Implementing E-Government at the Subnational Level...

Implementing E-Government at the Subnational Level: Lessons Learned

from the Brazilian State of Minas Gerais

WORLD BANK E-DEVELOPMENT THEMATIC GROUPBrown Bag Seminar

Washington D.C., 19 July 2005

Antonio Carlos [email protected]

Federative Republic: 26 states and 1 federal district

Population: 186 million (est. 2004)FEDERATIVE REPUBLIC:

26 STATES AND 1 FEDERAL DISTRICT

POPULATION: 186 MILLION (EST. 2004)

National name: República Federativa do Brasil

Area: 3,286,470 sq mi (8,511,965 sq km)

Population: 186 million (2004 est.)

Capital: BrasíliaLargest cities: São Paulo, Rio de Janeiro, Belo

Horizonte, Salvador, Recife, PortoAlegre

Monetary unit: Real

Language: Portuguese

Literacy rate: 80% (2003 est.)

FEDERATIVE REPUBLIC OF BRAZIL

Economic summary: GDP/PPP (2004 est.)

$1.492 trillion; per capita $8,100.

Real growth rate: 5.1%

Inflation: 7.6%

Unemployment: 11.5%

Agriculture: coffee, soybeans, wheat, rice, corn, sugarcane, cocoa, citrus; beef

Labor force: 89 million: services 66%,

agriculture 20%, industry 14%.

Public Debt: 52% of GDP

FEDERATIVE REPUBLIC OF BRAZIL

E-GOVERNMENT AT THE NATIONAL LEVEL

Coordinating E-GOV in the federal government: Ministry of Planning, Budget and Management: www.planejamento.gov.brE-Gov Portals: www.governoeletronico.gov.br, www.e.gov.br, with services and information provided by the Federal Government with LINKS to all the (federated) states portals SERPRO: www.serpro.gov.br, IT public enterprise created in 1964 for the modernization of the public administration (85 % of its business is concentrated on public finances). Also present in governance integrating actions (with the Min. of Planning and others). Affiliated to the Finance Ministry. Qualified as one of the Digital Certification Authorities (AC) in Brazil’s Pubic Key Infrastructure (ICP Brasil).Highlights of Brazil at the national level: 100 % e-voting, on-line income taxes

E-GOVERNMENT AT THE NATIONAL LEVEL

E-voting responsibility: Superior Electoral Court, www.tse.gov.brE-Procurement recently became mandatory for federal government purchases when applicable (some exceptions). Presidential Decree nr 5450/05, June 1, 2005. Federal Government E-procurement Portal: www.comprasnet.gov.br(Ministry of Planning, hosted at SERPRO’s datacenter).Other important initiatives: digital certification, electronic signature (bills in Congress), e-management for official documents, Intranet, integration of networks, open-source software.

100 % ELETRONIC ELECTION FOR PRESIDENT IN 2002

VOTING RESULTS:

Total number of voters: 115,254,113

Date: 29/10/2002

LULA SERRANUMBER OF VOTES…………52,793,364 33,370,739 % VALID VOTES……………. 61.27% 38.73%

ELECTRONIC VOTING

TAXES ON-LINEEUROPEAN ECONOMIC COMMONWEALTH AWARD

The Federal Government Receitanet System is considered as one of the best examples of solutions of Electronic Government in the world. While the number of returns can be considered low compared with the whole country’s population, almost 100% of those that must submit returns did it on-line in 2005. The number would be much higher with a better distribution of the wealth .

INCOME FEDERAL TAXES RETURNS RECEIVED ON-LINE:

2003 - 15.5 MILLION, 2004 – 18.8 MILLION

2005 - 20.5 MILLION (mandatory returns for people with income above R$ 12.696 in 2004 - approximately 4,500 USD)

2005 Tax returns by phone: 31,700

2005 Tax returns in paper forms : 500,000

E-GOVERNMENT – STATE LEVEL

Each State has its own ICT public entity (agency, company, enterprise, institute, autarchy, foundation, office of technology, etc). Most of them operate datacenters, networks and outsource with the telecom private companies for connectivity purposes. Cases of Procergs and Cemig-Infovias (optical ring in Belo Horizonte) that have own infrastructures.

