CAF Publishes the First Ibero-American GovTech Index

CAF – Development Bank of Latin America has published the first Ibero-American GovTech Index, an indicator that analyzes the integration of tech-based, data-driven entrepreneurial ecosystems seeking to modernize government and improve public services. The index, developed with Oxford Insights, measures the degree of maturity of govtech ecosystems, the dynamism of tech-for-good startup markets, and the degree of innovation of public institutions.

The GovTech 2020 Index: Unlocking the Potential of GovTech Ecosystems in Latin America,? Spain and Portugal is based on three key dimensions —digital start-ups, government policies, and procurement systems. It highlights the need for governments in to more effectively leverage the new data-based digital solutions so as to provide better services to citizens, placing them at the center of their management. Govtech solutions can halp make governments more agile and open, efficient and responsive.

Despite the heterogeneity of govtech ecosystems in the region, the GovTech 2020 Index suggests that the most digitized countries are better positioned to take advantage of their potential. Cities have greater potential to take advantage of these new trends, given the dynamism of traditional digital start-ups and policies for promoting digital entrepreneurship, as seen in cities such as Buenos Aires, Mexico City and Sao Paulo.

Spain leads the GovTech 2020 Index country ranking with a score of 6.6 out of 10, followed by Portugal (6.2), Chile (5.3), Brazil (5.2), Mexico (5, 2), Uruguay (5.1) and Colombia (5), Argentina (4.1), Costa Rica (4), Peru (4), Panama (3.9), Dominican Republic (3.7), Bolivia (3.6), Ecuador (3.6), Paraguay (3.4), and Venezuela (2.3).

At the city level, the index highlights reflects the many innovations emerging in the region, such as in Guadalajara, Mexico, where Visor Urbano is facilitating the processing of permits for commercial or construction projects entirely online, while helping citizens to obtain information about Guadalajara's urban development. In La Rioja, Alta Gracia and Rosario, three Argentine municipalities, MuniDigital offers a real-time, cloud-based data system that allows citizens to send alerts, file complaints and get news about recent developments in their municipality. In Teresina, in Brazil, OS City is using blockchain technology and artificial intelligence to achieve a more efficient public transport system by digitizing passenger data.

"The most important recommendation of the GovTech 2020 Index is the enormous potential and the growing dynamism of these tech-for-social-good startups that want to improve the machinery of government and the quality of life of citizens. GovTech startups propose new public-private partnerships to accelerate the digital transformation of our governments. Their contribution will be key to the recovery from the COVID-19 crisis, which will be marked by an acceleration of the digital transformation of public services,” explains Carlos Santiso, director of CAF's Digital Innovation in Government practice.

"GovTech provides an opportunity to radically improve the delivery of public services. This index provides a chance for every Government in Latin America to take stock, assess where they are strong, and where they should invest. With the right moves now, every country in Latin America can radically improve the quality of its public services - helping more people for lower cost," said Richard Stirling, CEO of Oxford Insights.

The emergence of govtech startups is one of the most promising trends in the modernization of the public sector in recent years. “It is an emerging sector that has the potential to improve the response capacity of government, especially local government - and to trigger new economic sectors such as the data economy. In the new economy, data has become a critical asset," says Santiso.

Considering the acceleration of government digital transformation in response to the COVID-19 crisis, the study expects a significant increase in government tech spending and therefore opportunities for govtech start-ups in the coming years. Although Latin America, Spain and Portugal have made progress incorporating digital strategies, only a few countries recognize the potential of govtechs in their digital government strategies.