Published on October 15, 2014
1. ICT for Development Content Borrowed from the World Bank
2. Outline • ICT and Development • The Regulatory Environment • Reality check • Concluding remarks
3. Knowledge makes the difference between 14 12 10 8 6 4 2 0 Thousands of constant 1995 US dollars Rep. of Korea Ghana 1960 1965 1970 1975 1980 1985 1990 1995 2000 Difference attributed to knowledge Difference due to physical and human capital poverty and wealth Source: World Development Report, 98/99
4. Knowledge Changes the Development Process Creation and effective use of knowledge are key to rapid economic growth ICT is changing the terms under which knowledge can be created and disseminated: - ICT facilitates the process of codification and transmission of knowledge about technology; - ICT enhances the positive learning externalities of knowledge generation by magnifying the possibilities for recombination of ideas and information; - ICT dilutes the “tyranny” of geography by providing new ways for researchers to escape national boundaries. The rate of international co-authorship of scientific and technical papers, for example, has increased significantly over the last decade; - ICT increases the “distribution power” of innovation systems, diminishing the time to market of new products and services, while enhancing the dissemination, application, and use of “mature” technologies.
5. But can ICT be of any help in LDCs?
6. ICT and development ICT and Economic Growth - enhanced competitiveness - increased business opportunities - access to market for rural communities ICT and Improved Delivery of Social Services - health/education/environmental/microfinance services - reducing vulnerability to natural disasters ICT for Greater Transparency - improved efficiency on government procurement - reduced corruption - increased civil society participation ICT for Empowerment of the Poor - allowing the poor to better communicate their concerns
7. The concept of sustainable development Economic Sustainability (productivity) Social Intergeneration Sustainability (equity) Environmental Sustainability (protect/enhance natural resources) Concerns
8. Digital divide • Infrastructure (income levels, rural vs. urban) • Digital literacy (barriers to absorption of IT) • Content • Gender • Large companies vs SMEs… • E-business practices
9. Regulatory Maze • Telecommunications and Banking
10. The regulation maze Layers of communication systems Layer characteristics Relevant regulations and policies Relevant fora for international negotiation/coordi nation/debate Content layer Services, images, and applications transmitted by the network Cyberlaws, taxation, IPRs, consumer, privacy and data protection, competition law, content regulation, trade policies WTO, OECD, WIPO… Code layer Protocols and software that make the network run Internet governance, competition policy, IPRs, standards ICANN, ISOC, ITU, WIPO… Physical infrastructure layer Wires, cables, computers, satellites… across which bits of information travel Telecom regulation, competition policy, IPRs, trade policies, standards and Now Banking WTO (BTA, ITA), ITU, WIPO…
11. Reality check: implications for developing countries • Infrastructure: rapid improvement but major gaps in coverage/affordability • Regulatory environment: progress + complexity (cyberlaws, security, PKI, IPRs, content regulation, e-payment infrastructure, privacy…) • Digital literacy: institutional constraints in the educational sector + IT HR development at firm level • Content: localization/relevance/IPRs
12. Concluding remarks • E-business and ICT use will continue to expand on a global basis and their benefits can be substantial not only at firm level, but also in promoting trade and enhancing productivity at a macro level; • Convergence in e-business practices can happen (developing countries and industrialized countries, SMEs and large enterprises), but … • Unless governments provide the proper regulatory environment for private action and support efforts to expand digital literacy, with special attention to the needs of SMEs, the digital divide between the developed and the developing world, at the level of business practices, will widen.
13. Concluding remarks (cont.) • More evolution than revolution, but potential for significant distribution impacts (within nations and internationally), particularly, as e-commerce practices spread. • Importance of keeping in focus the implications of the regulatory environment for innovation • Cross-border disputes will also expand in the absence of regulatory convergence (no hope for advancing this agenda in a significant manner in the WTO in the near future ).
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