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Implementing National ICT Strategies: How the World Bank Can Help The Case of E-Sri Lanka. Nagy Hanna Senior Advisor, e-Development, World Bank Chair, e-Development Services Thematic Group Mainstreaming e-Development Video-Seminar October 18 and 20, 2004. What is e-Development.

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implementing national ict strategies how the world bank can help the case of e sri lanka

Implementing National ICT Strategies: How the World Bank Can HelpThe Case of E-Sri Lanka

Nagy Hanna

Senior Advisor, e-Development, World Bank

Chair, e-Development Services Thematic Group

Mainstreaming e-Development Video-Seminar

October 18 and 20, 2004

what is e development
What is e-Development
  • E-Development is about transition to knowledge economy by leveraging its driving force - Information and Communication Technologies (ICT) for competitiveness and equity.
  • E-Development is not only about technical change but also complementary changes to induce development that is effective, and empowering.
benefits of e development
Benefits of e-Development
  • ICTs’ potential impact:
    • Growth & Competitiveness
    • Poverty Reduction & Human Development
    • Public Sector Performance
growth competitiveness
Growth & Competitiveness
  • ICT as a major sector with one of the highest growth/export potential:
    • Software export (India, Ireland, Israel)
    • Services and business process outsourcing (India, Philippines, Caribbean)
    • Hardware export (Costa Rica, China, Taiwan, Malaysia)
    • Service and logistics hub (Malaysia, Singapore, Ireland)
  • ICT as enabler for competitiveness:
    • Reduce barriers to entry; increase competition
    • Lower transaction costs; optimize global supply chains
    • Promote innovation; share knowledge. E-Administration (Singapore, India, US, Canada)
macro impact on productivity
Macro Impact on Productivity
  • Ireland, Finland, Korea: close to 1% of labor productivity growth (95-2000) due to productivity growth in ICT manufacture.
  • US: TFP rate almost doubling (95-02) due to ICT and complementary investments (Brynjolfsson)
  • ICT accounts for much of Europe’s lag behind US in recent growth performance (EIU).
  • Due to differences in effectiveness of ICT use, not ICT investment levels.
poverty reduction human development
Poverty Reduction & Human Development
  • Connecting the rural poor to critical information
    • Portals for rural information, collaboration, learning, participation
  • Empowering SMEs and micro-enterprises
  • Empowering Communities
    • Improving access and quality of service in remote areas; CDD
  • Education
    • Lifelong learning through distance education and open universities
    • Distribution of uptodate educational material
  • Health & Social security
    • Access to info and services; remote consultations.
    • Transforming social security systems: Russia, CIS, LCR
public sector performance
Public Sector Performance
  • Increasing efficiency of government operations
    • E-Procurement (Brazil, Chile, Mexico, Romania)
    • IFMS; decentralization; M&E LCR)
    • E-Admin. (Singapore, India, Canada)
  • Improving quality of public services and reducing transaction costs
    • Example: India, land records, extension, registry, forms.
  • Improving business and investment climate
    • Customs, trade net, port (Singapore).
    • Websites for FDI: Vietnam
  • Increased transparency and accountability
    • Example: Seoul’s OPEN for applications; Argentina’s. Cristal for budget
why an e development strategy
Why an e-Development Strategy?
  • Beyond pilots: increase sustainability, scalability, impact
  • Beyond sectoral components: overcome systemic problems
  • Beyond ministerial silos: create e-Gov frameworks, common infrastructures, databases, standards
  • Beyond technology: promote cross-sector, holistic approach with synergies between policy, Information Infrastructure, Human Resources, e-Gov, e-Commerce, telecenters, content and software services
why an e development strategy1
Why an e-Development Strategy?
  • Need for enlightened leadership to drive policy reforms and institutional change- cannot afford a ‘wait and see’ attitude
  • Need for focusing scarce resources; sequencing and phasing of complementary investments
  • Need for partnerships: Public-Private-NGOs
  • Need to integrate into country development strategy, PRSP, competitive strategy
  • Framework for donor coordination in ICT- exploitation of network effects
  • Framework to enable pilots, bottom-up initiatives, shared learning and scaling up
  • Link to Millennium Development Goal: outcome M&E.

e-Dev Strategy Framework


e- Leadership,

Policies &


E-Business & ICT Industry


Information Infrastructure

the e lanka story
The e-Lanka Story
  • USAID-funded ICT cluster study
  • PM asks for Bank support at highest levels.
  • Bank works with stakeholders to clarify vision
  • Linking e-dev to “Regaining Sri Lanka”, PRSP
  • Highest-level government support nurtured
  • Developing e-leadership at several levels
  • Passing ICT bill and enabling laws
  • Piloting, demonstrating, learning
  • Designing comprehensive multi-year program
i ict policy leadership and institutional development
I. ICT Policy, Leadership and Institutional Development
  • Nurturing leadership: ICT Agency, CIOs, Cabinet committee, Admin Reform Committee
  • Balancing top down leadership and bottom up learning and innovation: NGOs. local governments.
  • Partnering with private sector: India, Armenia.
  • Enabling e-laws & telecom reforms.
  • building capabilities for NGOs, communities
  • Program management, M & E, piloting and learning
  • Singapore, India, Turkey, Romania, Russia, Armenia
i ict policy leadership and institutional development1
I. ICT Policy, Leadership and Institutional Development
  • Some Anticipated Outcomes
    • Effective policy and institutional environment for ICT use in public and private sectors
    • Effective ICT leadership among top government officials, business and civil society leaders
    • Effective multi-stakeholder partnership framework
    • Effective national coordination of ICT programs and projects, particularly for e-government.
    • Enhanced country brand of ICT capabilities
    • Augment resources & coherent investment (FDI, donors)
ii ict education and industry promotion
II. ICT Education and Industry Promotion
  • ICT Capacity Building Fund (ICBF): competitive grants, fee-based contracting for
    • Innovative ICT training
    • Promotion of FDI in ICT and enabled services
    • Diffusion of ICT in SMEs
    • Domestic software industry promotion
  • Some Anticipated Outcomes:
    • increased employment in software & ICT industry
    • increased software exports
    • improved competitiveness of local industry, SMEs
iii information infrastructure
III. Information Infrastructure
  • Rural Connectivity
    • Smart subsidy scheme to extend access in rural areas, encourage private participation
    • Poorest regions to be targeted: rural areas in the South; post-conflict regions of North and East
  • Telecenter Program
    • Implementation partnerships: Public-Private, NGOs
    • Competitive recruitment for telecenter operators; associated with Telecenter Support Institutions
    • Community outreach to enable distance learning, computer training, academic curriculum support

