Sequencing ICT in Post-Conflict/Low-Capacity
Countries Undergoing Decentralization
Case Study: Sierra Leone and Rwanda
“ICT, as defined in the Information & Communication Technologies
Strategy Paper of the World Bank Group (April 2002), consists of hardware,
software, networks, and media for collection, storage, processing,
transmission, and presentation of information (voice, data, text, images).”
Antonio Carlos Carvalho
[email protected]
2
Table of Contents
Executive Summary..........................................................................……………….4-8
I. Introduction ......................................................................................………… 9-10
II. Context ……………………………………………………………………….. 10-17
III. Strategy, Vision and Leadership…..………………..………………………. 18-20
IV. Design………………………………..…………………………………………20-25
V. Implementation and Sustainability………………………………………….. 25-28
VI. Conclusion …………………………………………………………………… 33-34
Annex 1: Recommendations………………………………………………………35-39
Annex 2: Central Government Systems in Sierra Leone and Rwanda…………40-41
Annex 3: Forces Driving or Influencing Management Reform and
Decentralization………………………………………………………….42-44
Annex 4: Possible Roadblocks……………………………………………………. 45
Annex 5: Advantages of VSATs …………………………………………………..46
Annex 6: New Unified Chart of Accounts, Sierra Leone…………………………47-48
Annex 7: General Information about Visual Basic and Microsoft SQL Server…49
Annex 8: Paper Financial Reports in Rwanda……………………………………50
Annex 9: A Campaign to Support Decentralized Financial Management
and the Use of ICT.……………………………………………………….51
Annex 10: A Donor’s and Stakeholder’s Information Web site:…………………52
Annex 11: Internet Centers in Sierra Leone………………………………………53-54
Annex 12: Sequencing Matrix and Notes on Horizontal Cooperation………. 55-56
Annex 13: Country Notes – Sierra Leone……………………………………...….57-65
Annex 14: Country Notes – Rwanda ………………………………………… …66-75
Text Boxes
Box 1: Already Existing Possibility of Using VSATs in Rwanda for
Decentralized Financial Management……………………………………….29
Bibliography………………………………………………………………………..76-77
3
LIST OF ACRONYMS
DFID-UK:
United Kingdom Department for International Development
EU:
European Union
IFMIS:
Integrated Financial Management Information System
FMAAs:
Financial Management and Accountability Arrangements
FMAS:
Financial Management Accounting System
GoSL:
The Government of Sierra Leone
ICT:
Information and Communications Technologies
ICT4D:
Information and Communications Technologies for Development
IRCBP:
Sierra Leone Institutional Reform and Capacity Building Project
ITU:
International Telecommunications Union
LC:
Local Council
LG:
Local Government
MOF:
Ministry of Finance
MLOC:
Ministry of Local Government
MTEF:
Medium Term Expenditure Framework
NGO:
Non-Governmental Organization
NITC:
National Information Technology Authority
PFM:
Public Financial Management
PRMPS:
The Bank’s Poverty Reduction and Economic Management
Network, Public Sector Governance Unit
UN:
United Nations
UNAMSIL: United Nations Peacekeeping Mission in Sierra Leone
UPS:
Uninterruptible Power Supply
VoIP
Voice-over-Internet-Protocol
VSAT:
Very Small Aperture Terminal
4
EXECUTIVE SUMMARY
The following case study of Sierra Leone and Rwanda was undertaken bv the author for
the World Bank's Poverty Reduction and Economic Management Network, Public Sector
Governance Unit (PRMPS), Decentralization Thematic Group, as a member of a team
with experience in Information and Communications Technologies for Development
(ICT4D), Public Finance, and Decentralization1, considering issues which arise in the
sequencing of financial management and accountability measures in post-conflict or lowcapacity countries where decentralization is taking place.
The work was financed by the World Bank Netherlands Partnership Program, BNPPTF053705, “Sequencing Financial Management Practices as a Development Tool for
Post-Conflict Countries”.
The key issues addressed in this paper are: 1- How to apply ICT to jumpstart and improve
decentralized Financial Management and Accountability Arrangements (FMAAs) in
order to support functioning local government systems, improve inclusiveness,
transparency, accountability, and service delivery; 2- What should be the sequencing, the
effective prioritization.
CONTEXT
Post-conflict/low-capacity environments pose particular challenges, because there is
often a combination of political and cultural environment, conflict scars, disorganization
of public structures and the damages inflicted to the country's infrastructure, making the
challenge significantly more complex and difficult, and there are immediate needs for
food, health, sanitation, electricity, roads, etc. National and regional stability is vital to
the planning and implementation of decentralized financial management, while political
instability or conflict remissions can damage or destroy any reconstruction and
development project.
Logistical Difficulties
The geography and infrastructure of a post-conflict/low-capacity country should always
be examined and assessed because logistical difficulties will directly affect sustainability,
systems and equipment maintenance. The UN network established in Sierra Leone was a
very good example of well-managed logistics. But in some instances, technical people
had to be flown in from NYC to restore it and replace routers. Unlike the U.N.
peacekeeping operations, a post-conflict/low-capacity country administrator cannot rely
1
The other member of the Team, David Sewell, is reporting separately on the sequencing of financial
management and accountability measures in post-conflict/low-capacity countries.
5
on helicopter flights to solve ICT technical problems. The logistical aspect supports the
choice of a simpler financial management system.
Hurdles: Power Supply, Telecommunications, and Capacity:
The three aspects that most directly affect the application of ICT in post-conflict/lowcapacity contexts are power supply (or electricity), telecommunications infrastructure,
and capacity.
Power Supply:
The widespread use of surge suppressors and uninterrupted power supplies underscores
the fact that even the most industrialized nations are not exempt from power-related
problems. In post-conflict/low-capacity contexts, the capacity before the conflict to
generate electricity is usually already well below the required level to fulfill the country's
needs, and the conflict only further exacerbates the sub-optimal situation. This challenge
calls for more creative and alternative solutions, such as solar panels, wind energy.
batteries, and portable generators.
Telecommunications:
The post-conflict reality in most places will often call for wireless solutions for the local
governments due to the network inexistence in the remote areas, while at the same time it
is important to have an adequate scenario for investments, in order to attract
entrepreneurs willing to invest, creation of mobile telephony companies, and privatization
of the usual inefficient monopolies, all actions strategically aiming to develop the
telecom sector.
Telecom sector reform in post-conflict/low-capacity countries is vital, to enhance sector
growth and provide adequate regulatory and investments environment, and must be
pursued as soon as stability is achieved.
Capacity:
Less developed nations suffer from loss of human capital, either from the departure of
those who were attracted by opportunities in other countries or from the leaving of those
who fled to escape persecution or to seek safety. Displaced populations and valuable
professionals may leave the country temporarily or definitively, but many are eager to
return and reunite with their families and do what they can for their country.
Professionals are always looking for a chance for employment and career development,
including those in the post-conflict/low capacity countries. Investing on capacity
building and learning institutions is very important, as well as making sure to not
underestimate the already existing capacity that may be hidden or go unmeasured. A
skilled work force is essential, and on-going policies are essential to retain them,
6
considering that an employee will become much more marketable after taking courses
and becoming more knowledgeable and specialized under government's expenses.
STRATEGY, VISION AND LEADERSHIP
Leadership, strategy, implementation, cross-sectoral co-operation, and inter-government,
as well as intra-governmental co-operation, are determinant and interdependent on
development projects supported by ICT, as is the case of decentralization. Leadership and
vision are the most essential ingredients. A holistic view is vital and ICT strategies are
essential for the post-conflict/low-capacity countries.
A national ICT strategy is essential.
Political Support from the Highest Office
ICT policies should be formulated at the highest possible level, and taking advantage of
the usual momentum for reconstruction and re-organization in the conflict aftermath
period. Coming directly from the Head of State is the ideal situation.
ICT Champion
A person should be appointed to play the role of Information Champion at the Minister of
Finance in order to lead the ICT strategy and implementation.
DESIGN
Considerations about in-house system development, partnerships, and offthe-shelf solutions:
A country's government may opt for an in-house system development and it may also
serve other purposes like supporting the local software industry. However, in these cases
usually the customer base will be too small to fund continuous software development. A
software quality assurance program needs a larger base of customers, something that is
not achieved with a single client.
Intellectual Property Concerns:
In countries where a system is developed in a partnership between the government and
consultants, some precautions must be taken, such as an agreement stating that the
government will possess certain rights over the final product. If a partnership exists
between a government and a company or a group of consultants, the software codes
resulting from this partnership should be placed in escrow with a trustable entity.
Simpler Systems for Local Governments
7
The logistical difficulties and the hurdles support the choice of a simpler financial
management system. The initial requirements are for basic functions, such as budget
execution, expenditure management, commitment management (obligation control inside
the budget control), and general ledger. According to each country's case, as the process
of decentralization unfolds, other modules can be included, such as a revenue
management function to track revenue, one of the goals in any decentralization plan.
A web-based application for the local governments
A web-based application is a software package that can be accessed through the web
browser. The software and database reside on a central server rather than being installed
on the desktop system and is accessed over a network. That model could be applied as a
pilot project for post-conflict/low-capacity countries.
Proactive Solution: Bringing the Local Governments to the Network where
the Network Has Not Reached Them:
In places where there is no network yet, instead of bringing the network to the Local
Government, the Local Government official can be brought to the nearest point or
location of the network, then access the IFMIS on the web, log-on as a user, and record
transactions. Through he/she logging into the system, the system will then be able to
determine "who they are" and "what their data-access rights are". A field-test during the
Mission in Rwanda (more details in the paper) using a VSAT with a solar panel, showed
that in this country this could start soon, if there is a web-based system available at the
Central Government, and using the private sector already available infra structure (see
Box 1).
CONCLUSION
Simpler system, web-based:
The author suggests a simpler financial management system at the local level that can
produce information to be recorded in a web-based IFMIS with an easy interface for local
users. Spreadsheets at the local level that can be recognized by the national IFMIS and
translated into useful information for decision-makers would suffice for the purpose of
decentralization of financial management in the initial phase. The usual hurdles with
regards to connectivity can be addressed with creativity and using "kiosk" points, Internet
cafes, and other points were the network is already present. The obstacles of electrical
supply can be tackled through alternative means (solar panels, generators, etc).
Before going hog-wild spending limited resources and implementing an IFMIS at the
local level, the author recommends a proof-of-concept pilot project to first test a webbased IFMIS that receives information generated locally from a simpler financial
management software package, installed in stand-alone machines, and build up a network
8
by increments. Of course the goal to pursue should be to have all local governments
connected, but that can be done along the way and according to the resources and
development needs and priorities. Telecom services are always likely to improve as a
consequence of sector reform and a well-managed privatization process of the local
monopoly.
Private Sector Role:
Instead of governments building proprietary networks, the suggested strategy is to
encourage private investments, and then the governments becoming clients of the
networks that will be built by investors. The network built by entrepreneurs may serve
an aggregated demand.
Sequencing Matrix:
Attached is a matrix with suggested actions, divided as follows: a)Strategy, b)
Infrastructure, c) Implementation, broken down in time (immediate, shot-term, mediumterm and long-term).
RECOMMENDATIONS
1 - Technology Use:
1.1 - Simpler and easier to maintain financial management systems for Local
Governments.
1.2 - Buying integrated financial systems software licenses before investing in the whole
requirements can turn the usually expensive copies that are purchased useless.
1.3 - Consider the risk of having to pay for technological updates even before using the
system.
1.5- Web-based applications with easy interfaces.
1.6- Consider the possibility of introducing the use of electronic cards.
1.7- Assess the infrastructure in the preliminary phases of the project.
1.8- Invest in wireless applications.
1.9- Plan to use ICT even before the Local Governments are integrated into the national
electricity grid, because that may take years.
2- Strategy:
2.1 - A National ICT Strategy should be formulated at the highest possible level.
2.2 - Telecom Sector reform is vital.
2.3 – Have an ICT Champion in the Ministry of Finance and at each
Local Government.
2.4 -If an IFMIS is purchased by the central government it should be used by all the
agencies, in support of efficiency and transparency
2.5 - Establish partnerships with Universities and other educational institutions.
2.6- Implement an on-going strategy to retain trained and skilled personnel.
3- Unified Charts of Accounts:
Avoid Separate Charts of Accounts.
9
Sequencing ICT in Post-Conflict/Low-Capacity
Countries Undergoing Decentralization
Case Study: Sierra Leone and Rwanda
I.
INTRODUCTION
The following case study of Sierra Leone and Rwanda was undertaken bv the author for
the World Bank's Poverty Reduction and Economic Management Network, Public Sector
Governance Unit (PRMPS), Decentralization Thematic Group, as a member of a team
with experience in Information and Communications Technologies for Development
(ICT4D), Public Finance, and Decentralization2, considering issues which arise in the
sequencing of financial management and accountability measures in post-conflict or lowcapacity countries where decentralization is taking place.
The work was financed by the World Bank Netherlands Partnership Program, BNPPTF053705, “Sequencing Financial Management Practices as a Development Tool for
Post-Conflict Countries”.
The Team’s visit to Sierra Leone was planned by PRMPS to coincide with the World
Bank’s first Implementation Support Mission for the Sierra Leone Institutional Reform
and Capacity Building Project (IRCBP). The principal objective of the IRCBP Mission
was to assess progress in achieving the Project Development Objective of "establishing a
functioning local government system and improving the inclusiveness, transparency, and
accountability of public financial management at all levels of government." The author
visited three of the District Councils in the south of Sierra Leone (Bo, Mattru Jong,
Moyamba) and attended meetings between the IRCBP Mission and the District Councils
to assess their operations, while his colleague travelled to the northern region of the
country. In Rwanda, the Team visited Kigali and the Districts of Kamonyi and
Nyagasambu.
From Sierra Leone, the Team traveled to Rwanda. Although the objectives for the
Rwanda trip were the same, the contexts in each country were quite different. In the case
of Rwanda, the genocide occurred 10 years ago. Since then, Rwanda has been the
2
The other member of the Team, David Sewell, is reporting separately on the sequencing of financial
management and accountability measures in post-conflict/low-capacity countries.
10
recipient of constant international assistance. As a consequence, reconstruction and
progress have taken place, and government re-organization has been implemented with
visible results. In Sierra Leone, the conflict was much more recent, and the United
Nations (U.N.) Peacekeeping troops are still deployed in the country; with regard to
ICT4D infrastructure building, the work began three years ago, and a success case is the
company CELETL, that in a short period of time has built a GSM mobile operation.
