Archive for June, 2012

Does Democracy make Government IT Inefficient?

Thursday, June 28th, 2012

Doug Hadden, VP Products

One of my former bosses, when asking for input, made this warning: “just don’t confuse this with a democracy.” This is a premise from Gartner Group Vice President and Distinguished Analyst Andrea Di Maio in this post yesterday: The Main Obstacle to Government Efficiency is the Cost of Democracy. He pointed out that electoral cycles can play havoc in achieving government-wide IT goals. And, that strong central governance for IT projects is often difficult to achieve.

This created an interesting twitter conversation when Alan Silberberg, well known Government 2.0 consultant tweeting “don’t agree” to the article.

I’m more inclined to agree with Di Maio than Silberberg on this discussion. It’s hard to disagree with Di Maio’s assertion that “government is usually considered less efficient that the private sector. Sometimes this is a wild generalization, since government deals with a level of complexity that is unparalleled in almost any other industry sector.” (Mind you, there is this persistent notion that government should be run like a business.)

Do election cycles disrupt IT planning and implementation?

Di Maio points out that political priorities change depending on where a government is within an election cycle. Silberberg sees elections as having an effect, but less than other factors. A statistical study would be very valuable here. I have encountered this reality in numerous government situations:

  • IT Director in a Government of Canada department telling me, years ago, to be aware of what year the government mandate was in before advocating new technology
  • More than one Latin American and Asian government pushing forward on large IT-related projects for public financial management or e-government in order to show accountability progress within a year of the next election
  • New government in post-socialist country disrupts large IT implementation after more than 8 years of planning because of political vendetta against the former government – although this is standard in large programs like the Liberal Party in Canada cancelling the order for military helicopters and the current Conservative Party government cancelling the long gun registry (speaking of complex government software implementations and cost overruns…)
  • Complete replacement of top public servants in African country required comprehensive retraining on IT systems – this is not an usual situation because many countries have a complete “civil service in waiting” for government changes

Are shared services or e-government programs particularly affected by politics?

Di Maio suggests  that “shared services, for one, do require a fair amount of time and a stable, well-thought-out governance framework to deliver business value. But the cost of democracy either prevents implementing strong, centralized governance , or challenges the ability to keep it in place for a long enough time.” Anecdotal evidence supports this assertion:

  • The Chorus “shared services” ERP project in France went back and forth a few times before the Sarkozy government latched on the project. (Yes, it’s late and costing a lot more than expected, with major glitches, but that’s what happens when you implement ERP in government).
  • IT shared services (data centres, e-mail etc.) is an idea that has been floating around in Canada since the Chretien government – possibly before that. There was no execution on the idea until recently. My sense is that consecutive minority governments meant that the governing party was not willing to encounter upset trade unions. Now that there is a majority government, in the first year of the mandate, it’s full steam ahead.
  • There had been an e-government funding farce in the United States during the Bush administration where congress cut back funding significantly because of politics (or because Senators and Congressmen aren’t exactly technology-savvy. Darrel Issa is the exception that proves the rule.) This farce continues with bills that have cut e-government and open government initiatives dramatically.
  • Introduction of the SOPA law in the United States and similar “privacy” laws around the world hinders open data initiatives. (Another example is how Canada Post is trying to prevent private sector organizations from using postal codes.)
  • The rapid drive to open government by the current government in Canada, spearheaded by Treasury Board President Tony Clement including joining the Open Government Partnership shows the impact of positive political motivations.
  • Push to open government and transparency in Kenya, India, Timor-Leste and other countries shows the impact of politics on e-government initiatives.

Is the United States unique where elections impact IT less?

Silberberg suggests that elections may have more of an IT project impact in Canada and the EU than in the United States. He has far more US government experience than I do. I’m clearly suffering from confirmation bias in my assessment of American politics.

I find American politics highly intrusive into government program implementation. The system of “checks and balances” with “separation of powers” makes strong central initiatives difficult. Almost any aspect of a government program can get overly politicized and polarized in the United States. (I’ve lived in the US since 2006 and have had to cut cable because I can’t put up with what passes as cable news where even the innocuous gets politicized.)

Top civil service positions in the United States are political appointees. (This might seem to be a controversial statement to Americans, but there are no political appointees in Canada or the UK in government departments except for the Minister. In Canada, the equivalent of Under-Secretary – Deputy Minister, or Assistant Under-Secretary – Assistant Deputy Minister does not change when there is a new government or new Minister unless the person had become politicized.) It in my view that elections impact major program decisions as much in US as Canada, if not more. Remember the President’s Management Agenda andFaith Based Initiatives“?

Impact of budgets

It’s hard to say whether the United States or Canada has the more dysfunctional budget process. Democratic and non democratic countries have budgets. The political dimension and budgets has a significant effect on IT decisions such as Congress cutting back on e-government budgets in the United States described above. The mad dash for savings in Canada with the Shared Service initiative and spending reviews that has been highly disruptive on program implementation according to people I met at the FMI conference last month.

