1. Insight ReportThe Global InformationTechnology Report 2014Rewards and Risks of Big DataBeat Bilbao-Osorio, Soumitra Dutta, and Bruno Lanvin, Editors

2. 2014 World Economic Forum 3. Insight ReportThe Global InformationTechnology Report 2014Rewards and Risks of Big DataBeat Bilbao-Osorio, World Economic ForumSoumitra Dutta, Cornell UniversityBruno Lanvin, INSEADEditors 2014 World Economic Forum 4. The Global Information Technology Report 2014 isa special project within the framework of the WorldEconomic Forums Global Competitiveness andBenchmarking Network and the Industry PartnershipProgramme for Information and CommunicationTechnologies. It is the result of collaboration betweenthe World Economic Forum and INSEAD.Professor Klaus SchwabExecutive ChairmanEspen Barth EideManaging Director, Centre for Global StrategiesEDITORSBeat Bilbao-Osorio, Associate Director and SeniorEconomist, Global Competitiveness and BenchmarkingNetwork, World Economic ForumSoumitra Dutta, Dean, Samuel Curtis Johnson GraduateSchool of Management, Cornell UniversityBruno Lanvin, Executive Director, EuropeanCompetitiveness Initiative, INSEADGLOBAL COMPETITIVENESS AND BENCHMARKINGNETWORKJennifer Blanke, Chief Economist, Head of the GlobalCompetitiveness and Benchmarking NetworkCiara Browne, Associate DirectorRoberto Crotti, Quantitative EconomistGemma Corrigan, Project AssociateAttilio di Batista, Junior Quantitative EconomistGalle Dreyer, Project AssociateMargareta Drzeniek-Hanouz, Director, Senior Economist,Head of Competitiveness ResearchThierry Geiger, Associate Director, EconomistTania Gutknecht, Community ManagerCaroline Ko, EconomistCecilia Serin, Senior AssociateINFORMATION AND COMMUNICATION TECHNOLOGYINDUSTRIES TEAMAlan Marcus, Senior Director, Head of Information andCommunication Technology IndustriesAurlie Corre, Team Coordinator, TelecommunicationIndustryAurlien Goutorbe, Senior Content Manager,Telecommunication IndustryQin He, Associate Director, Telecommunication IndustryWilliam Hoffman, Associate Director, Head of PersonalData InitiativeDimitri Kaskoutas, Senior Community Associate,Telecommunication IndustryDanil Kerimi, Director, Government Affairs, Informationand Communication Technology IndustriesElena Kvochko, Manager, Information TechnologyIndustryDerek OHalloran, Associate Director, Head ofInformation Technology IndustryMichele Petruzziello, Senior Partnership Development,Global Leadership FellowAlexandra Shaw, Senior Community Associate,Information Technology IndustryBruce Weinelt, Director, Head of TelecommunicationIndustryWorld Economic ForumGenevaCopyright 2014by the World Economic Forum and INSEADAll rights reserved. No part of this publication may bereproduced, stored in a retrieval system, or transmitted,in any form or by any means, electronic, mechanical,photocopying, or otherwise without the prior permission ofthe World Economic Forum.ISBN-13: 978-92-95044-63-0ISBN-10: 92-95044-63-0This report is printed on paper suitable for recycling andmade from fully managed and sustainable forest sources.Printed and bound in Switzerland by SRO-Kundig.Visit The Global Information Technology Report page atwww.weforum.org/gitrWe thank Hope Steele for her excellent editing work andNeil Weinberg for his superb graphic design and layout.The terms country and nation as used in this report donot in all cases refer to a territorial entity that is a stateas understood by international law and practice. Theterms cover well-defined, geographically self-containedeconomic areas that may not be states but for whichstatistical data are maintained on a separate andindependent basis. 2014 World Economic Forum 5. The Global Information Technology Report 2014 | iiiContentsPreface vJennifer Blanke and Alan Marcus (World Economic Forum)Foreword viiJohn Chambers (Cisco Systems)Foreword ixCesare Mainardi (Booz & Company)Executive Summary xiBeat Bilbao-Osorio (World Economic Forum), Soumitra Dutta(Cornell University), and Bruno Lanvin (INSEAD)The Networked Readiness Index Rankings xixPart 1: The Current Networked 1Readiness Landscape and Rewardsand Risks of Big Data1.1 The Networked Readiness Index 2014: 3Benchmarking ICT Uptake in a Worldof Big DataBeat Bilbao-Osorio and Roberto Crotti (World Economic Forum),Soumitra Dutta (Cornell University), and Bruno Lanvin (INSEAD)1.2 The Internet of Everything: How 35the Network Unleashes the Benefitsof Big DataRobert Pepper and John Garrity (Cisco Systems)1.3 Big Data Maturity: An Action Plan 43for Policymakers and ExecutivesBahjat El-Darwiche, Volkmar Koch, David Meer, Ramez T. Shehadi,and Walid Tohme (Booz & Company)1.4 Big Data: Balancing the Risks and 53Rewards of Data-Driven Public PolicyAlex Pentland (MIT)1.5 Managing the Risks and Rewards 61of Big DataMatt Quinn and Chris Taylor (TIBCO)1.6 Rebalancing Socioeconomic 67Asymmetry in a Data-Driven EconomyPeter Haynes (Atlantic Council) and M-H. Carolyn Nguyen (Microsoft)1.7 Building Trust: The Role of 73Regulation in Unlocking the Valueof Big DataScott Beardsley, Lus Enrquez, Ferry Grijpink, Sergio Sandoval,Steven Spittaels, and Malin Strandell-Jansson (McKinsey &Company)1.8 From Big Data to Big Social 81and Economic Opportunities: WhichPolicies Will Lead to Leveraging Data-Driven Innovations Potential?Pedro Less Andrade, Jess Hemerly, Gabriel Recalde, andPatrick Ryan (Public Policy Division, Google, Inc.)1.9 Making Big Data Something 87More than the Next Big ThingAnant Gupta (HCL Technologies)Part 2: Country/Economy Profiles 95How to Read the Country/Economy Profiles ..................................97Index of Countries/Economies ........................................................99Country/Economy Profiles ............................................................100Part 3: Data Tables 249How to Read the Data Tables .......................................................251Index of Data Tables .....................................................................253Data Tables ..................................................................................255Technical Notes and Sources 323About the Authors 329Partner Institutes 335Acknowledgments 343 2014 World Economic Forum 6. 2014 World Economic Forum 7. The Global Information Technology Report 2014 | vThe 13th edition of The Global Information TechnologyReport is released at a time when economies needto solidify the recovery of the past year and leave theworst financial and economic crisis of the past 80years behind. Developed economies need to sustaintheir incipient economic recovery and find new areasof growth and employment creation; emerging anddeveloping economies need to build their resilienceagainst turbulence in the markets and foster theirinnovation potential in order to sustain the rapideconomic growth they experienced in the past decade.Against this backdrop, information andcommunication technologies (ICTs)in their role askey enablers of innovation and new employmentopportunitiesare drawing more attention than everbefore. As the benefits of ICTs increasingly materializeinto tangible assets, building and strengthening digitalecosystems becomes increasingly important.The GITR series has been published by the WorldEconomic Forum in partnership with INSEAD since2002. The Report has accompanied and monitored ICTprogress for more than a decade and raised awarenessof the importance of ICTs for long-term competitivenessand well-being. Through the lens of the NetworkedReadiness Index (NRI), the driving factors and impactsof networked readiness and ICT leveraging have beenidentified, highlighting the joint responsibility of all socialactorsindividuals, businesses, and governments.The Global Information Technology Report 2014features the latest results of the NRI, offering an overviewof the current state of ICT readiness in the world. Thisyears coverage includes a record number of 148economies, accounting for over 98 percent of globalGDP. In addition, it features a number of essays thatinquire into the rewards and risks accruing from bigdata, an unprecedented phenomenon in terms of thevolume, velocity, and variety of sources of the creationof new data. These essays also advise on the changesthat organizations, both public and private, will need toadopt in order to manage, make sense of, and obtaineconomic and social value from this vast quantity ofnewly generated data. In addition, the Report presentsa wealth of data, including detailed profiles for eacheconomy covered and data tables with global rankingsfor the NRIs 54 indicators.We would like to convey our sincere gratitude tothe industry and academic organizations experts whocontributed outstanding chapters. We also wish to thankthe editors of the ReportSoumitra Dutta at the SamuelCurtis Johnson Graduate School of Management atCornell University, Bruno Lanvin at INSEAD, and BeatBilbao-Osorio at the World Economic Forumfortheir leadership in this project, together with the othermembers of the GITR team: Roberto Crotti, Danil Kerimi,and Elena Kvochko. Appreciation also goes to membersof the Global Competitiveness and BenchmarkingNetwork team: Ciara Browne, Gemma Corrigan, Attiliodi Batista, Galle Dreyer, Margareta Drzeniek-Hanouz,Thierry Geiger, Tania Gutknecht, Caroline Ko, and CeciliaSerin. Last but not least, we would like to express ourgratitude to our network of over 160 Partner Institutesaround the world and to all the business executives whoparticipated in our Executive Opinion Survey. Withouttheir valuable input, the production of this Report wouldnot be possible.PrefaceJENNIFER BLANKE and ALAN MARCUSWorld Economic Forum 2014 World Economic Forum 8. 