As mankind starts its journey into the new
millennium we notice the two major forces shaping up the future of
this world, reducing geographic boundaries, bringing cultures and
societies closer to each other - are Globalization and Information
Communication and Technology (ICT) - creating a paradox of wealth and
poverty; bridging gap between individuals and isolating them at the
same time; creating simultaneously the information haves and
information have-nots; empowering people contribute and restricting
communities to participate. On one hand, despite many steps forward in
social and economic conditions around the world in recent decades,
there remain huge disparities in the quality of human existence. We
are now at a critical juncture of time and place where unprecedented
global flows in information, products, people, capital and ideas offer
great potential for radical improvements in human development, but
left unabated, they may also serve to worsen and entrench the spiral
of poverty which already exists in many communities and countries
limiting people to unleash the prowess of ICT revolution and creating
gaps of income generation, information access, technology transfer,
generation, urban-rural, demographic, and literacy.
At the end of 20th century, globalization
phenomenon thorough movement of goods, services, people and
information across national boundaries, has resulted into opening up
of economies and societies accelerating global integration of
economies through the flow of capital and trans-border production.
Information, Communication and Technology (ICT) fueling the
globalization process clearly demonstrated that the world is no longer
a collection of relatively autonomous neighborhoods that are only
marginally connected. Information and ideas can be accessed in all
corners of the globe at the click of a mouse button. The international
economies are becoming more and more interconnected via internet and
telecommunication technologies.
The global integration of countries has brought not
only opportunities of economic growth but challenges of development.
These challenges like poverty, issues of food security, water
scarcity, aging population, cultural loss, and environmental
degradation must be confronted with forces that reshape the
development perspective today: innovations in technology, the spread
of knowledge, the growth of population, the financial integration of
the world markets. Technological advances in communication have made
it possible to travel around the world through a computer window,
doing business, learning, playing, and sight seeing, chatting, banking
and learning- all for a fraction of cost. Here arises an important
question: How can advancements of ICT today can provide the bridge
between the global disparities existing today? Or these will multiply
the gulfs!
THE DEVELOPMENT CHALLENGE
Poor countries and poor people not only differ from
rich not only because they are less resourceful but also less
knowledge has today become the fundamental factor increasing the gap
in between them. Poor people live today without fundamental freedom of
action and choice that the rich take for granted. Poor lack adequate
food and shelter, education and health, deprivations facing extreme
vulnerability to ill health, economic dislocation and natural
disasters. Today, among 6 billion people of the world, 3 billion live
on less than $2 a day, and 1.2 billion live on less than $1 a day,
with 44% living in South Asia. This destitution persists even though
human condition have improved more in the past century than in the
rest of the history - global wealth, global connections, and
technological capabilities have never been greater but the
distribution of global gains remain unequal. The average income in the
richest 20 countries is 37 times the average of the poorest 20 - a gap
that has increased over the years to the extent that it has doubled in
the last 40 years. The rich countries benefit more form the
opportunities of the global economy because of many reasons that are
state-of-the-art technology, human capital, modern means of
communications, better infrastructure.
Whether national or international development
policy is to create sustainable improvements in the quality of life
for all people through raising per capita incomes and consumption is
part of that goal at one end and on the other reducing poverty,
expanding access to health services, and increasing educational levels
- as a comprehensive approach to development. The evidence of the past
demonstrates that there are no easy approaches to gain sustainable
development but efforts to achieve are worth while. These approaches
should be multidimensional involving all the stakeholders of the
community and society at large, venturing public and private
partnerships.
Keeping in view the paradigm shifts which are
taking place at the international and local levels it is observed that
the panacea of socio-economic challenges which the world today faces
requires a comprehensive rapprochement of mobilizing the forces of
future - let it be adoption of ICT and governance.
THE KNOWLEDGE DYNAMIC
"Visions of a global knowledge-based economy and
universal electronic commerce, characterized by the `death of
distance' must be tempered by the reality that half the world's
population has never made a telephone call, much less accessed the
Internet" Knowledge is electrifying like light. Weightless and
intangible easily traveling the world, enlightening the lives of
people everywhere. Due to the phenomenon of globalization and
development of ICT the world has taken a paradigm shift to enter into
the knowledge-led era of economic prosperity and opportunity. Yet
billions of people still live in the darkest of poverty —
unnecessarily. Poor are at greater disadvantage and differ from the
rich not because of income levels but because of lack of knowledge.
