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    eGovernanceinNepal:Prospectsand

    Challenges

    in

    Implementation

    DeepakBahadurDhamiCorvinusUniversityofBudapestHungary

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    Contents

    IntroductionScopeofeGovernance

    Objective

    of

    the

    Thesis

    workLiteratureReviewResearchMethodologyandDataAnalysis

    Finding

    of

    the

    Research

    workResearchAchievementsandRecommendationConclusionandFurtherworks

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    Introduction

    InformationAge:

    ICTtechnologyisthemajordriver

    eGovernance referstotheuseofICTandecommercetoprovide access to government information, communicating

    withinthegovernmentorganization,deliveryofpublicservicesto

    their

    citizens

    and

    business

    partners.

    StrategicObjectives: ServicetothePublic EfficientGovernment

    ICT plays the key role to Create,Access, Circulate, Process,Analyze and Uses the Information. It helps to transformtraditional government by making it accessible, transparent,effectiveandaccountable.

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    IntroductionContinue..

    Governmentmore

    accountable

    by

    making

    its

    operations

    more

    transparentthatwillreducecorruption.

    ICTbasedonlineserviceisthemostdemocraticandunbiasedsystem.It

    offersequal

    opportunity

    to

    all

    races,

    genders

    and

    ethnic

    groups.

    EGovernmentbreaksthebarrierofgeographicaldiversityandmakesthegovernmentserviceshandytoallcitizensatvillageswhoareevennotconnectedbyroadsandopensupmanyopportunities,providedInternet

    connectivityis

    available

    either

    through

    wireless

    communication, fiber

    opticcables,dialups,VSATsorwhateverothermedium.

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    IntroductionContinue..

    eGovernanceMasterPlan(eGMP)byHLCIT2006

    Improvethequalityofpeopleslifewithoutanydiscrimination,transcendingregionalandracialdifferences,andrealizesocioeconomicdevelopmentbybuildingatransparentgovernmentandprovidingvalueadded

    quality

    services

    through

    ICT

    ICT and eGovernance in Nepal: Hope for overcome Poverty andimproveeconomicdevelopment

    MajorProblem: Implementation

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    IntroductionContinue..

    Nepal

    is

    a

    landlocked

    and

    underdeveloped

    countrywithabout29.3millionpeople.

    ItliesbetweenIndiaandChina.

    Nepalis

    characterized

    by

    Diverse

    and

    difficult

    terrain

    includinghighestmountainMountEverest

    PoorLiteracyRateandTechnologicalCulture

    Pooraccess

    of

    Government

    services

    by

    the

    People

    of

    remoteandruralareaofNepal

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    WhereisNepal?

    Capital:Kathmandu

    Language:Nepali

    Government:Republic

    (May

    28,

    2008)

    Population:29.3million(approx)

    Area:1,47,181squarekm

    LiteracyRate:57%(approx)

    GDPPercapita:$470(2009)

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    ScopeofeGovernance

    Citizensarebenefitedfromtheinformation

    ImproveTransparency,Accountabilityandreduce

    CorruptionRuralpovertyalleviationandimprovedservice

    deliverytothecommunity.

    Enhancedproductivity

    and

    Economic

    development

    Moreeffectiveruleoflawwithastrongerlegalsystemandlawenforcement

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    ObjectiveoftheStudy

    Toknow

    the

    current

    status

    of

    egovernance

    in

    Nepal.

    Findingthesocial,economicalandpoliticalaspectofeGovernanceimplementationratherthantechnological.

    To

    find

    out

    the

    factors

    that

    influence

    e

    Governance

    implementation.ListouttheChallengesonitsimplementation.Readinessofgovernmenttoitsimplementation.

    Comparativestudy

    of

    the

    government

    office

    with/withoutimplementation.Tofindoutwhethertheavailableresourceisutilizedor

    not.

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    LiteratureReview

    Definitions:Egovernment is the use of information and communications

    technologies(ICT)totransformthetraditionalgovernmentbymakingitaccessible,transparent,effectiveandaccountable.

