IMF Notes

The Political Economy of GovTech

Author/Editor:

Arthur Silve ; Mariano Moszoro

Publication Date:

July 21, 2023

Electronic Access:

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Summary:

The digitalization of public services, known as GovTech, can disrupt traditional mechanisms to promote economic development (for example, financial inclusion, education, and health care), improve the delivery of public services, and expedite development objectives. For GovTech to be successful in enhancing the public sector's efficiency, transparency, and inclusiveness, its design and implementation require that private interests be aligned with the overarching goal of a “citizen-oriented” digitalization. Because the interests of the state and private providers are often antagonistic, the social dividends from GovTech remain contingent on implementing the appropriate market structure through adequate property rights and regulatory oversight.

Series:

IMF Notes No 2023/003

Subject:

Economic sectors Technology

Frequency:

occasional