Tribhuvan University

Faculty of Humanities and Social Sciences

E-GOVERNANCE IN NEPAL: THE CHALLENGES IN THE IMPLEMENTATION OF THE

NATIONAL IDENTITY CARD IN NEPAL

A PROJECT REPORT

Submitted to
Department of Computer Application
Kabhre Multiple Campus

In partial fulfillment of the requirements for the Bachelors in Computer Application

Submitted by
Sudip Kumar Bajgain (Regd no.6-2-244-21-2018)
Roll No: Thirteen

Submitted To
Pratit Raj Giri

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 ABSTRACT

The advent of e-revolution and extensive use of ICTs in business had created a world of e- business.
The e-Government is representing the world’s most developed countries today and the subject
matter is getting the attention of people around the globe. There has been a significant development
in the ICT sector of Nepal and the government has introduced a number of ICT related e-services
including the National Identity card of Nepal. The advancement in the use of mobile technologies
and smartphones over the past few years has led the citizens of the nation more inclined towards
the use of e-services, thereby making the e-Governance the hot cake topic. The use of the internet
and social media is increasing exponentially in Nepal and therefore compelling the government to
introduce and apt the e-Governance model and services to ease the daily life of the people. A proper
vision, strategy, and planning must be done in order to implement the e- Governance system in
Nepal and the major challenges obstructing the system must be neutralized in order to develop the
atmosphere for the efficient implementation of e- Governance in Nepal.
Keywords: e-Governance, Information Technology, E-Governance Master Plan, Business Process
Reengineering.

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Table of Contents
ABSTRACT....................................................................................................................................... 2

List of Abbreviation ........................................................................................................................... 5

List of Figures .................................................................................................................................... 6

List of Tables ..................................................................................................................................... 7

Introduction ........................................................................................................................................ 8

1.1 Background of the Study ..................................................................................................... 9

1.2 Problem Statement ............................................................................................................ 10

1.3 Purpose of the Study.......................................................................................................... 10

1.4 Definition of e-Government and e-Governance ................................................................ 10

1.5 Objectives of the Study ..................................................................................................... 10

1.6 Scope and Limitation of the Study .................................................................................... 11

1.7 Significance of the Research ............................................................................................. 11

Related Work ................................................................................................................................... 13

2.1 The history of e-Governance activities in Nepal ............................................................... 13

2.2 The current situation of e-Governance in Nepal ............................................................... 13

2.3 E-Readiness in Nepal ........................................................................................................ 14

2.4 Interactive-Service model of e-Governance ...................................................................... 14

2.5 Major challenges with e-Governance implementation in Nepal ....................................... 15

2.6 Successful e-Governance practices around the world ....................................................... 19

RESEARCH DESIGN AND METHODOLOGY ........................................................................... 20

3.1 Research Methodology ...................................................................................................... 20

3.2 Research Plan and Design ................................................................................................. 20

3.3 Description of Sample ....................................................................................................... 20

3.4 Questionnaire Development .............................................................................................. 21

3.5 Pilot Study ......................................................................................................................... 21

3.6 Data Collection Procedure................................................................................................. 21

3.7 Data Collection Limitations .............................................................................................. 22

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 3.8 Data Collection Assumptions ............................................................................................ 22

3.9 Reliability and Validity ..................................................................................................... 22

3.10 Analysis Plan ..................................................................................................................... 23

3.11 Analysis & Interpretation .................................................................................................. 23

DATA ANALYSIS AND INTERPRETATION ............................................................................. 24

4.3 Descriptive Analysis ......................................................................................................... 30

4.4 Results ............................................................................................................................... 31

CONCLUSION AND RECOMMENDATIONS............................................................................. 32

5.1 Conclusion ......................................................................................................................... 32

5.2 Findings ............................................................................................................................. 33

5.3 Future Recommendations .................................................................................................. 35

5.4 Limitations ........................................................................................................................ 35

5.5 Future Research ................................................................................................................. 35

REFERENCES ................................................................................................................................ 37

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 List of Abbreviation
ICT=Information and Communications Technology
DNF=Digital Nepal Framework
GON=Government of Nepal
NTA=National Testing Agency
ICTD=Information and Communication Technologies for Development
ISP=Internet Service Provider
EGDI=E-Government Development Index
NID=National Identity

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 List of Figures
Figure 1: Do you know about EG - Frequency Distribution ......................................................... 25
Figure 2: Usage of EG Services - Frequency Distribution ............................................................. 26
Figure 3: Knowledge of NID Card implementation - Frequency Distribution ............................ 27
Figure 4: Ease of business process and general activities - Frequency Distribution ................... 28
Figure 5: Possibility to implement an e-based system - Frequency Distribution ......................... 29
Figure 6: Need to implement EG in Nepal - Frequency Distribution ........................................... 30
Figure 7: Independent and Dependent variables for e-Governance ............................................. 31

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 List of Tables

Table 1: Reliability Statistics ............................................................................................................ 23

Table 2: Frequency Analysis of EG Awareness .............................................................................. 25
Table 3: Frequency Analysis of the usage of EG Services ............................................................. 26
Table 4: Frequency Analysis of knowledge of NID Card implementation ................................... 26
Table 5: Frequency Analysis - ease of the business process and general activities ...................... 27
Table 6: Frequency Analysis - possibility to implement an e-based system ................................. 29
Table 7: Frequency Analysis of need to implement EG in Nepal .................................................. 30

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 Introduction
EG is the use of a variety of information technologies by government agencies in order to renovate
their public services in the course of improving the efficiency and effectiveness of their service
delivery. A number of policy and regulatory frameworks governing the ICT sector provide a
foundation for the DNF. For example, the National ICT Policy introduced in 2015 seeks to enhance
the vision of transforming Nepali society into knowledge and information-based society by
harnessing rapid advances in the ICT sector. Similarly, the National Broadband Policy announced
in 2016 puts forth a framework for stimulating broadband access and availability across the
country. Among others, policy emphasis that has been placed on effectively leveraging Universal
Service Access Funds as a means of bridging digital divide will provide a strong mechanism for
expanding broadband access to communities beyond urban areas if implemented effectively.
Nepal gained considerable success in cyber adoption as compared to its neighboring countries,
which has been evident from the country’s growth trend over the following few years. The fast-
developing status of social media is a prime achievement factor for cyber adoption in Nepal.
Facebook users in Nepal are at the count of millions and the number of users sharing videos on
social media has increased tremendously (NTA, 2017).

