The Global Information Technology Report 20052006

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The Global Information Technology Report
2005-2006
Latin American Performance in an International
Perspective

• Augusto Lopez-ClarosChief Economist and
  DirectorGlobal Competitiveness Network
• World Economic Forum
• Chile
• April 2006

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Outline

• The Global Competitiveness Network
• The Global Information Technology Report
• The Networked Readiness Index and 2005-2006
  results
• A closer look at the performance of Latin America

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Part I.The Global Competitiveness Network

• Flagship products
• Global Competitiveness Report, published
  annually
• Regional and sector-specific reports, focused on
  Africa, Latin America, the Arab World, the EU
• The Global Information and Technology Report
• Launched in 1979 covering 16 countries
• Launched in September 2005, the 26th edition of
  the Report covers 117 countries

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I. The Global Competitiveness NetworkGeographic
coverage
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I. The Global Competitiveness NetworkWhat are we
trying to achieve?

• Evolution of Real GDP per capita, 1960-2000 (1960
  100)

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I. The Global Competitiveness NetworkWhat are we
trying to achieve?

• We would like to cast some light on the factors
  that help explain these differences and their
  relative importance.
• Why is it that Argentina's and Koreas GDP per
  capita have diverged to such an extent in the
  last 4 decades?
• What variables are crucial to enhancing the
  capacity of an economy to achieve sustained
  growth over the medium term, controlling for the
  current level of development ?
• The Global Competitiveness Index (GCI) attempts
  to identify several key factors which play a
  crucial role in safeguarding the health of a
  nations economy and its ability to grow on a
  sustained basis.

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Part II.The Global Information Technology Report

• Besides the Global Competitiveness Report, the
  World Economic Forum produces regional and
  sector-specific reports, among which the Global
  Information Technology Report (GITR) series

2003-2004
2004-2005
2005-2006
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II. The Global Information Technology Report

• Launched in 2001, at first, in collaboration with
  the Information Technologies Group of the Center
  for International Development at Harvard
  University and, from 2002, with INSEAD
• Taking into account the crucial importance of
  information and communication technologies (ICT)
  for countries development and growth, the GITR
  is a powerful tool for business leaders and
  policy makers in understanding the enabling
  factors of ICT advancement
• The Networked Readiness Index (NRI) measures the
  propensity for countries to exploit the
  opportunities offered by ICT and establishes a
  broad international framework mapping out the
  enabling factors of such capacity

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II. The Global Information Technology Report

• Both hard data (publicly available information)
  and survey data (from the World Economic Forums
  Executive Opinion Survey) are used in calculating
  indices
• Use most recent available

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II. The Global Information Technology ReportWhy
is the GITR important?

• Need to move beyond anecdotes
• Comprehensive scope
• Longitudinal study
• Identify trends, best practices
• ICT is critical for development and
  competitiveness
• Guidance for policy decisions

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Part III.The Networked Readiness IndexNetworked
Readiness Framework
Environment
Individual
Individual
Government
Business
Government
Business
Usage
Readiness
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III. The Networked Readiness IndexNetworked
Readiness Framework
Networked Readiness Index (NRI)
Individual Usage
Individual Readiness
Individual Environment
Business Usage
Business Readiness
Political/Regulatory Environment
Government Readiness
Government Usage
Infrastructure Environment
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III. The Networked Readiness Index Examples of
variables used in the calculation

• Environment (20)
• Ease to start a new business
• Administrative burden
• Availability of scientists and engineers
• Sophistication of financial markets
• Effectiveness of Judiciary
• Telephone mainlines
• Secure Internet servers
• Internet hosts
• University/industry collaboration

• Readiness (16)
• Quality of math and science education
• Internet access in schools
• Residential telephone connection charges
• Quality of business schools
• Business telephone connection charges
• Government procurement of ICT

• Usage (15)
• Cellular mobile subscribers
• Telephone subscribers
• Broadband/DSL Internet subscribers
• Government online services
• Firm-level technology absorption
• Internet users

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III. Unveiling the 2005-2006 resultsTop 20
performers(ranks out of 115 countries)
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III. Unveiling the 2005-2006 resultsTop 10
evolution (ranks out of 115 countries)
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III. Unveiling the 2005-2006 resultsSelected
variables(ranks out of 115 countries)
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III. Unveiling the 2005-2006 results Asia and
the Pacific(ranks out of 115 countries)
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III. Unveiling the 2005-2006 results
Europe(ranks out of 115 countries)
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III. Unveiling the 2005-2006 results Sub-Saharan
Africa(ranks out of 115 countries)
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III. Unveiling the 2005-2006 results Latin
America(ranks out of 115 countries)
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III. Unveiling the 2005-2006 results Middle-East
and Northern Africa(ranks out of 115 countries)
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III. Unveiling the 2005-2006 resultsCase studies

• This year, the GITR contains a number of
  country-specific studies
• Chile How did Chile take the lead in Latin
  America?
• Israel Identifying factors critical for success
  in development of ICT
• Taiwan Assessing the impact of ICT on economic
  and social development
• Mexico and Korea A comparative analysis of
  competitiveness-enhancing ICT strategies

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III. Unveiling the 2005-2006 resultsChile (1)

• Despite its small size, Chile has achieved
  outstanding success in the ICT area, ranking 29th
  in WEF Technology Index (27th in WEF Global
  Competitiveness Index)
• Chiles public sector stands out through its
  exceptional performance in fostering ICT
  development
• Government ranks 16th worldwide for ICT Readiness
  and 16th for ICT Usage in WEF Technology Index
• Chile now acknowledged as amongst most modern tax
  administrations in world