The field trips had the objectives of: (i) providing a framework/stocktaking report on
Information and Communication Technologies (ICT) in post-conflict/low capacity
contexts; (ii) list challenges and offer suggestions for technology options as they relate to
prioritizing/sequencing Financial Management and Accountability Arrangements
(FMAAs) systems at the sub-national/central level; and (iii) record findings and provide
analysis and recommendations.
The key issues to be addressed were: 1) How to apply ICT to jumpstart and improve
decentralized Financial Management and Accountability Arrangements (FMAAs) in
order to support functioning local government systems, improve inclusiveness,
transparency, accountability, and service delivery; 2) What should be the sequencing, the
effective prioritization.
There are several forces driving or influencing decentralization as they are detailed in the
Annex 3, and the application of ICT is pivotal to development.
II.
CONTEXT
Post-conflict/low-capacity environments pose particular challenges, because there is
often a combination of political and cultural environment, conflict scars, disorganization
of public structures and the damages inflicted to the country’s infrastructure, making the
challenge significantly more complex and difficult. The aftermath of most armed
conflicts typically takes a heavy toll on a country's infrastructure: roads, energy
generation, water supplies, telecommunications, maritime ports, and airports. What little
infrastructure existed before the conflict is damaged or completely destroyed as a result
of the open violence and takes a long time, great amounts of money, and a lot of hard
work to rebuild. While it may take only minutes to destroy a power plant or a
telecommunications exchange3, it can take years to rebuild it in low-capacity contexts.
Post-conflict/low-capacity countries have immediate needs for food, health, sanitation,
electricity, roads, etc. At the same time, they also have a need to integrate basic financial
management functions and responsibilities into a system that will both support more
transparency of management of public funds while also contributing to reduce and/or
eliminate corruption. Governments need timely and reliable financial information in
order to efficiently make key decisions that will affect entire populations. Having a
stable, well-developed financial management philosophy is essential for ensuring success
in post-conflict/low-capacity countries pursuing reconstruction and development.
3
Exchange - The assembly of equipment in a communications system that controls the connection of
incoming and outgoing lines and includes the necessary signaling and supervisory functions.
11
Because funds are scarce, needs are immense, and efficient delivery of services will
support stability.
National and regional stability is vital to the planning and implementation of
decentralized financial management, while political instability or conflict remissions can
damage or destroy any reconstruction and development project. At the present moment
(November 2004), there is the case of Côte D'Ivoire, where conflict suddenly erupted.
Infrastructure was affected, power supply was interrupted, and telecommunications were
probably damaged in the process as well. One can imagine how much harm might have
been caused at both the central and local levels. It is important to keep in mind the risks
posed by investing in post-conflict/low capacity countries, which can negatively affect
any ICT projects and raise the costs.
Logistical Difficulties
The geography of a post-conflict/low-capacity country should always be examined.
Sierra Leone is a West African, sub-Saharan coastal country. The capital, Freetown, is
located inside a large maritime bay in the south of the country. From the airport to the
city it takes another trip by boat to cross the bay (a private company operating a
hovercraft has been offering services since the situation stabilized) or a helicopter flight.
Another option is a long drive on roads in very bad shape, for an unpredictable amount of
time. Rwanda is a land-locked Central African country, mountainous. Its capital,
Kigali, is roughly situated at the geographical center of the country. The locations of
Freetown and Kigali pose different logistical challenges for ICT equipment maintenance
and training. In Rwanda it is easier to send people and parts to different locations from
the capital city, as distances are shorter and roads are better. The airport is only 10-15
minutes from the center of Kigali.
It is important to keep in mind that there are no stores like CompUSA nearby to
find parts or to take equipment for repair in post-conflict/low-capacity countries.
Logistical difficulties will directly affect sustainability, systems and equipment
maintenance.
In Sierra Leone, from Freetown to the Local Councils, the logistics are much more
difficult. The roads are in a bad state and some were under repair. The further from the
capital the greater are the transportation difficulties. This point is being highlighted
because a project using ICT has to take such factors into consideration. It is very easy to
buy software and hardware and leave it at the Councils, but much more planning and
effort are required to maintain it in good condition and ensure that the users are operating
this software and hardware properly, with minimum problems and interruptions. The
communications network established for the U.N. peacekeeping troops in Sierra Leone is
a very good example of well-managed logistics. But, even with the military’s level of
organization, training, infrastructure, technical personnel, and vehicles and helicopters,
keeping the U.N.’s communications network has been challenging. In some instances,
key technical people had to be flown in from New York to restore the network and
replace routers. Unlike the U.N. peacekeeping operations, a post-conflict/low-capacity
12
country administrator cannot rely on helicopter flights to solve ICT technical problems.
In a post-conflict/low-capacity context, a local government can suffer a hardware
malfunction or software problem, such as a simple contaminated computer file, and spend
several days trying to get the network back up.
The logistical aspect described above supports the choice of a simpler financial
management system that is easier to maintain
Picture 1: UN Helicopter Fleet in Sierra Leone Peacekeeping Mission
13
Picture 2: Road being repaired in Sierra Leone. The heavy rain season causes
significant damage to the roads.
Hurdles: Power Supply, Telecommunications, and Capacity:
The three aspects that most directly affect the application of ICT in post-conflict/lowcapacity contexts are power supply (or electricity), telecommunications infrastructure,
and capacity. Naturally, there are other factors, but in this study these three will be
treated as the most important ones.
Power Supply:
The Western Hemisphere has traditionally enjoyed consistent and high standards of
power quality. Even so, natural occurrences such as hurricanes, earthquakes, or typhoons
can cause lengthy power interruptions even in the most developed and industrialized of
nations. A simple traffic accident that knocks down a light post could be the cause of a
citywide power interruption in Washington, D.C., for example, regardless of the weather.
Even with high standards of power quality, daily variations in power supplies are
sometimes great enough to cause operational problems in a range of equipment. The
widespread use of surge suppressors and uninterrupted power supplies underscores the
fact that even the most industrialized nations are nevertheless also subject to powerrelated problems. In post-conflict/low-capacity contexts, the scenario is much worse. In
these countries, the capacity before the conflict to generate electricity is usually already
well below the required level to fulfill the country's needs. A conflict only further
exacerbates the sub-optimal situation, with resultant damage to power generation,
transmission lines, and electricity distribution systems. Users of high-tech electronic and
electrical equipment in post-conflict countries face much more serious obstacles in the
pursuit of high quality power, which is crucial for ICT. Essential processes can be
damaged and vital equipment may crash with slight variations in the AC power supply.
Surges, drops, and line noise can result in data processing errors of sensitive equipment
and subsequently cause irreparable damage. Constant Voltage Transformers (CVT),
Automatic Voltage Stabilizers (AVS), and Uninterruptible Power Systems (UPS)4 should
be part of the basic power supply structure, and adequate power supply should be
integrated into any planning regarding the protection of ICT equipment and data. This
challenge calls for more creative and alternative solutions, such as solar panels, batteries,
and portable generators.
4
UPS - Uninterruptible Power Supply – A device that usually includes in an inverter, drawing its power
from batteries, which generates an extremely “well-behaved” AC power signal. If heavy demand is
anticipated, the system can be coupled with an auxiliary generator that is started when commercial power is
interrupted.
14
Picture 3: Radio and computer room in Bo, Sierra Leone
Picture 4: Another view from the radio and computer room in Bo Council,
Sierra Leone. The equipment had been donated and installed by the United
Nations Development Program. The average local temperature is quite high
and there is no air conditioning. A fan was placed in a position to provide
ventilation. There were batteries on the floor and a generator outside the
building.
15
Telecommunications:
The pre-conflict scenario in Sierra Leone and Rwanda was already of very low
teledensity5, connectivity is usually limited to the capital or a handful of other cities
equipped with some level of infrastructure. Broadband Internet connections, when
available, are limited to only a few locations. In the past quarter-century several
technological advances have contested the methods for assessing a country's
telecommunication development. Although measuring the number of main lines is still
very important, several other information-development proxies should be used as well.
In Rwanda, if considered as a proxy the number of people already having access to rural
telephony, using the private company ARTEL’s infrastructure of solar panels and
VSATs6, the teledensity indicator would be much higher.
It is now possible to use the same cable television lines as media for transmitting data.
Fiber optics is widespread all over the world, and even in post-conflict/low-capacity
countries entrepreneurs are starting to invest in fiber-optic cables, a networking medium
capable of higher data rates than the other types of media. Mobile telephony has grown
dramatically in the developing countries compared with traditional telephony. Wired and
wireless telephony can converge with cable, satellite services, and fiber optics. These
new technologies permit an innovative approach to assessing a country's level of telecom
development. Solutions have to be planned and implemented that take advantage of the
existing infrastructure, improve it, and build new ones. Technological convergence7 must
be planned and put into practice as well.
The post-conflict reality in most places will often call for wireless solutions for the local
governments due to the network inexistence in the remote areas, while at the same time it
is important to have an adequate scenario for investments, in order to attract
entrepreneurs willing to deploy fiber-optic cables in the country’s capital for example, to
serve the whole government administration, business, and schools.
Telecom sector reform in post-conflict/low-capacity countries is vital, to enhance
sector growth and provide adequate regulatory and investment environment, and must be
pursued as soon as stability is achieved.
5
The telecommunication benchmark that was adopted in the 1980s and defined by the International
Telecommunications Union (ITU) to be the number of main telephone lines per 100 inhabitants
6
VSAT Very Small Aperture Terminal –An earthbound station used in communications of data, voice, and
video signals, excluding broadcast television, consisting of two parts: a transceiver placed outdoors in
direct line-of-sight to the satellite, and a device placed indoors to interface the transceiver with the end
user’s communications device, such as a PC.
7
Technological convergence is the modern presence of a vast array of different types of technology to
perform very similar tasks. For example, in today’s society one can communicate with a friend via mail,
online chatting, cell phones, e-mail, and many other forms of modern technology. (Wikipedia,
http://en.wikipedia.org)
16
Picture 5: Sierratel’s Tower in Bo, Sierra Leone
17
Picture 6: Sierratel’s Electricity Generator in Bo, Sierra Leone
Capacity:
Less developed nations suffer from loss of human capital, either from the departure of
those who were attracted by opportunities in other countries or from the leaving of those
who fled to escape persecution or to seek safety. Wars and conflicts directly affect
educational institutions. They lose professors, students, and funds. Installations, if not
destroyed or vandalized, are left abandoned and without maintenance, as is the case of the
University of Sierra Leone, Fourah Bay College, in Freetown. However, no matter how
poor a country is or how severe the conflict might have been, some institutions are able to
survive, such as the case of universities and schools. Displaced populations and valuable
professionals may leave the country temporarily or definitively, but many are eager to
return and reunite with their families and do what they can for their country.
Professionals are always looking for a chance for employment and career development,
including those in the post-conflict/low capacity countries. Investing on capacity
building and learning institutions is very important, as well as making sure to not
underestimate the already existing capacity that may be hidden or go unmeasured. A
skilled work force is essential.
18
III.
STRATEGY, VISION AND LEADERSHIP
Leadership, strategy, implementation, cross-sectoral co-operation, and inter-government,
as well as intra-governmental co-operation, are determinant and interdependent on
development projects supported by ICT, as is the case of decentralization. Leadership and
vision are the most essential ingredients.8 In order to succeed in complex scenarios
sound strategy and implementation together with creativity and flexibility should exist.
The most appropriate (the arbitrary nature of what is considered “appropriate” will be
discussed later) technology should always be used. This should be done according to the
local reality and with the available funds and work force. Leadership involves mobilizing
resources to achieve strategic ends. Ernest Wilson9 explains the relationship between
ICT leadership and ICT vision:
“In the ICT context, vision is a body of arguments or doctrine that conveys effectively
and coherently the ways that ICT services can advance the core values and goals of a
given group, institution or society. An ICT vision describes the present, offers an
attractive image of the future, and provides a way for people to move successfully to that
future…Vision provides a matrix for making sense of a complicated and chaotic world,
…is not a one-time event but is a message conveyed repeatedly...” (p. 96).
In post-conflict/low-capacity countries people no longer accept the concentration of
power (and possibly corruption) in the central government, and this is also one of the
major causes of conflicts. Effective decentralization and diffusion of ICT will depend on
their leaders’ vision and leadership. Information champions are likely to play an
important role.
There are often many roadblocks along the way to achieving effective decentralized
financial management (Annex 4). A holistic view is vital, considering that ICT will not
solve all the problems per se and should not be taken as a panacea. Nonetheless, it for
sure should be adequately used in any post-conflict/low capacity countries. As a
technology enthusiast, the author strongly support ICT strategies for the postconflict/low-capacity countries where a big difference can be made, while being aware
that expectations might go unfulfilled and investments might become a waste of scarce
funds if plans are not well elaborated and implemented.
A national ICT strategy is essential.
8
This study builds on the author’s experience working in senior positions on information
and communications technologies issues across a wide variety of institutions and sectors
that are most of the times under tight budgets and time limitations.
9
“Information Revolution and Developing Countries” (MIT Press, 2004), Professor Ernest J. Wilson III
19
Political Support from the Highest Office
In post-conflict/low-capacity countries, ICT policies should be formulated at the highest
possible level, and taking advantage of the usual momentum for reconstruction and reorganization in the conflict aftermath period. Coming directly from the Chief of State is
the ideal situation. A country’s leader will always have so much to worry about in order
to address and solve his nation’s problems, but the mission can be delegated to a trustable
and well-chosen person, while providing continued political support, funding and staff.
There is a strong symbolism in the presidential figure if he clearly demonstrates the
importance he attributes to Information and Communication Technologies. Leaders
without familiarity and interest for ICT may neglect these important tools for
development, leaving them in a secondary place. Worse than that, is to leave a vacuum in
a government administration, in such a way that several Ministries and other agencies
will dispute ICT coordination and leadership, or simply it will be lost among the
bureaucracy, and several possibilities for cooperation and scale economy can be lost. In
Rwanda, the President has been placed as the National ICT Champion and chairs the
National Information Technology Authority (NITC), set up as a high-powered ICT Policy
Think-Tank with the mission to lead the process of creating the Rwandan information
society and economy in line with the aspirations of the Vision for Rwanda. As an
example of good policy, the Government has encouraged liberalization and competition,
but also cooperation among the Internet Service Providers: “…they can have their own
gateways, but are all sharing the same Internet Exchange Point, situated at Rwandatel.”10
The elaboration and execution of a national ICT strategy with a particular chapter allotted
for the local governments is essential. In Rwanda, the national development strategy
document, "Vision 2020", gives elevated importance to the Information and
Communication Technologies, and investments have consequently been made in the past
few years, step by step, with support from many donors.
