Good Practices and Innovations in Public Governance 2003-2011
Good Practices and Innovations in Public Governance 2003-2011 Good Practices and Innovations in Public Governance 2003-2011
Good Practices and InnovATIONS in Public Governance Recognizing that trade is an important economic driver, Saudi Arabia embarked on initiatives to facilitate trade, which have been greatly enhanced by e-government developments. The Solution SaudiEDI is an electronic gateway linking importers and exporters to customs departments, port authorities and other government agencies. Traders are now able to file manifests and declarations and to obtain approvals electronically at any time, from anywhere, via Web interface, Web upload and host-to-host connectivity solutions. Information management is another important aspect of this initiative. In addition to improving the monitoring and control of information, great strides have been made in streamlining documentation and filing clearance processes through automation and through incorporation of international standards and best practices. In 2007, the World Bank ranked Saudi Arabia thirty-third (out of 175 countries) in terms of ease of trading across borders. In 2008, however, Saudi Arabia’s ranking jumped to sixteenth. This was a tremendous achievement within a one-year period and can be attributed partly to the increased adoption of SaudiEDI services. The SaudiEDI initiative was proposed by the World Bank to help Saudi Arabia meet one of the conditions for its accession to the World Trade Organization (WTO). The implementation of SaudiEDI in 2007 was a great milestone of achievement for the Kingdom and has elevated its status as a global force in international trade. The Ministry of Finance, as one of the strategic stakeholders, took the lead in this initiative. The Ministry’s Public Investment Fund (PIF), which serves as an incubator for projects that require capital investments, invited consultants from the World Bank and elsewhere to sketch solutions for a Kingdom-wide automated trade clearance facilitation system. The consultants’ ideas were then customized to fit local needs. The Public Investment Fund had the foresight and vision to realize that Saudi Arabia’s import-export trade with the region and the world at large would grow significantly over the years, and that it was necessary to tie in with the WTO guidelines. PIF desired a paperless, automated, robust and scalable system that links the whole trading community and government agencies. Key strategies to ensure the successful implementation of SaudiEDI included: • Garnering the support and cooperation of all the key stakeholders at various levels. • Changing management in terms of changing mindsets, work processes and tools. • Providing end-user training in IT literacy and SaudiEDI applications. 92
2010 Category 1: Saudi Arabia • Upgrading Internet services and the telecommunications infrastructure services in the Kingdom. • Launching aggressive marketing, hand-holding and support services. • Recruiting and training a competent and committed local team. Success breeds success. As importers and exporters started using the SaudiEDI system and became more familiar with its functionalities, they started providing feedback to improve the services even further. The SaudiEDI team acted on suggestions whenever possible, to satisfy users and help expand the customer base. Replicability and Sustainability The sustainability of SaudiEDI depends on support from both government agencies and members of the trade community. Already, wherever the e-trade services have been implemented, they have been enthusiastically embraced by importers and exporters. More government agencies are now approaching and seeking to integrate with SaudiEDI. While SaudiEDI is already working with some to replicate certain elements of the initiative, other agencies will be scheduled into the project as soon as possible based on critical need and priority. The laws of Saudi Arabia have been revised recently to accommodate e-transactions and digital signatures, which will pave the way for wider national use of similar systems in the future. Lessons Learned Three important lessons about innovation were derived from the process of launching SaudiEDI. First is the need for solid commitment and common goals on the part of the key stakeholders, from the very start. The key stakeholders must be involved and hold regular steering committee meetings if an initiative is to stay on course and advance in a timely manner. Second, one very significant factor that contributed to the success of SaudiEDI was the trust and close collaboration with related government agencies and private-sector experts. In any undertaking, flexibility, understanding of each other’s difficulties and needs, and positive approaches to the tasks at hand can help ensure mutually beneficial enterprises. The third and perhaps most valuable lesson associated with this initiative concerns the capacity of the Kingdom to implement a project of such large dimensions. The success of SaudiEDI has proven that a large-scale IT project, involving many stakeholders in an innovative and revolutionary change in government operations, is possible in Saudi Arabia. In going far beyond simple Web portals with simple interactive and informational services, and instead creating a system for true end-to-end e-trans- 93
