Chapter 2 provides a brief theoretical consideration of the concept of public governance applied to digital government transformation while identifying what elements are necessary and applicable to achieve robust governance and sound digital government policies.
The E-Leaders Handbook on the Governance of Digital Government
OECD Digital Government Studies
2. The concept of public governance and its application to digital government
Abstract
Understanding the concept of public governance
Public governance can be defined as “the formal and informal arrangements that determine how public decisions are made and how public actions are carried out, from the perspective of maintaining a country’s constitutional values in the face of changing problems, actors and environments” (OECD, 2005[3]). This administrative and institutional setting defines and regulates how stakeholders interrelate and co-operate in decision-making processes, take part in the policy process and assume the provision of public services (OECD, 2018[4]).
This modern conceptualisation of and approach to public governance arises from the crises of governance that economies and societies have been through due to failures of governments to govern, the un-governability of systems and/or the need to manage and mitigate the associated systemic risks (e.g. financial crisis of 2007-2008, terrorism, wars and humanitarian crises, COVID-19 pandemic, climate change).
Towards good public governance
Public governance appeared to be a helpful response to the contradictions and uncertainties engendered by political, economic, societal, technological and environmental changes. It emphasises the multiplicity and diversity of actors who intervene and contribute to the management of public affairs. Governability challenges invite government authorities at the national, regional and local levels to turn to interlocutors outside the public sector, such as non-profit organisations, private companies and citizens, who can contribute solutions to the common problems of the economy and society.
In doing so, governance emphasises the sharing of responsibilities among the state, private sector and civil society in the decision-making process. Governments that were previously considered as interventionists and regulators must now transition towards the role of facilitator, strategist, consensus-builder and co-creator. Fulfilling these roles and having the competence/values through good public governance is key to maintaining peoples’ trust in the face of crises and unpredictability (see Table 2.1).
Table 2.1. The competence-values framework for citizens’ trust in public institutions
Good public governance is essential to help governments fulfil their mandates
Source: (OECD, 2017[5]), Trust and Public Policy: How Better Governance Can Help Rebuild Public Trust, OECD Publishing, Paris,
In this ecosystem of interactions and collaborations around the decision-making processes of the state, public governance needs to ensure above all the right balance of powers among the stakeholders from the public sector, private sector and civil society. Creating an area of security and stability, respecting the rule of law, protecting fundamental human rights and ensuring the separation of powers are crucial. Governance principles, arrangements and mechanisms, therefore, help stakeholders to organise these interests, exercise their duties, rights and obligations, and resolve their differences.
Numerous intergovernmental organisations are working on establishing policies, rules, structures, and processes to develop principles of good public governance. All OECD member countries have ratified at least one international human rights instrument, thus providing authorities, citizens and donors with a universal and legitimate reference framework for governance reforms. The United Nations Member States have reaffirmed their commitment to improving the political environment in critical areas such as peace, security, development, human rights and democracy in the United Nations Millennium Declaration (United Nations, 2000[6]). The main elements contained in these instruments often vary according to the context. However, common frameworks tend to imply good public governance should involve the principles of responsibility, transparency, the rule of law and participation. For instance, the European Commission’s 2001 White Paper on Governance sets out five principles to be respected for good and more democratic governance in European Union Member States (i.e. openness, participation, accountability, effectiveness, coherence) (see Box 2.1). The establishment of an effective and efficient governance system requires the adoption of good practices in management, ethics and social responsibility. Adopting and implementing responsible governance principles in public administrations is fundamental to achieving these goals.
Box 2.1. Principles of Good Governance from the 2001 White Paper on European Governance
Five principles underpin good governance and the changes proposed in the White Paper: openness, participation, accountability, effectiveness and coherence. Each principle is important for establishing more democratic governance. They underpin democracy and the rule of law in the Member States, but they apply to all levels of government – global, European, national, regional and local. They are particularly important for the Union in order to respond to the challenges highlighted in the preceding chapter.
1. Openness: The Institutions should work in a more open manner. Together with the Member States, they should actively communicate about what the EU does and the decisions it takes. They should use language that is accessible and understandable for the general public. This is of particular importance in order to improve the confidence in complex institutions.
2. Participation: The quality, relevance and effectiveness of EU policies depend on ensuring wide participation throughout the policy chain – from conception to implementation. Improved participation is likely to create more confidence in the end result and in the Institutions which deliver policies. Participation crucially depends on central governments following an inclusive approach when developing and implementing EU policies.
3. Accountability: Roles in the legislative and executive processes need to be clearer. Each of the EU Institutions must explain and take responsibility for what it does in Europe. But there is also a need for greater clarity and responsibility from Member States and all those involved in developing and implementing EU policy at whatever level.
4. Effectiveness: Policies must be effective and timely, delivering what is needed on the basis of clear objectives, an evaluation of future impact and, where available, of past experience. Effectiveness also depends on implementing EU policies in a proportionate manner and on taking decisions at the most appropriate level.
