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Copyright
by
Saretta Ramdial
2007
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E-Government Development and Implementation Patterns in Mexico
by
Saretta Ramdial, B.A.
Report
Presented to the Faculty of the Graduate School
of The University of Texas at Austin
in Partial Fulfillment
of the Requirements
for the Degree of
Master of Public Affairs
Master of Arts
The University of Texas at Austin
May 2007
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E-Government Development and Implementation Patterns in Mexico
APPROVED BY
SUPERVISING COMMITTEE:
__________________________
Joseph Straubhaar
__________________________
Gary Chapman
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Acknowledgements
I would like to thank all my professors at the LBJ School who helped and advised
me through tough math problems, seemingly intractable policy case studies, and
everything in between. I am grateful to my professional report readers, Professor Joe
Straubhaar and Professor Gary Chapman, for their advice and guidance on my year-long
endeavor. Professor Sherri Greenberg was instrumental in my decision to focus on e-
government and I thank her for giving me the opportunity to work with her. I am
especially grateful to Professor Gary Chapman for his encouragement and support
throughout my career at the LBJ School and in my job search. Finally, I am indebted to
my classmates who brought true joy and laughter to all of my experiences at the LBJ
School.
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Abstract
E-Government Development and Implementation Patterns in Mexico
by
Saretta Ramdial, M.P.Aff, M.A.
The University of Texas at Austin, 2007
SUPERVISOR: Joseph Straubhaar
E-government in Mexico continues to be a contentious policy topic in terms of
development, implementation, funding, leadership, and oversight. Much of the research
focus has been on the implementation aspect of new programs, such as the E-Mexico
project, rather than on the underlying organizational motivations and norms often
founded in political, cultural, and bureaucratic history and attributes. In the course of e-
government development in Mexico, policy makers and e-government leaders have
arguably overlooked some of the most integral factors necessary for increased usage and
service levels. These include a lack of political will to link backend systems that could
spur interagency horizontal integration, a failure to address the extremely limited
competition in the telecommunications sector that maintains high service rates despite
privatization, and a lack of investment in the domestic information technology sector that
limits work opportunities for Mexican students and professionals. Additionally, the
foundation for e-government in Mexico is weak because formal measures such aslegislation and funding models have not adapted to digital services and new information
systems. In any e-government initiative, organizational culture and history must be
considered in planning e-government programs and policy makers must acknowledge that
e-government is a potential tool for reform, but does not cause government reform.
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Table of Contents
Chapter 1. Introduction to E-Government in Mexico....................................................... 1
Chapter 2. The Definition and the Importance of E-Government ..................................... 3
Phases of E-Government ..................................................................................... 5
Can E-Government Transform the Public Sector?................................................ 7
Chapter 3. Barriers and Strategies to E-Government Development................................ 11
The Two-Systems Problem ............................................................................ 11
Factions within Bureaucracy.............................................................................. 13
Funding Constraints .......................................................................................... 14
Planning Conflicts, Outsourcing, and Domestic IT Capabilities ......................... 17
Leadership......................................................................................................... 20
Corruption......................................................................................................... 22
Chapter 4. E-Government Development and Implementation in Mexico ....................... 29
Key Players in Mexicos E-Government System................................................ 30
Challenges to E-Government Implementation in Mexico................................... 33
Chapter 5. The E-Mexico Project............................................................................... 41
Controversial Factors in the E-Mexico Project................................................... 42
Chapter 6. New Directions and Policy Recommendations ............................................. 52
New Directions.................................................................................................. 52
Policy Recommendations .................................................................................. 53
Bibliography................................................................................................................. 63
VITA............................................................................................................................ 67
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Chapter 1. Introduction to E-Government in Mexico
E-government research studies have increased tremendously in the past few years
with the evolution of government information technology (IT) plans, international
organization participation and funding, and the general trend to integrate information and
communications technology (ICT) into government reform efforts. The overall trend is to
compare programs on municipal, state, national, and international levels based on a set of
criteria often including the number of online applications, facility of use for online
services, and feedback times for Internet inquiries to name just a few. However, researchon the development and implementation of e-government programs based on historical,
cultural, and political norms is lacking due to the disassociation of ICT integration in
government service provision and government reform in general.
Many countries have jumped on the e-government bandwagon so to speak before
actually planning and developing a roadmap for transforming the public sector through a
government reform process. Trends to develop e-government portals and establish online
service provision simply follow success stories in Asia, Europe, and North America.
However, the results vary significantly in these regions due to the capacity of the public
sector to incorporate new ICT into already established practices and routines. Moreover,
the link between institutional capacity and social and political norms often goes unstudied
and unevaluated leading to expensive projects that yield below average and unanticipated
results.
Given this scenario, it is essential for researchers, public administrators, and
politicians to understand and acknowledge the connection between culture and political
history and the capacity of e-government to genuinely influence public sector
transformation. Although ICT can undoubtedly be used as a mechanism for change, it is
limited to the level of institutional capacity within a given government. Thus, public
officials in many instances must be retrained and re-socialized in order to fully
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incorporate ICT into their daily routines and processes. Social and political hurdles that
historically inhibit change must be overcome to facilitate the success and evolution of
ICT and e-government programs.
Due to Mexicos efforts to develop a countrywide e-government system in the
past ten years and its colonial history, the country provides insight into the problems that
arise during a period of great technological integration for many less developed countries.
For example, institutionalized corruption and political patronage among public officials
and politicians in the past has encouraged a deep mistrust among citizens towards
government and influences how the public interacts with government officials to this day.
Hence, a predisposition to focus on government-to-citizen (G2C) services in Mexico at
the onset of e-government planning comes as no surprise. Arguably, this tendency
undermines economic development efforts and the countrys ability to compete in the
global market. As a result, the governments response to the legacy of political patronage
and corruption has limited the impact of e-government efforts in Internet commerce and
stifled the growth of IT firms and e-businesses.
To overcome these challenges, common to many countries, policymakers must
identify the barriers to e-government development and implementation in their countries
and focus on solutions that are most appropriate given the political and historical reality
of their countries. Presenting Mexicos story of e-government development, which spans
all levels of government, allows for an analysis of programs on multiple levels including
government-to-government (G2G) and government-to-business (G2B) as well as
government-to-citizen (G2C). A focus on the e-Mexico program, specifically designed to
increase access to information among citizens, lays out the main issues in administering
and evaluating an ambitious nationwide e-government program in a country as large and
diverse as Mexico. Understanding e-Mexicos strengths and weaknesses gives
researchers perspective into the systemic problems found in many Latin American e-
government programs. Policy recommendations created to address these dynamic issues
must be realistic and take into account the historical and political factors inherent in many
Latin American political system.
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Chapter 2. The Definition and the Importance of E-
Government
Prior to describing the benefits of e-government it is important to define the term
itself and understand the different phases involved in e-government development. There
are a multitude of definitions from different governments, non-governmental
organizations (NGOs), non-profit groups, private firms, and researchers. In this
discussion, the World Banks (WB) definition will be used because it is broad in nature
but reveals the transformative process of e-government. It is as follows:
E-Government refers to the use by government agencies of information
technologies (such as Wide Area Networks, the Internet, and mobile computing)that have the ability to transform relations with citizens, businesses, and otherarms of government.1
There are numerous technologies that are used for different purposes depending
on the country and the goal of the program. For most countries, the overarching theme for
e-government programs is improving service delivery for citizens. However, many
countries also consider e-government as a method for improving government interactions
with businesses and industries, empowering citizens with information, and enhancing
efficiencies within the public sector in terms of management.2
Many governments also espouse certain benefits resulting from e-government
programs such as more transparent processes, a decrease in corruption, increased
convenience for citizens and public sector employees, revenue growth, and a reduction in
costs compared to traditional service delivery systems.3 However, the benefits from e-
government investment are not set in stone. There are no guarantees that e-government
will decrease costs, increase revenue, and accomplish all of the aforementioned results. In
fact, many government agencies and countries find that e-government development and
implementation requires long-term investments in infrastructure, training, and community
awareness and marketing programs. It requires long-term vision because it is not simply
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linked to technological advances but also to attitudinal and normative changes in how
people work, interact with one another, and receive and provide services.
