Nagy Hanna Senior Advisor, e-Development, World Bank Senior Advisor, e-Development, World Bank Chair, e-Development Services Thematic Group Mainstreaming e-Development Video-Seminar October 18 and 20, 2004 Implementing National ICT Strategies: How the World Bank Can Help The Case of E-Sri Lanka

What is e-Development E-Development is about transition to knowledge economy by leveraging its driving force - Information and Communication Technologies (ICT) for competitiveness and equity. E-Development is about transition to knowledge economy by leveraging its driving force - Information and Communication Technologies (ICT) for competitiveness and equity. E-Development is not only about technical change but also complementary changes to induce development that is effective, and empowering. E-Development is not only about technical change but also complementary changes to induce development that is effective, and empowering.

Benefits of e-Development ICTs’ potential impact: ICTs’ potential impact: –Growth & Competitiveness –Poverty Reduction & Human Development –Public Sector Performance

Growth & Competitiveness ICT as a major sector with one of the highest growth/export potential: ICT as a major sector with one of the highest growth/export potential:  Software export (India, Ireland, Israel)  Services and business process outsourcing (India, Philippines, Caribbean)  Hardware export (Costa Rica, China, Taiwan, Malaysia)  Service and logistics hub (Malaysia, Singapore, Ireland) ICT as enabler for competitiveness: ICT as enabler for competitiveness:  Reduce barriers to entry; increase competition  Lower transaction costs; optimize global supply chains  Promote innovation; share knowledge. E-Administration (Singapore, India, US, Canada)

Macro Impact on Productivity Ireland, Finland, Korea: close to 1% of labor productivity growth ( ) due to productivity growth in ICT manufacture. Ireland, Finland, Korea: close to 1% of labor productivity growth ( ) due to productivity growth in ICT manufacture. US: TFP rate almost doubling (95-02) due to ICT and complementary investments (Brynjolfsson) US: TFP rate almost doubling (95-02) due to ICT and complementary investments (Brynjolfsson) ICT accounts for much of Europe’s lag behind US in recent growth performance (EIU). ICT accounts for much of Europe’s lag behind US in recent growth performance (EIU). Due to differences in effectiveness of ICT use, not ICT investment levels. Due to differences in effectiveness of ICT use, not ICT investment levels.

Poverty Reduction & Human Development Connecting the rural poor to critical information Connecting the rural poor to critical information  Portals for rural information, collaboration, learning, participation Empowering SMEs and micro-enterprises Empowering SMEs and micro-enterprises Empowering Communities Empowering Communities  Improving access and quality of service in remote areas; CDD Education Education  Lifelong learning through distance education and open universities  Distribution of uptodate educational material Health & Social security Health & Social security  Access to info and services; remote consultations.  Transforming social security systems: Russia, CIS, LCR

Public Sector Performance Increasing efficiency of government operations Increasing efficiency of government operations  E-Procurement (Brazil, Chile, Mexico, Romania)  IFMS; decentralization; M&E LCR)  E-Admin. (Singapore, India, Canada) Improving quality of public services and reducing transaction costs Improving quality of public services and reducing transaction costs  Example: India, land records, extension, registry, forms. Improving business and investment climate Improving business and investment climate  Customs, trade net, port (Singapore).  Websites for FDI: Vietnam Increased transparency and accountability Increased transparency and accountability  Example: Seoul’s OPEN for applications; Argentina’s. Cristal for budget

Why an e-Development Strategy? Beyond pilots: increase sustainability, scalability, impact Beyond pilots: increase sustainability, scalability, impact Beyond sectoral components: overcome systemic problems Beyond sectoral components: overcome systemic problems Beyond ministerial silos: create e-Gov frameworks, common infrastructures, databases, standards Beyond ministerial silos: create e-Gov frameworks, common infrastructures, databases, standards Beyond technology: promote cross-sector, holistic approach with synergies between policy, Information Infrastructure, Human Resources, e- Gov, e-Commerce, telecenters, content and software services Beyond technology: promote cross-sector, holistic approach with synergies between policy, Information Infrastructure, Human Resources, e- Gov, e-Commerce, telecenters, content and software services

