Digital transformation for public sector in Colombia. A welfare challenge

borrowers will be better off with the mortgage specialised banks (BECHS) but if the interest rate goes up due to macroeconomic instability and financial deregulation it would remove the potential consumers from the marketplace. The future progress of the housing finance activity will depend on the effectiveness of collecting better information of mortgages markets, maintaining the UVR structure of indexed units, extending the housing finance to a larger segment of the population and the reduction of the interest rates on housing finance.

Bibliography

Alm, J., Follain, J (1984). Alternative Mortgage instruments, The Tilt Problem and the consumer welfare, Journal of financial and quantitative analysis 19: 113-26

Benston, G. J (1998). Regulating Financial Markets: A critique and Some Proposals, Hobart Paper No. 135, London, Institute of Economic Affairs.

Bester, H (1985). “Screening vs. Rationing in Credit Markets with imperfect information”. American Economic Review, 75(4): pp 850.55

Bueckley, R., B. Lipman & T. Persaud (1993). Mortgage Design under inflation and real wage uncertainty: the use of a duel index instrument, World Development 21(3): 455-64

Buckle, M., Thompson J. (2004). The UK Financial System: Theory and Practice. Manchester. Fourth Edition. Pp 98-116

Center for Housing Studies (2004). The State of Mexico Housing. Center for Housing Studies of Harvard University.

Davies, G.W. (1978). Theoretical approaches to filtering in the urban Housing market, in Bourne, L.S. and Hitchcock, J.R (eds.) pp 139.

Gelther, Miller (2001). Commercial Real State Analysis and Investments. University of Cincinnati. South-Western, Thompson Learning. Pp 83-101, 405-447

Inter-American Development Bank, (2003). Urban Social Housing Program. (CO-0241) Loan Proposal.

International Monetary Fund (2005). Financial System assessment update, including reports on the observance of standards and codes on the following topics: Securities, regulation, insolvency and payment system. http://www.imf.org/external/pubs/ft/scr/2005/cr05287.pdf pp 9-17.

Lecce, D (2004). Economics of the Mortgage Market. Perspectives of Household decision-making. Blackwell. Blackwell publishing pp 28-49, 132-179

Llewellyn, D (1999). The Economic Rationale for Financial Regulation. FSA Paper pp 30-36

Lea, M.J (1998). “Models of Secondary Mortgage Market Development”, in M Watanabe, ed., New Directions in Asian Housing Finance, International Finance Corporation.

/www.freepik.es FOTOS:

DIGITAL TRANSFORMATION FOR PUBLIC SECTOR IN COLOMBIA. A WELFARE CHALLENGE By: Julián Ricardo Romero Garibello

Abstract

While it is true that the present article is intended to analyze current situation of Digital Transformation for public sector in Colombia, public finances and economic conditions are strongly present through the document given that, this topic is highly sensitive for development particularly in a scenery where commercial finances have shown an incredible advance standing at forefront in Digital Transformation. Elements like apps, fintech, IoT, ITCs and 4.0 Industries are here to stay, it is not more a potential for future, it´s future today where each decision, each platform, each project be directed in every action looking for a real welfare.

Keywords Digital Transformation, Fintech, Public Sector, IoT, Welfare.

Introducción Apparition of neoliberalism in 90s years involved a series of deep economic reforms particularly for Latin American countries, these changes in their origins generated a discussion where promises and expectations probably where overestimated, announcing the great polemic and critics that this proposal would bring worldwide. Perhaps the macroeconomic instability that precede Washington consensus could result undeniable, the budgetary chaos was a constant into public sector, where phenomena like corruption, growing debt, unemployment, inflation, inefficiency, disorder and macroeconomic imbalance are something that everybody should be used to. This background made possible start for the discussion that was looking for solutions for these reiterative problems, proposal, that slowly was reflected on International Institutions (IMF and WB) decisions and countries like United States at the end of eighties decade and the beginning of nineties decade. Stiglitz (2002) like none other made a review from these policies in his masterpiece “Globalization and its discontents” highlighting mistakes on its consequences that could be assessed as tragic, even like a disaster for countries in South Asia and Latin America. Nonetheless, the reader of this article should consider facts before and after of neoliberal of politics and economics in some countries, absolutely is not the intention of the author taking part on the discussion for or against these decisions, in fact, the objective of this article is developing a proposal taking advantage of development of new technologies in the frame of Digital Transformation, making real an initial development for public sector for people’s welfare.

Literature Review- Method

Manterola et al (2013) in Systematic Reviews of the Literature: What Should be Known About Them, states that, this type of research design is efficient. It can increase estimating power and precision, consistency and generalization of the results, as well as strictly evaluating the information published. Drawing that reason and considering the small amount of academic and official information existing around this topic specifically a Review of Literatur works like a gootd method of research, no obstanly, conclussions could redirect this methodology towards other research ways.