E-government is important for social and economic development because it
allows people to access information, communicate with each other, and provide
knowledge and information to a broad community. An increase in communication and
information between individuals allows for collaboration and networking opportunities
among people who are otherwise disenfranchised from networks or simply do not have
access to information. Many e-government programs encompass every aspect of
government service provision such as education, healthcare, and social security
programs. Thus, every citizen is affected, though not always equally, by the
governments ability to develop and implement e-government.
E-government not only empowers individuals but also small and medium-sized
businesses (SMEs) that would otherwise have limited access to the market. E-government
and the Internet allow SMEs to develop web-based businesses and provide goods and
services globally thus enhancing their ability to carve out niche markets. Additionally,
business leaders and entrepreneurs can extract as well as provide information to their
counterparts increasing knowledge networks and broadening their markets. Moreover,
businesses can improve their own processes by interacting with other firms through email
or blogs thus increasing competition between firms. Historically in Mexico, SMEs have
lower access to the Internet hence they are less likely to come into contact with e-
government programs that can enhance their businesses.4
The ability of individuals and businesses to take advantage of e-government
programs depends on the marketing of certain programs, the facility of use for the
programs, and a certain level of training in using technology. However, underlying this
capacity to use e-government are commonly accepted business, government, social, andcommunication practices that can inhibit uptake of new programs. For example,
individuals and SMEs with limited access to the Internet in the past may not be able to
conceptualize new types of communication and information gathering technologies.
Someone who is accustomed to waiting in line at a government office to receive his or
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her pension may be wary of receiving an online pension check. Other obstacles linked to
cultures and values include a fear of providing personal information online that may be
misused by public officials.
Phases of E-Government5
E-government programs are often categorized into different phases of
development. Programs are likely to develop in ways that reflect a countrys political and
economic history and circumstances. Although the tables below signal sequential phases,
it is not uncommon for programs to skip certain phases. Additionally, some e-government
programs may stay in a particular phase for a longer period due to funding constraints orpolitical pressure to maintain the status quo.6 A Gartner Group Report from 2000
describes four phases of e-government development and explains the service delivery
modes and examples of e-government services accompanying each phase.7 Table 2.1
offers a basic rubric for identifying the phases and accompanying services.
Table 2.18
Delivery of E-Services: Technologies and Examples by Stages of E-
Government Development
Stages of E-Government
Development
Service Delivery Modes Examples of E-Government
Services - Internet or Intranet
Presence Information access and delivery
Document access and download
Online mapping/ GIS
applications
Providing names and phone
numbers of government officials.
Allowing access to government
documents.
Interaction and Communication Communication with officialsMultimedia-streaming and
playback
Interactive discussions
Email forms to allow citizens tosend requests for services to
government officials.
Multimedia presentations.
Transaction Online databasesOnline formsE-commerce applications
E-commerce transactions such asthe purchasing of hunting orfishing licenses, renewal ordrivers licenses, and thepurchasing of government
documents.
Transformation Online mapping/ GIS
applications
Smart permitting involving online
request submissions, GIS,
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E-permitting/ wireless
applications
document management, 3D
modeling of proposed projects,
and wireless applications.
The UN developed another way to evaluate different stages of development using
a 5-phase model. In a 2002 report, the UN distinguishes between the five different phases
by identifying e-government service capabilities in each phase. In Table 2.2, the UN
report describes the applications, services, and information associated with each phase
signaling the level of sophistication of e-government programs and websites.
Table 2.29
The Five Stages of E-Government
Stage of E-Government Description of GovernmentWebsites
Applications and Services
Emerging Limited and static information Website posts government
information online butinteractions and transactions are
not possible for government
inquiries and services.
Enhanced Regularly updated information The number of websites increases
and websites include frequently
updated information. Updated
information includes newsletters,
publications, new legislation,
search engines, and email
capabilities.
Interactive Downloading and communication
is possible
Many government service
interactions are possible
including message posting, email,document and data downloading,
and document submissions.
Transactional Payment of service is possible Passport, visa, birth/ death
certificates, and payments for
licenses, permits, fees, bills, and
taxes are available online.
Security measures and more
sophisticated functions are
available including digitalsignatures, encryption, and
passwords.
Seamless Total integration of all services All services can be accessed from
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across administrative and
departmental boundaries
one portal without
differentiation between
government agencies.
Both the Gartner and the UN report deconstruct e-government development
phases and explain the accompanying technology, applications, services, and information
offered in each phase. Although the reports mention a transformative and seamless phase
(the last phase in both tables), there are few countries that have reached either phase for a
number of reasons. Social, cultural, and political trends and legacies can facilitate e-
government development but more often than not inhibit buy-in from e-government
stakeholders. For this reason, comparing national e-government programs in different
phases can empower policymakers to research and present innovative ideas andapproaches to their own governments based on international e-government experiences.
Can E-Government Transform the Public Sector?
There are a number of schools of thought in organizational theory addressing the
ability of e-government to transform or reform the public sector. When it comes to IT
projects in general, most experts usually fall into one of two camps. Where some
researchers believe IT can fundamentally change organizational behavior, others argue
that IT can only do so much given the intent of organizational leaders and the limitations
built into bureaucratic structures.
Information technology for reform is accepted to a certain degree when it comes
to changing procedural and routine-like work behaviors. For example, using email as a
legitimate form of communication between professional colleagues has, to a certain
degree, changed the way in which people in a work environment function. In this way, IT
can shape agency behavior and routine structures that can ultimately lead to significant
change. However, where some believe IT can change the fundamental nature of a
government agency or organization, others believe it cannot.
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For the purposes of this report, the latter school of thought will be the basis for the
following arguments and research because it is backed by multiple scholars, practitioners,
and subject matter experts across the world, including people in Mexico and other parts
of Latin America. As is pointed out in much of the e-government literature, proponents of
IT for reform sake have little evidence to use in their defense because studies and
empirical evidence tend to not go beyond administrative and incremental change.
Thus, the transformational aspects of IT projects are not realized due to a number
of factors such as organizational culture, degree of political will, and citizen sentiment
toward government in different regions and countries. That is not to say that IT projects
should not be incorporated into reform processes. Rather, researchers argue that the
impetus for reform must precede the development of an IT project because IT itself is not
a catalyst.10 Thus, IT application does not cause reform.11
One common theme in e-government literature, in terms of government reform, is
the nature of government agencies to strive to maintain autonomy within government and
to secure power and funding through legislation. Many researchers argue that government
structures are inevitably embedded in IT projects regardless of the type of project. Thus,
developing a virtual state or a ubiquitous e-government system is not about
technological capability but about overcoming entrenched organizational, social, and
political institutions.12 For this reason, IT is considered to bring administrative and
incremental change but it is not a catalyst for institutional change today any more than it
was before the Internet came into use.13
Other arguments supporting the inability of IT to instill reform in the public sector
are based in case studies from the past four decades involving different types of
technology. In academic studies, researchers have found that IT applications bring little
change to organizational structures, and seem[s] to reinforce existing structures.14
Additionally, it is argued that those at the top of organizations define agency goals
leading to the unequal distribution of IT applications across the public sector. Thus, the
primary beneficiaries have been functions favored by the dominant political-
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administrative coalitions in public administrations, and not those of technical elites,
middle managers, clerical staff, or ordinary citizens.15
Although there are many factors that affect the outcome of an IT project, management
and organizational interests are arguably the most important areas affecting any project.
In fact, some experts claim that IT projects could be more beneficial to the public and to
the organization if they were better managed and if organizational interests, rather than
the self-interests, were promoted by managers and leaders.
Many IT projects, especially in the case of e-government, are based on admirable
goals such as transparency and accountability of government agencies and officials.
However, poor management of these projects often leads to ineffective IT programs that
can often be traced to a lack of expertise and experience in project management.
Understanding the genesis of IT projects and their relationship to broader government
reform trends will help policy makers and implementers guide projects using IT not as a
panacea but as a tool that fits into a larger and longer reform process.
In the e-government planning process, policy makers often look to other
countries programs to identify strategies for overcoming obstacles linked to cultural
norms of an agency, funding models available for financing the program, and target
audiences that will be affected by the initiative. In the Latin American region, and for less
developed countries in general, there are a number of distinct challenges that should be
acknowledged prior to starting an e-government program. The next chapter focuses on
some of the more common hurdles in e-government development in less developed
countries with a focus on Latin American cultural, political, and historical attributes.
These obstacles are essential to understand for the case of Mexico because they have
been overlooked or underestimated in the development of the nationwide e-Mexico
project and the overall e-government program.
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Notes
1World Bank, Definition of E-Government. Online. Available:http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTINFORMATIONANDCOMMUNICATIO
NANDTECHNOLOGIES/EXTEGOVERNMENT/0,,contentMDK:20507153~menuPK:702592~pagePK:1
48956~piPK:216618~theSitePK:702586,00.html. Accessed: November 15, 2006.2Ibid.3Ibid.4
Elizabeth Muller and Mariano Gutirrez, OECD e-Government Studies: Mexico. (Paris: OECD
Publishing, 2005), p. 71.5Saretta Ramdial,Phases of E-Government Development. In State E-Government Strategies:Identifying Best Practices and Applications, Congressional Research Service, p. 12-13. (Draft.)6
Saretta Ramdial,Phases of E-Government Development. In State E-Government Strategies:Identifying Best Practices and Applications, Congressional Research Service, p. 12. (Draft.)7R. Sood, The Four Phases of E-Government in the Public Sector Market, (Gartner Group Report, 2000).Resource ID:308459. InDigital Government: Principles and Best Practices, Alexei Pavlichev and David
Garson, (Hershey, PA: Idea Group Publishing, 2004), p. 173.8Adapted fromR. Sood, The Four Phases of E-Government in the Public Sector Market, (Gartner GroupReport, 2000). Resource ID:308459. InDigital Government: Principles and Best Practices, Alexei
Pavlichev and David Garson, (Hershey, PA: Idea Group Publishing, 2004), p. 173.9Adapted fromS.A.Ronaghan,Benchmarking e-government: A global perspective, assessing the progressof the UN member states. (New York: United Nations Division for Public Economics and Public
Administration and American Society for Public Administration, 2001). InDigital Government: Principles
and Best Practices, Alexei Pavlichev and David Garson, (Hershey, PA: Idea Group Publishing, 2004), p.
38-39.10Kenneth Kraemer and John King, Information Technology and Administrative Reform: Will the TimeAfter E-Government Be Different?(paper presented at the Heinrich Reinerman Schrift fest, Post Graduate
School of Administration, Speyer, Germany, September 29, 2003.) Online. Available:
http://64.233.167.104/search?q=cache:4OHGXfvGNWQJ:www.crito.uci.edu/publications/pdf/egovernment
.pdf+Information+Technology+and+Administrative+Reform:+Will+the+Time+After+E-
Government+Be+Different%3F&hl=en&ct=clnk&cd=1&gl=us&client=safari. Accessed: April 7, 2007.11Ibid.12Kaifeng Yang, Neoinstitutionalism and E-Government: Beyond Jane Fountain, Social ScienceComputer Review, vol. 21, no. 4, Winter 2003. pp. 432-442. Online. Available: Lexis-Nexis Academic
Universe, http://web.lexis-nexis.com/universe/. Accessed: April 7, 2007.13Kraemer and King, Information Technology and Administrative Reform: Will the Time After E-Government Be Different? September 29, 2003.14
Ibid.15Ibid.
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Chapter 3. Barriers and Strategies to E-Government
Development
The following challenges encompass difficulties all countries face in e-
government development and implementation.1 However, many of these areas are more
pronounced in the Latin American region because of low country GDPs, the historical
relationship between the public and private sector, and the relationship between
government and citizens.2 In the case of Mexico, many of these challenges affect the
development and implementation of e-government systems and should be considered by
policy-makers and researchers in the planning and evaluation of programs. Arguably,
many of these obstacles have been overlooked by policy makers in the past and need to
be revisited if Mexicos e-government program in to progress in the future. In addition to
these challenges are steps to resolving various problems linked to a fear of change in
employment, cultural barriers, and budget constraints.
The Two-Systems Problem
There is a clear digital divide in Mexico that places those with limited financialresources, those living in rural areas, and those with limited educational experience at a
disadvantage for digital access. In 2005, the Internet penetration rate in Mexico was
approximately 16.3% or 17.1 million people.3 This is a significant increase from 2.7% in
2000 and reveals a large shift in Internet use. In terms of teledensity, only 18% of
Mexicans have fixed land lines, which is in line with most Latin American countries, and
approximately 43% have mobile phones in 2007.4
However, despite the large increase in
Internet and mobile phone use, there are certain patterns that reveal large disparities
between rural and urban areas and high and low-income locations. Thus, there are two
competing parallel systems that cater to different populations with a variety of usage
patterns.
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Politicians and supporters of e-government argue that it reduces costs and can
make public service provision more effective and efficient. However, this prediction does
not prove to be true until a substantial number of users start using e-government.5 In fact,
the sunk costs of developing and creating e-government programs are very high. Thus, if
there are any cost savings they are the result of a long-term investment in ICT. Not only
is starting a program very costly, but also maintaining multiple channels of information
such as face-to-face office time, mail, and telephone inquiries in addition to online help
can tax public agencies.6
Financial costs are only part of the problem because changes in organizational
functions can also create rifts between different groups within a department. There are
often many differences between the traditional workers in a public agency and workers
coming in to undertake and manage e-government programs. Generally, digital workers
tend to be more highly educated, used to working in informal settings, and tend to be paid
more than their traditional counterparts.7 There is a clash between the traditional
workers in an agency and new workers who are hired for technology integration.8 These
two sides, representing the old-economy and the new-economy, often jockey for
political position and budgetary resources.9 Friction between groups can hinder e-
government integration and limit ICT use in the public sector in general.