Yes, knowledge is often costly to create, and that is why much of it
is created in industrial countries. But developing countries can
acquire knowledge overseas and at home by encouraging local
initiatives and awareness programs. Knowledge illuminates every
economic transaction, revealing preferences, giving clarity to
exchanges, informing markets. And it is lack of knowledge that causes
markets to collapse, or never to come into being. Approaching
development from a knowledge perspective — that is, adopting policies
to increase both types of knowledge, know-how and information of
technology - can improve the beleaguered gaps which exist in between
the developed and developing worlds today known as knowledge gaps.
Closing these gaps is not easy. Developing countries are pursuing to
over come but the dynamic of knowledge gap is that gap in the capacity
to create knowledge. In order to live and to see a better tomorrow, to
improve health, better education, and to reduce human disparities is
only possible through provision of equitable and meaningful access of
knowledge resources. For countries in the vanguard of the world
economy, the balance between knowledge and resources has shifted so
far toward the former that knowledge has become the most important
factor determining the standard of living. Today's most
technologically advanced countries are truly knowledge-based
generating new wealth from their innovations, creating millions of
knowledge related jobs in an array of disciplines that have emerged.
Here the most important matter of fact which
enabled the phenomenal economic advancement is not merely creation of
knowledge but movement of knowledge through integrated networks with
in the country and around the globe. Looking closer, one would find a
definite congruence of the velocity of knowledge transfer, and
scientific and economic developments. As information has become the
lifeblood of knowledge economies the ability to acquire and transfer
knowledge have created a great gulf between the information haves and
information have-nots promulgated as the Digital Divide.
THE DIGITAL DIVIDE:
Broadening the Gap between Civilizations
"...there are more telephones in New York City than
in all of rural Asia, more Internet accounts in London than all of
Africa. As much as 80% of the world's population has never made a
phone call..."
Despite many steps forward in social and economic
conditions around the world in recent decades, there remain huge
disparities in the quality of human existence. Unprecedented global
flows in information, products, people, capital and ideas offer great
potential for radical improvements in human development, but left
unabated, they may also serve to worsen and entrench the spiral of
poverty which already exists in many communities and countries.
Numerous factors influence the extent and speed of social and economic
development - not least political stability, physical infrastructure,
basic literacy and basic health care. There is no suggestion that ICT
can eliminate the need for these or offer a panacea for all
development problems. But detailed analysis of experience around the
world reveals ample evidence that, used in the right way and for the
right purposes, ICT can have a dramatic impact on achieving specific
social and economic development goals as well as play a key role in
broader national development strategies. The real benefits lie not in
the provision of technology per se, but rather in its application to
create powerful social and economic networks by dramatically improving
communication and the exchange of information.
ICT can play a vital role in facilitating
education, healthcare, business opportunity, employment,
entertainment, schmoozing, information acquiring - affecting every
aspect of human life. Above all due to the ability to be any where at
any time or to put it this way that everywhere all-the-time at a
fraction of cost has brought revolution in the way today people use
ICT.
The discussion of how to bring the opportunities
offered by ICT to the people who need them most has been muddled by
arguments over exactly how to define the problem: is it about
insufficient access to PCs? training? local content? poverty? There
are many perspectives on the digital divide with different
connotations and focus. Some argue that computers, connections and
training will solve the problem, but there is disagreement about
whether they should be provided by government, non-governmental
organizations (NGOs) and the private sector, or if the market will
solve the physical access problem on its own. Others contend that
government action (or inaction) hinders the development and use of ICT,
and until policies are changed, the digital divide can not be solved.
Many see beyond the physical access problem and focus on lost
opportunity for people that are unable to effectively use ICT because
they do know how to use it or they do not understand how it can be
relevant to their lives. Underlying social issues like basic literacy,
poverty, and healthcare also loom large, and some question whether and
how technology can become part of the solution to these critical
problems.