ICT Champion
In the case of decentralized financial management in post-conflict/low-capacity countries,
the appointment of a person to play the role of Information Champion at the Minister of
Finance should be made, in order to lead the ICT strategy and implementation. Capable
and honest leadership is an essential component of the process of creating or improving a
decentralized financial management system, and it will be most effective if backed by the
top executive office in the country. In post-conflict/low capacity countries where new
reforms have created a Ministry of Local Government, an attitude of political rivalry or
friction between ministries can occur. Occasionally this happens when the Ministry of
Local Government does not want to actually transfer responsibilities to the Ministry of
Finance due to the possibility of losing power, influence, or valued personnel. On the
other hand, it is possible to find the Ministry of Finance-already too busy or lacking in
10
Source: interview with Mr. Juma Okech, Rwanda Information Technology Authority (RITA), Chief
Executive Officer.
20
adequate staff – not willing to enter in a political battle to effectively monitor the
disbursement and application of funds in the local governments. ICT can support to
depoliticise things and improve management practices.
IV.
DESIGN
Appropriate Technology — Considerations about in-house System
Development, Partnerships, and Off-the-Shelf Solutions:
It is understandable that a country's government may opt for an in-house system
development and this decision deserves respect. It may also serve other purposes like
supporting the local software industry, which creates expertise. However, in these cases
usually the customer base will be too small to fund continuous software development.
The smaller the base, the fewer the customers who will be making comments and posing
problems with the software that have appeared and have to be addressed. A software
quality assurance program needs a larger base of customers, something that is not
achieved with a single client.
Intellectual Property Concerns:
Another aspect that plays in is intellectual property. Software is nothing but computer
code. In countries where a system is developed in a partnership between the government
and consultants, some precautions must be taken, such as an agreement stating that the
government will possess certain rights (and what rights) over the final product. Adequate
documentation should be provided, and the higher the number of local trained people in
the system, the better. Systems developed in this manner are different in concept from
the off-the-shelf and proprietary solutions. If a partnership exists between a government
and a company or a group of consultants, the software codes resulting from this
partnership should be placed in escrow with a trustable entity. This entity should be
accepted by both sides, as part of the standard license agreement in order to protect the
government in case the other party does not fulfill the contract, falls into bankruptcy, or
experiences any other shortcoming.
Even when the solution is bought as an off-the-shelf and the client gets only the run-time
code, the contract in the standard license agreement should provide that the application
code be put in escrow as a means to protect the client. An additional complication may
arise when projects that use new applications that have just reached the market are not
able to run with older versions, making the technological update mandatory.
Simpler Systems for Local Governments
The logistical difficulties and the hurdles support the choice of a simpler financial
management system that is easier to maintain and capable of transmitting data through
21
alternative means. This could include a courier, for example, carrying a printed
spreadsheet or hand-written form that can be digitized in the next place with a network
presence and sent to the Ministry of Finance, where the infrastructure will always be
better.
A possibility can be using a simpler system in the Local Governments that is installed
locally in a stand-alone computer (desk-top or lap-top), and feeding a “local government
module" for the IFMIS at the central level. Regardless of which IFMIS a country
purchases or develops, it should be capable of receiving and processing information from
all the local governments and at the Ministry of Finance. The level of technological
sophistication employed in the central government usually exceeds the needs and
capabilities of local governments where the level of activity and layers of management
are simpler, so the tendency of applying a system that is more suitably appropriate for a
central government's administration to a local level of government, where usually it
would be overly complex, should be avoided.
In post-conflict/low-capacity contexts, the initial requirements are for basic functions,
such as budget execution, expenditure management, commitment management
(obligation control inside the budget control), and general ledger. According to each
country’s case, as the process of decentralization unfolds, other modules can be included
and turned on. One example of this would be a revenue management function to track
revenue, due to the importance of this function in any decentralization process that
generates revenue locally. As capacity grows and the local government organization
becomes more complex, more modules can be added until the locally-used financial
management system achieves the same number of functionalities in use by a line
ministry.
Although, once the simpler software has been installed locally, information can feed the
national system, even before connectivity is achieved. Periodical reports can then be
transmitted through different methods described below:
•
•
•
Financial data entry by an operator at the MOF upon receiving a printout or email with the attached report from the local government
A reading of the floppy disk, CD, or portable disk containing the report
information, either at the MOF or at the nearest place where a connection is
available, and a workstation capable of performing (internet cafes and tele-centers
can be used for this purpose)
Electronic transmission directly from the local government, where connections
already exist (dial-up, VSATs, leased lines)
While each local reality will pose singular scenarios for decision-makers, one vital aspect
will be equal for all situations: appropriate technological choices must be simpler and
easier to maintain for local governments when a decentralization project is planned and
underway. Also, the technology’s use per se will not solve problems
22
A web- based application for the local governments
Local government employees properly trained (users of the IFMIS) will be able to use the
Internet at their offices or in the nearest location. If the end-user accesses the IFMIS, he
or she will web-access the applications of the IFMIS, load data, record transactions,
access information, produce reports, and financial statements. The user will access a web
page as the door to the system, which must be protected by a firewall. Transactions will
be made on-line. They will actually only need a browser, and the inter-face should be
very simple.
That concept brings the following advantages:
•
•
•
•
•
•
•
Economy in licensing software copies
Skilled human and technical resources, which are always very scarce and in both
cases will be preserved at the central level
Many less software problems that are likely to happen
Easier assimilation by the users
Scale economy in the acquisition of hardware. The acquisition of servers for local
governments can be postponed or even avoided, until capacity is built to maintain
a local area network (LAN)
Less maintenance, consequently more continuous operation
Objectives can be reached faster.
In this study, it seemed difficult and not very cost-effective to think about the deployment
of sophisticated financial systems and hardware installations, locally, especially in places
where the human resources and the infrastructure are still inadequate, and many other
huge needs are present. Local implementation may pose many more challenges and bring
many more technical problems, and may also prove to be unsustainable in the short term.
A web-based11 application can serve the purposes for effective decentralized financial
management. A web-based application is a software package that can be accessed
through the web browser. The software and database reside on a central server rather
than being installed on the desktop system and is accessed over a network. Web based
applications are the ultimate way to take advantage of today’s technology to enhance
efficiency, and give the opportunity to access information from anywhere at anytime,
saving money and improving interactivity. Figure 1 below illustrates:
11
Web-based applications can dramatically increase the flow and value of information. Since access to the
application is through a web-browser, it is not necessary to update and maintain each and every user’s
desktop in the organization - the web application only needs to be installed on 1 web server machine. Users
can gain quick and timely access to a wider variety of existing information, anytime, and from anywhere in
the world.
23
Web-based application. The clients would be the local governments.
The application server and the database would be at the Minister of Finance
It is vital is to keep sending the recorded transactions periodically to the IFMIS at the
central government so that they can be processed and analyzed. Once the reports and
financial transactions from the local governments have been received, it is very important
that they be checked and analysed. Otherwise, the country's administration will merely
be replacing paper reports with digital reports. Nevertheless, the simple act of sending an
electronic file with a spreadsheet instead of a printed spreadsheet is already a significant
cultural change. On top of that, the goal should be to have the information processed as a
managerial tool and for audit trails purposes.
Example:
Purchases of goods and services may be listed generically in a report. However, if the
report is detailed and properly coded according to a unified chart of accounts, the system
can provide information such as how much district A is paying for services or goods X, Y
or Z, as compared to district B, and as compared to all the districts for that matter. It is
common to find corruption, or at least bad management, when prices have disparities, and
a good system may be able to detect this, turning data into useful information.
24
Ownership vs. Outsourcing
Leasing Solutions
In post-conflict/low-capacity countries, the leasing possibility should be always
examined. Those with an eye to the future, with limited funds, and with less proprietary
focus in the government administrations – instead of buying hardware and software,
hiring IT professionals as public servants, and building up expensive and hard to maintain
physical structures (such as a data-centers) – may pay monthly for solutions with leased
hardware and software. Considering the fact that international and local ICT companies
seem to be seizing opportunities to provide services for the countries’ administrations,
and also considering the possibility that international companies can enter into
partnerships with local ones, there is the procurement option of buying integrated
solutions, as was the recent case of Sierra Leone (for more details, see the AideMemoire).
Examples:
•
Instead of buying an IFMIS from a software company, along with computers
(servers and work stations) from a hardware company, achieving connectivity
from the local telecom monopoly, or even assembling a government-owned ISP,
the procurement process may be oriented to buying integrated solutions. The outsourced company could provide everything, but under a contract including
delivery standards and obligations, and the users would have the system available
for them 7/24
•
Governments instead of contracting leased lines from telecom companies in order
to have connectivity for their IFMIS, may hire the whole solution, because the
high costs and markedly lengthy and time-consuming nature of purchasing their
own routers, switches, and hubs for running their installations become prohibitive.
Telecom or other solution provider companies can buy in scale, offer lower
prices, and make replacements and repairs much faster. They may offer the
solution for connectivity from the main-server to the work-station, including
network operation and maintenance for the users and also including firewalls and
anti-viruses.
•
Instead of buying satellite antennas, routers, wireless equipment, as well as
satellite band for IP connectivity, local governments can be provided with turnkey solutions for which the government should be the client
25
Hurdles for the Option of Leasing Solutions
Despite technically possible, leasing turn-key solutions can become difficult or
impossible to implement. The problem of recurrent expenditures is always present. In
post-conflict/low-capacity countries there is usually fear on the government side on
leasing options, since they don’t know if they will have the money to pay for the
instalments, and usually prefer to pay lump-sums, using the donors’ funds received. In
ICT projects it is common that system’s maintenance and technical assistance to be paid
4 or 5 years in advance, so the Government is guaranteed they will receive proper
service. Nevertheless, if donors and governments would agree, instead of spending large
amounts of money to buy equipment and services, and pay at once, donor’s funds for
specific use on ICT projects should be phased and distributed along a few years.
Technically it is also possible to have the IFMIS installed outside the country’s territory,
in a secure data-center, if adequate connectivity is achieved (actually it could be installed
anywhere in the world). But then, there is the issue of sovereignty, and countries may
argue against having their financial data physically located outside the country’s territory.
However, if a country agrees with that option, it would be worth doing, while an adequate
data-center is being prepared locally.
V.
IMPLEMENTATION AND SUSTAINABILITY
All roadblocks having been overcome and the decentralization project being underway,
the essential aspect of sustainability is present, and it is essential that it be addressed. It is
usually difficult in developing countries, especially in post-conflict scenarios, to achieve
long-term sustainability. The key factor for sustainability is by getting the end users to
buy into an idea, involving the community from the beginning and creating partnerships.
If the community buys the project, it is usually bound to succeed.
Develop Government to Government (G2G) Initiatives That Can Support
Bridging the Digital Divide:
While there are initiatives for bridging the digital divide, to support telecommunications
sector growth and to continue government modernization (such as the adoption of an
IFMIS - a G2G project), it is both feasible and desirable to pool resources and
infrastructure and try to bring the demand together. For example, a local government
official may work as a volunteer in the community tele-center and teach people how to
use the Internet. His/her financial department can use the tele-center installations to
send/receive information. If a local government is using a VSAT, the satellite band can
be shared and can provide connectivity to several users in the same community.
26
Wireless technologies, such as a "hot-spot" integrated to the satellite indoor unit, can
serve a wireless local area network (WLAN)12 if the PCs, or laptops, are within reach.
Bridging digital divide initiatives together with decentralized financial management
projects can result in win-win situations. What is being suggested here is not to use local
government buildings or schools as Internet cafes. This could pose a problem of cultural
resistance in many places. However, sharing the bandwidth13 should not present a
problem. As long as costs are prohibitive and there is no infrastructure to connect all the
Councils or Districts, the use by local government officials of ICT facilities in any place
where connections and computers are available should be encouraged.
Proactive Solutions: Bringing the Local Governments to the Network
where the Network Has Not Reached Them:
In places where there is no network yet, instead of bringing the network to the Local
Government, the Local Government official can be brought to the nearest point or
location of the network, then access the IFMIS on the web (Internet), log-on as a user,
and record transactions. Through he/she logging into the system, the system will then be
able to determine “who they are” and “what their data-access rights are”.
Like a field-test this writer did in Rwanda (more details ahead) using a VSAT with a
solar panel in a very small rural district without electricity, and then with a lap-top, with
the appropriate settings, became able to send emails and information anywhere in the
world wide web, in countries possessing IFMIS already operational, financial
transactions can be recorded. If there is a network available for the Local Governments,
the transactions can be recorded in the national accounting system at the location where
they originate.
However, while leased lines and instantaneous connectivity is desirable, it may not be
available or feasible to achieve in the short term. Being so, transactions can be
periodically entered into the system. They will be entered instantaneously where
connections are available, or then can be entered daily or once a week (for example,
12
WAN- A type of local area network that uses high-frequency radio waves rather than
wires to communicate between nodes. Most LANs are confined to a single building or
group of buildings. However, one LAN can be connected to other LANs over any
distance via telephone lines and radio waves. A system of LANs connected in this way is
called a wide-area network (WAN). Most LANs connect workstations and personal
computers. Each node (individual computer) in a LAN has its own CPU with which it
executes programs, but it also is able to access data and devices anywhere on the LAN.
This means that many users can share devices such as printers, as well as data. Users can
also use the LAN to communicate with each other, by sending e-mail or engaging in chat
sessions. There are many different types of LANs, Ehternets the most common for PCs.
13
The bandwidth determines the rate at which information can be transmitted through a
circuit. The greater the bandwidth, the more bits per second that can be carried.
27
every Thursday or Friday), as soon as the file which was recorded locally is transmitted
from the nearest point of the network grid. This can be done from an Internet café, for
example, using a dial-up connection.
If satellite systems can be used in the Local Governments, as is already the case in many
countries, in Sierra Leone the IRCBP14 team may select 5 Councils to operate as the
“kiosk points”, i.e., the locations where officials will be able to log into the system.
Local Councils without telecom infrastructure from Sierratel or the yet to be procured
VSATs will be able to reach the communications grid after a 1-2 hours trip by car to the
nearest already equipped Local Council. It will be parallel to older times when people
living on farms had to go to the nearest post office to send a letter if they were in places
where the mail wouldn’t come to them.
