Transcript E-Government: Knowledge Management Approach

Developing a National
Knowledge Economy
Strategy in Lithuania
Dr. Renaldas Gudauskas
Lithuania
The European Commission report of
8 November 2000 stated, that
Lithuania can be regarded as a functioning
market economy and should be able to cope with
competitive pressures and market forces within
the Union in the medium term.
Real annual GDP growth
1995-2001
Source: Ministry of Finance, National Development Plan 2002-2004
• Lithuania has a labour force of around 1,8
million people.
• The skill level of employees is relatively high
with 17,9 holding higher degrees and 44,1
having specialised education.
• Research and higher education institutions are
concentrated in five largest cities: Vilnius,
Kaunas, Klaipėda, Šiauliai, and Panevėžys.
Digital divide
Source: The complex sociological research of Lithuania as an information
society
Digital literacy
Source: The complex sociological research of Lithuania as an information
society
• Success of the development of knowledge
economy in Lithuania traditionally is measured
by measuring ITT sector.
• In 2000 ITT sector produced 4,8 of GDP,
created in the service sector.
• The major part of ITT added value comes from
import of software and hardware.
Telecommunications and IT
It is perhaps the fastest growing sector of the Lithuanian
economy.
 In 2000, gross turnover in the information technology and
telecommunications market (ITT) exceeded four billion
Litas. The telecommunications market accounted for
around 73 of the ITT turnover, and the information
technology market accounted for roughly 27.
 Growth of the ITT market accounted for 18 in 2000.
 The hardware retail market turnover increased by 25.
Continued…
Continued:
 In the year 2000 there were 8 computers per 100
inhabitants in Lithuania (the European average is 35). In
the 1999 there were 5,9 per 100 inhabitants.
 10 of the Lithuanian population have personal
computers at home, of which every third is cabled to the
Internet.
 According to the public opinion research company SIC
investigation data, Internet users make 10 of the
Lithuanian population. Approximately half of all the
Internet users are persons below 30. Of the said number
about 50 have university education. About 3,5 of the
Lithuanian population have the benefit of the Internet at
home.
Continued…
Growth of the Lithuanian Information Technology and
Telecommunication Market in 1994-2000, USD m.
1400
1200
235.2
1000
Information
technology market
800
239.1 233.7
600
400
200
206.1
132.6 167
911.2
568.7 546.5
86.6
412.4
135.7 259.4 312.3
0
1994 1995 1996 1997 1998 1999 2000
Source: Infobalt
Telecommunication
market
E-Government assessment
• Computer Associates International was commissioned by
Lithuanian government to perform eGovernment
assessment.
• The assessment was conducted in year 2000 and covered
thirty ministries and departments, state companies, 12
selected municipalities and the counties.
The key objectives were:
 To understand the current technology environment and to
assess the appropriateness of the IT infrastructure, to
support the needs of future eGovernment.
 To review current IT project in order to critically assess
the quality and match of project activity in individual
departments against overall goals of the Lithuanian
Government.
 To develop high level plan to fulfil future IT requirements
for Lithuania.
Implementation Phases
Phase 0:
Create Single Entry Point
Phase 1:
Build the Foundations
-
Initiate the Intranet and a common messaging system
Centralised web hosting and consistent look and feel
Phase 2:
-
Further development of the Intranet (data communication)
Dynamic website content, based on replicated data
Phase 3:
-
Content Development
Interactive Government
Fully operational ”component based" government applications
Interactive government website
In year 2001 the Government of the Republic of Lithuania
adopted the Strategic plan for the Development of
Information Society for 2001-2004.
The main directions highlighted in this Plan are:
 skills,
 public administration,
 electronic business,
 culture,
 cultural heritage
 language.
The Lithuania’s Conception of Information Society
Development was adopted on 28 February 2001.
The objectives emphasised in the Conception are the following:
 Population will be able to acquire knowledge, change profession,
train more easily;
 One computer will be set for 10 pupil in every school;
 Teachers and state officers will be computer literate;
 Libraries will be connected with the internet, at least two computers
will be located at every library;
 Students, lecturers, science workers will be able to use modern
information technologies;
 Conditions of services for population (public administration) will be
improved;
 Population of city and countryside will have equal possibilities to use
digital technologies and etc.;
Lithuania’s key possibilities are:
• The process of post-industrialisation safeguards new conditions and
agents for country’s economical, social and cultural prosperity.
• In order to develop national economic Lithuania can use a favourable
geographical location as a transit country between East and West, and
tremendous market for its goods and services in the East.
• Participation of foreign trans-national corporations in Lithuania’s
economy empower more rapid development aided by FDI. This
process also gives an opportunity to absorb innovative technology,
experience of international management, etc.
• Lithuania’s integration into EU expands the market for its products
and services, creates premises for revival of foreign trade,
reorganization of production of goods and services, encourages
investment.
Lithuania has the least urban – rural gap
among Baltic countries.
• The country has been developing evenly,
rural Lithuania has more or less
functioning industry, and if knowledge
economy development strategy will be
implemented in the same extend, a
problem of “digital divide” for the country
seems more solvable.
Development of
economic-technological formations
This chart visualises, that
currently Lithuania vegetates in the periphery of
World highway.
• However, private sector is fairly passive in
creation of knowledge base for Lithuanian
industry. Analysis made in 2000 shoved, that only
5,9 of Lithuanian industry is oriented to
scientific research compared to 20-30 in
developed countries.
• This can slow down development of
competitiveness of Lithuanian industry, or even
endanger retention of current position.
This chart visualises this prospective and encourages
Lithuanian government to create a development strategy,
which will accelerate more rapid growth.
The Structure of Interaction of
Information Society Development Institutions
of the Government of Lithuania
The Commission of Information society development of the
Government of Lithuanian
The Ministry of
Science and
Education of
Lithuania
The Ministry
of Transport
of Lithuania
The Ministry
of Internal
Affairs of
Lithuania
The Ministry
of Justice of
Lithuania
Other
Ministries
The Commitee of Information Society of Lithuania
Other State
Institutions
The Structure of the Vision of
Lithuania
The vision
of Lithuania
The vision of
the future
situation
The vision of
linking of
present and
future
The vision of
the strategy
The vision of
necessary
resources, skills
and their
utilization
The Context of State Strategic Scenarios
Resources and
opportunities
Users
Markets
Strategic Choices
Markets
Tendencies
Business environment
Current
situation
Desirable
Vision of the
State
Users
Conditions
of actions
Competition
Weaknesses and
strenghts
Potential
Results
Uncertainties
The Strategy of the Commission of Information
Society Development
Context of
Strategic Lithuania
Coordination
Integration
IS Strategy
Strategic
Control
Context
of EU
Strategic Direction
2002 - 2004