technology leapfrog in government transparency developing countries
DESCRIPTION
Describes how developing nation governments are leapfrogging developed nation governments in transparency. Example of budget transparency is given with screenshots from the beta Timor-Leste transparency portal. Argument made for transparency to increase citizen and business confidence and kickstarting economic growth.TRANSCRIPT
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Technology Leapfrog – Government Transparency
Technology Leapfrog – Government Transparency
FreeBalance International Steering Committee
January 18, 2011
Doug Hadden
VP Products
FreeBalance International Steering Committee
January 18, 2011
Doug Hadden
VP Products
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Agenda
• Effects of Globalization• Emerging Markets Growth• Theory of Technology Leapfrog• Government as “Platform”• Inhibitors• 4 E-Government
Transparency PFM Leapfrog Opportunities
• Challenges
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Globalization
• Digital technology• Efficient movement of goods• Competition for markets, businesses• Ever increasing information
availability• Driving reform
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Citizens are Watching You
• 21st Century – don’t worry about the *Press• Technology in the hands of citizens• Millions of untrained auditors• Mobile phones game-changer
* Lesson learned in Iran, China, Egypt, Tunisia
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Globalization Extended
Governments Governments
Exte
rnal
Forc
es
Exte
rnal
Forc
es
Inte
rnal
Force
sIn
tern
al
Force
s
GlobalizationGlobalization
1. GoodGovernance
1. GoodGovernance
2. ICTModernization
2. ICTModernization
Improve Development Outcomes• Donor Funding• Benchmarks and Indicators• Stability and Sustainability
Increasing Citizen Expectations• Transparency• Improve Citizen Services• Health, education, infrastructure, prosperity
Global Competition• Business Friendliness• Corruption Index• Infrastructure
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Emerging Markets – High GrowthContribution to World Growth by Region
0
10
20
30
40
50
60
70
80
USA DevelopedEurope
DevelopedAsia
EmergingEconomies
Other
2007
2008
Source: Mirae Asset
• Canada• United States
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Emerging Markets – High Growth GDP Growth, % Share of World Total*
0
10
20
30
40
50
60
70
80
90
1984 1989 1994 1999 2004 2009
DevelopedEconomies
EmergingEconomies
* At purchasing power paritySources: IMF, The Economist
Emerging Markets
responsible for most of the
global growth
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Emerging Markets – High GrowthShare of Global GDP*
0
10
20
30
40
50
60
70
1913 1950 2005 2025
EmergingEconomiesDevelopedEconomies
* At purchasing power paritySources: IMF, The Economist
Emerging Markets
responsible for most of the
global growth
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Emerging Markets – High Growth “New Normal”
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Theory of Leapfrog
• Legacy technology entrenched in developed countries
• Bi-pass stages in development• Focus on what is
important• Learn from other countries
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Example: Thailand
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GDP Per Capita (PPP, logs)
UG
AN
DA
PA
PU
A N
EW
GU
INE
A
AU
ST
RA
LIA
-3
-2
-1
0
1
2
3
204 Countries
Norm
aliz
ed C
ontr
ol of
Corr
upti
on Index
HIGH
LOW
Benefits of TransparencyControl of Corruption and GDP*
* At purchasing power parity
Source: The World Bank
Higher the control of corruption = higher the country GDP Per Capita
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GDP Per Capita (PPP, logs)
UG
AN
DA
PAPU
A N
EW
GU
INEA A
US
TR
ALI
A
-3
-2
-1
0
1
2
3
207 Countries
Norm
aliz
ed
Voic
e a
nd
Acc
ounta
bili
ty Ind
ex
.
HIGH
LOW
Benefits of Transparency Voice and Accountability and GDP*
* At purchasing power parity
Source: The World Bank
Higher the government accountability = higher the
country GDP Per Capita
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GDP Per Capita (PPP, logs)
UG
AN
DA
PA
PU
A N
EW
GU
INEA
AU
ST
RA
LIA
-3
-2
-1
0
1
2
3
209 Countries
Norm
aliz
ed G
overn
ment
Eff
ect
iveness
Index
HIGH
LOW
Benefits of Transparency Government Effectiveness and GDP*
* At purchasing power parity
Source: The World Bank
Higher the government effectiveness = higher the
country GDP Per Capita
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Government as Platform
• Data can lead to economic development
• Infrastructure• GPS, Internet• How?
– Resources information– Demographics
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Why would more developed countries get leapfrogged?
• Business Pressure– Telecommunications and other monopolies
• Budget Pressure– Affect revenue from selling information
• Sovereignty Pressure– Reluctance to give up national standards
• Best Practice Pressure– Focus on complexity
• Economic Pressure– Less pressure from globalization
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E-Government PFM Transparency Leapfrog Opportunities
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Budget Transparency
Budget presentation in legislature
Budget speech in official gazette
Budget speech pre-released to press
Budget book printed
PDF on-line
Audited books pdf
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Budget Transparency con’t
Audit findings PDF
Quarterly audited reports PDF
Interactive budget execution data
Participatory budgeting
Budget data in XBRL
….
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beta version of Government of Timor-Leste transparency portal
subscribe
drill down
articles
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Expenditures, Transparency Portal
10 years of data
drill through the chart of accounts
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Expenditures, Transparency Portal
export to xls, doc, pdf, html, xml
track commitments
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FreeBalance Survey
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E-Government PFM Leapfrog Opportunities
• Support for international standards– GFS/COFOG/IPSAS– XBRL & IATI
• M-Government financial services
• Freedom of Information
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Models of Government Data
Publish Model• You know what it is for and how it will be used• Document oriented• Vetted, edited, approved• Old – previously owned information• No access to underlying data
Social Media• You don’t know how it will be used• Machine readable• Community vetted• Useful and current• Full access to underlying data *
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Out of Network
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Out of Network vs. In Network
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Challenges
• Infrastructure• Donor coordination• “Return on Investment”• Collaborative culture
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Thank You