Dr' Hans Armfelt Hansell

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ICTLeap-frogging or Sustained Economic
Development?

• Dr. Hans Armfelt Hansell
• Acting Senior Adviser, UN/ECE

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Digital divide

• Impossible to close the gap through investments
  from national budgets
• Increased resources to be committed to build
  information society.
• The 2005 WSIS Summit in Tunis will deal with how
  this divide can be bridged.

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Digital divide

• However, -main concern is not the ICT in itself,
  which is to be considered as a tool but
  economic development and poverty reduction.

• To reap the full benefits of ICT it needs to be
  incorporated in strategies and policies.

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Conclusions

• Advances to bridge the digital divide must be
  made on two fronts.
• First, to assist the developing and transitional
  economies to leap-frog
• Second, to incorporate ICT into economic and
  societal infrastructure providing the
  prerequisites for economic growth.

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How to generate enough resources?
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Between a rock and a hard place

• International competition
• Keeping up with tech. Development
• Exports from low cost countries

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Lisbon strategy for growth and employment

• Europe has no option but radically to improve
  its knowledge economy and underlying economic
  performance

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National ICT strategies

• National ICT plans should be comprehensive. 
• but include strategies for economic growth

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Catching up

• Creating an area of economic dynamism  
• Replacing ageing technology will jump a
  generation

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Positive Economic Growth in Central Asia
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There is no single magic bullet..
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• Key areas, which could provide leverage for
  economic growth
• - Accelerating productivity
• Trade liberalisation and trade facilitation
• Web related developments
• Trade in intermediate services
• Role of institutions
• Knowledge based economy
• Security  

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ICT for growth and development

• ICT increases productivity
•  
•         Size of the ICT producing sector
•         Degree of penetration
•         Extent of uptake

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and development
ICT for growth

• Find a niche sector/industry
• - Re-engineering business processes using ICT
• - Link up with int. supply chains using ICT
• - Make efforts to diversify the economy
  manufacturing industry benefiting from ICT
• Awareness education - Institutional changes

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ICT for growth and development

• Trade Liberalisation and Trade Facilitation
•  International supply chains
• JIT manufacturing

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ICT for growth and development

•        
• Outsourcing
•           Application service provider
•           Virtual organisations

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ICT for growth and development

Corporate Customer
Merchandise Reception
Purchasing Office
Payment Centre
Delivery
Virtual Enterprise
Suppliers Bank
Automated Payment Clearing House
Supplier
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ICT for growth and development

• ICT and trade in intermediate services
• e.g. health, education, financial services
  and entertainment 

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ICT for growth and development

• Finding enhances the quality and lowers the
  price of consumer services
• Constraint Infrastructure limitations can
  increase cost of communication

- Conclusion it is the small trading partner
that gains the most!
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ICT for growth and development

• Role of institutions
• E-government
• Ease of doing business

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Ease of doing business is associated with more
growth
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ICT for growth and development

• Ease of doing business
• Starting business electronic application
• Company register - electronic
• Land administration electronic registry
• Credit information insolvency
• Tax returns
• Customs procedures

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Simpler business regulation, more human
development
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ICT for growth and development

• Knowledge based economy
• World markets are increasingly integrated .
• Creating new opportunities
• Knowledge and innovation are emerging as key
  assets
• International, institutional and business
  linkages are crucial for knowledge economy policy
  

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ICT for growth and development

• In a knowledge based economy
• - 40 of labour productivity growth from RD
• - in future 30 of population work directly in
  production of knowledge.

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n Supply Chains
Security Trade has an interest to provide digital
information Gov have a demand in digital
information
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UN/CEFACT Executive Forum20 22 June 2005
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Thank You!