Building E-Government in Japan
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- Esmond Cole
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1 Building E-Government in Japan 毛桂榮 Mao, Guirong LLD, Associate Professor Department of Political Studies Faculty of Law Meijigakuin University Shirokanedai, Minato-Ku Tokyo , Japan Tel: Fax: Abstract Japan was behind in IT society and e-government development, and still lags now. For the catch-up, Japan set up a goal in 2001 to realize the e-government by 2003, and to become the world s most advanced IT nation by As a result, it is said now that Japan has caught up with other IT advanced countries, and now in the process of shifting from a catch-up phase to a frontrunner phase. This paper discusses how Japan was to design and promote e-government in the catch-up process, and presents some discussions on the impacts of the e-government building and the further prospect when Japan was moving from the IT infrastructure development phase. Key words: e-government, e-japan Strategy, impact, Japan Paper for delivery at the International Academic Symposium on Public Management in 21st Century: Opportunities and Challenges, co-organized by the Center for Public Administration of Zhongshan University and Macau foundation, in Macau, China, on 9-11 January 2004.
2 Building E-Government in Japan Mao, Guirong 1 The Age of IT and E-Government Over the past decade the dramatic advances made in IT and the Internet have transformed much of the world into a digitally interconnected community. Throughout this period, especially the past few years, IT and the Internet have added a new and indispensable dimension to government activities in the entire world. Considerable human and financial resources are being committed to build and perfect systems that deliver government information and services online by the Internet, for improving administrative transparency and enhancing government efficiency. How a country design and implement e-government is dependent on the political strategy, its capacity to sustain an enabling environment and address the needs and priorities of its citizens. In the past, the world of IT, the Internet and e-government had been lead by the United States. Japan was far behind the United States and other countries in this IT revolution and the e-government construction in the 1990s as shown below. Therefore Japan set up a goal to build e-government by 2003, and to become the world s most advanced IT nation by 2005 indicated in the e-japan Strategy formulated in January 2001, and strategic efforts have been made by both the public and private sectors. As a result, after a few years catching-up in the IT and the e-government advancing, it is said in the Information and Communication White paper 2003 that: Japan has not only caught up with other IT advanced countries in terms of developing the broadband user environment, but it has achieved providing low broadband rates and optical fiber services, while it has succeeded in leading the world in the mobile communications field, such as the mobile Internet. In this manner, Japan is in the process of shifting from a catch-up phase to a frontrunner phase (MPHPT, 2003). Exhibit-1 Ratio of Households Possessing Information Appliances in Japan ( ) Exhibit-2 International Comparison of Superiority in IT With much more confidences in the IT society as shown in Exhibit-1 and exhibit-2, and e-government Building, Japan issued in July 2003 E-Japan Strategy II, which is a blueprint of the second phase of Japan s national IT strategy; it says that: 1
3 the basic information and telecommunications infrastructure has already been laid. Therefore, the task ahead is the expansion and efficient utilization of various IT systems in the process of becoming a model to the world of a new 21st century style society and economic system (E-Japan Strategy II, July 2003). Japan is still behind in terms of e-government mutuality as shown in this paper, but within a few years, Japan has made hard efforts to catch-up in advancing IT society and e-government building, and it is proper to agree to the assertion that Japan is moving from IT infrastructure development phase to effective IT utilization phase. This paper discusses how Japan has to design and promote the e-government toward the e-government building goal by 2003, in the catch-up process. Many inks have been put in the discussions on the web appearance and service availability of e-government, here we take a review on the system construction of e-government in Japan and to see the shared infrastructure framework and the network for information flow, digital services, and then hold discussion on what is the impact under the e-government building even it has not yet completed as seamless e-government. We will have the impact discussion with some survey data. Before we start the discussion of e-government building of Japan, we have to give a definition on what is e-government. The UN and ASPA (2002) e-government report distinguishes E-Governance, E-Government, and E-Administration, in which the E-Governance focus much more on facilitating citizen s access to the governing process and encouraging deeper citizen participation into government decision making process, the E-Government is characterized by inter-organizational relationships including policy coordination and policy implementation and by the delivery of services online or other electronic means to citizens, and the E-Administration defines the intra-organizational relationships or the internal and public sector management component. Here we use the term e-government as defined above, but includes the e-administration into the concept of e-government, because it is the system behind the e-government. In more details, the interaction between a citizen or business and a government agency traditionally took place in a government office, by face-to-face, paper-based procedure and cash-based payment measurement. With IT and then e-government, it is possible to locate service centers using a personal computer in the home or office by the Internet, then face-to-face, paper and cash based administration will be replaced (supplemented) by the Internet-based digital procedures. But the fully developed e-government is not so easy to reach; it proceeds a long way to change the 2
