Making ICTs Work:
A Study of Hong Kong NGOs in the Social Welfare Sector

Jin-Wook Choi
Assistant Professor
Department of Politics and Public Administration
Center Fellow, Center of Asian Studies
University of Hong Kong
E-mail: jwchoi@hku.hk

Paper prepared for the 26th International Congress of Administrative Sciences
Seoul, Korea, July 14-18, 2004

Making ICTs Work: A Study of Hong Kong NGOs in the Social Welfare Sector

Abstract
As the roles and functions of NGOs have significantly expanded in recent years, there is a
growing concern over the need to transform the operation and structure of NGOs. At thecenter is the issue of improving managerial and service delivery efficiency as well as
governance of NGOs. In so doing, many public policy analysts and practitioners haverecently regarded ICTs as an important tool to reengineer NGOs. This article examines
how ICTs are embedded in the social welfare NGOs in Hong Kong where the nonprofit
sector has been a crucial social actor to replace and supplement the positive noninterventionist government of Hong Kong. This article ascertains that unlike the welldeveloped ICT infrastructure and high-usage of ICT in other sectors in Hong Kong, thedeployment and development of ICTs by Hong Kong welfare NGOs are still underwayrather than completed. As a means to maximize the benefits of ICTs, this articles argues
that both governmental and individual NGOs should strive to broaden the use of ICT
applications for more than managerial and communicative purposes, bridge the digital
divide to empower the service recipients, engage in active publicity campaigns, anddevise measurements to assess the actual impacts of ICTs on the intended goal
achievement.

Making ICTs Work: A Study of Hong Kong NGOs in the Social Welfare Sector

Introduction
Information and communication technologies (ICTs) have transformed the social,political and economic spheres at an unprecedented pace for the past two decades. Since
ICTs provide new opportunities and at the same time poses challenges for national
development, any social segment, which falls behind this adaptation to new technologies
will lose competitiveness. As much as new, especially web-based, information
technologies have been widely used in the commercial sector, the government and the
public bodies have paid growing attention to the use of ICTs. How to effectively integrate
information applications and how to positively generate value through ICTs has become aserious challenge which most organizations and institutions must meet.
Focusing on nongovernmental organizations (NGOs), this article examines therole and functions of ICTs in the social welfare NGOs of Hong Kong.1 The degree andspeed of ICT adoption varies across sector. In a relative point of view, the business sector
is most keen to the strategic utilization of ICTs, which not only enhance productivity inthe short run, but also may determine survival in the long run. Even though the public
sector is slower than business organizations in the ICT adoption (Wescott 2003), how to
become a leading e-Government country is a motto manifested by many governments inrecent years. Despite this trend in the first and second sectors, the third sector, i.e., NGOs,
is not as responsive to this technological revolution. Given that NGOs complement orsometimes replace the roles of the government and the business sectors and have deeply
infiltrated the society, recognition of ICT-mediated utility is important for NGOs to1

Unlike the increasing academic and practical concerns, a crystal-clear definition ofNGOs has not yet emerged (Martens 2002: 272). The World Bank (1999: 1-2) defines
NGOs as “private organizations that pursue activities to relieve suffering, promote theinterests of the poor, protect the environment, and stimulate community development.”
Although this broad definition highlights the functionality that the society expects NGOs
to carry out, it does not address other important “self-governing” or “not-for-profit”
aspects of NGOs. NGOs are called and used interchangeably with “non-for-profit sector,”“third sector,” “voluntary sector,” or “civil society organizations (CSOs).” In so much as
this diversity of terminology, NGOs depending on the functional areas are taxonomized
into various categories—social welfare, charitable, religious, cultural, industrial,
professional, and political and community advocacy groups.

maximize their social obligations (Burt and Taylor 1998, 2001). Therefore, the thematic
focus of this article is pertinent because NGOs are able to benefit greatly from ICTs.
To meet the research objective, this article is organized as follows. The second
section discusses the linkage between ICTs and NGOs. The potential that NGOs can
exploit from the optimum use of ICTs is addressed in this section. The third and forthsections introduce historical and contextual backgrounds on the evolution of NGOs andthe development of ICTs in Hong Kong, respectively. The fifth section examines the key
ICT-related initiatives in the Hong Kong NGO sector espoused by the government. The
current stage of ICT adoption by Hong Kong welfare NGOs is addressed in the sixth
section. The last section raises policy implications and the remaining challenges thatNGOs should consider.