In Rwanda, as soon as an IFMIS is rolled out with a module for the local governments,
the recording of transactions and transmission to the Ministry of Finance can start almost
immediately by using VSATs in the rural areas, or where phone lines from Rwandatel are
available
Easier Implementation and Sustainability in the Larger Metropolitan Areas:
Implementation and sustainability are easier in the nation’s capital and in the larger cities
than in the more distant and poorer localities. So, it is vital to get community support for
FMAAs at the local level, framing adequately the message to the local governments
employees and citizens that this is very important and will help them. The answer lies in
showing them and the local leaders that what will be installed may serve a variety of
purposes. Otherwise, people may argue about it, create difficulties, and even sabotage
the project, which usually will involve expensive systems and equipment while people
desperately need food, medicine, doctors, schools, road repairs, teachers, electricity,
water, sanitation, and many other needs, such as jobs’ creation. The answers may seem
rather easy to say; yet they may prove to be more difficult to implement:
14
•
Despite a country’s economical condition, only technology will bridge the gap
towards development, along with other initiatives
•
Multiple partners bring a range of perspectives and widen the magnitude of
available services. Universities are an example
•
Everyone must and will benefit, especially the children who are the future of all
nations
•
Users need to see a clear benefit to the new technology
IRCBP: Institutional Reform and Capacity Building Project
28
Scalability Issues
It is quite usual for an IFMIS system to “grow”, i.e., after being established and being
used, amounts of data and transactions that will eventually pose scalability problems.
New computers and more storage will be needed. New software and technological
evolutions will arise and it might be the time to use them. If the government has spent its
resources to become the owner of hardware resources and in the next few years lacks the
money to update, the usual outcome will be bottlenecks for good services delivery, lower
processing speed, and frequent interruptions. Acquisitions should be planned considering
scalability.
The possibility of the hiring of private companies to perform these services instead of
buying hardware may bring several advantages, as well as encouraging partnerships with
local ICT entrepreneurs, which will in turn support the development of local economies
in this most important sector, thus bringing new hopes.
Community Involvement:
There are several ways of involving communities in an ICT project. The case of a public
servants’ community at each country capital proves to be the least difficult. The users,
even those unfamiliar with the technology, will certainly feel integrated with an EGovernment initiative as they begin utilizing the new system, and they will most certainly
have better tools to do their jobs. Someone should appear to play the role of the
information champion who is able to communicate the message of modernization,
bringing hope and more opportunities for development.
29
Box 1: ALREADY EXISTING POSSIBILITY of USING VSATs in RWANDA:
In Rwanda there is the case of a telecommunications company (more details in the aidememoire) that has deployed over 200 VSATs with solar panels throughout the country,
that provided the concept of an interesting case-study. These VSATs are mostly used to
provide rural telephony, but the infrastructure is also able to provide Internet and data
services.
Certainly it will be much less expensive for the local governments to use a network as
clients of a private enterprise, instead of purchasing their own VSATs and maintaining
their own network with all the associated costs. The realization of the above-mentioned
possibility is simply a matter of starting to use a network that is already available. That
initiative can also be coupled with others and contribute to bridging the digital divide
within the region.
In Sierra Leone, the case should be one of the government calling and supporting the
private sector by providing the infrastructure, especially since the demand already exists.
It can be expected that with the stability already achieved and with the telecom market
growth, this can rapidly occur; at least once a good plan has been underway.
The private company Datatel was interviewed in this Mission and reported that they were
able to deploy VSATs with solar panels and a PC anywhere within Sierra Leone, and that
they had plans for this, all depending on the business case. Surely, other companies in
Africa would dispute the new market niche, either in Rwanda or Sierra Leone, and
competition should be opened and encouraged.
This possibility was field-tested during this Mission, as can be seen by the following
pictures:
30
Picture 7: Satellite communications company-network operation center, Kigali,
Rwanda.
Picture 8: VSAT out door unit in the district of Nyagasambu, Rwanda. The district
has no electricity, but there is a solar panel in the roof (not visible in this picture).
The VSAT indoor unit is located inside a small store and bar, having a pharmacy on
the side.
31
Picture 9: VSAT indoor unit. The cable seen on the far right was
connecting the indoor VSAT unit to the WB consultant' laptop for a test.
Picture 10: The author inserting settings in his laptop, which had been connected to
the indoor VSAT unit through the cable on the right going up the window.
32
Picture 11: Another view, WB’s consultant on the web and sending an email
to PRMPS at the World Bank in Washington, D.C. using his laptop, while
being observed from the window by the local children.
33
Picture 12: in detail, two phones from the Indoor Unit (people make phone calls
using prepaid cards) and a battery.
X.
CONCLUSION
The author observed that the use of ICT to support decentralization in Sierra Leone and
Rwanda has already begun. Although the level of ICT usage is still low, it should be
increased cautiously and responsibly, with optimism and without exaggeration, while at
the same time avoiding “techno-determinism,” i.e., ignoring the social aspects of
technology, and viewing ICT as if they would have autonomous powers to govern lives
and produce change. It is worthless to invest in ICT without addressing capacity building
or modifying human resource practices, since the application of ICT is dependent on an
organization’s structure and management.
Among the author’s suggestions and recommendations, the most important one is to have
a simpler financial management system at the local level that can produce information to
be recorded in a web-based IFMIS with an easy interface for local users, integrating
security and connectivity. To the readers not much familiar with ICT systems, it should
be said that does not mean that the same IFMIS being used in central governments to be
deployed in the local level, in Sierra Leone, Rwanda or other post-conflict/low-capacity
country, what wouldn’t be feasible and could translate into failure.
34
Spreadsheets at the local level that can be recognized by the national IFMIS and
translated into useful information for decision-makers would suffice for the purpose of
decentralization of financial management in the first phase. The usual hurdles with
regards to connectivity can be addressed with creativity and using “kiosk” points, Internet
cafes, and other points were the network is already present. The obstacles of electrical
supply can be tackled through the use of solar panels, generators and batteries, rugged
laptop computers or regular laptops and desktops systems.
Before going hog-wild spending limited resources and implementing an IFMIS at the
local level, the author recommends a pilot project to first test a web-based IFMIS that
receives information generated locally from a simpler financial management software
package, installed in stand-alone machines, while a network is built. Of course the goal
to pursue should be to have all local governments connected, but that can be done along
the way, according to the resources and the priorities. Looking on the bright side,
decentralization in Sierra Leone and Rwanda is in the process of consolidation. Thus, it
is an opportune time to begin to implement change, using ICT.
The use of ICT will not represent a magical solution for solving financial problems in
post-conflict/low-capacity countries, but can play a very important role and is considered
by this author as indispensable. For a number of years to come, local governments in
post-conflict/low-capacity countries are likely to continue to produce unrealistic budgets.
The results they achieve will indicate how successful their implementation of
decentralization of financial management systems was. In all these aspects, ICT can
support the decentralization process and facilitate initiatives aimed at achieving greater
transparency and reduced corruption in government and strengthening democracy in a
world with less poverty and more social justice.
Sequencing Matrix:
Attached is a matrix with suggested actions, divided as follows: a)Strategy, b)
Infrastructure, c) Implementation, broken down in time (immediate, shot-term, mediumterm and long-term).
35
ANNEX 1: RECOMMENDATIONS
1 – Technology Use:
1.1 - Support Technology Use but Avoid Undue Importance Placed
on Investments in Technology:
Sometimes, undue importance is placed on investments in technology, i.e., purchasing the
"latest and greatest" software and hardware. Likewise, the level of technological
sophistication of proposed solutions can exceed the needs and capabilities of local
government administrations to support and operate them, draining limited, badly-needed
funds and imposing high maintenance costs. The technical aspect required to establish a
decentralized financial management system can be challenging, but the human factor and
the process changes pose an even greater obstacle. The best or latest technology – and it
is always difficult to decide what the "best" technology is – does not automatically
translate into success.
1.2 - Simpler Financial Management Systems for Local Governments:
In smaller local governments, the level of activity and layers of management tend to be
simpler. Thus, the financial management system should reflect this simplicity. One of
the tendencies that should be avoided is applying a system that is more appropriately
suited for a central government's administration to a local level of government where in
most cases it would be overly complex. Information and Communication Technologies
are often seen as a universal panacea. In actuality, ICT is a means to support the
implementation of a decentralized financial management system; it is not the system
itself.
1.3- Consider the Use of Web-Based Application with Easy
Interfaces:
As mentioned before, web-based applications can bring economy and several other
advantages. The fact that there is no network to connect the local governments is a
hurdle, but there are ways to send and receive information. If connectivity is not
available, users can go to the nearest point where the network is present to access the
application, record data and access information.
2- Strategy:
2.1 - A National ICT Strategy Should Be Formulated at the Highest
Possible Level:
In post-conflict/low-capacity countries, a National ICT Strategy and policies related
should be formulated at the highest possible level. Coming directly from the Chief of
State is the ideal situation. There is a strong symbolism in the head of state figure if he
36
clearly demonstrates the importance he attributes to Information and Communication
Technologies.
2.2 - Telecom Sector Reform is Vital
Telecom sector reform is vital in post-conflict/low-capacity countries, to enhance sector
growth and provide adequate regulation and favorable environment for private investors.
It should be pursued as soon as stability is achieved.
2.3 - Look for an ICT CHAMPION in the Ministry of Finance and in
Each Local Government
The existence of a person to play the role of Information Champion at the Minister of
Finance should be pursued, in order to lead the ICT strategy and implementation. It is
also important to have information champions in the local governments. Capable and
honest leadership is an essential component of the process of creating or improving a
decentralized financial management system, and it will be most effective if backed by the
top executive office in the country.
2.4- An IFMIS Should be Used by the Entire Administration:
If investments are being made for the purchase of an IFMIS, it is advisable that all
Ministries use the same system, as is the current case of Rwanda with the SIBET. The
IFMIS rolling out schedule in Sierra Leone does not include all the Ministries yet, but all
of them should be integrated in the same system as soon as possible. The practice of
having Ministries that use different financial systems has proven to be considerably
inadequate.
3 –Cautions when Purchasing Software
3.1 - Consider the Risks of Purchasing Software before Hurdles Are Not
Addressed:
Buying software licenses, so that the local governments can use the central government
IFMIS at the Ministry of Finance, before investing in the whole requirements proves very
risky. There will be problems in connecting, accessing the applications, making
transactions, producing reports, etc, which turns the usually expensive copies that are
purchased useless.
3.2 - Consider the Risk of Having to Pay for Technological Updates even
before Using the System:
Let's imagine the case of software bought for the local governments before the
infrastructure is available. A year later if a technological and periodical update is
purchased from the software vendor and installed at the central government server, it can
become necessary to purchase updates for the local governments, but the local
government had never used the software first version!
37
4 - Invest in Wireless Applications:
Considering that it will still take years, even after telecom sector reform and the
privatization of the telephone monopoly, to have telecom infrastructure available in most
of the territory of post-conflict/low-capacity countries, wireless solutions are mostly
recommended, such as the use of VSATs. In Annex III, some advantages of VSATs are
listed:
5 - Start to Use ICT before the Districts are Integrated into the Electricity
Grid:
The reality of post-conflict/low-capacity contexts is that adequate power supply is still
many years away from being fulfilled. That being said, this should not be a reason to
prevent the implementation of a decentralized financial management system. Creative
and alternative means of providing power must be put into practice while the
infrastructure is being built or repaired. Most local government offices function only
during normal daytime office hours and can therefore take advantage of daylight to
illuminate work areas. Thus, the electricity needed to support ICT can be reduced to a
minimum and supplied by solar panels and generators. It is unrealistic to expect fast
progress in electricity generation, transmission, and distribution to users in postconflict/low capacity countries. It will take many more years to witness reliable power
made available. This is especially true of electricity in the whole countries of Sierra
Leone and Rwanda, as it is with the cases of many other developing countries. Evidence
has grown that the use of solar panels, VSATs, and wireless technologies can provide
good and affordable solutions.15
6- Establish Partnerships with Universities and Educational Institutions:
High priority should be given to the reconstruction and investments in higher learning
institutions. A success case in capacity building is the Kigali Institute of Science and
Technology (KIST) in Rwanda, at the present moment also training public employees in
the use of ICT, under a World Bank funded project.
7 - Charts of Accounts−Avoid Separate Charts of Accounts:
Having a single chart of accounts16 is on the interest of a post-conflict / low-capacity
country. An integrated financial management and accounting system may link budget
and accounting records, although this is not the best solution. Creating two separate
charts of accounts, one for budgeting and one for accounting, should be avoided.
15
The book “The Wireless Internet Opportunity for Developing Countries”, published by the Information
for Development Program (infoDev), the United Nations ICT Task Force, and the Wireless Internet
Institute (W2i), offers several case studies.
16
Chart of Accounts is the set of codes used to classify and record financial transactions in meaningful
ways. The codes enable to identify specific sources of funds, specify what that money may be used for,
and record the transactions related to that money. It facilitates financial reporting and controls how
financial transactions and balances are collected and stored in the system.
38
8 - Develop Measures Aiming Employee Retention:
Retaining employees in the government after they have been trained in ICT is a difficult
task that should be addressed as an on-going strategy. Once trained, the marketability of
a government employee becomes very high in post-conflict/low-capacity contexts, where
skilled labor force is not often found.
In fact, technology can actually become a problem if the adequate investments in
training, management, and methods are not made or are not tailored to the specific
requirements of the local government. This is frequently aggravated when key personnel
are not retained during the process of change, affecting the continuity and sustainability
of the financial management system.
9 - Consider the Possibility of Introducing Electronic Cards:
Once basic services are reestablished in a post-conflict/low-capacity country,
consequently there will be the critical need to pay people for services rendered, such as
school teachers. One excellent way to bring more transparency – even the very poor–
and avoid the political influence of political chiefs who act like they were “making a
favor” when paying employees or vendors, can be by providing people with cards, and
teaching how to use them at the nearest bank branch or bank’s kiosk. In Brazil, there is a
World Bank project underway, the Bolsa Familia Program17, and the eligible
beneficiaries are paid with these cards. Even in the more remote areas, like in the
Amazon region, people take a small river-boat ride (what can take several hours long) to
go to town and draw cash from a bank kiosk or inside the branch office at the cashier’s
desk. Of course this translates into developing trust in the national banking system18.
Before electronic cards are distributed in post-conflict/low capacity countries and more
bank branches are made available, the only way to pay employees or vendors that don’t
have a bank account will continue to be by giving them cash or bank checks. They will
have to cash these somewhere and somehow, and, unfortunately, probably will have to
pay a fee for the service. Worse than that, the money sometimes does not reach the final
destination and the beneficiaries.
