Session II: Session II: ICT Strategies for Development: ICT Strategies for Development:

Key elementsKey elements

Cécile Barayre

Marta Pérez Cusó

ICT and E-Business Branch, SITE

UNCTAD Short Courses on Key Issues on the International Economic Agenda for Permanent Missions in Geneva, Monday 23 April 2007

Promoting growth and development through ICTs

Presentation outline

A. Design of national ICT strategy

B. Implementation and institutional framework

C. Review and evaluation

A. Design of national ICT strategy

National ICT Strategies: main objectives

• Raise awareness about the role of ICT for development, its benefits and requirements

• Create an enabling environment for the adoption of ICT: access, regulations, incentives, payments…

• Build capacity & skills for the information economy

National ICT policy framework

Source: UNCTAD (2003) E-Commerce and Development Report

Basic elements of an ICT policy framework

1. ICT infrastructure, connectivity and access

2. Legal and regulatory framework

3. ICT human resources and skills

4. Business development

5. ICT-related trade and investment policies

6. E-government

7. Technological innovation (R&D)

• ICT infrastructure: –Accessible, affordable, good quality–Costly: promote appropriate investment climate –Deployment of broadband

• Create universal access to minimize digital exclusion–Shared access models–Universal service obligations–Public-private partnerships

• Appropriate technologies (Hardware & Software)

1. ICT infrastructure, connectivity & access

What is FOSS?

Free and Open-Source Software: a software which has its source code open

• Free as in freedomSocial movement. Four freedoms:

0.- Freedom to run it

1.- Freedom to study & modify it

2.- Freedom to redistribute copies

3.- Freedom to publish a modified version

• Open-Source Software

Practical solution, development methodology

Free and Open Source software

• Consider adopting FOSS to contribute to the narrowing of the digital divide

• Governments important role as designers of policies on technologies and as a de-facto market

• Human resources development & training on FOSS

2. Legal and regulatory framework

• Telecom regulation• Investment regulation• E-commerce laws• E-payment• Taxation• Trade policies(see session 3)

3. Human resources and skills

• ICT skills in primary and secondary education

• IT graduates and programs (Universities)

• Training projects (public and private sectors)

IT education in Chile

Red Enlaces (‘Network links’)• Launch 1992: 12 schools• By 2005: +9400 schools in rural and urban areas• Continuous effort: introducing broadband

Source: Red enlaces www.enlaces.cl, UNCTAD (2003)

4. Business development

• Promote the use of ICTs by enterprises• SME capacity building and finance (venture

capital)• Create local content• Public procurement• Online tools (e-marketplaces)

Example: Grameen phone

• 10 million mobile phone subscribers

• Village Phone Program

Source: grameenphone.com, tudakozo.vodafone.hu, UNCTAD (2006)

5. ICT-related trade and investment policies

• Increase trade in ICT goods and services

• Attract FDI

• Promote ICT-related activities (e.g. outsourcing/offshoring)

Smart village: an Egyptian initiative• State-of-the-art infrastructure:

– High-speed connectivity for integrated services (data, audio and video)

• Customers:– Multinationals (Microsoft, Alcatel, Vodafone, HP and Ericsson)– Technology incubators & SMEs– MCIT and NTRA moved in Dec. 2004 as Phase II.– A financial district in Phase III (2006-2007) for the Egyptian and

Arab Stock Exchanges and other financial institutions• A high-tech business park:

– Over 300 Acres of land (90% are green areas)– Hosting 54 buildings (336 000 sq.m. of office space)– Hosting 25,000 – 30,000 jobs

6. E-government

Three main roles for Governments:

• Users of ICT

• Facilitators

• Leaders

Steps to e-government

Source: Finland Government (2003) as cited by UNCTAD (2004) E-Commerce & Development Report 2004

Some figures on e-government in 2005

Source: UNDESA, 2005

• 179 of 191 member states had a website • 88 % of all countries provided info online• Only 1/3 of all countries provided public services online

Serious access-divide

7. Technological innovation

• Develop capacities through research and development programmes

• Provide incentives to private sector investment in R&D

Designing and implementing ICT policies

Key questions

• How will the implementation of the strategy be organized and coordinated?

• Who are the main partners and stakeholders involved in the implementation process?

• Which policy areas should be given priority over others re: resources?

• What institutional aspects need to be taken into consideration?

Designing and implementing ICT policies

Lessons learned - successful ICT policies need:

• Leadership from the top (head of state)• Involve all stakeholders in implementation• A holistic approach covering all sectors• A liberalized economic environment• Monitoring of ICT developments• Tailoring towards countries’ requirements• Mainstreaming ICTs into national economic and

social development plan

B. Implementation and institutional framework

• Promoting pro-poor policies

• Measuring and monitoring: ICT indicators and ICT policy review

Pro-poor ICT Strategies

ICTs for Development vs.

