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Steven Clift
Democracies Online


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From:                   "Dan Jellinek" <[EMAIL PROTECTED]>
To:                     <[EMAIL PROTECTED]>
Subject:                E-Government Bulletin - April 2001
Date sent:              Wed, 4 Apr 2001 14:43:39 +0100


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[Issue starts]

E-GOVERNMENT BULLETIN
The Email Newsletter On Electronic Government,
UK And Worldwide.

ISSUE 98, APRIL 2001


IN THIS ISSUE:

Section One: News
Gateway closed to foreign buyers? - government systems sale controversy;
Government in smart card quandary - banks fail to deliver;
Procurement office unveils online tendering;
Treasury banks on Internet savings - the new Invest to Save round;
Go configure - domain name system spring-clean;
'Beyondbricks' runs over deadline - DTI e-entrepreneur portal delayed;
Pathfinders forge ahead - council innovators selected;
News in brief: Public debate online, Age Concern e-politics; Foreign Office award.

Section Two: Conference report
- Promoting Electronic Government

Section Three: Opinion
- Teledemocracy

Section Four: Analysis
- E-procurement

[End of contents]


GATEWAY CLOSED TO FOREIGN BUYERS?

Media reports that the UK government's 'Gateway' online transaction platform is to be
sold abroad by private sector firms including Microsoft are being played down by the
government, amid controversy over the use of public funds to develop a commercial
package.

Speculation on sales of the package began with the appearance of e-Envoy Andrew
Pinder alongside Microsoft Chairman Bill Gates at a US conference to demonstrate the
Gateway to government leaders from across the world.

The government has so far spent 18.3 million UK pounds developing the Gateway
platform. Because the contract is confidential it is not known exactly what stake the
government has in the project, although it is expected to invest further large sums as 
it
progresses.

A Cabinet Office spokesperson played down the controversy this week. She told E-
Government Bulletin that although foreign sales could eventually occur, there was a
clause in the development agreement stipulating that government approval would be
needed.

The Gateway is based on an 'XML' system allowing information to be given invisible
tags so it can be easily exchanged. The system has so far been used by the Inland
Revenue to allow online payments, by the Customs & Excise to deal with VAT and by
the Ministry of Agriculture, Fisheries and Food to enable farmers to claims EU 
subsidies.

Other partners in the Gateway project include Dell, which supplies the hardware, and
Cable and Wireless, which manages the servers.


GOVERNMENT IN SMART CARD QUANDARY

The government looks set to be forced into funding its own nationwide smart-card system
to enable secure access to public services including payments online. Ministers had
hoped to piggyback on a suitable private sector smart card system from the high street
banks, but are now resigned to the fact that this will not occur.

The news emerged at last week's 'Promoting Electronic Government' (PEG) conference
in Birmingham. Ian White, deputy director at the Office of the e-Envoy, said the
government "had been waiting for banks to introduce smart cards or other authentication
technology but they have not. We are therefore in something of a quandary - either we
introduce such a system ourselves, perhaps starting by running trials with public 
servants,
or we accept what banks accept - simple access cards protected only by a PIN number
and a security word like a mother's maiden name."

However, White admitted that banks' higher risk thresholds meant they were happy to
use a simpler and more accessible system like PIN numbers, and simply cover their
losses to fraud from profits. Public sector bodies, however, could not accept any
significant levels of risk where citizens' personal health, tax or other sensitive 
data was
concerned, and would therefore have to use a more secure system such as a smart card
system.

A government-led national smart card system will be extremely expensive to set up, and
will have to be voluntary to avoid charges of 'big brother' style invasion of privacy.
However, it now seems that the government will have no choice but to act if it is to 
meet
its targets for online public services by 2005.

* Full PEG report: see section two, this issue.


PROCUREMENT OFFICE UNVEILS ONLINE TENDERING

The Office of Government Commerce has announced the start of the six-month trial of an
online tendering system for public sector contracts which it hopes will produce tax
savings of 13 million UK pounds over four years.