Other Factors

Silberberg suggests that long IT cycles (longer than government mandates),  resistance to change, and lack of funding play a larger role than elections on large IT projects. Again, some confirmation bias here. My sense is that:

  • Long IT cycles get disrupted through changes in government
  • Resistance to change is partly motivated by the fear of perceived political risk by changing “something that works”
  • Lack of funding is because of budgets. Budgets are political.

Some Conclusions

I think Di Maio is “on to something” with his analysis. The subject probably deserves academic study (maybe it has, but an Internet search was dominated by ICT4D, open government, digital divide and Arab Spring content – rightfully so.)

Let’s say for a second that Di Maio is right. Can governments act on this insight to improve information technology? Perhaps this can help create a government-centric “change management” discipline. It’s hard to envision how the election dimension can be overcome.

 

 

 

 

 

 

I’ve had enough of the marketing spam

Monday, June 25th, 2012

Doug Hadden, VP Products

I wrote a blog entry 2 years ago called E-Mail Marketers – Be Gone. But, they are not gone. They continue to pester me with spam about ‘marketing lists’. These lists can’t be very good because I’m a target. Why aren’t we a target for these lists:

  1. As a Canadian company, we cannot send spam to anyone anywhere. (Even if we could, we’re a social enterprise so we don’t deal in unethical behaviour.) And, the CAN SPAM Act of 2003 has nothing to do with Canadian companies. (And, soliciting me is probably illegal under Canadian law.)
  2. As a government specialist, we can not use B2B lists – we don’t sell to business.
  3. As a software provider, getting names of users of competitor products doesn’t help. What are we going to do: set up group therapy sessions?

The first two are pretty clear. Takes seconds on the web site. Yet, I get e-mails like this:

Hi,Greetings of the day. I was reviewing your website and thought might be interested in our Mobile Software Users database. By which you can expand your reach and widen your client base. We maintian 868,941 contacts with complete information.We have an exclusive database of verified contacts by Industry, Job Titles and Geography…Data Quality and Details:Data Fields: Contact Name, Company name, Job Title, Website, Industry, SIC Code, Email address, Direct mail address, Telephone number, Revenue Size, Employee Size, etc.Last date of data update: 24th May 2012Acceptance rate: 100% permission based contactsUsage License: Once you purchase the list you can use it for multiple times, no restrictionsMulti-Channel Marketing: The list can be used for Email Marketing, Direct Mail Marketing, Fax Marketing and Tele MarketingAccuracy Guarantee: 90% accuracy on dataLegal Compliance: WE are in compliance with the CAN SPAM Act, 2003 and DMAPlease let me know your thoughts towards procuring or using our Mobile Software Users email list.To Your Success!Peter Anderson (petera@pumalists.com)List expert

Apparently, Peter is a “list expert”, but not expert at reading websites.

From now on, I’m going to paste the contents of every e-mail soliciting me for “lists” that makes it through the spam filter.

June 27:

I would like to take this opportunity to introduce you to our company which is  best known for Marketing and Database Services. We can assist you in generating leads. Following are the few list mentioned: List of Independent Sofware Vendors List of ERP Users of different ERP Providers, List of software Resellers, List of IT Decision Makers of various leading organization, List of SaaS Users, List of SaaS providersWe can further assist you in email marketing, appointment setting, sales chat, pricing, closure and after sales service. Kindly let me know if you require any details which are not mentioned above and your convenient time to discuss in detail. Regards Mary Wilson mary.wilson@clouddb.us

Apparently, it’s been all downhill for Mary since she left the Supremes

June 27:

Hi Would you be interested in any of the Accounting Software Users List? We can assist you with your email campiagns , lead generation,tele-marketing, etc Below is a snapshot of few finance and accounting software lists we have:

Accounting Software Users List QuickBooks Users List Accountmate  Users List Microsoft Dynamics AX Users List MAS 90 & MAS 200  Users List SAP Business One Users List Oracle Small Business Suite Users List Sage Software Users List Syspro Users List Infor Global Solutions Users List Lawson Enterprise 400  Users List Epicor Users List Great Plains  Users List IFS ERP Solutions Users List PeopleSoft  Users List Exact Software Users List SAP R/3  Users List Intacct Users List One World  Users List Last update on: June 2012 Geography Covered: US, UK, Canada, Australia, APAC, EMEA etc. Decision makers Titles: IT Decision Makers,Top-level executives like CEO, CIO, CTO, CFO,COO, VP of IT, IT Director,Payroll,Accounts,mid-level Managers, Finance Managers etc.Let me know if we can have a quick conference call to discuss your marketing initiatives. Thanks, Claudia claudia.white@mailsi.biz
Claudia White Marketing Executive- Technology List Division SAP / Oracle / IBM / Microsoft / Sage / Vmware / Peoplesoft /Netapp / Infor / Citrix

Apparently, Claudia is in the “campiagns” business

July 20:

Hi Doug,
I was wondering if your company can use some help in finding new prospects through cold calling. My company can maximize your sales team’s productivity by generating leads and setting appointments giving them more focus on closing rather than looking for leads. If this is of interest to you, I’d be glad to refer one of our sales representatives to give you a call at your most convenient time. Kindly provide us the best number to reach you.
Sincerely,
Emma Hart
Marketing Specialist
Balboa Blvd., #353
Encino, CA 91316
888.810.7464
emmah@expandmarketrange.com

Sorry Emma, “cold calls” are out of the question too.

