E-Government Services and Public-Private Partnership Modeling

by
Tommy White
Chief Executive Officer, IP3
and
Shawn Ames
Researcher, IP3

About the Authors...

Tommy White is the Chief Executive Officer and Co-Founder of IP3 where he oversees the operations and management of the firm. He teaches and consults on the applications of PPP models for numerous sectors, including the ICT and e-government sectors. Shawn Ames is a Staff Researcher in IP3's internship program. He is currently finishing his degree in E-Commerce at the University of Toledo.

Introduction

The year 2002 marked many events that will transform government operations in 2003. Governments worldwide have realized the cost effectiveness and efficiency of an integrated, e-government-based system that provides for increased public sector accountability, transparency, and customer service. The use of public-private partnership models in the expansion of e-government services has been an important factor in the spread and use of e-government planning and development. In fact, the role the private sector plays in e-government development could logically be defined as the most crucial, given that on a global basis, private sector investment in information and communication technology is more than triple government sector investment, and will be for years to come. Private sector participation increases competition and R&D investment, all the while allowing the public sector to reap the benefits of a well-developed e-government sector without absorbing significant costs.

Going Forward

For decades, most people have held the view of government as a bureaucratic and paperwork ridden system of rules and regulations where poor decision-making and inefficiency were the norm rather than the exception. In the past several years, e-government programs and projects have made tremendous inroads to address these issues and 2003 will be no exception. The likely continued global economic slowdown/stagnation into 2003 will force governments to continue to look for cost-effective ways to deliver services- including the acceleration of e-government solutions.

For example, many national, state and local governments have created web portals that are providing valuable information to their constituencies, increasing significantly service delivery while at the same reducing the costs of that service delivery. This trend will likely accelerate, as more and more governments see the benefits of an e-government program and continue to update their portals to not only include information/documentation services, but also real communication capabilities and transaction functions with their staff, constituents, and vendors alike.

Individual examples of success in these areas are countless. For example, to reduce corruption, state governments in India are web-enabling land records search functions and property tax statements to improve transaction transparency and increase revenues to the state governments. In Argentina, the government now lists on their portal all budget records pertaining to government spending, thus allowing for more transparency and crystallizing an attitude of good faith from the Argentinean people. In Australia, citizens can vote online. In Africa, a virtual university has been created to offer courses and degrees in an e-learning environment. In Singapore, citizens can pay their utility bills online.

As we enter 2003, e-government activities will likely focus on the following areas: increased opportunities to apply for permits, registrations and licenses in a range of areas; increased government procurements through "e-procurement" applications; enhancement of communication tools through increased e-mail, discussion board, and chat room capabilities; and increased online transaction capabilities, including secure bill payment services. Developed and developing countries alike are applying these technologies. Years ago, such mechanisms to cut costs and provide better and more accountable service for governments were non-existent. Now, with the Internet and the development of inexpensive and effective software, countries worldwide can exploit the benefits that new information and communication technology brings to the marketplace.

How are many of these initiatives being driven? Through the use of public-private partnership modeling in the planning and implementation of e-government programs. Examples of public-private sector relationships include:

• A PPP arrangement with the U.S. government and Adobe Systems Incorporated, which allows for the digitizing of documents for ready and immediate access (Adobe Document Server for Reader Extension) gives the process of completing, data basing, emailing, and editing documents a significantly increased efficiency and cost savings. Similar PPP arrangements are set to expand into countries such as Malaysia, Japan, and India in 2003.
• Using a readily available software package available from a private firm, the Philippines Customs Bureau has developed an on-line system that lessens the cost of trade for businesses, reduces opportunities for fraud, and helps the Bureau to maximize revenue collection.
• Fedbid.com, a private company, has saved the U.S. government over $68.7 million dollars due to its specialty of web-based reverse auctions. These auctions allow government agencies and departments to obtain supplies at lower costs while spending less manpower on negotiating complex contracts and finding vendors. Many governments worldwide will adopt this procurement process in 2003.
• Private sector organizations are playing an important role in increasing the "demand" for e-government by creating computer center "kiosks" where individuals can go to receive computer and Internet training as well as be provided access to the web.
• Research shows and increased level of consumer confidence in Internet services, evidenced by the fact that individuals are increasingly willing to give personal information such as credit card numbers online to government websites. A further acceleration in e-commerce functionality of government websites is likely to follow.

E-government solutions and PPP modeling have a bright future for 2003 and beyond. To ensure a continued smooth transition to a more "electronic government", however, a few factors need to be addressed, particularly for developing and emerging market countries. These include: increased access to computer and Internet technology by the masses; stronger legislation governing e-commerce transactions; increased bandwidth for better and more stable information flow; and better understanding by senior government officials exactly how e-government programming can provide better and more cost effective services to their constituencies. Fortunately for developing and emerging market countries, donor support is high for e-government programming. Bilateral and multilateral organizations all recognize the importance of information and communication technology not as a panacea, but as one tool to improve government service, increase accountability, and lower costs.

Useful Links

Excellent resources for more information on E-Government and PPPs can be obtained from the following web sources: