DOI 10.1007/s11115-009-0087-6
Abstract This paper critically examines the progress made in introducing and
implementing e-government programs and policies in Kazakhstan. It argues that in
order to achieve the articulated development goals, the Kazakh government has
moved toward e-government paradigm to ascertain a people-centered, accountable
and transparent government. Available data substantiates that the initiative faces
several challenges such as political support and relationship between political
institutions, bureaucracy and citizens, digital divide, widespread corruption, lack of
human resources, and inadequate infrastructural development, which needs to be
amputated to improve public service delivery. This study illustrates some
international development experiences to understand the benefit of e-government.
Such experiences may serve as policy guidelines to the successful implementation of
e-government to ensure overall development in Kazakhstan.
Keywords Development . E-government . Kazakhstan . Service delivery
Introduction
Electronic governance has been widely endorsed as a solution to a range of
predicaments in the public sector. With promises of decreasing corruption, cutting
red tape, reducing government costs, and fluctuating participatory governance, the egovernance revolution has swept most nations, capturing the imaginations of policy
makers and attracting the interests of citizens and business alike (Salem 2006).
Electronic government evolves swiftly through defined stages, beginning with a web
presence of public agencies (interaction) to a means for citizens around the clock
seven days a week in the convenience of their homes (transaction) (Netchaeva
2002). This essentially creates a new ground for public sector operation. The
S. H. Bhuiyan (*)
Department of Public Administration, Kazakhstan Institute of Management, Economics,
and Strategic Research (KIMEP), 4 Abai Avenue, Almaty 050010, Kazakhstan
e-mail: sbhuiyan_68@yahoo.com
32
S.H. Bhuiyan
33
What is E-government?
E-government was introduced in the field of public administration in the late 1990s,
though it has not been clearly defined and understood by scholars and practitioners
of public administration (Moon 2002). The term e-government arises by analogy to
the concepts and practices of electronic commerce applied to the public sector,
referring to the delivery of government services to the public on-line (typically
over the Internet) or to the technological infrastructure required to deliver those
services (Brown 2005, p.242). E-government denotes the strategic, coordinated use
of ICT in public administration and policy decision-making (Haldenwang 2004).
Similarly, by e-government, Tandon (2005) refers to the provision of efficient,
convenient and transparent services by government departments and agencies to
citizens and businesses.
The Global study of E-government, a joint research initiative for global egovernment by the United Nations (UN) and the American Society for Public
Administration (ASPA), provides a comprehensive definition of e-government:
Broadly defined, e-government includes the use of all information and
communication technologies, from fax machines to wireless palm pilots, to
facilitate the daily administration of government. However, like e-commerce,
the popular interpretation of e-government is one that defines it exclusively as
an Internet driven activityto which it may be added that improves citizen
access to government information, services and expertise to ensure citizen
34
S.H. Bhuiyan
Kazakhstan: context
The Republic of Kazakhstan is located in Central Asia bounded in the West by the
Caspian Sea, in the North by Russia, in the East by China, and in the South by
Uzbekistan and Kyrgyzstan (see Box 1 for summary information). Extending over a
territory of 2,725,000 square kilometer (Makhmutova 2001), it is the second largest
country of the former Soviet Republics with a population of 15.48 million in 2007
(World Bank 2008), of whom 4.5 million are ethnic Russians (Wilson et al. 2002),
and population density 5.7 per square kilometer (Agency of Statistics of Kazakhstan
website: www.eng.stat.kz).
Kazakhstan continues to negotiate the enormous challenges inherent in any
transition from a planned to a market economy and, in the last decade, has
experienced plummeting production levels (Wilson et al. 2002) and two-digit (now
11%) inflation continues to grow. In recent days, Kazakhstan makes considerable
progress in almost all aspects of life. Although, critics expressed concern about the
limit of the countrys democratic development and the lack of its commitment to
hold free and fair elections. For example, the most recent Presidential elections were
held in December 2005 when President Nazarbayev won a third term with more than
90% of the vote. The elections gained negative commentary from the Organization
for Security and Cooperation in Europe (OSCE), which claimed they had not met
international standard, citing campaign restrictions, interference in polling stations,
multiple voting, pressure on voters, media bias and restriction on freedom of
expression (Keesing 2005 cited in Knox 2008, p.478). In the same vein, in 2001,
another scholar also observed: It is as yet too early to herald the dawn of real
democracy in Kazakhstan (Robinson 2001).
Kazakhstans economy has gone through stages of decline, stagnation, and high
economic growth after independence in 1990. The period from 1990 to 1997 was the
35
National Legislature
Language
Currency
Tenge
Exchange rate
Unemployment rate
8.8 (2003)
99.5 (2005)
GDP
12
21
Sources: Agarwal 2008; UNDP 2007; Wilson et al. 2002; World Bank 2008.
The development initiatives of GoK have contributed to improving human
development index (HDI). In 2007/8, the HDI for Kazakhstan is 0.794, which gives
the country a rank of 73rd out of 177 countries (UNDP 2007). In the contrary, the
36
S.H. Bhuiyan
37
2008 Index
2005 Index
2008 Ranking
2005 Ranking
Kazakhstan
0.4743
Kyrgyzstan
0.4195
0.4813
81
65
0.4417
102
Uzbekistan
0.4057
76
0.4114
109
Turkmenistan
0.3262
79
128
Tajikistan
0.3150
0.3346
Region
0.3881
0.4173
132
117
World
0.4514
0.4267
which increased to 19.1 in 2006, while in the same period mobile cellular subscriber
increased from 1.3 to 51.2 (World Bank 2006). The e-Government Survey 2008 data
shows that both mainline telephone and cellular user further increased to 19.77 and
52.86 respectively (UN 2008).
E-government program objectives and implementation
Kazakhstans e-government program incorporates a three-stage approach (World
Bank 2006):
&
&
&
Some tasks related to the first stage were implemented in 2006. On the April 12,
2006, e-government web-portal (www.e.gov.kz) was launched which provides more
than 900 information services (egov magazine 2007). This portal is tri-lingual:
Kazakh, Russian and English. Laws On Informatization and On Amending
Certain Legal acts of the Republic of Kazakhstan in the Sphere of Informatization
were developed and enacted. Interagency electronic workflow with digital signature
has been implemented in 39 state bodies. A pilot model of National Authentication
Center for physical and legal entities has been developed, and a pilot project on
integrated transportation medium of state bodies has been implemented in Astana,
the capital of Kazakhstan. In an interview with the egov magazine in July 2007,
Kuanishbek Esekeev, the Chairman of AIC, reported that GoK had implemented, on
38
S.H. Bhuiyan
The challenges
In 2005, the United Nations Department of Economic and Social Affairs has
estimated that more than 60% of e-government projects in developing countries fail
(Salem 2006). Likewise, Kazakhstan confronts with multifaceted challenges to the
introduction of e-government, and some of them are described here.
39
40
S.H. Bhuiyan
be completed online, citizens do not have to spend the time to visit and wait at a public
office, as long as they have an Internet connection (World Bank 2006, p.20).
Corruption
In April 2005, the President of Kazakhstan signed a decree On Measures to Step up
the Fight against Corruption to strengthen discipline in the activities of state bodies
and officials (Transparency International 2006, p.185). Against this backdrop, petty
corruption in the various form of bribe taking is a fixture of daily life (Gleason 1997,
p.379). High profile corruptions are also rampant. For example, the President of the
state-owned Kazakh Telecom joint-stock company was sacked by Security Council
when it was revealed that his monthly wage was $365,000 (Knox 2008, p.487).
Similarly, in 2007, Kazakh Anti-corruption Agency (financial police) filed charges
against the selection committee of Bolashak (future) program, a presidential
scholarship scheme that enables talented young Kazakhs to study in developed
countries. The charges stated that many scholarships have been actually purchased
through the corrupt jury decisions (Bakenova 2008, p.94).
It is widely believed that e-governance is promised to reduce corruption, which
displeases corrupt political executives and bureaucrats, who, in turn, create building
blocks to the implementation of e-government programs.
Digital divide
Digital divideexclusion of groups within the population to get access to a
computeris another challenge that has received government attention. It reveals
that only 12% of the population in Kazakhstan has skills to use PCs and half of them
can use computer without being helped (egov magazine 2007), and only 12% are
Internet users (World Bank 2008). To bridge the gap, the government is
implementing Digital Inclusion Program for years 20072009. This program aims
to increase number of ITC educated people by 15% and prepare the country to the
transition from the industrial to information society (AIC website: www.aic.gov.kz/?
mod=static&Ing=rus&id=22, accessed November 22, 2008).
Many governments across the world have taken up measures to lessen the
magnitude of the problem. Philippines and Hong Kong, for example, have facilitated
this partly by providing free or subsidized access to computers (and Internet) in
designated public places (Holliday 2002). Telecommunications infrastructure is
relatively problematic, although there are examples of significant public intervention. To this effect, several municipal governments in Germany have facilitated the
development of high-speed network cables, fiber optics, and public access to
improve digital economy (Hasse 2002).
Infrastructural development
E-government operation requires strong technological infrastructure such as
computing and telecommunications. A great deal of financial resources is involved
to develop structure. In Kazakhstan, it is more burdensome due to its vastness and
unique geographical structure. The government has so far (20052007) allocated
41
approximately US$380 million (World Bank 2006) for the purpose of e-government
implementation. Let alone government fund is inadequate to meet required expenses,
which warranted a partnership among public, private and donor agencies for the
accumulation of investments. Kazakhstans poor infrastructural readiness for egovernment also reflected in the e-Government Readiness Survey 2008 where it
scored 0.1306 on infrastructure index (UN 2008).
Human resources
There is no denial that in most of the developing countries e-government programs
suffer due to the lack of quality human resources. Kazakhstan is no exception. A
2006 World Bank report points out that even AIC, the lead organization to
implement e-government, is struggling with the shortage of professional staff,
leaving only 1215 for the informatization task (World Bank 2006). To overcome
the challenge, GoK provides continuous training and education to develop
professionals in this field. However, given the low public sector compensation
packages, it is unclear whether the shortage of professionals will ever be overcome.
Admittedly, Kazakh public administration suffers from migration of knowledgeable
employees to its growing private sector due to attractive emoluments. This will
essentially constrain countrys journey toward e-government development.
Poverty
Given the gradual decline of the population living below the poverty line, the
reduction of poverty is still an important policy goal for Kazakhstan (Agarwal 2008).
However, a Gini coefficient (a measure of income inequality, with higher values
denoting more unequal incomes) increased from 25.74 in 1988 to 33.85 in 2003
(ESCAP 2008). Income inequality is on the rise and took a defiant shape due to
onslaught global economic meltdown, which also affects Kazakh economy.
Consequently, rates of rural poverty continue to grow, and the economic necessity
force migration from rural areas to the towns, which contributes to increase urban
poverty too. According to UNDP, nearly 16% of the total population lives on less than
US$2 per day (Euromonitor International, www.euromonitor.com/pdf/indonesia.pdf,
accessed November 22, 2008). In this context, it is argued that a large population is
unable to buy PCs (price of a PC ranges between 40,00060,000 Tenge) and be
connected with Internet (initial connection fee and deposit amount to nearly 20,000
Tenge even with the state-owned Kazakh Telecom).
Apart from the above, there are disparities in the distribution of basic services in
Kazakhstan (Gleason 1997). For example, a study shows that due to ageing Soviet
transmission and distribution lines, electricity losses average 15%, reaching 30% to
remote areas (cited in Cochran 2008, p.1), which causes frequent power cut1 mainly
in rural settlements and thus upset the prospect of their social and economic life.