July 25:

Good Day!
I would like to inform you about our “Mobile Computing Users Email Database” which consists of permission pass emails and other contact information.
These contacts are compiled in compliance with CanSpam 2003. If Mobile Computing Users Email Database isn’t a suitable file, please brief me on your target criteria. I will get back to you with more information on counts and cost for your deliberation.
Thank you for taking your time in reading this note. I appreciate your time and would definitely look forward to you reply.
To Your Success!
Sean Fisher
List Expert
seanf@v7infotech.com

Sean appears to be a list expert rather than a geography expert: Canada is a different country than the United States. And, has cutely attractive different laws.

July 27

Claudia is back:

 

Hi
Would you be interested in acquiring any of the below specified updated contact databases?
EPICOR Technology Users
Infor10 ERP Users
Intacct Technology Users
Intuit QuickBooks Users
Magneto Technology Users
Microsoft Dynamics AX Users
Microsoft Dynamics GP Users
Microsoft Dynamics NAV Users
Netsuite Technology Users
Sage ERP Accpac Users
Sage ERP MAS 90/200/500 Users
Sage Peachtree Users
SAP BusinessOne Users
Syspro Technology Users
3d Cart Users
Celerant Technology Users
Demandware Technology Users
We provide contacts of all level executive titles (C- Level, VP – level, Director – level, Manager- Level and other executives)
Kindly let me know if your requirement is any different.
Industries : Healthcare, Chemical, Pharmaceutical, Biotechnology, Insurance, Finance/Banking, Telecom, Retail, Consulting, K-12, Information Technology, Electronics, Food and Beverage, Construction, Engineering, Computer Software/Hardware, Printing/Publishing, Transportation, Education, HR, SMB/SME, Business Services, Oil and Gas, Energy and Utilities, Media, Manufacturing, Automotive, Marketing/Advertising etc..
Claudia White claudia.white@mailsi.biz

So, Claudia provides “industry” list for a company that doesn’t sell to industry.

 

 


 

FreeBalance Weekly Update – Monday, June 25, 2012

Monday, June 25th, 2012

What’s new at FreeBalance?

This weekly news update provides the Government Resource Planning (GRP) community with a brief overview of recent FreeBalance developments and relevant industry news.

Assets & Inventory Management for Government

Traditional software assets and inventory systems that are designed for the private sector are not well suited for the public sector. FreeBalance Assets and Inventory V7 is a fully integrated web-based module of the FreeBalance Accountability Suite. Designed exclusively for government, FreeBalance Assets and Inventory includes features to effectively manage, maintain and safeguard government assets.
Contact Ria Aikat to find out more >>

FreeBalance Showcases GRP Solutions in Caribbean

On June 21-23, FreeBalance participated in the 30th Annual ICAC Conference in Antigua & Barbuda. The ICAC event brought together speakers and participants from the Caribbean and international community to examine the major regional challenges facing accountants, finance professionals, and business leaders. FreeBalance sponsored the event along with ACCA, CGA, CMA, PwC and Ernst & Young.
Read more about the ICAC event>>

What Canada can learn from Developing Countries on Public Financial Management sustainability? [Part 3]

The lack of civil service “capacity” or the need to improve “capacity” is a consistent theme when diagnosing public financial management problems in developing countries. In a recent post on the International Monetary Fund PFM Blog, Capacity Building and Why Reforms Fail, David Gentry opens with: “Rarely can you find a technical assistance related document that does not refer to the need for capacity building.” Civil servants need the proper skills to implement government programs.
Find out more >>

The Adoption of the Cash-based IPSAS by Developing Countries: Detour or Good Foundation?

In advising countries on the appropriate government accounting reforms PFM specialists often have different views. Developing countries are often encouraged to adopt the cash-IPSAS standard as a first step to modernizing government accounting; others see this as a detour to improving accounting practices. Our colleagues Kris Kauffmann and Guilhem Blondy discuss this issue, first disagree and then reach tentative agreement it seems. Comments welcome!
Find out more >>

Sudden Stops: Are global and local investors alike?

