able to make a dent on some of these problems without a head-on confrontation with the vested interests that would like to preserve the status quo. Assessment of several successful projects reported in this book has shown that gains from e-government can be real, but implementation requires a lot of administrative effort. The challenge is to commit reform-minded politicians to conduct the necessary institutional reforms required for e-government to add value to citizens and businesses. There is no specific sequence in

E-Government: The Way Ahead 323

which different kinds of reform are introduced. Often they run a parallel course, depending on the state of the starting condition. There are other challenges at the level of design and implementation. Many of the applications implemented across developing countries represent an early stage of e-government development. Often, only some part of the service delivery process is IT enabled, leaving other processes to be handled manually. This leaves room for discretion and inefficiency. Unlike the industrialized countries, the delivery model is not through self-service portals and applications that require inter-departmental co-ordination are still not online. However, the applications have delivered significant benefits to all stakeholders, and that should provide the incentive to go ahead. Rural access to e-government has to be strengthened by taking Internet connectivity to rural areas. Earlier chapters and case studies have emphasized implementation challenges and how these can be overcome. Figure 13.1 attempts to capture the critical success factors for different stages of evolution of e-government. Most developing countries fall into the first and second stages. Strong project leadership and coordinated efforts across departments are necessary to evolve to the third and fourth stages. This requires significant institutional reforms in the way government conducts internal businesses and a change in the behaviour of civil servants and managers. Lack of concern for the users often negates many benefits that ICT can provide in the delivery of services. E-government projects need to be defined with clearly identified goals and measurable benefits for citizens and businesses. Significant process reform is needed when using ICT for automating procedures for delivering services. Online delivery through assisted community service centres is the most practical solution in countries with low Internet penetration and significant levels of illiteracy. Governments need to work towards the goal of ‘less government’, outsourcing many service delivery tasks. There are many forms of partnership that can be developed with the private sector. A quasi-government agency is often a good institutional arrangement to seek and develop these partnerships.

324 Unlocking E-Government Potential Figure 13.1: Critical success factors for different stages of e-government Stage 1

Stage 2

Stage 3

Stage 4

Information sharing

Limited interaction

Online transactions

Transformation

Transparency of government processes and rules

Saving time and travel costs for citizens

Convenient service delivery and less corruption

Government is participatory, transparent accountable

Useful and upto-date content Aesthetic design

Strong project leadership Computerized back-end processes

Infrastructure for widespread access

Identify specific benefits Government staff responsive to citizen requests for information and services

Strong political will and leadership Culture of information sharing across agencies

Build awareness of new mode of information dissemination

Standardization and simplification of rules, forms and information

Re-engineering to reduce discretion with staff Significant efforts in change management Strong networking infrastructure

Media and NGOs as facilitators Adequate privacy and security Right to information

Source: Author.

A new structure for implementation of e-government, adequate funding and capacity building at various levels is needed to make countries move to the last stage of e-government aimed at integration across various agencies and complete transformation of processes. NeGP in India is a fine example of the design of such an intervention. However, the design has to be operationalized and traditional weakness in implementation needs to be overcome. Making e-government widespread entails bridging the digital divide, which involves providing access to the Internet to rural areas and setting up of information kiosks. E-government applications that offer value to rural citizens can become the backbone for bridging this divide. Access to these killer applications by privately owned telecentres can make this viable in a short span. Other services will be added once basic viability is ensured. Grassroots organizations

E-Government: The Way Ahead 325

and NGOs have an important role to play in interpreting the information-related needs of rural communities and in making information and knowledge usable by such communities. Many tasks in service delivery such as setting up appointments, updating status, filing complaints, even making small payments can be done through mobile phones. Given the growing penetration of mobile phones in rural areas in many developing countries, the idea of m-government should be fully exploited. If international comparisons and rankings are taken seriously, most developing countries are not ready to embrace a comprehensive programme of e-government. However, a small beginning can always be made by e-enabling some services as long as some concrete benefits can be delivered. Rather than waiting for complete readiness, an approach of learning by trial and consolidating small gains is recommended. The first steps are to identify a few pilot projects in departments that have exposure to computerization, a large interface with the public and are experiencing problems with corruption. Benefits of implementing the pilots need to be articulated in specific terms. Impact on transparency, corruption and cost of access must be the underlying concern. In planning for e-government, countries need to balance their efforts on policy, strategy and action. Whether a country is just embarking on e-government or implementing a comprehensive programme, there is a long way to go to harness the full potential. A major task is to build institutional capacity to usher in a large scale transformation. Training packages would have to be developed for senior levels of bureaucracy and political executives on the potential and challenges of implementing e-government. More substantive training programmes will be needed to train chief information officers and project leaders who will implement specific projects. Often e-government is seen to be just technology. Experience from successful projects suggests that technology is just 20 percent of the whole effort (see Figure 13.2). Getting the technology right is important, but process re-engineering and change management demand far greater attention.