This poverty-ridden environment is often not receptive to adopt technological
innovations, like e-government.
1
Kazakhstan produced 76.3 billion kilowatt-hours (kWh) of electricity in 2007 and consumed just over
that amount, 76.4 billion kWh (Cochran 2008, p.1).
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S.H. Bhuiyan
Harnessing privacy
Rapid adoption of global networks and technological innovations has raised many
outstanding concerns from civil society over the protection of their privacy and
personal data and has brought into focus the possibility of the rise of Big Brother
(cited in Bhuiyan 2006, p.114). In a similar vein, referring to Korea, Jho (2005)
illustrates that the Korean government has faced fierce public opposition and
suffered major setbacks in pursuing some of its ICT projects. This symptom worries
yet growing civil society of Kazakhstan and effective dialogue with the government
can reduce tension over the issue.
43
46 e-Seva centers (with 400 service counters) spread over the Twin Cities and
Ranga Reddy District.
All service counters are facilitated with an electronic queuing system.
Operating from 8:00 a.m. to 8:00 p.m., on all working days and 9:00 a.m. to 3:00
p.m. on holidays (Second Saturdays and Sundays).
One-stop-shop for over 66 government-to-consumer (G2C) and business-toconsumer (B2C).
No jurisdiction limits- any citizen in the twin cities can avail of the services at
any of the 46 e-Seva service centers.
Online services: eForms, eFiling, ePayments.
Payments by cash/cheque/DD/credit card/Internet.
The Government of India data shows that e-Seva centers offer the total of 132
G2C services from 16 government departments, and 15 B2C services from 10
business firms. Services include, among others, online transaction processing of
payments, issuance of certificates, and licenses.
The number of transactions at e-Seva centers was initially under 5,000/month
(August 2001). It quickly gained popularity and the number surpassed a million in
July 2003. As of May 2004, the level of transaction is above 1.1 million. (Source:
http://www.esevaonline.com/ cited in World Bank 2006, p.42)
The first case makes it clear that interaction between MPs and citizens through
Internet helps the former to better understand citizens opinions, grievances, and
demands, while the latter participates in scrutinizing public policies and laws.
Kazakhstan government needs to implement the practice, contextualizing it to the
local conditions, to boost up contact between parliament members and citizens, a
pre-requisite for ensuring good governance.
The second case is focused on electronic delivery of customer services related to
healthcare in an EU country, Malta. The dismal performance of healthcare sector in
Kazakhstan (Iqbal 2007) warrants a major overhaul. As a part of perceived reform, GoK
may experiment with the transferability of Maltas practice in public healthcare outlets.
The third example illustrates the significance of providing public services through
public-private partnership (PPP) in Andra Pradesh, an Indian state. PPP is now a
common strand of third way government policy, with better efficiency promised
44
S.H. Bhuiyan
from the private funding of public infrastructure through the transfer of risks to
private concerns. In this perspective, GoK may consider to build PPPs as a potential
strategy to deliver effective and efficient services to the citizens.
Over and again, control of corruption and poverty reduction are two important
development challenges that are being facilitated through e-government. These
issues are in some detail discussed here.
Corruption
Heeks (1998) points out that the level of corruption in the public sector sharply
decreases in countries where e-government exists. A survey in India has revealed that,
in the states where e-government has been established even partially, the corruption
rate has substantially fallen. The survey has found that in Kolkata and Mumbai, two
Indian cities, due to implementation of e-governance in some public sector, corruption
rate has declined to 19% and 18% compared to 51% and 38% respectively in 2000
(Kabir 2008). Similarly, in Bangladesh, one may observe that due to computerization
of Railway Reservation System, the number of black-marketers has decreased
considerably. Elimination of the middle-men in citizen-government interaction, in
fact, is the major factor eradicating corruption (Kabir 2008).
