Technology Leapfrog Government Transparency

FreeBalance International Steering Committee January 18, 2011 Doug Hadden VP Products

Agenda
Effects of Globalization Emerging Markets Growth Theory of Technology Leapfrog Government as Platform Inhibitors 4 E-Government Transparency PFM Leapfrog Opportunities Challenges

Globalization
Digital technology Efficient movement of goods Competition for markets, businesses Ever increasing information availability Driving reform

Citizens are Watching You

21st Century dont worry about the *Press Technology in the hands of citizens Millions of untrained auditors Mobile phones game-changer

* Lesson learned in Iran, China, Egypt, Tunisia

Globalization Extended
Internal Forces Internal Forces Globalization External Forces
Global Competition Business Friendliness Corruption Index Infrastructure

Increasing Citizen Expectations Transparency Improve Citizen Services Health, education, infrastructure, prosperity

1. Good Governance

Governments 2. ICT Modernization

Improve Development Outcomes Donor Funding Benchmarks and Indicators Stability and Sustainability

Emerging Markets High Growth

Contribution to World Growth by Region
2007 2008
80 70 60 50 40 30 20 10 0 USA Developed Developed Emerging Europe Asia Economies Other
Source: Mirae Asset

Canada United States

Emerging Markets High Growth GDP Growth, % Share of World Total*

90 80 70 60 50 40 30 20 10 Developed Economies Emerging Economies Emerging Markets responsible for most of the global growth

0 1984 1989 1994 1999 2004 2009

Sources: IMF, The Economist

* At purchasing power parity

Emerging Markets High Growth Share of Global GDP*

70 60
Emerging Markets responsible for most of the global growth

50 40
30 20 10 0

Emerging Economies Developed Economies

1913

1950

2005

2025
* At purchasing power parity

Sources: IMF, The Economist

Emerging Markets High Growth New Normal

Theory of Leapfrog
Legacy technology entrenched in developed countries Bi-pass stages in development Focus on what is important Learn from other countries

Example: Thailand

HIGH 2 Normalized Control of Corruption Index

1
PAPUA NEW GUINEA

-1

UGANDA

-2 LOW -3

204 Countries
GDP Per Capita (PPP, logs)

Higher the control of corruption = higher the country GDP Per Capita

Source: The World Bank * At purchasing power parity

AUSTRALIA

Benefits of Transparency Control of Corruption and GDP*

3 HIGH 2

Benefits of Transparency Voice and Accountability and GDP*

PAPUA NEW GUINEA AUSTRALIA

Normalized Voice and Accountability Index

-1

UGANDA

-2 LOW -3

Higher the government accountability = higher the country GDP Per Capita

207 Countries
GDP Per Capita (PPP, logs)
. Source: The World Bank

* At purchasing power parity

HIGH 2 Normalized Government Effectiveness Index

1
PAPUA NEW GUINEA

-1

UGANDA

-2 LOW -3

Higher the government effectiveness = higher the country GDP Per Capita

209 Countries
GDP Per Capita (PPP, logs)

Source: The World Bank * At purchasing power parity

AUSTRALIA

Benefits of Transparency Government Effectiveness and GDP*

Government as Platform

Data can lead to economic development Infrastructure GPS, Internet How? Resources information Demographics

Why would more developed countries get leapfrogged?

Business Pressure Telecommunications and other monopolies Budget Pressure Affect revenue from selling information Sovereignty Pressure Reluctance to give up national standards Best Practice Pressure Focus on complexity Economic Pressure Less pressure from globalization

E-Government PFM Transparency Leapfrog Opportunities

Budget Transparency
Audited books pdf PDF on-line Budget book printed Budget speech pre-released to press Budget speech in official gazette

Budget presentation in legislature

Budget Transparency cont

. Budget data in XBRL Participatory budgeting Interactive budget execution data Quarterly audited reports PDF

Audit findings PDF

beta version of Government of Timor-Leste transparency portal

articles
subscribe

drill down

Expenditures, Transparency Portal

10 years of data
drill through the chart of accounts

Expenditures, Transparency Portal

export to xls, doc, pdf, html, xml

track commitments

FreeBalance Survey

E-Government PFM Leapfrog Opportunities

Support for international standards GFS/COFOG/IPSAS XBRL & IATI M-Government financial services Freedom of Information

Models of Government Data

Publish Model Social Media
You know what it is for You dont know how it and how it will be used will be used Document Machine readable oriented Community vetted Vetted, edited, Useful and current approved Full access to Old previously underlying data * owned information No access to underlying data

Out of Network

Out of Network vs.

In Network

Challenges

Infrastructure Donor coordination Return on Investment Collaborative culture

Thank You