    WorldBank,2007EGovernment referstotheusebygovernmentagenciesofinformation

    technologies(suchasWideAreaNetworks,the Internet,andmobilecomputing)thathavetheabilitytotransformrelationswithcitizens,businesses, and other arms of government. These technologies canserveavarietyofdifferentends:betterdeliveryofgovernment services

    tocitizens,

    improved

    interactions

    with

    business

    and

    industry,

    citizen

    empowerment through access to information, or more efficientgovernment management. The resulting benefits can be lesscorruption, increased transparency, greater convenience, revenuegrowth,and/orcostreductions.

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    LiteratureReview

    continue

    An

    e

    government

    is

    a

    complex

    socio

    technical

    system

    inwhichheterogeneousstakeholdersareinteractivelyentangled to fulfill their best interests. Rich anddiverse researches have examined and analyzed

    multiple

    issues

    in

    implementing

    the

    egovernment

    amongdevelopedcountries(Nouretal.,2007).

    Sharing and delivering services to citizens and

    businesses

    for

    the

    purpose

    of

    reducing

    corruption,

    strengtheningaccountability,reducingtimeandcost,andincreasingtransparency.Bhatnagar(2002)

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    LiteratureReview

    continue

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    LiteratureReview

    continue

    The Onion Ring Model

    Source: Heeks(2005)

    13

    The Onion Ring Model

    Source: Heeks(2005)

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    LiteratureReview

    continue

    CategoriesofeGovernance

    Table:eGovernanceCategories

    14

    Category Abbreviation

    Government to Citizen G2C

    Government to Government G2G

    Government to Business G2B

    Government to Employee G2E

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    LiteratureReview

    continue

    WhyeGovernanceforDevelopment? Threebasicchangepotentialsforgoodgovernancefordevelopment:

    Automation

    Informatisation

    Transformation

    fivemainbenefitstogovernancefordevelopment:

    Efficiencygains: Governancethatischeaper

    Governance

    that

    does

    more Governancethatisquicker

    Effectivenessgains: Governancethatworksbetter:

    Governancethatisinnovative

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    LiteratureReview

    continue

    ICTandeGovernmentinHungary

    In2005,

    GSM

    penetration

    was

    86%.

    UNereadinessindexofHungaryis0.6494(30)in2008and0.6315in2010(27).

    ComputerInfrastructure Centraladministration:0.93computer/employee(practicallycomplete) Local

    administration:

    0.89

    computer/employee

    NetworkInfrastructure Central:500institutesongovernmentbackbone,LAN:98%,Internetaccess:

    97% Local

    :Internet

    access:

    88%,

    LAN:

    36%

    HomePages Central:>90% Local:

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    LiteratureReview

    continue

    DevelopmentofeGovernanceinHungary

    InitialPhase:

    Early

    1990s,

    Modernization

    of

    office

    equipment

    and

    exchangingtypewritersforPCs

    DevelopmentPhase:

    In2000,newinstitution,theOfficeoftheGovernmentCommissionerfor

    Informationand

    Communication

    Technology

    (Informatikai

    Kormnybiztossg IKB),wasestablishedinthePrimeMinistersOffice.WithinIKBaseparateorganizationalunit,theDivisionofElectronic

    Government,wasestablishedtocoordinatethedevelopmentofgovernmentinformationsystems

    Bythat

    time,

    several

    ministries

    and

    institutions

    had

    developed

    their

    own

    networksconnectingtheirownareasofresponsibility.

    egovernmentdevelopmentwasfinancedbythePHARE1 programme,becauseofthesubstantialtransittradethathadtobecontrolledaccordingtoEUstandards.

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    LiteratureReview

    continue

    DevelopmentofeGovernanceinHungary

    ImplementationPhase:

    Inmid2003,ElectronicGovernmentCentre(Elektronikuskormnyzatkzpont EKK)wasestablished.SincethenEKKhasbeenresponsibleforthecoordinationofegovernmentdevelopmentatthecentrallevel.