5. Coherence: Policies and action must be coherent and easily understood. The need for coherence in the Union is increasing: the range of tasks has grown; enlargement will increase diversity; challenges such as climate and demographic change cross the boundaries of the sectoral policies on which the Union has been built; regional and local authorities are increasingly involved in EU policies. Coherence requires political leadership and a strong responsibility on the part of the Institutions to ensure a consistent approach within a complex system.
Each principle is important by itself. But they cannot be achieved through separate actions. Policies can no longer be effective unless they are prepared, implemented and enforced in a more inclusive way.
Source: (Commission of the European Communities, 2001[7]), European Governance – A White Paper,
https://ec.europa.eu/commission/presscorner/detail/en/DOC_01_10.
Public governance for public sector reform
Governments are increasingly concerned about reforming their capacity and capability to improve their functioning. The philosophy of early 20th century public administration was mainly concerned with the identification of governance and organisational values that could generate stable and lawful standards, suitable choices, effective execution processes and top-down power. Max Weber’s classical and ideal type of bureaucracy offers a solution owing to its rational-legal authority, rule-driven methods, lateral division of labour and hierarchical policy-making framework (Martin and Downs, 1969[8]). Whereas Max Weber viewed apoliticism, precision, reliability and efficiency as beneficial inputs to public governance, other scholars regarded bureaucracies as an issue that prevents a dynamic adjustment of the public sector to cultural modifications and circumstances (Martin and Downs, 1969[8]). These scholars that opposed Max Weber asserted that government bureaucracies appear to be more calcified as they grow larger and use more energy and assets for inner co-operation and external border wars, which decreases their capacity to change and respond to contextual modifications (Sørensen and Torfing, 2011[9]).
As a result, efforts to render the public sector more agile, adaptable and accountable have focused on the communication and interactions between the public sector and other stakeholders as a vehicle of public governance. Integrated forms of governance, such as quasi-markets, alliances and networks, are increasingly seen as ways to improve overall efficiency by dismantling traditional bureaucracies. These types of governance can be implemented in a versatile manner, empowering and promoting performance that is evaluated not only in terms of top-down norms but also by bottom-up demand-side requirements. Mobilising stakeholders in the ecosystem is particularly crucial for coping with ambiguity and conflicts in economic and societal changes. Participatory governance provides a means to involve stakeholders with a possibly stronger expertise in these issues and encourage them to contribute to better public outcomes.
Applying public governance to digital government
The challenges of digital transformation
Disruptions in the way people transact, work and interact due to digitalisation and the use of emerging digital technologies such as artificial intelligence (AI), blockchain, the Internet of Things, have brought into question the fundamentals of governance across the public and private sectors. With shifting balance of powers among stakeholders from the public sector, private sector and civil society, the interests of these actors have once again been thrown into competition and conflict (e.g. users vs. advertisers, service providers vs. platform providers, content creators vs. publishers to name a few). The borderless Internet was also until a decade ago largely underregulated by governments across the world. With digital transformation touching every sector of the economy and every segment of society, governments have found themselves in a position of having to intervene to ensure a digital transformation that is human-centred and ensures inclusive, equitable and sustainable outcomes for citizens and businesses alike.
The governance of digitalisation, therefore, requires governments to govern the use of digital tools and data in the public sector and beyond on the one hand, and manage their digital transformation of the public sector with new and adapted governance approaches on the other hand. The scope of the E-Leaders Governance Handbook covers both but focuses more on the governance of the latter. It explores in-depth the forms of governance principles, arrangements and mechanisms that are fit for a digitally-enabled state: one that calls for greater openness, ethics, transparency, privacy, security and integrity on the part of the government; and more integration, participation and co-operation with the wider ecosystem to ensure good public outcomes in the face of systemic challenges.
The importance of governing digital government
The increasing use of information and communication technologies (ICT) in the early 2000s led to the rise of e-government as an integrated and continuous way of providing public services in contrast to what was previously an analogue approach (see Figure 2.1). E-government, which involves “the use [of ICTs], and particularly the Internet, as a tool to achieve better government” (OECD, 2016[10]), implies a modernisation of the functioning of public administrations; administrative procedures such as the collection, processing and exchange of data within or among administrations to provide electronic public services for citizens and businesses. It also enables a faster exchange of information between the administration and other stakeholders, an easier access to information, increased transparency and a reduction in the costs of the administration – thereby becoming more efficient and better meeting expectations.
Figure 2.1. Digital transformation of the public sector
Source: Based on (OECD, 2014[2]), “OECD Recommendation of the Council on Digital Government Strategies”.
The transformation from e-government to digital government (see Figure 2.1) came to the forefront of global policy dialogue as governments began to prioritise the use of digital tools and data in internal operations, policy processes and public service provision that meets users’ needs at the core. This includes adopting open, data-driven and risk-management approaches that involve stakeholders from the start to the end. Digital government, as such, refers to “the use of digital technologies, as an integrated part of governments’ modernisation strategies, to create public value. It relies on a digital government ecosystem comprised of government actors, non-governmental organisations, businesses, citizens’ associations and individuals which supports the production of and access to data, services and content through interactions with the government” (OECD, 2014[2]).
