e-Government and e-Governance in Developing Countries

Diplomarbeit von Harald Wolf

Abstract:

The emergence of Information and Communication Technologies (ICT) has launched a global debate (digital or technological revolution) about a paradigm shift from an industrialised towards an Information Society. In the front of this debate lies the assertion that the application of ICT is the impelling factor of transformation which will result in far reaching changes within all parts of the economy, the society and the State. The State plays therefore an important role for this transformation. First, the creation of a "New Economy" which stands for a branch of industry that develops and produces hardware, software and communication equipment and its penetration and application into the whole economy. The emergence of e-buzzwords such as e-commerce or e-business are related to the application of ICT within the economy. Second, after a laissez-faire policy implementation through the State, it has to care for social aspects such as to connect the society to the internet and create a digital literate society. This "second stage" of the Information Society has its expression in the common used catchword "digital divide". Finally, the State itself comes under pressure to apply ICT within government institutions, expressed by the latest catchwords of e-government and e-governance.

Their hype (chiefly technologically determined) can be equated with the emergence of the "New Economy" within the global debate about the Information Society. Emerged from developed countries, e-government and e-governance experience an increasing use in developing countries. Their advocates (i. e. international development organisations) stress the catchwords for the purpose of poverty alleviation, improved living standards and economic growth, in developed and particularly in developing countries. Furthermore, both subjects of the thesis have started up a new tractive force within the debate of public administration reforms. Both can be summarised as ICT-led public administration reform. They are deemed to be an ‘impelling factor of organisational change and transformation’ of governmental institutions. Moreover, the literature concerning both catchwords, is full of positive expectations (i.e. enhance participation, accountability, transparency and overall democracy) and thus, they are seen as a medium to implement and support their theoretical concepts New Public Management (NPM) and Good Governance. Fairly few observations in developed countries stressed the significance of internal structures within governmental institutions which can influence the introduction of ICT in general and the developing countries. However, they are unrecognised within the debate of e-government and e-governance.

Furthermore, the debate of these catchwords contains a lack of concern about and notice of a possible influence of internal structures of public administrations on the implementation of e-government and e-governance regarding developed and especially developing countries. Under this review and in bringing back the e-government/e-governance debate into reality, the central question of this thesis is: which preconditions have to be considered before the implementation of both catchwords in non-Weberian bureaucracies in developing countries? In answering this question, the case of Indonesia is taken as a basis because it is planning to implement an extensive e-government project since the end of 2001. The thesis will reveal that an ICT-led public administration reform through e-government or e-governance will certainly fail, as long as the developed preconditions in the constructed test model are unrecognised. E-government and/or e-governance will reinforce and strengthen existing internal structures within public administrations instead of transform them towards the normative concepts.

In approaching the central question, the thesis is compiled as follows: First, chapter one discusses the catchwords’ theoretical background under consideration of ICT and their general critiques. Then, the catchwords themselves are defined in the scope of the Information Society and their present critiques. Both sections expose the necessary preconditions for the implementation of e-government and e-governance. The preconditions are: The networking effects (totality of integration), the analysis of internal structures of public administrations (micro-level) and the analysis of related actors' interests (macro-level).

From this point of view, chapter two constructs a test model where these more broad preconditions are substantiated and operationalised through the application of several theories. Chapter three applies the test model to the case of Indonesia. On the macro-level the theory of bureaucratic developmental State by Elsenhans is applied with an emphasis on the ICT sector. This section reveals that on the supply side within the ICT sector there are existing tendencies where indigenous and non-indigenous conglomerates regain there position on the economy, namely on the emerging ICT sector and their influence on IBRA (Indonesian Bank Restructuring Agency). Furthermore on the telecommunication sector there exists a duopoly of State-owned companies. Both findings are related to a segmentation of the State Class which favours more indigenous conglomerates instead of non-indigenous as in the pre-Soeharto area.

The demand side of ICT is summarised through the analysis of the stage of networking effects. It includes quantitative indicators from 1997 to 2001 and policy indicators. It emphasises that at the present stage of networking the internet is biased towards an educated high-income group within the Indonesian society. The speed of developing a "connected society" is reduced by weaknesses in policy formulation, implementation and monitoring.

On the micro-level the duality of structure by Giddens and applied by Killian/Wind (1997) is used. This analysis concludes that the mesh of formal and informal structures and the old vision of political thinking lead to a concentration of power, authority and control over resources in the hands of top officials who are part of the State Class. With the emergence of ICT a new powerful group within the public administration can evolve which will challenge existing power and authority holders. Thus, in stabilising and guaranteeing their traditional economic and informational resources, the patrons (top officials) have to co-opt the ICT unit (new powerful group) to obtain control over the access, transfer and selection of information. The thesis finishes with a conclusion that emphasises important questions which should borne in mind before implementing e-government and/or e-governance.

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