Impact of e-Governance on the Lives

of Citizens

Subhash Bhatnagar

Indian Institute of Management Ahmedabad

Advisor NISG

subhash@iimahd.ernet.in

Essence of E-GovernmentE-Government has the following essential components:

Involves process of reform in the way Governments work, share information and deliver services to external and internal clients

Clear intent of greater transparency in functioning

Achieving greater efficiency

On-line delivery of services to citizens/ businesses targeting concrete benefits such as convenient access (time and place) , less transaction time, and lower cost.

Harnesses information technologies such as Wide Area Networks (WAN), Internet , World Wide Web, and mobile computing to connect computerized back ends that enable process reform with front ends that service the citizens.

The resulting benefits could be more transparency, empowerment, greater convenience, less corruption, revenue growth, and cost reduction.

� Study covered 3 State-level (G2C)projects in 12 States

� Land Records: issue of RTC and Mutation

� Property Registration

� Transport: vehicle registration and driver’s license

� Municipal Corporations ULBs in 4 cities

� Cost of Availing Service Measured Directly� Number of trips made for the service� Average waiting time in each trip� Total time elapsed in availing service� Amount paid as bribe to functionaries/ Agents� Quality of Service: Interaction with staff, complaint handling, privacy, accuracy� Quality of Governance: Corruption, accountability, transparency, participation� Preference between manual and computerized systems

Results of a Study of Benefits to Users

from eGovernance Projects

Copyright: IIM, Ahmedabad

Sampling Methodology

� Sample frame and size was selected so that

– Even small impacts could be detected

– Capturing the variability in demand and efficiency of service center and location of user

– Results could be projected to the entire population

� About 16 service delivery points were chosen on the basis of activity levels, geographical spread and development index of catchments

� Respondents were selected randomly from 20 to 30 locations stratified by activity levels and remoteness

� Data collected through structured survey of users of both the manual and computerized system

� Randomly selected sample of 600 to 800 respondents in State level projects

Indian Institute of Management, Ahmedabad

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1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

Delhi Gujarat Haryana HP Orissa Rajasthan TN Uttarakhand WB Kerala MP Punjab

N

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MANUAL

COMPUTERISED

MANUAL SAVING

3.44 1.00

2 OUT OF 11 AT OPTIMAL LEVEL

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1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

Delhi Gujarat Haryana HP Orissa Rajasthan TN Uttarakhand WB MP

MANUAL SAVING

2.77 1.00

5 OUT OF 10 ALMOST AT OPTIMAL LEVEL

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1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

Delhi Gujarat Haryana HP Orissa Rajasthan TN Uttarakhand WB Kerala Punjab

MANUAL SAVING

3.96 1.61

2 OUT OF 11 AT OPTIMAL LEVEL

Procedure not clear to

client

Staff absenteeism

Power breakdown/

system failure

Too many documents required from client

No appointment system

-

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

Delhi Gujarat Haryana HP Orissa Rajasthan TN WB Kerala MP Punjab

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50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

Delhi Gujarat Haryana HP Orissa Rajasthan TN WB Kerala Punjab

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50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

Delhi Gujarat Haryana HP Orissa Rajasthan TN WB MP

WA

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MANUAL

COMPUTERISED

(MINUTES)

MANUAL SAVING

142 40

MANUAL SAVING

148 62

MANUAL SAVING

130 36

Long/badly managed queue

Some counters not

operational

Slow processing at

service center

Power breakdown/ system failure

Too many windows to visit

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10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

Delhi Gujarat Haryana HP Orissa Rajasthan TN Uttarakhand WB Kerala MP Punjab

-

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

Delhi Gujarat Haryana HP Orissa Rajasthan TN Uttarakhand WB Kerala Punjab

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10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

Delhi Gujarat Haryana HP Orissa Rajasthan TN Uttarakhand WB MP

%

P

AY

IN

G

BR

IB

ES

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MANUAL

COMPUTERISED

( ) % USING AGENTS(46)

(17)

(44)

(41)

(61)

(7)(2)

(68)

(5)

(53)(48)

(14)(20)

(14)(21)

MANUAL SAVING

39

Avg Bribe

16

Rs 89

MANUAL SAVING

23.18

Avg. Bribe

6.13

Rs. 1081

MANUAL SAVING

17

Avg. Bribe

4.2

Rs. 184

Functionaries enjoy

extensive discretionary power

Complex process

requiring use of intermediary by client

Project-wise Impact

Land Record Computerization

Property Registration

Transport Offices

NUMBER OF TRIPS

3.2 ���� 2.0 3.9 ���� 2.3 3.4 ���� 2.4

WAITING TIME (MIN)