10 – Assess the Infrastructure During the Preliminary Phases of the
Project:
Precious time and efforts can be wasted if the MOF systems do not communicate with the
National Bank, either due the absence of network or software problems. This should be
17
For more information: Brazil, Bolsa Familia Project Report, World Bank Report, www.worldbank.org
In many countries, the private bankers don’t want to open branches in small places; it is simply not
profitable. So, in some cases, the country’s government decides to deploy its own state-owned commercial
bank in those places. This is an option that is not recommended here, because in most cases state-owned
banks tend to be bad administered, get into political favors, offer loans without guarantees, and end up
insolvent and posing more weight in the national treasury and pubic finances.
18
39
addressed before rolling out an IFMIS. As an example, if the Bank of Sierra Leone’s
systems are already communicating with the new IFMIS to be rolled out in 2005 at the
Ministry of Finance and other ministries too, a school teacher, for example, in any Local
Council, who by chance has a banking account in any branch of any commercial bank in
the country, will be able to get his/her salary paid electronically. The file that will be
sent from the IFMIS can order that the salary (the payment) to be deposited in that
particular banking account, instead of having the teacher get paid in cash or in a bank
check to be deposited or cashed. On the contrary, if the systems “don’t’ talk” to each
other, there will be no way to modernize and work in a transparent way.
Also check the communications between the central government and the local
governments in the initial phases of any decentralization project involving the use of ICT
40
ANNEX 2.
Central Government Systems in Sierra Leone and Rwanda:
Sierra Leone:
In Sierra Leone, an evaluation of the existing financial management and accounting
system (FMAS) resulted in the decision for procurement in the ICT solutions
international market of an IFMIS. In October 2004, the process was concluded, and the
Canadian company FreeBalance, which has as clients the Government of Canada and
developing countries such as Kosovo, East Timor and Mongolia, won the bid to provide a
"turn-key" solution to the Minister of Finance which included hardware, software and
networking. The report on the existing system, sponsored by DFID19, and made by a
consulting firm for the Government of Sierra Leone considered the FMAS as inadequate
due to a number of reasons, some listed below:
•
•
•
•
•
Poor system design and lack critical functionality, controls, automated bank
recording, audit trails and system documentation
Lack of system data checks and controls
Poor response time
Limited ability to generate reports
Weak access security
Aside from these technical shortcomings it was reported during the Mission that a fraud
investigation had detected several financial transactions not recorded in the system. The
audit's commission report led to the subsequent placement in administrative leave at halfpay of a number of public employees who had been allegedly involved. The case is now
a matter of justice. Oral comments were made to this Mission that only two people
would have had knowledge of the system and the codes: the former Accountant General
and one consultant. Nonetheless, there wasn't sufficient appropriate documentation.
Rwanda:
In Rwanda, the central government uses a system named SIBET (System of Budget and
Treasury), an in-house product, developed using Visual Basic and Microsoft SQL Server
(more details in Annex 7). The SIBET is accessed by all the line ministries, the
provinces, and other government agencies through a network of leased lines20 provided
by Rwandatel, the local telephony monopoly that was soon to be privatized. The
19
International Management Consultants Ltd, Sierra Leone: Review of FMAS, Interim report, November
2003)
20
Leased line A communication channel contracted for exclusive use, also frequently referred to as a
private line
41
Government of Rwanda, in partnership with consultants, some of them expatriated
Russians, led by a Rwandan IT professional who spent part of his life in the USA, has
plans to implement new systems in the short term to have more information for
managerial tools. The new systems will eventually replace the SIBET and be named
Public Books and SmartGov. More details were not available to our Team. Being
another in-house development, an off-the-shelf solution, or some kind of partnership, the
fact is that Rwanda actually needs an Integrated Financial Management Information
System capable of processing data from the local governments, something that is not
possible at the present moment with the SIBET.
42
ANNEX 3 - Forces Driving or Influencing Financial Management Reform and
Decentralization
This writer has identified and listed several forces that drive or influence financial
management reform and decentralization that include: the government's interest, the
stakeholders' interest, and all forces resulting from technological changes and process.
Figure 1 illustrates these forces.
Fig.1: Forces Driving and Influencing Financial Management Reform and
Decentralization
It is important to understand the complex nature of the forces driving and influencing
financial management reform and decentralization and to furthermore research and study
their interactions, as shown in Figure 2 below. In addition, financial management and
decentralization efforts, as well as related investments, can be negatively affected by
political or social instability, by wars that may suddenly erupt, by cultures that resist
change or reform, and corruption.
43
Fig 2: Reform Interactions
The model for sound financial management reform and decentralization will vary
according to the Driving Forces (Figure 1), the interactions (Figure 2), and the
interdependency between central and local governments, the private sector, and
educational institutions (Figure 3).
44
Fig 3: Interdependency
45
ANNEX 4 - Possible Roadblocks:
The implementation of a decentralized financial management system in a local
government can become complicated due to a variety of potential roadblocks that are
common in post-conflict/low-capacity contexts. They are summarized below:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
21
Adequate electricity supply (if energy is ever available) and sufficient
Uninterrupted Power Supply (UPS) preparation for occasional or prolonged
interruptions of service
Adequate buildings and other types of physical structures that house and support
different kinds of equipment (hardware), that are supplied with water, sanitary
facilities, and air-conditioning (or at least ventilation), and that are engineered
against flood, heat, rain, animals, and insects
Protection against lightning in regions where this storms pose a problem during
the rain season
Effective protection against theft and vandalism
Network set-up
User training, systems maintenance, customizations, and innovations
Ample funds, especially after the grant or loan is fully spent
Access to remote regions and geographical aspects (swamps, mountains, deserts)
posing transportation and physical access difficulties
Local government geographical location in relationship with the country's capital–
the closer, the better for logistical purposes21
Regulatory authorities that may place barriers for implementation of projects
Legal framework where improvements may be politically dependent or used for
"give and take" strategies
Poor E-Leadership
Difficulties in reaching a mutual understanding between government agencies due
to political, tribal, religious, personal, or other kinds of rivalry
Private sector participation against incumbent telecom monopolies
Illiteracy or low-literacy, including lacking knowledge of English, against the
local language or dialect
Ability to keep trained people in the job positions
Difficulty in acquiring replacement parts and effective hardware maintenance
Distance from the central government is not a problem, for example, when using
VSATs (very small aperture terminals) for communications, but poses significant
logistical difficulties for supplies, parts, and travel related to technical maintenance and
instructors to teach local employees.
46
ANNEX 5 – Advantages of VSATs:
•
•
•
•
•
•
•
•
•
•
•
•
Ability to target small-dish audiences from space and meet specialized service
requirements
Applications that may include banking, LAN/WAN networking, Internet/intranet,
video conferencing, remote site networking, Voice over IP
End users with a 90 cm to 120 cm dish that can download Internet data 20 times
faster than PSTN (public switched telephone network)
The same wireless network that will connect the IFMIS user at the local level to
the applications for financial management and accountability that may also serve
the community center, medical clinic and health professionals, schools, and many
others.
In regions recovering from conflicts, wireless networks can serve as a fast
substitute for national telecom infrastructure
Copper-wire infrastructure is in many cases stolen and sold as raw material.
Wireless connections cannot be sold
National telecom infrastructure is usually poor or even not available for the
IFMIS
The most affordable and most rapidly deployable last-mile solution is wireless
broadband. Low investments in equipment can connect a very large area
The physical layer of fiber on the ground is anti-economical, and practically still
impossible in regions apart from the national capital
Existing infrastructures of fiber or copper can be integrated
Problems can be tracked more easily, facilitating repairs
It is much more difficult and expensive to lay new copper and fiber than to
replace a satellite antenna or correct a line of sight.
47
ANNEX 6 – New Unified Chart of Accounts, Sierra Leone
The Figure below shows the new chart of accounts22, with fifteen-digits code structure,
currently being implemented in Sierra Leone, an initiative done with support from the
World Bank and several other donors and stakeholders.
Fifteen-digits code structure
1st digit
- Type of transaction (Economic Classification)
1
Revenue
2
Recurrent Expenses
3
Development Expenses
4
Financing Inflow
5
Financing Outflow
6
Assets (Current & Fixed)
7
Liabilities
9
Cross Entries (Journals)
2nd, 3rd & 4th digits
- represent the Department code number
5th, 6th & 7th digits
- represent the Activity/Project code number
(formerly programme code)
8th and 9th digits
- Source of Funds
00
Consolidated Fund
01
Department Revenue
03
Road Fund
54
IDA
20
AfDB
30
EU
40
DfID
(it is possible to code receipts/payments in kind)
10th, 11th & 12th digits
- represent the Objects of Expenditure/Revenue
111
Basic Salaries
112
Grants
211
Local Travelling
241
Office and General Expenses
100-599 Recurrent Expenditure
22
Source: Sierra Leone’s PFM Unit presentation at the WB sponsored IFMIS workshop held in Nairobi,
Kenya, 11th November 2004
48
600-699 Capital Exp. on Physical Assets
700-799 Capital Transfers
800-999 Financing Items
(See detailed bridging table)
13th, 14th & 15th digits
- represents the Geographical location
HQO
Headquarter
SBO
Bo
NBO
Bombali
EKO
Kenema
WOO
Western Area
During this study (November 2004) the training has already started in Freetown for the
public employees who will use the new IFMIS.
49
ANNEX 7 – General Information about Visual Basic and Microsoft SQL
Server
Visual Basic (VB) is an object oriented programming language developed by Microsoft
based upon the BASIC language. (BASIC – Beginners’ All-purpose Symbolic Instruction
Code). It is a Windows-specific version of BASIC, and considered as a good language
for novices and occasional developers to learn as it is relatively straightforward to learn
and has numerous built-in tools to assist in debugging applications. VB is a programming
environment in which a programmer uses a graphical user interface to choose and modify
pre-selected sections of code written in the BASIC programming language.23 Since
Visual Basic is easy to learn and fast to write code with, it's sometimes used to prototype
an application that will later be written in a more difficult but efficient language. Visual
Basic is also widely used to write working programs.
Microsoft SQL Server is a "client/server" database. What this means is that the majority
of the work in processing data is actually done on the server, rather than on the user's
workstation. With a client/server database, such as SQL Server, the querying takes place
on the server machine, not the user's workstation. A database is a collection of
information that is organized so that it can easily be accessed, managed, and updated. In
one view, databases can be classified according to types of content: bibliographic, fulltext, numeric, and images. In computing, databases are sometimes classified according to
their organizational approach. The most prevalent approach is the relational database, a
tabular database in which data is defined so that it can be reorganized and accessed in a
number of different ways. An object-oriented programming database is one that is
congruent with the data defined in object classes and subclasses.
Computer databases typically contain aggregations of data records or files, such as
transactions and inventories. Typically, a database manager provides users the
capabilities of controlling read/write access, specifying report generation, and analyzing
usage.
SQL (Structured Query Language) is a standard language for making interactive queries
from and updating a database such as IBM's DB2, Microsoft's Access, and database
products from Oracle, Computer Associates and others.
In Sierra Leone, the company that won the bid for the IFMIS, FreeBalance, has left the
decision on the choice of database (Oracle or Microsoft SQL Server) to the Government,
since IFMIS can run off either database.
23
Because of its simplicity, BASIC has frequently been used in teaching the introductory concepts of
programming with a working language
50
ANNEX 8 – Paper Financial Reports in Rwanda:
The Team had access to some hand-written financial reports from the district of Kamonyi
in Rwanda. They were very well organized and reportedly sent every month to the
Ministry of Finance and the Ministry of Local Government. Still, once these reports are
delivered in Kigali, with stamps and signatures to confirm that they have been received,
the ideal would be for them to be processed in a computerized system and for the
subsequent storage of the information. While technology can support the efforts for
decentralization and while the IFMIS in the central government can provide decisionmaking information for the higher levels of government, it is vital that these reports be
actually studied and crosschecked at the Ministry of Finance.
Picture A-8-1: Financial Report, Kamonyi District, September 2004
51
ANNEX 9 – A Campaign to Support Decentralized Financial Management
and the Use of ICT:
It was reported in Sierra Leone by the United Nations Mission Radio’s Sierra Leone staff
that several campaigns had been continually broadcast to foster peace and reconciliation
and to restore or create trust in the local governments. Radio is the media that reaches the
majority of the population in post-conflict/low-capacity countries.
•
•
•
A national campaign to address modernization in the public service on radio and
also, where available, on television may serve as support to the decentralization
efforts, and also supporting the use of ICT in the local governments. Technology
can be made available, but public employees should be challenged to use them.
National figures, such as an athlete, a popular singer, or an actor, can act as a
supporter of new businesses in government.
Good leaders and politicians may bring more support and orient their
constituencies, especially in countries where the local culture still preserve old
values and tribal customs
When ICT are introduced in the people's daily lives and in their communities'
administrations, it is imperative that the public officials understand the value of them and
the difference they can make. All that will be involved is a process of change supported
by technology.
Picture A-9-1: Radios for sale on the city market
52
ANNEX 10 – A Donors’ and Stakeholders’ Information Web Site:
There is an attempt that should be made to solve the critical problem of addressing the
need of knowing the financial information from the side of donors and stakeholders in
post-conflict/low-capacity countries. If an agency or a development bank is donating
millions of dollars, it is perfectly justifiable for it to request information in a timely
manner as it is made available.
Establishing a secure web site where donors and stakeholders can log-in periodically to
check financial information from the governments over the Internet would solve this
problem. The “donors’ and stakeholders’ information web site” can be placed outside the
IFMIS firewall, to be feed everyday with information from transactions already
processed. At the end of each day, donors and stakeholders will be able to log in and get
a situation report tailored in accordance to what the IFMIS has been programmed to
deliver.
The web site would stay outside the firewall. Excluding the IFMIS firewall system, only
the authorized users (ministries, agencies, etc) are allowed and able to perform
transactions. The web site can also provide daily information from the local
governments, in a manner that will permit information to be compared, for example
cross-checking prices that were paid for the same goods and services in different districts.
Technically it is absolutely possible, but resistance can upspring. I mentioned above “at
the end of the day”, because if the access goes into the IFMIS and beyond the firewall,
reports will differ from each other depending on the time they are viewed and extracted.
For example, three ministers can meet and their staffers can bring to the discussion three
different reports because they were taken at different hours or even different minutes.
Donors and stakeholders can face the same situation.
Establishing a time to “ring the closing bell” like in the stock-market, process all the data,
and subsequently send the tailored report to the web site outside the IFMIS firewall
would provide the exact same report to all the stakeholders and donors. Once
implemented, this would bring several advantages. Donors and stakeholders would be
able to check everyday how the money is being spent, and would be able to do so without
interfering with the IFMIS. Providing donors with access to the IFMIS beyond its
firewall in a way that they might see information but not make transactions is also
technically possible, but riskier and probably unfeasible for political reasons.
