The Role of Information and Communication Technologies In Global Development

Analyses and Policy Recommendations

Edited with introduction by Abdul Basit Haqqani

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Contents

Acknowledgments Preface

vii ix

jos maria figueres

Introduction

xi

abdul basit haqqani

Section I: Information and Communication Technology Policy and Governance 1

Working Group I of the United Nations ICT Task Force

Enhancing Participation by Developing Nations Stakeholders in ICANN

markle foundation
Governing the InternetEngaging Government, Business, and Nonprofits

19

zoe baird
Section II: National and Regional e-Strategies

27

Working Group II of the United Nations ICT Task Force

National and Regional e-development strategies: A Blueprint for Action

29

united nations development program

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Section III: Human Resource Development and Capacity Building

71

Working Group III of the United Nations ICT Task Force

The Role of ICT in Enhancing the Achievement of Millennium Development Goals

73

united nations development program

Section IV: Low Cost Connectivity and Access

109

Working Group IV of the United Nations ICT Task Force

A Road to Universal Broadband Connectivity

111

a. pentland, r. fletcher, a.a. hasson

GramChitraTaking GIS to Grassroots

128

r. gupta, m. prasad, b. krishna, a. tarafdar, satyaprakash, r. sivakumar, s. bagaria, p. venkatram, a. pentland

Handheld Computers for Rural Healthcare, Experiences in a Large Scale Implementation

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v. anantraman, t. mikkelsen, r. khilnani, v. s kumar, , n. rao machiraju, a. pentland, l. ohno-machado

Section V: Business Enterprise and Entrepreneurship

153

Working Group V of the United Nations ICT Task Force

Supporting Entrepreneurship in Developing Countries: Survey of the Field and Inventory of Initiatives

155

bridges.org

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Measuring Success in Entrepreneurship Support Initiatives: What Works and What More is Needed

256

bridges.org
Section VI: Assessments Information and Communication Technology (ICT) Development Indices

283 285

united nations conference on trade and development

Acknowledgements

would like to express my gratitude to Mr. Sarbuland Khan, Director of the Division of ECOSOC Support and Coordination and Executive Coordinator of the United Nations ICT Task Force and Dr. Sergei Kambalov, Deputy Executive Coordinator, United Nations ICT Task Force Secretariat, for having given me the opportunity to put together this book. I would also like to thank the staff of the Secretariat who, in several ways, facilitated my work. I am also grateful to Mr. Dalmar Hussein, an intern with the Task Force, whose assistance in arranging the text lightened my burden. Without Mr. John Coffeys competence as co-editor this publication would not have come to fruition. I am extremely grateful for his unfaltering resolve to prepare the contributions, graphic design and myriad details of the final text. Finally, I am deeply indebted to Ms. Enrica Murmura of the United Nations ICT Task Force for her unfailing courtesy and the invaluable help she so cheerfully extended at all times.

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Preface

n behalf of the members of the United Nations Information and Communication Technologies Task Force, I am delighted to present, The Role of Information and Communication Technology in Global DevelopmentAnalyses and Policy Recommendations, the third publication of the ICT Task Force Series. The UN ICT Task Force is composed of stakeholders from around the world working to put technology at the service of development. This community of stakeholders serve the development community from their vantage point in industry, government and civil society. From this unique platform, we are confident that you will find this publication to be a significant contribution to the discourse on ICT for development. The ICT Task Force Series is designed to serve as a source book for development stakeholders. This edition dealing with ICT Analyses and Policy Recommendations, is a synthesis of the debates among its members during Task Force conferences and working group meetings. It outlines the lessons-learned and undertakes to offer best practices for policy capacity building. Recent global events have illustrated the interconnectedness of our Age and the impact of information and communication technologies on the economy and society. With a click of a button, fund managers can move billions of dollars between countries and medical practitioners can share vital health information. In contrast to the near ubiquity of ICTs in the developed world, the developing world is still struggling to gain access to basic communication tools that can strengthen their role in the global economy, increase opportunities for education among their children and enable greater civic participation. This publication, which is a reflection and synthesis of the dialogue among the Task Force community, illustrates the importance placed on

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understanding, exploring and integrating the myriad applications of ICT with the Millennium Development Goals, a framework agreed to by member governments of the United Nations at the Millennium Summit in 2000. The MDGs are a set of time-bound and measurable goals and targets to combat poverty, hunger, disease, illiteracy and discrimination against women, thus strengthening the foundation that enables human endeavour. Indeed, it is our hope that this publication can serve not only as a resource on ICT for the development community, but additionally as a baseline for next-generation dialogue and action to address the divide between those that have access to information and those that do not. Jos Mara Figueres Chairman United Nations Information and Communication Technologies Task Force Summer 2003

Introduction

evelopment is neither a simple, nor a straightforward, linear process. It is a multidimensional exercise that seeks to transform society by addressing the entire complex of interwoven strands, living impulses, which are part of an organic whole. A change in one aspect is transmitted, as if through an intricate nervous system, to every other part. A beneficial development in one sphere of social life could reinforce the positive changes taking place in another and thus become a catalyst for more rapid development. Such synergies may be the consequence of deliberate planning or may turn out to be merely serendipitous. On the other hand, what is considered useful in one area could have deleterious effects in other fields. To tackle each component in such a way as to maximise benefits to the entire system is the difficult juggling act that those involved in developmental activities have to perform. To take an example, it has been a fairly common experience that efforts to create an industrial base in a predominantly agricultural society have involved a transfer of resources from the rural to urban areas. This put a strain on village economies and led, ultimately, to migration of substantial portions of the rural population to cities. However, the cities were inadequately prepared to deal with the influx. There was neither an adequate infrastructure, nor the availability of sufficient jobs. As a result migration from the countryside not only exacerbated urban unemployment but also worsened conditions in inner city and peri-urban slums. This is a simplified description of a rather complex phenomenon but serves to illustrate how different elements are inter-related. If policies undertaken at the national level have an impact on all facets of social life, the decisions, actions and attitudes of the citizens also have an effect on the implementation and results of the policies. It would, therefore,

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be incorrect to think of development as only an economic problem. It is a cultural issue and one that pervades the entire organic being of a group. Financial inputs are necessary if the group is to invest in projects that will improve the lives of its members but they are not sufficient for a lasting and sustainable change; for that a cultural transformation would be needed. The international community has come to realise that the problems of underdevelopment, of which poverty is the most harrowing manifestation, need to be addressed as a priority. The Millennium Development Goals (MDGs), agreed during the Millennium Summit, reflect this commitment. Some of these time-bound goals include halving the number of people living in poverty by the year 2015, providing universal primary education, improving health and sanitation, combating HIV/AIDS, enhancing the empowerment of women and reversing the loss of environmental resources. The achievement of these objectives is vital if a catastrophic situation is to be avoided, but development as a process means far more. It seeks to bridge the growing gap between the less developed societies and the industrialised world. This would entail not only greater inflows of capital, either as investment or as aid, but also a faster assimilation of enabling technology by the developing countries. Amongst other means, the Millennium Declaration sought to employ ICT in the service of development. Mr. Kofi Annan, Secretary General of the United Nations, underlined the need for a co-ordinated, holistic approach to the harnessing of these technologies by founding the United Nations Information and Communication Technologies Task Force. This involves a partnership between all playersgovernments, civil society, private business, academiato bring their capabilities, experience and expertise to bear on the task not only of bridging what has come to be known as the Digital Divide through the induction of ICT into the mainstream of economic activity, but also for using the technologies in ways that would enhance the effects of actions in other fields of developmental endeavour. The importance of ICT in enabling the developing world to catch up lies in its very nature. As Jose Maria Figueres, Chairman of the United Nations ICT Task Force has said, The gap between [the least developed nations] and the rest of the world has expanded precisely as a result of the facilitating capacity of these technologies for those who have access to them. The fact that ICT is an enabler or facilitator, not a talisman or

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Aladdins lamp, should be stressed. For it is easy to make the mistake of treating it as an end in itself. The United Nations ICT Task Force has an important role to play in clarifying such issues through the unique mix of experience and expertise it can draw on. Its mandate is to promote awareness, inclusive policies and innovative technological and business models. It serves as a focal point for establishing strategic direction, better coordination and policy coherence for the application of ICT to promote development. It lends a truly global dimension to the many efforts to bridge the global digital divide, foster digital opportunity and place ICT at the service of all the worlds citizens. It serves as a strategic tool of the United Nations system, and the global community at large, in achieving the goals of the Millennium Declaration. The Task Force utilises different methods to perform its mandate. It works through plenary meetings, informal consultations with stakeholders, as well as electronic outreach to broader audiences across the world. It has launched a matrix of Working Groups and Regional Networks as platforms for the implementation of the overall Plan of Action. These Working Groups are now addressing a broad range of policy issues and have launched several major global initiatives on their own in the areas of policy and governance, e-strategies, capacity building, connectivity and access, and entrepreneurship. This book illustrates the contribution being made by the Working Groups as well as individual experts and those involved in the work of civil society organisations to promote that common agenda. ICT have a reach transcending national boundaries and are a truly global phenomenon. It is of the greatest importance, therefore, that there be international co-operation, in which all countries are involved, for ensuring order among the services and the opportunities that they open up. Domestic policies can make effective use of ICT for development, but international policies forged in multilateral institutions will increasingly define the range of options available to developing countries. Thus, WTO members, through the Doha Development Agenda, will consider new trade regulations governing electronic transactions and the hardware, software, and services supporting those transactions. The problem that many developing countries face is a lack of proper understanding of technical issues or the impact that they can have on their immediate and long-term interests. Besides, there are the costs of participation that many developing

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countries can ill afford. This often results in the absence of representatives from developing countries from meetings of international policy-making and governing bodies, even when they are not indifferent or passive about the issues involved. This threatens to leave them mired in frameworks and structures of governance designed to promote or serve interests that run counter to their own. As in other spheres of international economic activity, the developing world will then find itself in a game with the dice heavily loaded against it. It is in the interest of the established players to help the developing countries become active participants because, otherwise, developing country stakeholders may question the transparency, legitimacy, and accountability of international governance processes and outcomes related to ICT. This will impede both developed and developing countries in achieving their national and international ICT objectives. The United Nations ICT Task Force has, therefore, sought to strengthen the voice of developing countries in international ICT policy processes. This problem is addressed in the first section of the book: Information Communication Technology Policy and Governance. Understanding and internalising technology is an essential requirement of development. Economic inadequacy is frequently the result of technological backwardness that, in turn, exacerbates underdevelopment. However, for societies to be able to use and master technology, it is essential that it be relevant to their existing conditions. After all, the advances made in this sphere by the industrialised world were a process of natural growth, rooted in the conditions that existed at the time they were developed. It may be ridiculous to re-invent the wheel, but it is desirable that the different uses to which the borrowed concept and potentialities of the wheel are put answer to the needs of those who are going to use it; and the object itself must be within their reach. Inadequate attention to this was one of the banes of traditional efforts to modernise whole sectors of Third World economies, which were based on the advice of experts from countries with a radically different technological, cultural and economic milieu. As Pentland, Fletcher and Hasson put it so succinctly in A Road to Universal Broadband Connectivity in Section IV, There are often clear fundamental differences between what is proposed by technology visionaries, many of whom have never seen a village, and what is actually needed by end-users, many of whom have never used a telephone. Two other papers in the sec-

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tion give concrete examples of how low-cost solutions can be found that use ICT for addressing the problems of rural societies in developing countries. Section II, National and Regional e-Strategies, examines how development can be promoted through the effective use of information and communication technologies and how the conditions necessary for achieving that end can be met. It also draws attention to the fact that the strategy for using the technology is a continuously evolving process, not a solution to be applied once for all. Based on an analysis of past e-strategies it reaches the conclusion that the development impact and the results achieved, vary in relation to the focus and role assigned to ICTthe relative weight on ICT as enabler as against the ICT sectorthe degree of holism or consideration of cross-sectoral elements and linkages, the extent to which the strategy draws on the inputs and involvement of all the different stakeholders as a process as well as the enabling conditions and resource mobilisation environment. The United Nations Millennium Declaration recommends partnerships with the private sector to ensure that the benefits of new technologies, especially information and communication technologies . . . are available to all. Section IV considers the ways in which ICT could help promote the goals set out in the Declaration through the widespread and innovative use and deployment of ICT and its integration into the design of development interventions. It can enhance the effectiveness of development resources by facilitating cost-effective and scalable solutions, enabling developing countries to benefit from new economic opportunities resulting from the re-organisation of production and services taking place in the global networked economy. ICT is likely to prove of great importance in poverty alleviation and wealth creation in both developed and developing countries. It can be used to promote sharing of knowledge and help replace brain drain by brain circulation. By creating opportunity for cross-border networks of research and development, it enhances the possibility of garnering the knowledge being developed everywhere that could help the achievement of the MDGs. Section V examines the use of ICT in supporting entrepreneurship. Of the two papers that are included in this section, one examines the Entrepreneurship Support Initiatives (ESIs) and the range of services they offer to small, micro, and medium-sized enterprises (SMEs) and entrepreneurs.

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The second builds on the first, with a more evaluative look at entrepreneurship support. While the first is intended as a resource for connecting like-minded ground-level initiatives, so that they can exchange information, learn from one another and avoid duplication of effort, the second is meant as a first step towards a common evaluation criterion that ESIs could use to gauge the effectiveness of their activities. Both are also intended to inform the deliberations of international planning efforts. The last section, Assessments, contains a report by UNCTAD: ICTD Development Indices. It analyses and evaluates ICT development using indicators of diffusion across countries and selects key indicators measuring development in ICT, with a specific focus on ICT as a pervasive phenomenon of global impact, wide application and growing potential. While examining existing infrastructure connectivity, it also considers the future potential and important determinants affecting the abilities of countries to absorb, adopt and make use of these new technologies.

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SECTION I

INFORMATION COMMUNICATION TECHNOLOGY POLICY AND GOVERNANCE

Working Group I of the United Nations ICT Task Force

Enhancing Participation By Developing Nations Stakeholders In ICANN1

Prepared by the Markle Foundation to inform the deliberations of ICT Policy and Governence Working Group of the United Nations ICT Task Force Working Group 1
To realize this potential, we need to build digital bridges to the billions of people who are trapped in extreme poverty, untouched by the new technologies that are changing our world. If developing countries are to compete in the increasingly knowledge-based global economy, one key factor will be their ability to participate effectively in processes and fora that deal with new policy and technical issues such as this one. The presence of Africans and representatives from other developing regions on the ICANN Executive Board is a good sign. I salute ICANNs efforts to ensure that the voices of users across the globe, particularly in the developing world, are heard. Such efforts are, of course, only a beginning. I encourage ICANN to join hands with the United Nations Information and Communication Technology Task Force that I established

1. The proposals and recommendations developed in this report have been gathered from extensive interviews and several roundtable sessions held at the ICANN meetings in Montevideo (September, 2001), Accra (March, 2002), Bucharest (June, 2002), and Shanghai (October, 2002). They are also based upon the presentations delivered by Dr. Nii Quaynor, member of the UNICT Taskforce and of the ICANN Board and Stuart Lynn, President of ICANN to the UNICT Taskforce, and build upon the research reports issues within the context of the DOT Force (i.e. Roadmap and CTO/Panos Studysee http://www.markle.org/globalpolicy).

last year, which is addressing this and many other issues. I also see a key role for ICANN in addressing various questions being worked on by the World Intellectual Property Organization and the International Telecommunication Union that affect the future of the Internet and its community U . N . S e c re ta ry - G e n e r a l Kofi Annan M e s s ag e to I C A N N B oa rd o f Directors Acc r a , G h a n a , M a rc h 1 4, 2002

SYNOPSIS

This is an exploration by the United Nations ICT Taskforce on how to strengthen meaningful participation by developing countries within, and through a partnership with, the Internet Corporation for Assigned Numbers and Names (ICANN). It suggests a three-pronged strategy that would include:
Creating linkages between the United Nations ICT Taskforce and ICANN to improve developing nation participation in ICANN (as well as possibly managing a travel-fund); Assisting African countries in creating their own Regional Internet Registry (RIR), AfriNIC, that would provide for increased regional technical capability for managing its Internet address space; Advising ICANN and other appropriate bodies on creating regional outreach centres or networks;

The strategy aims to address the priorities jointly identified by Working Group 1 of the United Nations ICT Taskforce and Implementation Team 5 of the Dot Force. They include, applied to ICANN:
Increasing awareness among developing-country stakeholders regarding the importance of ICANN for ICT policy making; Strengthening the technical and policy-making capacity of developing-nation stakeholders within ICANN; Providing easy and affordable access to timely information about key ICT-related issues on the agenda of ICANN;

Overcoming financial and other barriers impeding developingcountry stakeholders from participating in ICANN; Fostering multi-stakeholder engagement in the search for and implementation of solutions that enable inclusive DNS policymaking; and Promoting equity enhancing mechanisms and the lowering of access barriers within ICANN.

The paper describes what ICANN is and does; its relevance for global ICT policymaking, and for developing nations in particular; and some current challenges and issues facing the organisation. Finally, and perhaps more importantly, three possible strands of action are explored that might allow the United Nations ICT and ICANN to better address the above priorities.
INTRO D U C T I O N : I D E N T I F I E R S A N D I C A N N

Speaking of the need for the robust and reliable presence of countries on the Internet, Stuart Lynn, President of ICANN noted, If you cant be found on the Internet, you dont exist (Presentation to the United Nations ICT Taskforce, October 2002) The success of the Internet, e-mail, and the World Wide Web has been in significant measure due to the user friendliness and flexibility of domain names. Internet domain names are particularly crucial because they are the primary means by which users and creators of information and services world-wide identify themselves and information. Like ordinary postal mail, information sent or made available via the Internet needs addresses or identifiers in order to reach their correct destinations or to be found. Essentially every computer connected to the Internet is assigned a unique address, known as an Internet Protocol (IP) address, which consists of a long number (e.g., 157.150.195.9). Such unwieldy numeric addresses can be difficult for people to remember and use. Therefore, the Domain Name System (DNS) helps people navigate the Internet and identify places of interest by matching IP address numbers to user-friendly names. For example, when you want to find the United Nations website, you can type http://www.un.org into your web browserfar

more convenient, and easier to remember than 157.150.195.9, the UNs assigned IP address. To ensure that each domain name corresponds to one and only one location on the Internet, there is a need for centralised co-ordination. ICANN was created in 1998 to co-ordinate the allocation of those Internet identifiers (domain names, IP addresses, and certain other technical parameters) that must be unique if the Internets naming and addressing systems are to function correctly. Although, for historical reasons, the ultimate authority still rests with the United States Department of Commerce (DoC), the ultimate goal is to privatise and internationalise this responsibility. Today, the DoC acts on recommendations from ICANN, a private, not-for-profit corporation, headed by an international Board of Directors and based in California, USA. Before 1998, a key pioneer of the Internet, John Postel, essentially handled these functions but the growth in size and complexity of the Internet required a shift to a more institutionalised framework of accountability. In broad terms, ICANNs mission requires it to co-ordinate the domain name space, particularly at the top-level; allocate IP address space; manage the root server system; and co-ordinate protocol number assignment; and to engage in policy developmentthrough bottom-up, open and transparent consensus-building processesto the extent this is necessary to accomplish its more technical mission. As examples of the work of ICANN, it (1) approves/licenses companies to become accredited primary registrars for top-level domain names (TLDs) such as .com, .net, and .org.; (2) decides whether and when new TLDs are added to the root system and who should be licensed to operate them; (3) co-ordinates technical parameters to ensure continued stability of the Internet; and (4) implements a Uniform Domain Name Dispute Resolution Policy (UDRP) for competing domain names.
I C A N N A N D R E L E VA N C E F O R GLOBAL ICT POLICY MAKING

ICANN was initially created to focus on the technical management of the DNS, but, as noted, many of its technical decisions inevitably involve policy, and in particular global public policy, choices. Many of ICANNs decisions, for example, affect how people reach websites and what domain

names they can own; how conflicts over trademarked domain names are resolved; how expired domains are reallocated; and how much data on domain name owners should be publicly available through WHOIS registries and other sources. The DNS is fundamental to the operation of the Internet. The operation of the root server system is at the core of the DNSindeed, in an important sense, it is the Internet. In this regard, the role of ICANN, in co-ordinating the DNS and the root server system, is central to the stability and accessibility of the Internet. All of this means that ICANNs decisions are tremendously important to the world-wide communitydeveloped and developing countries alike. From the start, there has been some confusion about the scope of ICANNs responsibilities. Even though much of what ICANN does can be characterised as technical co-ordination, this technical work is nonetheless often inextricably intertwined with global policymaking of precisely the sort that requires participation by both developed and developing nations to provide for legitimacy. Several of the most important decisions that ICANN has made since its founding are exercises of discretion of the kind often associated with global public agencies. ICANN fulfils this role as a public/private partnership working in concert with its Governmental Advisory Committee (GAC) and in an open and transparent manner. Three examples illustrate this point: First, arguably the most important (and certainly the most publicly visible) decision made by ICANN to date was the award of new global Top-Level Domains (gTLDs). Both the decision on how many gTLDs to award, and then the selection of the chosen gTLDs themselves, were exercises in discretionary policy making, not technical co-ordination. It is not possible to have the technical responsibility for adding new TLDs to the root without asking what TLDs, who should operate them, under what conditions etc., all of which raise public policy issues. A second example of policy-type decision-making is the creation of the UDRP process. In response to recommendations developed by the World Intellectual Property Organisation (WIPO) requested as part of the original establishment of ICANN, ICANN approved this policy in order to create a cheap and fast process for resolving issues relating to the protection of intellectual property rights in the DNS, without resorting to

expensive litigation in the courts. In implementing the UDRP process, the ICANN Board has responded to WIPO recommendations that it should establish effective processes that protect, or provide a mechanism for protecting, the rights of trademark holders under certain circumstances. Making this judgement was itself a substantive policy decision, and certainly the design of an arbitration process involved a host of policy determinations about how to balance the rights and interests of Internet users and trademark holders, how to allocate the costs of dispute resolution, and how to establish a means for fair, legitimate and neutral adjudication. All involve policy judgements based on some underlying conception of whose interests should be protected, to what degree, and how. Finally, even though ICANN does not conceive of itself as a regulatory body, it has in fact engaged in a process of regulation by contract, which has resulted in a range of substantive policy making. This has not been done by the issuance of rules, but rather through the drafting of private contracts. The decisions outlined in these three illustrations can be plausibly described as technical, or arising from mere technical co-ordination of parameters necessary for the operation of the Internet. They are each important aspects of DNS stability. Yet each decision also involves global public policy makingdecisions about how to facilitate the development of the Internet as a global public resource; about how to shape the marketplace for key Internet services to best create competition; and about how to balance conflicting private economic rights claims against each other, or against claims of free speech in cyberspace. Such decisions must be based on some underlying substantive conception of how the DNS, and hence the Internet, will best function globally. That is why, in its recent reforms, ICANN emphasised that it operates as a public/private partnership and why it strengthened the role of its Governmental Advisory Committee (the GAC) through which ICANN receives key advice from governments on matters of public policy. And to the extent that the Internet is, or will become, a global quasipublic resource, these decisions must involve increased participation by developing nations. The following section outlines some key concerns for developing nations.

IC A N N A N D D E V E L O P I N G N AT I O N S

Since its formation, ICANN has been concerned over a perceived lack of participation by developing nations and has taken some steps to strengthen that participation. It is critical to ensure that ICANNs bottom-up processes operate with the full participation from all global communities. What has been crucially lacking is a clearly articulated statement of why ICANN should include developing nations. Such a statement is important not just to those who would reform ICANN, but also to convince developing nations about the importance and necessity of an organisation like ICANN that includes participation by all sectors: government, private sector, civil society, technical, individuals, providers, and others. In what follows, we first present five specific reasons why ICANN matters to the developing world. Following that, we briefly discuss the current status of developing nation participation in ICANN, and end with an overview of some possible steps forward to enhance such participation. A. Why does ICANN matter to the developing world? 1. Country-level domain names Perhaps the most important reason why developing countries should participate in ICANN concerns ICANNs role with respect to country-code top-level domain names (ccTLDs). In fact, ccTLDs raise two issues. The first concerns the creation of two-letter country codes (e.g., .au, .za, .in, etc.), and their inclusion in the ISO 3166-1 list. While in most cases the need for such codes is clear, and while the criteria are fairly well established,2 the decision remains inherently political, and may be fraught with ambiguity.3 The ISO 3166-1 list is created and maintained by ISO, the International Standards Organisation, and not by ICANN, but ICANNs policies require it to be responsive to the list in the allocation of ccTLDs. The second, and perhaps more important, issue concerns the management of ccTLDs in the ISO list. The question of which agency governmental, corporate, non-governmental, or internationalshould have
2. http://www.din.de/gremien/nas/nabd/iso3166ma/get_name.html 3. Indeed, recent difficulties in assigning country-level domains to smaller pacific island nations suggest just how complicated the allocation of country-level names remains.

authority to control a country-level domain name is inherently a question about representation. Country-level domain names establish the online identity of a country and its people. Given the importance of the Internet to the political, social, and economic development of countries, it is essential that an inclusive mechanism exists for the Internet community in that country to have a say in how ccTLDs are administered. ICANN aims to work closely with Internet communities in countriesand governments as a significant part of those communitiesto encourage local solutions and progress towards optimal outcomes that serve the best interests and desires of the local Internet community, including governments. Recent agreements with countries such as Australia, Kenya, Sudan, and Japan are examples of such outcomes. As these examples show, defining the legitimate aspirations may not always be easy, and every effort must be made to also include nongovernmental individuals, civil society, the technical community, the private sector, infrastructure providers and other relevant organisations. Furthermore, many developing countries may lack technical competence, and, as has happened in some cases, may need outside bodies to manage their ccTLDs, at least until they are ready to assume responsibility for themselves. Even in such cases, however, it is essential that the developing countries themselves choose those bodiesa choice that can best be achieved by meaningful participation on the part of the developing world within ICANN. Finally, good policy and technical governance of a countrys top-level domain is an essential element of modern communications infrastructure and essential to the stability of both the local and global Internet. Network information centres (NICs) and infrastructure supporting domain name services typically become a focal point for Internet in a developing nation and capacity building in this area is critical. Access to technical knowledge and contacts, and shared experiences, can be gained by participating within ICANN, and having direct access to knowledge and experience of different ccTLD operators and the overall technical and infrastructure provider community; as well as utilising ICANN global policies as a starting point for local policy development. Shared technical knowledge and experience assists in facilitating and empowering good policy and technical governance of a countrys top-level domain.

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2. Local language domain names It is widely recognised now that the predominance of Englishor of the Roman character alphabeton the Internet is a major cause of the digital divide. Yet while this problem is generally recognised with regard to Internet content (cfr. Working Group on Local Content within the United Nations ICT Taskforce), it is equally acute with regard to domain names: in order to ensure equitable participation on the web, it is crucial to establish a DNS system for non-Roman character scripts. Currently, standards for non-Roman character scripts are being developed by the Internet Engineering Task Force, and significant progress has recently been made. ICANN, however, will play a major role in evolving related policies so that such IETF standards can be incorporated into the DNS without balkanising the web. Consider the case where a Cambodian company registers a domain name using the recently developed Khmer script. While this URL may be easily accessible to Internet users within Cambodia, how will those outside Cambodia, who do not know or possess Khmer script, access it? A similar problem arises if different representations of the script are used in different registries? A further issue concerns the use of diacritical characters in domain names; even if domain names continue to use the Roman alphabet, it will be essential to standardise such non-ASCII characters as umlauts and accents if regional aspirations are to be accommodated in the DNS. In both cases, there is an unavoidable tension, a balancing act between relieving domain name scarcity and ensuring the stability of the DNS system. A global body such as ICANN that develops policies for access to non-Roman character domain names, is essential for maintaining this balance. 3. Intellectual Property A global body like ICANN is also essential to maintaining intellectual property rights of non-Western entities (in support of WIPO recommendations and other global policy making bodies). WIPO has global responsibility for intellectual property rights, and ICANN relies on WIPO and the intellectual property community for advice and guidance on issues relating to intellectual property rights regarding domain names. We read frequently about domain name squatting in the developing world, and it is true that would-be entrepreneurs, both in developed and developing countries, have sometimes taken advantage of Western intellectual property rights holders through abu-

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sive use of domain name registrations. Yet an equally acute, if often unrecognised, problem concerns the case of Western entities usurping the intellectual property rights of companies and individuals in the developing world. For example, a number of Indian companies have been attempting (fruitlessly thus far) to reclaim their domain names from US-based domain name holders in gTLDs. A global and representative body like ICANN is essential to providing a policy framework and processes for such companies to pursue their claims4. Indeed, ICANNs Uniform Dispute Resolution Policy is a step in precisely this direction, representing an efficient way for the developing world to reclaim its intellectual property rights without recourse to Western courts (which may be expensive, time-consuming, and unfriendly to claims from other jurisdictions). In the long run, of course, such mechanisms are crucial not only to maintaining the integrity of the DNS, but more generally, to ensuring equitable participation in the global economy. 4. Security In the wake of the September 11th attacks in America, the security and stability of the global DNS have become cause for increasing concern. Thus, at its November, 2001 meeting (Marina del Rey), held in the wake of those attacks, the ICANN community expressed anxiety about the vulnerability of the Internet to e-terrorism. Such concerns are frequently considered relevant primarily to the developed world, whose economies and communications systems rely heavily on the Internet. However, developed countries possess a far higher degree of redundancy in those systems than the developing world, where bandwidth is scarce, and gateways in short supply.5 A relatively minor attack, which might slow down traffic in the developed world, could entirely cripple communications in the developing world. For these reasons, developing nations have a vital stake in ICANNs current steps to examine

4. It must be emphasized that the UDRP policy enables ICANN to authorize providers of dispute resolution services. ICANN itself does not provide such services, nor does it act as any court of appeal. Claimants who disagree with decisions of a provider are at any stage free to pursue their claims in the courts. 5. Until recently, for example, India possessed only two international gateways. A denial of service attack (such as those that occurred recently on Amazon and Yahoo!) on those gateways could have shut down international data traffic to the entire country.

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the security of the Internets 13 root servers. Even more importantly, as some critics of ICANN have pointed out, rightly or wrongly, it is essential that the number of root servers be increased to add greater redundancy into the Internet. Steps have been taken recently that are achieving this, using new technologies that permit mirrors of the root servers to be widely distributed; and other emerging technologies will add to the security of the DNS. The location and management of those root servers or their mirrors is likewise an issue of concern to developing nations: control of those servers essentially means control of internet traffic, and it important that a truly dispersed world wide web disperses control of traffic across nations, too. 5. E-Commerce and Development A final reason why ICANN and its decisions have significant relevance to developing nations concerns the potential of e-commerce to spur development. As the 2002 E-Commerce and Development Report issued by the United Nations Conference On Trade And Development (UNCTAD)6 argues, e-commerce, particularly in the form of B2B transactions, can help economies grow and facilitate economic transactions between and within countries. Yet, as the report also shows, the spread of e-commerce has been concentrated in already-developed nations, with developing nations (Africa, in particular) lagging significantly behind. The report identifies several reasons why this is so, the primary one being a lack of ICT infrastructure and affordable access. Too few people and institutions are connected because there are too few electronic highways in the developing world. Thus the establishment of such an infrastructure is crucial to economic development. But even with expanded infrastructures and accessibility, and even to make full use of what exists, the requirement for an effective DNS infrastructure and fair allocation of Internet address space is central to ensuring that countries, institutions, and people are reachable and can reach across the Internet. All of this taken together could serve the goal of expanding online exchange of communications and information, and creating new channels for commerce(quote). Naturally, ICANN will play a central role in this process. Indeed, among the reports many recommendations is a call for greater participation and inclusion

6. http://www.unctad.org/en/docs/ecdr2002_en.pdf

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of developing nations in all aspects of ICANNfrom the allocation of ccTLD responsibility to the management of the UDRP. All these reasons are bound by a common principle: that it is fundamentally in the interests of developing nations (and, indeed, of average Internet users) to have their voice heard in the governance processes of the DNS. Needless to say, there are important reforms that need to be carried out at ICANNand are being carried outto increase participation from developing nations, and to ensure that they are in fact effectively able to take part in important decisions such as those outlined above (see further below). Such reforms are as much in the interests of ICANN as those of developing nations. For, ultimately, in the absence of policing power, ICANN relies for its effectiveness on a perception of inclusiveness and transparency. So far, its mission has been hindered by the lack of such a perceptionwitness the refusal of many European nations to recognise DNS authority of ICANN, a body some perceive, rightly or wrongly, as predominantly American. The current reform process that is now almost complete, particularly with regard to participation in the various ICANN structures, might offer such a window of opportunity rather than hinder the agenda of developing nations. B. Current Status of Developing Nations in ICANN What is the current status of developing nations in ICANN? To some extent, ICANN has, from the beginning, made an effort to achieve regional equity. For example, it requires that each of its five regions be represented by at least one board member; this ensures that Africa and the Asia-Pacific regions each have a representative. In addition, ICANN rotates the locations of its meetings throughout the world. Recent meetings have been held in Latin America (Uruguay, September, 2001), Africa (Ghana, March, 2002) and Asia (Shanghai, October, 2002). Such rotation represents more than just a token gesture. It is an important measure to lower participation costs for representatives from the developing worlda significant barrier to participation not only in ICANN, but also in many similar global forums. ICANNs various Councils and constituencies are open to all, and many are structured to ensure global diversity. The recent reform processes have taken pains to strengthen and encourage such diversity.

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Despite such measures, however, participation on the part of developing nation stakeholders has not fulfilled its potential. There is a continued perception that outreach efforts by ICANN to developing countries have been weak. It is also difficult for residents of developing countries to participate in ICANNs meetings and structures because of the high costs of travel. Although there is considerable diversity among ICANNs organisational units, almost all ICANN secretariat members are currently from the developed world. Much recent senior hire, however, have been of non-US citizens, including one recently from a developing country. So, this situation may be changing. The kinds of outreach proposed in this document could help alleviate this situation. Likewise, the majority of gTLD registries (and in some cases even developing country ccTLDs) are being operated by companies based in the developed world. In part, this may be an inevitable outcome of ICANNs stated (and necessary) criteria for assigning a gTLD license: demonstrated ability to operate a TLD of significant scale. Such ability may be lacking in much of the developing world. In seeking to increase regional participation in ICANN, therefore, it may be as important to build up general regional technical capacity, learning from the experiences of others, as it is to institute reforms in ICANN. Whether ICANN itself has an official role to play in enhancing such general capacity remains to be discussed. ICANNs Governmental Advisory Committee (GAC), as noted, plays an important role in advising ICANN on matters of public policy. This role has been strengthened with ICANNs recent reforms. The GAC is open to government representatives of all countries and distinct economic regions as well as, with the approval of the Chair, representatives of international governmental bodies (such as the ITU, WIPO, the ATU, and the UN). Some developing countries participate regularly in the GAC meetings (the current chair is from Malaysia) particularly when ICANN meetings are held in the local region. But many do not, either because of travel funding considerations, or because DNS and addressing policy is not of sufficient priority to the government. Ways need to be considered to strengthen further the participation of more developing countries in the work of the GAC.

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C. The Way Forward: Towards Enhancing Developing Nation Participation The biggest challenge ICANN faces, as indicated above, is its own reform. Any effort to increase developing nation participation needs to be situated within the context of this challenge. In this section, we first discuss current general reform efforts, and then discuss them with specific regard to developing nations. 1. Current Reforms On 24 February 2002, ICANN President Stuart Lynn issued a report entitled ICANN: the Case for Reform,7 which discussed the mission ICANN was attempting to achieve, reviewed progress toward that mission, and concluded that ICANNs current processes and structure would not permit it to achieve that mission unless important reforms were implemented. The report itself recommended significant reforms. The subject of ICANN reform has been significantly discussed at subsequent ICANN meetings. Following the March 2002 meeting in Accra, Ghana, a Committee on ICANN Evolution and Reform was created for considering the following issues:
a list of essential functions to be performed by ICANN, and a proposed mission statement for ICANN; means of ensuring that ICANN decision making takes proper account of the public interest in its activities; mechanisms for meaningful participation and input from informed Internet users; structures for participation of all stakeholders in ICANNs deliberations and decision making; the interactions and co-operative functioning of the different components of any proposed structure; checks and balances that will ensure both the effectiveness and the openness of the organisation; ways in which essential components of any proposed structure

7. See http://www.icann.org/general/lynn-reform-proposal-24feb02.htm

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that may not be able to be fully incorporated at the start of the reform process will be included when appropriate; and a proposed transition process from the current structure to any recommended new structure, including a description of how the present components of ICANN relate to the new proposed structure, and the anticipated timetable for that transition.

The Committee subsequently produced a blueprint for reform that was endorsed at ICANNs Bucharest Meeting. In September, the US Department of Commerce renewed ICANNs MOU for an additional year, with the understanding that ICANN would embark upon the reform process outlined in that blueprint. Consequently, at the Shanghai meeting in October, the ICANN board formally adopted a new set of bylaws proposed by the Evolution and Reform Committee The ICANN reform process is now well underway and irreversible. 2. Reform and Developing Nations As noted, ICANNs current evolution into a new skin may represent an ideal moment for developing nations to participate as equals. Indeed, there has been considerable discussion lately about how to enable such participation. Recently, the ICANN President has proposed a partnership with the United Nations to develop mechanisms for narrowing the digital divide. In March, 2002, At the ICANN meeting in Ghana, the Secretary General of the UN, Kofi Annan, spoke of his hope that ICANN would join hands with the United Nations Information and Communication Technology (United Nations ICT) Task Force, and he saluted ICANNs efforts to ensure that the voices of users across the globe, particularly in the developing world, are heard. He also expressed the hope that ICANN would work with other world bodies, such as WIPO and the ITU, towards narrowing the digital divide. In addition, a meeting to discuss the role of developing nations and ICANN was held at Shanghai; attendees included KPP participants, representatives from the Markle Foundation, United Nations ICT, ICANN itself, and various other bodies. The goal of the meeting was to develop a set of concrete proposals and specific working mechanisms to enhance the role of developing nations in ICANN.

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Partly as a result of that meeting, and partly as a result of subsequent discussions and meetings, a three-pronged strategy is suggested. 1. Cross-Constituency/Multi-Sectoral Committee: One component of the strategy would involve assistance and advice to ICANN, in co-ordination with ICANNs constituencies and Governmental Affairs Committee. As such, we suggest the establishment of linkages between the United Nations ICT Task Force and ICANN to improve developing nation understanding of and participation in ICANN. In this connection the UN should participate actively in the work of the GAC, perhaps represented for the near term by the United Nations ICT Taskforce. 2. Regional Registries (RIR): In addition to the above committee, which would be a partnership between United Nations ICT and ICANN, any adequate strategy should work with the RIRs to strengthen their capacity and ability to manage regional DNS issues. In particular, it is important to develop the proposed African RIR, AfriNIC. Existing RIRs have proven an effective, transparent and bottom-up means of channelling local concerns into addressing policy. They are a crucial means of ensuring that regional IP resources are efficiently and fairly distributed. As such, it is essential that African domain space, currently managed by APNIC (the Asia Pacific RIR), RIPE-NCC (the European RIR) and ARIN (the American RIR) be handled by an African RIR that is well-trained and fully equipped, both technically and financially, to take on such an obligation. 3. Regional Outreach: Finally, there has been widespread discussion of the need to advise ICANN on regional outreach centres that would provide on-the-ground training, capacity building, and awareness-raising throughout the developing world. In order to derive maximum benefit from such centresand in order to minimise duplication of facilities and fundingit could be effective to integrate such ombudsmen into existing United Nations ICT regional networks. Such networks already exist in five regions of the developing world: Africa, Latin America and Caribbean, Asia, Arab States, Europe and Central Asia. Although they do not specifically focus on ICANN issues at present, they represent natural bodies from which to do so, and could provide a readymade structure from which to launch.

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Governing The Internet: Engaging Government, Business, And Nonprofits

Zoe Baird

he rapid growth of the Internet has led to a worldwide crisis of governance. In the early years of Internet development, the prevailing view was that government should stay out of Internet governance; market forces and self-regulation would suffice to create order and enforce standards of behavior. But this view has proven inadequate as the Internet has become mainstream. A reliance on markets and self-policing has failed to address adequately the important interests of Internet users such as privacy protection, security, and access to diverse content. And as the number of users has grown worldwide, so have calls for protection of these important public and consumer interests. It is time we accept this emerging reality and recognize the need for a significant role for government on key Internet policy issues. To do so without stifling innovation will require government to operate in unfamiliar ways, sharing power with experts in the Information Technology (IT) community, with business, and with nonprofit organizations. The first-mover advantage exists in policymaking as well as in business, and some commercial interests are moving as fast as they can to define Internet rules to their benefit without regard for the public interest. To achieve an Internet that reflects a commitment to public good as well as to commercial interests, we have to create more pluralistic models for Internet governance, models in which governments, industry, and nonprofit

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organizations craft policybalancing each other and working together in transparent processes that earn the publics trust. Many of the initial Internet oversight bodies emphasized self-regulation, bottom-up control, decentralization, and privatization, reflecting a conviction that government would never get it or move fast enough to keep pace with technological change. Often, engineers set the standards and industry set the consumer models largely outside of the public eye. As one Internet innovator, John Perry Barlow, wrote in his Declaration of the Independence of Cyberspace, Governments of the Industrial World, you weary giants of flesh and steel . . . On behalf of the future, I ask you of the past to leave us alone. . . . You do not know our culture, our ethics, or the unwritten codes that already provide our society more order than could be obtained by any of your impositions. The loose and creative work of cyberspace pioneers served the Internet superbly as it was being formed and into its early maturation. But now some previously vaunted notions of efficient, private, speedy selfgovernance are failing to meet expectations. Tensions have arisen over such issues as whether a country has jurisdiction over Internet activities originating in other countries, whether regulation of content such as hate speech and pornography is appropriate, how different privacy protections should apply, and who gets space on prime virtual real estate such as dot-com. In addition, post-September 11 concerns about security in a networked world call into question the wisdom of keeping government off to the shoulder of the information superhighway.
A NEW MODEL OF GOVERNANCE

The reality is that government participation in regulating the Internet is necessary. Given the new economic and geopolitical environment, finding the right balance between an open, networked system and the security of a more closed environment requires significant participation by government. Although governments do not all share the same values, they are the only institutions that can provide stability and a place for debate over what public values need to be protected. These issues are significant policy questions that require democratic resolution, not just technical matters that can be left to experts. As Stanford University Law School Professor Lawrence Lessig has argued, in the digital age software code is law because

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software developers can shape the Internets technical architecture in ways that guide or restrict users experiences. Indeed, despite some wariness, the American public indicates a clear preference for government involvement. In a study conducted by the Markle Foundation and Greenberg Quinlan Rosner Research in 2001 (prior to September 11), respondents said by a two-to-one margin that the government should develop rules to protect people when they are on the Internet, even if it requires some regulation of the Internet. Thus the goal should no longer be keeping government out of cyberspace, but finding a way to make governmental oversight and intervention as speedy, agile, and technologically savvy as the medium demands. The borderless nature of the Internet makes effective Internet governance even more challenging. Establishing the proper role for government inevitably means discerning the parts to be played by different countries and also the multilateral organizations they have formed. International forums on it will play a critical role in writing the rules of the game for the next phase of world economic, political, and cultural history. However, to be legitimate, global governance forums will also need improved democratic processes. International institutions engaged in Internet governance will have to confront three significant challenges if they are to achieve legitimacy: increasing participation by developing countries, providing access to nonprofit organizations, and ensuring democratic accountability. Developing countries face some major barriers to participation. A recent study conducted under the auspices of the Digital Opportunity Task Force of the g-8 group of highly industrialized nations found that developing countries often lack the financial and human resources necessary to take part effectively in important venues. Moreover, complicated policy processes and decision-making arrangements leave poorer countries at a disadvantage within individual institutions. The multiplicity of institutions addressing IT policy also makes it hard for developing nations to contribute. These barriers are further raised by the intrinsic complexity of new technologies, by the difficulty of keeping pace with industry and consumer economic priorities, by a dearth of effective models for inclusive policymaking, and by the lack of financial resources for experts and travel. If left unaddressed, this situation can devolve into a downward spiral in

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which stakeholders who feel shut out either obstruct or ignore IT policy efforts. A major obstacle to the success of governance institutions will exist as long as developing countries feel they do not have the expertise or the resources to understand whether the actions of these bodies are in their interestand thus will often prefer to block action rather than accede to initiatives. Barriers also exist to the participation of nonprofit organizations in global Internet governance. Principally, these barriers arise because of a lack of recognition that Internet policy issues need to be decided in governance institutions that involve representation not only from governments and businesses, but also from broader constituencies representing the public interest. As public protests surrounding meetings of the World Trade Organization (WTO), the International Monetary Fund, and the World Bank have made clear, economic globalization and accelerating technological change raise significant public policy questions. The debates over global governance that arose in those venues are now also taking place in the IT world, where questions about participation, accountability, and transparency are becoming increasingly urgent. Nonprofits can contribute to the governance process by developing, articulating, and synthesizing noncommercial views, and also by providing leadership, resources, and public-spiritedness. The voices of developing nations and civil society need to be heard, and they must be able to participate with equal dignity in global Internet governance if they are to successfully influence Internet policies or, if not, at least accept those policies as legitimate. All three sectorsgovernment, business, and nonprofitfrom both developing and developed countries need to have seats at the table when Internet policy is made. Democratic governments provide public accountability and possess enforcement and oversight capabilities; the private sector offers technological expertise and a driving culture of innovation; and nonprofit organizations, which are less bureaucratic than governments and less commercially motivated than businesses, provide their own expertise and inspire confidence through their focus on the public interest. No single institution or sector is equipped to handle the task on its own. Finally, Internet governance structures must usher in improved openness and accountability. Nontraditional bodies (such as the Internet Corporation for Assigned Names and Numbers [ICANN], the World Wide

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Web Consortium, or trustee) that engage in Internet regulation and oversight have arisen in recent years, but their decision-making processes are too often both inaccessible and unaccountable to those most affected. Ultimately, achieving transparency and accountability is in an institutions own self-interest. Establishing clearly the scope of authority of a governance organization and the rationale for its actions increases its effectiveness and bolsters its credibility.
I THINK ICANN

The current debates about ICANN are a harbinger of future dilemmas of Internet governance. ICANN remains the frontier institution and the test case for global governance in the IT sector. The U.S. government created ICANN in 1998 as a private, nonprofit corporation to regulate the Internets unique identifier systems, including the domain name system (DNS). This may sound like an arcane topic, but the DNS is vital to the Internets operation. It is an instructive example of the kind of seemingly technical issues that have major economic and policy implications needing to be addressed through effective governance models. For example, whoever controls the DNS will determine what new suffixes, such as com or org (known as top-level domain names, or TLDS), can come after the dot in Internet addresses. ICANN is also slated to take control of the root-server system, the authoritative database of all TLDS and the means by which individual computers are able to find Web sites or Internet addresses. In the words of ICANNs Committee on Evolution and Reform, ICANN serves as the global Internet communitys open policy-making forum for these general-purpose TLDS and therefore offers dispute resolution, business models, and mechanisms for local community participation and policymaking. When ICANN recently chose new TLDS, however, it never explained or documented its decision-making process. Representative Edward Markey (D-Mass.) of the House Telecommunications and Internet Subcommittee complained, Events at the Vatican are shrouded in less mystery than how ICANN chooses new domain names. Although ICANN was created by the U.S. government, no government official from any country has a seat on the organizations board; governments play, at best, only an advisory role. Recognizing the wide spectrum

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of groups with a stake in the Internet, ICANN has created a decentralized structure of supporting organizations, advisory committees, working groups, and task forces from which it aims to distill agreement about the Internets future direction. It was also called on to involve ordinary users in its work in an unprecedented manner. In 2000 ICANN held direct elections for almost half its board of directors, theoretically allowing anyone in the world with an e-mail address to vote. As the first election of its kind, it was not particularly successful because it had severely limited resources and because there was little consideration of what constituted a legitimate constituency or adequate representation. In fact, the ICANN election demonstrated the impossibility of securing genuinely global representation through direct elections. But, importantly, it did succeed in establishing that there are public policy implications of ICANN decisions and that adequate representation of the public interest is needed. In February 2002, ICANNs own president, Stuart Lynn, joined the chorus of critics who complained that the organization was not sufficiently open or accountable to the vast global public it serves. Lynn declared that ICANN was overburdened with process, lacked necessary funding and participation from crucial stakeholders, and was in danger of failing its mission if it kept to its present course. Lynn proposed shrinking the size of the ICANN board, increasing its authority, and scrapping direct elections in favor of government representativesprompting long-time ICANN critic Professor Michael Froomkin to gibe, It is strange that ICANN, which was created to save the Internet from governments, is now turning to governments to save it from the Internet. The review process following Lynns proposalincluding congressional hearings, the ICANN Committee on Evolution and Reform, and the actions of the board itselfillustrates the challenges in moving toward a more accountable governance structure that will represent all stakeholders. The process to date has moved slowly, produced thin results, and emphasizes the need for greater attention to the course of the transition to better Internet governance. ICANNs credibility as a global manager of critical parts of the Internets infrastructure depends on the boards ability to ensure that all the various private and public interests are represented. Government involvement is one step toward providing public-interest representation but is insufficient on its own. Only with truly broad representation on its boardincluding nonprofit organizationscan ICANN adequately address the crisis of le-

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gitimacy that plagues it. As most observers would agree, ICANN, in spite of being organized as a private, nonprofit corporation, still performs public trust functions. If ICANN is not to become a governmental entity, then it must implement a better system of decision-making and must not abandon the goal of ensuring public representation. Furthermore, ICANN must take steps to bolster transparency and accountability. These steps should include some kind of public oversight by politically accountable officials; development of due-process principles and clear, publicly available procedures for the resolution of complaints; public disclosure of its funding sources and budgets; staff and board members who are held accountable to a clear set of professional norms and standards; open meetings; and documentation of the rationale for ICANNs policy decisions and actions. These challenges were recognized in the amended September 2002 memorandum of understanding (MOU) between the U.S. Department of Commerce and ICANN. The MOU extends ICANNs mandate for one year and provides for heightened scrutiny of its accountability, transparency, and responsiveness to Internet stakeholders. Over the next year, ICANN will need to show substantial progress if it is to gain the confidence of the Internet community and warrant its continued role in it governance.
THE ROAD AHEAD

Any organization that attempts to make global IT policy must encourage world-wide public participation. Some international policymaking bodies have begun trying to engage broader constituencies. The World Intellectual Property Organization, for example, has assisted stakeholders that have limited or no means of participation, providing them with training, information, equipment, and support. The WTO helps promote developing-country participation in governance through regular training sessions on trade policy in Geneva; technical cooperation activities, including seminars and workshops in various countries; and Trade Reference Centers for more than 75 poor countries, which provide trade ministries with the IT required to access the WTO Internet site and other trade-related sites, including electronic databases. Whereas there was little possibility for direct public involvement in WTO proceedings prior to the 1999 Seattle protests, today the organization is trying to broaden participation through explicit outreach to individuals,
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including more transparency and more information posted on the Web. In addition, interested parties may now submit comments to the WTO. These developments are a welcome start, yet much remains to be done. Take TRUSTe, a nonprofit entity substituting for government in certifying Web sites privacy policies. When Yahoo abruptly changed its privacy preferences for customers without their consent, TRUSTe allowed Yahoo to continue to carry its trustmark without being held accountable to users who relied on the seals integrity. In contrast, under the safe-harbor provisions negotiated between the United States and the European Union, the self-regulation of corporations will be backed by the enforcement powers of governments. These safeharbor provisions were drafted to bridge the gap between divergent U.S. and European approaches to privacy protection. It is too soon to tell which system, that exemplified by TRUSTe or one based on the safe-harbor provisions, will be most effective. The bottom line, however, is clear: increasing the perceived legitimacy of international governance institutions and regimes demands greater accountability and transparency. The Internet has become part of the mainstream, and therefore mainstream governmental institutions will be expected to step in to protect people from harm and encourage innovation. But government cannot do this alone without the know-how and creativity of both the business world and civil society. A pluralistic and broad-based model is needed. It will be difficult to create the norms and institutions required for different sectors to work together in equal partnership, yet experiments such as the G-8 Digital Opportunity Task Force and the United Nations Information and Communications Technologies Task Force already show promise. Both were set up by governments but are led by a mix of government, business, and nonprofit organizations from the developed and developing worlds. Making fair and effective public policy in our networked society is an enormous challenge, and one that will not be overcome simply by recognizing the inherent complexities of the process. The road ahead may not be easy, but keeping the global public interest at the forefront will steer Internet governance in the right direction.
Reprinted by permission of FOREIGN AFFAIRS, (Volume 81, Number 6, Novermber/December 2002). Copyright (2002) by the Council on Foreign Relations, Inc.