326 Unlocking E-Government Potential Figure 13.2: Enablers of e-government • 20% technology • 30% business process re-engineering

Technology

• 40% change management • 10% managing partners

Process

People

Source: Author.

A few political leaders and civil servants who believe in the idea of reform have initiated innovative applications. The vast majority, however, is yet to awaken to the potential of e-government for reform. The fundamental problem facing governance reform is that those public officials who need to take corrective actions are the same as those who benefit from governance abuses. Reform will only happen through strong leadership that can take on the vested interests. The motivation for doing so may be political (the pressure of public opinion) or simply high minded. The former is more dependable. Therefore, those wishing to promote such reforms will need to identify ways to build such positive political pressures. A large number of sceptics still need to be convinced that investments in ICT are as essential as in other forms of infrastructure. Perhaps more projects and documented research on the impact created by e-government initiatives and the factors that enable successful implementation can provide the clinching argument. This book is an attempt to fulfil this need.

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Annotated List of Web Resources 1.

http://www1.worldbank.org/publicsector/egov/. The World Bank’s e-government page includes information and case studies from developing countries on e-government organized by country, sector or objectives, as well as links to external studies on e-government many from developed countries.

Bibliography 343 2.

http://www.oecd.org/searchResult/0,3400,en_2649_201185_1_1_1_1_ 1,00.html. The OECD’s website offers downloadable reports (in PDF format) on various aspects of government, public participation and ICT including, the OECD Public Management Policy Brief No. 8, ‘The Hidden Threat to E-Government: Avoiding Large Government IT Failures’ 2001. 3. http://www.egovlinks.com/world_egov_links.html. This portal offers resources on e-government including reports, news and links sorted by category. 4. http://www.manchester.ac.uk/aboutus/search/?q=framework%20and %20training%20materials%20on%20e-governance%20for%20developm ent%20&spell=1&access=p&output=xml&ie=UTF8&client=MAN_ aboutus_search&num=10&site=University. Two online reports that offer a framework and training materials on e-governance for development are available at this link from the University of Manchester. 5. http://www.digitalgovernance.org. Digital Governance is a project that explores and disseminates innovative models by which ICT can be used in developing countries to lead to better governance. 6. http://www.hicss.hawaii.edu/diglib.htm. The site, for the annual Hawaii International Conference on Systems Sciences (HICSS), has a digital library with conference papers from all prior HICSS conferences, which includes papers, many technical in nature on various aspects of ICT, including customer relationship management, e-commerce and ICT for healthcare. 7. http://egovernment.developmentgateway.org/. Development Gateway Portal is a place to find knowledge resources focused on development issues and an interactive space where you can share your own work. 8. http://egovonline.net/. The eGov website an initiative by the Centre for Science, Development and Media Studies (CSDMS). eGov is the first monthly magazine on e-Government in Asia-Pacific and Middle East. The magazine provides an extensive coverage on the latest e-Governance news and updates around the globe. 9. http://i4donline.net. The i4d (Information For Development) print magazine provides a platform for exchange of information, ideas, opinions and experiences, both inside and outside the Information and Communication Technology for Development (ICT4D) sector. i4d’s online venture, i4donline.net hosts a range of up-to-date and interactive features. 10. http://www.unpan.org/egovernment.asp. The portal offers a number of resources on e-government including publications, training materials and events sorted region-wise. 11. http://www.ict4d.org. This portal offers resources on ICT, including reports, news and links sorted by category.