Again, this idea would only work if the governments allow publishing information on the
web in a pre-agreed format, only allow it for the selected users (donors and stakeholders), and keep updating information in the web-server. Otherwise, if information is
not updated at least once a day, this may prove to be another useless web site.
Technologically speaking, it is possible and not difficult to implement if an IFMIS is
rolling.
53
Annex 11 – Internet Centers in Sierra Leone
In Sierra Leone, despite all the difficulties that the country faces – the poor infrastructure,
only limited degree of stability, and lack of a national ICT strategy – Internet centers can
already be found that use dial-up connections, like the one pictured below, in the city of
Bo. In the capital city, Freetown, there are many others.
Picture A-11-1: Internet center in Bo, Sierra Leone
54
Picture A-11-2: Internet center in Bo, Sierra Leone, inside view
Picture A-11-3: Internet and Business Center in Freetown, Sierra Leone
55
Annex 12 – Sequencing Matrix and Notes on Horizontal Cooperation
Matrix:
This writer has prepared a matrix that is split in three categories: Strategy, Infrastructure
and Implementation. It is suggested to the readers to always keep in mind a holistic
approach, and also that there are overlaps among the categories. Actually, they are
interdependent and the results will be more effective when broad actions are taken
coordinately.
Each matrix has a breakdown in periods: Immediate/Short Term, Medium Term and
Long Term. These periods should vary, according to the local conditions and the
implementation results. The matrix should serve only as a general approach to the issues
and actions to be taken, while other actions or needs should appear along the process that
were not listed here, despite the efforts to list all possible.
Horizontal Cooperation:
In post-conflict/low-capacity countries undergoing decentralization it can be very useful
to develop horizontal cooperation among the Local Governments. One District can
achieve results better and faster than others, thus the exchange of information and
cooperation between them should be encouraged and support the leverage in
advancement.
A good example of this cooperation can be found in Brazil, a country with more than
5,500 municipalities. Several associations, either being national or regional have been
established along the years and serve for purposes such as legal advising, ICT consulting,
defend municipal issues in Congress and least but not least, mutual cooperation. One of
the most important of them is the Confederação Nacional dos Municípios
(www.cnm.org.br), also offering links to other municipal association entities.
At the state level and specifically regarding the use of ICT in government administration,
there is the ABEP (www.abep.sp.gov.br), the Brazilian Association of State Information
Technology Agencies, having regular meetings (every other month and in a different
state) to discuss policies, common problems and achievements, and organizes an annual
national seminar. In 2002 was established the national E-Government awards, in several
categories, to encourage excellence and recognize successful projects and initiatives
using ICT in the public sector.
The Brazilian E-Government awards ceremony was inspired by the Canadian example,
one of the most successful countries in government on-line, and takes place in Brasília,
the country’s capital. Jurors are selected among distinguished representatives from the
government and private sectors, universities and NGOs, and according to the established
rules, select the best projects, and recognize talents.
56
In Canada, since 1992 they have in Ottawa, on the month of October, their technology in
Government Week -- the GTEC -- and officials from all over the country come to the
capital for a few days. The awards they receive serve as a compensation for their efforts,
and moreover, public recognition for what was accomplished. It is a multifaceted
learning and networking event for public sector IT professionals with showcases leading
edge expertise and technology solutions that are driving government online solutions
across Canada, and also around the world. Usually, they have the GTEC Week
Exhibition - a world-class showcase of IT products, services, and solutions featuring up
to 600 exhibits and demos of solutions for e-government, a Professional Development
Forum - a three-day conference and premier learning opportunity that attracts senior
speakers and delegates from around the world, and a Distinction Awards Program and
Gala - an elegant celebration of innovation and leadership within the IT public sector.
Despite that there is a long way to go in post-conflict/low-capacity countries, it should be
encouraged the creation of a national association. An annual seminar or conference
where local officials could present what they have been accomplishing would be very
important and useful as well.
57
Annex 13: Country Notes - Sierra Leone:
The heavy concentration of power and resources at Freetown are being incrementally
devolved to the local councils following a methodology where priorities are being
democratically attributed. Results are being constantly measured.
Telecommunications Sector−Infrastructure:
Sierra Leone's telecommunications infrastructure is very limited. As is usual to see in the
less developed countries, the number of mobile subscribers has largely surpassed the
fixed-lines subscribers, driven by entrepreneurial spirit aimed at a compressed demand,
and based on the prepaid business model that offers lower risks to the investors. Celtel
and Millicom represent a total of 150,000 subscribers in relation to 15,000 to 28,000
main lines (the number varied according to the source of information).
Government's support to the mobile telecom sector and to the regulatory scenario seems
to have been primarily driven in the post-conflict/low capacity context by the national
treasury needs to collect payments corresponding to the issued licenses and the private
companies' taxation of their revenues. Despite all risks, a few years ago private operators
took the chance to start their ventures and make them sustainable businesses. Despite
having faced challenges, they are expanding. Of course the stability brought by the
United Nations peacekeeping troops and the whole set of international assistance and
support significantly contributed. The country's economy restoration, even though very
small when compared to most of the nations in the world, supported the rapid increase of
the number of users.
The biggest player in Sierra Leone telecom market is CELTEL, totaling in October 2004
120,000 customers and being 99% prepaid, according to its chief financial officer. Celtel
is followed by Millicom, with 32,800 subscribers.
The rebel's civil war caused extensive destruction and damage to the telecommunications
infrastructure that belong to Sierratel. If it had not been caused by deliberated attacks or
vandalism, lack of maintenance and equipment updating ended up being an additional
problem. Instead of growing, the number of fixed lines was reduced. It can be assumed
today that, at the most, 15,000 lines are operational (source: interview with CELTEL's
chief executive officer in Freetown), despite Sierratel claims of 28,000, and the Ministry
of Transportation and Communications Permanent Secretary’s claims of 24,000 lines,
stated during the course of a conversation in its office. Sierratel is the state-owned
telecommunications operator and is regulated by the Ministry of Transportation and
Communications.
Investments were made through telephone exchanges in Freetown (manufacturer:
Alcatel) and in Bo (equipment manufacturer: Italtel), the capital and the second largest
city in the country, respectively. In the latter, the installation started in October 2003 and
finished in April 2004. However, the local distribution system and wiring that takes the
main lines and phone communication to the end users is still lacking in investments and
58
is in dire need of repairs. The services are very poor, complaints are common, and the
prices are very high.
This is further aggravated by the electricity supply problem with frequent interruptions.
During the Mission's visit to the Sierratel building in Freetown, one of the two 450 KVA
generators was on and had been operating for many hours. A lot of time and effort, not to
mention diesel oil spending, with the associated supply logistics is required to maintain
the already poor system, posing outrageous side costs to any company that is private or
government owned.
Celtel's board commented that one of their major causes of headaches comes from
supplying their stations (22) out of Freetown, a nightmare for any logistician. All the
stations are in need of generators, security guards, diesel oil refueling, constant vigilance
over oil reservoirs against theft, and vehicles that won’t break frequently due to the bad
road conditions, thus posing a logistical and an expensive ordeal.
Coming from a pre-war reality of already low teledensity, the post-conflict/low-capacity
scenario reveals that the telecommunications in Sierra Leone heavily rely on mobile
technology. The leading mobile operator - CELTEL - has service coverage serving most
of the capital city, Freetown, and is continuously investing in new stations in order to try
to stretch the network. One of the bottlenecks for this is the demand, that despite
growing is still below reasonable levels for building a (profitable) business case in the
rest of the territory.
Celtel's board demonstrated concerns over the creation of a universal fund, arguing that
some possible outcomes may be that their revenues might be taxed more, their money
could be deposited in the national treasury account and allegedly might not return for
investments in the sector. The government will need to build trust in the universal fund
initiative, as it will be building eventually in the legislation regulating the sector. One
good thing is to observe competition in the mobile sector, with Celtel and Milicom
deploying media campaigns to attract new customers or to switch them from the
adversary, each offering special plans and such. Celtel, for example, was advertising
during this Mission a new billing system: units rounded by the second. Both operators
rely on large masses of poor and prepaid clients, and they know how limited their
personal resources are, therefore every second counts.
Datatel GSM:
The company named Datatel GSM also received a GSM wireless license from the
Ministry of Transportation and Communications, allowing the construction of a wireless
network using GSM and CDMA technology (as advertised by Datatel), to provide
mobile, fixed, and wireless data services.
59
Wireless Internet Services:
Celtel's board revealed they had plans to enter the Internet service providing business and
the plans were held at the corporate headquarters in Europe. Their idea is to take
advantage of their own infrastructure–towers where the cell phone antennas and stations
are installed–and, using their own backbone, provide connectivity through hot spots and
selling that as a prepaid or post paid service to only the most reliable clients. Credit
history reporting agencies do not exist in Sierra Leone, and the country is still only a cash
economy. Their plans to become an Internet Service Provider include investing in a
modern data center and becoming able to offer domain registrations, email addresses,
broadband speed, and the latest technologies. Reportedly, the equipment was bought to
start with the new business unit, but the top managers decided to wait for a clearer
scenario, especially regarding the regulatory issues.
VSATs, VoIP:
Mobile communications are predominant while business niches of VSATs and VoIP are
being explored, particularly in Freetown. Two Internet cafes were visited in the capital,
offering international phone calls at the equivalent of 50 USD cents per minute. Most of
the customers might not know nor realize, but the calls were made using VoIP. Most
definitely, they are making good profit, and the places are always full of customers. They
had their own VSATs while they were using Sierratel as the country gateway to reach the
US Internet backbone. In Bo this Mission visited three Internet cafes. All were using
dial-up connections and had customers who were checking their e-mails, surfing the web
(at low speed of course), or simply writing a document or preparing a spreadsheet using
Microsoft Word or Excel. Despite prices being much higher as compared to the western
and developed nations, the VoIP at the Internet cafes were at least half the price of what
Sierratel would charge.
Commercial banks in Sierra Leone have their own networks, and in each branch a VSAT
can be seen. All offer instant transfers through MoneyGram, for example. They may offer
ATM cards to their clients, but are not yet associated with any company like Visa or
Mastercard by means that a person would be able to withdraw money from a banking
account anywhere in the world if affiliated to the system. They may soon reach that
point, though this would not only depend only on technology.
Internet Service Sector:
This important sector in the information age is still incipient. The primary service
providers are Sierratel and Datatel, and the latter seems to be better equipped. However,
the majority of government, business, personal, and research web sites are not registered
as SL domains.
60
Whether being a political, administrative, or technical problem, or a combination of the
three, the fact remains that a business or an individual in Sierra Leone cannot obtain a dot
SL (.SL) address on the web. It is practically impossible at the moment. Usually what
people and businesses are doing is to register a dot com slash SL address (. com/SL), in a
service provider out of the country, frequently in the USA or Europe. The adverse
consequences of that reality are manifold. These start with the absence of a national
identity on the Internet (fr for France, be for Belgium, br for Brazil, ca for Canada, rw for
Rwanda), the transference of businesses and opportunities to the already most
empowered countries, and the demand for building capacity to provide those needs not
being satisfied.
The same applies to e-mail addresses. Mostly all of the people that were met during the
Mission had a business card with an e-mail and were acquainted with using this
contemporary facilitating communications tool, but the e-mail server was located
elsewhere on the web, that is, not in their country. Most of them had a Yahoo or Hotmail
e-mail address. Again, this lack of basic infrastructure, such as availability of e-mail
services provided to the population and the shortage of people that are willing to pay for
them translates into the loss of many businesses, opportunities, and jobs that could be
created.
Electricity is not the main cause for blame for those services not being provided. The
combination of absent sound telecom policies for many years, compounded by the war
consequences, has led to this situation that constrains the sector development. Still, the
sector grows and tens of "communication centers" where people can make their calls can
be seen all over Freetown, basically consisting of a small place with one or two landlines.
Whoever is financially able, buys his/her own portable radio and cell phone. An
academic research would determine, for example, the percentage of consumers that use
their cell phones most of the time as pagers that I expect would be high. This was the
mission’s rented-SUV driver's case, for example. He had his own cell phone–a second
hand purchase–, which he wasn't able to charge frequently with airtime. But since calls
received aren't charged in the local mobile industry business model, he had his phone on.
And whenever some little money is available, he would buy a prepaid card and charge the
phone again to be able to make calls..
Policy and Regulatory Environment:
There is not an adequate legal framework governing the telecom sector in Sierra Leone,
and reportedly the only law about this important sector dates back to the year of 1910.
According to the Minister of Telecommunications Permanent Secretary, a bill is ready
and under study at their legal department, and is in the final phase before its submission
to Parliament. The new legislation would update concepts and create a regulatory body
and a universal fund for sector development in the country's remote regions. In the
meantime, the Minister of Transportation and Communications is the interim regulatory
authority.
61
During a meeting at the Ministry, some questions were left unanswered, such as the
number of VSAT licenses issued, the number of FM radios, and Internet cafes, for
example. The permanent secretary stated that the "...ITU (International
Telecommunications Union, from Geneva) will be coming here soon to bring technical
support and equipment for us to build the database."
When asked about plans pertaining to VoIP regulatory issues, the government official
stated that the price for a license to commercially explore voice-over IP is $ 20,000 USD
per year, but did not directly address the issue. With the legislation yet to come, the
regulatory power is at the moment concentrated in the person of the Minister of
Communications, and decisions are made based on criteria that apparently neglect
technical and regulatory functions and that are surrounded by the national treasury on
cash need basis.
Sierra Leone should have a comprehensive legislation and corresponding enforcement, a
telecom legislation with defined policy objectives, and essential rules governing
substantive regulatory issues like licensing, interconnection. Additionally, a clear
separation of responsibilities for operation, policymaking, and regulation for the sector
should be provided.
Otherwise, the legal framework will always be too inadequate to support the sector's
liberalization, which is a key strategy for telecom sector reform and is essential in order
to support other aspects of the economy and the country's modernization which includes
decentralized financial management. Even so, the sector is still growing, as pointed by
Celtel's CEO. Most definitely the demand of main lines is huge as well, especially
considering the concentration of people in Freetown, and the number of households. The
sector has only one way to go, and it is up.
This is true for the greater amount of operators interested in the market, such as is the
case of Datatel, mentioned above. The near future will tell if allocation of frequencies in
the spectrum will become a problem. Up to the present moment, it hasn't occurred.
