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FEATURE STORYSeptember 25, 2024

From Paper to Click: Uruguay’s Government Transformation

Uruguay Rural School

Students gather outside one of Uruguay's rural schools.

Uruguay has emerged as a regional leader in digital government. The World Bank's PROMESEG project played a crucial role in supporting the country's digital transformation. The pandemic accelerated the adoption of digital services and highlighted the importance of digital infrastructure. Uruguay's efforts have been aimed at reducing digital divides and ensuring that all citizens have access to government services.

Back office, e-government, online management—these might seem like abstract concepts, distant from daily life. Yet, their potential to profoundly shape how we live became clearer than ever during the COVID-19 pandemic. People no longer had to travel long distances to obtain documents. Rural children continued their education from home. Small businesses streamlined operations with simplified processes. And scientists accessed research for free, fueling innovation.

However, this wasn’t the case for most countries—it was the reality in Uruguay, where efforts have focused on reducing the digital divide and improving service delivery through advanced technologies.

Digital Transformation in Motion

By 2016, 87% of Uruguayan households had internet access, nearly all schools were equipped with wireless connectivity, and 96% of public-school students had laptops provided by the state. Despite these advances, Uruguay still faced challenges: in 2016, 43% of people seeking information about an administrative process preferred visiting a public office, while only 27% opted for online services. To address these challenges, the World Bank and Uruguay launched the Improving Service Delivery to Citizens and Businesses through E-Government Project (PROMESEG), aimed at enhancing the quality and accessibility of e-government services.

Bridging the Education Gap

Previously, around 40% of rural schools lacked broadband. That has changed. Today, in 1,200 schools, teachers of subjects like English can teach remotely, closing the educational gap and providing digital learning opportunities to communities with limited access. PROMESEG also strengthened the Timbó portal, a digital platform offering free access to scientific and technological publications. This expansion has solidified Uruguay’s role as a leader in digital services for education, proving that technology can be a powerful tool for equity.

Uruguay Rural School

Students access remote learning at Uruguay rural school.

Accessing More Efficient Public Services

In 2017, of Uruguay’s 1,400+ administrative processes, about 600 could be initiated and 400 completed online. While this was a significant step forward, many processes still required in-person attendance at some stage, posing challenges for those living far from urban centers. To overcome this obstacle, Uruguay expanded non-physical service channels such as phone, chat, social media, and email. The pandemic accelerated this transition, making these channels the primary means of interaction between the government and citizens. Currently, 2,565 administrative processes are available on the government portal, with 1,748 fully manageable online. PROMESEG also contributed to increased service efficiency: reducing travel and paper costs allowed citizens to save time and money, resulting in over 12.5 million hours saved. (See: Implementation Completion and Results Report for the Uruguay - Improving Service Delivery To Citizens And Businesses Through E-Government Project. Annex 4. efficiency analysis.)

Making Life Easier for Businesses

The project also benefited small and medium-sized businesses. By expanding the Single Window for Foreign Trade (VUCE) and introducing a simplified export regime, companies halved the time needed for foreign trade-related processes, optimizing operations and improving tax compliance. Moreover, the introduction of electronic invoicing enhanced operational efficiency, reduced errors and fraud, and improved monitoring of the pandemic’s economic impact. Electronic invoicing simplified administrative processes, reduced the costs of managing paper invoices, and minimized human error. The data generated also helps businesses make more informed decisions, while the system increases security and reduces fraud risks, fostering greater trust in the business environment.

An Innovative Government Model

Uruguay has not only closed the digital divide but also created a more accessible and efficient government for its citizens. This is a testament to how technology, when implemented with a people-centered vision, can transform societies, offer equal opportunities, and improve quality of life. With these advancements, Uruguay has positioned itself as a leader in digital innovation in Latin America, paving the way for a more equitable and connected future.

Thanks to PROMESEG’s success, in 2023, the World Bank approved a new project to continue supporting the transformation of the Uruguayan state, focusing on public financial management, data analytics tools, and incorporating climate considerations into fiscal administration.

 

 

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