Each State is responsible for providing major services and information. It is at this level that most of the interactions occur: IDs, Motor-vehicles registrations, driver’s licenses, public safety (no Police at the local level), public school, public health, business registration (Juntas Comerciais of each state), state taxes for businesses (ICMS), Car Property Tax, etc. There is no state income tax in Brazil, only federal.

Each State decides what E-Government it will have. There is cooperation with the federal government and among the states but a lot can be improved.


The first entities were created as state-owned companies or centers for data-processing, more than 40 years ago, when the first efforts to “process data”and modernization were introduced - pay-roll, public finance, budgeting and budget execution, school databases, motor-vehicles registration, etc.

With the advent of PCs, the Internet and the spread of IT knowledge among professionals, government agencies started their own initiatives. The strongest presence outside the public IT agencies usually is found in the State Finance Secretariats.

Huge growth of networks since the Telecom sector privatization – which started in 1996 (Mobile) and concluded in 1998 (Telebras system). 22 million land lines in 1996 to 43 million in 2005. Cellular phones: 70 million (80% prepaid) and expected to reach 81 million by Dec/2005 and 92 million by Dec/2006. 25% of the country’s cell phones in Sao Paulo (state).


Rapid creation of web Portals for services and information (since 2000). First web sites in 1995.

Present moment: transition period, no perfect model. PUBLIC-PRIVATE PARTNERSHIPS.

Theoretically all services can be out-sourced by the government – but the State should be able to specify, coordinate, implement, make services sustainable, information updated and keep in pace with technological advances.

Case of Minas Gerais: in 1966 it was created a “Technical Office for Administrative Modernization”, through an agreement with the Federal University, soon transformed in a “Data Processing” Company, Prodemge -www.prodemge.gov.br. Later on it was created a top level IT Board in the State (IT Council - Conselho de Informatica).


Prodemge is the IT state corporation and serves as the data-center for the state and as a source of professionals in support of other agencies. Some secretariats have developed their own data-centers and/or departments of informatics, specially the Finance Secretariat. Lacking of data-bases inter-operability is common. Prodemge also serves as the Internet ISP for the whole state administration (32 Mbps of IP band in 2003) and the NOC is located in its premises. Private telecom companies provide the backbone to the Internet. Optical ring in the state’s capital serving the agencies through Cemig-Infovias.

E-Gov coordination in August 2000: Prodemge’s CEO and State CIO. Currently: Secretariat of Planning and Management. In some states the coordination is executed by the Governor’s Chief of Staff Office, or the at the Secretariat for Human Resources and Administration.

Administrative arrangements vary on each state. The CIO’s role is usually performed by the ICT agency head.


CIO’s Rule and Institutional Set-Up 1

• Chief Information Officer: the translation of CIO doesn’t sound good in the Portuguese spoken in Brazil. However, in Brazil the acronym CIO is widely used in the private sector and its use is growing in the public sector.

• Authority must be vested in statute and strengthened across all the govt. agencies

• Funding and staff must be granted to the State CIO’s office for control and oversight

• Annual report on projects must be required from all agencies• Must be responsible for ICT Master Plan• Must be the responsible authority to approve (and amend) ICT

procurements (must be in conformance with Master Plan)• Must issue Statewide ICT contracts• Must issue Statewide Policies and Guidance• Must have authority over large IT projects• State Funding for ICT projects must be consolidated • CIO’s office must be the focal point to legislature on ICT issues

CIO’s Role and Institutional Set-Up 2

• Must provide leadership role for direction of State ICT program (can be weak or strong – informal authority)

– Agencies follow based on trust and leadership first, formal authority second

– Agencies have a great deal of power and a CIO must work with agencies to effect change despite formal authority

• Ambassador function to national ICT issues (can be a leader on national ICT issues)

• Must provide expertise to Governor, Legislature, Judiciary and municipalities on ICT as it relates to new laws, issues (e.g. telecommunications laws, universal fund, on-line education, etc.) and projects