Amoroso et al (2020) Amoroso et al (2020) raise ideas on public administration and digital transformation beginning onthe role of citicenz, in this paradigm, they are not pasive actors that limite their participation on watching creation of policies and measurements intended to satisfy requirements of social contract, here, they should be active actors being partners in the construction of this process.

In addition authors mention fourteen services that should work currently or/and should be established soon in Iberoamerica and Europe:

1. Unified telecommunications service. 2. Managed security service. 3. ICT infrastructure hosting service 4. Hybrid cloud service. 5. Unified email service. 6. Multichannel citizen service. 7. Registry management service. 8. Notification management service.

9. Payroll management service. 10.Integrated personnel management service. 11.Common economic-budget management service. 12 Common service for the generation and validation of electronic signatures. 13.Electronic document and file management service. 14.Electronic file management service.

Public practices, The Colombian Case Information system for public sector in Colombia has brought changes being undeniable, but, a valid question in this point is: Are enough these measurements?, I mean, laws like 617 (2000), NTCGP 1000 (Norma Técnica Colombiana Gestión Pública) and MECI (Modelo Estandar de Control Interno) have actually reached their aim to modernize and generate a scheme of efficiency?. Moreover, platforms like CHIP Contaduría General de la Nación, (2020), FUT, SIRECI SIRECI, (2020) and local systems of reports and auditing are accomplishing to their mission, or these have become into a mechanic and tortuous process for public officials, auditors, and institutions, so could be admissible ask

for the useful on these instruments?, that in the bottom of this discussion and nowadays could converge into a bureaucratic disease, inefficient and something that is worse, a mountain of informatic and physical procedures that make hard reach the principles of public procurement Colombia Compra (2020), even more, the objectives of welfare that State should supply to its citizens in the most pure form of social contract.

Abdala, (2019) brings to this discussion AI (artificial intelligence) referring its use in the internal State Administration highlighting practices in America and Europe where cases like boots serve citizens predicting requirements and solutions on a gamma of services.

For the Colombian case, GECTI (2020) points the initiative Gobierno en línea that involves the next objective: ““Contribute to the construction of a more efficient, more transparent and participatory State, which provides better services to citizens and companies, through the use of Information and Communication Technologies through an strategy based on:

Actions focused on government entities; Presence on the web by State entities; Y Prioritization of online information

Figure 1 resumes the Regulations related to the Digital Government strategy:

Source: GECTI (2020)

A good example for applications coming from public sector In Colombia, is the public procurement that is ruled by principles intended to improve good practices in the permanent search for efficiency and development for the country:

Figure 2. Public Procurement Principles (Colombia)

Source: Colombia Compra Eficiente (2010)

Despite of previous elements could be reasonable asking these questions:

Colombian people perceives Transparency in Public procurement? this question is suitable because the way to communicate this process is related to websites with specific requirements to access information, fact that makes hard state that principles of transparency and publicity are being taken into the best way?, I mean, in an environment fulfill in are enough websites performed by engineers who program in a meaningful way for a few persons could result in a series of difficulties that a series of questions for officials could show a naked reality that submerges the job into an unintelligible series of procedures that have not any sense for them and even less for a common citizen. Is curious when reader analyzes previous principles, specifically “publicity” because of the practical implications starting for these

information, apps, IoT, CTei, and new trends, questions: • Did You know these instruments for public information (CHIP, SIRECI, FUT)? • Have You seen these websites before? • How often do You search public information in these sites? • How useful do You consider these websites?

Perhaps these questions could be useful for a lasting research, however this is a review article within a asking frame; nonetheless, if you are a Colombian reader and you do not have any relation to public sector, even more, if you are in public sector and you are not close to public finances is highly probably that you do not have any idea on what are we talking about when we are referring to this websites.

Figure 3. Public Procurement Principles (Colombia)

Source: Colombia Compra Eficiente (2010)

According to previous principles, the idea of involving Digital Transformation through IT covers a wide series of advantages that punctually are featured in next title:

The search for new models are present in literature, Ocampo (2015) refers to challenges forthcoming in 21st century, an age where conditions will be substantially different in comparison to 20 century, habits, politics, economics, the concept of sustainability, the social responsible and new ways of integrations beyond borders, even the way of democracy or the schemes of nations as we know now, can considerably change:

Despite of the “neoliberal medicine” diagnosed and attacked symptoms of macroeconomic imbalance with acts like:

Ley 617 de 2000, Decreto 111 de 1996 in public finances, besides involved another measurements across every area of the government, some signs of problems persist, even some of them are more serious than 20 or 30 years ago, in this frame, an imminent social upheaval seems appear in horizon with claims that each day are more difficult to ignore, in this order and not limited to, this country has inescapable problematic that require soon answer:

Looking forward, a new proposal.

