CP3T17 Word Group 1


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CP3T17 Word Group 1

  2. 2. GROUP 1 2 CP3T17 WORD ASSIGNMENT INTRODUCTION Governments in all OECD countries increasingly face the challenge of responding to public demand for more responsive, efficient, effective and participatory government. E- Government – ―the use of information and communication technologies, and particularly the Internet, as a tool to achieve better government‖ (OECD, 2003) – provides a major tool to help meet this challenge. In the 1960s and 1970s, Information Technology (IT) was used to automate the processing of information. In the 1990s, early e-government initiatives enabled by Information and Communication Technology (ICT) focused on the production and dissemination of information over the Internet resulting in a huge number of government Web sites with static information. With a decade of experience in developing more advanced applications of ICT to the business of government, it has become evident that the tools of e- government can significantly assist in developing good and responsive government that provides better value and lower cost. Governments face many challenges in using e- government tools: ● To create a government that is responsive to the needs of its citizens. ● To develop processes and electronic services (e-services) that bridge the silo environment of government agencies. ● To use the Internet to promote citizen feedback on government services and policies, and ultimately to promote trust in the public sector. The OECD report The E-Government Imperative (OECD, 2003) presented the case for implementing e-government in terms of its potential impact on efficiency, service quality, good governance and policy effectiveness (see Table 0.1). This second e-government report focuses on user-focused services and arrangements to front- and back-office operations needed to maximize value for citizens and businesses and to reduce costs. The report does not address transparency, accountability, consultation and public participation. These important areas of governance – and the enabling role of ICT – have been addressed in earlier reports, including Citizens as Partners: Information, Consultation and Public Participation in Policy Making (OECD, 2001) and Promise and Problems of e-Democracy: Challenges of Online Citizen Engagement (OECD, 2003). Together these reports present the overall OECD approach to its countryreviews of e-government (OECD e-Government Studies: Finland (2003); Norway (2005);Mexico (2005)). The transparency and accountability aspect of e-
  3. 3. GROUP 1 3 CP3T17 WORD ASSIGNMENT government isalso being addressed through ongoing work of the OECD E-Government Projecton e-procurement and the cost-benefit analysis of e-government.  WEBSITE: E-Government From meetings and discussions with OECD countries in 2003 and 2004, itis clear that the implementation of ICT techniques and particularly using theInternet as a delivery channel for services should become an important meansfor changing what government does and how it does it. OECD countries haveidentified five areas for achieving better government with the help of thesenew tools: ● User-focused e-government: making electronic services more responsive tothe needs of citizens and businesses. ● Multi-channel service delivery: improving links between traditional andelectronic services in order to promote service innovation and ensure accessfor all users. ● Approaches to common business processes: identifying common processeswithin government in order to achieve economies of scale, reduceduplication and provide seamless services. ● The business case for e-government: measuring and demonstrating thecosts and benefits of ICT investments in order to prioritize and bettermanage e-government projects. ● E-government co-ordination: bringing a whole-of-government perspective to e-government initiatives and their management, while taking into account existing structures and cultures of government institutions. Traditionally public administrations have been organized into bureaucracies charged with handling a regulatory or sectorial area, producing and processing forms, and providing specific services and products. The leading principle for a government that is responsive to citizens and businesses is that it be focused on user needs and assist in solving user problems regardless of its own structures. ICT offers a way to break out of the silo environment of public administrations, but must do so in a way that reduces cost for government even as it increases value for users. While there seems to be consensus among OECD governments as to the importance of a focus on users, finding out what this means and how to achieve it is a major challenge. This
  4. 4. GROUP 1 4 CP3T17 WORD ASSIGNMENT report discusses what countries need to do to achieve user-focused government. Bringing services to users in a seamless, integrated manner will require a more comprehensive view of user needs and demands that transcends the partial views that government agencies tend to have of their users. This report discusses how a multi-channel service delivery approach can improve service to the user by integrating service delivery across different delivery systems including Internet, call centres, over the counter service, e-mail and ordinary mail. Making it easier for users to find and use government services can also result in savings to government. However, achieving better services with a fixed or limited amount of overall investment depends, in part, on moving large numbers of users from traditional channels to electronic channels for high-volume services. Improved networking of organizations and aligned standards and policies will aid in this transition. The increased networking and interconnectivity within government made possible by ICT is likely to highlight current redundancy or incompatibility of systems and processes across government. This report looks at how governments can identify common business processes such as payroll, human resources management, accounting and archiving systems and consider how toimprove and share the use of these systems. For example, an inventory of basic public-sector processes can helpgovernments think about how administration might be better arranged (i.e. organized around enterprise architecture). In this way, some common processes could be consolidated and provided by fewer organizations, thereby achieving economies of scale. Reference models for typical processes can also be used to facilitate the duplication and transfer of processes acrossgovernment, thereby eliminating the need to ―reinvent the wheel‖. The virtual integration of processes across organizations, based on common standards, can allow them to work together seamlessly. This type of approach can also be applied to services that are shared or that have common populations in order to provide more seamless service delivery. Achieving better government will require both a better understanding ofwhat governments hope to achieve and indicators to see if they are on the right path. This report looks at the use of business cases for e-government to demonstrate the risks and expected returns on ICT investment, in terms both of savings to government and benefits to citizens and businesses. Analysis of e-government costs and benefits allows governments to support investment
  5. 5. GROUP 1 5 CP3T17 WORD ASSIGNMENT decisions and evaluate results. Without a business case, governments risk developing technology-enabled services that may not correspond to the needs of citizens and businesses. In OECD countries, governments increasingly require each ICT project tohave a business case before proceeding. Only when that case has been persuasively made should major investments be undertaken. Do the analyses demonstrate clear indicators, quality data, risk management techniques and a clear understanding of both the intended and unintended benefits of ICT investment? How are organizations accounting for benefits that accrue to other agencies? Do governments want to make decisions based only on financial benefits to governments or to both users and governments? Finally, governance structures are central to realizing e-government benefits and achieving greater user focus through more integrated information and services. Adopting a user focus has consequences for the structures and processes of government. This report also looks at how governments organize the co-ordination of e-government. Governments‘ ability to co- ordinate their own internal structures is, in many ways, a test for how they might manage their relations with stakeholders in general as public-private boundaries become more fluid. Until recently, e-government initiatives in many OECD countries were driven by individual agencies and ministries seeking ways to help meet their individual mandates. Decentralized development of e-government raises new challenges, such as ensuring that i) individual computer systems can communicate with each other (i.e. systems interoperability), that ii) common standards are in place as new services are developed, and that iii) in the context of ever-tighter budgets, services support and complement, rather than duplicate, each other. More rational structures can support collaboration and internal efficiencies within public administrations, yet ICT also makes it possible to improve co-ordination across government without changing structures or accountability portfolios. The cross-cutting nature of e- government requires governments to strike a balance between decentralized initiatives that may be more innovative and flexible, and a coherent approach traditionally associated with more centralized arrangements. Some of the most successfule-government initiatives have been in decentralized systems and, in fact, the technology is too complex and fast-moving to be fully centralized. Yet centralizing some, in particular technical, aspects of e-government can better enable decentralized service delivery.