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<strong>Good</strong> <strong>Practices</strong> <strong>and</strong> InnovATIONS <strong>in</strong> <strong>Public</strong> <strong>Governance</strong><br />
Recogniz<strong>in</strong>g that trade is an important economic driver, Saudi Arabia embarked on<br />
<strong>in</strong>itiatives to facilitate trade, which have been greatly enhanced by e-government<br />
developments.<br />
The Solution<br />
SaudiEDI is an electronic gateway l<strong>in</strong>k<strong>in</strong>g importers <strong>and</strong> exporters to customs departments,<br />
port authorities <strong>and</strong> other government agencies. Traders are now able to<br />
file manifests <strong>and</strong> declarations <strong>and</strong> to obta<strong>in</strong> approvals electronically at any time,<br />
from anywhere, via Web <strong>in</strong>terface, Web upload <strong>and</strong> host-to-host connectivity solutions.<br />
Information management is another important aspect of this <strong>in</strong>itiative. In addition<br />
to improv<strong>in</strong>g the monitor<strong>in</strong>g <strong>and</strong> control of <strong>in</strong>formation, great strides have been<br />
made <strong>in</strong> streaml<strong>in</strong><strong>in</strong>g documentation <strong>and</strong> fil<strong>in</strong>g clearance processes through automation<br />
<strong>and</strong> through <strong>in</strong>corporation of <strong>in</strong>ternational st<strong>and</strong>ards <strong>and</strong> best practices.<br />
In 2007, the World Bank ranked Saudi Arabia thirty-third (out of 175 countries) <strong>in</strong><br />
terms of ease of trad<strong>in</strong>g across borders. In 2008, however, Saudi Arabia’s rank<strong>in</strong>g<br />
jumped to sixteenth. This was a tremendous achievement with<strong>in</strong> a one-year period<br />
<strong>and</strong> can be attributed partly to the <strong>in</strong>creased adoption of SaudiEDI services.<br />
The SaudiEDI <strong>in</strong>itiative was proposed by the World Bank to help Saudi Arabia meet<br />
one of the conditions for its accession to the World Trade Organization (WTO). The<br />
implementation of SaudiEDI <strong>in</strong> 2007 was a great milestone of achievement for the<br />
K<strong>in</strong>gdom <strong>and</strong> has elevated its status as a global force <strong>in</strong> <strong>in</strong>ternational trade.<br />
The M<strong>in</strong>istry of F<strong>in</strong>ance, as one of the strategic stakeholders, took the lead <strong>in</strong> this<br />
<strong>in</strong>itiative. The M<strong>in</strong>istry’s <strong>Public</strong> Investment Fund (PIF), which serves as an <strong>in</strong>cubator<br />
for projects that require capital <strong>in</strong>vestments, <strong>in</strong>vited consultants from the World Bank<br />
<strong>and</strong> elsewhere to sketch solutions for a K<strong>in</strong>gdom-wide automated trade clearance<br />
facilitation system. The consultants’ ideas were then customized to fit local needs.<br />
The <strong>Public</strong> Investment Fund had the foresight <strong>and</strong> vision to realize that Saudi Arabia’s<br />
import-export trade with the region <strong>and</strong> the world at large would grow significantly<br />
over the years, <strong>and</strong> that it was necessary to tie <strong>in</strong> with the WTO guidel<strong>in</strong>es. PIF<br />
desired a paperless, automated, robust <strong>and</strong> scalable system that l<strong>in</strong>ks the whole trad<strong>in</strong>g<br />
community <strong>and</strong> government agencies.<br />
Key strategies to ensure the successful implementation of SaudiEDI <strong>in</strong>cluded:<br />
• Garner<strong>in</strong>g the support <strong>and</strong> cooperation of all the key stakeholders at various<br />
levels.<br />
• Chang<strong>in</strong>g management <strong>in</strong> terms of chang<strong>in</strong>g m<strong>in</strong>dsets, work processes <strong>and</strong><br />
tools.<br />
• Provid<strong>in</strong>g end-user tra<strong>in</strong><strong>in</strong>g <strong>in</strong> IT literacy <strong>and</strong> SaudiEDI applications.<br />
92