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Government CIO Outlook | Monday, March 15, 2021
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According to recent research, the amount of foreign direct investment a country attracts is related to the accessibility of government information and services online.
FREMONT, CA: The ability to renew the passport or driver's license, pay a tax bill, or access government information with a click of a button or swipe of a computer, at any time and from any place, has become increasingly necessary during the COVID-19 pandemic. Beyond the apparent quality and accountability benefits offered by digital government systems, "e-government" will potentially make an economy more desirable to foreign investors.
According to recent research, the amount of foreign direct investment a country attracts is related to the accessibility of government information and services online. This positive effect is expected to be greater in many countries as the pandemic pressures policymakers to have more funding. If the pandemic forces policymakers to offer even more resources and information online, this beneficial effect is anticipated to develop in many nations.
[vendor_logo_first]The presence of e-government facilities tends to stimulate the inflow of foreign direct investment in 178 host countries over a 16-year period, according to a study of foreign direct investment inflows in 178 host countries. In particular, countries that introduce and embrace strong information and communication technology, regardless of their level of growth, draw more inflows than countries with less secure internet connectivity.
Many people around the world still do not have internet connectivity. According to the 2020 United Nations E-Government Development Index, almost half of the 193 countries covered by the index rank below the global average of 0.60, with Africa's average index score nearly a third lower than the global average. Denmark, the Republic of Korea, and Estonia are among the world leaders in e-government and electronic information distribution. Nonetheless, a host of developing countries, including Bhutan, Bangladesh, and Cambodia, have risen to the forefront of e-government infrastructure growth. Those countries moved from the index's middle tier to the top tier.
Those countries climbed from the index's middle group to become some of the highest-ranking developed countries by 2020. According to the research, countries should emphasize creating e-government services as part of their foreign direct investment policy. Governments must advocate for improved information and communications technology networks to bridge the digital gap between high- and low-income societies and offer digital connectivity to all. This is an important part of delivering successful e-government services. Governments should work together to make the internet more available, usable, and safer for all.
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