Premises of New Technologies for NGOs
New computer and networking technologies have changed the mode of conduct at
the micro and the macro levels in different sectors. No matter whether it is the private or
the public sector, technologies were initially adopted from managerial considerations. To
state it simply, ICTs can be viewed as an important tool to enhance efficiency andeffectiveness in managing organizational operations and the service delivery process.
Remarkably, however, ICTs have grown and been employed to embody applications
beyond a clear-cut “work-better-and-cost-less” idea. There is a wide range of discussion
about the additive positive benefits of ICTs, among which the notion of governance hasreceived greater attention (United Nations 2001). Many scholars and professionals havemore or less agreed that ICTs will be a vital driving force to reframe governance byimproving operational transparency, accountability, and empowerment (Chadwick 2003;
Choi 2004a).
Transparency, defined as the openness of making and implementing decisions to
the parties concerned, can be enhanced by ICTs. Since ICTs work to expand the scale andscope of information circulated in cyber space, both the intermediaries and the ultimate
recipients of new information processing technologies can be better informed whenaccurate information is timely available. At the same time, ICTs can increase theawareness of accountability because those responsible for organizational operations andservice delivery realize that their behaviors and choices are under close internal andexternal monitoring. The feature of two-way communication of the ICTs can empower
the customers and clients, enabling them to participate in the decision making process(Pascual 2003). Therefore, governance can be redefined through technology-drivenchanges in transparency, accountability and empowerment combined with increased
managerial and service delivery efficiency.
ICTs can reengineer the nonprofit sector in a similar way. The ultimate goal of theNGOs is to provide adequate service to the societal segments or communities in need.
Successful achievement of this goal provides a fundamental base for the NGOs to secure
their organizational legitimacy. When NGOs attain legitimacy in an efficient manner,
they are also able to promote their governance. In this respect, ICTs can be a crucial
alternative to increase efficiency by embedding new information processing andmanagement technologies into the operation processes, and to reshape the institutionalbase by electronically connecting NGOs with funding agencies, service recipients, andthe general public.
First, the most direct effect of using ICTs is that NGOs can increase the efficiency
of internal management and service delivery. For example, NGOs can replace hard copies
of standard letters and publications with e-mails and electronic versions, respectively, andto facilitate internal and external communication at less cost and higher speed. Second,
NGOs can increase the transparency and the accountability of their operations not only tothe oversight government agencies and donors, but to the public as well. Those who arecare about the nonprofit activities can conveniently access necessary information if
NGOs upload information, data and other resources regarding their organizational
missions, financial reports, and ongoing projects and agendas onto a website. Third, ICTs
can help NGOs facilitate direct communication with stakeholders and proactively reachout to new potential recipients.2 NGOs can use this to mobilize the stakeholders for abetter coordination medium, for a new fundraising source, for an effective discussion
2

Stakeholders can be broken down into three groups—clients or recipients who directly
receive services from NGOs; donors or patrons who provide chartable resources for
NGOs; and taxpayers and the community who receive indirect benefits. Albeit fordifferent reasons, these stakeholders are concerned with the performance andaccountability of NGOs (Keating and Frumkin 2000: 7-9).

forum, and for a legitimacy-garnering mechanism. In particular, when ICTs work as anopen channel for service recipients to participate in the decisionmaking process of NGOs,
it empowers the recipients to influence decisions that affect their economic and social
well-being (Ballantyne 2003).

The Rise and Evolution of NGOs in Hong Kong
The emergence and development of NGOs in Hong Kong is partly due to thehistorical and political uniqueness of the territory. Historically, the Hong Kong
Government, characterized as a “positive non-interventionist” state, minimizes its
intervention in the private sector (Lam and Perry 2000). Given a general, albeit notalways consistent, assumption that a welfare state is accompanied by the strong
engagement of the state regarding social needs, Hong Kong closely following a laissezfaire principle leaves many welfare functions to the society, many of which are overseenby the government in other welfare countries. Therefore, NGOs in Hong Kong carry out
the third-sector role quite faithfully in the areas where government programs are absent.
Politically, the colony-based legacy of Hong Kong discourages the formation andactive role of influential large-scale NGOs, especially those that challenge thegovernance function. This situation forges the status of NGOs as “residual” in a Hong
Kong context (Lam and Perry 2000: 362). Nonetheless, NGOs and the Hong Kong
Government in some sense are mutually interdependent. While NGOs rely on thegovernment for legal registration and subventions, the government in turn depends on
NGOs as a source of legitimacy of policies. By occupying a seat on advisory boards or ad
hoc committees, NGOs particularly since the 1997 handover participate in thepolicymaking process by consulting the government on various issues (Lam and Perry
2000: 363).
Constrained in formations and functions historically and politically, however, theNGOs of Hong Kong have grown significantly in number and scope. In an annual policy
address, Chief Executive Tung Chee Wha, remarked that volunteer-based NGOs form a
tri-partite partnership along with the government and the business sector to develop andsustain the social capital (Tung 2004: 19-20). In 1992, it is estimated that 1,609 nonprofit
organizations existed in Hong Kong, 87 of which were classified as social welfare NGOs

