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Centre for Applied Studies in International Negotiations (CASIN)

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1 Centre for Applied Studies in International Negotiations (CASIN)
Geneva, August 29, 2002 ICT for Development International Telecommunication Union (ITU) Telecommunication Development Bureau (BDT) Telecommunication Data & Statistics Unit (TDS)

2 Presentation overview
ICT for Development What is the ITU and what does it do? 3. Statistics and Analysis, and why it matters 34. Lessons learned Achieving national e-readiness Incorporating ICT for development Definition of ICT: Information and Communication technologies include the working of all digital communication networks (principally the Internet), wireless networkds, and radio broadcast networks. Collecting and disseminating data and statistics Analysis: ITU Case Studies. The World Telecommunication Development Report The Digital Divide The benefits: ICT as a tool

3 Is it this simple? Democracy Interconnectivity
Further evidence of this comes from another set of quantitative analysis conducted at RAND, indicating a strong correlation between democracy (which also utilizes data from Freedom House as a proxy measure of democracy) and electronic network interconnectivity, which in this case consists of a metric based on . The Freedom House metric is derived from scores assessed relative to checklists of questions about fair elections, freely elected representatives, independent media, free businesses, corruption, etc., and objective and subjective assessments. At the end of each year, Freedom House reports a rating from 1 to 7 for every country, from the greatest freedom to the least, respectively; this scale is then inverted and normalized to 100. The result of these cosmetic conversions is a metric with 13 discrete values, the maximum democracy rating is 100 (instead of 1) and the minimum is 0 (instead of 7) Interconnectivity Note: The Democracy variable is derived from Freedom House data and the interconnectivity variable is based on data from numerous networks and measures the number of s exchanged Source: RAND, 1997,

4 How can ICT promote development?

5 ICT for development Delivery of services Employment Economic growth
Transparency Accountability Effectiveness Empowerment Participation

6 Global economy/Economic trends
Sector Share of world GDP Trend Agriculture < 10% Manufacturing < 20% Services >30% Knowledge economy (ICT) >40% Source: World Bank

7 Global Telecom Revenues
US$ Billion Source: ITU

8 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 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. “The spillover effects of the investment in broadband Internet service on overall 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.

9 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.

10 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

11 Transparency Accountability Effectiveness
Empowerment and participation 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) 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 ICT (through their control, surveillance, communication and knowledge management potential) are revolutionizing the internal workings and external relations of public administrations ICT help to put countries in the spotlight (human rights abuses, corruption etc) Civil society uses ICT as tools to strengthen its influence: publishing technology, mailing lists, collaboration technologies, conferencing, virtual communities, and electronic/online polling and surveys. Individuals, NGOs, national governments, and supranational institutions are empowered insofar as they can communicate their stories, agendas, laws and agreements respectively. This facilitates the networking and mobilizing functions and avoids duplication of work.

12 Transparency Accountability Effectiveness is a human rights website that supports local activists and uses PCs, imaging and editing software, satellite phones and to reveal human rights violations to governments and communities In El Salvador Probidad ( promotes democratization efforts by using ICT to monitor corruption, mobilize awareness about the complexities and costs of corruption and promote local and context-specific measures to promote good governance

13 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.

14 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

15 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.

16 For more ICT success stories…
ITU’s Information and Communication Technology success factor home page

17 Reminder… Presentation overview
ICT for Development 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

18 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) Their activities cover all aspects of telecommunication, from setting standards that facilitate seamless interworking of equipment and systems on a global basis to adopting operational procedures for the vast and growing array of wireless services and designing programmes to improve telecommunication infrastructure in the developing world. Each of the three ITU Sectors works through conferences and meetings, where members negotiate the agreements which serve as the basis for the operation of global telecommunication services. Study groups made up of experts drawn from leading telecommunication organizations worldwide carry out the technical work of the Union, preparing the detailed studies that lead to authoritative ITU Recommendations ITU-R draws up the technical characteristics of terrestrial and space-based wireless services and systems, and develops operational procedures. It also undertakes the important technical studies which serve as a basis for the regulatory decisions made at radiocommunication conferences. In ITU-T, experts prepare the technical specifications for tele-communication systems, networks and services, including their operation, performance and maintenance. Their work also covers the tariff principles and accounting methods used to provide international service. ITU-D experts focus their work on the preparation of recommendations, opinions, guidelines, handbooks, manuals and reports, which provide decision-makers in developing countries with `best business practices' relating to a host of issues ranging from development strategies and policies to network management.

