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Policy, Leadership and Institutions

Policy, Leadership and Institutions. Randeep Sudan Senior ICT Policy Specialist Global ICT Department. University of Manchester Survey (2003). 35% of egovernment projects total failures 50% partial failures Only 15% successes. Policy. Vision Policy Elements Enabling environment

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Policy, Leadership and Institutions

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  1. Policy, Leadership and Institutions Randeep Sudan Senior ICT Policy Specialist Global ICT Department

  2. University of Manchester Survey (2003) • 35% of egovernment projects total failures • 50% partial failures • Only 15% successes

  3. Policy • Vision • Policy Elements • Enabling environment • e-Legislation • Institutions • Human Resources • Infrastructure • Applications • Use of open source • Private Sector involvement

  4. High Impact Areas • Infrastructure • Rural broadband – Andhra Pradesh (India) • Applications • m-Government – G-Cash (Philippines) • Public Private Partnerships • GCNet (Ghana)

  5. Andhra Pradesh • Area: 275,000 sq kms • Population: 80 million • Per capita income:$464 • National: $480 • Literacy: 60.74% (2001) • Cable penetration: 40% • Administrative units • 23 districts • 1127 mandals • 23,000 villages

  6. The Planned Network • 10 Gbps at the district level (23 districts) • 1 Gbps at the mandal level (1127 mandals) • 100 Mbps at the village level (23,000 villages) • Broadband connectivity to 40,000 government offices for a fixed annual fee • Triple play for voice, video and data

  7. BSNL Estimates of Annual Charges(BSNL: Bharat Sanchar Nigam Limited) • 23 circuits of 10 Gbps each from State headquarters to district headquarters to cost Rs.103,845,228,950 (US$2.3 billion) Letter from General Manager BSNL dated April 16, 2004 to Director Communications, GoAP • “Annual bandwidth charges as per existing rules” • Indicated charge after “discount of 60% on high usage routes and 30% on remaining circuits”!

  8. Rural Broadband • Estimate of OFC network reaching out to 23,000 villages - $125 million • Actual $92 million with government contribution $5.7 million • Cost of Internet and VoIP $2.3 every month • Flexible model – role of cable operators

  9. AP Broadband Consortium • Aksh Optifibre Ltd. (OFC manufacturer) • Railtel Corporation (Government entity) • In Cable Net (Cable Television provider with subscriber base of about 400,000) • Spectranet (ISP) • Verso Technologies (VoIP solutions provider) • Tata Indicom/VSNL (Existing telecom player) • 3Com (Equipment supplier) • Nuziveedu Seeds Ltd. (Cash rich company with local presence)

  10. Policy: Rural Broadband • Rural Broadband as priority • Free Right of Way • Government as anchor client • VoIP permitted in 2004

  11. m-Commerce “During the next decade…the availability of better micropayment systems, mobile connectivity, authentication, and more-granular products and services will transform the commercial landscape.”Source: Gartner Group, Microcommerce Will Transform the Commercial Landscape December 2004

  12. Global Fixed and Mobile Subscribers

  13. Philippines • 32.7 million cellular phones (end 2004) • Filipinos send more than 200 million SMS messages every day • Market share • Globe: 33 percent • Smart: 58 percent

  14. The Problem • Few Filipinos have bank accounts and even fewer have credit cards • Many Filipinos live in poverty • 95 percent of the market is prepaid • Point of sale equipment/card readers not practical • Few bank branches in rural areas

  15. The Mobile Advantage • Customers without bank accounts or credit cards can • Send money phone-to-phone • Buy goods and services • Pay for business permits • Receive micro-financing and international remittances

  16. G-Cash Phone to Phone Remittance

  17. G-Cash Purchase at a Registered Outlet

  18. Other Uses of G-Cash • Micro-donations for tsunami relief • The Philippine Bureau of Internal Revenue using G-Cash for receiving payments for business registration and renewal • Contemplating micro-payment of income taxes • Rural Banks of Philippines piloting G-Cash for loan micro-repayments

  19. Regulatory Framework • Redeemability • Restrictions on the use of liquidity (the float) for investments • Prudential supervision (minimum capital requirements, reporting obligations) • Anti-Money laundering obligations

  20. Policy • Bangko Sentral ng Pilipinas (BSP) endorsed G-Cash for use by banks and with ATMs • BSP ensured that G-Cash complied with security and regulatory requirements including anti-money laundering laws

  21. Ghana: Quick Facts • Population: 20.3 million • GDP (current US$): 6.2 billion  • GNI per capita (current US$): 270.0 Source: World Development Indicators 2004. Data relates to 2002

  22. GCNet (Ghana Community Network) • GCNet established to develop and operate a customized electronic system for processing trade and customs documents • Revenue • 0.4% advalorem on goods for home consumption • Exports no charge

  23. GCNet • Shareholders • Societe Generale de Surveillance 60% • Customs Excise and Preventive Service 20% • Ghana Shippers Council 10% • Ecobank Ghana Limited 5% • Development Finance Holdings Limited 5% • Investment • Equity of $5.3 million (November 2000) • Total investment about $7.5 million

  24. MOF CEPS DIS GPHA AFGO Freight Banks Shipping GSC GSB MOTI Multiple Agencies and Connections AFGO: Airport Authority, CEPS: Customs, DIS: Destination Inspection, GPHA: Harbor Authority, GSB: Ghana Standards Board, GSC: Ghana Shipping Council, MOF: Ministry of Finance, MOTI: Ministry of Trade and Industry

  25. GCNet Interface MOF CEPS DIS GPHA AFGO GCNet Freight Banks Shipping GSC Traders MOTI AFGO: Airport Authority, CEPS: Customs, DIS: Destination Inspection, GPHA: Harbor Authority, GSB: Ghana Standards Board, GSC: Ghana Shipping Council, MOF: Ministry of Finance, MOTI: Ministry of Trade and Industry

  26. Results • Clearance time reduced from 2-3 weeks at Port of Tema to 1-2 days • KIA (Kotoka International Airport) revenue increased by 38.1% in 2003 and by 37.3% in 2004 • Tema revenue increased by 48.7% in 2003 and by 42.5% in 2004

  27. Before…

  28. After…

  29. Leadership • 1996 CIO office became mandatory in agencies of the US government • Federal CIO council in the Office of Management and Budget • A number of countries have adopted the CIO model – Hong Kong is a recent example • Training of CIOs

  30. Institutional Models • Decentralised model – shared responsibility • Germany, Sweden, France • Coordination under President’s/PM’s office • UK, Italy, Japan • Lead ministry • US, Canada, Israel (Finance), South Korea, Australia, Romania, Slovenia (ICT Ministry) • ICT Agency within the Civil Service • Ireland, Singapore, Estonia, Bulgaria

  31. ICT Agency as Public Private Partnership • National Institute of Smart Government in India • Partnership between NASSCOM and the Ministry of Information Technology • Information and Communications Technology Agency (ICTA) in Sri Lanka • Board of Directors drawn from government, private sector and the academia

  32. Institutional Models • No ‘one-size fits all’ • Interoperability framework • Coordination across ministries • UK’s Interoperability Accreditation Agency • Revenue streams • e-Procurement • Gateway • Data center

  33. Thank Yoursudan@worldbank.org

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