2014 World Economic Forum 9. The Global Information Technology Report 2014 | viiForewordJOHN CHAMBERSChairman and Chief Executive Officer, Cisco SystemsI never cease to be amazed by the speed of innovation.Change is the only true constant, and each year thepace of change only accelerates. Transitions that oncetook place over three or five years now happen in 12 to18 months.I believe we are currently experiencing the biggestfundamental change the world has seen since the initialdevelopment of the Internet as people, processes,data, and things become increasingly connected.We call this the Internet of Everything (IoE), and it ishaving a profound impact on individuals, businesses,communities, and countries. According to analysisconducted by Cisco, the Internet of Everythingrepresents a US$19 trillion global opportunity to createvalue over the next decade through greater profits forbusinesses as well as improved citizen services, costefficiencies, and increased revenues for governmentsand other public-sector organizations.Several major transitions in technologyeachimportant in its own rightare combining to makethe Internet of Everything possible. These include theemergence of cloud and mobile computing, the growthof big data and analytics, and the explosive developmentof the Internet of Things (IoT). These transitions arechanging the role of information technology (IT), withInternet protocol (IP) networks playing an increasinglycentral part by seamlessly connecting disparate ITenvironments. Ciscos contribution to this edition of TheGlobal Information Technology Report focuses on thehow IP networks facilitate new information flows throughthe interaction between two of these transitions: IoT anddata analytics.The explosive expansion of IoT, or connectionsbetween context-aware machines and other physicalobjects, is changing how we utilize devices to improveour daily lives. And the shift in data and analyticsfrom being centralized, structured, and static to beingdistributed, mixed structured and unstructured, and real-timeis leading to a new era of real-time processing anddecision-making.More industries are moving their systems andprocesses to IP networks, and the rapid growth of IP-connecteddevices is driving exponential increases indata traffic. The migration to IP networks and the abilityto turn big data into valuable, actionable informationhave demonstrable benefitsboth economic andsocialas well as positive financial impacts for firms.In our 30-year history, our success has been basedon our ability to see around corners, identify markettransitions, and make big bets on what is nextsuch asthe emergence of the Internet of Everything. We haveseen this before, in the transitions from bridged networksto routed networks, shared networks to switched ones,circuit switching to packet switching, fixed connectivity tomobile connectivity, dedicated resources to virtual ones,data traffic to voice and video traffic, PC connections toany-device connections, and physical data centers to thecloud.We see the network as the critical acceleratorand enabler in all of these transitions, transformingprocesses to increase efficiency and decrease costs. Indata centers, for example, the network is the commonelement for intelligence, scale, and flexibility. Datacenters have evolved as more intelligence has been builtinto the networkfrom networking virtual machines anddeveloping a platform optimizing computing to scalingapplications and decoupling them from the server ordata center in which they live.The network also facilitates the growth ofapplications, a key driver of the Internet of Everything.Applications already provide an integral way thatconsumers experience the Internet of Everything, withthe number of applications growing from 10 billiondownloads in 2010 to 77 billion by 2014.As this trend continues, we expect the Internet ofEverything to drive massive gains in efficiency, businessgrowth, and quality of life, helped along by thousandsof new IoT applications. These applications will requirebuilding new end-to-end IoT infrastructures, which willenable the deployment of even more IoT applications.We are pleased to collaborate again with the WorldEconomic Forum and INSEAD to produce The GlobalInformation Technology Report and the NetworkedReadiness Index (NRI). The NRI provides policymakers,business leaders, and concerned citizens with valuableinsights into current market conditions and the stateof connectivity across the world, and helps to identifywhere more can be done to accelerate the Internet ofEverythings positive impact on the world in which welive. 2014 World Economic Forum 10. 2014 World Economic Forum 11. The Global Information Technology Report 2014 | ixForewordCESARE MAINARDIChief Executive Officer, Booz & CompanyThe report in your hands is a compilation of wisdomabout the relationship between digitization and corporatestrategy. This is a relationship of enormous promise,because digitizationthe mass adoption of connecteddigital services by consumers, enterprises, andgovernmentsprovides dramatic power and reach to thecompanies that understand it.But there is also enormous tension in therelationship between digitization and strategy. Digitalmedia and technologies are inherently subject to change.A companys strategy, its way of winning in the market,is most effective when it is tied to its identity. Andcorporate identitiesand the capabilities and culturesthat go with themare by nature slow to change. Ittakes years to develop the kind of proficiency that noother company can easily master.We have found in our research on capablecompanies that the most consistently successful arethose that master this tension. They base their strategieson their distinctive capabilities: the things they dobetter than any other company. These are consistentthroughout their lifetimes. Apple competes on its uniqueapproach to design, which no other company canmatch; IKEA on its unparalleled prowess in making andselling low-priced but appealing home furnishings; andHaier on its remarkable ability to translate its customersneeds into innovative new appliances. These successfulcompanies then learn to adapt to new challenges andopportunities within the context of their constant identity.They become rapid innovators, able to shift to newproducts, markets, and geographies, but they adapt onlywhen their existing capabilities can give them the right towin.For most companies, digitization is a great enabler.But it is also a great disruptor. It enables competitors aswell, including competitors from other sectors who mightenter your business arena. This can present a threat thatcan often turn a companys advantage into a weakness.Digitization is also distracting: it can present abewildering array of potential opportunities, all of whichlook compelling. But pursuing them all is both financiallyunfeasible and strategically distracting. It leads toincoherence, which can lead an enterprise into decline.How then do capable companies handle theopportunities and challenges of digitization? They arerigorously and prudently selective. They invest in thoseareas that are in line with their chosen way to play in themarketthe distinctive way they create value for theircustomers.Consider, for example, the threats, distractions,and benefits of one current element of digitization: bigdata. This is comprised of large datasets often gatheredin unstructured forms from the behavior of people andgroups. For example, as individuals search online, shop,express their opinions, communicate with each other,and move from one place to another, their aggregatebehavior can be tracked and inferences drawn from it.New technologies, such as analytic engines and cloud-basedstorage, have made it possible to gather thesedata in unprecedented amounts and interpret them innovel ways. Insights from old forms of market research,such as asking customers what they liked or did notlike in a commercial transaction, now become part ofa larger pattern of awareness, with both the scale andgranularity to give business people a much clearer viewof their market.In capable companies, big data is aligned with theirstrategies. They invest only in the data gathering thatgives them privileged access to the customers they careabout, or that contributes to the capabilities that makethem distinctive. Without that discipline, companiescan be overwhelmed by big data. They can collect ahuge volume of information without any predeterminedpurpose, and then struggle to make sense of it. In short,the prevalence of massive amounts of new informationhas only highlighted the importance of the old strategicverity: to change successfully, you must stay true to youridentity and seek the customers who you can serve well.The next few years will see many companiesstruggling to resolve the tension between change andidentity. Those who master the new digital technologiesin a disciplined way, in the service of their focusedstrategies, will become more successful in the marketand the economies around them will thrive accordingly. 2014 World Economic Forum 12. 2014 World Economic Forum 13. Executive SummaryBEAT BILBAO-OSORIO, World Economic ForumSOUMITRA DUTTA, Cornell UniversityBRUNO LANVIN, INSEADWhen The Global Information Technology Report (GITR)and the Networked Readiness Index (NRI) were createdmore than 13 years ago, the attention of decisionmakers was focused on how to develop strategies thatwould allow them to benefit from what Time Magazinehad described as the new economy: a new way oforganizing and managing economic activity based onthe new opportunities that the Internet provided forbusinesses.1 At present, the world is slowly emergingfrom one of the worst financial and economic crisesin decades, and policymakers, business leaders, andcivil society are looking into new opportunities thatcan consolidate growth, generate new employment,and create business opportunities. Information andcommunication technologies (ICTs) continue to rank highon the list as one of the key sources of new opportunitiesto foster innovation and boost economic and socialprosperity, for both advanced and emerging economies.For more than 13 years, the NRI has provideddecision makers with a useful conceptual frameworkto evaluate the impact of ICTs at a global level andto benchmark the ICT readiness and usage of theireconomies.EXTRACTING VALUE FROM BIG DATAData have always had strategic value, but with themagnitude of data available todayand our capability toprocess themthey have become a new form of assetclass. In a very real sense, data are now the equivalentof oil or gold. And today we are seeing a data boomrivaling the Texas oil boom of the 20th century and theSan Francisco gold rush of the 1800s. It has spawnedan entire support industry and has attracted a great dealof business press in recent years.This new asset class of big data is commonlydescribed by what we call the three Vs. Big data ishigh volume, high velocity, and includes a high variety ofsources of information. Next to those traditional three Vswe could add a fourth: value. This is what everyone islooking for, and this is why big data today gets so muchattention. In the quest for value, the challenge facing usis how to reduce the complexity and unwieldiness of bigdata so that it becomes truly valuable.Big data can take the form of structured data suchas financial transactions or unstructured data such asphotographs or blog posts. It can be crowd-sourced orobtained from proprietary data sources. Big data hasbeen fueled by both technological advances (such as thespread of radio-frequency identification, or RFID, chips)and social trends (such as the widespread adoption ofsocial media). Our collective discussions, comments,likes, dislikes, and networks of social connections arenow all data, and their scale is massive. What did wesearch for? What did we read? Where did we go? Withwhom do we associate? What do we eat? What dowe purchase? In short, almost any imaginable humaninteraction can be captured and studied within the realmof big data.Big data has arrived. It is changing our lives andchanging the way we do business. But succeedingwith big data requires more than just data. Data-basedvalue creation requires the identification of patterns fromwhich predictions can be inferred and decisions made.Businesses need to decide which data to use. Thedata each business owns might be as different as thebusinesses themselves; these data range from log filesand GPS data to customer- or machine-to-machinedata. Each business will need to select the data sourceit will use to create value. Moreover, creating thisvalue will require the right way of dissecting and thenanalyzing those data with the right analytics. It willrequire knowing how to separate valuable informationfrom hype.This world of big data has also