The GoN has highlighted the importance of changing capability of ICTs and putting these
technologies within the larger perspective of its far-reaching development objectives premised
around poverty reduction, as the main principal goal. Due to this, countries, private sector
individuals and people that find the resources to become more proficient will advance and flourish.
Among others, ICTs hold the potential to help create environments for better governance, with
more transparent and well- organized civil services. (Ministry of Information and
Communications, 2015). Apart from opportunities, the changing nature of ICTs offers many
challenges from policy views. As a result, the existing policy provision in Nepal has to be amended
with the trivial of dynamism that characterizes the arena. For instance, the faster shifting
technological innovation in ICT domain yields successive results that are far-reaching policy
implications, which the earliest policy formulation approaches, failed to handle properly. The
GoN has the chance to create a distinction by adopting and exploitation ICT as a tool on the market
to scale back the event divide and increase the probabilities of up the standard of lifetime of the
voters. (Ministry of Information and Communications, 2015)
The GoN has introduced the ICTD program a long time ago, as a part of the EG Master Plan. The
program aimed at providing better access to information to all the Nepalese citizens living in the
terai, hilly and mountainous regions. The information related to market, job opportunities, health,
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education, and policies were made accessible to all by establishing proper ICT facilities and
internet connectivity around the country. (Adhikari, 2012).
Even though Nepal is at a trivial stage in ICT development when compared with the global
scenario, there has been significant progress in the communication sector. There has been
remarkable progress in telecommunication sector with the increased use of smartphones. The
colleges and universities today are producing capable technical human resources within the
country. The use of electronic as well as print media increased exponentially that enabled access
to reach to general people around the country. The facilities of internet, emails, and computers are
gaining popularity and used rigorously today. Telecom service providers and ISPs are widening
their outreach; as a result, several EGov applications were introduced. The GoN is now thoughtful
and dedicated to promoting EGov for implementation of various G2G, G2C and G2B plan defined
under relevant importance areas (P. Pariyar, 2007).

1.1 Background of the Study

Digitalization of civic services today is a key priority of GoN. The government has undertaken
numerous footsteps in this direction, because of which the EGov Development Index of Nepal has
progressed from 165th in 2014 to 117th in 2018. (F&S, 2019).
Centenarian Bhagawati Devi Bhandari, a resident of Phidim Municipality-4, acquired the first
national ID card in the country from Minister for Home Affairs Ram Bahadur Thapa in Panchthar
district. The 101-year-old was brought to the program venue on a vehicle belonging to Phidim
Municipality from her residence about 3km away. A total of 2,429 national ID cards have reached
Panchthar while others are being printed. Beginning on June 19, data on some 52,000 people were
collected in the district by Sunday evening in preparation for the ID card. In the pilot phase,
authorities plan to issue the cards as replacement of the existing paper documents to 117,000 people
in Panchthar and the civil servants working at Singha Durbar. The authority plans to distribute 3.5
million cards in 15 other districts in the second phase. Plans are for issuing the IDs in 25 districts
next fiscal year and in 36 districts in the fiscal 2020-21. The electronic card has biometric data of
each eligible Nepali citizen along with a unique identification number. It contains the family name,
given name, address, father’s name, mother’s name, photo and four fingerprints of both thumbs
and two index fingers. Ten years since its inception, the National ID Management Centre under
the aegis of the Home Ministry started printing the cards in November with support from the Asian
Development Bank. (Gautam, 2018)

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1.2 Problem Statement

Even though there is an intense use of mobile technologies, internet and social media the country
is still not ready for the EG. The EGDI status of Nepal shows that the country is still in its premature
stage for EG implementation. Moreover, there persists very limited awareness among the people
regarding the concept, use, and principal of EG. Besides, there exists even the more reluctant
behavior of government officials with the verge of fragile political instability. Therefore, these
remain as the major problem for the EG implementation in Nepal.

1.3 Purpose of the Study

The roadmap to EGov is not easy and straight, rather it is too difficult especially when it comes to
developing countries context. There is no doubt that there exist very limited prospects and many
challenges for the development of EGov in Nepal. There are also several hurdles, problems, and
challenges present in the country obstructing the EG implementation that must be overcome to
attain Nepal’s EGov dream. Hence, the purpose of this research is to find out the major
barriers for EG.
1.4 Definition of e-Government and e-Governance
EGov is all about the delivery of national or local government information and services within the
reach of the internet or other digital or social media to the hands of the citizens, businesses and
other governmental organizations. EGov permits the status quo of standard authorities’ facts in the
electronic form to provide ease to people in an apt way. It also aids better service provision to
citizens, implementation in Nepal and to find out the critical success factors supporting the
implementation of EG in the near future.
1.5 Objectives of the Study

The major objectives of this research are as follows:

1. To study the AS-IS status of EG in Nepal.

2. To identify challenges and barriers obstructing EG success in Nepal.

3. To find out the critical success factors, which facilitates the hassle-free implementation of
EG in Nepal, with respect to the National Identity Card (NID) System of Nepal.

