Centre for Applied Studies in International Negotiations CASIN Geneva

Centre for Applied Studies in International Negotiations (CASIN) Geneva, August 29, 2002 ICT for Development Vanessa.Gray@itu.int International Telecommunication Union (ITU) Telecommunication Development Bureau (BDT) Telecommunication Data & Statistics Unit (TDS) Presentation overview 1. 2. ICT for Development What is the ITU and what does it do? Statistics and Analysis, and why it matters Achieving national e-readiness 3. Incorporating ICT for development 34. Lessons learned The benefits: ICT as a tool Is it this simple? Democracy Interconnectivity Note: The Democracy variable is derived from Freedom House data and the interconnectivity variable is based on data from numerous e-mail networks and measures the number of emails exchanged Source: RAND, 1997, http://www.rand.org/publications/RGSD/RGSD127/sec4.html ? How can ICT promote development? ICT for development Delivery of services Transparency Accountability Effectiveness Employment Economic growth Empowerment Participation Global economy/Economic trends Sector Agriculture Manufacturing Services Knowledge economy (ICT) Source: World Bank Share of world GDP < 10% < 20% >30% >40% Trend " " ! ! Global Telecom Revenues US$ Billion 1600 1400 1200 1000 800 600 400 200 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 2000 2001 2002 Services Equipment 335 290 210 230 260 310 Source: ITU 390 410 460 490 530 610 670 700 740 110 110 920 130 130 1010 160 1110 180 ICT in the economy • The effects of Korea’s investment into ICT, and particularly broadband technologies, are remarkable: Total production has increased from 15 billion Euros in 1991 to 119 billion Euros in 2000. This trend has equally contributed to the country’s international trade surplus, which increased from US$ 2.7 billion in 1991 to US$ 15.7 in 2000. Proportion of GDP per capita generated by ICT sector 20 15 10 5 0 1997 1998 1999 2000 2005 8.6 9.3 11.2 12.9 16.6 • industries roughly amount to US$ 7.07 billion to US$ 9.46 billion and has created from 4’900 to 8’300 jobs by 2001”: Ministry of Information and Communication, Korea, 2002. “The spillover effects of the investment in broadband Internet service on overall ICT as an economic driver • Last year India exported some US$ 6 billion of software, equivalent to 14 per cent of its total exports. The Indian software industry employs over 400’000 IT professionals. India IT Software and Services Exports, US$ billion $4.0 $2.7 $1.8 $0.7 $1.1 $6.2 95- 96- 97- 98- 99- 0096 97 98 99 00 01 ICT creates better jobs… # Many jobs of different levels / skills # # # # # Higher pay Higher productivity jobs “White-collar” jobs Socially respected jobs Women participation in the workforce Transparency Accountability Effectiveness Government ICT are revolutionizing the internal workings and external relations of public administrations ICT help to put countries in the spotlight (human rights abuses, corruption etc) Empowerment and participation Society Information flows in both directions and gives people a voice to influence policy making and to participate ICT provide the backbone of collaboration for civil society Transparency Accountability Effectiveness • Witness.org is a human rights website that supports local activists and uses PCs, imaging and editing software, satellite phones and email to reveal human rights violations to governments and communities In El Salvador Probidad (www.probidad.org) promotes democratization efforts by using ICT to monitor corruption, mobilize awareness about the complexities and costs of corruption and promote local and contextspecific measures to promote good governance • Transparency Accountability Effectiveness • South Africa’s Political Information and Monitoring Service (PIMS) aims to promote democracy by providing easy-to-understand summaries of complicated documents and by helping citizens to make submissions to parliament In Vietnam “Your lawyer” is a CD-ROM with information on citizens’ rights, how to start a business, protect land rights and get a divorce. It is distributed to media organizations, and representations in all provinces and peoples’ councils. • Delivery of services • The South Africa IT Strategy project (SAITIS) provides Internet access in schools as well as community Internet access points where public information terminals allow citizens to access government online services Delivery of services • In Estonia and in Hungary the state and local governments have set up rural telecottages to promote education and research in rural areas. Farmers are expanding their access to markets by offering their products online locally. Estonian web designers, some of which live in rural areas, have clients all over the world. For more ICT success stories… ITU’s Information and Communication Technology success factor home page http://www.itu.int/osg/spu/wsis-themes/ict_stories/index.html Reminder… Presentation overview 1. ICT for Development 2. What is the ITU and what does it do? 3. Statistics and Analysis, and why it matters 4. Lessons learned Achieving national e-readiness Incorporating ICT for development The benefits: ICT as a tool ITU • The International Telecommunication Union (ITU) is the United Nation specialized agency for telecommunications • Founded in 1865, the ITU has 189 Member states and 667 sector members • It is based in Geneva and has 11 regional offices around the world • The three Sectors of the ITU are – Radiocommunication – Telecommunication Standardization – Telecommunication Development Bureau (BDT) ITU’s purpose • The ITU is an impartial, international organization within which governments and the private sector work together to coordinate the operation of telecommunication networks and services and advance the development of communications technology • The International Telecommunication Union is unique among international organizations in that it was founded on the principle of cooperation between governments and the private sector • Its members include telecommunication policy-makers and regulators, network operators, equipment manufacturers, hardware and software developers, regional standardsmaking organizations and financing institutions The