Digital governance-1
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The document provides an overview of digital governance in India, detailing the efforts of Microsave Consulting in promoting financial, social, and economic inclusion through digital initiatives. It highlights significant advancements in digital governance, including the Aadhaar program, financial inclusion efforts, and improvements in ICT infrastructure that support government services. Additionally, the document discusses successful examples of digital governance in various states, challenges faced, and future plans for further digital transformation.
Digital governance-1
- 1. Digital governance Ideas and lessons from India April, 2020
- 2. About MicroSave Consulting MicroSave Consulting (MSC) is a boutique consulting firm that has, for 20 years, pushed the world towards meaningful financial, social, and economic inclusion. Weare a globally trusted, yet locally based organization that offers high-quality, practical market-led solutions to accelerate financial, economic, and social inclusion in the digital age. With about 190 staff of different nationalities and varied expertise, MSC is proud to be working in over 50 developing countries. Wehave offices in Bangladesh, India, Indonesia, Kenya, Philippines, Senegal, Singapore, Vietnam, Uganda, and the United Kingdom. Wework with participants in financial, economic, and social ecosystems to achieve sustainable performance improvements and unlock enduring value. Our clients include governments, donors, private sector corporations, and local businesses. Wecan help you seize the digital opportunity, address the mass market, and future-proof your operations.
- 4. Digital governance 4 Table of Contents 1. Objectives of the module 04 2. Brief overview of digital governance 05 3. The journey of digital governance in India 1. Financial inclusion 2. Digital identity 3. Telecom 4. ICT 4. Digital initiatives inIndia 1. Infrastructure as a utility to every citizen 2. Governance andservices on demand 3. Digital empowerment ofcitizens 5. Success factors and challenges 09 09 10 11 12 13 13 14 15 17 6. Examples of digital governance in states 20 6.1 Bhamashah, Rajasthan 20 6.2 ePragati, Andra Pradesh 21 7. The road ahead and future plans 22
- 5. Digital governance 5 1. Objectives of the module Global initiatives indigital governance 02 India’s progress indigital governance 03 What digital governanceis 01 The basic idea behind India’s digital governance plan 04 successful implementation of India’s digital governance plan Key pillars of India’s digital governance plan 06Factors that led to the Examples of applications of digital governance 07 05 Future planswith respect to digital governance 08
- 6. Digital governance 6 Source: E-Government and E-Governance: Definitions/Domain Framework and Status around the World, Computer Society of India, 2007 G2G include intra-governmental transfers from one government agency to another for budgetary purposes. G2P is associated with social benefits, government employee salaries, pensions, and tax refunds, among others. G2B include payments related to the procurement of goods and services, tax refunds, and disbursement of loans, etc 2. Overview of digital governance What is digitalgovernance? “Digital governance or e-Governance can be defined as the use of information and communication technology by the government to provide the quality information and services to citizens, businesses, voluntary organizations, and other government agencies in an efficient, cost-effective, and convenient manner and to bring transparency, accountability in government functioning to strengthen democracy.” “e-government is defined as utilizing the Internet and the world-wide-web for delivering government information and services to citizens.” • Digital governance is more than streamlining processes and improving services. It is about transforming governments and renovating the way in which citizens participate in democracy. • There are no rigid models for digital governance. Developing countries are experimenting on their own to find an approach that will work for them and will best serve their needs. Digital governance includes services and processes in any interaction between: • Government-to-government (G2G), • Government-to-person (G2P), • Government-to-business (G2B)
- 7. Digital governance 7 The main objectives of digital governance are: Source: Fiscal Monitor – Capitalising on Good Times; International Monetary Fund; 2018 E-Governance and Digital India – Empowering Indian Citizens Through Technology; Deloitte; 2015 Increase efficiency Enhance transparency Lower cost to the government Implementing digital governance has several advantages that make the administration and the government inclusive, efficient, and accountable Advantages and impact of digital governance • Improved identification and authentication of citizens’ identity. Accurate targeting through proper identification for social protection schemes reduces leakages and therefore lowers cost to the government and increases take up, which in turn ensuresinclusivity. • More robust data and opportunities for better analysis. This will lead to to help form or amend policies for the future. • Better tracking of the entire service or government workflow. This will make governments and individual departments more accountable since digital information is made available, increasing visibility for all stakeholders.
