Digital transformation in Central & Eastern Europe

An interview with Marina Dimova, Governance Chief Technical Specialist, UNDP Bosnia and Herzegovina

by Emmanuel Koenig

Over the past ten years, governments have been faced with the unprecedented need to digitally transform and innovate every aspect of the public sector. PwC has supported governments in their efforts to build citizen-centric, effective, accountable and inclusive digital services that will leave no one behind. 

Today, the pace of new challenges is even more acute. 

The outbreak of COVID-19 in particular showed us that governments can speed up the transformation and introduce technically savvy digital solutions in a crisis. Rapid responses have helped governments realise hidden potential and highlighted their ability to quickly improve processes using technology.

Looking at South East Europe (SEE), governments have made significant breakthroughs in the e-government space by using new technologies to increase the efficiency and effectiveness of their service delivery. 

As part of our work in the digital public services sector, we have often partnered with the United Nations Development Programme (UNDP). Thanks to our close collaboration, I had the opportunity to interview Marina Dimova, Governance Chief Technical Specialist at UNDP in Bosnia and Herzegovina, to discuss UNDP’s activities in digital transformation and innovation.

 

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Emmanuel Koenig, PwC Managing Partner, South East Europe

Over the summer, UNDP in Bosnia and Herzegovina and the British Embassy in Sarajevo held a digital transformation conference in partnership with PwC. One of the main conclusions of the conference was that governments need to focus not on whether to establish citizen-centric digital services – but how to do so. Can you comment on this?

UNDP and the British Embassy in Bosnia and Herzegovina, in collaboration with PwC, started the public conversation about digital transformation in the public sector back in February 2020. The recent virtual conference held in June 2020 brought together more than 130 government leaders and professionals from Bosnia and Herzegovina and the CEE region to reflect on the impact of COVID-19 on governance, and to learn and get inspiration from successful approaches and solutions. A few points cross my mind when I think about the event.

Firstly, policymakers need to put in place a whole-of-government vision for digital transformation, supported by an adequate policy, regulatory and institutional environment that enables fast and tangible change. Experiences from the region demonstrate that a key success factor for people-centred digital transformation is strong political leadership.

Secondly, institutions need to advance their digital skills and welcome innovation as one of their progressive policy-design and service delivery tools.

Thirdly, authorities need to step up efforts towards more inclusive, fair and people-centred e-government and e-services. Everyone in Bosnia and Herzegovina should benefit from this transformation, including society’s most disadvantaged. This is how governments will become “a click away from the citizens and businesses”.

Last but not least, the enthusiasm and positive energy behind new and innovative ideas can be a powerful change driver. Providing space for such transformations is what UNDP is committed to do in Bosnia and Herzegovina, the region and globally. 

 

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Marina Dimova, Governance Chief Technical Specialist, UNDP Bosnia and Herzegovina

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While technology is important for the overall modernisation and democratisation of governance, it is not a panacea. These questions can be answered more responsively if policymakers and public servants genuinely embrace a people-centred approach as they re-construct governance systems together with the citizens.

Marina Dimova, Governance Chief Technical Specialist, UNDP Bosnia and Herzegovina

COVID-19 has forced governments in CEE to rapidly advance their transformation. How did the pandemic impact the government's approach to digital transformation in Bosnia and Herzegovina and the region?

In the past few months we saw many examples from Bosnia and Herzegovina and from the region that demonstrate how public services or public offices have introduced significant digital transformation changes in just weeks. It was great progress out of necessity. Using technology for communication and digital tools was not as difficult as it seemed. COVID-19 proved to be an accelerator for e-governance in Bosnia and Herzegovina.

Along with the positive benefits yielded by digitalisation practices in the public sector, a new generation of deficiencies and dilemmas surfaced: e.g. how to overcome the vast legislative and strategic gaps when rapid crisis recovery actions entailing unregulated horizon technology need to be deployed quickly? Can the government use technology to monitor and control people? What are the legislative and moral boundaries of privacy and personal data?

While technology is important for the overall modernisation and democratisation of governance, it is not a panacea. These questions can be answered more responsively if policymakers and public servants genuinely embrace a people-centred approach as they re-construct governance systems together with the citizens.

In addition, guided by the pledge to leave no one behind, governments need to tackle the growing digital inequality in Bosnia and Herzegovina. We see digital gaps between communities living in urban areas and those living in rural settlements. Gender also figures in the relationship regarding the use of technology. Age is clearly a barrier towards access to digital services and systems for many of the older generation. Individuals living with physical disabilities are often disadvantaged when it comes to accessing the Internet or e-services.

 

Innovation is usually an underlying factor for new approaches and strategies. How can it become part of Bosnia and Herzegovina’s journey? What does UNDP see as the largest potential in leveraging technology and innovation in Bosnia and Herzegovina and the region?

Digital transformation in Bosnia and Herzegovina is slowly gaining speed and political momentum, however it remains one of the few countries in the region without a single fully transactional e-service.