  6. 6. GROUP 1 6 CP3T17 WORD ASSIGNMENT How have countries balanced their history and existing administrativesystem, their current needs and their policy priorities when setting administrative and political responsibilities for e-government? Among countries‘ experiences with multi-channel service delivery and identifying common business processes, which ones can be generalized to other countries and to which countries? There is no single solution, but understanding the context in which decisions have been made in other countries can help countries determine which experiences they can best learn from, and which solutions are appropriate for their own situation. E-Government embodies the vision of a whole-of-government logicthat transcends sectorial interests in favor of more fluid and seamless relations within government. While it can be implemented in stovepipe fashion, e-government can also act as a catalyst to transform administrations by replacing traditional ways of working with new more efficient and effective processes, structures, and lines of communication. A new, networked administration may seem a utopia, but discussions among OECD countries have demonstrated that elements of a new way of working are starting to appear. In the pursuit of e-government, countries‘ understanding of what needs to be done – and how to do it – is constantly changing. There is no one clear path to better government, nor how to implement e-government, but global imperatives are leading to convergence in terms of the challenges to be faced. To do so, government organizations need to look at how to transform themselves into more adaptive organizations capable of responding to their environment and discovering new and better ways to fulfill their mission. E-Government has become a critical part of this path to better government. Challenges Countries‘ experience with e-government shows that adapting the traditional producer-led processes typically found in government organizations will not allow the full potential of electronic service delivery and e-government to be realized. It is crucial to focus on what needs be done in order to move citizens away from using traditional service delivery channels to using new channels, and on the business processes and governance mechanisms that underpin this transition. However, governments moving services to the Internet face a number of challenges. Governments are large and compartmentalizedorganizations. The problem now is who pays for e-government? Like any government infrastructure project, e-government can be done in
  7. 7. GROUP 1 7 CP3T17 WORD ASSIGNMENT phases and the costs of implementation will depend on current infrastructure availability, supplier and user capabilities, and mode of service delivery (whether through the Internet or through telephone hotlines and one-stop shops). The more complicated and sophisticated the kind of services the government wants to offer, the more expensive it is. Governments should focus on small, self-financing or outsourced projects. Because e- government projects must be financially sustainable, there must be a revenue or cost- reduction model in place from the beginning. Smaller projects with a clear revenue- generation strategy and minimal initial investment are the most likely to be sustainable over the long term. For instance, Web sites are one of the easiest and cheapest ways to achieve high impact e-government with a minimum of investment. E-Government projects are, more often than not, long-term endeavors, requiring large capital infusion in software, hardware, infrastructure and training. A viable financing plan should not only pay for the immediate needs to jumpstart e-government; it must also consider its long-term financing options for the sustainability of the project. There are various business models for funding e-government projects, and the private sector plays a critical role in these. Under partnership arrangements, the private sector builds, finances and operates public infrastructure such as roads and airports, recovering costs through user charges. Various financing schemes exist—from soft and development assistance loans from donor/multilateral aid agencies to partnerships and outsourcing deals with private third party vendors under special financing schemes (e.g., the Build-Operate- Transfer or BOT scheme) that can minimize the initial cost to government. BOT and its variants are usually the favored financing models or arrangements for government projects that require large and immediate financing from the private sector. Under BOT, the private sector designs, finances, builds, and operates the facility over the life of the contract. At the end of this period, ownership reverts to the government. A variation of this is the Build-Transfer-Operate (BTO) model, under which title transfers to the government when construction is completed. Finally, with Build-Own-Operate (BOO) arrangements, the private sector retains permanent ownership and operates the facility on contract. Cooperation, rather than competition, with the private sector can facilitate effective e- government. Government can encourage private sector investment by complementing and supporting private sector efforts rather than duplicating them. The key to e-government is to
  8. 8. GROUP 1 8 CP3T17 WORD ASSIGNMENT improve citizen access to service delivery, not further expand the role of government. Government should not attempt to create products and services where public-private partnerships or private service providers can adequately provide these products and services more efficiently and effectively. To get the wider public to actually use e-government services, any sound e-government policy must consider a citizen-centered approach. This means that e-government should be an end-user or demand-driven service. However, many citizens do not use e-government for several reasons, among these unfamiliarity with ICT, lack of access, lack of training, and concerns about privacy and security of information. While e-government may provide ease and convenience in the delivery of public services, and offer innovative government services, none of these will prompt citizen use unless the concerns mentioned above are first addressed. As an example, Singapore‘s Citizen-Centered E-Government, in which had known as eCitizen Help Centers. Singapore‘s eCitizen portal averages 3.1 million hits a month, a marked improvement from 200,000 hits a month when it was first launched in 1999. How did a developed country of 4 million citizens exponentially expand online public usage in less than three years‘ time?To ensure ubiquitous access to government e-services, Singapore established a network of eCitizen Help Centers since November 2001. These centers are equipped with Internet kiosks that give free access to the Internet to citizens. There are helpers to assist those who are not proficient with the Internet. To date, there are 24 eCitizen Help Centers strategically located near Community Development Councils (which function as a specific district‘s local administration handling community programs and social assistance services delegated from the ministries) and Community Centers (community clubs that organize cultural, educational and social/recreational activities to promote racial harmony and social cohesion). Moreover, security and protection of privacy are very important because security generally refers to the protection of information system assets and control of access to information. Security policies and strategies are context-specific and information-specific. Privacy refers to the right for information attributed to an individual (also called ―nominal information‖) to be treated with an appropriate level of protection. Information privacy protection laws are often put in place to regulate this. Protecting the privacy of citizens and assuring them that their personal information will not be compromised is critical in e-government because this is
  9. 9. GROUP 1 9 CP3T17 WORD ASSIGNMENT the key to user trust. Without this assurance, no one will be prompted to use e-government services. For example, Japan had invested a new system known as Japan‘s National ID System. Local governments across Japan began feeding basic information on their citizens into a central database as part of a new resident registration network, despite complaints about the system from privacy advocates and refusal to participate by some municipalities. Under the new system, everybody who lives in Japan will be issued an 11-digit identification number that can be used in many dealings with local government. It replaces a system under which people had to produce resident certificates to prove where they lived each time they dealt with local government and which required people to go through time- consuming procedures each time they moved. Information such as the person‘s name, date of birth, sex and address will be included in each person‘s file and all data will be stored in a centrally-run government server. The system aims to make life easier for both citizens and local municipalities and goes under the name JuminKihonDaicho Network, or Juki-Net for short. City halls all over Japan will have access to the database, making dealing with the government as simple as turning up with your ID number. However, this ease of access is ringing alarm bells across Japan. When the Juki-Net idea was first floated in 1999, the government promised that new data privacy and protection legislation would be in place by the time the system went into operation. However, some of the bills associated with this are still in the Diet, Japan‘s parliament. Many argue that until these laws are in place, the system should not be launched. Others contend that the problem with this system is the numbering of each individual. Fearing that the privacy of their citizens may be at risk, some local municipalities are refusing to connect to the system. The reaction from privacy advocates is perhaps expected but the refusal of some cities to join Juki-Net has come as an embarrassment to the government, which sees the system as a key part of its E-Japan scheme. E-Japan is an ambitious program that aims to make Japan the world‘s most advanced IT nation by 2005. One of its key goals is online delivery of many government services, a service for which a centralized database of people living in Japan would be essential. The proposed law forbids the use of the identification numbers by anyone apart from the bureaucracy and imposes duties on civil servants to keep information confidential and prevent information leakage to outside sources.