- 8. Digital governance 8 Estonia is at the forefront of digital governance reforms Estonia’s digital society A number of e-solutions led to Estonia becoming one of the world’s most developed digital societies. The data infrastructure X-Road provides interoperability fordifferent organizations and information systems. • Advanced talent in R&D in Information and Communication Technologies (ICT) • Geographical proximity to Scandinavia, the fastest growing telecommunications sector • Low and concentrated population, reducing infrastructure costs and ensuring quick political support 99% 52,000 of state services organizations as are online indirect usersof X-Roadservices 844* years of working time saved every year Estonia’s e-government infrastructure rests on two main pillars Digital state State-issued compulsory national ID for every Estonian.Functionally, it provides digital access to all e-services. Digital citizen 98% of 1.3M Estonianshave ID-card 700+M digital signatures saving 5 days per year 67% use the IDcard regularly A strategic direction by the government, the success of Estonia’s digital transformation is due to three keyfactors. Contextual factors Governance principles • Information architecture and departmental ICT strategies were decentralized. • ICT investment decisions, formulation of crucial design principles was done at the center. • Adeliberate focus on public-private networks. Design principles • Priority to build systems from scratch rather than buying from ICT vendors • Focus is on the secure interoperability of data systems rather than unified databases Source: e-Estonia Website |*Website/Dashboardaccessed on22/04/20 Estonia’s digital transformation: Mission mystique and the hiding hand; UCL Institute for Innovation and Public Purpose; 2018 e-cabinet meeting, e-tax board, e-id and digital road administration’s e-portal, NIIS X-road Government m-parking signature cyber security e-prescription e-residency consortium AIstrategy 2000 2002 2007 2010 2014 2017 2019 2001 x-road 2005 i-voting 2008 blockchain technology, e-health 2013 public services green paper 2015 world’s firstdata embassy 2018 seamless service roadmap
- 9. Digital governance 9 Of all transactions with the government in Estonia, 99% are digital, including G2P interactions The process to receive Estonia’s social insurances has been made seamless for its citizens through the digital infrastructure that has been developed over the years. Source: Ministry of Social Affairs, Estonia (Accessed on 2/24/19) The payment is organized by the Estonian Social Insurance Board. Filing forpensions • At the customer service of the Social Insurance Board • By email (digitallysigned) • By regular mail Documents required: Personal identification document (e-EstoniaID) • The South African Revenue Service (SARS) implemented various initiatives to improve compliance risk management during 2001– 06. Since 2006, SARS automated administrative processes to include electronic tax submissions, declarations, andpayments. The impact of these initiatives has been improved revenue growth, improved service levels, and reducedcosts. • In 2012, the South African government, through the South African Social Security Agency (SASSA) began to provide social assistance in the form of monthly payments to around 16.9 million beneficiaries. These beneficiaries include qualifying children, pensioners, war veterans, and people with disabilities. The previous system of giving cash was cumbersome and expensive. It is now an electronic, biometric payment system. The payment is organized by the Estonian Health Insurance Fund. • The insured person does not need to take the Health Insurance Fund card to attend a doctor’s clinic in Estonia. An identification document with photo (e-Estonia ID) is sufficient. • In 2010 the digital prescription (e-prescribing) was launched in Estonia. Just 15 months after the launch, 84% of prescriptions are being issued digitally. Morethan 95% of pharmacies are ready to processe-prescriptions. Pension Medical insurance Globally, there are several examples of effective digital governance South Africa Kenya • The Kenya Revenue Authority capitalized on the digital payments revolution and financial inclusion brought by M-Pesa. It developed an iTax serviceas well as a mobile phone application that facilitates taxpayment and taxpayers’ access to tax information (the M-Service platform). Authorities claim that since face-to-face interaction between taxpayers and officials has reduced, there is less opportunity for bribery and fraud. • The Cash for Assets (CFA) program in Kenya, a conditional cash transfer scheme jointly run by the World Food Program (WFP) and the Kenyan government adopted a “test-learn- iterate” philosophy. One such change was developing a custom in-house MISfor CFA to manage, clean, and maintain the digital database.
