Abstract

     As one federal judge so astutely predicted two decades ago:

It may well be that Judge Charles E. Clark and the framers of the Federal Rules of Civil Procedure could not foresee the computer age. However, we know we now live in an era when much of the data which our society desires to retain is stored in computer discs. This process will escalate in years to come; we suspect that by the year 2000 virtually all data will be stored in some form of computer memory.

Abstract

No abstract available

Abstract

     This paper presents the positive and negative impact information technology (IT) has had on governance in the United States and argues that effective and efficient eGovernment is a necessity created by the increased and widespread use of IT in the private sector.
     Part II of this paper discusses transaction costs, describes the functions of governance, and discusses other elements that are causing the government to lose ground. Part III proposes eGovernment as the solution to the problems created by the increased use of IT, provides a brief definition and background of eGovernment, and discusses why eGovernment is necessary to keep social transaction costs affordable while increasing the transparency and effectiveness of government’s obligation to facilitate a civil society. Part IV covers some of the problems that eGovernment faces, such as privacy concerns and the distrust generated within the public by the government’s failure to follow their own guidelines, and predicts the possible consequences of not having eGovernment.
     For economic activity to be sustained over time, government, in one way or another, must provide the context that enables market transactions and precludes destructive abuses. The power of IT, rapid communication, and the conversion of wealth from ownership of physical property to intangible property means governance must adapt. The international race for growth and prosperity, through trillions of transactions, will be won by countries with governance best designed to enable those transactions by combining efficiency (minimized transaction costs) with trust (security of information).