4 traditional paper-based administration to electronic-based government. E-government building accompanies e-administration promotion. E-Commerce has evolved through three stages: 1) publishing, 2) interactivity, 3) completing transactions and delivery. In most cases, E-government development is also considered as moving from publishing stage, interactive stage, and then toward transactional stage. Most ranking reports are based on this kind of e-government development stage to see the e-government maturity in each country at which a particular service could be offered online. The abovementioned UN and ASPA report, describes e-government into following five stages. At first, in the Emerging Stage, government with a formal but limited web presence is established with static organizational or political information, and then to the Enhanced Stage, in which online presence begins to expand to more dynamic state. In the Interactive Stage, a country s presence on the Internet expands dramatically with access to a wide range of government institutions and services. The capacity to search specialized databases and download forms and applications or submit them is also available. Next to this development is the Transactional Stage, in which users can actually receive and pay for services online, and government completes transactions like obtaining passports, birth and death records, licenses, and permissions. And finally, e-government matures to the Seamless Stage, in which e-government is a total integration of e-functions and services across administrative and departmental boundaries, and with the capacity to instantly access any service in a unified package. The digitalization of back-office and networked system by all of the government agencies not only is across different government levels, but also different functions of governments. By arranging similar agencies across different levels of governments and different agencies with different functionality with each other, citizens could see the government as one single integrated entity. The one-stop shopping concept is the one. The ministerial, departmental or agency lines of demarcation will be removed in cyberspace, that is, a mature e-government will move with the administrative rearrangement of intra-agencies operation. E-government construction will necessarily be accompanied by the e-administration building. Then, government services will move away from the paper-based and face-to-face services and more toward self-services online, without time-consuming trips to government offices. But we still have a long way for this final destination (Layne and Lee, 2001, UN and ASPA, 2002) for most countries. For discussion of e-government in Japan, we here take a look at the world e-government development through the e-government rankings to see the position of Japan 3
5 in the world. Here, a few e-government studies with varied measurement of ranking are cited, especially with those focusing on Japan and Asia countries for comparison. Those are the Accenture ranking in 2001, 2002, 2003, UN and ASPA (2002) ranking conducted in 2001, World Economic Forum report 2002, 2003, and World Market 2001 (with Brown University), Brown 2002, Exhibit-3 E-Government Ranking of Japan In Accenture 2001, following the development of e-government from publish, interact, and then to transact, the measurement categorized the maturity of e-government in four groups for 22 countries, Japan is the first in platform builder group which is the last group in the development stages as categorized from platform builders, steady achievers, visionary followers, and to most advanced innovative leaders (Canada, USA, and Singapore). Accenture 2002, following the maturity development (platform builder, emerging performer, visionary challenger, and innovative leader), placed Japan as last one in the stage of Emerging performer. This ranking is almost as same as the UN and ASPA (2002) ranking in which Japan is in the interactive stage, not the advanced transactional stage. The ranking of Japan was advanced in the Accenture 2003, following the (different) development stages (online presence, basic capacity, service availability, mature delivery, service transformation), Japan is in the stage of service availability, and it shows the e-government developed in Japan is moving into transactional stage. This measurement is almost alike to the e-japan Strategy II in 2003, as mentioned above. To compare Japan and other Asia countries, such as to Korea, in the UN and ASPA ranking, Korea is higher than Japan, and also in the World Economic forum 2002 and Korea is higher than Japan in both rankings. But in World Market 2001, Brown 2002 and 2003, Japan is higher than Korea in all cases. The differences come out with the different measurements. In the cases of Brown 2002, 2003, the ranking measurement searched only Internet web appearance, so even China 2 is higher than Japan, Korea and Hong Kong. In the cases of UN and ASPA 2002, and World Economic Forum 2002, 2003, all of these rankings show the rank of e-government in China is lower than Korea and Japan. Therefore, we may be agreeable to the rankings by UN and ASAP (2002) 3, and World Economic Forum (2002, 2003). In sum, regards to the ranking, the approach varies from one study to the other, even within different years by same ranking compiler. So it may be difficult to compare the measurements, especially such as the measurement of Brown 2003 s ranking of China 4
