11th Iacc Workshop Improving The Transparency Quality and Effectiveness of Pro-Poor Public Services Using The ICTs

Shadrach & Lilian: Improving the transparency, quality and effectiveness of pro-poor public services using the
ICTs: an attempt by Transparency International
Improving the transparency, quality and effectiveness of pro-poor

public services using the ICTs: An attempt by Transparency
International
by
Basheerhamad Shadrach
Head of Knowledge and Information Services
Transparency International Secretariat
Otto-Suhr-Allee, 97-99
10585 Berlin
bshadrach@yahoo.com
and
Lilian Ekeanyanwu
Legal Advisor
TI Nigeria
Transparency In Nigeria
2nd Floor, 302 Iju Water Works Road
Iju-Ishaga, Agege
Lagos
lilianekeanyanwuc@onebox.com
Abstract
Despite considerable investment, public services in most developing countries are widely
perceived to be unsatisfactory and deteriorating. The poor and disadvantaged in developing
countries suffer in relation to delivery of public services. First, they lack access to those
services due to physical, financial, informational, political and other barriers. Second, they
lack effective mechanisms for feeding back their complaints, views and requests in relation to
those services. As a result, public services to the poor lack transparency, accountability and
quality. The poor and the disadvantaged are particularly vulnerable as they rely completely on
the state for accessing critical services such as drinking water, health and education.
Our case studies in Nigeria among the Nigerian National Electric Power Authority (NEPA)
and the Nigerian Telecommunications PLC (NITEL) are indicative of the fact that the public
service provision is deteriorating from bad to worse. And, there is no public grievance
redressal system in place. The NEPA and NITEL case studies are typical of public service
provision and the lack of a redressal system in most developing countries today.
e-Government solutions are introduced in public service processes such as the above with
little or no participation by the recipients of services. Challenging the above approach,
Transparency International is undertaking a research programme in four countries to
understand the potentials of ICTs in public service delivery among the poor and the
vulnerable.. The paper argues for a strong access to information component in public service
provision and the need to address the inadequate state of grievance redress and feedback
mechanisms on services to poor women and men by applying the ICTs.
Paper presented at the 11th International Anti-Corruption Conference, Seoul, 25-28 May 2003
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1. Introduction
One strategic fallout of Globalisation is the pressure on governments world over to
implement minimum standards of governance. This is expressed both in the area of
human rights and other aspects of good governance such as delivery of public
services. The socio-political dynamics require that even in a predominant capitalist
ideology, certain services receive significant measure of government subsidy and
support. These services such as education, provision of basic amenities like water,
electricity etc are considered so vital that governments allocate significant portions of
resources to ensure their adequate delivery.
Despite this however, vulnerable in the society and especially in the least developed
countries are still deprived of these basic amenities. Research and investigation have
shown that the disparity in the efforts made and the output realised may not be
unconnected to the absence of communication and dialogue between the government
and the ultimate beneficiaries of this affirmative action.
There is an emerging trend in several countries to attempt to bridge this gap with the
use of ICT. This tool seeks to create dialogue between the government and those
sections of the governed whose voices are ordinarily not heard by reasons of diverse
kinds of vulnerability such as poverty, gender, class, religion etc. While this tool does
not and cannot take the place of the various components of good governance like
Progressive policies, Planning, Transparency and Accountability, it serves to access
and highlight the output of these components on a particular target group.
2. Public service provision in developing countries
Despite considerable investment, public services in most developing countries are
widely perceived to be unsatisfactory and deteriorating. The poor and disadvantaged
in developing countries suffer in relation to delivery of public services. First, they
lack access to those services due to physical, financial, informational, political and
other barriers. Second, they lack effective mechanisms for feeding back their
complaints, views, requests in relation to those services. As a result, public services to
the poor lack transparency, accountability and quality. The poor and the disadvantaged
are particularly vulnerable as they rely completely on the state for accessing critical
services like drinking water, health and education. There is no `exit option available
to these users to seek an alternative provider in case of dissatisfaction with the service
provided (Gopakumar K et al 2002)
Dissatisfaction and corruption in public services: a trend
A survey (Paul, 1998) carried out in Bangalore a decade ago revealed that the levels
of public satisfaction with the performance of service providers in the city were
uniformly low despite the marginally better ratings of some agencies. Corruption was
widespread in most of the agencies and has no doubt contributed to the severity of
public dissatisfaction. Corruption was a problem for the citys poor too, with a third
among them having to pay a bribe to get a service or to solve a service related
problem. Costs in terms of time and effort that people incur were quite heavy. It is
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significant that a majority of the respondents (54 per cent) were willing to officially
pay more for the services provided they were of reliable quality rather than pay under
the table with no assurance of quality. The above scenario is prevalent in Bangalore
even today, and in fact, in most of the developing countries. A cross-country
comparison about corruption in public services (Recanatini, 2002)) revealed that more