Why an e-Development Strategy? Need for enlightened leadership to drive policy reforms and institutional change- cannot afford a ‘wait and see’ attitude Need for enlightened leadership to drive policy reforms and institutional change- cannot afford a ‘wait and see’ attitude Need for focusing scarce resources; sequencing and phasing of complementary investments Need for focusing scarce resources; sequencing and phasing of complementary investments Need for partnerships: Public-Private-NGOs Need for partnerships: Public-Private-NGOs Need to integrate into country development strategy, PRSP, competitive strategy Need to integrate into country development strategy, PRSP, competitive strategy Framework for donor coordination in ICT- exploitation of network effects Framework for donor coordination in ICT- exploitation of network effects Framework to enable pilots, bottom-up initiatives, shared learning and scaling up Framework to enable pilots, bottom-up initiatives, shared learning and scaling up Link to Millennium Development Goal: outcome M&E. Link to Millennium Development Goal: outcome M&E.

e- Leadership, Policies & Institutions E-Government E-Business & ICT Industry e-Dev Strategy Framework e-Society Information Infrastructure

e-Sri Lanka Case Study

The e-Lanka Story USAID-funded ICT cluster study USAID-funded ICT cluster study PM asks for Bank support at highest levels. PM asks for Bank support at highest levels. Bank works with stakeholders to clarify vision Bank works with stakeholders to clarify vision Linking e-dev to “Regaining Sri Lanka”, PRSP Linking e-dev to “Regaining Sri Lanka”, PRSP Highest-level government support nurtured Highest-level government support nurtured Developing e-leadership at several levels Developing e-leadership at several levels Passing ICT bill and enabling laws Passing ICT bill and enabling laws Piloting, demonstrating, learning Piloting, demonstrating, learning Designing comprehensive multi-year program Designing comprehensive multi-year program

I. ICT Policy, Leadership and Institutional Development Nurturing leadership: ICT Agency, CIOs, Cabinet committee, Admin Reform Committee Nurturing leadership: ICT Agency, CIOs, Cabinet committee, Admin Reform Committee  Balancing top down leadership and bottom up learning and innovation: NGOs. local governments.  Partnering with private sector: India, Armenia.  Enabling e-laws & telecom reforms.  building capabilities for NGOs, communities  Program management, M & E, piloting and learning  Singapore, India, Turkey, Romania, Russia, Armenia

I. ICT Policy, Leadership and Institutional Development Some Anticipated Outcomes Some Anticipated Outcomes  Effective policy and institutional environment for ICT use in public and private sectors  Effective ICT leadership among top government officials, business and civil society leaders  Effective multi-stakeholder partnership framework  Effective national coordination of ICT programs and projects, particularly for e-government.  Enhanced country brand of ICT capabilities  Augment resources & coherent investment (FDI, donors)

II. ICT Education and Industry Promotion ICT Capacity Building Fund (ICBF): competitive grants, fee-based contracting for ICT Capacity Building Fund (ICBF): competitive grants, fee-based contracting for  Innovative ICT training  Promotion of FDI in ICT and enabled services  Diffusion of ICT in SMEs  Domestic software industry promotion Some Anticipated Outcomes: Some Anticipated Outcomes:  increased employment in software & ICT industry  increased software exports  improved competitiveness of local industry, SMEs

III. Information Infrastructure Rural Connectivity Rural Connectivity  Smart subsidy scheme to extend access in rural areas, encourage private participation  Poorest regions to be targeted: rural areas in the South; post-conflict regions of North and East  Telecenter Program  Implementation partnerships: Public-Private, NGOs  Competitive recruitment for telecenter operators; associated with Telecenter Support Institutions  Community outreach to enable distance learning, computer training, academic curriculum support

Telecenters: Roles and Responsibilities Telecenter Operators Telecenter Support Institutions Rural Telecom Operators Community Community-Based Approach; Inclusion of vulnerable groups Local entrepreneurs to run telecenters; Allow several viable models Build Local Capacity: NGOs, Universities, Private companies Subsidy scheme to guarantee affordable connectivity Sectoral Institutions as content providers

III. Information Infrastructure Some Anticipated Outcomes: Some Anticipated Outcomes:  Improved affordability & availability of services  Reduced transaction costs: citizens, businesses  Increased private sector investment in information infrastructure  Enabled e-commerce and services leading to higher employment and entrepreneurship in rural areas  Mobilization and sharing of local knowledge  Empowerment of target groups through community driven development

IV. Re- Engineering Government  Establish vision, policy, strategy  Pilot and phase strategic applications  Human and business processes: restructuring, information sharing, KM, community of practice  Identify needs of government clients and underlying common information infrastructure:  Leadership: E-Parliament, E-Cabinet  E-citizen services  Public financial management: taxes, customs, budget  E-procurement; project MIS  Key infrastructure: portal; government-wide network; population registry; land info; national smart card  Common technology standards for information sharing