6 higher than Japan, and Korea is placed in very low rank. But we still can from the most parts get some information on the development of e-government of a country such as Japan here. We could see, on one hand that Japan is still behind the advanced countries in e-government building, even to Asia countries, such as Korea, and Singapore, and on the other hand, could see the catching up development in e-government building of Japan. 2 Promoting E-government in Japan A short historical summery of IT and e-government policies in Japan will be given here, and then the infrastructure development will be described following the e-government promotion. Main development of the Strategies and policies can be summarized as, 1) 1994 to 2000 (policy initiative stage), 2) 2001 to 2003 (infrastructure building stage, from e-japan Strategy until e-japan Strategy II), 3) 2003 to 2005 (e-government utilization stage, after e-japan Strategy II), but here we will look into more detailed policy development, so I divided the development into following four periods. 1) , moving toward catch-up In August 1994, the Cabinet of Japan established the Advanced Information and Telecommunications Society Promotion Headquarters, and then in December 1994, following the recommendations of the Headquarters, the Cabinet adopted the Master Plan for Promoting Government-Wide Use of IT for the period of 1995 to It aimed to provide one PC for each person in the government and to build a network within the government. The network was then accomplished in 1997 as Kasumigaseki WAN (wide area network) that connected all of the central government ministries. The Master Plan had been revised in 1997 as a new five-year plan for 1998 to 2002, and set the target aiming at realizing highly advanced electronic public administration or electronic government in the beginning of twenty-first century. It is the first time in a government statement that mentions the goal of e-government building in Japan. Then, the original e-government vision was set out in the Millennium Project in 1999 for increasing the competitiveness of industries as one of the means. In the infrastructure construction, beyond Kasumigaseki WAN, the online administrative procedures, GPKI, electronic authentication system were planned and under experiments. 2) 2000, set up e-government goal: Basic IT Strategy, Basic IT Law For the promotion of IT society and e-government in Japan, the IT Strategy 5
7 Headquarters was established in July 2000 within the Cabinet, and also an advisory commission IT Strategy Council was set up in Cabinet Office. In November 2000, the IT Strategy Council issued a recommendation report Basic IT Strategy, in which it urged Japanese government hurry to catch up IT society and e-government development. It said that Japan falls far behind other nations in embracing the IT revolution; the Internet usage in Japan is at the lowest level among major industrial nations, and is by no means high even compared with other nations in the Asia-Pacific region. Japan lags behind others even in terms of how wildly information technology is used in business and public administration. The strategy report called for Japan to take revolutionary yet realistic actions promptly in order to create a knowledge-emergent society, to make Japan the world s most advanced IT nation within five years, e.g., 2005, and to realize an electronic government that handles electronic information in the same manner as paper-based information, by fiscal year Following the recommendation, the Headquarters suggested the draft idea for IT Basic Law, and based on the recommendations the Basic Law on the Formation of an Advanced Information and Telecommunications Network Society (IT Basic Law) passed two days later after the decision of Basic IT Strategy. Then, the IT Strategy headquarters was reorganized to a new IT Strategy Headquarters based on the IT Basic Law, and the recommendations in the Basic IT Strategy were succeeded by the e-japan Strategy in 2001, just two months later. In the infrastructure development, the building of GPKI and BCA that will be described later started in July 2000, and also ministries started to promote CA construction. The Law Concerning Electronic Signatures and Certification Services was legislated in May 2000 and in effect April, 2001, electronic authentication based on Commercial Registration (private CA) started in October ) e-japan Strategy In January 2001, Strategic Headquarters for the Promotion of an Advanced Information and Telecommunications Network Society (IT Strategic Headquarters) established within the Cabinet, parallel to the central government reorganization (20-ministry reorganized to 12-ministry). In January a new e-japan Strategy was decided. Following the strategy, in March 2001 e-japan Priority Policy Program, in June 2001 e-japan 2002 Program, and in June 2002 e-japan Japan Priority Policy Program 2002 were in sequence decided. All of the reports lay out a blueprint and policy programs 6
8 for making Japan the world s most advanced IT nation within five years, and e-government by fiscal year The e-japan Strategy targeted the aim to establish a new national infrastructure, including legal frameworks and information infrastructures suitable for a new IT society. The policies for IT development in detail were aiming to provide high-speed constant access networks to at least 30-million households and ultra high-speed constant access to 10-million households. By the way, the total number of household in Japan is around 48 million. Also for realizing an e-government by fiscal 2003, which handles electronic information in the same manner as paper-based information, all government paperwork should move online by fiscal year For materializing e-japan strategy, e-japan Priority Policy Program set 220 measures that should be implemented in fiscal year 2001, and 103 measures were implemented in the fiscal year. In e-japan Priority Policy Program 2002, that submitting law aiming at enabling all administrative service available online the same way as the paper-based services was suggested. The government submitted a bill in 2002 and passed in the Diet to move all government paperwork online by fiscal 2003, then the reform to digitize documents, to promote paperless to share and utilize information through information networks is under way. UN and ASPA (2002) based on the survey of 2001, reported that Japan s e-government program has not yet reached a comparable level of sophistication as that of the regional leaders was due primarily to its achieving only a limited interactive presence among national government websites. Japan scored high in both technology infrastructure and human capital. Also, Accenture (2002) indicated that consistent with other Emerging Performers, Japan is focused on building the appropriate infrastructure and regulatory systems to support its e government plans, and the report called Japan s plan extremely ambitious and far-reaching. In infrastructure development, the CAs in most of the central ministries, and the BCA in MPHPT started to operate in The network that links all of the local governments (LGWAN) was under construction and then connected to the Central government WAN in 2002, and all of the central ministries completed the CA system in fiscal year In addition, online procedures such as MPHPT started partly. Also the so-called Juki net started its construction in ) e-japan Strategy II Based on the e-japan Strategy and the e-japan Priority Policy Program, Japan, 7
