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Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
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Technology leapfrog in government transparency developing countries

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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 …

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.

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  • The digital world eliminates physical barriers and enables more efficient movement of goods. Globalization favours this efficient movement creating local and global competition. It also increases the information available to businesses, citizens and civil society. The hyper-competition thanks to globalization and digital technology means that businesses have choices. They seek out high growth but stable markets. This reality is driving government reform.
  • It doesn’t matter how well governments control the press or control the message. Technology enables citizen surveillance of government. These means millions of eyes trained on governments where mobile technology has become the game-changer. For example, texting was used in Sudan to reduce election fraud
  • The recent financial crisis has developed in what Mohamed El-Erian of PIMCO calls the “new normal”. One way that we know that the world is no longer developed country centric comes from the automobile industry – many established brands were acquired by (or had offers from) companies in BRIC countries.
  • The theory of technology leapfrog has been applied to Internet, mobile, e-business and e-government. The notion is that less developed countries often have less entrenched technology vendors and that some stages can be skipped – for example skipping wired Internet and moving rapidly to wireless. It enables countries to focus on what is important and learn from what works in other countries.
  • The Government of Thailand is attempting e-government technology leapfrog. Why would countries want to improve transparency?
  • Tim O’Reilly, who created the “Web 2.0” term, promotes the notion of “government as platform”. In addition to the benefit of transparency to improve governance, government data can lead to economic development. Governments around the world invest in infrastructure such as roads and airports as a foundation for business. This can be extended in the virtual world. Mr. O’Reilly makes a compelling argument of how technology brought into the public domain has created economic growth and innovation: global positioning and the Internet. There can be many ways in which data can generate economic growth. Resource companies can use the data to uncover opportunities. Demographic data can help companies plan stores or factories.
  • This begs an interesting question. Why would developed countries – with head starts – be ripe for leapfrogging?Monopolies and large telecommunications companies place pressure on governments to slow down the pace of change.Many government organizations receive revenue by selling data. Providing this data free reduces this revenue and there is no real connection with the downstream benefits of more tax revenue.Many countries are reluctant to use international standards.Developed country governments tend to focus on complexity – they seek best practices and rethink initiatives rather than publish data and learn.Of course, market integration in developed countries means that they are often under less perceived pressure from globalization, and are more focused on regional issues like the Euro crisis.
  • Our recent FreeBalance International Steering Committee survey demonstrated some leapfrog opportunities.
  • An example is budget transparency. Governments in developed countries have improved budget transparency,
  • With many producing reports in PDF format and a few providing interactive data. Developing country governments can leapfrog,
  • with interactive drill down into government data
  • with 10 years of budget execution data with drill down through the government chart of accounts
  • export to numerous machine readable formats, plus tracking the entire budget cycle: original budget, budget transfers, commitments, obligations and actuals
  • It’s no wonder that all FreeBalance international customers surveyed claim to be committed to public financial management and transparency and most are adopting international standards.
  • Standards enable more effective comparisons and generate confidence. There are additional opportunities for developing nation governments.
  • Developing nation governments can leapfrog by recognizing the power of social media rather than the traditional publish model – more current information, vetted by the community and enabling unexpected economic usages.
  • Which brings government from being out of network – or broadcasting
  • To in-network, or participating with citizens, civil society and businesses. This creates a network effect.
  • There are challenges. Developing nation governments need to build infrastructure. They often have to coordinate donors who require different methods of reporting, adding to “transaction costs”. Many governments are still concerned about hard ROI justifications. This is often impossible given the network effect where data from multiple sources are used to generate economic growth. And, governments need to be more collaborative in releasing data and getting feedback for improving data accessibility.
  • Transcript