  10. 10. GROUP 1 10 CP3T17 WORD ASSIGNMENT As a conclusion, E-government has been responsible for the progression in technology of developing countries. The goal of E-government is the ability to access and interact with the world on an even plain. No country should be left behind when it comes to being able to communicate with one another. Without E-government, developing countries will be left behind when it comes to technology because almost every day, ICT technologies are advancing and changing. Developing countries now have the opportunity to better themselves through electronics and make their society be more advanced and more efficient than ever before. Bibliography Van Duivenboden, H, (2005), Citizen Participation in Public Administration: The Impact of Citizen Oriented Public Services on Government and Citizen, pp. 415-445. In Practicing E- Government; A Global Perspective (IDEA Group Publishing, Hershey, PA)  LAW : E-Syariah Malaysia legal system rooted from both English and Islamic Law. In both Civil and Syariah court system, the speed with which complete, authentic, credible information is available to jurists as well as the measures taken to maintain quality, integrity and security of court records is as important as the application of relevant laws and the precedents to decide the case. In Syariah Courts, information and communication technologies not only enable the workflow of the courts and facilitate information management, but also used to integrate Syariah courts with their stake holders. The integration of State Syariah Courts in various jurisdictions of Malaysia provides for the standardization of practice and technology and at the same time allows jurists a one-stop solution for consultations regarding interpretations of Syariah Law and derivation of precedents in the light of decisions taken before. Here, the role of technology extends from mere record management technology to business intelligent oriented decision support tools. This will presents a case study of E-Syariah initiative in Malaysian Syariah Courts and highlights the issues and challenges faced during implementation of this initiative and provide appreciation of how effectively technology has been used dispense speedy justice in Syariah cases. Introduction
  11. 11. GROUP 1 11 CP3T17 WORD ASSIGNMENT Records in court system have various dimensions including court proceedings, evidence, and affidavits. In addition, court records also contain precedents from old cases and even references to the sources of law. This makes information management in general, and record retrieval in particular an intricate task. The pervasiveness of information and communication technologies (ICTs) provides new opportunities for court automation and information management in judiciary. At the same time there is increased pressure on the courts of law to embrace technology because with the increased level of IT literacy/awareness among the general public, there are increased demands on government to provide information to citizen around the clock. Responding to these opportunities and pressures, courts around the globe are embracing information and communication technologies at various levels to provide faster, reliable and consistent service to the society. E-Syariah – A Malaysian Case Study E-Syariah was put in place to replace the manual system of all Syariah courts operation. Before E-Syariah come into operation, all business processes from case registration to case disposal were performed manually. It is not surprising that the system was replete in inefficiency and ineptitude. With the increased number of Syariah cases being registered, the delay in case management became more critical. A single case takes years to be settled, resulting in hardship for the parties involved. The major reason for this delay has been the unavailability of complete information as and when required. In certain cases not only the information is incomplete but had been tempered with as well. With the introduction of e- Syariah, the government aim to reduce the time taken to settle a case and to manage each case and related information more efficiently and systematically (Hamid 2010). E-Syariah initiative was adopted as one of the Electronic Government flagship applications in Malaysia in March 2002, with a strong support of government, especially by the Malaysian Administration and Modernization Planning Unit (MAMPU). Although Syariah courts are constitutionally state courts, created and regulated by state laws and under the responsibility of the state authorities, an effort was made by Federal government to standardize the work processes and procedures in these courts. Hence, the Syariah Judiciary Department of Malaysia/ JabatanKehakiman Syariah Malaysia (JKSM) were established as a coordinating body of Syariah courts in Malaysia. The technologies in place in Syariah courts under the E-Syariah project consists of five modules as Syariah Court Case Management
  12. 12. GROUP 1 12 CP3T17 WORD ASSIGNMENT System, Office Automation Systems (MAMPU 2009), E-Syariah Portal, Syariah Lawyers Registration Systems and Library Management Systems, where ; 1. Syariah Case Management Systems -The web-based application provides an integrated case management system for various tasks such as Registration of Cases, Scheduling of Hearings, and Producing Receipts for Payments, Case Tracking, Recording of Judgments, Reports & Statistics, Enquiries, and System Maintenance. The database containing records of all cases filed with the courts are maintained for the purpose of references and double-checking to avoid duplication of cases in other states. 2. Office Automation System -The Office Automation System provides facilities such as Word Processing, Spread sheets and Graphic Presentations to improve productivity in the office operations of the Syariah Courts. Judges, Registrars, and staff are provided with email facility. Case hearing schedule is sent to all Syarie judges through email. 3. E-Syariah Portal -The Portal serves as an information gateway to provide the public and staff of the Syariah Courts with the latest news on court procedures and regulations. The public can post enquiries online to the courts via the Portal and the Faraid calculator will be available online for the public to assess. 4. Syarie Lawyer Registration System -This system provides facilities for the registration of new applications or renewal of practicing certificates for Syarie lawyers. A database containing details of registered practicing Syarie lawyer are maintained to facilitate monitoring and coordination by the authorities. 5. Library Management System -A web-based library management system allows users to conduct electronic searches, borrowing, returning of books and other library materials through the ZiauddinSardar Islamic Cataloguing System. The catalogue of library materials available at the JKSM Library and the State Syariah Libraries is accessible for bookings and loans to Judges and Registrars. E-Syariah applications have been designed to provide for transformation and standardization of work environment in Syariah courts to link all the business processes on a single channel. The idea is to disseminate information on Syariah judicial law and
  13. 13. GROUP 1 13 CP3T17 WORD ASSIGNMENT institutions, court procedures and processes can be disseminated to the public through E- Syariah portal. In doing so the government is aiming to provide a simple, fast, accurate and extensive medium to public at large, whereby the digital divide between end users in different part of the nation could also be reduced. Therefore, JKSM as coordinating body to the Syariah court be able to create a new paradigm of work culture that is more efficient in the management of the judicial institutions of Islam in Malaysia. Traditionally, even though the general dealings in Syariah courts are similar, yet each Syariah court in Malaysia has unique business processes and works differently from its other counterparts. The reason for this discrepancy is the fact that Syariah courts are managed by each state and have their own management. Consequently it is the management of each court that decides how the court is to be administered. Due to this disparity, Syariah Courts in various Malaysian states manage similar tasks in different ways. This is not just limited to the workflow, but this lack of standardization extends to different sets of technologies being used as well as different sets of forms, formats, and write ups. States do not use standardized record books and case classification numbers. There are many instances of case overlapping (where same cases have been registered in more than one jurisdiction) especially in cases of child custody, divorce and inheritance where they were filed and registered in different state courts on purpose. This is due to the fact that people have interpreted Islamic jurisprudence in different ways. The main sources of Islamic law are the Quran and the tradition of the Prophet. In reaching the verdict, jurists interpret the Quran and the tradition of Prophet according to their sect knowledge and conscience, taking into consideration other factors such as culture, point in time and welfare of parties involved. As a result, for many centuries, similar cases had been decided differently across the globe, and they are recorded in different places. Consequently different verdicts have been passed in similar cases in different parts of the world. In these circumstances, availability of information on interpretations of the Quran and the tradition of the Prophet, previous judgments passed, and Ijtihad (reinterpretation of Islamic law according to prevailing circumstances) is of paramount important. However, due to the disparities in the way states Syariah courts are being administered, the overall paradigm faces issues relating to data quality, lack of interoperability and information integration. Thus the major challenge for E-Syariah project is to introduce standardization of process, practice, technology and strategy. E-Syariah initiative has made attempts to streamline work processes in Syariah courts. It has categorized cases for