9 moving to 2003, almost has conducted all of the e-government infrastructures, which will be described below. Accenture (2003) in the research of early 2003 revealed that Japan climbed two spots in ranking from 17 to 15, largely because of its significant increase in overall service maturity score. Japan was placed in the service available stage, as shown in Exhibit-3. Based on this kind of rapid development, the IT Headquarters issued the e-japan Strategy II in July 2003 and then confirmed by the Cabinet. Also based on the second IT strategy, in August 2003, a policy package of e-japan Priority Policy Program 2003 was decided, which contains 366 concrete measures to be implemented for realizing citizen-oriented one-stop service. In companying to the second strategy, the Liaison Meeting of the Chief Information Officers (CIOs) of the Ministries and Agencies (as the CIO Liaison Meeting ) that was established under the IT Strategic Headquarters and consisted of the CIOs of the respective ministries and agencies, issued a 500-pages plan in July 2003, tilted E-Government Building plan. The plan by the CIO Liaison Meeting will be the base for the programs to be implemented from fiscal 2003 until the end of fiscal 2005 targeting the development of one-stop and non-stop services. Its focus is more on the e-administration; the goal of this plan is to realize citizen-oriented 24-hour, 365-day services without thinking about the demarcation or separation of government function in different locations and organizations. Under the plan such one-stop service as the car registration procedure will be at work by In the next section, we will take a look at the infrastructures for e-government in Japan. 3 E-Government Infrastructure Building in Japan The basic infrastructures for e-government service in Japan could be summarized into following five aspects. 1) Kasumigaseki WAN and LGWAN The government of Japan has developed its information and communications infrastructure, such as installation of LANs and PCs within ministries and establishment of networks between the central ministries, agencies and field agencies. In 1997 a system called Kasumigaseki WAN (Wide Area Network) was constructed, which interconnected all of the central government organs around the Kasumigaseki, the central government office area like the Whitehall in Britain. Kasumigaseki WAN is composed of private line connected with the Internet and is exclusively used by the central government. Regards to the networks within central ministries, LANs have been established in 69.7% of the overall national administrative organizations by fiscal The installation is completed 8
10 for internal divisions (100%) and nearly complete for facilities (99.6%). The introduction is also steadily making progress in special organizations (67.6%) and local branch offices (58.7%). And most of the LANs (61.1%) have been connected to Kasumigaseki WAN, as shown in Exhibit-4. Based on the LAN in each organ and the Kasumigaseki WAN, computerization measures within government, such as having one computer per person, were promoted for more efficiency by using information infrastructures. Exhibit-5 shows the development of PC per person in central government. Moreover, the Local Government Wide Area Network (LGWAN), that connects various local governments around entire Japan, has been built. The LGWAN is an intranet of local governments, intended to facilitate the communications between local governments and allow advanced use of information through information sharing. This is a network exclusively used for public administration as the Kasumigaseki WAN. The LGWAN has been connected with the Kasumigaseki WAN in April 2002 in accordance with the e-japan Priority Policy Program. Most local governments have been covered by the LGWAN and will be connected with all the local governments in fiscal year The installation rate of LANs within local governments was 100% for prefecture level governments and 90.3% for municipalities in 2002 as shown in Exhibit-6, and the installation will be completed for all of the local governments (about 3200 Municipalities in total) in fiscal year Exhibit-4 Installation of LAN in Central Government Organs Exhibit-5 Number of Employees per PC in the Central Government ( ) Exhibit-6 Installation of LAN in Local Governments 2) GKPI In response to the need for a framework (certification system) that will verify the persons (applicant or public agency) who prepared the information on applications and also confirm whether the information has been interpolated or not, Japan has implemented the Central Government Public Key Infrastructure (GPKI) which consists of, a) ministry or agency Certification Authorities (CAs), and b) Bridge Certification Authority (BCA). The MPHPT in 2001 launched the operation of a Bridge Certification Authority (BCA), to go along with the certificate authorities launched in 2002 by the Ministry of Economy, Trade, and Industry (METI), and other ministries. The GPKI has completed its cross-certification procedures between BCA and all the ministry/agency CAs by the end of 9