19 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 standards-making organizations and financing institutions

20 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, non-governmental organizations, media representatives and civil society (the industrial society is turning into an information society) The World Summit on the Information Society will provide a unique opportunity for all key stakeholders to assemble at a high-level gathering and to develop a better understanding of this revolution and its impact on the international community. It aims to bring together Heads of State, Executive Heads of United Nations agencies, industry leaders, non-governmental organizations, media representatives and civil society in a single high-level event. The roles of the various partners (Member States, UN specialized agencies, private sector and civil society) in ensuring smooth coordination of the practical establishment of the information society around the globe will also be at the heart of the Summit and its preparation

21 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

22 Data dissemination World Telecommunication Indicators Database
ITU Statistical Publications Free statistics CD-ROM format or online download Updated every 3 months, this database contains data from , for more than 200 countries and 80 telecommunication/ICT statistics Yearbook of Statistics Regional reports Twelve reports were published for sale during the period These include three editions of the Yearbook of Statistics, the flagship World Telecommunication Development Report (WTDR) in 1999 with the theme mobile cellular, a topical report on international telecom traffic trends—Direction of Traffic—published in conjunction with TeleGeography, and regional reports to coincide with Telecom exhibitions (Americas (2000), Asia-Pacific (2000) and Africa (2000)). In addition, three editions of the electronic World Telecommunication Indicators database were generated.

23 Analysis – using and interpreting the statistics
World Telecommunication Development Reports Analyzing trends and developments What has worked and what hasn’t?

24 Trends: Mobile communications
Telephone subscribers, millions 97 countries have more mobile than fixed phones Fixed 2002:Mobile surpasses fixed With just short of one billion subscribers at the end of 2001, mobile is poised to take over from fixed lines in the early part of 2002 as the network with the most users (see Figure). It may be hard to believe, but less than one per cent of the world’s inhabitants had access to a mobile phone in 1991 and only one third of countries had a cellular network. By the end of 2001, over 90 per cent of countries had a mobile network, almost one in every six of the world’s inhabitants had a mobile phone and almost 100 countries had more mobile than fixed telephone subscribers. Mobile has raised access to communications to new levels. In developing nations, and particularly in the LDCs, mobile is increasing telephone access in a surprisingly quick time. In developed countries, mobile penetration rates continually surpass industry forecasts. Wireless technologies and mobilephones are rapidly becoming the preferred means of communication and can be rolled out much more quickly than the old fixed-line model. Africa was the first region of the world where the number of mobilephones overtook fixed-line users. Mobile Mobile has raised access to communications to new levels… policy-makers must look to mobile as a way of achieving social policy goals

25 Identifying the Digital Divide
Source: ITU

26 The Internet divide Source: ITU

27 Understanding the Divide
The difference between fast & super-fast growth is often the quality & timing of reform

28 Understanding the Divide
Awareness and content are major factors that influence Internet usage

29 Country Case Studies Launched in 2000 (6 studies)
7 studies in 2001 and 2 studies (so far) in 2002 Country Overview Telecom sector Media sector Internet market Use in government, health, education and business Recommendations In 2000 a new activity was launched, the Internet Case Studies. This arose from the desire of ITU members to have more information about Internet developments. The reports provide an overview of the telecommunication and Internet sector, show how ICT is being used in main sectors of the economy, and make recommendations. The aim is to understand the factors, which accelerate or hinder the development of the Internet in different environments and, through comparative analysis, to advise policy makers and regulatory agencies on appropriate courses of action. Help countries understand what other countries have done. First round of countries (2000) was one from different regions and included Nepal, Uganda, Bolivia, Egypt, Singapore and Hungary. In 2001 we adopted a regional approach and studied the following countries from South East Asia: Malaysia, Indonesia, Vietnam, Cambodia, Thailand, Laos, Philippines. This year we have, so far carried out case studies in Cape Verde and South Korea. We use a methodological framework for analyzing the state of Internet development