The announcement of the pilot, provisionally called 'OGC TenderTrust', comes within
days of the office formally taking control of a number of previously autonomous central
government buying units. On 1 April the former Property Advisors to the Civil Estate
(PACE), the CCTA, and The Buying Agency - already merged into the OGC but having
up until now retained their separate identities - ceased to exist. The last of these 
has now
been re-branded 'OGCbuying.solutions'.

OGC believes the new tendering system, if it passes the pilot stage, could reduce 
costs for
suppliers by 37 million, a figure which it hopes will entice more companies into the
sector. Many economists believe a larger pool of suppliers results in lower prices to 
the
buyer, which in this case would translate into tax savings.

Several other government agencies are taking part in the TenderTrust trial, of which 
the
biggest is the NHS Purchasing and Supply Agency (PASA), a new executive agency of
the Department of Health (http://www.pasa.doh.gov.uk)

PASA will use part of its 2.3 billion pounds worth of directly negotiated NHS contracts
as the testbed for the TenderTrust.

The Internet-based system will use PKI encryption and smartcard-based digital
certificates, provided and guaranteed by the Royal Bank of Scotland
(http://www.royalbankscot.co.uk) with software company TrustMarque
(http://www.trustmarque.com).


TREASURY BANKS ON INTERNET SAVINGS

Some 67% of the government's new 'Invest to Save' budget - a Treasury-run scheme to
fund civil service efficiency programmes - is to be spent on Internet-related projects,
according to E-Government Bulletin research.

Of the 123 projects given funding, some 80 had a significant Internet element, with a
total value of 41 million UK pounds. Seven of the top ten biggest recipients had an
Internet element to their proposals. The biggest on all counts was the Home Office 
which
received a total of nearly four million pounds to finance the development of an
interlinked police portal.

Also in the top ten were five locally-led projects, including Kingston Council in 
London
which was allocated 3.5 million for a public service portal. Of the budget as a whole
locally-led projects received 16.7 million pounds, or around 40% of the budget for
Internet projects.

Below is list of the top ten recipients with a significant Internet element to their 
proposal.
For a complete list see: http://www.hm-treasury.gov.uk/press/2001/p28_01.html

*Home Office, 3.9 million pounds: a national internet portal for the police
*Royal Borough of Kingston, 3.5m: a single access point to public services in South
West London
*Department of Social Security, 1,9m: services for the elderly via interactive digital
television
*Department of the Environment, Transport & the Regions, 1.8m: an electronic interface
for all English councils
*Department of Trade & Industry, 1.5m: online facilities to apply for export licences
*Office of Fair Trading, 1.5m: a system to support trade regulation
*Nuneaton and Bedworth Borough Council, 1.3m: online support for independent living
for older people
*Southern Derbyshire Health Authority, 1.2m: interactive website on drug use
*Liverpool City Council, 1.1m: online services for young people in need, their parents
and support services
*Worcestershire County Council: 0.9m: online social transport planning


GO CONFIGURE

Government web site owners are being urged to participate in a new campaign to clean
up the Internet domain name system (DNS), used by computers to route Internet
communication to recognisable domain names.

All organisations that run their own Internet servers run a piece of software to route
domains, but it has emerged that most of this software is incorrectly configured. The
result can be delays to or failure of email delivery, and loopholes that hackers could
exploit to break into sites.

Christian de Larrinaga, chairman of the Internet Society of England, the group
spearheading the campaign, said good housekeeping on government servers is crucial to
the government's drive to portray the UK as a new economy pioneer.

The 'DNS Spring Cleaning' campaign is at:
http://www.domainspringclean.org.uk/


'BEYONDBRICKS' RUNS OVER DEADLINE

The Department of Trade and Industry has been forced to delay the launch of its portal
for Internet entrepreneurs by two months, E-Government Bulletin has learned. The DTI
said the site - which should already have gone live - will now go live in late May.