11 March Moreover, because most government services in fact are provided by local governments, so in order to enable applications, report, and other procedures to local governments available by the Internet, Japan developed for local governments a certification infrastructure that is compatible with the Government Public Key Infrastructure (GPKI) in central government. Following the GPKI in central government, Local Government PKI (LGPKI) consists of LGPKI-BCA in prefecture level governments and CAs in all of the local governments. Also for the service to citizens by the Internet, an infrastructure system for individual public certification is needed, and now the PKI for Public Individual Certification Services by local governments started their operations in 2003, which is linked to the Juki net that is referred later in this paper. In addition, BCA has completed its cross-certification procedures with commercial registration CAs and is carrying forward cross-certification procedures with other private-sector CAs for individuals as well, based on the E-Signature Law (Law Concerning Electronic Signatures and Certification Services) enacted in For most companies, certification services could be provided by Private CAs that are authorized by government as cross-certificated with government BCA. In theory, the CAs by foreign countries (companies) can be authorized through cross-certification procedures as well, meaning the service can be provided by foreign governments (and companies). As of 2003, more than 10 CA services (so-called Designated Certification Services) are authorized by the Japanese government. Technically the electronic signature is not provided by government, but in fact it is based on the GPKI. Also companies could have services based on commercial registration to the Ministry of Justice. In Japan, a company uses the information registered in commercial register to certify the existence of a company, the power of representation of the director. It is used now to establish electronic authentication system using the information registered in commercial register and the commercial registry is operated as a certification authority to issue certificate for companies. The registered information, which has been regarded as highly reliable, could be used by the Designated Certification Services. In sum, the system that consists of GPKI-BCA-CAs, LGPKI-BCA-CAs and Private CAs is the basic infrastructure to achieve full online services to citizens, business and for all of the governments. 3) Individual Certification and JUKI -Net 10
12 Based on the GPKI and LGPKI, for the online service to citizens by the Internet, a system of Public Individual Certification Services by local governments started its operations in The public authentication systems for individuals by local governments use data from Basic Resident Registers to process the authentication procedure. The Basic Resident Registers are held by respective local governments and presently used to authenticate a person s state of residence as the basis of various administrative services provided by local governments. For government-wild information use of the resident registers, the MPHPT constructed a Resident Basic Registers Network System (the so-called JUKI net in Japan) in accordance with the Revised Law of the Basic Resident Registers. It became a system to process matters concerning basic resident registers that go beyond the region of a city or village and to provide personal identification information to all of the national and local governments. All of the local and central governments can share resident registers information across the country and the system is considered as helpful for rationalizing administration and improving the convenience of residents. This system is a separated LAN, isolated from the Internet, the LGWAN and the Kasumigaseki WAN, but is connected with all the computerized local residential registers systems, which contains four resident information (name, gender, address, date of birth), added with residential ID number and modification records. The Residential ID and the Juki net can only be used for government services and administrative procedures limited by the Law in such field as passport application; the usage has been extended one time and is expected to be used in most government services. But the system can not be used by private sectors. So it is not a residential ID system as in many countries and is not a system such as the social security number system of USA. The basic portion of the Basic Resident Registers Network System went into operation in August 2002, and it became possible to provide personal identification information to national and local governments. The system has been contributing to reduce the burden on residents and increase administrative efficiency by eliminating the need to attach a paper copy of the resident register for errands such as applying for a passport or the need to submit a notification of the current status to receive mutual pension benefits. Starting in August 2003, copies of resident registers can be issued in a wide area, the procedures about moving residence will be simplified, and the Basic Resident Register IC cards have been issued. This IC Card can be used to store the electronic signature as public individual certification and used in different ways designated by respective local 11
13 governments as well. But since this system contains ID numbers that are linked with all of the residents with Japanese nationality, it is arousing national controversy on privacy and information security. A few local governments decided not to join this system, or let the residents decide to join this system or not. A full system has not been completed at this point. As mentioned above, based on GPKI, the BCA has completed its cross-certification procedures with private-sector CAs for individuals. So citizen can also use the private-sector CAs for individual certification service, in theory. But it is unlikely in practice, because private CAs can not use the Resident Basic Registers Network System (JUKI net) for electronic certification Services and the IC card, except for people who submits its paper-based resident register (exemplified copy) to private CAs for electronic certification. 4) E-Administration Based on the government-wild network (Kasumigaseki WAN and LGWAN) and GPKI, the digitalization of government information and data sharing are promoted in the e-government construction. The internal management system, such as personnel management, accounting management, intra-agencies electronic documents exchanges and other e-administration are promoted as in the case of central government under the paperless program ( ). In August 2003, the MPHPT issued a survey report as of Exhibit-7 shows the development in the digitalization of 57 internal administrative affairs; such as coordination for inter-government agencies, public management of common affairs like salary, budget, accounting, meeting announcement, management announcement within central and local governments, Public Relations Magazine. Moreover, the survey report shows that the information storing forms for house-keeping affairs in internal division of the central ministries by the offices in March 2003 are 4.5% (12.9% in March 2002) per person in paper, and 95.5% in electronic forms (87. 1% in March 2002). As estimated, the central government ministries have saved 760 million pages for one year by paperless operation, digitization of database, and e-filing (Asahi Shimbun, August 8, 2003). The paperless movement is under way with the e-administration promotion. Exhibit-7 E-Administration / Paperless (57 internal administrative affairs) 12