In a recent paper by Cesar Calderon and Megumi Kubota (forthcoming in the Journal of International Economics), it is argued that the distinction between sudden stops caused by domestic versus foreign residents is crucial when examining the effects of these types of episodes on economic performance and their policy implications. Identifying the relative importance of the shocks underlying these different types of sudden stops is essential. If sudden stops were, for instance, attributed to reduce inflows by foreigners, policymakers should minimize the country’s vulnerability to external shocks.
Read More >>

Nouvelles Hebdomadaires – Lundi, 25 Juin 2012

Monday, June 25th, 2012

Quoi de neuf à FreeBalance

Ces nouvelles hebdomadaires apportent à la communauté de la planification des ressources gouvernementales (PRG) un aperçu général des récents développements de FreeBalance et des nouvelles pertinentes de l’industrie.

Gestion des actifs et de l’inventaire pour le gouvernement

Les systèmes logiciels traditionnels d’actifs et d’inventaire qui sont conçus pour le secteur privé ne conviennent pas au secteur public. La version 7 du logiciel Actifs et inventaire de FreeBalance est un module en ligne entièrement intégré de l’Accountability Suite. Conçu exclusivement pour le gouvernement, les modules Actifs et inventaire de FreeBalance incorporent des fonctions pour gérer, maintenir et protéger efficacement les actifs du gouvernement.
Contacter Ria Aikat pour en savoir plus >>

FreeBalance présente les solutions PRG aux Caraïbes

Du 21 au 23 juin, FreeBalance a participé à la 30ème conférence annuelle de l’ICAC (Institute of Chartered Accountants of the Caribbean) à Antigua et Barbuda. L’évènement de l’ICAC a rassemblé des conférenciers et des participants des Caraïbes et de la communauté international afin d’examiner les principaux défis régionaux auxquels font face les comptables, les professionnels de la finance et les dirigeants d’entreprise. FreeBalance a été le commanditaire de l’évènement, ainsi que ACCA, CGA, CMA, PwC et Ernst & Young.
Lire la suite au sujet de l’évènement de l’ICAC>>

Ce que le Canada peut apprendre des pays en voie de développement en matière de durabilité dans la gestion des finances publiques [3ème partie]

Le manque de « capacité » de la fonction publique ou le besoin d’améliorer cette « capacité » est un thème récurrent lors du diagnostic des problèmes de gestion des finances publiques dans les pays en voie de développement. Dans un récent article sur le blog GFP du Fond monétaire international, Renforcement des capacités, et pourquoi les réformes échouent, David Gentry commence par : « Vous pouvez rarement trouver un document d’assistance technique qui ne se rapporte pas au besoin de renforcement des capacités. » Les fonctionnaires doivent avoir les bonnes compétences pour mettre en œuvre les programmes du gouvernement.
En savoir plus >>

L’adoption de la comptabilité de trésorerie de l’IPSAS par les pays en voie de développement : détour ou base solide?

Lorsqu’il s’agit de conseiller les nations sur les réformes appropriées de comptabilité gouvernementale, les spécialistes de la GFP ont souvent des points de vue différents. Les pays en voie de développement sont souvent encouragés à adopter la norme de comptabilité de l’IPSAS comme la première étape à la modernisation de la comptabilité gouvernementale; d’autres voient ceci comme un détour pour améliorer les pratiques comptables. Nos collègues Kris Kauffmann et Guilhem Blondy ont discuté du problème, ont d’abord été en désaccord puis sont arrivés à un accord préliminaire semble-t-il. Les commentaires sont les bienvenus!
En savoir plus >>

Arrêts soudains : les investisseurs globaux et locaux sont-ils identiques?

Dans un récent article de Cesar Calderon et Megumi Kubota (à paraître dans le Journal of International Economics), il est soutenu que la distinction entre des arrêts soudains causés par les résidents nationaux par rapport aux résidents étrangers est vitale lors de l’examen des effets de ce genre d’épisode sur les performances économiques et leurs implications politiques. Il est essentiel d’identifier l’importance relative des chocs sous-jacents à ces différents types d’arrêts soudains. Si les arrêts soudains étaient, par exemple, attribués à une diminution de l’afflux des étrangers, les décideurs devraient minimiser la vulnérabilité du pays aux chocs extérieurs.
Lire la suite >>

Actualización Semanal de FreeBalance – Lunes, Junio 25 de 2012

Monday, June 25th, 2012

Lo Nuevo en FreeBalance

Esta actualización semanal de noticias proporciona a la comunidad de Planeación de Recursos del Gobierno (GRP*) una visión general de los recientes desarrollos de FreeBalance y las noticias relevantes de la industria.

