Information Technology: Propelling Economic Growth

1
Information TechnologyPropelling Economic Growth

• By
• U Thein Oo
• Patron, Myanmar Computer Federation
• Chairman, Myanmar ICT Development Cooperation
• Chairman, Steering Committee for Yangon
  Mandalay Computer Universities (CoE)

2
MESSAGE 1

• It is widely accepted (also in Myanmar) that ICT
  is at the centre of an economic and social
  transformation.
• Advances in ICTs have dramatically changed the
  World economy over the last few decades.
• The fact that ICT can propelled economic
  development is proven.
• The intrinsic value of ICT lies not in its ease
  for communications and information but rather as
  an enabler for growth and development. ICT is
  considered as a powerful tool for economic growth
  and poverty eradication.

3
IDI and GNI Per Capital
ICT Development is a major factor for well being
Source ITU
4
ICT Sector contribution to GDP
ICT Sector contribution to GDP, 2005

• ICT has significant impact to socio economic
  performance of the country
• This trend also has positive impact to the
  economic growth
• ICT sector contribution to GDP in Korea was 17.2
  in 2007

5
MESSAGE 2

• Myanmar had plan but no implementation
• Myanmar leaders, business communities and even
  general public recognize that ICT is a key
  enabler for socio-economic development.
• There are efforts in preparing ICT development
  plans.
• 2001-2005 Master plan
• 2006-2010 Master plan and Action plan
• 2011-2015 Follow up plan
• But there is still not much concrete
  implementation efforts for ICT development.

6
Framework ICT for Development
7
Vision 2011-2015 ICT Master Plan
8
Focused Areas
9
Action Plan
10
Action Plan (continued)
11
MESSAGE 3

• Just developing and talking about vision,
  mission and reform and not putting concrete
  efforts leave Myanmar at the bottom of IDI
  ranking and consequently economic development.

12
IDI Index 2010 and 2011
Economy Rank 2011 Rank 2010 IDI 2011 IDI 2010
Korea 1 1 8.56 8.45
Singapore 12 10 7.66 7.47
Brunei Darussalam 57 52 4.95 4.85
Malaysia 58 57 4.82 4.63
Viet Nam 81 86 3.68 3.41
Thailand 92 89 3.41 3.29
Philippines 94 94 3.19 3.04
Indonesia 95 97 3.19 3.01
Lao P.D.R 120 120 1.99 1.84
Cambodia 121 119 1.96 1.88
Myanmar 131 129 1.67 1.65
Source ITU
13
IDI Access Sub-Index 2010 and 2011
Economy Rank 2011 IDI 2011 Rank 2010 IDI 2010
Hong Kong 1 9.21 1 9.09
Singapore 8 8.38 12 8.12
Brunei Darussalam 44 6.46 41 6.33
Malaysia 54 5.85 51 5.66
Viet Nam 85 4 84 3.81
Thailand 91 3.78 89 3.6
Philippines 99 3.37 98 3.28
Indonesia 101 3.32 105 3.09
Cambodia 113 2.53 111 2.43
Lao P.D.R 120 2.45 124 2.18
Myanmar 149 1.52 148 1.49
Eritrea 155 0.85 155 0.85
Myanmar teledensity will reach 50 by end of 2015
(MOST). It is a challenging job. If fulfilled,
Myanmars ranking may go up.
Source ITU
14
ICT Access Key Indicator in Myanmar
Source MOST
15
ICT Skill Sub-Index 2010 and 2011
Economy Rank 2011 IDI 2011 Rank 20010 IDI 2010
Korea (Rep.) 1 9.86 1 9.86
Thailand 62 7.34 64 7.22
Singapore 71 7.08 71 7.08
Brunei Darussalam 72 7.08 72 7.08
Philippines 77 6.96 78 6.96
Malaysia 90 6.69 90 6.69
Indonesia 100 6.41 100 6.41
Viet Nam 101 6.4 101 6.4
Myanmar 111 5.24 111 5.24
Cambodia 120 4.38 120 4.38
Lao PDR 121 4.35 121 4.35
Niger 155 1.45 155 1.45
Myanmars ICT Skill Index is not so bad. We may
be able to improve considerably if we give
priority to e-Education and ICT HRD. Skill may be
deciding factor in the future.
Source ITU
16
ICT Use Sub-Index 2010 and 2011
Economy Rank 2011 IDI 2011 Rank 2010 IDI 2010
Luxembourg 1 8.17 1 8.04
Singapore 6 7.24 6 7.02
Brunei Darussalam 56 2.85 48 2.57
Malaysia 62 2.38 56 2.25
Viet Nam 76 2.01 79 1.52
Thailand 92 1.4 93 1.04
Philippines 98 1.18 94 1.01
Indonesia 100 1.09 95 1
Lao P.D.R 125 0.36 129 0.26
Cambodia 135 0.19 143 0.08
Myanmar 155 0.04 155 0.01
We may still need to increase awareness that ICT
is key for development and systematic efforts are
needed.
Source ITU
17
IMF Estimates 2011 ASEAN GDP (nominal)
Country GDP(USD Millions) GDP (PPP)(USD Millions)
1 Indonesia 845,680 1,124,000
2 Thailand 345,649 616,783
3 Malaysia 278,680 447,279
4 Singapore 259,849 314,911
5 Philippines 213,129 390,408
6 Vietnam 122,722 299,985
7 Myanmar 51,925 82,679
8 Brunei 15,333 20,969
9 Cambodia 12,861 33,463
10 Laos 7,891 17,433
Source IMF
18
IMF Estimates 2011 ASEAN GDP (per capital)
Country GDP per capital(USD)
1 Singapore 60,500
2 Brunei 50,000
3 Malaysia 15,800
4 Thailand 9,500
5 Indonesia 4,700
6 Philippines 4,100
7 Vietnam 3,400
8 Laos 2,700
9 Cambodia 2,200
10 Myanmar 1,300
Source IMF
19
MESSAGE 4