Pro-poor ICTs

Poverty = multiple deprivation

Pro-poor ICTs: Current thinking

• ICTs a tool for poverty, necessary but insufficient

• Different technologies contribute differently • Embed pro-poor ICT efforts in poverty

reduction initiatives• Ensure impact by scaling-up projects• Support needed at all levels • Promote research focused on pro-poor ICTs

Pro-poor ICTs: Institutional barriers

• Cross-cutting nature of ICTs for poverty reduction

• Working with others is not easy• Limited quantitative & qualitative assessments • Scaling-up: + than replicating good projects• Limited incentives to coordinate strategies• Power imbalances

UNCTAD’s Pro-poor ICT framework

12 Cs Connectivity

Content

Community

Commerce

Capacity

Culture Cooperation

Capital Context

Conti

nuity

Control

Coherence

Macro

Meso

Micro

Vision

Assumptions

Conflicts

The 12 C’s

Connectivity •Accessible & affordable Infrastructure & technology

Cooperation •All stakeholders support the initiative

Content •Relevant & accessible•Users participate in its development

Capital •Financial sustainability

Community •Provile & level of participation of users

Context •Adapted to context•Influences context

Commerce •Supports economic activities & livelihoods

Continuity •Monitoring & evaluation•Flexible promotes learning

Capacity •User’s capacity•Organisation’s capacity

Control •Beneficiaries’ ownership•Stakeholders accountable

Culture •Supportive culture•Learning culture

Coherence •Coherent with other initiatives to reduce poverty

Measuring and monitoring

• Statistical data critical for policy makers• What to measure? Access, use & impact• Data available: statistics & estimates/surveys

for OECD countries - limited for developing countries

• Global initiative: Partnership on measuring ICT4D. Members: ITU,OECD, UNCTAD, UNESCO, Institute for Statistics (UN ICT Task Force - GAID),World Bank, ECA, ECLAC, ESCAP, ESCWA, Eurostat

ICT growth in Egypt

• Investment of ICT Companies in Egypt exceeded USD 6 billion over past 8 years

• Increase in number of ICT companies to 1920

• Current Number of Employees of private ICT companies exceeds 45,000

Closing the data gap in developing countries

Source: UNCTAD (2006)

C. Review and evaluation

No information availableCountry in the process of developing a national ICT StrategyCountry with a national ICT Strategy

Source: UNCTAD (2006)

National ICT plans in developing and transition countries and territories (2006)

How many developing countries have adopted an ICT strategy or master plan?

UNCTAD survey on ICT master plans

• 181 developing and transition countries and territories surveyed (UNCTAD 2006)

• 80 (44%) have adopted an ICT plan• 36 (20%) are designing an ICT plan• ICTs: part of many developing countries'

development plans and poverty reduction strategies

Example: Rwanda

National ICT plan

NICI‘01-’05

Human Resource Development AgencyTraining of civil servants ICT in higher learningPromotion of women in ICT PCs in schools & train IT teachers

RITA – Rwanda Information Technology Authority

StrategyStrategy ImplementationImplementation EvaluationEvaluation

included

Human resources development

Some progress:

PCs now in 1138 schools

Still challenges:

Only 26% of the plan achieved

Major cause

Lack of qualified human resources

The way ahead: ICT policy reviews

• National ICT plans exist in many developing countries

• Need to assess and evaluate policies

• ICT monitoring and measurement

• UNCTAD: ICT policy review framework for the information economy

ICT infrastructure & access Access to & use of ICTs by households and individuals Use of ICTs by businesses ICT sector and trade in ICT goods Other ICT indicators

ICT environment ICT policy framework

Objectives and priority areas & strategic approach ICT infrastructure development Legal and regulatory framework ICT human resources/skills Business development ICT-related trade & investment policies E-government Technological innovation (R&D)

Implementation &Institutional framework

Integration of ICT policies in national development plans /PRSP Institutional setup for implementation of ICT plan Policy coordination Financial resources Monitoring and evaluation

Policy recommendations Tra

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Revised ICT master plan/policies

Assessment of existing ICT master plan

Indicators of achievement – identification of success factors, best practices, lessons learnt and challenges ahead

ICT uptake and use indicators

Source: UNCTAD (2006)

UNCTAD ICT policy review model framework

• Generic model > could be used as a basis by developing countries

• Adapted to the needs of each country

• Could include additional elements to reflect specific national aspects not covered by the model

UNCTAD ICT policy review model framework

Conclusion

National ICT Strategies:

• Promote infrastructure, connectivity and access• Build human competence• Adequate legal and regulatory framework• Business sector policies• E-government• Technology and innovation• Carry out periodic ICT policy reviews – role of ICT

indicators

Thank you for your attentionAny questions or comments?

www.unctad.org/ecommercemeasuring-ict.unctad.org

susan.teltscher@unctad.org