Technology Leapfrog – Government Transparency

Technology Leapfrog – Government Transparency

FreeBalance International Steering Committee

January 18, 2011

Doug Hadden

VP Products

FreeBalance International Steering Committee

January 18, 2011

Doug Hadden

VP Products

Agenda

• Effects of Globalization• Emerging Markets Growth• Theory of Technology Leapfrog• Government as “Platform”• Inhibitors• 4 E-Government

Transparency PFM Leapfrog Opportunities

• Challenges

Globalization

• Digital technology• Efficient movement of goods• Competition for markets, businesses• Ever increasing information

availability• Driving reform

Citizens are Watching You

• 21st Century – don’t worry about the *Press• Technology in the hands of citizens• Millions of untrained auditors• Mobile phones game-changer

* Lesson learned in Iran, China, Egypt, Tunisia

Globalization Extended

Governments Governments

Exte

rnal

Forc

es

Exte

rnal

Forc

es

Inte

rnal

Force

sIn

tern

al

Force

s

GlobalizationGlobalization

1. GoodGovernance

1. GoodGovernance

2. ICTModernization

2. ICTModernization

Improve Development Outcomes• Donor Funding• Benchmarks and Indicators• Stability and Sustainability

Increasing Citizen Expectations• Transparency• Improve Citizen Services• Health, education, infrastructure, prosperity

Global Competition• Business Friendliness• Corruption Index• Infrastructure

Emerging Markets – High GrowthContribution to World Growth by Region

0

10

20

30

40

50

60

70

80

USA DevelopedEurope

DevelopedAsia

EmergingEconomies

Other

2007

2008

Source: Mirae Asset

• Canada• United States

Emerging Markets – High Growth GDP Growth, % Share of World Total*

0

10

20

30

40

50

60

70

80

90

1984 1989 1994 1999 2004 2009

DevelopedEconomies

EmergingEconomies

* At purchasing power paritySources: IMF, The Economist

Emerging Markets

responsible for most of the

global growth

Emerging Markets – High GrowthShare of Global GDP*

0

10

20

30

40

50

60

70

1913 1950 2005 2025

EmergingEconomiesDevelopedEconomies

* At purchasing power paritySources: IMF, The Economist

Emerging Markets

responsible for most of the

global growth

Emerging Markets – High Growth “New Normal”

Theory of Leapfrog

• Legacy technology entrenched in developed countries

• Bi-pass stages in development• Focus on what is

important• Learn from other countries

Example: Thailand

GDP Per Capita (PPP, logs)

UG

AN

DA

PA

PU

A N

EW

GU

INE

A

AU

ST

RA

LIA

-3

-2

-1

0

1

2

3

204 Countries

Norm

aliz

ed C

ontr

ol of

Corr

upti

on Index

HIGH

LOW

Benefits of TransparencyControl of Corruption and GDP*

* At purchasing power parity

Source: The World Bank

Higher the control of corruption = higher the country GDP Per Capita

GDP Per Capita (PPP, logs)

UG

AN

DA

PAPU

A N

EW

GU

INEA A

US

TR

ALI

A

-3

-2

-1

0

1

2

3

207 Countries

Norm

aliz

ed

Voic

e a

nd

Acc

ounta

bili

ty Ind

ex

.

HIGH

LOW

Benefits of Transparency Voice and Accountability and GDP*

* At purchasing power parity

Source: The World Bank

Higher the government accountability = higher the

country GDP Per Capita

GDP Per Capita (PPP, logs)

UG

AN

DA

PA

PU

A N

EW

GU

INEA

AU

ST

RA

LIA

-3

-2

-1

0

1

2

3

209 Countries

Norm

aliz

ed G

overn

ment

Eff

ect

iveness

Index

HIGH

LOW

Benefits of Transparency Government Effectiveness and GDP*

* At purchasing power parity

Source: The World Bank

Higher the government effectiveness = higher the

country GDP Per Capita

Government as Platform

• Data can lead to economic development

• Infrastructure• GPS, Internet• How?

– Resources information– Demographics

Why would more developed countries get leapfrogged?

• Business Pressure– Telecommunications and other monopolies

• Budget Pressure– Affect revenue from selling information

• Sovereignty Pressure– Reluctance to give up national standards

• Best Practice Pressure– Focus on complexity

• Economic Pressure– Less pressure from globalization

E-Government PFM Transparency Leapfrog Opportunities

Budget Transparency

Budget presentation in legislature

Budget speech in official gazette

Budget speech pre-released to press

Budget book printed

PDF on-line

Audited books pdf

Budget Transparency con’t

Audit findings PDF

Quarterly audited reports PDF

Interactive budget execution data

Participatory budgeting

Budget data in XBRL

….

beta version of Government of Timor-Leste transparency portal

subscribe

drill down

articles

Expenditures, Transparency Portal

10 years of data

drill through the chart of accounts

Expenditures, Transparency Portal

export to xls, doc, pdf, html, xml

track commitments

FreeBalance Survey

E-Government PFM Leapfrog Opportunities

• Support for international standards– GFS/COFOG/IPSAS– XBRL & IATI

• M-Government financial services

• Freedom of Information

Models of Government Data

Publish Model• You know what it is for and how it will be used• Document oriented• Vetted, edited, approved• Old – previously owned information• No access to underlying data

Social Media• You don’t know how it will be used• Machine readable• Community vetted• Useful and current• Full access to underlying data *

Out of Network

Out of Network vs. In Network

Challenges

• Infrastructure• Donor coordination• “Return on Investment”• Collaborative culture

Thank You