information & communication technology in social...

February 2001 1

Information & Communication Technology in Social Protection:

Facts, Trends, and Implicationsfor the World Bank

* * *Knut Leipold

World Bank (HDNSP)February 2001

February 2001 2

Intro

• International Conference on Information Technology in Social Protection: Design and Implementation

– May 31 - June 2, 2000, in Warsaw, Poland– 110 participants from 30 countries– Co-sponsored by SP sector of EAP, ECA, MENA– Case study panels:

• Social Insurance Administration Project of Bulgaria• Employment and Training Project of Turkey• Employment Promotion and Services Project of Poland• Presentation of ISSA• Speech of Chinese Vice Minister of MoLSS

– Panel on alternative approaches to IT procurement– Keynote presentations of Australia and Canada– Field trips to automated local Labor and SW offices– http://www1.worldbank.org/education/itconf/

• Two papers:• Costs and Benefits of Information Technology in Social Protection

• Primer on the Inclusion of Information Technology in Social Protection

February 2001 3

Objectives

• Raise awareness of the increasingly important role of Information & Communication Technology (ICT) for Social Protection systems,

• Implications for the management and delivery of Social Protection programs,

• Implications for the World Bank in general and the Social Protection community in particular,

• Share information, experience, and knowledge.

February 2001 4

Content

• Facts and Figures

• Impact and Trends

• Costs and Benefits

• Design and Implementation

• Conclusions

February 2001 5

Facts and Figures:The World

Total ICT Spending 1999 in US$ billion

* Growth between 1997 and 1999

Source: International Data Corporation, 200030.1 (41.5%*)

47.8 (26.3%*)

107.8 (25.7%*)

184.6 (17.7%*)

351.4 (10.9%*)

586.9 (13.2%*)

796.3 (15.4%*)

Eastern Europe

Middle East/Africa

Latin America

Asia/Pacific

Japan

Western Europe

North America

February 2001 6

Facts and Figures:The World Bank

Finance

58 (5.3%)

Private Sector

Development

42 (3.9%)

Mining

9 (0.8%)

Industry

6 (0.6%)

Environment

47 (4.3%)

Education

104 (9.6%)

Oil & Gas

17 (1.6%)

Telecommunications

194 (17.9%)Multisector

19 (1.8%)

Transportation

108 (10.0%)

Water, Supply & San.

47 (4.3%)

Others

2 (0.2%)

Public Sector

Management

103 (9.5%)

Social Protection

27 (2.5%)

Economic Policy

20 (1.8%)

Health, Nutrition &

Population

78 (7.2%)

Electric Power &

Energy

64 (5.9%)

Urban Development

47 (4.3%)

Agriculture

93 (8.6%)

Projects withICTcomponentsby sectors

Source:ESSD Core DatabaseWorld Bank, 2000

February 2001 7

Facts and Figures:Social Protection

Social Protection

27 (46%)

Public Sector

Management

6 (10%)

Private Sector

Development

5 (9%)

Education

5 (9%)

Economic Policy

2 (4%)

Agriculture

2 (4%)

Transportation

3 (5%)

Urban Development

1 (2%)

Water, Supply &

Sanitation

1 (2%)

Environment

1 (2%)

Finance

3 (5%)Multisector

1 (2%)Projects with SPand ICTcomponents

Source:ESSD Core DatabaseWorld Bank, 2000

February 2001 8

Facts and Figures:Lessons

• World Bank supports the use of ICT

• Basic statistics about projects with SP and ICT components– 57 projects with major SP and ICT components, thereof 27 projects listed under

Sector Group Social Protection– 30 projects with SP and ICT components at the same time: ICT in SP or other

component?– What does “informatics” mean in terms of size and volume?

– Spending in dollars only available in terms of total project loan amounts, not for ICT portion

• Use willingness of countries to invest in ICT

• Collect information on ICT spending in $$ by project, by sector, and by region through ESSD Core Database

February 2001 9

Content





• Conclusions

February 2001 10

Impact and Trends:Automation vs. Transformation

• Automation (supportive)– Existing administrative and operational processes of SP

agencies– Based on organizational structure– ALSO project Poland

• Transformation (driving)– Redesign of SP programs (PROST)– Process re-engineering and organizational re-structuring– Remote UI claim system in the State of Wisconsin

February 2001 11

Impact and Trends:ICT for social service delivery

REPUBLIC OF POLANDMINISTRY OF

LABOUR AND SOCIAL POLICY

THE WORLD BANK

• Integrated delivery of social services,• Meet expectations of the customers,

• Self-service information and transactions,• Single point of contact (One-Stop-Shop),

• Improved image of Social Protection institutions.

