Local Governance and ICTs Research Network for Africa. LOG-IN Africa. State of ICT and Local Governance, Needs Analysis and Research Priorities: Egypt

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1 African Training and Research Centre in Administration for Development International Development Research Centre Local Governance and ICTs Research Network for Africa LOG-IN Africa State of ICT and Local Governance, Needs Analysis and Research Priorities: Egypt Executive Summary 3-5 September 2005 Nairobi Kenya

2 Egypt recognized the importance of ICT and established the first Ministry of Communication and Information Technology (MCIT) in October MCIT engaged into an ambitious e-government project as early as It also invested into upgrading the telecom infrastructure in Egypt, and developed several initiatives to disseminate computers, internet and IT literacy and proficiency. The Egyptian e-government program encompasses both central and local government. Since its start in 2001, the e-government program developed several pilot projects to probe their feasibility. Many of these projects matured and are currently in the roll out phase. From the acquired experience during both pilot and roll out phases, it is the conviction of the author that the critical success factors lie in the proper management of organizations, personnel and business processes. ICT would further enhance the performance, but will surely not be the only factor to resolve current deficiencies. The author concludes with a suggestion of specific lines of research that he considers to be useful for 3 rd world countries. 2

3 State of ICT and Local Governance, Needs Analysis and Research Priorities: EGYPT Overview Area: total: 1,001,450 sq km land: 995,450 sq km water: 6,000 sq km Population: 77,505,756 (July 2005 est.) Population growth rate: 1.78% (2005 est.) Religions: Muslim (mostly Sunni) 94%, Coptic Christian and other 6% Languages: Arabic (official), English and French widely understood by educated classes Capital: Cairo Administrative divisions: 26 governorates (muhafazat, singular - muhafazah); GDP: purchasing power parity - $316.3 billion (2004 est.) GDP - real growth rate: 4.5% (2004 est.) GDP - per capita: purchasing power parity - $4,200 (2004 est.) GDP - composition by sector: agriculture: 17.2% industry: 33% services: 49.8% (2004 est.) Labor force: million (2004 est.) Labor force - by occupation: agriculture 32%, industry 17%, services 51% (2001 est.) 3

4 National Governance Background: State Structure The state in Egypt is mainly central hydraulic society. During the 6~7 thousand years of history the water of the Nile river has been the glue that formed the Egyptian state and shaped its society. The population of Egypt is mainly concentrated around the river valley and delta, occupying only about 5% of the total country area. The central government in its modern form dated from the early 19 th century during the rule of Mohamed Ali Pasha. At that time, he established the Egyptian government based on the modern form adopted in Europe. The Egyptian bureaucracy has ever since grown stronger and larger. The Egyptian territory is divided into 26 administrative sections, called governorates, of various sizes, populations and resources. Governorates are administratively divided into cities and districts, which are in turn divided into smaller entities called neighborhoods in cities and villages in the districts. Some villages are even subdivides into minor villages (boroughs) The local entities have a certain degree of administrative freedom, nevertheless they are financially and politically managed by the central government. Central ministries have antennas at the governorates level, called directorates. Directorates are technically managed by an undersecretary from the corresponding ministry, while the entire directorate (and the subordinate departments) report administratively to the local administration. The Governors are appointed and sworn by the President. They report to the Prime Minister. The ministry of Local Development overlooks the activities of the local entities, but has no power over them. For many years, there were political discussions about decentralization. Currently, this is a de-concentration of a central government model, rather a decentralized one. This has resulted in an oversized central capital to which people from all around Egypt moved seeking for better opportunities. Greater Cairo population amounts to 14~17 million, depending on the hour of day or night. This is 20% of the country population in just one large city. The governorates still have a degree of administrative autonomy, which when properly used can result in good administration, totally depending on the personality and abilities of the governor. As an example, the governor of Alexandria (4.8 Mo inhabitants) succeeded in rallying the enthusiasm of the Alexandrians to largely enhance the living standards of the governorate and attract many investments. 4

5 Civil Society engagement Since the year 1952, and the totalitarian regime of the time, the social contribution was quite minimal. The people expect the government to engage in each and every little detail. It is only recently with the growth of the private sector that more engagement of civil society in the resolution of their local communities, especially when they are allowed to and motivated. The case of Alexandria is a clear proof of this engagement. Local Governance Policy and Strategy: Decentralization Efforts In July 2005, a new government was appointed with the mandate of "enhancing the public service level and the introduction of ICT in the government operation as well as day-to-day life activities of the citizens". Also a more serious tone concerning decentralization was raised. A new law for local governance is being formulated. Currently administrative decentralization is being considered. Nevertheless, decentralization on the political and financial level was discussed. Implementation of such level of decentralization would require complete restructuring of the government, to change from an executive body to a regulatory one. (see Fig. below) Central Policies Local Projects Monitoring and Assessme nt Financial Allocations Local Executio n Administrative decentralization is currently being tested with the ministry of education, together with the governorate of Alexandria. Local Government efforts currently focus on enhancing the living standard of the community, as well as simplifying the government services provision to the public and business. This is being implemented through the establishment of service centers operated as single-stop-shop type of centers, particularly for businesses and investors. Also, single window service centers for the individuals are being implemented. Efforts in Business Processes re-engineering to solve congestions at the services provision outlets are still quite limited. ICT and e-government in Egypt: 5