In Latin America, this two-systems problem is further compounded by cultural
expectations and education deficits. Many Latin Americans rely on government processes
for socializing and interacting with their community members.10 For example, waiting in
an office or line affords a person the opportunity to catch up on the happenings of the day
with their neighbors and friends as well as receive news and current events from other
towns and cities. Thus, running errands encompasses more than simply checking items
off a list. It affords community members a chance to interact with each other.
Education deficits in the form of qualified and experienced IT professionals also
hinder the ability for e-government programs to permeate government processes. It is
difficult to find professionals to develop, implement, and maintain e-government
programs because many public education systems are under-funded and lack an IT
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focus.11 This problem stems from the low penetration of Internet and PC use in the region
and a lack of educational opportunities for students interested in IT areas. Thus,
governments in the process of developing domestic e-government programs must search
externally for IT expertise. Once experts are contributing to the system, the two-systems
clash can be aggravated because e-government expertise comes from a foreign source and
because the existing culture lacks the technical expertise to understand and analyze
recommendations.
Factions within Bureaucracy
It is hasty for an agency to assume that investing in e-government applicationsand promoting new programs will win over public officials and convince them that
change works to their advantage. In contrast, technology adoption can be very slow and
difficult depending on how accepting public officials are of the new product. Thus,
officials must be cognizant of making concrete choices to share knowledge, adopt
technology, and use technology to further their organizations goals.12 Public agencies
and bureaucrats are slow to accept changes in how they function and manage within their
workspace. This not only applies to e-government but to every aspect of organizational
change within an agency.
In the case of e-government, cross agency coordination is the optimal way to
share, disseminate, and coordinate data among different groups. However, this
perspective is not typically found among bureaucrats who strive to differentiate their
performance and functions from other agencies often in the hopes of receiving more
funding and organizational legitimacy. Thus, public agencies sometimes prefer to
perpetuate data silos or areas where only one or a limited number of agencies have
access to specific data. This can also cause turf wars during the data decentralization
process because certain agencies identify themselves with specific functions,
constituents, and missions of the government. Despite these bureaucratic attributes, there
are many government agencies that are able to overcome agency identity problems.
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Instead of developing a lone agencies infrastructure and service delivery model, e-
government bureaucrats must work together across agency lines and build an
infrastructure that is not particular to a single agency.13 This goal proves to be extremely
difficult due to the historical and political attributes of bureaucratic systems.
In the case of resistance to e-government programs, leaders within agencies must
overcome the inertia typical in many offices and get people to think outside the box in
terms of new ways of delivering services to the general public and the business
community.14 This is admittedly a very difficult hurdle for public agency leaders and is
often the most complex barrier for agencies to overcome. However, one way to mitigate
the problems associated with technology adoption is to put external pressure on
bureaucrats to perform more efficiently and effectively.
In Latin America, politicians and political parties can influence agency leaders to
adopt e-government development as a new policy goal. The public sector is highly
politicized and many bureaucrats are linked to the party in power.15 Thus, enforcing the
party objectives can further ones political career. Other methods include altering
incentives within the organization and creat[ing] new mechanisms of organizational
accountability that change how workers think about and perform their job functions.16
Additionally, there are certain qualities associated with technological innovation and e-
government that aid in the adoption process. They include the ease of usage [of new
technologies], compatibility with agency mission, and existence of a relative advantage in
the use of the technology.17 If in the promotion of e-government agency leaders can
maximize these factors, new projects are likely to be more accepted and integrated in the
agencys culture on all levels.18
Funding Constraints
Funding for IT projects can potentially be very expensive due to high upfront
costs. Depending on the funding model, costs can be met by different agencies within
government that are enthusiastic about providing services and interacting in new ways.
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National and state budget expenditures can be in the multi-million dollar range for
infrastructure development, training of personnel, development of software applications,
and security settings. For the most part, IT expenditures make up approximately one to
two percent of a national budget but this depends on the affairs of the state in the
specified year and whether or not there were budget cuts that affect IT programs.19 E-
government programs are usually planned with the goal of recouping costs over time as
they are amortized and spread over more users.20
E-government programs are normally financed through general tax revenue, user
fees, or commercial advertising. In addition, some governments may combine all three
methods depending on the public adoption rates and tax revenue cycles.21 In Latin
America, there are many countries with high foreign debt and extremely limited state
revenue that cuts into the IT spending budget. In these countries, such as Honduras and
Nicaragua, the Inter-American Development Bank (IADB) has provided funding for
graphical information systems (GIS) and updating accounting systems to enable the
countries to maintain and improve their poverty reduction programs and debt reduction
accounting.22 The influence of international organizations is a major driving force
behind government Internet use in the [Latin American] region.23 For many international
organizations, e-government is seen as a method for combating corruption. For example,in El Salvador, various IADB funds were provided to allow the government to track
emergency aid funds following the corrupt activities during Hurricane Mitch relief
efforts.24
Funding constraints in the Latin American region can be more pervasive when
compared to the U.S. or East Asian countries because many countries lack basic
infrastructure that is the foundation for e-government programs.25
Internal government
information systems and security infrastructure may be non-existent or antiquated making
the purchasing of equipment, maintenance of qualified personnel, and capacity building
within the public sector an even greater fiscal constraint.26
International organizations
have put pressure on some Latin American countries to improve their IT capabilities.
These improvements are often seen as part of a larger scheme to modernize the public
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sector, increase democratic mechanisms in the state, and provide for more interaction
between public, private, and civil society groups.
Given this scenario, it is difficult to gauge the level of enthusiasm among public
officials about e-government programs because the impetus for change does not stem
entirely from an internal realization that government needs to improve its communication
with citizens. The pressure from international organizations can curb internal discussions
about IT because projects may be seen as foreign rather than domestically developed
solutions to public sector problems. In contrast, a recent piece of legislation called the
Declaration of Santo Domingo signals a turn for the better in terms of multilateral support
for e-government development in Latin America. The declaration outlines e-government
goals and challenges in the region and was signed in June of 2006 by ministers from all
the Organization of American States (OAS) countries (a total of 34) indicating a public
political commitment to furthering IT goals in the participating countries.27
Another challenge particular to the region is the relatively new shift towards
social program improvement among governments, international organizations, and
academicians. The debt crisis of the 70s and 80s caused severe cuts in social program
spending that hurt poor and middle-class groups more than any other segment of the
population. Currently, the region is plagued by inequalities in income, a lack of access to
high quality public institutions, and the bifurcation of the economy in terms of education,
health care, and other publicly provided services. Unless public administrators stress that
e-government investment is part of a larger program to better disperse public services,
they will be hard pressed to find support within governing bodies to fund expensive IT
projects.28
E-government spending can go through different cycles depending on the overall
welfare of the country. For example, a country with a strong economy and abundantresources will find that budgetary trade-offs with other spending categories are less
intense.29 However, in countries with failing economies e-government spending
competes with public assistance programs, education, and healthcare spending.30 In a
weak economy, it is difficult to make the case that tax revenues should go to e-
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government programs rather than education or healthcare especially when these programs
positively affect the population most vulnerable to economic downturns. Given the
instability of many Latin American economies, competition for funding e-government
programs can at times be overcome by strong leadership, an effective promotional and
marketing campaign, and internal funding and external expertise that supports IT
investment.
Planning Conflicts, Outsourcing, and Domestic IT Capabilities
The delegation of e-government service development, delivery, and evaluation is
a common conflict in all governments. Public agencies struggle to find economically andpolitically acceptable solutions that often include in-house development, outsourcing to
private firms, or public-private partnerships with non-profits such as universities or with
the private sector. Within public agencies, employees may fight over whether or not
technical development and IT services should be completed in-house or outsourced.
