e-Government and e-Governance in Developing Countries

Wolf, Harald

Leseprobe

ID 5994

Wolf, Harald: e-Government and e-Governance in Developing Countries - Preconditions for

Their Implementation - A Case Study of Indonesia

Hamburg: Diplomica GmbH, 2002

Zugl.: Leipzig, Universität, Diplomarbeit, 2002

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Acknowledgements

First, I would like to thank my parents for their support in the

time of my studies at the University of Leipzig and abroad. Many

thanks to `HW and the Dynamites' and Hong Joo for their

productive suggestions in any form. Thanks to Phil for his

extensive smoking breaks, Andy for his `morning honk' and

Volker for `listening' my music. Many thanks to you during the

extraordinary `hard times', you know! Last but not least, thanks

to Sophie, Gregor, Vera and Skadi.

Table of Contents

Acknowledgements...I

Table of Contents... II

List of Figures ... V

List of Tables...VI

Introduction ... VII

1. E-Government and e-Governance Against the Background of Their

Theoretical Classification ... 1

Theoretical Classification: New Public Management and Governance ... 2

New Public Management ... 2

Reasons for the Adoption of New Public Management ... 2

Objectives of NPM ... 3

Raise the Issue of Internal Structures in Developing Countries ... 5

ICT as Driving Power for Civil Service Reforms in Developing

Countries? ... 8

II.

The Concept of Governance... 10

The Basics... 10

The Emergence of Networking within the Concept through ICT ... 12

Characteristics of Networking... 12

Tendencies so Far ... 13

Critical Issues ... 14

Definitions in the Scope of the Information Society ... 16

Framework of the Information Society ... 17

Technological and Economic Dimensions ... 18

Policy Dimension... 20

II.

E-Government ... 22

Definition and Orientation in the Scope of e-Buzzwords... 22

Reasons for the Adoption of e-Government Concepts ... 25

Objectives of e-Government... 26

Barriers or Challenges: Do Structures Matter?... 27

III

III.

E-Governance... 29

Definition of e-Governance ... 29

Reasons for the Adoption of e-Governance Concepts... 31

Objectives of e-Governance... 31

Barriers or Challenges: Do Structures Matter?... 33

Further Development? A Provisional Result ... 34

2. Preconditions of e-Government/e-Governance for Their

Implementation: Constructing a Test Model ... 38

The Macro-level: The Bureaucratic Developmental State ... 38

The Micro-level: Theory of Structuring ... 40

Networking Effects: Summary of Quantitative Indicators and the Policy

Environment ... 42

Testing the Model: The Case of Indonesia... 46

Why Indonesia?... 46

Polit- and Socio-Economic Conditions in Post Soeharto Era and

Networking Effects ... 48

Reinforcing Economy: Government-Business Networks and ICT... 48

The Government-Business Networks in Indonesia ... 49

The Destruction of Conglomerates by IBRA ... 52

The ICT Sector and Telecommunication Market: Conglomerate's

Impetus and State-owned Duopoly... 56

II.

Unconnected Society: Multiplicity of Divide ... 59

The Development of the Telecommunication Infrastructure... 59

Evaluating Networking Effects... 63

The Public Administration in Indonesia ... 69

Civil Service Reform in Post-Soeharto Era ... 70

Decentralisation Reform ... 70

ICT-led NPM Reform... 71

II.

The Ascendancy of Duality of Structures Within ICT-led Reforms ... 73

Following Old Visions:

Political Thinking in the Public Administration... 74

Backing the System: Formal Structures ... 76

Human Factor: Informal Structures ... 80

Summarising the Test Results... 84

Conclusion ... 86

Appendix ...VI

Bibliography...IX

Eidesstattliche Erklärung ...XXIII

List of Figures

Figure 1-1: Shift of NPM and Governance Concepts Between Industrialised and Developing

Countries... 16

Figure 1-2: Interrelations of Public Administrations with the e-Government Model... 23

Figure 1-3: e-Government and e-Governance... 30

Figure 2-1: Duality of Structure and Micro-Political Analysis... 42

Figure 2-2: Test Model for the Implementation of e-Government/e-Governance Projects ... 45

Figure 3-1: Internet and Telecommunication in Indonesia, 1997-2001... 66

Figure 3-2: Formal Organisation of Departments and the Two Versions of ICT Unit

Implementation... 79

Figure 3-3: Internal Patron-Client Networks with Vertical Relationships and Horizontal

Patron Alliances... 81

Figure 3-4: Duality of Structure and Micro-Political Analysis in Indonesia ... 85