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1.6 Scope and Limitation of the Study

The scope of this research is to find out the major barriers for EG implementation in Nepal and to
find out the major critical success factors that support its implementation in the near future. This
research aims towards analyzing the non-technical factors that influence the acceptance of the EG
system in the context of Nepal, the technological factors such as hardware, software as well as the
networking equipment is excluded in this research.
1.7 Significance of the Research

The research aims to expose the difficulties faced by the public, in terms of their hardship in
information access through government portals and offices. The research aims to produce a
beneficial output in terms of ease of accessibility to the public with uncovering the benefits of EG
implementation in Nepal. This research provides the window of expectation sought by the Nepalese
citizens on how they respond to the use and application of EG in Nepal. The result would also
demonstrate the dynamics that Nepalese citizens desire to get, in relation to the use of EG
application. The study also tries to present the citizen’s anticipation from EG services that in turn
will help in the future to identify the major implementation gaps which could be sealed for full
fledge EG implementation. For the knowledge workers, the outcome of this thesis aims to
supplement a new dimension in order to provide a platform towards the implementation possibility
of full-fledged EG system in Nepal. The scholar community, doing researched on EG in Nepal,
could further add ideas and new concepts into their research works and devise new factors that are
equally important in the adoption of EG in Nepal. This research work will further help into a
diagnosing problem related to EG implementation and helps to enhance services and support that
ease the system implementation in the future.

Empowerment of the humans through access to information and getting rid of the manual paper
forms with improvements in productivity and cost savings while doing business and allowing
participation in public policy selection- making (Sharma, 2015).
According to the World Bank (2000) – EGov is the all about the use of ICT services by
government agencies in order to promote associations between citizens, businesses, and other
arms of the government. This serves as a tool to many aspects including better delivery of
government services to citizens, improved communications with businesses and citizen
empowerment made available through the ease of information available along with proficient
management. The consequential benefits are decreased bribery, better transparency, more
accessibility, growing revenue, and reduced cost.” AOEMA report of the United Nations defines
- EGov is the process of using the internet and the world- wide-web for distributing government
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information and services to citizens.
The UNESCO definition (www.unesco.org) - EG is the use of ICT with the objective of improving
information and service delivery to the public sector, encouraging public participation in the
process of policymaking and making the government more liable, effective and translucent. EGov
involves innovation in leadership, policies making and finding new ways of accessing education
and open ways of listening to citizen’s voice in order to organize and deliver services to the public.
EGov is a broad concept since that bring changes in the way of interaction of citizens and
government. EG may stimulate new concepts regarding citizenship, the prime objective of which
is to involve, support and empower the citizens of the nation.
EGov is a tool of knowledge that aids in the development of government activities along with their
effective and efficient transformation. The EGov Index of Nepal shows its low ranking compared
to other neighboring countries. Nepal has many challenges for the implementation of EGov
systems, which starts from the low literacy rate to the lack of infrastructure and human resources
(Purusottam Kharel, 2012).

EG is all about using the ICT services for delivering government services and systems integration
between government-to-citizens (G2C), government-to-business (G2B), and government-to-
government (G2G) as well as implementing the administrative procedures and communications
within the entire government framework. (Nasrulla khan k, 2016) EG envisioned by Dr. APJ Abdul
Kalam in the Indian perspective is “A clear smart EG with continuous access, secure and authentic
flow of information crossing the inter- departmental obstruction and providing a fair and unbiased
service to the citizen.” (Snehal C. Sapkale, 2015)

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 Related Work
2.1 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 the
implementation of IT policy 2000 was majorly the political and social instability (Lawoti, 2003).
Several infrastructures and institutions namely HLCIT, NITC, MoEST, MoIC, MoGA, and MoF
initiated the eGMP. The report was then prepared by KIPA (KIPA, 2006). The ETA 2008, which
was considered the outstanding success in IT regulation in Nepal was crucial for the
implementation of EG. The right to information act, 2007 also supported implementation of EG
(Karki, 2007). The establishment of GIDC under NITC was possible with the assistance of KOICA
(KIPA, 2006). The construction of IT Park in Banepa close to the capital became additional
institution formed under this policy however the plan was not so much successful (MartinChautari,
2014).
The government-owned NTA later privatized and changed into NTC and named Nepal Telecom
(Gautam, 2016). The IT policy of 2010 was enacted following the failure of IT policy 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 strongest strategic
planning of EG in Nepal (ITU, 2012). Until date, there are lots of policies, acts and regulations
being published in Nepal for the betterment of ICT services, however, the IT policy of 2015 is still
latest policy in implementation. The policy was proposed to withstand the foundation for the
vision of Digital Nepal

(Ministry of Information and Communications, 2015).

2.2 The current situation of e-Governance in Nepal
Nepal IT Policy 2000 aims to interlink all ministries, departments, and offices with the GoN with
internet to provide services online. The eGMP Consulting Report prepared by KIPA was figured
alongside the most feasible government projects. The mission of the report was to provide value-
added quality service through ICT. (KIPA, 2006) In addition, the policy highlighted the use of e-
commerce and distant education with having EG at the facilitator role for the government.
ADB reinforced “transformation” program that has prioritized twenty-two services including NID,
driving-license, LRMS and rural e-community (Illawara Technology, 2007). In the words of
Bekkers, EG is the major action plan to improve Nepal’s fragile government. Since the outcomes
on the use of ICTs in public organizations are specific and situation-dependent, there is a significant
need for recording evidence of some pilot EG program implementations for future reference.

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(Bekkers, 2007).
The availability of updated and trustworthy information in the government websites (Rani and
Kautish, 2018) (Kaur and & Kautish, 2019) are lagging a lot. The innovative strategies in the EG
projects hence ensure that the government services are not impacted by poor delivery services,
this is done byequipping the surveillance devices over resident’s personal and private
information. (Thomas, 2012) The citizen-oriented data made available on the internet and
activities made available on the smartphones have accumulated a heavy amount of data in
unstructured form. Hence, Nepal EGov services can initiate using the Big Data and Data
Mining technologies to resolve many governmental services that are getting problems due to data
inconsistencies. (Shakya, 2018)