February 2001 12

Impact and Trends:Electronic Service Delivery

• Integration– Vertical (UI, Placement, Counselling) – Horizontal (SP, HD, E-Government)

• Customer focus– Services at any place and any time– Participation and decision-making

• Accessibility– Diversification of end-devices– Sharing of resources (Indian milk collection centers, World

Links for Development Program)

February 2001 13

Impact and Trends:Vertical Integration in Turkey

• One clerk as contact partner for all requests

• One application interface for all requests

• Combine commonfunctionalities

Single point of registration

• One database for allapplications

• Same structure for internal (eg. person in human resources) and external (person as appli-cant) applications

Common database

• Skills management for allemployees

• Training to improve the technical skills

• Give best practice experience

Organization

• Ministry ofFinance

• PensionInsurance

• HealthInsurance

• Others

• Human Resources• Job Placement• Further Training• Job Counselling• Payroll• Fixed Assets• Accounts Receivable• etc.

February 2001 14

Impact and Trends:Horizontal Integration in Australia

How can Centrelink help you?Are you:

Changing your marital or partner

status?Leaving home?

Needing help after someonehas died?

Sick or disabled?

Caring for someone

sick or disabled?Arriving to

settle inAustralia?

Responsibe for

children?Planning

your retirement?

Seeking or changing

education?

In a crisis situation?

Looking fora job?

February 2001 15

Impact and Trends:ICT for Social Risk Management

• Public interventions as one SRM arrangement– ICT for increased performance of SP agencies and improved quality of

program and service delivery

• Integrated approach to SRM matrix– SRM strategies - kiosk systems with applications for distance learning

and job matching (both risk reduction), information delivery about SI programs (risk mitigation), or social assistance claim filing (risk coping)

– SRM arrangements - Internet kiosks with financial bank services, training courses of private suppliers, or services of insurance companies (all market-based) and with community-based information and services

– ICT encourages the integrated delivery of an adequate mix of services across the SRM matrix.

February 2001 16

Impact and Trends:Lessons

• ICT is more than technology per se (costumer focus, process re-engineering, integration, organizational re-structuring, program re-design)

• Bank-financed SP projects have seen ICT mostly as supportive factor (automation), not as driving factor (transformation)

• Borrowing countries are willing to transform and implement electronic service delivery

• Potential of ICT to better manage social risk may be used in future Bank-financed projects

February 2001 17

Content





• Conclusions

February 2001 18

Cost and Benefits:Analysis

• Identification– Initiation, design, acquisition, implementation, operation– Different nature

• Measurement– Measurable vs. non-measurable– Upfront based on assumptions (experience)

• Evaluation– Compare costs and benefits of existing and alternative ICT

system(s)– Basis for decision-making

February 2001 19

Cost and Benefits:Differentiation of Costs

Recurrent costs• Personnel• Supplies• Maintenance & Support• Operational

Investment costs• Technical assistance• Equipment• Software• Training• Facilities

Contingencies• Physical• Price

February 2001 20

Cost and Benefits:Differentiation of Benefits

Category Measurable Non-measurable

Policy Modification of income tax,contribution/benefit rates dueto increased revenues ofsocial insurance contributions

Strengthening ofdecision-makingprocess due toimproved dataprovision

Program Savings due to frauddetection and prevention,increase in revenues due toimproved compliance in socialcontributions payments

Improved publicconfidence in SPprograms

Agency Cost/time savings throughincreased operationalperformance

Improved quality ofinternal processes,customer-friendly

Public Cost/time savings throughpublic self-service kiosks withon-line service delivery

Improved servicequality, IT skills,customer satisfaction

February 2001 21

Cost and Benefits:Examples

Bulgaria: Social Insurance Administration Project (1996-2001)The 1996 present value of savings to the fund was BUL 14.5 billion (pessimistic scenario) orBUL 141.5 billion (optimistic scenario) by 2020. The increased revenues could be used toreduce the 1996 tax rate by 1.67 percentage points (pessimistic scenario) or by 3.5percentage points (optimistic scenario) in 2004.

Latvia: Welfare Reform Project (1997-2002)Benefit processing time will fall from up to 2 weeks, to less than 1 day, with a lower errorrate.

USA: Individual retirement accounts (1998)Providing account information over the internet costs 1 percent of the cost of providingthe information by an operator responding to an 800 number and 4 percent of the cost ofproviding it by an automated 800 number.