List of Tables

Table 1-1: e-Buzzwords in the Light of Three e-Government Models... 24

Table 1-2: Overview of e-Government and e-Governance Models and Their Theoretical

Background... 36

Table 3-1: Top 300 Conglomerates in Indonesia from 1988 to 1996 ... 51

Table 3-2: Market Shares of State-owned Companies PT Telkom and PT Indosat in the

Telecommunication Market in 2002... 58

Table 3-3: Development Targets According to the Five-year Government Plans ... 60

Table 3-4: Overview of Telecommunication and Information Technology in Indonesia, 1997-

2001 ... 68

VII

Introduction

`ICT is also changing the economic and political structure of domestic institutions, of

states, and the relations between states. Indeed, the most knowledge-based and digitalised

states have acquired a competitive edge. Indeed, knowledge is power'.

(Wolfgang Möllers, Regional Representative,

Konrad-Adenauer-Stiftung, 9

Conference of the

East and Southeast Asia Network for Better

Local Governments (e-Governance Workshop),

Indonesia, 15-19 July 2001)

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 (Stiglitz et al.

2000, 8). 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

VIII

governmental institutions (Schedler 2001a, 44; Gesellschaft für Informatik e.V. 2000, 2).

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 (Reichard 1999; Upadhyaya 2000; Heeks 2001;

OECD 2001a; World Bank 2002c). Fairly few observations in developed countries stressed

the significance of internal structures within governmental institutions which can influence

the introduction of ICT in general (see Killian/Wind 1997; Killian 1999; Killian 2001) and the

developing countries (see Calhoun et al. 1987; Peterson 1998; Berman/Tettey 2001).

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.

Theoretical Classification: New Public Management and Governance

1. E-Government and e-Governance Against the Background of

Their Theoretical Classification

The theoretical concept, which lies behind the catchwords e-government/e-governance,

is managerialism, commonly known as NPM. It emerged in the late 1970s and early 1980s in

Western countries as an answer to the excessive complexity of State activities, financial

shortages of public administrations and can be seen as a general critique towards the

Weberian `ideal-type' of bureaucracy. The purpose of NPM is a reduction of the State's

activities and the reorganisation of State institutions. In developing countries and since the

new Millennium, growing support emerged in developed countries as well - the concept of

Governance was established by the World Bank echoing the concept of NPM. In spite of the

lack in the literature to emphasise it, the purpose of Governance integrates NPM objectives,

that is to say, the reorganisation of State institutions and attaches importance to an efficient,

effective, accountable, transparent, participative and responsible political steering through the

State. Both concepts, NPM and Governance, can be regarded as ones worldwide used,

resistant to their critiques. NPM shifted towards developing countries in the broader form of

the Governance concept, whereas this concept now shifts towards developed countries.

The technologically determined change, from an industrialised society towards a

Information Society

, has additionally reinforced the State and its institutions under pressure

of change, namely as both subject and object of this change. E-government and e-governance

explain it. However, both catchwords are nothing new. Now, despite of old critiques about

information technology within public administrations, which are largely ignored by the

advocates, the intention of e-government and e-governance is to reinforce their underlying

theories. They can be regarded as a new reform debate (`technical renaissance') and as key

tools for the implementation of the theoretical concepts mentioned above. Furthermore, it can

be suggested that e-government and e-governance do not keep what they promise. Chapter

one will reveal, that the analysis of internal structures and power distributions within political-

administrative systems do matter before implementing e-government/e-governance.

Synonyms for the term Information Society are Knowledge Society or Modern Service Society. All expressions

have the same content, goal, and positive connotation in mind.

Theoretical Classification: New Public Management and Governance

A. Theoretical Classification: New Public Management and

Governance

New Public Management

In the late seventies and early eighties NPM emerged first in the United Kingdom and

several municipal governments in the United States (Gruening 2001, 2). Now, it is used as a

generic term for the worldwide movement of administrative reforms and is `one of the most

striking international trends in public administration' (Hood 1991, 3)

. Many countries have

implemented NPM or better used some instruments of NPM to reform their public sector. For

example Germany, a latecomer in NPM implementation, adopted more instruments for

internal reorganisation of public administration (like performance and quality strategies)

NPM is more a concept of existing multiple theoretical and managerial concepts rather a

single theory on the reform of public administrations. In order to discuss NPM, it will be

necessary to analyse the reasons for its emergence and expose the objectives which are

regarded as universal (ibid, 9). Furthermore its critique will be specified in relation to

developing countries to form certain preconditions for its implementation.

