DIGITAL TRANSFORMATION OF THE PUBLIC SECTOR. Rolf Alter Director Public Governance and Territorial Development

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1 DIGITAL TRANSFORMATION OF THE PUBLIC SECTOR Rolf Alter Director Public Governance and Territorial Development Berlin, 26 January 2017

2 The world goes digital Digital infrastructure & enablers Internet access, connectivity and interoperability Key themes in G20 countries Competitiveness: Competition in the economy, data as strategic asset Trust & Reliability: Privacy & security, consumer/citizen rights, data standards Digital inclusion: Education level, all ages & gender, SMEs, developing countries Measure impact: Sound measurement & indicators: data flows, macroeconomic statistics 2

3 What does it mean for government? % Government expenditure as % of GDP Source: OECD National Accounts Statistics (database). Data for Brazil, India, Indonesia and Ukraine are from the IMF Economic Outlook (April 2015). GOV in OECD countries represents 42% of GDP! Towards greater public sector productivity? The quest for smart government Data-driven decision-making Efficiency and performance New ways of working (innovation) More direct citizen relations 3

4 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% New tools, new challenges Are we reaping the benefits of ICT? Total ICT expenditures as a share of government final consumption expenditures, 2014 Mexico Estonia Chile Finland Czech Republic Note: Data for Germany is for 2011 Sources: OECD Survey of ICT expenditures, ; OECD National Accounts Statistics (database). 0.28% Slovenia Canada Germany Belgium Spain Do governments know what they spend on ICT? Common challenges: Data availability Sub-national level data Insufficient granularity Data not registered as ICT expenditure Lack of comparability Can we talk of ICT benefits not knowing how much we spend? 4

5 The complexities of digital government Managing difficult trade-offs & new risks OECD countries recognising the right of citizens to provide data only once Sometimes: 11% Yes: 44.5% More convenient service delivery demands greater data-sharing, with tangible risks for privacy & security. No: 44.5% Source: OECD Survey on Digital Government Performance, 2014 The rise of predictive policing and the risk of discrimination Use (and abuse) of citizens data Do governments have strategies to manage these risks? 5

6 ICT infrastructure Are our systems resilient? The risk of full connectivity Potential areas of dependency Energy: electricity, gas & oil Financial: Payments, securities transactions Are pension systems ready to deliver under stress? Delivering services reliably Payment system under stress: Crises & natural disasters Air traffic Ground traffic (roads & railroads) Waterways What s our plan B? 6

7 Digital doesn t equal open! Means not necessarily change practices Social media use by elderly people % of young Germans use social media, but just 18% of their elder do Online Services: do we know what citizens really want to access? Digital by default: Digital Inclusion is still an issue! 7Openness and Engagement

8 Getting it right: you need a strategy! OECD Recommendation on Digital Government Strategies Openness and Engagement 1) Openness, transparency and inclusiveness 2) Engagement and participation in a multiactor context in policy making and service delivery 3) Creation of a datadriven culture 4) Protecting privacy and ensuring security Governance and Coordination 5) Leadership and political commitment 6) Coherent use of digital technology across policy areas 7) Effective organizational and governance frameworks to coordinate 8) Strengthen international cooperation with other governments Capacities to Support Implementation 9) Development of clear business cases 10) Reinforced institutional capacities 11) Procurement of digital technologies 12) Legal and regulatory framework 8

9 Delivering Better Government Are we getting there? Evaluation is still a problem Be careful with your indicators! How many public services should be available online? is not the right approach! ICTs open opportunities that we didn t have But we need to capture them! How to make Better Government? What changes for citizens? Better services? More timely provided? More equally accessible? REALISING THE PUBLIC INTEREST 9

10 How can the OECD help you? Digital Government Toolkit Supports the implementation of the OECD Recommendation on Digital Government Strategies Observatory on Public Sector Innovation Knowledge sharing platform What works and what doesn t? Digital Government Indicators Measuring impact Assessing measurement approaches 10

11 DANKE! Rolf Alter Berlin, 26 January 2017