  14. 14. GROUP 1 14 CP3T17 WORD ASSIGNMENT example divorce, child custody, and inheritance and crime offences. Consequently each case is treated uniquely and there is no overlap. At the same time, court record templates had been standardized and brought down from 104 to 40 gazette forms only. Attempts are being made to standardize these procedures throughout Malaysia, however due to the lack of legislations at the Federal as well as State level; this is proving to be extremely difficult. In terms of court records management, at the records creation stage, case files are created in the Syariah Court Case Management System (SPKMS) and given the unique case classification number according to the Practice Direction No 1 Year 2000. However in this transitionary period, apart from managing cases using the Syariah Court Case Management System, hard copies with paper documents are also being used. The reason for managing both hard copy and soft copy records is purely legal. It is the legal requirement that hard copy records being maintained for legal reasons, since official seal need to appear on all papers. For example, for family law cases, the Islamic Family Law (Civil Procedure) Act requires documents to be officially sealed on paper and manually signed. At the moment, the relevant laws are being reviewed so as to implement electronic seals. In addition, the laws relating to risk of manipulation of electronic records are also being examined by States and Federal government committees. Pending the amendment the courts would be able to use one line of records management i.e. electronic records. It should be pointed out that although technology relating to records management is improving at rapid pace, court processes and laws are not keeping up with the pace of technology advancement. Malaysian Syariah courts are subjected to Federal, state and Syariah law as well as conform to the guidelines provided by the ministry of Justice and ISO regulations. Due to the nature and focus of legislations and guidelines, conflict in practice can easily be understood. In these circumstances, it is left to each court to decide what process or procedure they want to follow. For example an interviewee when asked about the legality and validity of electronic and paper-based records, replied ―according to our ISO audit report, the paper version is the most valid one‖. In the routine case management, records are updated by the judges and their assistants until the case is closed. Some of the documents relating to a case, such as ‗submission notes‘ are only kept on physical files, not in the electronic system. According to researchers‘ observation, only important information and documents are updated and stored in the system, thus it only serves as quick retrieval point, not a complete case file. In the system itself, some of the documents are saved in pdf. format, while others are saved as Microsoft Word
  15. 15. GROUP 1 15 CP3T17 WORD ASSIGNMENT documents, which exposes court records to manipulation risk. In their current form, electronic records can only be regarded as back up or reference point, not as valid official record. However, there are some evident advantages of electronic records, even though their legal value has not been established yet. These benefits are the ability to trace the particular record, the ability to find materials relating to a particular record, and the ability to retrieve information relating to a particular case (for example affidavit, statutory declaration etc.). All active physical files are stored in cabinets near to the courtrooms. Upon closure, the files are moved to records centre and being taken cared for by the Records Officers. In the records centre, after they reach certain maturity period as stipulated in the Syariah Court Records Retention Schedule, case files have to be disposed of. According to Practice Direction No 3 2006, criminal and civil case files must be kept in the records centre for 3 and 7 years respectively (it was 10 years previously). As the population is increasing, so is the case load and with it upcoming pressures on physical storage of court records. An important aspect of court records management would be to alleviate these pressures. People related to court records management are aware with these issues as quite a few of interviewees in this case study commented that ―court records are increasing, but storage space remains the same‖. And with each new record, it is becoming more and more difficult to manage physical records. JKSM & Syariah courts are the first public organization in Malaysia employing records manager & officers, and having records department in the organization. It is evident that records management is considered extremely important in Syariah Courts; however this initiative has not been backed up by relevant legislations. E-Syariah has opened up new avenue for court workflow as well as records management in Malaysian Syariah courts. Although there are a number of challenges hinge upon a few administrative issues, yet there are significant benefits that the use of technology has brought to Syariah courts. The following table summarizes the pre and post E-Syariah implementation: Dimensions Pre-implementation Post-implementation 1. Case settlement Case management is less efficient. It took years to settle a case Case management is much more efficient. 65% of cases are settled less than a year
  16. 16. GROUP 1 16 CP3T17 WORD ASSIGNMENT 2. Coordination time No coordination mechanism. Finding the status of the case, retrieving of case records, and who to contact was extremely difficult and time consuming. There was lots of rework involved at the time of registration, when the file was moving from one person to the other. Wastage of time, effort and resources. Registration of a new case takes approximately 2 minutes, thus case management is efficient. No rework involved as once data is stored electronically; it can be reused for any other purpose desired. 3. Case overlap Case overlapping could not be easily traced Case overlapping is automatically traced 4. Case delay/ postponement No automatic reminder about case postponement and delay Automatic reminder of case postponement 5. Work process Work processes were not consistent between courts in different states E-Syariah, in theory, permits the uniformity of court procedures, work processes and forms. However there is a long way to go achieve this. 6. Case backlog Difficulty in managing, verifying and checking the case status manually. No more backlog of cases because all cases are assigned / reassigned according to the workload of jurists. 7. Process interoperability Different work process among states caused E-Syariah is attempting to standardize court
  17. 17. GROUP 1 17 CP3T17 WORD ASSIGNMENT difficulty and bias towards customers. procedures and work processes to ensure fairness to customers. 8. Information security Information security was compromised Information security is guaranteed 9. Integration with government agencies No integration with other agencies System is integrated with 6 other government agencies, ensuring court decision enforcement and follow up, accurate data available timely 10. One stop solution Customer had to contact different department dealing with a court case One stop solution for paying fee, case registration, administration, follows up. 11. Old records retrieval In manual process, records were in store room. Customers had to contact the registrar, store keeper to retrieve records Records are available at the click of the mouse to authorize users. 12. Similar cases, dissimilar verdicts Previously there were similar cases, different verdict because of the fact that people have interpreted Islamic jurisprudence in different ways Now with this one portal they can access any number of records of similar cases, and then figure out whose interpretation are they applying & what were they should be given, they can consult different records
  18. 18. GROUP 1 18 CP3T17 WORD ASSIGNMENT 13. Trust in the system Previously there was lack of public trust in the system because it was causing delay, people were not getting quality service, and people were blaming the legal system. Use of ICTs has brought transparency to the overall court system Table 1: Dimensions of Pre and Post E-Syariah Implementation As a conclusion, the management of court records through electronic means bestow great impact to the government and citizen as a whole. It preserves the memory of a nation‘s civilization in judicial matters. The increase of case disposal rate after the electronic system implementation in Syariah courts provides improvement in judicial service delivery in Malaysia. Malaysian experience has been referred to and is being modeled by many countries around the world. Since E-Syariah initiative is not mature as yet, there are a number of issues that need to be resolved. The paramount issue is disconnecting between what technology offers and the state of legislation regulating technologies in the court. It is equally important to enforce standardization of practice and processes throughout the state Syariah courts in Malaysia. In the absence of a uniform policy governing Syariah courts in Malaysia, the objective of E-Syariah to provide fair, speedy, transparent justice will not be realized. In terms of technology adoption, the biggest challenge for courts to move forward is in retention of people. For a court registry, the lack of expertise who knows both registry office and information management standards becomes the first hurdle in implementing change. There are a number of issues pertaining to court records management, which have a single denominator i.e. retention of trained staff. This is important because of the need for consistent and authoritative instructions on the preservation or destruction of court case records (both paper and electronic), the importance of having a high level ‗champion‘ within the courts to promote good practice in records and information management , the need for professionally trained records managers within judiciaries, the need for formal training and training materials in judicial records and information management , and the importance of having expert advice and guidance available to those with responsibility for records and information management in the courts. In summary, E-Syariah initiative has significantly improved court workflow as well as records management in Malaysia. However it needs to be acknowledged
  19. 19. GROUP 1 19 CP3T17 WORD ASSIGNMENT that the major challenges of E-Syariah are to introduce standardization, practice, technology and strategy. This means that the Federal government in Malaysia has to take the lead and provide guidelines and legislative framework for the state courts to administer themselves in their own jurisdiction. This self-administration, although independent of Federal intervention, should follow the same technological and process based. This would allow for the much needed overall standardization that would enable E-Syariah initiative to realize its goals and objectives. Reference Site: 1. Sarawak Information Systems SDN BHD, Tel: (60) 82-426733 Fax: (60) 82-423533, Email: service@sains.com.my 2. E-Syariah Implementation Synopsis (2005), Malaysian Syariah Judiciary Department, Percetakan Nasional Malaysia Berhad, Kuala Lumpur. 3. Johare, R. (2007) ‗A global search for universal models of education and training in electronic records management‘, Malaysian Journal of Library & Information Science, 12(1):1-22. 4. Laldin, M.A. (2009) Introduction to Syariah and Islamic Jurisprudence, CERT Publication, Kuala Lumpur. 5. Motsaathebe, L. and Mnjama, N. (2009) The management of High Court records in Botswana, Records Management Journal, 19(3): 173 - 189 6. Saman, W. (2011) ‗E-Syariah; interview session with Puan Rosimah‘ In the Pursuit of Legal Information Management, blog posting, retrieved June 1, 2011, http://wansatirahlegalinfo. blogspot.com/2011/05/E-Shariah-interview-session-with- puan.html 7. Saman, W. and Haider, A. (2011) ‗The Implementation of Electronic Records Management System: A Case Study in Malaysian Judiciary" American Conference on Information System 2011 Proceedings, Detroit 4-7 August 2011. 8. Sheriff, S. (2010) the contempt power: a sword or a shield? A Study of the law and practice of contempt of court in Malaysia. Doctoral thesis, Durham University. http://etheses.dur.ac.uk/536/
