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Nagy HannaNagy Hanna
Senior Advisor, e-Development, World Senior Advisor, e-Development, World BankBank
Chair, e-Development Services Chair, e-Development Services Thematic GroupThematic Group
Mainstreaming e-Development Video-SeminarMainstreaming e-Development Video-SeminarOctober 18 and 20, 2004October 18 and 20, 2004
Implementing National ICT Implementing National ICT Strategies: Strategies:
How the World Bank Can HelpHow the World Bank Can Help
The Case of E-Sri LankaThe Case of E-Sri Lanka
What is e-DevelopmentWhat is e-Development
E-Development is about transition to E-Development is about transition to knowledge economy by leveraging its knowledge economy by leveraging its driving force - Information and driving force - Information and Communication Technologies (ICT) for Communication Technologies (ICT) for competitiveness and equity. competitiveness and equity.
EE--Development Development is not only about technical is not only about technical change but also complementary changes to change but also complementary changes to induce induce development that is effective, and development that is effective, and empowering.empowering.
Benefits of e-DevelopmentBenefits of e-Development
ICTs’ potential impact: ICTs’ potential impact:
– Growth & CompetitivenessGrowth & Competitiveness
– Poverty Reduction & Human Poverty Reduction & Human
Development Development
– Public Sector PerformancePublic Sector Performance
Growth & Growth & CompetitivenessCompetitiveness
ICT as a major sector with one of the ICT as a major sector with one of the highest growth/export potential:highest growth/export potential:
Software export (India, Ireland, Israel)Software export (India, Ireland, Israel) Services and business process outsourcing (India, Services and business process outsourcing (India,
Philippines, Caribbean)Philippines, Caribbean) Hardware export (Costa Rica, China, Taiwan, Hardware export (Costa Rica, China, Taiwan,
Malaysia)Malaysia) Service and logistics hub (Malaysia, Singapore, Service and logistics hub (Malaysia, Singapore,
Ireland)Ireland) ICT as enabler for competitiveness:ICT as enabler for competitiveness:
Reduce barriers to entry; increase competitionReduce barriers to entry; increase competition Lower transaction costs; optimize global supply Lower transaction costs; optimize global supply
chainschains Promote innovation; share knowledge. Promote innovation; share knowledge. E-E-
Administration (Singapore, India, US, Canada)Administration (Singapore, India, US, Canada)
Macro Impact on Macro Impact on ProductivityProductivity
Ireland, Finland, Korea: close to 1% of labor Ireland, Finland, Korea: close to 1% of labor productivity growth (95-2000) due to productivity growth (95-2000) due to productivity growth in ICT manufacture.productivity growth in ICT manufacture.
US: TFP rate almost doubling (95-02) due to US: TFP rate almost doubling (95-02) due to ICT and complementary investments ICT and complementary investments (Brynjolfsson)(Brynjolfsson)
ICT accounts for much of Europe’s lag ICT accounts for much of Europe’s lag behind US in recent growth performance behind US in recent growth performance (EIU).(EIU).
Due to differences in effectiveness of ICT Due to differences in effectiveness of ICT use, not ICT investment levels.use, not ICT investment levels.
Poverty Reduction & Poverty Reduction & Human DevelopmentHuman Development
Connecting the rural poor to critical Connecting the rural poor to critical informationinformation Portals for rural information, collaboration, learning, Portals for rural information, collaboration, learning,
participationparticipation Empowering SMEs and micro-enterprisesEmpowering SMEs and micro-enterprises Empowering CommunitiesEmpowering Communities
Improving access and quality of service in remote areas; CDDImproving access and quality of service in remote areas; CDD EducationEducation
Lifelong learning through distance education and open Lifelong learning through distance education and open universitiesuniversities
Distribution of uptodate educational materialDistribution of uptodate educational material
Health & Health & Social securitySocial security Access to info and services; remote consultations.Access to info and services; remote consultations. Transforming social security systems: Russia, CIS, LCRTransforming social security systems: Russia, CIS, LCR
Public Sector Public Sector PerformancePerformance
Increasing efficiency of government Increasing efficiency of government operationsoperations E-Procurement (Brazil, Chile, Mexico, Romania)E-Procurement (Brazil, Chile, Mexico, Romania) IFMS; decentralization; M&E LCR)IFMS; decentralization; M&E LCR) E-Admin. (Singapore, India, Canada)E-Admin. (Singapore, India, Canada)
Improving quality of public services and Improving quality of public services and reducing transaction costsreducing transaction costs Example: India, land records, extension, registry, forms. Example: India, land records, extension, registry, forms.
