CASE STUDY

ON

E-Governance in Nepal
Master Plan and Policies

Prepared By
Sasis Kumar Chaudhary

Rewati Raman Timsina

BCA 7th Semester

Submitted To
Mr. Nabin Shrestha

Coordinator, BCA Department

February, 2024

Itahari Namuna College

Affiliated to Tribhuvan University
Itahari, Sunsari
 ACKNOWLEDGEMENT

I would like to express my sincere gratitude to all those who have contributed to the
completion of this case study on "E=Governance in Nepal and Master plan and policies".

I extend my heartfelt thanks to Mr. Nabin Shrestha, for the invaluable guidance, support,
and insightful feedback throughout the research process. His guidance and feedback
contributed to enhancing the quality and rigor of this case study.

Last but not least, many thanks go to all teachers, friends, and guardians who directly or
indirectly helped in achieving the goal. I would like to thank all the guidance and support,
which helped in the completion of this case study.
Table of content
Introduction……………………………………………………………………………………1

Challenges of E-Governance Implementation………………………………………………..4

Introduction

Nepal, a developing country in South Asia, has embarked on a digital transformation journey
to improve Governance, enhance service delivery, and promote inclusive development
through e-governance initiatives. With a vision to leverage technology for the benefit of its
citizens, the Government of Nepal has implemented various policies and programs to
modernize administrative processes and bridge the digital divide. In recent years, Nepal has
made significant strides in adopting e-governance solutions to enhance efficiency,
transparency, and accessibility in public service delivery. Recognizing the potential of
technology to transform Governance, the Government of Nepal has implemented various e-
governance plans and policies aimed at improving citizen engagement, streamlining
administrative processes, and promoting digital inclusion.

In contrast to the general image of the country, Nepal has been adequately open to the use of
technology. Nepal had its first computer brought in for conducting the census in 1971. The
computer that was brought in was the IBM 1401, the first of IBM's 1401 series of mainframe
computers—along with the acquisition of the IBM machine, Nepal also established the
National Computer Center in 1974. The country already had come up with its first IT policy
in the year 2000. The Government has recognized ICT as a sector of primary importance.
There have been explicit efforts to establish a level of e-governance in the country since the
IT Policy of 2000. The possibility of enhancing the country's development through e-
Governance has been acknowledged. Some landmark progress has been achieved, such as
establishing the Government Integrated Data Centre (GIDC), standardization documents, and
Public critical infrastructure. The country has also received very generous support from
international agencies. Organizations like the International Development Research Centre
(IDRC), the United Nations Development Programme (UNDP), the Korea International
Cooperation Agency (KOICA), the Asian Development Bank (ADB), and several others
have been actively involved in e-governance implementation projects in Nepal. There has
also been a general improvement in the IT industry in Nepal, with several foreign IT
companies establishing subsidiaries there.
The wireless communication infrastructure of Nepal has also significantly improved, with
mobile telephone access reaching all 75 districts of the country and a 4G LTE network
becoming available in January of 2017 ('Nepal Telecom launches 4G service', 2017). The
wireless broadband master plan drafted by ITU suggests a strategy for universal broadband
connectivity within Nepal by 2020 (ITU, 2012). Nepal also moved up from low EGDI to
middle EGDI in 2016. Despite the efforts from the Government, support from international
agencies, and the general enthusiasm towards ICT in the country, the progress in e-
governance implementation in Nepal has yet to be entirely successful. The progress is
lagging even when comparing to neighbors like Bhutan and Bangladesh with the E-
government Development Index (EGDI) of only 0.3458 as per the United Nations report of
2016 compared with 0.3799 and 0.3506 of Bangladesh and Bhutan, respectively (United
Nations Department of Economic and Social Affairs, 2016). The country is ranked 89 on the
UN EGDI rankings.
CHALLENGES OF E-GOVERNANCE IMPLEMENTATION:
LITERATURE REVIEW

The challenges of e-governance in Nepal are a well-discussed topic. Considering a country

that has a high illiteracy rate, low per capita income, political instability, and adverse
geography, it is expected that e-Governance implementation in Nepal would have significant
challenges to overcome. This is the theme with most of the literature available. The main
challenges that have been discussed point towards socio-economic issues such as low literacy
rate, low level of income, lack of infrastructure, and lack of skilled human resources, among
others. Political issues such as the ongoing political transition and the lack of political vision
and leadership toward guiding the progress in e-governance are also mentioned in most
literature.