  20. 20. GROUP 1 20 CP3T17 WORD ASSIGNMENT  IDENTITY CARD : MyKad Government facilities face a challenging and ever changing risk profile. Security systems are paramount to increase safety and security for employees, area citizens and elected officials. But many government facilities, especially those in small city and towns are not staffed with a full-time security staff. So, technology becomes an even more important piece of the security puzzle. A long time ago, traditional analog-based system used but in this modern life it‘s not effective enough to recure these critical facilities but the promise of Information Technology (IT) can help facilities manage and control risks. Government need advance networked tools that leverage the power of the IT backbone to correlate information from traditionally separate subsystems like video surveillance, analytic, access control, alarm management and VoIP for example into one platform to increase situational awareness and help security staffs identify violence or threats before an event occurs. Other than that, the using of identity card in our country which is known as MyKad. MyKad is the compulsory identity document for Malaysian citizens aged 12 and above. MyKad was introduce by the National Registration Department of Malaysia on 5 September 2001 as one of four MSC Malaysia flagship application and a replacement for the High Quality Identity Card. Malaysia became the first country in the word to use an identification card that incorporates both photo identification and fingerprint biometric data on an in-built computer chip embedded in a piece of plastic. Besides, the main purpose of the card as a validation tool and proof of citizenship. Other than the birth certificate, MyKad also serve as a valid driver‘s license, an ATM card, an electronic purse and a public key, among other applications as part of the Malaysian Government Multipurpose Card (GMPC) initiative, if the bearer chooses activate the functions. The technical specifications of MyKad are the initial MyKad was a contact card solution developed and manufactured by IRIS Corporation. Made of PC with the dimensions in the ISO/IEC 7816 ID-1 format (standard credit card format). The initial card had a 32kb EEPROM (electronically erasable programmable read-only memory) embedded chip running on M-COS (MyKad chip operating system). In November 2002, the capacity was increase to 64KB. The upgraded and current version of the MyKad is a hybrid card containing two chips for both contactless interfaces. Currently, this hybrid type MyKad is only issued in Malaysian States which employ the ‗Touch n Go‘ application. The data retention up to 20 years while
  21. 21. GROUP 1 21 CP3T17 WORD ASSIGNMENT the card itself has a life span of 10 years and has been tested according to the ISO 10373 test standard. All Malaysian citizens and permanent residents 12 years old or above are eligible for a MyKad. From 2001, it gradually replaced an older Malaysian Identity Card system that had been in use since 1949 under British colonial rule, with the intention of becoming ubiquitous by 2007. Children are issued with a MyKid after birth. This card is "upgraded" to a MyKad on the 12th birthday. The MyKad must be replaced when a person reaches 18 years old, as it is a requirement that the photograph be 'current'. Adoption was optional but was spurred by the waiving of the application fee of between RM20 and RM50 until 31 December 2005. As of 27 December 2005, 1,180,208 Malaysians still held an old identity card. After the waiving period ended on 31 December 2005, each new application (first time application) comes with a fee of RM10. MyKad project was developed was originally intended to have eight functions. 1) As identity card 2) Driving license information 3) Travel document 4) Storage for health information 5) e- cash 6) ‗Touch n Go‘ Malaysia‘s toll road tolling system and also public transport payment system. 7) Digital certificate commonly known as Public Key Infrastructure Identity Card MyKad as identity card that including fingerprints and photo must be carried all times. Failure to do so may incur a fine of between RM3000 and RM 20 000 or jail term of up to three years. No unauthorized persons including security guards are allowed to retain the MyKad of other people. Only those authorized by the National Registration Department, like the police and immigration officers can do so. For Muslim-citizens, ‗ISLAM‘ is printed on the card below the picture of the holder. This is to help enforcement of syariah law which is applicable only to Muslims. As the states of Sabah and Sarawak maintain separate immigration controls, citizens who has permanent residency in the states of Sabah and
  22. 22. GROUP 1 22 CP3T17 WORD ASSIGNMENT Sarawak are donated by the letter ‗H‘ and ‗K‘ respectively on the bottom right corner of their card. Driving License Information Next, driving license is official document which state that a person may operate a motorized vehicle such as a motorcycle, car, truck or a bus on a public roadway. Travel Document Besides that, MyKad also use as travel document in Malaysia and several neighboring countries. However, a conventional passport is still required for international travel. For example, when the people from Sabah went to peninsular of Malaysia they have to register their MyKad at immigration officer before fly to peninsular of Malaysia. The card is aimed at reducing congestion at the border by enabling the use of unmanned gates using biometric (fingerprint) identification. Health Information The health information contained in the MyKad is of two types. The first type consists of the health status of the individuals, including his or her chronic illness, if any the supportive medications, the blood group and allergies and immunization history. The second type of health information in the MyKad consists of two out patients visit summaries and one impatient discharge summary. E-cash E-cash is an electronic wallet system intended for low but high volume transaction. ‘Touch n Go’ ‗Touch n Go‘ Malaysia‘s toll road tolling system and also public transport payment system. It is like the credit card sized smart card made of plastic with Philips‘ MI fare microchip technology embedded in it. The Touch n Go systems are designed to process up to 800 vehicles per hour to ease the queue congestion at toll plazas and if used together with smart tag (a non-stop electronic toll collection system) will be able to process up to 1200 vehicles per hour. The card can be categorized into four types:
  23. 23. GROUP 1 23 CP3T17 WORD ASSIGNMENT 1) Prepaid card Standard card - A standard Touch 'n Go cards fare structure currently available for adult fare for CTS and standard class vehicles with 2 axles and 3 or 4 wheels (Class 1) excluding taxis for toll fare. It is like a top up card. 2) Postpaid cards Fleet X‘s card - It mainly purposed for toll fare payment. The details of company name, vehicle registration number and vehicle class were printed on the card. Credit term of 15 days given for post payment and fleet operators are able to monitor toll record/vehicle movement at highways via e-statement (itemized statement) after 24 to 48 hours from the time of transaction. Biz X‘s card - It is the same as standard card mainly purposed for corporate users. 3) Auto reload card Zing Card - The Touch 'n Go Zing is a companion card that works as standard card which is linked to Visa, MasterCard or American Express issued by participating banks in Malaysia. Each time the card balance falls below RM50, it will trigger the auto- reload mechanism to reload RM100 into the card. The amount will be charged to the credit card plus RM2 as auto-reload fee for each time reload. 4) Multipurpose card MyKad - A value added application for Malaysian identity card as e-purse. Digital certificate commonly known as Public Key Infrastructure (PKI).MyKad PKI application allows for two digital certificates to be inserted into MyKad. MyKad holder can apply and purchase the digital certificates from two of Malaysia‘s certification
  24. 24. GROUP 1 24 CP3T17 WORD ASSIGNMENT authority, MSCTrusgate.com.Sdn.Bhd and DigiCert Sdn. Bhd. PKI allows for easy securing of private data over public telecommunications network thus allowing, secure electronic transactions over the internet which includes: - Online submission of tax returns - Internet banking - Secure e mail. Besides that, there were other cards that have similar features with MyKad 1) MyKid - MyKid is a chip-based children identity card or personal identification issued to children under the age of 12. Introduced on 1 January 2005, MyKid contains features similar to MyKad except that it does not include a photograph and thumbprint biometric data. The term Kid refers to: - the slang for child in the English language - the acronym for Kad Identiti Diri or Personal Identification Card. MyKid is issued in pink instead of blue (color of MyKad). Visible data for MyKid include: The heading Kad PengenalanKanak-kanak Malaysia NRIC Number Full name in block letters Permanent address Gender Citizenship status The MyKid chip currently stores only 3 types of data: Birth data e.g. Information on birth parents Health information e.g. Immunization records Education information e.g. Enrolment in schools 2) MyPR
  25. 25. GROUP 1 25 CP3T17 WORD ASSIGNMENT MyPR is an identity card or personal identification issued to residents of Malaysia with permanent resident status. All residents of Malaysia with permanent resident status are required to change their identity card to MyPR with effect from 1 June 2006. The MyPR is red in color visible data include: 1) The heading: Kad Pengenalan Malaysia permastautintetap 2) Full name 3) NRIC number 4) Permanent address 5) Gender 6) Permanent 2)MyTentera -The MyTentera will replace BAT C 10 document. -The MyTentera will be silvered- colored and feature the Malaysian Armed Forces logo at the back top right corner of the card. It will also contain a 12- digit military identification number similar to the NRIC number. The conclusion, as a Malaysian citizen we should be proud because we have our own identification card which is known as MyKad. The key technology behind this smart card system is the chip and biometrics technology. There are lots of benefit of MyKad that is one for all, easy payment, quick exit and re-entry, emergency medical assistance, reliable identification of data, public key infrastructure, facilitate transportation need an easy and convenient banking transaction. I would to encourage all of us to register to Government Service Center (GSC) to apply some special service and benefits. We must take a reasonable care of our MyKad and improve our responsibilities towards its. Make sure we don‘t use MyKad for some default advantaged for ourselves without thinking the causes to our country. So, that how IT helps improves system in government. Reference Site: 1. "MSC Malaysia Flagship Applications". Retrieved 28 December 2010. 2. "One for All". Retrieved 28 December 2010. 3. "MyKid". Retrieved 28 December 2010.
