E-Government for Promoting Sustainable Development In Small Island Developing States (SIDS)

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1 Presentation at the Second Committee Special Event on SIDS UN Headquarter, 14 November, 2014 E-Government for Promoting Sustainable Development In Small Island Developing States (SIDS) Entrusted with the Supervision and Auspices of United Nations Project Office on Governance (UNPOG) Young Bum LEE, Ph.D. Department of Public Administration, KONKUK University Seoul, South Korea

2 TABLE OF CONTENTS 1. OVERVIEW OF RESEARCH 2. DOES E-GOVERNMENT REALLY MATTER? 3. WHAT MAKES THE DIFFERENCES? 4. WHAT SHOULD WE DO NEXT? 2

3 1. OVERVIEW OF RESEARCH Background/Context Research Questions 3

4 1. Background/Context (1) World Attention to SIDS At Rio+20, Member States decided to call for a Third International Conference on Small Island Developing States (SIDS) The United Nations announced 2014 as the International Year of SIDS UN s Commitment for SIDS 1994, Barbados Programme of Action 2005, Mauritius Strategy of Implementation 2014, Samoa Pathway UNDESA s Key Issues SIDS Unit established in 1995 within UN Division for Sustainable Development under UNDESA USG Mr. Wu appointed as Secretary General for 2014 Third International Conference on SIDS Analysis on SIDS In 2014 UN E-Government Survey 4

5 2014, Samoa Pathway 1. Background/Context (2) 110. We recognize that access by small island developing States to appropriate reliable, affordable, modern and environmentally sound technologies is critical to achieving their sustainable development objectives and in fostering an environment that provides incentives for innovation and entrepreneurship and that science, technology and innovation are essential enablers and drivers for sustainable development. 5

6 1. Background/Context (3) Potential of E-Government to Address Multiple Challenges Features of SIDS Isolation from major markets Isolation of local economies from each other and their central gov t Small domestic market and resource base Absence of economic of scale in the provision of public services Susceptibility to natural disasters Unfavorable conditions for sustainable development Hindrance for business and investors - High transport costs - Barriers to information and gov t process Restricted citizen participation in government processes High dependence on trade and Low variation in production and trade Limited institutional capacity Economic losses from natural disasters E-Government & E-Government fostered Good Governance Transparent government Efficient and effective government High quality regulation Dissemination of information and Increased opportunities for citizen engagement on the issues of business, social welfare, environment, and natural disaster 6

7 2. Research Questions (1) 1. Does E-Government Really Matter? It is widely believed that e-government has profound effects on good governance and sustainable development. However, there is not enough empirical evidences on the impacts of e- government, especially for SIDS. Can e-government contribute to better governance and sustainable development in SIDS? 2. If Yes, then What Makes the Differences? Large variations exist in terms of the degree of e-government development and sustainable development among SIDS. Who performs better? And Why? 7

8 3. What Should We Do Next? 2. Research Questions (2) Based on the findings, what would be the next steps for sustainable development through e-government in SIDS? Two Things: - An integrated strategy toward e-government development with continuous political commitment - E-Government Knowledge Platform with international cooperation 8

9 2. DOES E-GOVERNMENT REALLY MATTER? Objective and Method Research Framework Empirical Results 9

10 1. Objective and Method Objective To empirically examine the effects of e-government on good governance and sustainable development in SIDS Sample 22 SIDS in the Pacific and AIMS regions with UN membership Research Methods Statistical analysis: Pooled Regression (Panel) Analysis 10

11 2. Research Framework E-Government Development Economic & Social Development Environment & Disaster Management ICT Infrastructure (1) Economic Development (1) Ability to use E-Gov t (1) Social Development (4) E-Service (1) Environment Management (1) E-Participation (1) Disaster Management (1) Good Governance Government Transparency (1) Government Capability (2) ( ): Number of Factors 11

