Our June 2020 video “Improving PFM digital transparency in SIDS finance ministries” examined finance ministries (MoFs) use of digital platforms such as websites and social media to provide public financial management (PFM) related information in small island developing states (SIDS). Recent PFM digital transparency regional trends in Caribbean SIDS are examined in our “Regional Caribbean SIDS PFM digital transparency update” video.

Caribbean SIDS PFM digital transparency regional trends

PFM digital transparency trends were analysed for 18 Caribbean SIDS where MoF websites were active in the 2020 September quarter to provide the basis for this regional trends analysis:

• Belize
• Cayman Islands
• Cuba
• Curacao
• Dominica
• Dominican Republic
• Grenada
• Guyana
• Haiti
• Jamaica
• Montserrat
• Puerto Rico
• Saint Lucia
• St. Kitts & Nevis
• St. Vincent & Grenadines
• Suriname
• Trinidad & Tobago
• US Virgin Islands

Eleven Caribbean SIDS did not have active MoF websites in the 2020 September quarter. Although The Bahamas MoF did not have a standalone website, it does have an active Facebook page.

Charts for the following regional indicators are presented:

• MoF website penetration levels for the 2020 March and September quarters. The figures used in these charts were obtained using a two-step process. Actual visit data for the March and September 2020 quarters was annualised to provide projections of estimated 2020 visits. The resulting 2020 annual MoF website visit projections were divided by the number of country internet users to obtain MoF website penetration levels.
• Domestic and non-resident visits to MoF websites for the 2020 March and September quarters; these charts reflect the percentage of visits to MoF websites attributable to local residents and non-residents in the 2020 March and September quarters based on actual visit data.
• Rates of change in MoF website visits; this data is based on changes to MoF visit levels between the 2020 March and September quarters. 
• MoF Facebook penetration levels as at June 2020 and October 2020; these figures were obtained by dividing actual MoF Facebook follower numbers by the number of country Facebook subscribers.
• Changes in Facebook follower numbers between June 2020 and October 2020; these charts reflect changes in the respective MoF Facebook follower numbers.
• MoF Twitter penetration levels as at October 2020; these figures were obtained by dividing actual MoF Twitter follower numbers by the number of country Twitter subscribers.
• Changes in Twitter follower numbers between June 2020 and October 2020; these charts reflect changes in the respective MoF Twitter follower numbers.

Key regional analysis findings

Some of the key findings from our analysis are as follows:

• Estimated total Caribbean SIDS MoF 2020 visits in the 2020 September quarter were 11.07% higher than in the 2020 March quarter for the 12 MoFs where data was available for both quarters

• Total Caribbean SIDS local resident MoF visits to the above-mentioned 12 MoF websites increased by 24.66% in the 2020 September quarter over the 2020 March quarter whilst total non-resident MoF visits fell by 30.98%

• Caribbean SIDS MoF Facebook follower numbers (and overall Caribbean SIDS average MoF Facebook penetration levels) increased by 14.99% between June 2020 and October 2020 where comparative data was available

• Caribbean SIDS MoF Twitter follower numbers (and overall Caribbean SIDS average MoF Twitter penetration levels) increased by 51.45% between June 2020 and October 2020 where comparative data was available

Our June 2020 video “Improving PFM digital transparency in SIDS finance ministries” examined finance ministries (MoFs) use of digital platforms such as websites and social media to provide public financial management (PFM) related information in small island developing states (SIDS). Recent PFM digital transparency regional trends in Africa and Asia (including the Middle East) SIDS are examined in our “Regional Africa/Asia SIDS PFM digital transparency update” video.

Africa/Asia SIDS PFM digital transparency regional trends

PFM digital transparency trends were analysed for 7 Africa/Asia SIDS where MoF websites were active in the 2020 September quarter to provide the basis for this regional trends analysis:

• Bahrain
• Cabo Verde
• Maldives
• Mauritius
• Seychelles
• Singapore
• Timor-Leste

Three Africa/Asia SIDS did not have active MoF websites in the 2020 September quarter.

Charts for the following regional indicators are presented:

• MoF website penetration levels for the 2020 March and September quarters. The figures used in these charts were obtained using a two-step process. Actual visit data for the March and September 2020 quarters was annualised to provide projections of estimated 2020 visits. The resulting 2020 annual MoF website visit projections were divided by the number of country internet users to obtain MoF website penetration levels.
• Domestic and non-resident visits to MoF websites for the 2020 March and September quarters; these charts reflect the percentage of visits to MoF websites attributable to local residents and non-residents in the 2020 March and September quarters based on actual visit data.
• Rates of change in MoF website visits; this data is based on changes to MoF visit levels between the 2020 March and September quarters. 
• MoF Facebook penetration levels as at June 2020 and October 2020; these figures were obtained by dividing actual MoF Facebook follower numbers by the number of country Facebook subscribers.
• Changes in Facebook follower numbers between June 2020 and October 2020; these charts reflect changes in the respective MoF Facebook follower numbers.
• MoF Twitter penetration levels as at October 2020; these figures were obtained by dividing actual MoF Twitter follower numbers by the number of country Twitter subscribers.
• Changes in Twitter follower numbers between June 2020 and October 2020; these charts reflect changes in the respective MoF Twitter follower numbers.