(Lam and Perry 2000: 365). Because neither the government nor the community hascompiled accurate statistics on the NGOs of Hong Kong, it is very difficult to obtain upto-date information about the size and activities of NGOs according to their functions. A
rough report shows that about 3,400 charitable institutions and trusts operated in 2001
(Golin/Harris 2001: 11).
Despite the growth and the important roles of NGOs in the society, one of thepotential problems facing Hong Kong NGOs is excessive reliance on the government for
funding. The skewed financial dependence is well demonstrated in the welfare sectors, inwhich NGOs receive almost 90 percent of funds from the government (Yuen 2003: 92).
This financial situation of NGOs may create a problem of accountability as well as
governance. When the influence of NGOs was limited, the issue of accountability did not
matter so much. Another factor behind this lack of attention to accountability is perhaps
the assumption that NGOs were benevolent entities pursuing idealistic motives with selffinancing and self-governing, which distinguished NGOs from other for-profit businessorganizations. However, when NGOs have become a strong social actor as they are now
and when they have consumed more resources, the privilege of none- or less-scrutiny thatNGOs previously enjoyed can no longer be granted. The reason is, on the one hand, that
if the government became a primary funding source, it is more likely that NGOs would
serve the whims of the government and politicians rather than the interests of the public.
On the other hand, as unethical, albeit not always criminal, practices have tarnished thelegitimacy of NGOs in several instances, NGOs should strive to make their operations
and activities including finance and accounting more transparent and accountable to theirstakeholders. At this moment in time, it seems that NGOs’ misuse of money is not aserious concern in Hong Kong. Nonetheless, as NGOs are more dependent on
government subventions, they should be more sensitive to the stakeholders in using funds
because government funding is tantamount to taxpayers’ money.

The Development of the Information Society in Hong Kong
Hong Kong is one of the major cities/countries, which widely adopt ICTs in bothpublic and private sectors. As of 2003, Hong Kong reached 104 percent of mobile phone
penetration rate, one of the highest rates in the world. About 68 and 60 percent ofhouseholds used PCs and the Internet, respectively. PC and Internet service use byenterprises were 55 and 48 percent, respectively (Government of the HKSAR 2004).3 As
Table 1 shows, thrusting Hong Kong toward becoming a digital city for the last three
years was quite successful in expanding ICT infrastructure and its usage. In addition to
the citizens’ self-awareness of the convenience and benefits of ICTs, the meticulous
efforts made by the Hong Kong Government also partly accounts for such a comparable
success.
[Table 1 about here]
By initiating the “Digital 21 Strategy” in 1998, which was updated in 2001 and
2003, the Hong Kong Government has made much effort to facilitate the ICT
infrastructure and applications, interconnecting the city through the Internet. Targetingeight key areas such as government leadership, e-Government, e-business infrastructure,
institutional review, vibrant ICT industry, human resource development in a knowledge
economy, and bridging the digital divide, the newly updated Digital 21 Strategy in 2003
attempted to encourage various sectors to embrace and develop ICTs to enhance
performance and efficiency.4 As a result, for example, the government increased the rateof an electronic option (e-option)—public services amenable through the Internet such as
public facility booking and electronic public service registration—from 70 in 2001 to 81
in 2002 to 90 percent in 2003 (Government of the HKSAR 2004).
Overall, Hong Kong with the support of a strong commitment from thegovernment has steadily transformed the society into a digital city in light of the ICT
infrastructure buildup and the usage of ICT applications.

