Debates on next year’s budget priorities have begun in earnest, and it has been publicly stated that both the national government and the local government sector must find ways to work more efficiently and reduce public administration costs. I believe that the digitization of state and local government processes is the most effective way to improve the quality of public administration, make citizens’ daily lives easier, and make state and local government agencies more modern and productive.
However, it is very important to emphasize that we need meaningful digitization that simultaneously improves organizational processes and saves resources. Currently in Latvia, IT projects are often carried out simply because “it’s modern” or “that’s how it’s done now,” without considering how the institution or organization itself will change. If the prevailing view within an organization is that an IT project is being implemented solely because someone demands it, then such a project is often unsuccessful and becomes a burden on the government agency or local government.
If processes and employee responsibilities do not change after the project is implemented, the head of the institution must find the resources to continue supporting existing specialists as well as the newly created digital system. Society certainly benefits when a new e-service is introduced, and people do not have to go, for example, to a distant institution to receive it; however, this does not always reduce the expenses of the municipality or institution.
Why do I believe that digitization is one of the solutions for reducing public administration costs and working more efficiently?
First of all, digitizing processes allows us to define all processes more precisely and understand exactly what the local government or agency is paying for. For example, the number of people with special needs receiving free rides on public transportation is so high that it is practically nonexistent in reality. As previously reported by the media, in Riga in 2018, it was found that out of 11.8 million passengers, 1.6 million were people with disabilities whose tickets were paid for by the state. For some carriers, this figure was as much as five times higher than that of their competitors. In total, nearly 20 million euros were paid out for this, and it is quite safe to say that a large portion of them were “fake disabled people,” and due to a flaw in the system, public funds were defrauded. Digitizing these processes makes it possible to identify and prevent this type of potential fraud, but the political will to stop it must come from the leadership.
A similar situation exists with school meals. Local governments in Latvia provide free lunches to many students, but many local governments do not fully know how many students use their allocated free lunches each day. If each meal served is not actually tracked, payments are often made for the previously estimated volume of meals, even though in reality a significantly smaller number of students actually use the meal service. In this case as well, digitization makes it possible to pay only for what is actually ordered; however, the decision to change the system must be made by the institution’s management.
It is important to understand that a review of all institutional or municipal processes should be conducted annually, as the situation regarding the development of various e-services in Latvia is changing quite dynamically. If only 5% of the population uses a particular service electronically, that is one situation; however, if the number of users of this e-service has already reached 80%, the division of responsibilities can be reviewed, and a person who previously handled certain duties can be entrusted with others, eliminating the need to hire a new professional from outside.
The latest unemployment figures show that the unemployment rate in Latvia has reached its lowest level since the restoration of independence, and while just a few years ago we could speak of full employment in Riga and the major cities, unemployment rates are currently low even in the most remote regions of Latvia, including Latgale. Regional municipalities will also have to consider how to make their processes more efficient, as opportunities to attract new people may not exist. I believe that in the coming years, employees will be the most important resource for local governments and state institutions, and institutional leaders will have to carefully consider how to attract and develop this resource. Meaningful digitization can certainly help in this process.