The term "Digital Divide" refers to the gap in
access to information and communication. Ability to provide equal
access to ICT is largely depending on the availability of
communication facilities in order to participate in the global
information society. This will include main telephone lines, mobile
telephones, personal computers, email and internet facilities. This
divide is not only applicable for Information Technology, it generates
at every aspect of our daily life. Some times it seems same as the
division between Developed & Developing nations or Rich & Poor
communities. The term Digital Divide has become the front line issue
in the IT as the world economy and life depends on computer technology
& communication science. Every aspect of daily affairs is absolutely
depends on computer, but the have not groups of the society are
missing the facilities and developments of the IT revolution & falling
far behind the high tech advantages. This backwardness of community is
generating the Digital Divide gap in the society as shown in Figure A
as the disparity of digital divide exists in between the North
America, Scandinavia, Westren Europe and Emerging Markets.
In fact, the digital divide is a complex problem
that manifests itself in different ways in different countries. It
presents both practical and policy challenges. Moreover, it is
apparent that solutions which work in developed countries cannot
simply be transplanted to developing country environments: solutions
must be based on an understanding of local needs and conditions for
integrating technology into society in an effective, sustainable way
so that people can put technology to use to improve their lives: what
we call "real access" to technology.
DEFINING DIGITAL DIVIDE
There are five basic perspectives on what the
digital divide is and how to solve it, which focus on various elements
of ICTs and ICT use:
1.
The digital divide is a lack of physical connections and training -
computer hardware, network access and (in some arguments), training,
is required to bridge the digital divide government, NGO and private
initiatives should supply them;
2.
The digital divide is a lack of computers, access and training, but
the problem will solve itself in time - computer hardware and network
access are required, but the market and selective development projects
will solve this problem on its own by steadily lowering prices,
fostering an IT training sector, and extending infrastructure to
outlying regions
3.
The digital divide is a lack of computers, access and training,
exacerbated by ineffective government policy - government actions (or
inaction) hinder the development and use of computers and until these
policies are changed, the digital divide cannot be solved;
4.
The digital divide is a lost opportunity, with disadvantaged groups
being unable to effectively take advantage of ICTs to improve their
lives - what really matters is how the technology is used, and its
incredible potential to improve quality of life for disadvantaged
groups; effective use requires computers, connections, training,
locally relevant content, and real applications of the technology to
fit immediate needs.
5.
The digital divide is a reflection of the lack of basic literacy,
poverty, health and other social issues - computers are useful, but
nothing will enable a society to bridge the digital divide until basic
literacy, poverty, and healthcare issues are addressed.
DIGITAL DIVIDE REALITY
Another way to understand the perspectives on the
digital divide is to look at why people believe it exists and how they
believe it can be addressed:
1.The
digital divide comes from the normally slow diffusion of new
technologies - the digital divide is the natural and expected result
of wealthier people and countries experimenting with and adopting
technologies because they have disposable income. Such "divides" have
occurred with every major technology including car, radio, television,
and telephone. Over time, the divide closes as the technology becomes
less expensive and more tested.
2.The
digital divide occurs because people don't know how to use the
technology, or it is not made relevant to their lives - even when
people have access to information technologies such as the Internet,
they often do not have the training to use them, do not have relevant
and interesting content or they are blocked by cultural and political
mores against using it.
3.The
divide mirrors the existing landscape of technology infrastructure and
wealth distribution countries that do not have literacy and
electricity are simply unable to effectively adopt information
technology. Moreover, countries in extreme debt are unable to finance
technology investments. Countries that are slow to adopt precursors
and prerequisites for information technology face a playing field
sloped against them, such as African countries not adopting electronic
switching networks
4.
The digital divide results from the real difficulties in "rolling out"
the technology around the world - the rural-urban divide especially
(which occurs around the world) is caused in part by the inherent
difficulty of providing network access, let alone electricity, in
extremely rural regions.
5.
Government policies have failed to support, or even discouraged
information technology growth, exacerbating the digital divide - many
also point to weak or poor government policies and a woefully
inadequate response to the opportunities and demands of information
technology.
6.The
digital divide is a matter of personal choice - some people simply
don't want to use information technology and thus the "digital divide"
is partly an illusion. While income levels are a major factor
currently in the divide, these issues will fade over time as the
market continues to push down computer and access prices. Yet, a
divide may remain - because of individual family choices.
