1. The Andean Community Perspective on the Digital Divide October 2001 Public FTAA.ecom/inf/113 October 25, 2001 Original: Spanish Translation: FTAA Secretariat

2. General Remarks ICT application requires countries to adapt to a new concept of economy and society and, in particular, to a new form of trade. The new environment is coming up against conditions of imbalance and disparity within countries, as well as among countries and regions, which, together, are known as the “digital divide”. ICT will enable the narrowing of the digital divide if is applied as a development tool to solve fundamental economic and social problems and not as an end in itself.

3. Outlook... The divide does exist and it is necessary to focus attention on the determining factors of the digital divide in order to ensure that domestic policies, as well as the international agenda are geared towards reducing the divide, in keeping with the political, social and economic realities. Some elements that must be considered are: infrastructure, capacity and skills building, generation of local content and applications and the adapting of processes and administrative formalities to a digital environment.

4. I Infrastructure Fixed line telephone coverage Lines per thousand persons Source UNDP

5. Mobile Telephone Coverage Lines per thousand persons Source UNDP

6. Internet # hosts/99 % Internet Users Source ITU

7. In short, Despite substantial improvement made over the past decade, problems and marked differences persist in respect of infrastructure access, cost and use among the countries of the hemisphere. Significant strides in the privatization and liberalization of telecommunication markets do not seem to be sufficient to improve the infrastructure conditions. The deregulation exercise undertaken must be complemented by the adoption of standards which guarantee effective, fair and healthy competition and universal service measures that ensure coverage in far- flung areas of little commercial appeal.

8. II Development of Internal Capacities Average years of schooling (15 years or more) 2000 Public expenditure earmarked for education (% OF GDP) Fuente: PNUD

9. Technological Advancement Index Source UNDP

10. The challenge is... Human resources training Highly trained population for proper ICT application and developments custom made for local needs. The right environment in which qualified professionals can find stimulus for their advancement Incorporation of technological developments into the production and distribution of goods and services Absorption of technology into local production Catalyst for technological developments Innovation and R+D that support productive processes and social management, and promote business creativity.

11. III. Content and application The quest for a corpus of local content and applications, thereby offering a full range of information and services that meet the information needs and requirements for trade in goods and services. Governments must recognize and assume their obligation to post local content and promote and stimulate an industry for such content. Devise standardized mechanisms for measuring content Developments in Spanish Incentives for posting and updating content

12. Governments have undertakend policies and programs to promote and develop the Internet, declaring this tool one of public interest. It is early days yet to evaluate the results of government management in this field. Some of the challenges in this area include government- inititated action to reduce skewed conditions arising from circumstances such as low technology production, difficult access owing to the cost of importing technology, the emigration of professsionals qualified in areas related to information technology production and application,etc. Advances….

13. IV. Management process and formalities for the digital environment The incorporation of information technologies implies the modification of several conventional processes and the implementation of new processes which enable adjustment to a new environment. The main task in this area has been recognizing and ascribing to electronic transactions the same value as conventional transactions. Other processes include full operativity of certifying entities, reduction of high transport costs simplification of customs procedures.

15. Some conclusions Overall approach to the need to narrow the digital divide. Elements such as infrastructure, content, skills and processes described earlier, do not constitute in and of themselves, nor as a whole, for that matter, a magic formula for transforming social structures and economic imbalances. Genuine narrowing of the divide will be achieved through transforming the realities underpinning the divide and the use of IT as a tool and not as an end in itself. As regards infrastructure it is necessary that countries continue their current efforts to promote access to and ownership of IT, particularly community access.

16. The liberalization and deregulation efforts undertaken must be supplemented with measures that guarantee effective, wholesome and fair competition. Economically unprofitable areas should be covered by means of universal access. Consideration must be given to the convergence of technologies in developing infrastructure. With respect to training, invest resources in education and projects that ensure that beneficiares of studies remain; encourage and invest in technological research and development to find technological solutions to local realities;

17. It is necessary that technological resources be accessible to citizens through reasonably priced products and services. Support must be given to forming business incubators as a way of contributing to the promotion and development of innovative products in telecommunications and information technology. It is essential that progress in the region actively involve all the countries of the continent and benefits primarily the least advantaged.

18. To this end, developed countries must bolster their technical and financial cooperation to strengthen capacity to upload on-line content and applications covering all spheres of society’s activities both in terms of interpersonal relationships and relations between States and individuals.