CDT & infoDev E-Government Handbook
Introduction
The Phases of E-Government
Transforming Governments
Challenges and Opportunities
Reports and Other Resources

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Phase 3 - TRANSACT: Making government services available online

Governments can go further, by creating websites that allow users to conduct transactions online. Just as the private sector in developing countries is beginning to make use of the Internet to offer e-commerce services, governments will be expected to do the same with their services. Potential cost savings, accountability through information logs and productivity improvements will be important drivers.

A transact website offers a direct link to government services, available at any time. In the past, government services such as land registration or the renewal of ID cards required long waits, confrontation with stifling bureaucracy and the occasional bribe. Innovations such as citizen service kiosks located in shopping centers in Brazil or portable government computers that can be carried into rural pockets of India bring e-government directly to the citizens of of developing nations.

Perhaps the biggest incentive for governments utilizing and providing ICT services is to streamline currently bureaucratic and labor-intensive procedures, which can save money and increase productivity in the long-run. Furthermore, by automating and revamping procedures and processes, especially in revenue-generating areas such as tax and fine collection, governments hope to stem corruption and graft, improving revenues while elevating trust in government at the same time.

A prime example of this effort is the highway toll collection system in Gujarat Province, India, where toll booth operators were allowing dangerously overloaded trucks through for a bribe and pocketing a share of the tolls collected. By investing in an automated and secure tracking system that automatically calculates tolls and fines and then deducts them from the carrier's account. Delays and corruption were significantly minimized and revenues trebled, paying for the technology in one year.

Transact sites can enhance productivity in both the public and private sector by making processes that require government assistance or approval simpler, faster, and cheaper. But because these are several steps (and in some cases, a quantum leap) above publish sites, governments need to be aware that implementation will neither be simple nor cheap. Consequently, transact sites may require significant changes in the country's legal framework and government workforce.

Recommendations for Transact Projects:

  • Target audiences that will have immediate use for the online services.
  • Enlist the support of those who will be using the site and address the concerns of government workers whose role will change as a result of the innovation.
  • Integrate e-government with process reform, streamlining and consolidating processes before putting them online.
  • Recognize that initial investments in transact systems can pay off over time in terms of cost savings and increased revenue.
  • Create a portal for transact services.

Case Example: E-Procurement System, Chile - Revamping offline rules and regulations in order to establish an efficient online procurement system.

Prior to the establishment of portals to conduct government transactions online, the government procurement system in Chile was fragmented and burdened with various, sometimes contradictory regulatory frameworks. In 1998, the government formed the Communications and Information Technology Unit (UTIC) and conferred on it the mandate of coordinating e-government efforts in an attempt to control costs and bring transparency to the system.

The UTIC completely revamped the underlying system of procurement by centralizing all purchasing activities through a central web site. This web site automatically sends emails to private companies registered on the system when contracts come up for bid and takes bids online. Not only has the new system streamlined procurement, it has also created new methods of oversight and accountability. For example, the site includes statistics and other information on past performance of government contractors. http://www.compraschile.cl (in Spanish)

Case study: http://www1.worldbank.org/publicsector/egov/eprocurement_chile.htm

Other Transact Resources:

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