than 80% of the households felt corruption as a serious problem. While 90% of the
public shared this opinion, only 50% of public officials felt so. Administrative
corruption was quite high in countries like Ecuador, Venezuela and Peru. The "Voices
of the Poor" study (Narayan, 1999), carried out by the World Bank, found that the
poor, in particular, often suffer "pervasive low-level corruption and lack of access to
justice Even humanitarian assistance is often waylaid when channelled through
corrupt state systems."
A few empirical evidences
A study two years ago revealed that Turkey was perceived to be seriously infected
with corruptive activities, the perception of the central government was significantly
worse than that of the local government (Adaman and Cargoklu, 2001). Similar study
in Kenya early this year (Transparency International, Kenya, 2003) confirmed the
trend that bribes are demanded (or offered) on average in two out of three encounters
with public officials. Another survey (Gopakumar, 2002) carried out by Transparency
International in five South Asian countries last year showed that bribes were a heavy
financial burden on South Asian households, both due to the high frequency of bribes
and to the large sums paid. More than half of the users of public hospitals in
Bangladesh, for example, reported that they had paid a bribe to access a service, with
bribes averaging BDT 1,847 (US$33). In Pakistan, 92% of households that had
experience with public education reported having to pay bribes; the average amount
paid was PKR 4,811 (US$86). These figures are startling in a region where 45% of
the total population of 1.4 billion live in poverty. When asked about the source of
corruption, most respondents answered that bribes were extorted by public servants.
Middle and lower level civil servants were identified as the key facilitators of
corruption in all sectors probed.
Respect for public services diminishing in many countries.
A survey (Council for Excellence in Government, 2002) data indicate that citizens
often times have more confidence in public servants than in politicians. Still, there is
only modest comfort in this finding. Citizens tend to rate the ethical standards of both
public servants and politicians less highly than other professions. In Canada, for
example, 87% of citizens have a high trust in nurses, compared to 46% for business
leaders, 30% for federal public servants, and 13% for politicians (Ekos Research
Associates, 1999). The same survey found 83% of Canadians rank the ethical
standards of NGO volunteers as high, compared to 65% for small business people,
42% for public servants, and 17% for politicians.
Rebuilding the trust in public services
There is abundant anecdotal evidence that the publics respect for government is
eroded by political and bureaucratic corruption. Available evidence and common
sense suggest that reducing official corruption can enhance respect for government.
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Rebuilding the lost trust among the citizens is vital for governments to continue to
perform in the present day. Government reform agenda have geared up the change
process in various countries albeit at a pace that needs acceleration. Governments
need to interface with citizens through innovative ways and consult with them for not
only providing the required public service, but also for creating a sense of ownership
and responsibility in the reform process.
3. Nigeria - a case study
Public sector corruption is a problem that has challenged successive governments and
the organised private sector in Nigeria. While there has been several initiatives to
tackle this issue, the levels of success of these initiatives have been insignificant. The
scope and consequences of corruption has been blamed for the progressive downturn
in the economy and the dearth of foreign investment in the country. One area in which
the menace of corruption is clearly reflected is in public service delivery. The
manifestations of corruption in the delivery of services like electricity, telephone,
water, etc not only highlight tendencies of high level corruption, but also indicate the
expressions of petty corruption which impact more on the poor and vulnerable.
Consequently, public confidence in these services is so eroded that all those who can
afford it provide alternatives for themselves, leaving only the vulnerable and the poor.
The presentation shall highlight the problems encountered by the consumers of the
services in two public sector companies and the interface between corruption and the
dissatisfaction with these services.
The National Electric Power Authority-NEPA and NITEL PLC are Public utility
companies engaged in the delivery of electricity and telecommunications respectively.
The two companies enjoy the commonality of being substantially government owned
establishments, and also enjoy almost total monopoly in their areas of operation.
However, the ongoing privatisation of government enterprises and the introduction of
GSM communication have removed some of the monopoly of NITEL-the
Telecommunication Company. To a large extent the pricing of the services of these
companies are determined not only by market forces but also by social and political
dynamics. Therefore, even where exit options exist, the low-income people are
constrained to use their services in view of their lower charges.
The focus in this case study will be on some aspects of the service delivery of these
companies, such as the subscription process, Billing system, payment enforcement,
fault redress and response to complaints.
3.1
Subscription process
NEPA: Officially, enlisting for NEPAS services is a simple process of requesting for
an electricity meter to be installed and a prescribed fee of N11,000 [Eleven thousand
Naira, paid. The process is supposed to take about seven days. In practice however,
the process takes at least three months and costs N6000[six thousand naira, over and
above the official fee. According to one consumer who recently applied for a metre If
you dont pay the N6000 Naira, your bank draft of N11,000 will just be in NEPAS
coffers and your application will not be processed.
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NITEL: To subscribe to NITEL services, you have to provide a lot of documentation