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SECTION II

NATIONAL AND REGIONAL E-STRATEGIES

Working Group II of the United Nations ICT Task Force

National & Regional E-development Strategies: A Blueprint For Action

Prepared by the United Nations Development Programme to inform the deliberations of the National and Regional e-Strategies Working group of the ICT Taskforce

SYNOPSIS (1) The focus of e-development strategies is to enhance development through effective deployment of information and communication technologies (ICT), putting in place the conditions necessary to achieve these ends. (2) e-development strategies are an evolving process not a fixed output Drawing on lessons learned from our collective experiences in e-development strategies, this note outlines 10 steps that can be seen as enhancing the success of such an endeavour and learning process. These cover areas of action and potential collaboration between stakeholders at the global and national levels. The approach outlined in this paper views national e-development strategies as an interactive and flexible process rather than as a fixed output. Further, the steps are not prescriptive. Rather they provide some useful principles that can be followed, with the assumption that countries will tailor them to respond to their realities and not necessarily retrace all the steps of those who have gone before. The paper has two primary audiences: all those interested in the development and implementation of national e-development strategies; and national
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governments and their partners currently implementing e-development strategy initiatives who would like to review their e-strategy approach. (3) The results that can be achieved depend on the specific objectives, comprehensiveness and the nature of approach adopted in the e-strategy

Analysis of past e-strategies indicates that the development impact and the results achieved, have varied in relation to the focus and role assigned to ICT (relative weight on ICT as enabler vs. the ICT sector), the degree of holism or consideration of cross-sectoral elements and linkages, the extent to which the strategy draws on the inputs and involvement of all the different stakeholders as a process as well as the enabling conditions and resource mobilization environment.
(4) New thinking about roles and responsibilities, models and partnerships

The paper also suggests that there needs to be close linkages between strategy development, resource mobilization and business models. This is true particularly in the present economic environment, given the slowdown in private investment flows and the overall growth of economies, so that countries will need to think of enabling conditions, strategies and resource mobilization anew, as well as collaborate with the private sector on the basis of new business models.
T E N E - S T R AT E G Y E S S E N T I A L S

Convinced by the potential of information and communication technologies (ICT) to enhance national and regional development opportunities, and being aware that telecommunication and IT sector reforms by themselves were insufficient to realize this potential, a number of developing countries have embarked on formulating and implementing e-Strategies or ICT for Development (ICT4D) strategies. Many have yet to do so, and are trying to understand what needs to be done and to get a clearer sense of the results that can be expected. In developing e-Strategies, countries do not necessarily retrace all the steps of those who have gone before but adapt their strategies to new environments and opportunities. For both developed and developing countries, e-strategies are thus an evolving process rather than a fixed output that is defined once and for all. In analyzing past national and regional

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e-strategies, impact is seen to vary according to the approach followed. Strategies can be differentiated along some of the following:
(a) Degree of Integration of Telecom in e-Strategies: Few countries have ICT ministries that comprehensively address the increasing convergence in technology platforms. (b) Digital Divide as opposed to Digital Opportunities for Development Focus: Strategies are only slowly evolving from a largely connectivity-centered focus on the digital divide to a more holistic development focus that concentrates on the deployment of ICT. (c) Awareness of the Networked Economy and Society as Opportunity and Challenge: ICTs have helped to underpin the process of global integration through the creation of a networked economy and society. This has transformed the ways in which organizations, services, production, and markets are organized, creating new opportunities and challenges for those not yet networked.8 (d) The distinctive focus on ICTas a sector and/or enabler of development: Development of the ICT sector is neither essential for deployment of the technology nor can all countries benefit from developing a sector. A helpful typology of National e-development Strategies is as follows:
National Approaches to ICT

ICT as a Sector

ICT as an Enabler

National Capacity/ Domestic Market Focus

e.g. Brazil, India (1960s-1980s)

Export Market Focus

e.g. Costa Rica, India (1990s)

Global Positioning Focus

e.g. Malaysia Ireland

Development Goals Focus

e.g. Estonia, South Africa (1990s)

Source: p. Final Report of Digital Opportunity Initiative, a partnership of UNDP, Accenture & the Markle Foundation http://www.opt-int.org/ 8. A focus on the knowledge or information society alone does not capture the network induced transformations as well as implications for nation states of cross-national global networks, focusing as it does on the rising importance of informational content related transformations. For some, this distinction is akin to the difference between a mainframe and a distributed networking view of the worlda distinction that becomes ever more critical with the spread of the Internet.

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(e) Implementability of e-Strategies: While falling costs and an increase in technology options are making ICT more accessible than ever before, difficulties in securing investment funds and private sector involvement remain in the wake of the dotcom and telecom crashes. This increases the premium on well-defined, costed and implementable strategies, as well as the need to think of new partnerships, business models and implementation strategies in terms of ODA.

e-Strategy Essentials / A Blueprint for National and Regional e-Strategies This blueprint highlights 10 key steps for conceiving, planning, and implementing e-Strategies.9
Processes to enhance Global Inclusion Donor Cooperation & Resource Mobilisation

Telecom-IT Cohesion Regional Integration

Poverty Reduction Goal

Implementation Modalities Prioritisation Programmes Holistic Framework Multi-stakeholder Strategy Vision & Leadership

Bottom Up Approaches

I. A Clear Vision for the national e-strategy

The vision needs to be forward looking but achievable The vision needs to be able to allow people to be hopeful by capturing the potential of ICT to change their lives and create new development opportunities. At the same time it needs to convince people that the actions it proposes are achievable. However, many vision statements are all encompassing in scope without being strategic or actionable. The vision needs to be demand driven and development focused

9. This draws on work done by UNDP with the Markle Foundation in the context of the Global Digital Opportunity Initiative.

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ICT is still not at the forefront of development thinking nor is it integrated into development strategies. To be effective, visions for development, strategies for poverty reduction and for ICT development need to be coherent and complementary. This can help ensure that the efforts to harness digital opportunities does not run counter to meeting the countrys broad development goals and that poverty reduction strategies, in turn, benefit from the harnessing of digital opportunities.
The vision needs to draw on champions at all levels and mesh with bottom-up approaches While the vision needs to be articulated at the highest levels of government, it needs to be inclusive and create the space for a range of actors to own the vision and participate in the development and implementation of the strategy. It needs to be inclusive in substance as well as the process of developing it. De-politicizing the process or making it more inclusive does not mean only reaching out to members of the opposition and other political parties but undertaking consultative process with all the social sectorsbusiness,10 government, civil society/community.11 To be effective, consultations should not be undertaken only in the context of sectors, but also on a more cross-sectoral basis so as to secure broad commitment. National ICT taskforces and forums with regional consultations are one way that the different stakeholders can come together to provide inputs, advice and, later, to monitor the implementation process.12 In order to avoid consultation fatigue stakeholders also need to
10. For a private sector perspective on Nepals participatory development of its ICT policy, see http://www.panasia.org.sg/news/rnd_st/ict_rnd04b.htm 11. For example, see framework for social sector consultations on ICT in Bolivia (Global Digital Opportunity Initiative). 12. Countries have varied in the format for forums and consultations: (i) social sectors (civil society, business, ICT sector etc) and/or (ii) themes (policy, infrastructure and access, capacity development, as well as education, health). In the case of social sector consultations, there is often a subtle resistance to involving civil society organizations or undertaking public consultations. Not only is it critical that the vision reflects the needs of multiple stakeholders but in many countries civil society organizations and NGOs have technical knowledge and implementation capacity to contribute to the dialogue. In many cases, the initial introduction of ICT came through community and academic networks, with the first private sector ISPs also coming out of this self-same background (e.g. Estonia, Angola, Brazil).

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be informed about the outcomes and to feel that these reflect the consultation process. To be action oriented, the task force should have a good mix of leaders, opinion makers and those who can assist with the actual work, developing the consultative inputs into the vision strategy document.13 There have also been concerns that the vision, particularly in terms of content as well as mechanisms to enhance access, particularly in the context of rural or under-served areas, does not build on work that is ongoing on the ground. A critical task is to ensure that the content of the vision reflects this potential so that the policy implementation framework can also address this.14
The vision needs to be coupled with political will and mechanisms to bring about policy change Policy change is difficult. Highlighting initiatives and emerging opportunities that could not fruitfully take off or expand beyond the pilot stage without a policy change can be used to make the point. In addition there needs to be a process to address tradeoffs, as with any policy change there will be both winners and losers. Strategic win-win solutions to minimise losses and external support may need to be leveraged to create momentum and reduce the potential for the implementation of ICT strategy to be held up by the status quo.15 The process needs to be fair and transparent but also strategic in building broad ownership and creating momentum to move in the desired di
13. To be inclusive, special efforts may need to be undertaken for regional consultations as well as reaching out to typically under-served areas and constituencies. Issues relating to ICT for Development strategies should also be integrated into poverty reduction strategy and PRSP consultations. 14. This has a number of different dimensions: (i) communities being able to contribute to the content, shape and form of the Information Commons (ii) policy space for community networks and SMEs, small entrepreneurs to respond to the needs of local communities in the context of national telecenter type initiatives (e.g. Botswana, Senegal, Panama, Peru) or to draw on grant programs to support community networks [e.g. Canadian Access Program (CAP) run by Industry Canada, and the American Telecommunications and Information Infrastructure Assistance Program (TIIAP)]. 15. Many countries rely on telecom and interconnection charges to finance substantial portions of their social budgets and may be loath to give up on this revenue source at a time of declining revenues or adverse economic conditions.

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rection. Here too it is critical to de-politicize both the leadership and the process as much as possible.
The role of government in fostering change by example is important Demonstration of digital opportunities has come from all the sectors private sector, civil society and government. However, public support for incubators, partnerships and innovative initiatives can be critical in demonstrating the potential of ICT and new ways of doing things. Momentum can also be created by demonstrating clear benefits, leading by example, streamlining and enhancing public service delivery and interactions of the private sector and civil society with government (eprocurement, forms and registrations etc.)16 Given their relatively greater economic weight in the economy, such e-government and e-governance initiatives can stimulate both deployment of ICT as well as market opportunities for ICT products and services.17
II. A Multi-Stakeholde r Approach to Enhance Res ults

An e-Strategy requires the inputs of a number of different actors not only in the development and refinement of the vision but also for successful implementation. The adoption of a multi-stakeholder consultative and cooperative approach in implementation can assist in:
Aligning the goals, incentives, roles and responsibilities of the diverse stakeholders and providing the space to negotiate tradeoffs and propose win-win opportunities,18

16. Many countries have launched important e-government initiatives as critical components of their e-strategies. See Pacific Council (2002) Roadmap for E-Government in the Developing World for useful guidelines. 17. E.g. South Africas first private sector e-procurement initiative, designed to bring small and medium black empowerment enterprises (BEES and SMES) into the mainstream economy, created the opportunity for many SMEs to develop e-capacity. 18. Actors are often likely to undertake actions and propose solutions in an environment of collaboration and risk-sharing that they would not on their own.

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Ensuring that the strategy or related action-plans are realistic, sustainable and responsive to both local needs and conditions.19 Facilitating close co-ordination between stakeholders as well as different parts of the government not only to prevent duplication of efforts, but also to achieve positive synergies through clustering of activities, and the spreading of risks through the implementation of public-private partnerships.

Often, there are a variety of differing visions emanating from various parts of the government that do not mesh, resulting in duplication and diminished results.20 When implementation responsibility is assigned solely to a communications or IT ministry, it often has the potential to lead to other parts of government pursuing their own separate e-Strategies with little coordination, or the potential to address the cross-sectoral elements. Thus, it is preferable to have some sort of inter-departmental or inter-ministerial mechanism to address this.
III. A Cross-Sectoral Holistic Strategy

Conditions necessary to enhance ICTs potential are often not high on the agenda or have not been put in place for lack of a framework to identify and address them. The typical e-assessments that countries use in place of a framework, function more as a benchmarking tool, pointing to broad areas for improvement rather than providing a structure to develop a strategy. While some sort of e-assessment is a necessary step in the development of a strategy,21 it does not substitute for a holistic framework. Some countries also begin directly with actions to be pursued by social
19. See see Berrara (2001) for changes that were introduced in the implementation of Panamas information access community centres program, following the integration of community approaches that enhanced its responsiveness and even viability. 20. A number of e-strategies are languishing because of ministry coordination issues or because the particular communications ministry appears to be unable to address regulation issues in keeping with broader national priorities. This necessitates both transitional mechanisms as well as consultation.

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sectors (government, business, civil society) or according to thematic area (education, health, e-commerce, tourism, agriculture). Proceeding sector by sector, fails to assist countries in identifying cross sectoral linkages or timeframes,22 or how to prioritize thematic sectors, to determine how to utilize scare resources (mostly human capacity, finance and infrastructure) across sectors and/or how to create multi-sector/multi-purpose solutions. A high-level framework (applicable in structure to sector specific approaches thereafter as well) is needed to identify:
Cross-sectoral elements and linkages that need to be addressed; and Strategic and priority actions that need to be undertaken together or within a specified sequencing and timeframe to respond to cross-sectoral complementarities and strengthen synergies. The framework also helps in identifying the pitfalls of adopting a focus on one or other critical area alone.23

The non-prescriptive framework proposed by the Digital Opportunity Initiative (see below) not only points to such a critical set of factors that need to be addressed but also outlines an approach for the development of a national e-strategy that harnesses synergies to increase sustainability as well as dynamic outcomes.

21. For a good assessment of e-assessments see, Bridge.orgs guide http://www.bridges.org/ ereadiness/comparison.html. and CIDs Global Information Technology Report (GITR) 2001-2002: Readiness for the Networked World 22. See the Commonwealth Initiative for Informatics Strategies Guidelines for ICT Policy and Planning (2001), which has cross-sectoral linkages as a key element of its sectoral approach. This is useful but not sufficient in that it does not assist at a more macro level 23. A focus on IT capacity building without enhancing the absorptive capacity can result in increased brain drain; a singular focus on laying-out the pipes and putting in place infrastructure without addressing demand creation can be un-sustainable. . See: final report of the Digital Opportunity Initiative, chapter 3 at http://www.opt-init.org/ In this context, a focus on the e in the e-commerce without the enabling conditions can also fail. See IDS Briefing on e-commerce

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 New Collaborative Partnerships Intermediaries and Technology Users Knowledge Workers Entrepreneurs Strategic Alignment Coordinated Action Vision and Leadership

Strategic Compact
Human Capacity

Relative Ubiquity Strategically-Focused Capacity

Transparency and Inclusion Regulatory Framework Institutional Capacity

Infrastructure

Policy

Finance and Credit Fair Tax Regime Demand Stimulus Access to Global/ Local Markets

Enterprise

Content & Applications

Relevance and Useability Language Compatibility Affordability Development Applications

Efficiency and Reach of Local Business Property Rights and Commercial Law

Source: p. Final Report of Digital Opportunity Initiative http://www.opt-int.org/

IV. Realistic Priorities for e-Strategy Actions & Programmes

Identify programmes with a crosssectoral impact that can lead to a development dynamic (DOI)

Outline necessary incentives and enabling policy requirements in the holistic framework

Realistic Dynamic Sequenced Actions

Identify realistic, fundable and implementable short, medium and long-term programmes
Size, sequence and phase initiatives to enhance sustainability, fundability and implementation

Source: Based on work undertaken in the context of the Global Digital Opportunity Initiative

The Task of prioritization has technical, social and political dimensions. To be implementable and effective, national e-Strategies need to: Define and build political support for priority areas and actions,

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Outline a range of scenarios and undertake evaluation of policy options, Provide a realistic and transparent costing of proposals and implementation modalities, and Outline a realistic timeline and process for implementation.

However, these tasks can be complicated by:

(i) Political pressures to support pet projects and the tendency to add rather than to prioritize; 24 (ii) Limited managerial and technical expertise and experience in costing and evaluating alternative growth scenarios can reduce the extent of prioritization, and worse still, result in potentially ill-advised and/or ill-timed activities in priority areas; and (iii) Well-intentioned attempts at pursuing initiativespilots and anything to make a difference approach - can absorb the institutional implementation capacities of national governments and work against priority setting on their part as they attempt to meet perceived donor priorities rather than involve donors in supporting nationally determined ones.

The prioritization process can be enhanced by:

(i) Making the creation of political support to address key development objectives a priority (ii) Deploying a holistic framework to maximize complementarities and synergies and to outline actions, phase activities and sequence priorities to meet the stated development objectives. (iii) Effectively utilising technical & managerial human capacity and infrastructural resources by working on a limited set of priorities. (iv) Prioritizing the strengthening of multi-purpose development management capacity to aid implementation and the next round

24. This implies that the consultation process needs to be designed to involve stakeholders not only in identifying priority but also in negotiating which ones take precedence and in developing solutions to address resource constraints. See de Sousa Santos [1998] for examples of good results obtained from participatory budgeting exercises.

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of prioritization rather than only focusing on pure IT capacity which, by itself, often results in brain drain. (v) Securing the assistance of development partners support efforts in prioritization. In this context, support for the development of technical capacity to cost and weigh alternative policy and program options can also be of critical importance; and (vi) Creating national stakeholder and development partner support for implementation through consultation and participatory involvement at the design stage of the strategy.25 (More on this below.) Demonstrating How it can be done is critical Cross-sectoral catalytic initiatives that both demonstrate how best to utilize limited resources and strengthen capacity networkscreating a mesh to provide a grid of underlying support for an expanded set of priorities in the subsequent time periods is of great importance.26
V. Simplified Implementation Modalities

Clear actions, roles and responsibilities and timelines Many e-strategy or e-policy documents begin with assigning roles and responsibilities by sector (public, private and civil society). This type of approach does not make it easy to see how the different actions fit together or what the sequencing and timeline of the actions should be. A cross-sectoral holistic framework should be used to identify the priorities for actors as well as the timeframe for their actions. Without prioritization and a re25. An inclusive and consultative approach does not have to result in a shopping list. It can be used to get feedback and to articulate a set of goals and realistic priorities, following which, a range of well-costed, designed and phased (timeframe) proposals conforming to the priorities can be developed and used to encourage creative partnerships, solutions and to mobilize resources for implementation. 26. See Mozambique provincial digital resource centres. The PDRCs are expected to operate as local hubs, fostering intra and inter-provincial networks. See http://www.infopol.gov.mz/

divulgac/estrateg.htm Annex 1 on signature programmes. Also see Roman & Colle (2002)
for hightlighting the importance of clusters or networks of telecentres.

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 Clarify roles and responsibilities and implementation potential.

Encourage mainstreaming of ICT in ODA Support the move from stand-alone initiatives towards co-operation in nationally prioritized programme areas through involving partners in the development of the strategy.

Promote creative implementation and partnership solutions

Encourage international & national private sector mentoring, partnerships and seed funds

Promote South-South cooperation Support development of national capabilities and locally relevant digital opportunity technologies

Source: Based on work undertaken in the context of the Global Digital Opportunity Initiative

alistic timeframe for actions, assigning responsibilities will be descriptive rather than actionable. Action plans should have incentive structures and supportive policies where required to achieve results,27 and recommendations for action should meet goals of the strategy.28
Flexibility in roles of the different actors and support to bottom-up approaches

In many developing countries, SMEs, NGOs, and community organisations29 may be more effective in delivering services and solutions at the local level than an exclusive reliance on large external or national providers

27. In the case of a particular developing country, ISPs licensed to provide services in the rural market indicated that they were unable to meet specified targets because even as final access prices had been lowered by the government, basic licensing fees and connectivity charges for the ISPs had not. 28. While greater competition and clearer regulations appear to be the key, there is no consensus on what constitutes a good regulatory environment that is applicable to all countries. Rankings for network readiness are not unequivocal for conventional telecom policy implementation, see Harvard/CIDs Global Information Technology Report (GITR) 2002 Chapter 2 and 12. 29. For a roundup, see: Local Community Networks: The Human Face of the Internet Economy A Report on the Community Networking Summit in Barcelona, Spain 2000 http: //www.isoc.org/oti/articles/0201/rao2.html

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might bring about.30 A supportive policy environment and partnerships between government, private, academic, and social sectors can enable community networks to thrive. This role can be significantly enhanced by recent developments in technology and allow for solutions (e.g. wireless) which are cheaper and much less scale-intensive. Yet investment subsidies and loans in terms of major volumes of assistance are typically offered to large-scale investorsbut not to local or SME sectors - to invest and/or provide services in less-profitable areas. 31
VI. National and International Cooperation and Partnerships for the Prioritized Nationally-Owned e-S trategy

In order to facilitate these processes, there are a number of related issues that need to be addressed: Streamlined and transparent policies, open procedures and standards to secure stakeholder support in meeting e-strategy goals and to lead by example. This involves the need to address a number of related issues:
To create a supportive enabling environment for development,

30. The classic example usually adduced in support of the small is beautiful and viable is that of Grameen village phone from Bangladesh. Grameen uses GSM technology and relies on poor village women who are enabled to provide phone services has demonstrated that rural sector and the poor can constitute viable markets for telecom services at the same time that they provide livelihood opportunities for the poor. In fact profitability is often much higher: Telephones in the Grameens Village Phone program bring in 3 times as much as urban phones (an average of $100/ month versus $30/month). See http://www.telecommons.com/villagephone/section3.html, http: //www.comminit.com/11-342-case_studies/sld-643.html and http://www.opt-init.org/framework/ pages/appendix2Case2.html . Also see CDI (2001) for Brazil. 31. Policies aimed at reducing private sector risk (e.g. providing for guaranteed rates of return, concessions, etc. in water, power and telecommunications utilities privatizations) and encouraging investment do not necessarily result in the competitive provision of services or meeting goals to extend access in a sustainable fashion particularly in rural areas. See issues pointed to in Willenius (2002)

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and to promote confidence in the effectiveness, efficiency, transparency and accountability of government and other actors, To raise awareness of opportunities and encourage participation and investment through the assurance of fair treatment and predictability of government actions, To create opportunities for a range of development stakeholders to participate and support e-strategy goals, To foster and strengthen cross-linkages with other initiatives and enhance replicability at reduced costs through the use of open standards, and To encourage and secure support from other stakeholders in providing information to enable realistic evaluations of on-going initiatives, programmes and investments.

A move from obtaining support for stand-alone initiatives towards enhanced co-operation in nationally prioritised programme areas. Until recently, development assistance was typically programmed through stand-alone projects, often without any co-ordination mechanisms between them. Increasingly, various agencies are moving towards the adoption of sector-wide or more programmatic approaches that can support the developing governments own strategies. To make this work, changes are required on the part of both governments and partner agencies to standardise procedures so as to generate efficiency savings, strengthen government capacity and national ownership of assistance. Examples of actions include, joint donor missions for the identification and proposal of projects as well as donor cooperation at the country level,32 adoption of common forms for project proposals and feasibility studies, common project appraisal criteria, standardized procedures for procurement and monitoring and synchronization government and donor project cycles, etc.33

32. E.g. in Ghana, Ministry of Education officials hosted 54 separate donor missions in one year, which can be seen as involving a waste of public resources. See www.ibis.dk/arkiv/policy/uns/buchert_response.doc 33. See: http://www.undp.org.vn/undp/docs/2001/dcrreport/oda_imp.html and http://capacity. undp.org/focus/dev-industry/.

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Additionally, securing in-country donors participation in national estrategy development from the outset can also assist in strengthening donor and partner support for the national e-Strategies, raising resources and reducing duplication and stress on relatively scare capacity.34 International & national private sector mentoring, partnerships and seed funds Although the direct profitbased role of the private sector is becoming significant in this field, there also appears to be a role for mentoring, partnerships, angel and venture capital and seed-funding,35 which can help expand the market for and viability of ICT in the country over the longer term.36 There are interesting examples of both public and private support and partnerships that can increase the effectiveness and viability of local entrepreneurs.37
34. In some countries there are both formal and informal donor support groups around ICT. In the case of Mongolia, Donor Meetings specific to the ICT4D have been organized in the context of the National ICT Strategy to consolidate donor roles in ICT4D activities and eliminate potential duplication. Burkina Faso had a donor roundtable on ICT for Development in 2001 35. In the case of industrialized countries, this need is increasingly becoming recognized and catered to through incubator arrangements, seed and early-stage fundsprivate or government sponsored (e.g. Eircom Enterprise Fund in Ireland). Donor support has over the years helped to support development of infrastructure (e.g. NSF, IDRC, UNDP support for the development of infrastructure and networking), yet such support to make technologies commercially viable is often missing in developing countries. Inadequate funding is seen as actually derailing some of the promising initiatives that aim to narrow the digital divide. PicoPeta Simputers Pvt. Ltd in Bangalore was set up by four designers who took entrepreneurial leave from their jobs as professors at the Indian Institute of Science in Bangalore to make the Simputer technology commercially viable. Although the Simputer prototype was ready in April 2001, complete with applications as well as the business model, to fine tune them on the field, they need to seed at least 10,000 of these devices into users hands, and for that they need deep pockets! See http: //www.idg.net/crd_idgsearch_861606.html 36. This has been emphasized by the private sector representatives in global forums such as the World Economic Forum (WEF) and the G-8 Digital Opportunity Taskforce. See p.17 http: //www.dotforce.org/reports/DOT_Force_Report_V_5.0h.pdf and http://www.dotforce.org/ reports/documents/63/harder_unga.html and are particularly important in the case of initiatives aimed at supporting SMEs for which support in developing marketing skills, getting access to contacts and seed funds are critical in moving forward.

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South-South cooperation in the adaptation and development of locally relevant digital technologies can also play and important role.38
VII. Global Inclusion of Developing Countries and ICT in ODA

There are a number of issues that have an impact on the development and viability of national and regional e-Strategies with an international dimension. At present, few developing countries are able to directly participate in ongoing global dialogues related to ICT governance on critical issues, which have a bearing on whether they are effectively able to realize ICTs potential and which also have impact on their position in the global economysuch as domain names, unicode39, privacy, security, intellectual property,40 and e-commerce standards amongst others. Many developing countries lack the human and institutional capacity to rapidly adapt and absorb new policy frameworks related to these issues and to make use of

37. In India, a consortium of IT companies including the likes of Sun Microsystems, Compaq Computers, Schlumberger CMS Computers, Datacard Corporation and Pico-Peta Simputers have formed an industry consortium to assist isolated STD/ISD/PCO booths (public phone booths) re-invent themselves as a totally new technology-driven multi-purpose communications powerhouse. See PCOs to reinvent themselvesWith a little help from IT Giants Hindu Business online, February 21, 2002 at http://www.blonnet.com/2002/02/21/stories/ 2002022101980100.htm 38. For examples of a locally designed low-cost computer (Brazil), for low-cost Wireless in Local Loop technology (IIT Chennai / n-logue, India), for a hand-held device with local language capability and applications (PicoPeta Simputer or SIMple ComPUTER, India) cited in UNDPs Human Development Report 2001, see: http://hdr.undp.org/reports/global/2001/en/ default.cfm 39. It is important to establish appropriate mechanisms to review existing codes that were established without proper consultation by legitimate local stakeholders. For the controversy surrounding the character set accepted by UNICODE for Cambodia, see McKinley (2002) 40. See UNESCO (2000) Fair use concept in education, science, culture and communication. Also See CIPR (2002) Final Report on Integrating Intellectual Property Rights and Development Policy.

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ICT to enhance democratic governance and citizen participation in development processes.41

There is a need to activate public, private and multilateral forms of cooperation, innovative partnerships and support. Even though the role of the private sector had begun to increase dramatically in recent years, and the telecom sector in developing countries has been viewed as the new emerging sector for multinational investment, the dotcom and telecom crashes as well as the high debt levels of many industrialized nation telecom corporations, have taken their toll. There has been a decline in the rate of growth of external private sector investment going to developing countries. Strategies to rapidly privatize and liberalize have not necessarily resulted in growth beyond catering to un-met or pent-up demand in already developed urban markets. This has, once again, highlighted the role that external assistance can play in bridging the digital divide in developing countries. This is a role similar to that played by public investment in fostering the early development of the Internet and support to the telecom sector (many are still public utilities or semi-public in the sense of being able to call on public resources) in industrialized countries. The importance of mainstreaming ICT in the overseas development assistance (ODA) strategies of bilateral and multilateral agencies has emerged as an issue at various global forums.42 While it is sometimes still viewed with scepticism as involving tradeoffs with supporting basic needs, there is an increasing awareness of the development opportunities to be derived from a better integration of ICT in ODA as well as the need to support developing countries in using ICT for national development.43
41. CTO/Panos (2002) Louder Voices; Markle (2002) Global Policymaking for ICT; Kumon et al (2001)GLOCOM Consultation 42. Support for donor coordination in ICT as well as for the mainstreaming of ICTD in ODA emerged as actions to be pursued in the context of both the G-8 Digital Opportunity Task Force (DOT Force) as well as the United Nations IT Task Force. See Action point 9 in the Genoa Plan of Action the DOT Force http://www.dotforce.org/reports/DOT_Force_Report_V_5.0h.pdf 43. For a 2001 listing of Donor Information and Communication Technology (ICT) Initiatives and Programmes see OECD/ DCD and IDRC. (2001).

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VIII. ICT to Facilitate Regional Integration / Regional Integration to Facilitate ICT deployment

Integration into an increasingly global economy and society is accelerating through ICT as well as integration of financial markets, and the development of new and reconstituted global production networks. Regional integration is not only a part of this process, but is also as a parallel one, strengthening both markets and economies to take better advantage of global opportunities and adjust to challenges. Integration of markets of small and neighboring countries can be particularly important in the case of telecom as well as other scale intensive investments.
ICT can assist in achieving the broader development goals of regional integration: As an enabler of development, e-Strategies can contribute to achieving national and regional development objectives.44 As a facilitator and medium for internetworking, it is a vital part of facilitating the process dimensions of regional integration itself: (a) decision follow-up and co-ordination; (b) implementation of sub-regional decisions at a national level; (c) communication and participation of the civil society and other stakeholders in the integration process; (d) supporting external and cooperation activities45 as well as (e) sharing information by participating nations that in turn can foster integration.46

44. See role assigned to ICT in NEPAD, http://www.nepad.org/pdf/AA0402301.pdf . Also, the ASEAN is determined to use ICT as a tool for narrowing the development gap and closing the digital divide within and among Member Countries as well as between ASEAN and the rest of the world. See Ha Noi Declaration http://www.aseansec.org/newdata/hanoi02.htm 45. see http://www.isoc.org/isoc/whatis/conferences/inet/97/proceedings/E5/E5_1.HTM 46. Deployment of ICT to enhance transparency and democratic governance is also viewed as critical. ASEAN is utilizing Internet technology as an enabling tool to promote regional integration, and to strengthen cooperation among the member countries. Information networks are being established and databases are being developed in many areas of cooperation.

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It is for these reasons that ICT is often a critical dimension of trade agreements, despite the narrow focus on fostering commerce,47 enabling vital information to be shared that would facilitate flows of investment. Regional integration can create the momentum for standardization and development of cross-border infrastructure

Regional integration creates the need and incentive for developing crossborder infrastructure, mechanisms to streamline the flow of information, goods and services, as well as restructuring and harmonizing of policies and standards (including ICT standards).
This creates both a framework for ICT standards to be adopted, and an infrastructure and policies (ICT and other) that need to be put in place.48 Regional integration also creates a framework for technical assistance and resources to meet regional integration requirements (harmonization) and for narrowing the gap between the development levels of the various regions.49 Cooperation and integration among the regions telcos can facilitate technology transfer, technical assistance and sharing of good practices.50

47. More recently, digital trade involving not only online product sales but also IT services, outsourcing and back office operations 48. e-ASEAN Framework Agreement. Other types of interventionse.g. TRASA (Telecommunications Regulators Association of Southern Africa) seeks to encourage investment in the telecommunication sector by supporting creation of a common enabling environment, i.e. regulation and taxation, for the SADC region. http://www.trasa.org/about/index.html 49. e.g. structural and cohesion funds of the EC to promote harmonious development, particularly to narrow the gap between the development levels of the various regions http: //europa.eu.int/comm/regional_policy/objective1/index_en.htm. Also Phare, an organization of the European Union provided assistance to East European countries to establish the infrastructure they needed to qualify for EU membership, including help with Internet projects. See http: //europa.eu.int/comm/enlargement/pas/phare/index.htm 50. For the example of Caribbean Association of National Telecommunication Organizations (CANTO) work in this regard, see Noguera (1999)

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For many countries that share languages but do not yet have a standardised coding, regional co-ordination can be useful to avoid conflicting standards.51
IX. Telecom-IT Cohesion, Convergence and Low-Cost Cutting-Edge Solutions

Support bringing the Telecom and ICT sectors into national e-strategy policy debates

Support coherence and synergy between telecom and other ICT strategies

IT-Telecom Cohesion and Convergence

Support innovative strategies to implement cutting edge and low cost ICT solutions (open source, cellular, PDA, VOIP, Wi-Fi wireless local area networks etc.)
Support the establishment of transitional mechanisms and incentive structures to facilitate locally customized solutions

Source: Based on work developed in the context of the Global Digital Opportunity Initiative

In the early years, ICT strategies were not very differentiated from telecom liberalization strategies with a focus on access, defined largely as telecom access.52 The development of holistic strategies that address digital opportunities

51. Many Asian languages are shared by more than one countries: for e.g. Devanagari (India, Nepal, Bhutan), Urdu (India, Pakistan), Tai Lanna (LaoPDR, Thailand), Viet Thai (Vietnam, Thailand). While differences in the normal use of one common script are likely, if countries can work together, unnecessary repeated efforts in improving the character sets and/or identifying any important missing characters can be reduced. See http://www.nectec.or.th/it-standards/ mlit99/mlit99-special.html 52. Until very recently, ICT access indicators have tended to still be defined in terms of telecom infrastructure access.

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and the networked nature of the global economy both as a challenge and as an opportunity are fairly recent.53 Convergence between telecom, broadcasting, entertainment and information technologiesparticularly due to the growth of the Internet (i.e. network of networks based on TCP/IP communication protocol) which has been the driving force of convergenceand the global networked economy, has raised a number of issues for developing countries interested in leveraging the potential of information and communication technologies:
How to increase connectivity and accessparticularly rural connectivitygiven the range of technology options while ensuring fair competition and adjusting current universal service obligations of fixed line telecom providers? How to determine best practice regulatory institutions and processes and move from separate legislative and regulatory frameworks for telecom, broadcasting, cable TV, Internet and satellite communication towards telecom-IT convergence ministries and regulatory authorities?54 How to ensure fair competition and increased investment into the Telecom-IT sectors? This issue is complicated further since

53. For some selected and not therefore not comprehensive examples of ICT focus see: UNDP focus on holistic e-strategies to address development, see http://sdnhq.undp.org/it4dev/trustfund.html; ITU Foster the development of Internet Protocol (IP) networks and services on all types of telecom networks & integrate the development of IP with the rollout of societal applications http: //www.itu.int/ITU-D/e-strategy/;World Bank Policy Division of GICTdesign and implementation of new policies with emphasis on Sector reform, Internet, convergence, e-strategies, access and applications http://info.worldbank.org/ict/policy.cfm CIDAs support to the ICT sector , use of ICTs to enhance other sectors and networking. Also see OECD/DSD & IDRC (2001) 54. Few countries have adequately addressed convergence at the policy level. For exceptions, see Malaysian Communications And Multimedia Commission Act 1998 http://www.cmc.gov.my/ akta589/eng/legis_mcmc1999_bi_pg3.htm. In December 2001, the Indian government announced the merger of the ministries of IT and C. The new merged ministry has three departments, the posts, IT and telecom with common policy, planning and implementation divisions, while the finance divisions would continue to remain separate. Its communications convergence bill introduced in Parliament in August 2001 does not appear to have been passed yet. See http: //www.stampsofindia.com/Content/News/53.htm

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many countries are currently in the process of liberalizing/privatizing their telecom networks and thus have an interest in securing profitable returns on investment made in the sector.

Most countries have proceeded to open up competition in a staggered way beginning with mobile and cellular services and then moving to increase competition in fixed line and international connectivity. However, policy change has been accelerated in countries like India when constraints of capacity in international data communication were seen to hamper the growth of software or IT service exports.55 Similarly technologies such as VOIP56 (Internet telephony or more appropriately voice communication over IP networks) have the potential to dramatically reduce the cost of communications. Change has come about either when it became inevitable that the dominant telecom provider could no longer stop such usage, saw opportunities to benefit itself or where VOIP facilitated the delivery of IT services (e.g. call center operations, customer service, and other IT services).57 Countries can benefit by being proactive in deploying such technologies to meet access targets and enhance deployment of ICT in all sectors58 at the same time that they determine a reasonable pricing policy as well as how best to make available value-added revenue streams and services (e.g. fax, multimedia and integrated network services over IP).
55. http://www.mit.gov.in/itconf/firstnationalconference.htm The Indian government moved quickly to liberalize the framework for setting up satellite gateways, de-monopolized undersea optical fiber connectivity and the selection of international ISP partners. 56. Treatment is typically not clear: Should calls on one technological platform be treated differently from calls on another particularly when there is increasing integration? How it is treated not only has competition implications for incumbents, but also for assessments towards contributory regimes where obligations are associated only with voice traffic, in particular contributions towards implicit cross-subsidies or explicit universal service funds. 57. See Africa And VOIP: The Genies Out Of The Bottle And Its Going To Be Hard To Stop Balancing Act #67 http://www.balancingact-africa.com/news/back/balancing-act_67.html 58. Previously, separate networks were required to handle traditional voice, data and video traffic. By blending voice, video and data and utilizing a common transport for each, it effectively merges three networks into one. The benefit being manageability, lower costs for services and support and new tools for collaboration ultimately leading to increased productivity.

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The cost of deploying ICT has been dramatically reduced with the emergence of wireless technologies that are being deployed at an increasing rate59 on account of reduced infrastructure development costs.60 Such technologies can also provide flexibility and in some cases bottom-up approaches to deployment (where spectrum allocation policies permit).61 62 A related issue that developing countries need to address is policies on software, as prices of hardware have continued to fall whereas proprietary software costs (including licensing, upgrades and support) can constitute significant burden.63 Developing countries are finding that a solution to obtain software at affordable costs, while also addressing the typically high rates of piracy, is to deploy open source software. Such software, around since the beginning of the internetin fact the foundation for many of the mission-critical applications underlying the internet64, has proved to be robust, cost effective for replication (no licensing fees since it is not proprie59. 802.11 (WiFi) networks provide wireless Internet within 200 feet or so of an 802.11 transmitter. For WiFi in Ghana, see Linux WiFi Router brings in Subscribers for Ghanas largest ISP http://www.linuxjournal.com/article.php?sid=6017. In India, CorDECT (wireless in local loop) is being used to provide Internet and voice connectivity to 250 community kiosks that offer these services to over 700,000 people in rural India. See http://www.idg.net/crd_idgsearch_861606.html, http://www.tenet.res.in/rural/dhar.html and http://www.indusscitech.net/ ashokJ.htm; a 802.11 compliant network experiment is underway by Media Lab Asia (MLA) http://www.idg.net/crd_idgsearch_861606.html 60. See Harvard/CIDs Global Information Technology Report (GITR) 2002 Chapter 8 Best and Macalay community access is rural areas: solving the economic sustainability puzzle and N-logue ( ). 61. Modeled closely on the original nature of the Internet, which grew by chaining together separate computer networks, the technology known as wireless mesh routingis being rapidly embraced in the United States as well as in the developing world, where it is viewed as a low-cost method for quickly building network infrastructure. See http://www.nytimes.com/ 2002/03/04/technology/04MESH.html 62. For a list of wireless community networks worldwide, see: http://www.personaltelco.net/ index.cgi/PersonalTelco/ 63. For e.g., a bare-bones computer system from Microtel Computer Systems, adequate for everyday use sells for just $199 in the US. The reason is that it comes with the Lindows operating system, a variant of Linux. An all-but-identical system, with the only difference being that it runs on Windows XP, retails for $299 so that Windows software represents about a third of the retail

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tary) and good from the point of extending the reach of ICT.65 Many countries have thus begun to explore options to use open source software.66
X. The e-strategyA Focus on Achieving Development Goals

Support policy coherence between ICT & national development policies

Support deployment of ICT to create new economic and social opportunities at the local level

Deploy ICT to assist in reaching Millennium Development Goals

Promote greater transparency and facilitate participation in the formulation of national poverty reduction strategies & PRSPs

Deploy ICT to secure increased efficiency & accountability in the delivery and reach of public services

Source: Based on work developed in the context of the Global Digital Opportunity Initiative price of the cheapest PC. See http://www.businessweek.com/@@IRN4BWQQxL6YwQwA/ premium/content/02_37/c3799002.htm . In developing countries, proprietary software is also usually more expensive than the US. For instance, the Windows Office Suite can cost as much as US$800 in Kenya in a continent where the average annual per capita income is less than US$250. See http://www.wired.com/news/technology/0,1282,38749,00.html. 64. http://www.tux.org/~niemi/opensource/customer-case.html 65. See http://www.opensource.org/advocacy/ for the case for open source. The arguments for using Linux/open source are usually made at the server level, although as it becomes much more friendly to ordinary users and range of user applications increases (office equivalent and office compatible software is now available) the claim is being extended to this level as well. For an interesting article on whether to use Linux or Windows in a development context, see Michael Taylor (2002). 66. For a quick snapshot from the Open Source front, see http://www.idg.net/ic_874686_ 1794_9-10000.html. For recent new items on adoption of OSS in both developing and industrialized countries, see: http://www.sdnp.undp.org/perl/news/articles.pl?do=browse&categories=10 &country=-1&region=-1&offset=10

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As an enabler of development, ICT has the potential to assist in the achievement of millennium development goals: through the creation of new economic and social opportunities; the promotion of greater participation in development policies and processes; an increase in efficiency, accountability and delivery of public services; as well as through assisting with improving the content, access and delivery of education and healthcare.67 However, this awareness of the development potential of ICT is often not fully reflected in the formulation of national e-Strategies, many of which either lay primary emphasis on ICT as a sector (IT services, call centres), assuming that this can emerge as a new growth and export sector, 68 or focus on ICT as an enabler, but in a more piecemeal fashion. Also critical in making the case for a strategic deployment of ICT to support the achievement of millennium development goals is the potential to demonstrate impact. There are currently few studies or strategies that outline a strategic programmatic vision with regard to ICTs and development in terms of benchmarks, goals etc. Identification of strategic entry points for ICT to address development goals It is important to begin by identifying areas where ICT can have a critical development impact. Most e-assessments do not have this development focus in mind. Development entry points for the strategy may be usefully derived from the priorities identified in the national poverty reduction strategy and other development policies and plans.69 To consider a few recent examples: In the case of Mozambique, the

67. See final report of the digital Opportunity Initiative for examples of how ICT can be used to address each of the major development priorities, http://www.opt-init.org/ 68. For the differences in development impact resulting from the focus on sector vs. enabler see p.27 http://www.opt-init.org/framework/DOIReportwithoutcover.pdf. For examples of countries focusing on ICT with an export focus, see Costa Rica, India. 69. This note addresses national e-strategies or cross-sectoral ICT for development strategy which form the chapeau or umbrella for e-education, e-health, e-commerce, ict for sustainable environment strategies etc. which can both feed into the national strategy and take their lead from it. i.e. the national e-strategy may outline priority areas for which the sectors develop their own e-strategies.

