34147 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized E-Development: From Excitement to Effectiveness Edited by Robert Schware Prepared for the World Summit on the Information Society Tunis, November 2005 Global Information and Communication Technologies Department THE WORLD BANK GROUP Washington, D.C. i E-Development: From Excitement to Efficiency ©2005 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org E-mail: [email protected] All rights reserved This volume is a product of the staff of the International Bank for Reconstruction and Development / The World Bank. The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. 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All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Pub- lisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: [email protected]. ISBN-10: 0-821 3-6442-1 ISBN-13: 978-0-8213-6442-0 eISBN: 0-8213-6443-X DOI: 10.1596/978-0-8213-6442-0 Library of Congress cataloging-in-publication data has been applied for. ii Table of Contents Foreword v Preface vii Acronyms viii Acknowledgments xi Overview: E-Development: From Excitement to Effectiveness Robert Schware xiii Chapter 1 Look Before You Leap: The Bumpy Road to E-Development Isabel Neto, Charles Kenny, Subramaniam Janakiram, Charles Watt 1 Chapter 2 Creating the “Right” Enabling Environment for ICT Boutheina Guermazi, David Satola 23 Chapter 3 E-Strategies for Development Bruno Lanvin 47 Chapter 4 The Elusive Quest for E-Leadership Bruno Lanvin 65 Chapter 5 The Basic Building Blocks of E-Government Randeep Sudan 79 Chapter 6 Beyond Secondary Education Ron Perkinson 101 Chapter 7 The Role of International Cooperation in E-Development Bruno Lanvin, Isabel Neto 127 Annex 1 Regression Results for the Determinants of E-Development Isabel Neto, Charles Kenny, Subramaniam Janakriam 141 Annex 2 Selected List of National E-Strategies 145 References 149 iii E-Development: From Excitement to Efficiency Foreword This volume is not a compendium, but a mosaic. It tells emergence of an “e-agenda” is a sign that the neces- a story. A story of how various countries, institutions sary conditions, attitudes and policies have started to and sectors have reacted to the emergence of infor- coalesce to effectively utilize the potential of ICTs. Con- mation and communication technologies (ICT) and cretely, this means that we are starting to see more probed their way toward turning them into instruments and more e-development projects designed to meet the of development. essential development needs of poor countries and help them compete successfully in the international arena. It shows how, after initial years of enthusiasm, explora- tion and excitement, the “e- development agenda” has It is clear that, to achieve lasting benefits, ICT-enabled progressively matured into a set of policy instruments, development projects must be properly planned and sectoral applications and programmatic approaches. It their implementation accompanied by a careful pro- also provides evidence that e-strategies have acquired cess of monitoring and evaluation. It is equally clear the respectability brought by efficiency. Finally, the vol- that the role of decision makers, especially at the policy ume challenges some of the conventional wisdom re- level (“e-leaders”), is crucial for ensuring that the e- garding how and where ICT can best contribute to im- agenda is solidly rooted in a given nation’s develop- proving the lives of people in developing nations. ment agenda and serves a vision that convinces stake- holders to invest their time, energy, hope and financial This volume is specifically addressed to policy makers, resources. While quick fixes remain appealing, suc- “e-leaders,” international cooperation agencies, the pri- cessful e-development projects always involve good vate sector, and NGOs present at this second phase of preparation, careful design, discipline in execution, and the World Summit on the Information Society (WSIS) timeliness in delivery. and encourages them to focus on the growing economic impact of the ICT sector. As the volume shows, ICT It is our hope that this volume will provide useful knowl- has touched the lives of citizens in developing countries edge and practical guidance on the environment con- in an ever-increasing number of ways. Technology and ducive to successful national e-strategies, e-govern- infrastructure have contributed to empowerment, job ment and e-commerce activities, as well as e-educa- creation and competitiveness. This report gives the tion, e-health and e-finance projects. We look forward reader a sense of being at a turning point where several to pursuing the debates it may generate with interested forces are combining to accelerate change. We have stakeholders at WSIS and beyond. More importantly, reached a critical point where the social benefits of ICT we are eager to continue our work in the field with are becoming apparent and many governments are over- those who share our passion to use ICT as a tool to coming the inertia that previously prevented them from fight poverty and foster development. seizing the development opportunities of ICT. Katherine Sierra The presence of telecommunications lines, computers Vice President or even Internet connectivity, however, are insufficient Infrastructure in and of themselves to accelerate development. The The World Bank v Preface The Reality of E-Opportunities The first phase of the World Summit on the Informa- date, over 100 countries have received at least some tion Society (WSIS) in December 2003, together with World Bank support for information and communica- the preparations for the second phase in 2005, have tion infrastructure reform. An increasing number of highlighted the importance of ICT infrastructure and countries are receiving support for ICT components applications to development. It is now quite com- in traditional investment projects and to design e-gov- mon, and in some ways imperative, for policy makers ernment applications and integrated, large-scale e- to focus on e-education, e-health, e-commerce, e-fi- development projects (e.g., e-Sri Lanka, e-Bharat in nance and e-government as elements of an overall India, e-Ghana, Vietnam ICT Development, and the development strategy. ICT Sector Development Project in Tunisia). Yet the opportunities and promises of e-development This report attempts to distill some of the lessons also entail some major challenges. New risks are be- learned from e-development projects, including a num- ing created by the integration of ICT into the everyday ber undertaken with World Bank support. It avoids operations of businesses, organizations and govern- e-development hype in favor of realistic, down-to-earth ments, requiring policy makers to pay vigilant attention experience drawn from users, producers, regulators, to such issues as business process reform, behavioral leaders and providers of ICT from our member coun- resistance and cyber–security. Given the competition tries, developed and developing alike. We hope that for limited public resources, policy makers must also development agencies and policymakers will find the be ready to ensure taxpayer money spent on e-projects information and analysis presented in this report use- generate adequate economic and social returns. ful in supporting their development efforts and the design of ‘e-projects’. Since the first phase of WSIS, the World Bank has seen increased interest around the world in further Mohsen Khalil opening telecommunication markets, building out ba- Director sic backbone infrastructure, mobilizing ICT invest- Global Information and Communication ment for challenging rural areas and addressing the Technologies Department potential of new Internet-based and other ICT-related The World Bank services. In turn, the World Bank is supporting mem- ber countries to design and implement e-development policies, projects and measurement frameworks. These projects vary from country to country, depend- ing on differences in institutional, legal and techno- logical conditions, as well as development needs. To vii E-Development: From Excitement to Efficiency Acronyms ADR alternative dispute resolution AFDB African Development Bank, Côte