'Beyondbricks' (http://www.beyondbricks.com), which is being financed as part of the
DTI's 5.5 million UK pound Internet Mentoring Initiative, will contain research, news
and an entrepreneur community area. The consortium behind the development are
venture capital networking company Venturedome (http://www.venturedome.com);
marketing company Wilson Harvey (http://www.wilsonharvey.co.uk); public sector
grants information company J4b (http://www.j4b.com); and GroovyTrain
(http://www.groovytrain.com), an online community management software developer.

The DTI has committed itself to investing 1.5 million UK pounds in the project between
1 January 2001 and the start of 2003. Another three million UK pounds will be
distributed in tranches of around 100,000 UK pounds to entrepreneurs based in the north
of the UK. The remaining one million pounds will be paid to the Inland Revenue in the
form of VAT.

Charlie Hoult, founder of technology incubator Metrocube (http://www.metrocube.com/)
which is leading the site's development, said Beyondbricks will be marketed primarily
though a roadshow tour of regional business networking organisations and was hoping to
have a presence on the Cabinet Office's UKonline portal. Hoult also said he hoped to 
co-
operate with the DTI's Small Business Service, which has ambitions to create a portal 
for
entrepreneurs in all sectors.


PATHFINDERS FORGE AHEAD

The government has named the 25 successful 'pathfinder' local authority Internet
projects, which are now eligible for a share of 25 million UK pounds to be allocated by
the end of 2002. The projects are linked to consortia of councils and private sector
partners, with more than 100 local authorities involved in all. The winners were 
selected
from 140 projects involving 220 councils.

The hunt for pathfinders was initiated by local government minister Hilary Armstrong in
February 2000. Projects range from e-procurement strategies in Leeds and London to
electronic payment for public transport and college meals in Southampton and Cornwall.
Another plan will see the reporting of potholes and faulty street lamps online.

For more information about these projects see:
http://www.press.detr.gov.uk/0103/0164.htm


NEWS IN BRIEF:

COMMONS GOAL: A new independent virtual debating and consultation chamber
aimed at boosting public input into democracy has been proposed by the academics Jay
Blumler and Stephen Coleman. `Realising Democracy Online: A Civic Commons in
Cyberspace' is available to download from the publications section of the Citizens 
Online
site:
http://www.citizensonline.org.uk/

MATURE POLITICS: The charity Age Concern has launched an e-democracy web site
aimed at politicising older people. See: http://www.ageaction.org.uk

BEST IN SHOW: The Foreign and Commonwealth Office was named best government
web site at the Government Internet Forum web awards. Thirty-eight sites were
nominated. See:  http://www.internetforum.gov.uk/awards.htm


[Section One ends]


SECTION TWO: CONFERENCE REPORT
- PROMOTING ELECTRONIC GOVERNMENT

COLLABORATION HANGING ON PEG
By Dan Jellinek  [EMAIL PROTECTED]

A lack of collaboration between local authorities to create 'joined-up' public 
services on
the Internet was exposed by last month's Promoting Electronic Government (PEG)
conference in Birmingham.

PEG (http://www.peg.org.uk) is a consortium of government, local authority and private
sector organisations partially backed by Treasury 'Invest to Save' money. It is 
developing
tools and networks to help councils develop e-government strategies.

Ian White, deputy director of the e-Envoy's office (http://www.e-envoy.gov.uk), said
there was currently a strong need for more peer-to-peer networking among councils to
develop online services.

He said his office's first review of councils' e-government strategies, due to be 
published
shortly, would expose this failure. "Sometimes one council said that it was working 
with
another, but there was no mention of that in the other council's strategy!"

One option thrown up in later discussion was for regional assemblies to play a role in
bringing councils in an area together to join up online services more.