- 10. Digital governance 10 • Foundational ID, Aadhaar, for all residents ofIndia • Biometric details collected, and identitynumbers issued Several forces played an important role in the transformation of the digital governance landscape in India over the years 3. The journey of digital governance in India Digital governance Financial Inclusion Access to banksand banking services were improved through Pradhan Mantri Jan Dhan Yojanaaccounts. Identity Telecom Development of the industry catalyzedby the growth in mobile users in India Information and Communication Technologies (ICT) Major systematic changes in the ICT infrastructure over severalyears ensuring last-mile connectivity across the country
- 11. Digital governance 11 The ICT infrastructure built over the past few decades formed the base for the “JAM trinity” to accelerate digital governancein India Pradhan Mantri Jan Dhan Yojana (PMJDY) As of March, 2018, the government’s financial inclusion mission to increase access to bank accounts has covered 80% of the Indian population. This has ensured that most beneficiaries of government services have a working bank account. Aadhaar Following a nationwide rollout in 2011, the Aadhaar program has registered nearly 1.25 billion, as on April 2020 individuals on its biometric database. It achieved almost universal coverage in just over five years. This is a saturation level of 90.2% of the Indian population as of January,2019. J A Mobile connectivity As of August 2018, 64% of adults in India own a phone, and 24% of adults own asmartphone.M
- 12. Digital governance 12 Major developments in the ICT and telecom sectors in India formed the enabling environment for digital governance *Internet service providers: An Internet service provider (ISP) is an organization that provides services that help users to access, use, or participate in the Internet. **Common Service Centre (CSC) is a strategic cornerstone to manage e-governance programs around agriculture services The journey began in the 1970s, when the government developed applications in-housefor various departments 20022003 20082006 Computer applications were developed for departments like defense, economic monitoring, census, andelections. All District Headquarters were connected by NIC. National Informatics Centre(NIC)was formed. 1976 The Department of telecommunications passed theNational Telecom Policy. Telecom Regulatory Authority ofIndia (TRAI) was setup. 1997 1994 Licenses for cellularmobiles for four metros issued 2000 Bharat SancharNigam limited(BSNL) established Entry of the private sector in National Long Distance Services National Institute forSmart Government (NISG) set up. National Portal 2005 of India was launched. The Government approved the Nationale-Governance Plan (NeGP) National ServiceDelivery Gateway (NSDG) established. The portal was set up as a single-window unifiedinterface for over 5,000 websites, thereby reducing inconvenience for citizens considerably. NSDG provides seamless interoperability and exchange of data across governmentdepartments. The plan included major infrastructure development efforts like • Common Service Centres**. CSC e-Governance Service India Ltd set up later. • Mission Mode Projects (MMPs) National Internet Exchange of India (NIXI) created. Broadband Policy,200M announced 2004 TRAI announces rules and regulations to be followed for mobile number portability. 2009 April 2010:Launch of Aadhaar NISG created to help the Government of India and state governments realize the national e-Governance vision. NIXI set up for the peering of Internet Service Providers* (ISPs) to route the domestic traffic within thecountry. Various sectors contributed to increase connectivity across India
- 13. Digital governance 13 Further, this led to innovations in G2P interactions. 2011 2012 2015 2013 and postal services. 2012 The National Policyon Information Technology, 2012 wasapproved. Mobile Sevato provide government services to the people through mobile phones and tablets launched. The policy aims to leverage ICT to address the nation’s developmental challenges. Bharat Broadband Network Limitedwas set up to connect all local governments (Gram Panchayats) withhigh-speed internet (BharatNet). The Digital India program was formally launched by the PrimeMinister.