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. Public procurement Pension System Corruption Clientelism Lack of Legitimacy Tax Equity Unemployment Healthcare System Currency Instability (depreciation) External debt Quality education coverage Infrastructure Economic development Development in CTeI Twin deficits School feeding Legal Uncertainty Justice System Jails overcrowding Crime growing Excess of regulations

Obviously, problems are not limited to the previous list, in fact, every situation that can be written in a Macondian Story, despite it sounds unbelievable Colombian problems are highly related to Latinamerican problems, is undeniable that historic weaknesses are common for this part of the world, is not the aim of this part quoted Las Venas Abiertas de América Latina, nonetheless there are undeniable conditions that this people suffer; but, is the removal of government an available solution?, absolutely not in my opinion, in an age that claims for problems solutions good government and legitimized institutionalism could be an inclusive option where each citizens in this nation has a role, not limited on criticism, better, overcoming differences and going beyond giving from trust to a common project in every stage of public performance.

Perhaps at this point the reader start to consider a deep reflect on what implies the challenges for public sector in the frame of a digitalized citizenship where the absence of social stigma and control are present where algorithmic truth can prevail over democratic relations Varona (2018) quoted by Amoroso et al (2020) .

Could be risky the idea of including in this document one exclusive proposal intended to solve each item featured before, nonetheless, is practical propose a scheme that supplies a frame where each topic assessed or forthcoming can be solved through a strategical view. In this order, this proposal involves a center on digital transformation that a planetary system acts like a gravity center to attract the next developments:

1. Apps 2. Fintech 3. Artificial Intelligence 4. ITC (Information Tech and Communication)

In small spheres any situation can initially be included to be processed across democratic participation where digital citizens are active partners in the way to construct requirements with a final consumer able to understand and appropriate this information.

Figure 4. Digital Transformation for Public Sector

Source: Own elaboration (2020)

At the end the digital product must across three filters involved into general awareness trying to be:

1. Clear 2. Useful And the las one, being the most important the search for improving human welfare within a frame of health, education, safety, employment and purchase power.

Conclusions The result of this articles is given by the discussion of potential influence of Digital Transformation in the Public Sector, that if being truth could be broad to a wide series of problem situations that involve politics, economy, health, democracy, education, security and each topic in human development that is aborded by public decisions. The colombian case is a good sample for a started road but plenty of forthcoming challenges that can be broaded to Latin America recognizing benefits coming from Digital Transformation.

References

(GECTI), G. d. (2020). El impacto de herramientas de inteligencia artificial: un análisis en el sector público en Colombia. Obtenido de https://guia.ai/wp-content/uploads/2020/05/GECTI-El-impacto-de-herramientas-de-inteligencia-artificial.pdf Abdala, B. (2019). La política de la Inteligencia Artificial: sus usos en el sector público y sus implicancias regulatorias. Obtenido de https://www. cippec.org/wp-content/uploads/2019/10/185-DT-Abdala-Lacroix-y-Soubie-La-pol%C3%ADtica-de-la-Inteligencia-Artifici....pdf Albrieu, R. (s.f.). Inteligencia artificial y crecimiento económico. Oportunidades y desafíos para Colombia. Obtenido de https://news.microsoft.com/uploads/prod/sites/41/2018/11/ IA-y-Crecimiento-COLOMBIA.pdf

Amoroso, e. a. (Julio-septiembre de 2020). Digital Transformation is Analogue Because it is Driven by People. Obtenido de https://rctd.uic.cu/rctd/article/view/80/22

Colombia Compra, E. (2020). Sintesis normativa y jurisprudencia en contratación. Obtenido de https://sintesis.colombiacompra.gov.co/sintesis/1-etapa-precontractual-principios-de-la-contrataci%C3%B3n-estatal Contaduría General de la Nación, C. (2020). Consolidador de Hacienda e Informaci{on Pública. Obtenido de https://www.chip.gov.co/schip_rt/index.jsf

Gupta, e. a. (2017). REVOLUCIONES DIGITALES EN LAS FINANZAS PÚBLICAS. Obtenido de FONDO MONETARIO INTERNACIONAL: https://www.elibrary.imf.org/view/IMF071/243049781484315224/24304-9781484315224/binaries/9781484315224_DigitalRevolutions_Spanish_Excerpt.pdf?redirect=true

Manterola et al. (March de 2013). Systematic Reviews of the Literature: What Should be Known About Them. Obtenido de DOI: 10.1016/j.cireng.2013.07.003: https://www.elsevier. es/en-revista-cirugia-espanola-english-edition--436-articulo-systematic-reviews-literaturewhat-should-S2173507713000914

SIRECI. (2020). Sistema de Rendición Electrónica de la Cuenta e Informes. Obtenido de https://www.contraloria.gov.co/web/sireci

Samuels, M. (2020). Public Sector It: The Road to Digital. Computer Weekly, 19.