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This is the World Bank's blog on governance and anti-corruption. It aims at providing a space for debate and knowledge sharing on this critical field of development. | Learn more...

Brazil

How can technology in public procurement bring about improved governance?

-Jointly submitted by Kashmira Daruwalla and Tanya Gupta

Experts have identified procurement as one of the areas most prone to corruption in the public sector.  Corruption in public contracting can take many forms, including bribery, deception (fraud) or simple abuse, affects the efficiency of public spending and donors' resources and creates waste.  Corruption is widespread in public procurement and service delivery programs.  In a study in Uganda, Reinikka and Svensson compared central government data on public grants to schools from a survey of school officials to find what fraction of grants were ultimately received by schools.  They found that schools received only 13 percent of central government spending on the program, over the period 1991–1995.  Most schools received nothing and the evidence suggested that most of the funds leaked out of the public system through procurement fraud.

In a different randomized field experiment in Indonesia, Olken found that 24% of the funds for a road project had been stolen, after comparing reported expenditure and actual expenditure. 

Putting Governance before the “E” in E-Government

Taking e-government beyond the same tired e-government applications require innovations such as social networking, web 2.0/3.0 and mobile technology, all of which are democratizing the web in different ways.  The basics of e-government are in the process of moving from a top-down model (e-government strategy, vision, principles, down to agencies, businesses and citizens) to a bottom-up paradigm (citizen-level application managed and developed at the lowest level) with the citizen being the engine of the new e-government. 

When did e-government become stagnant?  Well, not so long ago it wasn’t stagnant.  The anticipation and optimism behind e-government when it first entered the international consciousness was immense, a prodigious vision of sorts.  Led in the US by the Clinton-Gore administration and pursued by other administrations in developed and developing countries alike, e-government became a mantra, a fix-all for the various problems in the public sector.  As e-government implementation matured, the potential for significant failure became clearer. Yet, when successful, e-government projects could make a real difference.  For instance, e-government -a significant part of Singapore’s “Vision of an Intelligent Island” with respect to public services-, helped to improve public sector performance and governance in a manner that positively impacted the daily lives of its citizens.