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ICT Policy implementation strategy draws its priorities from the PARPA or poverty reduction strategy. There are indications that the PARPA may in turn be iteratively revised to address deployment of ICT for development.70 Similarly, Vietnams comprehensive growth and poverty reduction strategy (CGPRS) has also introduced an ICT-for-development focus, although it is spread out over a number of different areas71 Within the context of the IT master plan 2001-2005, the pre-eminent focus is more on ICT as a sector rather than ICT as an enabler.72 But in general, these are the exceptions rather than the rule. In the context of the PRSP exercise, ICT is yet to be viewed as a strategic enabler for development and poverty reduction. There are examples of ICT but as yet there are no systematic case studies or guidelines on ICT as an enabler in the PRSP sourcebook. ICT is viewed as infrastructure (similar to transportation) or considered in the context of private sector development.73

70. See p.4 of http://www.infopol.gov.mz/pdf/estg_pt.pdf 71. For example, for Vietnam, see http://www.vdic.org.vn/eng/pdf/CPRGS_final.pdf . ICT is brought up in a number of contexts: (a) A Science and technology focus or IT sector focus: attach special importance to the development of science and technology, give priority to developing infrastructure, information technology, software technology, and the information technology industry (b) Public Administration Reform: promote the application of information technology to improve services, ensure an open transparent and predictable relationship between the State citizens and enterprises; (c) Transport, post, communications infrastructure development; (d) Training and education. 72. The focus within the IT masterplan is on developing the IT sector, increasing the effectiveness of government and increasing deployment of ICT in government, society, schools etc.. See http://au.news.yahoo.com/020719/3/b3d3.htmlEthiopia has sought to focus on the potential of ICT to positively affect the process of PRSP (consultation, monitoring, and evaluation) and in the context of capacity development. See: http://www.imf.org/external/NP/prsp/2000/eth/01/ 113000.pdf 73. The PRSP or poverty reduction strategy paper is an instrument for obtaining concessional finance from the World Bank Group or IMF. In this context, countries have to develop a poverty reduction strategy. In the World Bank PRSP context, on the uses of ICT to address poverty, see Kenny, Charles, Juan Navas-Sabater, Christine Z. Qiang (2001) http://www.worldbank.org/ poverty/strategies/chapters/ict/ict.htm ). On the PRSP sourcebook view of ICT as infrastructure, see http://www.worldbank.org/poverty/strategies/chapters/ict/ict.htm.

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Complementarities between poverty reduction and e-Strategies Moving forward, it could prove both useful and important to secure complementarity at the policy and implementation levels between the national ICT and poverty reduction strategies by inserting development in ICT strategies and ICT in poverty reduction strategies. Selected References:
Analysis (2000) A Toolkit for Networking Progress in Developing Countries. http://www.infodev.org/projects/400networkingrevolution/ analysystoolkit.pdf Analysis (2000) The Network Revolution and the Developing World: Final Report for World Bank and infoDev. http://www.infodev.org/library/ WorkingPapers/400.doc Alcorta, Ludovico (1996) The Information Revolution and Economic and Social Exclusion: The Experiences of Burkina Faso, South Africa and Tanzania. Special Series of UNU/INTECH Discussion Paper 2002. Benjamin, Peter (2000) African Experience with Telecenters http:// www.isoc.org/oti/articles/1100/Benjamin.html Barrera, Zael (1999) Empowering the rural and poor suburban communities in Central America: The Infoplazas program of Panama. Presented at UNESCO International Seminar addressing the digital divide in some of the poorest communities of the developing world http://www.unesco.org/ webworld/public_domain/kothmale_docs/panama.rtf Bertolini, Romeo Dietrich Mller-Falcke, Gi Soon-Song and Maximo Torero (2002) Information and Communication Technologies for Development: Present Situation, Perspectives and Potential Areas for German Technical Cooperation in Peru, Lao P.D.R., Vietnam, Tanzania and Uganda (GTZ) http://www.dotforce.org/teams/Country%20Study.pdf Botelho, Dedrick, Kraemer and Tigre (1999) From Industry Protection to Industry Promotion: IT Policy in Brazil. http://www.crito.uci.edu/git/ publications/pdf/brazil-case-10-99.pdf. Bridges.Org (2001) Spanning the Digital Divide, understanding and tackling the issues: http://www.bridges.org/spanning/report.html Bridges.Org (2001) Comparison of E-Readiness Assessment Models http: //www.bridges.org/ereadiness/

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CDI (2001) Closing the Digital Divide in Brazil: Sustainable Computer Schools Provide a Virtual Highway Out of Poverty. http:// www.globalp artnerships.org/brazil.asp CID (2001-2002) Information Technologies Group. The Global Information Technology Report 2001-2002:Readiness for the Networked World http://www.cid.harvard.edu/cr/gitrr_030202.html CID (2000) Information Technologies Group. Readiness for the Networked World: A Guide for Developing Countries. http:// www.readinessguide.org CIDA (1997) ICTs and Development: Testing a Framework for Evaluation. http://www.acdi-cida.gc.ca CIPR (2002) Integrating Intellectual Property Rights and Development Policy: Report of the Commission on Intellectual Property Rights. http: //www.iprcommission.org/graphic/documents/final_report.htm CNET. 2000. PCs for the Brazilian Masses. 31 August. http:// news.cnet.com/news/0-1006-200-2661582.html?tag=st.ne.1430735.ni Commonwealth Initiative for Informatics Strategies (2001) Guidelines for ICT Policy and Planning http://www.comnet.mt/CRIIS2001/ Documents/ICT2001-W.pdf CSIS (2000). A Roadmap to the Global Information Infrastructure. http: //www.giic.org/pubs/pgiiroadmap.html CTO/Panos (2002) Louder Voices - Strengthening Developing Country Participation in International ICT Decision-Making (w/ case studies on Brazil, India, Nepal, South Africa, Tanzania, Zambia) http://www.cto.int/ frame.php?dir=06&sd=11&id=23 Daly, John (1999) Measuring Impacts of the Internet in the Developing World. IMP: Information Impacts Magazine. May 1999 http: //www.cisp.org/imp/may_99/daly/05_99daly.htm de Alcntara, Cynthia Hewitt (2001) The Development Divide in a Digital Age http://www.unrisd.org/unrisd/website/document.nsf/ (httpPapersForProgrammeArea)/19B0B342A4F1CF5B80256B5E0036D 99F?OpenDocument Digital Opportunity Initiative (2001) Creating a Development Dynamic Final Report of the DOI (Analysis of country approaches of Costa Rica, Estonia, Malaysia, South Africa, http://www.opt-init.org/framework.html

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Digital Opportunity Taskforce [DOT Force] (2001) Implementation Team Reports http://www.dotforce.org/teams/ Digital Opportunity Taskforce [DOT Force] (2001) Digital Opportunities for All: Meeting the Challenge Report http://www.dotforce.org/reports/ DOT_Force_Report_V_5.0h.html DSE (2001) Digital Inclusion: Impact and Challenges of the Networked Economy for Developing Countries. International Policy Dialogue. 23-24 January 2001. http://www.dse.de/ef/digital/pap0201e.htm ECOSOC (2000) The Role of Information Technology in the Context of a Knowledge-Based Economy. http://www.un.org/documents/ecosoc/docs/ 2000/e2000-52.pdf European Commission (2001) Information Society & Development Review http://www.europa.eu.int/comm/external_relations/info_soc_dev/ index.htm Fuchs, Richard (1998) Little Engines that Did, Case Histories from the Global Telecenter Movement, IDRC http://www.idrc.ca/acacia/engine/ eng_11.htm Gilhooly, Denis (1999) The Twilight of Telecommunications, in Anne Leer (ed.) Masters of the Wired World Cyberspace speaks out. p. 42-52. Reprinted in International Journal of Communications Law & Policy: http: //www.ijclp.org/3_1999/pdf/ijclp_webdoc_9_3_1999.pdf Gmez, Ricardo IDRC, Canad, & Juliana Martnez, Fundacin Acceso, Costa Rica (2000) Beyond Connectivity: New Information and Communication Technologies for Social Development http://www.idrc.ca/pan/ pubacceso5_e.htm Hafkin, Nancy and Nancy Taggart (2001) Gender, Information Technology, and Developing Countries: An Analytic Study for USAIDs Office of Women in Development. http://www.usaid.gov/wid/pubs/it01.htm Hammond, Allen (2001) Digitally Empowered Development. Foreign Affairs. March/April 2001. http://www.digitaldividend.org/pdf/ 0201ar04.pdf Hudson, Heather E (1995) Economic and Social Benefits of Rural Telecommunications http://www.usfca.edu/fac-staff/hudson/papers/ Benefits%20of%20Rural%20Communication.pdf

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ICC (2000) A Global Action Plan for Electronic Commerce, Prepared by Business with Recommendations for Governments. http: //www.uscib.org/policy/actplan.htm IDRC (web) Gender and ICTs http://www.idrc.ca/pan/gender/index_e.html IDS (2001) Policy Briefing on e-Commerce. http://www.ids.ac.uk/ids/ bookshop/briefs/brief14.html ILO (2001) World Employment Report 2001: Life at Work in the Information Economy. (Background papers on Brazil, Costa Rica, China, Czech Republic, Finland, Ghana, India, Israel, Malaysia, Singapore, South Africa, USA) http://www.ilo.org/public/english/support/publ/wer/ index2.htm infoDev (web) Illustrative Examples of E-Readiness Assessments and Assessment Methods [web resources] http://www.infodev.org/ereadiness/ methodology.htm Initiative for Software Choice http://www.softwarechoice.org/ ITU (1999) Challenges to the Network: Internet for Development. Geneva http://www.itu.int/ITU-D/ict/publications/inet/1999/index.html ITU (2001) IP Telephony. http://www.itu.int/ITU-D/ict/publications/inet/ 2000/flyer/flyer.html ITU (2000) IP Telephony Workshop, with issues papers and country studies for China, Colombia, Hungary, Peru, Thailand http://www.itu.int/osg/ spu/ni/iptel/workshop/ ITU (2000-2002) ITU Internet Country Case Studies 2002: Ethiopia, Cape Verde Korea (Rep.); 2001: Cambodia, Indonesia, Laos, Malaysia, Philippines, Thailand, Vietnam; 2000: Nepal, Uganda, Bolivia, Hungary, Egypt and Singapore. http://www.itu.int/ti/casestudies ITU (web) Improving IP Connectivity in the Least Developed Countries http://www.itu.int/osg/spu/ni/ipdc/index.html ITU (2002) ICT Success Stories Home Page (In preparation for the 2003 World Summit on the Information Society http://www.itu.int/osg/spu/ wsis-themes/ict_stories/ Kennedy School of Government (2000) sponsor The Internet and Governance Panel discussions on the roles of the public sector, international organisations, and NGOs in the formation of Internet policy. http: //www.ksg.harvard.edu/iip/governance/

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Kenny, C. and Hawkins, R. (2000) Economic Internet Toolkit for African Policy Makers: An Africa Internet Forum, UNECA and infoDev Project. http://www.infodev.org/projects/finafcon.htm Kenny, Navas-Sabater, and Qiang (2000). ICTs and Poverty. http:// www.worldbank.org/poverty/strategies/chapters/ict/ict0829.pdf Kraemer, K., Gurabaxani, V and Dedrick. (2002) Information Technology and Economic Performance: Firm and Country Evidence. Center for Research on Information Technology and Organisations. University of California http://crito.uci.edu/publications/pdf/ITandProductivityReview.pdf Kraemer, K. and Dedrick, J. (2001) China IT Report. Center for Research on Information Technology and Organisations. University of California http://www.crito.uci.edu/git/publications/pdf/China-10-01.pdf Kraemer, K. and Dedrick, J (1999) National Policies for the Information Age: IT and Economic Development. Center for Research on Information Technology and Organisations. University of California. http: //www.crito.uci.edu/itr/publications/pdf/natl-policiesio-99.pdf Kumon, Shumpei; Izumi Aizu, Adam Peake and Motohiro Tsuchiya (2001) Comments from Japanese NPO Committee to the Draft Report 2.0 of the DOT Force http://www.glocom.ac.jp/dotforce/ 20010417glocomcommentto20.html Lateef, A. (1997) Linking Up with the Global Economy: A Case Study of the Bangalore Software Industry. ILO. http://www.ilo.org/public/ english/bureau/inst/papers/1997/dp96/ Mansell, R. and When, U. [eds.] (1998). Knowledge Societies: Information Technologies for Sustainable Development. Oxford University Press. http://www.susx.ac.uk/spru/ink/knowledge.html Markle Foundation (2002) Roadmap Report Global Policymaking for Information and Communications Technologies: Enabling Meaningful Participation by Developing-Nation Stakeholders http://www.markle.org/ globalpolicy/assets/roadmap_report.pdf Martinez, Juliana (2000) A social vision of the Internet and public policies: ideas on strategies for bringing civil societys influence to bear. Working paper for the 2000 meeting, IDRC http://www.idrc.ca/pan/ panlacjulaant_e.htm

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McConnell, Paul. Ed. (1996) Measuring the Impact of Information on Development: http://www.idrc.ca/acb/showdetl.cfm?&DID=6&Product_ ID=539&CATID=15 McConnell International. (2001) Ready? Net. Go! Partnerships Leading the Global Economy http://www.mcconnellinternational.com/ereadiness/db_ register.cfm?WhichReport=2&WhichFile=ereadinessreport2.htm McConnell International. (2000) Risk E-Business: Seizing the Opportunity of Global E-Readiness. http://www.mcconnellinternational.com/ ereadiness/EreadinessReport.htm McKinney, Matt (2002) Encoded Property: Cambodia Takes on US Software Giants in Battle for Khmer Computer Script http:// www.camnet.com.kh/cambodia.daily/selected_features/unicode.htm Ministry of Science and Technology Brazil (2000). Information Society in BrazilGreen Book. http://www.socinfo.org.br/livro_verde/ingles/ N-logue () n_Logue and Rural Internet Driving the Rural Internet revolution http://akash-ganga-rwh.com/IITMadras/nLogue.doc Noguera, Felipe. (1999) Telecommunications in the Caribbean. http: //www.vii.org/papers/cari.htm Norohna, Frederick (2002) Open-Source Software Opens New Windows to Third-World, Linux Journal http://www.linuxjournal.com/ article.php?sid=6049 Norris, Pippa. 2000. Digital Divide?: Civic Engagement, Information Poverty & the Internet in Democratic Societies. http://ksghome.harvard.edu/ ~.pnorris.shorenstein.ksg/book1.htm NTIA (2000) Falling Through the Net: Towards Digital Inclusion. A Report on Americans Access to Technology Tools. http://www.ntia.doc.gov/ ntiahome/fttn00/contents00.html NTIA (1999) Falling Through the Net: Defining the Digital Divide. http: //www.ntia.doc.gov/ntiahome/fttn99/contents.html NTIA (1999) Americas New DeficitThe Digital Work Force: Building Infotech Skills at the Speed of Innovation. http://www.ta.doc.gov/ Reports/itsw/digital.pdf NTIA (1998) Falling Through the Net II: New Data on the Digital Divide. http://www.ntia.doc.gov/ntiahome/net2/

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NTIA (1995) Falling Through the Net: A Survey of the Haves and Have Nots in Rural and Urban America http://www.ntia.doc.gov/ntiahome/ fallingthru.html Nua Internet surveys (annual) http://www.nua.ie/surveys/ OECD (2002) Information Economy, IT Policy Profiles from OECD Information Technology Outlook 2002 http://www.oecd.org/oecd/ pages/home/displaygeneral/0,3380,EN-countrylist-110-1-no-no-1296110,00.html OECD (2001) Understanding the Digital Divide http://lacnet.United Nations ICTtaskforce.org/Docs/OECD/Understanding%20the%20Digit al%20Divide.pdf OECD (2001) Digital Opportunities for Poverty Reduction Joint OECD/ UN/UNDP/World Bank Global Forum OECD, Paris, 5 and 6 March 2001 http://www1.oecd.org/dac/digitalforum/ OECD/ DCD and IDRC. (2001) Donor Information and Communication Technology (ICT) Initiatives and Programmes presented at the Joint OECD/UN/UNDP/World Bank Global Forum Exploiting the Digital Opportunities for Poverty Reduction http://www1.oecd.org/dac/ digitalforum/docs/DO_Session1_Matrix.PDF and http://www1.oecd.org/ dac/digitalforum/docs/DO_Session1_MatrixAnnex.pdf OECD (2000). OECD and the World Economy, Doc. 8804, Science, Technology and Industry Outlook. http://www.oecd.org/pdf/M00032000/ M00032082.pdf OECD (1998) Science, Technology and Industry Outlook 1998. Orbicom (International Network of UNESCO Chairs and Associates in Communications). 1999. Information Society: Crises in the Making? Diagnostic and Strategies for Intervention in Seven World Regions. Montreal. Open Source Initiative (OSI) The Case for Open Source: For Business & for Customers, http://www.opensource.org/advocacy/ Pacific Council on International Policy (2002) Roadmap for E-government in the Developing World http://www.pacificcouncil.org/pdfs/ e-gov.paper.f.pdf PanAsia Networking (2002) Participatory policy making in Nepal http: //www.panasia.org.sg/news/rnd_st/ict_rnd04a.htm Proenza, Francisco J., Bastidas-Buch, Roberto & Guillermo Montero (2001) Telecenters for Socioeconomic and Rural Development in

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Latin American and the Caribbean [IADB, FAO, & ITU] http:// www.iadb.org/sds/itdev/telecenters/index.htm Reilly, Katherine & Ricardo Gmez, Sep (2000) Comparing Approaches: Telecenter Evaluation Experiences in Asia and Latin America IDRC http: //www.is.cityu.edu.hk/ejisdc/vol4/v4r3.pdf Richardson, Don. (1996) The Internet and Rural Development: Recommendations for Strategy and Activity. http://www.fao.org/WAICENT/ FAOINFO/SUSTDEV/CDdirect/CDDO/execsum.htm Roman, Raul & Royal D. Colle (2002) Themes and Issues in Telecentre Sustainability http://idpm.man.ac.uk/idpm/diwpf10.htm SAITIS (2000) SAITIS Baseline Studies: A Survey of the IT Industry and Related Jobs and Skills in South Africa. http://www.saitis.co.za/studies/ jobs_skills/ SAITIS (2000) South African ICT Sector Development Framework. www.saitis.co.za. Santos, De Sousa (1998) Toward a redistributive democracy Politics & Society; online copy at http://www.archonfung.net/papers/santos.html Shapiro, C. and Varian, H. (1999) Information Rules: A Strategic Guide to the Network Economy. http://www.inforules.com/ SIDA (2001-2002) Country ICT Surveys (Tanzania, Mozambique, Rwanda, Sri Lanka) http://www.sida.org/Sida/jsp/Crosslink.jsp?d=321&a=9481 SIDA Strategy for IT in Development Cooperation http://www.sida.se/Sida/ jsp/Crosslink.jsp?d=321&a=5490 and International Cooperation http: //www.sida.se/Sida/jsp/Crosslink.jsp?d=321&a=5491 Sincere Choice (2002) [Give Software Users a Sincere Choice!] http:// www.sincerechoice.org/ Taylor, Michael (2002) Community: Volunteer Asks if Linux is Right for Africa http://linuxtoday.com/news_story.php3?ltsn=2002-07-15-014-26OP-CY Uimonen, Paula (2001) Transnational.Dynamics @ Development.Net: Internet, Modernization and Globalization. Stockholm Studies in Social Anthropology, no. 49. http://www.i-connect.ch/uimonen/ UNDP (2001) Making New Technologies work for Human Development (Human Development Report 2001) http://hdr.undp.org/reports/global/ 2001/en/

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UNDP (2001) Information and Communication Technology for Development http://sdnhq.undp.org/it4dev/trustfund.html UNDP (1999-) Networking and Information Technology Observatory http: //www.sdnp.undp.org/observatory/ UNCTAD (2002) Expert Meeting on E-Strategies -Electronic Commerce Strategies: The Basic Elements of an Enabling Environment for e.-commerce Geneva, 10-12 July 2002 http://www.unctad.org/ ecommerce/event_docs/estrategies.htm UNECA () African Information Society Initiative http://www.uneca.org/aisi/ UNESCO (2001) The Telecentre Cookbook for Africa: Recipes for self-sustainability http://unesdoc.unesco.org/images/0012/001230/ 123004e.pdf UNESCO (2001) Observatory of the Information Society http:// www.unesco.org/webworld/portal_observatory/Access-Applications/ UNESCO (2000) Third UNESCO Congress on Ethical, Legal and Societal Challenges of Cyberspace: The Fair use concept in education, science, culture and communication http://webworld.unesco.org/infoethics2000/ report_141100.html UNESCO (1996) Information and Communication Technologies in Development: A UNESCO Perspective. Contribution to the Inter-Agency Project on Universal Access to Basic Communication and Information Services. http://www.unesco.org/webworld/telematics/uncstd.htm United Nations (2000) United Nations Millennium Declaration. http: //www.un.org/millennium/declaration United Nations ICT Taskforce Working Group Reports http:// www.unicttaskforce.org/groups/principal.asp United States Internet Council (2000) State of the Internet 2000. http: //usic.wslogic.com USAID (2001) Information Communications Technology Country Assessments for Armenia, Bulgaria, Croatia, and Romania. http:// www.usaid.gov/regions/europe_eurasia/eeresources.html#IT USAID (2001 update) Leyland Initiative: Africa Global Information Infrastructure Project http://www.usaid.gov/leland/index.html Warrier, S. (1999) Internet Unplugged. Interview with Ashok Jhunjhunwala of the Indian Institute of Technology Madras on his development of

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a wireless system to access the Internet. http://www.rediff.com/computer/ 1999/jun/16jhunjh.htm Wellenius, Bjrn (2002) Closing the Rural Communication Access Gap: Chile 1995-2002 http://www.infodev.org/library/WorkingPapers/ chile_rural/Chile%20-%20final%2017%20december%2001%20%20revised.pdf Wilson, E. and Rodriguez, F. 1999. Are Poor Countries Losing the Information Revolution? infoDev Working Paper. Washington, D.C. http: //www.infodev.org/library/WorkingPapers/wilsonrodriguez.doc World Bank (2002). Sector Strategy Paper for The Global Information and Communications Department of the World Bank http:// info.worldbank.org/ict/assets/docs/SSP.pdf World Bank (2000) The Networking Revolution: Opportunities and Challenges for Developing Countries. infoDev Working Paper. http: //www.infodev.org/library/WorkingPapers/NetworkingRevolution.pdf World Bank (1998). World Development Report 1998/1999: Knowledge for Development. Washington, D.C. WRI (World Resources Institute). (2001). Digital Dividend Case Studies. http://www.digitaldividend.org/action_agenda/action_agenda_01.htm

Organisations and ICT Initiatives Web Sites

Acacia Acacia Initiative is an international effort led by the International Development Research Centre (IDRC) to empower sub-Saharan African communities http://www.idrc.ca/acacia ADB (Africa) African Development Bank http://www.afdb.org ADB (Asia) Asian Development Bank http://www.adb.org AISI African Information Society Initiative (AISI): www.bellanet.org/partners/aisi APC The Association for Progressive Communication http: //www.apc.org/ APDIP Asia Pacific Development Information Programme (UNDP) APNG Asia Pacific Networking Group: www.apng.org APT Asia-Pacific Telecommunity www.aptsec.org/default.html ASEAN Association of Southeast Asia Nations http://www.asean.org ATU African Telecommunications Union http://www.atu-uat.org/

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AusAID

Official Australian Overseas Aid Programme http:// www.ausaid.gov.au/ Bellanet International Initiative funded by IDRC, the Rockefeller Foundation, the MacArthur Foundation, UNDP, SIDA, DGIS and CIDA. http://www.bellanet.org/ Bridges.org Non profit ICT for development organisation (South Africa /USA) http://www.bridges.org CANTO Caribbean Association of National Telecommunication Organisations CIDA Canadian International Development Agency: www.acdicida.gc.ca CID Center for International Development at Harvard University: www.cid.harvard.edu CIPR Commission on Intellectual Property Rights [UK] http: //www.iprcommission.org/ CIRCIT Center for International Research on Communication: www.circit.rmit.edu.au COMNET-IT Commonwealth Initiative for Informatics Strategies http: //www.comnet.mt/Default.htm CDI Committee to Democratize Information Technology www.globalpartnerships.org/brazil.asp CTO Commonwealth Telecommunications Organisation http: //www.cto.int/ CTU Caribbean Telecommunications Union DANIDA Royal Danish Ministry of Foreign Affairs Development Gateway http://www.developmentgateway.org/ DFID UK Department for International Development DGIS Directorate-General for Development Cooperation [Dutch] http://www.wis.cgiar.org/wisard/shared/asp/ generalinfoserver/intermediate.asp?InstitutionID=2616 Digital Divide Network http://www.digitaldividenetwork.org/content/ sections/index.cfm Digital Dividend (WRI) http://www.digitaldividend.org/ Digital Nations http://dn.media.mit.edu/ Digital Partners http://www.digitalpartners.org/home.html

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DOI

Digital Opportunity Initiative - A Public-private partnership of Accenture, the Markle Foundation and the United Nations Development Programme (UNDP) http://www.opt-init.org DOT Force G-8 Digital Opportunity Taskforce http://www.dotforce.org/ DSE German Foundation for International Development http: //www.dse.de/ef/ef-e.htm EC European Commission ECLAC UN Economic Commission for Latin America and the Caribbean http://www.eclacwash.org/eclac.html ECOSOC Economic and Social Council of the United Nations http: //www.un.org/esa/coordination/ecosoc/ EIB European Investment Bank http://www.eib.org/ ESCAP United Nations Economic and Social Commission for Asia and the Pacific http://www.escap.org ESIS European Survey of Information Society: www.esis.ee FAO Food and Agriculture Organisation of the United Nations: www.fao.org/sd/index_en.htm Ford Foundation http://www.fordfound.org/ GBDe Global Business Dialogue On E-Commerce Global Digital Divide Initiative of the World Economic Forum (WEF) http: //www.weforum.org/site/homepublic.nsf/Content/Global+ Digital+Divide+Initiative GIIC Global Information Infrastructure Commission (GIIC): www.giic.org GLOCOM Center for Global Communications, Tokyo, Japan http: //www.glocom.ac.jp/ GKP Global Knowledge Partnership (GKP): www.globalknowledge.org GTZ German government-owned corporation for international cooperation http://www.gtz.de/english/ HP e-inclusion Hewlett Packard e-inclusion http://www.hp.com/e-inclusion/ en/index.html IADB Inter-American Development Bank (IDB): www.iadb.org ICANN Internet Corporation for Assigned Names and Numbers http://www.icann.org/ ICC International Chamber of Commerce

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IConnect

Developed in association with the building digital opportunities programme funded by DFID and DGIS (Netherlands) http://www.iconnect-online.org/ ICRT International Campaign for Responsible Technology (ICRT): www.svtc.org/icrt IDRC International Development Research Center (IDRC): www.idrc.ca IICD Netherlands Institute for Communication and Development: www.iicd.org IISD International Institute for Sustainable Development: www.iisd.ca ILO International Labour Organisation (ILO): www.ilo.org InfoDev Information for Development Program of the World Bank Group: www.infodev.org ISOC Internet Society ITU International Telecommunication Union (ITU): www.itu.int/ IT21 Millennium Project of Japan (IT21): www.kantei.go.jp JICA Japanese International Cooperation Agency (JICA): www.jica.go.jp Knownet Initiative w/ resources on e-governance initiatives http: //members.tripod.com/knownetwork/index.html Markle Markle Foundation http://www.markle.org/ MIT Media Lab http://www.media.mit.edu/ NEPAD New Economic Partnership for Africas development http: //www.nepad.org NICI National Information and Communications Infrastructure: www.bellanet.org/partners/aisi/nici NIIT National Institutes for Information Technology (NIIT): www.niit.com NITA National Information Technology Agenda (NITA): www.nitc.org.my/nita NTIA National Telecommunications and Information Administration (NTIA) US Depart of Commerce: www.ntia.doc.gov OECD Organisation of Economic Cooperation and Development http://www.oecd.org/

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oneworld.net

One World is a network of over 700 organisations working for social justice, sustainable development and human rights http://www.oneworld.net PANAsia Pan Asia Networking is a program initiative of IDRC of Canada http://www.panasia.org.sg/ Panos Panos Institute http://www.panos.org.uk/ PITA Pacific Islands Telecommunications Association http: //www.pita.org.fj SAITIS South African Industry Strategy Product (SAITIS): www.saitis.co.za SDC Swiss Agency for Development Co-operation http:// 194.230.65.134/dezaweb2/ SIDA Swedish International Development Agency http:// www.sida.se/ SDNP Sustainable Development Networking Programme (UNDP) UNCTAD United Nations Conference on Trade and Development http://www.unctad.org/ UNDP United Nations Development Programme: www.undp.org UNECA UN Economic Commission for Africa UNECE United Nations Economic Commission for Europe http: //www.unece.org UNESCWA United Nations Economic and Social Commission for Western Asia UNESCO United Nations Educational, Scientific, and Cultural Organisation: www.unesco.org United Nations (UN) Information and Communication Technology (ICT) Task Force (TF) http://www.unicttaskforce.org/ UNITeS United Nations Information Technology Service: www.unites.org USAID United States Agency for International Development (USAID): www.usaid.gov USIC United States Internet Council WEF World Economic Forum: www.weforum.org WISTA World Information Technology and Services Alliance (WITSA): www.witsa.org

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WRI WSIS

World Resources Institute (WRI): www.wri.org World Summit on Information Society http://www.itu.int/ wsis/ WSIS Civil Society platform for WSIS http://www.geneva2003.ch/ WTO World Trade Organisation http://www.wto.org

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SECTION III

HUMAN RESOURCE DEVELOPMENT AND CAPACITY BUILDING

Working Group III of the United Nations ICT Task Force

The Role Of ICT In Enhancing The Achievement Of Millennium Development Goals

Prepared by the United Nations Development Programme to inform the deliberations of the Human Resource Development and Capacity Building Working Group of the United Nations ICT Task Force

I. SYNOPSIS

The UN Millennium Declaration outlines a focus on partnerships with the private sector to ensure that the benefits of new technologies, specially information and communication technologies ... are available to all. This paper develops the thesis that, in order to meet the immense challenges of the Millennium Development Goals (MDGs), the widespread and innovative use and deployment of ICT is essential.
(1) From ICT Access to ICT for MDGs

The benefits of the new technologies are the result not only of an increase in connectivity or broader access to ICT facilities per se, but more importantly, the facilitation of new types of development solutions and economic opportunities that ICT deployment makes possible. If strategically deployed, and integrated into the design of development interventions, ICT can enable development resources to go that much further by facilitating the development of cost-effective and scalable solutions. Networking technology can enable developing countries to benefit

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from new economic opportunities resulting from the re-organisation of production and services taking place in the global networked economy. It is believed that ICT will increasingly become one of the main enablers in the pursuit of poverty alleviation and wealth creation in developed and developing countries alike. At the same time, as a facilitator of knowledge networking and distributed processing of information, it can be used to foster increased sharing of knowledge and new models for research and development which are driven less by brain drain and more by brain circulation. It creates the opportunity of tapping into cross-border networks of research and development practitioners, ICT for Development experts, and local research, as well as outsourcing of R&D relevant to the achievement of the MDGs. However, the role of ICT as an enabler is not adequately reflected in the indicators selected for the ICT target (Target 18 of Goal 8).74 There needs to be a focus, not just on access and connectivity to ICT but also to address ICT as a cross-cutting theme with the potential to promote the achievement of the MDGs.
(2) What is required to enable ICT for MDGs?

It is increasingly evident that ICTs are transforming the development landscape, creating new challenges as well as opportunities for ICT to enhance development efforts. However, there is a lack of clarity on the part of national decision-makers and their development partners as to how best to address these challenges as well as how best to integrate ICT into the various development efforts. The analysis of the existing body of experiences and knowledge indicates that given the range of ICTs and the flexibility in modes of deploying them there is no one size fits all approach. However, the deployment of ICT to enhance MDGs requires greater cross-sectoral collaboration and integrated approaches that shift the scale and scope of ICT interventions have an impact on development targets.

74. ICT MDG indicators: Indicator 47: Telephone lines and cellular subscribers per 100 population; Indicator 48: Personal computers in use per 100 population and Internet users per 100 population.

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Drawing on the experience of some early pioneers, the following appear to be useful beginnings:
An ICT for development focus needs to be reflected in development policies and strategies (e.g. PRS/PRSP), at the same as an MDG focus needs to be reflected in the priorities of national e-strategies. Too many e-strategies do not sufficiently reflect ICT as an enabler focus. ICT is thought of more in sectoral terms, on building software or IT service capabilities, etc.; There needs to be a shift from stand-alone projects towards strategic and costed programmes with an that constitute the priorities of nationally owned e-strategies; An ICT for Development and MDG focus needs to be effectively mainstreamed into ODA, either as a separate focus or as an enabler in the context of the social themes/priorities where it can have the most impact; Development co-operation and public-private partnerships need to be geared towards supporting the development and implementation of nationally owned e-development strategies that seek to harness ICT to enhance development and the achievement of the MDGs; and ICT deployment can benefit from the use of indicators (qualitative and/or quantitative) to more effectively benchmark and monitor ICT impact.

(3) Lessons learned to enhance role of ICT as an enabler of development and MDGs

Development impact and results achieved are found to vary with: (i) the role assigned to ICT in development (ICT as enabler vs. ICT sector); (ii) the reflection of MDG priorities in policy and implementation of e-strategies; (iii) the degree of holisticism or consideration of cross-sectoral elements and linkages with implications for capacity to implement, sustainability, and cost effectiveness; (iv) the extent of inclusion in formulation and implementation as well as responsiveness to needs; and (v) cost and ease of replicability of ICT tools and technologies.

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Reducing the cost of ICT provision is a function not only of telecom reform and independent regulation but also of the potential of developing countries to participate in Internet governance and crafting of international IPR. Public-private partnerships, R&D and venture capital support can also assist with the adaptation of technologies and solutions.

(4) Recommendations to strengthen ICT for MDG Strategic Focus

A number of issues need to be addressed to advance work in this field:

A clearer strategic focus and deployment strategy:

The MDGs are time-bound objectives with a timeframe longer than most e-strategies and PRSPs. How can these strategies be best adapted to contribute to the achievement of these objectives? What is the timeframe to demonstrate impact and success so as to be in a position to move towards effectively scaling and replicating strategies? Should the MDGs themselves be prioritised in the e-strategies based on where ICT can be demonstrated to have the most impact?
Benchmarking & development impact indicators:

The focus on impact is quite recent in terms of development initiatives and strategies. Benchmarking and determination of impact will require clear guidelines to highlight ICT effectiveness or impact. While it is true that impact will depend on the approach and readiness to adopt ICT, there is often insufficient attention on benchmarking and the deployment of impact indicators. For e.g. with regard to the MDG on education, how would we determine the ICT for education indicator number of schools or educational establishments with multimedia content and capacity? How would we measure impact: increased learning based on performance on the basis of some standardised score or qualitative impact such as reduction in drop-out rates and greater interest in learning? Reduction in the cost of providing access to education by facilitating cheaper and timelier provision of educational materials and reduction in administrative overheads?

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New business models, partnerships and deployment strategies:

There needs to be flexibility and greater openness to new approaches in implementation with a focus on incubating and encouraging new business models and partnerships to increase ICT deployment and address market failure situations. This is true, particularly in the present economic environment, given the slowdown in private investment flows and the overall growth of economies. Countries will need to think of enabling conditions, strategies and resource mobilization anew, and will have to collaborate with the private sector on the basis of new business models.
Sharing of good practices and scaling strategies

It is necessary to share good practices and bottom-up approaches to address market failure and extend the reach of ICT. Good programmes should be identified and scaled in order to increase impact. Costing of technologies and ICT access and deployment initiatives is required in prioritised nationally owned strategies; Key partnership ideas for/with the private sector (infrastructure, capacity, policy content) should be identified, as should key issues that need to be addressed at the global level through the work of task force and other bodies.
II. ICT ACCESS

The UN Millennium Declaration outlines a focus on partnerships with the private sector to ensure that the benefits of new technologies, specially information and communication technologies ... are available to all. Currently, the indicators for the ICT target under Goal 8, with its focus on developing a global partnership for development, are ICT infrastructure or connectivity indicators:75
Indicator 47: The number of Telephone lines and cellular subscribers per 100 population; and Indicator 48: The number of personal computers in use per 100 population and Internet users per 100 population;

75. For global data (1991-2001/2) on indicators # 47 & 48, SeeUN Stats http://unstats.un.org/ unsd/mi/mi_goals.asp

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Even though the broad target is to ensure that the benefits of ICT are available to all and at a minimum access to ICT, the indicators are more narrowly focused on connectivity. Connectivity itself is necessary, but not sufficient, to ensure access. Access requires that there be capacity to access, use and often produce the technologies; that the technology is accessible in terms of language and capabilities; that locally relevant content is available and that there is a focus on raising awareness and addressing cultural traditions that may restrict use. This translates into the need for strategies that are more holistic than infrastructure strategies and indicators that capture these other capability dimensions. Dimensions of ICT Access (i) The Digital Divide, a reflection of existing socio-economic divides Disparities in access and penetration rates are in large part an expression of the levels of socio-economic development. This is reflected in the patterns characteristic of both regional as well as sub-national penetration rates. According to UNDPs Human Development Report (2001), in 2000, Internet users in developing regions constituted 3.2% of the population (1 in 30) for Latin America and the Caribbean, 0.4% (1 in 250) for South Asia, 2.3% (1 in 43) for East Asia, 0.6% (1 in 166) for the Arab States.76 (ii) Wireless connectivity is increasing at a faster rate With the costs of communications dropping dramatically, particularly for mobile and cellular technologies, it appears that developing countries and the poor will be able to much more easily benefit from cutting and interactive edge technologies. Wireless networks can be put in place much more rapidly and at a relatively lower cost than fixed line communication networks. Innovative business models (Grameen Village Phone in Bangladesh) and the introduction of prepaid services have also permitted it to reach much broader sections of the population with almost no risk to the providers.
In 1991, less than one per cent of the worlds inhabitants had access to a mobile phone and only one third of countries had a cellular network.

76. See UNDP HDR 2001, Chapter 2, p.14 http://hdr.undp.org/reports/global/2001/en/pdf/ chaptertwo.pdf

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Source: (1) ITU (2002) ICT for Development http://www.itu.int/ITU-D/ict/papers/2002/ casin/vg.ppt (2) ITU Indicators Database 2001

By the end of 2001, over 90 per cent of countries had a mobile network, almost one in every six of the worlds inhabitants had a mobile phone and almost 100 countries had more mobile than fixed telephone subscribers. The worlds Least Developed Countries (LDCs) have surpassed the important threshold of one telephone subscriber per 100 inhabitants in the year 2001 and now have the worlds fastest growing networks, due in large part to competition in mobile cellular markets.77 While all of Africa had less phone lines than one state in the

77. ITU Press Release 2002 http://www.itu.int/newsroom/press_releases/2002/05.html

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US, cell-phone users in Africa leapt to 30-million last year from just 2-million in 1997.78 In 1997, the ITU reported that there were more mobile phones in Bangkok than in Africa, a situation that has now been reversed. By the end of 2001, twenty-eight African nationsor over half the regions countrieshad more mobile than fixed subscribers; a higher percentage than any other continent!

Given the fast rate of growth of mobile telecommunications and its greater accessibility, the focus on redefining of ICT universal access targets so as to focus much more on enhancing wireless access rates is to be welcomed.79 In the future, it seems that wireless protocols will be effectively extended to data as well as telephony on a variety of hand-held devices (e.g. the Simputer and Picachu from MIT), showing the way, enabling the delivery of services and deployment of development-focused applications. (iii) Countries can increase ICT access dramatically with the adoption of holistic strategies While access to ICT is in large part a reflection of existing socio-economic levels of development, countries can increase connectivity, access and use dramatically through the actions that they take. Much of the initial focus in this area appears to be on creating a supportive telecom policy and regulatory environment and encouraging of private sector and/or public sector investment:
Morocco, one of the poorest nations in North Africa had one of the lowest telephone access levels. It has seen tremendous changes with the introduction in part of telecom reform and the use of innovative calling plans. From a base of only 369000 subscribers at the end of 1999, Maroc Telecom increased its subscribers to three million in May 2001.80 The United Arab Emirates (UAE) has recently recorded an Internet penetration of 28 per cent, higher than Europes rate of 24 per cent.81

78. ITU cited in Unwiring Africa Mail & Guardian (Johannesburg) http://allafrica.com/ stories/200202280691.html 79. See ITU (2002) World Telecommunication Development Report 2002, p20. 80. ITU (2002) World Telecommunication Development Report 2002 81. DIT NET News 9th February http://www.dit.net/news/news.php?id= EpuuZZuZlZdZVfYGVX

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However, a review of the experience of a number of countries suggests that such telecom reforms are essential but not sufficient. Further, there is no single model for effective telecom reform that is applicable to all cases.82 Countries such as China and Costa Rica have been able to extend connectivity quite dramatically under phases of state or private monopoly control with a more staggered introduction of competition. Conversely, some countries have undertaken steps to open up their telecommunications markets but have had difficulties in attracting private sector investment, particularly at a time when the Telecom sector is itself working through its life-cycle processes. Connectivity is more easily increased in the capital cities in response to addressing pent-up demand and reaching new markets:
In Africa, 50 percent of the available lines are concentrated in the capital cities, where only about 10 percent of the population lives. In over 15 countries in Africa, including Cote dIvoire, Ghana and Uganda, over 70 percent of the lines are still located in the largest city.83 In China the 15 least connected provinces, with 600 million people, have only 4 million Internet userswhile Shanghai and Beijing, with 27 million people, have 5 million users. Similarly, in the Dominican Republic 80% of Internet users live in the capital, Santo Domingo.84

To extend connectivity and access more broadly, a number of other measures may be necessary. These include: (a) measures to enhance cohesion between the IT and telecom; (b) creation of policy space for new technology deployments (voice over IP, protocols such as 802.11b to facilitate wireless networks) that would make a tremendous difference in extending connectivity; and (c) support for public-private and community implementation like those pioneered by Grameen Village Phone, public

82. See Also see telecommunications sector reforma prerequisite for networked readiness Harvard/CID (2002) 83. ITU World Telecommunication Development Report 2002 84. See UNDP HDR 2001, Chapter 2, p.14 http://hdr.undp.org/reports/global/2001/en/pdf/ chaptertwo.pdf

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cabins, phone and multi-technology shops and centres run by local private entrepreneurs or community organisations etc. (iv) Moving from connectivity to access and deployment of ICT For ICT to enhance development and achieve best results, a number of interrelated factors need to be addressed in order to maximize the benefits of ICT for development and extend access. These include strengthening human capacity, creating incentives for enterprise, and fostering the development of locally relevant content and service delivery.85 Priority actions within these strategic areas need to be undertaken together or within a specified sequencing and timeframe that is responsive to the cross-sectoral complementarities and potential synergies to avoid the pitfalls of adopting a singular focus on one or other critical area:
A singular focus on IT capacity building without paying due attention to factors that can enhance absorptive capacity can add to brain drain or unemployment. Simply laying pipes and putting in place infrastructure without addressing enterprise, local content development, new business models, and processes to enhance access and the delivery of public and private services can result in less than anticipated demand for services and returns on investment. A focus on the e in e-commerce without addressing transport, financial services, and infrastructure etc. can also lead to failure. While ecommerce is often touted as an opportunity niche for developing countries, it also creates competitive risks for local producers unless they are able to acquire the technical and managerial capacity to compete with foreign suppliers. This suggests a need to build capacity and services to enhance the competitiveness of local enterprise.86

Many of these issues cannot be effectively addressed within the context of a project, but require the formulation and implementation of prioritised national e-strategies that can work to link the micro and macro levels more effectively.87

85. Final Report of the Digital Opportunity (July 2001). See http://www.opt-init.org/ 86. See IDS Briefing on e-commerce http://www.ids.ac.uk/ids/bookshop/briefs/brief14.html & de Alcntara, Cynthia Hewitt (2001) The Development Divide in a Digital Age 87. See for example, Mozambique http://www.infopol.gov.mz/pdf/estg_pt.pdf

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This suggests a strong need for:

Holistic and multi-sector ICTD national e-strategies strategies with prioritisation of MDGs, ICT to be integrated into development strategies and programmes.88 III. ICT TO ENHANCE MDGS

There is increasing evidence pointing to the many ways that ICT can enhance development and provide support to the achievement of the MDGs:

ICT as an enabler, with the potential to enhance the achievement of MDGs. ICT, wisely deployed, has the potential to have an impact on almost every sectormaking development budgets, private sector investment and commitments from development partners go that much further in cost effectiveness, impact and reach at the same time that that the development of new and more responsive solutions are made possible in health, education and related MDG focus areas. It is critical that this approach to ICT for Development be reflected in the national strategy and PRS/PRSP as opposed to

88. These points are very well articulated by Cynthia Hewitt de Alcntara (2001) The Development Divide in a Digital Age and Roger Harris (2001) ICT for Poverty Alleviation Framework

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assuming an ICT sector focus (software, hardware, IT services) where the development gains are likely to be less extensive with fewer spread effects. ICT to strengthen the creation of enabling conditions required for the achievement of the MDGs such as transparency and accountability. ICT can facilitates information sharing and knowledge creation with implications for each of the MDGs ICT to strengthen participatory inputs, demand driven responses and bottom-up implementation as well as support collaboration and co-ordination through enhanced communication and networking. The roles of ICT as an enabler as well as facilitator is not adequately reflected in the indicator selected for ICT (Target 18 of Goal 8).89 There needs to be a focus not just on access to ICT but also to address ICT as a cross-cutting theme with the potential to promote the achievement of the MDGs.

If ICT is to be deployed to promote the achievement of MDGs, we need to have a clear strategy and set of tools to identify how and where ICT can most effectively make a difference and address the following concerns:
Should the MDGs themselves be prioritised in the e-strategies based on MDGs where ICT can have the greatest impact? The MDGs are time-bound objectives with a timeframe longer than most e-strategies and PRSPs. How can these strategies be best adapted to contribute to the achievement of these objectives? What is the timeframe to demonstrate impact and success so as to be in a position to move towards effectively scaling and replicating strategies? What are effective ICTs for MDG and impact indicators?