- 14. Digital governance Digital India initiative, accessed on April 2020 14 Multiple digital initiatives form a push by the government to transform India into a digitally empowered society that focuses on three areas 4. Digital initiatives in India Infrastructure asa utility to every citizen Governance and services on demand Digital empowerment of citizens Ensure connectivity Integration across governments and jurisdictions Provide universal digital literacy These initiatives have been packaged under the “Digital India” program, promoted by the Ministry of Electronics &Information Technology. Unique identityfor citizens to availservices Device andplatform- agnostic services Access to digitalresources Continuous power supply to theentire rural India e-Governance initiative for the ruralsector Promote sustainable and inclusivecities that provide core infrastructure and give a decent quality of life to its citizens Access toCustomer Service Centers Payment transactions made simple using Unified Payments Interface (UPI). Comprehensive financial inclusion of all the households inthe country
- 15. Digital governance 15 The National e-Governance Plan (NeGP) of India is a major part of India’s digital initiatives Features of the major initiatives within the NeGP that contribute to the overall vision: CSC 2.0 BharatNet • Establishment of a self-sustaining network of 250,000 CSCs at the level of the village or Gram Panchayat (GP) • Localized help desk supportand standardization ofservices • Bharat Broadband Network (BBNL)established to provide broadband connectivity to the 250,000 villages and GPs across India. • As of 22nd January 2020, 125,886 GPsare service-ready. Infrastructure as a utility to every citizen Governance and services on demand Digital empowerment of the citizen E-District UMAAGapp • Enhances the efficiencies of the departments at the district* level, where most G2P interactions take place • Provides centralized software applications for a range of citizen services and training for staff • Mobile application to availgovernment services (central, state, and local) • Integrated with customer-centric serviceslike Aadhaar and DigiLocker40 • Adedicated customer supportsystem MyGov Skill India Portal to share thoughts andviews on • • Public discussions with the Prime Minister • Issues of nationalinterest • A place to participate in polls, creative projects, and publish blogs Under the Pradhan MantriKaushal Vikas Yojana (PMKVY)—the National Skill Development Mission—3.3 million candidates have been trained and 2.7 million of them certified for jobs across various sectors as of April 2020. Source: Digital IndiaWebsite *District: type of administrative division that is managed by local governments
- 16. Digital governance 16 The National e-Governance Plan is implemented through a three-tier system Common Service Centres: Front-end delivery points • Offer web-enabled e-Govern ance services in rural areas, including application forms, certificates, and utility payments, such as electricity, telephone, and water bills • As on April 2020, 361,000 CSCs are functional in India, including CSCs in GPs • 52central government services, state-specific services, as well as banking transactions are available. Government infrastructure layer • Different interconnected networks form this layer: • State Wide AreaNetworks • State DataCentres • National Service Delivery Gateway along with State Service Delivery Gateway Mission mode projects • 31 Missionmode projects for center (11), state (13) and integrated (7) • MMPsare individual projects within the National e-Governance Plan (NeGP) that focus on one aspect of digital governance in India • The main aim of MMPsis to transform high priority citizen services from their current manual delivery toe-delivery I II III
- 17. Digital governance 17 The National e-Governance Division (NeGD) manages the NeGP program The key activities of NeGD as the program manager are as follows: Strategic planning • Providing strategic directionto Digital India andNeGP. • Framing policies and implementation strategies Support to central line ministries: • Reaching out the central line ministries or departments and extending support toimplement their e-Governance projects Business development • Development of “go-to”market strategy forNeGD. • Identification, perusal, and delivery of advisory or any other eGovernance-related services to different organizations A dedicated team is also involved in e-Governance Research &Development. They proactively conduct research about e-Governance models and develop appropriate solutions useable in India, study e-Governance initiatives from across the country and the world, and compile best practices in the sphere of e-Governance.