become a sourceof concern. The consequences of big data for issuesof privacy and other areas of society are not yet fullyunderstood. Some prominent critics, such as JaronLanier,2 call on us to be cautious about readily believingany result created by the wisdom of the crowd.Moreover, applications of big data in military intelligencehave created a growing concern for privacy around theworld.Indeed, we are now living in a world where anythingand everything can be measured. Data could becomea new ideology. We are just at the beginning of a longjourney where, with the proper principles and guidelines,we should be able to collect, measure, and analyze moreand more information about everyone and everythingin order to make better decisions, individually andcollectively.The Global Information Technology Report 2014 | xi 2014 World Economic Forum 14. Executive SummaryPART 1: THE CURRENT NETWORKEDREADINESS LANDSCAPEPart 1 of this Report presents the latest findings ofthe NRI, offering a comprehensive assessment of thepresent state of networked readiness in the world.Furthermore, a number of expert contributions inquiringinto the role of big data and how to extract value from itare also included. These contributions relate to (1) howthe network unleashes the benefits of big data; (2) howand why policymakers and business executives needto develop action plans to extract value from big data;(3) balancing the risks and rewards of big data from apublic policy perspective; (4) managing these risks andrewards; (5) rebalancing socioeconomic asymmetry in adata-driven economy; (6) the role of regulation and trustbuilding in unlocking the value of big data; (7) turning thepotential of big data into socioeconomic results; and (8)defining organizational change to take full advantage ofbig data.Insights from the NRI 2014 on the worldsnetworked readinessChapter 1.1 provides an overview of the networkedreadiness landscape of the world as assessed by theNRI 2014. It presents the results of the top 10 performersand selected countries by region, in the following order:Europe and the Commonwealth of Independent States,Asia and the Pacific, Latin America and the Caribbean,sub-Saharan Africa, and the Middle East and NorthAfrica.Tables 1 through 5 report the 2014 rankings forthe overall NRI, its four subindexes, and its 10 pillars. Inaddition, the Country/Economy Profile and Data Tablessections at the end of the Report present the detailedresults for the 148 economies covered by the study andthe 54 indicators composing the NRI. To complementthe analysis of the results, Box 1 presents a classificationof countries based on their NRI 2014 scores and thechange rate of this Index over a two-year period; Box2 assesses the nature of the digital divide in Europe;and Box 3 discusses the challenges large emergingeconomies must overcome if they are to keep movingforward in integrating ICTs into more robust innovationecosystems that could help them transition from whatappears to be a mid-life crisis toward a knowledge-basedsociety. Finally, Appendix A of Chapter 1.1 detailsthe structure of the NRI and describes the method ofcalculation.Top 10The top 10 spots continue to be dominated by NorthernEuropean economies, the Asian Tigers, and some ofthe most advanced Western economies. Three NordiceconomiesFinland, Sweden, and Norwaylead therankings and are positioned among the top 5. Denmarkand Iceland, the remaining two Nordic economies,also perform strongly, and despite small slips thisyear they feature among the top 20. Overall, theirperformance in terms of ICT readiness, with excellentdigital infrastructures and robust innovation systems,allows them to score very highly both in ICT usewithalmost universal Internet use, for exampleand ininnovation performances. The Asian Tigerscomposedof Singapore, Hong Kong SAR, the Republic of Korea,and Taiwan (China)also perform very strongly, all ofthem positioned at the forefront of the NRI and withSingapore, Hong Kong SAR, and Korea featuring amongthe top 10. All these economies continue to boastoutstanding business and innovation environments thatare consistently ranked among the most conducive toentrepreneurship in the world. Finally, the top 10 includessome of the most advanced Western economiestheNetherlands, Switzerland, the United States, and theUnited Kingdomthat have recognized the potential ofICTs to embark in a new economic and social revolution,and thus have substantially invested in developing theirdigital potential.In evolutionary terms, this year the rankings remainvery stable, with no movement in the top 6 and negligiblechanges in the rest, with the exception of the significantimprovement by six positions of Hong Kong SAR, whichclimbs to 8th place.For a second consecutive year, Finland topsthe rankings with a strong performance across theboard. It ranks 1st in the readiness subindex thanksto an outstanding digital ICT infrastructurethe bestin the worldand 2nd in both the usage and impactsubindexes, with more than 90 percent of its populationusing the Internet and high levels of technological andnon-technological innovation. The country also comesin 3rd in the environment subindex, with a very robustinnovation system. Singapore continues to followclosely in the rankings, remaining in 2nd place. Withthe best pro-business and pro-innovation environmentworldwide, the city-state continues to obtain the top rankin terms of ICT impacts, notably on the social dimension.Supported by a government with a clear digital strategythat offers the best online services in the world, an ICTinfrastructure that is relentlessly being improved overtime (16th), and one of the highest quality educationalsystems in the world (3rd), notably in terms of math andscience (1st), Singapore has become one of the mostknowledge-intensive economies globally (2nd) and is anICT-generation powerhouse. Sweden (3rd) maintainsits position this year despite a slight improvement in itsoverall score, unable to regain the top position it heldtwo editions ago. Overall, the very strong performanceof Sweden reflects its world-class, affordable (11th) ICTinfrastructure (3rd) and a stable and pro-business andinnovation environment (15th), despite its high tax rate(123rd). These strengths result in outstanding uptakeand use of ICTs by individuals (1st), businesses (3rd), andgovernment (7th) and one of the highest technologicaland non-technological innovation performances in thexii | The Global Information Technology Report 2014 2014 World Economic Forum 15. world (2nd), making Sweden a truly knowledge-basedsociety.The United States moves up two positions to7th place, thanks to slight improvements in manyareas of the Index. These include the countrys alreadygood business and innovation environment (7th) andimprovements in its ICT infrastructure (4th), notably interms of wider access to international Internet bandwidthper user. Overall, the country exhibits a robust uptakeof ICTs by all major stakeholdersbusinesses (9th),government (11th), and individuals (18th)who manageto leverage well one of the best and more affordable(20th) ICT infrastructures (4th). Coupled with a pro-businessand pro-innovation environment (7th), theseresult in a strong innovation capacity (5th) and significantICT-related economic impacts (9th). The ranking of theUnited States, the largest economy in the world, in thetop 10 shows that fully leveraging ICTs is not dependenton small or medium-sized economies, but insteaddepends on undertaking the right investments andcreating the right condition for it. Despite a drop of twoplaces, the United Kingdom continues to exhibit a verystrong performance in 9th position. As a service-basedeconomy, the country early recognized the importanceof ICTs to support its innovation and competitivenessperformance. As a result, it has managed to build a well-developedICT infrastructure (15th), exhibiting one of thehighest population uptakes (8th) and a well-developede-commerce (1st), which, coupled with a strong pro-businessenvironment, has resulted in solid economic(14th) and social (9th) impacts.Regional resultsEurope has been at the forefront of developing a digitalecosystem as a key ingredient that fosters innovationand competitiveness. As a result, several Europeancountries lead the NRI rankings, with six EuropeaneconomiesFinland, Sweden, the Netherlands,Norway, Switzerland, and the United Kingdomin thetop 10. In addition, in order to maximize the positiveimpacts of ICTs throughout the European Union andcreate synergies and positive spillover effects, theEuropean Commission has developed its Digital Agendaas one of seven flagship initiatives under its growthstrategy Europe 2020. Despite these efforts, importantdifferences remain across European economies,with Southern and Central and Eastern Europeaneconomies continuing to lag behind. A deeper analysisof the root causes of these differences shows that, ingeneral, ICT infrastructure and individual uptake is morehomogeneous across EU Member States. However, lessfavorable conditions for innovation and entrepreneurshipacross European countries result in starker disparities interms of the economic impactsfor example, innovationperformanceaccruing from their use, which illustratesthe changing nature of the digital divide in Europe andin the rest of the world. The digital divide should not beExecutive Summaryregarded only in terms of access to ICT infrastructure,but also in terms of the impacts that using ICTs canprovide for the economy and society in general. Withinthe Commonwealth of Independent States, severalcountries improve their performances, reflecting thekey importance and hopes they have placed on ICTs todiversify their economies and lead them toward moreknowledge-intensive activities.With three economies from the region in the top10 of the NRI rankings and several countries showingimprovement, Asia and the Pacific is very dynamicand active in developing its ICT agenda. Yet a significantdigital divide persists between the most advancedeconomiessuch as the Asian Tigers and Japanand emerging economies and other trailing countries.Regardless of their position on the development ladder,however, all Asian economies have much to gain fromincreased networked readiness. It will allow populationsof the least advanced among them to gain access tomuch-needed basic services, to improve governmenttransparency and efficiency, andfor the mostadvancedit will contribute to boosting their innovationcapacity and allow them to attain higher levels ofcompetitiveness.Improving the connectivity of Latin America andthe Caribbean continues to represent one of theregions main challenges despite the recent effortsof many countries to develop and update their ICTinfrastructures. Countries such as Chile, Panama,Uruguay, and Colombia have made significant progressin developing and ensuring more and better access toICT infrastructure, ensuring higher ICT usage acrossstakeholders. However, persistent weaknesses inthe broader innovation system hinder the overallcapacity of the region to fully leverage ICTs to foster itscompetitiveness potential, highlighting the rise of thenew digital dividethat is, the divide between countriesthat are achieving