Administración de activos e inventarios para el gobierno

Los sistemas tradicionales de software para activos e inventarios diseñados para el sector privado no son apropiados para el sector público. El módulo completamente integrado a Internet de Activos e Inventarios V7 del FreeBalance Accountability Suite, está diseñado exclusivamente para el gobierno. Incluye características para manejar, mantener y salvaguardar efectivamente los activos gubernamentales.
Contactar a Ria Aikat para conocer más >>

FreeBalance muestra sus soluciones GRP en el Caribe

Entre el 21 y 23 de junio FreeBalance participó en la 30ava Conferencia Anual de la ICAC realizada en Antigua y Barbuda. El evento de ICAC reunió a conferencistas y participantes del caribe y la comunidad internacional a analizar los mayores desafíos que enfrentan contadores, profesionales de las finanzas y líderes empresariales. FreeBalance patrocinó el evento junto con ACCA, CGA, CMA, PwC y Ernst & Young.
Leer más sobre el evento de ICAC>>

¿Qué puede aprender Canadá sobre la sostenibilidad de la administración financiera pública de los países en desarrollo? [Parte 3]

La carencia de “capacidad” del servicio civil o la necesidad de mejorar la “capacidad” es un tema constante al diagnosticar los problemas de la administración de las finanzas públicas en los países en desarrollo. En un reciente artículo en el Blog de PFM del Fondo Monetario Internacional, sobre desarrollo de capacidades y por qué fallan las reformas, David Gentry comienza el artículo con: “Rara vez se hallará un documento de asistencia técnica que no se refiera a la necesidad del desarrollo de capacidades”. Los servidores públicos deben tener las habilidades adecuadas para implementar los programas de gobierno.
Más >>

La adopción de IPSAS basado en caja de parte de los países en desarrollo: Desvío o buenas bases?

Los especialistas en PFM* (Sistemas de Administración Pública Financiera) tienen diferentes visiones al aconsejar a los países sobre las reformas más adecuadas para la contabilidad gubernamental. Los países en desarrollo son a menudo aconsejados para adoptar el estándar de caja-IPSAS como el primer paso para modernizar la contabilidad de gobierno, otros lo ven como un desvío para mejorar las prácticas contables. Nuestros colegas Kris Kauffmann y Guilhem Blondy hablan sobre el asunto, primero están en desacuerdo y luego llegan a un acuerdo tentativo parece. ¡Sus comentarios son bienvenidos!
Más >>

Detenciones repentinas: ¿Los inversionistas mundiales y locales se parecen?

En un artículo reciente de Cesar Calderón y Megumi Kubota (próximamente en la Revista de Economía Internacional), sostiene que la distinción entre las paradas repentinas causadas por residentes nativos y extranjeros es crucial cuando se analiza los efectos de este tipo de episodios sobre el desempeño económico y sus implicaciones políticas. El identificar la importancia relativa de los impactos subyacentes de estos tipos diferentes de paradas repentinas es esencial. Si las paradas repentinas, se atribuyeran, por ejemplo, para reducir el influjo de parte de extranjeros, los formuladores de políticas deben minimizar la vulnerabilidad del país a los choques externos.
Más >>

What Modern Art can Teach us about Business Innovation

Monday, June 25th, 2012

Doug Hadden, VP Products

Marshall McLuhan suggested that only the artist lives in the present, the rest of us live comfortably in the past, through the “rear view mirror.” It is the artist who recognizes the new patterns according to McLuhan.

What does this tell us about technology innovation? My sense is that this “role of the artist” to recognize change is the aesthetic that led Steve Jobs to so many innovations at Apple. Some of these innovations were too far ahead of the mainstream. Others seemed late (at first) but relied on a deeper understanding of the new pattern and the need for design.

Breaking Art

Bartlett Newman, Voice of Fire, image from WikipediaNot everyone sees the value of Modern Art. I think that many see this art form as an elaborate scam. It reminds me of the famous (in Canada) controversy when the National Gallery of Canada purchased Bartlett Newman‘s “Voice of Fire” for $1.8M in 1989. Some thought that it was a lot to pay for three stripes regardless of how big the stripes. (As I recall, there were questions in Parliament about fiscal discipline with public money. And, many marched to the National Gallery in indignation to see this blight. After paying the entrance fee.)

Modern art has seen many innovations from Marcel Duchamp declaring found objects or René Magritte declaring that a painting of a pipe was not a pipe.

If nothing else, modern art demands that we look at the world differently.

That’s unsettling. Uncomfortable. And not for everyone.

Technology innovation is also unsettling. Technology companies tend to rest on the laurels of previous innovations, becoming “experts”, sticking to business models of the past.

As one book suggests: If it A’int Broke, Break it.

Or, as Frank Lloyd Wright said: “An expert is a man who has stopped thinking – he knows.”

Innovation Lessons from Modern Artists

It was with this theme of innovation that I watched BBC documentaries by art critic Alastair Sooke linked from the Open Culture web site. Salvador Dali, Henri Matisse, Pablo Picasso and  Andy Warhol are compelling subjects for a documentary series about how the effects of modern art on everyday design.

The most interesting takeaway from all four documentaries is the extent to which artists borrow from peer innovation. There isn’t the tactic of declaring intellectual property rights when a competitor makes better use of your innovation in the art world.