344 Unlocking E-Government Potential 12. 13. 14. 15. 16. 17. 18. 19.

www.icasit.org/ecommerce/egovernment.htm. International Center for Applied Studies in Information Technology (ICASIT) portal contains various links and articles regarding the e-governance. http://www.egovnews.org/. A weblog which collects international news articles about e-democracy, e-governance and e-government. http://www.mit.gov.in/default.aspx?id=825. The website of Department of Information and Technology, Ministry of Communications and Information Technology Government of India. http://www.worldbank.org/egovernment. World Bank eGovernment website. http://www.socitm.gov.uk/exchange. SOCITM e-Government Exchange (The Society of Information Technology Management). http://www.iimahd. ernet. in /egov/. Centre for Electronic Governance, IIM Ahmedabad. http://www-sul.stanford.edu/depts/ssrg/africa/elecnet.html. Stanford Africa Internet Directory and Standford Unieversity Library’s Africa Pages. http://www.ecitizen.gov.sg/. Government of Singapore. eCitizen.

Organizations, Institutes 1. 2. 3. 4. 5. 6. 7. 8.

Bridges.org, E-Government page (http://www.bridges.org/e_government). InfoDev—the Information for Development Programme (http://www. infodev.org/). IICD—International Institute for Communication and Development (http://www.iicd.org/). IDPM—Institute for Development Policy and Management (University of Manchester), (http://idpm.man.ac.uk/idpm/). ICA—International Council for Information Technology in government administration (http://www.ica-it.org). APDIP—Asia-Pacific Development Information Programme (http:// www.apdip.net). SDNP—Sustainable Development Networking Programme (http://www. sdnp.undp.org). IEG—Institute for Electronic Government (http://www.ieg.ibm.com).

Journals, Newsletters 1. 2. 3.

Information Technology in Developing Countries (http://www.iimahd. ernet.in/egov/ifip/wg.htm). Quick Links (http://www.qlinks.net/quicklinks/egov.htm). E-government bulletin (http://www.headstar.com/egb).

Bibliography 345

Projects, Reports 1. 2. 3. 4. 5.

IPPR/Citizens Online Research Publications (http://www.citizensonline. org.uk/publications) DigitalGovernance.org—Building and Sustaining Democratic and Accountable Governance Institutions using ICT (http://www.cddc.vt.edu/ digitalgov/gov-publications.html) Resources for the Future (http://www.rff.org) Egypt (http://www.idsc.gov.eg) Ghana—National Committee on Internet Connectivity (http://www.gncic. org.gh)

Index

access to information/transparency, 4, 23, 54, 57, 129, 130, 192, 225, 233, 301 access to internet, online database, 6 accountability, 9, 16, 22, 23, 40, 46, 47, 54–58, 63, 65, 109, 190, 241, 246, 247, 254, 257 administration, 21, 61, 69, 84, 123, 164, 172, 186, 224, 228, 235, 313 Afghanistan, 14 AMC, city civic centers, 186–193 Andhra Pradesh (AP), 13, 14, 20, 37, 38, 44, 52, 75, 85, 99, 111, 112, 129, 131, 132 CARD project, 159, 175–185 CARING Gov, 276–290 e-procurement system, 236–252 e-seva, 200–220 VOICE, 193–196 anti-corruption index (ACI), 62 AP state-wide area network, 99, 104 Asia, 11, 16, 18, 24, 113 ASYCUDA, 86, 87, 222 Australia, 24, 95, 108 automated system for customs data. See ASYCUDA automation/automating, 6, 17, 60, 68, 76, 79, 80, 81, 86, 88, 141, 192, 195, 218, 239, 245, 271, 273, 274, 279, 282, 284, 288, 292, 311, 316 auxiliary nurse midwives (ANM), 127, 132

back-end computerization, 80, 115, 116, 123, 233 and Bahia, Brazil, 81 BancaSAT, 226–230, 234–236 B2C, 4, 201, 203 benefits and costs, 112, 150, 170– 172, 180–182, 245–250, 264–265, 271–272, 282–283 Bhoomi, 20, 23, 43, 45, 55, 82, 85, 87, 90, 120, 124, 129, 135, 158, 160–174 BOT/BOOT models, 105, 208 bottom-up approach, 96–98 Brazil, 12, 13, 17, 22, 32, 81, 131 BSNL, 202, 203 Budget and Management (PSDBM), 256 Bulgaria, 13 business process re-engineering (BPR), process re-engineering, 79, 252 Cameroon, 13 CARD, 20, 43, 90, 105, 112, 158, 159, 175–185, 211 CARING Gov, 44, 276–290 Central and Eastern Europe, 16 change management, 20, 79, 81, 99, 112, 183, 198, 243, 251, 274, 280, 326 Chawla, Rajeev, 174 Chief Information Officers, 103, 112, 243, 251, 266, 285, 325