2.3 E-Readiness in Nepal

ER is a measure of a country’s readiness and willingness to attain benefits, which arise from the
ICT activities (Kautish et al, 2016, 2018, 2019). ER is widely used to measure ability of a country
to take part in e- activities. ER indicators provide an outline of a country’s situation and can easily
form baseline for comparison and future planning. It also helps in the improvement and identifying
the areas where support is required. It is also one of the useful tools to measure the minimum
required levels of infrastructure, education, training, and supportive government policies to cater
to benefit from ICT (Dada, 2006).
Nepal’s ER has significantly improved from the world ranking of 135 in the year 2016 to the world
ranking of 117 in the year 2018 with the improvement of EGDI score of 0.4748 in 2018 in
comparison to EGDI score of 0.3458 in 2016. This indicator shows the improvement of Nepal’s
EG index ranking thereby putting the country towards a significant development in ICT. (UN,
2018).
Similarly, the E-Participation Index of Nepal has jumped tremendously into the world ranking of
55 in 2018 in comparison to that of 89 in 2016. The E-Participation Index (EPI) score has improved
from 0.5085 in 2016 to 0.7809 in 2018. This shows that the e- Participation in the country has
increased significantly. This indicates that Nepal is getting better in terms of technology
implementation and usage, which shows that there is a very favorable environment of the
implementation of EG in the country. (UN, 2018).
2.4 Interactive-Service model of e-Governance

This model also called the government-citizen-government model (G2C2G) is the framework
developed by scientists whereby the government provides services to its citizens with having a
proper consultant with them about the new services. The government takes upon public opinion
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before launching the new services for their citizens. This is moreover a win-win situation created
by the combined decision of both the parties.
Applications of G2C2G

 Submission of grievances and queries by the public to the government

 Establishment of the comprehensive communication channels for support

 Used in carrying out transactions into the online platform for the provision of filing taxes and

Payment.
2.5 Major challenges with e-Governance implementation in Nepal

Nepal is one of the fast-growing developing countries in Asia with having the latest ICT image of
the first 4G service hosting Asian country in the world. Despite having abundant growth in the use
of IT and mobile devices, the country remains behind in the light of darkness while it comes to its
development in front of western countries; this is strict because of the low literacy rate of the
country. The per capita is too low and the poverty is still pulling back the development of the nation.
The ever- fluctuating political instability, corruption and tough geographical vegetation of the
country standstill causing the EG implementation in Nepal to face intense challenge. Nepal is yet
to develop its infrastructure and ability to incorporate full-fledged EG.
Below listed are some of the major challenges for EG implementation in Nepal:
1. Literacy

The literacy rate of Nepal was only around 64.66% in 2015 (“Nepal | UNESCO UIS,” n.d.) which
is very low in comparing to its neighboring countries. With the presence of multiple languages and
religion in the country, there also exist language issues. English cannot be considered the third
language as most of the population even could not speak and understand the National language due
to illiteracy. (Chapagain, 2006).
2. Lack of human resources

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
assurance of getting good opportunity is very low in the country, which has affected the flow of
competent human resources outside the country. This has ultimately created the situation of human
resource lagging in the multiple fields of business. On the other hand, the government personnel
selected nationally lags the minimal computer knowledge requirements leading into their
reluctance towards use of technology.

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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 developments
projects in the past and still today the same problem persists uniformly as the situation never
improved in the last decade. The implementation of EG is still lacking which is evident from the
case of NID card itself as the project is getting extended from last few years and despite the
distribution in some part 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.
(Kharel, 2012). There are very few leaders in Nepal who remained certain with their views and
deeds, the country has a lot of political influence that resulted in low participation of the 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 of the government organizations
still are using outdated hardware and equipment to accomplish their daily transactions. The lack of
telecommunication infrastructures also stands as the major challenge for the implementation of
EG. In Nepal, most of the government organizations are still using poor and outdated network
devices and equipment. According to eGMP, the government organizations must develop the
infrastructures in order to achieve the goal, vision, and objectives of EGov. (Purusottam Kharel,
2013)
2.5.1 Barriers associated with e-Governance implementation in Nepal

The below listed major factors stand as the challenge for EG implementation in Nepal.
1. Building Infrastructure: In order to enjoy the benefits of EG, more EGov projects must have
to be implemented by constructing sufficient level of infrastructure particularly in rural areas
and regions across the country including Tarai, Hills, and Mountains.
2. Comprehensive Policy and Legitimate Framework: Updating the ancient meaningless
Byelaws and supreme legitimate power functioning, the generalization of procedures to avoid
administrative blockages and establishment of single window delivery system procedure must
be introduced in order toensure speedy disposal of legal cases. Besides this there is also the
need of:

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 Civil protection laws.

 Cyber law enactment policies.

 Information rights laws and policies.

 Single window policy.

 Legalization for digital payments.

3. Publicly applicable technologies and integrated management: Updating of data in the local
language, incorporation of the local language and local content on the internet in a substantial
manner, standardization in all area like encoding, application logic for common application
formulating data dictionaries.
4. Capital: The move towards excessive R&Ds, funds, budget allocation, lack of review on
organizational capacity building, non-availability of proper’ skilled human resources creates
major problem in formulating the policies for EG system.
5. Official negligence, lack of coordination and positive attitude on part of government officers
and officials impede the progress of the application of EG in Nepal.
6. Training for conveying skills & inculcating motivation among government as well as non-
government officials are very essential for EG implementation.

2.5.2 Critical Success Factors for e-Governance implementation in Nepal

There are some essential components, which must be followed for the right implementation of EGov
in Nepal, which is listed below:
1. Announcement and Consciousness

The success of EGov system implementation highly depends on the announcement and
consciousness to the public about the program of development and implementation of EGov.
2. Regular and Periodic Evaluation

The GoN has been investing significant cost and means towards the study of the implementation
of EG policy and procedures. Therefore, regular and periodic evaluation of the progress and index
of performance needs to be monitored and recorded for the future.
3. Capacity Building

The capacity-building strategies should be taken into account considering the fact that Nepal is a
geographically diverse country with having different districts are at different levels of altitude from
Terai basin, Hilly basin up to Mountainous region. Therefore, the role of the capacity building
team is at the program level to provide leadership and vision including policy formulation,
17
preparing roadmaps, prioritization, preparing frameworks and guidelines, monitoring progress
including the capacity management.