such as lease agreement to the premises you want to install the phone in, letter of
recommendation from a solicitor, bank reference, photograph of the building where
the phone is required etc. As a result of the difficulty in gathering al these documents,
the middle man syndrome flourishes. There are consultants who act as go between to
procure these documents and process the application. Usually the entire process takes
about six weeks and costs from N40, 000-N60, 000. This is about 300-500 percent
above the official rate.
3.2
Billing process
NEPA: NEPA uses the credit system, which allows consumers to use their services
and pay the bills after. The bill is supposedly determined by reading the meters and
charging consumers pro-rata. In practice however, the meters are not read regularly
and NEPA uses what it calls ESTIMATE to bill the consumer. This is an estimate of
the consumed electricity, based on the average past consumption. According to one
consumer They dont even bother to read the meters. This estimate system is unfair
as the rate of consumption fluctuates depending on certain variables such as vacation
and children in boarding schools. When you protest, it is of no avail. Nobody listens
to you and you dont have a choice but to pay, or they disconnect you One major
problematic area is the crazy bill syndrome. Due to computer error, unrealistic bills
are generated. In this situation NEPA agrees that the bill is unrealistic but the process
of correcting this anomaly and erasing the bill from the consumers record is fraught
with problems. A consumer had this to say, I have experienced their crazy bill which
runs into six figures as if you are running a factory. They claim it is computer error,
yet when you dont rectify it they disconnect you. You have to go to their office so
many times, bribe them before they can correct it.
NITEL: NITEL also operates a credit system whereby subscribers use their services
and pay on demand. There is a lot of discontent about the billing system According to
a subscriber, They just award you bills which you cannot reconcile with your use of
the phone. They have a policy of not giving a breakdown for local calls. When you
protest, they ask you to go and pay first and come for reconciliation later. This
reconciliation seldom results in anything useful. You end up paying the bill.
3.3
Enforcing payment
NEPA: When a consumer fails to pay bills as at when due, NEPA disconnects the
electricity to the consumers apartment. Previously, this is effected by disconnecting
electricity supply to the meter of the offending consumer. However for the past
decade they have enforced payment through the peer pressure method. They no longer
disconnect from the meter, but from the electric pole. This has the effect of
disconnecting an entire apartment building and sometimes an entire street due to one
offending consumer. The reasoning is that peer pressure will be brought to bear on the
recalcitrant consumer and ensure quick payment. One consumer, a housewife, had this
to say, It is very inconvenient to live in a block of flats. No matter how diligent you
are in paying your bills, you will still suffer for other peoples sins---When they
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disconnect you they start asking you to rent ladder and buy fuel for their vehicle
before they can
come.
NITEL disconnects debtor customers and reconnects them upon payment. However
the process is not hitch free. To ensure prompt reconnection, you have to tip the
NITEL staff else it might take days before you are reconnected.
3.4
Complaint and redress system
Both organisations have designated centres where faults are reported, documented and
technicians assigned for repairs and rectification. After this process the consumer is
left at the mercy of these workmen and their inordinate demands. The consumer is
made to pay for the cost of repairs and the materials used. Despite the fact that these
services are meant to be free, the staff still extorts money from customers.
3.5
Locating corruption
From the foregoing account, it is clear that a substantial portion of the ineffectiveness
of these services can be blamed on corruption. In fact, situations are deliberately
created to foster opportunities for officials to exploit and extort money from hapless
the citizenry
SUBSCRIPTION PROCESS
The red tape in the subscription process encourages graft as desperate consumers
pay money to officials in order to abridge the process.
BILLING SYSTEM.
Opaque system of billing provides fertile ground for corruption
Re-connection process is fraught with extortion and exploitation.
PAYMENT ENFORCEMENT
Disconnecting customers in good standing for the default of others. [Peer
Pressure tactics]
Extorting money to reconnect even in cases of wrong disconnection
Requesting for fuel, hiring ladder and mobilisation in cases of rightful
disconnection
FAULT REDRESS
The customer is frequently exploited and monies extorted from him/her.
4. The current status of ICT applications in public service provision