Reasons for the Adoption of New Public Management

The implementation of NPM concepts should be understood in the context of

historically grown structures and procedures within public administrations of a modern

bureaucratic State. This means, that the characteristics of a bureaucratic State, explained by

Max Weber in 1920

, came under pressure with the emergence of exogenous reasons which

reveal an inflexible bureaucratic State. Yet, it should be said, that not all reasons emerged in

the same emphasis in all countries, which implemented NPM. However, Minogue identifies a

parallel of pressure for change across different socio-political systems (1998, 19).

The external reasons can be summarised in the social, political and economic change

within Western democracies during the 1980s. First, social change occurs within the change

Hood (1991) observes in addition to NPM four administrative megatrends: slow down or reverse government

growth, privatisation and quasi-privatisation, development of automation, and development of a more

international agenda.

For Germany, the local government association (KGst) established the concept of "Neue Steuerungsmodell"

(NSM) in 1993 which is regarded as an equivalent to NPM. The main objectives of NSM lie in the design of

new managerial structures, output, competition and customer orientation.

The characteristics of the bureaucratic State by Max Weber are: a) clear separation between politics and

administrations; b) the importance of rule of law; c) officials should be recruited on the basis of

qualifications; d) hierarchical arrangements and functional division of tasks and people; e) principle of

motivation should be the sense of public interest; f) resources should belong to the organisation (Minogue

2000, 2; Budäus 1998, 1).

Theoretical Classification: New Public Management and Governance

of values. Individuality, which replaced traditional values of duty and acceptance with

demands of more participation and increased claims toward public administrations, has led to

changed social structures (post materialism). The public administration was seen to be more

than a negotiating and informal operating one (Wollmann 2001, 21). Second, characteristics

of political change identifiable in the form of disenchantment of politics, seems to weaken the

legitimacy of institutions. Political problem solving fails, because politics are stamped by

electoral cycles and power maintenance. Furthermore, the European integration forces States

to deal with the debate of modernisation of public administrations. Finally, in the centre of the

debate is the end of the high growth period of the `Golden Post War Age' in the late 1970s

and early 1980s (Aucoin 1990, 115). As a result of economic constraints a paradigmatic shift

in economic policy from the keynesian welfare State to a liberalisation strategy by capitalistic

States with a neo-liberal paradigm evolved and roughly all public administrations came under

pressure due to capital shortages within public budgets and increased demands for lean public

management. Moreover, public administrations were recognised as a factor of competition for

private investments.

Due to structural inflexibilities, public administrations have increasingly been

challenged to cope with the above mentioned multifaceted changes caused by the social,

economic and political environment. Public administrations were deemed inflexible, because

of a tendency towards bureaucratic centralism, drawn out decision-making and co-ordination

processes, and low levels of transparency within competencies of participation and consents.

In addition, public management follows official orders and interventions. The division of

responsibilities of resources and departments, input orientation, and huge amounts of laws and

regulations led to dysfunctional structures within public administrations. As measured by

economic efficiency and effectiveness internal structures and patterns of behaviour within

public administrations were considered as not any longer functional.

Objectives of NPM

Advocates of NPM regard it as the crucial universal solution to respond to these

overriding changes. NPM is rather a practitioner movement (Borins/Gruening 1998, 14) than

it follows a closed theoretical concept. Many authors stress the appearance of NPM as a

paradigmatic change (Budäus 1998, 1; Günter 2001, 1) within administrative science, but

Gruening (2001) emphasises that the theoretical origins of NPM are not new, but the mix of

those are, which do not establish a new paradigm for behaviour administrative science

Theoretical Classification: New Public Management and Governance

according to Kuhn's definition of paradigm shift. NPM comprises many theoretical

perspectives which cannot entirely mentioned here, but certain directional impacts are

important to illustrate.

There is a broad consensus that NPM is based on two theoretical or

conceptual origins: First, new institutional economics with their applications of public choice,

principal-agent, property rights, and transactions cost theories (Hood 1991, 5). Public choice

approach emphasises the calculation and aggregation of individual preferences for the

allocation of public goods with the help of certain decision-making procedures to organise

different relationships between related actors of public administrations. Thus, the point of

origin is an individual, who will always behave in a rational and profit oriented way. Certain

decision-making procedures are found in the principal-agent approach (avoidance of

hierarchical control and more efficient and effective output steering by contract management),

property rights approach (assumption that with privatisation new incentive structures could be

established which aim to bring about an efficient allocation of resources) and transactions cost

approach (besides the provision of production costs also costs for purchasing information and

measures of co-ordination and control). These theoretical approaches arise from ideological

motives of State cutbacks instead of State reconstruction which is a typical characteristic of

neo-liberal thinking in Anglo-Saxon countries with a traditional residual welfare State.