Improving business and investment climateImproving business and investment climate Customs, trade net, port (Singapore).Customs, trade net, port (Singapore). Websites for FDI: VietnamWebsites for FDI: Vietnam
Increased transparency and accountabilityIncreased transparency and accountability Example: Seoul’s OPEN for applications; Argentina’s. Example: Seoul’s OPEN for applications; Argentina’s.
Cristal for budgetCristal for budget
Why an e-Development Why an e-Development Strategy?Strategy?
Beyond pilots: increase sustainability, Beyond pilots: increase sustainability, scalability, impactscalability, impact
Beyond sectoral components: overcome Beyond sectoral components: overcome systemic problemssystemic problems
Beyond ministerial silos: create e-Gov Beyond ministerial silos: create e-Gov frameworks, common infrastructures, frameworks, common infrastructures, databases, standardsdatabases, standards
Beyond technology: promote cross-sector, Beyond technology: promote cross-sector, holistic approach with synergies between holistic approach with synergies between policy, Information Infrastructure, Human policy, Information Infrastructure, Human Resources, e-Gov, e-Commerce, Resources, e-Gov, e-Commerce, telecenters, content and software servicestelecenters, content and software services
Why an e-Development Why an e-Development Strategy?Strategy?
Need for enlightened leadership to drive policy Need for enlightened leadership to drive policy reforms and institutional change- cannot afford reforms and institutional change- cannot afford a ‘wait and see’ attitudea ‘wait and see’ attitude
Need for focusing scarce resources; sequencing Need for focusing scarce resources; sequencing and phasing of complementary investments and phasing of complementary investments
Need for partnerships: Public-Private-NGOsNeed for partnerships: Public-Private-NGOs Need to integrate into country development Need to integrate into country development
strategy, PRSP, competitive strategystrategy, PRSP, competitive strategy Framework for donor coordination in ICT- Framework for donor coordination in ICT-
exploitation of network effects exploitation of network effects Framework to enable pilots, bottom-up Framework to enable pilots, bottom-up
initiatives, shared learning and scaling upinitiatives, shared learning and scaling up Link to Millennium Development Goal: outcome Link to Millennium Development Goal: outcome
M&E.M&E.
e- Leadership,Policies &
Institutions
E-Government
E-Business & ICT
Industry
e-Dev Strategy Framework
e-Society
Information Infrastructure
The e-Lanka StoryThe e-Lanka Story
USAID-funded ICT cluster studyUSAID-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 Bank works with stakeholders to clarify
visionvision Linking e-dev to “Regaining Sri Lanka”, PRSPLinking e-dev to “Regaining Sri Lanka”, PRSP Highest-level government support nurturedHighest-level government support nurtured Developing e-leadership at several levelsDeveloping e-leadership at several levels Passing ICT bill and enabling lawsPassing ICT bill and enabling laws Piloting, demonstrating, learningPiloting, demonstrating, learning Designing comprehensive multi-year programDesigning comprehensive multi-year program
I. ICT Policy, Leadership and I. ICT Policy, Leadership and Institutional DevelopmentInstitutional Development
Nurturing leadership: ICT Agency, CIOs, Cabinet Nurturing leadership: ICT Agency, CIOs, Cabinet committee, Admin Reform Committee committee, Admin Reform Committee
Balancing top down leadership and bottom up Balancing top down leadership and bottom up learning and innovation: NGOs. local governments.learning and innovation: NGOs. local governments.