In order to become digitally mature, the right governance frameworks are required to enable a system-wide transformation that concurrently orientates towards meeting the needs of users and building public trust. This means that more than just developing the right capacities and capabilities to optimise the value of digital technologies and data in the public sector. Governments need to have the leadership, foresight, proactiveness, resources, diversity of teams, policy coherence with other reforms, institutional co-ordination and ethics to deliver.
To have a public sector with the right competencies and values for the digital age, the state also needs to fundamentally reinvent itself. Digital transformation is not just about adopting new technologies and techniques. It requires a whole-of-government transformation of institutional governance, job profiles, human resources management, working methods, culture and mindsets (Welby and Tan, forthcoming[11]). Only then can individuals and communities reap the widespread advantages that the digital transformation of the public sector can offer.
Defining public governance in the context of digital government
The OECD Recommendation of the Council on Digital Government Strategies (2014) aims to help governments adopt strategic approaches in the use of digital technologies and data, in order to encourage more transparent, inclusive and trustworthy engagements and relationships between government and the people (OECD, 2014[2]). It sets out 12 principles that can be grouped into three main pillars: “Openness and Engagement”, “Governance and Co-ordination” and “Capacities to Support Implementation” (see Figure 1.1). According to the Recommendation, the development and implementation of digital government strategies should be conducted in “openness”, leveraging stakeholder “engagement and participation”, a “data-driven culture” and “a risk management approach” to security and privacy. Sound digital government reforms should also be supported by “leadership and political commitment to the strategy”, the “coherent use of digital technologies across policy areas and levels of government”, “effective organisational and governance frameworks to co-ordinate the implementation of the digital strategy within and across levels of government” and “international co-operation”. Concurrently, the implementation of digital government strategies requires capacities to “develop clear business cases”, “manage and monitor” the implementation process, “procure digital technologies”, all enabled by “general and sector-specific legal and regulatory frameworks”.
Building on these principles in the Recommendation and drawing on the experience of the OECD in analysing countries’ digital government transition, the OECD Digital Government Policy Framework was designed to identify key drivers of digital government maturity. The six dimensions of the Framework make up the essential characteristics that the OECD ascertained to be crucial to have an effective design and implementation of digital government strategies (OECD, 2020[12]) (see Figure 2.2):
Digital by design: “Digitalisation” is considered not only as a technical topic, but a mandatory transformative element that is embedded throughout public policy and service processes.
Data-driven: Data are used and managed as key strategic assets in a trustworthy and secure way to generate public value throughout the public policy and service design and delivery cycles.
Government as a Platform: Civil servants are able to focus on meeting the needs of users by working in an ecosystem that leverages shared and integrated tools and resources.
Open by default: Public policy processes, digital tools including algorithms and government data are made available for the public to engage with within the limits of legislation.
User-driven: Users are awarded a central role in shaping and informing public policy and service design and delivery processes, and this is conducted inclusively.
Proactiveness: Civil servants anticipate people’s needs individually and collectively and take steps to respond to them rapidly.
Figure 2.2. The OECD Digital Government Policy Framework
Source: (OECD, 2020[12]), “The OECD Digital Government Policy Framework: Six dimensions of a Digital Government”, OECD Publishing, Paris, https://doi.org/10.1787/f64fed2a-en.
Taken in the context of the governance of digital government, these six dimensions illustrate what governments should aim towards in order to become a mature digitally-enabled state. Governance serves as the channel through which public sector organisations lead and co-ordinate the transformation of their operations and processes and deliver for citizens and businesses. For instance, digital by design, data-driven and government as a platform approaches should guide digital governments in being in a continuous state of co-ordinating, researching, testing, monitoring and improving their digital government policies and public services. Similarly, open by default, user-driven and proactive approaches should be at the heart of collaborating with all kinds of users, enabling them to express their needs and ensuring that their needs are met. Administrative efficiency and productivity are no longer the ultimate goals of the public sector.
By adhering to these six dimensions, governments can ensure that digital technologies and data are strategically governed to ensure they do not amplify biases nor exclude anyone. Instead, they are used to serve the rapidly changing needs of the economy and to the benefit of a diverse society (OECD, 2019[13]). Such approaches in the governance of digital government reduce the risks in waterfall approaches by taking an iterative and incremental approach to strategising, planning, managing and assessing policies and initiatives, and emphasise on truly designing and delivering public services in response to the needs of people. They can increase the agility and resilience of the public sector in responding to sudden changes in contextual factors (e.g. ruling political party, economic restructuring, societal shifts, new technologies).
In the following chapters, the three governance facets of digital government under the OECD Framework for the Governance of Digital Government will be presented and analysed at the level of their dimensions and sub-dimensions with corresponding country approaches and practices as references (see Figure 1.2). These three facets have been identified based on the discussions by the E-Leaders Task Force on the Governance of Digital Government to be essential for developing a public governance conceptual framework for a mature digital government that is appropriate to the context of countries. Fundamentally, its aim is to guide policy makers to decide on the governance principles, arrangements and mechanisms that can support the development of an equitable, inclusive and sustainable economy and society in which citizens and businesses can confidently put their trust in the government and its institutions.