89. ICT MDG indicators: Indicator 47: Telephone lines and cellular subscribers per 100 population; Indicator 48: Personal computers in use per 100 population and Internet users per 100 population.

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Key steps and issues that need to be addressed: 1. Identification and prioritisation of ICT for MDG opportunities in the context of national e-strategies90 2. Identification of effective programmes at the macro and local levels and scaling strategies to link macro level programme priorities identified in the national e-development and MDG strategies with government, private and bottom-up community/NGO implementation. 3. Costing of short, medium and longer term initiatives in prioritised nationally owned strategies 4. Identification and deployment of development impact indicators to be deployed in a cross-cutting fashion across the MDGs: 5. New business models and implementation strategies

1. Identification and prioritisation of ICT opportunities to enhance MDGs While ICT opportunities can be identified for each of the goals (see below), there is a need to prioritise the goals where ICT can be demonstrated to have the greatest impactfor e.g. education and healthcare as opposed to addressing the hunger reduction goal. This is not to suggest that ICT solutions should not be developed to enhance the responsiveness and effectiveness in addressing other development priorities and challenges but to identify major MDG priorities for the national e-strategies. Similarly, there is a need to prioritise and cost ICT opportunities for a range of implementation modalities, within the context of each of the MDGs. GOAL 1: Poverty reduction Poverty is the product of economic processes occurring at several levels local, national and international. Existing social and economic relations structure the impact of external factors and determine who will have access to subsistence and livelihood opportunities as well as to education and assets that can help to increase these choices.
90. UNDP is currently coordinating studies of national e-strategies and programmes with an MDG and human development focus for a select number of countries in Asia (APDIP regional ICT programme) and Africa as a contribution to WSIS amongst other things.

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ICT can be used to:

Increase efficiency, competitiveness and market access of developing country firms, particularly small and medium scale enterprises (SMEs) and micro-finance institutions, in rural and urban areas and enhance supply-side integration Increase access to market information, reduce transaction costs for poor farmers and traders and facilitate development of alternative market strategies in times of market glut and falling prices. Enhance cost effectiveness and reach of government services; enhance provision of public services with a pro-poor focus (egovernment) and development of integrated solutions. Enhance access to information in local languages to respond to needs identified by poor Facilitate consultative inputs, poverty monitoring, mapping and assessments to evaluate impact and enhance support to poor within the context of poverty reduction strategies and PRSPs.

GOAL 1: Reducing hunger ICT may not be able to have a direct impact (as in the case of education) by way of increasing food supply and reducing hunger, but it can have an effect through a variety of related processes:
Vulnerability and poverty mapping, particularly in drought, famine and HIV/AIDS and crisis effected regions, to increase the effectiveness of development programme impact. Enhancing the effectiveness, reach and functioning and transparency of public distribution systems (PDS) and related systems (e.g. right to know initiative in Rajasthan India) Systems to enhance provision of public services and access to government programmes (e-government) for the poor that can assist in mitigating poverty and hunger Facilitate research and development, and information sharing on agricultural farm extension technologies and approaches, development of effective seed technologies etc., particularly those that can work to enhance food security and subsistence.

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GOALS 2 & 3: Primary School Education & Gender Equity in Education Education is one of the areas where ICTs have been shown to have the most impact. The objective would be, not to begin with the pre-conceived notion of education applications (distance learning), but to focus on content, solution and capacity development to:
Improve the efficiency and effectiveness of education ministries and related bodies through strategic application of technologies and ICTenabled skill development; Broaden availability of quality educational materials/resources; Support teacher training, learning and capacity development (e.g. Tiger Leap, Estonia); Deliver educational and literacy programmes specifically targeted to poor girls & women using appropriate technologies in both formal and non-formal educational settings (e.g. public access centres); and Influence public opinion on gender equality through information/ communication programmes using a range of ICTs

GOALS 4,5 & 6: Childhood & Maternal Health care outcomes & HIV/AIDS ICT can be shown to have an impact both within the context of the formal health care system as well as in facilitating knowledge sharing, awareness raising, co-ordination, empowerment of and advocacy by stakeholders and mitigation of impact. ICT can be used to:
Enable governments, NGOs and the health establishment to increase access to childhood, reproductive health information and AIDS prevention, through making available locally-appropriate content in local languages; Support networking of healthcare workers, PLWAs, vulnerable groups and care givers to enable empowerment for behavioral change and advocacy; Facilitate intra-government co-ordination on health care and enhance government planning, mainstream HIV/AIDS and health awareness and disease prevention content across sectors and departments and support, particularly in the most crisis affected countries;

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Enhance delivery of basic and in-service training for health workers. Increase access of rural care-givers to specialist support and remote diagnosis; and Increase mapping, tracking and information-sharing on HIV/ AIDS, related diseases, and famine with a view to enhancing support in the most crisis vulnerable and affected countries.

GOAL 7: Sustainable Development Outcomes A variety of IT applicationsGIShave long been used to enhance sustainable development. The focus is now shifting to more powerful mapping and monitoring tools in the context of a networked environment:
ICT & GIS tools to assist in areas like village resources management for water wells, tube wells etc. and to create thematic resource maps of villages for sustainable development (e.g. Media Lab Asia); GIS mapping on arsenic contamination in ground water and diseases; Remote sensing technologies and communications networks to permit more effective monitoring, resource management, mitigation of environmental risks; Increase access to, and awareness of, sustainable development strategies, in areas such as agriculture, sanitation and water management, mining, etc.; Greater transparency and monitoring of environmental abuses/ enforcement of environmental regulations; and Facilitate knowledge exchange and networking for policy makers, practitioners and advocacy groups.

2. Identification of effective programmes at the macro and local levels and scaling strategies to link macro level programme priorities. Critical to moving forward in this area is the need to develop projects and programmes less as stand-alone initiatives and more as programmes developed within the context of the priorities of national e-strategies. To enable scaling and replication. It is important to benchmark and track impact.

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3. Identification and deployment of development impact indicators to be deployed in a cross-cutting fashion across the MDGs: How is the impact of ICT to be measured, for example, with regard to the MDG on education? By performing standardised tests. Increased interest in learning and reduction of dropout rates upon the introduction of multimedia content and ICT capacity development. Reduction in the cost of providing education through the facilitation of cost-effective and timelier provision of educational materials and reductions in administrative overheads? 4. New business and deployment strategies: There needs to be flexibility and greater openness to new approaches in implementation with a focus on incubating and encouraging new business models and partnerships to increase ICT deployment and address market failure situations. This is true particularly in the present economic environment given the slowdown in private investment flows and the overall growth of economies. Countries will need to think of enabling conditions, strategies and resource mobilization anew as well as collaborating with the private sector on the basis of new business models.
I V. N E X T S T E P S
Addressing Human Capacity Constraints

Capacity is often singled out as one of the most important factors that need to be addressed if ICTs are to be effectively deployed. Capacity development issues here should not be restricted to consideration of pure ICT capacity and human resource development, but also include strengthening of entrepreneurial and managerial capabilities as well as institutional capacity development in the context of each of the MDGs, as well as implementation of national e-strategy itself. Capacity to implement ICT for Development: A critical mass of knowledge workers and development of users skill in government, private enterprise, as well as members of the public is also vital.91 Policies encouraging businesses to allocate resources to employee development and training, as

91. Many countries tend to concentrate on new IT graduates and less on developing the capacity of users and institutions.

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is happening in South Africa, can be an important mechanism for achieving this.

Adaptation and development of higher education curricula is key. However vocational and tertiary training can also be effective. Thus, India has seen the proliferation of commercial software training companies (such as NIIT and Aptech) that produce over 70,000 trainees per annum. In Ghana and South Africa, telecommunication companies have established centres to train ICT network and application specialists (DOI Report, p.34). In partnership with UNDP, USAID, amongst others, CISCO Networking Academies have increased the supply of locally trained and networking specialists in many LDCs.92

However, retaining human capacity is also a challenge. Brain drain is often heightened by poor macroeconomic and development conditions, as well as the lack of capacity to absorb skilled personnel:
Outflows of skilled personnel is happening everywhere: Africa is losing as much as US $4 billion a year through top professionals seeking better jobs abroad. Every year 23,000 graduates leave Africa for opportunities overseas, mainly in Europe. The emigration of technically skilled people has left only 20,000 scientists and engineers in Africa to serve a population of about 600m.93 India also saw relatively high rates of migration of skilled personnel especially from its prestigious Indian Institutes of Technology. This trend has been partly reversed with the increased opening up of the economy and the development of IT enterprise, outsourcing and R&D opportunities in the country.

92. http://cisco.netacad.net/public/digital_divide/ldc/index.html 93. Africa brain drain hits growth Financial Times August 1, 2001 http://news.ft.com/ft/ gx.cgi/ftc?pagename=View&c=Article&cid=FT32VM3FVPC&live=true&tagid=ZZZU2IUKJ0 C ; Paper presented to Social Science Research In East Africa (OSSERA) cited in AllAfrica.com Brain Drain Reportedly Costing $4 Billion a Year April 30, 2002 http://allafrica.com/stories/ 200204300167.html and Strategies to Stop the IT Brain Drain, Mail & Guardian (Johannesburg) September 21, 2001 http://allafrica.com/stories/200109200105.html

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An additional problem that needs to be addressed is the pressures put on state capacity by often un-coordinated activity on the part of development partners; e.g. in Ghana, Ministry of Education officials hosted 54 separate donor missions in one year, which can be seen as involving a waste of public resources and capacity,94 this suggests the need for donor coordination and support for the formulation and prioritization of nationally owned strategies to more effectively utilize existing capacity even as priorities for new capacity development are identified. ICT access and networks can be used to facilitate learning and strengthen capacity through cross-border collaboration in R&D.
Researchers can be integrated into their scientific communities more quickly and collaboration patterns change as e-mail, mailing lists, ftp sites, Websites, intranets and extranets create an ever increasing grid of information hubs that allow more persistent and richer communications in ways never seen before. Virtual (digital) collaboratories are emerging, as groups of geographically dispersed researchers work and interact together on large projects linked via the Internet. Connectivity permitting, remote databases and other data sets, sometimes particularly large, can be shared and accessed in seconds from around the world (and round the clock), to allow the best interaction among peers.95

The power of Diaspora communities can also be leveraged. Brain drain can be turned into brain circulation.
Immigrants can serve as role models and mentors for local entrepreneurs, providing advice, contacts, financing, the confidence to take risks, as well as actual business through outsourcing contracts. As the early example of Taiwan demonstrates, expatriates and immigrants can also serve as invaluable advisors to domestic policymakers, helping to reshape financial and regulatory institutions and the physical and technical infrastructure.96
94. See www.ibis.dk/arkiv/policy/uns/buchert_response.doc . 95. Research and Education Networks in Europe 2001 http://europa.eu.int/comm/research/ area/networks.pdf 96. AnnaLee Saxenian (2000) The Bangalore Boom: From Brain Drain to Brain Circulation? http://www-dcrp.ced.berkeley.edu/Faculty/Anno/Writings/Brain%20Drain.htm

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Towards Creative Implementation Modalities & Partnerships

There needs to be flexibility and greater openness to new approaches in implementationincluding national and international partnerships and local community networks with a focus on incubating and encouraging new business models and partnerships to increase ICT deployment and address market failure situations. This is true particularly in the present economic environment, given the slowdown in private investment flows and the overall growth of economies. Countries will need to think of enabling conditions, strategies and resource mobilization anew, as well as collaborate with the private sector on the basis of new business models.

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Development of Content
V. WG3 Millennium Development Goals and ICT Matrix LOCAL CONTENT The use of ICTs in creating, exchanging and disseminating local content Indicators ICT ContributionLocal Content

Goals and targets

Goal 1 Proportion of population below $1 a day Poverty gap ratio (incidence x depth of poverty) Share of poorest quintile in national consumption

Eradicate extreme poverty and hunger Employment Opportunitiesuse of ICTs as a method of receiving local content on employment opportunities Market Pricesuse of ICTs as a method to receive and transmit information on local market/agricultural prices Microcredit and other credit informationincrease the access to information on credit opportunities for creating enterprises. Improve the livelihoods of poor people and communities by enabling them to benefit from the expression of their own knowledge and expertise through the use of ICTs and other media. Access to new, overseas markets (selling local art) Increasing fair trade opportunities by connecting local producers with fair trade networks Strengthening small businesses and entrepreneurs by providing the tools for creating and printing flyers; managing accounts, Support for local farmers, herdersco-management of land resources through making local maps, GIS available in telecentres Disaster relief at the local level: famines in remote regions or very localized disasters: finding about these kinds of crises sooner; using ICTs to help with redistribution of supplies to affected areas; (Red Cross has done some great work already on using ICTs to speed up the delivery of relief services for major disasters) Access by farmers and fisherman to local information on markets and prices via radio, telephony, Internet, etc. Enhance access by local health care workers to suitable and relevant international information, adapting this information to their circumstances as necessary.

Halve, between 1990 and 2015, the proportion of people whose income is less than $1 a day

Halve, between 1990 and 2015, the proportion of people who suffer from hunger

Prevalence of underweight children (under five years of age) Proportion of population below minimum level of dietary energy consumption

V. WG3 Millennium Development Goals and ICT Matrix LOCAL CONTENT The use of ICTs in creating, exchanging and disseminating local content Indicators ICT ContributionLocal Content

Goals and targets

Goal 2 Net enrolment ratio in primary education Proportion of pupils starting grade 1 who reach grade 5 Literacy rate of 15 to 24-yearolds

Achieve universal primary education Increase accessibility to local communities in their local languages via tapes, radio, Internet, etc. Improve local education systems by enhancing local educational opportunities Enhance school quality and teacher training Develop and disseminate locally relevant teaching materials, in local languages

Ensure that, by 2015, children everywhere, boys and girls alike, will be able to complete a full course of primary schooling

Goal 3 Ratio of girls to boys in primary, secondary, and tertiary education Ratio of literate females to males among 15- to 24-year-olds Share of women in wage employment in the nonagricultural sector Proportion of seats held by women in national parliament

Promote gender equality and empower women Women possess much of the indigenous knowledge. Focusing on local content aimed at women will create a wealth of knowledge in daily activities in health care, food production and natural resource management. Simple technologies present the opportunity to reach more women and more of the poor. Radio is an important communications technology. Women use email more than they use high-bandwidth IT such as the WWW. Technologies utilising alternative sources of power or transmitting over satellite or cell phone may be more appropriate for distant rural areas, where women are highly represented. Giving access to women entrepreneurs to input/receive local content also affects women as they increase their status due to their proximity to new and valuable information. Ensure that rural women are able to use ICTs to improve their livelihoods, and those of their families and communities, and to amplify their voices in local and national forums; Ensure that development actors systematically adopt gender sensitive approaches in their programmes, especially those in agriculture and rural development.

Eliminate gender disparity in primary and secondary education preferably by 2005 and in all levels of education no later than 2015

V. WG3 Millennium Development Goals and ICT Matrix LOCAL CONTENT The use of ICTs in creating, exchanging and disseminating local content Indicators ICT ContributionLocal Content

Goals and targets

Goal 4 Under-five mortality rate Infant mortality rate Proportion of one-year-old children immunized against measles

Reduce child mortality Increasing access to content on childcare and health promotion through various forms of ICTsradio or television programs, internet etc. Improve local opportunities for health related information and access to locally available resources related to preventative health care and childcare data/information. Increasing exchange of information on rates of immunization and needs in rural areas. Increasing access to local content on medical information for health care professionals. Increasing access to local population of information on basic child care/medical information on immunization, etc. Document local child mortality problems in local languages, propagating locally suitable approaches through local channels and in local languages. Enhance access by local health care workers to suitable and relevant international information on the causes of mortality in children and ways to reduce it, adapting this information to their circumstances as necessary

Reduce by two-thirds, between 1990 and 2015, the under-five mortality rate

Goal 5

Improve maternal health Maternal mortality ratio Proportion of births attended by skilled health personnel Increasing access to local content on medical information for health care professionals. Increasing access to local population of information on basic child care/medical information on child-delivery. Document local health problems in local languages, propagating locally suitable remedies through local channels and in local languages. Enhance access by local health care workers to suitable and relevant international information, adapting this information to their circumstances.

Reduce by three-quarters, between 1990 and 2015, the maternal mortality ratio

V. WG3 Millennium Development Goals and ICT Matrix LOCAL CONTENT The use of ICTs in creating, exchanging and disseminating local content Indicators ICT ContributionLocal Content

Goals and targets

Goal 6 HIV prevalence among 15- to 24-year-old pregnant women Contraceptive prevalence rate Number of children orphaned by HIV/AIDS

Combat HIV/AIDS, malaria, and other diseases Document local health problems in local languages, propagating locally suitable remedies through local channels and in local languages. Enhance access by local health care workers to suitable and relevant international information, adapting this information to their circumstances. Use ICTs to streamline, aggregate, and organise relevant global content, disseminating and packaging it for easy local use and application. Strengthen local capacities to synthesise, adapt and if necessary translate relevant parts of this global knowledge base for local use. Document local health problems in local languages, propagating locally suitable remedies through local channels and in local languages. Enhance access by local health care workers to suitable and relevant international information, adapting this information to their circumstances. Use ICTs to streamline, aggregate, and organise relevant global environmental content on these issues, disseminating and packaging it for easy local use and application. Strengthen local capacities to synthesise, adapt and if necessary translate relevant parts of this global knowledge for local use.

Have halted by 2015 and begun to reverse the spread of HIV/AIDS

Have halted by 2015 and begun to reverse the incidence of malaria and other major diseases

Prevalence and death rates associated with malaria Proportion of population in malaria-risk areas using effective malaria prevention and treatment measures Prevalence and death rates associated with tuberculosis Proportion of TB cases detected and cured under DOTS

V. WG3 Millennium Development Goals and ICT Matrix LOCAL CONTENT The use of ICTs in creating, exchanging and disseminating local content Indicators ICT ContributionLocal Content

Goals and targets

Goal 7 Change in land area covered by forest Land area protected to maintain biological diversity GDP per unit of energy use Carbon dioxide emissions (per capita)

Ensure environmental sustainability Using Geographical Information Systems (GIS) and remote sensing systems to gather local content on environmental degradation. Increase access to information and local knowledge on sustainable land-use practices. Creation of databases to track the Carbon dioxide emissions and to access information on alternative sources of energy. Use ICTs to streamline, aggregate, and organise relevant global environmental content, disseminating and packaging it for easy local use and application. Strengthen local capacities to synthesise, adapt and if necessary translate relevant parts of this global knowledge base for local use. Give greater value to local and indigenous knowledge on local natural biodiversity. Enable local communities to document and express and benefit from their unique knowledge of local natural resources Increasing access to information on local indigenous methods of water-management systems within different agricultural areas. Strengthen local capacities to synthesise, adapt and if necessary translate relevant parts of the global knowledge base for local use. Empower slum dwellers to change their environment by enabling them to use ICTs to document and communicate their situations to local decision makers.

Integrate the principles of sustainable development into country policies and program and reverse the loss of environmental resources

Halve, by 2015, the proportion of people without sustainable access to safe drinking water Proportion of population with access to improved sanitation Proportion of population with access to secure tenure [Urban/rural disaggregation of several of the above indicators may be relevant for monitoring improvement in the lives of slum dwellers]

Proportion of population with sustainable access to an improved water source

Have achieved, by 2020, a significant improvement in the lives of at least 100 million slum dwellers

V. WG3 Millennium Development Goals and ICT Matrix LOCAL CONTENT The use of ICTs in creating, exchanging and disseminating local content Indicators ICT ContributionLocal Content

Goals and targets

Goal 8 Some of the indicators listed below will be monitored separately for the least developed countries, Africa, landlocked countries, and small island developing states.

Develop a global partnership for development Use ICTs to streamline, aggregate, and organise relevant global content on these issues, disseminating and packaging it for easy local use and application. Strengthen local capacities to synthesise, adapt and if necessary translate relevant parts of this global knowledge for local use. Stimulate the creation and organised dissemination of information on these issues by people in developing countries. Through improved access to local information, empower civil society to monitor government actions. Through improved access to local and global information as well as to e business tools, empower local private companies to engage in trade and enterprise. Opening channels so that local knowledge can influence policy and programs

Develop further an open, rulebased, predictable, nondiscriminatory trading and financial system (includes a commitment to good governance, development, and poverty reductionboth nationally and internationally)

V. WG3 Millennium Development Goals and ICT Matrix LOCAL CONTENT The use of ICTs in creating, exchanging and disseminating local content Indicators Official development assistance Address the special needs of the least developed countries (includes tariff-and quota-free access for exports enhanced program of debt relief for HIPC and cancellation of official bilateral debt, and more generous ODA for countries committed to poverty reduction) Net ODA as a percentage of DAC donors gross national income Proportion of ODA to basic social services (basic education, primary health care, nutrition, safe water, and sanitation) Proportion of ODA that is untied Proportion of ODA for environment in small island developing states Proportion of ODA for the transport sector in landlocked countries Proportion of exports (by value, excluding arms) admitted free of duties and quotas Average tariffs and quotas on agricultural products and textiles and clothing Domestic and export agricultural subsidies in OECD countries Proportion of ODA provided to help build trade capacity Proportion of official bilateral HIPC debt cancelled Debt service as a percentage of exports of goods and services Proportion of ODA provided as debt relief Number of countries reaching HIPC decision and completion points ICT ContributionLocal Content Using ICTs, maintain local and international databases and systems to track commitments and results.

Goals and targets

Market access Address the special needs of landlocked countries and small island developing states (through the Barbados Programme and 22nd General Assembly provisions)

Use ICTs to make international and regional market and trade information available and accessible to developing country actors.

Debt sustainability Deal comprehensively with the debt problems of developing countries through national and international measures in order to make debt sustainable in the long term

V. WG3 Millennium Development Goals and ICT Matrix LOCAL CONTENT The use of ICTs in creating, exchanging and disseminating local content Indicators Other In cooperation with developing countries, develop and implement strategies for decent and productive work for youth In cooperation with pharmaceutical companies, provide access to affordable, essential drugs in developing countries In cooperation with the private sector, make available the benefits of new technologies, especially information and communications Unemployment rate of 15- to 24-year-olds Proportion of population with access to affordable, essential drugs on a sustainable basis Telephone lines per 1,000 people Personal computers per 1,000 people Specific ICT Indicators: Number of people trained in ICTs (local capacity building) Number of local companies registered with ICTs as main/major business Number of local domain names registered (locally) - or domain addresses registered to an address in a country Number of PCs per thousand / phones/ mobiles per thousand / radios/radio stations per thousand National ICT policy or dialogue on ICT policies Competitive market / degree of market regulation Number of ISPs per thousand Local ICT-related patents Number of registered software licences in country Number of institutions (i.e.: schools, hospitals, local governments, banks, universities, libraries, etc) connected electronically Number of web pages in major local languages Number of people employed in local ICT sector ICT ContributionLocal Content Using ICTs to enable youth representatives and groups to express their ideas and opinions, locally and internationally. Ensure that young people are sufficiently ICT literate to use global knowledge and to express their own Document and disseminate reliable local information, in local languages, on essential drugs and medicines, including local or traditional remedies. Ensure that people in developing countries value their local knowledge, putting in place incentives that reinforce its creation, communication and exchange. Strengthen the capacities of local communities and organisations to create, communicate and exchange their knowledge, including through the use of ICT-based systems. Ensure that local organisations and communities have the skills and other aptitudes needed to synthesise and adapt global knowledge for their own local use. Set up an open knowledge network to assist people and communities in developing countries to widely communicate, exchange, and broadcast their eContent, in a variety of new and traditional media. Formulate and deliver these activities to promote effective local participation, local ownership, and open communication.

1. Some indicators, particularly for goals 7 and 8, remain under discussion. Additions or revisions to the list may be made in the future. 2. Only one form of contraception: condoms, is effective in reducing the spread of HIV.

Goals and targets

VI. Selected References:

Analysys (2000) A Toolkit for Networking Progress in Developing Countries. http://www.infodev.org/projects/400networkingrevolution/ analysystoolkit.pdf Analysys (2000) The Network Revolution and the Developing World: Final Report for World Bank and infoDev. http://www.infodev.org/library/ WorkingPapers/400.doc Benjamin, Peter (2000) African Experience with Telecenters. http:// www.isoc.org/oti/articles/1100/Benjamin.html Barrera, Zael (1999) Empowering the rural and poor suburban communities in Central America: The Infoplazas program of Panama. Presented at UNESCO International Seminar addressing the digital divide in some of the poorest communities of the developing world http://www.unesco.org/ webworld/public_domain/kothmale_docs/panama.rtf Bridges.Org (2001) Spanning the Digital Divide, understanding and tackling the issues: http://www.bridges.org/spanning/report.html Bridges.Org (2001) Comparison of E-Readiness Assessment Models http: //www.bridges.org/ereadiness/ CID (2001-2002) Information Technologies Group. The Global Information Technology Report 2001-2002:Readiness for the Networked World http://www.cid.harvard.edu/cr/gitrr_030202.html CID (2000) Information Technologies Group. Readiness for the Networked World: A Guide for Developing Countries. http:// www.readinessguide.org CIDA (1997) ICTs and Development: Testing a Framework for Evaluation. http://www.acdi-cida.gc.ca CIPR (2002) Integrating Intellectual Property Rights and Development Policy: Report of the Commission on Intellectual Property Rights. http: //www.iprcommission.org/graphic/documents/final_report.htm Commonwealth Initiative for Informatics Strategies (2001) Guidelines for ICT Policy and Planning http://www.comnet.mt/CRIIS2001/ Documents/ICT2001-W.pdf CTO/Panos (2002) Louder Voices - Strengthening Developing Country Participation in International ICT Decision-Making (w/ case studies on Brazil, India, Nepal, South Africa, Tanzania, Zambia) http://www.cto.int/ frame.php?dir=06&sd=11&id=23

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Daly, John (1999) Measuring Impacts of the Internet in the Developing World. IMP: Information Impacts Magazine. May 1999 http:// www.cisp.org/imp/may_99/daly/05_99daly.htm de Alcntara, Cynthia Hewitt (2001) The Development Divide in a Digital Age http://www.unrisd.org/unrisd/website/document.nsf/ (httpPapersForProgrammeArea)/ 19B0B342A4F1CF5B80256B5E0036D99F?OpenDocument Digital Opportunity Initiative (2001) Creating a Development Dynamic Final Report of the DOI (Analysis of country approaches of Costa Rica, Estonia, Malaysia, South Africa, http://www.opt-init.org/framework.html Digital Opportunity Taskforce [DOT Force] (2001) Digital Opportunities for All: Meeting the Challenge Report http://www.dotforce.org/reports/ DOT_Force_Report_V_5.0h.html ECOSOC (2000) The Role of Information Technology in the Context of a Knowledge-Based Economy. http://www.un.org/documents/ecosoc/docs/ 2000/e2000-52.pdf European Commission (2001) Information Society & Development Review http://www.europa.eu.int/comm/external_relations/info_soc_dev/ index.htm Fuchs, Richard (1998) Little Engines that Did, Case Histories from the Global Telecenter Movement, IDRC http://www.idrc.ca/acacia/engine/ eng_11.htm Gmez, Ricardo IDRC, Canad, & Juliana Martnez, Fundacin Acceso, Costa Rica (2000) Beyond Connectivity: New Information and Communication Technologies for Social Development http://www.idrc.ca/pan/ pubacceso5_e.htm Hafkin, Nancy and Nancy Taggart (2001) Gender, Information Technology, and Developing Countries: An Analytic Study for USAIDs Office of Women in Development. http://www.usaid.gov/wid/pubs/it01.htm Hammond, Allen (2001) Digitally Empowered Development. Foreign Affairs. March/April 2001. http://www.digitaldividend.org/pdf/ 0201ar04.pdf Hudson, Heather E (1995) Economic and Social Benefits of Rural Telecommunications http://www.usfca.edu/fac-staff/hudson/papers/ Benefits%20of%20Rural%20Communication.pdf IDRC (web) Gender and ICTs http://www.idrc.ca/pan/gender/index_e.html

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IDS (2001) Policy Briefing on e-Commerce. http://www.ids.ac.uk/ids/ bookshop/briefs/brief14.html ILO (2001) World Employment Report 2001: Life at Work in the Information Economy. (Background papers on Brazil, Costa Rica, China, Czech Republic, Finland, Ghana, India, Israel, Malaysia, Singapore, South Africa, USA) http://www.ilo.org/public/english/support/publ/wer/ index2.htm infoDev (web) Illustrative Examples of E-Readiness Assessments and Assessment Methods [web resources] http://www.infodev.org/ereadiness/ methodology.htm ITU (1999) Challenges to the Network: Internet for Development. Geneva http://www.itu.int/ITU-D/ict/publications/inet/1999/index.html ITU (web) Improving IP Connectivity in the Least Developed Countries http://www.itu.int/osg/spu/ni/ipdc/index.html ITU (2002) ICT Success Stories Home Page (In preparation for the 2003 World Summit on the Information Society http://www.itu.int/osg/spu/ wsis-themes/ict_stories/ Kennedy School of Government (2000) sponsor The Internet and Governance Panel discussions on the roles of the public sector, international organizations, and NGOs in the formation of Internet policy. http: //www.ksg.harvard.edu/iip/governance/ Kenny, C. and Hawkins, R. (2000) Economic Internet Toolkit for African Policy Makers: An Africa Internet Forum, UNECA and infoDev Project.http://www.infodev.org/projects/finafcon.htm Kenny, Navas-Sabater, and Qiang (2000). ICTs and Poverty. http:// www.worldbank.org/poverty/strategies/chapters/ict/ict0829.pdf Mansell, R. and When, U. [eds.] (1998). Knowledge Societies: Information Technologies for Sustainable Development. Oxford University Press. http://www.susx.ac.uk/spru/ink/knowledge.html Markle Foundation (2002) Roadmap Report Global Policymaking for Information and Communications Technologies: Enabling Meaningful Participation by Developing-Nation Stakeholders http://www.markle.org/ globalpolicy/assets/roadmap_report.pdf Martinez, Juliana (2000) A social vision of the Internet and public policies: ideas on strategies for bringing civil societys influence to bear.

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Working paper for the 2000 meeting, IDRC http://www.idrc.ca/pan/ panlacjulaant_e.htm McConnell, Paul. Ed. (1996) Measuring the Impact of Information on Development: http://www.idrc.ca/acb/showdetl.cfm?&DID=6&Product_ ID=539&CATID=15 McConnell International. (2001) Ready? Net. Go! Partnerships Leading the Global Economy http://www.mcconnellinternational.com/ereadiness/db_ register.cfm?WhichReport=2&WhichFile=ereadinessreport2.htm McConnell International. (2000) Risk E-Business: Seizing the Opportunity of Global E-Readiness. http://www.mcconnellinternational.com/ ereadiness/EreadinessReport.htm N-logue () n_Logue and Rural Internet Driving the Rural Internet revolution http://akash-ganga-rwh.com/IITMadras/nLogue.doc Norohna, Frederick (2002) Open-Source Software Opens New Windows to Third-World, Linux Journal http://www.linuxjournal.com/ article.php?sid=6049 NTIA (2000) Falling Through the Net: Towards Digital Inclusion. A Report on Americans Access to Technology Tools. http://www.ntia.doc.gov/ ntiahome/fttn00/contents00.html NTIA (1999) Falling Through the Net: Defining the Digital Divide. http: //www.ntia.doc.gov/ntiahome/fttn99/contents.html NTIA (1999) Americas New DeficitThe Digital Work Force: Building Infotech Skills at the Speed of Innovation. http://www.ta.doc.gov/ Reports/itsw/digital.pdf NTIA (1998) Falling Through the Net II: New Data on the Digital Divide. http://www.ntia.doc.gov/ntiahome/net2/ NTIA (1995) Falling Through the Net: A Survey of the Haves and Have Nots in Rural and Urban America http://www.ntia.doc.gov/ntiahome/ fallingthru.html Nua Internet surveys (annual) http://www.nua.ie/surveys/ OECD (2002) Information Economy, IT Policy Profiles from OECD Information Technology Outlook 2002 http://www.oecd.org/oecd/ pages/home/displaygeneral/0,3380,EN-countrylist-110-1-no-no-1296110,00.html

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OECD (2001) Understanding the Digital Divide http://lacnet.United Nations ICTtaskforce.org/Docs/OECD/Understanding%20the% 20Digital%20Divide.pdf OECD (2001) Digital Opportunities for Poverty Reduction Joint OECD/ UN/UNDP/World Bank Global Forum OECD, Paris, 5 and 6 March 2001 http://www1.oecd.org/dac/digitalforum/ OECD/ DCD and IDRC. (2001) Donor Information and Communication Technology (ICT) Initiatives and Programmes presented at the Joint OECD/UN/UNDP/World Bank Global Forum Exploiting the Digital Opportunities for Poverty Reduction http://www1.oecd.org/dac/ digitalforum/docs/DO_Session1_Matrix.PDF and http://www1.oecd.org/ dac/digitalforum/docs/DO_Session1_MatrixAnnex.pdf OECD (2000). OECD and the World Economy, Doc. 8804, Science, Technology and Industry Outlook. http://www.oecd.org/pdf/M00032000/ M00032082.pdf Open Source Initiative (OSI) The Case for Open Source: For Business & for Customers, http://www.opensource.org/advocacy/ Pacific Council on International Policy (2002) Roadmap for E-government in the Developing World http://www.pacificcouncil.org/pdfs/ e-gov.paper.f.pdf PanAsia Networking (2002) Participatory policy making in Nepal http: //www.panasia.org.sg/news/rnd_st/ict_rnd04a.htm Proenza, Francisco J., Bastidas-Buch, Roberto & Guillermo Montero (2001) Telecenters for Socioeconomic and Rural Development in Latin American and the Caribbean [IADB, FAO, & ITU] http:// www.iadb.org/sds/itdev/telecenters/index.htm Reilly, Katherine & Ricardo Gmez, Sep (2000) Comparing Approaches: Telecentre Evaluation Experiences in Asia and Latin America IDRC http: //www.is.cityu.edu.hk/ejisdc/vol4/v4r3.pdf Richardson, Don. (1996) The Internet and Rural Development: Recommendations for Strategy and Activity. http://www.fao.org/ WAICENT/FAOINFO/SUSTDEV/CDdirect/CDDO/execsum.htm Roman, Raul & Royal D. Colle (2002) Themes and Issues in Telecentre Sustainability http://idpm.man.ac.uk/idpm/diwpf10.htm

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SAITIS (2000) SAITIS Baseline Studies: A Survey of the IT Industry and Related Jobs and Skills in South Africa. http://www.saitis.co.za/studies/ jobs_skills/ UNDP (2001) Making New Technologies work for Human Development (Human Development Report 2001) http://hdr.undp.org/reports/global/ 2001/en/ UNDP (1999-) Networking and Information Technology Observatory http: //www.sdnp.undp.org/observatory/ UNESCO (2001) The Telecentre Cookbook for Africa: Recipes for self-sustainability http://unesdoc.unesco.org/images/0012/001230/ 123004e.pdf UNESCO (2001) Observatory of the Information Society http:// www.unesco.org/webworld/portal_observatory/Access-Applications/ UNESCO (2000) Third UNESCO Congress on Ethical, Legal and Societal Challenges of Cyberspace: The Fair use concept in education, science, culture and communication http://webworld.unesco.org/infoethics2000/ report_141100.html UNESCO (1996) Information and Communication Technologies in Development: A UNESCO Perspective. Contribution to the InterAgency Project on Universal Access to Basic Communication and Information Services. http://www.unesco.org/webworld/telematics/ uncstd.htm United Nations (2000) United Nations Millennium Declaration. http: //www.un.org/millennium/declaration United Nations ICT Taskforce Working Group Reports http://www.United Nations ICTtaskforce.org/groups/principal.asp United States Internet Council (2000) State of the Internet 2000. http: //usic.wslogic.com USAID (2001) Information Communications Technology Country Assessments for Armenia, Bulgaria, Croatia, and Romania. http:// www.usaid.gov/regions/europe_eurasia/eeresources.html#IT USAID (2001 update) Leyland Initiative: Africa Global Information Infrastructure Project http://www.usaid.gov/leland/index.html Warrier, S. (1999) Internet Unplugged. Interview with Ashok Jhunjhunwala of the Indian Institute of Technology Madras on

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his development of a wireless system to access the Internet. http:// www.rediff.com/computer/1999/jun/16jhunjh.htm Wellenius, Bjrn (2002) Closing the Rural Communication Access Gap: Chile 1995-2002 http://www.infodev.org/library/WorkingPapers/chile_ rural/Chile%20-%20final%2017%20december%2001%20-%20revised.pdf Wilson, E. and Rodriguez, F. 1999. Are Poor Countries Losing the Information Revolution? infoDev Working Paper. Washington, D.C. http://www.infodev.org/library/WorkingPapers/wilsonrodriguez.doc World Bank (2002). Sector Strategy Paper for The Global Information and Communications Department of the World Bank http:// info.worldbank.org/ict/assets/docs/SSP.pdf World Bank (2000) The Networking Revolution: Opportunities and Challenges for Developing Countries. infoDev Working Paper. http: //www.infodev.org/library/WorkingPapers/NetworkingRevolution.pdf World Bank (1998). World Development Report 1998/1999: Knowledge for Development. Washington, D.C. WRI (World Resources Institute). (2001). Digital Dividend Case Studies. http://www.digitaldividend.org/action_agenda/action_agenda_01.htm

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SECTION IV

LOW COST CONNECTIVITY ACCESS

Working Group IV of the United Nations ICT Task Force

A Road To Universal Broadband Connectivity

Alex (Sandy) Pentland, Richard Fletcher, Amir A. Hasson

SYNOPSIS

This paper outlines a migration path towards universal broadband connectivity, motivated by the design of a wireless store-and-forward communications network. It argues that the cost of real-time, circuit-switched communications is sufficiently high that it may not be the appropriate starting point for rural connectivity. Based on market data for information and communication technology (ICT) services in rural India, we propose a combination of wireless technology with an asynchronous mode of communications to offer a means of introducing ICTs with:
affordability and practicality for end users; a sustainable cost structure for operators and investors; a smooth migration path to universal broadband connectivity.

A summary of results and data are given for an operational pilot test of this wireless network in Karnataka, India, beginning in March 2003. We also briefly discuss the economics and policy considerations for deploying this type of network in the context of rural connectivity.

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UNIVE R S A L B R O A D B A N D C O N N E C T I V I T Y

The Digital Divide is just as much about a gap in understanding as it is a gap in connectivity. There are often clear fundamental differences between what is proposed by technology visionaries, many of whom have never seen a village, and what is actually needed by end-users, many of whom have never used a telephone. A number of ICT initiatives offer a promise of closing the gap that separates the approximately four billion rural people from a future with greater literacy, productivity, and quality of life. While the end goal is clearbroadband connectivity everywheremany ICT initiatives have faltered due to a lack of a well-adapted, step-by-step approach that considers social factors and the staging of capital investments as well as technology. As John Gage of Sun Microsystems reminds us, Technology is easy. People are hard. What is needed, perhaps, more than any new technology, is a roadmap indicating how to reach that goal by introducing ICTs to rural areas in a way that is socially appropriate, economically motivating, and technologically scalable.
THE WIRELESS REVOLUTION

Wireless technologies are not only revolutionizing communications in the developed world; they also offer developing countries an opportunity to leap-frog over wire line infrastructures to the forefront of communications. However, since there are many different wireless technologies, it is important to choose the one that best matches the needs of these new markets. While certain technologies have been very successful in urban areas, the rural ICT market has its own set of unique requirements, including: low-cost, low-power, scalability, robustness, and ease of use. Over the past thirty years, a variety of wireless technologies have been used to provide connectivity in developing rural areas and are mentioned below: Radio Links: Radio communication devices, generally operating in the SW/HF/VHF (1-100 MHz) bands, have been very popular in rural regions due to ease of use and low-cost, robust technology. While radio remains the most practical and affordable means of broadcasting and dis-

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tributing information, the use of radio for 2-way communication of digital data has been very limited due to relatively low bandwidth and a lack of standard hardware. In addition, the design of small, efficient, long-distance antennas at these frequencies is not currently feasible. Cellular Phone/Wireless Local Loop (WLL): Given the great success of cellular phone technology in urban areas around the world, it has been interesting to consider the use of this technology in rural areas as well. While the cost of portable communication devices has decreased significantly in the past decade, the cost of the wireless infrastructure requires a high population density and user base to offset its costs. Satellite/VSAT: The use of satellite-based services has traditionally been the only alternative in regions where no ICT infrastructure exists. Over the past 20 years, the increasing use of higher satellite frequencies has enabled smaller parabolic antennas and more compact hardware. While satellitebased connectivity is now becoming more affordable, the hardware cost and service fees are still considerable. In order to justify the cost of satellite connectivity, a satellite ground station must generally be combined with other wireless network technologies in order to distribute the available bandwidth and services to a large user base. WiFi WAN/LAN: Wireless data networks (Wide Area Networks and Local Area Networks) based on the IEEE 802.11 or WiFi standard are perhaps the most promising wireless technology. Given its popularity in developed nations, it is reasonable to consider the use of WiFi in developing countries as well. The forces driving the standardization and proliferation of WiFi in the developed world could also stimulate the communications market dynamic in the developing world. These features include: its ease of set-up, use, and maintenance; its relatively high bandwidth; and, most importantly, its relatively low cost for both users and providers. Standard WiFi connectivity (IEEE 802.11b) provides up to 11Mb/sec data rates, and operates in a band near 2.4Ghz that is generally unlicensed in Europe and the Americas. Newer versions of WiFi provide 22Mb/sec in this band, and versions that operate at higher frequencies provide up to

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54Mb/sec. Tests in rural settings show that a standard WiFi card (such as commonly used with laptop PCs) can provide good connectivity up to a 12 kilometer radius given line-of-sight. With the addition of antennas and repeaters, it is possible to achieve point-to-point connectivity at distances of up to 20 kilometers. WiFi access points (devices commonly used to provide a WiFi network) currently retail for $120, and WiFi cards retail for under $60. WiFi technology opens up new possibilities for rural connectivity in developing countries. However, the successful implementation of this technology and the choice of usage model should be guided by an intimate knowledge of rural communities and their information- and communication-related needs. Our vision is that, provided a conducive regulatory environment, local entrepreneurs within developing countries will leverage WiFi-based technology to: (a) solve the chicken-and-the-egg problem of the simultaneous need for both a market and an infrastructure; and (b) create a widespread wireless infrastructure that grows seamlessly with the rural communications market, ultimately scaling up to universal broadband connectivity.
THE RURAL ICT MARKET

It is estimated that 5-6% of GDP per capita is spent on communications related services in rural India. According to a recent report from Harvards Center for International Development, which surveyed hundreds of household involved in the Sustainable Access for Rural India (SARI) project in Tamil Nadu, India,97 each 1% increase in per-capita income has resulted in a 1.4% increase in communications-related expenditures among rural households. This disproportionate rise in expenditures implies that there is a latent demand for information and communication services such as newspapers, cable-TV, telephone calls, mail, and access to information.98
97. Harvards Center for International Development, Christopher Blattman, Jensen, Robert, Roman, Raul, Assessing the Need and Potential of Community Networking for Developing Countries: A Case Study from India, February 2002, Unpublished, p. 9. Increased communications-related expenditures include: News (2.33%); Cable-TV (1.26%); Phone (1.11%); and Mail (.81%). 98. Ibid.

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In dollar terms, this means that the typical villager in rural India spends about $20/year on media and communications services. This, however, does not mean that a village of 1,000 people could support or provide a timely economic return on a $20,000 communications infrastructure investment, for the following reasons:
(a) User adoption takes time: existing market data suggests that user adoption may only reach 10% within a village in 1 year, and that it may take up to 5 years to reach 20% penetration. (b) Service adoption also takes time: given the social and economic costs of switching to new information and communication services, it will be quite some time before a villager switches his/her annual expenditure over to the new infrastructure. (c) Adoption Incentives: villagers may only switch over to new ICT services if these services represent lower cost substitutes for existing information, transportation, and communication expenses. Therefore in the short term, a villagers annual spending on rural information and communication services may be less than their current expenditure of $20/year.

Given these considerations, we believe that the initial ICT infrastructure investment for a typical village in rural India should not exceed $1,000 in order to provide economically motivating model for investors and operators. This cost should include the communications network as well as the terminal (i.e. a PC computer) and should require minimal recurring costs. This would enable cost recovery within one year of operation assuming a user adoption rate of 10%, a service adoption rate of 50%, and a 10% cost savings over traditionally-used services. In the longer term, if rural ICTs can deliver on their promise of economic development, then, as indicated by the latent demand seen in the SARI project, villagers will have more disposable income and therefore spend more than $20/year on information and communication services. This, in turn, could catalyze further investment, deployment, and adoption of rural ICTs.
THE CABLE TV LESSON

Although the diffusion of an estimated one million Public Call Offices (PCOs) throughout India is a great success story, cable TV adoption in

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rural India may serve as an even better role model for achieving widespread rural ICT penetration.99 Initially, cable TV connections were adopted as semi-public resources, with one terminal serving multiple households. In 1992 there were zero cable TV subscribers in India; by 2002 there were an estimated 55 million subscribers with 10.5 million subscribers located in rural areas.100 In addition to the lack of regulatory barriers, there were two important factors that drove cable TV to widespread private adoption in households: costs and attractiveness of the content. While the importance of the latter (entertainment value) should not be underestimated, the former is most relevant to our scope here. The costs of a cable TV terminal (~1,200 rupees or US$24) and the monthly subscriber fee (60-150 rs./month or $1-$3) were: (a) affordable to most rural households; and (b) provided enough revenue for operators to achieve cost recovery within a reasonable time horizon. The combination of these two factors resulted in widespread proliferation of cable TV, as word travelled fast not only to prospective subscribers, but ultimately to entrepreneurs looking for new opportunities. Given the success of cable TV (issues of piracy notwithstanding), it could be useful to adopt a similar deployment model for rural data services, focusing on affordability and economic incentives for entrepreneurs. Compared to cable TV, one advantage of wireless connectivity is the opportunity to achieve two-way communications. Depending on the media content, it is possible that privately-owned interactive media devices could proliferate even more rapidly than broadcast media such as cable TV due to the network effect of increased value of the medium per new adopter. Examples of such network effects were seen in the adoption of the facsimile machine and internet connections. Rapid proliferation of personal media devices depends critically upon price. For instance, rural telephony has so far proven to be constrained to a public service model (e.g., one telephone per village) since villagers cannot yet afford to adopt telephones and telephone lines for private use.