Another conceptual origin of NPM, which is held as important, is the influence of the so

called managerialism. It suggests, that new methods of management (successfully used in the

private sector) can help to make the management of public administrations more efficient.

Thereby executive managers should have professional management skills with a wide scope

of freedom and uncoupled from political coercion. Related management techniques are

management by objectives (MbO, output control), implementation of Total Quality

Management (TQM), efficient financial controlling, and the introduction of knowledge and

information management.

As a result of the above mentioned theoretical or conceptual origins, NPM embarks on

new strategic objectives within public administrations, which should be achieved with certain

characteristics and instruments of NPM. The objectives of NPM are more customer,

performance and impact, quality and competition orientation, summarised in a broad vision

for the public administration. Schedler (2001b) stresses certain characteristics and instruments

of NPM. The aim of decentralisation of management and organisation structures is to improve

An overview of characteristics of NPM and their theoretical approaches can be found in Gruening (2001, 18).

Theoretical Classification: New Public Management and Governance

the responsibilities of subordinate units and strengthen their autonomy towards superior

authorities. The alleged advantages are reduction of complexity, transparency, and

equalisation of cost and performance. Contract management and global budgets regulate

tasks, competencies, and responsibilities between the political leadership, chief executives and

subordinate units. Performance measurement and benchmark tests serve as quality control in

the same manner as citizen surveys relaying the needs and satisfaction of the public

administration's customers. With NPM business instruments will be implemented to assure

the strategic objectives. For example, new methods of financial accounting (performance,

impact and cost measurements), controlling to support the overall planning, public private

partnerships (co-operations between public and private sectors), new management techniques

and incentive structures, new human resource development and horizontal instead of vertical

reorganisation within public administrations. Furthermore, a clear cut between the role of

politics and public administrations is necessary which could have important impacts on the

political-administrative system. This means, that central competencies of legislative bodies

(councils and parliaments) will be shifted in the direction of public administrations. The

former are responsible for objective targets, the latter for the operative attainment of these

targets.

In sum, NPM can be regarded as a conglomerate of complex business methods,

techniques, and assumptions which are designed to fit in the present situation of modern

bureaucratic States and their political institutions. With regard to a huge number of

investigations about the impacts of NPM reforms in developed countries the question arises

how suitable is NPM for developing countries? It is of particular importance to ask which

environment, conditions or problems come across for the implementation of NPM in

developing countries?

Raise the Issue of Internal Structures in Developing Countries

It is a prevailing opinion that many developing countries have adopted NPM-type

reforms or elements of them to reorganise their public sectors and to deal with similar

problems of an inflexible, opaque, irresponsible and unaccountable State. This movement was

and is promoted by multilateral and bilateral aid donors in the form of coercive policy transfer

or political conditionality (Minogue et al. 1998, 2; Common 1998, 34) as well as internal

forces (Batley 1999, 761) or voluntary transfer for example to defend decisions they have

Theoretical Classification: New Public Management and Governance

already made (e.g. privatisation) (Turner 1998, 41). Critical reflections about NPM reforms in

developed countries have not experienced direct or indirect a debate by advocates of NPM as

Minogue (2000, 15) carries out

"they [management schools in the UK, etc.] ignore or are unaware of, an extensive

critical literature produced by public policy specialists and political scientists"

and in another publication he amplifies it that

"existing commentaries on public management reform in developing countries give little

sign of being aware of the problematic nature of the NPM model" (Minogue 2001, 39).

Many authors (Dolowitz/Marsh 1998; Turner 1998; Polidano et al. 1998; Schick 1998;

Batley 1999; Minogue 2001; Clarke/Wood 2001; McCourt 2001; Polidano 2001) have

investigated the appropriateness of NPM reforms in developing countries. Their joint findings

are that a flexible adaptation of NPM doctrines with regard to cultural variations is a

precondition for a successful implementation. An argument, which corroborates this

assumption is, that NPM evolves in the surrounding of a modern bureaucratic State which not

or less exists in developing countries (Polidano et al. 1998, 286). Furthermore, Elsenhans

(1988) emphasises that differences in socio-cultural traditions are less important rather than

the differences of economic environments. Thus, it is important, that an investigation of

internal structures is a precondition for the implementation of public sector reforms under the

terms of NPM-type reforms. With the help of different approaches this assumption is to be

confirmed.

Schick (1998) emphasises the questionable NPM element of contract management.