Index 347 Chief Technology Officers, 103 Chile, 12, 13, 17, 32, 45, 46, 75, 108, 253–255, 258 Internal Taxation Service (SII), 230–234 China, 13, 19, 22, 24, 32 citizen facilitation centers (CFC), 12, 197–199 citizen identification cards, 97, 98 citizen participation, 22 Clift, Steven, 8 CMC Limited, 195, 294 Columbia carrot-and-stick approach, 98 community service centres/online service delivery counters, 5, 17, 24, 26–28, 82, 323 complex execution, 101 computerization of land records, 91, 124, 157, 160–174 computerization of property registration, 34, 36, 52, 53, 158, 175–185 computerized interstate checkposts, 20, 63, 267–274 computerized treasuries, 14, 39, 275–276, 290–299 corruption/administrative corruption, 10, 16, 22, 23, 30, 38, 45–47, 49–56, 58–65, 85, 87, 99, 109, 110, 112, 129, 140, 158, 169, 183, 253, 267, 268, 272–274, 322 cost reduction/lower costs, 4, 15, 42–43, 118, 129, 137, 140, 229, 258 CRISTAL website, Argentina, 56 cryptography, 107 CSCs, 104, 122, 123, 126 customer orientation, 96 customs online, 13, 32, 262 CVC website, 64 cyber law, 107–108, 319

delivery models, 138 delivery of services/service delivery, 3, 4, 6, 10, 13, 15, 16, 21, 26, 27, 29–31, 36, 42, 50, 51, 61, 63, 68, 76, 80, 82, 84–85, 98, 104, 115, 122, 127, 131, 139, 150, 177, 217, 218, 226, 276, 322, 323, 325 Department of Revenue, Karnataka, 160 design of e-government portal, 301–302 digital divide/ICT divide, 8, 9, 17, 27, 28, 120, 324 DPR, 68, 72 e-commerce, 1, 2, 4, 6, 21, 107, 254 economic analysis across three projects, 36, 41 economic analysis across two projects, 77–78 e-democracy, 8 education, Gujarat, 186 e-governance, 2, 7–10, 19, 20, 39, 42, 50, 94, 96, 99, 104, 111, 124, 184, 192, 212, 264, 277 Electronic Data Interchange (EDI), 86, 259, 261, 262, 266, 308 electronic delivery of services, 6, 80, 131, 141, 218 electronic procurement system (EPS), 236, 255–257 electronic voting system, 22 empowerment, 4, 7, 15, 22, 29, 50, 128, 129, 317, 322 enablers of e-government, 326 environment legal enabling, 106–107 supportive, 95 e-panchayat, 20, 122, 125–126 e-procurement, 13, 16, 20, 23, 27, 41, 44, 52, 75, 221, 236, 257–258

348 Unlocking E-Government Potential in Andhra Pradesh, India, 237–252 in Chile, 253–255 in Korea, 252–253 Philippine and, 255–257 e-readiness/e-government readiness, 24–26, 95–96, 136, 303, 325 e-seva, 13, 20, 43, 70, 159, 200–220 e-stamping, 224 e-tendering, 236 Freenet, 8 FRIENDS, 75, 131 G2C, 4, 52, 59, 201, 202 gender focus, 130–132 G2G, 4, 275, 276, 290, 304 Giro (electronic fund transfers), 224 good governance, 10, 322 governance, 2, 9, 10, 22, 36, 40, 41, 46–49, 57, 67, 93, 129, 137, 139, 140, 143, 170, 180, 190, 322, 326. See also e-governance government information, 15, 63, 101, 301 Guatemala, 12, 221, 226–230, 234 Gujarat, 13, 20, 32–34, 37, 45, 51, 53, 118, 125–127, 158, 191, 222, 267–269, 271, 272, 277 impact assessment, 31, 38, 133, 136–139, 150, 151 impact on agency, 47, 149 impact on corruption, 51–52, 59, 61, 63 impact on service delivery to citizens, 15–16, 27, 29 implementation period, 101 increased revenue collection/revenue, 16, 137, 199 increased transparency, 4, 61, 233, 254, 265, 317 incremental change, 109–110, 258

