January 17, 2007January 17, 2007 11

Anti-Corruption @ Your FingertipsAnti-Corruption @ Your Fingertips

Leveraging E-Government for SuccessfulLeveraging E-Government for SuccessfulAnti-Corruption ProgramsAnti-Corruption Programs

I1-200, January 17, 2007I1-200, January 17, 2007

Knut LeipoldKnut Leipold

OPCPROPCPR

January 17, 2007January 17, 2007 22

ObjectiveObjective

Opportunities of using e-Government to fight Opportunities of using e-Government to fight fraud & corruptionfraud & corruption

Challenges of using e-GovernmentChallenges of using e-Governmentto fight fraud & corruptionto fight fraud & corruption

Lessons Learned & Role of the BankLessons Learned & Role of the Bank

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How can E-Government help?How can E-Government help?

• Improved management of public finances: Improved management of public finances: Treasury, IFMS, publishing financial dataTreasury, IFMS, publishing financial data

• Greater transparency and less corruption:Greater transparency and less corruption: Publishing information, publishing decision outcome, making Publishing information, publishing decision outcome, making

data accessible, allowing on line tracking of applications, data accessible, allowing on line tracking of applications, process reform and automation to minimize discretion and in-process reform and automation to minimize discretion and in-person contactsperson contacts

• Private Sector Development: Private Sector Development: Improve interface with business Improve interface with business registration, licenses, land, customs and tax agenciesregistration, licenses, land, customs and tax agencies

• Convenient and affordable services to all citizens: Convenient and affordable services to all citizens: one stop one stop service centers for online delivery, rural tele-centers; land title, service centers for online delivery, rural tele-centers; land title, online municipal servicesonline municipal services

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The E-Governance TriadThe E-Governance Triad

CitizensCitizens

GovernmentGovernment

BusinessBusiness

Government to Citizen:Government to Citizen: G2C: Citizens’ access to G2C: Citizens’ access to information and servicesinformation and services

GovernmentGovernment

Government to Business: Government to Business: G2B: E-interactions between govt G2B: E-interactions between govt and private sector – reducing red and private sector – reducing red

tape, simplifying regulations & tape, simplifying regulations & improving competitiveness & improving competitiveness &

investmentinvestment

Government to Government: Government to Government: G2G facilitates sharing of G2G facilitates sharing of databases, resources and databases, resources and

capabilities – enhancing efficiency capabilities – enhancing efficiency and improving governanceand improving governance

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Examples of Fighting CorruptionExamples of Fighting Corruptionthrough E-Governmentthrough E-Government

• Electronic customs clearance system requires only one simple electronic clearance document as compared to the previously 10 different paper documents to be processed in 90 steps and requiring 40 signatures from a bureaucratic and corrupt customs agency

• The eVisa system in Bahrain is a transparent and efficient online visa application system eliminating the potential of bribes for preferred visa processing

• Online issuance of land titles in Karnataka, India, reduced bribes ($15 million)

• The Zhongguancun e-Park in China allows for online business registration with transparent approval processing. Before, companies had to contact in person three times each of 8 different government agencies

• The Hyderabad Water Supply & Sewerage Board in India introduced a computer based Single Window Cell for processing new applications in one single place rather than having to visit 14 different officials who required “speed payments”

• Transparent computerized counseling for teacher transfer in Karnataka, India, eliminated the opportunity for bribery and nepotism of the previous manual system

• As part of Bulgaria’s e-Health strategy, the country introduces an integrated health information system to address the issue of petty corruption in the health sector and to

decrease the possibilities for unregulated payments through increased transparency

• Korea‘s OPEN online tracking system in Seoul has lowered corruption

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OOnlinenline PProceduresrocedures ENENhancement forhancement for Civil Applications in Seoul, KoreaCivil Applications in Seoul, Korea

• Easy access for citizensEasy access for citizens

• Transparency and monitoring of Transparency and monitoring of administrative proceduresadministrative procedures

• Less in-person contactsLess in-person contacts

• Reduced corruptionReduced corruption

• Credibility in governmentCredibility in government

• Political leadershipPolitical leadership

• Re-engineering of administrationRe-engineering of administration

• Change managementChange management

• Some USD 440,000Some USD 440,000

• International cooperationInternational cooperation

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Why using ICT in Public Procurement?Why using ICT in Public Procurement?