positive economic and social impactsrelated to the use of ICTs and those that are not.Sub-Saharan Africa slowly continues to developits ICT infrastructure, especially by expanding the shareof the population covered by, and having access to,mobile telephony and by expanding the number ofInternet users, which in some countriessuch as SouthAfricahas almost doubled. These improvements haveled to many important innovations that provide moreand better services that were previously unavailable,such as financial services. Notwithstanding thisprogress, the region overall continues to suffer from arelatively poor ICT infrastructure, which remains costly toaccess, although some notable exceptions exist. Moreimportantly, severe weaknesses persist in the regionsbusiness and innovation ecosystems, which result in verylow positive economic and social impacts. Addressingthese weaknesses, not only by developing a more solidICT infrastructure but also by improving the frameworkconditions for innovation and entrepreneurship, will beThe Global Information Technology Report 2014 | xiii 2014 World Economic Forum 16. Executive Summarycrucial to avoid the emergence of a new digital dividethat will be evident in a disparity of the economic andsocial impacts associated with what has been called thedigital revolution.As in previous years, the Middle East and NorthAfrica depicts a highly diversified outlook in terms ofthe capacity of countries to leverage ICTs to boostcompetitiveness and well-being. On the one hand,Israel and several Gulf Cooperation Council stateshave continued their efforts to improve ICT uptakeand integrate ICTs better in more robust innovationecosystems in order to obtain higher returns. On theother hand, many countries in North Africa continueto lag behind and suffer from important weaknessesin their framework conditions and overall innovationcapacity that prevent them from fully leveraging ICTs andobtaining higher returns.The Internet of Everything: How the NetworkUnleashes the Benefits of Big DataChapter 1.2, contributed by Robert Pepper and JohnGarrity from Cisco Systems, details how Internet protocol(IP) networks underpin the concept of the Internetof Everything (IoE) and explores how IP networksaccelerate big datas transformational impact onindividuals, businesses, and governments around theworld.As exabytes of new data are created daily, a risingshare of this data growth is flowing over IP networksas more people, places, and things connect to the IoE.Proprietary networks are increasingly migrating to IP,facilitating the growth of big data, and networks are fastbecoming the key link among data generation, analysis,processing, and utilization.The authors highlight four major trends drivingdata growth over IP networks and detail how networksare central to maximizing analytical value from thedata deluge. The chapter identifies critical technologyand public policy challenges that could accelerate,or encumber, the full impact of big data and the IoEincluding standards and interoperability, privacy andsecurity, spectrum and bandwidth constraints, cross-borderdata traffic, legacy regulatory models, reliability,scaling, and electrical power.Big Data Maturity: An Action Plan for Policymakersand ExecutivesIn Chapter 1.3, Bahjat El-Darwiche, Volkmar Koch,David Meer, Ramez T. Shehadi, and Walid Tohme ofBooz & Company argue that big data has the potentialto improve or transform existing business operationsand reshape entire economic sectors. Big data canpave the way for disruptive, entrepreneurial companiesand allow new industries to emerge. The technologicalaspect is important, but technology alone is insufficientto allow big data to show its full potential and to preventcompanies from feeling swamped by this information.What matters is to reshape internal decision-makingculture so that executives base their judgments on datarather than hunches. Research already indicates thatcompanies that have managed this are more likely to beproductive and profitable than their competition.Organizations need to understand where they are interms of big data maturity, an approach that allows themto assess progress and identify necessary initiatives.Judging maturity requires looking at environmentreadiness, determining how far governments haveprovided the necessary legal and regulatory frameworksand ICT infrastructure; considering an organizationsinternal capabilities and how ready it is to implement bigdata initiatives; and looking also at the many and morecomplicated methods for using big data, which canmean simple efficiency gains or revamping a businessmodel. The ultimate maturity level involves transformingthe business model to become data-driven, whichrequires significant investment over many years.Policymakers should pay particular attention toenvironment readiness. They should present citizenswith a compelling case for the benefits of big data.This means addressing privacy concerns and seekingto harmonize regulations around data privacy globally.Policymakers should establish an environment thatfacilitates the business viability of the big data sector(such as data, service, or IT system providers), andthey should take educational measures to address theshortage of big data specialists. As big data becomesubiquitous in public and private organizations, its use willbecome a source of national and corporate competitiveadvantage.Balancing the Risks and Rewards of Data-DrivenPublic PolicyAlex Sandy Pentland from the Massachusetts Instituteof Technology (MIT) highlights in Chapter 1.4 that weare entering a big data world, where governance isfar more driven by data than it has been in the past.Basic to the success of a data-driven society is theprotection of personal privacy and freedom. Discussionsat the World Economic Forum have made substantialcontributions to altering the privacy and data ownershipstandards around the world in order to give individualsunprecedented control over data that are aboutthem, while at the same time providing for increasedtransparency and engagement in both the public andprivate spheres.We still face the challenge that large organizations,and in particular governments, may be tempted to abusethe power of the data that they hold. To address thisconcern we need to establish best practices that are inthe interests of both large organizations and individuals.This chapter suggests one path by which potentialabuses of power can be limited, while at the same timeproviding greater security for organizations that usexiv | The Global Information Technology Report 2014 2014 World Economic Forum 17. big data. The key policy recommendations for all largeorganizations, commercial or government, are that:1. Large data systems should store data in adistributed manner, separated by type (e.g.,financial vs. health) and real-world categories (e.g.,individual vs. corporate), managed by a departmentwhose function is focused on those data, andwith sharing permissions set and monitored bypersonnel from that department. Best practicewould have the custodians of data be regionaland use heterogeneous computer systems. Withsuch safeguards in place, it is difficult to attackmany different types of data at once, and it is moredifficult to combine data types without authenticauthorization.2. Data sharing should always maintain provenanceand permissions associated with data and supportautomatic, tamper-proof auditing. Best practicewould share only answers to questions about thedata (e.g., by use of pre-programmed SQL queriesknown as Database Views) rather than thedata themselves, whenever possible. This allowsimproved internal compliance and auditing, andhelps minimize the risk of unauthorized informationleakage.3. Systems controlled by partner organizations, andnot just a companys own systems, should besecure. External data sharing should occur onlybetween data systems that have similar localcontrol, permissions, provenance, and auditing,and should include the use of standardized legalagreements such as those employed in trustnetworks. Otherwise data can be siphoned off ateither the data source or the end consumer, withoutthe need for attacking central system directly.4. The need for a secure data ecosystem extends tothe private data of individuals and the proprietarydata of partner companies. As a consequence, bestpractice for data flows to and from individual citizensand businesses is to require them to have securepersonal data stores and be enrolled in a trustnetwork data sharing agreement.5. All entities should employ secure identity credentialsat all times. Best practice is to base thesecredentials on biometric signatures.6. Create an open data commons that is availableto partners under a lightweight legal agreement,such as the trust network agreements. Open datacan generate great value by allowing third parties toimprove services.Although these recommendations might at firstglance seem cumbersome, they are for the most parteasily implemented with the standard protocols foundwithin modern computer databases and networks. InExecutive Summarymany cases, the use of distributed data stores andmanagement are already part of current practice, andso the entire system will be simpler and cheaper toimplement than a centralized solution: all that is reallynew is the careful use of provenance, permissions, andauditing within a legal or regulatory framework such as atrust network. Most importantly, these recommendationswill result in a data ecosystem that is more secure andresilient, allowing us to safely reap the advantages ofusing big data to help set and monitor public policy.Managing the Risks and Rewards of Big DataIn Chapter 1.5., Matt Quinn and Chris Taylor from TIBCOargue that expert handling of big data brings the rewardof being able to react to world-changing events, bothbig and small, at an unprecedented rate and scope.Epidemics can be tracked and miracle drugs developed,for example, but at the same time, big data brings risksthat require balancing those benefits against privacyconcerns raised by the potentially unsettling correlationof personal information.Organizations are awakening to the reality that anoverwhelming amount of high-volume, wide-variety, andhigh-velocity data creates three key trends: Big data leverages previously untapped datasources to liberate information from places where itwas previously hidden. Big data management requires automation whereverpossible, because volume and complexity eliminatethe ability of humans to intervene and reprogramprocesses in real time. Big data forces us to create adaptable, lessfragile data systems because the sheer variety ofstructured and unstructured data breaks the oldcomputational and transactional ways of writinglogic.These trends create two main challenges: Big data holds unseen patterns, which need to bevisualized using analytics tools and techniques.Insights gained must be used at the right time, inthe right context, and with the right approach. The challenge of systematically discovering,capturing, governing, and securing ever-largeramounts of data is much more complicated than therelatively simple problem of marshaling storage andcomputational resources.These elements are the driving forces