128 ���� 92 133 ���� 77 120 ���� 90

% PAYING BRIBE

38 ���� 25 23 ���� 19 17 ���� 13

Impact of Computerized System on Key Dimensions

Manual

TRIPS SAVED: 1.1

WAITING TIME SAVED: 42 MINS

REDUCTION IN PROPORTION

PAYING BRIBE: 7%

DIRECT COST SAVING: 69 RS

IMPROVEMENT IN SERVICE

QUALITY SCORE: 1.0

IMPROVEMENT IN GOVERNANCE

SCORE: 0.8

Computerized

Importance of Service Delivery Attributes for the Three Applications

0 1 2 3 4 5

Durability and legibility of certif icates

Level of corruption

Time and effort in availing service

Cost of availing service

Confidentiality and security of data

Complaint handling mechanism

Accuracy of transactions

Accountability of off icers

Queuing system

Dependence on agents

Convenience of w orking hours

Effort in document preparation

Service area facility

Involvement of agents

Treatment of clients

Clarity and simplicity of processes and procedures

Helpfulness of staff

Convenience of location

Design and layout of application forms

Speed and eff iciency in handling of queries

Predictability of outcome

Land Records Property Registration Transport

Copyright: IIM, Ahmedabad

Composite Score (5-point scale) in

Descending OrderLAND RECORD PROPERTY TRANSPORT

Himachal Pradesh

4.40 Himachal Pradesh

4.22 Himachal Pradesh 4.20

Rajasthan 4.17 Uttarakhand 4.04 Rajasthan 3.92

Tamil Nadu 4.00 Tamil Nadu 4.01 Uttarakhand 3.62

Uttarakhand 3.88 Rajasthan 3.91 Delhi 3.60

Gujarat 3.68 Kerala 3.90 Tamil Nadu 3.49

West Bengal 3.26 Gujarat 3.65 Orissa 3.49

Delhi 3.13 Delhi 3.52 Punjab 3.24

Orissa 3.02 Punjab 3.45 West Bengal 3.20

Haryana 2.98 West Bengal 3.42 Haryana 3.14

Orissa 3.31 Gujarat 3.00

Haryana 2.94

Much worsened - 1; No change - 3; Much improved - 5Indian Institute of Management, Ahmedabad

Overall Assessment (State-wise)

1 - Much worsened; 3 - No change; 5 - Much improved

1

3

5

Himachal Pradesh

Rajasthan

UttarakhandTamil Nadu

Kerala

GujaratDelhi

Punjab

West BengalOrissaHaryana

Madhya Pradesh

Key Conclusions� Poor state of manual service delivery

� Limited number of eGovernance projects have delivered concrete benefits

� In all services, the number of trips reduced by 1-2 and waiting time reduced by 20-40%. In some projects reduction in proportion paying bribes is significant.

� Direct cost savings to citizens range from Rs 50-100 in the projects

� Rural poor pay the highest price for current inefficiency and stand to gain the most from well conceived eGovernance

� Regardless of the degree of improvement, overwhelming preference for computerized systems (except West Bengal).

Need to Push Hard on the e-Governance Agenda

� However, variation in project impact across states suggests

� that greater emphasis on design and reengineering is needed.

� need to learn from best practices elsewhere

Need for building capacity to conceptualize and implement projects

ULBs: Issue of New Trade License

Renewal of New Trade License

ULBs: Birth Certificate

Payment of Property Tax and Utility Bills

AP Commercial Tax: Reasons for USE and NON USE of Online Services

Major reasons given by Dealers & CTPs for USING online services:

• Online process is faster

• Online process is more secure

• Fewer errors in online process

• Fewer visits to commercial taxes department

• Online process is more transparent

Major reasons given by dealers (68.4%) and CTPs who were aware but NOT USING online services:

• Do not have skills to use online services

• Online process is prone to errors

• Online process is not secure

• Online process is slow

• Have to submit hard copy to CTD (e-returns)

Copyright: IIM, Ahmedabad

Important Learning for Future Projects

� Need for greater user centricity in design and operations. Long queues is cited as a reason for every service by a large proportion of users.

