“How can telephone lines, computers, the internet, and mobile phones help areas where electricity is absent, fresh water is scarce and people die every day of starvation and curable diseases?” Although this question sounds logical, it nonetheless disregards that the Millennium Development Goals (MDGs) place the development of information and communication technologies (ICTs) just as important as reducing hunger, improving water quality and sanitation, lowering infant mortality rates and promoting universal education. More precisely, the MDGs acknowledge the need to “make available the benefits of new technologies – especially [ICTs]” in cooperation with the private sector. In this globalized world, the “digital poor” and the “information poor” are hence just as prone to poverty as those suffering from other seemingly more pressing problems.
The plight of the “digital poor” is in fact pressing because of the “digital divide.” Indeed, the disparity, in terms of penetration and utilization of ICTs between developed and developing countries, has deprived the poor of global exchanges through both basic telecommunication infrastructure, such as radios and TVs, and modern gadgets like mobile phones and laptops. According to the 2006 Digital Opportunity Index (DOI), which measures accessibility, infrastructure and utilization of ICTs with a scale from 0 to 1, the most information-deprived countries scored around 0.04, while the top countries, namely Korea, Japan and Denmark, scored close to 0.8. In most middle- and low-income countries, it is now less costly to access available ICTs, but they still suffer from primitive and unreliable infrastructure as well as low rates of utilization. This divide has hence sustained global inequality and rendered it impossible for the digital poor to fully engage in global business and development initiatives.
The potential benefits of e-business are lucrative especially developing countries. Prior to the emergence of online marketplaces and internet communications, small businesses sell only to a small local market. Access to global markets often requires middlemen. High commission charges would then offset relatively low production costs. Under such conditions, businesses from developing countries earn significantly less than their global competitors who directly engage with higher-end buyers. Online commerce, however, provides more perfect market information and creates opportunities for sellers to establish direct contact with buyers who they would not otherwise know. In addition, the vast agrarian population will benefit as well because the internet will allow them to post information online, track daily price information and browse weather reports. In turn, farmers can more accurately assess their risks and adjust their production to market conditions. Furthermore, ICT development also entails improvements in the quality of exchanges in technical experiences and latest research findings between educational institutions. E-health services can potentially improve and expand long-distance diagnosis and online consultations as well. Clearly, an inclusive information society encompassing members of the developed and developing world can open new doors to international partnerships and economic growth.
While recognizing the necessity of ICT in economic development, as analyzed, the essential financial resources are lacking. In order to move forward, the following four options may serve as solutions to bridge the existing digital gap with the least capital-intensive means:
Create the most cost-efficient network of ICT infrastructure through focused development on public access
With more competitive markets and technological advancement, a wider range of ICTs are now offered at much lower prices than before. However, the price of computers remains a big obstacle to wider household penetration in developing nations. The lack of home internet access, however, no longer means the complete lack of access to the virtual space. In fact, according to the progress report by the World Summit on the Information Society (WSIS), there has been a significant growth in internet traffic through community access points. These multimedia telecenters, especially those in existing social centers such as town halls, meeting points, religious centers and youth clubs, are effectively enhancing the accessibility of ICTs. Further, establishing ICTs in various public service providers provide means to improve the quality of education and healthcare, as well as to disperse vital employment, business and scientific information. Therefore, while household incomes are unlikely to reach the levels necessary for the poor to purchase their own personal computers and individually subscribe to network services, communal network facilities and focused engagement with public services will, at least for now, serve as the starting point to lower the financial barriers to ICT development.
Reduce the need for fixed infrastructure by utilizing new technologies
While creating an extensive physical network of internet cables and telephone lines may be impossible for remote rural areas, new technologies are offering new opportunities for ICT penetration. Instead of conventional telephones, developing nations are experiencing massive growth of mobile phone users. Pan-African mobile operators, for instance, have experienced subscriber growth rates “far greater those found in mature mobile markets.” This growing demand for mobile service hence allow operators to build large-scale infrastructural networks with economies of scale and to negotiate group-wide purchases at lower costs. In addition, various forms wireless communication offers low-cost access to mobile phone and internet networks. In Latin America, the E-Link Americas project connects with a satellite gateway in Canada, hence delivering affordable internet access to districts, schools, hospitals and telecenters in rural areas of eight countries. WiMax, a sort of fourth-generation Wi-Fi that can reach out across dozens of miles, can function with microwaves from a fixed or even mobile point of emission. This technology then serves to reduce the fixed infrastructural needs of its third-generation (3G) competitors, who build its services on fiber optic cables. The growing mobility of ICTs reveals the fact that ICTs will only become more feasible even in rural areas. In turn, while basic power requirements are still necessary for the full utilization of ICTs, the amount of capital-intensive investments will inevitably be reduced with technological advancements.
Enhance regional policy coordination through regional working groups and dialogue
With the ultimate goal of enhancing global exchanges of information, national ICT policies need to be compatible with regional development initiatives. The eLAC process, launched by the UN-backed Global Alliance for ICT and Development (G@ID), is an exemplary effort from Latin American and Caribbean countries to mediate between international goals and the needs and priorities of the region. In their Second Ministerial Conference in February 2008, the San Salvador Commitment identified 96 regional goals pertaining to e-education, infrastructure development, e-health, e-government, e-business and various policy coordination tools. These common commitments allow LAC countries to monitor each other’s progress, as well as to avoid duplication of efforts, ensure interoperability of ICT services and engage the various stakeholders in their societies. Similar regional cooperation can be found in Africa as well. Following large-scale projects to create lay fiber optic cables from Portugal to West and Southern Africa, a similar initiative has been launched in East Africa in 2006. The East Africa Submarine Cable System (EASSy) will likely contribute to a broader access to broadband with lower prices. Although many argue that internet subscriptions will still be too expensive, in South Africa, internet operators claim that international bandwidth prices have dropped 70% since the regional cable came into effect in 2002. The economies of scale resulting from region-wide coordination hence bring the region as a whole closer to international development goals.
Increase awareness and incentive by fostering multi-stakeholder partnerships
Finally, the above options can be most adequately carried out with participation from all facets of society on both the national and international level. With careful deregulation and removal of barriers to private sector participation, more vibrant ITC markets with greater range of cheaper service packages can be developed. The participation of the civil society will also be essential to make ITCs most relevant to the lives of the poor. Efforts such as establishing e-learning networks and community access points are surely most effective with inputs from the locals. In May 2007, this multi-stakeholder approach was put into practice at the 10th session of the UN Commission on Science and Technology for Development (UNCSTD), where governments, academics, businesses and NGOs gathered can discuss ways to ensure ITC penetration to the poor. On the local level, more competitive markets and better training for ICT users are already benefiting some African countries. Therefore, to unleash the economic potential of ITC development, broad-based participation is crucial.
In conclusion, knowledge and information are increasingly important for individuals and countries to thrive in the international economy. The relationship between the developed and the developing is also becoming more symbiotic. That is, the internet and mobile network will become a tool to explore new market opportunities. Therefore, there should be no more excuses to hinder the full-fledged development of ICTs. Instead, we should “think outside the box” and come up with ideas that can most efficiently promote the ICTs in even the poorest regions of the world.
Case studies:
Connell, James. "WiMax is Finding a Home Across the Digital Divide." International Herald Tribune 14 Feb. 2007.
Konrad, Rachel. "Online in Ecuador? It's Taking Awhile." New York Times 2 Jan. 2003.
Tedeschi, Bob. "E-Commerce Report: Sensing Economic Opportunities, Many Developing Nations are Laying the Groundwork for Online Commerce." New York Times 24 Nov. 2003.