Key regional analysis findings

Some of the key findings from our analysis are as follows:

• Estimated total Africa/Asia SIDS MoF 2020 visits in the 2020 September quarter were 11.53% higher than in the 2020 March quarter for the 6 MoFs where data was available for both quarters

• Total Africa/Asia SIDS local resident MoF visits to the above-mentioned 6 MoF websites increased by 26.89% in the 2020 September quarter over the 2020 March quarter whilst total non-resident MoF visits fell by 29.17%

• Africa/Asia SIDS MoF Facebook follower numbers (and overall Africa SIDS average MoF Facebook penetration levels) increased by 7.16% between June 2020 and October 2020 where comparative data was available

• Africa/Asia SIDS MoF Twitter follower numbers (and overall Africa SIDS average MoF Twitter penetration levels) increased by 41.03% between June 2020 and October 2020 where comparative data was available

Our June 2020 video “Improving PFM digital transparency in SIDS finance ministries” examined finance ministries (MoFs) use of digital platforms such as websites and social media to provide public financial management (PFM) related information in small island developing states (SIDS). In this “Global SIDS PFM digital transparency update December 2020” video recent SIDS PFM digital transparency trends are examined on a regional and country basis.

Regional PFM digital transparency analysis

Global SIDS PFM digital transparency trends have been analysed using the following regional classifications for countries where MoF websites were active:

• Africa/Asia/Middle East (7 countries)

• Caribbean (18 countries)

• Pacific (11 countries)

Non-active SIDS MoF websites in the 2020 September quarter in the above-mentioned regions were as follows:

• Africa/Asia/MiddleEast (3 countries)

• Caribbean (11 countries)

• Pacific (8 countries)

Charts for the following indicators are presented:

• MoF website penetration levels for the 2020 March and September quarters. The figures used in these charts were obtained using a two-step process. Actual visit data for the March and September 2020 quarters was annualised to provide projections of estimated 2020 visits. The resulting 2020 annual MoF website visit projections were divided by the number of country internet users to obtain MoF website penetration levels.

• Domestic and non-resident visits to MoF websites for the 2020 March and September quarters; these charts reflect the percentage of visits to MoF websites attributable to local residents and non-residents in the 2020 March and September quarters based on actual visit data.

• Rates of change in MoF website visits; this data is based on changes to MoF visit levels between the 2020 March and September quarters. 

• MoF Facebook penetration levels as at June 2020 and October 2020; these figures were obtained by dividing actual MoF Facebook follower numbers by the number of country Facebook subscribers.

• Changes in Facebook follower numbers between June 2020 and October 2020; these charts reflect changes in the respective MoF Facebook follower numbers.

• MoF Twitter penetration levels as at October 2020; these figures were obtained by dividing actual MoF Twitter follower numbers by the number of country Twitter subscribers.

• Changes in Twitter follower numbers between June 2020 and October 2020; these charts reflect changes in the respective MoF Twitter follower numbers.

The above-mentioned regional analyses are also available here:

• Africa/Asia/Middle East

• Caribbean

• Pacific

Key regional analysis findings

Some of our key findings from the regional analysis are as follows:

• Increases were recorded in SIDS overall regional MoF penetration scores for SIDS MoF websites, SIDS Facebook followers and SIDS Twitter followers. This growth is partially attributable to MoF posts relating to COVID-19 topics. 

• A material increase in the SIDS Caribbean MoF Twitter follower penetration score contributed to strong growth in the SIDS overall regional Twitter follower penetration score.

• The increased interest in MoF digital platforms also resulted in material increases in the proportion of MoF website visits attributable to local residents and a consequent reduction in the proportion of MoF website visits attributable to non-residents. This trend was particularly evident in the Pacific where there was strong growth in Papua New Guinea MoF local resident visits.

• In four of the SIDS countries with MoF Facebook pages, the number of Facebook followers exceeded estimated 2020 MoF website visits demonstrating the role social media can play in boosting transparency about SIDS MoF activities.

SIDS country PFM digital transparency analysis

SIDS PFM digital transparency trends have also been analysed for the 36 countries examined in the above-mentioned regional analysis.

Country charts presenting the following PFM digital transparency indicators are available:

• MoF website penetration levels for the 2020 September quarter. The figures used in these charts were obtained using a two-step process. Actual visit data for the September 2020 quarter was annualised to provide projections of estimated 2020 visits. The resulting 2020 annual MoF website visit projections were divided by the number of country internet users to obtain MoF website penetration levels.

• Domestic and non-resident visits to MoF websites for the 2020 September quarter; these charts reflect the percentage of visits to MoF websites attributable to local residents and non-residents in the 2020 September quarter based on actual visit data.

• MoF Facebook penetration levels as at October 2020; these figures were obtained by dividing actual MoF Facebook follower numbers by the number of country Facebook subscribers.

• MoF Twitter penetration levels as at October 2020; these figures were obtained by dividing actual MoF Twitter follower numbers by the number of country Twitter subscribers.