99. Hariharan, V, Maclay, C, Country Profiles: .in, 100. Dr. Ashok Jhunjhunwala, Enabling Small Towns and Rural Areas of India through Telecom & Internet, 2/26/01,

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SHAR E D V S . P R I VAT E I N F R A S T R U C T U R E

Rural ICTs are typically introduced as a communications channel that is shared across the community. Whether through a PCO or a public computer kiosk, users are introduced to ICTs as shared utilities intermediated by a technically-literate operator. In this shared-use model, many ICTs have relied on real-time communications, such as land-line telephone, cellular phone, or satellite radio links. These real-time technologies can be useful for immediate interactivity and accessing highly time-sensitive information. Successful examples include Indias Public Call Offices (PCO), and the Grameen Phone initiative The strategy of deploying shared, real-time communications, while successful at providing basic services, also has serious drawbacks. One of the main problems is the large capital investment of real-time infrastructure, which requires a high level of user adoption to achieve cost recovery. However, the average villager cannot even afford a personal communications device (i.e. a telephone or computer), let alone a subscription fee for access to the communications infrastructure. Hence, sharing of the communications infrastructure is required in order to support the costs. This limits the all-important added value due to network effects. For example, a typical response from a villager when considering the possibility of making a telephone call is: Who am I going to call? I dont know anybody who owns a telephone. In this sense, the real-time aspect of telephony can also be a disadvantage: both intended parties have to be present at each terminal to capture the full value of the infrastructure. If a caller wishes to contact someone who does not possess (or is not present at) a telephone, then the communication is asynchronous despite the real-time infrastructure. Some kind of additional messaging mechanism (be it a messenger or an answering machine) is required to deliver the callers message to its destination. As a consequence, real-time telephony can reinforce gaps among rural populations since it encourages users to communicate mainly with people who have private phone lines, typically those of higher economic status located in more urban areas. In the Grameen Phone initiative, women were chosen as the community operators to help reduce this effect. Until widespread private ownership of ICT devices becomes economically feasible for end-users, it may be useful to consider non-real-time

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infrastructures and applications such as voice mail, email and electronic bulletin boards. Also known as store-and-forward or asynchronous modes of communication, these technologies can be significantly lower in cost and do not necessarily sacrifice the functionality required to deliver valuable end-user services. They may also be more practical and sociallyappropriate for end-users where communications infrastructure is shared.
S E RV I C E S C O M E F I R S T

Some rural service providers (RSPs) have achieved significant revenues and even profitability by offering lower-cost substitutes for a villagers existing information, communication and transportation expenses. Drishtee (www.drishtee.com) provides an eGovernment-based platform that enables villagers to interact with panchayats (local government offices) remotely from a kiosk in their village brokered by a kiosk operator. A variety of services such as filing a complaint, applying for a loan, and requesting a drivers license are generating up to $2,000/year/kiosk for Drishtee.101 The significant demand for these services results from a sound value proposition: saving villagers time and money. According to a villager who filed a complaint using a Drishtee kiosk:
A visit to Sirsa costs Rs 50 [$1, for travel], plus I waste a day. I will happily give Rs 10, even Rs 30 at the telecenter [kiosk] if I can save this.

Drishtees success suggests that the introduction of ICTs in rural areas may not have anything to do with technology per se. In contrast to many rural ICTs which start with a specific technology and then test out a variety of information and communication services to see which ones get accepted (a push approach), a better approach may be to start with a basic servicein Drishtees case, aggregating demand and brokering information exchange between the villager and the governmentand then see what/ how technology can support and streamline that servicein Drishtees case using computers and available connectivity to capture, send, and receive information electronically. RSPs such as Drishtee, however, are constrained by the lack of a viable

101. The Boston Consulting Group, Drishtee Case Study, March, 2002, PowerPoint presentation.

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communications infrastructure throughout India. For instance, many of the villages that Drishtee operates in Sirsa, Haryana do not have working phone lines due to poor line maintenance and delayed installations. As a result, Drishtee has resorted to an asynchronous approach to connectivity: physically transporting and swapping floppy disks from the village to the panchayat and back againotherwise known as sneaker net. This is viable since Drishtees most revenue-generating applications only require intermittent connectivity.
ASYNCHRONOUS IS SUFFICIENT

The current market for successful rural ICT services does not appear to rely on real-time connectivity, but rather on affordability and basic interactivity. According to Harvards SARI survey:
Rural ICT companies may start their operations by first focusing on providing basic communication and information services rather than more sophisticated applications.102

Another SARI analysis done by McKinsey Consulting indicates that:

Although the universe of potential applications is large, in the short-term only email, scan-mail, voice-over-email and chat are likely to be revenuegenerating applications.103

The McKinsey report also found that the majority of SARIs applications do not require real-time connectivity. It estimates that 50% of all existing rural mail will convert to email, and voice messaging was often preferred to a real-time voice channel. Both email and voice messaging are non-realtime applications. 104 In addition to non-real-time applications such as email, asynchronous modes of communication can also be used to create relevant, local repositories of information that can be grown and queried within the community.

102. Harvards Center for International Development, Assessing the Need and Potential of Community Networking for Developing Countries: A Case Study from India, February 2002. 103. McKinsey report on SARI. 104. Ibid.

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For example, if a person in a village wants to access information from a machine in North America via Internet, that information can then be stored locally on a machine in the village for future use by other villagers. This approach is particularly interesting because the cost of digital storage is decreasing faster than the cost of most communication technologies themselves. By creating a local information cache of commonly requested information, users can benefit from more direct access to information that is of local interest without the need or cost for real-time infrastructure and international bandwidth. Users could search and browse the Web in nonreal-time through applications developed for low-connectivity environments such as TEK. Based on this analysis, the following claims can be made:

Real-time communications are generally too expensive as a widespread investment for the nascent rural ICT market, especially so for private (vs. shared) access. Asynchronous ICT services appear to be sufficient to meet most of the needs of rural communities. Local information caches can be used to provide local users with immediate access to commonly requested information without the need for real-time Internet access. DA K N E T: A R O A D T O U N I V E R S A L B R O A D B A N D C O N N E CT I V I T Y

As an implementation of very low cost asynchronous ICT infrastructure, we have developed a store-and-forward wireless network for rural connectivity known as DakNet. The name derives from the Hindi word dak which means post or postal. The DakNet wireless network takes ad-

This publication is an output from a research project funded in part by CBA (NSF CCR0122419) and in part by Media Lab Asia. Media Lab Asia is funded in part by the Ministry of Information and Communications Technology, Government of India. The research was carried out in support of the Media Lab Asia Program jointly by Massachusetts Institute of Technologys Media Laboratory with Media Lab Asia. Media Lab Asia does not accept responsibility for any information provided or views expressed.

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vantage of existing communications and transportation infrastructure to distribute digital connectivity to outlying villages lacking digital communications infrastructure. DakNet combines physical means of transportation with wireless data transfer in order to extend the Internet connectivity provided by a central uplink or Hub (e.g. a cybercaf, VSAT, or post office) to kiosks in surrounding villages. Instead of trying to relay data over a long distance (which can be expensive), DakNet transmits data over short point-to-point links between kiosks and portable storage devices called Mobile Access Points (MAPs). Mounted on and powered by a bus, motorcycle, or even bicycle, the MAP physically transports data among public kiosks and private communications devices (as an intranet) and between kiosks and a Hub (for non-real-time Internet access). Using low-cost WiFi radio transceivers, the data carried by the MAP is automatically and wirelessly transferred at high-bandwidth for each point-to-point connection. The operation of the network can be described as follows:
1. The MAP devices are mounted on specific transports that regularly pass through a series of villages. 2. As the vehicle carrying the MAP comes within range of each village they automatically sense a wireless connection with a kiosk and start to deliver and to collect data at relatively high bandwidth.

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3. Whenever a MAP comes within range of another kiosk or a Hub, data is automatically uploaded to and downloaded from the intranet/Internet. 4. This cycle is repeated for every vehicle carrying a MAP unit, thereby creating a low-cost wireless network and seamless communications infrastructure. Even a single vehicle passing by a village once per day is sufficient to provide daily information services.

Although the data transport provided by DakNet is not real-time, a significant amount of data can be moved at once. As a result, it is interesting to note that physically transporting data from village to village by this means generally provides a higher data throughput than other lowbandwidth technologies, such as telephone modems. By employing short-distance radio links, DakNet allows for small lowcost low-power radio devices to be used. Perhaps more importantly, the use of short-distance radio links also ensures high-data rates and does not have the interference problems, security problems, and maintenance costs associated with long-distance wireless links.
P O T E N T I A L A P P L I C AT I O N S

The store-and-forward wireless network represented by DakNet can be used for a wide variety of applications that require automated low-cost distribution and collection of information. Examples of application domains are:
Internet/intranet messaging: This can include e-mail, video/audio messaging, mobile e-commerce. Information distribution/broadcasting: this can include community bulletin boards, transfer of educational materials, public health announcements, news, music and video broadcasts. Information collection: This can include collection of environmental sensor information, voting, census/polling, health records, and land records. Rural supply chain management: By incorporating Global Positioning Systems the DakNet network can also function as a means of tracking the movement of vehicles and shipment of goods in a geographical area.

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Information searching, web services: By incorporating new types of Internet applications that are designed for non-real-time access (such as the TEK web-search engine mentioned previously), many new webrelated applications can be developed for the rural market. SEAMLESS SCALABILITY

DakNet provides a seamless method of upgrading to universal broadband connectivity. As a village increases its economic means, the same hardware, software and user interface used for DakNet can be used to provide realtime information access through the deployment of fixed-location wireless antennas and towers. For the end-user, this change is entirely transparent as he/she would not be required to learn any new skills or buy any new hardware or software. The addition of fixed transceivers would provide real-time connectivity, thus enabling new, more sophisticated services, such as Voice over IP (VoIP), which allows normal real-time telephony. Thus, asynchronous broadband wireless connectivity offers a practical stepping-stone and migration path to always-on, broadband infrastructure and end-user applications. Together with the development of two other key components of rural ICTrobust, low-cost terminals and local userinterface design and applicationsDakNet enables price points for adoption of ICTs by individual households and private users.
DAKNET ECONOMICS

A back-of-the-envelope calculation for DakNet suggests that a capital investment of $15M could equip 50,000 rural vehicles with a $300 MAP and thereby provide intermittent broadband connectivity to most of rural India. This is orders of magnitude lower in cost than current alternatives for rural communications. Costs for interactive user devices supported by DakNet are also far more affordable than PCs or traditional WLL equipment. New PDAlike devices using a DakNet-like wireless protocol retail for $100, with a manufacture cost of approximately $50. These costs are being further reduced by system on a chip technology, with prototypes of wireless PDAs achievable at prices as low as $25. A more detailed economic model for a conservative DakNet implementation using standard off-the-shelf equipment indicates that the capital

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cost of a DakNet Hub providing connectivity to 12 surrounding villages is under $6,000 (see Table 1).

Distributing this cost across 12 villages (the estimated average range for 1 MAP is 6 villages), the cost per-village of DakNet would be under $500, which is well under the $1,000 maximum initial infrastructure cost proposed earlier. This could enable each village kiosk operator to achieve profitability within one year of operation, if provided with the necessary end-user terminal and services needed to generate revenue at each kiosk (e.g. Drishtees eGovernment system). This assumes a year 1 penetration of 100 users/ village who each spend 25% of their existing annual ICT expenses on DakNet-enabled services. This revenue model assumes that 39% of gross kiosk revenue is paid to each kiosk operator ($300 for year 1) plus a $100 base salary, and 5% of gross Hub revenues to each MAP operator ($250 for year 1) plus a $100 base salary. If capital expenditures for the villages are assumed by the owner of the Hub, this entity could achieve positive operating income within 24 months of operation and cumulative cash flow positive within 36 months of operation. This also factors in the salary of a Hub manager, rent, and administrative and marketing expenses. The actual economics for a DakNet implementation are specified in the following section.
D A K N E T O P E R AT I O N A L P I L O T

Currently there is a fully operational implementation of DakNet as an affordable rural connectivity solution for Bhoomi, a computerization of land records initiative pioneered by the State Government of Karnataka in India. Bhoomi has been recognized as the first national eGovernance initiative in India as it has been successfully implemented at district head124

quarters across the State and completely replaced the physical land records system.

Figure 2: Map of DakNet-Bhoomi Pilot in Rural India

DakNet has enabled Bhoomi to decentralize its land records database to villages up to 40km away from its district headquarters or taluka in Doddaballapur. This pilot takes advantage of existing transportation infrastructure by outfitted a public government bus with a DakNet Mobile Access Point to transport land record requests from each village kiosk to the taluka server. The server processes requests and outputs land records that are then delivered back to each village kiosk for printing and payment of 15 rupees (US$0.32) per land record. The bus passes by the Hub and stops at each village six times per day (three round trips per day).

Figure 3: DakNet-Enabled Public Bus

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Each time the MAP on the bus comes within range of a kiosk to transfer data it is referred to as a session. The average length of a session is 02:34 (MM:SS) during which an average of 20.9MB can be transferred uni-directionally (from Kiosk to MAP) and up to twice that amount bi-directionally (from Kiosk to MAP and MAP to Kiosk). The average Goodput (actual data throughput) for a session, during which the MAP and Kiosk go in and out of connection due to mobility and obstructions, is 2.47Mb/sec. These averages are based on repetitive testing in a sample group of villages that reflect the range of different antenna configurations. Both omni-directional and directional antennas with differing gains were used according to the orientation of each Kiosk with the road and the bus stop. The total cost of the DakNet MAP equipment used on the bus is US$580, which includes: a custom embedded PC running Linux with 802.11b wireless card and 512MB CF memory; a 100mW amplifier, cabling, mounting equipment, and 14 omni-directional antenna; and a UPS that is powered by the bus battery. The average total cost of the equipment used to DakNet-enable a village Kiosk or Hub is US$185. Assuming that each bus can provide connectivity to approximately 10 villages, the average cost of DakNet-enabling each village in this pilot was US$243 ($185 at each village plus $580 MAP cost/ 10 villages). The DakNet peer-to-peer ad-hoc wireless network is secured by standard 128-bit Wireless Encryption Privacy and restricted by IP address, MAC address, and user authentication.
D A K N E T D E M O N S T R AT I O N

A technology demonstration of DakNet has been performed at Tikawali village in Faridabad, India in March, 2002. The network was implemented to successfully support text, audio, and video messaging as an intranet between the village and a Hub located near Ballabgarh. A video documenting this demonstration is available on www.daknet.net.

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Figure 3: DakNet MAP & UPS on Bus

P O L I C Y C O N S I D E R AT I O N S

As a conclusion, we suggest the following policy measures to help enable universal broadband connectivity for rural communities:
Consider asynchronous modes of communication infrastructure such as DakNet as a starting point for rural ICT market development. De-license the 802.11 wireless (WiFi) spectrum to reduce start-up costs, foster entrepreneurship and scalability, and enable widespread deployment of a wireless communications infrastructure. Monitor adoption and usage patterns to upgrade the infrastructure and scale with demand, culminating in WiFi broadband everywhere. Encourage private sector participation in rural ICT initiatives to increase access to capital and necessary technical resources.

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Gramchitra Taking GIS To Grassroots

Ravi Gupta, Maneesh Prasad, Bal Krishna, Ayon Tarafdar, Satyaprakash, R. Sivakumar, Saurabh Bagaria, P. Venkatram, Alex Pentland

SYNOPSIS

The paper tries to elaborate on a concept that is being used for rural development. GramChitra has been conceptualized as an academic collaboration between; Media Lab Asia; (MIT, USA) and Centre for Spatial Database Management and Solutions (CSDMS, India). The project envisages the development of a participatory model with the help of the community, especially through young minds, to demonstrate the role of maps, Geographic Information Systems, Global Positioning Systems and Remote Sensing in addressing various issues of a cluster of villages in North India. The paper attempts to bring out the process identified and to raise critical implications of such endeavours.
INTRODUCTION

There is no scarcity of water, its electricity that is really my concern said one of the villagers when asked about his village environment. The village, Tikavali set close to the urban centre of Delhi, in Faridabad, seemed to have many enthusiasts, eager to give ready solutions to their problems, whatever they might be. Quite naturally, they all had a long list of problems, but water did not feature in it. Shortage of water was indeed, an

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issue, as was its taste, odour and quality. However, the villager had been living with it for such a long time that he hardly seemed to recognise it. The above description is a glimpse of one of the initial experiences of interaction with the community, in the project of GramChitra, a project conceptualized as an academic collaboration between Media Lab Asia and Centre for Spatial Database Management and Solutions. The project envisages the development of a participatory model with the help of the community, especially through young minds, to demonstrate the role of maps, Geographic Information Systems, Global Positioning Systems and Remote Sensing in addressing various issues of a cluster of villages in North India.
BRIDGING T H E D I G I TA L D I V I D E C O M M U N I T Y G I S

The role of information technology in development is important in many ways not only for development but also for bridging the digital divide between the needy and the knowledge holders. Community building has a social and cultural orientation at its foundation. Successful community building also contributes to building leadership. These initiatives are typically organized by a relatively small group of committed individuals who serve the larger community. Their focus is on increasing social capital by expanding connections within the community and improving the ability of its members to work together effectively. In the wake of renewed global emphasis on local level planning, development and decentralized decision-making, detailed information and impartial analysis are necessary and critical in the sphere of planning (Tarafdar & Krishna, 2002). Technology and GIS comes with the promise of enhancing transparency, rationality and lucidity. It is an approach that is rooted in the theories of social and cultural constructionism, and the practice of assetbased community development (Kretzmann & McKnight, 1993). GIS is a strong tool, which stores spatial as well as non-spatial data digitally and establishes a link between the two. As a result, it produces not just maps but an information system, which can retrieve, analyse and represent the stored data in desired ways. It can be utilised in numerous applications like planning, rural development etc. A digital database also has the advantage of easy cost-effective updating, transparency, rationality and strength of complex analysis. Community GIS is an information system, which is totally for a community. Such a system ideally should be by, for

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and of a community (Tarafdar & Krishna, 2002). In other words, such an exercise shall not only involve community through participatory methods in the database generation, assimilation and analysis but also address the needs, problems and priorities of that particular community. Every community actually needs tools and not schemes to manage and plan their own environment as they see fit. It needs a tool that is specific to its context that takes data and transposes it onto interactive maps making complex problems visually revealing. It should also be interactive so that they can find their own solutions. Interactive community maps could be a modest beginning. In India, village maps do not exist. If GIS can act as a decision support system for a policy maker why cant it be used by village panchayats. The 73rd amendment of the Constitution of India, that empowers village panchayats to take decisions for village development, offers an opportunity for such initiatives.
S E T T I N G TA R G E T S

The villages of Tikavali and Riwazpur in Faridabad were initially chosen for the pilot phase. Subsequently, the project tested and replicated the process for a few other villages around it and in another part of India. The project starts with the basic concept of creating maps and gathering essential developmental data, in the pilot phase. It is being executed under the aegis of Media Lab Asia (MLA), to meet a broader objective of MLA i.e., to bridge the digital divide. Tikavali and Riwazpur are both villages which neighbour metropolitan Delhi and so the problems are neither specific to those of a village or to a city. The village is in a transitory phaseaware of urban facilities and infrastructure, but ignorant of its limitationsthe responsibility of giving back to Nature. The rural sensibilities of the people encourage them to find solutions within what is around them and use it optimally but their urban aspirations force them to ask for more and waste more in the process. The project started with four broad objectives:
1. Generating village maps for planning and decision making; 2. Helping the community in the utilization of maps for solving other village related problems; 3. Developing an attitude of systematic and objective planning through innovative technology interfaces.

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4. Developing a replicable and interactive model for an identified target area to help them understand/ resolve their potential resources in the context of water.

It aims to evolve a methodology of rapid and effective data gathering and village mapping that not only serves the purpose of data assimilation, but also addresses issues of raising map-awareness, promoting digital literacy and moving towards self sufficiency.
E V O LV I N G A M E T H O D

The method for the project evolved as the village got more familiar with the project executors. Initial discussions, repeated site visits, identifying the village community profile and key persons were the building steps. Children are an effective and constructive bridge between the digitally conceived tools and the community. Being young, innovative and inquisitive enables them to absorb new ideas and explore newer possibilities. That also imparts vitality to such initiatives and ideas (Mathur, Mookherjee and Krishna, 2001). During the initial visits to the village, several painting competitions were organised where children were given topics like drawing the route to school from home, sources of water, utilisation of water for agricultural purposes and many more. Some youths were asked to draw a notional map of the village. Through children, the concepts of visual communication tools, maps and meaningful narratives evolved choices that may find their way into certain solution-oriented decisions by the local community. These better-informed decisions may be a result of a proper blending of advance technology and indigenous knowledge. This could be the first step in inculcating the attitude of systematized planning and spatial thinking and can be further complemented with the introduction of GIS and related technologies.
LE A R N I N G T H R O U G H A C T I O N R A P

Children and youth conducted the surveys of the villages. These were of three kinds: map based, icon based and text based. The children used a notional map prepared by them and the youth to visit the areas, locate their homes, and the village-resources on it. The icon-based survey was targeted

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at children of the small age group, and was designed to collect information on water resources and water consumption. Interestingly, the icons used here were taken only from the paintings of the children, drawn by them during the earlier painting competition. The text-based survey was carried out by the village youth to collect socio-economic information of the village. This methodology was later evolved on PDA so that data could be digitally collected directly. Rapid Assessment Procedure (RAP) is a participatory method developed by Social Science and Technology Group (SSTG) of University of Rochester, USA, to perform focused fieldwork around specific topics. The RAP methodology was also tested for a better insight into the various problems and potentials of the case studies. Different categories of people were interviewed in every village to represent a vast canvas of role-players in the village. Interviewees included Panchayat (village decision-making) members, people from upper, middle and lower castes, people with/without access to resources, elders, youth, service/social workers, landowners, teachers, block development officer, etc.
GE O - I N F O R M AT I C S I N M A P P I N G

The prospect of ensuring a low cost mapping output using GPS and its integration with satellite imagery, keeping the accuracy factor intact, was explored. The work was initiated in a village, named Riwajpur, next to Tikaoli. The first step was to ask some village youths, having a geography background, to develop a notional map of the village. In addition, the existing map of the village, prepared by the land survey department in 1953, was also acquired. To upgrade these basic maps with low cost technology, GARMIN make e-trex GPS receiver and Casio make Protrek watch-cum-GPS receiver were used. To get the skeleton map of the village, the streets of the village were mapped, using both GPS in continuous mode and then compared. Important places in the village were also marked (SatyaPrakash & Sivakumar, 2002). The IRS-PAN image was subsequently geo-referenced using co-ordinates obtained by the GPS and then was digitally processed. This street map was then overlaid on the 5.8m resolution satellite image. The roads, as visible on the satellite image, were then interpreted. (Figure 1, shows the map generated from the satellite image.) Image interpretation was carried out to identify other features. The map generated was corrected after ground verification and a final refined
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map was generated (figure 2). Ground verification of the measurements shows that there is a 5m error in the horizontal. Hence further processing with higher accuracy GPS was used for further research.

Fig 1 Map preparation using IKONOS image

The process was later refined with Pretec GPS and PDA running ArcPAD. The IKONOS 1mt PAN was merged with 4mt MSS data to get better spatial and spectral resolution using different image processing techniques. Subsequently the image was geo-referenced using Pretec GPS reading. This was used as a background image for mapping. The track and the house corners were marked on the image, in the field itself. This expedited the survey process and map making. Hence, there was no need for any later ground verification and post-processing of the data.

Fig 2. Sample of Final Map produced

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The attribute and the map could be generated simultaneously, with reasonably good accuracy (SatyaPrakash & Sivakumar, 2002). GIS was used to generate a number of theme maps depicting various information, which were further overlayed and discussed with the villagers for utilisation in problem and solution identification. At this juncture, it is important to comment upon the need that was felt to develop a simple customised GIS that can be easily used by the rural decision makers. Taking up from the final objective of the project, a conscious effort evolved towards the development of an open source and easily multipliable GIS.
E V O LV I N G C U S T O M I S E D G I S G R A M C H I T R A S O F T WA R E

The evolution of Gramchitra took place with the primary need of having a GIS enabled hand-held PDA while doing mapping and surveying. GramChitra is conceptualised and has been developed as a GIS, meant primarily for information gathering from different geographical locations, especially to be used as a decision making tool in a rural community. A few of the features are given below:
Features of Gramchitra 1. 2. 3. 4. 5. 6. 7. 8. Spatial and non-spatial information display, Basic Map Viewing facilities like zoom and pan, Creation of user defined themes, Manipulation of layers, Creation, viewing and modification of markups, Modification of spatial and non-spatial data, Measuring distances on the map using map ruler, Capability to handle multiple maps at the same time.

GramChitra for Handhelds has all the above features with an additional feature of navigation services using GPS devices. It does not yet have the capability to handle multiple maps at the same time. Below is a simple representation of the components of this software. The basic design of the GIS software is schematically represented in Fig 4. Detailed surveys brought out a number of issues. These were co-related with the data from other secondary sources and from primary observation. The following matrix shows the number of interviews that related two

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issues and found them to be linked. The light gray boxes represent the number of interviews that mention only one such link. Dark Grey boxes represent issues linked three or more times (refer Fig 5).

Fig 3. Basic design of the GIS software

Fig 4. Basic design of the GIS software

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Fig5. Matrix of Issues Source: Rapid Assessment Procedure Project Report, June 2002, University of Rochester.

I M P L I C AT I O N S

A number of common themes arose. The community often related two or more themes together. As can be seen by the co-occurrence matrix, people of Riwajpur mentioned six pairs of issues in at least three interviews each,
Agriculture and Electricity Agriculture and Water Caste Issues and Water Education and Unemployment Electricity and Water Health and Sanitation

The challenge now is to further probe into these aspects with focused technical surveys and the development of the GramChitra software for

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application specific utilisation. Such endeavors are underway in order develop a block level decision support system.
W H AT N E X T

Communities of the developing world are stricken with various critical agendasthe motive being to raise living standards. With regard to the various strategies of human and physical development, GIS and ICT does have a positive role to play. However, making the community itself take up the technology might see basic practical obstacles arising, such as (Carver, 2001):
1. Majority of developing nations communities are illiterate or primary-level educated living in adverse conditions, scarcity of resources and unmet basic needs. Using GIS and IT for database generation can therefore, seem luxuries; 2. Political resistance to real local empowerment also comes from local or higher-level power holders; 3. Serious time constraint might crop up in the participation process which has to include extensive training of illiterates and which shall infringe upon their daily occupation;

Hence, with respect to the majority of communities of the developing world, one has to understand that Community GIS has to stress on local indigenous practises and knowledge for its success. This is primarily what we are aiming at too. Experimentation to gauge the level of acceptance and effectiveness has to be carried out. Thorough deliberation on the following two facets, which touch upon aspects of- long term project continuation, monitoring, evaluation and sustainability, can streamline the focus before carrying GIS gadgets to underfed communities;
To whom, in grassroots organizations, is GIS-based information and analysis made available, and in which ways? How does the acceptance and use of GIS affect the overall goals and internal dynamics of grassroots movements?

It also needs to be stressed that, based on existing research in organizational sociology and social movements, several possible consequences of the implementation of GIS are possible. One needs to perceive GIS in terms of (Tarafdar & Krishna, 2002): (1) A shift in mission, as use of participatory

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mapping encourages grassroots groups to become more instrumentalist in their thinking; (2) Preventing the split developing within the movement between more technocratic groups, who have become expert in, and committed to, marketing the new technology and others who resist its application and relevance (which in extreme cases can disrupt the effectiveness of the entire organization, or its legitimacy for its constituency), and; (3) ensuring that there is no marginalisation of local knowledge and other community perspectives that cannot easily be integrated into the technology. REFERENCES
1. Carver, S (2001): Participation and Geographic Information: a position paper. ESF-NSF Workshop on Access to Geographic Information and Participatory Approaches using Geographic Information. Spoleto, December 2001. 2. Kretzmann, John P., & McKnight, John L. (1993). Building Communities from the Inside Out: A Path Toward Finding and Mobilizing a Communitys Assets. Chicago, IL: ACTA Publications. 3. Mathur, S., Mookherjee, S and Krishna Bal (2001): Community GIS on Water in GIS@development, December 2001 issues; AMD Design and Print, Delhi. 4. Tarafdar, A and Krishna Bal (2002): Community GIS vs GIS Community in GIS@development, Vol 6 Issue 9, September 2002; AMD Design and Print, Delhi. 5. Satyaprakash and Dr. R. Sivakumar, Integrated Rural Mapping using Remote Sensing and GPS techniques in the Asian GPS Conference 2002 Proceedings held at New Delhi, Oct 24th and 25th, 2002. 6. Social Science and Technology Group (2002): Rapid Assessment Procedure Project Report, June 2002, unpublished project report, University of Rochester.

(This Publication is an output from a research project, which is a collaborative effort of MLA and Centre for Spatial Database Management and Solutions, and funded by Media Lab Asia. Media Lab Asia is funded in part by the Ministry of Information Technology, Government of India. The research was carried out in collaboration between Centre for Spatial Database Management and Solutions and Media Lab Asia in support of the Media Lab Asia programme.)

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Handheld Computers For Rural Healthcare, Experiences In A Large Scale Implementation

Vishwanath Anantraman, MBBS,MS Tarjei Mikkelsen, MEng, Reshma Khilnani, Vikram S Kumar,, N. Rao Machiraju, PhD, Alex Pentland, PhD, Lucila Ohno-Machado, MD, MHA, PhD

SYNOPSIS

This paper describes the Ca:sh project, which is a handheld-based electronic medical record (EMR) in operation in Ballabhgarh, India. The system is designed for paramedical health workers serving remote areas, giving them access to large medical databases in the field. The system is intended to be independent of any PC-based system. The system addresses two important problems in developing countries: prenatal care and child health. It is open source software based on the free Linux operating system. Currently the system has been operational for 8 months and is used by 10 health workers to track over 70,000 patients. This paper first describes the technical challenges and innovation needed in the design, development, adaptation and implementation of the handheld EMR in a rural setting in India. It goes on to describe the adaptations needed to scale up this pilot project to larger, diverse settings and the authors experience in this area.

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INTRODUCTION

Maternal and child health constitutes a major area of health concern in many developing countries. The maternal morbidity ratio (number of maternal deaths per 100,000 live births) is 440 in India, as compared to 12 in developed countries like the United States [1]. This problem can be addressed among other methods by providing routine medical care for all pregnancies and identification of high-risk pregnancies [2]. Health care delivery in India is different from other countries. Unlike many countries, primary healthcare in India is decentralized and hierarchical. The smallest component in this health care system is a sub-center. Each sub-center serves a population of 7000-8000 people. The area served by a sub-center varies from 10 sq km to 50 sq km. The center is staffed by two paramedical health workers: a female health worker or ANM (Auxiliary Nurse and Midwife) and a male health worker. The ANMs are primarily responsible for maternal and child health. Thus, they are responsible for the health of pregnant and nursing mothers and children under five. The next component of the health care system is the Primary Health Care Center (PHC). Typically, a PHC serves a population of 25000-28000 people and is staffed by several paramedical health personnel, as well as medical doctors. The PHC is the first referral center for commonly occurring diseases in primary care. The community health centers (CHC) are the next in hierarchy.

Figure 1: Healthcare system in rural India ((Shariff and Singh December 2000) (Adapted))

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These centers have facilities for surgical procedures and are a referral center for various specialists. This 3-tiered health system is prevalent all over India, covering the entire population of one billion people. The country is thus served by about 100,000 ANMs. The advantages of an Electronic Medical Record (EMR), as compared to a paper-based record, are well documented in literature. EMRs have shown to improve costeffectiveness [3-5] and improve quality of health care [6]. An electronic medical record in a rural setting has other important public health implications. The data collected by the mobile health workers can be used for better understanding of disease patterns in a community and for optimal health resource allocation. It is also useful to link data from ongoing public health surveys that can be used in public health research programs [7]. The accurate recording of maternal progress of pregnancy is important from a medical standpoint. It is useful to identify high-risk cases early in the pregnancy so that appropriate medical action can be taken to reduce pre-natal morbidity and intra-natal complications. This is particularly important in a rural health setting in India where close to 75% of all childbirths are conducted at homes by untrained or inadequately trained personnel [8]. The recording of pregnancy risk factors, and identification of high-risk pregnancies, can result in sending these high-risk cases to referral centres for better care and hospital delivery. Child health is of prime importance for any country. Child health at primary care is aimed largely at preventive care. This is done mainly through the immunization of infants (children under the age of one year) and prophylactic administration of Vitamin A drops. Children under the age of one year receive one dose of BGC (for tuberculosis), four doses of OPV (Oral Polio Vaccine), three doses of DPT (for Diphtheria, Pertussis and Tetanus) and one dose of Measles vaccine as a part of the Expanded Immunization Program recommended by the WHO [9] and modified for Indian setting as a part of the National Immunization Schedule [10]. As a part of the Indian health policy, they also receive two doses of Vitamin A drops for the prevention of Vitamin A deficiency. The availability of a mobile EMR makes it possible for the ANM to view this information at point of care and receive alerts regarding scheduled immunizations, thus preventing over/under dosages.

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METHODS
Hardware/Software

The need for storing over 7,000 medical records on a single handheld required the use of a stable platform that could perform consistently and reliably, as the ANM would be dependent on it for her day-to-day activities. There was also a need for a fast processor since querying operations on a large database can take a significant amount of time. In view of these considerations, we decided to use Linux running on the Compaq iPAQ as the platform for development. The Compaq iPAQ 3765 was used in the project. This device has 32MB of ROM and 64 MB of RAM. Compact Flash cards were used to store the records. The device was fitted with an expansion slot that can accept Compact Flash cards. Qt/Embedded was used as the software development platform [11]. For the window system, we chose to use Qtopia, which is a simple, powerful, intuitive, efficient, and flexible mobile palmtop environment. One of the primary objectives of using the Linux operating system was to allow easy migration to the popular Simputer [12] hardware platform when commercial offerings of the same are available. For the database, we used MySql version 3.22.32 as provided by the open source Debian Linux project. The database on the handheld synchronizes with the central database (FoxBASE) in the community health center.
Design of user inte rface

The software user interface was designed after studying the routine activities of the ANM. The entire design was created with active participation of the ANMs. Iterative changes in the user interface design, with continuous feedback from the ANMs, contributed towards the easy adoption of the technology. This early involvement at design stages also helped in creating an interface that was intuitive for the ANMs. The India Health Project, where Apple Newtons were used, relied heavily on the use of intuitive iconic interface to allow the health workers to grasp the system better [13]. However, in our approach, the ANMs were comfortable with a text-based input and this allowed us to deploy the system rapidly. The focus was on ensuring structured data entry.
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The software is divided into 4 modules: Household view The point of entry for viewing patients is through the household view, in which the ANM can view each member of the household by entering the house number. Demographic module The demographic module allows the ANM to modify parameters such as Name, Age, and Relation to the head of the household, etc. (Figure 2). There are also the obvious provisions to remove a person from the database (in case of death or emigration from the village), and addition of persons and new households. A new unique number is automatically generated when a new person is added. Most of this data is already pre-populated and any changes required can be done either by using drop down menus or spinboxes. Any text entry is done using the built in soft-keyboard. Antenatal case module The Antenatal Case module has two sub-modules: the first is the registration of a new Antenatal case, and the second is the encounter module. The registration module records date of last menstrual period, history of previous pregnancy, and past medical and obstetric history. All the data are collected in a manner that requires the health worker to merely check or uncheck a box (Figure 3). Care was also taken not to overwhelm the ANM with too many fields on any given form (each form corresponds to one screen in the handheld).

Figure 2: Demographic Module

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The encounter module gives an overview of the current state of the pregnancy, including alerts about the due date of the pregnancy. It also alerts the ANM about pending immunizations and medication due (iron and folic acid tablets). The various clinical data that are input are used for risk assessment of the pregnancy. Immunization module The Child under 5 years module provides logistic support for immunization of children. It allows entry of various clinical data about morbidity in children. The immunization module provides alerts regarding pending immunizations (Figure 4). Contraceptive use is included in a separate module due to its importance in a country like India, where population control is an important issue in health policy. This module includes fields for maintenance of methods of contraceptive use. This module is under development.

Figure 3: Sample form: Antenatal Case Module

Figure 4: Immunization Form and Alerts

Innovation in Technology Compact flash for data transfer In a rural setting with little access to communication technology, transmission of data that is collected by healthcare workers poses a serious challenge. While the handheld device in itself helps the ANM to have access

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to patient records, one of the prime objectives of a data-collecting device is to allow doctors and other healthcare personnel quick access to the collected data to analyze trends and patterns in diseases, both short term and long term, and also to re-allocate resources in real time. With telephone systems still not reliable in many rural parts of India and other developing countries, our approach was to store the data securely on a compact flash device (which can store several hundred megabytes of data) and transport the same physically to the healthcare center. This has two advantages:
1. The healthcare worker does not need to come to the central server for synchronizing the data. 2. The Compact Flash cards act as a backup media for the data on the device itself.

Database architecture The handheld device runs both the SQL server and the client and hence is a self-contained database. This was important, as typically PCs are difficult to maintain in a rural setting. Most current handheld systems in hospital settings depend on the central PC for retrieving records and are designed to store a limited number of records on the handheld device. Having a complete database on the handheld required the optimization of querying techniques to ensure that the records can be assessed without significant delay even on low memory handheld devices. This architecture allows the handheld to plug into any other database system without significant changes to the source code and data-schema. User interface The system was designed using UNICODE standards that allow easy translation to any other UNICODE supported local language. Although most ANMs in India are able to read and write English, this is important if the system needs to function in different settings all over the world. While designing the user interface, care was taken to ensure minimal free text entry. Wherever necessary, a virtual keypad was incorporated on the screen directly that allowed the health workers to rapidly enter numbers (Figure 5). Soft-keyboard was used instead of Graffiti for text entry.

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Figure 5: Example of embedded keypad for rapid identification of house number.

R U G G E D I S AT I O N

The system is used in tropical countries with high humidity and a dusty environment compared to the conditions that these devices were originally designed for. The iPAQs were protected in ruggedised cases and the screens were fitted with a thin layer of plastic, the screen protectors. This helped prevent scratches on the screen due to dust particles.
Results

The system was implemented in the Ballabhgarh area in Northern India. The area is served by the Community Medicine Department of All India Institute of Medical Sciences, covers a population of over 70,000 people, and has 10 ANMs among other medical personnel. The initial phase involved the test implementation lasting for 5 months and four ANMs were selected for the trial. In the selection of the ANMs, care was taken to ensure inclusion of both early adopters of technology and potentially late adopters (including the older ANMs and those who had never used a computer before). The ANMs were trained with the help of two engineering students and three doctors from the local area. This allowed them to interact in the local

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language. The training was divided into 2 phases. In Phase 1, the ANMs were taught the basics of switching on the iPAQs and using the stylus. They were also trained to insert the Compact Flash and overall structure of the Qtoptia windows system on the iPAQ. This took 3 hours and was designed to be an interactive one-on-one exercise. Despite the fact that none of the ANMs had used a handheld computer before, they were able to use it after this training. We evaluated their proficiency by testing some of the tasks, such as starting an application, entering text data, resetting the device (rebooting). The ease with which the health workers, many of whom had never used any computer before, learnt to do so was encouraging. Phase II of the training involved the use of the EMR system. The initial training for the first version of the software took 2 hours. Since the design of the system was done iteratively and changes to the system took place everyday over a period of two weeks, every new version required 20-30 minutes of re-training. There were many issues that required subtle changes to user interface that were immediately incorporated. This method, in which the end users were continuously involved in the design of the interface, was important for enthusiastic adoption of the system. Current evaluation of usability, accuracy and reduction of time for entry of data for the four users is encouraging. Previous studies have shown healthcare providers satisfaction with replacement of paper-based records with handheld electronic records [14]. The results of the evaluation indicated high user satisfaction and reduction in total time for data entry [15]. An evaluation on the impact of alerts was not done. This evaluation was done within three months of implementation and was limited to a small number of users; hence, significant results could not be obtained. Also many of the parameters that will give an important insight into the actual impact on rural healthcare, such as changes (improvements) in maternal morbidity/mortality, infant mortality rates, better immunization recording and coverage, require a longer duration for the system to be running before any conclusive results can be obtained. Such a study is being planned. The ANMs were satisfied with the user interface and were able to depend entirely on the handheld, replacing their existing paper based records. At the end of the first phase of testing, the system was scaled up for the use of all the 10 ANMs of the health center.

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Discussion

We have implemented an EMR for addressing a unique problem of providing logistic support to a paramedical health worker providing primary healthcare in rural areas. The current system is stable and replaces the existing paper-based system. This system will benefit the local community for better delivery of maternal and child health. The alerts that the system provides are considered useful by the ANM. The adoption of disruptive technology is best achieved by involving the end users in the design process.
Next stepsIssues of scalability

The experience with the successful implementation of the Ca:sh project, and its enthusiastic acceptance by the medical community, led us to think about providing additional tools and scaling up of the project to address several similar problems in healthcare in different developing countries. From a design and technology point of view, several issues had to be addressed:
1. Cost of handheld device: The original project was done using iPAQ computers that are expensive (approx $400-$500). The main reason for using them was to allow flexibility in programming and to create a platform for further development. It was necessary to address an important need in keeping the cost of the device low, particularly since the target market was in developing countries and NGOs. There was also a need for a device that is proven scalable and robust in different settings. The Simputer [12] with its promise of ruggedness and simplicity was the obvious choice during the initial stages of development. However, with hardware prices of Simputer in the current market (June 2002) being close to US$300, and given that the device is not yet easily available for large scale deployments, it was decided to use Palm-based devices. The Palm-OS based devices such as the Palm m125, Palm 105 and Handspring Visors have matured into stable platforms for a variety of applications. The software that is currently being developed is intended to work on the devices that are in the US$100-$125 range.

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2. Generalization of software platform: The software had to be redesigned completely to allow further generalization to be used in different rural healthcare scenarios. The software was designed with modules for both maintenance of medical records as well as conducting paper-less surveys in the field setting. The system allows integration of other technology such as GPS for disease surveillance, wireless modules for interactive telemedicine, low-cost cameras for teledermatology and use of other telemetry devices. There was also emphasis on creating a general framework for point of care evidence-based medicine using Clinical Guidelines. This includes abstraction of rules and adaptation of rules for local settings [16]. 3. Support issues: Continuous software support to maintain a system such as the Ca:sh project is necessary. The availability of highly skilled software engineers in many developing countries allows the system to continue to be used optimally. The system also needs to be designed in a modular fashion to allow easy transfer of specific technology and build local expertise in these domains. Hardware support is also an important issue. In the initial stages, it will be necessary to have backup systems to ensure low hardware downtime, especially since replacement parts for handheld devices may not be available in many countries. The cost of handhelds, however, being in the $100-$125 range will allow any implementation to have an adequate inventory of backup devices that can be used to replace defective ones. We envision that handhelds will have to be replaced every 18 months with continuous usage. Thus, implementation can be supported without hardware engineers at the point of the implementation.

ACKNOWLEDGEMENTS We would like to thank the staff from All India Institute of Medical Sciences (AIIMS, New Delhi), including Dr. Suresh Kapoor, Dr. Anand, Dr. Binod Kumar and others, including the ANMs, whose support was crucial in implementation of the project.. This research was supported by grant 1D43TW01279-01 from the Fogarty International Center, NIH and Media Lab Asia. Media Lab Asia is funded in part by the Ministry of

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Information Technology, Government of India. The research was carried out in support of the Media Lab Asia Program jointly by Massachusetts Institute of Technologys Media Laboratory with Media Lab Asia. Media Lab Asia does not accept responsibility for any information provided or views expressed. Concept Labs, Inc was instrumental in helping to commercial the concept. REFERENCES
1. Carla, A. and W. Tessa, Maternal Mortality in 1995: Estimates developed by WHO, UNICEF, UNFPA. (http://www.childinfo.org/eddb/mat_ mortal/matmor.pdf), 1995. 2. International, F.C., Maternal Mortality. (http://www.safemotherhood.org/ facts_and_figures/maternal_mortality.htm), 1998. 3. Wager, K.A., et al., Impact of an electronic medical record system on community-based primary care practices. J Am Board Fam Pract, 2000. 13(5): p. 338-48. 4. Espinosa, A.L., Availability of health data: requirements and solutions. Int J Med Inf, 1998. 49(1): p. 97-104. 5. Royer, M.B., Electronic patient records: cost savings, efficiencies and competitive strategies for specialty physician groups. Coll Rev, 1996. 13(1): p. 23-33. 6. Davis, M.W., Reaping the benefits of electronic medical record systems. Healthc Financ Manage, 1993. 47(6): p. 60-2, 64, 66. 7. Hannan, T.J., et al., The Mosoriot medical record system: design and initial implementation of an outpatient electronic record system in rural Kenya. Int J Med Inf, 2000. 60(1): p. 21-8. 8. Shariff, A. and G. Singh, Determinants of Maternal Healthcare Utilization in India:Evidence from a Recent Micro-Household Data. December 2000. 9. WHO, History of Vaccination. http://www.who.int/gpv-dvacc/history/ history.htm., 1988. 10. India, G.o., National Child Survival and Safe Motherhood Program,. Programme Interventions Immunization, cold chain, MCH Division, Ministry of Health and Family Welfare New Delhi, 1994. 11. Trolltech.com, The Qt/Desktop Product Family. http://www.trolltech.com/ products/qt/index.html, 2002.

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12. Simputer.com, Simputer : Radical Simplicity for rural access. www.simputer.org, 2002. 13. Graves, M., S. Grisedale, and A. Grnsteidl, Designing Technology to Support Rural Healthcare Workers in India. SIGCHI, 1998. Vol.30(No.2). 14. Thomas, S.M., J.M. Overhage, and C.J. McDonald, A comparison of a printed patient summary document with its electronic equivalent: early results. Proc AMIA Symp, 2001: p. 701-5. 15. Anantraman, V., Open Source Handheld-based Electronic Medical Record With Decision Support for Paramedical Health Workers. MIT Thesis, 2002. 16. Boxwala, A.A., et al., Toward a representation format for sharable clinical guidelines. J Biomed Inform, 2001. 34(3): p. 157-69.

Figure 6: iPAQ 3765 running the Linux Ca:sh application

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Figure 7: Health worker in Ballabhgarh, India using a PDA

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Section V

BUSINESS ENTERPRISE AND ENTREPRENEURSHIP

Working Group V of the United Nations ICT Task Force

Supporting Entrepreneurship In Developing Countries: Survey Of The Field And Inventory Of Initiatives
Prepared by Bridges.org to inform the deliberations of the Business Enterprise and Entrepreneurship Working Group of the United Nations ICT Taskforce
Acknowledgement. We would like to thank the people and organisations that provided information for this report. We would also like to thank Hewlett-Packard for supporting this work.
SYNOPSIS

There is growing evidence of a significant causal relationship between entrepreneurship, economic growth and poverty reduction. Small, micro and medium-sized enterprises (SMMEs) are often the backbone of the private sector in the developing world, creating jobs and providing a tax base for local government. In addition, frequently SMMEs offer the only employment available to millions of poor people. Yet many developing countries have been unable to create and maintain the favourable environment needed to foster SMME development. Potential entrepreneurs and many existing companies in developing countries need help to execute their ideas and build successful businesses. Entrepreneurship support offers a new model for fighting poverty and ensuring economic growth and has come to the forefront of activities to bridge the digital divide and deliver development aid. A significant number of ground-level initiatives are already underway. There are also several highlevel initiatives being planned that may result in considerable resources going to entrepreneurship support during the year ahead. The needs of this crucial sector must be understood in order to frame an effective and sustainable approach to modern development aid.