The story of Matisse and Picasso: constant innovation. In fact, innovating well into old age.

Matisse was innovating on his death bed, much like Steve Jobs. Picasso seemed driven by competition and “coopetition” – initially with Georges Braque. Later, his complex relationship with Matisse. Not unlike the Steve Jobs to  Bill Gates relationship.

Meanwhile, Warhol and Dali are as well known for publicity as art. (Perhaps more for celebrity with Warhol’s idea of 15 minutes of fame and Dali’s mustache).

CEO as Performance Art

Some tech Chief Executive Officers are known to be “colourful.” Not as eccentric as Dali, perhaps.

Unlikely to talk about self in the third person.

Yet, with unique facial hair.

Once such CEO is Larry Ellison.

Some of Mr. Ellison’s presentations have been performance art. Many expert analysts pointed out that his most recent pronouncements about cloud computing and the competitive environment (particularly with his biggest competitor) were misleading.

That’s innovation in marketing, I suppose.

FreeBalance Weekly Update – Tuesday, June 19, 2012

Tuesday, June 19th, 2012

What’s new at FreeBalance?

This weekly news update provides the Government Resource Planning (GRP) community with a brief overview of recent FreeBalance developments and relevant industry news.

What Canada can learn from Developing Countries on Public Financial Management sustainability [Part 2]

ICT4D is the concept of using information and communications technology to improve country development. This is applied to general economic improvement such as improving communications to foster business, sectors like education and health and to improve governance and reduce corruption. Studies suggest that there is a more significant positive impact to ICT in low and middle income countries than high income countries. Technology impact can be transformational in improving market efficiency, reducing financial transaction costs, and optimizing productivity.
Find out more >>

Accounting and Budget Framework

For decades the debate has raged on about the applicability for government of what is often referred to as private sector accounting methodology. Those who argue against its use in government offer up the differences in management focus between the private and public sectors to support their position. They argue that because the private sector is focused on profit generation the underlying concepts of accounting are not valid for government purposes. This argument is simplistic and fails to recognize the overarching purpose of all accounting systems.
Find out more >>

Imagining If Key Foreign Banks Start Reducing Their Exposure in Asia

European banks play an important role in supplying credit to several Asian economies. What happens if they start reducing their exposure to the region?
The largest borrowers from European banks are Australia, Hong Kong SAR, Korea, Malaysia, New Zealand, Singapore, and Taiwan Province of China, while China, India, and the economies of South East Asia generally have smaller liabilities. Among European banks, those from the United Kingdom have a particularly significant presence in Asia. For most regional economies, the nonbank private sector—businesses and households—is the main recipient of credit from foreign banks as a whole.
Read More >>

Lessons from Recent Crises and Current Priorities for Finance Practitioners and Policy-Makers

On May 14-18 the World Bank held its annual Overview Course on Financial Sector Issues in Washington, DC. Geared towards mid-career financial sector policy-makers and practitioners, the objective of this one-week event was to discuss issues of current and long-run importance to the development of the financial sector. This year’s course focused on Lessons from Recent Crises and Current Priorities for Finance Practitioners and Policy-Makers. The timing was quite fitting—the course took place the same week that JP Morgan’s billion-dollar trading became public and the European crisis intensified as Greek banks suffered large deposit runs.
Read More >>

Nouvelles Hebdomadaires – Mardi, 19 Juin 2012

Tuesday, June 19th, 2012

Quoi de neuf à FreeBalance

Ces nouvelles hebdomadaires apportent à la communauté de la planification des ressources gouvernementales (PRG) un aperçu général des récents développements de FreeBalance et des nouvelles pertinentes de l’industrie.

Ce que le Canada peut apprendre des pays en voie de développement en matière de durabilité dans la gestion des finances publiques [2ème partie]

Le concept ICT4D consiste à utiliser les technologies de l’information et des communications pour améliorer le développement d’un pays. Le concept est appliqué à l’amélioration de l’économie en générale comme l’amélioration des communications pour encourager le commerce, les secteurs comme l’éducation et la santé et pour améliorer la gouvernance et réduire la corruption. Des études suggèrent qu’il y a un impact bien plus positif des TCI dans les pays à revenus faibles et modérés que dans les pays à revenus élevés. L’impact de la technologie peut être transformationnel dans l’amélioration de l’efficacité du marché, pour la réduction du coût des transactions financières et pour optimiser la productivité.
En savoir plus >>

Cadre de la comptabilité et du budget

Pendant des décennies, le débat a fait rage au sujet de l’applicabilité pour le gouvernement de ce qui est souvent désigné comme une méthode de comptabilité du secteur privé. Ceux qui s’opposent à son utilisation dans le gouvernement offrent les différences dans l’orientation de la gestion entre les secteurs public et privé pour soutenir leur position. Ils font valoir que du fait que le secteur privé est orienté sur la création de profits, les concepts sous-jacents de comptabilité ne sont pas valides à des fins gouvernementales. Cet argument est simpliste et ne parvient pas à reconnaître l’objectif global de tous les systèmes de comptabilité.
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Imaginons que le principales banques étrangères commencent à diminuer leur présence en Asie

