E-governance is beyond the scope of e-government. While e-government is defined as a mere delivery of government services and information to the public using electronic means, e-governance allows direct participation of constituents in government activities. Blake Harris summarizes the e-governance as the following; E-governance is not just about government web site and e-mail. It is not just about service delivery over the Internet. It is not just about digital access to government information or electronic payments. It will change how citizens relate to governments as much as it changes how citizens relate to each other. It will bring forth new concepts of citizenship, both in terms of needs and responsibilities. E-governance will allow citizens to communicate with government, participate in the governments' policy-making and citizens to communicate each other. The e-governance will truly allow citizens to participate in the government decision-making process, reflect their true needs and welfare by utilizing e-government as a tool.

Introduction of e-governance is a key to make information technology (IT) relevant to ordinary citizens in Latin America and Caribbean countries where a large numbers of population are poor and a digital divide is a significant problem. E-governance will allow ordinary people to constantly interface with the government in both local and central level on various matters.

The Bank's involvement in modernization of the government thus is not limited to provide the most advanced Information Communication and Technology to the government so that government can provide its information and service more effectively and efficiently to the citizens. The Bank makes sure that the government will allow all the citizens to access to information or services (any citizens should not be excluded), to articulate their needs and to participate in formulating policy and regulation that will improve their social welfare and well being. The ability of Central government to understand all needs from ordinary local citizens is limited. Therefore, the participation of citizens in local level is extremely important (link with creative community initiative). The true e-governance should be attained by interface of citizens both with central and local government.