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Entrepreneurship support initiatives (ESIs) come in a variety of shapes and sizes, and they offer a range of services to SMMEs and entrepreneurs. We have selected sixteen initiatives that are notably successful, innovative, or representative of a particular type to illustrate the kinds of ESI services that are available and the methods that are being used to promote entrepreneurship. We have covered a range of programmesfrom local community initiatives to large international effortsbut have emphasised international initiatives that work at a community level because that approach is growing in prominence and proving to be an effective model. A more extensive list of ESIs is presented in the Annexes to this report. The entries are grouped according to type and geographic region, and each includes a brief description of the activities, giving a quick but comprehensive overview of a broad range of ESIs. The inventory is intended as an organic, growing document; it represents a small step in cataloguing the array of entrepreneurship initiatives that exist. Even a cursory examination of ongoing ESIs reveals how this methodology for development aid is taking shape and the trends in the field. Wealth creation is increasingly seen as a vehicle for social change and social entrepreneurship is on the rise. Following the approach of a few trailblazing organisations, there is a wave of new initiatives that emphasize public/private partnerships and incorporate basic business principles, emphasizing accountability and measurable results. Careful screening of the participating entrepreneurs is a common trait. More efforts are tapping into the power of human connections by building relationships among like-minded individuals and organisations so they can share experiences and contacts. ICT is being increasingly is used both in the delivery of ESI services and as a foundation for successful SMMEs. This survey of the field and inventory of initiatives aims to spur thinking about facilitating SMME development by looking at the various kinds of entrepreneurship support initiatives that are available and what they provide. It is intended as a resource for connecting like-minded ground-level initiatives, so they can exchange information, learn from one another and avoid duplication of effort. It is also intended as a report to the various international planning efforts currently underway; to inform their deliberations about the value-added they can bring to this area.

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1 . I N T R O D U C T IO N

It is increasingly recognised that effective and sustainable development assistance must be tailored to local circumstances and built upon a foundation of private sector investment and the participation of the nations poor. Entrepreneurship support offers a new model for fighting poverty and ensuring economic growth in developing countries and it has come to the forefront of activities to bridge the digital divide and deliver development aid. From the G8 to the United Nations to a wide range of ground-level initiatives, many efforts are underway aimed at stimulating the growth of small, micro and medium-sized enterprises (SMMEs) to bring economic opportunity to those who need it most. Small businesses are often the backbone of the private sector in the developing world, creating jobs and providing a tax base for local government, which provides revenue for things like improving basic infrastructure, schools, and hospitals. Moreover, frequently SMMEs offer the only employment available to millions of poor people throughout the world. Nevertheless, potential entrepreneurs and many existing companies in developing countries need help to execute their ideas and build successful businesses. In a new twist on the old adage, it is not a question of whether to give a man a fish or teach him to fish: what is needed to make a real difference is fishing schools. A significant number of initiatives support entrepreneurship and foster the potential SMME sector in developing countries. The services provided, and the geographic areas served, vary widely. For example, Trickle Up helps small and micro businesses in 32 countries around the world with planning support and small seed funds, while Endeavor works in four South American countries to assist medium-sized high-growth companies to connect with angel investors and finance institutions. The Cape IT Initiative (CITI) is an example of a locally driven effort; it aims to foster the growth of an information and communications technology (ICT) sector in the Western Cape region of South Africa with its Bandwidth Barn business incubator. There are also several high-level initiatives in planning that may result in considerable resources being devoted to entrepreneurship support during the year ahead. Following the G8 Digital Opportunity Task Force (DOT Force) report issued in May 2001 a public and private sector group was tasked with devising a concrete outcome under Action Point #4 that calls for G8 Governments to foster enterprise and entrepreneurship for

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sustainable economic development. That effort will soon come to a conclusion. The Enterprise Steering Committee of the World Economic Forum (WEF) has created the Enterprise Channelling Organisation (ECHO) as a new model for delivering development aid at ground level that offers support to entrepreneurs through donations of human and other resources instead of money, and it is currently being piloted in two countries. The Business Enterprise and Entrepreneurship Working Group (WG #5) of the United Nations ICT Task Force has a mission to foster enterprise and entrepreneurship for sustainable economic development, including poverty alleviation with an emphasis on women and youth employment, and it offers hope as a forum where a number of leading efforts could come together under one umbrella. The Global Digital Opportunity Initiative (GDOI), being driven by the Markle Foundation, UNDP and an illustrious steering group is also expected to weigh in on the matter. This survey of the field and inventory of initiatives aims to spur thinking about facilitating SMME development by looking at the various kinds of entrepreneurship support initiatives (ESIs) that are available and what they provide. It is intended as a resource for connecting like-minded ground-level initiatives, so they can exchange information, learn from one another and avoid duplication of effort. It is also intended as a report to the various international planning efforts currently underway; to inform their deliberations about the value-added they can bring to this area. This report starts with a brief consideration of why entrepreneurship is important in developing countries and the needs that ESIs seek to fill. The second section describes sixteen leading and/or representative initiatives that we have selected to illustrate the scope and variety of entrepreneurship support services available. The third section looks more broadly at the trends in the field of entrepreneurship support. Finally, two Annexes to this report list ESIs in developing countries, categorized by geographic area, level of support, and type of services provided.105

105. We have tried to make the list as comprehensive as possible but any such inventory exercise is an enormous task; we recognise that the list is incomplete, but believe that it is a useful start. We will periodically update the list and invite input on additional initiatives to be listed.

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2. WHY I S E N T R E P R E N E U R S H I P I M P O R TA N T TO DEVELOPMENT?

The number of poor people on the planet is increasing exponentially and digital divide statistics show that technology is exacerbating the problem of inequity, not helping alleviate it. There are now 1.2 billion people living in abject poverty out of the six billion on the planet. More people have lifted themselves out of poverty in the past 50 years than in the previous 500 years; but because the world population has grown so significantly, there are more poor people than ever before. Political upheavals and natural disasters wreck havoc, but for those living close to the edge, so do smaller tragedies such as an extended illness, death, or one season with too little rain. Having a large percentage of the population thus exposed exacerbates the cycle of poverty and leaves national economies facing disaster, where a stable tax base is difficult to achieve and needed infrastructure difficult to build or maintain. Poverty and insecurity can lead to extremism, which threatens the safety and stability of everyone in every corner of the globe. There is growing evidence of a significant causal relationship between entrepreneurship, economic growth and poverty reduction. Fostering the development of SMMEs to help people employ themselves and others may offer the best hope for breaking the poverty cycle in many developing countries and disadvantaged communities. The importance of entrepreneurship should not be underestimated, and the needs of this crucial sector must be understood in order to frame an effective and sustainable approach to modern development aid. Various levels of SMME employment and entrepreneurship are important to economic development. For example, over the past two decades, employment in the informal sector has risen rapidly in all regions of the world. The informal sector is defined as those who work in small unregistered enterprises, both employers and employees, as well as self-employed persons who work in their own or family businesses. The informal sector is responsible for 93% of new jobs in Africa and 83% in Latin America and the Caribbean. This sector represents a large and growing segment of the workforce in developing nations. According to the Global Entrepreneurship Monitor (GEM), in the 29 countries surveyed in 2001, almost 150 million people are engaged in some form of entrepreneurial activity. GEM differentiates between opportunity entrepreneurshipexpanding busi-

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ness to take advantage of a unique market opportunityand necessity entrepreneurshipthe best option available. Sixty-three million people reported that they started their own small businesses because there were no other choices for work. The Monitor found that the prevalence rate for necessity entrepreneurship was positively associated with economic growth; that can drive change at a macro-economic level in developing countries. In the United States, venture capital-backed companies created 4.3 million new jobs in 2000, and $736 billion in revenues7.4% of the GDP. While most entrepreneurs in developing countries depend on informal investments from friends and family, the end result remains the same: entrepreneurial activity makes a significant and systemic difference in the economies of developing (and developed) nations. Moreover, the benefits of encouraging entrepreneurship go beyond pure economics. As people gain confidence, financial breathing room, and access to information, they gain political will and are less likely to tolerate corrupt governments and unhealthy living conditions. In addition, it follows that they will seek higher levels of education for themselves and their children, along with improvements in their home and community life. Further, there is the promise that entrepreneurs in developing countries can learn from the experiences of the developed world and adapt best practices to their own situations. This would help them avoid a resource intensive development stage and base new businesses on a sound environmental footing.
Barriers to entrepreneurship

It is apparent that entrepreneurial activity is beneficial for developing countries both at a micro levelin terms of creating stable and sustainable employment for individualsand at a macro levelwhere it significantly increases a nations GDP. Yet many developing countries have been unable to create and maintain the favourable environment needed to foster SMME development. There are a number of barriers that entrepreneurs in developing countries face, which entrepreneurship support initiatives can help address. The factors affecting entrepreneurial activity can generally be divided into four categories:

Infrastructure: Quite often the barriers to starting and maintaining a business come down to simple, yet often insurmountable factors, such as lack of roads, facilities, electricity or phones.

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Legal and regulatory framework: Governments need to have a positive perception of entrepreneurial activity, reduce the administrative burden on entrepreneurs, and coordinate among their agencies to ensure that the necessary resources are directed where they are needed. Financial support: A major obstacle for many potential entrepreneurs at the lowest end of the economic spectrum is lack of access to the credit or seed funding necessary to start a business. Entrepreneurs who are starting up larger businesses face difficulty raising investment capital and a lack of sound market-based policies. Social: The concept of entrepreneurship is not native to every culture or society. The fear of failure can be a barrier. Creativity and innovation are not always valued traits. Many developing countries have social systems that create dependence and hopelessness. Women and minorities especially need role models to demonstrate the positive outcomes of innovation and risk-taking.

An additional barrier is the overarching mindset that entrepreneurship cannot be taught, that it is a creative and innovative way of thinking that comes naturally to some people and not to others. While it is true that some individuals are gifted with creativity to develop new ways of doing things, creativity alone is not sufficient. Ideas must be matched with basic skills and an understanding of business practicesand these are things that can be taught to help burgeoning entrepreneurs create successful businesses.
ICT and entrepreneurship

ICT is a tool. It is a tool for improving the way that companies do what they do, as it is a tool for improving the delivery of social services like healthcare, education, and government-to-citizen programmes. We take it as a given that any ESI should be using technology as a tool for delivering on its mission as well as providing appropriate ICT-based business skills training as part of the services offered to entrepreneurs. ICT may not seem like a central concern when supporting entrepreneurs that need a good business plan and seed funding more than they need a computer. However, the reality is that a long-term view in todays information society requires that most SMMEs have some level of ICT use integrated into

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their business. An entrepreneur who uses ICT appropriately and effectively can run a more efficient business and reach markets that were previously unimaginable.
3. ENTRE P R E N E U R S H I P S U P P O R T I N I T I AT I V E S

We estimate that there are hundreds of entrepreneurship support initiatives currently underway around the world. However, in this report we have selected sixteen that are notably successful, innovative, or representative of a particular type. We have covered a range of programmesfrom local community initiatives to large international effortsbut have emphasised international initiatives that work at the community level because that approach is growing in prominence in the development community and increasingly proving to be an effective model. These initiatives illustrate the kinds of ESI services that are available and the methods that are being used to promote entrepreneurship. A more extensive list of ESIs is presented in the Annexes to this report. The initiatives described in this section are: Acumen Fund, Cape IT Initiative (CITI), Development Gateway, DevelopmentSpace, Digital Partners, Endeavor Global, Enterprise Development Department of the UK Governments Department for International Development (DFID), Foundation for Economic and Business Development (FEBDEV), Geekcorps, Grameen Family of Organisations, National Association of Women Entrepreneurs of Malaysia (NAWEM), New Ventures, PEOPLink, Technoserve, Trickle Up, and Volunteers in Technical Assistance (VITA). We have described each ESI according to the following pattern:
Type of initiative Services provided Where to go for more information Who runs the initiative? Where does the initiative do its work? What does the initiative do? What is the role of ICT in the initiative? Who is the client or audience? How is the success of the initiative measured? How is the initiative funded?

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1. Acumen Fund

Type of initiative: social investment firminternational, community level Services provided: planning support, financial support, networking and relationship building For information:

http://www.acumenfund.org/Acumen/Portal/Home/POCHome.asp
74 Trinity Place, ninth Floor, New York, NY 10006 USA Email: postmaster@acumenfund.org, Tel: +1 212 566 8821, Fax: +1 212 566 8817 Who runs the initiative? The Acumen Fund is a 501(c)(3) non-profit organisation founded in April 2001. The Fund is governed by a Board of Directors, and it is based in New York. Jacqueline Novogratz is the CEO. Where does the initiative do its work? The Fund currently has investments in Africa and South Asia, and it will soon be expanding its investments to the Middle East and Central Asia. What does the initiative do? There is a need to fundamentally reshape the face of philanthropy so that social investment is treated more like any other investment. The solution: The Acumen Fund identifies high-impact social organisationsboth for-profit and non-profitconnects them to philanthropists who want measurable social results for their investment, and measures the result of the impact. Each portfolio is structured around a focused theme, and contains a mix of organisations and strategies for tackling related social problems. Acumen is initially focusing on innovative health technologies. Each portfolio will initially invest US$2 million in five to eight organisations that meet the following criteria:
Substantial opportunity for social impact: scalable solutions to key problems or innovations that address underlying causes. Outstanding leadership: ability to prioritise and understand the market, societal, and political forces with which the organisation operates.

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Path to sustainability: clear, realistic business model, sound risk assessment, potential for financial sustainability, and the capacity to demonstrate measurable results. Acumen Fund value added: opportunity to increase chances for success through close consultation on strategy, organisation, or resource development. Building long-term relationships: willingness to work with Acumen Fund over a 2-3 year period to help solve specific problems, to develop measures for impact and progress, and to report regularly to the Acumen Fund and its donors.

What is the role of ICT in the initiative? Acumen invests in projects involving innovative ICT use. Who is the client or audience? Organisations or phased projects with budgets ranging from US$150,000 to US$2,000,000, where Acumen provides 10%-20% of the project budget. How is success measured? As a new organisation, there has not been enough time to fully realize the impact of the Funds activities. However, the Fund embraces the operational and financial rigor that the venture capital community applies to for-profit investments. It measures and tracks projects on three fronts: monitoring organisational effectiveness via agreedupon milestones, identifying potential risks to success, and measuring social changes or public dividends that result from philanthropic investment. How is the initiative funded? The Fund was created with US$8.5 million in seed money provided by the Rockefeller Foundation, in partnership with the Cisco Foundation, W.K. Kellogg Foundation and individual philanthropists from the technology and investment communities.
2. Cape IT Initiative (CITI)

Type of initiative: ICT sector organisationlocal, community level Services provided: studies and inventories, practical and management support, networking and relationship building, business incubation

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For information: http://www.citi.org.za/ PO Box 7210, Roggebaai 8012, Republic of South Africa Email: Peter.Frampton@citi.org.za, Tel: + 27 (0) 21 409 7000, Fax: + 27 (0) 21 409 7050 Who runs the initiative? CITI is a Section 21 non-profit organisation started in 1998 by a group of Western Cape business people. It is based in Cape Town, South Africa. CITI has a staff of six, a Board of Directors, and a Stakeholders Forum. The organisation is answerable to its members, ICT businesses, and stakeholders. Peter Frampton is the Executive Director. Where does the initiative do its work? The Western Cape region of South Africa. What does the initiative do? The problem: The Western Cape has the potential to become the ICT centre of South Africa if the proper environment is created. CITI aims to facilitate the development of the Western Cape region as the ICT gateway to Africa by supporting the growth of the ICT cluster of businesses in the Western Cape. CITIs areas of focus are ICT cluster marketing and networking, ICT business development, ICT skills development, and influencing ICT policy. CITI serves as a networking hub for the ICT community of the Western Cape through the maintenance of a directory of the local ICT community, the collection of data about the ICT community, organizing ICT networking events, and the connection of venture capitalists to local ICT start-ups. Projects supporting these activities include:
The Bandwidth Barn: Cape Towns first networked business incubator, the Barn provides ICT start-ups access to low-cost services and supporting companies, FutureCITI: an education and outreach programme that aims to increase the number of ICT skilled individuals in the Western Cape; the goal is to retain ICT skilled workers in the region while developing and integrating a broader ICT skilled workforce in the community, Sector Scan: a comprehensive annual study of the ICT industry in the Western Province. CITI has just completed its 2001 Scan.

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What is the role of ICT in the initiative? ICT is the driving force behind CITI as it fosters the development of the ICT industry in the Western Cape through networking and support services. Who is the client or audience? ICT start-ups and potential venture capitalists. How is success measured? CITI does not have a formal methodology for measuring success. However, the Bandwidth Barn has proved to be effective in supporting small and medium-sized ICT businesses. It is a selfsustaining programme, operated as a wholly owned Proprietary Limited subsidiary of CITI, with 30 tenants. UUNET SA has agreed to extend their sponsorship to support a number of CITI projects including a second Bandwidth Barn in Cape Town and a third in Johannesburgs Gallo Manor. CITI has more businesses that want to be a part of the Bandwidth Barn than it can currently serve. How is the initiative funded? The initial funding for CITI came largely from regional and provincial Government and the Western Cape Provincial Administration, Department of Economic Affairs. The Department of Trade and Industrys Sector Partnership Fund (SPF) and UUNET SA financed the Bandwidth Barn project. CITI now receives revenue from membership, both business and individual.
3. Development Gateway

Type of initiative: web portalinternational, national level Services provided: studies and inventories, financial support (information only), networking and relationship building, policy For information: http://www.developmentgateway.org/ 815 Connecticut Avenue, NW, Suite 620, Washington, DC 20006 USA Email: info@developmentgateway.org, Tel: +1 202 458 7226, Fax: +1 202 522 7479

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Who runs the initiative? The Development Gateway is a project of the Development Gateway Foundation, a 501(c) (3) non-profit organisation. The Foundation is governed by a Board of Directors, officers, an executive committee, a nominating committee, a Foundation secretariat, and an editorial committee. It is based in Washington, DC. The Gateway is run by a staff of 31 in one office. Carlos Alberto Primo Braga is the Programme Manager. Where does the initiative do its work? The aim is to reach any place where Internet connectivity and bandwidth allow effective access to the website. There are Country Gateways in 19 countries in Africa, Asia, Europe, Latin and Central America, and the Middle East. What does the initiative do? The problem: There is no central repository of information related to development. The solution: The Development Gateway is a website portal that provides information, products, and services focused on development issues, including resources that could benefit developing country entrepreneurs. It aims to help communities, organisations, and individuals build partnerships, share ideas, and work together to reduce poverty. The Gateway provides simple user interfaces for numerous functions: sharing knowledge and discussing issues, registering and profiling users, accessing projects and statistical databases, joining a topic community, receiving e-mail notifications, searching, and branding community workspaces. The main features are: Virtual communities: guided by development experts around major development topics, Accessible Information on Development Activities (AIDA): the largest online source of public information on development activities in the world, dgMarket: a global marketplace providing information on donor and government-funded development activities, Country Gateways: locally owned and operated initiatives, which explore the use of ICT for development in their countries. What is the role of ICT in the initiative? The Development Gateway is a website portal.

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Who is the client or audience? Anyone looking for information or resources related to development, including civil society actors, the public sector, the official donor community, and the private sector. How is success measured? The Gateway is a new initiative, and so does not yet have measurable results. However, there does not appear to be a formal methodology for measuring results. How is the initiative funded? The Gateway is a project of the Development Gateway Foundation, which receives funding from the Governments of Australia, Germany, India, Japan, the Republic of Korea, Mali (sponsored by the Netherlands), as well as the World Bank, Bloomberg, Softbank, and Transnational Computer Technology.
4. DevelopmentSpace

Type of initiative: funder/project intermediaryinternational, community level Services provided: planning support, financial support, networking and relationship building For information: http://www.developmentspace.com/ 1828 L Street, Suite 1030, Washington DC 20036 USA Email: questions@developmentspace.com, Tel: +1 202 331 7710 Who runs the initiative? DevelopmentSpace is a service of ManyFutures, Inc., a for-profit institution founded in 2000. Development Space is based in Washington DC and works closely with its software partner based in Hyderabad, India. It has one office with a staff of thirteen and is assisted by Company Advisors. Dennis Whittle and Mari Kuraishi are co-directors. Where does the initiative do its work? A beta test for its programmes and software implementation started in India; however, the intended scope for projects is worldwide.

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What does the initiative do? The problem: Traditional methods of funding development projects and social entrepreneurs are often ineffective, cumbersome, and do not connect projects to funders in a concrete way. The solution: DevelopmentSpace creates a dynamic and efficient marketplace in global development services that will increase the impact of existing programmes, reduce barriers to entry, and enhance efficiency. It is intended to increase the overall flow of funding and connect projects to funders in a more concrete way. DevelopmentSpace seeks to enable social investors (donors) to directly connect with, and invest in, the best social entrepreneurs and projects in the world; provide tools and support to social entrepreneurs to create innovative, sustainable, high-impact projects that can change the world; and enable experts from anywhere in the world, regardless of institutional affiliation, to provide support to social entrepreneurs and social investors to maximize impact. This is done through a web-based platform where:
Social entrepreneurs post their ideas, are authenticated by a third party, and are taken through a business planning process designed to clarify both the financial and social bottom lines. Social investors (donors) find and fund these projects in various stages of development. DevelopmentSpace tries to ensure that projects are legitimate, but leaves it up to the donors to pick among projects of their choosingthe basic service provided by DevelopmentSpace does not include matching services. Service providers discover service opportunities for those projects that are under development or being implemented.

What is the role of ICT in the initiative? While some offline activities are envisioned (including physical marketplaces), the basic services are delivered online. Who is the client or audience? Social entrepreneurs and social investors/ donors. How is success measured? DevelopmentSpace is new initiative, so it is too early to measure the impact. As a for-profit company, the most important measure of success is the financial bottom line. After financial sus-

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tainability has been achieved, DevelopmentSpace will measure its success by the breadth of the social entrepreneur audience it can bring into the community. How is the initiative funded? The initiative is funded by fees attached to services provided. Social investors pay a 7% fee to DevelopmentSpace for projects they find and fund through DevelopmentSpace. Social entrepreneurs from the developing world pay no fees. However, it is envisioned that those from the developed world will pay a small fee for posting projects. Service provider functionality is still under development. When it is provided, fees will be charged.
5. Digital Partners

Type of initiative: social entrepreneurship services organisationinternational, community level Services provided: financial support, planning support, networking and relationship building, policy For information: http://www.digitalpartners.org/home.html 2200 Alaskan Way, Suite 455, Seattle, WA 98121 USA Email: info@digitalpartners.org, Tel: +1 202 770 9355 Who runs the initiative? Digital Partners is a 501(c) (3) non-profit organisation based in Seattle, Washington. The organisation is governed by a Board of Directors, three advisory boards, a leadership team, and a brain trust, and it consists of a small secretariat in Seattle with chapters in New York, Silicon Valley, and New Delhi, India. Akhtar A. Badshah is the Executive Director. Where does the initiative do its work? Five projects are being supported in India, and the programme is being expanded to Africa and Mexico/ Latin America. The Social Enterprise Laboratory is working with entrepreneurs from Africa, Brazil, Mexico, and India.

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What does the initiative do? The poor are increasingly shut out of an information-driven world economy. Digital Partners provides professional services and financial support to social entrepreneurs interested in effectively utilizing ICT to benefit the poor. Digital Partners looks to support initiatives that are scalable, catalytic, market-based, collaborative, and technology-driven. Digital Partners programmes revolve around three areas:
Digital Partners Brain Trust: consisting of entrepreneurs, business leaders, government officials, and others. The Brain Trust contributes to a social venture fund and to a Social Enterprise Laboratory (SEL) that provides skills training and access to funding opportunities to a select group of potential entrepreneurs from developing countries. Entrepreneurs are chosen for entry into the SEL after submitting a proposal and going through a rigorous screening process. The entrepreneurs work with members of the Brain Trust to develop a business plan that is then eligible to compete for cash awards from the Digital Partners Social Venture Funds. Supporting innovative revenue generating efforts: in 2001, Digital Partners supported five ICT-empowered projects in India with grants ranging from US$10,000 to US$45,000. Changing public policy: by initiating high level dialogues and bringing together key stakeholders with the Brain Trust.

What is the role of ICT in the initiative? Digital Partners is focused on using ICT as a means to empower the poor and drive the markets of developing countries. Digital Partners is not involved in ICT training or technical maintenance, but in using the ICT market to stimulate the economy and find innovative solutions to the problems of poverty. Who is the client or audience? Social entrepreneurs that are developing innovative projects that use ICT to serve the poor. How is success measured? Digital Partners is still a fairly new organisation, so it is difficult to gauge the impact of their activities on the success or failure of a particular initiative or economy. Relevant statistics from the Digital Partners newsletter from the fourth quarter of 2001 include: 7 pro-

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gramme countries, 16 entrepreneurs supported, 5000 families impacted, 5 universities involved in SEL, 4 policy consultations undertaken. How is the initiative funded? The initiative is supported by the Kellogg Foundation, the Open Society Institute, and individual contributors, and it works in collaboration with the World Bank, UNDP, and CARE. Income FY 2001: US$345,150.
6. Endeavor Global

Type of initiative: entrepreneurship services organisation and investment intermediaryinternational, community level Services provided: studies and inventories, financial support, planning support, networking and relationship building For information: http://www.endeavor.org 601 West 26th Street, 17th Floor, New York, NY 10001 USA Email: info@endeavor.org, Tel: +1 212 352 3200, Fax: +1 212 352 1892 Who runs the initiative? Endeavor Global is a 501(c)(3) non-profit organisation founded in 1997 by Peter Kellner and Linda Rottenberg. Headquartered in New York City, Endeavor has a staff of twenty-one working out of offices in Argentina, Brazil, Chile, and Uruguay. Endeavor has an External Network consisting of a Board of Directors, a Global Advisory Board, and the VentureCorps Council. Linda Rottenberg is the CEO. Where does the initiative do its work? Programmes are underway in Argentina, Brazil, Chile and Uruguay, and operations are being initiated in Mexico. What does the initiative do? Barriers to entrepreneurial activity exist in emerging markets. These include lack of access to information, absence of networks, and support services, and difficulty in obtaining investments. Endeavor provides access to information, networks and support services for entrepreneurs and helps them attract capital investments. The organisation also encourages local and international investors to finance higher-risk

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ventures in developing countries, and teaches members of the local investment community about angel investing and venture capital. Endeavors Venture Catalyst model involves the following components:
Venture Forum: Twice a year, international selection panels of experienced business people elect a new class of Endeavor entrepreneurs, who demonstrate the potential to become future role models and entrepreneurial leaders. Endeavor hosts two international venture forums bi-annually, in which selected entrepreneurs present their business plans to investors. Endeavor also hosts periodic lectures, workshops, business plan competitions, and forums. Bi-annual entrepreneur workshops: Teams of Endeavors Venturecorps members are paired with the entrepreneurs to give feedback and mentoring on their business plans or other strategic issues. eMBA programme: Endeavor recruits top MBA students from leading US business schools to spend 12 weeks working on-site with Endeavors entrepreneurs in emerging market countries, to help them address their critical issues. Concrete deliverables of the eMBA programme include honed business plans, strategic plans, and feasibility studies.

What is the role of ICT in the initiative? VentureCorps members assist the entrepreneurs in their searches for capital, contacts and industry information through online networking channels. Endeavor provides an online forum for idea sharing and research requests, weekly peer feedback sessions in each major city, and access to key advisors in the US and South America. Its web-based ICT system establishes a global network dedicated to new venture creation. What is the client audience for support services? Potential entrepreneurs running high-growth companies with up to $15 million in revenues and located in the markets where Endeavor has operations. The programme also targets angel investors, finance institutions, and local business schools, bringing them educational and networking opportunities.

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How is success measured? It is too early to measure the impact that the Venture Catalyst model has had on local communities and economies. However, according to Endeavor: 100 entrepreneurs leading 64 companies have been certified as Endeavor Entrepreneurs; the percentage of Internet entrepreneurs applying to Endeavor increased from 5% in January 1998 to 30% in August 1998 and jumped to over 50% in 1999; Endeavor network meetings and road shows have resulted in investment offerings from the USA, Argentina, Uruguay and Chile; Endeavor has produced 12 live case studies and 3 university Entrepreneurs Days featuring Endeavor entrepreneurs. Four case studies have also been written on Endeavor Entrepreneurs under the guidance of Harvard, Stanford and Yale business professors. How is the initiative funded? The organisation received its seed funding from The AVINA Group and Co-founder Peter Kellner. Endeavor continues to receive funding from the following sources: corporate benefactors for events, web development and programmes; country benefactors who pledge 3-5 years of local operational support prior to Endeavor entering the country; Endeavor Entrepreneurs voluntarily donating equity, cash or in-kind support; venture philanthropy and individual support. The Endowment is projected to reach liquidity in 2002-2003. Income FY 1999: $1,008,844.
7. Enterprise Development Department of the UK Governments Department for International Development (DFID)

Type of initiative: government development aid agencyinternational, community level Services provided: studies and inventories, financial support, policy For information: http://www.dfid.gov.uk/ Abercrombie House, Eaglesham Road, East Kilbride, Glasgow G75 8EA Email: enquiry@dfid.gov.uk, Tel: +44 (0) 1355 84 4000, Fax: +44 (0) 1355 84 4097/8/9

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Who runs the initiative? DFID is a UK Government Department headquartered in London and East Kilbride, with offices in many developing countries. Overall policy direction is provided by the Government, through DFIDs Secretary of State. The work of DFID is divided among eight Divisionsfour with geographical remits, four with specialist functions and five Advisory Groups, tackling specific aspects of development. Where does the initiative do its work? The bulk of assistance is concentrated on the poorest countries in Asia and sub-Saharan Africa, but DFID also contributes in Latin America, the Caribbean, and Central and Eastern Europe. What does the initiative do? The problem: SMME development should be promoted as a tool in the battle against world poverty. The solution: The Enterprise Development Department (EDD) gives grants to organisations that provide services in developing countries to enterprises that include: SMMEs, membership-based organisations and household and survivalist income generation activities. The aim is to improve the target enterprises access to sustainable financial services, markets, skills and technologies. There are three main funding schemes:
Enterprise Development Innovation Fund: supports activities in the fields of financial services, business development services and the legal and regulatory environment, Financial Deepening Challenge Fund: encourages and supports banks and other commercial financial institutions to develop innovative and sustainable products and services that benefit the poor, Business Linkages Challenge Fund: makes grants for the development of business linkages that improve competitiveness and benefit the poor.

What is the role of ICT in the initiative? DFID funds several projects that focus on the innovative use of ICT. In 2000, DFID launched a Bridging the Digital Divide programme to promote ICT access in developing countries.

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Who is the client or audience? Non-profit organisations, consultancy companies, academic departments, membership based organisations or organisations representing business such as chambers of commerce, business associations or industry federations. How is success measured? Performance assessment tells what is being achieved in terms of quantifiable targets, and evaluation identifies how results are achieved (or not) so that lessons can be learnt for the future. Evaluation Studies include studies of individual completed projects (expost evaluations) and examination of themes (e.g. gender), sectors (e.g. basic education) and country programmes. The aim is to determine relevance and fulfillment of objectives and assess developmental efficiency, effectiveness, impact and sustainability. How is the initiative funded? DFID is funded by the UK Government.
8. The Foundation For Economic And Business Development (FEBDEV)

Type of initiative: entrepreneurship training organisationnational Services provided: planning support, practical and management support, networking and relationship building For information: http://www.febdev.org.za/home.html PO Box 52713, Saxonwold 2132, Republic of South Africa Email: febdev@iafrica.com, Tel: +27 (0) 11 442 4400, Fax: +27 (0) 11 442 4761 Who runs the initiative? FEBDEV has three offices and a rural satellite office located in the Gauteng, Western Cape, and North West regions, and a total staff of twenty-six. FEBDEV has been in existence for almost twenty years. Norma James and Marc Swanepoel are the directors. Where does the initiative do its work? South Africa.

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What does the initiative do? The problem: South Africa needs new entrepreneurs to create the jobs and wealth that will help the country solve many of its economic problems. The solution: FEBDEV provides entrepreneurship skills training and networking opportunities to individuals, companies and educational institutions through workshops and the creation and distribution of other resources. FEBDEV programmes include:
Hands-On Enterprise: a project that supports educational institutions in developing structured entrepreneurial projects for their learners in an interactive way, Entrepreneurship Development Programme: a comprehensive course for colleges and schools that provides the practical and theoretical skills to start a small business, Colleges and Enterprise Education: professional consultants present model lessons and workshops for students, Learnership Programme: Students that enroll in the programme receive theoretical training at an educational institution and then do a practical learnership period with accredited businesses before they receive their diplomas, Enterprise Education through Action Learning: training to build the capacity of trainers, educators and lecturers in enterprise education, Community Training: community courses at various levels. These courses offer people the opportunity to develop the essential skills and business knowledge that they need to survive in a difficult economic environment, Community Business Skills Course: facilitators run basic business skills courses in various communities in and around Cape Town, NSC (National Senior Certificate) for Small Business Management and Entrepreneurship: FEBDEV has field-tested an action-learning methodology for the existing NSC course.

What is the role of ICT in the initiative? There is not a particular emphasis on ICT training as part of FEBDEVs enterprise training programmes or skills development courses. However, FEBDEV initiated an E-Club for entrepreneurs and it facilitates an e-mail discussion group for colleges.

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Who is the client or audience? All community members, with a focus on teachers and students. How is success measured? According to FEBDEV, more than one million people have been through the courses and approximately five thousand instructors have been trained. How is the initiative funded? FEBDEV is funded by the UK Department for International Development, ABSA, Anglo American, De Beers Chairmans Fund, and South African Breweries.
9. Geekcorps, a division of the Internation al Service Corps

Type of initiative: technical assistance programmeinternational, community level Services provided: general programme support, practical and management support, networking and relationship building For information: http://www.geekcorps.org/ 1121 Mass Moca Way, North Adams, MA 011247 Email: info@geekcorps.org, Tel: +1 413 664 0030 Who runs the initiative? Geekcorps is a division of the International Service Corps, a 501(c)(3) non-profit organisation. It was started in 2000 by Elisa Korentayer and Ethan Zuckerman and merged with the International Service Corps in 2001. Geekcorps has a staff of five in the US and many staff in the various host countries, and is supported by a Board of Directors, and Honoured Geeks. Ethan Zuckerman is the Executive Director. Where does the initiative do its work? The pilot programme started in Ghana, and programme sites now include Eastern Europe and Central Asia. Additional countries for programmes in sub-Saharan Africa are being investigated.

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What does the initiative do? The problem: Small businesses and organisations in the developing world do not have sufficient access to ICT knowledge or skills. The solution: Geekcorps pairs skilled volunteers from the high-tech world with small businesses in emerging nations. Geekcorps and its partner businesses in emerging nations evaluate technical needs and select volunteers with the expertise to meet those needs. Geekcorps trains its volunteers to teach their skills to people from different cultural and educational backgrounds. Volunteers spend four months on-site in developing nations, supported by Geekcorps in-country staff. Projects often expand beyond the initial scope of work as other technical needs are discovered in the process. Volunteers often conduct workshops for the larger community or become involved in separate community development projects. What is the role of ICT in the initiative? Geekcorps is specifically designed to provide ICT information and assistance. Geekcorp works with promising ICT-focused companies as well as entrepreneurs looking to use ICT to support an idea or organisation. Volunteers are required to have three+ years experience in software development, systems or network administration, web-based graphic design, business development, or sales and marketing. Who is the client or audience? Locally-owned and run organisations that demonstrate a clear business plan or mission, and have legitimate offices, a good reputation, good community standing, and employees who are in a good position to learn from a Geekcorps volunteer. How is success measured? Since Geekcorps is focused on helping specific individual businesses with specific ICT needs, success can be fairly easily measured: if the need has been met, it is successful. Notable successes include a software developer in Ghana who is now designing a scratch card payment system for a cyber cafe in Ghana after a Geekcorps volunteer helped them develop proficiency in Java, and a company in Bulgaria that now meets European standards for software testing after SQA training by a volunteer.

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How is the initiative funded? Launched with private funding, Geekcorps now relies on contributions from individuals, corporations, and foundations, including Noaber Foundation, USENIX, OReilly Network, and UserFriendly.org. They also receive US Government funding and corporate funding from companies involved in information technology, primarily in the form of sponsorship of individual volunteers.
10. Grameen Family of Organisations

Type of initiative: seed funding programme expanded to other SME supportnational Services provided: financial support, planning support, practical and management support For information: http://www.grameen-info.org/index.html Grameen Bank Bhaban, Mirpur, Section-2, Dhaka-1216, Bangladesh Email: grameen.bank@grameen.net, Tel: + 88 (0) 2 900 5257 68 Who runs the initiative? The Grameen Family of Organisations is an outgrowth of the Grameen Bank, which was founded in 1976 by Professor Muhammad Yunus. In addition to the Bank, there are now twelve associated organisations. The bank operates fifteen zonal offices, under which are a total of 122 area offices, each supervising eight to ten branch offices. A Board of Directors oversees the Grameen Family of Organisations. Professor Muhammad Yunus is the Managing Director. Where does the initiative do its work? Bangladesh. What does the initiative do? The problem: It is virtually impossible for the poorest of the poor in rural Bangladesh to obtain the necessary credit from banks to start businesses and work to improve their socio-economic conditions. The solution: Grameen Bank (GB) has reversed conventional banking practice by removing the need for collateral and created a banking system based on mutual trust, accountability, participation and creativity. GB provides credit to the poor in rural Bangladesh, without any collateral.

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The Grameen Bank is based on the voluntary formation of small groups of five people to provide mutual, morally binding group guarantees in lieu of the collateral required by conventional banks. At first only two members of a group are allowed to apply for a loan. Depending on their performance in repayment the next two borrowers can then apply and, subsequently, the fifth member as well. Contrary to popular belief, repayment rates reached 97%. As the success of the Bank grew, the founders expanded their areas of focus to accelerate the progress of the poor towards a poverty-free life and to improve Bangladeshs overall economic performance. The Grameen Family of Organisations includes the following, a mixture of non-profit and for-profit companies:
The Grameen Trust: provides training and technical assistance for Grameen and in some cases financial support to start Grameen type programmes, Grameen Fund: provides financing to ventures that are risky, technology-oriented and otherwise deprived of financing from existing formal lending institutions, Grameen Uddog (Rural Initiative): revives and modernizes the handloom industry and links with Bangladeshs booming exportoriented garment industry, Grameen Shamogree (Rural Products): works to develop and market rural industries, Grameen Krishi Foundation: works with farmers in northern Bangladesh and Tangail District, Grameen Motsho (Fisheries) Foundation: improves access of the poor to fisheries resources, Grameen Communications (GC): aims to increase awareness and promote the use of international data available on the Internet for improving education, research, social, health and sanitation in Bangladesh, Grameen Shakti (GS): a non-profit rural power company whose purpose is to supply renewable energy to villages in Bangladesh with the supply, marketing, sales, testing and development of renewable energy systems of solar PV, biogas, and wind turbines,

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Grameen Telecom: a company dedicated to bringing the information revolution to the rural people of Bangladesh. Grameen Telecom is planning, over the next four years, to provide GSM 900 cellular mobile phone service to 100 million rural inhabitants in 68,000 villages of Bangladesh by (1) financing 60,000 members of Grameen Bank to provide village pay phone service and (2) providing direct phones to potential subscribers, Grameen Kalyan (Rural Welfare): provides financing and benefits to staff and members of Grameen Bank, Grameen Knitwear Limited: the company is a 100% exportoriented composite knitwear factory, located in the Export Processing Zone in the capital of Bangladesh, Grameen Cybernet Ltd: provides 130 dial-up lines. It also offers customer service, technical support, WebPages consulting, and a help desk.

What is the role of ICT in the initiative? The Grameen Bank has 68 Information Management Centres, each one providing computer access for three branches. Ten of the fifteen zonal offices have Internet access. The Grameen Family has two ICT related initiatives, Grameen Telcom and Grameen Cybernet which work to bring ICT to the people of Bangladesh. Who is the client or audience? The poor of Bangladesh, with an emphasis on women. How is success measured? GB has lent over US$1 billion to over two million borrowers, and has become possibly the best-known micro-credit programme in the world. The Grameen model is now replicated in fifty countries. Independent studies by the World Bank and others indicate that within five years, about half Grameens two million borrowers manage to pull themselves up over the poverty line, while a further quarter hover near the line. In addition, studies of the Grameen method suggest that after a wife joins the bank, her husband is likely to show her more tenderness and respect. Divorce rates drop among Grameen borrowers, as do birth rates. A few Grameen stats (November 2001): 1171 branches, 40,428 villages, 68,543 centres, 2,384,377 members, 2,262,693 female, 121,679 male,

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544,498 houses built with Grameen housing loans, $3,520.65 million disbursed, $187.78 million housing loans disbursed. How is the initiative funded? The first external funding came from the International Fund for Agricultural Development (IFAD). Since then Grameen has received loans and grants from NORAD (Norwegian aid agency), SIDA (Swedish aid agency), KFW and GTZ (German aid agency), CIDA (Canadian aid agency), OECF (Japanese aid agency), the Ford Foundation, and the Dutch Government. In l995, Grameen finally made enough profit to operate on a fully commercial basis without the need for any more preferential loans or grants from charitable trusts.
11. National Association of Women Entrepreneurs of Malaysia (NAWEM)

Type of Initiative: womens networking organisationnetworking and relationship building Services provided: practical and management support, networking and relationship building, policy For information: http://nawem.org.my/ (Persatuan Kebangsaan Usahawan Wanita Malaysia) Lot 11 Rumah Puspanita, 5171 Jalan Hose, 50460 Kuala Lumpur, Malaysia Email: office@poslovnezene.org.yu, Tel: +60 3 242 3325, Fax: +60 3 248 5955 Who runs the initiative? NAWEM was founded in 1993, and is run by a 17-member committee. NAWEM members form teams to organize activities. Dr. Bien Mei Nien is the President. Where does the initiative do its work? Malaysia. What does the initiative do? The problem: Women entrepreneurs do not have the same access to resources and networking that male associates have. The solution: NAWEM promotes, encourages and supports women

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who own and operate businesses, and conducts workshops, training programmes and conferences to enhance womens capabilities and potential. NAWEM was established with the purpose of harnessing the capabilities and resources of women entrepreneurs in Malaysia for the encouragement and enhancement of womens role in business. NAWEM acts as liaison between members and the Government of Malaysia, state and local agencies and organisations, as well as external agencies and bodies, such as international trade agencies. NAWEM offers many networking events, conferences, and training programmes in topics such as financial management, identifying business opportunities, and ICT training. What is the role of ICT in the initiative? NAWEM offers several online resources, including a directory of business resources. NAWEM also offers a wide range of ICT training programmes for members. What is the client audience for support services? Women entrepreneurs of all races. How is success measured? NAWEM does not have a formal methodology for measuring success, however since its inception the organisation has gained in membership and continues to offer increasing numbers of seminars and events. How is the initiative funded? The original funding was from CIDA (Canadian International Development Agency), Ministry of Women and Family Development, Malaysia
12. New Ventures

Type of initiative: entrepreneurship services and investment intermediary programmeinternational, community level Services provided: studies and inventories, financial support, planning support, practical and management support, networking and relationship building

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For information: http://www.new-ventures.org World Resources Institute, 10 G Street, NE, Suite 800, Washington, DC 20002 USA Email: virginia@wri.org, Tel: +1 202 729 7700 Who runs the initiative? New Ventures is a part of the Sustainable Enterprise Programme of the World Resources Institute (a 501(c)(3) nonprofit organisation) launched in 1999. New Ventures is based in Washington DC and has a staff of five. Luiz Carlos Ros is the Director. Where does the initiative do its work? Current operations are in Latin America and activities were recently initiated in China. Work will begin in Indonesia and the Philippines in the coming year. What does the initiative do? The problem: Sustainable, environmentally responsible enterprises in developing countries are not considered a sound investment to potential investors. The solution: New Ventures supports small and medium-sized companies that incorporate unique social and environmental benefits and are financially viable. New Ventures is growing a pipeline of sustainable businesses, building local capacity and strengthening local institutions to support hundreds of environmental entrepreneurs in the region. By providing sound business opportunities for investors and the growing Latin American economy, New Ventures is demonstrating that investing in sustainable enterprise makes good business sense New Ventures support involves a series of activities that includes an identification, selection and mentoring process. Through a large local and regional network, potential entrepreneurs are identified throughout the region. This network includes national grant-making environmental funds, government agencies, private investment firms and non-profit organisations. Once identified, environmental experts, such as sector specialists at WRI, and financial analysts conduct a rigorous evaluation to select a group of finalists. New Ventures Entrepreneurs seek capital in the range of $100,000 to $3 million and are in fast-growing sectors such as organic foods and fibre, clean technologies, eco-tourism, non-timber forest products and certified wood, renewable energy and sustainable fisheriesmanagement.