India, 12–14, 17–20, 22–25, 64, 74, 75, 82, 108, 111, 116, 118, 121, 134, 157–159, 195, 241, 267, 275, 285, 299, 324 back-end computerization, need of, 115 CARD project, in Andhra Pradesh (see CARD) CARING Gov application, 277 e-government in challenges for, 94 status of, 26–27 e-government projects benefits for citizens, 31–32 impact of, 50, 52 private sector and, 105 e-procurement initiatives, 237 ICES system, 261–262 income tax department, computerization of, 233 land record computerization (see Bhoomi) MCA21 e-Governance Project, 38–40 National e-governance plan (NeGP), 104, 122 pro-poor e-government applications, 127–130 Right to Information (RTI) Act, 58 transfers of, government employees, 59–60 Indian Customs Electronic Data Interchange (EDI) System (ICES), 259–266 information services department, 99 Inland Revenue Authority of Singapore (IRAS), 44, 223 Integrated Financial Management System (IFMS), 14, 16–17, 43 integrated portal, 14, 15, 312 internet penetration, 5, 11, 17, 19, 42–43, 71, 257, 258, 323

Index 349 IVRS, 264, 293, 295 IVRS-Interactive voice response system, 264, 293, 295 KDMC, 196–199 Kolkata, 81 leadership, 6, 62, 80, 90–92, 96, 98, 100, 102, 103, 213, 251, 290, 323, 324, 326 legal and economic frameworks, 106–109 life cycle of, e-government project, 66–74 Lokvani, UP, 124 low hanging fruit, 11, 101 Madhya Pradesh, 33, 34, 51, 129 Mauritius, 13, 14, 96 MCA21, 13, 38, 39–40, 145 measurable benefits, 67, 73, 76, 137, 323 MERX Service, Canadian government, 255 methodology for measuring impact on clients, 139 Mexico, 12, 13, 106 Minnesota Electronic Democracy Project (MN E-D Project), 8 MIS, 127, 132, 140, 249, 252, 295 Mission Mode Projects (MMP), 99, 104, 105, 122, 125, 221–222 Mobile Assistance Service Centre (SAC), 131–132 mobile computing, 3 multi-device/multi-channel access, 7 Mumbai Municipal Corporation, 59 Nalgonda district, Andhra Pradesh, 132 National e-governance plan (NeGP), 19, 27, 77, 99, 104–105, 122, 123, 125, 157–159, 222, 324

National Informatics Centre (NIC ), 111, 164, 170, 261, 266 national strategy, 96, 97, 111 N-logue, 216 number of trips in the manual system, 34 one-stop shop portals, 201 online income tax, 221, 223 in Chile, 230–233 in Guatemalan, 226–230 in India, 233–234 in Singapore, 223–226 Online Income Tax Administration, 223–225, 235 online public grievance redressal, 59, 117, 129, 189 online radio, 18, 82, 129, 130, 197 OpenSecrets.org, 57 OPEN system, 61–63 panchayat websites, 13 Panneervel, P., 268, 272 payment gateways, 18, 107, 193, 198 Personal Digital Assistants (PDAs), 127, 131, 132 Personal Identification Number (PIN), 225, 226 Philippines, 13, 20, 24, 25, 32, 64, 108, 255–258 political support, 89, 112, 160, 173, 210, 211, 222, 254, 255, 258, 274, 276, 285 political will, 96, 165, 258, 324 poverty reduction/alleviation of poverty, 22, 140, 149, 172, 322 power infrastructure, 117, 118, 269 privacy, 18, 28, 42, 58, 83, 96, 107, 318, 324 privatization, 108–109, 280 processing time, 17, 29, 70, 87, 230–231, 265, 283