6 (extract of: The Egyptian Information Society Initiative: A focus on Government Ministerial Round Table On Innovation, Seoul, Korea, may 2005) Vision Delivering services to the public where they are, in a suitable way at the right time and allowing them to participate in the decision making process. Mission Deliver innovative and value added solutions in the e-government services that satisfy the government needs with a superior quality which will provide an optimum return on investment to the country Goals and Objectives Deploy a new philosophy and work methodology in government authorities and offices in a mode that help: Government expenditure reduction: The approach is expected to minimize government expenditure through proposing a new mechanism of government procurement, enterprise resource planning (ERP), and efficient allocation of resources. Smooth transition of the government operations to accommodate changes in the globalization era. Accurate updated information to decision makers: Providing accurate, updated information will support the decision making process and enable easy follow-up on the progress of development projects. Modernizing work in government offices: Automating workflow and enterprise resource planning in ministries and authorities to reduce time and data redundancy and provide immediate access to up-to-date business information to top management through extensive reports and inquiry screens. Establishing and updating national databases: Setting standards for the government network. Policies People have high expectations of government, and so the speed of execution of e- government projects is important. Surveys everywhere show that people think e- government should be given a high priority, and the response from citizens and businesses any time a public service is put online is almost always overwhelmingly positive. And, E-government becomes successful when can generate a positive impact on all of society and reach all constituents. The EISI Government program is based on the following policies: Emphasizing public private partnerships Accepting new implementation models such as outsourcing and self financing schemes. Capitalizing on current existing systems. Decentralization of service delivery by providing multiple communications delivery channels and service provision centers. 6

7 Activating and encouraging data and information exchange among government bodies. Accrediting electronic authentication Assuring quality and standardizing transactions. Setting the legal and regulatory foundations required for authentication, electronic payment, and security Adopting intensive human resource development programs and incentive schemes. Implementation Framework Modern technology and information networks are used as the main developing tool to enhance the efficiency of the administration systems, minimize the workflow process and create new channels for delivering the services. Modernizing the Egyptian Government and putting Egypt at pace with the latest governmental technologies worldwide is considered a major milestone in delivering Egypt s ambitious plans, to improve the quality and efficiency of the public service processes and to avail government services online by June Utilizing communications and information technology is a major tool to enhance government readiness, accept the implemented local program and to smoothly integrate in the global community. 7

8 Actual ICT Status In October 1999, the new cabinet included for the first time a ministry mandated with the ICT, ministry of communication and information technology (MCIT), headed by Dr. A.Nazif. MCIT engaged into the dissemination of ICT in Egypt and the implementation of an ambitious e-government program. In July 2004, Dr. A.Nazif was appointed to be the first Prime Minister coming from IT background. The table below presents a summary of the main ICT and human capital indicators. A comparison with first world figures would reveal the need to enhance some of these indicators Internet userss/ PC's / Main telephone line subscribers/ Mobile Phone subscribers/ Gross Enrolment rate (million) 76 Adult Literacy Rate 69.2 Population Size (in Millions) 70 Human Capital Index Education Index 0.63 It is the writer opinion that human capital is the element of utmost importance. A well educated population is much more capable of identifying its needs from the government and making benefit from advanced technologies. However, given the fact that our countries suffer from a high illiteracy rate and limited education, adequate channels should be availed to accommodate populations with such conditions. A major factor that should be taken into consideration is the relative cost of ICT to the GDP per capita. A PC costs a fraction of the monthly salary of the employee in USA and EU, but costs the multiple of the monthly/ yearly salaries in African and third world countries. Availing ICT and adequate education to government staff and public is a huge and cosly task. 8

9 Research Priorities ICT professionals and high government officials tend to get engaged into large ICT projects, hoping ICT will be the miracle cure for their problems. Most of these projects drain huge resources with very little ROI. It is the writer opinion that the solution lies in a rather different direction: First world did not become advanced because it used ICT, it used ICT because it is advanced" Good management, proper business processes definition and documentation and adequate human resources training would account for the major part of public service enhancement and would ensure better governance. This does not negate the important role of adequate ICT in further enhancing the performance of the public service entities, both centrally and locally. A critical field of research for our region would be the "Management of Information System". Proper education and orientation for the ICT professionals and Decision makers would result in a high impact on the governance level, at fractions of the cost. 9

10 3-5 September 2005, Nairobi Kenya Annex: Profile of ongoing ICTs Projects Project Title Project Objectives e-gov services e-gov ERP Local e-gov National Databases: National ID National Cadastre Web-based gov. services: Birth certificates, ID cards, car license renewal, Tax filing High school diploma results,. Gov. Accounting, Stock Control, HR management Municipal services: Single window, BPR Inter-linking national databases with each other Implementing Project Leader Project Organization Time Line Ministry of Eng. Sameh State for Bedeir Administrative Development (MSAD) MSAD MSAD MSAD ++ Dr. Ahmed Samir Collaborating Project Status/ Partners Project Outcomes Egyptian Government Portal: BAWABA + services Ministries Dr e-alexandria HatemELKADI e-cairo ongoing Many e-health e-culture National Post Modernization Maritime Ports Modernization National Health record Documentation of cultural and natural heritage MCIT MCIT- Bibliotica Alexandrina National Post Organization Prof. Samir Shahin Prof. Fathi Saleh Dr. Ali El- Meselhi Dr. Ali El- Meselhi Eternal Egypt website Digital & printed material Sokhna Port, Damietta Port, Alexandria Port ongoing Many other projects exist 10