    In

    November

    2004,

    a

    new

    version

    of

    the

    Governmental

    Portal,

    www.magyarorszag.hu,waslaunched,andtheElectronicGovernmentBackbone(ElektronikusKormnyzatiGerinchlzat EKG),

    SinceApril2005,atransactionalgateway,theClientGate(gyflkapu),hasalloweduserstosecurelyidentifythemselvesonlineandgainaccessto

    transactionalegovernment

    services.

    InJuly2005,theActontheFreedomofInformationbyElectronicMeans wasadopted;itsgoalistheestablishmentofthelegalenvironmentrequiredtocreateatransparentdigitalstate.

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    LiteratureReview

    continue

    NeweGovernanceServicesunderimplementationinHungary:

    Institution Eservices

    under

    implementation

    Hungarian National Public Health and MedicalOfficer Service (NTSZ)

    Epidemic reports 24.000 /year will be sent electronically.

    Laboratory test results (30.000 / year) will be sent electronically.

    Employment and Social Affairs Office (FSZH), Declaration of staff number cutbacks over 12 employees at the

    same time.Central Office for Administrative and ElectronicPublic Services (KEKKH)

    Electronic handling of applications for new ID cards.

    Electronic registration in ownership changing of cars.

    Applications for ethical certificate necessary for certain jobs.

    Electronic ethical certificate

    Central Statistical Office Electronic declaration of statistical data (mandatory for businesses)

    Ministry of Foreign Affairs Electronic data transfer from the Hungarian Embassies to theMinistry, when new Passport should be issued for Hungariancitizens living abroad.

    Hungarian Office for Mining and Geology(MBFH)

    Electronic handling of mining permissions

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    LiteratureReview

    continue

    NeweGovernanceServicesunderimplementation

    inHungary:

    Institution Eservicesunderimplementation

    Hungarian Patent Office (MSzH) Electronic forms for patent related queries

    Ministry of Economy and Transport (NFGM) Electronic handling of building permits

    Electronic data collectionNational Consumer Protection Office (NFH) Electronic handling of complaints

    National Health Insurance Company (OEP) Electronic handling of applications for public care attendance

    Educational Authority (OH) Electronic handling of all cases in the competency of theAuthority.

    Central Administration of National PensionInsurance (ONYF)

    Electronic access to personal pension data

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    ResearchMethodologyandDataAnalysis

    Research

    Categories:1. Quantitative Analysis: systematic empirical investigation ofquantitativepropertiesandphenomenaandtheirrelationships.E.g.Survey

    2. Qualitative

    Analysis: aim

    to

    gather

    an

    indepth

    understanding

    of

    humanbehaviorandthereasonsthatgovernsuchbehavior.Thequalitativemethod investigates the why and how of decision making, notjust what, where,when. E.g.Interviews,reviewofrecordsandobservations

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    ResearchMethodologyandDataAnalysis

    DataCollectionTechniques:

    1.PrimaryDataCollection:

    DataSources:

    1. MinistryofFinance2.MinistryofLandandreform3.Ministryof

    Scienceand

    technology

    4.

    Ministry

    of

    General

    administration

    Questionnaire:

    4setsofquestionnaireforsurvey:Type1,2,3and4

    SampleSize:

    MinistryStaff:50

    Citizens:100

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    ResearchMethodologyandDataAnalysis

    DataCollectionTechniques:

    1.SecondaryDataCollection:

    DataSources:

    1. AnnualReportsofgovernmentagenciesandNGOs

    2. Websites

    3. Articles

    4. NationalandInternationalpapers

    5. Reviewingexperts

    views

    and

    interviews

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    ResearchMethodologyandDataAnalysis

    QualitativeDataAnalysis:

    Analysisof StructuredQuestionnaire interview andresearchpapersof

    ViceChairman,HLCIT

    EGovernance

    Expert

    CoordinatorofeGovernanceimplementation

    ComputerEngineer,HLCIT

    FormerMemberSecretary,HLCIT

    Numberof

    Structured

    Questions:

    12

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    ResearchMethodologyandDataAnalysis

    Analysis

    of

    Ministries

    Employee

    Survey:

    25

    Questions Option a Option b Option c Option d

    IT training courses Professionaltraining (61%)