When governments resort to outsourcing, there is often conflict within the IT area as to
who is most capable and prepared to offer particular services whether it is website design
or program management. Winning a bid can depend on how much power a company has
in the IT field. In this case, power is interpreted as expertise, financial clout, or political
connections that gives one company an advantage over other bidding companies.31
For e-government development, the government often turns to creative and
knowledgeable organizations such as research institutions and universities. These
organizations are the part of society explicitly designed for knowledge creation and
technology transfer to other organizations.32 Additionally, these institutions are the
incubators that produce new inventions for government agencies.33 Public agencies do
not rely on bureaucrats to innovate new technologies for their agencies thus these
knowledge incubators are integral to the modernization of state processes in IT and
service delivery. As aforementioned, in Latin America there is an IT expertise deficit that
curbs the states ability to use universities and research institutes for e-government
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programs. Thus, expertise often comes from foreign sources such as international
organizations.
Different projects require different types of expertise. Public agencies may rely on
in-house services for systems that are simple and straightforward. Employees would work
with their in-house technical staff and projects would be covered by their agency budget.
Likewise, the agency would retain control over the implementation of the project and the
complementary technology.34 However, for more complex e-government systems, public
agencies most likely rely on private sector firms. This involves some loss of control and
decline in autonomy on the part of the bureaucratic agency.35
In the case of more
complex e-government systems, the private sector is extremely important for
technological innovation.
In Latin America, the private sector may not choose to become involved in e-
government development because of the perceived limited use of new programs by
citizens and businesses. Some high revenue areas, such as customs and trade e-
government programs, may offer profit-generating opportunities that match common
business models.36 However, programs that are not based on revenue through foreign
trade are often not worthwhile business pursuits. Thus, it is difficult to find businesses
that will cover the upfront investment costs because adoption is slow and profits are
minimal.
Portal development or one-stop-shopping for government services is a common
trend in e-government. Portal development and maintenance can be very complex
because it involves multiple services, applications, and public agencies. Adding services
and maintaining the website portal can be very technical and time consuming so
governments often avoid putting more burden on in-house staff by outsourcing the entire
portal project. Private companies can have an edge over the public sector because theyhave the means to become very specialized in certain tasks. For example, a public agency
that is trying to develop a portal that is accessible to all citizens may hire an outside firm
to add services and sites that are more user friendly and accessible to the disabled.37
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Thus, outsourcing projects depends on the level of complexity and the kind of expertise
needed for the project.
In terms of government contracts and outsourcing, Latin Americas history of
clientelism and political patronage does not offer a model relationship on which to base
future IT project development and management. Pursuing any type of government
contract or public-private partnership will require a new perspective among officials,
particularly among [governments in] emerging economies.38
In many Latin American
countries there is mistrust between the public and private sector not to mention between
citizens and the government. Maintaining high standards and transparent bidding
processes can help to reduce any misgivings civil servants and the public hold against
these partnerships or outsourcing.
The ICT sector in many Latin American countries is often weak. Thus,
government agencies can be role models for IT development and use by effectively using
ICT in government sponsored projects. Governments can enhance the capacities of local
ICT firms by encouraging capacity-building partnerships between local and
multinational companies.39 E-government planning should involve the ICT sector
regardless of the level of development and expertise because public agencies can create
important relationships with private companies and draw on business connections later on
when the companies have matured.40 The long-term development of the tech sector can
work to the governments advantage if businesses are aware of e-government projects,
hurdles, and future goals. The prospect of winning a large government contract can
encourage small IT companies to be more innovative and creative, many times finding
new ways to offer services. Proving themselves as viable IT companies can put them in
the running for more contracts and stronger relationships with multiple agencies. In the
short-term, contracts that partner small companies with multi-nationals not only offer
more comprehensive services, but also invest in future domestic IT capabilities.
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Leadership
Political will among e-government leaders is necessary to uphold active political
leadership, the financial resources, inter-agency coordination, policy changes and human
effort required to plan and implement e-government.41 In order to be effective, e-
government leaders must be risk takers, have sufficient authority to undertake projects, be
able to make large time commitments, and have the clout to publicly endorse and
promote e-government projects. Officials must acknowledge the difficulty in undergoing
any type of IT project because all projects are bound to have bugs or problems in
system coding and implementation. Additionally, resistance within bureaucracies occurs
on multiple levels for a number of reasons including:
A fear of losing a job because it will be replaced by technological advancements; Fear that agency employees will lose power within the system by losing their turf
through a change in agency function or mission;
Fear of not understanding how new technologies work and appearing ignorant in frontof colleagues and supervisors;
Fear that new technology will mean more work such as answering constituent e-mail; Belief that there is nothing to gain in learning about new technology, thus there is
nothing to lose;
And a concern that automated processes will mean fewer opportunities to receiveunofficial payments of bribes in return for using their [government employee]discretion to help certain parties.42
Any combination of these fears adds to the difficulty of implementing new e-
government programs. However, there are ways to mitigate public employee and
constituent fears. The first is to present politicians with a way to sell e-government
initiatives. For example, using projects from within the region as templates for new
programs can bring a local sentiment to the project and provide hope for success if there
is substantial support. One laudable example is Chiles online application program for
affordable housing. This project enabled poor people to avoid the red tape of traveling a
long way to an office and waiting in line by providing 70 service centers with customer
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support.43 In this way, housing vouchers and subsidies, part of a public assistance
program, were provided to people who have very little access to computers and the
Internet.44 The advantage of this program is that service centers are dispersed among
different communities offering people multiple location options for applying for
government assistance.
A second approach to increasing support among different parties is to start small
with a modest e-government project. It can be a new project or an application that is
already in use in another Latin American country. The ability to push for support is
completely dependent upon the success of the project thus e-government leaders should
collaborate with private businesses and the public to ensure that all parties have a vested
interest in the project.45 Once the project is complete, politicians can use its success to
take credit for positive gains in society and government.46 E-government leaders can then
perpetuate the excitement about new projects by introducing more complex or inter-
agency programs that include more stakeholders. This method of increasing support can
create excitement among government leaders and the public while providing worthwhile
new public services.
A third way to push for e-government investment is through a large promotional
campaign that highlights all the benefits people will receive once the program is in place.
This can be done through posting billboards on major roads, using signs on public
transportation, and producing public service announcements that show people what,
where, and how to use the new e-government programs.47 In order for the campaign to
promote a strong message, projects should benefit a large number of people such as
receiving tax information online or renewing certain permits and licenses for
businesses.48
A successful promotional effort can create excitement among constituents
and strengthen an administrations political will to engage in new e-government projects.
E-government leaders can use the media to highlight top priorities and marshal the
financial resources that are necessary for the implementation of technical
improvements.49
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Unfortunately, when it comes to technology investments there are many leaders
who do not support e-government programs. There are a number of reasons why leaders
are not supportive:
IT investments are expensive and risky and often do not save the state money; Alternative issues such as social programs are considered more important; Legislators may bow to vested interests who often fear that implementing new
technology will change the status quo.50
Many scholars argue that when there is a technological innovation in government,
there is usually a mayor, governor, or legislator who had the political will and authority
to support it through the decision making process.51 E-government leaders in Latin
America must acknowledge the reasons why government employees would be opposed to
technological investments. They must lay out in their campaign why the benefits of e-
government programs are greater than its associated costs and risks and how technology
investments accomplish agency goals more effectively and efficiently in the long-term.