THE HISTORY OF E-GOVERNANCE ACTIVITIES IN NEPAL

The first IT policy of the GoN was drafted in 2000. The IT Policy 2000 underwent
numerous amendments and changes, coming up to the IT Policy 2015. The major problem
with implementing IT Policy 2000 was political and social instability. Several infrastructures
and institutions, namely HLCIT, NITC, MoEST, MoIC, MoGA, and MoF, initiated the
GMP. KIPA then prepared the report. The ETA 2008, considered an outstanding success in
IT regulation in Nepal, was crucial for implementing EG. The Right to Information Act of
2007 also supported the implementation of EG. The establishment of GIDC under NITC was
possible with the assistance of KOICA. The construction of IT Park in Banepa, close to the
capital, became an additional institution formed under this policy; however, the plan could
have been more successful. The government-owned NTA later privatized and changed into
NTC and named Nepal Telecom. The IT policy of 2010 was enacted following the failure of
the IT policy of 2004. Further to the eGMP, the draft of the wireless broadband master plan
2012 was prepared by ITU for the powerful use of broadband generation in Nepal and that
stands today as the most vital strategic planning of EG in Nepal. To date, many policies, acts,
and regulations are being published in Nepal for the betterment of ICT services. However,
the IT policy of 2015 is still the latest in implementation. The policy was proposed to
withstand the foundation for the vision of Digital Nepal.
E-Governance Master Plan of Nepal

E-Governance in Nepal has steadily evolved from the computerization of Government

Departments to initiatives that encapsulate the finer points of Governance, such as citizen
centricity, service orientation, and transparency. Lessons from previous e-governance
initiatives have been essential in shaping the country's progressive e-governance strategy.
Due cognizance has been taken of the notion that to speed up e-governance implementation
across the various arms of Government at National and Local levels; a program approach
needs to be adopted, guided by a shared vision and strategy. This approach could enable
considerable cost savings by sharing core and support infrastructure, enabling
interoperability through standards, and presenting a seamless view of Government to
citizens. E-Governance Master Plan (e-GMP) takes a holistic view of e-Governance
initiatives across the country, integrating them into a collective vision, a shared cause.
Around this idea, a massive countrywide infrastructure reaching down to the remotest of
villages is evolving, and large-scale digitization of records is taking place to enable easy,
reliable access over the internet. The ultimate objective is to bring public services closer
home to citizens, as articulated in E-GMP's Vision Statement. Make all Government services
accessible to the commoner in his locality through standard service delivery outlets, and
ensure efficiency, transparency, and reliability of such services at affordable costs to realize
the basic needs of the commoner.

The Current Situation of E-Governance in Nepal

Nepal IT Policy 2000 aims to interlink all ministries, departments, and offices with the GoN
and the Internet to provide services online. The GMP Consulting Report prepared by KIPA
was figured alongside the most feasible government projects. The report's mission was to
provide value-added, quality service through ICT. In addition, the policy highlighted the use
of e-commerce and distance education with having EG as the government's facilitator role.
ADB reinforced the "transformation" program, prioritizing twenty-two services, including
NID, driving license, LRMS, and rural e-community. In the words of Bekkers, EG is the
primary action plan to improve Nepal's fragile government. Since the outcomes of using
ICTs in public organizations are specific and situation-dependent, there is a significant need
to record evidence of some pilot EG program implementations for future reference. The
availability of updated and trustworthy information on government websites needs to catch
up. The innovative strategies in the EG projects ensure that poor delivery services do not
impact the government services; this is done by equipping the surveillance devices with
resident's personal and private information. The citizen-oriented data on the internet and
activities on smartphones have accumulated a heavy amount of data in unstructured form.
Hence, Nepal EGov services can use big data and data mining technologies to resolve many
governmental services experiencing problems due to data inconsistencies.