Les banques européennes jouent un rôle important dans l’approvisionnement en crédit des économies des pays asiatiques. Qu’arriverait-il si elles commencent à diminuer leur présence dans la région?
Les plus gros emprunteurs des banques européennes sont l’Australie, la région administrative spéciale de Hong Kong, la Corée, la Malaisie, la Nouvelle-Zélande, Singapour et la province chinoise de Taïwan, tandis que la Chine, l’Inde et les économies du Sud-est asiatique ont des responsabilités moindres. Parmi ces banques européennes, celles du Royaume-Uni ont une présence significative et particulière en Asie. Pour la plupart des économies régionales, le secteur privé non bancaire – entreprises et particuliers – est le principal bénéficiaire du crédit des banques étrangères dans l’ensemble.
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Les leçons des crises récentes et des priorités actuelles pour les spécialistes financiers et les décideurs

Du 14 au 18 mai, la Banque mondiale a tenu son cours général annuel sur les problèmes du secteur financier à Washington, DC. Destiné aux décideurs et spécialistes en milieu de carrière du secteur financier, l’objectif de cet évènement d’une semaine était de discuter des questions d’importance actuelle et à long terme pour le développement du secteur financier. Le cours de cette année s’est orienté sur les leçons des crises récentes et des priorités actuelles pour les spécialistes financiers et les décideurs. Le moment était assez propice – le cours s’est tenu la même semaine que la révélation publique de la perte de milliards de dollars de JP Morgan et l’intensification de la crise européenne du fait que les banques grecques subissent une large vague de retraits.
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Actualización Semanal de FreeBalance – Martes, Junio 19 de 2012

Tuesday, June 19th, 2012

Lo Nuevo en FreeBalance

Esta actualización semanal de noticias proporciona a la comunidad de Planeación de Recursos del Gobierno (GRP*) una visión general de los recientes desarrollos de FreeBalance y las noticias relevantes de la industria.

¿Qué puede aprender Canadá sobre la sostenibilidad de la administración financiera pública de los países en desarrollo? [Parte 2]

ICT4D es el concepto de utilizar la tecnología de la información y comunicaciones para mejorar el desarrollo de un país. Esto se aplica al mejoramiento económico general, tal como el mejoramiento de la comunicaciones para fomentar negocios o sectores como la educación y la salud con el fin de mejorar la gobernabilidad y reducir la corrupción. Los estudios sugieren que hay un impacto positivo más significativo sobre el ICT en países de ingresos bajos y medios que aquellos de ingresos altos. El impacto de la tecnología puede ser transformador para mejorar la eficiencia del mercado, reducir los costos de las transacciones financiera y optimizar la producción.
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Contabilidad y estructura presupuestal

Durante décadas ha perdurado el debate acerca de la aplicabilidad para el gobierno de lo que a menudo es referido como la metodología de contabilidad del sector privado. Aquellos que tienen opiniones en contra de su uso en el gobierno argumentan de las diferencias de aproximaciones gerenciales entre el sector privado y el público. Dicen que debido a que sector privado está concentrado en generar ganancias, los conceptos subyacentes de contabilidad no son válidos para los propósitos del gobierno. Este razonamiento es simplista y no reconoce el propósito general de los conceptos de contabilidad.
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Imaginando si los bancos extranjeros claves comienzan a reducir su relevancia en Asia

Los bancos europeos juegan un importante papel proporcionando créditos a varias economías asiáticas. ¿Qué sucedería si comienzan a reducir su relevancia en la región?
Los mayores prestamistas de los bancos europeos son Australia, Hong Kong, Corea, Malasia, Nueva Zelanda, Singapur y Taiwán. China, India, y las economías del sudeste asiático generalmente tienen menor riesgo. Entre los bancos europeos, los del Reino Unido son los que tienen una presencia significativa en Asia. Para la mayoría de las economías regionales, el sector no bancario privado, ósea los negocios y los hogares son los mayores prestamistas de crédito de los bancos extranjeros.
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Lecciones de las crisis recientes y prioridades actuales para los asesores financieros y formuladores de políticas

Entre el 14 y 18 de mayo, el Banco Mundial realizó su curso anual de Visión General sobre Asuntos del Sector Financiero en Washington, DC. El curso estuvo dirigido a asesores financieros y formuladores de políticas de mitad de carrera. El objetivo de este evento de una semana fue discutir temas de importancia actual y a futuro para el desarrollo del sector financiero. El curso de este año se concentró en las lecciones de las crisis recientes y prioridades actuales para los asesores financieros y formuladores de políticas. El momento no pudo ser más oportuno ya que se realizó en la misma semana de las negociaciones de acciones multimillonarias de JP Morgan y de la intensificación de la crisis europea con retiros masivos de depósitos de los bancos griegos.
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What Canada can learn from Developing Countries on Public Financial Management sustainability, [Part 6]

Tuesday, June 19th, 2012

Leverage “cognitive surplus” to improve public policy

Doug Hadden, VP Products

This is Part 6 of 6 parts detailing the content in my Financial Management Institute of Canada lunch presentation What can we learn about Sustainability from Developing Nation Governments?