Based on the fact of upcoming problems in developed countries he observes that contracting

depends on voluntary, self-interested action which defeats the government's collective

interests. Contracts in public administrations have no exit option when a contract is badly

executed as in the private sphere. Furthermore, contracting contains possible immense

transaction costs (e.g. for negotiating) which could not be affordable for small departments

with small operating budgets. Due to these critical questions concerning contract management

in developed countries he locates internal structures in developing countries, which do not

improve these problems. He addresses two impelling elements in developing countries. First

an informal economy that cannot enforce contract conditions, because of weak property rights

(ibid., 127). Contract management in developed countries depends on a robust market with an

acceptance of rule of law and prescribed rules and an effective monitoring process (e.g.

Theoretical Classification: New Public Management and Governance

formal management control systems). These conditions are absent or do not function properly

in developing countries which deteriorates the implementation of contracting in the public

sector. Polidano (1999, 12) supports this argument with the example of Ghana where political

connections of managers undermine rules of contracts to improve the performance of State-

owned enterprises. Second, the existence of informal State budgets in form of public budgets

(unrealistic and unachievable) and real budgets (facilitating macroeconomic stability) lead to

a persistent budgeting to align disbursements and resources. Corruption, inefficiency, and

widespread evasion of civil service rules and controls are possible outcomes (ibid. 128). It is

obvious that an investigation of internal structures and conditions could help to improve the

implementation of elements of reform strategies. With respect to Schick it raises the

assumption that there is a difference between written rule and constitutional behaviour of

related actors within public administrations. This should be considered for any public sector

reform.

Clarke's and Wood's (2001) conclusion in there analysis of public service reform in

Tanzania and Uganda is similar to Schick's observation. They point out, that the conditions in

developing countries are different to those in developed countries and therefore reforms `have

to be tailored to the local conditions and proceed at a realistic pace' (ibid. 88). They stress

their argument especially on examining decentralisation efforts for management autonomy

and freedom. They find a politically unacceptable and doubtful administrative practice for the

distribution of power downwards hierarchical and centralised structures. As an example, the

establishment of Uganda Revenue Authority to improve revenue collection was made

obsolete after a few years, because of corruption, mismanagement and collapse of

interrelations between the Uganda Revenue Authority and the Ministry of Finance (ibid. 83

ff.). They query reform elements such as contracting out, institutionalisation of executive

agencies, and privatisation, because of the loss of government control. Turner (1998)

examines central-local relations in Asian-Pacific countries. He finds, that there is a tendency

of reluctance to give up decision-making powers to the benefit on local levels. Where it has

happened, local élites were co-opted or strong political control and fiscal dependence were

imposed. Furthermore, there is a widespread and joint pursuance of NPM language but it is

influenced by political structures and institutional frameworks (ibid. 258).

Moreover Minogue et al. (1998) investigate that with regard to the transformation of

government units into quangos (quasi-non-governmental organisations) for decades NPM has

Theoretical Classification: New Public Management and Governance

legitimised the process of privatisation within public sectors. Thus, old habits and objectives

were also transformed such as the objective to build independent pay structures and incentives

to recruit skilled staff or to manage donor-financed projects by best qualified staff instead of

employing them in important positions of State departments. In addition organisational

fragmentation could intensify the difficulties of co-ordinated policies which already exist at

central level. Before using the language of NPM these problems already were facts in

developing countries. There is a significant difference between NPM objectives (like

improvement of managerial performance with the help of decentralisation of State

departments' responsibility and autonomy) and given objectives in that matter.

To resume these examples have illustrated the importance of structural conditions

within developing countries for the implementation of NPM-type reforms. It can be argued

that it acts as a precondition to bring NPM programmes or in general civil service reforms to a

successful level. Besides investigations about important institutional organisations, the

political structure of self-interests within public sectors, that is to say, the identification of

related actors e.g. reform élites is as important to know. Now it is necessary to validate this

precondition in relation to the question what conclusions are being made with regard to the

implementation of ICT in developing countries, especially within the public sector so far? Is

there a significant outcome that would validate the assumption of the importance of internal

structures in implementing civil service reforms?

ICT as Driving Power for Civil Service Reforms in Developing

Countries?

It should be highlighted that e-government and e-governance are closely linked to ICT

and that with the emergence of both definitions a vast majority of publications favour the

possible reorganisation and restructuring potentials of ICT within public sectors. The same

situation is also present in developing countries. The rumoured nature of ICT as changing

factor of structures within public administrations in developing countries and their inflated

objectives are influenced by political and social structures as well as conditions.