IV. Re- Engineering Government Some Anticipated Outcomes: Some Anticipated Outcomes:  transparency in government operations  client-focused processes  government accountability for service level standards  electronic sharing of data across agencies  separation of service delivery from transaction processing  always-on, user-friendly, distance-neutral information and service facilities to citizens and businesses  selective unbundling and privatization in provision of public services

E-Government: Evolution or Revolution? Delivering Value To Citizens Complexity of Implementation and Technology Web Presence information on rules and procedures Limited Interactions contact, access to online databases & downloadable forms via intranets Transactions Electronic delivery of services automated, e.g., renewal of licenses Transformation All stages of transactions electronic. New models of service delivery with public-private partnerships

Road Map and Journey How to accelerate evolution to transformation? How to accelerate evolution to transformation? How to orchestrate various elements of e- development to support e-government? How to orchestrate various elements of e- development to support e-government? The role of leaders, change agents and administrative reform processes. The role of leaders, change agents and administrative reform processes. Developing processes and tools: CIO council, technology architecture, IT budget, etc. Developing processes and tools: CIO council, technology architecture, IT budget, etc. Developing roadmap/plan: multi-year prioritized investments in common platforms and infra. Developing roadmap/plan: multi-year prioritized investments in common platforms and infra. Promoting learning; sharing of best practice. Promoting learning; sharing of best practice.

V. e-Society E-Society Fund: competitive grants to local community organizations, NGOs, private companies E-Society Fund: competitive grants to local community organizations, NGOs, private companies Grants to focus on innovative, socially relevant ICT pilot projects; possibility of increasing scale and scope Grants to focus on innovative, socially relevant ICT pilot projects; possibility of increasing scale and scope Some Anticipated Outcomes: Some Anticipated Outcomes:  increased awareness of ICT among rural and urban poor  improved community capacity for utilizing ICT to meet local needs  increased economic opportunity and equity through wide use of ICT in agriculture, health, education  Empowerment of women and youth

Lessons Learned ICT pervasive impact, not an isolated pillar ICT pervasive impact, not an isolated pillar Need to integrate ICT into core development strategy. Not ICT vs. education, but ICT to enable all sectors & meet basic needs better. Need to integrate ICT into core development strategy. Not ICT vs. education, but ICT to enable all sectors & meet basic needs better. From development vision to e-Development. From development vision to e-Development. Need to adopt a strategic approach. Balance top direction and bottom initiative. Set vision, priorities, standards, sequence of investments Need to adopt a strategic approach. Balance top direction and bottom initiative. Set vision, priorities, standards, sequence of investments E-leadership and CIO roles key. E-leadership and CIO roles key.

Lessons Learned (cont’d) Quick wins - high-priority e-services that are relatively simple, have a high transaction volume, and involve a large group of clients. Pilots integral to strategy implementation. Quick wins - high-priority e-services that are relatively simple, have a high transaction volume, and involve a large group of clients. Pilots integral to strategy implementation. Partnership between government, private sector, civil society donors, and diaspora. Partnership between government, private sector, civil society donors, and diaspora. Avoid technology focus: ensure complementary investment. Skills, organizational innovation, and incentives are crucial to make technology work. Avoid technology focus: ensure complementary investment. Skills, organizational innovation, and incentives are crucial to make technology work. No “one-size-fix-all" strategies. No “one-size-fix-all" strategies.

Mainstreaming e-Development: Challenges to Countries Coalition for reform and implementation: from paper strategies to practice Coalition for reform and implementation: from paper strategies to practice Links to country development strategy and budget framework Links to country development strategy and budget framework Focus and priority setting Focus and priority setting E-Leadership and implementation capacity E-Leadership and implementation capacity Early results and adaptive planning Early results and adaptive planning

Main Challenges to Aid Agencies Mainstreaming ICT into development agenda and Country Assistance Strategies. Operationalize WSIS? Ownership by operational departments. Mainstreaming ICT into development agenda and Country Assistance Strategies. Operationalize WSIS? Ownership by operational departments. Avoid pitfall of e-development as technology fix Avoid pitfall of e-development as technology fix Building core competency across turfs and sectors. Building core competency across turfs and sectors. Knowledge sharing; partnerships. Knowledge sharing; partnerships. Empowering e-champions and integrators. Empowering e-champions and integrators.