Corruption
Corruption exists in every country regardless of the level of development and
socioeconomic and cultural variables. Arguably, there are different forms of corruption
that tend to be more prevalent in countries at different levels of development. In the case
of less developed countries, corruption takes the form of retail corruption including
nepotism, bribery, and tips among others.52 This type of corruption is highly manifest,
annoying and ubiquitous in many less developed countries.53 In contrast, more
developed countries exhibit a type of corruption that is more likely to be less
ostensiblemore institutional, legal and selective wholesale corruption.
54
Where retailcorruption is often at the administrative and street level in the form of monetary bribes,
wholesale corruption tends to occur through a sphere of intra-elite exchanges at the
political level where under the veneer of legality and formality, the currency is mainly
political and the economic stakes extremely high.55 In terms of e-government
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development, corruption is one of the areas that can be reduced through more transparent
service provision and inter-agency communications.
In the case of Latin American and Caribbean countries, Transparency
International reports indicate that the region is corruption prone though corruption
appears in different forms depending on the country in question.56 In many of the
countries, there are specific terms for different kinds of bribes (e.g. coima and mordida)57
and the term el que no tranza no avanza (one that does not act ethically does not
succeed)58 indicating that corruption is in many ways institutionalized in the social,
cultural, and economic spheres. Corruption in the region has its roots in the historical and
cultural patrimonial legacy dating back to the beginning of European colonialism in the
1500s.59
Accordingly, cultural remnants from the colonial legacy have been adopted into
the administrative customs in many countries in Latin America affecting the
modernization of the public sector. As identified by Jorge Nef, a regional historian, there
are several characteristics that fit into an ideological cultural construct helping to
explain corruption in the administrative system.60 The following characteristics can
negatively influence e-government program development and implementation.
According to Nef, the core of the administrative culture in Latin America is
defined by the persistence of amoral familism or particularism.61 This is exhibited in
the manifestation of patrimonial practices that reveal built-in particularism leading to
insular communities, limited transparency, and a distrust of strangers surrounding the
performance of public functions.62 Formalism is another characteristic of corruption in
the region. It is dependent on the rigid hierarchical class structure in Latin America which
is more often than not preoccupied by official titles and officialdom in general. This
comes as no surprise as official titles serveas a mechanism to access privateconsultancies and alternative (and not always transparent) sources of income.63 Thus,
there are two sides to public officialdom. The first is a front of legality and formality seen
by the public and the second is a private zone of exceptionality for insiders.64
According to Nef, relationships can be explained by time in that delays, waiting, and
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These are only a few of the numerous challenges that arise when new programs
and ideas are introduced into the government system. They have been described in
general terms and, as witnessed, some can be overcome with strong leadership and
effective planning that involves key stakeholders while others are more difficult to
overcome because they are more nuanced and require time, resources, and attitudinal
change.
It is important to remember that the aforementioned challenges are specifically
described in a Latin American context based on the focus of this discussion. However,
every government needs to consider the problems associated with e-government
development and implementation based on country-specific characteristics such as
cultural, socioeconomic, and historical factors. While there are similarities between e-
government development and implementation among all countries, there is no perfect
model or one-size-fits-all program that works in every country. Thus, identifying and
acknowledging strengths and weaknesses within government systems and areas that
require reform is essential to e-government planning. In fact, this is arguably the first step
in the e-government planning process for many countries.
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Notes
1 Chapter 3 is part of an unpublished paper entitled E-Government Challenges in Latin
America by Saretta Ramdial. July, 2006. (Draft.)2 Interview with Miguel Porra Vign, Program Coordinator for E-Government
Development at the Organization of American States, Washington. D.C., June 27, 2006.3 Search Engines, Directories, and Internet Usage, Internet World Stats. Online.
Available: http://www.internetworldstats.com/am/mx.htm. Accessed: April 15, 2007.4Ibid.5 Darrell West,Digital Government: Technology and Public Sector Performance
(Princeton: Princeton University Press, 2005), p. 30.6
Ibid.7Ibid.8Ibid.9Ibid.10 Interview with Miguel Porra Vign, Program Coordinator for E-GovernmentDevelopment at the Organization of American States, Washington. D.C., June 27, 2006.11Ibid.12 Maria Christina Shcarf, Knowledge Flows and the Use of Internet-Related
Information Technologies in Public Sector Organizations: A Comparative Case Study,inDigital Government: Technology and Public Sector Performance, ed. Darrell West.
(Princeton: Princeton University Press, 2005,) p. 31.13
Michael Lipsky, Street-Level Bureaucracy: Dilemmas of the Individual in PublicServices inDigital Government: Technology and Public Sector Performance. ed.Darrell West. (Princeton: Princeton University Press, 2005,) p. 31.14 West,Digital Government: Technology and Public Sector Performance. (Princeton
University Press, 2005,) p. 31.15 Interview with Miguel Porra Vign, Program Coordinator for E-Government
Development at the Organization of American States, Washington. D.C., June 27, 2006.16 West,Digital Government: Technology and Public Sector Performance. (Princeton
University Press, 2005,) p. 31.17 Louis Tornatsky and K. Klein, Innovation Characteristics and Innovation Adoption-
Implementation: A Meta-Analysis of Findings inDigital Government: Technology and
Public Sector Performance. ed. Darrell West. (Princeton: Princeton University Press,
2005,) p. 31.18Ibid.19 Class lecture by Gary Chapman, Professor, Lyndon B. Johnson School of Public
Affairs, Spring 2006; Darrell West.Digital Government: Technology and Public Sector
Performance. (Princeton University Press, 2005,) p. 32.20Ibid.
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21 Gant, Gant, and Johnson, State Web Portals, inDigital Government: Technology and
Public Sector Performance. ed. Darrell West. (Princeton: Princeton University Press,
2005,) p.32.22 Katherine Reilly, Government, ICTs and Civil Society in Central America: Is NationalGovernment ICT Use Contributing to More Democratic States? Online. Available:
http://www.undp.org/surf-
panama/egov/docs/publications_n_resources/pubs/government_icts_cso_CA.pdf
Accessed: March 10, 2007.23Ibid.24Ibid.25 Interview with Miguel Porra Vign, Program Coordinator for E-GovernmentDevelopment at the Organization of American States, Washington. D.C., June 27, 2006.26 Katherine Reilly, Government, ICTs and Civil Society in Central America: Is National
Government ICT Use Contributing to More Democratic States? Online. Available:http://www.undp.org/surf-panama/egov/docs/publications_n_resources/pubs/government_icts_cso_CA.pdf
Accessed: March 10, 2007.27 Organization of American States. Draft Resolution: Support the Implementation of the
Declaration of Santo Domingo. Presented at the 36 th Regular Session of the OASGeneral Assembly, Santo Domingo, Dominican Republic, June 4-6, 2006. Online.
Available: http://www.oas.org/consejo/GENERAL%20ASSEMBLY/Resoluciones-
Declaraciones.asp. Accessed: November 10, 2006.28 Interview with Miguel Porra Vign, Program Coordinator for E-GovernmentDevelopment at the Organization of American States, Washington. D.C., June 27, 2006.29
Darrell West,Digital Government: Technology and Public Sector Performance.(Princeton University Press, 2005,) p. 33.30Ibid.31 Darrell West,Digital Government: Technology and Public Sector Performance.
(Princeton University Press, 2005,) p. 36.32Ibid.33Ibid.34 Darrell West,Digital Government: Technology and Public Sector Performance.