Computerisation of public administrations in developing countries do not have the

envisaged positive effects. As Berman/Tettey in the case of African States observe that the

`introduction of computer does not produce anticipated improvements in public

administration' (2001, 1). Computers emerged in Western countries to endorse centralisation

in bureaucracies and reinforce centralised control to reduce uncertainty in organisational

Theoretical Classification: New Public Management and Governance

operations (ibid. 2 ff.). In the context of African countries the development of bureaucratic

institutions differ internally and externally with those of Western countries. Authoritarianism,

clientelism and the bureaucratic culture are conditions where computers were used by senior

officials as symbolic power to establish resistant political and administrative structures.

Calhoun et al. underline this assumption in the context of the potential for microcomputer

technology to decentralise the planning and decision-making process, but `computing does

not so much modify or redistribute power as reinforce the existing power structure' (1987,

370). Peterson (1998) agrees and accentuates the illusion of ICT for reforming organisational

structures, especially when these structures provide rents.

He observes the existence of few

government reformers (saints), many critiques (demons) and inappropriate technicians

(wizards) within African bureaucracies which fail to install information systems. Furthermore,

Heeks (1998, 18) finds, that the implementation of ICT for information systems within public

administrations does `undermine accountability more easily than increasing it'. He concludes,

that for an effective implementation of computer-based information systems, changes in

political, organisational and bureaucratic structures are necessary.

To conclude, there are some examples which emphasise the assumption that ICT is not

a driving power for civil service reforms in developing countries. Furthermore, ICT in

developing countries validates the assumption of the importance of internal structures in

implementing civil service reforms. In the context of public administrations it can be

concluded, that technological determinism should be rejected, because of the fact, that internal

structures, respectively actors with self-interests (maintaining power and authority) within

public sectors could make ICT their `servant'. ICT is more used to intensify existing

conditions in developing countries. The analysis of NPM emphasises, that critiques about the

nature of NPM reforms and the implementation of ICT within public administrations in

developing countries, were largely ignored. The analysis of internal political and social

structures within and outside public administration is a precondition for the implementation of

ICT and civil service reforms.

Grill (2002, 20) claims that mobile phones and computers were recently exploited by the ruling elite in African

States `to organise their deprivation, whereas the mass is still waiting ... for trickle-down effects'.

Rents can be defined as `a person gets a rent if he or she earns an income higher than the minimum that person

would have accepted, the minimum being usually defined as the income in his or her next-best opportunity'

(Khan et al., 2000, 21). Further, Khan et al. (2000) point out that rents are existent in different types, as

monopoly rents, natural resource rent, etc.

Theoretical Classification: New Public Management and Governance

II. The Concept of Governance

The theoretical concept of Governance is present in the international debate since the

end of 1980s. Its emphasis lies on the reform of the role of the State and emerged first in

Third World policy by the World Bank (see World Bank 1989, 1992, 1994, 1997). It

originated from works by Oliver Williamson on corporate governance and governance

structures in companies, whereas Brown (2001) points out that it is a metaphor from politics,

which has experienced a new interpretation in the scope of new institutional economics,

especially within business policy of companies. In short, corporate governance, prevalent in

the business sector, can be defined as new responsibility assignments between and within all

stakeholders (Board of Directors, Management and Stockholders) to ensure shareholder value

of and confidence in the company. Translated into the concept of Governance new roles and

interrelations of the State (public sector management), the Civil Society (NGOs, etc.) and the

business sector must be defined and developed to ensure, in the light of developing countries,

the rule of law and the development of modern democracy. In the middle of the 1990s a

further shift towards developed countries came forward as a result of the Southeast Asian

Crisis in 1997/98 (Wade 1998; ADB 1999a; Ferdinand 2000) and the efforts of the European

Union to reform government structures and roles to meet the challenges of mistrust by the

public and hampered economic growth in Europe (CEC 2001a; CEC/EGT 2000).

With the

emergence of ICT a further development of the Governance debate can be observed, viz. the

concept of networking as a possibility to operationalise the concept of Governance by uniting

its principle elements.

a) The

Basics

International organisations were the precursors in defining the concept of Governance

whereas there is no single definition of Governance (Adam 2001, 272). It was first defined by

the World Bank Group (1989, 60) as a consequence of various governance failures by Sub-

Sahara African States in their efforts to enhance economic development. Thereby, the State,

its agencies and the management of activities, respectively from the content of policies to the

complex nature of the role of the State, were centred within development politics. Even the

World Bank Group changed its Governance definition (see World Bank 1989, 60 and 1994,

XIV). Consequently, the main emphasis of the dimensions of Governance by international

As Löffler (2001) emphasises in the title of her article according to German's public service modernisation

process `Governance: the new generation of modernising the State and public administration'.