The need for applying appropriate technologies, preferably merging both new and old
information communication technologies, for empowering the poor communities and
for disseminating locale-specific content in an all-inclusive manner with the help of
the NGO community and key informants is well recognised in recent studies (Skuse,
2001; DFID, 2002). These tools do not only help the communities to access
-6 -
information pertaining to their needs, but also to participate in the public service
provision of the governments. Technocrats are also of the opinion that people and
communities can and should indeed navigate the complexities and reap the benefits of
new and old ICTs (IBM, 1999; Mitra, 1999). However, the development of ICTs in
public institutions has been seen by various governments as merely a technical task,
leaving behind the importance of the intervention, which introduces many socioorganisational changes (Avegrou, 1993).
Governments quite often failed due to their top-down approach and their inability to
consult the citizen, let alone the poor. To remedy this, establishing forums for civil
society/state dialogue for monitoring and enhancing the accountability of public
services is highly recommended by scholars (Goetz, 2001a ; Paul, 2002). For the
citizen's groups to be seen as legitimate and effective, demonstration of their capacity
to hold regular meetings with the citizens to collect their feedback, and with the
public officials for improving the services is crucial (Goetz, 2001b). This should
result in giving the public officials an incentive for their good work and in
encouraging the public to participate in the service provision.
Many ICT practitioners argue that the ICTs may be used as a tool to achieve resulting
effects in tune with the social realities, and in partnership with citizen's groups (Balaji,
1999; Madon, 2002). An e-consultation carried out by the ITDG group confirmed
that the poor and the minimally evasive and literate societies could benefit from the
ICTs if the information is presented in an appropriate manner. The reports published
for DFID from this research stressed the need for encouraging the key informants and
intermediary organisations to play a key role in addressing the information needs of
the poor and also in facilitating peoples access to public services (Shadrach, 2001;
Schilderman, 2002).
There is therefore a renewed call for a strong partnership between the civil society,
public and private sector, this time to harness the potentials of the ICTs (Yeomans,
1999). Such a partnership may result in:
-
helping the communities to overcome the cultural barriers to information and