• Innovator – lead through use of technical innovation in state operations• Must deliver ICT program to build trust• Must have Governor’s support and trust for broad initiatives• Must be part of the senior leadership team along with Human Resources,

Procurement, Financial, Legal, and other Secretaries of State

• (Partially adapted from a Conference made by Ms. Alisoun Moore, Montgomery County CIO)

CIO Authority, ICT Board, E-Gov Committee

• Information and Communications Technology Board– Created by law, decree, statute– Chaired by a Secretary of State or equivalent authority– Membership including corporate, citizen, agency, legislative,

university. judiciary– Look at broad trends and initiatives– Made recommendations for legislation– Meet regularly and actually discuss issues and produce reports

• E-Government Committee or Council– Chaired by CIO– Policy formation and recommendations – Communication and cooperation with Agency ICT Directors – Receive feedback and input from Agencies

• CIO Authority– Issue statewide ICT policies– Budgetary and procurement authority– Agency ICT Directors selected by Agency Secretaries but with

approval or at least recommendation from State CIO– Establish a project management unit to oversee IT projects

CIO’s Role and Institutional Set-Up 3

• State CIO must become the focal point for management and delivery of E-Government program

• Preferably must be housed at the Secretariat for Planning, Budget and Management for budgetary control and alignment with Governor’s vision and leadership

• Build a statewide network, if non-existent• Build portal for services and information• Wherever possible implement public/private

partnerships• Monitor and evaluate• Orient ICT spending to achieve Governor’s vision

AUGUST 2000, LAUNCH OF THE E-GOVERNMENT PROGRAM IN MINAS GERAIS, BRAZIL- FIRST VERSION OF THE MINAS PORTAL

DETRANNET: State Transit Dept. (Motor Vehicles Department) services and information

THE E-PROCUREMENT SYSTEMFIRST ELECTRONIC REVERSE AUCTION

MAY 2002

ELECTRONIC BIDS

REAL TIME AVAILABLE ON-LINE

• Windows 2000 server• Electronic Certification- SSL• IIS - 5.0• ASP• Components for access to legacy

databases in the mainframe - EntireX5.3.1 (Runtime and Dcom Wrapper)

WEB

Operational System & Browser

WEB SERVER

DB Server

Mainframe – Legacy database (suppliers, goods, agencies)

• Adabas 7.1 database• Natural 2.2.8• Entire Broker and RPC

TCP/ IP

TCP/ IP

Firewall Firewall

ODBC

Pentium II 350 mhz 458MB

Pentium II 300 mhz 392MB

IBM 9672 - os/390

ORACLE Database 8.1.5(Reverse e-auctions data)

Web usersCoordinator

State Agencies

May/2002 TECHNOLOGICAL ENVIRONMENT

Suppliers

EE--PROCUREMENTPROCUREMENTCASE OF MINAS GERAIS CASE OF MINAS GERAIS -- BRAZILBRAZIL

Considering that ICT has been contributing for the betterment of administrative processes in Government, facilitating citizen’s access to services and information from the State;Considering that ICT can contribute even more to assure the control, transparency and regularity of the administration acts;Considering that establishing an electronic purchase system may bring substantial savings for the State purchases;Considering worldwide trends and ongoing initiatives in Brazil for an electronic purchase system;Considering the growth of digital certification use to assure higher security to electronic transactions;Considering that bills have been introduced in Congress related to electronic signature,

GOVERNOR’S DECREE 41658 OF MAY/07/01 CREATED A STUDY GROUP FOR THE FOLLOWING REASONS

AND WITH THE FOLLOWING PURPOSE:

EE--PROCUREMENTPROCUREMENT

CASE OF MINAS GERAIS CASE OF MINAS GERAIS -- BRAZILBRAZIL

Art. I – It is created a STUDY GROUP with the mission to present in thirty days a conclusive report with regard to the implementation in the State administration of an electronic procurement system and digital certification.Art. II – The STUDY GROUP will be composed by representatives from the following agencies: I - 1 (one) from the State Attorney’s Office; II - 1 (one) from the Secretariat of Human Resources and Administration; III - 1 (one) from the State of Minas Gerais Information Technology Company; IV - 1 (one) from the Energy Company of Minas Gerais - CEMIG. Remark – The STUDY GROUP works will be presided by the president of the State IT Board (Presidente do Conselho de Informática do Estado de Minas Gerais), Mr. Antonio Carlos Carvalho.