3

As for an international comparison, a 2003 UNDP report surveys technology diffusionand creation across countries. In 2001, the number of Internet users in Hong Kong was
386.8 per 1,000 people, which encompasses the average of the OECD member countries(332.0) and is far greater than the average of the world (79.6) (UNDP 2003: 274-7).
4
The focus of the Digital 21 Strategy in 2003 slightly shifted to reflect the changing
environment. For example, the 2001 Strategy emphasized the following five key areas:
driving e-business, developing e-Government, fostering ICT manpower, building a
digitally inclusive society, and exploiting enabling technologies (Government of the
HKSAR 2003).

ICTs and NGOs in Hong Kong: An Overview
In conjunction with the NGOs, the Hong Kong Government launched an important
ICT-related project, the “IT Hong Kong” campaign, in September 2000. Whereas the
Digital 21 Strategy initiated government- and society-wide comprehensive applications,the IT Hong Kong campaign is more specific because it intended to help Hong Kong
citizens become acquainted with the digital environment. This campaign is directly
relevant to NGOs since it encouraged NGOs to increase interaction with citizens. In otherwords, although the campaign is inclusive of various social segments of the community
such as housewives, parents and new arrivals, it also motivates actual and latent social
service recipients including senior citizens and the disabled to actively participate in the
campaign programs. In so doing, the campaign is carried out through collaboration withseveral government departments and bureaus. Major participants are the Commerce,
Industry and Technology Bureau (CITB), the Home Affairs Department (HAD), theInformation Technology Services Department (ITSD), and the Social Welfare
Department (SWD) (ITSD 2003).
Among the various activities that the IT Hong Kong campaign pursues, several
distinctive features are found to enhance the exploitation of ICTs by the beneficiaries ofsocial services as follows. First, ITSD created various “IT Awareness Programmes(ITAPs),” aiming at promoting ICT awareness of and providing an ICT knowledge basefor the general public, the elderly and the disabled. In the fiscal year of 2002-2003,
ITAPs offered a series of free training and education courses, attracting over 17,000
senior and 9,000 disabled citizens to raise ICT- and Internet-literacy (ITSD 2003: 32).
Second, the ITSD in partnership with the CITB set up the “IT Easy Link” service in June
2002. Receiving about 400 calls on a daily basis, this service deals with public inquiries
when using ICT applications such as Internet and e-mail operations, file management,
and database management systems to name a few (ITSD 2003: 32). Third, together withthe creation of Cyber Centers, the government provided more than 5,000 computers with
Internet connections for free use at diverse public locations across the city to ensure
public access to computer facilities (Government of the HKSAR 2003).

Another important resource for the NGOs to build and maintain the digital
environment is the Lotteries Fund (LF) subvented by the Social Welfare Department(SWD). Relying on LF, the SWD initiated to establish the “Joint Committee on IT(JCIT)” for the social welfare sector and to set up the “IT Resource Center (ITRC)” of theHong Kong Council of Social Service (HKCSS). The ICT-related programs and LFmediated funds of the SWD are designed to expand, improve, and assist both NGOs andservice recipients for the better use of ICTs. To achieve this objective, the SWD uses LF
to construct enhanced infrastructure and application systems, promote internal andexternal communications, develop human ware, and increase accessibility. For example,
the following are the highlights of such efforts by the SWD in 2001 (Sit 2004):●

Infrastructure: PC Replacement Programmes replaced 1,584 PCs for 172 NGOs in
March 2001 (LF grant of HK$26.1 million)●

Communications: 204 welfare NGOs were provided with broadband Internet
access and digital certificates for three years (LF grant of HK$44.1 million), andportal sites were developed for the elderly and disadvantaged individuals●

Application systems: Core Applications Development supported application
systems for financial and human resource management (LF grant of HK$35.7
million), and 14 ICT-related Business Improvement Projects (BIPs) were
supported to develop management information systems, knowledge management
systems, eService through websites, and a digital library for the visually impaired(LF grant of HK$12.5 million)●

Accessibility: A wider use of ICTs was facilitated for the elderly and the disabled
by means of installing PCs at and providing Internet services to senior centers andrehabilitation services units, launching ICT awareness training programmes, andsetting up a portal web site for people with disabilities (e.g., www.cyberable.net)(LF grant of HK$40.7 million)●

Human ware: Customized ICT training programmes were offered to NGOs (LF
grant HK$3.6 million and the Social Work Training Fund of HK$.91 million).