MEASURING DIGITAL DIVIDE
In addition to communications infrastructures,
important indicators appear to be computer availability — and
potentially the availability of alternative access through TVs or
mobile phones — and Internet access. The digital divide among
households appears to depend primarily on two variables, income and
education. Other variables, such as house hold size and type, age,
gender, racial and linguistic backgrounds and location also play an
important role. The differences in PC and Internet access by household
income are very large and increasing, but access in lower income
groups is rising. Largely through its effects on income, the higher
the level of education, the more likely individuals are to have access
to ICTs. Other important indicators concern differences in the
profiles of countries, individuals and businesses that use, and make
the most use of, the possibilities offered by the new information
technologies and the Internet.
Providing access to technology is critical, but it
must be about more than just physical access. Computers and
connections are insufficient if the technology is not used effectively
because it is not affordable; people do not understand how to put it
to use, or they are discouraged from using it; or the local economy
cannot sustain its use.
Internet usage numbers are most often cited to
describe the divide as in Figure B. The spread of Internet users among
the world's population is much more unequal than that of the use of
other ICT such as TV or telephones. The inequality of Internet usage
is even bigger than the spread of GDP between the world's rich and
poor countries, and larger than disparities in other technologies such
as televisions. Access to the Internet is gauged by the number of
"registered online computers" computers with valid IP addresses on the
Internet. The division between countries is evident here as well. By
far the most registered online computers are in the United States,
with other developed nations close behind. Basic access to computers
is usually measured against the total number of computers in a
country, or number per capita — both of which illustrate stark
divisions. For example, for the world, there were 70.6 PCs per 1,000
people, with 311.2 per 1,000 in developed countries, 7.5 / 10000 in
Sub-Saharan Africa, 2.9 / 1000 in South Asia.
Within countries, there are significant divisions
in the use of ICT along the lines of education, income, race, gender,
age, language, and disability. In highly developed countries, some
domestic divisions between income, education and ethnic groups are
decreasing for basic access to PCs and the Internet. The most ICT rich
groups, especially the wealthy and educated, have almost reached
saturation - the majority of people who want to have computers and
access to the Internet have it. A fundamental question that must be
addressed before one can state whether inequalities in ICT are growing
or closing: Is the inequality a lack of an existing technology, or is
it because of the relative gap between "haves" and "have-nots",
regardless of the particular technology? On the whole, current
technologies are diffusing across national, ethnic, gender, income and
age boundaries, but new technologies are causing new divisions
creating a difference in internet penetration and GNP per capita as
per Figure C.
Adoption of broadband (from fiber connections to
wireless broadband) access has followed the same pattern as that of
the computer - primarily among wealthy, white individuals and large
companies. Since the technology is newer (and more expensive), it
currently shows an even wider gap around the world. Internet enabled
phones have shown a similar pattern — though here Scandinavian
countries lead instead of the US. Another relevant technology is Voice
over IP - using the computer (and Internet) to replace telephone
calls, especially internationally. Technologies like WAP (wireless
application protocol) supporting internet and multimedia access over
wireless are fueling the penetration of internet related technologies
to a climax spreading across income, age, and gender groups. Figure D
clearly depicts that in near future wireless technologies shall play a
dominant role in the debate of digital divide. Beyond increasing
bandwidth, future lifestyles will be affected by applications of the
wireless 3G technology. Building on 2G success, 3G provides next
generation improvements in global roaming, seamless services worldwide
and personalization. 3G unleashes the power of the internet through
packet and circuit data up to 2 Mbit/s. Its application greatly
enhances mobile banking, stock trading, mobile cash, authentication
and payments for internet shopping, and payment systems.
