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Technology Leapfrog – Government Transparency,[object Object],FreeBalance International Steering Committee,[object Object],January 18, 2011,[object Object],Doug Hadden,[object Object],VP Products,[object Object]
Agenda,[object Object],Effects of Globalization,[object Object],Emerging Markets Growth,[object Object],Theory of Technology Leapfrog,[object Object],Government as “Platform”,[object Object],Inhibitors,[object Object],4 E-Government                    Transparency PFM Leapfrog Opportunities,[object Object],Challenges,[object Object]
Globalization,[object Object],Digital technology,[object Object],Efficient movement of goods,[object Object],Competition for markets, businesses,[object Object],Ever increasing information        availability,[object Object],Driving reform,[object Object]
Citizens are Watching You,[object Object],21st Century – don’t worry about the *Press,[object Object],Technology in the hands of citizens,[object Object],Millions of untrained auditors,[object Object],Mobile phones game-changer,[object Object],* Lesson learned in Iran, China, Egypt, Tunisia,[object Object]
Globalization Extended,[object Object],1. Good,[object Object],Governance,[object Object],1. Good,[object Object],Governance,[object Object],      Governments     ,[object Object],      Governments     ,[object Object],2. ICT,[object Object],Modernization,[object Object],2. ICT,[object Object],Modernization,[object Object],External Forces,[object Object],External Forces,[object Object],Globalization,[object Object],Globalization,[object Object],Internal Forces,[object Object],Internal Forces,[object Object],Increasing Citizen Expectations,[object Object],[object Object]
 Improve Citizen Services
 Health, education, infrastructure, prosperityImprove Development Outcomes,[object Object],[object Object]
 Benchmarks and Indicators
 Stability and SustainabilityGlobal Competition,[object Object],[object Object]
 Corruption Index
 Infrastructure,[object Object]
 United States20,[object Object],10,[object Object],0,[object Object],USA,[object Object],Developed,[object Object],Developed,[object Object],Emerging,[object Object],Other,[object Object],Europe,[object Object],Asia,[object Object],Economies,[object Object],Source: Mirae Asset,[object Object]
Emerging Markets – High Growth GDP Growth, % Share of World Total*,[object Object],90,[object Object],80,[object Object],70,[object Object],60,[object Object],Developed,[object Object],50,[object Object],Economies,[object Object],Emerging,[object Object],40,[object Object],Economies,[object Object],30,[object Object],20,[object Object],Emerging Markets responsible for most of the global growth,[object Object],10,[object Object],0,[object Object],1984,[object Object],1989,[object Object],1994,[object Object],1999,[object Object],2004,[object Object],2009,[object Object],Sources: IMF, The Economist,[object Object],* At purchasing power parity,[object Object]
Emerging Markets – High GrowthShare of Global GDP*,[object Object],Emerging Markets responsible for most of the global growth,[object Object],70,[object Object],60,[object Object],50,[object Object],40,[object Object],Emerging,[object Object],Economies,[object Object],30,[object Object],Developed,[object Object],Economies,[object Object],20,[object Object],10,[object Object],0,[object Object],1913,[object Object],1950,[object Object],2005,[object Object],2025,[object Object],* At purchasing power parity,[object Object],Sources: IMF, The Economist,[object Object]
Emerging Markets – High Growth “New Normal”,[object Object]
Theory of Leapfrog,[object Object],Legacy technology entrenched in developed countries,[object Object],Bi-pass stages in development,[object Object],Focus on what is 			 important,[object Object],Learn from other 		      	  countries,[object Object]
Example: Thailand,[object Object]
3,[object Object],AUSTRALIA,[object Object],HIGH,[object Object],2,[object Object],1,[object Object],Normalized Control of Corruption Index,[object Object],PAPUA NEW GUINEA,[object Object],0,[object Object],UGANDA,[object Object],-1,[object Object],Higher the control of corruption = higher the country GDP Per Capita,[object Object],-2,[object Object],204 Countries,[object Object],LOW,[object Object],-3,[object Object],GDP Per Capita (PPP, logs),[object Object],Benefits of TransparencyControl of Corruption and GDP*,[object Object],Source: The World Bank,[object Object],* At purchasing power parity,[object Object]
3,[object Object],HIGH,[object Object],2,[object Object],AUSTRALIA,[object Object],1,[object Object],PAPUA NEW GUINEA,[object Object],Normalized Voice and Accountability Index,[object Object],0,[object Object],UGANDA,[object Object],-1,[object Object],Higher the government accountability = higher the country GDP Per Capita,[object Object],-2,[object Object],207 Countries,[object Object],LOW,[object Object],Source: The World Bank,[object Object],.,[object Object],-3,[object Object],GDP Per Capita (PPP, logs),[object Object],Benefits of Transparency Voice and Accountability and GDP*,[object Object],* At purchasing power parity,[object Object]
3,[object Object],HIGH,[object Object],AUSTRALIA,[object Object],2,[object Object],1,[object Object],Normalized Government Effectiveness Index,[object Object],UGANDA,[object Object],0,[object Object],PAPUA NEW GUINEA,[object Object],-1,[object Object],Higher the government effectiveness = higher the country GDP Per Capita,[object Object],-2,[object Object],209 Countries,[object Object],LOW,[object Object],Source: The World Bank,[object Object],-3,[object Object],GDP Per Capita (PPP, logs),[object Object],Benefits of Transparency Government Effectiveness and GDP*,[object Object],* At purchasing power parity,[object Object]
Government as Platform,[object Object],Data can lead to economic development,[object Object],Infrastructure,[object Object],GPS, Internet,[object Object],How?,[object Object],Resources information,[object Object],Demographics,[object Object]
Why would more developed countries get leapfrogged?,[object Object],Business Pressure,[object Object],Telecommunications and other monopolies,[object Object],Budget Pressure,[object Object],Affect revenue from selling information,[object Object],Sovereignty Pressure,[object Object],Reluctance to give up national standards,[object Object],Best Practice Pressure,[object Object],Focus on complexity,[object Object],Economic Pressure,[object Object],Less pressure from globalization,[object Object]
E-Government PFM Transparency Leapfrog Opportunities,[object Object]
Budget Transparency,[object Object],Audited books pdf,[object Object],PDF on-line,[object Object],Budget book printed,[object Object],Budget speech pre-released to press,[object Object],Budget speech in official gazette,[object Object],Budget presentation in legislature ,[object Object]
Budget Transparency con’t,[object Object],….,[object Object],Budget data in XBRL,[object Object],Participatory budgeting,[object Object],Interactive budget execution data,[object Object],Quarterly audited reports PDF,[object Object],Audit findings PDF,[object Object]
beta version of Government of Timor-Leste transparency portal ,[object Object],subscribe,[object Object],drill down,[object Object],articles,[object Object]
Expenditures, Transparency Portal,[object Object],10 years of data,[object Object],drill through the chart of accounts,[object Object]
Expenditures, Transparency Portal,[object Object],export to xls, doc, pdf, html, xml,[object Object],track commitments,[object Object]
Technology leapfrog in government transparency developing countries
Technology leapfrog in government transparency developing countries
FreeBalance Survey,[object Object]

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Technology leapfrog in government transparency developing countries

Notes de l'éditeur

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