Theoretical Classification: New Public Management and Governance

organisations lies in the inclusion of economic objectives (Ferdinand 2000, 11). However, as

Dethier (1999, 5) stresses, Governance `refers to processes that have complex historical,

cultural, social and political determinants' which `requires an inter-disciplinary approach'.

The World Bank Group emphasises four main principles to guarantee the implementation of

Good Governance for successful development (Adam 2000; Hirschmann 1999). Whereas,

especially these principles were already found within the NPM concept and favours the

assumption that NPM objectives are integrated into the Governance concept.

Effective and efficient public sector management

Responsibility and Accountability of controlling decision-making processes

within public sector

Improving the rule of law

Transparent public sector to increase the access to public information and

participation of Civil Society

Although the World Bank Charter prohibits the engagement into the dimension of the

State's politics, the concept of Governance refers to the fundamental model of development

State in form of a reorganisation of the political-administrative system, procedures and

political steering to execute State authority and the inclusion of external decision-making

processes, namely within Civil Societies.

This will be more clear with the definition of Governance by the United Nations

Development Programme (UNDP). Its Governance perception refers to the three sectors State,

market and Civil Society which are linked by interrelations and decision-making processes

(Adam 2000, 273). The definition is more comprehensive than of the World Bank Group

because the UNDP (1997) emphasises economic governance (economic activities and

procedures by the State), political governance (forms of decision-making within State

institutions), administrative governance (political implementation by efficient, responsible,

independent and transparent public services) and systemic governance (sum of all structures

and processes of private and public agents which strengthen the improvement of living

standards of all members of the society).

With the emergence of the Governance concept and as a proven fact of the underlying

corporate governance objective, the sphere of Civil Society has been arisen as an important

`stakeholder' of the Governance debate. In the broader sense it comprises all parts of interest

groups within a society and is definitely separated from the State (i.e. non-State or non-profit

as well as profit organisations or associations). The Civil Society has to be implemented

Theoretical Classification: New Public Management and Governance

within decision-making processes through greater participation to enhance the State's

legitimacy and trust in policy formulations. Furthermore, it is generally assumed that citizens

are given a voice in the process of formulating public policy through the advocacy efforts of

Civil Society organisations (USAID 1998, 15). Moreover in a more political-economic view,

particularly NGOs can be regarded as a useful channel and transformer where resources of

rents could be run to the poor and political power could be shifted to the poor as long as they

do not become a co-opted part or own developed class within political structures of a State

(Elsenhans 1995). This can be validated in the context of NGOs in Indonesia where huge

charitable trusts

were established by former senior officials to squeeze out development aid

and public funds, but lost their connection to the poorest with the objective to allocate rents

by using another way of channelling (Sinaga 1994).

The Emergence of Networking within the Concept through ICT

The present stage of the Governance concept has left the debate on discussing the

Governance principles in detail, but rather emphasises the possibilities of its uniting

implementation through the emergence of network management through ICT. Governance is

the consequence of complex processes of interaction between a huge amount of

interdependent actors. Guided or voluntary, formal or informal co-operations are usually used

as a tool to achieve Governance. This is not new. What is new, is the rising emergence of

networking, as a key tool to specify the above mentioned Governance principles and their

management in the public sector. It comprises the externalisation, reorganisation, automation

and management of these complex processes of interaction within public administrations.

Characteristics of Networking

The analysis of networking, i.e. strategic networks in business sectors (cf. Jansen 2001)

or policy networks in policy science (cf. Klijn et al. 1995) have attracted attention from the

mid 1980s until now. The underlying approaches to explain the benefits and emergence of

institutionalisation and co-ordination are split into two different camps, namely a micro-

economic and social science view. The micro-economic view with its approach of transaction

cost exposes that an efficient choice of institutionalisation and co-ordination is achieved when

both cost of production and transaction (costs of implementation, negotiation, control, etc.)

In Indonesia most NGOs are labelled as `Yayasan' - charitable trusts, that cover agricultural food and

development programmes (DSE 1989, 99).

Theoretical Classification: New Public Management and Governance

and uncertainty are minimised.

Whereas social scientists underscore the importance of

forms of governance and their contribution to individual and organisational actions and

solutions of co-ordination problems (Jansen 2001, 5). The main concern lies on networks,

aroused by increased functional differentiation of the society (Mayntz 1993, 41). Networks

have the capability to achieve a common purpose without coercion but with trust by the co-

operative actors. While Scharpf (1993, 159) stresses the relevance that networks and

hierarchies are interlocked (hierarchies as positive co-ordination and considerateness as

negative co-ordination) , that is to say `network-like relationships are emerging within as well

as across the boundaries of hierarchical structures'. From this broader point of view networks

can be defined as stabilised and more informal organised structures of communication based

on interdependence, collaborative expectations of behaviour, and relationships of trust

between individuals or organisations with the objective to exchange information, co-operative

production of collective goods and formulation of interests (Benz 1995). Thus, actors are

interdependent in achieving their goals, this creates stable relationships with certain rules

which regulate the actors behaviour and generates closeness outside these networks (Kenis

2002).