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These finalists receive pro-bono mentoring through a Mentoring Programme that engages MBA students and corporate executives and professional consultants from Citigroup and LEAD International. Entrepreneurs are then invited to present their business plan at an Investor Forum in Latin America. New Ventures continues to assist the entrepreneurs until they receive investment and consider them graduated from the process. They remain in the network as alumni enabling their successes to be tracked and success stories developed, besides transferring their knowledge and experience to new entrepreneurs working in similar regions or sectors. Mentoring Programme services are also extended by alumni as needed. The top semi-finalists are teamed with MBA students through the Mentoring Programme and invited to attend the Investor Forums where they are able to display and market their enterprises. What is the role of ICT in the initiative? ICT is used in a number of ways as part of how the programme is conducted, primarily through a website where the programme is promoted and information exchanged, and mentoring opportunities advertised, and a database of Latin American enterprises is maintained. Enterprises in the green space have been the focus thus far, but it is intended to include ICT- sector or ICT-based enterprises when funding allows. In the meantime, ICT-sector entrepreneurial activity in Latin America and elsewhere is being monitored via the Digital Dividend Clearinghouse, a web-based platform. What is the client audience for support services? Local entrepreneurs, equity investors, grant-makers and local financial institutions, as well as MBA students, policymakers and local business support organisations in the region. How is success measured? Success is evaluated by measuring the amount of capital transferred to sustainable entrepreneurs, additional sources of capital available for green enterprise growth and the quality of the enterprises identified. New Ventures has a portfolio of 15 sustainable enterprises. As a result of participating in the process, New Ventures entrepreneurs have received a total $2.7 million in investment with others in due diligence for an additional $2 million. The mentoring programme has attracted over 188 students from

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15 MBA programmes from the US and Latin America (including Duke University, University of Michigan, Columbia University, UCLA and Fundacao Getulio Vargas), to assist 22 entrepreneurs in Latin America. How is the initiative funded? New Ventures is funded by The Summit Foundation, The Citigroup Foundation, the Dutch Ministry of Foreign Affairs, and Procter and Gamble. Additionally, funding is provided for the Investor Forums from local sources such as the Corporacin Andina de Fomento, the Brazilian Ministry of Science and Technology, Banco do Brasil, Techint and Motorola.
13. PEOPLink

Type of initiative: e-commerce services organisationinternational, community level Services provided: financial support, planning support, practical and management support, networking and relationship building, policy For information: 1110 Midvale Road, Kensington, MD 20895 USA Email: peoplink@peoplink.org, Tel: +1 301 949 6625, Fax: 301-949-8693 Who runs the initiative? PEOPLink is a 501(c)(3) non-profit organisation formed in 1995. PEOPLink has one office located in Washington DC. It is governed by a Board of Directors. Daniel Salcedo is the CEO. Where does the initiative do its work? 32 countries in Asia, Africa, Europe, and Latin America. What does the initiative do? The problem: The richest 20% of the worlds population receives 82.7% of the global income while the poorest 60% receives only 5.6%, and it is possible that globalisation and the Internet will only widen the gap. The solution: PEOPLink helps small and mediumsized enterprises participate in international trade through e-commerce. PEOPLink recently released its CatGen (or catalog generator) system

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that enables any enterprise anywhere to create and maintain a web catalog. Business networks can also use CatGen to produce a searchable catalogue of catalogues portal comprised of many individual catalogues. To date, PEOPLink has worked primarily with members of the International Federation for Alternative Trade, comprised of members from 90 countries seeking to maximize the benefits of global trade for grassroots artisans. PEOPLink is also involved in international policy debate on how to make the Internet serve the interests of marginalized people all over the world. What is the role of ICT in the initiative? PEOPLinks goal is to use ICT to generate jobs and enhanced incomes for the artisans. PEOPLink is developing a constantly evolving toolkit of hardware and software applications to allow grassroots organisations in any country to be a player in global e-commerce. Who is the client or audience? Community-based artisan producer groups in developing countries. How is success measured? PEOPLink does not have a formal methodology for measuring success. How is the initiative funded? The goal is to make PEOPLink selfsufficient from sales and donations. In the meantime, funding has been provided by The Art and Popular Culture Programme of the Organisation of American States (OAS), InterAmerican Foundation, Aid to Artisans, The John D. and Catherine T. MacArthur Foundation, United States Agency for International Development (USAID), InfoDev Programme of the World Bank, and The InterAmerican Development Bank. Income FY 2000: $683,924.
14. Technoserve

Type of initiative: entrepreneurship services organisationinternational, community level

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Services provided: financial support, planning support, practical and management support For information: http://www.technoserve.org/home.html 49 Day Street, Norwalk, CT 06854 USA Email: TechnoServe@tns.org, Tel: +1 800 99 WORKS Who runs the initiative? TechnoServe is a 501(C)(3) non-profit organisation founded in 1968 by Ed Bullard. TechnoServe is based in Connecticut with twelve offices in Africa and the Americas, and is supported by a Board of Directors and an extensive group of TechnoServe Members. Peter A. Reiling is the President and CEO. Where does the initiative do its work? Latin America (El Salvador, Honduras, Nicaragua, Peru), Africa (Ghana, Kenya, Mozambique, Tanzania, Uganda), and Poland. What does the initiative do? The problem: Lack of opportunity due to economic stagnation is a major cause of world poverty. The solution: TechnoServe provides training, technical support, and business advice to entrepreneurial men and women in poor rural areas of the developing world and links people to financing, markets, and experts. Technoserve helps them build businesses to increase the local tax base, enabling governments to improve basic infrastructure like roads, schools and hospitals. Participants are chosen on the basis of their motivation and ability to increase the incomes of the poor, create employment and generate profits and new investments. Services include:
Market analyses to identify market demand and high-value products and business opportunities. Mentoring of emerging entrepreneurs through programmes such as BizCamp in El Salvador and a countrywide Business Plan Competition. Building entrepreneurs capacity to create and run successful businesses through its staff of finance, marketing and strategy specialists, most of who are nationals of the countries involved. Drawing

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on their private-sector experience, knowledge of local conditions and in-country and regional contacts, staff help entrepreneurs to assemble capable management teams, create sound business plans, raise financing and penetrate markets. Forming strategic alliances with experts in a variety of fields, helping clients to differentiate their products, penetrate niche markets, and anticipate global trends. Building a culture of competitiveness that will help developing world leaders to think and act strategically. Strengthening the leadership skills of the entrepreneurs by enhancing their ability to constructively engage policy makers in matters of social responsibility. TechnoServe is partnering with The Aspen Institute to bring executive seminars to Africa

What is the role of ICT in the initiative? Despite TechnoServes name and original mission to help the poor of the developing world with technologies needed to improve their productivity, TechnoServe does not have a particular focus on ICT. TechnoServe does use the Internet and e-mail subscription services to monitor relevant electronic information networks to help clients to tap into useful market information. Who is the client or audience? Clients range from individual entrepreneurs and groups of enterprising farmers to large companies. How is success measured? TechnoServe uses three tools to monitor and evaluate the impact of its programmes. A system of core indicators is collected quarterly from the businesses they assist, such as the number of gross and net profits, number of employees, and dollar amount of raw product purchased from poor rural people. An impact assessment is conducted annually in the community where the business is located. The assessment measures increases is positive spending by wage earners, number of new businesses created in the region and overall well-being of the community that can be attributed to the business. The third assessment is a cost-effectiveness analysis, which compares the cost of TechnoServes programmes with the economic and social benefits to the clients. On average, every $1 invested in TechnoServe has consistently returned more than $5

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in benefits to the rural poor in the form of higher wages, higher sales, and higher profits. Accomplishments for FY 2000 include: benefited 260,000 men, women and children through higher family incomes and steady jobs, helped 408 rural businesses run more effectively, generated $7.3 million in profits for the rural poor through its business-building assistance. How is the initiative funded? TechnoServe receives funding from a number of different sources, including individuals, corporations, foundations, religious organisations, governments, and public and community organisations. Large funders include the American Express Foundation, Microsoft Corporation, Philip Morris Companies Inc., Canadian Centre for International Study and Cooperation, European Union, The Government of El Salvador, The Government of Nicaragua, InterAmerican Development Bank (IADB), International Fund for Agricultural Development (IFAD), United Kingdom Department for International Development (DFID), United States Agency for International Development (USAID), United States Department of Agriculture. Income FY 2000: US$14,517,591. Of this amount, 81% ($11,452,336.00) was spent on programmes and 19% ($2,653,493) was spent on supporting services.
15. Trickle Up

Type of initiative: seed funding and business planning organisation international, community level Services provided: financial support, planning support, practical and management support For information: http://www.trickleup.org/ 121 W 27th St Ste 504, New York, NY 10001 USA Tel: +1 212 255 9980, Fax: +1 212 255 9974 Who runs the initiative? Trickle Up is a 501(c)(3) non-profit organisation founded in 1979 by Mildred Robbins Leet and Glenn Leet. It has a staff of 17 supported by a Board of Directors, an Advisory Council, and a Business Council. Trickle Up has one office in New York. Richenda Van Leeuwen is the Executive Director.

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Where does the initiative do its work? The United States and 32 countries in the Americas, Asia, and Africa. What does the initiative do? The problem: People with the lowest income need a way to start their own businesses, and development aid often does not trickle down to the lowest end of the economic spectrum. The solution: Trickle Up helps the poorest of the poor take their first step up out of poverty by providing them with conditional seed grants and business training to help them start or expand their own business ventures. The actual programmes in each country are implemented locally by people already working there, such as Peace Corps Volunteers, or local organisations; Trickle Up partners with about 340 organisations. The coordinators historically hear of Trickle Up by word of mouth and want to use the programme to help them carry out their own missions. Trickle Up reimburses coordinators for a very small portion of the costs they incur to implement the programme The coordinators identify candidates for grants. They also train recipients and counsel them once they start their ventures. Applicants must draw up business plans, specifying their product, the amount they will invest, and their market. Coordinators help groups of two to three people, typically from the same household, complete a 2-page Business Plan for the first $50 of the grant, and, after three months, a 2-page Business Report for the second $50. The Coordinators also teach business principles and track the progress of the group. Trickle Up provides grants (not loans) of $100 US dollars, with the following commitment from the entrepreneurs:
Ownership: the micro-entrepreneurs plan the business themselves. Time: they commit a minimum of 250 hours each within the first 3 months. Reinvestment: at least 20% of the profit is saved or reinvested in the venture. Local Resources: they secure any necessary approvals or resources. Growth: they anticipate continuing profit and self-employment. Accountability: they report on their business and its results.

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What is the role of ICT in the initiative? Trickle Up does not have a particular ICT focus. The Trickle Up website has a Yellow Pages of US entrepreneurs only. Who is the client or audience? Priority is given to countries that rank low on the United Nations Development Programmes Human Development Index (HDI), which tracks per capita income, adult literacy rates, life expectancy, and school enrolment. Within each country, the poorest and most vulnerable people are targeted, including single mothers, households headed by women, unemployed youth, street children, refugees, displaced people, disadvantaged ethnic minorities, and HIV-affected families. These groups are targeted because they often fail to meet the requirements for participation in loan programmes (e.g., track record in business, savings, collateral, a guarantor, or just a regular address). How is success measured? Trickle Up tracks core indicators including business continuity, social and economic measures of well-being, education, and other benefits to the larger community. Trickle Up accomplishes this by utilizing a unique computer database system which records and tracks all grant disbursements, and information from Business Plans, Business Reports and One-Year Updates. This information is certified by Coordinators and sent to Trickle Up for every business group. According to Trickle Up, over two-thirds of the businesses are still running after 1 year. A study in Ecuador and Guatemala in 1996 showed 90% continuing after 2 to 4 years. Each business is tracked formally for 5 years, and some last more than 10 years. Since 1979, Trickle Up has helped start over 100,000 businesses. They have expanded to 119 countries. 66% of the people helped are women, and almost 50% of the micro-entrepreneurs are under age 27. Accomplishments for fiscal year 2000 include 12,940 businesses launched in 32 countries, 39,129 entrepreneurs and their families benefited from these businesses, reports received in 2000 showed that 88% were continuing after one year and 78% had expanded. How is the initiative funded? In 1999, 43% of funding came from foundations, 45% from individuals, 4% from organisations, 2% from government, and 6% from corporations. The United Nations Develop-

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ment Programme also contributes through cost-sharing programmes. The US programme is funded entirely through earmarked contributions. Large funders include The Boston Foundation, The Greenville Foundation, American Express Foundation, Philip Morris Management Corporation, and the US Agency for International Development. Income FY 2000: US$2,338,686. In 1999, Trickle Up spent 88% of every dollar on programme services and 12% went to fundraising and management.
16. Volunteers in Technical Assistance (VITA)

Type of initiative: technical assistance organisationinternational, community level Services provided: studies and inventories, planning support, financial support, practical and management support For information: HYPERLINK http://www.vita.org/ http://www.vita.org/ 1600 Wilson Boulevard, Suite 710, Arlington, VA 22209 USA Email: vita@vita.org, Tel: +1 703 276 1800, Fax: +1 703 243 1865 Who runs the initiative? VITA is a 501(c)(3) non-profit organisation founded in 1959. George Scharffenberger is the President. Where does the initiative do its work? Current programmes in Guinea, Morocco, and Ukraine. Previous programmes in Afghanistan, Belize, Benin, Burkina Faso, the Central African Republic, Chad, China, Djibouti, Haiti, Honduras, Indonesia, Kenya, Liberia, Mali, the Philippines, Sierra Leone, Sudan, Thailand, and Zambia. What does the initiative do? The problem: Advanced technologies could be used to facilitate access to information and knowledge to the poor in developing countries, strengthen local institutions, and introduce improved technologies. The solution: VITA implements long-term projects related to private enterprise development, agricultural and rural rehabilitation, natural resource management, technology transfer, and information dissemination. The VITA micro-enterprise support programme emphasizes

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the provision of appropriate financial and business development services to disadvantaged and under-served populations. VITA offers services in a variety of areas including information dissemination, the design and installation of specialized information and communications systems, preparation and publication of technical materials, disaster information coordination, and management of long-term projects. What is the role of ICT in the initiative? VITA applies advanced microelectronics and space technology to the dissemination of technical information for development and humanitarian purposes. VITA developed VITA-Connect, using VITAsat, a low cost, high reliability, data-only communication network based on two Low Earth Orbiting (LEO) satellites. Through VITAsat, participating organisations in remote locations can access email and a broad range of targeted information and training services. Access to VITA-CONNECT through the satellite network requires a user supplied basic laptop or desktop computer and the purchase of a portable ground station, antenna, and specialized software. Who is the client or audience? For-profit and social entrepreneurs who could benefit from connectivity and technical information exchange; micro-enterprise programming has also become a key focus. How is success measured? VITA keeps careful track of programme achievements and employs impact assessments that indicate whether or not its interventions have had positive impacts. VITA also carefully monitors programme costs and progress toward sustainability. Finally, it uses formal evaluations as a means of assessing the effectiveness of its programs. VITAs information dissemination programme has answered more than 275,000 requests for information. VITAs existing programs in Benin, Guinea, Morocco, and South Africa have assisted more than 100,000 small and micro entrepreneurs. How is the initiative funded? Funding has come from the USAID, UNDP, the World Bank, Mellon Foundation, Ford Foundation, Rockefeller Foundations, Public Welfare Foundation, William Penn Foundation, RJR Nabisco, IBM, Apple Computer Company, Hershey Foods Company, and

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Citibank/Citicorp. VITA has implemented long-term projects in excess of $67 million dollars. Income FY 2000: US$3,177,667.
4 . T R E N D S I N T H E FI E L D
Approaches to entrepreneurship support

Entrepreneurships support initiatives come in a considerable variety of shapes and sizes, and they offer a range of services to SMEs and entrepreneurs. But even a cursory examination of the sixteen ESIs that we looked at reveals how this methodology for development aid is taking shape and the trends in the field. Wealth creation is increasingly seen as a vehicle for social change. Following the approach of a few trailblazing organisations, there is a wave of new initiatives that emphasize public/private partnerships and incorporate basic business principles, emphasizing accountability and measurable results. Careful screening of the participating entrepreneurs is a common trait. More efforts are tapping into the power of human connections by building relationships among like-minded individuals and organisations to share experiences and contacts. And, of course, ICT is increasingly used both in the delivery of ESI services and as a foundation for successful SMEs.
Models for framing an ESI

An entrepreneur is someone who assumes the financial risk of beginning and managing a new venture. The venture can be based on a totally new idea, a new way of doing something, doing the same things in a new location, or attempting something no one else has done before. Within that definition there are various levels of entrepreneurial activity, from a micro level in a village to a countrywide initiative. For example, the World Bank Small and Medium Enterprise Development Group breaks down SMEs according to the following parameters:

micro enterprise: up to 10 employees, total assets of up to $100,000 and total annual sales of up to $100,000; small enterprise: up to 50 employees, total assets of up to $3 million and total sales of up to $3 million;

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medium-sized enterprise: up to 300 employees, total assets of up to $15 million, and total annual sales of up to $15 million.

Often each of these levels of entrepreneurial activity are treated differently and supported with approaches based on the particular needs of the kinds of enterprises that they seek to foster. Thus, entrepreneurship support initiatives are difficult to categorize because their mission can involve anything from supplying millions of dollars of capital for an ICT start-up, to taking a digital picture of a straw basket for posting on the Internet. However, in general, ESIs work at the following levels regardless of the type of support provided:

Local initiatives at community level: Small and locally targeted, these initiatives are usually the result of a community within a developing country finding solutions to its unique problems and they are generally focused on small and micro enterprise. Example: Cape IT Initiative (CITI). National initiatives: These countrywide initiatives are often government funded and generally focused on small and mediumsized enterprise. Example: Grameen Bank. International initiatives at community level: These initiatives originate with organisations based outside the developing country, but work at a community level. They focus on small, micro and/or medium-sized enterprise. These kinds of initiatives are often run by relatively small international non-profit organisations and or venture capital programmes. Example: Trickle Up. International initiatives at national level: These initiatives usually aim at the big picture issues to catalyse change at a national level, often through policy-making efforts and involve large-scale initiatives (or the funding of numerous small-scale initiatives across a particular geographic area that collectively fit into an overall strategy) and large sums of money. They often work through a top-down approach. Example: Development Gateway, UK Department for International Development (DFID). Networking initiatives that aim to connect people: These initiatives aim to give struggling entrepreneurs opportunities for building business relationships through meetings, conferences, and other

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networking occasions; they also provide a venue for an exchange of best practices and stories of success or failure. These efforts can focus on small, micro or medium-sized enterprises, but most that we saw are organized for women by women. Example: National Association of Women Entrepreneurs of Malaysia (NAWEM). Studies and resources: These initiatives provide information for ESIs and entrepreneurs alike, often based on best practices and evaluations of on-the-ground initiatives, and they are an important source of accessible online support for entrepreneurs. They focus on small, micro or medium-sized enterprise. Many efforts have the sole mission of providing studies and resources (like think tanks), while for other kinds of initiatives this is just one part of what they do. Example: Endeavor.
The range of services offered

Each initiative offers a different type of entrepreneurship support or combination of support depending on its mission and goals, and the kinds of barriers to entrepreneurship it is trying to tackle. A more holistic approach is often most effective, since the barriers to entrepreneurial success are interconnected. For example, an ESI can provide seed funding, but a lack of planning or management support can limit an entrepreneurs chances of success. An ESI that combines many or all of the types of support stands the best chance of helping to create successful, sustainable businesses. The types of support offered generally fall into the following categories:

Studies and inventories: best practices, evaluations, and tracking innovation. Financial support: funding and investment - levels of support can range from a very small amount to a few million dollars, from seed funding to venture capital. Planning support: business, staffing, and financial planning assistance. Practical and management support: practical advice, knowledge, skills training and other kinds of assistance to help get the business off the ground.

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Business incubation: fostering the development of several initiatives simultaneously, the cluster offers networking and relationships, lower costs for the group, and a supportive environment for startups. Networking and relationship building: opportunities for budding entrepreneurs to exchange ideas with their peers and to meet potential investors. Policy: connecting the voice of the SME communities to policymakers in local, regional and national governments, and helping entrepreneurs understand how the policy and legal environment affects their businesses.

Wealth creation as a vehicle of social change: the move toward social entrepreneurship

Traditional development aid took the form of large, top-heavy initiatives that dispensed huge amounts of money, often from government agencies to government agencies, which were far removed from the small groundlevel initiatives that were supposed to be supported. That practice is changing, and governments, non-profit organisations, and corporations are forming new kinds of partnerships to deliver development aid that creates wealth and therefore increases economic opportunity throughout the developing world. At the same time sources of funding are expanding, as corporations and individuals become increasingly aware of their social responsibilities and the economic interdependence of the world. An era of social entrepreneurship is emerging, where global funders realise that they can best achieve the overall social benefits they seek by fostering a strong SME sector in developing countries. SMEs increasingly recognize that in order to succeed they must be integrated into their communities and social change must be incorporated as part of their business approach. For their part, non-profit organisations, focused on driving social change, are seeing that working withinstead of againstthe private sector will help them achieve their goals. Challenges:

There remains a community of socially focused organisations that have a negative view of entrepreneurship supportas part of the

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anti-globalisation movementand they will likely continue to fight an approach to social change through wealth creation, particularly where initiatives are driven by international government and private sector actors.
Applying sound business practices to development aid

Those who are financially supporting development organisations now expect the same accountability and quantifiable measures of success that a for-profit business would show, so an important trend in the entrepreneurship support field is that the initiatives themselves are applying businesses practices in the way they work. That means that non-profit organisations need to have a business plan that sets out a clear and realistic strategy for accomplishing their goals. And since the return on investment is a social benefit rather than a profit, non-profit organisations must demonstrate the results of their efforts in terms of the impact on society. Challenges:

Non-profit organisations are often founded and run by people who have a passion for the issues they seek to tackle but lack practical business skills. This approach may prove difficult for them.

The importance of bein g choosy: screening participant entrepreneurs carefully

How an entrepreneur connects to an ESI varies widely, but screening of participant entrepreneurs is a common practice. Screening serves the purpose of impressing upon the entrepreneur the seriousness of the undertaking and commitment required. The complexity of the process is usually proportional to the size of the enterprise; an entrepreneur with a mediumsized enterprise usually goes through a much more complex process than one with a micro or small venture. Generally those ESIs that give financial support on a much larger scale have more intensive processes, and they tend to focus on building wide-scale capacity. But even ESIs that deal with very small sums of seed funds also have requirements. However, as these initiatives focus on entrepreneurs who do not have traditional collateral,

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these requirements often take the form of a personal commitment from the entrepreneur. Challenges:

A rigorous screening process can intimidate unsophisticated but otherwise worthy candidates. A screening process requires sustained and substantial deal flow from a pool of entrepreneurs. There needs to be a method of spreading the word on available funding and support initiatives that encourages entrepreneurs to participate.
Focusing on people

Among the ESIs we reviewed, there is a considerable focus on people, which is characterised by an emphasis on human interaction, and developing initiatives driven by certain individuals who are well-equipped to tailor ventures around local needs. From on-site support to networking opportunities to creating peer support relationships among entrepreneurs, personal interaction is an important element of most entrepreneurship support initiatives. Some ESIs send technical teams on-site in developing nations, others offer seed funding to people in the community that are personally known to the funder. When these connections cannot be made face-toface, many ESIs accomplish the same purposes with online introductions and assistance. Challenges:

The traditional top-down approach to development aid does not lend itself well to a people-centric model, but at the same time face-to-face interactions between ESIs and local project leaders is onerous, especially when international efforts are connecting at local levels. Organisations must learn to use network technology effectively to exchange information, collaborate online, and manage relationships.

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Integrating ICT

While there are initiatives that use information and communications technology in new and creative ways, ICT in general is under-utilized in the field of entrepreneurship support (as with most other kinds of development aid efforts). Many initiatives are stuck in the rut of developed world models for ICT use where they think of ICT in terms of phone lines installed, PCs donated, and Internet connections hooked up. While computers and connections are important and relevant in many cases, the use of ICT in developing countries requires ESIs and entrepreneurs to think outside of the box to imagine the possibilities for how they could use ICT as a tool to do what they already do, but more effectively. Many ESIs are putting ICT to use in innovative ways, both in terms of the ways they connect potential funders to entrepreneurs, implement their programs, and assist entrepreneurs to use ICT. Challenges:

Overall, most ESIs have not used ICT effectively as part of their work and they are not building ICT-based business capacity among the entrepreneurs they serve. If they continue to leave technology out, the digital divide will widen and it will only be more difficult for local entrepreneurs to catch up in the future. 5. CONCLUSIONS

Successful entrepreneurs can have far-reaching impact on economic developmentincreasing employment, fostering stability, escalating the tax base, and creating capacity in developing countriesthat can help reduce poverty. But before further resources are devoted to supporting entrepreneurs in developing countries, it is important to look at what is already underway in the field. There is an enormous range of initiatives available to support entrepreneurs. ESIs vary widely in terms of their goals, approach, and clients. The barriers to successful entrepreneurial activity are interconnected, so a wide variety of approaches is relevant, and hopefully, will be effective. Trends in the field of entrepreneurship support are moving toward an emphasis on public/private partnerships, innovative approaches to financ-

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ing, measuring results, building capacity and creating long-term solutions. And increasingly ICT is being used. However, most of the initiatives mentioned here are still new; few are independently evaluated, and rarely are objective criteria and benchmarks used. It is difficult to tell whether these initiatives fulfill their mission and whether they will foster entrepreneurship that improves economic development and empowers entrepreneurs with skills and knowledge. Further work is needed to consider what makes a successful ESI, to determine the best practices in the field, and identify the gaps that should be filled. This report could be treated as a first step toward a market analysis of the entrepreneurship support field. In describing and listing ongoing ESIs, it could prove useful to those who are formulating plans for new initiatives in this area by helping them identify efforts that they could collaborate with and those that they need to differentiate themselves from.

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ANNEX 1: Inventory of Entrepreneurship Support Initiatives in Developing Countries

Each ESI is listed according to type and geographic region, with a brief description followed by a list of what services it provides, giving a quick but comprehensive overview of a broad range of initiatives. This inventory is intended as an organic, growing document; it represents a small step in cataloguing the array of entrepreneurship initiatives that exist, and we welcome your input. The Annex lists entrepreneurship support initiatives according to the following types:
A. B. C. D. E. F. Local initiatives at community level National initiatives International initiatives at community level International initiatives at national level Networking initiatives that aim to connect people Studies and resources

Each type is grouped by geographic region as appropriate for each category. Regions include Africa, Asia, Central and Eastern Europe, Central and Latin America, India, the Middle East, and Multi-regional. India is listed as a separate area of geographic focus because of the wealth of its entrepreneurship initiatives. Initiatives are listed by individual country when appropriate The services identified include: studies and inventories, financial support, planning support, practical and management support, business incubation, networking/relationship building, and policy support. For each

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listing we have noted the following information: use of ICT, geographic focus, and funding sources.
A. LOCA L I N I T I AT I V E S AT C OM M U N I T Y L E V E L
Africa

Cape Information Technology Initiative (CITI) URL: http://www.citi.org.za/ Contact information: PO Box 7210, Roggebaai 8012, South Africa Tel: + 27 (0) 21 409 7000, Fax: + 27 (0) 21 409 7050 Email: Peter Frampton <Peter.Frampton@citi.org.za> Peter Frampton, Executive Director

Description: ICT sector organisation. CITI is a non-profit organisation launched in 1998 and based in Cape Town, South Africa. It has a staff of six. CITI supports the growth of the ICT cluster of businesses in the Western Cape and runs a business incubator called The Bandwidth Barn in Cape Town. ICT use: supports and provides infrastructure for high-tech entrepreneurs Geographic focus: South Africa, Western Cape Province Funding: The Western Cape Provincial Administration: Department of Economic Affairs, the Department of Trade and Industrys Sector Partnership Fund (SPF), UUNET SA, and membership fees. Services provided: studies and inventories, financial support, practical and management support, business incubation, networking/relationship building
Community Entrepreneurship and Business Initiative (CEBI) Contact information: Port Elizabeth, South Africa Tel: +27 (0) 41 404 9600, Fax: +27 (0) 41 462 7058 Email: cebicc@mweb.co.za Chantel Cooper, Business Manager

Description: entrepreneurship services organisation. CEBI is an SME development programme started in 2000 and based in the Motherwell township of Port Elizabeth. The programme is jointly implemented by three

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US based International Development Organisations, CHF International, National Cooperative Business Association (NCBA) and Agricultural Cooperative Development International (ACDI). CEBI provides business skills training, financial services, marketing and linkages to the business community, skilled and semi-skilled business people of Motherwell. ICT use: the centre has ICT equipment with a touch screen for technology novices Geographic focus: Motherwell Township of Port Elizabeth, South Africa Funding: USAID Services provided: planning support, financial support, practical and management support, networking/relationship building
The Innovation Hub URL: http://www.innovationhub.co.za/ Contact information: PostNet Suite #213, Private Bag X844, Silverton 0127, South Africa Tel: +27 (0) 12 349 0376, Fax: +27 (0) 12 349 0322 Email: info.incubator@theinnovationhub.com Dr Neville Comins, CEO

Description: ICT sector organisation. The Innovation Hub is a business incubator currently being established in the Gauteng Province of South Africa in collaboration with the University of Pretoria and the CSIR. It has a staff of twelve. The Hub is a space where high-tech entrepreneurs, businesses, educational institutions, researchers and venture capitalists will meet and network. ICT use: supports and provides infrastructure for high-tech entrepreneurs Geographic focus: South Africa, Gauteng Province Funding: Gauteng Provincial Government, SERA, the Southern Education and Research Alliance (a partnership between the University of Pretoria and the CSIR)

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Services provided: studies and inventories, planning support, financial support, practical and management support, business incubation
India

Centre for Entrepreneurship Development Madhya Pradesh (CEDMAP) URL: http://www.cedmapindia.com/ Contact information: 60, Jail Road, Jehangirabad, Bhopal 462008 India Tel: +91 (0) 755 766437, 766461, 763514, Fax: + 91 (0) 755 763401 Email: cedmap@sancharnet.in Dr. P.N Misra M.Com, Ph.D, Executive Director

Description: entrepreneurship services and training organisation. CEDMAP is a non-profit educational, research, and training institution. Established in 1988, CEDMAP has a staff of 40 in five regional offices. CEDMAP activities can be mainly grouped into three areas: promotion and development of entrepreneurship, growth of existing enterprises, and creating a suitable environment for entrepreneurship. ICT use: offers extensive computer training programmes, as well as providing an extensive library and audio-visual department Geographic focus: the Madhya Pradesh region of India. The head office is in Bhopal, and there are five regional training centres. Funding: Government of Madhya Pradesh (Department of Industries), Central Financial Institution Services provided: studies and inventories, planning support, practical and management support and networking/relationship building
The Katha School URL: http://www.katha.org/kse.htm Contact information: A-3, Sarvodaya Enclave, Sri Aurobindo Marg, New Delhi 110017, India Tel: +91 (0) 11 6868193, 6521752, Fax: +91 (0) 11 6514373

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Email: info@katha.org Ms. Geeta Dharmarajan, Executive Director

Description: entrepreneurship services and training organisation. Katha is a non-profit organisation started in 1989. It has a staff of 40 in one office. The Katha School of Entrepreneurship offers a four-year course in Small Business Management for students in the non-formal stream of education. The BT/Katha Information and Technology E-Commerce School (KITES) provides education and access to ICT and computer skills to children in one of Delhis largest slum clusters. The ShaktiKhazana School offers training to women in income generating skills such as cooking, baking, tailoring and embroidery and teaching. ICT use: offers computer training as part of a vocational training and skills-upgrade programme for working students, KITES programme offers software, ICT, and e-commerce training Geographic focus: Delhi, India Funding: British Telecommunications, plc., Department of Women and Child Development, Ministry of HRD, Government of India, Ford Foundation, Indira Gandhi National Open University, National Open School, Partners in Change, Soroptimist International of Vancouver, The Swedish Writers Union, World Vision (India) Services provided: studies and inventories, planning support, practical and management support
Lupin Human Welfare & Research Foundation URL: http://www.lupinworld.com/Comm_dev.htm Contact information: 160, Krishna Nagar, Bharatpur 321001, Rajasthan Tel: +91 (0) 22 652 8311 / 6391, Fax: +91 (0) 22 611 4008 Mr. Sita Ram Gupta, Executive Director

Description: entrepreneurship services organisation. Founded in 1988, Lupin is an NGO with a staff of 400 (full time, part-time and voluntary) working out of two regional offices and running programs in more than 700 villages. It promotes rural development and empowerment in India by

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building infrastructure and providing other services. Among many other activities, the Foundation provides soft loans to groups of women entrepreneurs. ICT use: training in adult literacy includes ICT training Geographic focus: India, regions of Rajasthan and Madhya Pradesh Funding: Lupin Group of Companies Services provided: planning support, financial support, practical and management support
B . N AT I O N A L I N I T I AT I V E S
Africa

The Centre for Innovation and Entrepreneurship URL: http://www.gsb.uct.ac.za/cie/home.asp Contact information: Graduate School of Business, University of Cape Town, Private Bag, Rondebosch 7701 South Africa Tel: +27 (0) 21 406 1922, Fax: +27 (0) 21 406 1070 Email: info@gsb.uct.ac.za Mike Herrington, Director

Description: entrepreneurship services and business planning organisation. The Centre has a staff of eight based at the University of Cape Towns Graduate School of Business. It provides training to build the innovative and entrepreneurial capacity of South African businesses. ICT use: training in software use is included in the EEC programme when needed Geographic focus: South Africa Funding: Liberty Financial Services Group, Standard Bank, South African Breweries, the Gatsby Charitable Foundation, and the World Bank. The Centres own entrepreneurial investments also provide funding. Services provided: studies and inventories, planning support, practical and management support

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The Foundation for Economic and Business Development (FEBDEV) URL: http://www.febdev.org.za/home.html Contact information: Head Office, PO Box 52713, Saxonwold 2132 South Africa Tel: +27 (0) 11 442 4400, Fax: +27 (0) 11 442 4761 Email: febdev@iafrica.com Norma James and Marc Swanepoel, Directors

Description: entrepreneurship training organisation. FEBDEV is an entrepreneurship development agency responsible for promoting development and the reduction of poverty by providing enterprise skills to individuals, companies and educational institutions. FEBDEV has three offices and a rural satellite office located in three provinces in South Africa, with a total staff of twenty-six. FEBDEV has been in existence for almost twenty years. ICT use: FEBDEV initiated an E-Club for entrepreneurs and it promotes interaction between colleges by facilitating an e-mail discussion group. Geographic focus: South Africa Funding: DFID, ABSA, Anglo American, De Beers Chairmans Fund, South African Breweries, Services provided: planning support, practical and management support, networking/relationship building
Greenfields Venture Capital URL: http://www.gvc.co.za/index.htm Contact information: Suite 102, Stadium On Main, Main Road, Claremont, Cape Town, South Africa Tel: +27 (0) 21 671 2820, Fax: +27 (0) 21 683 3214 Email: info@gvc.co.za Shamil Ismail, Founder

Description: seed funding and investment intermediary. Greenfields Venture Capital (Pty) Ltd was founded in March 1999 and is based in Cape Town. Greenfields has a staff of four in one office. Greenfields provides

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capital investment (as an equity partner) and management advice to businesses that demonstrate a potential for high growth. It currently has one dedicated Fund under management, The NEW Cape Private Equity Fund, which is now capitalised at ZAR20m and will be increased to ZAR50m in the near future. ICT use: provides management input in ICT businesses Geographic focus: South Africa Funding: funded jointly by Khula Enterprises (Government Department of Trade and Industry), and the regional government departments of Economic Affairs in Eastern, Northern, and the Western Cape. Services provided: financial support, practical and management support
Khula Retail Finance Intermediaries URL: http://www.khula.org.za/divisions_credit_main.html Contact information: PO Box 4197, Rivonia 2128, South Africa Tel: +27 (0) 11 807 8464, Fax: + 27 (0) 11 807 8471 Email: helpline@khula.org.za Sizwe Tati, Managing Director

Description: investment intermediary. Khula is a limited liability company started in 1997 with the governments Department of Trade and Industry as a major shareholder. Khula provides loan and equity capital to SMEs through the medium of Retail Financial Intermediaries (RFIs). Khula Credit Guarantee provides a range of guarantee products to registered commercial banks and other private sector financial institutions that offer financial services to the SME sector. Thuso Mentorship provides mentoring to the applicant for a period of three months free of charge, depending on the clients needs. ICT use: offers a Technology Transfer Guarantee Fund to provide loan guarantees to SMEs for the sole purpose of acquiring manufacturing technology, including ICT. Khula has an ICT support services division. Geographic focus: South Africa Funding: EU, SIDA, NORAD, UNDP, Ford

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Services provided: financial support, practical and management support

Sizani Scheme URL: http://www.brain.org.za/START/financingnat.html

#sizanani
Contact information: South Africa Tel: +27 (0) 86 1333000

Description: seed funding and business planning organisation. The Sizani Scheme is an initiative of the Banking Council, administered by Business Skills SA. It provides small financing for start-ups or existing SMEs with loans between R10, 000 and R50, 000 (approximately US$1000-$5000). It also provides a mentoring programme for assistance with business plans. ICT use: no particular ICT focus Geographic focus: South Africa Funding: The Banking Council Services provided: planning support, financial support, practical and management support
Asia

Bank Rakyat URL: http://www.bri.co.id/english/index.shtml Contact information: Jl. Veteran No. 8 Jakarta Pusat, Indonesia Tel: +62 (0) 11 3840802 Email: webmaster@bri.co.id Mr. Rudjito, President Director

Description: commercial bank with a focus on seed funding for SMEs. Established in 1985, Bank Rakyat has 4.447 working units, 357 of which are village service points. Bank Rakyat is a self-sustaining financial intermediary that provides loans averaged to US $437 to rural micro-enterprises and the poor in Indonesia. It is financed by community investors and has already offered in excess of two million loans. The BRI (micro-credit) Unit has nearly 4,000 locations spread over a rural financial network which

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functions as an agent of development. BRI Units are operated on a commercial basis and have always earned a profit from the micro-business. ICT use: no particular ICT focus Geographic focus: Indonesia Funding: BRI Unit Desa is the micro-finance arm of Bank Rakyat Indonesia, but is self-supporting Services provided: financial support
Grameen Bank URL: http://www.grameen-info.org/index.html Contact information: Grameen Bank Bhaban, Mirpur, Section-2, Dhaka 1216, Bangladesh Tel: +88 (0) 2 9005257 68 Email: grameen.bank@grameen.net Professor Muhammad Yunus, Managing Director

Description: seed funding programme expanded to other SMME support. The Grameen Bank was founded in 1976 by Professor Muhammad Yunus. In addition to the Bank, twelve associated organisations have now been launched. The Bank offers a micro-credit programme to provide loans to the poorest of the poor rural small entrepreneurs and individuals, without collateral. The Bank has lent over US$1 billion to over two million borrowers. ICT use: the Grameen Bank has 68 Information Management Centres, each one providing computer access for three branches. The Grameen Family also has two ICT related initiatives, Grameen Telcom and Grameen Cybernet which work to bring ICT to the people of Bangladesh. Geographic focus: Bangladesh Funding: International Fund for Agricultural Development (IFAD) NORAD, SIDA, KFW, GTZ, CIDA, OECF, IFAD, the Ford Foundation, and the Dutch Government. In l995, Grameen finally made enough profit to operate on a fully commercial basis without the need for any more preferential loans or grants from charitable trusts

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Services provided: financial support, planning support, practical and management support
Central and Eastern Europe

The Foundation for Social and Economic Initiatives (FISE) URL: http://www.fise.ngo.pl/en_index.htm Contact information: 1/3 Jezuicka Street, 00-281 Warsaw, Poland Tel: +48 (0) 22 635 62 77, Tel/Fax: +48 (0) 22 635 62 78 Email: fise@fise.org.pl Krzysztof Herbst, President of the Board

Description: entrepreneurship services organisation. FISE is a non-profit organisation founded in 1990 by the Programming Council and the Management Board. It supports the development of civil society and the establishment and development of SMEs in Poland. ICT use: no particular ICT focus Geographic focus: Poland Funding: Polish Ministry of Labour and Social Policy, Ford Foundation, Bank for Social and Economic Initiatives, Canadian Embassy, World Bank, British Know-How Fund, Charles Stewart Mott Foundation, European Commission, PHARE Services provided: studies and inventories, planning support, practical and management support, networking/relationship building, policy
Central and Latin America

Bancosol URL: http://www.bancosol.com.bo/en/index.html Contact information: Calle Nicols Acosta No. 289, PO Box: 13176, La Paz, Bolivia Tel: +591 (0) 2 2484242, Fax: +591 (0) 2 2486533 Email: info@bancosol.com.bo Kurt Koenigsfest Sanabria, General Manager

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Description: commercial bank with a focus on seed funding for SMME support. Bancosol is an initiative of PRODEM, a Bolivian non-profit organisation. Bancosol was founded in 1992; it has 38 branches across the country. It is a licensed commercial bank solely dedicated to providing micro-finance services to micro-entrepreneurs. It also offers a micro-finance training programme. Women account for 63% of Bancosols clients; the predominant age group of clients is between 35 and 40 yrs. The bank has a 30% market share of micro finance operations and is the largest bank in the country in terms of number of clients, with nearly 35% of all borrowers of the banking system. ICT use: no particular ICT focus Geographic focus: Bolivia Funding: Bancosol has a lengthy list of funders, including Common Wealth Development Corporation, Accin International, ProFund, Prodem and Bolivian businessmen. Services provided: financial support, practical and management support
India

The Entrepreneurship Development Institute of India (EDI) URL: http://www.ediindia.org/ Contact information: Ahmedabad, P.O. Bhat 382 428, Gujarat, India Tel: +91 (0) 79 3969151, Fax: +91 (0) 79 3969164 Email: ediindiaad1@sancharnet.in Dr. V.G. Patel, Director

Description: entrepreneurship services and training organisation. EDI is a non-profit organisation founded in 1983. It helps develop entrepreneurship with practical, hands-on training and an enormous range of projects including seminars and an Open Learning Diploma in Business Entrepreneurship. EDI has helped set up twelve state-level exclusive entrepreneurship development centres and institutes. ICT use: has established a National Facility for Science and Technologybased entrepreneurial innovations.

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Geographic focus: India Funding: the Industrial Development Bank of India (IDBI), Industrial Finance Corporation of India (IFCI), Industrial Credit and Investment Corporation of India (ICICI), and State Bank of India (SBI) Services provided: planning support, practical and management support.
Middle East

Technological Initiative Incubation Centre URL: http://www.incubators.org.il Contact information: Office of the Chief Scientist, Ministry of Industry and Trade PO Box 50031, 61500 T, Tel Aviv, Israel Tel.: +972 (0) 3 5103941, Fax. +972 (0) 3 5173734 Email: incubators@actcom.co.il

Description: ICT sector organisation. The Technological Initiative Incubation Centre is administered by the Office of the Chief Scientist of the Ministry of Industry and Trade of Israel. The programme supports novice entrepreneurs at the earliest stage of technological entrepreneurship and helps them implement their ideas into viable commercial products and in forming productive business ventures in Israel. It has 24 technological incubators in Israel today, with approximately 240 projects are being carried out. The total private investment obtained thus far is in excess of US $525 million. ICT use: support and infrastructure for high-tech entrepreneurs Geographic focus: Israel Funding: Ministry of Industry and Trade Services provided: studies and inventories, planning support, financial support, practical and management support, business incubation
Tomorrows Entrepreneurs Programme URL: http://www.yea.com.jo/projects.htm Contact information: Young Entrepreneurs Association, PO Box

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1652, Amman 11821, Jordan Tel: +962 (0) 6 565 2151, Fax: +962 (0) 6 565 2159 Email: Dina.dahkqan@yea.com.jo Dina Duhkqan, Executive Director

Description: entrepreneurship services organisation. Tomorrows Entrepreneurs is a project of the Young Entrepreneur Association (YEA), a voluntary, membership-based non-profit organisation. It provides opportunities for practical learning experiences, permits students to explore their field of interest, prepares students for employment through field training and practical experience, enables students to form pre-business relations through networking, encourages voluntary work, and builds an internship culture within Jordans business community. ICT use: providing computer courses for students at the British Council is a key component of the initiative. Geographic focus: Jordan Funding: Friedrich Naumann Foundation, British Embassy, Jordan, membership fees Services provided: studies and inventories, practical and management support, networking/relationship building
C . I N T E R N AT I O N A L I NI T I AT I V E S AT C O M M U N I T Y LE V E L
Multi-regional

Acumen Fund URL: http://www.acumenfund.org/Acumen/Portal/

Home/POCHome.asp
Contact information: 74 Trinity Place, 9th Floor, New York, NY 10006 USA Tel: +1 212 566 8821, Fax: + 1 212 566 8817 Email: postmaster@acumenfund.org Jacqueline Novogratz, Chief Executive Officer

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Description: social investment firm. The Acumen Fund is a non-profit organisation founded in 2001 and based in New York. It connects philanthropists to strategic portfolios of social change enterprises. Created with US$8.5 million in seed money, Acumen Fund invests in diverse social change enterprises, both for-profit and non-profit. Each portfolio is structured around a focused theme, and contains a mix of organisation and strategies for tackling related social problems. Acumen is initially focusing on innovative health technologies. Acumen supports organisations or phased projects with budgets ranging from US$150,000-US$2,000,000, and where Acumen can provide 10%-20% of the project budget. ICT use: Acumen invests in projects involving innovative ICT use. Geographic focus: Africa and South Asia Funding: seed funding from the Rockefeller Foundation in partnership with the Cisco Foundation, W.K. Kellogg Foundation, and individual philanthropists from the technology and investment communities Services provided: studies and inventories, planning support, financial support, networking/relationship building
Ashoka Venture Capital URL: http://www.ashoka.org./home/index.cfm Contact information: 1700 North Moore Street, Suite 2000, Arlington, VA 22209 USA Tel: +1 703 527 8300, Fax: +1 703 527 8383 Email: info@ashoka.org Bill Drayton, President

Description: social entrepreneurship services organisation. Founded in 1980, Ashoka is a non-profit organisation headquartered in the Washington DC area with 23 offices around the world. Ashoka selects social entrepreneurs as Fellows who are provided a living stipend (typically for three years) that enables them to focus full-time on implementing their vision and new ideas. Ashoka has elected more than 1,100 Ashoka Fellows in 42 countries. A 2000 Measuring Effectiveness study showed that 90% of Fellows remain engaged in consolidating and spreading their innovation after the stipend period ends; that 87% of Fellows indicate that other independent groups

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(citizen organisations, governments, etc.) are replicating their ideas/projects; and that within 5 years of their election to Ashoka, 64% of Fellows reported changing national policies. ICT use: Ashoka does not have a particular ICT focus, but several Fellows projects are based around ICT. Geographic focus: 42 countries in Africa, Asia, Europe, and Latin America; including the United Kingdom and the United States Funding: Ashokas work is financed by individuals, foundations, and businesses. They accept no government funds Services provided: studies and inventories, financial support, networking/ relationship building
DevelopmentSpace URL: http://www.developmentspace.com/ Contact information: 1828 L Street, Suite 1030, Washington DC 20036 USA Tel: +1 202 331 7710 Email: questions@developmentspace.com Dennis Whittle and Mari Kuraishi, co-directors

Description: funder/project intermediary. DevelopmentSpace is a service of ManyFutures, Inc., a for-profit institution set up in 2000. DevelopmentSpace is based in Washington, D.C. with a staff of thirteen. DevelopmentSpace connects social investors (donors) with the best social entrepreneurs and projects in the world; provides tools and support to social entrepreneurs to create innovative, sustainable, high-impact projects; and enables experts to provide support to social entrepreneurs and social investors to maximize impact. This is done through a web-based platform where social entrepreneurs put up their ideas, are authenticated by a third party, and are taken through a business planning process designed to clarify both the financial and social bottom lines. ICT use: the role of ICT is central to DevelopmentSpace. While some offline activities are envisioned (including physical marketplaces), the basic services are delivered online.