communication (Skuse, 2001);
enabling communities to access locale-specific, demand-driven content through
the use of appropriate technologies (Swaminathan, 1993; Arunachalam, 2002);
helping in the development of local applications in a participatory way
(Richardson, 2000);
to reiterate the need to be gender-friendly, inclusive and transparent, even if they
find the new ICTs to be a threat to their corrupt practices (Heeks, 1998; Hafkin,
2000); and
sensitising and reinventing the governments in the information age to be more
responsive, listening and accountable to their citizens (Wescott, 2001; Heeks,
2001)
It is therefore imperative to take note of the failure caused by the government's topdown approach to deliver efficient public services, at the same time, recognises the
potentials of appropriate ICT applications for enabling the poor to voice their
grievances and to participate in the public service provision
-7 -
5. Transparency International's initiative

Transparency International is involving five of its-National chapters (NCs) in
Bangladesh, Croatia, Mexico, Nigeria and Pakistan, in an innovative project where
these NCs will use a combination of the ICT tool and the Report Card System of
monitoring and assessment to establish dialogue and interaction between diverse
critical actors in the service delivery chain down to the disadvantaged in the society.
The focus will be on access to information and use of same to correct the defects in
the redress and feedback mechanism in public service delivery to the poor.
Using the Report Card System, the project will access responses from the vulnerable
group on various public services used by them. These responses will in turn be fed
back to the relevant authorities. Acting as a bridge will be the various civil society
groups who will facilitate information flow on both sides. The service providers will
access the critical response from their consumers necessary for policy formulation,
redress and change while the vulnerable group will access the information necessary
to formulate a demand. Further the generality of the populace will benefit from the
information dissemination mechanism which is a vital component of the project. In
addition, the civil society groups will develop and demonstrate the capacity for
feedback/redress advocacy.
This project will employ an innovative use of the ICT by adopting the bottom up
approach unlike the converse method, which is not responsive to user needs. In
addition to the expected outputs of completing the feedback loop, giving a voice to
the vulnerable, empowering the civil society, improving the quality of public service,
this project will provide the unique opportunity of inter-country comparison and
analysis in the use of ICT to improve public service delivery.
6. Conclusion (250 words)
It may be fitting to conclude that often the top-down approach of governments in
public service provision has failed them while at the same time increased
opportunities for bureaucratic and political corruption. The publics respect for
government is increasingly eroded that there is an emerging appeal for governments
to interface with citizens through innovative ways and means. Information and
communication technologies have proven to be useful in the recent past as an enabler.
A number of pilot projects initiated in the South suggest that these tools can harness
development by enhancing peoples access to information in an appropriate manner.
The role for the civil society, however, is imminent in this process . Citizens groups
have been able to achieve greater participation by people in developmental activities,
quite often in the areas where governments failed. Their role in mediating peoples
access to information facilitated through the ICTs is increasingly becoming crucial in
bridging the vast gap between the public service providers and their recipients. It may
therefore be concluded that the main stakeholders in public service provision: the
private sector, the government, the citizens groups and the citizens should come
together to get the act right. Various attempts as the one by Transparency
International described above can help us to understand the role that the ICTs could
play in this process
-8 -
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Shadrach & Lilian: Improving the transparency, quality and effectiveness of pro-poor public services using the

ICTs: an attempt by Transparency International

Improving the transparency, quality and effectiveness of pro-poor

NITEL: To subscribe to NITEL services, you have to provide a lot of documentation

Complaint and redress system

4. The current status of ICT applications in public service provision

helping the communities to overcome the cultural barriers to information and

5. Transparency International's initiative

Ottawa: International Development Research Centre, (URL:

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