Digital technology has transformed every sector globally, including public service and government administration. Countries are now seeking to utilize technology to solve challenges in the public sector. Government technology (GovTech) is becoming a new paradigm for serving citizens better, increasing transparency, and developing civic participation that brings open data to the public. It allows the government to use digital platforms and mobile applications to administer its functions and to monitor data information more efficiently. In European countries, for example, $25 billion has been spent on the development of government tech. Some countries like Denmark and Estonia have created digital platforms for citizens to interact with their government through the use of blockchain systems and e-identification schemes. Currently, over 90% of Danish citizens have used the government digital service.
With over 2,000 GovTech startups across Europe, the UK, Germany, and France have become incubator countries for digital startups that offer innovations for tackling public issues. For instance, the government of France has established a favorable ecosystem for GovTech. GovTech startups are becoming state-owned to improve government administration services across federal, state and local government. Public agencies such as schools, universities, hospitals, authorities, and courts have reformed their services with emerging technologies such as artificial intelligence, machine learning, and blockchains. The government of France was the first host of The GovTech summit, a 2018 gathering that brought European leaders and innovators together to explore the GovTech ecosystem and adopt digital technologies for public service. The summit estimated that GovTech industry is projected to be worth $1 trillion per year by 2025.
The US government has also realized the importance of digital technology in public service. In March, Sen. Kamala Harris introduced the Digital Service Act 2019, which called to provide funding of $15 million a year in federal and state funds to improve government systems that deliver services to consumers. This bill will encourage digital innovation, fix local technological infrastructure, and modernize digital services within the government. Even though the bill has not passed yet, the US government has signaled its interest in applying technological solutions toward promoting innovation in public decision-making processes and increasing civic participation. Thus, the future of GovTech is promising.
GovTech also promotes the use of tech increase public trust. GovTech can be used in various fields such as tax and regulation, financial inclusion, health-care, civic engagement and participation, and access to justice. However, earning public trust is not easy. The government must focus on citizen experiences to decide what technologies are necessary for better service. To improve citizen satisfaction, the government should be able to provide access to transparent information, comprehensive data, and responsive services. Oftentimes, the government has difficulty in navigating how to apply technology in accordance with the needs of the citizenry.
Digitizing the public sector will also bring various risk. The holding of an enormous amount of open data requires that the government provide a high level of protection and security. How can the government mitigate the risks of the digital system? Ongoing concerns over cybersecurity make this a key question.
As a fast-developing sector, the future of GovTech is bright. However, GovTech involves substantial challenges. The government should be careful when implementing technologies in the public sector in order to prevent public data from becoming vulnerable. Allowing a third party to manage public data will possibly create a security and privacy risk. The government should be prepared to formulate precise regulation and legal frameworks that fits with the development of technology. It is crucial to think about potential future technologies and continue to collaborate with the private sector to establish a comprehensive future policy framework.
The government should carefully decide which technologies should be implemented based on the needs of the citizens. There are several factors that the government needs to consider before adopting the technology. First, the Government should be able to prove sufficient infrastructure to support the technology. Second, the government should improve the capacity of the citizens to use the technology. Third, the government must ensure public trust by providing security and protecting open data. Those three points will help the government alleviate the potential risks of digital technology in public service.
The government also should be able to develop methodologies and best practices to grow confidence and to serve constituents. It should add new laws, amend existing laws, and introduce new oversight frameworks for digital platforms that will ensure the security of public data and protect digital providers.
The private sector is enthusiastic about bringing future technology into the public sector as government technology will bring a favorable business climate for investors. However, investors should carefully understand how to utilize technology to support their businesses.