The PEG initiative grew out of a project called 'BICIS' - 'Benchmarking in Community
Information Services' - which originated with the former Local Government
Management Board in conjunction with the 'EIP Group' of councils (another acronym
standing for Exchanging Information with the Public - see http://www.eipdg.org) led by
the consultants CDW & Associates.

To this alphabet soup of acronyms some Treasury money was added and the result was
PEG, a project which came of age in Birmingham with a strong turn-out of people from
councils across the UK and private sector partners.

The project is working on a series of benchmarking tools to help councils assess where
they are in developing an e-government strategy and make progress towards moving all
their information and services online.

A core group of nine PEG councils has been formed to share best practice in areas like
the management of one-stop call centres for council services.

Tracy Fielding, Assistant Director, Financial Support at PEG core group member Bolton
Metropolitan Borough Council, had interesting insights to offer in this field.

Bolton set up a centre allowing public help staff to draw on data by switching between
six or seven different computer systems for different council services, ranging from 
fairly
advanced systems to an old 'green screen' system for council tax, Fielding said.

The service was centralised, but manned by existing customer services staff from the
different relevant bits of the organisation. However, this was not a success, she 
said: of
the staff used, less than half took to the new roles well, and the remainder suffered 
from
high stress levels and failed in their work.

"In future, we would centralise but we would tell departments that we would not be 
using
their staff, but recruiting new staff."

Another 'real world' lesson came from Tim Anderson, Single Point of Access Co-
ordinator at Norfolk County Council. He pointed out that, while pilot e-government
schemes like call centres were relatively inexpensive, full roll-out across a council 
would
mean major expenditure, even if savings were to be expected in the long run.

"Now we've got four call centres, everyone wants one, and we can't deliver that without
savings in other parts of the organisation," he said.

Another major strand of the PEG project is a re-examination of procurement processes
for technology products and services. Richard Steel, Head of IT at Newham Borough
Council which has used PEG to overhaul its procurement processes, said one of the
difficulties with procuring e-government services is that "we are evaluating 
'vapourware'
- it is hard to see where we will be with technology in two years' time, let alone 
within a
five-year contract or a 25-year PFI deal."

He said councils could obtain a better deal from suppliers if they worked together 
through
initiatives like PEG. "We turn ourselves in 400 or 500 separate markets, whereas in
reality there is one market for e-government solutions. Suppliers also want to sell us
piecemeal solutions, like how to pay parking tickets online, when what you actually 
need
is to develop the back-room processes to pay for everything online, such as credit
checking and authentication."

One delegate strongly agreed: "I think we are being completely and utterly manipulated
by the IT industry".

On the other hand, councils must be careful to avoid a situation where by grouping
together to increase buying power they exclude smaller suppliers, Steel said. "It is 
also
important to encourage local suppliers."

The PEG project now plans to increase its membership from its current core of nine to 
50
councils by the end of April and a further 50-75 in September, said Roger Wilson,
Principal Consultant at project leader CDW & Associates. So by the end of the year more
than 100 councils should be involved, grouped in regional 'clusters', and backed up 
with
web-based project support.

Another aim for PEG is to develop a 'good practice database' of e-government case
studies, Wilson said. It had originally hoped to have this facility running by now, 
but it
had proved a major task to put the studies into a standard format and it would now be
delayed until May.

All the project's strands will be drawn together at a further conference in March 2002.

[Section Two ends]


SECTION THREE: OPINION
-TELEDEMOCRACY

THE DAY OF THE BUREAUCRATS
By Ignace Snellen  [EMAIL PROTECTED]

It is a common contention that the representation of people by parliamentarians, 
members
of Congress and local councillors has been a second-rate democratic arrangement. Robert
Dahl, a well-known American thinker on democracy, once characterised representative
democracy as "a sorry substitute for the real thing".

The common complaints over existing democratic arrangements are said to be that
members of representative assemblies represent partisan interests under the guise of 
the
general interest; that representatives tend to follow only their own partial 
understanding
of what is good for their constituencies; and that they are more responsive to the
requirements of the political party they belong to than to the citizens whose mandate 
they
have received.

