Governments have long known that they can promote economic growth by investing in roads, power grids, and other physical infrastructure. But only recently have they realized that investing in e-government—the digital channels, apps, and websites that link citizens to the public sector—can produce equally important economic rewards. A new company might be able to open more quickly and preserve its capital, for instance, thanks to an online process that eliminates red tape and minimizes transaction costs. Overall, a McKinsey analysis suggests that capturing the full potential of government digitization could free up to $1 trillion annually in economic value worldwide, through improved cost and operational performance.1
