1. E-Government: Opportunities and Challenges in India
Subhash Bhatnagar
Indian Institute of Management, Ahmedabad
and
Consultant, PREM Public Sector, World Bank

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

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

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

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

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

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

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

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

10. Enablers of e-Government
20 % Technology
35 % Business Process Reengineering
40 % Change Management
5% Luck !
Technology
Process
People

11. Organization for Implementing E-government
A champion at the political level
Ministerial level co-ordination committees
A central support group
Departmental Champions and co-ordination committee
Institution for Training
Private sector partners

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

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

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

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

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

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

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

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

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

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

23. Type of Information being made transparent
Resulting benefits
Rules and procedure governing services; public officials responsible for different tasks; citizen’s charter; Enhancing citizen’s exposure
Standardizes procedures for delivery of service. Reduces arbitrariness, e.g. demand for additional documents
Information about decisions and actions of government functionaries: outcome and process e.g. award of contracts and license, allocation of resources.
Exposure of corruption and improved accountability
Data about individual entities in Government records such as land records, comments on application for license, bill of entry for goods, status of tax payments.
Exposure of manipulation for exchange of bribe and corruption
Information on performance of economy: Statistical employment, income, trade etc.
Performance indicator for Government departments
Civic engagement in governance
Greater accountability
Names of citizens with large outstanding loans, taxes; civil servants under investigation or convicted, index of corruption, performance of investigating agencies.
A kind of punishment for the corrupt through public exposure
Disclosure of assets, income, profile of election candidates, elected representatives, ministers and civil servants
Creates disincentive for corruption by creating fear of exposure

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