Since many developing nations have telephone
monopolies, and restrict or ban VoIP since it could circumvent the
monopoly, this policy issue threatens to cause a continued divide. But
some have commented that VoIP may be outdated before it becomes widely
used. The early adopters and benefactors of ICT in developing
countries are usually large and foreign companies, and educated
middle-upper class workers from privileged socio-political groups in
the capital cities. According to the World Bank, 59% of women in South
Asia are illiterate, but only 35% of men are; a gender digital divide
should be expected, and attacked even more vigorously. What overall
effect does this process have on society? Since large and foreign
companies benefit first from ICT, they gain comparative advantage over
their rivals. ICT-enabled management and accounting processes
facilitates their mergers, acquisitions, and strategic alliances with
competitors, leading to increased size and consolidation of ICT-enabled
businesses. Some argue that this would increase the competitiveness of
these companies in the global market, since they can leverage wide
resources against similarly large international rivals. This would
benefit the original country by drawing in jobs and allowing companies
to invest in long term R&D in ICT. Thus a virtuous cycle is created
whereby the country enters the global market place and bridges the
digital divide at the same time. The economic boon in the country will
facilitate the slow diffusion of technology and training throughout
the population, thus bridging the internal digital divide as well.
DIGITAL OPPORTUNITY INITIATIVES: Bridging the
Gap through Digital Provide
Without the sheer scale and pace of Information and
Communications Technology (ICT) it would not be possible to connect
vast networks of individuals across geographic boundaries at
negligible marginal cost. This is why decisions about the use of ICT
will be critical in determining which road we go down, to wider
development or greater inequality. The old debate, about choosing
between ICT and other development imperatives, has shifted from one of
trade-offs to one of complementarily. The Digital Opportunity
Initiative (DOI) aims to provide some fresh answers for this new
reality.
The DOI aims to help mobilize, focus and coordinate
action by developing a strategic approach to harnessing the benefits
of ICT for sustainable economic and social development. DOI focus on
efforts to reduce the digital divide. Lessons learned to date about
the value of ICT for achieving development goals, and will offer an
analytical framework that how developing countries like Pakistan and
the international community can use as a guide for designing and
implementing a more strategic approach to the use of ICT for
development.
How are organizations, individuals, governments,
and businesses actually working to address international and domestic
digital divides? The approaches taken are about as varied as the
perspectives on the problem itself. There are literally tens of
thousands of self-identified "digital divide initiatives" in
existence, and many more that do not label themselves as such but work
toward similar goals. The following model is a definitive strategy to
reduce the digital divide through integrating all sectors to ICT.
The following common categories are applied to the
numerous initiatives that address the digital divide:
1.
Infrastructure providers
2.
Physical access providers
3.
Training programmes
4.
Telecentres
5.
School computer programmes and distance learning programmes
6.
Online information resources - relevant content
7.
E-government
8.
E-commerce
9. Healthcare
10. Agriculture
11.
Other applications of ICT
12.
Technology development
PAKISTAN'S DIGITAL PROVIDE
Pakistan's national policies have been consistently
focused on the development of a domestic ICT sector and market earlier
(1980-1990s) the focus was on the creation on a diversified industrial
sector and development of technical capabilities. Recently, the
emphasis has shifted to liberalization of economy and building up ICT
infrastructure - changing strategy to support domestic capacity from
protection to promotion.
With persistence of large fiscal and current
account deficits and the build up of public and foreign debt have been
major source of macroeconomic imbalances during 1990s in Pakistan.
Failures in enhancing expenditure requirements on one hand, and
stagnation in exports on the other exacerbated economic difficulties.
A number of economic measures are taken to control the helm of affairs
which are: Tax Reforms; Trade & Tariff Reforms; Deregulation &
Privatization; Fiscal Sector Reform; Good Governance Initiative;
Fiscal Transparency Initiatives; Poverty Alleviation Program are most
noticeable.
Since August 2000, the Government has announced an
integrated policy on Information Technology (IT), which has been a
welcome step towards modernization and globalization. The vision of
this IT policy is to harness the potential of ICT to country's
sustainable development and national capacity building. The policy
focuses on
i.
Human Resource Development
ii.
Infrastructure Development
iii.
Software Industry Development
iv.
Hardware Industry Development
v.
Wider access and use of Internet
vi.
IT Promotion and awareness
The Telegraph and Telephone (T&T) Department was
converted into Pakistan Telecommunication Corporation on 15th December
1990 by delegating the powers to the Board of Directors for better
functioning of the telecommunication system in the country.