behindmaking use of big data in increasingly sophisticatedways. The chapter cites examples in healthcare,logistics, and retail where big data is being tackledwith a systems approach that takes into considerationinformation streaming constantly as well as what is foundin historical databases that cut through the mystique ofThe Global Information Technology Report 2014 | xv 2014 World Economic Forum 18. Executive Summarybig data and get to the core of understanding big datasrisks and rewards.Rebalancing Socioeconomic Asymmetry in aData-Driven EconomyChapter 1.6, contributed by Peter Haynes of theAtlantic Council and M-H. Carolyn Nguyen at Microsoft,explains that an increasing amount of data is beinggenerated by individuals who are handing potentiallyvaluable information to commercial enterprises inexchange for free services. Moreover, they are doingthis without realizingor being recompensed fortheirdatas monetary value, and with little or no control overits immediate or future use. These socioeconomicasymmetries in the broad data ecosystem are a potentialthreat to the emerging data-driven economy, sincethey may reduce overall output as more and moreeconomic activity is predicated on the use, exchange,and analytics of data. The authors argue the need for adata ecosystem based on fair value exchange and theability of users to control the use of data related to them.The chapter also considers potential technology andpolicy approaches by which this might be achieved, andpresent the need for significant additional research andnew thinking, in both technology and policy, to enable asustainable data-driven economy.Building Trust: The Role of Regulation in Unlockingthe Value of Big DataIn Chapter 1.7, Scott Beardsley, Lus Enrquez, FerryGrijpink, Sergio Sandoval, Steven Spittaels, and MalinStrandell-Jansson from McKinsey & Company highlightthe expectation that big data will create great benefitfor society, companies, and individuals in the comingyears. For this to fully materialize, however, a number offactors must be in place. There must be robust high-speedInternet networks, an educated workforce, andconsumer trust in the services, especially regarding theprotection of personal data and privacy.The increasing importance of protecting personaldata and privacy is being recognized by countries andorganizations across the world. There are, however, arange of diverging views about how to tackle the issue.These range from the light-touch approach of the UnitedStates, which leaves the issue mainly to the industryto solve, to the strict ex ante regulatory framework asadvocated by the European Union.No matter which approach is taken, a few issuesremain unclear across the frameworks. These issuesmight hamper public trust in big data applications andcompanies and hinder the development of big data toits full potential. The issues of concern include how todefine personal data, how to treat anonymous data,whether to allow the right to be forgotten, and the needto clarify the relevant jurisdictions and liabilities betweenparties.The chapter outlines a few suggestions forregulators and companies about how to tackle theseissues, and suggests that regulators should work closelywith industry stakeholders and across regions to achievetechnology-neutral high-level regulatory principles thatlast and promote industry self-regulation.Companies should, after an initial assessment,implement necessary changes into their organization andcooperate with the regulators and industry stakeholders.Key, however, is to empower the customer. With clearand transparent privacy policies outlining practices,enabled services, and trade-offs, consumers areempowered to make their own choices while the trust ofthe industry is preserved.From Big Data to Big Social and EconomicOpportunities: Which Policies Will Lead toLeveraging Data-Driven Innovations Potential?Chapter 1.8, contributed by Pedro Less Andrade, JessHemerly, Gabriel Recalde, and Patrick Ryan at Google,focuses on the social and economic value of data,but from the point of view of use and purpose ratherthan volume. As it has become axiomatic that moredata are produced every year, commentators havebeen driven to call this revolution the age of big data.However, what is commonly known as big data isnot a new concept: the use of data to build successfulproducts and services, optimize business processes,and make more efficient data-based decisions alreadyhas an established history. Moreover, the term big datais ambiguous: the main features of big data (quantity,speed, variety) are technical properties that dependnot on the data themselves but on the evolution ofcomputing, storage, and processing technologies. Whatis important about big data is not its volume but how itmay contribute to innovation and therefore be used tocreate value. This is why this chapter uses data-driveninnovation to frame the discussion.High-value solutions that may not have quantifiableeconomic value are being developed using data, andmany sectors, from businesses to governments, benefitfrom data-driven innovation. Apart from producingand using data for better policymaking processes, thepublic sector can also play its part in promoting andfostering data-driven innovation and growth throughouteconomies by (1) making public data accessible throughopen data formats, (2) promoting balanced legislation,and (3) supporting education that focuses on datascience skills.Making Big Data Something More than the Next BigThingIn Chapter 1.9., Anant Gupta, Chief Executive Officer atHCL Technologies Ltd, argues that big data analytics isnot a passing fad. It will be a central means of creatingvalue for the organization of tomorrowalmost literally,tomorrow. It represents a major change in the way thatxvi | The Global Information Technology Report 2014 2014 World Economic Forum 19. businesses and other organizations will operate, andusing it successfully will require a new mind-set andnew capabilities. Given that, many organizations arestruggling to even know where to start in becoming big-datacompetent. A step-by-step approach can make thetransition seem less daunting and minimize the stumblesthat are bound to occur along the way.PARTS 2 AND 3: COUNTRY/ECONOMY PROFILESAND DATA PRESENTATIONParts 2 and 3 of the Report feature comprehensiveprofiles for each of the 148 economies covered thisyear as well as data tables for each of the 54 variablescomposing the NRI, with global rankings. Each partbegins with a description of how to interpret the dataprovided.Technical notes and sources, included at the endof Part 3, provide additional insight and information onthe definitions and sources of specific quantitative non-Survey data variables included in the NRI computationthis year.NOTES1 Alexander 1983.2 See Lanier 2010; see also Kakutani 2010.REFERENCESAlexander, C. P. 1983. The New Economy. Time Magazine, May30. Available at http://content.time.com/time/magazine/article/0,9171,926013,00.html.Kakutani, M. 2010. A Rebel in Cyberspace, Fighting Collectivism.Books of the Times, January 14. The New York Times. Available athttp://www.nytimes.com/2010/01/15/books/15book.html?_r=0.Lanier, J. 2010. You Are Not a Gadget. New York: Vintage Books,Random House.Executive SummaryThe Global Information Technology Report 2014 | xvii 2014 World Economic Forum 20. 2014 World Economic Forum 21. The NetworkedReadiness IndexRankings 2014 World Economic Forum 22. 2014 World Economic Forum 23. The Global Information Technology Report 2014 | xxiRank Country/Economy Value2013 rank(out of 144)1 Finland 6.04 12 Singapore 5.97 23 Sweden 5.93 34 Netherlands 5.79 45 Norway 5.70 56 Switzerland 5.62 67 United States 5.61 98 Hong Kong SAR 5.60 149 United Kingdom 5.54 710 Korea, Rep. 5.54 1111 Luxembourg 5.53 1612 Germany 5.50 1313 Denmark 5.50 814 Taiwan, China 5.47 1015 Israel 5.42 1516 Japan 5.41 2117 Canada 5.41 1218 Australia 5.40 1819 Iceland 5.30 1720 New Zealand 5.27 2021 Estonia 5.27 2222 Austria 5.26 1923 Qatar 5.22 2324 United Arab Emirates 5.20 2525 France 5.09 2626 Ireland 5.07 2727 Belgium 5.06 2428 Malta 4.96 2829 Bahrain 4.86 2930 Malaysia 4.83 3031 Lithuania 4.78 3232 Saudi Arabia 4.78 3133 Portugal 4.73 3334 Spain 4.69 3835 Chile 4.61 3436 Slovenia 4.60 3737 Cyprus 4.60 3538 Kazakhstan 4.58 4339 Latvia 4.58 4140 Oman 4.56 4041 Puerto Rico 4.54 3642 Czech Republic 4.49 4243 Panama 4.36 4644 Jordan 4.36 4745 Brunei Darussalam 4.34 5746 Croatia 4.34 5147 Hungary 4.32 4448 Mauritius 4.31 5549 Azerbaijan 4.31 5650 Russian Federation 4.30 5451 Turkey 4.30 4552 Montenegro 4.27 4853 Costa Rica 4.25 5354 Poland 4.24 4955 Barbados 4.22 3956 Uruguay 4.22 5257 Macedonia, FYR 4.19 6758 Italy 4.18 5059 Slovak Republic 4.12 6160 Georgia 4.09 6561 Mongolia 4.07 5962 China 4.05 5863 Colombia 4.05 6664 Indonesia 4.04 7665 Armenia 4.03 8266 Seychelles 4.02 7967 Thailand 4.01 7468 Bosnia and Herzegovina 3.99 7869 Brazil 3.98 6070 South Africa 3.98 7071 Trinidad and Tobago 3.97 7272 Kuwait 3.96 6273 Bulgaria 3.96 7174 Greece 3.95 64Rank Country/Economy Value2013 rank(out of 144)75 Romania 3.95 7576 Sri Lanka 3.94 6977 Moldova 3.89 7778 Philippines 3.89 8679 Mexico 3.89 6380 Serbia 3.88 8781 Ukraine 3.87 7382 Ecuador 3.85 9183 India 3.85 6884 Vietnam 3.84 8485 Rwanda 3.78 8886 Jamaica 3.77 8587 Tunisia 3.77 n/a88 Guyana 3.77 10089 Cape Verde 3.73 8190 Peru 3.73 10391 Egypt 3.71 8092 Kenya 3.71 9293 Dominican Republic 3.69 9094 Bhutan 3.68 n/a95 Albania 3.66 8396 Ghana 3.65 9597 Lebanon 3.64 9498 El Salvador 3.63 9399 Morocco 3.61 89100 Argentina 3.53 99101 Guatemala 3.52 102102 Paraguay 3.47 104103 Botswana 3.43 96104 Iran, Islamic Rep. 3.42 101105 Namibia 3.41 111106 Venezuela 3.39 108107 Gambia, The 3.38 98108 Cambodia 3.36 106109 Lao PDR 3.34 n/a110 Zambia 3.34 115111 Pakistan 3.33 105112 Nigeria 3.31 113113 Suriname 3.30 117114 Senegal 3.30 107115 Uganda 3.25 110116 Honduras 3.24 109117 Zimbabwe 3.24 116118 Kyrgyz Republic 3.22 118119 Bangladesh 3.21 114120 Bolivia 3.21 119121 Liberia 3.19 97122 Cte d'Ivoire 3.14 120123 Nepal 3.09 126124 Nicaragua 3.08 125125 Tanzania 3.04 127126 Swaziland 3.00 136127 Mali 3.00 122128 Gabon 2.98 121129 Algeria 2.98 131130 Ethiopia 2.95 128131 Cameroon 2.94 124132 Malawi 2.90 129133 Lesotho 2.88 138134 Sierra Leone 2.85 143135 Benin 2.82 123136 Burkina Faso 2.78 130137 Mozambique 2.77 133138 Libya 2.75 132139 Madagascar 2.74 137140 Yemen 2.73 139141 Timor-Leste 2.69 134142 Mauritania 2.61 135143 Haiti 2.52 141144 Angola 2.52 n/a145 Guinea 2.48 140146 Myanmar 2.35 n/a147 Burundi 2.31 144148 Chad 2.22 142The Networked Readiness Index 2014 2014 World Economic Forum 24. 2014 World Economic Forum 25. Part 1The Current NetworkedReadiness Landscapeand Rewards and Risksof Big Data 2014 World Economic Forum 26. 