Each country chart presents the following results for each indicator: the available country results, the average regional score and the average score for all SIDS countries where a MoF website was available.

Analyses of trends in key country PFM digital transparency indicators are also available here:

• Africa/Asia/Middle East

• Caribbean

• Pacific

Posted by David Fellows^[1]and John Leonardo^[2]

The impact of COVID-19

COVID-19 has changed behaviour throughout the world and social distancing has been the key driver. Workers in factories, shops and offices have been protected by creating greater space between workstations, erecting protective screens and using protective clothing. Distancing requirements have been introduced in bars, cafes, restaurants, hotels, markets and shopping centres. All economies have suffered, especially the hospitality industry, air travel and public transport. Unemployment has soared. Schools and higher education colleges have closed. Many countries are turning to the IMF for support.

The internet has proved a beneficial facilitator of economic activity, allowing most administrative work and the ordering of goods and services to be undertaken at home. Video conferencing has facilitated meetings with colleagues, business partners and clients, and helped maintain contact with friends. Online learning has featured in reopening plans for higher education and some schools. In this new world digital technology has achieved an elevated significance beyond its already pervasive presence in the pre-COVID era. In some ways it has already established a new normal.

This brief piece focuses on small island developing states (SIDS) but even here the challenges are not identical. Some countries depend heavily on a now-dormant tourist industry and shoulder severe difficulties. These include poverty, remoteness, disbursed communities and the need to combat the threat of natural disasters. The virus demands a minimisation of personal contact for which the absence of good quality, low cost digital communication leaves many states poorly prepared. The UN E-Government Survey 2020 notes that of the SIDS only Singapore and Bahrain have high overall scores; almost half scored less than 50% of Singapore’s score for infrastructure.

Communication infrastructure

Good quality digital communication requires fibre-optic broadband cabling to support business use and homeworking with adequate resilience, even including 4G and Wi-Fi. 5G is costly and has potential shortcomings at present. This option requires specialist advice.

Understanding behaviour is important to government strategy. Contributing factors include levels of public education, affluence, user tariffs and local cost factors. Lobbying based on knowledge of the operational intentions of the marine cable-laying industry could be important.

Regional collaboration could provide impetus to network improvement strategies, regulatory frameworks and licensing agreements.

Technology applications

The digital service revolution discussed above and already taking place across the world, accelerated by the onset of COVID-19, is inescapably relevant to SIDS. There are many specific business applications of relevance to SIDS, including: health advice (including C-19) and personal consultations; agricultural monitoring and market information on crops and livestock; and weather monitoring for fishing, agriculture and general safety considerations. Additionally, expatriate monetary transfers are being undertaken increasingly using digital systems.  The creation of digital services relevant to developing countries gathers pace and must be encouraged.

Video conferencing, email and document handling systems provide an essential communication layer that is particularly useful to achieve social distancing.

Apart from their use of major business applications governments can make use of social media for public messaging, for instance, demonstrating transparency and engaging citizens the struggle against corruption when resources are so scarce.

Technology skills

Digital communication infrastructure must be complemented by a capacity for: upgrading, expansion and rerouting of infrastructure; installing application software; implementing major software packages; and even the development of service applications. This requires learning at various levels gained from school, college, in-service courses and practical experience.

An understanding of the technology is also required to educate potential adopters about the possibilities that digital communication offers them. This includes the general public, small businesses, the public sector and larger private sector organisations.

Digital technology skill development is essential to help SIDS adjust to the current situation.

Towards cost-effective solutions

COVID-19 is forcing change to the way people live throughout the world and economies are in crisis. Digital communication offers the capacity for helping maintain business continuity. Most SIDS would benefit from a higher standard of affordable digital communication supporting improved digital service delivery.

Digital technology must be designed to the needs and circumstances of individual states. Nevertheless, there could be much to gain from cost-effective collaboration between SIDS for the purposes of sharing and developing:

(i) an understanding of the economic and social impact of COVID-19 and ways of mitigating these effects through digital communications;

(ii) market-shaping policies and practices for increasing the availability of digital communication at an affordable price;

(iii) strategies and programs to support the provision of expertise in digital technology and its use by business, public services and the general public; and

(iv) knowledge of relevant progress made on these issues throughout the world.

Such an initiative, whether on a global or regional basis, could include SIDS, development agencies, the digital service industry, other private sector partners and potentially the Commonwealth Small States Centre of Excellence. Is this a step too far?

This blog was published by the International Monetary Fund’s Public Financial Management Blog on 18 August 2020 at https://blog-pfm.imf.org/pfmblog/2020/08/-small-island-developing-states-covid-19-and-digital-technology-.html.

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[1] David Fellows is an accountant who has worked extensively in UK local government, the Cabinet Office as an advisor on local government reform and as an international development PFM advisor. He was a leader in the application of digital communication to UK public sector service delivery. He is a director of PFMConnect, a public financial management consultancy: david.fellows@pfmconnect.com. 

[2] John Leonardo is an international development PFM advisor having extensive experience of working with SIDS. He is a director of PFMConnect.

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