Chapter 1. Introduction: Strengthening the governance of digital government

In recent years, governments have undertaken large-scale public sector changes to modernise their operating processes, policies and programmes and adapt to new technologies and demands from the public. Digitalisation has become a top priority for many governments and public administrations to achieve outcomes such as the digitalisation of public services, the opening up of public sector data or the establishment of common platforms shared by various public authorities to foster horizontal integration and synergies. Public sector digital transformation is a complex process that revamps both citizens' access to information and services, and the transparency and efficiency of the functioning and structure of public institutions. On the one hand, it is about assisting people through innovative and agile continuous improvement in a streamlined, straightforward and co-constructed partnership with different stakeholders. On the other hand, it is about allowing civil servants to respond to a changing organisation while maintaining the continuity of approaches, daily supervision and assessment, and introducing innovative activities (OECD, 2014[1]).

Majority of countries have made significant progress in digitalising government structures and facilities by transferring to the digital world what was previously paper-based (see Figure 1.1 on the differentiation between e-government and digital government). Becoming a fully digital government involves government-wide co-ordination to foster coherent use of digital technologies across policy areas and all levels of government, and the alignment of actions and practices within and between public sector organisations in line with broad government strategic objectives. Doing so ensures that citizens and businesses can foster partnerships with ease to co-create public policies and programmes to improve economic productivity and social well-being. Governance structures are essential to maintain active management and co-ordination and promote system-based rather than silo-driven decisions. With stronger leadership, co-ordination and collaboration, policy makers can accelerate the digital transformation of the public sector more efficiently, effectively and ensure the stability needed to deliver long-term sustainable outcomes. The most prevalent problems and obstacles are related to legacy-driven organisational structures mainly defined by vertical hierarchical institutional arrangements and silos that hamper the transition toward more consistent capital and programming cycles. Nevertheless, countries are progressively emphasising horizontal integration-oriented behaviour. This is required to promote the use of digital technologies to facilitate links between strategic policy initiatives across different sectors and government levels and to maintain policy coherence and long-term stability. Institutional set-ups need to be re-evaluated and adapted to assist a whole-of-government transition, which delivers better outcomes and helps meet the increasing demands of people (OECD, forthcoming[2]).

Figure 1.1. Digital transformation of the public sector

Source: Based on (OECD, 2014[1]), Recommendation of the Council on Digital Government Strategies,

www.oecd.org/gov/digital-government/Recommendation-digitalgovernment-strategies.pdf.

Governance structures that maintain active co-ordinated management and promote system-based rather than silo-driven decisions are vital for policy makers to be able to evaluate and experiment with systems and technologies that are digital by design and open by default. This approach maintains the use of digital tools and information in ways that prevent amplifying existing or creating new bias. Data and digital technology management in public sector organisations also need to respond to the significant changes in our digital era and help overcome siloed policy approaches (OECD, forthcoming[2]).

Based on the OECD's experience of global policy assessments, the research of the E-Leaders Task Force on Governance and the 2014 OECD Recommendation on Digital Government Strategies (OECD, 2014[1]) (see Box 1.1 and Figure 1.2) the E-Leaders Handbook on Governance has defined three facets of governance for the digital transformation of governments that are generally applicable to all countries: contextual factors; institutional models; and policy levers (see Figure 1.3).

• Contextual factors provide an understanding of country-specific and region-specific elements and identify issues to be included in the consideration, design and implementation of policies.

• Institutional models illustrate the various forms of governance, institutional frameworks and regulatory systems in countries and how they affect and drive modern governance approaches.

• Policy levers are instruments of a democratic governance system defined by the OECD as crucial elements for strong governance to achieve a successful digital transition of the public sector.

Box 1.1. OECD Recommendation of the Council on Digital Government Strategies

Adopted on 15 July 2014, the OECD Recommendation is a structuring element for decision-makers and stakeholders that need to navigate government objectives and resources in an increasingly complex policymaking environment.

Digital technologies create both opportunities and challenges for successful government reforms in any policy domain, such as welfare, economic development, administrative services efficiency. A set of 12 key recommendations – grouped under three pillars on "openness and engagement", “governance and co-ordination", "capacities to support implementation" – are designed to guide decision-makers.