30 ITU Case Studies: Benchmarking countries
To measure e-readiness and to benchmark a country’s ICT situation, we have adopted a rather broad or inclusive framework that allows us to take into consideration the information, data and statistics that have an impact on a country’s Internet situation. This framework considers 6 dimensions, each of which has five values ranging from zero (non-existent) to four (highly developed). The dimensions that we use are Pervasiveness, Geographic Dispersion, Sectoral Absorption, Connectivity Infrastructure, Organizational Infrastructure, and Sophistication of Use. Without going into any detail, these dimensions consider, for example, the number of Internet users but also how people use the Internet. Is there useful information for the population, in their language and relevant to them? How much does it cost to connect to the Internet and is the Internet available from everywhere in the country. But also: how does the government use the Internet and does it make any applications available online etc…

31 ICT related statistics and the digital divide
Hard factors Infrastructure Pricing/affordability Soft factors Language/content Education Literacy Internet use = Infrastructure + Affordability Human skills If we want to understand a country’s ICT situation and its e-readiness, we have to go beyond the statistics of Internet user/population, mobile user/population etc. There are other factors, that are very important and that have a great impact on the ICT situation, such as the price of ICT in relation to a country’s GDP per capital, Education, Literacy, and language factors

32 Pricing/affordability
The price of Internet access remains an important factor and we have seen several cases (such as Laos, Cambodia, Cape Verde), where prices are a barrier to Internet access. If the country wants to increase the number of Internet users, it will have to lower access prices.

33 Traditional arguments for Digital Divide
Infrastructure Affordability It costs 9 times more to use a mobile than the Internet in Indonesia! Only 4% of telephone lines in Vietnam used to access the Internet! The typical policy argument for the Digital Divide is that it is caused by a lack of infrastructure or that service is unaffordable or both. Therefore much emphasis is placed on regulatory issues such as opening markets, encouraging foreign investment, etc. as if this is the panacea to solving the Digital Divide. All of the countries we studied have done that to some degree (an interesting argument against is that investors will not go to small markets that are too open—Laos, Cambodia) and yet the results have not been dramatic in reducing the digital divide. Furthermore, the evidence suggests that there is infrastructure that is not being used and that Internet may not be as unaffordable as imagined. Nation-wide dialing code that provides access at local call charge. At the end of 2000 there were 22 million mobile subscribers in the region and only 5.3 million Internet subscribers. Singapore has given freee Internet access tot anyone with telephone. 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

34 Language/Content If you do not understand some basic English, you are not likely to use the Internet Thailand has carried out a very interesting Internet user profile, with statistics on who uses the Internet and what people use if for. To be able to increase the number of Internet users, we need to know, where the bottlenecks are. Is it the language and only those who speak English use the Internet or is it the content that is available? Apart from the language is it therefore also very important to keep a record on the Internet sites that people visit, for example, in the form of a top 10 internet sites. Are they local or sites in other countries? What are people interested in and what is useful for them? These are the kind of questions that the right statistics on the user can help us to answer. Either the user can adapt to the Internet (learn another language) or the Internet has to be adapted to the user (create content) Source: ITU adapted from NECTEC. “Internet User Profile of Thailand 2000.”

35 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) This show that in Indonesia unless you have at least a high school education, you will not use the Internet. APJI”: acronym for Indonesian Internet service provider association. 3rd point: getting high schools students online, you would add another 10 million users (which would be roughly 5 percent) added to the currently 2 percent Indonesian I nternet users.

36 Lessons learned… Know where you stand and where you are going….!
Collection of statistics (beyond the pure ICT statistics) Analysis Trends User profiles What are your needs? To adopt the appropriate policies, a government needs to identify its SWOTs? Strengths Weaknesses Opportunities Threats Point one Though the quality and quantity of information has recently improved, there are still wide variations in definitions, comparability and scope. There is a shortage of publicly available data on Internet accessibility, particularly for developing countries. Standard indicators and definitions are needed to measure Internet access across countries. In many cases, we have also come across studies and analysis that exist within a country but that are simply not made available or disseminated.

37 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

38 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

39 Be critical! Objectivity about achievements/goals
‘We can do better’ mentality

40 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

41 Thank you

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