ICTs and NGOs in Hong Kong: A Survey
To examine the efficacy of a series of programs initiated by the SWD and otherrelated agencies, a questionnaire survey was conducted by the Information Systems andTechnology Branch of the SWD from October through November, 2003 (SWD 2003).
The questionnaire was distributed to 180 major Hong Kong NGOs in the social welfare
sector, 115 of which responded. Overall, the survey results show that most NGOs alreadyadopted and were developing ICT applications to improve managerial and service
delivery efficiencies. However, the degree of the embracement of ICTs varies across theNGOs surveyed. Selected survey results are summarized in Table 2.
[Table 2 about here]

Infrastructure
A large portion of NGOs in the survey responded that their computer facility wasconnected by networks for shared use. The extent to which computers were networked is,
however, different depending on the size of the NGOs. The survey result demonstrates
that the larger a NGO is, the better connected their computer facility is. For example,
whereas 40 percent of NGOs with more than 300 staff members (Group B) replied that80 to 100 percent of their PCs were networked, less than 25 percent of NGOs with lessthan 300 staff members (Group A) had the same rate of PCs networked. It may beinferred from this fact that on the one hand large NGOs have more resources to invest in
ICTs. On the other hand, large NGOs have a proactive attitude toward the use of ICTs as
an important managerial tool for their operations.

Communications
Almost all NGOs replied that they had at least one type of Internet connection. And 69.9
percent of Group A and 24.3 percent of Group B were connected through broadband
Internet connection for e-mail communication. However, many NGOs, especially 52
percent of Group B, used a low-speed 56K dial-up connection for e-mail communication.
Given that e-mail has become an indispensable basic communication tool in many public
and private organizations, the penetration rate of an e-mail system and the low-speed

connection lines indicate much room for improvement of the infrastructure for optimal
ICT usage. In addition, it seems that there were not many NGOs, which adopted
interactive applications to communicate with other NGOs and with stakeholders.

Application system
In addition to the simple communicative purpose of the use of ICTs, 87.8 percent ofNGOs adopted one or more ICT applications/systems. The survey shows that large NGOs
(Group B) had higher usage rates in every application/system and have greater desire tofurther develop applications/systems. Among the diverse applications in use, three
applications—financial management, human resource management, and intranet forinternal communication—were the most common features. Although NGOs perceived theneed to expand ICT applications to the areas of service delivery and knowledge
management, the scope of ICT usage was still limited.5

Accessibility
The survey displays that there exists a huge cleavage for one reason or another between
large and small NGOs in increasing Internet accessibility of service recipients. 67.8
percent of NGOs responded that they provided the elderly and the disabled with facilities
to easily access the Internet and training programs to increase their capabilities of using
ICTs. However, only a small portion of the NGOs (23.4 percent) designed their websites
with special features that met the needs of the elderly and the disabled for easy web
access.

5

Knowledge management is a concept that recently attracted much attention. Although
there is no agreed–upon universal definition, it refers to the process through whichorganizations may create value from intellectual and knowledge-based assets by sharing
among organizational members and departments and with other organizations. In relation
to technology, ICTs can be regarded as an important engine to facilitate knowledge
management. ICT-driven knowledge management not only improves customer service
and organizational productivity, but also innovates the organization by disseminating
existing and creating new knowledge.

Human ware
The survey also reveals a vast gap between two groups of NGOs in the human ware
aspect. While 82.1 percent of large NGOs had at least one or more employees withformal ICT training and the majority in this group had multiple sources of external
support, only a small portion of Group A (small NGOs) had formally trained ICT
employees and sources of external support. The lack of adequate in-house human wareavailability in small NGOs may obstruct further development of ICT facilities andapplications. Therefore, when these NGOs faced technical difficulties or when they
wished to structure new applications, they had to depend on external sources of expertise.
In providing technical support to NGOs, the IT Resource Center (ITRC) of the Hong
Kong Council of Social Service (HKCSS) was regarded as an important source of ICT
support. This implies that more active involvement of the ITRC is required to make ICTs
work in NGOs.