4. Technology and Infrastructure

Technology and Infrastructure, both provide support to the Department of Information Technology
in implementing the EG project. Hence, both of these needs to be adequately available for use.
5. Monitoring & Evaluation

The Program Management Unit (PMU) for National EG project must develop a comprehensive
Monitoring & Evaluation MIS system at the program level in order to track the physical and
financial progress of the project.
6. Project and Commercial Evaluation

Project and Commercial Evaluation is the chamber, which identifies resources to provide
assistance in project conceptualization, development, and implementation to various implementing
zones and areas within the country.
7. Research and Development

The EG Research and Development team provides consultancy and research inputs in the areas of
EG. The Technical Standards including interoperability standards, Government Enterprise
architecture (GEA) frameworks, NeGIF framework, Information Security Policy, and Procedures,
etc. are governed though the nationalEG R&D Teams at GIDC and also at Ministry of Information
and Communications.

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2.6 Successful e-Governance practices around the world

The advent of technological development has fueled many countries worldwide to adopt
numerous EG services (Tahrani, 2010). EG is a revolutionary service tool serving multiple
departments within the governments around the world (Nour, 2008), and the scale of activity
increased tremendously (Smith, 2008). The majority of organizations around the world introduced
online services with the help of their own websites (UN, 2010). The online services are used very
often for jobs, tax filing and renewing licenses (West, 2004). The telecommunication sector has the
strongest adoption of e-services as mobiles technologies being the alternate means of
communication, especially in LDCs. (ITU, 2012).
It is to be understood that not all the EGov applications around the world are only successful.
During the study of international reports and case studies, many cases of failures were identified.
One of the surveys projected that among the number of the EGov initiatives undertaken by various
countries only few of them were considered successful implementation (Heeks, 2006). According
to the UN, only few countries achieved progressive development in terms of EG implementation.
The number of EGov initiatives failed globally due to a lack of awareness and over-ambitious
planning (M.P. Gupta and D. Jana, 2003; Heeks, 2002).
It is evident that most of the nations around the world adopted ICT in their service administration
providing the most essential services to its citizens. In the context of India also, most of the service
sector is being impacted by EG, especially with the implementation of “Rashaan Card”.
Consequently, Govt. of India has launched the initiatives of EG providing most of the essential
services by electronic means as much as possible (Nagaraja, 2016).
 RESEARCH DESIGN AND METHODOLOGY
3.1 Research Methodology

The research methodology is one of the principal tools while conducting the research. It
incorporates the fundamental philosophy of research methodology, the research approach, strategy,
choice and time period. The research philosophy, approach, strategy, data collection and analysis
techniques that were used in this research are discussed in this chapter.
3.2 Research Plan and Design

The use of both descriptive as well as explanatory research is being conducted during the
preparation of this thesis. The finding of this research is based on the primary data collected from
the questionnaire survey. The results are based on the data analyzed out of the filled- up
questionnaires. The study made the use of various statistical tests including Mean, Median, Mode,
Frequency Analysis, Standard Deviation, Chi-Square Testing, and the Cronbach’s Alpha testing.
The SPSS analysis tool and MS Excel were used in order to evaluate and interpret the quantitative
data. The reliability of scales is analyzed using Cronbach’s alpha as it is the most popular test for
inter-item consistency and reliability.
3.3 Description of Sample
The questionnaire survey was used for the collection of the data; the entire survey and study are
conducted based on the objectives set in the first chapter. The study was conducted in order to
distinguish the perception of Nepalese citizens towards EGov services that are getting abundant
popularity in the other neighboring countries including India. The respondents of the research are
the citizens of Nepal who are continuously on the verge of gaining electronic services from the
government in order to ease their living standards. The level of understanding of the respondents
was considered the crucial factor while designing the sample because the significant result shall
only be generated with actual data from the people who have the proper understanding on the
subject matter. The total of 300 questionnaires has been distributed among which 150 were online
questionnaires and 150 were offline, however, only 121 responded which included 48 respondents,
who answered online while remaining 73 respondents filled up the questionnaire by hand.
3.4 Questionnaire Development

The questionnaire delimited close-ended questions with an objective to complete it in less time
answering the questions. Mostly the close-ended questions were prepared using the convenience
sampling method and for perception related questions a five (5) scale Likert scales are used so that
the respondents could answer the questionnaires easily with their general understanding and
experience. The questionnaire was then, distributed to the respondents.
3.5 Pilot Study

This study was conducted to understand how the respondents understood and responded to the
questionnaire. The set of questionnaires was sent to targeted respondents as per convenience and
were distributed randomly. Some feedbacks were collected from them for review and the
questionnaire was adjusted accordingly.
3.6 Data Collection Procedure
3.6.1 Data collection
The process of data collection is primarily descriptive in nature with the support from the study of
related works, online sources and free opinion submitted by the respondents into the questionnaires.
The data collection is done with the following two sources:
3.6.1.1 Primary Data

The primary data collection is conducted with the help of the following tools:

 Questionnaire: Participants are supplied the questionnaire to collect their views and
expressions on the subject matter. The questionnaire included the perception, awareness, and
factors affecting the daily life of people and the governmental processes, and also including the
effect of EG on the government services.
 Observation: The site observation has been done for understanding the actual working of the
EG system, which is currently implemented at NIDMC. The participation of the officers,
employee, and public in the actual implementation of the system has been observed and the
questionnaires have been filled.
3.6.1.2 Secondary Data

The secondary data collection is conducted with the help of the following tools:

 Reference Books: Various books and references related to EG has been studied with an
objective to collect the relevant data and their respective source and origins.
 Journals & Newspapers: Few research papers and journals were studied to drag out relevant
 information.
 Internet Source: Various internet sources have been accessed to collect information related
to government policies, scope, and schemes.
 Government and Non-Government Reports: Many Government & Non- Government
reports have been witnessed to understand government policies for the implementation of EG.
Descriptive research was conducted and the primary data was collected using a questionnaire
survey and was managed to obtain quantifiable data. Both the paper-based survey and electronic
survey were conducted for timely data collection and ease of access.

3.7 Data Collection Limitations

 When using the questionnaire, the participants were restricted to the options given in the
questionnaire only.
 When using the questionnaire, the answers might not be fair enough if the correspondence has
filled up the questions anonymously.

3.8 Data Collection Assumptions

 The participants were randomly chosen to represent the IT sector of Nepal.

