The Information Society in Latin America and the Caribbean: Development of Technology and Technologies for Development Jos

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The Information Societyin Latin America and the
CaribbeanDevelopment of Technologyand
Technologies for DevelopmentJosé Luis
MachineaExecutive Secretary, ECLAC
Second Ministerial Conference on the Information
Society in Latin America and the Caribbean -- San
Salvador, 6-8 February 2008
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Issues

• I. Digital paradigm diffusion and impact
• II. ICT development hardware, software,
  telecommunications
• III. ICTs for development applications and
  content
• IV. Policies for development with ICTs

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Paradigm and digital future

• ICTs, general-purpose technologies
• New technological and production paradigm based
  on the digitization of operations
• Acceleration of the pace of change
• As much technological progress will be made
  between now and 2010 as has been made since the
  microprocessor was invented in 1973
• Technological development exogenous to the region

The speed of technical progress is constantly
posing new challenges
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Penetration of ICTs in 2002 and 2006(Percentages)
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Penetration of ICTs in 2002 and 2006(Percentages)
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COMMUNICATION CAPACITY (fixed and mobile
telephony and Internet)(Megabytes per second per
capita)
Diffusion of the digital paradigm The digital
divide is a moving target!
Source M. Hilbert, P. López and C. Vázquez, "ICT
innovation avenues and the amount of digital
information deepening comprehension of the
digital paradigm", Santiago, Chile, ECLAC, 2007,
unpublished.
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Diffusion of the digital paradigm
Pooled access to advanced services
of penetration in 2006
Source Observatory for the Information Society
in Latin America and the Caribbean (OSILAC), on
the basis of International Telecommunication
Union (ITU), World International Indicators
Database, 2007.
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The domestic divide

• Multiple determinants (gender, ethnic origin,
  geographical location, sex), but two fundamental
  factors income and level of education.
• Determinants are closely related but have
  individual effects.

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Domestic demand Income and education
Source OSILAC, ECLAC, 2008.
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Domestic divide Income and education
Source OSILAC, ECLAC, 2008.
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Domestic divide Income and education
Source OSILAC, ECLAC, 2008.
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Domestic divide Income and education
Source OSILAC, ECLAC, 2008.
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Domestic divide Income and education
more income, more connectivity
Source OSILAC, ECLAC, 2008.
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Domestic divide Income and education
more income, more connectivity
Source OSILAC, ECLAC, 2008.
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Domestic divide Income and education
more income, more connectivity
Source OSILAC, CEPAL, 2008.
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Domestic divide Income and education
more income, more connectivity
Source OSILAC, ECLAC, 2008.
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Domestic divide Income and education
same income but with more education gt
more connectivity
Source OSILAC, CEPAL, 2008.
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Domestic divide Income and education
Source OSILAC, ECLAC, 2008.
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Economic impact

• ICTs positive impacts on economic growth and
  productivity
• Account for between 10 and 14 of the regions
  growth in 1995-2004.
• Major impacts in developed countries
• Complementarities with systems of production,
  innovation, education and institutional
  development.

Expenditure on ICTs and complementary factors
must be balanced skills/training are essential
for their efficient adoption.
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ICT development

• Hardware tradable goods widely available on the
  international market. Little local capacity in
  LAC.
• Software and related services generally tradable
  activities, but heavily dependent on local
  features. Capacity in LAC is just beginning to be
  developed.
• Telecommunications non-tradable services.
  Promote competition, but regulation is essential.

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ICT hardware

• Production is concentrated in the regions larger
  countries (although with some exceptions) and is
  based on one of two different models
• Production for the domestic market (Brazil)
• Assembly of imported components in export
  platforms (Mexico and Central America).
• Long learning curve and high entry barriers, as
  well as less and less hardware product innovation.

To take advantage of its impacts for the benefit
of society as a whole, it is important to use
leading-edge hardware. Local production, where
possible, is a plus but it is difficult to keep
up with the pace of progress at the global level.
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Software and related services

• Two main types of agents subsidiaries of
  transnational corporations and local SMEs.
• Production is geared towards demand for
  standardized export products and related services
  for the adaptation of ICTs to local requirements.
  Both have potential, but the second is crucial
  for efficient domestic application.
• Limited supply of skilled workers 340,000
  technicians (0.19 of total employment, and many
  of these technicians are working for exporters)
  are not enough to strengthen the information
  society.

A basic minimum of domestic capacity is essential
because of the influence that local
characteristics exert on the efficiency of
software use.
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The telecommunications market

• Two major operators in the region, but national
  competition is on the rise, especially in new
  services

Market share, by segments, 2007(Percentages)

• Who is investing in the modernization and
  expansion of basic infrastructure (Next
  Generation Networking NGN)?