• Myanmar is really changing
• ICT Developmentin Myanmar is at the early stage
• There are many opportunities for cooperation with
  countries like United States

20
Opportunities in Myanmar
21
Cooperation for mutual benefits

• Technical assistance
• Technical Transfer
• Financial Assistant
• Consultation
• Outsourcing
• Investment

Myanmar Problems Weakness
Investors Advantage

• Weak Infrastructure
• ICT HRD quality
• Awareness
• Cyber Law
• Technological know-how
• Job Creation
• Entering international Market
• Financial resources

• Cost Saving
• Extension of Working Hours
• Overcome Manpower shortage
• Investment Opportunities
• New Market

• Outsource Human Resource
• Link to ASEAN
• Globalization

Advantages

• Technology Transfer
• Know-How and Experiences
• ICT use
• Job Creation
• High Income
• Growth in ICT industry
• Increase Competitiveness of Myanmar

22
Involvement in ICT HRD in Myanmar?
Inclusive Social Economic Development Poverty
Reduction
Productivity
Quality Products
Good Service
Necessary Outcome
Manufacturing Trade
Finance Service
Life Stock Fisheries
Forestry
Mining Oil/GAS
Agriculture
Potential Sectors
Capital Investment
Electricity
Telecom Infra
Logistic
HRD
Legal Framework
Enabling Environment
Inclusiveness
Fair Competition
Transparency
Clean Governance
Good Governance
Human Rights
Basic Elements

• Assistance in HRD Projects
• Establishment of IT educational Institutes
• Internship programs
• Technical transfer

23
Investment in ICT Infrastructure development?
Inclusive Social Economic Development Poverty
Reduction
Productivity
Quality Products
Good Service
Necessary Outcome
Manufacturing Trade
Finance Service
Life Stock Fisheries
Forestry
Mining Oil/GAS
Agriculture
Potential Sectors
Capital Investment
Electricity
Telecom Infra
Logistic
HRD
Legal Framework
Enabling Environment
Inclusiveness
Fair Competition
Transparency
Clean Governance
Good Governance
Human Rights
Basic Elements

• Assistance in Infrastructure Building
• Any Companies should find opportunities to invest
  in Infrastructure Projects.
• Technological assistance and transfer.

24
Capital Investment in ICT Sector?
Inclusive Social Economic Development Poverty
Reduction
Productivity
Quality Products
Good Service
Necessary Outcome
Manufacturing Trade
Finance Service
Life Stock Fisheries
Forestry
Mining Oil/GAS
Agriculture
Potential Sectors
Capital Investment
Electricity
Telecom Infra
Logistic
HRD
Legal Framework
Enabling Environment
Inclusiveness
Fair Competition
Transparency
Clean Governance
Good Governance
Human Rights
Basic Elements

• Direct Investment
• Creation of Investment Funds for Investment in
  ICT sector in Myanmar
• Form JV with Myanmar Company

25
Involvement in development of economic sectors?
Inclusive Social Economic Development Poverty
Reduction
Productivity
Quality Products
Good Service
Necessary Outcome
Manufacturing Trade
Finance Service
Life Stock Fisheries
Forestry
Mining Oil/GAS
Agriculture
Potential Sectors
Capital Investment
Electricity
Telecom Infra
Logistic
HRD
Legal Framework
Enabling Environment
Inclusiveness
Fair Competition
Transparency
Clean Governance
Good Governance
Human Rights
Basic Elements

• Find opportunities in interested Sectors and
  conduct feasibility studies quickly
• Find good business partners and build good
  relationship in interested Sectors quickly

26
Conclusion

• We need to recognize that ICT4D is a program
  aimed at bridging the digital-divide and
  bolstering economic development by ensuring equal
  access to up-to-date Information and
  Communication Technologies.
• Myanmar is really changing and reversal is
  impossible
• Development in Myanmar presents enormous
  Investment Opportunities in IT Sector. However,
  Investment will only be fruitful only with
  assistance and technology transfer contributing
  to capacity building.
• Government commitment and involvement in ICT4D is
  very important at the initial stage where private
  sector cooperation is insufficient. There must be
  cooperation and coordination between the two
  governments.
• Helping Myanmar in development will be mutually
  beneficial to America. We can become political,
  social and economic partners.

27
Thank You!