Policy, Leadership and Institutions
Randeep SudanSenior 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• e-Legislation• Institutions
– Human Resources– Infrastructure– Applications
• Use of open source
– Private Sector involvement
High Impact Areas
• Infrastructure– Rural broadband – Andhra Pradesh (India)
• Applications– m-Government – G-Cash (Philippines)
• Public Private Partnerships– GCNet (Ghana)
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
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
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”!
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
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)
Policy: Rural Broadband
• Rural Broadband as priority• Free Right of Way• Government as anchor client• VoIP permitted in 2004
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
Global Fixed and Mobile Subscribers
0
400
800
1,200
1,600
1992 1994 1996 1998 2000 2002 2004
Mill
ion
Sub
scri
bers
Fixed Mobile
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
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
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
G-Cash Phone to Phone Remittance
G-Cash Purchase at a Registered Outlet
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
Regulatory Framework
• Redeemability• Restrictions on the use of liquidity (the float)
for investments• Prudential supervision (minimum capital
requirements, reporting obligations)• Anti-Money laundering obligations
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
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
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
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
Multiple Agencies and Connections
Shipping
Freight
DIS
AFGO
Banks
GSC GSB MOTI
MOF CEPS
GPHA
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
GCNet Interface
Shipping
Freight
DIS
AFGO
Banks
GSC Traders MOTI
MOF CEPS
GPHA
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
GCNet
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
Before…
After…
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
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
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
Institutional Models
• No ‘one-size fits all’• Interoperability framework• Coordination across ministries
– UK’s Interoperability Accreditation Agency• Revenue streams
– e-Procurement– Gateway– Data center
Thank You
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