2014 World Economic Forum 27. The Global Information Technology Report 2014 | 3CHAPTER 1.1The Networked ReadinessIndex 2014: BenchmarkingICT Uptake in a World ofBig DataBEAT BILBAO-OSORIO, World Economic ForumROBERTO CROTTI, World Economic ForumSOUMITRA DUTTA, Cornell UniversityBRUNO LANVIN, INSEADWhen The Global Information Technology Report (GITR)and the Networked Readiness Index (NRI) were createdmore than 13 years ago, the attention of decisionmakers was focused on how to develop strategies thatwould allow them to benefit from what Time Magazinehad described as the new economy: a new way oforganizing and managing economic activity based onthe new opportunities that the Internet provided forbusinesses.1 At present, the world is slowly emergingfrom one of the worst financial and economic crisesin decades, and policymakers, business leaders, andcivil society are looking into new opportunities thatcan consolidate growth, generate new employment,and create business opportunities. Information andcommunication technologies (ICTs) continue to rankhigh on the list as one of the key sources of newopportunities to foster innovation and boost economicand social prosperity, for both advanced and emergingeconomies.For more than 13 years, the NRI has provideddecision makers with a useful conceptual frameworkto evaluate the impact of ICTs at a global level andto benchmark the ICT readiness and usage of theireconomies.EXTRACTING VALUE FROM BIG DATAData have always had strategic value, but with themagnitude of data available todayand our capability toprocess themthey have become a new form of assetclass. In a very real sense, data are now the equivalentof oil or gold. And today we are seeing a data boomrivaling the Texas oil boom of the 20th century and theSan Francisco gold rush of the 1800s. It has spawnedan entire support industry and has attracted a great dealof business press in recent years.As explained in more detail in Chapter 1.3, thisnew asset class of big data is commonly described bywhat we call the three Vs. Big data is high volume,high velocity, and includes a high variety of sourcesof information. Next to those three Vs we could add afourth: value. This is what everyone is looking for, andthis is why big data today gets so much attention. In thequest for value, the challenge facing us is how to reducethe complexity and unwieldiness of big data so that itbecomes truly valuable.Big data can take the form of structured data suchas financial transactions or unstructured data such asphotographs or blog posts. It can be crowd-sourced orobtained from proprietary data sources. Big data hasbeen fueled by both technological advances (such as thespread of radio-frequency identification, or RFID, chips)and social trends (such as the widespread adoption ofsocial media). Our collective discussions, comments,likes, dislikes, and networks of social connections arenow all data, and their scale is massive. What did wesearch for? What did we read? Where did we go? Withwhom do we associate? What do we eat? What do 2014 World Economic Forum 28. 1.1: The Networked Readiness Index 2014Figure 1: The Networked Readiness Index frameworkDRIVERSwe purchase? In short, almost any imaginable humaninteraction can be captured and studied within the realmof big data.Big data has arrived. It is changing our lives andchanging the way we do business. Some examplesinclude the following: Google uses big data to predict the next wave ofinfluenza.2 IBM uses data to optimize traffic flow in the city ofStockholm,3 and to get the best possible air quality. Dr. Jeffrey Brenner, a physician in New Jersey, usesmedical billing data to map out hot spots whereyou can find his citys most complex and costlyhealthcare cases as part of a program to lowerhealthcare costs.4 The National Center for Academic Transformationis using data mining to help understand whichcollege students are more likely to succeed in whichcourses.5But succeeding with big data requires more thanjust data. Data-based value creation requires theidentification of patterns from which predictions can beinferred and decisions made. Businesses need to decidewhich data to use. The data each business owns mightbe as different as the businesses themselves; thesedata range from log files and GPS data to customer- ormachine-to-machine data. Each business will needto select the data source it will use to create value.4 | The Global Information Technology Report 2014Moreover, creating this value will require the right wayof dissecting and then analyzing those data with theright analytics. It will require knowing how to separatevaluable information from hype. Chapter 1.7 providesguidelines for businesses to make this transition. To alarge extent, mastering big data can also be comparedto irrigation. It is not enough to bring water to where itcan create fertility and value. Flooding can destroy cropsand even drive precious nutrients away. Mastering waterresources requires the delicate management of howmuch is needed and when, and often requires complexand interconnected systems of channels, levees, andregulation. Success with these resources is what madeancient Egypt a brilliant civilization and turned China intoa unified country. The stakes are not dissimilar whenapplied to big data, but this is a resource that couldbenefit the entire planet instead of just one country.For many, data-driven has become the newmanagement philosophy. The Economist IntelligenceUnit released survey data showing that approximatelytwo-thirds of executives feel that big data will help findnew market opportunities and make better decisions.6Nearly half of the surveyed respondents feel big data willincrease competitiveness, and more than a third believeit will boost financial performance.This world of big data has also become a sourceof concern. The consequences of big data for issuesof privacy and other areas of society are not yet fullyunderstood. Some prominent critics, such as JaronLanier,7 call on us to be cautious about readily believingany result created by the wisdom of the crowd.InfrastructureAffordability SkillsIndividualEnvironmentBusiness GovernmentIMPACTSEconomicSocialReadiness Usage 2014 World Economic Forum 29. 1.1: The Networked Readiness Index 2014The Global Information Technology Report 2014 | 5Moreover, applications of big data in military intelligencehave created a growing concern for privacy around theworld.Indeed, we are now living in a world where anythingand everything can be measured. Data could becomea new ideology. We are just at the beginning of a longjourney where, with the proper principles and guidelines,we should be able to collect, measure, and analyze moreand more information about everyone and everythingin order to make better decisions, individually andcollectively.THE NETWORKED READINESS FRAMEWORK: AHOLISTIC APPROACH TO MEASURE ICT ACCESSAND IMPACTSBecause of the potential high returns that ICTs canprovide in transforming a nations economy andincreasing its citizens well-being, assessing ICTdevelopments has been the object of much academicand policy attention over the past decade. Severalorganizations have exerted significant effort towardmeasuring and benchmarking ICT deployment anduptake, but few have tried as hard to assess the returnsthat ICTs can actually provide to both the economy andsociety. Although data are still scarce in terms of ICTimpacts, policy interest in measuring ICTs has shiftedfrom measuring ICT access to measuring ICT impacts.In 2012, after two years of research andconsultations with ICT practitioners, policy and industryexperts, and academia, the Networked Readiness Index(NRI) introduced a new subindex on ICT impacts thataimed at holistically assessing the way that countriesgo about leveraging ICTs and benefiting from them interms of enhanced competitiveness and well-being.This evolution ensures that the NRI framework remainsat the forefront of ICT measurement. As one of themost authoritative assessments of its kind, it has beenadopted by several governments as a valuable tool forinforming their competitiveness and policy agendas.The design of the framework for the calculation ofthe NRI (Figure1) has been guided by five principles:1. Measuring the economic and social impacts ofICTs is crucial. The NRI must include aspects ofthe way ICTs are transforming both the economyand society. In several economies, the ICT industryhas become increasingly important and nowaccounts for a significant share of value-added andemployment. In addition, ICTs interact closely withmany other sectors, thus enabling innovations toaccrue and affecting productivity. Moreover, theimpacts of ICTs are also evident in the developmentof new skills that are important in knowledge-based,information-rich societies and that are crucialfor employment. In society, ICTs allow citizens toparticipate more actively and steadily in social andpolitical debates and make the government moreaccountable. They improve access to better andfaster services, which, in turn, yield significantbenefits.2. An enabling environment determines thecapacity of an economy and society to benefitfrom the use of ICTs. The success of a countryin leveraging ICTs and achieving the desiredeconomic and social benefits will depend on itsoverall environmentincluding market conditions,the regulatory framework, and innovation-proneconditionsto boost innovation andentrepreneurship.3. ICT readiness and usage remain key drivers andpreconditions for obtaining any impacts. Despitethe increasing availability of ICTs, the question ofaccess and usage remains important especially fordeveloping countries, given their need to narrowthe digital divide. Even within developed nations,the need to provide high-speed broadband to allsegments of the population has acquired greaterimportance in recent years. Some features of theNRI are related to access and usage; these covernot only affordable ICT infrastructure but also digitalresources, including software and skills. Moreover,ICT impacts can arise only if ICTs are widely usedby all key actorsindividuals, businesses, andgovernments. It is a society-wide effort. Thoseactors demonstrating better preparedness andgreater interest are likely to use ICTs more andmore effectively, contributing to a greater impact oncompetitiveness and development.4. All factors interact and co-evolve within an ICTecosystem. Those societies that can count onbetter-prepared actors and an enabling environmentare more likely to benefit from higher rates of ICTuse and more extensive impacts. At the same time,those societies that benefit from higher rates ofICT use and positive impacts will, in turn, be morelikely to benefit from a push on the part of thedifferent stakeholders to be better prepared andkeep improving the framework conditions that willallow for more and stronger benefits to accrue. As aresult, a virtuous circle starts, where improvementsin one area affect and drive improvements in otherareas. Conversely, lags in one particular factor alsoaffect the evolution of the other factors.5. The framework should provide clear policyorientations and identify opportunities forpublic-private collaboration. The NRI facilitatesthe identification of areas where policy interventionthrough investment including public-privatepartnerships, smart regulation, or the provisionof incentivescould boost the impacts of ICTs.This is important because the development andgeneral uptake of ICTs depend on the capacityof a country to provide an institutional framework 2014 World Economic Forum 30. 