Want to reduce corruption, reduce the cost of doing business and serve citizens? Studies show that digitization is one of the biggest drivers of a nation’s economic success. Digitization reduces the costs of doing business for both the state and private economic actors, in turn benefiting the economy as a whole. Digitization also markedly reduces the incidence of corruption and increases access for citizens to services at reduced cost.
For example, digitizing procurement increases competition, reduces costs, reduces arbitrary decision-making, reduces human interaction in the submission and evaluation of tenders, thereby eliminating or reducing opportunities for corrupt or collusive behaviour. Downloadable tender documents and digital submission also benefit the environment in many ways: it reduces the need for printing and for driving to collect and submit documents, etc.
In another example, a pilot study in the US involved the use of Artificial Intelligence/algorithms to allocate bail for various categories of offences. This showed a marked reduction in the prison population of awaiting trial prisoners. This clearly has budgetary and justice benefits.
With no human bias in decision-making, algorithms can take over a lot of decision-making, especially those decisions dependent on quantitative data. For instance, decisions about the Repo rate by the SARB can be made by algorithms without any political or other bias, purely on the numbers. Incorporating machine learning means computers can also make increasingly better decisions even where qualitative data are necessary for decision-making.
The use of digital technology in education and health care are well documented. All that is required is a clear strategy and improved implementation efforts. Building computer labs in township and rural schools, and then leaving these to be completely vandalised or at the mercy of corrupt teachers is pointless and a waste of public and donor funds. We have also seen the impact of digital technology on access to financial services for unbanked or underbanked people.
At the other end of the scale, access to government services may be greatly improved through improved ICT infrastructure across the country, including poor areas and rural areas. This should be complemented by a continued reduction in data charges.
Investment in digital services can prove comparatively inexpensive because once the systems are in place, the marginal cost of adding users are close to zero. For example, when you have a computer in each village (a “digital centre”) with the birth certificate program installed, extra birth certificates cost almost zero. And adding more apps to the computer, allowing for help with other government services (like agricultural extension services) adds little cost too.