Major Challenges with e-Governance Implementation in Nepal

Nepal is one of the fastest-growing developing countries in Asia, with the latest ICT image of
the first 4G service-hosting Asian country in the world. Despite abundant growth in the use
of IT and mobile devices, the country still needs to catch up in the light of darkness when it
comes to its development in front of Western countries; this is strict because of the country's
low literacy rate. The per capita is too low, and poverty still pulls back the nation's
development. The country's ever-fluctuating political instability, corruption, and thorny
geographical vegetation standstill, are causing the EG implementation in Nepal to face
intense challenges. Nepal is yet to develop its infrastructure and ability to incorporate full-
fledged EG. Below listed are some of the significant challenges for EG implementation in
Nepal:

1. Literacy
The literacy rate of Nepal was only around 64.66% in 2015, which is very low compared to
neighboring countries. With the presence of multiple languages and religions in the country,
language issues also exist. English cannot be considered a third language as most of the
population cannot speak and understand the national language due to illiteracy.

2. Lack of Human Resource

Today, the national economy of Nepal is persistent with the remittance of Nepali migrant
workers staying and working abroad in the Gulf countries. The education system is not so
good, and the assurance of getting good opportunities is very low in the country, affecting the
flow of competent human resources outside the country. This has ultimately created the
situation of human resources lagging in the multiple fields of business. On the other hand, the
government personnel selected nationally lag behind the minimal computer knowledge
requirements, leading to their reluctance towards technology use.

3. Political Uncertainty
Political Uncertainty is the biggest challenge for Nepal. The undeterminable changes in the
country’s political representation have negatively impacted many infrastructure development
projects. Still, today, the same problem persists uniformly as the situation has never
improved in the last decade. The implementation of EG is still lacking, which is evident from
the case of the NID card itself, as the project has been extended in the last few years, and
despite the distribution in some parts of the country, the project is still in the phase of public
acceptance.

4. Lack of Coordination
The lack of coordination and senior guidance is one of the biggest challenges ever in Nepal.
There are very few leaders in Nepal who remain specific with their views and deeds; the
country has a lot of political influence that has resulted in low participation of experts in
coordinating activities. Therefore, the Implementation of EG requires strong leadership,
without which the implementation is impossible.

5. Weak Infrastructure
Nepal has the most dangerous roads connecting the mountains, hills, and terai. Due to the
geographical imbalance of landscape and hardship in transporting the goods around the
country, the minimal infrastructure requirement is also not fulfilled. Most government
organizations still use outdated hardware and equipment to accomplish their daily
transactions. The lack of telecommunication infrastructures is the major challenge for
implementing EG. In Nepal, most government organizations still use poor and outdated
network devices and equipment. According to GMP, government organizations must develop
the infrastructures to achieve the goal, vision, and objectives of EGov.

E-Governance in Local Government of Nepal

In Nepal, e-governance initiatives at the local government level are gradually gaining
traction, aiming to enhance service delivery, transparency, and citizen engagement.
Municipalities have introduced online portals for services like registrations and payments,
improving efficiency and citizen convenience. Information dissemination through digital
platforms fosters transparency, while citizen feedback mechanisms promote participation.
Challenges include limited resources and technical capacity, but capacity-building and
infrastructure development efforts are underway. Policy frameworks support implementation,
and future directions involve leveraging emerging technologies for better governance
outcomes.

Opportunities for E-Governance in Nepal

i. Increased Efficiency: E-governance can streamline administrative processes, reduce

bureaucratic inefficiencies, and improve the overall efficiency of government services. By
digitizing workflows and automating routine tasks, government agencies can save time and
resources, leading to more effective use of public funds.

ii. Enhanced Transparency and Accountability: Digital platforms and open data
initiatives can increase transparency in government operations by making information
accessible to the public. By providing citizens with access to government data, budgets, and
decision-making processes, e-governance can foster greater accountability and trust in public
institutions.

iii. Improved Access to Services: E-governance initiatives can bridge the gap between
urban and rural areas by providing online access to government services. In a geographically
diverse country like Nepal, where many communities are located in remote areas, digital
platforms can ensure that all citizens have equitable access to essential services, regardless of
location.
iv. Citizen Engagement and Participation: E-governance can empower citizens to
participate more actively in governance through online platforms for feedback, complaints,
and suggestions. By providing avenues for citizen engagement, e-governance can promote a
more inclusive and participatory democracy where citizens play a more active role in
decision-making.