350 Unlocking E-Government Potential

quality of service, 22, 36, 40, 59, 137, 140, 155–156, 167, 170, 180, 190, 191, 236, 250, 272, 297 quasi-government agency, 323 quick-strike projects, 99–101, 111

security, 5, 7, 18, 28, 58, 67, 83–84, 96, 107, 155, 229, 231, 244, 245, 264, 316, 324 service delivery portals, 19, 82 Singapore, 12, 14, 25, 32, 42, 44, 94, 108, 223–226, 235, 316 Singapore e-citizen portal, 315, 316 SmartGov, 88, 112, 276. See also CARING Gov software (problems/development), 19, 88, 91, 96–98, 105, 164–166, 170, 200, 214, 215, 270, 271, 281, 282, 289 South Asia, 15, 18, 24 Sri Lanka, 20, 25, 82, 116 stages of e-government, 6–7, 324 stakeholders, 7, 10, 29, 30, 63, 66, 67, 74, 76, 80, 89, 90, 95, 100, 109, 111, 134, 139, 140, 142, 148, 189, 228, 243, 244, 258, 274, 284, 299 STD/PCO, 116 successful implementation, 80, 99, 104, 251, 258, 299, 326 Superintendencia de Administración Tributaria (SAT), 226–230, 236

Record of Right (RoR), 34–36, 53, 74, 157 Republic of Korea, 24, 25, 108, 252–253 Requirement Definition Report (RDR), 69 resistance, 17, 23, 44, 80, 87–90, 92, 95, 100, 109, 110, 173, 183, 228, 229, 254, 256, 277, 284–288 Right to Information, 58, 130, 153, 189, 324 risk in implementation, 100, 133 rural communities, 120, 128, 129, 132, 305, 325

Tamil Nadu, 277 Teachers’ transfers in Karnataka, India, 60 telecentre/rural internet kiosk, 23, 115–117, 119–122, 127, 324 telecom, 3, 24, 25, 57, 108, 118, 184 Thailand, 20, 24, 25, 127 touch screens, 118, 162, 166, 264 treasury computerization, Khajane, 39, 276, 290–299 Tunisia, 14 Turkey, 13 Twin Cities, 8, 200, 205

securing e-government systems, 84

UNCITRAL Model Law, 108

project champion, 67, 100, 117, 225, 243, 251, 273, 299 project deliverables, 91 project management, 73–74, 90, 103, 121, 207 project scale and scope, 93 pro-poor e-governance, 115, 119, 123, 127 Public Affairs Centre, Bangalore, 167 public agency/agencies, 49, 106, 109, 151, 253, 254 Public Distribution System (PDS), 77, 78 public–private partnership, 6, 7, 61, 103–106, 207, 217, 218, 240, 241 public sector/government reform, 21, 23, 49, 50, 94–95, 184 publishing on web/web publishing, 19, 59, 307

Index 351 United Kingdom (UK), 14, 25, 302, 309, 315 video conferencing, 14, 125 Vietnam, 24, 25 VOICE, 105, 193–196

wide area networks (WAN), 3, 197, 291 The World Bank, 54–56, 126, 134, 237 World Development Report, 8 Yemen, 14, 87

waiting time in manual system, 35, 38, 41, 77, 157–158, 169, 170, 180, 191, 250, 272, 297

About the Author

Subhash Bhatnagar is an alumnus of Mayo College, Ajmer, IIT Madras and IIM Ahmedabad (IIMA). He has been a Professor of Information Systems at the IIMA since 1975. In his many years at IIMA he held the CMC Chair Professorship in Information Technology, served as the Dean and was a member of the Board of Governors. He was instrumental in establishing and coordinating the activities of two research centres at the IIMA, Centre for Electronic Governance and Telecom Policy Study Centre. From 2000 to 2006, he worked for the World Bank in Washington DC to mainstream e-government in the activities of the World Bank. At present he divides his time between teaching and research at IIMA as an Adjunct Professor and advising different institutions which work on e-government. Professor Bhatnagar’s research has focused on ICT for development, e-government and e-commerce. He has published 80 research papers and seven books. He is the Founder Chairman of the International Federation of Information Processing (IFIP) Working Group on Social Implications of Computers in Developing Countries and was the Chief Editor of the International Journal of Information Technology and Development. He also publishes a quarterly newsletter on Information Technology in Developing Countries, is on the editorial boards of half a dozen international journals and is a recipient of the IFIP Silver Core and the Fellowship of the Computer Society of India.