    Hardware andnetworking courses(30%)

    How to usepc (9%)

    IT infrastructurecapabilities

    Networkedcomputers

    (90%)

    Stand alonecomputers (10%)

    Operating systemand applicationsoftware in use

    Windows xp(60%)

    Linux (25%) Ubuantu (5%) Others(10%)

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    ResearchMethodology

    and

    Data

    Analysis

    BudgetAllocationinICTfordifferentMinistries:

    HRDBudget:VeryLow

    Result:Verypoortechnicalhumanresources

    Poorlyutilizedhardwareresources

    Andpropermaintenanceand

    Supportintheministry.

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    ResearchMethodology

    and

    Data

    Analysis

    Analysis

    of

    Citizen

    Survey:

    27

    Questions Option a Option b Option c Option d Option e

    Satisfaction onadministrativeservices

    Normal or below(91%)

    Good or verygood (9%)

    Ways to getadministrative

    services

    Visit governmentoffices (47%)

    Query throughtelephone lines

    (27%)

    Uses internet(18%)

    Postalservices

    (8%)

    Fax

    (0%)

    Administrativeservices to becomputerized

    National IDservices (44%)

    Customersservice (20%)

    Tax service(16%)

    Real Estate(10%)

    Licenseservice(10%)

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    ResearchMethodology

    and

    Data

    Analysis

    28

    Goal of the e-Governance ProjectSteps to improve AdministrativeServices

    Analysis of Citizen Survey:

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    CurrentStatus

    of

    ICT

    and

    eGovernance

    Development

    BriefHistory

    1972:Introductionofcomputerforcensus(IBM1401) 1974:EstablishmentofElectronicDataProcessingCenter 1982:FirstPrivateOverseasInvestmentinsoftwaredevelopmentbyestablishing

    companyforexport,DataSystemsInternational(p)LTD

    1985:Distribution

    of

    Personal

    Computers

    1990:Liberalizationonimportsofequipment 1992:EstablishmentofComputerAssociationofNepal 1996:EstablishmentoftheMinistryofScience&Technology 2000:AnnouncementofthefirstITpolicy,ITPolicy2000

    2001:Establishment

    of

    National

    Information

    Technology

    Center

    (NITC)

    2003:EstablishmentofHighLevelCommissionforInformationTechnology(HLCIT)

    2007:EnactmentofElectronicsTransactionAct

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    KeyInstitutions

    and

    Organizations

    dealing

    with

    ICT

    inNepal

    Ministryof

    Science

    and

    Technology

    (MoST)

    HighLevelCommissionforInformationTechnology(HLCIT)

    NepalInformationTechnologyCenter(NITC)

    Nepal

    Telecommunication

    Authority

    (NTA) InternetServiceProviders'AssociationofNepal(ISPAN)

    NepalTelecom(NT),UnitedTelecomLimited(UTL),SpiceNepalPvt.Ltd.(SNPL)

    NGOsand

    Organizations:

    ENetworkingResearchandDevelopment(ENRD)

    ComputerAssociationofNepal(CAN)

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    DevelopmentofICTInfrastructureand

    Networks

    ProgressinConnectivityacrossthecountryispositive.

    InrecentyearsNepalhasremarkablyimprovedtheICTandTelecommunicationfacilities.

    TelecommunicationandinternetBackbone:

    EastWest

    (900

    km)

    Optical

    fiber

    network

    is

    almost

    completed

    and

    will

    beconnectedtoIndiaviaseveralconnectingpoints. fiberopticproject(115kilometreArnikoHighway)linkingKathmanduto

    Khasa,whichbordersChinaonthenorth,issettocompletetheproject.

    At

    present

    there

    is

    a

    project

    to

    connect,

    via

    very

    small

    aperture

    terminals

    (VSATs),1,000

    Village

    Development

    Committees

    (VDCs)

    out

    of

    Nepals

    3,915

    VDCsinmountainousregionswhereothermodesoftelecommunicationsarenotconsideredtobefeasible.