Thereafter, on 1st January 1996, the said system was reorganized by
establishing Pakistan Telecommunication Authority (PTA), the National
Telecommunication Corporation (NTC) and Frequency Allocation Board and
Pakistan
Telecommunication Company Limited (PTCL).
Government is further committed to deregulate and liberalize
telecommunications industry through privatization of state-owned
monopoly i.e., Pakistan Telecommunications Company Limited (PTCL)
under ITU and WTO Agreements by 2002 opening up the telecom sector for
private sector and international competition.
In response to government's policy, the per capita
internet prevalence is growing in an exponentional manner. Since the
introduction of internet in 1996 its usage has grown at more than 50%
per annum and has progressed from a humble start of 10,000 users in
1998 to 1.3 million internet users in year 2000. Universal Internet
Access has reached 379 cities by PTCL and it is expected to exceed 400
cities by June 2001. A reduction from US$60,000 to US$6,000 per
month/2Mbs in internet bandwidth costs was initiated for software
companies, educational institutions and call centers.
Like many other Asian economies Pakistan has
focused on developing its export sector and increasing Foreign Direct
Investment (FDI) as means of generating employment and foreign
exchange. Due to the significant erosion of Pak Rupee value by
devaluation, huge foreign debt, influx of imports, ever increasing
demand for dollar and low foreign reserves ICT sector is identified as
the key contributor to lax these pressures. Government of Pakistan has
chalked out a pragmatic program to become an export-oriented economy.
A number of initiatives include encouraging local
in entrepreneurs to tap foreign markets are advised and guided by
SMEDA (Small and Medium Enterprise Development Authority) and EPB
(Export Promotion Bureau). EBP will be providing online export leads
to the potential exporters.
Addition to this business incubator is established
in Singapore and IT Marketing Offices will be opened up in USA. In a
recent IT Exhibition - IT Commerce Network Asia 2001 MOU's worth
US$300 million where signed between foreign companies and local
counterparts.
The Pakistan Software Export Board (PSEB) is an
organization which has been established by the Government of Pakistan
to ensure development and implementation of a national policy
framework for software and related services industry in Pakistan,
promotion of software exports, and match making between local and
foreign software companies. A special focus was on developing and
executing the "Software Technology Parks (STP)". The Software
Technology Parks (STPs) for Islamabad, Karachi and Lahore have been
conceived as one-stop-shop for all software houses which seek working
conditions conducive to creative inexhaustible bandwidth and power
supply, "high-IQ" (or not just intelligent) buildings, minimum
regulatory overheads, maximum flexibility in the choice and use of
space and minimal costs. The project companies which will build and
administer these STPs will ensure that all these facilities are
available with the barest minimum hassle to the software houses
themselves. Currently a number of renowned IT and software development
companies are housed in Software Technology Parks contributing a great
deal in the government vision to for exporting IT products and
services.
The following are some investment-policy measures
which the government has undertaken to ensure robust market
environment for ICT sector in the country:
•Software and Hardware Development has been
declared as industry and are placed within Hi-Tech Category, which
enjoys zero rate of custom duty on import of equipment and 90% of PME
cost as First Year Allowance (FYA).
•Income tax exemption is available on income from export of software
•State Bank of Pakistan has allowed opening of Internet Merchant
Account within Pakistan to promote E-commerce.
•IT ordinance 2000 is under advance stage of preparation to give legal
protection/recognition to digital signature, electronic documentation
and Intellectual Property Rights (IPRs).
•SECP has prepared draft set of rules for Venture Capital Companies &
Funds - and are in the process of fine-tuning.
•Pak-Libya Holding has already successfully conducted a nation-wide IT
Talent Hunt Program - to have a ready base for Pakistan Venture
Capital
•Looking forward to $ 1 billion FDI up to 2005-06 in IT & Telecom
Sector ($ 670 million committed
With all such investment incentives to ICT sector
the government aims to see the IT sector as a major contributor to the
national economic growth of the country, with a significant
contribution to software exports.
A critical element of Pakistan's approach has been
focus on education. Pakistan has developed high-level of awareness of
quality IT education which highlights a great deal that education
institutions, both private and public, can produce appropriately
skilled knowledge workers and professionals in conformity with the
current needs of ICT age. Given the limited number of engineers and
technology workers, both the government and private sector have
earmarked on an aggressive campaign to transform the knowledge base of
the country in alignment with the requirements of high-tech sector.