USA (California): Biometric technologies for fraud detection in Social Security (1994)California estimates that finger-imaging welfare clients in 7 counties saved the State over$86 million in the first 2 years of operation.

February 2001 22

Cost and Benefits:Lessons

• Analysis of costs and benefits of major ICT investments in SP as basis of decision-making and corrective actions

• Major ICT investments in SP offer a huge potential of benefits– policy, program, agency, and public level– non-measurable benefits may be critical

• Initial higher costs may result in higher benefits

• Don’t underestimate recurrent costs

February 2001 23

Content





• Conclusions

February 2001 24

Design and Implementation:Key Success Factors

• Design & Implementation– Management commitment– User involvement– Capacity building– Flexibility in change– Professional project management

• Design– Early consideration of ICT potential for transformation– Professional planning

• Implementation– Professional procurement– Sustainability

February 2001 25

Design and Implementation:ICT procurement

THE WORLD BANKREPUBLIC OF POLANDMINISTRY OF

LABOUR AND SOCIAL POLICY

• Many problems with IT procurement• Multiple versus turnkey contracting

• Flexible procurement rules

• Good planning and professional advice• Procurement capacity of agency

February 2001 26


Buyer open to

evaluate differenttechnicalsolutions?

Type ofprocurement?

Use StandardRequest for

Proposals forConsulting

Services

Use SBD for Procure-ment of InformationTechnology Products(off-the-shelf supplyand maintenance)

Straightforwardconsulting services

Straightforward Supplyand Maintenanceof Technology

Complex IT Supply, complex softwareengineering, system development, orintegration services

Use Two-Stage SBDfor Procurement of

Information Systems

Use Single-Stage SBD forSupply and Installationof Information Systems

Start

YesNo

February 2001 27


Name Document Title Comments

ITP SBD Standard Bidding Documents This SBD is for the majority of straightforward technologyfor Procurement of Information supply procurements. It emphasizes strong, professional Technology Products (off-the-shelf procurement of both off-the-shelf technology and of the supply and maintenance) maintenance and support services essential to make it work.Trial Edition, Issued in August 2000. The ITP SBD is also used to implement new process and

content innovations resulting from feedback from users and IT Industry, and therefore it will become a core part of future SBDs.

1Stg. IS SBD Single-Stage SBD for Supply and This SBD can be used for single stage, complex IT Supply and Installation of Information Systems Install cases where the services component of the procurementTrial Edition, 2/99, Rev. 8/00 goes beyond the routine installation and maintenance of

technology. This SBD will be used as a basic building block for the ”Information Systems Engineering” SBD which will target the whole range of complex ICT procurement cases and is targeted for issue by OCSPR in late FY2001.

2Stg. IS SBD Two-Stage SBD for Procurement of This is a transitional SBD for two-stage ICT procurement, Information Systems pending development of the ”Information SystemsTrial Edition, 9/96, Rev. 8/00 Engineering” SBD targeted for issue by in late FY2001.

February 2001 28

Design and Implementation:Multiple vs. Turnkey Contracting

Multiple Contracting Turnkey Contracting

Pros ? Choice for most economicalproposal for each ICT component

? Small manageable contractsminimizing the risk of failure

? Control in user hand without anymonopoly situation

? Specialist contractors

? Flexible timetable

? Single point of contact

? Single responsibility for wholesystem

? ”Bulk-Buy” price negotiatingpower

? International response to tender

Cons ? Requires management capacityand overhead

? Multiple bid preparation

? Responsibility in case of systemproblems

? Loss of information due to lack ofcommunication

? Dependent on single firmwithout control over contractorresources (number, quality,turnover of staff over time)

? Work quality of sub-contractorsand subcontracting costs

? Complex procurement exercisewhich can be inflexible

February 2001 29

Design and Implementation:Lessons

• Take potential of ICT into consideration at the very beginning

• Align processes, organizations, regulatory framework, and ICT systems towards the common goal

• Find committed people and involve them

• Invest in training to build professional capacity and keep it

• Select appropriate procurement approach

• Be prepared for the time after project completion

February 2001 30

Content





• Conclusions

February 2001 31

Conclusions:Implications for our SP work

• Bridging the Digital Divide: knowledge building on ICT in Social Protection to support transformation and electronic service delivery rather than automation

• Review ongoing projects in terms of possibility of adding ICT opportunities

• Identify, design, and implement stand-alone ICT projects (SP, HD, E-Government)

• More learning events on sharing knowledge on ICT in SP

February 2001 32