12 3. Empirical Results (1) Effects of E-Government development on Good governance Variable Control of Corruption Government Effectiveness Regulatory Quality HUMAN CAPITAL *** INFRASTRUCTURE *** *** *** E-SERVICE * *** E-PARTICIPATION(log) * V&A CEPI * ** N * p<0.1, ** p<0.05, ***p<0.01 INFRASTRUCTUREI is found to have significant impacts on all good governance indicators. HUMAN CAPITAL has a positive influence on government transparency while E-SERVICE has positive effects on government effectiveness and regulatory quality. 12

13 Effects of Good Governance on Sustainable Development Variable Economic Development GDP per capita (log) * p<0.1, ** p<0.05, ***p<0.01 Rule of law Social Development Political Stability & Absence of Violence/Terrorism Underfive Mortality Health index Environment Management Ecosystem vitality Disaster Management Vulnerability to natural disaster Government Capability *** *** *** * *** * *** Control of Corruption 3. Empirical Results (2) ** ** *** *** *** N Government capability is shown to affect all sustainable development indicators. Government transparency also shows significant causal relationships with economic and social development. However, it is not found to have any significant effect on the level of environment and disaster management. 13

14 3. Empirical Results (3) Effects of E-Government Development on Sustainable Development Variable HUMAN CAPITAL INFRASTRU CTURE Economic Development GDP per capita (log) Rule of law Social Development Political Stability & Absence of Violence/Terrorism Underfive mortality Health index Environment Management Ecosystem vitality Disaster Management Vulnerability to natural disaster * ** *** *** * *** *** *** *** *** *** E-SERVICES *** ** ** ** E-PARTICI PATION * V&A CEPI *** *** N * p<0.1, ** p<0.05, ***p<0.01 Three components (HCI, TII, and OSI) of EGDI also significantly affect various indicators of sustainable development. 14

15 IN SUM, For the Pacific and AIMS SIDS, e-government development has positive effects on good governance. In particular, the impacts of ICT infrastructure are significant. Good governance has positive effects on sustainable development. E-government development also has positive effects on sustainable development. Not only does the development of e-government have positive and direct effects on sustainable development, but also better governance enhanced by e-government indirectly supports the Pacific and AIMS SIDS to achieve sustainable development in terms of economic and social development, and environment and disaster management. 15

16 3. WHAT MAKES THE DIFFERENCES? Objective and Method Research Framework Analysis Results 16

17 1. Objective and Method Objective To identify key success factors which makes the differences in e- government development among SIDS Sample 22 SIDS in the Pacific and AIMS regions with UN membership Research Methods Literature Review, Panel Interviews, Survey 17

18 2. Research Framework LITERATURE REVIEW ON SUCCESSFUL E-GOVERNMENT DEVELOPMENT E-government strategy Coordinating organization Political commitment Legal framework Financial feasibility Linkage n/t e-gov and national reform plan E-Awareness programs FINDING THE FACTORS THAT MAKE DIFFERENCES National e-government strategy Legal framework Financial feasibility SURVEY AND GROUPING ON THE CURRENT STATUS Survey on the current status Grouping based on survey 18

19 3. Analysis Results (1) Scatter plot of EGDI and GDP per capita using E-Government Survey 2014 data This scatter plot shows positive correlation between GDP per capita and EGDI. 19

20 3. Analysis Results (2) EGDI and Performance in Good Governance and Sustainable Development GDP_ No. of good Group Country EGDI CoC Gov Eff RQ RoL PS&AVT UFM HI EV Vul capita Performance Singapore , Outlier Bahrain , Mauritius , Seychelles , Fiji , Group Maldives , A Tonga , Palau , Samoa* , Cape Verde , Micronesia , Group Kiribati* , B Tuvalu* , Marshall , Islands Nauru Vanuatu* , Timor-Leste* Sao Tome & Principe* Group Solomon , C Islands* Comoros* Guinea Bissau* Papua New Guinea , Average ,

21 3. Analysis Results (3) Scatter plot of EGDI and the number of good performances in good governance and sustainable development This scatter plot shows positive correlation between EGDI and good performances in good governance and sustainable development 21