The National University of Science & Technology (NUST) and COMSATS
Institute of Information Technology ((CIIT), and Foundation for
Advancement of Science & Technology (FAST) are some leading education
providers in ICT. Besides a large number of private and public
universities are providing bachelors and masters degrees in
Information Technology Management, Computer Sciences and Multimedia.
Above all, government has launched a Virtual University for Distance
Learning and an Education Portal integrating all the related
information about all the education institutions in the country.
With the government's commitment to encourage ICT
growth and investment a number of private enterprises have shown their
expression of interest. Align Tech has established the first call
center (100 agents) in Lahore alone. Cisco, Lockheed Martin, Microsoft
and Oracle are ready to open regional offices in Pakistan. Oracle will
be investing US$20 million in training in Sindh, whereas, Spura Group
of Malaysia is going to invest US$86 million for setting up 1,000
Kiosks-ATMs based networks for utility bills collection. Akhtar Group
of UK with the government is taking up a Telehousing Project of US$10
million. Huawei Technologies and Motorla will be investing US$2.5
million in IT Center and US$150 million in expanding cellular network,
respectively.
Besides, venture capital fund rules have been
approved and VC funds are granted seven (7) years tax holiday,
whereas, five (5) major VC funds are launched in private sector. A
US$50 million VC fund has been floated. Securities and Exchange
Commission (SECP) rules for IPO (Initial Public Offering) are set in
place.
In a nutshell Pakistan is in a go-go for
information technology revolution!
STATE OF E-READINESS
In any given country, different sectors of the
population are putting information technology to productive use and
the categories of race, gender, income and so forth do not capture the
full complexity of this unequal use. Nor do these categories really
identify what barriers exist in different communities and countries
against people using information technology more effectively. On the
national level - any given country has a number of factors in place to
benefit from information technology and other areas that aren't using
ICT - the divide is not simply developed versus developing world, nor
are all factors missing in one country, and present in another. A
deeper understanding of ICT use can be gained from the wealth of
"e-readiness" assessments around the world. The e-readiness
assessments seek to gauge how ready a country is to participate in the
information economy or information society. "E-Readiness" measures the
capacity of nations to participate in the digital economy. E-Readiness
is the source of national economic growth in the networked century and
the prerequisite for successful e-business. Neither countries nor
companies can prosper unless the basic building blocks are in place.
"E-readiness" is shorthand for the extent to which
a country's business environment is conducive to Internet-based
commercial opportunities. It is a concept that spans a wide range of
factors, from the sophistication of the telecoms infrastructure to the
security of credit-card transactions and the literacy of the
population.
|
THE EIU
E-BUSINESS-READINESS RANKINGS |
|
Rank |
Countries |
Business environment