Art. III – The STUDY GROUP works are considered relevant and will not bring any extra remuneration.

May 07, 2001.

GOVERNOR’S DECREE 416558 OF MAY/07/01 CREATED A STUDY GROUP FOR THE FOLLOWING REASONS

AND WITH THE FOLLOWING PURPOSE:



State Law 14167 2002 of Jan/10/2002Turned legal the use of reverse auctions as a public bid option for the acquisitions of goods and services, if they could be clearly defined and described in the note through usual specifications in the market

The reverse auction is a bid to be disputed through written prices proposals and verbal offers during a public session.The auction can be made by utilizing information technology resources, according to the terms of the specific regulations

GOVERNOR’s DECREE 42408/2002 from March/08/2002 - Regulations for the reverse auctions for the acquisitions of goods and services, in the State of Minas Gerais.GOVERNOR’s DECREE 42416 2002 from March/13/2002 – Regulations for the electronic reverse auctions for the acquisitions of goods and services, in the State of Minas Gerais, utilizing information technology resources.Resolution nr 029/2002 from March/20/2002 of the Secretariat for Human Resources and Administration:Created the Supporting Implementation Commision to put into practice the Reverse Auctions with a 12 months mandate. Competencies: advise all state agencies in the implementation of verbal and electronic reverse auctions, generate reports and propose adjustments in the process of implementation; propose aditional regulations and orientations; analyse the need of courses for capacitation; Members: Secretariats of Human Resources and Administration (coordination), Education, Finance, Justice and Human Rights, Planning and General Coordination, Health and Public Safety, State Police, Cemig (Energy company), Copasa (water and sanitation company) and Prodemge.



THE REVERSE E-AUCTION (PREGÃO ELETRÔNICO)

Direct confrontation between suppliers, in a public session, through electronic means over the Internet. Cryptography resources and authentication are employed. Performed by sucessive offers bottom-up classified until the last & lowest price offer and the proclaiment of a winner

LICITANET: www.licitanet.mg.gov.br



RATIONALEWEB based: easy acces and transparency of government purchases over the Internet

Use of already existent databases: elimination of redundancy, savings and information assurance. Time and funds constraints.



CONCLUSIONSADVANTAGES

Lower CostsEasier search for better offersMore variety of productsParticipants records easily accessed (evaluations purposes)Access from anywhereMore competitionLess bureaucracy and more simplicityTransparency guaranteedEnlargement of participation opportunitiesApplication of new technologies



OBJECTIVES

Reducing up to 25% in all purchasing costs.

Reduction of the lengthy processes: from 4 to 6 meses to 15 to 20 days.



CONCLUSIONS

CHALLENGES

Interoperability of diverse systems and platforms.

Cultural change and adoption to the new purchasing system using the Internet, involving colaboration and information sharing among all the state agencies.Awarded with the National Award for Excellence in E-Government, G2B category. Success case of administrative continuity.



CONCLUSIONS

JAN. FEB. MAR. APR. MAY JUN. JUL. AUG.