 The participants were selected with having IT background and minimal knowledge to the
research domain.
3.9 Reliability and Validity

The questionnaire was developed only after consultation and discussion with the supervisor and
the seniors. The questions have been designed carefully to meet the research objectives. The basic
purpose of conducting the validity and reliability analysis of data was to determine the
trustworthiness of facts. Few precautionary measures were undertaken while collecting the samples
in order to assure the validity of the samples. To enrich the legitimacy of the content, a general
literature review was done to understand the variables that could affect the perception of people.
The P-value for a correlation has been compared in terms of 0.01. The data collected in the research
was evaluated for correlation and the resultant p-value which is less than 0.01 has been accepted.
The reliability test here in this thesis is measured against the questionnaire that represents the
people’s perception towards EG. The questions are from 20 to 32 in the distributed questionnaire.
 Table 1: Reliability Statistics

Reliability Statistics
Cronbach's Alpha No. of Items
.834 13

Table 3.2 Cronbach’s alpha collected as reliability statistics for data is 0.834 that shows internal
consistency of the questionnaires and the data collection is assumed to be reliable and valid. It can
be concluded that the questionnaire prepared was consistent for the study as the total Cronbach’s
Alpha was 0.834 (Number of items = 13).
3.10 Analysis Plan

The data analysis was done after gathering the responses from all the questionnaires given to the
respondents, and then the SPSS data analysis and Excel are used for final analysis. Based on the
type of questions both Convenience sampling scale and Likert scale questionnaire were used to
collect the

data. Finally, the collected answers from questionnaires were tabulated into SPSS for analysis.
For data presentation, various tables, charts, and diagrams have been produced for the purpose of
explanation. The mean, median, mode, and standard deviation have been calculated for the
descriptive study. The significance testing has been conducted to make the results more effective,
using the Chi-Square measurement and Correlation Analysis also including the One-Way ANOVA
testing. All the findings and relationship variables have been interpreted to drag out important
conclusions.
3.11 Analysis & Interpretation

The analysis and interpretation of the data were conducted using the various statistical tools
including the frequency analysis, mean, median, mode and standard deviation and the reports have
been generated with the help of graphs, comparison charts, and diagrams. The expert guidance of
senior data analyst has also been pursued in order to analyze the data.
 DATA ANALYSIS AND INTERPRETATION
4.1.1 Respondent’s Background

The analysis of demographic profile from the primary data collected through questionnaires is done
by the interpretation of the responses collected from the respondents. The respondent's profile is
then categorized according to their age, gender, education, level of awareness, etc. The respondents
of the research are only the citizens of Nepal.
The survey respondents selected for this study have forwarded the questionnaires through emails,
social media, and personal visit. The total of 121 answered questionnaires has been collected out
of the 300 questionnaires that have been distributed to the respondents. The total of 150 online and
150 manuals (printed form) questionnaires were distributed for the data collection of which only
48 responses collected online and 73 responses were collected manually in fill up forms. The
response percentage was 39.66% via online survey and the rest of others via manual survey
questionnaire in written form.

4.2 Analysis of Data

4.2.1 Awareness Related Questionnaires - Frequency Analysis

Based on the questionnaire; we have chosen a total of four (4) awareness related questions, which
is taken for the measurement of significance of the respondent's awareness on the subject matter of
EG, among the data collected within the respondent's size of 121.
Below presented are the four awareness related questionnaires’ frequency analysis.
1. Do you know about EG?

The majority of the respondents answered that they have knowledge of EG while few respondents
answered no and maybe. Only 17 out of the 121 respondents answered no, meaning they do not
have an idea of EG. The tabular representation below demonstrates the distribution of 121
respondents based on their knowledge of EG along with their percentage distribution.
 Table 2: Frequency Analysis of EG Awareness

Frequency Percent Valid Percent Cumulative

Percen

Yes 80 66.1 66.1 66.1

No 17 14.0 14.0 80.2
Valid
May Be 24 19.8 19.8 100.0
Total 121 100.0 100.0

The above table shows that out of the 121 respondents, 80 respondents, which is equal to 66.1%
of the total population, are very aware of EG. Similarly, 24 respondents are not sure about the total
awareness of EG resulting in 19.8% of the total population. Finally, 17 respondents resulting in
14% of the total population is completely unaware of the EG. The graphical representation of the
awareness of respondents towards EG is shown below:

Figure 1: Do you know about EG - Frequency Distribution

2. Have you ever used services related to EG in Nepal?

The majority of the respondents answered that they have not used the services related to EG, also
a group of 42 seems confused in either they have used the services or not. While few respondents
answered that, they have used the services related to EG. The tabular representation below
demonstrates the distribution of 121 respondents based on their usage of EG services along with
their percentage distribution.
Table 3: Frequency Analysis of the usage of EG Services

Frequency Percent Valid Percent Cumulative

Percent

Yes 34 28.1 28.1 28.1

No 45 37.2 37.2 65.3
Valid
May be 42 34.7 34.7 100.0
Total 121 100.0 100.0

The above table shows that out of the 121 respondents, only the 34 respondents, which is equal to
28.1% of the total population, have used some sort of EG services. On the other hand, 45
respondents did not use any of the services related to EG resulting in 37.2% of the total population.
Finally, 42 respondents resulting in 34.7% of the total population is completely unaware of their
use of EG services. The graphical representation of the awareness of respondents towards EG
service usage is shown below:

Figure 2: Usage of EG Services - Frequency Distribution

3. Do you know that the GoN has implemented the National Identity (NID) card system in
Nepal? Based on the data collected regarding the knowledge of NID card implementation by
GoN, it seems half of the population has the knowledge while the other half are completely
unaware of the implementation of the NID card system. The tabular representation below
demonstrates the result of 121 respondents based on their knowledge about the implementation of
the NID card system by GoN, along with their percentage distribution.
Table 4: Frequency Analysis of knowledge of NID Card implementation

