The Necessity Of eGovernment

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The Necessity Of eGovernment

Article by William Fenwick,* Esq.,

Erin John** & Jason

Stimac***

Abstract

This paper presents the positive and negative impact

information technology (IT) has had on governance in the United

States and argues that effective and efficient eGovernment is a

necessity created by the increased and widespread use of IT in the

private sector.

Part II of this paper discusses transaction costs, describes

the functions of governance, and discusses other elements that are

causing the government to lose ground. Part III proposes

eGovernment as the solution to the problems created by the

increased use of IT, provides a brief definition and background of

eGovernment, and discusses why eGovernment is necessary to keep

social transaction costs affordable while increasing the

transparency and effectiveness of government's obligation to

facilitate a civil society. Part IV covers some of the problems

that eGovernment faces, such as privacy concerns and the distrust

generated within the public by the government's failure to

follow their own guidelines, and predicts the possible consequences

of not having eGovernment.

For economic activity to be sustained over time, government,

in one way or another, must provide the context that enables market

transactions and precludes destructive abuses. The power of IT,

rapid communication, and the conversion of wealth from ownership of

physical property to intangible property means governance must

adapt. The international race for growth and prosperity, through

trillions of transactions, will be won by countries with governance

best designed to enable those transactions by combining efficiency

(minimized transaction costs) with trust (security of

information).

INTRODUCTION

For more than 40 years, the proponents of computerization have

promised significant benefits from the increased use of information

technology (IT). Many could not contain their enthusiasm and faith

in the idea that IT would enable improved speed, prospective

recording and storage capacity, and the potential for nearly

limitless decision making capabilities. The possibilities for

convenience,...

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