ranking, 2000-04* |
Connectivity rating+ |
E-business-
readiness ranking# |
|
1 |
US |
8.69 |
9 |
8.8 |
|
2 |
Sweden |
8.26 |
9 |
8.6 |
|
3 |
Finland |
8.21 |
9 |
8.6 |
|
4 |
Norway |
8.00 |
9 |
8.5 |
|
5 |
Netherlands |
8.84 |
8 |
8.4 |
|
6 |
UK |
8.80 |
8 |
8.4 |
|
7 |
Canada |
8.66 |
8 |
8.3 |
|
8 |
Singapore |
8.55 |
8 |
8.3 |
|
9 |
Hong Kong |
8.52 |
8 |
8.3 |
|
10 |
Switzerland |
8.42 |
8 |
8.2 |
|
11 |
Ireland |
8.42 |
8 |
8.2 |
|
12 |
Denmark |
8.41 |
8 |
8.2 |
|
13 |
Germany |
8.32 |
8 |
8.2 |
|
14 |
France |
8.17 |
8 |
8.1 |
|
15 |
Belgium |
8.17 |
8 |
8.1 |
|
16 |
Australia |
8.14 |
8 |
8.1 |
|
17 |
New Zealand |
8.10 |
8 |
8.1 |
|
18 |
Austria |
7.96 |
8 |
8.0 |
|
19 |
Italy |
7.68 |
8 |
7.8 |
|
20 |
Israel |
7.61 |
8 |
7.8 |
|
21 |
Japan |
7.43 |
8 |
7.7 |
|
22 |
Spain |
8.01 |
7 |
7.5 |
|
23 |
Chile |
7.85 |
7 |
7.4 |
|
24 |
South Korea |
7.30 |
7 |
7.2 |
|
25 |
Portugal |
7.59 |
6 |
6.8 |
|
26 |
Argentina |
7.22 |
6 |
6.6 |
|
27 |
Taiwan |
8.13 |
5 |
6.6 |
|
28 |
Thailand |
7.27 |
5 |
6.1 |
|
29 |
Poland |
7.15 |
5 |
6.1 |
|
30 |
Hungary |
7.09 |
5 |
6.0 |
|
31 |
Czech Republic |
7.07 |
5 |
6.0 |
|
32 |
Malaysia |
6.91 |
5 |
6.0 |
|
33 |
Greece |
6.90 |
5 |
6.0 |
|
34 |
Mexico |
6.78 |
5 |
5.9 |
|
35 |
Brazil |
6.37 |
5 |
5.7 |
|
36 |
South Africa |
6.25 |
5 |
5.6 |
|
37 |
Slovakia |
6.19 |
5 |
5.6 |
|
38 |
Indonesia |
6.16 |
5 |
5.6 |
|
39 |
Turkey |
6.06 |
5 |
5.5 |
|
40 |
Saudi Arabia |
6.02 |
5 |
5.5 |
|
41 |
Bulgaria |
5.61 |
5 |
5.3 |
|
42 |
Venezuela |
5.51 |
5 |
5.3 |
|
43 |
Romania |
5.45 |
5 |
5.2 |
|
44 |
Russia |
5.16 |
5 |
5.1 |
|
45 |
Ukraine |
4.79 |
5 |
4.9 |
|
46 |
Philippines |
6.72 |
3 |
4.9 |
|
47 |
Peru |
6.36 |
3 |
4.7 |
|
48 |
Colombia |
6.13 |
3 |
4.6 |
|
49 |
Egypt |
6.10 |
3 |
4.6 |
|
50 |
India |
5.97 |
3 |
4.5 |
|
51 |
China |
5.88 |
3 |
4.4 |
|
52 |
Sri Lanka |
5.87 |
3 |
4.4 |
|
53 |
Ecuador |
5.32 |
3 |
4.2 |
|
54 |
Vietnam |
5.30 |
3 |
4.2 |
|
55 |
Pakistan |
4.94 |
3 |
4.0 |
|
56 |
Kazakhstan |
5.07 |
2 |
3.5 |
|
57 |
Algeria |
4.90 |
2 |
3.5 |
|
58 |
Iran |
3.60 |
3 |
3.3 |
|
59 |
Nigeria |
4.54 |
2 |
3.3 |
|
60 |
Iraq |
2.07 |
2 |
2.0 |
|
*
From EIU Country Forecast, score out of 10: more than 8 = very
good; 6.5-8 = good; 5.5-6.4 = moderate; 5-5.4 = poor; less than
5 = very poor. |
THE E-READINESS ATTRIBUTES
No nation will become "E-Ready" overnight; and
nations that are today's e-leaders are not guaranteed to be
tomorrow's. However, due to the nature of the new economy, those
nations and businesses that can adapt quickly to new technology, seize
new opportunities, and take strategic risks will prosper. Less
prepared economies have an opportunity to learn from the global
community and leap to higher levels of preparedness. There is no
one-size-fits all prescription for e-Readiness. No checklist of
actions will guarantee that a nation will be a global e-player. There
are, however, common trends, policies, and procedures that have proven
to help quickly propel some nations toward e-Readiness such as given
below:
Connectivity - Are networks easy and affordable to
access and to use?
Availability of wire line and wireless
communication services, community access centers (free and paid), and
networked computers in businesses, schools, and homes.
Affordability and reliability of network access,
including the cost of service, downtime, and the prevalence of sharing
access among individuals.
|