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    Developmentof

    ICT

    Infrastructure

    and

    Networks

    continue

    TheinstallationofsmallWirelessNetworksinruraland

    remoteareas

    are

    increasing

    using

    Wireless

    Fidelity

    (WiFi)technology.

    By

    the

    end

    of

    2009,

    The

    number

    of

    fixed

    lines

    has

    reached

    to818526 andmorethan6million(6286942)mobiletelephonelinesweredistributedbythesamedate.

    CurrentlyMore

    than

    30 ISPs

    and

    Total

    International

    internetbandwidthusedisintheratioof1:2.25with 52Mbpsand 116Mbpsforuplinkanddownlink

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    Developmentof

    ICT

    Infrastructure

    and

    Networks

    continue

    Service

    Penetration:

    33

    Services Penetration(%)

    FixedLines 2.97

    Mobile 22.86

    Others(LimitedMobility) 0.87

    Internet(Subscriberonly) 2.55

    Note: Projected total population for 2009 is 275, 04,280.

    Although the progress of telecommunication facilities in Nepal

    is good enough but still the rate of use of internet is very low.

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    Development

    of

    ICT

    Infrastructure

    and

    Networks

    continue

    EReadinessIndex:

    34

    Country 2010

    Index

    2008

    Index

    2010

    Ranking

    2008

    Ranking

    Maldives 0.4392 0.4491 92 95Sri Lanka 0.3995 0.4244 111 101

    India 0.3567 0.3814 119 113Pakistan 0.2755 0.3160 134 131Bhutan 0.2598 0.3074 146 134

    Bangladesh 0.3028 0.2936 152 142Nepal 0.2568 0.2725 153 150

    Afghanistan 0.2098 0.2048 168 167

    Region 0.3248 0.3395

    World 0.4406 0.4514

    Nepal 150th position out of 192 Countries in 2008Nepal 153rd position in 2010

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    Developmentof

    ICT

    Education

    Universities:Four(TribhuwanUniversity,Kathmandu

    University,Pokhara

    University,

    and

    PurbanchalUniversity)

    AffiliatedICTColleges:55 (Approx)

    ICT

    training

    Institutes:

    ManyTheyprovideHighereducationandITtraininginNepal.

    AccordingtoCANstatistics,some4,000 ICTgraduatesareproducedeveryyear.Only22.49%oftheITgraduatesare

    engagedin

    real

    ICT

    activities.

    Productionispositivebuthigherpercentageofthemaremigratedforbetteropportunities.

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    GovernmentInitiatives,

    Opportunities

    and

    Achievements

    WiththesupportofKoreaITIndustryPromotionAgency

    (KIPA),

    prepared

    an

    eGovernment

    Master

    Plan

    (EGMP)

    inNovember2006.

    In order to establish the foundation for the investment

    phase

    of

    the

    Master

    Plan,

    theAsian

    Development

    Bank

    (ADB)providedaprojectpreparatorytechnicalassistance(PPTA)totheGovernmentofNepal.

    With

    the

    financial

    and

    technical

    support

    of

    KoreaInternational Cooperation Agency (KOICA), the

    establishment of Government Integrated Data Center(GIDC)hascompleted.

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    GovernmentInitiatives,

    Opportunities

    and

    Achievementscontinue

    About500 Telecentersarealreadyestablished.

    The

    NGO

    sector

    is

    also

    active

    in

    using

    ICT

    for

    development.eNetworking Research and Development (ENRD), another

    NGO, conducts basic computer education and hardwaretraining

    in

    the

    rural

    areas.

    It

    establishes

    wireless

    networks

    in

    ruralvillagesupportedwithapplications like telemedicineandeducation. It is nowworking on connecting more rural areas

    withWiFi.