Figure 1.2. OECD Recommendation of the Council on Digital Government Strategies

Source: (OECD, 2014[1]), Recommendation of the Council on Digital Government Strategies,

www.oecd.org/gov/digital-government/Recommendation-digitalgovernment-strategies.pdf.

Figure 1.3. Three facets of governance for digital governments

Source: (OECD, forthcoming[2]), OECD E-Leaders Governance Handbook.

For many years, Lebanon's administration has suffered from inadequate service delivery, operational inefficiencies, outdated technology, time-consuming procedures, corruption issues and dysfunctional governance systems (World Bank, 2016[3]). These problems have slowly weakened public confidence in the government, damaged Lebanon's public sector and hindered its ability to cope with the rapid pace of technological transition of the digital age. The divide continues to grow between citizens' aspirations, particularly the digital-savvy youth of today, and the outdated structures underlying many public services' existing provision (OMSAR, 2019[4]). With the civil protests in Lebanon beginning in October 2019 against the government, the need for the public sector to deliver greater value to citizens and businesses is greater than ever. Lebanon pledged, at the Paris CEDRE conference in April 2018, to conduct structural and budgetary reforms to benefit from the release of USD 11.5 billion of loans and donations promised at this conference. These investments should finance the first of the three phases of the national infrastructure rehabilitation and modernisation plan of the country, including digital transformation. However, the difficulty of the Government of Lebanon to implement strategic reforms has led the donors to withhold these loans and donations.

Successive governments have repeatedly recognised the importance of technology as a crucial way to promote innovation, reform public management, and transform public service delivery. Considerable public resources have been spent on projects to continue improving the status quo. However, judging by the expectations and experiences of users, the current situation is still unsatisfactory. In June 2019, the OECD undertook a fact-finding mission to Beirut for discussions with several senior executives in both the public and private sectors to gain insights into Lebanon's digital government needs and public perception of current government services and performance. The Lebanese stakeholders agreed that excessive focus has been put on implementing software and programmes, while the policy goal must be to digitalise state processes and services to better respond to Lebanon's population aspirations and needs.

The goal of digital transformation should not be to introduce new and complex software and programmes. The goal of establishing a digital government is to simplify government processes by integrating current and emerging technologies to better meet the needs of Lebanon's people, residents and visitors. In 2018, the Government of Lebanon developed the digital transformation draft strategy that includes an action plan, as well as wide-ranging support from investors in the public sector, the private sector and the citizens of Lebanon (see Box 1.2). The policy calls for an ambitious framework to significantly improve public digital services so that Lebanon can aspire to reach a more mature technological development status. From now to 2030, the goal of the Government of Lebanon is to improve the quality of life of its people and businesses by turning Lebanon into one of the most advanced digital countries in the Arab world, by maintaining effective and open government, and introducing citizen-centric digital services to better serve inhabitants, tourists and business people. Developing a comprehensive strategy and action plan to carry out the digital transformation of the public sector alongside the economy and society is of paramount importance – and this strategy and plan must include preparing society to adapt to the ever-changing trends of digitalisation.

The next three chapters of this study detail and discuss the digital transformation draft strategy of Lebanon based on each of the facets identified in the E-Leaders Handbook on Governance, its dimensions and sub-dimensions and see how they can be applied to and improve the current governance framework.

From the OECD fact-finding mission to Beirut in June 2019, the strengths of the Government of Lebanon were found to include: 1) long experience in developing digital government policies; 2) a strong political will to improve and change; and 3) existing digital capacities in public and private sectors. In contrast, the discovered weaknesses were: 1) political instability; 2) public administration systems operating in silos; 3) fatigue from a history of unsuccessful digital government reform attempts; 4) low levels of digitalisation throughout the public sector; and 5) a critical public perception on corruption.

Informed by the OECD’s Secretariat of a Handbook on Governance for Digital Government and the outcomes of the fact-finding mission to Beirut in June 2019 (see Box 1.3), this study aims to provide guidance on sound governance tools for digital government in Lebanon based on the Lebanon Digital Transformation: Strategies to Action (2020-2030) Volume 1 (OMSAR, 2019[4]). The study highlights the contextual factors, institutional models and policy levers that could be taken into consideration when identifying the adequate elements needed to ensure the sound implementation of digital transformation in Lebanon.