• Online trade in 2006 estimated at USD 12.8 trillion*Online trade in 2006 estimated at USD 12.8 trillion* • Government single largest purchaser of theGovernment single largest purchaser of the national economy using taxpayers’ money upnational economy using taxpayers’ money up to a total procurement volume of often 15-20%to a total procurement volume of often 15-20% of the GDPof the GDP

• Large opportunities for bribes, kickbacks, and other payoffs, Large opportunities for bribes, kickbacks, and other payoffs, where corruption is estimated to accountwhere corruption is estimated to account

for up to 30% of government procurementfor up to 30% of government procurement

• Users of existing e-GP systems reportUsers of existing e-GP systems report improved transparency and less opportunityimproved transparency and less opportunity for corruption for corruption

* Forrester Research, 2006* Forrester Research, 2006

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Fighting Fraud & Corruption throughFighting Fraud & Corruption throughE-Government ProcurementE-Government Procurement

• DetectionDetection• Availability of information (audit trails)Availability of information (audit trails)• Transparency of information (contract awards, watchdog)Transparency of information (contract awards, watchdog)• Cross-checking of databasesCross-checking of databases

• PreventionPrevention• No in-person contacts (BD download, bid upload)No in-person contacts (BD download, bid upload)• Equal access to information (notice, bidding documents)Equal access to information (notice, bidding documents)• Compliance with policyCompliance with policy

• ReportingReporting• Online complaintsOnline complaints• Corruption hotlineCorruption hotline

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...and if it doesn’t work?...and if it doesn’t work?

• ICT can jeopardize the principle of non-discrimination ICT can jeopardize the principle of non-discrimination and open & fair competitionand open & fair competition

• limited accessibility/connectivitylimited accessibility/connectivity• authentication proceduresauthentication procedures

• ICT offers opportunity for fraud & corruptionICT offers opportunity for fraud & corruption• integrity & confidentialityintegrity & confidentiality• e-corruptione-corruption

• Inappropriate application of ICTInappropriate application of ICT• bad practicesbad practices

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Implementation ChallengesImplementation Challenges

• Lack of political leadership, vision and strategyLack of political leadership, vision and strategy

• Inappropriate definition of project goals and scopeInappropriate definition of project goals and scope

• Not implemented in the context of a wider reform programNot implemented in the context of a wider reform program

• Lack of enabling policies, legislationLack of enabling policies, legislation

• Missing awareness and user activationMissing awareness and user activation

• Poor costing, lack of resourcesPoor costing, lack of resources

• Inadequate ICT infrastructure and standardsInadequate ICT infrastructure and standards

• ICT centric automation without process reengineeringICT centric automation without process reengineering

• Short tenure of implementers: hurried implementationShort tenure of implementers: hurried implementation

• Management of change-resistance from vested interestsManagement of change-resistance from vested interests

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Lessons LearnedLessons Learned

The “E” can reduce the opportunity of fraudThe “E” can reduce the opportunity of fraudand corruption if driven by political will.and corruption if driven by political will.

The “E” needs to be implemented appropriately. The “E” needs to be implemented appropriately.

A high level of transparency can be achieved at A high level of transparency can be achieved at low cost.low cost.

The “E” does not help everywhere.The “E” does not help everywhere.

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Role of the World Bank in HelpingRole of the World Bank in HelpingCountries to Adopt e-G(P)Countries to Adopt e-G(P)

Promote e-Government through knowledge sharing Promote e-Government through knowledge sharing and learning events, technical assistance, and and learning events, technical assistance, and increased lending for ICT/E-Development projects or increased lending for ICT/E-Development projects or project componentsproject components

Leverage synergies from existing and new ICT/E-Leverage synergies from existing and new ICT/E-skills within the Bank and allocate appropriate skills within the Bank and allocate appropriate resourcesresources

Set a good exampleSet a good example

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Thank You!Thank You!

Knut Leipold, OPCPRKnut Leipold, OPCPRkleipold@worldbank.orgkleipold@worldbank.org

202-458-4723202-458-4723

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Back-Up SlidesBack-Up Slides

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Department A

Department B

Department C

Department D

Department E

Department F

Department ...

Citizen 1

Citizen 2

Citizen 3

Citizen 4

Citizen 5

Citizen 6

Citizen ...

In-Person ContactsIn-Person Contacts

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Online InterfaceOnline Interface

www...

Department A

Department B

Department C

Department D

Department E

Department F

Department ...

Citizen 1

Citizen 2

Citizen 3

Citizen 4

Citizen 5

Citizen 6

Citizen ...

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Examples (I)Examples (I)Region Country Initiative

AFR WAEMU Under a West African Economic and Monetary Union Project, a regional e-GP portal will be established for the publication of procurement information including notices, contract award results, etc.

Cameroon Under the CPAR action plan, an online public procurement information and management system will be implemented.

Cap Verde During a recent mission of the Bank together with the Millennium Challenge Corporation, the Bank learned about the MCC project of implementing an e-GP portal (disclosure of information, e-Tendering, and performance measuring) and suggested to pilot the OECD/DAC methodology for monitoring the efficiency of public procurement.

Ghana As part of the e-Ghana project, an e-GP portal for the disclosure of procurement information is planned to be implemented.

Rwanda As part of the e-Rwanda project, an e-GP portal for the disclosure of procurement information is planned to be implemented.

EAP Cambodia The Bank has provided capacity-building initiatives including e-GP and it is planned to develop an e-GP information system under an IDF Grant.

China The Bank has provided capacity-building initiatives including an international conference in April 2006. Under an IDF Grant, the Bank provides assistance in assessing the current e-GP environment, developing an implementation strategy, and introduce a national e-GP system.