Tendencies so Far

The drive towards an efficient and effective network management within the

Governance debate can be circumstantiated on different political levels and is predominantly

propelled by the emergence and potential of ICT. The European Commission (2001a) initiated

the White Paper to reform the EU policy-making process in enhancing openness,

accountability and responsibility as well as participation of European citizens. On national

level some States have established new strategic programmes (Finland) or rules of internal

procedures for departments (Germany) to institutionalise new collaborative models for inter-

departmental and overarching networking. The objective is to empower all related actors to

participate on policy development at the preparatory stage in an open, transparent and

accountable matter (Ministry of Finance 2001; Bundesregierung 2000, 2001).

An efficient and effective network management within public administrations could

respond to the previous mentioned challenges and can reduce the often mentioned co-

Cf. various works by Oliver E. Williamson: (1975) Markets and hierarchies: Analysis and antitrust

implications, New York: The Free Press; (1979) Transaction Cost Economics: The Governance of

Contractual Relations, Journal of Law and Economics, 22, 233-261; (1985) The Economic Institutions of

Capitalism, New York: The Free Press.

Theoretical Classification: New Public Management and Governance

operation problem of networks. The emphasis lies on horizontal management, where top-

down levels are absent, effective and efficient use of resources could be attained and

externally oriented internal reorganisation (Juillet/Paquet 2001; Ministry of Finance 2001;

Löffler 2001). Furthermore, rules and regulations of co-operation, problem analysis and

solution finding are created with all involved actors during the decision-making. These actors

are all involved stakeholders, e.g. ministries, experts, interest groups and citizens. The

responsible actor in charge of the networking process, dependent on the respective level of

decision-making, could be a senior official who acts as mediator and ensures an effective use

of all channels of communication.

Government Relationship Management could steer these new forms of networks (Hill

2002). Its orientation towards the concept of Customer Relationship Management is prevalent

in the business sector and would design, develop and enhance relationships to maximise the

purpose of Governance principles within and outside the public sector. As relationships and

their management between public sector and its environment become more important

information-enabled systems must be integrated. The importance of broad access to

information is a necessary prerequisite to reap the full benefits of networking (Juillet/Paquet

2001) otherwise information-asymmetries could hamper efficient co-ordination and give

certain actors competitive edge in information, resulting in power advantages. Co-operation

requires quality and quantity of information and an effective sharing and communication of

information. The implementation of broad information policies is vital in order to gain from

the benefits of the already completed efforts to emphasise networking in legislation.

3. Critical

Issues

There are some crucial disadvantages of networking which have to be mentioned. Buck

(1999) emphasises the importance of networking as a survival strategy. In the context of local

governments in Russia inter-organisational alliances via networking are exploited to reinforce

old structures and interests which restrict changing efforts of different stakeholders.

Furthermore, Scharpf (1993) supports this argument when he points out that network

structures in policy networks strengthen rather than equalise differences between powerful

and weak interest organisations. In democracies policy-makers are subject to pressure from

Networking could consolidate corruption, clientelism, nepotism and patronage (Jansen 2001, 6) as many

examples around the world show, whether in developing or developed countries. Elsenhans observes that

networks between services and agencies must be established as a mechanism in which public administrations

in developing countries `are fragmented and fused in the ruling State-class' (1988, 24).

Ende der Leseprobe aus 117 Seiten - nach oben

Details

Titel

e-Government and e-Governance in Developing Countries

Untertitel

Preconditions for Their Implementation - A Case Study of Indonesia

Autor

Harald Wolf (Autor:in)

Erscheinungsjahr

2002

Seiten

117

Katalognummer

V221441

ISBN (eBook)

9783832459949

ISBN (Buch)

9783838659947

Dateigröße

1020 KB

Sprache

Englisch

Schlagworte

verwaltungsinformatik public management indonesien entwicklungsländer politische ökonomie

Produktsicherheit

Diplom.de

Arbeit zitieren

Harald Wolf (Autor:in)

, 2002, e-Government and e-Governance in Developing Countries, Hamburg, Bedey Media GmbH, https://www.diplom.de/document/221441

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