Partnering with private sector: India, Armenia. Partnering with private sector: India, Armenia. Enabling e-laws & telecom reforms.Enabling e-laws & telecom reforms. building capabilities for NGOs, communitiesbuilding capabilities for NGOs, communities Program management, M & E, piloting and learningProgram management, M & E, piloting and learning Singapore, India, Turkey, Romania, Russia, ArmeniaSingapore, India, Turkey, Romania, Russia, Armenia
I. ICT Policy, Leadership I. ICT Policy, Leadership and Institutional and Institutional
DevelopmentDevelopment Some Anticipated OutcomesSome Anticipated Outcomes
Effective policy and institutional environment for Effective policy and institutional environment for ICT use in public and private sectors ICT use in public and private sectors
Effective ICT leadership among top government Effective ICT leadership among top government officials, business and civil society leaders officials, business and civil society leaders
Effective multi-stakeholder partnership frameworkEffective multi-stakeholder partnership framework Effective national coordination of ICT programs Effective national coordination of ICT programs
and projects, particularly for e-government. and projects, particularly for e-government. Enhanced country brand of ICT capabilitiesEnhanced country brand of ICT capabilities Augment resources & coherent investment (FDI, Augment resources & coherent investment (FDI,
donors)donors)
II. ICT Education and II. ICT Education and Industry PromotionIndustry Promotion
ICT Capacity Building Fund (ICBF): competitive ICT Capacity Building Fund (ICBF): competitive grants, fee-based contracting forgrants, fee-based contracting for Innovative ICT trainingInnovative ICT training Promotion of FDI in ICT and enabled servicesPromotion of FDI in ICT and enabled services Diffusion of ICT in SMEsDiffusion of ICT in SMEs Domestic software industry promotionDomestic software industry promotion
Some Anticipated Outcomes:Some Anticipated Outcomes: increased employment in software & ICT increased employment in software & ICT
industryindustry increased software exportsincreased software exports improved competitiveness of local industry, improved competitiveness of local industry,
SMEsSMEs
III. Information InfrastructureIII. Information Infrastructure Rural ConnectivityRural Connectivity
Smart subsidy scheme to extend access in rural Smart subsidy scheme to extend access in rural areas, encourage private participation areas, encourage private participation
Poorest regions to be targeted: rural areas in the Poorest regions to be targeted: rural areas in the South; post-conflict regions of North and EastSouth; post-conflict regions of North and East
Telecenter Program Telecenter Program Implementation partnerships: Public-Private, Implementation partnerships: Public-Private,
NGOsNGOs Competitive recruitment for telecenter operators; Competitive recruitment for telecenter operators;
associated with Telecenter Support Institutionsassociated with Telecenter Support Institutions Community outreach to enable distance learning, Community outreach to enable distance learning,
computer training, academic curriculum supportcomputer training, academic curriculum support
Telecenters: Roles and Telecenters: Roles and ResponsibilitiesResponsibilities
Telecenter Operators
Telecenter SupportInstitutions
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 III. Information InfrastructureInfrastructure
Some Anticipated Outcomes: Some Anticipated Outcomes: Improved affordability & availability of servicesImproved affordability & availability of services Reduced transaction costs: citizens, businesses Reduced transaction costs: citizens, businesses Increased private sector investment in Increased private sector investment in
information infrastructureinformation infrastructure Enabled e-commerce and services leading to Enabled e-commerce and services leading to
higher employment and entrepreneurship in higher employment and entrepreneurship in rural areasrural areas
Mobilization and sharing of local knowledgeMobilization and sharing of local knowledge Empowerment of target groups through Empowerment of target groups through
community driven developmentcommunity driven development
IV. Re- Engineering IV. Re- Engineering GovernmentGovernment Establish vision, policy, strategyEstablish vision, policy, strategy
Pilot and phase strategic applications Pilot and phase strategic applications Human and business processes: restructuring, Human and business processes: restructuring,
information sharing, KM, community of practiceinformation sharing, KM, community of practice Identify needs of government clients and Identify needs of government clients and
underlying common information infrastructure:underlying common information infrastructure: Leadership: E-Parliament, E-CabinetLeadership: E-Parliament, E-Cabinet E-citizen servicesE-citizen services Public financial management: taxes, customs, budgetPublic financial management: taxes, customs, budget E-procurement; project MISE-procurement; project MIS Key infrastructure: portal; government-wide network; Key infrastructure: portal; government-wide network;
population registry; land info; national smart cardpopulation registry; land info; national smart card Common technology standards for information sharingCommon technology standards for information sharing
IV. Re- Engineering IV. Re- Engineering GovernmentGovernment
Some Anticipated Outcomes:Some Anticipated Outcomes: transparency in government operationstransparency in government operations client-focused processesclient-focused processes government accountability for service level government accountability for service level
standards standards electronic sharing of data across agencieselectronic sharing of data across agencies separation of service delivery from transaction separation of service delivery from transaction
processingprocessing always-on, user-friendly, distance-neutral always-on, user-friendly, distance-neutral
information and service facilities to citizens and information and service facilities to citizens and businessesbusinesses
selective unbundling and privatization in selective unbundling and privatization in provision of public servicesprovision of public services
E-Government: Evolution or E-Government: Evolution or Revolution?Revolution?