Indonesia The Bank has provided TA for the analysis of the current e-GP situation and the development of an e-GP implementation strategy. Based on that strategy, Indonesia is working on the design and implementation of a national e-GP system. In addition, the Bank has provided TA for the development of a pilot e-GP system with the Ministry of Telecommunication and Informatics. The Bank has also assessed the e-GP system of the Ministry of Public Works and suggested some modifications in order to approve the system for the use under Bank-funded operations.

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Examples (II)Examples (II)

Vietnam An e-GP information portal has been developed under an IDF Grant. The ICT Development Project includes the implementation of additional e-GP components.

ECA All The Bank has conducted a survey in 9 countries in order to identify the current status in terms of e-GP design and implementation. Based on that survey, an e-GP strategy has been developed and is being discussed in ECA on how the Bank can more actively provide assistance in e-GP adoption in the Region.

Armenia Under an IDF Grant, the Bank has helped to develop an e-GP implementation strategy, which was adopted by the Parliament. Under the Public Sector Modernization Project, one component will help to design and implement e-GP in line with the approved strategy. A capacity-building e-GP workshop was held in 2005.

Azerbaijan Under an IDF Grant, it is planned to develop an e-GP implementation strategy and to introduce and pilot e-Tendering. A capacity-building workshop was held in June 2006.

Croatia As part of the CPAR, the Bank has provided an e-GP report including the analysis of the current e-GP environment and recommendations of next steps in terms of e-GP program adoption.

Georgia Under an IDF Grant, it is planned to develop an e-GP implementation strategy and to introduce and pilot e-Tendering. A capacity-building workshop was held in July 2006.

Kazakhstan As part of the CPAR, the Bank has provided an e-GP report including the analysis of the current e-GP environment and recommendations of next steps in terms of e-GP program adoption. In addition, the Bank (WBI) in partnership with Korea started with an e-GP capacity-building program.

Romania As part of the CPAR, the Bank has provided an e-GP report including the analysis of the current e-GP environment and recommendations of next steps. Romania has been a partner of the Bank in sharing its e-GP experience and lessons learned at several e-GP capacity-building events.

Russia As part of the CPAR, the Bank has provided an e-GP report including the analysis of the current e-GP environment and recommendations of next steps in terms of e-GP program adoption.

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Examples (III)Examples (III)

Ukraine As part of the CPAR, the Bank has provided an e-GP report including the analysis of the current e-GP environment and recommendations of next steps in terms of e-GP program adoption. As part of an e-Development project, it is planned to develop a national e-GP system.

LCR All In general, the Bank has been engaged in a lot of LCR countries more or less in the discussion on how to successfully design and implement e-GP. These initiatives are 100% harmonized with the IADB.

Argentina An e-GP system was designed and implemented under a Public Sector Modernization Project

Brazil The Bank has accepted Comprasnet (e-Reverse Auctions) for the use under Bank-funded operations as alternative to shopping. In addition, the Bank cooperates with the central and local governments in designing and implementing e-GP systems. Brazil has been a partner of the Bank in sharing its e-GP experience and lessons learned at several e-GP capacity-building events.

Chile The Bank has accepted ChileCompra (e-tendering, e-purchasing) for the use under Bank-funded NCB and prepares the piloting of ChileCompra under ICB. As part of the CPAR, the Bank has provided an e-GP report including the analysis and assessment of the current e-GP system. Chile has been a partner of the Bank in sharing its e-GP experience and lessons learned at several e-GP capacity-building events.

El Salvador The Bank has been involved in capacity-building e-GP initiatives.

Guatemala The Bank has been involved in capacity-building e-GP initiatives.

Mexico The Bank has approved Compranet (e-Tendering) for the use under Bank-funded NCB and ICB. Mexico has been a partner of the Bank in sharing its e-GP experience and lessons learned at several e-GP capacity-building events.

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Examples (IV)Examples (IV)

MNA Algeria Under an IDF Grant, it is planned to develop a feasibility study and a roadmap for the implementation of a national e-GP system

Morocco Under an IDF Grant, it is planned to develop a national e-GP information system.

Tunisia Under an IDF Grant, it is planned to develop a national e-GP information system.

SAR All A strategy is under development, how to address the design and implementation in the Region.

Afghanistan An e-GP component is planned under a Public Administration Capacity Building Project.

Bangladesh The second Public Procurement Reform Project will include the development of an e-GP system. The Bank has provided assistance in assessing the current e-GP environment and developing an e-GP implementation strategy.

Bhutan Under a Japanese TF, it is planned to assess the current e-GP environment and provide assistance in developing an e-GP implementation strategy.

India The Bank has been involved in a series of international e-GP conferences in India. In close coordination with the national e-Government Project, the Bank is helping India to establish a national e-GP standards framework. Several State e-GP systems (e.g. AP, Karnataka, Assam) are currently being assessed in order to be approved for the use in Bank-funded operations. India has been a partner of the Bank in sharing its e-GP experience and lessons learned at several e-GP capacity-building events.

Maldives The adoption of e-GP is addressed under an IDF Grant for Public Procurement Reform.

Sri Lanka Under the e-Lanka project, an e-GP information system has been implemented.