    FinancialPlan

    to

    Implement

    eGovernance:

    ADBGrant:$25 million

    KoreanGovernment:$30 millionasLoan

    NepalGovernment:

    $9 million 37

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    Findingsfrom

    the

    Research

    Work

    38

    1.Technical Factor: i.* Internet Infrastructure and Bandwidth

    ii.* Privacy and Security Concerns

    iii.* Digital Divide

    iv.* E-readiness

    v.* Supply of Electricity

    2. Education and Citizens Concerns: i)* Insufficient Education and Low ICT Literacy

    ii)* Citizens Expectations prior to e-Governance

    3. Cultural Factors i)* Employee Resistance to Change

    ii)* Corruption

    4. Political Factors i)* Regulations and Legislation

    ii)* Lack of Governments will and stand due to

    Political Instability

    iii)* Governments priority

    iv)* Frequent Changing of Ministries and high level

    officials

    Factors identified that influence the challenges of implementation

    of e-Governance in Nepal:

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    Findingsfrom

    the

    Research

    Work

    39

    5. Institutional Factorsi)* Limited Information Sharing and Transparency

    ii)* Public Sector Weaknesses

    iii)* Lack of training and awareness programs

    6. Human Resource Factori)* Lack of e-Governance Awareness

    ii)* Inadequate skilled human resource Capacity

    7. Financial Factor

    i) * Funding Issues

    ii) * Sustainability

    Factors identified that influence the challenges of implementation

    of e-Governance in Nepal:

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    Strategiesand

    Recommendations

    The successful introduction of eGovernance depends

    largelyon

    the

    first

    applications,

    which

    should

    be

    relatively

    cheap, easy to implement, easy to use, secured and alsoshouldinvolvearelativelyimportantnumberofusers.

    The

    firstversion

    shouldn't

    be

    necessary

    a

    complete

    twowayinteractiveapplication,butextendablelater.

    For example: etaxation in Hungary,which in fiveyearsreachedan83%levelconcerningthetaxdeclarations.

    Thatmeans,theapplicationwasverymuchuserfriendlyand easy to implement. Similarly, It is secure enough todeclaretax.

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    Strategiesand

    Recommendations

    continue

    1. Governmentshould

    change

    their

    focus

    of

    attention

    2. EvaluateEgovernmentMasterPlananddevelopnewVision/Strategies/Leadershipforegovernance

    3. AdvancingICTinfrastructure

    4. GovernmentProcessReengineering

    5. CreateandRetainadequateskilledIThuman

    resource6. IncreasingtrainingtoimproveITliteracyto

    governmentofficials

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    Strategiesand

    Recommendations

    continue

    7. Organizepublic

    awareness

    programs

    on

    ICT

    8. Developamechanismtoquickmonitorandtracktheprogressoftheproject

    9. EnsureReliability,PrivacyandSecurity

    10. PrioritizetheissuesofEnterpriseArchitectureandInteroperability

    11. Implementinggovernmentwebportalsand

    Monitorthe

    functions

    of

    Telecenter

    12. Assistancefromdonorcommunitybyraisingawareness

    13. Develop

    sustainable

    models

    for

    e

    Governance 42

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    Conclusion

    PopularityofICTisincreasingbutstillImplementationisBigProblem

    inNepal

    like

    other

    Underdeveloped

    country.

    The basic foundations like Human Resource, ICT Infrastructure,Literacy, awareness, Commitment, Funds must be improved for theimplementationofeGovernance.

    RuralconnectivityandICTuseintheruralareasshouldbeexpandedthrough

    use

    of

    such

    technologies

    as

    WiFi,

    WiMAX,

    and

    Voice

    Over

    InternetProtocol(VoIP).

    FirstidentifytheSizeandScopeandthenimplementbasedupon thePriority.

    Alwaysthink

    about

    the

    public

    expectations

    and

    their

    participation

    to

    successtheeGovernanceinNepal.

    Conduct further cycle of researchwhere more attention is paid totechnicalaspectofeGovernanceimplementation.

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    References

    Heeks,R.MosteGovernmentforDevelopmentProjectsFail:Howcanrisksbereduced?iGovernmentworkingpaperseries,paperNo.14,2003.

    DanishDada,

    A

    failure

    of

    eGovernment

    in

    developing

    countries:

    A

    Literature

    review,

    The

    ElectronicJournalofInformationSystemsinDevelopingCountries, Vol.26,2006

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    AHandbookforCitizencentriceGovernmentVersion2.1December2007,October2008

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