  26. 26. GROUP 1 26 CP3T17 WORD ASSIGNMENT 4. "MyPR". Retrieved 28 December 2010. 5. "MyTentera card for soldiers". Retrieved 28 December 2010. 6. "MyKad: The Government Multipurpose Card". Retrieved 28 December 2010. 7. Malaysia and Brunei to allow frequent travellers to use ICs Knight, Will. "Malaysia pioneers smart cards with fingerprint data", New Scientist, 21 September 2001 "MyKid for all newborn babies soon", The Star, 26 February 2003 Thomas, M. Is Malaysia's MyKad the 'One Card to Rule Them All'? The Urgent Need to Develop a Proper Legal Framework for the Protection of Personal Information in Malaysia", Melbourne University Law Review, 2004 Krishnamoorthy, M. "Easy step to amend religion in MyKad", The Star, 23 December 2005 Sujata, V.P. "Applicants to be charged a fee from next year", The Star, 29 December 2005 "Mad rush to beat the deadline", The Star, 30 December 2005 "Abusive bunch forces Kepong branch to call in cops", The Star, 30 December 2005 Anis, M.N. "Singapore 'no' to MyKad", The Star, 6 April 2005. Fadzil, M.M. "The Malaysian Experience: Implementing A National Multi- applications Citizen's Card" – see here for further details of the exact information stored on the card Raja Petra KamarudinGive them a uniform and it goes to their heads, Malaysia Today, 13 October 2005. National Registration Act 1959 (Act 78) and Regulations, International Law Book Services, 15 January 2007.  SECURITY : Police Effectiveness and the Organization of Policing Crime fighting is essentially an information processing task – police agents must use the information available at the local and aggregate levels to prevent and solve crimes. Thus, we should expect large changes in the cost of processing information to have an important impact on the organization of police work. In this paper we study the impact of IT on the organization and effectiveness of policing using a newly constructed panel data set of police
  27. 27. GROUP 1 27 CP3T17 WORD ASSIGNMENT agencies covering the period 1987-2003, which we have merged with FBI local-level crime data. Their paper contributes to a large literature on the impact of IT on the organization of work. Despite the growing size of this literature, their knowledge of IT‘s impact is still spotty, in part due to the lack of availability of firm-level data on organizational change and information technology adoption over time. Some previous studies of the impact of IT cannot examine organizational changes because they use the industry as the unit of analysis [e.g. Stiroh (2002), Autor, Katz, and Krueger (1998), and Berman, Bound, and Griliches (1994)], or because they rely on a cross-section of firms [e.g. Acemoglu, Aghion, Lelarge, Reenan, and Zilibotti (2006) and Bresnahan, Brynjolfsson, and Hitt (2002)2]. Others do follow individual firms over time, but either have no data on information technology adoption [e.g. Rajan and Wulf (2006), Berman, Bound, and Griliches (1994)], or no information on organizational change [e.g. Brynjolfsson and Hitt (2003)]. Only a very small number of previous papers provide firm-level evidence on the evolution of information technology, skill usage, and organizational change; notably Caroli and Reenen (2001), which reports data for the 1980s in the UK, and from the early 1990s for France, and Doms, Dunne, and Troske (1997), who study a panel of manufacturing firms between 1987 and 1992. Like these papers, our paper utilizesfirm-level data on the evolution of skills, organization, and information technologyadoption. However, it is the first to systematically examine non-manufacturing firms– in our case, public organizations – and the first to study the majority of the firmswithin the observed industry. Moreover, it is the only paper to include a long panel(16 years) covering most of the period of the recent IT revolution. Finally, by merging in agency- level data on crime rates and arrest levels, we are able to incorporate richproductivity measures into our analysis. We start by studying the impact of computerization on productivity and organization using a panel of police departments. Our main identification strategy compares, controlling for city size and other characteristics, the organization and productivity of departments that adopted more computing technology to that of departments that adopted less. Consistent with previous research, we find that IT adoption and skill are complementary: departments that adopt IT increase police training and introduce college requirements for new recruits. The evidence suggests that this increase in training is primarily related to the need to learn to use new devices, rather than IT-induced enhancement in the training process. Moreover, adopting
  28. 28. GROUP 1 28 CP3T17 WORD ASSIGNMENT departments become larger, increasingly employ special units, and include a larger fraction of support personnel. In sum, departments become more highly skilled and their organization in many ways more complex. Despite these changes, we find little evidence that general IT adoption resulted by itself in an increase in the effectiveness of police work, as manifested both in clearance rates and in crime rates. We carefully analyze the generality of these results, and find them robust to alternative samples (by size, by period, early adopters,growing versus non-growing cities, etc.) and specifications of the IT measure. Correctly interpreting the underlying causal mechanisms at work is an important consideration here–our findings indicating that IT promotes organizational change could reflect reverse causality or omitted variable bias. Given the nature of organizational change, which often involves simultaneous adjustments on a number of dimensions and which may be driven by factors unobserved to researchers, sorting out causal pathways can be challenging. Using the available data, we attempt to address several alternative explanations for the strong relationship between IT use and our organizational measures. By including both year and agency fixed effects in our specifications, we first remove variation that may be due to systematic differences across departments (such as geography) and well as macroeconomic trends. We also find our results robust to inclusion of time trends by state or initial level of computerization. If, as agencies increase in size, their optimal structure involves increasing use of IT and changes in organizational form, failure to adequately account for agency size could suggest a spurious effect of IT on organization. In each of our baseline regressions we flexibly control for the relevant aspect of agency size or workload. As additional checks, we rerun our regressions first limiting the sample to the largest and smallest agencies and then including a full set of agency-size decline and year interactions as controls. The strong positive relationships between IT, worker training, and worker skill persist in these specifications. Poorly managed departments may undergo overhauls that affect both IT use and organizational variables. Using civil litigation cases filed against an agency in 1987 as a measure of initial department quality, we uncover little evidence suggesting differential IT adoption by poorly functioning agencies. Alternatively, younger, dynamic cities, such as Houston or Seattle, may have unobserved characteristics that promote both IT use and different bureaucratic evolution. Limiting the sample to shrinking cities or cities with little population change does not alter our conclusions, however.
  29. 29. GROUP 1 29 CP3T17 WORD ASSIGNMENT We also estimate specifications including leads of IT intensity as additional explanatory variables to assess whether exogenous organizational reform could prompt IT adoption (reverse causality), but obtain little indication of such effects. Another possibility is that agencies with larger budgets are able to implement both information technology and superior organizational practices such as increased training. However, the strong relationship between IT and organization persists when we directly control for equipment expenditure in our regressions, suggesting that this relationship is notdriven primarily by resource availability. As a final check, we employ two different instrumental variables (PC availability in the broader area and body armor use) that attempt to capture variation in the supply of and demand for IT exogenous to our organization and effectiveness measures. Although limited, our instrumental variables analysis supports the hypothesis that IT adoption leads to organizational change. Taken as a whole, our evidence is most consistent with a causal effect of information technology on organizational structure, with the large technological changes driving IT adoption in the broader economy contributing to both computerization and organizational change in the police sector but having little apparent effect on productivity. These findings are puzzling: while computers matter organizationally, their effects do not show up in the productivity numbers.We propose two possible explanations for this puzzle, and test them: improvements in crime measurement and complementarities. First, although some information technologies, such as those that identify crime ‗hot-spots‘, should improve deterrence, others could actually worsen crime statistics. For example, if crime reporting is improved, reported crime rates will increase while clearance rates will drop. Our data contain detailed questions on computer functions, such as record-keeping, police dispatch, fleet management, etc. We test for heterogeneous effects of different technologies by simultaneously entering record-keeping and deployment measures in our panel regressions. Offense reports increase by 10% when computers are used for record keeping. Consistent with this hypothesis, such increases take place for crimes that are more likely to suffer from under-reporting, e.g. larceny, rather than those which are severe and thus always reported such as homicide. Deployment technologies, in contrast, are negatively (albeit weakly) associated with offense rates. Second, we consider the complementarities hypothesis, first advanced formally by Milgrom and Roberts (1990). Although IT by itself may have little impact, its impact may be substantial when introduced within the context of an organizational and human resource system designed to take advantage of it. In the specific context of police work, the
  30. 30. GROUP 1 30 CP3T17 WORD ASSIGNMENT complementarity hypothesis takes one very salient form: Compstat. The system of practices summarized by this name was initially introduced in the New York Police Department by Police Commissioner William Bratton under Mayor Rudolph Giuliani‘s leadership and then spread throughout the country. The program aimed to combine real-time geographic information on crime with strong accountability by middle managers in the form of daily group meetings, geographic resource allocation, and data intensive police techniques. The program was widely credited in the press and by policymakers with playing a substantial role in the recent precipitous drop incrime experienced by some cities. To test the complementarity hypothesis, we study the impact of information technology when it is adopted together with skilled officers, new problem-solving techniques, extensive use of ‗output‘ information in evaluation and deployment of officers, and a geographic-based structure. Although the data available for testing this hypothesis are much shorter and more limited (questions on these type of practices were only introduced in the survey in 1997), they clearly endorse this hypothesis. We find crime clearance rates were an average of 2.2 percentage points higher in agencies implementing this integrated set of practices. Similarly, crime rates are negatively associated with Compstat use. Moreover, the individual practices composing Compstat have no independent ameliorative impact on crime levels or clearance rates. We conclude that IT can increase police effectiveness, but that its impact is obscured by large increases in recorded crime, and the increase in effectiveness only takes place when IT is introduced in conjunction with certain organizational practices oriented to take advantage of new data availability. Bibliography: Authors: Luis Garicano, Paul Scott Heaton; the book of Computing Crime: Information Technology, Police Effectiveness, and the Organization of Policing; CEPR Discussion Paper 5837, September 2006.  TAX : Tax System Tax systems in developing countries face both new challenges and new possibilities as a result of technological change. In developing countries, taxpayers and tax administrations must cope with more difficult environments with fewer resources. Some issues (such as