14 5) Administrative procedures for citizens and company The administrative procedures refer to such procedures as application for licenses, permissions, registrations, and others like certain legally required documents that citizens or enterprises have to submit to the government. In most cases, the procedures require presentation of original documents, face-to-face interview in government office and so on at the time of application. The total number of these is around thirteen thousands for national government and six thousands for local governments as shown in Exhibit-8. With regards to digitization of administrative procedures, all ministries and agencies have completed installation of the necessary systems including certification systems and general-purpose reception systems by the end of fiscal In the plan, 24-hour administration will be principally available at home or work, such as browsing of all the administrative information, the procedures for application and reporting, payment of fees, and public procurement by fiscal year For that, a Task Force was jointly formed by the Ministries and Agencies in 1999 and started to work on Virtual Agency, and then the Liaison Meeting of central government established to promote digitization of government procurement procedures and other administrative procedures. The Liaison Meeting was reorganized into the Liaison Meeting of the Chief Information Officers (CIOs) of the Ministries and Agencies (as the CIO Liaison Meeting ) under the IT Strategic Headquarters. Under the leadership of IT Headquarters and the Liaison Meeting, online administrative procedures is under construction; for instance, the MPHPT developed an online bidding system using the Internet and launched operation of the electronic tendering and open bidding system for non-public works in October In the area of legal systems, the three laws for providing online administrative procedures, for further computerizing the central and local governments passed the Diet in December Among these laws, the Online Administrative Procedures Law went into effect in February 2003, so the electronic procedures will be equivalent to paper-based procedure in legal term. Among the procedures of national administrative organizations, as shown in Exhibit-8, 7335 procedures were digitized by the end of fiscal 2002 (implementation rate: 54%) and 13,299 procedures are scheduled to be digitized (implementation rate: 98%) by the end of fiscal 2003 (March 2004). In 2003, Japanese government made a new calculation and new plan on the digitalization of administrative procedures as shown in Exhibit-8, which not only includes procedures between the government and the citizens and company, but also the procedures of intra-governments, and the procedure between government and public policy companies. 13
15 Most of the procedures (approx. 52,000 procedures) will be digitalized and made accessible via the Internet by the end of fiscal 2003, in principle. Exhibit-8 Number of Available Online Applications and other Procedures (cumulative total) 4 The Impacts of E-Government With all the e-government promotion, it seems that all of the local government and national government are connected toward each other as one single information system. The capacity to search specialized databases and download application forms or submit them is available in some service areas. Japan is moving toward next e-government stage, e.g., transactional stage, as shown in the ranking by Accenture (2003). E-government and e-local governments will enable all citizens and companies to enjoy administrative services without restrictions of time or location and to realize pleasant and convenient life and business activities. It is said that coupling with reform of the operations and simplification, rationalization of the procedures, e-government development will also contribute to simplify as well as enhance efficiency and transparency of administrative management. Japanese government is working toward a total integration of e-functions and services across administrative and departmental boundaries, and with the capacity to instantly access any service in a unified package, e.g., one-stop and non-stop services. Japan s current government portal ( was lunched in 2001, and is expected to be a one-stop online service gateway. It is organized now around government agency though not yet user-intention based, and is providing government information rather than services. The online services provided by government agencies for most of the procedures, have following common flow of information, as in the case of the planned tax filing procedure. a) At first, in preparation, citizen or company must request for electronic filing, and get permission from the agency which is providing online services. Then with permission, the government agency will send application ID and password for e-filing to the person who is asking for online application. b) Secondly, the applicant should download a special software package (such as ITEM 2000 of METI) that provides necessary form and instructions on how to proceed with the e-filing. 14