Interconnection problems already do exist, as commented by Celtel, in its relationship
with Sierratel. The estimated debt of several millions of dollars (the precise number was
not available) is probably growing. On the Sierratel side, officials argued that the
government, their very own stakeholder, is also their main debtor. Just as the national
treasury isn't able to provide funds for all the line ministries and other state entities to be
able to pay them, it is impossible to pay Celtel.
A solution that has already been tried with success in some countries takes the form of a
legal agreement in which Celtel, instead of paying taxes to the national treasury, would
be allowed to account for the taxes as paid. The Sierratel's debt would diminish in an
equivalent amount with approval from the national treasury. This agreement seems
impossible to reach, however, due to fierce resistance and the huge amounts of cash
needed by the government treasury. This adverse combination makes Sierratel's
privatization a difficult goal (though certainly not impossible) to achieve, because even if
62
an investor shows up and the government wants to give it away, there are so many
liabilities that decisions might be cancelled or delayed.
The telecom monopoly has 2,000 employees for only 15,000 to 28,000 lines. Their
salaries may be low, but to have a job in Sierra Leone is a privilege that only a select few
enjoy. Whoever has a job in Sierratel has some sort of political connection, which makes
the situation more complicated. The only feasible way to privatize Sierratel is in a
scenario of adequate policies and sound regulation.
There is worldwide evidence that well-conducted telecom sector privatization is essential
for the sector growth. Hopefully Sierra Leone will experience this sector growth soon.
The bright side is also very clear: there will be support for reforms that will provide better
and more affordable services, wider access, and market expansion. There is also a
growing critical mass in regards to the issues of privatization, regulatory bodies, and
citizens who are already using recent technologies as voice over IP (the regulation being
only the license that was paid by the service provider)
Sierratel Billing System:
Sierratel's ability to generate revenues for expansion is compromised by the absence or
lack of use of a modern billing system. Reportedly, a few years ago a good billing system
was purchased, but either due to lack of technical support or to a deliberated choice, the
system is not being used. The outcome is a lengthy process to collect the bills. In Bo, for
example, this Mission was able to obtain a copy of the billing printout. The local
computer produces the report in digital numbers and the paperwork is sent to Freetown
when a reliable person (like a messenger) is available, due to the absence of mail
services. Upon arrival in Freetown, there is a manual data entry effort (and it is common
to add errors in these operations), followed by Bo's telephone bills printout.
Then, the printed bills are sent back to Bo when a reliable messenger is once again
available. Upon delivery in Bo the bills are delivered to the customers, and the payment
process starts, with customers not paying in the bank, but rather, in Sierratel's local
office. Finally, once a week, payments made in cash are deposited in a bank account at a
local branch and the money is transferred to Sierratel's account. This can be a nightmare
for any financial officer, and meanwhile, the process takes much longer than it should.
Reportedly, some private investors have already conducted audits in the financial,
technical, and human resources spheres in Sierratel to evaluate their liabilities and
potential. Unfortunately the first attempt at privatization wasn't successful. It is stressed
here the need for sound regulatory policies in Sierra Leone along with the political will to
privatize Sierratel.
63
Postal Services:
Postal services and mail centers are being employed in some countries as services'
centers, offering, for example, Internet access, payment of bills, and money transfers, to
cite only a few. This Mission was informed that the mail service in Sierra Leone is below
standards and practically does not exist outside of Freetown. On the contrary, in the small
town of Moyamba there was a DHL local office, and the UN military observers in the
area said the service was good and reliable and often used by them.
Needless to say, an efficient and reliable postal service is an essential part of any country
infrastructure, Sierra Leone needs a good and reliable postal service, which could also
serve other purposes other than satisfying the basic one of delivering correspondence.
This Mission visited the small Council of Mattru Jong in Sierra Leone that had no
telephone, no electricity, and no mail service. The only way to ask for help in a medical
emergency or to send a routine correspondence is to rely on whoever passes by the
location or to rely on sending a messenger. This makes the development process much
harder, especially when planning to achieve financial management at the local level and
to report it to the central level to donors or international organizations.
United Nations Military Observers Post:
The Mission visited the UN military observers' post in Moyamba, the senior officer being
a Swedish Army Lt Colonel in charge of a quite large geographical area and having the
responsibility of overseeing the activities of 10 officers from UK, Croatia, Pakistan,
Ghana and other nationalities. The UNDPKO’s (United Nations PeaceKeeping
Operations Department) equipment is impressive.
The military is provided with multiple 20-feet containers as offices, all of which are air
conditioned, have a satellite dish outside, have computers and printers in a local area
network, and which possess radio and telephone systems. They have reliable radio,
phone, and Internet communications. The military was very well equipped, with their
own water purification system, electricity generator, and a helicopter pad nearby.
The above mentioned equipment was made available by the UN for the military mission
only, unless there were emergencies or other justifiable urgent needs. And when the
observers move, the equipment does too. An installation like that would overly satisfy the
needs for local governments, but they cannot be borrowed from the UN nor considered
available.
Local Council's Radios:
The majority of the local councils have been equipped by UNDP with a package of
Australian high frequency (HF) CODAN radios, desktop computers, one printer, portable
batteries and a voltage stabilizer, as was observed in Bo
64
UUPlus(r) Email For HF Software:
The Councils have received from the UNDP a package of radios and desktops. The radio
has an interface with the computer, and the set comes with a software for email that is
named "Codan UUPlus Email for HF Software", advertised by the solution provider as "a
simple and reliable solution for sending email over HF (High Frequency) from remote
areas". In Bo, its interface was operating in the Windows platform. Reportedly, it is
compatible with any email client application that uses Internet protocols POP3 and
SMTP, such as Outlook Express, Eudora, Netscape.
It should be able to provide HF email for the local users, but hadn’t been operating for
almost a year, as the local council employees informed this Mission. The HF radio for
voice communications was being used. Technical support was asked for in Freetown to
the Ministry of Local Government but allegedly did not come. The Council Chairman
informed that when he needed to send an email, his secretary would go to the Internet
café nearby, and also check his incoming emails.
Fiber Optics in Freetown:
Reportedly, a duct for fiber optics deployment has already been established in Freetown
with support from the UK government, which can bring rapid connectivity growth, and
which can converge wireless connections in the near future.
The ideal would be to have all the Government buildings use the same fiber optics in a
kind of optical ring, allowing both larger bandwidths24 and fast connections.
Schooling in Sierra Leone:
Lack of schooling and higher education should not be a problem for decentralization in
Sierra Leone, because enough people are available in the local councils to start who
possess reasonable knowledge of basic accounting and treasury. Illiteracy may still be
high among the whole population, but there seems to exist a sufficiently literate labor
force to support decentralization. In Freetown, chartered accountants are needed. It also
seems that there are a growing number of them, either in the country or expatriated
abroad, some of which are willing to return to the mother-land if possibilities arise. This
demonstrates that there is light at the end of the tunnel. All these people are either
knowledgeable in how to use a PC, or are eager to learn.
24
Bandwidth: The amount of data that can pass through a transmission medium
65
University of Sierra Leone, Fourah Bay College:
Located on the top of a mountain with good views of Freetown and of the bay, the
institution is unfortunately in bad shape, and some of the buildings are in desperate need
of repairs. Against all odds, professors, instructors, and staff struggle to keep the
institution running and to keep teaching young students.
The University Dean mentioned plans for a knowledge network, but lacked funds to pay
for the VSAT connection fee. They also had plans to have a computer science
department as part of the School of Engineering.
An institution like USL should be taken into consideration in any plan designed to
develop capacity, as is also the case of the Kigali Institute of Science and Technology in
Rwanda.
Another possibility for Sierra Leone can be found in the UNDP / CISCO Networking
Academy, a strategic partnership with Cisco systems and other organizations to establish
facilities in Least Developed Countries in order to provide network technology skills and
training facilities to prepare students for the 21st century workplace. According to
information published at the UNDP web site, CISCO Networking academies have now
been established in nineteen African countries: Angola, Benin, Burkina Faso, Cameroon,
Central African Republic, Chad, Cote d'Ivoire, Democratic Republic of Congo, Djibouti,
Eritrea, Ethiopia, Gambia, Ghana, Guinea, Kenya, Lesotho, Madagascar, Malawi, Mali,
Mauritania, Mozambique, Niger, Nigeria, Rwanda, Swaziland, Tanzania, Togo, Uganda,
and Zambia. Fifteen of these nations are in partnership with UNDP Africa.
(http://www.undp.org/rba/ict4dev.html)
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Annex 14 – Country Notes – Rwanda:
The national strategy document, “Vision 2020”, states:
“In 1998-1999, the Office of the President of the Republic of Rwanda,
launched national reflection sessions on the future of Rwanda in Village
Urugwiro. After extensive consultations, the Government of National Unity
drafted a document called VISION 2020, … presented to a large cross-section
of Rwandan society, by whom it was amended and validated…in which a longterm development path for Rwanda is outlined and ambitious goals to be
reached by the year 2020 are formulated. VISION 2020 is a framework for
Rwanda’s development, presenting the key priorities and providing Rwandans
with a guiding tool for the future.” (Donald KABERUKA, Minister for
Finance and Economic Planning, July 2000)
The “Vision 2020” is an excellent example of a strategy document that should be
elaborated on all post-conflict/low-capacity countries aiming to move towards a better
future. Six priority pillars were identified in Rwanda. Good governance is the topic of
the first pillar, and the other five pillars are interdependent. On the top of the
development process, they placed their major asset: the people. Science, technology,
education, and ICT skills were all taken as priorities, particularly for the Rwandans due
the fact that their country is landlocked, and because they want to move from a
subsistence agricultural country to a knowledge-based society. The six pillars are:
•
Good governance and a capable state
•
Human resource development and a knowledge-based economy
•
Private sector-led development
•
Infrastructure development
•
Productive high value and market oriented agriculture
•
Regional and international integration
Three crosscutting issues were listed: a) Gender Equality; b) Natural Resources and the
Environment; and c) Science, Technology, and ICT.
In the chapter of the governance pillar, it is asserted:
“The State will ensure good governance, which can be understood as accountability,
transparency and efficiency in deploying scarce resources. But it also means a State
respectful of democratic structures and processes and committed to the rule of law and
67
the protection human rights in particular. People’s participation at the grassroots level
will be promoted through the decentralisation process, whereby local communities will
be empowered in the decision making process, enabling them to address the issues, which
affect them, the most.”
As it can be seen, in the national strategy document, good governance is recognized as a
pillar, and the vital commitment for the decentralization process and empowerment of
communities is made. From the crosscutting issues, it is quoted below:
“Rwandans are rightly proud of their cultural roots… However, for this development
process to be a success, Rwanda must embrace the future and exploit innovations in
Science and technology to complement its cultural strengths…There is a need to
generate, disseminate and acquire scientific skills as well as technological innovations, in
addition to integrating them into the social and economic development drive… In order
for Rwanda to achieve this objective, it will have to develop the teaching of science and
technology at secondary and university levels. It will facilitate the creation of high and
intermediate technology enterprises and develop access to ICT down to the
administrative sector level, in accordance with the national ICT plan.”
A national ICT plan adequately inserted in the national strategy is essential for the
development process. Rwanda offers a very interesting case of leadership, vision,
strategy and implementation that is supported by several donors and organizations.
Telecommunications sector:
Rwandatel:
During this Mission in October/2004, an evaluation committee was checking offers for
the privatization of Rwandatell, the telephone monopoly. The envelopes had been
opened in October 25. Among the reasons for the privatization are the urgent needs for
investments in Rwandatel, which has only 18,500 main lines for a population of 8 million
people, and around 300 employees, being one of the lowest employment rates in the
telecommunications industry in Africa. Sierratel, for example, reportedly has 2,000 for
only 15,000 lines, making its privatization much more difficult than that of Rwandatel. It
is expected that an investor with financial resources will be able to grow the number of
main lines in the country, still very low.”
The “Vision 2020” stated in the year 2000:
“The Government of Rwanda will not be involved in providing services and products that
can be delivered more efficiently by the private sector. It is, therefore, committed towards
a comprehensive privatisation policy that will help reduce costs and prices and widen
consumer choice. The State will only act as a catalyst ; ensuring that infrastructure,
human resources and legal frameworks are geared towards stimulating economic activity
and private investment.”
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MTN–Rwandacell:
The only mobile operator in Rwanda, MTN – Rwandacell, is a joint venture between
Rwandatel and MTN International, the latter owned by the MTN Holdings (part of the
M-Cell Group from South Africa). MTN International has 40% of the stocks of MTN –
Rwandacell. In Rwanda there are 120,000 subscribers being 97% prepaid, according to
its Chief Operating Officer, who also stated that Rwandatel’s participation in MTN –
Rwandacell was transferred to the government prior the privatization of Rwandatel. This
is explicable because the privatization model of Rwandatel includes a mobile operator
license, so the new owner will be competing with MTN – Rwandacell in the near future.
ARTEL Communications (www.artel.rw):
This company was launched in October 2002, introducing VSAT services in the rural
areas, bringing to people in the villages the possibility of connecting to the world. Artel
entered into a technological partnership with Gilat Satellite Networks from Israel (www.
Gilat.com), and has already deployed more than 200 VSATs across Rwand, with
interconnections with Rwandatel and MTN – Rwandacell. As informed by Artel’s CEO,
international calls originated in the VSATs go through Rwandatell. Users buy in the
local units (groceries stores, community centers, etc) prepaid cards to make their calls.
Their units can support up to six telephones connected to them. They also can support an
Ethernet port for PC Internet access, and installing a hub, a LAN can be established.
Connections are offered from 64 Kbps to 90 Kbps. Where power supply is stable, the
national electricity grid is used. Users can call from VSAT to VSAT, VSAT to MTNRwandacell cell phones, to the land lines in Rwanda and to the rest of the world through
Rwandatel. The system uses the C-Band.
Points to reflect:
Some very interesting points for post-conflict / low-capacity countries should be
commented over the Artel’s case:
•
The relationship with the entrepreneurial spirit and the national strategy in Vision
2020. For sure a company like that wouldn’t be successfully growing without
sound policies and adequate investment scenario
•
The number of Artel’s customers in the rural areas is not being considered when
assessing Rwanda’s tele-density, but the people are using their infrastructure to
communicate, and access is being provided. I believe a study on Artel’s impact
on Rwanda’s tele-density would provide valuable benchmarks for international
development professionals. If Artel’s units had been accounted in a study,
considering the whole amount of average users of each unit in the rural areas, the
tele-density indicator in Rwanda would be higher.