22 3. Analysis Results (4) What makes the differences of the three groups? Criterion National e-gov t strategy (1) Coordinating organization for e-gov t (1) Outlier Group A Group B Gap b/w (times) Outlier & A A & B Political commitment (1) Legal framework (1) Financial feasibility (1) Linkage b/w e-gov t & gov t reform (1) E-awareness programme (1) Sum (7) Higher performers show higher scores across all the 7 key success factors of e-government development than those of middle/low performers. Bigger gaps between high and low performers lie in the existence of national e-government strategy, legal framework, and financial feasibility. 22

23 In sum, The 22 Pacific and AIMS SIDS can be classified into three different groups: outlier, higher performer, and lower performer groups in terms of their capabilities for e-government development and sustainable development. The assignment of one country into a group is highly related to individual country s e-government development. The higher performers have shown distinguished features in terms of the seven key success factors of e-government development. Bigger gaps between the higher performers and the lower performers lie in the existence of national e-government strategy, legal framework, and financial feasibility among others. 23

24 4. WHAT SHOULD WE DO NEXT? Policy Recommendations 24

25 Samoa Pathway (2014) 111. In this regard, we reaffirm our commitment to support the efforts of small island developing States to gain access, on mutually agreed terms, to appropriate, reliable, affordable, modern and environmentally sound technologies and know-how and to increase connectivity and the use of information and communications technology through improved infrastructure, training and national legislation, as well as public and private sector involvement. 25

26 POLICY RECOMMENDATIONS (1) 1. Continuous Political Commitment to E-government Development E-government development has positive effects on better governance and sustainable development of SIDS. Advancement on e-government is not only a trait of developed countries but also serves as an enabler for sustainable development in developing countries. A successful e-government development requires e-government champions at highest levels. 26

27 POLICY RECOMMENDATIONS (2) 2. The Importance of the Seven Key Success Factors: Towards an integrated and comprehensive e-government development strategy The 7 key success factors makes the differences in e-government development among SIDS. High performers in terms of good governance and sustainable development show higher scores on all 7 key success factors of e-government development. Political Commitment Legal Framework E-awareness Coordinating Body National e-gov t Policy Government Reform Sufficient Budget Establishment & Implementation of Integrated E-government Strategy 27

28 POLICY RECOMMENDATIONS (3) 3. The Importance of ICT/E-government Infrastructures ICT infrastructures have significantly positive effects on good governance and sustainable development of SIDS. However, the current status of ICT infrastructure development in Pacific & AIMS SIDS is much behind of the average of the world. Thus, this research strongly recommends that the Pacific & AIMS SIDS focus their efforts on the establishment of ICT/e-government infrastructures first. The essential ICT/e-government infrastructures include Enterprise Architecture (EA), Broadband Communication Network (BCN), comprehensive government data center, diffused PCs and the internet, and Public Key Infrastructure (PKI). 28

29 POLICY RECOMMENDATIONS (4) E-Government System: Infrastructure and Online Services Infrastructure Projects Government Portal Site & Intranet Enterprise Architecture (EA) Broadband Communication Network (BCN) Resident Registration Property Management (vehicle, real estate, etc.) Business Registration E-Tax (with E-Customs) E-Procurement Comprehensive Government Data Center Diffusion of PC and the Internet Groupware for Public Employees Social Welfare Information Education Information Government Data Sharing Demand on Public Service Policy Making Support Finance Management Public Key Infrastructure (PKI) Weather & Disaster Information (risk analysis, warning, damage estimation) 29

30 POLICY RECOMMENDATIONS (5) 4. International Cooperation and SIDS Knowledge Platform of E- Government Development The differences between high and low performing SIDS are noticeably observed, especially, in terms of the status of national e-government strategy, legal framework, and financial feasibility. Main reasons include lack of expertise and experiences in establishing a comprehensive strategy, and lack of financial resources. The expansion of existing partnership and the launch of new partnership with various international organizations, regional development banks, and individual developed countries to mobilize financial and human resources for e-government development. The establishment of SIDS development knowledge platform for e- government to promote exchanges of knowledge and experiences, share best practices, and also better coordinate allocation of resources. 30

31 THANK YOU! Questions to Young Bum Lee at 31