• Consult all stake holders –employees, users, intermediaries before designing projects

• Awareness of e-delivery is very low amongst users. It is challenging to create awareness in rural areas. Misinformation has to be countered.

• Presence of agents is very dysfunctional. Leads to corruption. Systems must be simplified so that intermediaries are not needed.

• In addition to technology enabled improvements there are a number of other changes that can provide relief to citizens

• Responsiveness and accountability of functionaries is a serious problem-to be addressed through training.

• A portal with computerized end-to-end process including on-line filing, document submission, payment and delivery of digitally signed documents. Allow checking of status and inform procedure for obtaining a service in clear manner.

Enablers of Success

Vision, Conceptualization, Design and Execution

• 20 % Robust Technology

• 35 % BPR

• 40 % Management of Partnerships

Appropriate

Role for

Technology

Process

Reform

Managing

Partnerships

Attention to

Detail in

Execution

Think big, start small, evaluate and scale up

Critical Success Factors

• Strong Political and Administrative Leadership

• Clearly identified goals and benefits• Significant Process Reengineering Required

• Detailed Project Management

• Manage change process-unfreeze, move-refreeze

• Leveraging Public Private Partnership and Making it Work

• Create awareness of how things have changed for clients

Role of Leadership

1. Becoming Champions of e-Government• to achieve change of mindset

• to create an environment for innovation

• to provide adequate resources

2. Removing Barriers• to overcome employee resistance

• to achieve cross-agency coordination

• to create confidence in private sector to partner government

3. Taking Hard Decisions• to take the risks inherent in e-Government

• to achieve effective Government Process Re-engineering

4. Articulating the needs of citizens & businesses

Key Challenges in Moving Ahead

• Designing Projects to Deliver Concrete Value

• Making Projects Sustainable

• Expanding the Coverage to Many Departments

• Providing Services in the Rural Areas

• Enhancing Impacting on Transparency and

Corruption

• Organizing for Scaling Up

Zero Mass Foundation:

Disbursement of Payments in AP

Warangal, Account Opening and

Payments

1.6 million

Customers

6,100 Customer

Service Points

9, 200 Villages

127 Districts

Thank You

State Land Record Property Transport

Manual Computerized Manual Computerized

Manual Computerized

Delhi 381.62 184.05 376.92 389.47 297.28 252.57

Gujarat 57.70 92.44 510.75 326.45 240.60 271.75

Haryana 631.01 477.85 1,197.38 936.67 1,029.95 794.65

HP 28.86 28.10 119.47 57.27 85.31 163.52

Orissa 531.12 621.13 587.22 609.64 264.93 256.68

Rajasthan 316.14 163.49 621.51 799.13 446.27 354.68

Tamil Nadu 246.62 160.40 693.06 562.73 296.55 376.63

Uttarakhand 397.22 190.97 1,781.47 1,443.43 484.20 274.49

West Bengal 287.12 329.37 232.65 235.82 351.01 331.89

MP 272.29 399.02 1,031.82 700.02

Kerala 222.80 199.94

Punjab 494.25 364.59 423.36 371.80

Average 314.97 264.68 621.59 538.65 412.61 345.72

Project-wise Impact on Direct Cost to Users

Significant Process Reforms for

Transparency

• Introduced transparency in data, decisions/actions, rules, and

procedures - Records in public domain, FIFO

• Automates processes to take away discretion - Every application

must be accepted

• Makes decisions traceable (tracking thru audit trails, bio log in)

• Builds accountability - Greater access to information through touch

screens

• Provides documentation to citizens for follow up - documents

reasons for rejection

• Introduces competition amongst delivery channels

• Standardized documentation of comments/objections leads to effective supervision - through comparative indicators

• Centralizes and integrates data for better audit and analysis

Copyright: Subhash Bhatnagar

Source of

Awareness

AMC Civic

Center

CARD e-Seva eProcur

ement

Bhoomi KAVERI

Newspaper 19.38% 25.82% 31.23% 38.85% 17.94% 22.10%

Television 15.08% 18.48% 18.39% 10.24% 10.69% 10.86%

Other Offices 31.08% 16.96% 10.83% 6.04% 4.96% 20.22%

Neighbor 16.00% 30.89% 35.26% 7.09% 52.67% 42.32%

Colleagues 4.92% 7.85% 2.02% 19.16% 11.45% 2.62%

Other sources 13.54% 0 2.27% 18.64% 2.29% 1.87%

Source of Awareness for 6 ProjectsSource of Awareness for 6 Projects