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

rsudan@worldbank.org