Different No More: Country Spreads in Advanced and Emerging Economies

This paper investigates the potential of information technology to improve public service delivery and empower citizens. The investigation uses two randomized natural experiments in the renewal of national identification cards by the Bolivian Police. The first experiment arises from the random assignment of police officers and applicants to a manual or digital renewal process, which is identical in all other aspects. The second experiment arises from technical failures in the digital renewal process, which allow police officers to change from the digital to the manual renewal process randomly across renewal days. The efficiency of public service delivery is measured in renewal success rates (which average to a strikingly low rate of 72 percent in the sample) and the time it takes to renew an identification card. The findings show that applicants who were randomly assigned to the digital renewal process were on average 12 percentage points more likely to complete it, compared with those who were randomly assigned to the manual process. Further, successful applicants who were randomly assigned to the digital process took on average 31 percent less time to complete the process, compared with those who were randomly assigned to the manual process. The investigation finds that information technology significantly lowers barriers to accessing national identification cards, and promotes more equitable provision across the population. The findings suggest that information technology might achieve these goals by introducing efficiencies (such as reducing administrative shortcomings and transaction costs) and limiting the exercise of discretion by police officers in the renewal process.

[1]  Sendhil Mullainathan,et al.  Obtaining a Driver's License in India: An Experimental Approach to Studying Corruption , 2007 .

[2]  B. Frey Why do high income people participate more in politics? , 1971 .

[3]  K. Stiroh Information Technology and the U.S. Productivity Revival: What Do the Industry Data Say? , 2001 .

[4]  T. Bresnahan,et al.  The Economics of New Goods: National Bureau of Economic Research Studies in Income and Wealth , 1997 .

[5]  S. Sequeira On the waterfront: An empirical study of corruption in ports , 2009 .

[6]  A. Colecchia,et al.  ICT Investment and Economic Growth in the 1990s: Is the United States a Unique Case? A Comparative Study of Nine OECD Countries , 2002 .

[7]  S. Machin,et al.  New Technology in Schools: Is There a Payoff? , 2006, SSRN Electronic Journal.

[8]  W. Douglass Shaw,et al.  Searching for the Opportunity Cost of an Individual's Time , 1992 .

[9]  Zvi Griliches,et al.  R&D and Productivity: The Econometric Evidence , 2007 .

[10]  H. Mansilla La policía boliviana : entre los códigos informales y los intentos de modernización , 2003 .

[11]  S. Duryea,et al.  The Under-Registration of Births in Latin America , 2006 .

[12]  Jakob Svensson,et al.  Are Corruption and Taxation Really Harmful to Growth? Firm-Level Evidence , 1999 .

[13]  John Van Reenen,et al.  Productivity and ICT: a review of the evidence , 2006 .

[14]  John Van Reenen,et al.  The Effects of Technical Change on Skills, Wages and Employment: a Survey of the Micro-Econometric Evidence , 2002 .

[15]  P. Schreyer The Contribution of Information and Communication Technology to Output Growth: A Study of the G7 Countries , 2000 .

[16]  J. Svensson Who Must Pay Bribes and How Much? Evidence from a Cross-Section of Firms , 1999 .

[17]  Simeon Djankov,et al.  An Empirical Study of Corruption in Ports , 2010 .

[18]  S. Sundén,et al.  Towards a Framework for Analysing Factors Influencing Sustainable Use Information and Communication Technology Applied for Developing Countries in a Rural Context , 2006 .