Since their introduction, information and communications technologies have helped
expose the failings of the traditional representational arrangements. They have done 
this
by making the distortions and misrepresentations of the preferences of the electorate
more visible.

The growing popularity of referenda and other forms of interactive policy-making shows
that people have a preference for direct democratic arrangements over the existing
representative arrangements. As well as highlighting representational democracies
shortcomings, the new technologies also show promise as a means of delivering direct
democracy. Internet technology already allows for continuous opinion polling, instant
referenda, teleconferencing, digital cities and discussion groups.

But technology is no panacea. The promise of direct democracy through technology
cannot be fulfilled for two important reasons:

First, direct democracy would lead to a single-issue approach. Successive majorities on
single issues would lead to incompatible policies within and between sectors. The
complexities of policies require intermittent and iterative decision cycles, which are 
not
feasible through referenda.

Second, most political problems cannot be reasonably tackled by asking questions with a
simple 'yes' or 'no' answer, in the manner of opinion polls and referenda. Unless 
direct
democratic mechanisms take into account the relative intensity with which opinions are
felt they would introduce a dictatorship of successive majorities.

So just as technology-driven direct democracy offers no real solution to the need to
legitimise representative democracy, 'technological fixes' seem unlikely to increase
participation. It seems unlikely that people will flock to the polling booth, just 
because
they are offered the opportunity to cast their vote close to the shopping centre or 
their
office.

The information society depends on government agencies gaining a clearer picture of the
everyday life of the citizens, displacing their traditional focus on understanding
politicians.

As a result of the bureaucracy's new tack, citizens are beginning to interact with 
public
servants directly, without intermediation from politicians. Politicians too are 
relying more
heavily on the expertise of the technology-enabled bureaucracy. In this way, public
servants are taking on a representative role.

Democracy as it is now being practiced is built up from two different channels of
democratic participation: one via elected representatives, and one via non-elected
bureaucrats. But existing theories of democracy ignore this representative function of
bureaucracy, with the only intermediaries recognised by most formulations of democracy
being political parties and special interest groups.

As long as formal democracy theory practically excludes discussion about the
representative potentialities and actual representative roles of bureaucracies, 
unelected
officials have the potential to marginalise political representatives.

Any future formulation of democracy which takes account of the expanding role of the
civil servant will almost certainly require that bureaucracies are completely open 
about
the way in which they develop and implement policies. Untrammelled access to data used
in the drafting of policies and the data created during their implementation is likely 
to
become a cornerstone.

*Ignace Snellen is a Professor at Erasmus University, Rotterdam, The Netherlands. This
article is based on the paper 'ICTs and the future of democracy' from the International
Journal of Communications and Law (http://www.ijclp.org)

[Section Three ends]


SECTION FOUR: ANALYSIS
- E-PROCUREMENT

CREATIVE BUSINESS MODELS AND TOUGH CHOICES
By Dan Jellinek  [EMAIL PROTECTED]

Public-private partnerships for the provision of e-government services are unavoidable.

As Ian Kearns, Research Fellow in Digital Society at the Institute for Public Policy
Research, explains: "The range of skills and expertise required to turn national
government into digital government is enormous, and the government simply doesn't
have all the skills in house to do the job.

"There is no shame in this. We live in an era when corporate alliances are multiplying 
for
precisely the same reason: it is increasingly difficult for any organisation to meet 
all its
client needs without working in close partnership with others. The crucial issue from 
the
citizen's point of view is not whether partnerships should happen or not but under what
conditions they should happen. Ultimately, the most important point is that whoever
delivers the service to the citizen does so in a transparent and clearly accountable 
way."

Major public-private partnerships for e-government can be complex affairs, with many
elements beyond the mere provision of technology.