(Princeton University Press, 2005,) p. 37.35Ibid.36 Interview with Miguel Porra Vign, Program Coordinator for E-Government
Development at the Organization of American States, Washington. D.C., June 27, 2006.37 Darrell West,Digital Government: Technology and Public Sector Performance.
(Princeton University Press, 2005,) p. 38.38 The Working Group on E-Government in the Developing World. Roadmap For E-
Government in the Developing World: 10 Questions E-Government Leaders Should Ask
Themselves. Los Angeles, Pacific Council on International Policy, 2002. Online.
Available:
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28
http://unpan1.un.org/intradoc/groups/public/documents/apcity/unpan005030.pdf#search=
%22roadmap%20for%20e-
government%20in%20the%20developing%20world%2C%20pacific%20council%20on%20international%20policy%22. Accessed: October 12, 2006.39Ibid.40Ibid.41Ibid.42Ibid.43Ibid.44Ibid.45Ibid.46Ibid.47Ibid.48
Ibid.49 Darrell West,Digital Government: Technology and Public Sector Performance.(Princeton University Press, 2005,) p. 39.50Ibid.51Ibid.52 Jorge Nef, Government Corruption in Latin America, Where Corruption Lives
(Bloomfield, CT: Kumarian Press, 2001,) p. 160.53Ibid.54Ibid.55Ibid.56Ibid.57
Ibid.58 Cecilia M. Arruda, Business Ethics in Latin America.Journal of Business Ethics,
vol. 16, no. 14 (1997), pp. 1597-1603. Online. Accessed: January 10, 2007.59 Jorge Nef, Government Corruption in Latin America, Where Corruption Lives(Bloomfield, CT: Kumarian Press, 2001,) p. 160.60 Jorge Nef, Government Corruption in Latin America, Where Corruption Lives
(Bloomfield, CT: Kumarian Press, 2001,) p. 167.61Ibid.62Ibid.63Ibid.64Ibid.65
Ibid.66 Jorge Nef, Government Corruption in Latin America, Where Corruption Lives
(Bloomfield, CT: Kumarian Press, 2001,) p. 168.67Ibid.68Ibid.69Ibid.70Ibid.
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Chapter 4. E-Government Development and Implementation
in Mexico
By the end of the 1990s, the Mexican government was increasingly using ICT for
government processes and functions. There were some initial steps taken in the 1990s to
further the use of technology such as the 1995 Telecommunications Law, the 1998
Electronic Declarations Legislation Package, and development of the e-procurement tool
Compranet in 1996. However, during this time period there was no e-government
framework or overarching policy that legislated coordination among agencies and
government branches in terms of ICT use.
As in many countries, e-government in Mexico was developed and has been
implemented using a top-down approach. Originally, e-government was the responsibility
of the Institute for Statistics, Geography, and Informatics (INEGI) which was the
authority for the federal governments IT policy. However, with the growing importance
of e-government as part of government reform on a worldwide scale, authority was
transferred from INEGI to the Presidents Office in 2000. Although e-government
programs include multiple stakeholders, in recent years it has been the executive office
that sets the guidelines for e-government programs. The Presidents Office delegated
responsibility to the Ministry of Public Administration to implement specific policies and
strategies between 2000 and 2003. In 2003, the Presidents Office transferred authority to
the Ministry of Public Administration following the creation of the Good Government
Agenda.
E-government in Mexico was formally introduced in November of 2002 when the
administration created the Good Government Agenda encompassing six areas for
political reform. The Agenda includes improving the quality of government, increasing
professionalism among government agencies and employees, improving regulatory
processes and functions, and creating an e-government component of governance that
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supports good governance goals. It is argued by experts, however, that there are many
problems with the implementation of e-government in Mexico because of the countrys
legal formalism and the lack of federal government legislative coordination.1 In this
sense, a legal framework for e-government remains unclear because of the passing of
some laws but resistance to others among different entities in government. These legal
problems are described as patchworks and loopholes that hinder the full
implementation of e-government processes throughout all government agencies.
As seen in Chapter 3, the main challenges to e-government development in the
Latin American region stem from a number of cultural, historical, and socioeconomic
factors affecting the government system and bureaucracy. However, there are variables
specific to Mexico influencing the uptake of e-government programs among citizens,
businesses, and government agencies. The following section focuses on the key players in
Mexicos e-government development and implementation and the most pervasive
problems in implementation.
Key Players in Mexicos E-Government System
There are numerous agencies and organizations involved in the development and
implementation of e-government programs in Mexico. Many of them have been charged
with new responsibilities following the creation of the Good Government Agenda. Table
4.1 describes the roles and functions of each entity in Mexicos e-government
development and implementation. Although many of the key players and agencies have a
government mandate to be involved in the e-government planning and implementation
process, some are not formally integrated into the process but still provide important
services and advice.
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Table 4.12
Main Agencies Involved in E-Government
Agency Description of Program/
Organization
Responsibilities
Presidents Office Office of Innovation It sets the guidelines for e-
government, coordinates e-government within the Good
Government Agenda framework,
provides guidance for e-
government accountability,
facilitates negotiations among
agency heads to devise
performance measures, andprovides leadership and political
support for e-governmentinitiatives.
Ministry of Public Administration E-Government and IT Policy Unit Guides strategic initiatives for the
entire federal public
administration system,
develops policies, guidelines,
strategies, and harmonizes [sic]
practices and standards. 3
E-Government Network Creates a forum of e-government
officials at the federal ministry
and agency level to discuss goals
and strategies.Provides officials with the
opportunity to share bestpractices and solutions to e-
government challenges.Is not legally constituted as an
administrative body but will
become a CIO council with
specialized committees if the
draft agreement for an e-
government framework is
ratified.
Ministry of Communications and
Transportation
e-Mexico Launched in 2001 to help end the
digital divide in MexicoCreated to help build a regulatory
framework for electronic media
and e-commerce.Created to establish e-learning
applications, an e-health system,
and to digitize government
services.4
National Council of Science and
Technology
INFOTEC A privately managed
government organization that
offers guidance and advice
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regarding e-government plans.5
It is not a formal policy makingentity but is highly tied into the
strategy and implementationphases of e-government because
the organization undertakes manypublic projects with the Mexican
government.
Based on Table 4.1, it is clear that the Presidents Office and the Ministry of
Public Administration are the top key players because they set and implement the e-
government agenda. This trend is similar to other countries where the e-government push
has been top-down rather than starting at the grassroots level. For example, President
Bushs Presidential Management Agenda (PMA) of 2001 included five main government
reforms that pushed the federal government to become more efficient and accountable to
citizens and more results-oriented.6 The aim of the PMA was to integrate ICT into
President Bushs government reform plan using a number of different strategies. One of
the methods for incorporating technology was supporting the development of a
comprehensive federal e-government program. In the case of both countries, Presidential
leadership and support throughout the buy-in and development process is essential for
pushing new ideas through other branches of government.
As e-government continues to evolve, it is likely that the role of each agency or
organization will change based on preferences among new administrations, new
technologies, and different methods for collaboration among government agencies.
Likewise, entities may emerge in the form of merged agencies or entirely new agencies
because of unanticipated needs of the government and the public. Additionally, as e-
government progresses in Mexico, there will most likely be a need for increased
coordination in terms of regulations and laws that allow for coordination between theseentities.