Frequency Percent Valid Percent Cumulative

Percen
 Yes 63 52.1 52.1 52.1
Vali No 58 47.9 47.9 100.0
d
Total 121 100.0 100.0

The above table exhibits that half of the people know about the implementation of the NID card
system while the other half is completely unaware. This has been recorded with the data
collection, as 52.1% respondents know that the NID card has been implemented in Nepal while
the other 47.9% respondents have no idea in this matter. The graphical representation of the
awareness of respondents towards the implementation of the NID card system by GoN is shown
below:
Figure 3: Knowledge of NID Card implementation - Frequency Distribution

4. Do you think that the NID system will ease the business process and general activities of
the citizens of Nepal?
Based on the data collected to know the opinion of respondents about the ease of the business
process and general activities of the public through the implementation of NID Card system in
Nepal, all the respondents seem optimistic, as no one selected the no answer. However, more than
50% answered maybe, meaning they are not certain about the upcoming facilities that EG system
might have to offer to the public. The tabular representation below exhibits the frequency list of
121 respondents on their opinion about the ease of the business process and general activities
of the public through the implementation of NID Card system in Nepal, along with their percentage
distribution.

Table 5: Frequency Analysis - ease of the business process and general activities

Frequency Percent Valid Percent Cumulative

Percen
 Yes 56 46.3 46.3 46.3
Vali May be 65 53.7 53.7 100.0
d
Total 121 100.0 100.0

The above table exhibits that more than the half of the respondents (i.e. 53.7%) answered maybe
meaning they are quite optimistic and don’t know about the future ease of the business process and
general activities that they will be going to leverage through the Governments’ successful NID
card system implementation. On the other hand, almost half (i.e. 46.3%) respondents answered yes
meaning they are sure that the NID card system implementation will definitely ease the business
process and general activities of the public. It is wonderful to see that no one answered no, which
means that overall all respondents are optimistic in their thoughts. The graphical representation of
the awareness of respondents with having positive expectation towards the possibility of ease of
the business process and general activities of the public through the implementation of NID Card
system in Nepal is shown below:
4.2.2 Implementation Related Questionnaires - Frequency Analysis
Based on the questionnaire; we have chosen four (4) implementation-related questions, which is
taken for the measurement of significance of the respondent's expectation towards the
implementation of the EG system, among the data collected within the respondent's size of 121.
.

Figure 4: Ease of business process and general activities - Frequency Distribution

1. Do you think it is possible to implement the e-based system instead of the current paper-
based system in governmental organizations?
The majority of the respondents answered that yes for this question. Only two (2) respondents
answered maybe while none of the respondents selected no option, which means the respondents
are sure about the fact of the e-based system is possible to substitute with the existing paper-based
system. The tabular representation below demonstrates the frequency list of 121 respondents based
on their expectation towards the implementation of e-based system instead of existing paper-based,
along with their percentage distribution.

Table 6: Frequency Analysis - possibility to implement an e-based system

Frequency Percent Valid Percent Cumulative

Percen

Yes 119 98.3 98.3 98.3

Valid May be 2 1.7 1.7 100.0
Total 121 100.0 100.0

The above table shows that out of the 121 respondents; almost all the respondents choose yes which
counts 119 in total contributing to 98.3% of the total population. We can see that none of the
respondents selected no as the answer, meaning all the respondents are expecting to get the e-
based service from GoN. On the other hand, only two (2) respondents answered maybe, meaning
they are not sure that the government should switch from an existing paper-based system to e-based
systems. The graphical representation of the respondent’s expectation towards the implementation
of the e-based system instead of the existing paper-based system is shown below:

Figure 5: Possibility to implement an e-based system - Frequency Distribution

2. Do you think there is a need for implementing EG in Nepal?

It is very interesting to note that every one of the respondents answered that there is a need to
implement EG in Nepal. None of the respondents chooses no for this option, which means that the
public is waiting to get the EG system being implemented in Nepal at the soonest possible. The
tabular representation below demonstrates the distribution of 121 respondents based on their
expectation towards the need for implementation of EG in Nepal, along with their percentage
distribution.

Table 7: Frequency Analysis of need to implement EG in Nepal

Frequency Percent Valid Percent Cumulative

Percen

Valid Yes 121 100.0 100.0 100.0

The above table exhibits that out of the 121 respondents; all the respondents choose yes which
counts 121 in total contributing to 100% of the total population. We can see that none of the
respondents selected no as the answer, meaning all the respondents are expecting to get the EG
service implemented in the organizations of GoN. The graphical representation of the
respondent’s expectation towards the need for implementation of EG in Nepal is shown below:

Figure 6: Need to implement EG in Nepal - Frequency Distribution

4.3 Descriptive Analysis

This analysis is done in order to find the significance and prominent factors affecting the EG
implementation. The overall independent variables such as age, gender and education are being
compared against the dependent variables such as challenge, awareness, barrier, and
implementation as per the data analysis being conducted on these variables. The below figure is
 clearer to understand the analysis.

CHALLENGES
` Figure 7: Independent and Dependent variables for e-Governance

4.4 Results

The result of the analysis opens up a wide space for the researchers to carry out the experiment in
order to find out the critical success factors for the successful EG implementation in Nepal. Since
the collected data shows younger age people of Nepal has much idea and experience with the use
of electronic services, also the ER index of Nepal has increased to a significantly higher rank, there
is a lot of opportunity in coming days for the successful implementation of e-services and
promoting the use of EG services.
The study also focused on identifying the major challenges obstructing the EG implementation and
finding out the critical success factors that facilitate the EG implementation in Nepal. The extensive
usage mobile devices have been getting more demand and usage in Nepal, so there is a
greater chance of getting the EG services being implemented very soon in Nepal. The evaluation
of the four primary variables namely the awareness, implementation, barriers, and perception were
chosen for the analysis which has produced a significant resultant output on the basis of which we
have identified the possibility of the EG implementation in Nepal with due respect to the perception
and demand of the public. The result from Pearson’s chi-square test showed that the P-value of
0.000 compared to a significance level of 0.05, which proves that there is a high level of association
among the younger age group and implementation of EG.
 CONCLUSION AND RECOMMENDATIONS
5.1 Conclusion