Conclusions: Challenges and Policy Implications
Compared with other sectors, the deployment and development of ICTs by Hong
Kong NGOs in the social welfare sector are still underway rather than completed. At thepresent stage, it seems that neither NGOs nor the government takes a full initiative toretrieve benefits from ICTs in the social welfare sector. In order to actualize the latent
advantages, there are several challenges that both the government and NGOs shouldovercome.
First, the current use of ICTs by Hong Kong NGOs is quite limited in applications,which hinders the maximum increase of managerial and service delivery efficiency andtransparent and accountable operating procedures. As the survey results in the previous
section illustrate, many NGOs, especially small ones, are passive in using ICTs in a sensethat they adopt only the technology-transmitted benefits for internal communication orother elementary managerial purposes. However, ICTs can serve as a means to reengineer
the operations and activities of NGOs that can go beyond managerial efficiency. And it
requires NGOs to take a proactive approach to the use of ICTs. Since the aforementioned
survey does not provide any concrete grounds to assess the progress of other ICT
applications than managerial and communicative efficiency, it is difficult to estimate theextent to which Hong Kong social welfare NGOs have promoted transparent andaccountable operations driven by ICTs. The following general recommendations can,however, be made for further development of ICT usage.
As the role and the influence of NGOs increase in the society, the size of NGOs interms of resources and boundary of activities also expands. As much as NGOs flourish in
the society, they must be more responsive to the voice of social needs. What parallels thisrecognition is the issue of financial accountability. NGOs elsewhere now face mountingpressures to be more responsible for financial accounting to stakeholders. The issue offinancial accountability has invoked controversy in the nonprofit sector due to the misuseof funds by NGOs. Many NGO-involved accounting scandals have been documented,
some of which are so serious to induce a crisis of credibility. In a study that traced thecriminal wrongdoings that U.S. charitable NGOs committed, Fremont-Smith and Kosaras(2003) raised the problem of governance of NGOs. How to structure the transparent andaccountable accounting procedures is another complicated matter (see, for example,
Keating and Frumkin 2000). However, what is less controversial is that ICT-mediatedapplications can help NGOs disseminate the financial statement and accounting
information at less cost for internal and public monitoring.
Second, an effort to bridge the digital divide should be continued to achieve
empowerment development.6 Constructing infrastructure is the first critical step to derive
benefits from new technologies. Equally important is the inducement of more people touse ICTs, however. It can be inferred by analogy that a highway is of no use if there areno cars running on it. Articulated in this aspect are serious gaps in two aspects—a gap
between large, rich and small, poor NGOs; and a gap between the information haves andhave-nots. On the one hand, small or local NGOs are positioned in an inferior position in
adopting ICTs in the day-to-day operations due to limited human and budgetary resources
and a lack of awareness of the need of ICTs. As the survey results amply demonstrate,
Hong Kong is not an exception to the digital divide across large and small NGOs. On theother hand, social and economic inequalities are created by discrete capabilities of how to
6

The notion of digital divide is defined as “the gap between individuals, households,
businesses and geographical areas at different social-economic levels with regard both totheir opportunities to access information and communication technologies (ICTs) and totheir use of the Internet for a wide variety of activities (OECD 2001: 5).”use and access information among social groups (UNDP 2001; Nye 2002: 13). The main
targets of NGOs are most likely the socially disadvantaged including the elderly, the poor,
the sick, and the less educated. These social groups have, in most cases, fewer chances toknow about ICTs, and this circumstance forces them to be information illiterates. This isparadoxical because ICTs may render service recipients powerless rather than empower
them in shaping their well-being if the digital divide remains intact. Thus, it is crucial torealize that training and education programs are essentially required for the recipients tofully reap the benefits.
As addressed earlier, although both the “Digital 21 Strategy” and the “IT HongKong” campaign reflect the efforts of the government to bridge the digital divide, there
still exist serious discrepancies among social strata in utilizing ICTs. As Table 3 displays,
the poor, the elderly, and the less educated are disproportionately deprived of access to
the ICT facilities and services. In particular, most disadvantaged are those who arelocated at the extreme ends of each social stratum such as households with a monthly
income of less than HK$10,000 which constitute 25 percent of all households, the agegroup of over 65, and those with primary-or-below educational attainment. Assumingthat a large portion of these social groups might be the ultimate recipients of welfare
services provided by many NGOs, these groups are far from the abridged exploitation of
the benefits from ICTs. In this regard, it is imperative that both the government andNGOs provide computer facilities not only in convenient locations for the public as the
Digital 21 Strategy designs, but also in low income districts in the community as well. At
the same time, what is necessary for the government in alliance with NGOs is to takegreater responsibility to educate these groups on how to use and access ICTs.
[Table 2 about here]
Third, and related to the second, both governmental and individual NGOs should
actively participate in publicizing the benefits of ICT usage. In this aspect, a valuablelesson can be driven from the experience of the Independent Commission Against
Corruption (ICAC). The ICAC has been very successful to convey an anti-corruption
message to the public through various media including TV commercials. The ICAC’s