16 c) The applicant should get a certification of digital signature, from local government or private certification service provider. d) The applicant will fill out the application form and make attachment papers with it. Some of the attachment that can not be filed electronically should be sent by separate postal mail. e) The applicant then will transmit the application data with digital signature via the Internet with application ID and password. f) The government agency will issue a notice when it has received the online filing. The agency could ask for additional documents or other additional supplements in some cases. g) In most cases, the applicant and government agency will arrange the payment of application fee, such as through the postal service, buying government revenue stamp, or paying cash in convenience stores. The applicant then could track online the status of the application with ID and password. h) The applicant will finally receive official documents in digital form by the Internet or in paper form by mail in some cases, as a result of the application within designated timeframe. Japanese is working hardly to integrate separated procedures, such as with general-purpose acceptance system in electronic filing to have common parts in the applications, and to review the regulations with reducing attachments. But this kind of online service is not a convenient one now as many have expected. Also there are now some differences among ministries in the online process, some filing procedures are even limited in the business hours, not 7-day a week, 24-hour a day. Beyond the many attachments, many applications accompany fees which are based on cash payment. For instance, the filing of patent online is available now but the fee is cash-based; in practice applicants prepay cash into patent agency. The online payment is still being worked on and will be available in So it is too difficult to receive services online now, there is a gap between online service availability and actual usage. The most cited example of the utility of e-government is the capacity of paying taxes online as many countries offer electronic filing through online taxation program. The national tax agency is testing the tax return online system in four local governments and is planning to expand the online tax filing and payment system across the nation in summer In Japan now, how to readjust the cash-based payment system is the most important issue in the online tax filing system rather than the security and privacy issues. In this sense Japan still legs behind advanced e-government countries, even with Asian countries 15
17 like Korea and Singapore. This is the same in national government as mostly in the local governments. There are some digital divides among local governments on the one hand; while on the other hand some local governments are doing better than national government in certain cases because local governments seem to be the proving ground for e-government services as in the taxation online case. Electronic voting, for example, is still at a local rather than central government level (Jain 2002, Thompson 2002). With all of the above-mentioned limitation, here we will present a few preliminary evidences of survey data, to see the impact of e-government. While most studies of e-government focus on the provision of online service, some have emphasized that reforming the back office is just as fundamental to achieve effective government as to update front office service delivery channels. We focus here on how could e-government affect the performance of public administration, what is the effects of digitalization to the government services with few limited data. One survey arranged by MPHPT in 2001 on the e-government evaluation of municipality officials (except for the staffs working in IT division) is shown in Exhibit-9, in which 305 local government staffs presented their evaluation on the effect of digitalization. Regarding on how the digitization of municipalities has changed their works, more than 40% of these employees felt that it has had either a very favorable impact or a favorable impact on their works in all areas including workload, quality of work, and speed of work. In particular, with respect to quality of work and speed of work, about 60% to 80% of the employees felt that digitization has had either a very favorable impact or a favorable impact. We may say that the promotion of the e-municipality has a positive effect on improving the quality of work and speeding up the work of municipal employees. Exhibit-9 How the promotion of E-Municipalities has changed the work. One more survey in January 2003 by BP Press gives details on the efficiency of digitalization; in which national and local government staffs are asked on the e-government development and the impact on their works. The total 1510 government staffs have a government-wild distribution, in which 17.7% from national government, 28.7% from prefecture government and the other from local municipalities (for more details, see Mao 2003a). Exhibit-10 shows their self-evaluation on the development of e-government in their own agencies. More than 20% staffs evaluated the development of 16
18 digitalization very good or good on the one hand, and more than 40% said not good or bad on the development in digitalization. Exhibit-11 shows the distribution on the improvement of efficiency by digitalization, and the relation between digitalization and efficiency is shown in Exhibit-12, in which improvement in efficiency are increasing with the digitalization by self-evaluation. But the decreasing in efficiency is also shown by the data, which indicates the development of digitalization has more complicated impact on the work efficiency, especially in the case of those evaluated their digitalization as very good answered no change (15.1%) or changed to inefficiency (22.6%) by digitalization. Exhibit-10 Development of Digitalization Exhibit-11 Improvement of Efficiency Exhibit-12 Digitalization and Efficiency This trend is supported by the reduction in paper as shown in Exhibit-13 and Exhibit-14. There is a positive relation between digitalization and paper reduction, but on the other hand almost half of the staffs who evaluated as very good and more than 60% who evaluated as good on their agency digitalization answered no change and increased in paper work. Moreover, we turn to service quality as listed in Exhibit-15 