- 18. Digital governance 18 Several factors have contributed to the success of digital governance initiatives in India Recognized reduction of costs and time • Time is saved through digitizing and straight-through processes, which do not require physical presence for manyservices • Citizens, therefore, incur a marginal cost of transactions due to reduced cost on transportation and switch to digital modes Development of keypillars • Digital ID, financial inclusion, and mobile coverage and infrastructure at the state and district level were all developed in parallel and led to the successful implementation of digital governanceinitiatives. Ease of doing business through interoperable platforms • The conscious effort of the government to use multiple platforms ensures all citizens get access to their most preferred mode of interaction Public-private partnerships • Partnering with entities andincentivizing them achieved • a wider distribution network that created more convenience for customers • ensured lower expenditure for thegovernment 5. Success factors and challenges 01 03 04 02
- 19. Digital governance 19 Skill development • Focus on skill development to ensure that citizens not only adopt new technologies but also contribute to building the ecosystem National vision, decentralized ownership • A centralized plan with implementation done at a decentralized level • Individual projects are owned and spearheaded by various concerned line ministries and departments 05 06 The steady increase in digital transactions suggest that people will adopt technology when it is made available There are a total of 3,836 integrated e-Services that the Government of India offers. Top 5 standard services as on April, 2020 • Utility services and billpayment • Rural Development • Transport • Public distributionsystem • State specific services Top 5 central MMPsason April, 2020 • e-Courts • Agriculture • Land Records • Public distributionsystem • Treasuries Number of e-Transactions in India across various e-services offered by the government A majority of e-transactions, however, are concentrated in states with higher literacy rates, such as Andhra Pradesh, Gujarat, Telangana, Uttar Pradesh, and Kerala. The Government of India claims to have saved USD 20.2 billion (INR 1417 billion)as on March 2019 since the implementation of Direct Benefit Transfer schemes. Ministry of Electronics &Information Technology Dashboard (assessed onApril 2020) No. of e-transactions (in billion) 2019-20 158.46 2018-19 103.57 2017-18 61.09 2016-17 25.08 2015-16 12.73 2014-15 4.59
- 20. Digital governance 20 While digital governance offers multiple potential benefits, it can also create challenges that need to be addressed Privacy and cybersecurity risks—as vulnerabledigital systems could disrupt government functions and jeopardizecitizens’ information. Challenges Measures to mitigate • Regulatory and policy interventions and an implementing body to ensure security • In India, a committee headed by retired Justice B.N. Srikrishna delivered a report and a draft bill for data protection amid the Aadhaar privacy concerns • The General Data Protection Regulation is designed toharmonize data privacy laws acrossEurope Digital exclusion*—in 2017 only 50% of the world population were internet users, which leaves a large portion of the citizenswithout access to theservices. • Public investment in areas such as infrastructure and digital literacy. The World Economic Forums’ Internet for All highlights business models that can be used to accelerate internet access and adoption. • Strategies like leveraging agent networks have shown success in emerging economies. The availability of skilled manpower for the developmentand effective adoption of new technologies—around 93% of the labor force in India are unskilled. • Creating a system to train and promote the early adoption of technology. • In early 2000s Estonia, Look@World foundation, a public private partnership supported by telecom and banking players, raised digital awareness and popularized the use of the internet and ICT in education, science, and culture. Adults and children were taught computer programming. The willingness of citizens to adapt to newer systems and practices • Moreeducation and literacy about the benefits of a digital system through programs like Pradhan Mantri Gramin Digital Saksharta Abhiyan. • Private players like Google are bridging the online gender gap in India with programs like Internet Saathi, providing both education and access to the internet for rural women. The success of the program has even resulted in digital based economic opportunities. Source: Fiscal Monitor – Capitalising on Good Times; International Monetary Fund; 2018 E-Governance and Digital India – Empowering Indian Citizens Through Technology; Deloitte; 2015 *Digital Exclusion is the lack of access to, and use of, ICT resources.