Interconnected Cities to Prodemge Network 307 307 306 308 307 281 279 280

Prodemge Connected Addresses

Terrestrial (interior) 576 575 569 566 548 563 548 554

Satellite (port) 222 218 217 208 198 164 160 160

Satellite (dedicated) 52 52 52 53 53 51 51 51

Belo Horizonte Terrestrial 355 356 355 282 272 268 266 268

Belo Horizonte OPTICAL 36 36 36 36 35 34 34 34

Total 1241 1237 1229 1145 1106 1080 1059 1067

3270 Terminal

SNA 1.777 1.743 1.711 1.632 1.542 1.499 1.430 1.430

IP (Connected PCs) 7.637 7.786 7.922 7.817 7.963 10.869 10.853 11.022

Printer

SNA 680 661 643 601 534 516 504 509

IP (Connected to PCs) 4.617 4.599 4.697 4.822 4.924 6.164 6.264 5.263

Installed VSATs 216 215 214 214 214 195 184 184

02/09/2002 By PRODEMGE / GTR

2002 NETWORK STATISTICSTHE CHALLENGE

IMPROVE SERVICES, AGGREGATE THE DEMAND, ELIMINATE TAXATION AND REDUCE COSTS

PRODUCTION ENVIRONMENT IN 2002 (AT PRODEMGE):

Hardware2 x IBM Mainframe ( 9672-R55 & 9672-R56 )65 million transactions / month135 running systems41,278 users53 x Servers500 Workstations

SGBD SoftwareIBM DB2OracleSoftware AG AdabasMicrosoft SQL/ServerIBM SQL/DS

MIN@SREDE - HISTORY

DATA AND INTERNET: Prodemge had contracts with State entities. Duelegislation payments included tax to the State Treasury (ICMS).

Voice: Each agency or entity contracted its resources individually.The State didn’t have a Corporate Plan.

Min@sRede is instituted in Minas Gerais in March 2002, as the Network for Data, Voice and Internet. Project was concluded in 2003, in the next state administration. A good case of administrative continuity, regardless politics.THREE DISTINCT BIDDINGS:

Voice: Carriers not ready to voice over IP - 39,000 extension linesInternet: More service provider than Carrier 40 to 155 MbpsData: Due the previous reasons 3,000 addresses

BENEFITS:Three large volume contracts, reducing costs.Lowering money expenditure due to tax exception eliminating vicious cycle.Efficiency on sharing scarce resources by the State. Improving resources planning and management.Provide means to IT expansion to interior due the reduced Telecomcosts.

MIN@SREDE - BIDDINGVOICE:Corporate communication, no additional costs on internal calls, just a monthly fee per extension line. One contractor for local, long distance, cellular and international call services.

DATA:Totally IP based data communication network.One monthly fee for each line speed, no matter the distance from Belo Horizonte, the capital and NOC for this service.INTERNET:A single safe service provided at Prodemge, the NOC for the Data service, where will be the State direct connection to the Internet, improving the possibility to establish strong security measures.The contract beginning at 40 Mbps (actual 32 Mbps) with the possibility of going up to 155 Mbps. Internet backbone providedby private companies.

ETH 10/100

ETH 1000

RS.232

ESCON

IP / SONET

Wan IP

DATANETWORK

IP

ACCESS

NETWORKCLIENT

CENTRALSWITCH

SWITCH

TUNNEL BSC / SDLC

MAINFRAME

SERVERS UNIX / NT

ROUTERS

UCC

INTERNET

FIREWALL

MIN@SREDE INTERCONECTION DIAGRAMMinas Gerais State Network

EXTRANET

The IntraMinas connected all the state agencies allowing information to be safely shared and work-flow initiatives.

The project “Budget Proposal Elaboration over the Internet” was made possible thanks to the IntraMinas, on a secure and expedited way. For the first time in history the Governor could send to the State Assembly a CD with the budget proposal for the next fiscal year, instead of hundreds of paper pages.

RECEIVED THE NATIONAL AWARD FOR EXCELLENCE IN E-GOV, G2G CATEGORY

Digital Inclusion Programs: Sharing the Infrastructure

PUBLIC RECOGNITIONNational Awards for Excellence in E-GOVERNMENT

2002 and 2003

HURDLES 1

• People resist change. Challenge: be an agent of change.• Public funds constraints: scarce, limited unavailable.

Budget execution interruptions or unpredicted changes. Challenge: be creative, aggregate the demand, pool the resources, make cross-cooperation happen.

• Needs are usually bigger than the capacity to face them. Challenge: assess your limits and try to go beyond them. Keep up the spirit against the odds. Look for allies.

• Politics can drag down wonderful initiatives. Challenge: Balance political interference with political support.