strenuous public campaigns have made the majority of the citizens alert of the dangers ofcorruption and support the agency activities (Choi 2004b). In a similar way, it is expectedthat active public campaigns will not only make the welfare recipients recognize thevalues of using ICTs, but also enable the general public to become aware of the programs
that NGOs are involved in.
Finally, much effort should be allotted to develop measurements to assess whether
the adoption of ICT applications have actually brought about intended benefits. For
example, is the provision of computer facilities in the public areas effective to improvethe capacity of welfare recipients to access the information they need? Does the NGOs’
usage of the financial management system increase a sense of financial accountability?
Does a human resource management application enhance the human-resource efficiency
at less cost? To capture the bona fide advantages, therefore, the government as well as theNGOs should devise methods that operationalize the impact of ICTs on managerial andservice delivery efficiency, and governance structures.

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Table 1 Major Indicators of ICT Development in Hong Kong (in percent)Indicator

2000

2003

Mobile phone penetration

N.A.

104

External communications capacity (in Gbps)

45

900

Household PC penetration

50

68

Household Internet penetration

36

60

Household penetration for broadband Internet service

18

50

PC penetration in the business sector

52

55Internet penetration in the business sector

37

48

Businesses adopted some form of e-business

N.A.

50

Source: Government of the HKSAR, 2004.

Table 2 Selected Survey Results of ICT Development in the Social Welfare Sector in
Hong Kong (in percent)Category
Infrastructure

Survey questions

Range

PCs being networked for sharing 81-100%
ICT applications/information
61-80%
41-60%
21-40%
20% or below
None
Communication Types of Internet connection
Telephone line
service(56K dial-up)
Broadband
Lease line
Application
Applications/systems currently
Financialsystems
in usemanagement
Human
resource
management
Intranet forinternal
communication
Membershipregistration
Programregistration
Knowledge
management
OthersNone
Applications/systems to be
Financial
developed in the next three years management
Human
resource
management
Intranet forinternal
communication
Membershipregistration
Programregistration
Knowledge
management

Group
Aa
24.4

Group
Bb
40.0

23.2
17.1
17.1
9.8
8.5
13.0

40.0
8.0
4.0
4.0
4.0
52.0

69.6
.9
74.7

24.3
6.1
82.1

35.6

75.0

44.8

82.1

41.4

42.9

23.0

28.6

20.7

21.4

13.8
14.9
35.6

17.9
14.9
64.3

39.1

53.6

32.2

50.0

35.6

46.4

34.5

39.3

25.3

50.0

Accessibility

Human ware

Provision of facilities for theelderly/disabled to access theInternet
NGOs having employees withformal ICT training
Sources of external ICT support

Others
None
Yes

10.3
26.4
59.8

25.0
7.1
92.9

No
Yes

40.2
26.4

7.1
82.1

No
ITRC
Hardwarevendors
Softwarevendors
ICT solution
vendors
Others
None

73.6
41.4
32.2

17.9
60.7
57.1

27.6

64.3

16.1

75.0

20.7
28.7

10.7
7.1

Source: SWD, 2003.
Notes: a and b denote small NGOs with less than 300 staff members (87 NGOs, or 75
percent, in a survey) and large NGOs with more than 300 staff members (28 NGOs, or 25
percent), respectively.

Table 3 PC and Internet Penetration Rates by Social Strata in 2001 (in percent)Social strata

PC

Internet

Less than 10,000

22.8

14.5

10,000-19,999

58.3

42.9

20,000-29,999

76.2

61.3

30,000-39,999

82.9

69.5

40,000-49,999

86.1

76.8

Over 50,000

89.5

82.7

Average

60.6

48.7

1-14

90.3

79.4

15-24

88.0

81.1

25-34

73.6

65.1

35-44

52.0

42.3

45-54

26.2

19.6

55-64

8.8

6.0

Over 65

1.2

0.8

Average

50.3

43.3

No schooling/Kindergarten/Primary

14.3

11.1

Secondary/Matriculation

60.0

50.1

Tertiary

91.1

86.9

Average

50.3

43.3

Monthly household income (in HK$)

Age

Education level

Source: ITSC (2002: 18-21).