One innovative way councils can take the lead in stimulating a switched-on local
economy in their area is to set up an environment through which their own procurement
of goods and services from local businesses takes place online. This stimulates local
businesses to expand their online activity.

Ultimately the precise shape of a public-private partnership and the allocation of the
parties' respective roles will be determined by the way the relationship is financed, 
says
David Mitchell, Head Of Regional Strategy at BT.

There may be an element of funding from the public sector body, or the private sector
partner may put in money to develop a service which could be commercially successful
elsewhere. Other resources could come from Europe, and each line of funding creates a
line of control and a set of particular operating conditions.

"In a true partnership the parties share risk," Mitchell says. "The precise rules 
attached to
funding elements will determine which partners rise to the top and take a lead role. 
For
example, if you're talking about a partnership to tackle the digital divide, an 
organisation
from the voluntary sector is likely to take the lead.

"But if you are looking at a training or knowledge transfer project, colleges and
universities would be likely to lead. After the lead partner has emerged, you need to 
look
at what is needed to put a funding bid together. The art of it is to find creative and
innovative business models."

Even after funding has been secured from Europe, central government or another source,
it is always time-limited, and there will therefore be a further problem to solve of 
how the
project continues by becoming self-sustaining after the funding period.

"Running them during the funding period is relatively easy - but it is much harder to 
fund
projects that carry on after that period," Mitchell says. "So at the outset, you need 
to work
out what happens when the funding stops. Some private partners are only there as long 
as
there is honey dripping from the tree, but disappear when it dries up."

One example of a complex partnership currently underway is the 'Digital Peninsula
Network' in Cornwall (there is a web site in development for the project at
http://www.digitalpeninsula.com).

The initiative has involvement from the EU's structural fund, Cornwall County Council,
district councils such as Penwith and Kerrier, Prosper (http://www.prosper.co.uk) and
private sector firms including BT, Cisco Systems, Nortel and Hewlett Packard.

The idea is to foster an 'e-community' to promote inward investment in new media
industries and support geographically isolated small businesses by creating an 
interactive
network for them.

Mitchell says the partners in the programme are looking to solve the post-European-
funding period problem in Cornwall by setting up a not-for-profit stakeholding
organisation to lead the partnership.

The stake-holding organisation will generate revenue through innovative business models
which spread resources across periods of high and low funding, and use this revenue to
stimulate and sustain activities not commercially viable under normal rates of return 
or
pay-back periods.

One of the key goals of local partnerships, particularly in areas with weaker economies
like Cornwall, is also to encourage and stimulate economic activity among indigenous
companies, Mitchell says.

"For example, if the stake-holding organisation was looking to outsource an aspect of 
the
work, it should be looking at how it could use a local company. In this way it can 
leave a
legacy to the area, by nurturing local small and medium-sized businesses.

"Large private companies involved in a partnership like this, which are also major 
local
employers, have a dual responsibility to juggle corporate and social responsibilities 
with
commercial responsibilities to shareholders," he says.

Finally, looking at central government, there is another way that the public sector can
benefit from close working with private sector partners to develop e-government: by
drafting in key individuals on secondment to senior civil service posts to inject a 
bit of
real-world grit into policy implementation.

Although New Labour has pursued this policy further than any other government, with
businesspeople on secondment to key innovation and technology-related teams like the
Performance and Innovation Unit in the Cabinet Office and the Office of Government
Commerce in the Treasury, such arrangements do not always work out well. "There can
be a level of suspicion and a clash of cultures which is counter-productive," says Ian
Kearns.

"Secondments also mask a further problem which has been brought into sharp relief by
the digital revolution. The government needs to attract more high quality people. This
would help in technical positions to prevent some of the IT procurement disasters of
recent years. To get the people though, the government needs to consider paying much
more."

So it all boils down to funding - another tough choice for Tony Blair in his second 
term?

[Section Four ends]


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A searchable archive of our back-issues can be found on our web site.

[Issue ends]

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