v. Promotion of Digital Literacy: E-governance initiatives can promote digital literacy and
IT skills among the population. By encouraging citizens to interact with digital platforms
and services, e-governance can help bridge the digital divide and empower individuals with
the knowledge and skills needed to thrive in the digital age.

vi. Support for Economic Growth and Innovation: E-governance can stimulate economic
growth and innovation by creating opportunities for digital entrepreneurship and job creation.
By fostering a conducive environment for innovation and investment in the digital economy,
e-governance can contribute to Nepal's economic development and competitiveness on the
global stage.

vii. Efficient Resource Management: E-governance can facilitate better resource

management by providing government agencies with real-time data and analytics for
decision-making. By enabling data-driven decision-making processes, e-governance can help
government agencies allocate resources more efficiently and effectively to address the needs
of citizens.

E-Governance Initiatives

i. Digital Nepal Framework: The Digital Nepal Framework serves as a comprehensive

roadmap for digital transformation across various sectors, outlining strategies to promote
digital literacy, expand access to digital services, and foster innovation in governance.

ii. Online Service Delivery: The government has introduced online platforms for citizens to
conveniently access essential services, such as citizenship applications, land records, tax
payments, and business registration. These platforms have streamlined administrative
processes, reduced bureaucratic delays, and enhanced citizen satisfaction.
iii. Open Data Initiatives: Nepal has embraced open data policies to increase transparency
and accountability in governance. By making government data publicly accessible, citizens,
researchers, and businesses can analyze information, identify trends, and hold authorities
accountable for their actions.

iv E-Government Procurement System: Nepal has implemented an e-Government

Procurement (e-GP) system to improve efficiency and transparency in procurement
processes. This digital platform enables vendors to submit bids electronically, reducing
paperwork, minimizing corruption risks, and enhancing competition in the procurement
process.

v. Digital Financial Inclusion: The government has promoted digital financial services to
expand financial inclusion and empower marginalized communities. Initiatives such as
mobile banking, digital wallets, and electronic payment systems have facilitated financial
transactions, particularly in remote and rural areas where traditional banking services are
limited.