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Challenges to E-Government Implementation in Mexico
Chapter 3 outlines a variety of challenges that all governments face when
developing and implementing e-government programs such as overcoming corruption
and navigating through controversy over outsourcing. However, it is important to also
describe some of the country-specific variables that influence agencies in Mexico. The
following challenges are limited to problems in the budgeting and funding system, a lack
of collaboration among government agencies, and an overuse of INFOTEC among public
sector entities. These factors will be considered at a more micro-level in the following
sections with a discussion on the e-Mexico project.
Budgetary Barriers
Budgeting for e-government projects can be extremely expensive and difficult to
predict because there are no guarantees that software programs, technology investment,
and training will result in more efficient and productive agencies. Indeed, a fear of
projects becoming runaway projects is understandable and should be acknowledged by
agency leaders. This is especially important for agencies that have experienced runaway
projects and are wary of undertaking expensive ICT changes that could result in a similar
negative outcome.
According to the OECD, there are a number of problems with budgeting
structures for many countries because of the nature of ICT projects in general. It argues
that budget time horizons of e-government projects require commitments over long
periods and countries focus on single year expenditures.7 Additionally, budgetary
rigidities prevent shared funding arrangements maintaining redundancies and
duplication within the government system.8 There are also difficulties in measuring the
costs and benefits of programs because of the intangible nature of e-government
programs.9 In Mexico, the largest agencies involved in the e-government budgeting
process are the Ministry of Public Administration, which coordinates and defines
program changes, the Federal Regulatory Improvement Commission which develops e-
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government regulations, and the Ministry of Finance, which sets the budgetary guidelines
for all government agencies.10
According to a study completed by the Organization for Economic Cooperation
and Development (OECD) in 2005, 45% of e-government officials in Mexico argue that
budgetary barriers are very important and 32% argue they are important.11 This
makes budgeting for e-government projects one of the largest external barriers to e-
government development in the country. Mexicos funding structure, argued to be very
inflexible, allows for the budgeting of individual projects, however, this causes problems
when agencies are collaborating and sharing responsibilities for a cross-agency project.12
In Mexico, many agencies indicated that a lack of funding was a problem for
them in developing and implementing e-government projects. This is not an uncommon
issue for most agencies across the board, but it is often linked to different causes when it
comes to e-government funding. For one, non-e-government officials may not
conceptualize IT investments as part of a government reform process because of the lack
of exposure or training they may have in the technology field.13 However, e-government
officials in this case are also to blame for budgetary problems because they may not
present their IT expenses as part of a larger more comprehensive business case that is
applied across the entire organization.14
For many agencies, future funding is uncertain and makes programs difficult to
plan since budgets are on a one-year cycle. One option that has been used by many
agencies in this predicament is the e-Mexico trust fund which allows agencies to transfer
unused IT funds that can be withdrawn the subsequent fiscal year. However, this solution
is temporary and ad hoc and does not help with the process of institutionalization [sic]
of e-government in Mexico.15 Another option for funding is a multi-year budget plan
which must be approved by multiple entities such as the Ministry of Finance and acongressional sub-committee.16 The timeframe for a multi-year budget is very long and,
according to OECD data, there is a low approval rate which deters agencies from entering
into the process.17
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Inflexibility also arises within agency budgets. For most agencies, it is difficult to
reallocate funds to high priority areas because leftover funds must be used within the
same budgetary line.18 For example, if funds were not allocated by the Ministry of
Finance as IT expenditures or investments, they cannot be used for IT purposes thus
discretionary spending on the part if the agency is extremely limited. This can also be
problematic for cross-agency projects where one agency may use all available funds and
the other agency is unable to expend funds because of the budget allocation restrictions.
The end result of the inflexible IT and e-government budgets can arguably lead to less
collaboration and coordination because of the inability of agencies to follow through and
change course if operational or technical problems arise.
Lack of Collaboration
As seen in Chapter 2, there are multiple phases of e-government development that
signal a certain degree of information sharing, collaboration, and seamlessness in
functions and processes. Collaboration in projects can decrease and sometimes eliminate
redundant information and programs, saving time and resources for multiple agencies. In
Mexico, there has been an effort to collaborate on some levels including one-stop shops
(eSAT), whole-of-government call centers (chambatel), information kiosksand
government portals.19 However, based on OECD research, agencies have yet to
collaborate on higher levels including the development of e-government programs and
service delivery methods.20 Although Mexican agencies are undoubtedly coordinating in
many ways by starting to share information and developing e-government portals, inter-
agency collaboration has yet to occur due to a number of factors.
Information sharing has been advanced through the E-Government Network
which allows agency heads to share technical issues in developing and implementing
agency plans.21 Arguably, this group can also exchange knowledge of e-government best
practices, major challenges, and administrative hurdles taking information sharing a step
further. Due to the lack of institutionalization of e-government regulations and structure,
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collaboration at the agency level has yet to be mandated through legislation. If mandated,
performance measurements and goals regarding collaboration may be built into
legislation causing agency heads to work with other agencies on collaborative projects.
More advanced coordination is seen in portal development which allows agencies to
provide hypertext links to other entities related to similar services and information.
However, much of this portal development is limited to national and federal ministry
portals with local agencies (state and municipal) going un-represented.22
In terms of collaboration, Mexican agencies have yet to advance from
coordination among agencies to collaboration among agencies. This is in part due to the
idea that Mexico is still in the initial phases of e-government development. It is also
linked to budgetary inflexibility that does not facilitate cross-funded e-government
projects or multi-year budgets for programs with a life span of longer than the traditional
one year.23 The OECD outlines a number of obstacles to collaboration which includes a
lack of common vision and understanding of e-government across agencies, the habit of
non-collaboration, internal resistance, and performance measures that do not recognize
the value of collaboration.24 Taken in combination, these obstacles inhibit the
development of e-government in Mexico. They also reveal the importance and necessity
of institutional transformation on all levels in the e-government development andimplementation process. Thus, the transformational aspect of e-government is not only in
ICT use but also in the organizational culture of an agency and the history of traditional
relationships between agencies. Ultimately, positive changes in outlook and action
regarding inter-agency collaboration in the organizational culture of Mexican agencies
will advance e-government on a municipal, state, and national level.
The lack of collaboration among Mexican agencies undertaking e-government
projects is problematic because one of the goals of e-government is to reduce
redundancies in service provision and information gathering. The fact that only a handful
of agencies participate in collaborative projects is disturbing because agencies do not
have in-house examples to follow when the opportunity for collaboration arises.
Collaboration is also not part of the evaluative process where it could be presented as a
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feasible performance measure for all agencies. If collaboration was incorporated, it could
be expanded with budgetary incentives for agencies that participate in inter-agency
projects.
Reliance on INFOTEC
A large part of Mexicos government reform efforts is centered on transparency
and accountability among public sector employees and agencies. One of the major legal
changes in this area occurred in 2000 when the Law of Acquisitions, Leasing, and
Services of the Public Sector (LAASP) was passed to make government procurement
more transparent.25 In general, the law requires that public sector agencies make bids for
projects open and public so any appropriate supplier can bid and so that the selection
process can be reviewed by interested parties.
At face value, the law signals a major change in the government procurement
process. However, an unanticipated consequence of the LAASP is that it can add two to
six months the to procurement process making it difficult for agencies to respond quickly
to ICT problems.26 As a result, the organization most agencies turn to for IT procurement
is INFOTEC, a privately managed government research organization. INFOTEC is a
major e-government player because it is familiar with public sector processes and does
not have to go through the open bidding process other firms legally must go through to be
a supplier to