World Summit on the Information Society (WSIS) • To bring together major players to discuss the changes, the opportunities, and the dangers, emerging from the fundamental global transformation Participants will include heads of state, executive heads of the UN agencies, industry leaders, nongovernmental organizations, media representatives and civil society • Statistics and Analysis – and why it matters • As a UN agency the ITU is in charge of producing statistics covering its sector. This activity is part of the global statistical system of the UN • The Telecommunication, Data, and Statistics Unit collects data for some 200 economies • Data is collected by means of an annual questionnaire and provided by government ministries, regulators, and telecom operators Data dissemination • World Telecommunication Indicators Database ITU Statistical Publications Free statistics • • www.itu.int/ITU-D/ict/statistics/ Analysis – using and interpreting the statistics World Telecommunication Development Reports • Analyzing trends and developments • What has worked and what hasn’t? Telephone subscribers, millions 2,500 2,000 1,500 1,000 Trends: Mobile communications 97 countries have more mobile than fixed phones Fixed 500 0 1982 85 88 Mobile 91 94 97 2002:Mobile surpasses fixed 2000 03 Mobile has raised access to communications to new levels… policy-makers must look to mobile as a way of achieving social policy goals Identifying the Digital Divide 100% 80% 60% 40% 20% 0% Pop. Source: ITU Low Income Lower Middle Upper Middle High Income Phone Mobile Internet GDP The Internet divide 450 400 350 300 250 200 150 100 50 0 0.1 4 0.1 7 0.2 11 0.5 0.9 Internet users, m illions Developing Developed Per 100 inhabitants 24 17 2.3 1.6 33 41 1995 1996 1997 1998 1999 2000 2001 Source: ITU Understanding the Divide • The difference between fast & super-fast growth is often the quality & timing of reform 18 16 14 12 10 8 6 4 2 0 1991 1996 1998 2000 Algeria: Licenses 2nd mobile in 2001 Egypt: Licenses 2nd mobile in 1999 Morocco: Licenses 2nd mobile & privatizes operator in 1999 Tunisia: Licensing of 2nd operator pending Understanding the Divide Reasons for not using the Internet, %, 2001 • Awareness and content are major factors that influence Internet usage No need Don't have computer Not interested Don't know how to use Cost 40% 33% 25% 16% 12% Country Case Studies • • Launched in 2000 (6 studies) 7 studies in 2001 and 2 studies (so far) in 2002 – – – – – – – www.itu.int/ict/cs Country Overview Telecom sector Media sector Internet market Use in government, health, education and business Recommendations ITU Case Studies: Benchmarking countries Pervasiveness 4 3 Singapore Malaysia Indonesia Sophistication 2 1 0 Dispersion Organizational Absorption Connectivity ICT related statistics and the digital divide Hard factors •Infrastructure •Pricing/affordability Soft factors •Language/content •Education •Literacy Internet use = Infrastructure + Affordability + Human skills Pricing/affordability Dial-up Internet access per hour, US$, July 2001 $1.50 $1.25 $1.00 $0.75 $0.50 $0.25 $0.00 Singapore 0.35 0.24 0.16 Malaysia Indonesia Vietnam 0.84 0.78 Phone usage ISP usage 0.48 Infrastructure Traditional arguments for Digital Divide Affordability Mobile to Internet price ratio, 2001 Singapore Thailand Malaysia 14 14 11 9 9 4 26 Internet subscribers as % of telephone lines, 2001 Singapore Malaysia Thailand Cambodia Philippines Indonesia Vietnam Laos 13% 11% 9% 6% 4% 3% 36% 100% Only 4% of telephone lines in Vietnam used to access the Internet! VietNam Philippines Indonesia Laos It costs 9 times more to use a mobile than the Internet in Indonesia! Internet users are not close to level of telephone lines Mobile much more expensive than Internet yet there are many more mobile than Internet users Language/Content If you do not understand some basic English, you are not likely to use the Internet English profiency of Thai Internet User 2000 Fair 43% Limited 11% Good 38% None 1% Excellent 7% Source: ITU adapted from NECTEC. “Internet User Profile of Thailand 2000.” Education • 65% of Indonesian Internet users have a college degree or are in college 50% of Indonesians with college degree are online compared to 0.5% without Wiring Indonesian high schools would add another 10 million users (compared to only 2 million currently) Undergraduate 20% Masters 5% Doctorate 1% • Bachelor's 39% • High school 35% Profile of Indonesian Internet User Source: APJII Lessons learned… Know where you stand and where you are going….! To adopt the appropriate policies, a government needs to identify its SWOTs? • • • • Strengths Weaknesses Opportunities Threats • • • • • Collection of statistics (beyond the pure ICT statistics) Analysis Trends User profiles What are your needs? Vison! • Top-level support and a vision for ICT development • Coordination of ICT initiatives to avoid duplication and guarantee success • A comprehensive ICT and e-development strategy Private/public partnership Governments – need to attract and work closely with the private sector – need to create the appropriate environment for private companies to invest “A combination of well-designed concession agreements with foreign telecommunications operators, clear government support for a broad e-readiness program, aggressive public awareness-raising, and governmental commitment to the digital revolution have made for Estonia’s successful adoption of ICT to both position the economy, but also to address selected development goals” Toomas Hendrik Ilves, Estonian Minister of Foreign Affairs, 2001 Be critical! • Objectivity about achievements/goals • ‘We can do better’ mentality External aid • Governments can learn a lot from other countries, including from the mistakes they made. Cooperating with other countries and participation in international/regional forums and meetings is of great importance. When asking for development assistance governments should • develop their own ideas/projects because no one knows their needs better than they themselves • get involved in the project, without letting outsiders decide unilaterally • Have a (financial) stake in the project • Incorporate ICT element in projects • Thank you Vanessa.Gray@itu.int