Deliveri
ng
Valu
e T
o C
itiz
en
s
Complexity of Implementation and Technology
Web Presence
information on rules and procedures
Limited Interactions
Email 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 JourneyRoad Map and Journey
How to accelerate evolution to How to accelerate evolution to transformation?transformation?
How to orchestrate various elements of e-How to orchestrate various elements of e-development to support e-government?development to support e-government?
The role of leaders, change agents and The role of leaders, change agents and administrative reform processes.administrative reform processes.
Developing processes and tools: CIO council, Developing processes and tools: CIO council, technology architecture, IT budget, etc.technology architecture, IT budget, etc.
Developing roadmap/plan: multi-year Developing roadmap/plan: multi-year prioritized investments in common platforms prioritized investments in common platforms and infra.and infra.
Promoting learning; sharing of best practice.Promoting learning; sharing of best practice.
V. e-SocietyV. e-Society
E-Society Fund: competitive grants to local E-Society Fund: competitive grants to local community organizations, NGOs, private companiescommunity organizations, NGOs, private companies
Grants to focus on innovative, socially relevant ICT Grants to focus on innovative, socially relevant ICT pilot projects; possibility of increasing scale and scope pilot projects; possibility of increasing scale and scope
Some Anticipated Outcomes:Some Anticipated Outcomes: increased awareness of ICT among rural and urban increased awareness of ICT among rural and urban
poor poor improved community capacity for utilizing ICT to improved community capacity for utilizing ICT to
meet local needs meet local needs increased economic opportunity and equity through increased economic opportunity and equity through
wide use of ICT in agriculture, health, educationwide use of ICT in agriculture, health, education Empowerment of women and youthEmpowerment of women and youth
Lessons LearnedLessons Learned ICT pervasive impact, not an isolated pillar ICT pervasive impact, not an isolated pillar Need to integrate ICT into core Need to integrate ICT into core
development strategy. Not ICT vs. development strategy. Not ICT vs. education, but ICT to enable all sectors & education, but ICT to enable all sectors & meet basic needs better. meet basic needs better.
From development vision to e-Development.From development vision to e-Development. Need to adopt a strategic approach. Need to adopt a strategic approach.
Balance top direction and bottom initiative. Balance top direction and bottom initiative. Set vision, priorities, standards, sequence Set vision, priorities, standards, sequence of investmentsof investments
E-leadership and CIO roles key.E-leadership and CIO roles key.
Lessons Learned (cont’d)Lessons Learned (cont’d) Quick wins - high-priority e-services that Quick wins - high-priority e-services that
are relatively simple, have a high are relatively simple, have a high transaction volume, and involve a large transaction volume, and involve a large group of clients. Pilots integral to strategy group of clients. Pilots integral to strategy implementation.implementation.
Partnership between government, private Partnership between government, private sector, civil society donors, and diaspora.sector, civil society donors, and diaspora.
Avoid technology focus: ensure Avoid technology focus: ensure complementary investment. Skills, complementary investment. Skills, organizational innovation, and incentives organizational innovation, and incentives are crucial to make technology work.are crucial to make technology work.
No “one-size-fix-all" strategies.No “one-size-fix-all" strategies.
Mainstreaming e-Mainstreaming e-Development: Development:
Challenges to CountriesChallenges to Countries Coalition for reform and Coalition for reform and
implementation: from paper strategies implementation: from paper strategies to practiceto practice
Links to country development strategy Links to country development strategy and budget frameworkand budget framework
Focus and priority settingFocus and priority setting E-Leadership and implementation E-Leadership and implementation
capacity capacity Early results and adaptive planningEarly results and adaptive planning
Main Challenges to Aid Main Challenges to Aid AgenciesAgencies
Mainstreaming ICT into development agenda Mainstreaming ICT into development agenda and Country Assistance Strategies. and Country Assistance Strategies. Operationalize WSIS? Ownership by Operationalize WSIS? Ownership by operational departments.operational departments.
Avoid pitfall of e-development as technology Avoid pitfall of e-development as technology fixfix
Building core competency across turfs and Building core competency across turfs and sectors. sectors.
Knowledge sharing; partnerships.Knowledge sharing; partnerships. Empowering e-champions and integrators.Empowering e-champions and integrators.