Developing countries are adopting processes and technology designed to increase citizen trust while leveraging citizen and civil society cognitive surplus to improve public policy. If the Arab Spring, Tea Party and the Occupy movement has taught governments anything it’s crowdsource to improve public policy – or be crowdsourced.

Many define “democracy” as representative democracy rather than participatory democracy.  Indian MP Ruhal Gandhi suggested that the Anna Hazare hunger strike undermined democracy in India. Yet, it is clear that representative democracy is a thin form because citizens exercise the franchise only during elections.

Transparent and open government data enables developing nations to harness the power of citizens for audit. As I described recently in citizen audit use cases for Public Financial Management (PFM), there are compliance, fraud and performance citizen audit dimensions. Citizen audit is enabled through open data (proactive disclosure of public financial management information on the Internet) and social media collaboration (Internet enabled feedback and discussion.) I further suggested that it is the duty of citizens to leverage open government.

Auditing is expensive. Very expensive in developing countries. That’s why citizens, civil society and businesses are encouraged to help governments. For example, there is nothing better to uncover procurement fraud or poor procurement decisions than competitors.

We have world class external audit in Canada and improving internal audit, as I described in a previous post. David M. Walker, the former U.S. Comptroller General has pointed out that the US Government Accountability Office has a proven return on investment though trapping fraud, improving controls, proposing performance improvements etc. Yet, even audit agencies with proven returns are being cut back.

The Performance Problem

As I’ve pointed out before, performance management in the public sector is more complex than in the private sector. Private sector organizations have a bottom line: profit. There are established measurements like market share, and return on assets. Output measurements like the number of customer complaints handled, and outcome measurements like customer satisfaction survey ratings are factors that influence financials – profitability. If all the KPIs are green and the company is not making a profit, than the indicators are likely incorrect.

There is no bottom line in government. Outputs and outcomes are the results. Financial – in this case, budgets, is the input. This makes it very difficult to determine whether the KPIs are correct. There could be false positives and false negatives.

Social media in government, or Government 2.0, can engage citizens and civil society to report on outputs or outcomes. For example, the Ushahidi platform is used to monitor elections, disaster response and corruption.

The next stage in citizen engagement is crowdsourcing through expert groups or the public. This shows promise when managed correctly. For example, an effort at the White House generated some unexpected ideas. The principle of using citizens to propose and vet solutions reduces the burden on governments and may generate ideas to solve important problems.

Participatory Budgeting to go virtual?

Participatory budgeting is a process originally developed in Brazil to engage citizens to improve budgets. Adoption of participatory budgeting has grown particularly at local government. My sense is that the immediacy of service delivery in local government can create a critical mass of participation. The use of neighbourhood and civil society meetings and government outreach may not be sustainable in large regional governments and many national governments.

My view is that participatory budgeting will become virtual in the future. We can learn from the lessons in participatory budgeting to improve outcomes.

There is some sensitivity in governments to crowdsource policy because policy is considered the purview of political wonks. There is a notion of budget confidentiality in Canada that may restrict the kind of openness enjoyed in developing countries.

Open Government Costs

Many argue that open government, social media, crowdsourcing etc. just costs money. I’ve summarized the business case for open government in a previous entry. A recent Transparency Camp Brainstorm identified the following benefit categories for open government:

  • Revenue, primarily in the form of increased tax collection through increased economic activity
  • Efficiency, effectiveness and productivity through reduced cost per unit of work including cost avoidance
  • Outcome improvements such as achieving higher levels of service delivery or improved health statistics

David Eaves argued that open data can reduce the cost for reduce the costs of Freedom of Information processing

Social Media effects

The resistance to social media and open data in developed nation governments contrasts to the attitudes from many developing countries. I find a greater acceptance of the value proposition of open government in countries like Timor-Leste, whose transparency portal is an amazing achievement, than in G8 countries.  The commitments for the Open Government Partnership show that these countries are innovating beyond expectations. This could result in a more engaged population with a deeper form of democracy than we enjoy in Canada today.

As I’ve written before, social media will be transformational for Public Financial Management. The key driver in developing countries is the need to sustain reform. This doesn’t mean sustaining the PFM “status quo”. Or, tweaking processes. This means continuous modernization and reform. Catching up to developed countries. Leapfrogging developed countries. This effort requires citizen engagement.

Let’s hope that governments at all levels in Canada do not hold back and get leapfrogged.