  31. 31. GROUP 1 31 CP3T17 WORD ASSIGNMENT privacy, the benefits and costs of public/private partnerships and corruption) are common to both developing and developed countries, but difference in relative importance in particular countries. This may be more important in developing countries. Technology has influenced the way we work, play, and interact with others. It is not surprising that technology has also affected how tax systems are designed and administered in developing countries. These changes have not always been for the better. These helpful contributions make clear that much more work can and should be done. This first principle of computer processing has been too frequently ignored by those who advocated the use of computers and tried to sell them to poor countries. Technological change continues. Most countries have now moved from rooms full of clerks posting entries by hand in large ledger books or as we observed in one country as late as the early 1990s, writing in pencil on little pieces of paper to widespread use of computers to administer their tax systems. The transition from hand to mouse has been incomplete and uneven. Major differences exist among and within developing countries, both with respect to how their tax systems are designed and administered and more generally, with respect to how technological advances have changed the manner in which their economies operate. In this article, we present some initial observations on how changes in technology may influence tax administration and tax design in developing countries. Roller and Waverman (2001) demonstrate that the introduction of mobile telephones has enabled developing countries to bypass the heavy infrastructure development of land–based telephone systems, and has facilitated market integration and more rapid economic development. We cannot undertake this major task here instead, we present an overview and selective survey of many of the issues raised by how technology influences tax administration and design. Technology is definitely not a ―magic bullet‖ to solve the manifold problems of development taxation. For example, focuses on how tax administrators can use technology. Both the size of the tax collection agency (Slemrod and Yitzhaki,1987) and how the tax agency allocates its budget among its different functions of enforcement, return and data processing, and taxpayer service (Plumley and Steurele, 2004) may be affected. Focuses on the larger question of tax system design.Slemrod (1990) notes that then design of optimal tax systems requires consideration not only of changes in the technology of collecting taxes but also of how technology may alter the economic environment in which governments seek. In contrast to the 1960s, this second generation of computerization relies on personal computers and a network-based information system, rather than stand–alone mainframe computers. For a
  32. 32. GROUP 1 32 CP3T17 WORD ASSIGNMENT recent overview of those problems, noted in an early review of technology and taxation in developing countries that if we want to avoid the cycle of unfulfilled expectations, we need to have a clear strategy for administrative reform, which is much broader and more sophisticated than one which simply implements information technology. Similarly, in words echoing Radian‘s work a quarter century earlier, Dhillon and Bouwer (2005) noted that imposing new information technology (IT) systems without altering the underlying business processes of the tax administration, or without establishing sufficient links to information providers within and outside the public sector, as well as providing adequate staffing infrastructure, was a recipe for failure. Given the extensive experience with the adoption of new technology in tax administrations around the world, one might expect that those closely involved in this process would have developed a systematic taxonomy of the way in which country characteristics (such as income level, educational level, economic structure) interact with the characteristics of different technologies. This would provide a useful starting point for countries contemplating climbing the technology ladder to improve tax administration and design. In our knowledge, no such guide exists and we do not attempt to make up for this deficiency in the present paper. We begin by examining how information technology may be used to improve government tax administration. We then turn to a broader and less explored question: the potential for technology to change the design of tax systems in developing countries. Following a brief review of some issues common to both developed and developing countries that result from the increased use of technology in tax design and administration, it conclude by offering a few tentative observations about the future relationship of tax and technology in developing countries. Tax advisors frequently note that ―tax administration is tax policy‖ in developing countries (Casanegra de Jantscher, 1990, 178). Limitations in tax administration constrain tax policy choices. In this section, the first consider several challenges facing tax administrations in developing countries. We then examine how information technology may improve the ability of tax authorities in developing countries to perform different administrative functions. A large literature has developed examiningthe difficulties facing developingcountries in administering tax systems(Bird, 2004). Some of the key challengesare reviewed here. The challenges we revieworganizational change and political will relate to the ability of tax administrators toimprove their efficiency whether through information technological or other changes.
  33. 33. GROUP 1 33 CP3T17 WORD ASSIGNMENT Technology may influence the institutional and political context in many ways. For instance, technology may change the tax environment by altering distribution methods or reducing cash transactions. Information Technology may improve the quantity and quality of information available to taxing authorities and their ability to use that information effectively. Information Technology may make tax administrations more effective by improving information flow, facilitating coordination, and improving their allocation of resources. Information Technological changes may reduce taxpayer compliance costs by improving information and services to taxpayers (for example, software for maintaining books and records, and for calculating tax liabilities, or electronic or return–free filing alternatives). Information Technology may reduce opportunities for corruption by reducing the face–to– face interaction between taxpayers and taxing authorities. On the other hand, since silver linings seldom arrive without clouds, information technology may equally well increase corruption by increasing the opportunities for more sophisticated collaboration between taxpayers and corrupt officials. One important cost of operating informally is the probability of detection by tax or other government authorities, and resulting penalties. Here again, countries differ greatly. By providing additional tools to observe and monitor transactions and taxpayers, technology may significantly enhance the ability of tax authorities to detect economic activity in the informal sector. For example, information technological improvements may provide tax authorities with greater capabilities to track use of physical inputs, electricity, and labour and, hence, to estimate revenue and profits. Over the last 40 years, reform efforts in tax administration in developing countries have generally centered on information technology (IT). From adopting new technology, it have often failed to reach expectations. Successful reform efforts did not simply computerize antiquated processes, but re–engineered the whole system. Radical improvement in tax administration requires changes in organization and methods, and modern IT greatly facilitates the needed transformation. To take an example from a few years ago, a 1992 study of the enforcement efficiency of the income tax department in Indian identified the following problems; poor use of information collected by the central intelligence branch; ineffectiveness of surveys of business premises; absence of an adequate system of taxpayer identification numbers; absence of an adequate system of third–party information collection; and deficiencies in the record keeping system.
  34. 34. GROUP 1 34 CP3T17 WORD ASSIGNMENT Although many of these problems can be solved by adopting appropriate and available technology, as India has increasingly done (for example, with the introduction of an online tax accounting system in 2004), successful use of IT requires restructuring and retraining the tax administration. As with most new technologies, IT is a double–edged sword. In the hands of taxpayers, it may make tax administration more difficult (especially in an open economy). In the hands of tax authorities, it may enable a more robust response to such challenges. Experience suggests a number of lessons with respect to the successful application of IT in tax administration. An appropriate strategy must consider the obstacles and constraints arising from such organizational rigidities as civil service salary structure and procedural hurdles in acquiring the necessary expertise, hardware, and software. 13 A relatively centralized innovation strategy is required since equipment and software should be standardized to facilitate training, operation, networking, and maintenance. Whenever possible, software should be bought off the shelf rather than developed internally, both for cost reasons and to accommodate subsequent technological developments. Ultimately, the pace of change and the success of any modernization program depend on human resources on the training and skills of the people who are expected to use and operate the technology. Considerable organizational re-engineering is usually needed to gear the tax administration to a computerized environment. Experience in Kenya and elsewhere demonstrates that the successful introduction of new technologies requires consideration of the susceptibilities of existing staff and their resistance to change (Peterson, 1996). Indeed all those in a position to affect how well any new IT system can function must work together. As a complex system is more likely to engender resistance and problems, the design, structure, and operations of the system should be as simple as possible. In some situations it may even be advantageous to entrust part of the responsibility for setting up an information system to organizations outside the tax administration, or even outside the government.16 We return to the question of privatization later in this paper. Administrative Capacity Many who examine tax administration in developing countries conclude that there is simply insufficient ―administrative capacity,‖ usually defined in terms of skilled human capital, for the tax administration to function properly. Countries differ greatly in administrative capacity. In countries with very low levels of administrative capacity, technological innovation may to some extent be able to substitute for inadequate human capacity. For example, while a few highly skilled people would still be
