The payoffs of successful e-development projects are huge and can produce dramatic returns across a range of sectors in rich and poor countries if the risks involved are managed properly, says a World Bank report.
Titled "E-Development: From Excitement to Effectiveness", the report urges countries to learn from past lessons to implement effective projects.
It has been issued in the lead up to the UN World Summit on Information Society to be held in Tunis from 16 to 18 November, and examines the Internet`s record as a tool for development to date, and suggests lessons and policy recommendations to increase the impact and sustainability of e-development projects.
"This report examines what we have learned in terms of minimising the risk of failure and maximising the returns to developing countries from the Internet revolution," says Kathy Sierra, World Bank VP of infrastructure.
Sierra says the report focuses on the enabling environment for e-development, e-government applications and the role of the Internet in lifelong learning. It also emphasises the importance of monitoring and evaluation to successful e-development initiatives.
The World Bank is the largest international donor in the field of ICT for development, with ICT projects in more than 80 countries and an overall portfolio amounting to more than US$3 billion (R19 billion). Part of these funds is spent specifically on e-government initiatives.
"An increasing number of countries are receiving World Bank support for ICT components in traditional investment projects and to design e-government applications and integrated, large-scale e-development projects. These include e-Sri Lanka, e-Bharat in India, e-Ghana, the Vietnam ICT Development project, and the ICT Sector Development Project in Tunisia," says Mohsen Khalil, director of the World Bank Group`s global ICT department.
Huge payoff
Worldwide, introducing advanced ICT applications can be a risky business, unless accompanied by the proper strategies and institutional reforms, says the World Bank. A survey, cited in the report, found that only 40% of companies that adopted online purchasing systems actually saved money when they deployed such systems as part of a change management process.
The proportion of companies that saved money when they introduced such systems without a change management programme was only 3%. The risk is similar when governments mix Internet with bureaucracies.
"The record of e-government projects in both developed and developing countries has been mixed," says Robert Schware, the editor of the report. "While e-government applications can be useful tools for improving governance and the quality of life of citizens, a lot can go wrong along the way."
The World Bank says payoff from successful projects can be huge.
Digital divide
Regarding the use of Internet applications, an analysis of e-commerce development across the world carried out for the report suggests that the "digital divide" is part of the broader "development divide". Use of Internet e-commerce applications as reflected in the number of secure servers in a country is largely determined by income. Roughly 80% of the variation in the number of secure Internet servers between individual countries can be predicted on the basis of gross domestic product per capita alone.
"But the analysis also suggests," Schware says, "improving policies and institutions to encourage investment in ICT applications while extending access to telecommunications infrastructure can dramatically extend use of e-commerce at a given level of income per capita."
He says this underlines the importance of the basic telecommunications reform agenda as well as a broader effort to improve the climate for e-development.
The level of development in a number of supporting infrastructures for ICT applications can have a dramatic impact on roll-out. Weak financial systems, for example, can be a significant drag on the expansion of e-commerce. The general level of development will also be an important determinant of the suitability and sustainability of particular e-development applications, the report says.
"Overall, successful e-development projects are suited to the level of a given country`s development, and relevant to the needs of targeted users," explains Schware. "They integrate infrastructure, applications and skills development, and they are implemented within a broader process of institutional change. Project design is coordinated as part of a larger strategy, recognising the complexity of change and the need for constant monitoring and feedback."
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