1.1: The Networked Readiness Index 2014with reliable and efficient rules and regulations;favorable business conditions for the founding andgrowth of new (social and commercial) enterprises;an innovation-prone environment, capable ofdeveloping and absorbing new knowledge; and anICT-friendly government policy.ELEMENTS OF THE NETWORKED READINESSINDEXThe networked readiness framework translates into theNRI, comprising four subindexes: these measure theenvironment for ICTs; the readiness of a society to useICTs; the actual usage of all main stakeholders; and,finally, the impacts that ICTs generate in the economyand in society. The three first subindexes can beregarded as the drivers that establish the conditions forthe results of the fourth subindex, ICT impacts. Thesefour subindexes are divided into 10 pillars composed of54 individual indicators in total, according to the followingstructure (see also Figure2):A. Environment subindex1. Political and regulatory environment2. Business and innovation environmentB. Readiness subindex3. Infrastructure and digital content4. Affordability5. SkillsC. Usage subindex6. Individual usage7. Business usage8. Government usageD. Impact subindex9. Economic impacts10. Social impactsThe final NRI score is a simple average of the fourcomposing subindex scores, while each subindexsscore is a simple average of those of the composingpillars. In doing this, we assume that all NRI subindexesmake a similar contribution to networked readiness.Appendix A includes detailed information on thecomposition and computation of the NRI 2014, while webriefly describe the different subindexes below.Environment subindexThe environment subindex gauges the friendlinessof a countrys market and regulatory framework insupporting high levels of ICT uptake and the emergenceof entrepreneurship and innovation-prone conditions. Asupportive environment is necessary to maximize thepotential impacts of ICTs in boosting competitivenessand well-being. It includes a total of 18 variablesdistributed into two pillars.The political and regulatory environment pillar(composed of nine variables) assesses the extent6 | The Global Information Technology Report 2014to which the national legal framework facilitates ICTpenetration and the safe development of businessactivities, taking into account general features of theregulatory environment (including the protection affordedto property rights, the independence of the judiciary, andthe efficiency of the law-making process) as well as moreICT-specific dimensions (the passing of laws related toICTs and software piracy rates).The business and innovation environment pillar(nine variables) gauges the capacity of the businessframeworks conditions to boost entrepreneurship,taking into account dimensions related to the ease ofdoing business (including the presence of red tapeand excessive fiscal charges). This pillar also measuresthe presence of conditions that allow innovation toflourish by including variables on the overall availabilityof technology, the demand conditions for innovativeproducts (as proxied by the development of governmentprocurement of advanced technology products), theavailability of venture capital for financing innovation-relatedprojects, and the presence of a skilled laborforce.Readiness subindexThe readiness subindex, with a total of 12 variables,measures the degree to which a society is prepared tomake good use of an affordable ICT infrastructure anddigital content.The infrastructure and digital content pillar (fivevariables) captures the development of ICT infrastructure(including mobile network coverage, international Internetbandwidth, secure Internet servers, and electricityproduction) as well as the accessibility of digital content.The affordability pillar (three variables) assessesthe cost of accessing ICTs, either via mobile telephonyor fixed broadband Internet, as well as the level ofcompetition in the Internet and telephony sectors thatdetermine this cost.The skills pillar (four variables) gauges the abilityof a society to make effective use of ICTs thanks tothe existence of basic educational skills captured bythe quality of the educational system, the level of adultliteracy, and the rate of secondary education enrollment.Usage subindexThe usage subindex assesses the individual efforts ofthe main social agentsthat is, individuals, business,and governmentto increase their capacity to use ICTsas well as their actual use in their day-to-day activitieswith other agents. It includes 16 variables.The individual usage pillar (seven variables)measures ICT penetration and diffusion at the individuallevel, using indicators such as the number of mobilephone subscriptions, individuals using the Internet,households with a personal computer (PC), householdswith Internet access, both fixed and mobile broadbandsubscriptions, and the use of social networks. 2014 World Economic Forum 31. 1.1: The Networked Readiness Index 2014Figure 2: The Networked Readiness Index structureComponent subindexes PillarsPolitical and regulatory environmentBusiness and innovation environmentInfrastructure and digital contentIndividual usageEconomic impactsThe Global Information Technology Report 2014 | 7The business usage pillar (six variables) captures theextent of business Internet use as well as the efforts ofthe firms in an economy to integrate ICTs into an internal,technology-savvy, innovation-conducive environment thatgenerates productivity gains. Consequently, this pillarmeasures the firms technology absorption capacity aswell as its overall capacity to innovate and the productionof technology novelties measured by the number ofPatent Cooperation Treaty (PCT) patent applications.It also measures the extent of staff training available,which indicates the extent to which managementand employees are more capable of identifying anddeveloping business innovations. As we did last year,we split the e-commerce variable to distinguish thebusiness-to-business dimension from the business-to-consumerone, because some noticeable differencesbetween the two dimensions exist in several countries.The government usage pillar (three variables)provides insights into the importance that governmentsplace on carrying out ICT policies for competitivenessand to enhance the well-being of their citizens, theeffort they make to implement their visions for ICTdevelopment, and the number of government servicesthey provide online.Impact subindexThe impact subindex gauges the broad economicand social impacts accruing from ICTs to boostcompetitiveness and well-being and that reflect thetransformation toward an ICT- and technology-savvyeconomy and society. It includes a total of eightvariables.The economic impacts pillar (four variables)measures the effect of ICTs on competitiveness thanksto the generation of technological and non-technologicalinnovations in the shape of patents, new productsor processes, and novel organizational practices. Inaddition, it also measures the overall shift of an economytoward more knowledge-intensive activities.The social impacts pillar (four variables) aims toassess the ICT-driven improvements in well-being thatresult from their impacts on the environment, education,energy consumption, health progress, or more-activecivil participation. At the moment, because of datalimitations, this pillar focuses on measuring the extentto which governments are becoming more efficient inthe use of ICTs and provide increased online services totheir citizens, and thus improving their e-participation.It also assesses the extent to which ICTs are present ineducation, as a proxy for the potential benefits that areassociated with the use of ICTs in education.NetworkedReadiness IndexReadiness AffordabilitySkillsUsage Business usageGovernment usageEnvironmentSocial impactsImpacts 2014 World Economic Forum 32. 1.1: The Networked Readiness Index 2014Figure 3: Breakdown of indicators used in the Networked Readiness Index 2014 by data sourceIn general, measuring the impacts of ICTs isINDICATORS FROMOTHER SOURCES27 INDICATORSa complex task, and the development of rigorousquantitative data to do so is still in its infancy. As a result,many of the dimensions where ICTs are producingimportant impactsespecially when these impacts arenot directly translated into commercial activities, as isthe case for the environment and for healthcannot yetbe covered. Therefore this subindex should be regardedas a work in progress that will evolve to accommodatenew data on many of these dimensions as they becomeavailable.COMPUTATION METHODOLOGY AND DATAIn order to capture as comprehensively as possible allrelevant dimensions of societies networked readiness,the NRI 2014 is composed of a mixture of quantitativeand survey data, as shown in Figure3.Of the 54 variables composing the NRI this year,27or 50 percentare quantitative data, collectedprimarily by international organizations such asInternational Telecommunication Union (ITU), the WorldBank, and the United Nations. International sourcesensure the validation and comparability of data acrosscountries.The remaining 27 variables capture aspects thatare more qualitative in nature or for which internationallycomparable quantitative data are not available for a largeenough number of countries, but that nonetheless arecrucial to fully measure national networked readiness.These data come from the Executive Opinion Survey (theSurvey), which the Forum administers annually to over8 | The Global Information Technology Report 2014TOTAL: 54 INDICATORS(50%)15,000 business leaders in all economies included inthe Report.8 The Survey represents a unique source ofinsight into many critical aspects related to the enablingenvironment, such as the effectiveness of law-makingbodies and the intensity of local competition; into ICTreadiness, such as the quality of the educational systemand the accessibility of digital content; into ICT usage,such as capacity to innovate and the importance ofgovernment vision for ICTs; and into impacts, such asthe impact of ICTs on developing new products andservices and improving access to basic services.The NRIs coverage every year is determinedby the Survey coverage and data availability forindicators obtained from other sources, mostlyinternational organizations. This year the Reportincludes 148 economies, four more than the 2013edition. The newly covered countries are Bhutan, LaoPDR, and Myanmar. We have also re-instated Angolaand Tunisia into the Index, two countries that were notincluded in last years edition. Tajikistan is not coveredin the 2014 Report because Survey data could not becollected this year.More details on variables included in the Index andtheir computation can be found in Appendix A and in theTechnical Notes and Sources section at the end of theReport.THE CURRENT NETWORKED READINESSLANDSCAPE: INSIGHTS FROM THE NRI 2014This section provides an overview of the networkedreadiness landscape of the world as assessed by theEXECUTIVE OPINIONSURVEY27 INDICATORS(50%) 2014 World Economic Forum 33. 