Source ECLAC, 2008.
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Telecom regulation

• Technological convergence
• Market concentration in infrastructure and
  competition in service delivery.
• Market reorganization (e.g., new competition
  between telephony and cable operators and between
  telecommunications and broadcasting)
• Redefinition of jurisdictions and functions of
  regulator(s)
• Strengthening regulatory agencies
  independence and technical
  capacity

• Narrowing the divide (efficiency and social
  objectives)
• Gaps in the market Regulation to promote
  efficient allocation
• Gaps in access Cross or direct subsidies?
• Alignment of regulatory policies with
  universalization
• Setting sectoral priorities
• Setting universalization mechanisms into
  motion

The importance of investment
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ICTs for development applications and content

• Education, governance, trade and business,
  health, and disaster management
• Benefits
• Service efficiency
• Real time, transparency, interactivity,
  single-channel multiple communications.
• Service quality
• More flexible processes and service mix.
• Service coverage
• Do away with geographic and time-zone barriers.
• Potential problems
• Access, use capacities, security and confidence,
  privacy

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ICTs for development challenges

• Ownership Professionals in all sectors should
  take ownership of ICTs so that they can
  incorporate them properly into their
  organizational processes and priorities.
• Digitization Progress in front-office (Web page)
  functions, but unmet (and bigger) challenges in
  back-office (database interconnection)
  environments, including the complexities of
  interoperability (common standards).
• Sharing of experiences Progress in governance,
  trade and education. Health services and
  disaster management have lagged behind in terms
  of ICT use.

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National strategies

• Uneven progress
• Countries developing a second-generation agenda
• Countries still in the process of developing a
  first-generation agenda
• Issues on national agendas
• Most popular issues
• Access, infrastructure and e-government
• Most neglected issues
• Health, administration of justice and disaster
  management

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National strategies
Countries with few ICT projects
gt Coordination of disperse initiatives leads to
better results
Source Digital Review of Latin America and the
Caribbean (2008), Santiago, Chile, Economic
Commission for Latin America and the Caribbean
(ECLAC)/United Nations Development Programme
(UNDP)/International Development Research Centre
(IDRC)/ Regional Dialogue on the Information
Society (DIRSI), unpublished.
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National strategies
Countries with large number of ICT projects
Source Digital Review of Latin America and the
Caribbean (2008), Santiago, Chile, Economic
Commission for Latin America and the Caribbean
(ECLAC)/United Nations Development Programme
(UNDP)/International Development Research Centre
(IDRC)/ Regional Dialogue on the Information
Society (DIRSI), unpublished.
Fuente CEPAL, OSILAC, PNUD, DIRSI, ICA-IDRC,
Digital Review, 2008.
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National strategies
Countries with second-generation national agendas
Source Digital Review of Latin America and the
Caribbean (2008), Santiago, Chile, Economic
Commission for Latin America and the Caribbean
(ECLAC)/United Nations Development Programme
(UNDP)/International Development Research Centre
(IDRC)/ Regional Dialogue on the Information
Society (DIRSI), unpublished.
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Lessons of eLAC2007 towards eLAC2010

• Results
• Progress has been made towards 15 of the 27 goals
  being monitored
• Most progress development of access and
  skill-building. Least progress development of
  content and applications.
• Policy lessons
• (1) Balance the development of access, skills and
  applications
• (2) Coordinate action using a public-private
  meta-platform
• (3) Monitor progress and identify best practices
  to facilitate the exchange of experiences
• (4) Quantifiable goals Define accurate
  indicators
• (5) Qualitative goals Set up action-oriented
  mechanisms, to be defined and monitored in
  conjunction with contributing partners (see annex
  2 of draft eLAC 2010)

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Recommendations

• (1) Build capacities and complementarities to
  make the potential impact of ICTs a reality.
• (2) Generate a basic minimum of domestic capacity
  for the development of software and related
  services.
• (3) Strike a balance in ICT regulation to support
  efficiency, universalization and investment.
• (4) Coordinate the countries budgets and their
  numerous initiatives.
• (5) Take advantage of the regions heterogeneity
  to enhance intrarregional exchange and
  cooperation.
• (6) Motivate ICT users to take ownership of
  policy leadership.
• (7) Strengthen institutions in charge of
  implementing ICT policies and regulation and the
  tools available to them.

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Thank you for your attention
SocInfo_at_cepal.org

• http//www.CEPAL.org/SocInfo