69
•
The current business model is heavily concentrated in voice telephony, most
certainly a basic need. However, the same network can be immediately used for
Internet and data services. A network with the same concept is ideal for
providing connectivity to support decentralized financial management in the
districts, where electricity and telecommunications are still are lacking.
•
A network like the one provided by Artel in Rwanda may also serve a large
number of purposes and projects: voice telephony (already in use), decentralized
financial management, tele-centers, internet cafes, police stations, or local clinics.
•
A strategic choice that a country should make is whether investing scarce funds
for buying equipment and having its own VSAT network, or encouraging private
investors to build one, and become their clients, where the demand will be shared
with the community, and sustainability and technological evolution will be easier
to achieve and update.
Workshops:
In the same week that a 5 days-long multi-regulatory workshop was taking place, part of
a joint program with the National Association of Regulatory Utility Commissioners
(NARUC) was there. NARUC (www.naruc.org) is a US non-profit organization with the
Mission to serve the public interest by improving the quality and effectiveness of public
utility regulation, and is composed by member agencies regulating the activities of
telecommunications, energy, and water utilities. Another two days-long workshop was
scheduled to occur at Kigali in November 2004: “The World Information Technology
and Services Alliance (WITSA) Rwanda Workshop, having the Rwandan Minister of
Energy and Communications for the opening remarks. WITSA (www.witsa.org) is a
consortium of 65 information technology (IT) industry associations from economies
around the world. Several issues would be discussed, such as:
•
ICT industry in Rwanda – private, education and public sector perspectives
•
ICT regulatory interventions for sector growth
•
ICT4D – donor interventions
•
ICT4D – role of Rwanda private sector
•
ICT4D – infrastructure challenges
As it can be noticed in Rwanda, the Information and Communication Technologies, as
well as regulatory aspects related, have been receiving attention and investments. The
President of the country himself launched the first phase of the ICT-led Integrated SocioEconomic Development Policy and Plan for the period 2001-2005. The policy aims to
70
make Rwanda an information-rich, knowledge-based economy by the year 2020. Four
five-year plans have been drawn-up to enable Rwanda achieve this objective, under the
direction of the Rwanda Information Technology Authority (RITA).
ICT-led Integrated Socio-Economic Plan:
The first five-year phase of implementation of the ICT-led Integrated Socio-Economic
Development Policy and Plan focus on making Rwanda an IT literate nation by
promoting the deployment and use of ICT's, improving ICT infrastructure and
transforming the educational system using ICT. According to records available in the
government’s official web site, in his address at the launch the President reiterated the
Rwanda Government's commitment to transforming the country using ICT as a tool to
realize national development. He added that ICT is revolutionizing economies and the
living conditions of people around the globe. "There is no doubt that competitive
advantage between nations is mainly determined by the way a country can develop,
obtain, and apply scientific and technological information," President Paul Kagame said.
"The deployment, exploitation and development of ICT to support the socio-economic
development of Rwanda is not a matter of choice but that of necessity," he emphasized
and also saying that the new demarcation line between the rich and poor nations is clear.
"It can be no accident that there is today no wealthy, developed country that is
information poor, and for that matter no information rich country that is poor and
underdeveloped."
President Kagame called upon all stakeholders:
"The Government of Rwanda, civil society and the private sector have all to play
their part in ensuring the success of this endeavor. However, there has to be
harmonization of policies to overcome certain constraints, such as in energy,
education and training, access to telephone services so as to improve accessibility
to information technologies,"
He also challenged Government officials and RITA to work more aggressively to ensure
that the policy and plan, which are running behind schedule, are implemented within the
time frame, because ineffective communication and inefficiency posed the greatest threat
to successful implementation of policies. The ICT-led Integrated Socio-Economic
Development Policy and Plan is supported by the Economic Commission for Africa
(ECA), within the framework of the Africa Information Society Initiative.
Political Support from the Highest Office:
In post-conflict/low-capacity countries, ICT policies should be formulated at the highest
possible level. Coming directly from the President is the ideal situation. A country’s
leader will always have so much to worry about in order to address and solve his
nation’s problems, but the mission can be delegated to a trustable and well-chosen
person, while providing continued political support, funding, and staff. There is a strong
71
symbolism in the presidential figure if he clearly demonstrates the importance he
attributes to Information and Communication Technologies.
The interest for ICT can be explained by a number of factors, such as age, knowledge of
technology and personal preferences. Leaders may prefer to invest in roads, build dams
and airports, and those without familiarity and interest for ICT may neglect these
important tools for development, leaving them in a secondary place. Worse than that, is
to leave a vacuum in a government administration, in such a way that several Ministries
and other agencies will dispute ICT coordination and leadership, or simply it will be lost
among the bureaucracy, and several possibilities for cooperation and scale economy can
be lost.
A good example is the fact that in Rwanda the Government has encouraged liberalization
and competition, but also cooperation among the Internet Service Providers: they can
have their own gateways, but are all sharing the same Internet Exchange Point, situated
at Rwandatel.
In Rwanda, the President has been placed as the National ICT Champion and chairs the
National Information Technology Authority (NITC), set up as a high-powered ICT
Policy Think-Tank with the mission of leading the process of creating the Rwandan
information society and economy in line with the aspirations of the Vision for Rwanda.
The NITC is responsible for advising the Government on all matters relating to how best
Rwanda can formulate, develop, and implement its ICT policies, strategies and plans to
accelerate the process of transforming Rwanda into an information-rich, knowledgebased society and economy. NITC other members are the President of the National
Assembly, the Prime Minister, and a number of other senior Cabinet Ministers from key
Ministries and distinguished representatives from the Private Sector, Academia, Civil
Society, and Labor Organizations.
The Rwanda Information Technology Authority (RITA):
The Rwandan Information Technology Authority (RITA) was set up as a statutory and
autonomous National Agency to act as the National ICT Implementation and
Coordination Body under the direct supervision of the National Information Technology
Commission (NITC). RITA acts as the Secretariat of the NITC and has an administrative
link and working relation with to the Office of the President, the Prime Minister’s Office
and the Ministry of Transport and Communications --- as its sponsoring Ministry. RITA
reports to the NITC through its Executive Management Committee
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The RITA Executive Management Committee:
The RITA Executive Management Committee will assist the Executive Director in the
proper management of the affairs of RITA. It will, under the direction of the NITC
formulate and decide on organizational policies, strategies and procedures as well as play
an advisory role in matters relating to: the general administration of the organization, and
on financial, budgetary, personnel ,and recruitment matters. The Committee in addition
will from time to time be assigned special roles and responsibilities by the NITC. This
Committee will in effect provide the link between RITA and the NITC. Its membership
will be made up of:
•
Executive Director
•
The Four Directors
•
A Representative from the NITC
•
A Representative from the President’s Office
•
A Representative from the Prime Minister’s Office
•
A Representative from MINITRACO
Rwanda Information Technology Authority –RITA:
In 2000, the Rwanda’s cabinet ICT Policy Plan recommended the creation of the agency,
for coordinating and implementing the ICT plan and other initiatives. RITA was created
by a law in Parliament, and is affiliated with the Ministry of Infrastructure (Energy and
Communications), and is headed by a chief executive officer, appointed by presidential
decree for a four years term. The incumbent is Mr. Juma Okech, a dual-national (Kenyan
and Rwandan), and under his leadership RITA has contributed to the growth of Internet
users, estimated to be above 100,000. On 2005, RITA will become the Internet top level
domains administration, which is today with the Universite Nationale du Rwanda, in
cooperation with Interpoint SARL –Switzerland (source: Interview with Mr. Juma
Okech, RITA’s CEO and information available at the International Assigned Numbers
Authority – www.iana.org)
The reason for the cooperation with Switzerland is historically related with the issue of
stability and other factors as technical and managerial capacity. RITA has received
supports from several donors, equipment has been bought, and installed, people have
been trained. According to RITA’s CEO, the number of Internet users in Rwanda also
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grew due to campaigns to promote publicity and awareness, and because there are more
players in the market: more competition, more cyber-cafes, and tele-centers.
Higher Learning Institutions:
The importance of higher learning institutions in post-conflict-low-capacity countries
should never be neglected. While in Sierra Leone the Fourath Bay College is
resurrecting from the ashes. In Rwanda there are several colleges, universities, and
institutes producing human resources and building capacity. Related to ICT, it must be
cited in this study the National University of Rwanda and the Kigali Institute of Science,
Technology, and Management (www.kist.ac.rw).
The Kigali Institute of Science, Technology, and Management (KIST) is a public
technological institute. It came into existence as a UNDP project on November 1st,
1997 with a mandate to produce technical, scientific, administrative, and managerial
expertise. KIST opened in 1998 with degree programs in engineering and management.
English study is mandatory. The establishment of KIST was part of Rwandan
Government's vision to build a human resources base. Its establishment was made
possible by the combined efforts of the Government of Rwanda, UNDP (Rwanda) as the
executor of the project, and the German Agency for Technical Co-operation (GTZ) as
the implementing agency. The initial funding for starting the Institute came from a
UNDP core funding and a UNDP Trust Fund obtained from contributions by the
Governments of Japan and the Netherlands. KIST's establishment as an institute of
science, technology, and management has been part of this ongoing rebuilding effort.
The National University of Rwanda (www.nur.ac.rw) was created in 1963, and was
badly damaged during the 1994 Genocide. Professors, staff, and students were killed.
Laboratories and computers were destroyed or taken away, and NUR was closed,
opening again in April 1995. NUR hosts at its computing center the CISCO Networking
Academy Program, and Rwanda was the first among the sub-Saharan countries to
become a regional academy in partnership with CISCO.
Auditor General:
During the course of a meeting with the Auditor General, the first woman in Rwanda to
hold that office in the country, spoke about the common difficulty of the amount of work
of the staff, and that the whole auditing process is made over the paperwork they receive.
The office was equipped with a 64kbps connection, but only few computers in one room
were on the network. Most of the other rooms had desktops and lap-tops, but standing
alone. It was Interesting to notice that the computers were on but all the lamps were off,
which it was observed was typical in all the government buildings. Actually it looks like
a good plan for facing the shortage in power supply, and it is followed with discipline.
Maximum advantage is taken from the natural day light in order to save electricity.
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The office had no access to the SIBET system. The new system yet to come,
“Smartgov”, should also provide access to the Auditor General Office, which would
support its important role. It was observed at the occasion that at least 20 young men
and women were being trained in a room, each one in front of a PC.
Ministry of Finance:
The ICT division manager, in charge of SIBET and the network shared elementary
information about the SIBET system, and a copy of its user’s manual. A quick visit was
allowed into their data center, where a Compaq ProLiant 6000 workgroup server was
installed. The air conditioning was operating normally. The room hasn’t been
adequately protected against fire yet. Asked about contingency resources and disk
storage units, the official informed these are major concerns, but still lacking funds to
address them. On the SIBET issue, it was reported that the system had at that time
around 100 users, i.e., all the ministries, the provinces and the semi-autonomous
government bodies or entities.
It is remarkable and commendable that Rwanda, a small land-locked, post-conflict/lowcapacity country in central Africa had been able to develop and roll-out the SIBET, and
through a network of leased lines (leased line: a communication channel contracted for
exclusive use from a carrier) provided by Rwandatel, made it available to the
government administration. The system has limitations. It is not an IFMIS, and has
interesting features like demanding print-outs and signatures in paper before moving to
the next phase for making payments. This was explained in the MOF as being due to the
policy of also registering in paper all the transactions, in order if necessary, to hold
people responsible for any wrongdoing. According to the Kigali Science and
Technology Institute, ICT Center Director (interview with Rapahel Minasi, PhD),
“…during the genocide there was extensive destruction of records and many people
involved claimed innocence, despite having perpetrated barbarian acts. The Government
has to exercise those controls…”
Certainly, another important reason is cash flow management in the treasury, and a good
fiscal responsibility mentality, translating into only authorized payments, both in paper
and electronically, if funds are available. Undoubtedly, payments can be made
automatically if an IFMIS is programmed to cross-check expenses, treasury and budget,
i.e., paying only what was planned and budgeted for the fiscal year, and sending files to
the bank only if there is enough money to pay the vendor or the employees, etc. It
seemed that Rwanda has adopted a discretionary vision, case by case, of each payment to
be made. For example, if necessary and due the cash-flow difficulties in the national
treasury, payments for services or goods delivered can be cancelled in the last phase or
re-ordered in sequence.
The ICT division at the MOF is very proud of its accomplishment – the SIBET – and are
looking forward to the next system, “public books”, and recently renamed to
“Smartgov”. The new Smartgov would be an IFMIS, to be developed in partnership
between the government and a group of consultants. Technological details were not
75
provided with accuracy to this Mission. The process of choosing the technology for
Smartgov will possibly take to a commercial dispute. Regardless of which data base will
be used, either keeping the SQL server or changing to another product, the new system
should incorporate several functionalities that SIBET does not, such as the local
governments’ financial management with accounting being among them. If an IFMIS is
rolled-out soon on Rwanda, it should process data and record transactions from the
districts as well, as already suggested in the course of this study, and preferably through
a web-based system.
District of Kamonyi:
The visit to this district proved to be very interesting with no electricity and running
water, as usual. But the place was clean and showed some level of organization. The
executive secretary of the district was a young economist who studied in Kigali (picture
below), and explained the advances in local administration and the paper reports he
produces every month and sends to the MOF and MINALOC. All the questions made
during a conversation predominantly in French were answered and his secretary would
easily find the file with the documents requested. The official was taking English
classes. Some documents this Mission had access to were hand-written while others
printed with quality.
The practice was to organize and send periodically the reports to Kigali, where
somebody would stamp and sign to prove they were received. A lap-top had been
provided to the official by the Province and the district had telephone through Artel.
Asked why not sending the reports electronically, the official replied that these were his
instructions, but he would be able to do so. He also had an email a Yahoo email address.
If these skills and equipment are combined, and an IFMIS is rolled-out, financial
management and accountability arrangements at the local level in Rwanda can jump start
to another paradigm. The administration of all the different bank accounts, each one
with funds from different donors, could be merged to a single account, and the system
would take care of organizing the information recorded.
Looking on the bright side, in the case of Rwanda, despite the lack of electricity,
FMAAs are less difficult to implement at this moment with regard to
telecommunications than in Sierra Leone. It also seemed that the country has achieved a
reasonable level of fiscal responsibility, but there is surely still a long way to go,
especially when looking at the generation of revenues, another issue that can negatively
affect decentralization projects, as already mentioned in this study. This is especially
true when grants are fully spent and no more donations are made or reduced, affecting
sustainability if the sources of revenue weren’t created and the economy did not move
up.
76
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