  35. 35. GROUP 1 35 CP3T17 WORD ASSIGNMENT required to implement and operate any modern data processing system, it might be easier in many countries to find, say, three capable university graduates rather than the many literate and numerate high school graduates who might otherwise be needed to do the same work. More generally, at any given level of administrative capacity, more can be done better with appropriate advanced technology, often by complementing and increasing the productivity of skilled staff instead of replacing it. In some cases, technology can and has substantially extended the capacity of tax administration officials by permitting them to assemble and evaluate the mass of information already currently available but not effectively used. Technology alone cannot do the job of good tax administration, and good tax administration can be carried out without technology. Information Technology increases the opportunities with respect to what can be done in any tax administration and often makes it possible to perform administrative functions both differently and better than without technology. Undoubtedly, introducing creative technology in many developing countries will yield significant gains, as shown by the use of financial networks operated through mobile telephone networks to bypass infrastructure efficiencies. For the most part, what really needs to be done to improve tax administration in developing countries is well known and can sometimes be implemented within a surprisingly short time span, as has been demonstrated in Brazil Technology may enable countries to leap over infrastructure gaps and even to overcome (to some extent) human capital deficiencies.But it cannot circumvent the critical political obstacles that plague tax administration in many developing countries. InformationTechnology to Improve Tax administrators in developing countries play many roles. They are expected to collect revenue, process returns and information, limit tax evasion, provide services to taxpayers, and, in many countries, implement social programs through the tax systems. The objectives and policies of tax administrators differ among countries and over time. Like any other government agency or private sector enterprise, tax administrators need to make difficult choices on allocating scarce resources among different types of taxes, different administrative functions, and different types of information technology. To make informed decisions on alternative feasible technology investments, tax administrators need estimates of the current costs of administering the tax system, the costs of administering particular taxes, and the expected costs and benefits from the additional investment. Here, we focus primarily on the question of how information technology has the potential to change how taxing authorities perform all the interconnected tasks of locating and identifying taxpayers, Information technology reporting and withholding, processing
  36. 36. GROUP 1 36 CP3T17 WORD ASSIGNMENT returns, auditing, collecting, educating taxpayers, and providing taxpayer services. The availability, cost, and accessibility of computers make them ideal for the large–scale information–processing and coordination problems facing tax administrations in even the poorest countries. Among the areas that may be computerized are; taxpayer records and tax collection (taxpayer compliance),internal management and control over resources, legal structure and procedures, and systems to lower taxpayer compliance costs. In every country that has successfully adopted improved technology for tax administration, allotting a unique identification number has been a necessary requirement. Without such a number, information can neither be stored properly nor used effectively. Countries may use a number unique to the tax system or one linked to other government activities. Several countries have begun issuing ―smart‖ ID cards to citizens that contain TINs as well as other information. Information technology allow governments to coordinate the numbers assigned with respect to various government services and financial services to TINs issued by taxing authorities. This conclusion is, of course, based on our own limited knowledge and experience, and we would be delighted to learn of careful empirical studies in any country that have guided allocative decisions in tax administration. Tax administrations need more expertise in information technology in part because many of their largest taxpayers, multinational companies and large domestic firms, employ sophisticated computer systems. An important task of tax administration is to bring together information from different sources, both within the administration and from other relevant government and private sources, in order to verify the information supplied by taxpayers themselves. Most countries already require various private and public agencies to furnish information regarding various transactions and activities to the tax authorities. In some but not all cases, those agencies are also supposed to withhold a part of the payment made by the agent to the potential taxpayer. Withholding, thus, serves the two–fold purpose of helping to identify potential taxpayers and ensuring that at least a part of the tax is realized at source, thereby minimizing risk as well as delay in payment. Neither internal nor external sources of information are of any use in the absence of an efficient system of monitoring, nor of adequate IT infrastructure to collate and store data with easy access for retrieval and cross–checking. A reliable single, centrally maintained register of taxpayers, each with a unique TIN, is, therefore, essential. Withholding in developing countries could cover not only traditional items, such as wages, interest, and dividends, but also professional fees, payments to independent contractors, rents, and (in some instances) a wide range of business transactions. In some developing countries,
  37. 37. GROUP 1 37 CP3T17 WORD ASSIGNMENT experience in computerizing the information flowing through and to such LTUs has proven to be a useful testing ground for developing systems that can be later extended to the whole taxpaying population Depending on computer assisted techniques, the European Union (EU) has implemented a test program that allows businesses and individuals to participate voluntarily in a new fully digital VAT system, which could eventually be linked to smart ID cards. Processing Returns and Payments One of the first uses of IT was to process tax returns and payments. Partly because banks had more adequate data processing systems than tax administrations, several Latin American countries initially outsourced the receipt and processing of tax returns and payments to the banking systems. Such systems have obvious attractions for both taxpayers and the tax administration. However, questions may be raised about the long–term desirability of freeing citizens from the painful obligation of explicitly facing up to the fiscal needs of the state at least once a year. Whether or not returns are filed with tax offices, there are advantages in requiring payments to be made to financial institutions if only because keeping cash out of the tax office reduces opportunities for corruption. However, such countries can still make good use of simplified information technology to improve outcomes. For example, returns might initially be scanned to determine whether their mark–up ratios (or other parameters such as wage bills) fall within normal ranges for comparable firms. Those that fall outside these parameters should then be subjected to additional desk investigation (for example, cross–checking information with customs and income tax for the period in question).Given the rapidly spreading use of mobile telephones as a way of making financial transactions even in very–low–income countries, more use of electronic fi ling and payment of taxes seems likely in the near future. Auditing is a necessary element of good tax administration. If information matching or cross– checking fails to identify underpayment of tax, then auditing is the only way to uncover intentional noncompliance. Typically, auditing means the examination of fi led returns by tax authorities to determine the correctness of self–assessed taxes. The authorities may also use audits as the basis for statistical studies of taxpayer characteristics to be used in developing presumptive indicators—a prominent feature of taxation in many developing countries The success of auditing and the feasibility of various auditing strategies depend on the quality of the information available to the auditor, which in turn depends on three factors: the information gathered from the taxpayer and third parties, the information processing capacity
  38. 38. GROUP 1 38 CP3T17 WORD ASSIGNMENT of auditors, and the strategy pursued. As more advanced IT systems improve the first two factors, the authorities have a greater range of auditing strategies. Developing countries have made significant progress in using information technology to improve services to taxpayers. For example, Chile reduced the burden on taxpayers by eliminating payment by cash or check, and replacing it with payment by electronic funds transfer. Singapore has gone even further, often saving taxpayers the trouble of making a payment by dipping directly into their bank accounts (although one may perhaps doubt whether taxpayers appreciate this degree of service). Other developing countries have also taken steps to make the lives of taxpayers easier—and, not incidentally, to improve the reliability of their revenue streams. A few decades ago it was not uncommon to see long lines of taxpayers in the street in front of the local tax office when the time came to make the monthly, quarterly, or annual tax payments. Even when computers were first introduced, taxpayers frequently had to line up to get the forms that they had to submit. Such sights are now largely history in most parts of the world. Now the painful act of paying taxes can often be done from one‘s home computer—at least in countries in which the electricity supply is reliable and in which most taxpayers have access to computers. Neither condition holds in many developing countries, notably those in sub–Saharan Africa, but they do hold, increasingly, even in countries like India that have huge poor populations but also increasingly large middle classes. Even taxpayers without a computer can usually pay their taxes at any local bank branch in many countries, and (as mentioned above) payment through mobile telephones may also become more common in some developing countries. Countries such as Singapore, Chile, and South Africa, already have excellent web pages that provide taxpayers with information about their obligations, answer many taxpayer questions, and provide return–free filing. Brazil has managed to extend electronic fi ling coverage to 90 percent of its taxpayers. Even when governments do not provide such facilities, tax preparation software is often readily available to taxpayers and is usually acceptable for official purposes. Our discussion of information technology and tax administration does not lead to any radical new conclusions, but then for the most part we were covering well–trodden ground. In contrast, how technology may influence the design of tax systems or the design of specific tax instruments in developing countries is a much less discussed question. We first consider some general questions about tax system design in developing countries, and then look briefly at some proposals with respect to specific tax instruments that may be
  39. 39. GROUP 1 39 CP3T17 WORD ASSIGNMENT more feasible as a result of improvements in technology. Information Technological advances will alter the economic environment in which governments seek to collect tax revenue. These advances will make some persons or transactions easier to tax. Particularly in developing countries, use of various methods of electronic payments will move more transactions from the informal to the formal economy. As discussed earlier, technology will also provide tax administrators with more tools to track the movements of goods and individuals. It should also increase opportunities and reduce costs of cooperating with tax administrators in other countries to improve tax compliance of persons with investments and activities outside the country. But information technology will also make some persons or transactions harder to tax. For example, it is currently much harder for tax authorities to track goods in digitized form than those that are physically transported across or between countries. Foreign lawyers, accountants, and management consultants can provide services with little or no physical presence in a country. Advances in the financial service industry allow domestic investors access to foreign banks and securities with simple Internet access. The globalization of financial markets has made it harder for any one country to tax income from mobile capital. Information Technology may also influence incentives of governmental officials in the design and administration of tax systems. Information Technology may change both the size and structure of this tax base. Bibliography: Authors: Richard M. Bird; National Tax Journal Vol. LXI, No.4, Part2: Technology and Taxation in Developing Countries: From Hand to Mouse, December 2008.