1.1: The Networked Readiness Index 2014The Global Information Technology Report 2014 | 9NRI 2014. It presents the results of the top 10 performersand selected countries by region, in the following order:Europe and the Commonwealth of Independent States;Asia and the Pacific; Latin America and the Caribbean,sub-Saharan Africa; and the Middle East and NorthAfrica.Tables 1 through 5 report the 2014 rankings forthe overall NRI, its four subindexes, and its 10 pillars. Inaddition, the Country/Economy Profiles and Data Tablessections at the end of the Report present the detailedresults for the 148 economies covered by the study andthe 54 indicators composing the NRI. To complementthe analysis of the results, Box1 presents a classificationof countries based on their NRI 2014 scores and thechange rate of this Index over a two-year period; Box2assesses the nature of the digital divide in Europe;and Box3 discusses the challenges large emergingeconomies must overcome if they are to keep movingforward in integrating ICTs into more robust innovationecosystems that could help them transition from whatappears to be a mid-life crisis toward a knowledge-basedsociety. Figure4 presents an intensity map of theworld; economies are color-coded based on their NRIoverall score measured on a 1-to-7 scale, with best- andworst-performing economies appearing in dark greenand red, respectively. Finally, Appendix A of the presentchapter details the structure of the NRI and describesthe method of calculation.TOP 10As in previous years, the top 10 spots continue to bedominated by Northern European economies, theAsian Tigers, and some of the most advanced Westerneconomies. Three Nordic economiesFinland,Sweden, and Norwaylead the rankings and arepositioned among the top 5. Denmark and Iceland,the remaining two Nordic economies, also performstrongly, and despite small slips this year they featureamong the top 20. Overall, their performance in terms ofICT readiness, with excellent digital infrastructures androbust innovation systems, allows them to score veryhighly both in ICT usewith almost universal Internetuse, for exampleand in innovation performances. TheAsian Tigerscomposed of Singapore, Hong KongSAR, the Republic of Korea, and Taiwan (China)alsoperform very strongly, all of them positioned at theforefront of the NRI and with Singapore, Hong KongSAR, and the Republic of Korea featuring amongthe top 10. All these economies continue to boastoutstanding business and innovation environments thatare consistently ranked among the most conducive toentrepreneurship in the world. Finally, the top 10 includessome of the most advanced Western economiestheNetherlands, Switzerland, the United States, and theUnited Kingdomthat have recognized the potential ofICTs to embark in a new economic and social revolution,and thus have substantially invested in developing theirdigital potential.In dynamic terms, this year the rankings remain verystable, with no movement in the top 6 and negligibleFigure 4: The Networked Readiness Index mapValuen 5.47.0 (best)n 5.05.4n 4.05.0n 3.34.0n 1.0(worst)3.3n Not covered 2014 World Economic Forum 34. 1.1: The Networked Readiness Index 2014Table 1: The Networked Readiness Index 20142013 rankRank Country/Economy Value (out of 144) Group*1 Finland 6.04 1 ADV2 Singapore 5.97 2 ADV3 Sweden 5.93 3 ADV4 Netherlands 5.79 4 ADV5 Norway 5.70 5 ADV6 Switzerland 5.62 6 ADV7 United States 5.61 9 ADV8 Hong Kong SAR 5.60 14 ADV9 United Kingdom 5.54 7 ADV10 Korea, Rep. 5.54 11 ADV11 Luxembourg 5.53 16 ADV12 Germany 5.50 13 ADV13 Denmark 5.50 8 ADV14 Taiwan, China 5.47 10 ADV15 Israel 5.42 15 ADV16 Japan 5.41 21 ADV17 Canada 5.41 12 ADV18 Australia 5.40 18 ADV19 Iceland 5.30 17 ADV20 New Zealand 5.27 20 ADV21 Estonia 5.27 22 ADV22 Austria 5.26 19 ADV23 Qatar 5.22 23 MENA24 United Arab Emirates 5.20 25 MENA25 France 5.09 26 ADV26 Ireland 5.07 27 ADV27 Belgium 5.06 24 ADV28 Malta 4.96 28 ADV29 Bahrain 4.86 29 MENA30 Malaysia 4.83 30 DEVASIA31 Lithuania 4.78 32 CEE32 Saudi Arabia 4.78 31 MENA33 Portugal 4.73 33 ADV34 Spain 4.69 38 ADV35 Chile 4.61 34 LATAM36 Slovenia 4.60 37 ADV37 Cyprus 4.60 35 ADV38 Kazakhstan 4.58 43 CIS39 Latvia 4.58 41 CEE40 Oman 4.56 40 MENA41 Puerto Rico 4.54 36 ADV42 Czech Republic 4.49 42 ADV43 Panama 4.36 46 LATAM44 Jordan 4.36 47 MENA45 Brunei Darussalam 4.34 57 DEVASIA46 Croatia 4.34 51 CEE47 Hungary 4.32 44 CEE48 Mauritius 4.31 55 SSA49 Azerbaijan 4.31 56 CIS50 Russian Federation 4.30 54 CIS51 Turkey 4.30 45 CEE52 Montenegro 4.27 48 CEE53 Costa Rica 4.25 53 LATAM54 Poland 4.24 49 CEE55 Barbados 4.22 39 LATAM56 Uruguay 4.22 52 LATAM57 Macedonia, FYR 4.19 67 CEE58 Italy 4.18 50 ADV59 Slovak Republic 4.12 61 ADV60 Georgia 4.09 65 CIS61 Mongolia 4.07 59 CIS62 China 4.05 58 DEVASIA63 Colombia 4.05 66 LATAM64 Indonesia 4.04 76 DEVASIA65 Armenia 4.03 82 CIS66 Seychelles 4.02 79 SSA67 Thailand 4.01 74 DEVASIA68 Bosnia and Herzegovina 3.99 78 CEE69 Brazil 3.98 60 LATAM70 South Africa 3.98 70 SSA71 Trinidad and Tobago 3.97 72 LATAM72 Kuwait 3.96 62 MENA73 Bulgaria 3.96 71 CEE74 Greece 3.95 64 ADV10 | The Global Information Technology Report 20142013 rankRank Country/Economy Value (out of 144) Group*75 Romania 3.95 75 CEE76 Sri Lanka 3.94 69 DEVASIA77 Moldova 3.89 77 CIS78 Philippines 3.89 86 DEVASIA79 Mexico 3.89 63 LATAM80 Serbia 3.88 87 CEE81 Ukraine 3.87 73 CIS82 Ecuador 3.85 91 LATAM83 India 3.85 68 DEVASIA84 Vietnam 3.84 84 DEVASIA85 Rwanda 3.78 88 SSA86 Jamaica 3.77 85 LATAM87 Tunisia 3.77 n/a MENA88 Guyana 3.77 100 LATAM89 Cape Verde 3.73 81 SSA90 Peru 3.73 103 LATAM91 Egypt 3.71 80 MENA92 Kenya 3.71 92 SSA93 Dominican Republic 3.69 90 LATAM94 Bhutan 3.68 n/a DEVASIA95 Albania 3.66 83 CEE96 Ghana 3.65 95 SSA97 Lebanon 3.64 94 MENA98 El Salvador 3.63 93 LATAM99 Morocco 3.61 89 MENA100 Argentina 3.53 99 LATAM101 Guatemala 3.52 102 LATAM102 Paraguay 3.47 104 LATAM103 Botswana 3.43 96 SSA104 Iran, Islamic Rep. 3.42 101 MENA105 Namibia 3.41 111 SSA106 Venezuela 3.39 108 LATAM107 Gambia, The 3.38 98 SSA108 Cambodia 3.36 106 DEVASIA109 Lao PDR 3.34 n/a DEVASIA110 Zambia 3.34 115 SSA111 Pakistan 3.33 105 MENA112 Nigeria 3.31 113 SSA113 Suriname 3.30 117 LATAM114 Senegal 3.30 107 SSA115 Uganda 3.25 110 SSA116 Honduras 3.24 109 LATAM117 Zimbabwe 3.24 116 SSA118 Kyrgyz Republic 3.22 118 CIS119 Bangladesh 3.21 114 DEVASIA120 Bolivia 3.21 119 LATAM121 Liberia 3.19 97 SSA122 Cte d'Ivoire 3.14 120 SSA123 Nepal 3.09 126 DEVASIA124 Nicaragua 3.08 125 LATAM125 Tanzania 3.04 127 SSA126 Swaziland 3.00 136 SSA127 Mali 3.00 122 SSA128 Gabon 2.98 121 SSA129 Algeria 2.98 131 MENA130 Ethiopia 2.95 128 SSA131 Cameroon 2.94 124 SSA132 Malawi 2.90 129 SSA133 Lesotho 2.88 138 SSA134 Sierra Leone 2.85 143 SSA135 Benin 2.82 123 SSA136 Burkina Faso 2.78 130 SSA137 Mozambique 2.77 133 SSA138 Libya 2.75 132 MENA139 Madagascar 2.74 137 SSA140 Yemen 2.73 139 MENA141 Timor-Leste 2.69 134 DEVASIA142 Mauritania 2.61 135 MENA143 Haiti 2.52 141 LATAM144 Angola 2.52 n/a SSA145 Guinea 2.48 140 SSA146 Myanmar 2.35 n/a DEVASIA147 Burundi 2.31 144 SSA148 Chad 2.22 142 SSANote: Group classification follows the International Monetary Funds classification (situation as of October 2013).* Groups: ADV = Advanced economies; CIS = Commonwealth of Independent States and Mongolia; DEVASIA = Developing Asia; LATAM = Latin America and the Caribbean; MENA = Middle Eastand North Africa; SSA = Sub-Saharan Africa. 2014 World Economic Forum 35. 1.1: The Networked Readiness Index 2014The Global Information Technology Report 2014 | 11Table 2: Environment subindex and pillarsENVIRONMENT SUBINDEXRank Country/Economy Score Rank Score Rank Score1 Singapore 5.87 1 5.90 1 5.842 New Zealand 5.63 2 5.88 8 5.373 Finland 5.62 3 5.86 9 5.374 Hong Kong SAR 5.56 11 5.40 2 5.725 United Kingdom 5.50 5 5.66 10 5.336 Netherlands 5.48 8 5.53 5 5.447 Norway 5.46 7 5.54 6 5.388 Sweden 5.45 6 5.63 15 5.269 Switzerland 5.41 9 5.51 12 5.3110 Canada 5.39 12 5.31 3 5.4611 Luxembourg 5.31 4 5.73 29 4.9012 Ireland 5.27 13 5.29 16 5.2513 Qatar 5.23 14 5.23 17 5.2314 Australia 5.20 15 5.23 21 5.1715 United States 5.19 22 5.00 7 5.3816 Denmark 5.19 19 5.16 18 5.2117 Germany 5.14 10 5.41 31 4.8718 United Arab Emirates 5.10 24 4.91 13 5.2819 Belgium 5.08 21 5.01 22 5.1420 Iceland 5.01 27 4.81 19 5.2121 Japan 4.99 16 5.23 40 4.7522 Israel 4.97 28 4.67 14 5.2723 Austria 4.97 18 5.19 39 4.7524 Malaysia 4.95 25 4.84 24 5.0725 Taiwan, China 4.94 34 4.43 4 5.4526 Estonia 4.88 26 4.83 28 4.9327 Saudi Arabia 4.86 31 4.59 23 5.1228 Rwanda 4.83 17 5.22 55 4.4529 Chile 4.83 38 4.34 11 5.3230 France 4.82 23 4.97 47 4.6731 South Africa 4.76 20 5.05 53 4.4832 Puerto Rico 4.75 29 4.64 33 4.8633 Oman 4.69 32 4.54 36 4.8434 Korea, Rep. 4.68 42 4.18 20 5.1935 Portugal 4.63 39 4.26 25 5.0036 Malta 4.62 30 4.63 49 4.6237 Mauritius 4.61 33 4.48 43 4.7538 Barbados 4.58 35 4.42 42 4.7539 Cyprus 4.57 45 4.16 26 4.9840 Bahrain 4.52 48 4.07 27 4.9641 Jordan 4.45 44 4.16 41 4.7542 Latvia 4.44 53 4.01 32 4.8643 Lithuania 4.41 52 4.02 37 4.7944 Turkey 4.38 55 4.00 38 4.7745 Spain 4.31 47 4.09 51 4.5446 Panama 4.31 62 3.76 35 4.8547 Slovenia 4.28 72 3.66 30 4.8948 Ghana 4.23 41 4.19 66 4.2849 Czech Republic 4.23 51 4.05 60 4.4150 Hungary 4.22 54 4.00 56 4.4451 Uruguay 4.21 57 3.96 54 4.4652 Montenegro 4.21 80 3.56 34 4.8653 Macedonia, FYR 4.21 67 3.74 46 4.6754 Brunei Darussalam 4.20 46 4.15 69 4.2555 Poland 4.12 65 3.75 52 4.4956 Thailand 4.12 79 3.56 45 4.6957 Kazakhstan 4.11 61 3.80 58 4.4258 Croatia 4.10 88 3.51 44 4.6959 Namibia 4.10 37 4.38 112 3.8160 Zambia 4.07 59 3.82 63 4.3361 Botswana 4.05 40 4.26 107 3.8462 Seychelles 4.05 49 4.07 90 4.0263 Indonesia 4.04 68 3.71 62 4.3664 Costa Rica 4.00 63 3.76 70 4.2465 Guyana 4.00 64 3.76 71 4.2366 Lao PDR 3.99 50 4.06 97 3.9267 Jamaica 3.96 60 3.82 80 4.1068 Gambia, The 3.95 36 4.39 125 3.5069 Cape Verde 3.94 58 3.91 93 3.9870 Azerbaijan 3.94 66 3.75 77 4.1371 Bulgaria 3.94 105 3.29 50 4.5972 Mongolia 3.91 98 3.39 57 4.4373 Georgia 3.91 97 3.40 59 4.4274 Slovak Republic 3.90 83 3.55 68 4.25ENVIRONMENT SUBINDEXRank Country/Economy Score Rank Score Rank Score75 Mexico 3.88 70 3.68 85 4.0776 Bhutan 3.87 43 4.17 123 3.5777 China 3.87 56 3.97 115 3.7678 Kuwait 3.85 75 3.61 81 4.0979 Sri Lanka 3.85 74 3.62 82 4.0880 Bosnia and Herzegovina 3.83 76 3.59 83 4.0881 Ecuador 3.81 89 3.51 78 4.1282 Liberia 3.80 92 3.45 75 4.1583 Armenia 3.80 104 3.32 67 4.2884 Morocco 3.79 81 3.56 88 4.0385 Romania 3.79 101 3.38 72 4.2086 Iran, Islamic Rep. 3.79 86 3.53 86 4.0487 Russian Federation 3.78 100 3.39 73 4.1788 Italy 3.77 99 3.39 76 4.1589 Greece 3.76 114 3.20 64 4.3290 Philippines 3.76 87 3.51 92 4.0191 India 3.76 73 3.64 103 3.8792 Kenya 3.75 71 3.67 110 3.8393 Peru 3.75 119 3.10 61 4.3994 Trinidad and Tobago 3.73 93 3.45 91 4.0195 Albania 3.72 117 3.14 65 4.3196 Vietnam 3.68 91 3.47 100 3.8897 Dominican Republic 3.68 110 3.24 79 4.1298 Cambodia 3.66 95 3.43 98 3.9099 Lesotho 3.66 90 3.48 108 3.84100 Senegal 3.64 106 3.26 89 4.02101 Colombia 3.64 96 3.41 104 3.87102 Tunisia 3.64 94 3.44 109 3.83103 Lebanon 3.63 142 2.62 48 4.63104 Uganda 3.59 77 3.57 121 3.61105 Guatemala 3.59 123 3.02 74 4.16106 Serbia 3.58 118 3.11 87 4.04107 Malawi 3.57 69 3.70 130 3.43108 Sierra Leone 3.55 82 3.55 124 3.55109 Nigeria 3.54 112 3.23 106 3.85110 El Salvador 3.53 121 3.10 95 3.96111 Cte dIvoire 3.52 116 3.16 102 3.87112 Ethiopia 3.50 102 3.37 120 3.64113 Swaziland 3.49 84 3.55 129 3.44114 Ukraine 3.48 130 2.89 84 4.08115 Tanzania 3.47 85 3.54 132 3.39116 Brazil 3.45 78 3.57 135 3.33117 Mali 3.44 111 3.23 119 3.65118 Pakistan 3.44 124 3.00 101 3.88119 Egyp