    • 1. Technology Leapfrog – Government Transparency
      FreeBalance International Steering Committee
      January 18, 2011
      Doug Hadden
      VP Products
    • 2. Agenda
      Effects of Globalization
      Emerging Markets Growth
      Theory of Technology Leapfrog
      Government as “Platform”
      Inhibitors
      4 E-Government Transparency PFM Leapfrog Opportunities
      Challenges
    • 3. Globalization
      Digital technology
      Efficient movement of goods
      Competition for markets, businesses
      Ever increasing information availability
      Driving reform
    • 4. 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
    • 5. Globalization Extended
      1. Good
      Governance
      1. Good
      Governance
      Governments
      Governments
      2. ICT
      Modernization
      2. ICT
      Modernization
      External Forces
      External Forces
      Globalization
      Globalization
      Internal Forces
      Internal Forces
      Increasing Citizen Expectations
      • Transparency
      • 6. Improve Citizen Services
      • 7. Health, education, infrastructure, prosperity
      Improve Development Outcomes
      • Donor Funding
      • 8. Benchmarks and Indicators
      • 9. Stability and Sustainability
      Global Competition
      • Business Friendliness
      • 10. Corruption Index
      • 11. Infrastructure
    • Emerging Markets – High GrowthContribution to World Growth by Region
      2007
      2008
      80
      70
      60
      50
      40
      30
      • Canada
      • 12. United States
      20
      10
      0
      USA
      Developed
      Developed
      Emerging
      Other
      Europe
      Asia
      Economies
      Source: Mirae Asset
    • 13. Emerging Markets – High Growth GDP Growth, % Share of World Total*
      90
      80
      70
      60
      Developed
      50
      Economies
      Emerging
      40
      Economies
      30
      20
      Emerging Markets responsible for most of the global growth
      10
      0
      1984
      1989
      1994
      1999
      2004
      2009
      Sources: IMF, The Economist
      * At purchasing power parity
    • 14. Emerging Markets – High GrowthShare of Global GDP*
      Emerging Markets responsible for most of the global growth
      70
      60
      50
      40
      Emerging
      Economies
      30
      Developed
      Economies
      20
      10
      0
      1913
      1950
      2005
      2025
      * At purchasing power parity
      Sources: IMF, The Economist
    • 15. Emerging Markets – High Growth “New Normal”
    • 16. Theory of Leapfrog
      Legacy technology entrenched in developed countries
      Bi-pass stages in development
      Focus on what is important
      Learn from other countries
    • 17. Example: Thailand
    • 18. 3
      AUSTRALIA
      HIGH
      2
      1
      Normalized Control of Corruption Index
      PAPUA NEW GUINEA
      0
      UGANDA
      -1
      Higher the control of corruption = higher the country GDP Per Capita
      -2
      204 Countries
      LOW
      -3
      GDP Per Capita (PPP, logs)
      Benefits of TransparencyControl of Corruption and GDP*
      Source: The World Bank
      * At purchasing power parity
    • 19. 3
      HIGH
      2
      AUSTRALIA
      1
      PAPUA NEW GUINEA
      Normalized Voice and Accountability Index
      0
      UGANDA
      -1
      Higher the government accountability = higher the country GDP Per Capita
      -2
      207 Countries
      LOW
      Source: The World Bank
      .
      -3
      GDP Per Capita (PPP, logs)
      Benefits of Transparency Voice and Accountability and GDP*
      * At purchasing power parity
    • 20. 3
      HIGH
      AUSTRALIA
      2
      1
      Normalized Government Effectiveness Index
      UGANDA
      0
      PAPUA NEW GUINEA
      -1
      Higher the government effectiveness = higher the country GDP Per Capita
      -2
      209 Countries
      LOW
      Source: The World Bank
      -3
      GDP Per Capita (PPP, logs)
      Benefits of Transparency Government Effectiveness and GDP*
      * At purchasing power parity
    • 21. Government as Platform
      Data can lead to economic development
      Infrastructure
      GPS, Internet
      How?
      Resources information
      Demographics
    • 22. 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
    • 23. E-Government PFM Transparency Leapfrog Opportunities
    • 24. Budget Transparency
      Audited books pdf
      PDF on-line
      Budget book printed
      Budget speech pre-released to press
      Budget speech in official gazette
      Budget presentation in legislature
    • 25. Budget Transparency con’t
      ….
      Budget data in XBRL
      Participatory budgeting
      Interactive budget execution data
      Quarterly audited reports PDF
      Audit findings PDF
    • 26. beta version of Government of Timor-Leste transparency portal
      subscribe
      drill down
      articles
    • 27. Expenditures, Transparency Portal
      10 years of data
      drill through the chart of accounts
    • 28. Expenditures, Transparency Portal
      export to xls, doc, pdf, html, xml
      track commitments
    • 29.
    • 30.
    • 31. FreeBalance Survey
    • 32. E-Government PFM Leapfrog Opportunities
      Support for international standards
      GFS/COFOG/IPSAS
      XBRL & IATI
      M-Government financial services
      Freedom of Information
    • 33. 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 *
    • 34. Out of Network
    • 35. Out of Network vs. In Network
    • 36. Challenges
      Infrastructure
      Donor coordination
      “Return on Investment”
      Collaborative culture
    • 37. Thank You

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