- 21. Digital governance 21 Objectives Impact oroutcome* 64% of householdshave Financial conducted at least onefinancial inclusion transaction since the launchof the scheme Gender empowerment In 66% of the households, the designated female headof the household (mukhiya) got her first bank account throughthe scheme Effective Morethan 60% ofrespondents delivery of felt that the newtechnology- government enabled delivery systemwas services better 6. Examples of digital governance in different Indian states Bhamashah has been accelerating digital governance across Rajasthan and beneficiaries have positive perceptions of service delivery Arecent report* published by MSC and CDG on the household perception of e-Governance in the state yielded the followingobservations: 1.6mn Households are enrolled Bhamashah isthe first household- level identity system inIndia. Features of Bhamashah • Started in 2014, the program seeks to create a digital platform for delivery of public services for all residents of the state who receive benefits financed by the stategovernment. • The Bhamashah family identification number has been made mandatory for beneficiaries to avail their entitlements from over150 schemes • Acentralized data warehouse called the Bhamashah Resident Data Hub (BRDH) maintains the family-level information, determines eligibility for public benefits, and keeps a digital record of delivery of entitlements Source: Bhamashah Yogana website; Accessed 12/17/18 *Digital Governance in Developing Countries: Beneficiary Experience and Perceptions of System Reform in Rajasthan, India; Center for Global Development; 2018 527 mn Transactions routed throughBhamashah
- 22. Digital governance 22 Aproactive local government has made Andra Pradesh an innovation hub for digital governance reforms with the launch of e-Pragati e-Pragati is a new paradigm in governance based on a whole-of-government* framework, transcending departmental boundaries. The main details of e-Pragati are: As the largest e-Governance program approved by any state, the total outlay for the implementation of e-Pragati is USD 341 Million (INR 23.98 billion), out of which Government capex would be USD 217 Million (INR 15.28 billion). The e-Pragati platform offers several advantages to the citizens and departments of the Government of Andhra Pradesh *Whole-of-government: Joint activities performed by diverse Ministries accessed in April 2019, Public Administrations and Public Agencies in order to provide a common solution Source: e-pragati Website, Andhra Pradesh accessed in April2019 1 USD = INR70 The Government ofAndra Pradesh (GoAP)identified • 33departments, • 315 agencies and • around 745services. These services have been grouped into 72 projects (45 greenfield and27 brownfield) At the heart of e-Pragati lies the e-Pragati Core Platform, which provides: • program levelservices, • citizen related services delivered by each department, • services internal to thedepartment • application program interface for applications external tothe platform. Citizen-centric service delivery with a citizen-life-cycle approach that transcends governmental services through interoperability, service discovery, andinnovation Accessibility through a uniform user interface, consolidated services from different departments, and multiple access channels The e-Pragati Core Platform enables line departments of GoAP to deploy highly automated applications that can meet evolving policy needs and real-time governance requirements. Progress towards eliminating physical touch-points in G2P services through simplification, standardization, and automation of services Development of common applications that are agnostic of departments and relate to horizontal functions of the GoAP, like performance management, productivity tools, workflow management, and core data management The e-Pragati Core Platform is the technological foundation for the digital transformation of G2P, G2B, G2G services. It enables departments or organizations to streamline operations, deliver consistent service, and modernize operations without interruption. 01 03 04 02 05 06
- 23. Digital governance 23 7. The road ahead and future plans The road ahead shows governments using different channels, technology, and more inclusive systems to operate Single-window clearance system Asingle-point interface and a time-bound clearance system for information, registration, tracking for clearances or approvalsfor entrepreneurs. Example: Rajasthan State Portal Technology upgrades New initiatives likee-Pramaan and G-I cloud, which use cloud computing for e-Governance projects Citizens’ engagement Better citizen engagement through portals andoutreach efforts Use of socialmedia Departments like Traffic Police, Disaster Management usesocial media to connect directly with citizens Source: Fiscal Monitor – Capitalising on Good Times; International Monetary Fund; 2018
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