For UNDP, technology and innovation are means to an end, which envisions more accountable, people-centred, agile and effective governance. Informed by practice and global experiences, our development approach rests on the understanding that:

1)   By leveraging technology and innovation in governance, we create enabling pre-conditions for leapfrogging and accelerating development of public systems and services, to the best interest of society.

2)   In that process, however, we often find that there is an urgent need to re-imagine public systems and the way governments operate, as old blueprints seem to be irrelevant or incommensurate with the scale and magnitude of tasks and challenges governments and people are facing today.

3)    Technology and innovation are essential for inclusive and future-looking government. Yet, to catalyse systemic transformation, they need to be embraced by policymakers and public administration who have 21st century skills and capabilities, gained through continuous learning.

 

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Even if there are a myriad of important lessons learnt, fundamentals, values and solutions as vehicles to accelerate digital transformation, there is no “one-size-fits-all” approach that will work for each public system. Countries need to customise their approaches to local contexts and realities.

Marina Dimova, Governance Chief Technical Specialist, UNDP Bosnia and Herzegovina

Based on your experience, what is the most effective approach for digital transformation that governments in CEE can adopt? 

Governments in the CEE region have a long way to go before they can fully harness the dividends from digital transformation in the public sector, in part because many countries are simply following the blueprints of others. Even if there are a myriad of important lessons learnt, fundamentals, values and solutions as vehicles to accelerate digital transformation, there is no “one-size-fits-all” approach that will work for each public system. Countries need to customise their approaches to local contexts and realities.

Having in mind the highly complex governance system, this is particularly valid for Bosnia and Herzegovina.

Our approach to supporting digital transformation in Bosnia and Herzegovina entails several elements: 1) apply a “people first” perspective at all times in the transformation journey; 2) continuously demonstrate how technology can bring about fast, system-wide and tangible improvements in the way public services are delivered to the citizens and businesses; 3) recognise and promote thought leadership and success in digital governance; 4) support a symmetrical, inter-operable and modular e-government approach within the multipart country governance system that enables harmonised e-service delivery at local, cantonal, entity and state government levels.

 

What role will innovation play in establishing the public sector as we establish the new normal?

While innovation and modern approaches to governance (e.g. strategic foresight, social innovation, design thinking in public services, sandbox experimentation, etc.) are blooming in the CEE region, innovation in the public sector in Bosnia and Herzegovina is very limited. Increasingly, innovation labs are emerging as part of governments. Collaborative governance is on the rise, as a powerful means to involve many stakeholders, share knowledge and ideas.

To promote and nudge innovation in the public sector, UNDP will support the piloting of policy innovation clinics, which will provide the opportunity for policymakers to apply different, innovative, people-centred and inclusive approaches to policy making in the digital transformation area. UNDP is well equipped to support innovation in the public sector, including through the UNDP Accelerator Labs network. In the following months, UNDP will support experimentation in the public sector through innovation labs that will offer “safe haven” for government leaders and practitioners to ideate and experiment, re-imagine public services from a people-centred viewpoint, apply system thinking in practice, as well as use behavioural insights that could simplify and improve administrative processes.

 

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The new normal, as an unexpected change management force, will speed up the digital government processes in the whole region. 

It is evident that governments need to be digitally aware, well-equipped and agile in order to ensure the best quality public services. 

The pace of transformation might be sped up with the use of technological solutions that are now available at a reasonable cost. But Bosnia and Herzegovina and countries in the region still have a long agenda in terms of digital transformation, re-design of processes, digital infrastructure and creation of e-services.

Throughout our work, we have seen several key factors influence the pace, the extent and the successfulness of digital transformation in the SEE. 

 

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Political will, strategic leadership and commitment are crucial for establishing and advancing digital governments as well as innovating public sector processes. We worked with governments that had scarce resources and financial constraints, but still managed to introduce digital services, if and when digital transformation was a top priority for them.

Transformation efforts create the greatest results and impact when they are data-driven and citizen-centric. The use of data and citizen approach ensures adoption of well-informed policies that are focused on well-being and needs of a society as a whole.

Redesign of processes, operational models and culture within the public sector need to be based on people’s expectations. Personalized user experience should be at the core of every transformational step, while technology and innovative experimentation should be the main tools for shaping effective services.

 

Embracing new technological and digital solutions is of the utmost importance for the overall development of digital society. For that reason, continuous investments by governments in the development and improvement of public servants’ and citizens’ digital skills will largely determine the extent of an individual country's digital transformation level.

Digital transformation in SEE can ultimately improve the quality of life for each and every citizen. How? Through continuous improvement of public service delivery and user experience, greater citizen engagement, the inclusivity of all social groups, and an increase in transparency and accountability. 

 

Contact us:

Emmanuel Koenig

G&PS Leader, PwC CEE, Belgrade, PwC Serbia

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Agnieszka Gajewska

Global Leader Government & Public Sector, Warsaw, PwC Poland

+48 517 140 537

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