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III. Unveiling the 2005-2006 resultsChile (2)
its path to success in ICT development

• Chile pursued a coherent integration of ICT into
  national strategy for economic growth and social
  development
• Joint public and private sector initiatives on
  ICT development and its country-wide adoption
  played a key role
• During past decade, public sector has been
  leading driver of technology adoption
• Developed impressive e-government system,
• Implemented initiatives to bridge digital divide
• Introduced legislation to enhance use of ICTs,
  covering e-signatures and electronic invoicing
• Deregulated and privatized telecoms sector

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III. Unveiling the 2005-2006 resultsChile (3)
major initiatives in ICT development

• A number of major initiatives, involving both the
  public and the private sectors, were key to
  improving readiness and take-up of ICTs.
• e-government system for online tax statements,
  e-invoicing and fee billing that facilitated and
  raised tax compliance
• ChileCompra, a public platform for purchasing and
  hiring, recording 270,000 business operations in
  2004, totalling US1.9bn, now largest national
  e-market
• Trámite Fácil, a government site that
  co-ordinates 39 ministries and public services,
  offering 227 processes online, incl. official
  documents, housing subsidies, university credits,
  etc.
• National network of Infocenters to improve IT
  access for low-income sectors of population
• Educational programs to help achieve strategic
  ICT objectives, such as
• Enlaces Program providing schools with computers
• EducarChile, a portal offering digital content
  and tools to spread use of ICT for educational
  purposes, aimed at decreasing digital income
  divide
• Digital Literacy campaign aimed at housewives,
  workers, seniors
• Study of English language

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III. Unveiling the 2005-2006 resultsChile (4)
remaining challenges ahead

• Despite its success, a number of challenges still
  remain
• Individual Usage and Individual Readiness show up
  as relative weaknesses in Chiles WEF Technology
  Index scores (underscoring that)
• ICT penetration in remote and rural areas remains
  weak
• SMEs need to be more fully integrated into the
  countrys ICT take-off
• Due to the unequal income distribution, there is
  still a digital divide that needs to be bridged

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III. Unveiling the 2005-2006 results Case
studies Israel (1)

• Governments role is crucial in the emergence of
  Israel as an ICT powerhouse.
• Actions include
• Heavy investment in education along with policies
  encouraging immigration
• Heavy investment in RD
• Incentives to attract FDI
• Incubator and venture capital programs to fill
  the funding gap between RD and viable business
• Also macroeconomic stability, public sector
  downscaling

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III. Unveiling the 2005-2006 results Case
studies Israel (2)
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III. Unveiling the 2005-2006 results Case
studies Taiwan (1)

• Taiwanese Global Share of ICT Products, 2003

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III. Unveiling the 2005-2006 results Case
studies Taiwan (2)

• Taiwan represents one of the most compelling
  development stories of past half century, rising
  from a resource-poor agricultural society to a
  high-tech powerhouse in half a century
• Today, it is ranked 3rd in the world in WEF
  Technology Index and 5th in WEF Global
  Competitiveness Index
• Exceptional strengths include
• Capacity for innovation,
• Firm-level technology absorption
• University/industry collaboration
• Use of latest technologies (mobile, PCs,
  Internet)
• Can serve as an important role model for other
  countries

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III. Unveiling the 2005-2006 results Case
studies Taiwan (3)

• Taiwans success attributed to
• Governments key role in pursuing and funding
  long-term ICT strategic vision as public-private
  partnership
• Good government, sound macro management,
  outward-looking orientation, enabling tax
  environment and supporting infrastructure
• Emphasis on high quality science tech education
• Reversal of brain drain of 1960/70s through
  incentives
• Successful incubation and venture capital support
  for high-tech SMEs
• High-tech science parks based on Silicon Valley
  model
• Access to large mainland Chinese market

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Part IV. A closer look at the performance of
Latin America
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IV. A closer look at the performance of Latin
AmericaArgentina Profile
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IV. A closer look at the performance of Latin
AmericaArgentina Balance sheet
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IV. A closer look at the performance of Latin
AmericaBolivia
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IV. A closer look at the performance of Latin
AmericaBrazil Profile
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IV. A closer look at the performance of Latin
AmericaBrazil Balance sheet
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IV. A closer look at the performance of Latin
AmericaChile Profile
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IV. A closer look at the performance of Latin
AmericaChile Balance sheet
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IV. A closer look at the performance of Latin
AmericaColombia
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IV. A closer look at the performance of Latin
AmericaCosta Rica
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IV. A closer look at the performance of Latin
AmericaDominican Republic
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IV. A closer look at the performance of Latin
AmericaEcuador
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IV. A closer look at the performance of Latin
AmericaEl Salvador
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IV. A closer look at the performance of Latin
AmericaGuatemala
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IV. A closer look at the performance of Latin
AmericaGuyana
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IV. A closer look at the performance of Latin
AmericaHonduras
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IV. A closer look at the performance of Latin
AmericaJamaica
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IV. A closer look at the performance of Latin
AmericaMexico Profile
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IV. A closer look at the performance of Latin
AmericaMexico Balance sheet
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IV. A closer look at the performance of Latin
AmericaNicaragua
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IV. A closer look at the performance of Latin
AmericaPanama
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IV. A closer look at the performance of Latin
AmericaParaguay
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IV. A closer look at the performance of Latin
AmericaPeru
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IV. A closer look at the performance of Latin
AmericaTrinidad and Tobago
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IV. A closer look at the performance of Latin
AmericaUruguay
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IV. A closer look at the performance of Latin
AmericaVenezuela