• Unmotivated public servants; low capacity; illiteracy. Bad or corrupted practices. Challenge: find talents, make them work well, provide incentives, retain them.

HURDLES 2• Basic infrastructure: electricity, adequate buildings

with heating and/or air-conditioning, furniture, networks. Challenge: build infrastructure and maintain.

• Logistics for maintenance and repairs. Challenge: Minimum of interruptions and costs.

• Telecommunications, connectivity.• Legacy systems and data-bases inter-operability

difficulties. Keep what is good while you migrate.• Capacity, training (the biggest challenge is not the

technology but the people who will use it).• Employees retention, payroll policy, system for

incentives. • Debts with vendors from past administrations.

LESSONS LEARNED• Political support from the top is essential, as it is to communicate

with colleagues in government and with the public.• ICT should be well positioned in the government administration.• Communication to make people (and the public servants) know

what is available on the e-gov administration. Conduct research with the users.

• If not existent, it should be established an ICT Board or E-GOV• Plans and implementation should observe data security with care.• Investments in technology can be wasted if not accompanied by

change management.• Partnerships with the private sector, universities and NGOs (the

QUAD concept) are essential.• Keep the legacy systems while implementing new ones. Migration

of databases can take longer than expected and new applications may pose several problems.

• If it is a new administration, evaluate what has been done before –there is always something good. Keep it and don’t waste precious time trying to reinvent the wheel or putting a new label.

LESSONS LEARNED• Consolidate redundant and overlapping investments. Avoid

competition among the agencies (easy to say but very hard to execute – a human and political problem, not technical). Aggregate the purchase demands of software and hardware always when possible.

• Integrate networks to reduce expenses and for better management,maintenance and security.

• Invest in web-based systems and applications.• Invest in open-source software, but avoiding ideologically driven

movements. Technical standards should prevail.• Choose content for the govt. sites according to the citizens needs.

Listen to them, ask opinions, conduct surveys.• Investments in E-GOV should be accompanied by investments for

digital inclusion.• E-Government will not solve all the problems but can support all

the good initiatives.• Look for talents within the government. There are lots of good

people who are public employees, expecting for a person to lead them.

LESSONS LEARNED• Bring to the workforce young University students with innovative

ideas. But monitor well what they are doing.• Applications developed (and installed) at home by the work-force

MUST be documented to avoid problems.• Always monitor the Internet traffic. Adjust the IP band always

when necessary.• Public recognition of relevant projects and teams is very

important as an incentive tool. The rules for awards should be very clear and the jurors have excellent reputation.

• Cross-cooperation is very useful (the ABEP’s case).• Listen and talk to the private sector.• ICT Budget execution inside a government administration if not

centralized should be carefully monitored.• Public bids’ specifications must be very clear and constantly

updated because of technological changes and improvements.• Be careful when buying software or hardware if the infra-

structure hurdles have not been addressed yet: before the softwares can be used you may end-up having to pay for technological up-grades

• Always have a holistic view

A VISION TO THE FUTURE• Voice over IP on all government networks.• Wireless technologies playing a bigger role.• Partnerships with Mobile Operators for access in public areas (innovative case

in Montgomery County).• Use of PDAs and other devices instead of PCs and lap-tops.• Pooling of resources will have to happen because the needs will grow more

than the capacity to face them.• Much larger (almost infinite) bandwidth with fiber optics networks and new

technologies: no switches, databases and applications on the web.• Open-source trend becoming a new (and profitable) business model,

encompassed by the capitalism.• More security problems. Less privacy. More related expenses and problems.• Semantic web and artificial intelligence in support of E-GOV.• E-GOV will be treated more and more with social and management views

together with the technical expertise. It has been proven that the technology use per se DOES NOT solve problems.

• E-Leaders will attend specialization courses and learning programs to better serve their government and the people. Universities and Institutions must adapt themselves to provide adequate content to train and improve CIO’s abilities.

MAKE A DIFFERENCE!

MAKE IT HAPPEN!

Antonio [email protected]

Implementing E-Government at the Subnational Level...

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