Poverty reduction
Admittedly, the Nobel Peace Prize winning Grameen Bank has made a significant
contribution to the development of ICT in Bangladesh. During the years, Grameen
philosophy has proved that ICT can be very useful to uplift the rural and
disadvantaged communities in Bangladesh and beyond (cited in Hossain 2005).
According to the founder of the Bank and Nobel Laureate Professor Muhammad
Yunus identified three key areas ICT can play an immediate role in helping the poor
(Yunus 2004, cited in Hossain 2005) are:
1. Integrating the poor into the mainstream economy by expanding their market,
eliminating the middle-men in their business, and creating international job
opportunities through service out-sourcing;
2. Bringing information, educational programs, skill training, and healthcare
services, etc, all in a very user friendly way, even to the most remote villages;
3. Empowering the poor, particularly poor women, with a stronger voice that can
be heard behind the borders of their villages, better access to information, and
improvement in the democratic process.
The study by Aminuzzaman et al. (2003) found a positive correlation between the
uses of ICT and poverty reduction in Bangladesh. According to the findings, at the
individual level, the Village Phone (VP) of Grameen Bank has contributed
significantly to income generation of rural women (popularly known as phone
ladies). Socially, it has given a new status and image to those women who are getting
Banks support to start this venture both at the family and community levels.
Moreover, at the community level, it has narrowed gaps between cities and villages
by enhancing frequent communication between family members. Economically, it
has increased business transactions and dissemination of information (Aminuzzaman
45
et al. 2003, p.327). In an earlier but similar study by Bayes et al. (1999) also
evaluated the role of VP (of Grameen Bank) within the context of rural development
in general and of poverty reduction in particular. They came up with two basic
conclusions: first, pursuance of pragmatic policies can turn telephones into
production goods, especially through lowering transaction cost, and second, the
services originating from telephones in villages are likely to deliver significant
benefits to the poor in Bangladesh (Bayes et al. 1999).
Kazakhstan suffers from rampant corruption and poverty. As a means to control
corruption and eradicate poverty, the government can evaluate the suitability of the
noted (or similarly designed) initiatives for implementation in Kazakhstan.
Conclusion
The paradigm of e-government emphasizes coordinated network building, external
collaboration, and one-stop customer services to facilitate efficient service delivery
to citizens, and, thus, contrasts sharply with the traditional bureaucratic paradigm,
which stresses standardization, departmentalization, and division of labor (Ho 2002).
In order to keep pace with the articulated development goals, particularly to achieve
Kazakhstan 2030, the GoK has started to move toward e-government paradigm to
establish a citizen-centered, accountable and transparent government.
Kazakhstans past political history was linked to the long-standing legacies of
monopolism, clanocracy, and cynicism of the Soviet period (Gleason 1997, p.379).
In the new Kazakhstan, situation has not improved to the extent many had expected.
The country is still marked by widespread corruption, abject poverty, digital divide,
lack of infrastructural development and human resources. In this context, egovernment offers opportunities, though rudimentary at the present stage, to the
government to improve service delivery across the country.
The international development experiences clearly portray the benefit of egovernment. Such experiences may serve as policy guidelines to the implementation
of e-government in Kazakhstan, after careful evaluations to their acceptability in
Kazakh society.
An important challenge to e-government implementation in developing countries
is the lack of financial resources. The case of Kazakhstan is very much the same.
The honeymoon period of booming Kazakh oil economy is under stress. To continue
the systematic implementation of e-government even during the sluggish economy,
public-private partnership is a necessary strategy for the avoidance of huge initial
investment costs. The successful implementation of the program will surely change
the public administration landscape and enable the government to deliver services to
a transparent, accountable, and client-focused environment.
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Shahjahan H. Bhuiyan is Associate Professor and Chair of the Department of Public Administration at
Kazakhstan Institute of Management, Economics, and Strategic Research (KIMEP), Almaty. He earned a
Ph.D. in Development Studies from the University of Bonn, Germany. His research interests are in
governance, public policy and administration, public management, organization theory and behavior,
culture, knowledge and development.