The advent of ICT is getting its highest fleet around the world, especially with the intensive use of
smartphones and advanced communication technologies. Nepal has seen the abundant
development and progress in mobile communications with the increased access of internet and
social media to the people. The social media like Facebook, YouTube and TikTok are the most
used application in Nepal and people are increasingly developing mass awareness and getting
enlightened with the use of these applications and technologies. The government has introduced
few e-based services in the country and the public is using those services very fluently with having
the system accessible into their touchscreens. Nepal is very much close towards the digital adoption
of EG in near future.
Based on the literature review and the gathered data, it is evident that the expectation for the
adoption of EG is too high, although the ER level is low. Despite the fact, that Nepal’s ranking
globally has incremental values, the resultant is not so satisfactory in terms of e- service
implementation, since the country is at its very early stage of adopting EG. The use of e-services in
government is also increasing day by day.
5.2 Findings

The study has identified some significant factors affecting EG implementation. Based on the study,
it is seen that the astounding political conflicts and fluctuated political coordination stand today
in Nepal as the prime barrier for EG implementation. Digital divide used to be the major challenge
a few years back but now with the advancement and extensive growth of mobile communication
technologies, it is not anymore, the significant factor.
Objective 1:

To study the AS-IS status of EG in Nepal

Based on the data analysis performed to find out the AS-IS situation of EG in Nepal, the 121
respondents’ data has been collected for analysis. The data stated that 100% of the respondents
said yes for the question of the need for the implementation of EG in Nepal even though there are
only 66.1% of the respondents who said they know about the EG. Apart from this, those
respondents who chose may be in the same question has also answered yes for the need of EG
implementation in Nepal. Hence, it can be said that there is a likelihood for the popularity of the
concept and possibility of sooner implementation of the EG systems in Nepal. In support of this,
more than half of the respondents answered that they know about Nepal Government’s NID card
implementation. Hence, it seems very much evident that the public is aware of the government’s
action on EG. The Chi-Square test also measured in terms of the education level and awareness,
among the public shows relevancy of the information as it is below 0.005, and it seems completely
relevant, as the value has been measured 0.000 with full compliance.
Objective 2:

To identify major challenges and barriers obstructing EG success in Nepal

Based on the data analysis performed to find out the major challenges and barriers of EG
implementation in Nepal, the 121 respondent’s data has been collected for analysis. The variable
named “implementation” has been devised in order to collect the significance of the challenges and
barriers with the help of four (4) questions the data has been evaluated. It is seen that the major
barrier obstructing the EG success is political instability and literacy rate of the country. The
unavailability of the competent workforce and resistance to change of the governmental staffs stand
as the prime barrier and challenge for the adoption of EG in Nepal. On top of this, the study and
analysis showed that there is abundant level of human barriers being present in the context of Nepal
that caused the obstruction due to their unwillingness towards a paradigm shift from old manual
system into the new electronic system.
Objective 3:

To identify the critical success factors that facilitate the hassle-free implementation of EG in Nepal,
with respect to the National Identity Card (NID) System of Nepal
Based on the data analysis performed to find out the Critical Success Factors of EG implementation
in Nepal, the 121 respondents’ data has been collected for analysis. The analysis shows that about
98.3% of respondents think it is possible to eliminate the ancient paper-based system and can be
replaced with the e-based system. The 100% of the respondents agreed that there is a dreadful
need of EG implementation in Nepal and it seems the country is ready for the implementation
which is also evident as the country’s ER is significantly high in last 2 years from jumping into 20
plus ranking. Regarding the security of national government associated with EG, half of the
respondents answered that they are not sure. This might be due to lack of information and
governments’ undeclared plans and policies, however, about the other half think that there might
be security issues as the implementation parties might be the participants from the third country,
as because the existing Nepalese firms have not been able to prove their expertise in this relevant
field. Overall, it seems the information dissemination and PPP can be made transparent for the
success of Nepal’s EG.
 5.3 Future Recommendations

EG entails solicitation of ICTs in delivery of government services. The advancement of computer

networks with the implementation of LAN, MAN, and WAN has played a major role in
transforming government services using digital connections. These facilitate governance in the
following three main domains of EG such as improving government processes, connecting citizens
and building interactions with and within civil societies. (Karume, 2016)
All over the world, there have been many EGov initiatives, some of them are highly successful
such as in North Korea and Estonia and some of them even have a bad history of failures. As per
the experience collected from the global perspectives, there is a need for taking an aggregate view
of the overall EG plans and activities across the country.
According to the ER index, Nepal has a lower position of e-Participation Index. There are
numerous challenges for the implementation of EG in Nepal. Among those, many implementation-
related challenges are still present in the country as discussed in detail in the literature review
section of this thesis. (Purusottam Kharel, 2012)
5.4 Limitations

The possible limitation in the data that were gathered is that there could be a modification of data
gathered within a short period. This is because all the participants in this research are Nepalese
people and we are aware that EG system is yet to be introduced in Nepal in the future. Currently,
we have no such systems being deployed in relation to EG system except the National ID Card,
which is also not being distributed professionally and is still under the evaluation for acceptance.
Therefore, this research work is limited to the challenges of implementation of National ID Card
in Nepal only. Hence, the results and the developed framework might not be completely relevant to
the other sectors.

5.5 Future Research

Several opportunities for future work remain. The validity of the findings in this study, the
possibility of EG implementation in Nepal could be tested in a variety of contexts with the
application of a wider range of tools and available technologies. Further statistical methods can be
put into use in order to access the impact of EG on various facades.
Primarily, this study has been conducted to find out the existing barriers to EG implementation in
Nepal through the readings and ideal exploration of various readers and knowledge workers around
the world, whereas there is more space for further research.
Possibly, future research can explore these findings and maybe those can be replicated with other
technologies and studies. In conclusion, the current study suggests that EG system can be
implemented in Nepal if we could eliminate the existing barriers and add mediums, tools, and
technologies to support the erection of EG pillar in the government as well as non-government
bodies of Nepal, so that the combined effort of both shall aid towards effective implementation of
EG.
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