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
Session II:
ICT Strategies for Development:

Key elements
Cécile Barayre
Marta Pérez Cusó
ICT and E-Business Branch, SITE
 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)
 1. ICT infrastructure,
connectivity
& access
• 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)
 What is FOSS?
Free and Open-Source Software: a
software which has its source code
open
• Free as in freedom
Social 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,

 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

179 of 191 member states had a website

88 % of all countries provided info online
Only 1/3 of all countries provided public
ervices online

Serious access-divide
Source: UNDESA, 2005
 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 Connec Content Commu Comme Capacit Culture Cooper Capital Context Conti Control Cohere
tivity nity rce y ation nuity nce
Macro

Meso

Micro

Vision

Assum
ptions
Conflict
s
 The 12 C’s
Connectivity •Accessible & affordable Cooperation •All stakeholders support the
Infrastructure & technology initiative

Content •Relevant & accessible Capital •Financial sustainability

•Users participate in its
development
Community •Provile & level of Context •Adapted to context
participation of users •Influences context

Commerce •Supports economic Continuity •Monitoring & evaluation

activities & livelihoods •Flexible promotes learning

Capacity •User’s capacity Control •Beneficiaries’ ownership

•Organisation’s capacity •Stakeholders accountable

Culture •Supportive culture Coherence •Coherent with other initiatives to

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

No information available
Country in the process of developing a national ICT Strategy
Country with a national ICT Strategy

Source: UNCTAD (2006)

 UNCTAD survey on ICT
master plans
How many developing countries
have adopted an ICT strategy or
master plan?
• 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
Strategy Implementation Evaluation

National ICT plan RITA – Rwanda Information Some progress:

NICI‘01-’05 Technology Authority PCs now in 1138 schools

included Still challenges:

Human Resource Development Agency
Human resources Training of civil servants Only 26% of the plan
achieved
development ICT in higher learning
Promotion of women in ICT Major cause
PCs in schools & train IT teachers 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
 UNCTAD ICT policy review model
framework
Assessment of existing ICT master plan

Transparent and continuous consultation

Implementation &
ICT environment ICT policy framework Institutional framework

process with all stakeholders

 Objectives and priority areas
ICT uptake and  Integration of ICT policies
& strategic approach
use indicators  ICT infrastructure development
in national development
 Legal and regulatory framework
plans /PRSP
 ICT infrastructure & access  Institutional setup for
 ICT human resources/skills
Access to & use of ICTs by
 Business development
implementation of ICT plan
households and individuals  Policy coordination
 ICT-related trade & investment
 Use of ICTs by businesses  Financial resources
 policies
ICT sector and trade in ICT  Monitoring and evaluation
 E-government
goods
 Technological innovation (R&D)
 Other ICT indicators

Indicators of achievement – identification of success factors,

best practices, lessons learnt and challenges ahead

Policy recommendations

Revised ICT master plan/policies

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
 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 attention
Any questions or comments?
www.unctad.org/ecommerce
measuring-ict.unctad.org
[email protected]