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Home»Document Library»Information and Communication Technologies (ICT) in Public Expenditure Management (PEM)

Information and Communication Technologies (ICT) in Public Expenditure Management (PEM)

Library
M B Pizarro
1999

Summary

Information and Communications Technology (ICT) has raised many expectations about and within public sector management. It is recognised as a powerful tool for change and is believed to have potential for increasing government accountability, transparency, Public Expenditure Management (PEM), etc. Yet, can ICT substitute for good management and internal expenditure controls? What can it really be used for?

This paper from the Asian Development Bank summarises the opportunities, issues, and concerns of ICT use for public management in a local and international context. Examples are drawn from countries across the world to reveal the achievements, potentials and pitfalls of ICT. ICT plays a positive role in effective governance and public services, yet failures in government policies are the reasons why public service benefits are sometimes wasted. The absence of advanced ICT knowledge poses the risks of costly mistakes or missed opportunities for improvements in service.

Advanced ICT is just a tool. Its adoption should meet a number of criteria, among which are: Fitting the user needs and the objectives of the activity; aiming at an integrated strategy and assuring it is accompanied by improved rules and processes. While ICT develops new skills and confidence, and allows access and control, it also provides new opportunities for corruption. With reference to PEM, ICT can:

  • Help solve the centralisation/decentralisation problem, by making relevant data easily accessible at all government levels; facilitating budget analysis and programming; improving the timeliness of budget information.
  • Lower administrative costs; enable appropriate responses to requests and queries; provide access to all departments and levels of government; foster a better governance capability; and facilitate the government-to-business interface.
  • Help simplify bureaucracy; break down barriers between functional domains; allow public services to be reoriented to solving clients’ problems; develop new forms for citizen participation; make government more accountable.
  • Enable governments and government departments to integrate information; information trading may be used as a public service.

Electronic Services Delivery, as ICT itself, is suitable for both developed and developing countries. The use of internet may provide a better government service and access to innovations in expertise; overcome barriers of language, literacy and localism. Barriers to ICT innovations include overcentralisation of government; defence of organisational boundaries by agency ‘barons’; fragmentation within departments or agencies; a narrowly focussed ‘business case’ for ICT investment. Top-level encouragement is needed to create a risk-taking environment for innovators in public agencies. Other suggestions for policies to promote successful ICT innovations are:

  • Local agencies should encourage innovations related to their communities because they are closer to the public, community groups, and business.
  • A public service business case should be made. The focus of appraisals of public-sector Electronic Service Delivery applications should be broadened so that a priority is given to identifying and meeting the needs of users and stakeholders.
  • Institutional development to achieve changes in PEM systems should be seen as a long-term process. ICTs should be used to create organisational innovation.
  • Private sector support should be gained to facilitate the electronic delivery of public services.
  • A strategy should be established to coordinate ICT policies with related areas such as regionalism, industrial development, employment, privacy, data protection, and regulation of the mass media.
  • An effective PEM of ICT projects needs the establishment of partnerships among citizens, community groups, business enterprises, ICT vendors, and public agencies at all levels and across all functions.

Source

Pizarro, M.B. 1999, 'Information and Communication Technologies (ICT) in Public Expenditure Management (PEM),' in in S. Schiavo-Campo and D. Tommasi (eds.) Managing Government Expenditures, Asian Development Bank, Manila.

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