Telecenters: Roles and Responsibilities

Sectoral Institutions as content providers

Telecenter Support


Rural Telecom


Build Local Capacity: NGOs, Universities, Private companies

Telecenter Operators

Subsidy scheme to guarantee affordable connectivity

Local entrepreneurs to run telecenters; Allow several viable models


Community-Based Approach; Inclusion of vulnerable groups

iii information infrastructure1
III. Information Infrastructure
  • Some Anticipated Outcomes:
    • Improved affordability & availability of services
    • Reduced transaction costs: citizens, businesses
    • Increased private sector investment in information infrastructure
    • Enabled e-commerce and services leading to higher employment and entrepreneurship in rural areas
    • Mobilization and sharing of local knowledge
    • Empowerment of target groups through community driven development
iv re engineering government
IV. Re- Engineering Government
  • Establish vision, policy, strategy
  • Pilot and phase strategic applications
  • Human and business processes: restructuring, information sharing, KM, community of practice
  • Identify needs of government clients and underlying common information infrastructure:
    • Leadership: E-Parliament, E-Cabinet
    • E-citizen services
    • Public financial management: taxes, customs, budget
    • E-procurement; project MIS
    • Key infrastructure: portal; government-wide network; population registry; land info; national smart card
    • Common technology standards for information sharing
iv re engineering government1
IV. Re- Engineering Government
  • Some Anticipated Outcomes:
    • transparency in government operations
    • client-focused processes
    • government accountability for service level standards
    • electronic sharing of data across agencies
    • separation of service delivery from transaction processing
    • always-on, user-friendly, distance-neutral information and service facilities to citizens and businesses
    • selective unbundling and privatization in provision of public services
e government evolution or revolution
E-Government: Evolution or Revolution?


All stages of transactions electronic. New models of service delivery with public-private partnerships


Electronic delivery of services automated, e.g., renewal of licenses

Delivering Value To Citizens

Limited Interactions

Email contact, access to online databases & downloadable forms via intranets

Web Presence

information on rules and procedures

Complexity of Implementation and Technology

road map and journey
Road Map and Journey
  • How to accelerate evolution to transformation?
  • How to orchestrate various elements of e-development to support e-government?
  • The role of leaders, change agents and administrative reform processes.
  • Developing processes and tools: CIO council, technology architecture, IT budget, etc.
  • Developing roadmap/plan: multi-year prioritized investments in common platforms and infra.
  • Promoting learning; sharing of best practice.
v e society
V. e-Society
  • E-Society Fund: competitive grants to local community organizations, NGOs, private companies
  • Grants to focus on innovative, socially relevant ICT pilot projects; possibility of increasing scale and scope
  • Some Anticipated Outcomes:
    • increased awareness of ICT among rural and urban poor
    • improved community capacity for utilizing ICT to meet local needs
    • increased economic opportunity and equity through wide use of ICT in agriculture, health, education
    • Empowerment of women and youth
lessons learned
Lessons Learned
  • ICT pervasive impact, not an isolated pillar
  • Need to integrate ICT into core development strategy. Not ICT vs. education, but ICT to enable all sectors & meet basic needs better.
  • From development vision to e-Development.
  • Need to adopt a strategic approach. Balance top direction and bottom initiative. Set vision, priorities, standards, sequence of investments
  • E-leadership and CIO roles key.
lessons learned cont d
Lessons Learned (cont’d)
  • Quick wins - high-priority e-services that are relatively simple, have a high transaction volume, and involve a large group of clients. Pilots integral to strategy implementation.
  • Partnership between government, private sector, civil society donors, and diaspora.
  • Avoid technology focus: ensure complementary investment. Skills, organizational innovation, and incentives are crucial to make technology work.
  • No “one-size-fix-all" strategies.
mainstreaming e development challenges to countries
Mainstreaming e-Development: Challenges to Countries
  • Coalition for reform and implementation: from paper strategies to practice
  • Links to country development strategy and budget framework
  • Focus and priority setting
  • E-Leadership and implementation capacity
  • Early results and adaptive planning
main challenges to aid agencies
Main Challenges to Aid Agencies
  • Mainstreaming ICT into development agenda and Country Assistance Strategies. Operationalize WSIS? Ownership by operational departments.
  • Avoid pitfall of e-development as technology fix
  • Building core competency across turfs and sectors.
  • Knowledge sharing; partnerships.
  • Empowering e-champions and integrators.