and Exhibit-16 that showed digitalization and improvement in service quality, here again the data indicated the causal arrows work in both directions. To narrow down the complicated impacts of digitalization or e-government on public administration, more research seems necessary on the subjects such as the digitalization and institutional changes, redesigning of government processes and other aspects. Exhibit-13 Paper Reduction Exhibit-14 Digitalization and Paper Reduction Exhibit-15 Improvement in Service Quality Exhibit-16 Digitalization and Service Quality 5 E-Government Building and Research Agendas Since the first e-japan Strategy was issued in 2001, Japan has carried out most of the IT strategy plan in the infrastructure development, and now Japan is ready to move ahead to the second phase, that is to use the IT infrastructure. Though data sharing and increased interaction between different government agencies and between government 17
19 agency and citizens encourages information disclosure, citizen participations, the truly effective utilization of IT and the e-government is only at the beginning, and it may be a little early to tell the impacts of e-government. More discussions are necessary on digital divide, protection of personal information, online security, security problem and privacy. On the other hand, on the research agenda, much has been done on what is presented on the web or the service availability of e-government, but so few on how citizens are using the e-government. The use of e-government is just about to start, so we do not have detailed data on how citizens are using the e-government. Moreover, the e-government is one of the social techniques, as in the case of driving technique for cars, people that will use it needs to master the e-government, and then go to use it. The data in Exhibit-17 shows that the majority of residents and businesses believe that when using electronic administrative procedures, it is important to ensure that the contents of applications and the identity of applicants will not be divulged, and that none of their private information will leak. Additionally, the government services provision in Japan is much more convenient than other countries, as of government service center in stations, and other sophisticated service systems. Some argues that e-government is not necessary in Japan for most people, and paper based services will remain the most important system. Exhibit-17 Keys to the Realization of Electronic Administrative Procedure But all of the national and local governments are connected into single entity and moving toward full e-government, what does this mean for traditional public administration that is based on the paper and face-to-face frameworks will be a further research agenda. Here e-government building in Japan is moving toward one-stop services by realizing a single window, and non-stop 24-hour, 365-day a year public services. For that, all of the government systems including local governments will be linked into a single e-government portal site ( in which various information, services and administrative procedures could be processed online. It needs to fundamentally redesign the existing organization and existing services to revise and streamline service procedures. It is well known that e-government is not just introducing the IT into the workplace or into bureaucratic processes, but rather to remove the barriers that hinder the citizen-oriented service processes. The e-government can create networks of information flow among different parts of the administration, irrespective of legislative or 18
20 administrative boundaries and hierarchies. By going beyond the existing organization framework to redesign government procedures, e-government is indicated to move toward seamless government. It is argued that e-government is more about government rather than about e, which needs to cut across the boundaries that separate different structures and functions in the public administration to provide a seamless government services. E-government of Japan is moving toward this direction as shown in the E-Government Building Plan of CIO Liaison Meeting mentioned above. What will this development bring out of the paper based government? The current public administration is based on the assumption that agency works alone, so management and accountability need to be updated and strengthened to deal with the impact of e-government. One stop seamless services entail a certain blurring of roles and functions within the administration that are asked to work together to deliver services, and then sharing of information and tasks makes it difficult to ensure internal accountability within the traditional public administration. We can question whether or not government agencies can maintain their current internal divisions and territories while trying to maintain a single simple interface with citizens through e-government. We do not now have any evidence on the development of this way from the case of Japan. Many expect that further development of e-government will increase networked and collaborative work models, leading to flattened hierarchies, and facilitating devolution of decision making to the lower level organizations. Whether the bureaucratic organizational structure will be transformed toward more flatter, no survey or any systemic study shows for this in Japan s case. More research is needed to determine whether e-government facilitate decentralized decision making in organizations. We still do not have agreement on relation between the e-government and public administration even though the discussions have been extended, such as if a revolution or some thing big stay ahead, except that the development in some sense improves government services (Fountain 2001; 2002, Heintze and Bretschneider 1999, Margetts 2003, Mechling 2002). The case of Japan, on what does E-government development mean for the bureaucracy and public administration, shows only some improvement of efficiency and service quality, but with some complicated aspects. We still have a long way to figure out how the e-government would transform the modern government and public bureaucracy. 19
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