Objectives of IT policy in Nepal

1. To empower and facilitate Nepal's participation in the Global Knowledge Society.
2. To transform the Government service delivery regime by promoting transparency,
efficiency, inclusiveness, and participation through effective utilization of information
and communication technologies.
3. To promote ICT to further productivity among the sectors that are key drivers of the
national economy.
4. To foster efficient, inter-operable, secure, reliable, and sustainable national ICT
infrastructure in alignment with grass-root needs, and compliant with regional and
international standards.
5. To promote research and innovation on the role of ICT in the resilience of low-income
communities amid potential environmental, economic, and social shocks.
6. To further streamline clear strategies and obligations for licensed ICT service providers
concerning universal access/service goals and Quality of Service (QoS) and ensure cost-
effective connectivity to ICT services such as Internet, E-Commerce, and E-Government
services.
7. To promote cost-effective and qualitative last-mile access technologies for providing
secure access to the Internet including commercial and public information services and e-
government applications by communities (including the disadvantaged and physically
challenged especially in rural and underserved areas.
8. To create easily accessible, affordable, and innovative public access points under a
comprehensive Community/ Village network initiative.
9. To create a favorable environment for cooperation and partnership in ICT among public
and private sectors, civil society, and between all stakeholders at local, national, regional, and
international levels.
10. To increase the institutional capacity along infrastructure and human resource dimension
in public and private educational institutions including schools, colleges/ universities that
offer ICT courses and use ICTS for pedagogical purposes.
11. To create a conducive environment for increasing annual enrollments and output of
students in key professional skills areas such as telecommunications/electronic engineering,
computer science/IT, etc., and promote market-driven skills development initiatives in ICT.
12. To deploy ICTS at all levels of the Nepali educational system to improve educational
outcomes while expanding access to education and training facilities.
13. To support local and indigenous content development as well as applications that target
the capturing, archiving, and dissemination of local and indigenous knowledge, content, and
information resources as well as the promotion of the diverse linguistic and cultural heritage
of Nepal.
14. To facilitate the participation of youths and women in ICTs, particularly in media and
content development initiatives;
15. To address gender-based inequalities and promote gender-sensitive measures to
encourage the active participation of women in national and community-based ICT
initiatives.
16. To promote the use of free and open source software as well as open standards in
software development for government agencies.
17. To create an innovative, market-responsive, highly competitive, and well-regulated ICT
industry.
18. To promote joint venture initiatives for local entrepreneurs with international private
investors in the provision of public ICT goods and services to catalyze the growth of the
sector.
19. To help develop ICT business incubators and promote start-up projects in close
coordination with the private sector through the creation of a supportive ecosystem.
20. To create a favorable business environment and promote Nepal as an attractive
destination for ICT-related investments, especially in the area of IT-ITES/BPO, within the
region and on the international market.
21. To restructure the ICT market and technological base to make the ICT sector a significant
contributor to the social and economic development of the country.
22. To create conditions for the intensified roll-out of the national telecommunications
infrastructure backbone as a way to expand broadband-based ICT services across the
country.
23. To ensure an integrated, coordinated, and synergistic approach towards the development
and deployment of ICTs including other supporting physical infrastructure such as electricity
and transport infrastructure.
24. To minimize duplication and costs through infrastructure sharing among public and
private sector investment projects and to create an efficient and cost-effective Government-
wide communications network infrastructure linking national, provincial, and district
administration.
25. To facilitate regional economic integration by utilizing regional and international
telecommunications infrastructure projects and Asian Information Superhighway
infrastructure initiatives.
26. To safeguard public sector information and investment against negative impacts of
deploying and using ICTS.
27. To promote a stable, fair, and competitive investment climate to facilitate the
development of e-trade and E-Commerce activities in the country.
28. To develop a highly competitive ICT industry capable of serving as the engine for driving
Nepal's active participation in global trade.
29. To facilitate the adoption of E-Commerce especially by SMEs in agriculture, tourism,
and manufacturing as well as non-traditional exports to ensure productivity and growth;
30. To increase the competitiveness of farmers in the production, processing, and marketing
of agricultural products and services through the effective and outcome-oriented utilization
of ICTS.
31. To promote the development of ICT entrepreneurs at the SME level as part of the rural
agro-business industry development and strengthen the development, and application of ICTs
in agriculture.
32. To improve communication systems across the country, especially in areas of tourist
interest to support tourism development in the country.
33. To use ICTs in the documentation, promotion, and effective marketing of the full
potential of Nepal's world-class and niche tourist destinations to the local, regional, and
international markets.
34. To ensure that all ICT-related activities have very minimal negative environmental
impact during construction, operation, and disposal/de-commissioning:
35. To conserve natural resources and safeguard Nepal's heritage using ICT tools.
36. To support the development of mid-to-long-term basic planning that provides policy
direction and tasks for E-government.
37. To support the formulation of a development strategy for ICT converged services to
support and plan for mid-to-long-term resolution for overcoming the digital divide.
38. To ensure all installed ICT infrastructure and capacity is utilized effectively a contributes
to resilience and redundancy.
Strategies of IT policy in Nepal
1. Human Resource Development
2. ICT in education, research & development
3. Access, media and Content
4. ICT Industry
5. ICT for Government service innovation and good governance 6. SME (Small and
Medium Enterprises) and e-Commerce
7. Telecommunications infrastructure
8. ICT in agriculture
9. ICT in Health
10. ICT in Tourism
11. Telecommunication/ICTS in mitigating the impact of climate change
12. ICT in the environment and natural Resources
13. Telecommunication/ICTS for natural disaster preparedness, mitigation and relief
14. Human exposure to Electromagnetic fields and safe disposal of electronic waste
15. Conformance, Interoperability, and Standards in telecommunications/ICT
16. Cloud Computing
17. Access to telecommunications/ICTS in rural and remote areas
18. Access to Telecommunications/ICT services for persons with disabilities and specific
needs
19. ICTs for Youth, women and girls
20. Building Confidence and Security in the use of ICTS

Conclusion
Nepal's journey towards e-governance reflects a commitment to harnessing technology for
the benefit of its citizens. The government aims to improve service delivery, enhance
transparency, and foster inclusive development by implementing various initiatives and
policies. Moving forward, sustained efforts in infrastructure development, capacity building,
and stakeholder engagement will be crucial in achieving the full potential of e-governance in
Nepal.