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Geographic focus: the beta test of the software grew from a base in India. The scope of the submitted projects is worldwide. Funding: the initiative is funded by private investors. Services provided: financial support, planning support, networking/ relationship building,
Digital Partners URL: http://www.digitalpartners.org/home.html Contact information: 2200 Alaskan Way, # 455, Seattle, WA 98121 USA Tel: +1 206 770 9355 Email: info@digitalpartners.org Akhtar A. Badshah, Executive Director

Description: social entrepreneurship services organisation. Digital Partners is a non-profit organisation launched in 1999 and based in Seattle, Washington. It has chapters in New York, Silicon Valley, and New Delhi, India. Digital Partners provides professional services and financial support to social entrepreneurs interested in effectively utilizing ICT to benefit the poor through a portfolio of collaborating institutions and individuals. Digital Partners supports initiatives that are scalable, catalytic, market-based, collaborative, and technology-driven. ICT use: Digital Partners is not involved in ICT training or technical maintenance, but in using the ICT market to stimulate the economy and find innovative solutions to the problems of poverty. Geographic focus: currently five projects in India, and expanding to Africa and Mexico/Latin America. Its Social Enterprise Laboratory is working with entrepreneurs from Africa, Brazil, Mexico, and India. Funding: Kellogg Foundation, Open Society Institute, and individual contributors, and in collaboration with the World Bank, UNDP, and CARE Services provided: planning support, financial support, networking/relationship building, and policy

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Endeavor URL: http://www.endeavor.org Contact information: Endeavor Global Headquarters, 601 West 26th Street, 17th Floor, New York, NY 10001 USA Tel: +1 212 352 3200, Fax: +1 212 352 1892 Email: info@endeavor.org Linda Rottenberg, CEO

Description: entrepreneurship services organisation and investment intermediary. Endeavor Global is a non-profit organisation founded in 1997 and based in New York City. It has a staff of twenty-one working out of five offices. Endeavor identifies, certifies and supports entrepreneurs running highgrowth companies from the start-up stage to $15 million in sales. It also encourages local and international investors to finance higher-risk ventures in developing countries, and teaches members of the local investment community about angel investing and venture capital. ICT use: ICT is primarily used as a networking tool and to host an online think tank. Geographic focus: offices in Argentina, Brazil, Chile, and Uruguay and initiating operations in Mexico. Funding: the organisation received its seed funding from The AVINA Group and Co-founder Peter Kellner. Endeavor continues to receive funding from corporate benefactors, country benefactors, Endeavor entrepreneurs voluntarily donating equity, cash or in-kind support, and venture philanthropy and individual support. The Endowment is projected to reach liquidity in 2002-2003. Services provided: studies and inventories, planning support, financial support, networking/relationship building
Geekcorps, a division of the International Service Corps URL: http://www.geekcorps.org/ Contact information: 121 Mass Moca Way, North Adams, MA 011247 USA Tel: +1 413 664 0030

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Email: info@geekcorps.org Ethan Zuckerman, Executive Director

Description: technical assistance programme. Geekcorps is a non-profit organisation started in 2000 and merged with the International Service Corps in 2001. It has a staff of five in the US and many staff in the host countries. Geekcorps sends ICT experts to emerging nations as volunteers to work with small businesses. Volunteers spend four months on-site in developing nations, supported by Geekcorps in-country staff. Projects often expand beyond the initial scope of work as other technical needs are discovered in the process. Volunteers often conduct workshops for the larger community or become involved in separate community development projects. ICT use: Geekcorps is specifically designed to provide ICT information and assistance. Volunteers are required to have three+ years experience in software development, systems or network administration, web-based graphic design, business development or sales and marketing. Geographic focus: the pilot programme started in Ghana, and programme sites now include Eastern Europe and Central Asia. Geekcorps is investigating additional countries for programs in sub-Saharan Africa. Funding: launched with private funding, Geekcorps now relies on contributions from individuals, corporations, and foundations, including Noaber Foundation, USENIX, OReilly Network, and UserFriendly.org. It also receives corporate funding from companies involved in information technology, primarily in the form of sponsorship of individual volunteers. Services provided: practical and management support, networking/ relationship building
Greenstar

URL: http://www.greenstar.org/introduction.htm
Contact information: Greenstar Corporation, 5042 Wilshire Blvd., Ste. 575, Los Angeles, CA 90036 USA Tel: +1 323 936 9602 / +1 877-282-9900, Fax: +1 323 936 7203

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Email: directors@e-greenstar.com Michael North, Board Member and co-founder

Description: technical assistance and e-commerce services organisation. Greenstar is actually two separate organisationsa non-profit foundation and a private businessfounded in 1998. The company has offices in Los Angeles, Boston, Washington DC, Cairo and Hyderabad, India. The Greenstar Solar-Powered Community Centre provides electricity, water purification, communications, education, support for telemedicine and employment. The facilities act as e-commerce centres so residents of remote rural communities can sell their wares worldwide over the Internet, including digital culture products such as art, literature and music. The Foundation licenses the Greenstar name and technologies to the Corporation for commercial use. The Foundation conducts charitable work in the fields of health, education, energy and the environment, where capital investment is not appropriate. ICT use: installations will have full Internet capabilities. Those sites where Greenstar can access bandwidth of 128Kbps or more will also have video conferencing capabilities. They start with 64Kbps bi-directionally, over satellite, enough to support a dozen computers or more with fast, responsive connections. Geographic focus: to date, pilot installations have been completed in villages in the Middle East, Jamaica, India, and Ghana. Launches are planned for Brazil, Tibet, and 60 other communities around the world. Funding: founding directors provided start-up financing as personal investments in Greenstar. Additional financing is being arranged through private individuals and interested investment firms. Services provided: studies and inventories, financial support, planning support, practical and management support
New Ventures URL: http://www.new-ventures.org Contact information: World Resources Institute, 10 G Street, NE, Suite 800, Washington, DC 20002 USA

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Tel: +1 202 729 7700 Email: virginia@wri.org Luiz Carlos Ros, Director

Description: entrepreneurship services and investment intermediary programme. The World Resources Institute launched New Ventures in 1999 as part of the Sustainable Enterprise Programme. New Ventures has a staff of five in Washington DC. New Ventures supports small and medium companies that incorporate unique social and environmental benefits and are financially viable through an identification, selection and mentoring process. Entrepreneurs are invited to present their business plan at an Investor Forum in Latin America. New Ventures continues to assist the entrepreneurs until they receive investment and consider them graduated from the process. ICT use: ICT used for outreach and identification, mentoring, education, and creating a database of stakeholders Geographic focus: current operations in all of Latin America. This year activities were initiated in China, and work will begin in Indonesia and the Philippines in the coming year Funding: Summit Foundation, Citigroup Foundation, Dutch Ministry of Foreign Affairs, and Procter and Gamble, and local sources such as the Corporacin Andina de Fomento, the Brazilian Ministry of Science and Technology, Banco do Brasil, Techint and Motorola. Services provided: studies and inventories, financial support, planning support, practical and management support, networking/relationship building, policy
PEOPLink URL: http://www.peoplink.org/EN/0.html Contact information: 1110 Midvale Road, Kensington, MD 20895 USA Tel: +1 301 949 6625, Fax: +1 301 949 8693 Email: peoplink@peoplink.org Daniel Salcedo, Chief Executive Officer

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Description: e-commerce services organisation. PEOPLink is a non-profit organisation founded in 1995 and based in Washington DC. It helps SMEs participate in international trade through e-commerce, primarily by marketing products on the Internet. Its CatGen catalogue generator system enables any enterprise anywhere to create and maintain a web catalogue. Business networks can also use CatGen to produce a searchable catalogue of catalogues portal comprised of many individual catalogues. ICT use: a toolkit of hardware and software applications is offered to enable grassroots organisations to participate in global E-commerce. Geographic focus: 32 countries in Asia, Africa, Europe, and Latin America. Funding: the goal is to make PEOPLink self-sufficient from sales and donations, however, funding in the meantime has been provided by The Art and Popular Culture Programme of the Organisation of American States (OAS), InterAmerican Foundation, Aid to Artisans, The John D. and Catherine T. MacArthur Foundation, United States Agency for International Development (USAID), InfoDev Programme of the World Bank, and The InterAmerican Development Bank. Services provided: planning support, financial support, practical and managements support and networking/relationship building
TechnoServe URL: http://www.technoserve.org/ Contact information: 49 Day Street, Norwalk, CT 06854 USA Tel: +1 800 99 WORKS Email: TechnoServe@tns.org Peter A. Reiling, President and CEO

Description: entrepreneurship services organisation. TechnoServe is a nonprofit organisation founded in 1968 and based in Norwalk, Connecticut. It has twelve offices in Africa and the Americas and an extensive group of TechnoServe Members. It identifies market demand, mentors emerging entrepreneurs, increases the entrepreneurs business capacity, and helps leaders fosters competitiveness.

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ICT use: the programme itself does not have a particular ICT focus, although ICT use is integrated into the organisations operations and entrepreneurs are encouraged to access relevant information online. Geographic focus: Central and Latin America, Africa Funding: American Express Foundation, Microsoft Corporation, Philip Morris Companies Inc., Canadian Centre for International Study and Cooperation, European Union, The Government of El Salvador, The Government of Nicaragua, InterAmerican Development Bank, International Fund for Agricultural Development, DFID, USAID, United States Department of Agriculture Services provided: planning support, financial support, practical and management support
Trickle Up URL: http://www.trickleup.org/ Contact information: 121 W 27th St Ste 504, New York, NY 10001 USA Tel: +1 212 255 9980, Fax: +1 212 255 9974 Richenda Van Leeuwen, Executive Director

Description: seed funding and business planning organisation. Trickle Up is a non-profit organisation founded in 1979 and based in New York. It has a staff of 17. Trickle Up provides local entrepreneurs with conditional seed grants and business training to help them start or expand their own business ventures. The programmes in each country are implemented locally by people already working there, such as Peace Corps Volunteers, or local organisations. Trickle Up partners with about 340 organisations. Applicants must draw up business plans, specifying their product, the amount they will invest, and their market. Trickle Up provides grants (not loans) of $100 US dollars. ICT Use: Trickle Up does not have a particular ICT focus. The Trickle Up website has a Yellow Pages of US entrepreneurs only. Geographic focus: 32 countries in the Americas, Asia, Africa, and the United States.

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Funding: The Boston Foundation, The Greenville Foundation, American Express Foundation, Philip Morris Management Corporation, and USAID Services provided: planning support, financial support, practical and management support
Volunteers in Technical Assistance URL: http://www.vita.org/ Contact information: 1600 Wilson Boulevard, Suite 710, Arlington, VA 22209 USA Tel: +1 703 276 1800, Fax: +1 703 243 1865 Email: vita@vita.org George Scharffenberger, President

Description: technical assistance organisation. VITA is a non-profit organisation founded in 1959 and based in Washington DC. It provides access to information and knowledge to the poor in developing countries, strengthens local institutions, and introduces improved technologies. The VITA micro-enterprise support programme provides appropriate financial and business development services to disadvantaged and under-served populations. VITA disseminates information, designs and installs specialized information and communications systems, prepares and publishes technical materials, coordinates disaster information, and manages long-term projects. ICT use: VITA applies advanced microelectronics and space technology to the dissemination of technical information, including VITAsat, a low cost, high reliability, data-only communication network based on two Low Earth Orbiting (LEO) satellites. Geographic focus: current programmes in Guinea, Morocco, and Ukraine and previous programmes in Afghanistan, Belize, Benin, Burkina Faso, the Central African Republic, Chad, China, Djibouti, Haiti, Honduras, Indonesia, Kenya, Liberia, Mali, the Philippines, Sierra Leone, Sudan, Thailand, and Zambia. Funding: USAID, UNDP, the World Bank, Mellon Foundation, Ford Foundation, Rockefeller Foundations, the Public Welfare Foundation, William

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Penn Foundation, RJR Nabisco, IBM, Apple Computer Company, Hershey Foods Company, and Citibank/Citicorp. Services provided: studies and inventories, planning support, financial support, practical and management support
Africa

Appropriate Technologies for Enterprise Creation (ApproTEC) URL: http://www.approtec.org/index.shtml Contact information: P.O. Box 64142, Nairobi Kenya Tel/Fax: +254 (0) 2 787380/1, 783046, 796278 Email: info@approtec.org Nick Moon, Managing Director

Description: technical assistance and training organisation. ApproTEC is a non-profit organisation founded in 1991 and based in Nairobi, Kenya with offices in Kisumu in Western Kenya, and in Arusha and Mwanza in Tanzania. It has over 85 employees in its East Africa offices. ApproTEC develops and markets new, low-cost technologies in Africa that are bought by local entrepreneurs, and used to establish small businesses. It also trains local manufacturers to produce the new technologies. ICT use: so far innovative technologies have not included ICT. Geographic focus: East Africa Funding: founders Martin Fisher and Nick Moon Services provided: planning support, financial support, practical and management support, network/relationship building
BusyInternet URL: http://www.busyinternet.com Contact information: 42 Ring Road, PMB CCC90, Accra, Ghana Tel Ghana: +233 (0) 21 258800, Tel USA: +1 212 874 3840 Fax Ghana: +233 (0) 21 258811 Email: info@busyinternet.com Mark Davies, Founder and CEO

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Description: ICT sector organisation. BusyInternet is a for-profit company founded in 2000. It promotes social and economic development in Africa through ICT by establishing a network of business incubators across Africa. BusyInternet provides the physical infrastructure (electricity, bandwidth, etc.) and brings together a social environment of like-minded experts and entrepreneurs. It is a service business, focused on providing the appropriate resources for businesses and organisations to execute on their core competencies and develop their skills. Each city has a majority local ownership, with BusyInternet providing financial services, operational and management systems, as well as an affiliate programme of international entrepreneurs, organisations and investors. ICT use: BusyInternet provides technology training and custom software development, as well as providing physical infrastructure and access to ICT services. Geographic focus: BusyInternet has established an incubator and business centre in Accra, Ghana, and plans to expand throughout Africa. Funding: Hewlett Packard, SOFT, Fidelity Investment Fund I, Databank Financial Services, International Finance Corporation Services provided: practical and management support, business incubation, networking/relationship building
Enterprise Support Services for Africa (ESSA) URL: http://www.ifc.org/abn/essa/essa.htm Contact information: P.O. Box C2638, Accra Ghana Tel: +233 (0) 21 761152, 766997, Fax: +233 (0) 21 774961 Email: jhessa@ncs.com.gh

Description: entrepreneurship services organisation. ESSA is a non-profit organisation founded in 1996 and based in Ghana. It provides management, marketing and financial consultancy services to SMEs. ICT use: develops management information systems and provides technical assistance for specific operational problems Geographic focus: Africa, focus on Ghana

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Funding: Canadian International Development Agency (CIDA) and the International Finance Corporation (IFC) Services provided: studies and inventories, financial support, planning support, practical and management support
Asia and the Pacific

UNESCOs Business Incubators for Cultural Industries URL: http://www.unescobkk.org/culture/incubator/ Contact information: Office of the Regional Advisor for Culture in Asia and the Pacific 5th Fl Darakarn Building, 920 Sukhumvit Road, Bangkok 10110 Thailand Tel: +66 (0) 2 391 0879, 391 0880, 391 0577, 390 2565 Fax: +66 (0) 2 391 0866 Email: culture@unesco-proap.org

Description: international aid agency providing entrepreneurship services. This UNESCO programme is to establish business incubators that will nurture people who wish to develop sustainable, profitable businesses utilizing culture-based knowledge, skills and practices. Indigenous cultural practices are enhanced, preserved, and used as a basis for economic development. The programme provides training, advice, credit, and space and equipment. ICT use: no particular ICT focus Geographic focus: Asia and the Pacific Funding: United Nations Services provided: planning support, financial support, practical and management support, business incubation
Central and Eastern Europe

The Business Incubator Development (BID) Programme URL: http://itri.loyola.edu/bid/ Contact information: Loyola College, International Technology

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Research Institute, Baltimore, MD 21210 USA Tel: +1 410 617 5001, Fax: +1 410 617 5123 Email: rds@loyola.edu Dr. R.D. Shelton, Director of ITRI, Director of BID

Description: ICT sector organisation. This programme of the International Technology Research Institute (ITRI) of Loyola College in Baltimore, Maryland was launched in 1997. It is creating opportunities for small business growth in Ukraine by establishing incubators that will provide consulting services, access to office equipment and training, assistance in accessing credit, and physical building space. Three incubators are fully operational in Kiev, Kharkiv and Slavutich. In Kiev, there are over 53 client companies and over 32 in Kharkiv. ICT use: support and infrastructure for high-tech entrepreneurs Geographic focus: Ukraine Funding: USAID Services provided: studies and inventories, financial support, practical and management support, business incubation
D. I N T E R N AT I O N A L , N AT I O N A L L E V E L Canadian International Development Agency Business Development Service URL: http://www.acdi-cida.gc.ca/home Contact information: 200 Promenade du Portage, Hull, Quebec K1A 0G4 Tel: +1 819 997 5006; toll free: +1 800 230 6349, Fax: +1 819 953 6088 Email: info@acdi-cida.gc.ca

Description: government aid agency. CIDA supports foreign aid projects in more than 100 of the poorest countries of the world, including business development service (BDS) delivery agents. BDS projects focus on establishing or strengthening an existing institution to deliver programs providing support to micro- and small enterprises that want to expand.

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The assistance takes a variety of forms, including training, technology, marketing assistance, firm-level counselling, or technical support. ICT use: some projects offer technology and training support programs Geographic focus: Asia, Africa and the Middle East, and Latin America and the Caribbean, as well as in the countries in transition of Central and Eastern Europe (CEE) Funding: the Canadian Government Services provided: financial support, practical and management support, policy
The Centre for International Private Enterprise (CIPE) URL: http://www.cipe.org/ Contact information: 1155 15th Street NW, Suite 700, Washington, DC 20005 USA Tel: +1 202 721 9200, Fax: +1 202 721 9250 Email: cipe@cipe.org John D. Sullivan, Executive Director

Description: seed funding and entrepreneurship training organisation. CIPE is an affiliate of the US Chamber of Commerce founded in 1983 and based in Washington DC. It has 5 field offices. CIPE has funded more than 700 projects in 80 countries and has conducted management-training programs throughout the world. CIPE s programmes include a grants programme, a global partners programme, a public policy institute, a virtual business association, business association training, and evaluations. ICT use: Economic Reform Feature Service, a free electronic communications network; CIPE listserve; online and electronic article distribution service Geographic focus: offices in Romania, Montenegro, Moscow, Cairo, and, and Kosovo, but activities are worldwide. Funding: National Endowment for Democracy, USAID IBM, Coca-Cola, Ernst & Young, Capitol Health Partners, The Pew Charitable Trusts, RJ Reynolds Tobacco and the United States Information Agency.

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Services provided: studies and inventories, planning support, financial, practical and management support, networking/relationship building, policy
Development Gateway URL: http://www.developmentgateway.org/ Contact information: 815 Connecticut Avenue, NW, Suite 620, Washington, DC 20006 USA Tel: +1 202 458 7226 or 202 473 1884, Fax: +1 202 522 7479 Email: info@developmentgateway.org Carlos Alberto Primo Braga, Programme Manager, Development Gateway

Description: web portal. The Development Gateway is a project of the Development Gateway Foundation, a non-profit organisation. It is based in Washington DC and has a staff of 31. The Development Gateway is an Internet portal for information on sustainable development and poverty reduction. ICT use: the Gateway provides simple user interfaces for numerous functions: sharing knowledge and discussing issues, registering and profiling users, accessing projects and statistical databases, joining a topic community, receiving email notifications, searching, and branding community workspaces. Geographic focus: the intention is that anyone with a sufficient bandwidth to access the portal can access it. There are Country Gateways in 19 countries in Africa, Asia, Europe, Latin and Central America, and the Middle East. Funding: Development Gateway Foundation, which receives funding from Australia, Germany, India, Japan, the Republic of Korea, Mali (sponsored by the Netherlands), the World Bank, Bloomberg, Softbank, and Transnational Computer Technology. Services provided: studies and inventories, financial support, networking/ relationship building, policy
Enterprise Development Department of the UK Governments Department for International Department (DFID)

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URL: http://www.dfid.gov.uk/ Contact information: Abercrombie House, Eaglesham Road, East Kilbride, Glasgow G75 8EA Tel: +44 (0) 1355 84 4000, Fax: +44 (0) 1355 84 4097/8/9 Email: enquiry@dfid.gov.uk

Description: government aid agency. DFID is a UK Government Department responsible for promoting development and the reduction of poverty. The Enterprise Development Department (EDD) provides grants to organisations that help SMEs, membership-based organisations and household and survivalist income generation activities. ICT use: DFID funds several projects that focus on ICT. In 2000, DFID launched the Bridging the Digital Divide programme. Geographic focus: focus on the poorest countries in Asia and sub-Saharan Africa, but DFID also contributes in Latin America, the Caribbean, and central and Eastern Europe Funding: UK Government Services provided: financial support, policy
Harvard University Open Economies Programme URL: http://cyber.law.harvard.edu/openeconomies/ Contact information: Berkman Center for Internet & Society, Harvard Law School, Pound Hall 511, 1563 Massachusetts Avenue, Cambridge, MA 02138 USA Tel: +1 617 495 7547, Fax: +1 617 495 7641 Email: openeconomies@cyber.law.harvard.edu Dr. James F. Moore, Senior Fellow, Director

Description: entrepreneurship policy and research organisation. Open Economies is a project of the Berkman Center for Internet & Society at Harvard Law School. Open Economies works with others to create policy, legal, regulatory, and fiscal conditions that encourage digital entrepreneurship and development. Open Economies is a research and action programme. The project engages a wide community of contributors in a process of dialogue and proactive policy-making, while also working closely with existing govern-

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ment and business leaders. Open Economies targets specific breakthrough projects in entrepreneurship and encourages education for entrepreneurship ICT use: the goal is to catalyse ICT innovation. It carries out case studies in conjunction with specific businesses seeking to expand in knowledgebased, information and communications-intensive markets. Geographic focus: worldwide Funding: Hewlett-Packard, Skadden, Arps, Slate, Meagher & Flom LLP, and GeoPartners Ventures Services provided: studies and inventories, networking/relationship building, policy
Inter-American Development Bank Division of Micro, Small and Medium Enterprise URL: http://www.iadb.org/ Contact information: 1300 New York Avenue, NW, Washington, DC 20577 USA Tel: +1 202 623 1000, Fax: +1 202 623 3096 Email: pic@iadb.org Enrique V. Iglesias, President

Description: international development aid agency. The IADB was established in 1959 to help accelerate economic and social development in Latin America and the Caribbean. IADB membership totals 46 nations. It has its headquarters in Washington, D.C. and offices in all its borrowing member countries. The Division of Micro, Small and Medium Enterprise (MSM) provides intellectual and technical leadership to other departments of the Bank and public and private sector institutions of regional member countries in the area of enterprise development with special attention to SMEs. Its main functions are: coordination of policies and strategies; support to other departments of the Bank in the identification and preparation of operations; quality promotion of the Banks projects; and the diffusion of best practices. ICT use: the Bank has an Information Technology for Development Division, which provides technical support for projects, offers technical advice

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to governments, and prepares strategic analysis of the technological needs of member countries Geographic focus: Latin American and Caribbean member countries Funding: the Bank is owned by its 46 member countries. Income derived from its lending operations and investments covers expenses arising from the Banks borrowings in capital markets and administrative costs and provisions, and produces net income sufficient to meet financial ratio targets. The Bank is not a profit-maximizing institution. Services provided: studies and inventories, financial support, policy
Organisation for Economic Co-operation and Development (OECD) URL: http://www.oecd.org/EN/home/0,,EN-home-0-

nodirectorate-no-no-no-0,FF.html
Contact information: 2, rue Andr Pascal, F-75775 Paris Cedex 16 France Tel: +33 (0) 1 45 24 82 00 Email: news.contact@oecd.org Donald J. Johnston, Secretary-General

Description: international development aid agency. OECD publications, individual country surveys and reviews, and statistics covers economic and social issues from macroeconomics, to trade, education, development and science and innovation. The OECD produces internationally agreed instruments, decisions and recommendations in areas where multilateral agreement is necessary for individual countries to make progress in a globalised economy. ICT use: work looks at how ICT contributes to sustainable economic growth and social well-being and the role of ICT in knowledge-based societies Geographic focus: worldwide Funding: funding is provided by member countries Services provided: studies and inventories, policy

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The United Nations Industrial Development Organisation (UNIDO) URL: http://www.unido.org/ Contact information: Vienna International Centre, PO Box 300, A-1400 Vienna Austria Tel: +43 (0) 1 26026, Fax: +43 (0) 1 2692669 Email: unido@unido.org Carlos Magarios, Director-General of UNIDO Small business development: Mr. W. Luetkenhorst, ext. 4820 Email: wluetkenhorst@unido.org

Description: international development aid agency. As part of the United Nations common system, UNIDO has responsibility for promoting industrialisation throughout the developing world, in cooperation with its 169 member states. UNIDO generates and disseminates information relating to industrial matters and provides a platform to enhance cooperation, establish dialogue and develop partnerships. The small business development programmes centre around the development and implementation of SME policies; the development of local business systems; business advisory services; rural entrepreneurship development; and womens entrepreneurship development. ICT use: ICT use includes the Industrial Partnership Promotion Network; and Incubati-Online, a reference tool for business incubators. Geographic focus: 169 member states worldwide Funding: donor countries and institutions, as well as UNDP, the Multilateral Fund for the Implementation of the Montreal Protocol, the Global Environment Facility, and the Common Fund for Commodities. Services provided: studies and inventories, financial support, business incubation, policy
The United States Agency for International Development (USAID) Micro and Small Enterprise Development Programme URL: http://www.usaid.gov/ Contact information: U.S. Agency for International Development

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Information Center, Ronald Reagan Building, Washington, D.C. 20523-1000 USA Tel: +1 202 712 4810, Fax: +1 202 216 3524 Andrew S. Natsios, USAID Administrator

Description: government development aid agency. USAID is an independent agency of the US Federal Government that supports long-term and equitable economic growth and advances U.S. foreign policy objectives by funding projects aimed at economic growth, agricultural and trade; global health; and, democracy, conflict prevention and humanitarian assistance. The Micro and Small Enterprise Development Programme uses loans and guaranties to encourage financial institutions to extend and expand credit to micro-entrepreneurs and small businesses. It is a grassroots programme designed to help poor people, especially women, create employment for themselves, acquire incomes, build assets and join in the strengthening of the formal sector of the economy. ICT use: ICT efforts include: AfricaLink, DOT-COM Alliance, Gemini Application Server, Internet Centre for Development, Internet for Economic Development (IED) Initiative, Leland Initiative, Remote Access to AIDNET, South Africa Regional Telecommunications Restructuring (RTR) Geographic focus: Sub-Saharan Africa, Asia and the Near East, Latin America and the Caribbean, and Europe and Eurasia Funding: US Government Services provided: studies and inventories, financial support, practical and management support, policy
Women in Informal Employment: Globalizing and Organizing (WIEGO) URL: http://www.wiego.org/ Contact information: Carr Center for Human Rights/Kennedy School of Government, Harvard University, 79 John F. Kennedy Street, Cambridge, MA 02138 USA Tel: +1 617 495 7639, Fax: +1 617 496 2828

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Email: wiego@ksg.harvard.edu Ela Bhatt, WIEGO Chair

Description: entrepreneurship policy and research organisation. WIEGO is a global research-policy network established in 1997 by the Self-Employed Womens Association (SEWA), Harvard University, and UNIFEM. WIEGO is a worldwide coalition of institutions and individuals concerned with improving the status of women in the economys informal sector. It compiles statistics, conducts research and develops programmes and policies. It also commissions research papers to identify key programme, research, and policy issues. Planning workshops frame issues more precisely and formulate plans of action. Component activities of each programme include a mix of research studies, programmatic interventions, and policy dialogues. ICT use: WIEGO does not have a particular ICT focus, however it posts very informative reports and statistics on its website. Geographic focus: affiliates in 25 countries worldwide Funding: Harvard University, UNIFEM Services provided: studies and inventories, networking/relationship building, policy
World Resources Institute Digital Dividends Project URL: http://www.digitaldividend.org/ Contact information: 10 G Street, NE, Suite 800, Washington, DC 20002 USA Tel: +1 202 729 7600, Fax: +1 202 729 7610 Email: dividends@wri.org Jonathan Lash, President, WRI

Description: web portal. Digital Dividends is a project of the World Resources Institute, an environmental think tank based in Washington DC. Its activities include: conducting business case studies that build the case for investment in digital dividend enterprises and for policy changes that support such investment; an executive briefing paper that documents the business opportunities in poor communities and describes private sector strategies to realize these opportunities; a Digital Dividend Clearinghouse

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and Market Research Centre; enterprise development activities in developing countries; New Venture/investment funds; and partnering with related activities. ICT use: online resources, includes the Digital Dividends Clearinghouse Geographic focus: worldwide Funding: Digital Dividends is a project of World Resources Institute, which is funded a number of foundations, corporations, individuals, and agencies, including AOL Foundation, AT&T, Wallace Global Fund, Turner Foundation, Rockefeller Foundation, IADB, SIDA Services provided: studies and inventories, policy
E. NETW O R K I N G / R E L AT I O N S H I P B U I L D I N G The American and African Business Womens Alliance (AABWA) URL: http://www.aabwa.com/ Contact information: American and African Business Womens Alliance c/o The Africa America Institute 1625 Massachusetts Ave., NW, Suite 400, Washington, DC 20036 USA Tel: +1 202 667 5636, Fax: +1 202 265 6332 Email: mspencer @aaionline.org Joyce Banda, Chairperson

Description: womens networking organisation. AABWA is a businessnetworking organisation that resulted from the conference Africa and America - A Gateway for Women in Business, held in September 2000. AABWA fosters business opportunities and access to markets through networks, linkages, mentoring, and leadership development for women. It seeks to increase international and intra-Africa trade and investment by encouraging business partnerships within the African continent and with the United States. ICT use: business exchange opportunities and business directory listings through website

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Geographic focus: Africa, particularly Southern Africa Funding: Eastman Kodak Company, American Express, The Africa America Institute (AAI), TechnoServe, Inc., The Center for International Private Enterprise (CIPE), The Botswana Confederation of Commerce, Industry, and Manpower, South African Airways, The Republic of Botswana Services provided: financial support (through promotion of partnerships and connecting entrepreneurs with investors), networking/relationship building
Business Association of Women URL: http://www.poslovnezene.org.yu/e/index.htm Contact information: 11000 Belgrade Djure Jaksica 5, Yugoslavia Tel: +381(0) 11 630 281 Email: office@poslovnezene.org.yu Sanja Popovic-Pantic, President

Description: womens networking organisation. The Business Association of Women was established in 1998 in Belgrade. It improves the conditions for women-owned companies by promoting local, regional and international links among businesswomen and other interested organisations. Activities centre around supporting womens business interests, establishing links with similar associations, providing new technologies and knowhow relevant to assisting the projects of members, and training women in starting and running a business. ICT use: online resources, database of resources, focus on training businesswomen in relevant technology Geographic focus: the former Yugoslavia Funding: Fund for Open Society, Belgrade, STAR Network of World Learning, Friedrich Ebert Stiftung, Belgrade, Freedomhouse, King Bodouin Services provided: studies and inventories, planning support, practical and management support, networking/relationship building

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National Association of Women Entrepreneurs of Malaysia (NAWEM) URL: http://nawem.org.my/ Contact information: (Persatuan Kebangsaan Usahawan Wanita Malaysia) Lot 11 Rumah Puspanita, 5171 Jalan Hose, 50460 Kuala Lumpur Malaysia Tel: +60 3 242 3325, Fax: +60 3 248 5955 Email: secretariat@nawem.org.my Dr. Bien Mei Nien, President

Description: womens networking organisation. NAWEM was founded in 1993, and is run by a 17-member committee. Its members form teams to organize activities. NAWEM harnesses the capabilities and resources of women entrepreneurs in Malaysia for the encouragement and enhancement of womens role in business. It acts as liaison between members and the Government of Malaysia, state and local agencies and organisation, as well as external agencies and bodies, such as international trade agencies. NAWEM offers many networking events, conferences, and training programs in topics such as financial management, identifying business opportunities, and ICT training. ICT use: NAWEM offers several online resources, including a directory of business resources. NAWEM also offers a wide range of ICT training programmes for members. Geographic focus: Malaysia Funding: CIDA, Malaysian Ministry of Women and Family Development Services provided: practical and management support, networking/relationship building, policy
F. S T U D I E S A N D R E S OU R C E S Australian Department of Employment and Workplace Relations URL: http://www.dewrsb.gov.au/smallbusiness/

programmes/incubators/

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Contact information: GPO Box 9879, Canberra, ACT, 2601 Australia Tel: + 61 (0) 2 6121 6000, Fax: +61 (0) 2 6121 7542 Dr. Peter Boxall, Secretary

Description: online report. The Commonwealth Department of Employment and Workplace Relations is an agency of the Australian government that aims to support strong employment growth and the improved productive performance of enterprises in Australia. It issued this national independent review of the establishment and operation of small business incubators in Australia. ICT use: online resources Geographic focus: Australia Funding: Australian Government Services provided: studies and inventories
Business and Sustainable Development: A Global Guide URL: http://www.bsdglobal.com/ Contact information: IISD Head Office 161 Portage Avenue East, 6th Floor Winnipeg, Manitoba Canada R3B 0Y4 Tel: + 1 204 958 7700, Fax: +1 204 958 7710 Email: info@iisd.ca

Description: online resources. This informational website is a project of the International Institute for Sustainable Development (IISD) and the Foundation for Global Responsibility. It offers information that companies can draw on to translate aspirations into practical, effective solutions. Case studies are provided. The site has sections on current issues, strategies and tools, markets, banking and investment, working with NGOs, and training opportunities. ICT use: online resources Geographic focus: international, based in Canada

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Funding: CIDA, IDRC, DFID, USAID, United Nations Industrial Development Organisation, the World Bank, Rockefeller Foundation, Ford Foundation, and the World Business Council for Sustainable Development Services provided: studies and inventories, policy
Center for Entrepreneurial Leadership Clearinghouse on Entrepreneurial Education (CELCEE) URL: http://www.celcee.edu/ Contact information: UCLA, A325G Moore Hall, 405 Hilgard Ave, Los Angeles, CA 90095 USA Tel (United States): 1 888 423 5233, Tel (international): +1 310 206 9386 Fax: +1 310 206 8095 Email: celcee@ucla.edu

Description: online resources. This online clearinghouse is a project of CELCEE, a non-profit organisation created in 1996 that employs about 15 people in the United States, Canada, and the Ukraine. It is a joint project of the University of California, Los Angeles and the Kauffman Center for Entrepreneurial Leadership. The CELCEE site offers a fully searchable database containing abstracts of materials on entrepreneurship education at all levels, and a collection of links to organisations dealing with entrepreneurship and entrepreneurship education. It also provides digests and educational information updates. ICT use: online resources Geographic focus: international, based in the United States Funding: Ewing Marion Kauffman Foundation. Services provided: studies and inventories
Community Research and Development Information Service (CORDIS) URL: http://www.cordis.lu/incubators/ Contact information: European Commission, Enterprise DG,

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Documentation Centre, (SC15 00/51), Rue de la Loi / Wetstraat, 200, B-1049 Brussels Belgium Fax: +32 (0) 2 296 99 30 Email: incubators@cordis.lu.

Description: online resources. This business incubator database was created by the European Commissions Enterprise Directorate-General. It provides an overview of the business incubators in the 15 EU Member States, the EEA countries (Norway, Iceland, Liechtenstein), Switzerland and the 13 candidate countries. The database contains information on over 950 business incubators. CORDIS offers access to a wide range of information on EU research and innovation development activities. The database is under development and will offer a way to identify the nearest business incubators and contact persons. ICT use: online resource Geographic focus: Europe Funding: European Union Services provided: studies and inventories, policy
Entrepreneurs Newsletter URL: http://entrepreneurs.about.com/?once=true& Contact information: About Headquarters, 1440 Broadway, New York, NY, 10018 USA Tel: +1 212 204 4000 Email: reachus@about-inc.com

Description: online resources. The Newsletter is part of the About.com network, started in 1997 by Scott Kurnit. This online newsletter covers more than 50,000 subjects with over 1 million links. The site offers resources for entrepreneurs including statistics, publications, databases, and related links. ICT use: online resources Geographic focus: international, based in United States Funding: About.com

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Services provided: studies and inventories, planning support (online), practical and management support (online)
Entreworld.org URL: http://www.entreworld.org/ Contact information: Kauffman Center for Entrepreneurial

Leadership Ewing Marion Kauffman Foundation

4801 Rockhill Road, Kansas City, MO 64110 Tel: +1 816 932 1000 Email: info@entreworld.org Judith Cone, Executive Producer

Description: web portal. Entreworld is an entrepreneurship search engine, providing more than 1,000 articles, audio clips, tools, databases and business event listings. Resources include a database, a glossary of relevant terms, a bookstore, stock quotes, an events calendar, and advice columns. ICT use: online resources Geographic focus: international, based in United States Funding: free online resources offered by the for-profit Kaufman Center for entrepreneurs Services provided: studies and inventories, planning support (online), practical and management support (online)
The European Commission Communication and Information Resource Centre (CIRCA) URL: http://forum.europa.eu.int/Public/irc/enterprise/

Home/main
Contact information: CIRCAsupport@cec.eu.int

Description: online discussion forum. CIRCA is an extranet tool, developed under the European Commission IDA programme, and tuned towards public administrations needs. It enables a given community (e.g. committee, working group, project group, etc.) geographically spread

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across Europe (and beyond) to maintain a private space on the Internet where information and documents can be shared. ICT use: online discussion forum Geographic focus: Europe Funding: European Commission Services provided: studies and inventories
The Digital Opportunity Initiative (DOI) URL: http://www.opt-init.org/ Contact information: 10 Rockefeller Plaza, New York, NY 10020 USA Tel: +1 212 713 7635 Email: doi-info@opt-init.org

Description: informational website. This site is a result of the DOI, a programme of the UNDP and the Markle Foundation launched at the G-8 Okinawa Summit in 2000. An online report and other online resources identify the roles that ICT can play in fostering sustainable economic development and enhancing social equity. ICT use: online resources Geographic focus: worldwide Funding: Accenture, Markle Foundation, UNDP Services provided: studies and inventories
The Global Enterprise Institute (GEI) URL: http://www.gcase.org/ Contact information: Email: RbrtWPrice@aol.com Robert W. Price, Executive Editor

Description: informational website. GEI is a non-profit organisation based in the United States that provides information via the Internet to entrepreneurs on issues related to entrepreneurship and the management of small, growing and emerging firms in a global arena. The website supports educa-

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tional activities and offers editorials, monographs, and seminars. The website project is run by a loose confederation of volunteers and non-profit educational backed groups, who compile pages of content and links for particular interest in which they are expert. ICT use: online resources Geographic focus: international Funding: Amazon.com, Ernst & Young, McGraw-Hill. Revenues also generated through sales of publications, seminars, conferences, professional advisory services, and licensing fees Services provided: studies and inventories, planning support
Global Entrepreneurship Monitor (GEM) URL: http://www.gemconsortium.org/ Contact information: GEM Site Administrator: Sarah Hickey London Business School, Regents Park, London NW1 4SA Tel: +44 (0) 20 7262 5050 Email: shickey@london.edu

Description: online report and resources. The GEM monitor, posted online, is the result of a research programme based at the London Business School and Babson College that conducts annual assessments of national levels of entrepreneurial activity. It was initiated in 1999 with 10 countries, and expanded to 21 in the year 2000 and 29 in 2001. The report is expected to cover close to 40 countries in 2002. ICT use: online report can be downloaded Geographic focus: worldwide, with 29 participating countries Funding: IBM, Kaufman Center for Entrepreneurial Leadership, London Business School, Babson College Services provided: studies and inventories
The Hauser Center for Non-profit Organisations URL: http://www.ksg.harvard.edu/hauser/research/nps_

in_dev_nations.htm

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Contact information: John F. Kennedy School of Government Harvard University, 79 John F. Kennedy Street, Cambridge, MA 02138 USA Tel: +1 617 496 5675, Fax: +1 617 495 0996 Email: hauser_center@harvard.edu

Description: informational website. The website contains resources on the role of NGOs in the international political economy. The site is sponsored by the Hauser Center for Non-profit Organisations, launched in 1997 as an interdisciplinary research centre at Harvard University based at the John F. Kennedy School of Government. It works to expand understanding and accelerate critical thinking about non-profit organisations and civil society among scholars, practitioners, policy makers and the general public. ICT use: online reports Geographic focus: worldwide Funding: funding provided by Rita and Gustave Hauser Services provided: studies and inventories
IC2 Institute URL: http://www.wtanet.org/eng/documents/symposium/ 97/2-2.htm, http://www.ic2.org/index.html Contact information: University of Texas at Austin, 2815 San Gabriel, Austin, Texas 78705 USA Tel: +1 512 475 8900, Fax: + 1 512 475 8901 Email: davidg@icc.utexas.edu David V. Gibson, Associate Director, IC Institute; Director, Research

Description: online report. This paper by David Gibson presents Global Networked Entrepreneurship as a strategy for linking world resources. David Gibson is an Associate Director of the IC Institute, a globally interactive organisation that uses modern telecommunications and multimedia to link research universities, businesses, and other institutional and individual resources in developed and emerging regions. ICT use: online report

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Geographic focus: worldwide Funding: IC2 Institute, The University of Texas at Austin Services provided: studies and inventories
The Microfinance Gateway URL: http://www.microfinancegateway.org/ Contact information: Eldis Programme, Institute of Development Studies, University of Sussex, BN1 9RE UK Tel: +44 (0) 1273 877423, Fax: +44 (0) 1273 621202 Email: cgmonitor@lyris.ids.ac.uk Rupert Brown

Description: web portal. The Microfinance Gateway was launched in 2000 as a collaboration between CGAP (the Consultative Group to Assist the Poorest) and ELDIS, a leading organisation in online information gateways (based at the Institute of Development Studies, UK). It is an online forum for micro-finance initiative practitioners, non-profit organisations, donors, and others to learn about micro-finance topics and to share their knowledge. Resources include an online library with a search facility that allows access to an extensive collection of over 12,000 documents and practical tools, 1,300 abstracts, and 700 downloadable documents. There is also an industry services section and a newsletter. ICT use: online resources Geographic focus: worldwide Funding: CGAP and ELDIS Services provided: studies and inventories, general programme support, planning support, business incubation (online resources)
National Business Incubators Organisation (NBIA) URL: http://www.nbia.org/ Contact information: 20 E. Circle Drive, Suite 190, Athens, OH 45701-3571 USA Tel: +1 740 593 4331, Fax: +1 740 593 1996

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Email: info@nbia.org Dinah Adkins, President, CEO

Description: informational website. This site provides online training resources and a clearinghouse for information on incubator management and development issues. Resources include fact sheets, a member directory, publications, event listings, legislation tracking, and public awareness campaigns. The site is provided by NBIA, a non-profit organisation founded in 1985. It has 1130 members. NBIA provides professionals with information, education, advocacy and networking resources to assist early-stage companies. ICT use: online resources Geographic focus: United States Funding: funded through membership fees, both organisation and individual Services provided: studies and inventories, planning support, business incubation (online resources), networking/relationship building, and policy
Small Business Notes URL: http://www.smallbusinessnotes.com/index.html Contact information: info@smallbusinessnotes.com

Description: informational website. The Small Business Notes site provides information and resources on data useful to small businesses. The site is part of the ZeZeNetwork, an association of independent Web publishers who have joined together to write about their areas of expertise ICT use: online resources Geographic focus: worldwide, focus on United States Funding: privately funded by Judith Ann Kautz Services provided: studies and inventories
StartupFailures URL: http://www.startupfailures.com/

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Contact information: 3841 Market Street, San Francisco, CA 94103 USA Tel: +1 415 310 3999, Fax: +1 801 760 6791 Email: nicholas@startupfailures.com Nicholas Hall, Founder

Description: informational website. Startupfailures is a website that supports individuals who have recently gone through or are going through the experience of a start-up failure. The website provides information on lessons learnt and some best practices. ICT use: online resources Geographic focus: United States Funding: privately funded by Nicholas Hall, ongoing development of the community supported through sponsorships, advertising, speaking Services provided: studies and inventories, planning support (online)

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ANNEX 2: Comparison Chart of Entrepreneurship Support Initiatives

This Annex is a side-by-side comparison chart of the initiatives in Annex 1. Initiatives are divided into geographical regions. Studies and resources were not included in this chart.

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Type of support
Networking/Relationship Building

AFRICA Local South Africa CITI CEBI Innovation Hub National South Africa Centre for Innovation FEBDEV Greenfields Venture Khula Sizani Scheme Regional Africa ApproTEC BusyInternet ESSA ASIA Local India CEDMAP Katha School Lupin Foundation National Bangladesh India Indonesia Regional Asia Grameen Bank EDI Bank Rakyat UNESCO Business Incubator x x x x x x x x x x x x x x x x x x x x x x x x x micro/small micro micro/small micro micro micro micro x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x small/medium micro small/medium small/medium micro/small small/medium small/medium micro/small micro micro/small small/medium

CENTRAL AND EASTERN EUROPE National Poland Regional CEE FISE BID Programme x x x x x x x x x x micro/small small/medium

Central and Latin America National Bolivia MIDDLE EAST National Israel Jordan Technological Innovative Incubation Centre Tomorrows Entrepreneurs x x x x x x x x x x small micro/small Bancosol x x micro

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Client/level of entrepreneur

Practical and Management

Business Incubation

Studies/inventories

Financial

Planning

ICT Use

Policy

Type of support
Networking/Relationship Building

MULTI-REGIONAL Community level Acumen Fund Ashoka DevelopmentSpace Digital Partners Endeavor Geekcorps Greenstar New Ventures PEOPLink TechnoServe Trickle Up VITA NATIONAL LEVEL CIDA CIPE Development Gateway DFID Open Economies Inter-American Dev Bank OECD UNIDO USAID WIEGO WRI Digital Dividends NETWORKING AABWA Business Assoc of Women NAWEM x x x x x x x x x x x small/medium small/medium small/medium x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x micro/small small/medium NGOs/govt NGOs/govt NGOs/govt small/medium NGOs/govt micro/small NGOs/govt micro NGOs/govt x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x small/medium small/medium micro/small micro/small medium micro/small micro/small medium micro/small micro/small micro micro/small

Reprinted by permission of Bridges.org, 2003). Copyright (2003) by the Bridges.org.

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Client/level of entrepreneur

Practical and Management

Business Incubation

Studies/inventories

Financial

Planning

ICT Use

Policy

Measuring Success in Entrepreneurship Support Initiatives: What Works and What More is Needed
Prepared by bridges.org to inform the deliberations of the National and Regional e-Strategies Working group of the ICT Taskforce

SYNOPSIS

[This report, together with the report Supporting Entrepreneurship in Developing Countries: Survey of the Field and Inventory of Initiatives, offers a market analysis of the entrepreneurship support field.] Entrepreneurship support initiatives (ESIs) come in a variety of shapes and sizes, and they offer a range of services to small, micro, and mediumsized enterprises (SMMEs) and entrepreneurs. The inventory report gave a descriptive look at this emerging area in development aid. This report accompanies and builds on the inventory, with a more evaluative look at the field of entrepreneurship support. The inventory report is intended as a resource for connecting like-minded ground-level initiatives, so they can exchange information, learn from one another and avoid duplication of effort. This companion report is offered as a first step toward common evaluation criteria that ESIs could use to gauge the effectiveness of their activities. Both are also intended to inform the deliberations of the various international planning efforts currently underway as they ponder the value-added that can be brought to this area.

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Common criteria for measuring the success of ESIs could provide a useful tool for promoting evaluation as a learning tool. Case studies are a popular way for development programmes to tell the stories about what is happening in the field. However, the value of most publicly available case studies is limited, because they are seldom conducted as an objective evaluation and are used more for promoting small initiatives than for learning from what others have done. With that in mind, we have offered a standard formator report cardthat incorporates key success metrics which could be used to determine what works best for supporting entrepreneurship, and why. We have identified the following basic criteria against which an ESI could be evaluated: setting concrete goals and achieving them; implementing and disseminating best practices; evaluating efforts and reporting back to clients and supporters; creating new businesses; building local capacity and imparting a skill set so businesses can grow themselves; facilitating truly original ideas; building businesses that withstand the test of time; fostering environmentally sustainable business; focusing on marginalized groups; positively affecting the local economy and society; fostering catalytic change by promoting a culture of entrepreneurship; addressing policy issues that hinder entrepreneurship and SME development; implementing a cost-effective approach to get the most impact for the least cost; integrating technology and going beyond ICT; offering services that are relevant and useful at the ground level; and satisfying client entrepreneurs. The evaluation report card provides a format for presenting basic facts about the organisation, and a system for the initiative to be objectively rated according to each metric category with a numeric score and a descriptive evaluation. The report format also includes a space for the organisation itself to offer its views on its greatest success, greatest failure, and the most important lesson it has learned, which could provide vital insight for other organisations. Based on our research and observations, we offer a number of informed opinions on the main challenges faced by ESIs and what more is needed to further develop the field of entrepreneurship support. ESIs face a number of particular challenges, including ground-level obstacles, deal flow, lack of background data, disconnect of funding sources to small initiatives, and needs for other support. The following directions

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represent our opinions about what more is needed to bolster this emerging model for development aid: learn from what is happening in the field already, and build on it; extend ESI services to more communities; focus on groundlevel experience; connect ESIs with one another; harness creativity; stir public interest and participation in policy-making efforts; apply business practices to ESI operations; foster a culture of entrepreneurship at community level; and do everything outlined above under one roof by launching regional entrepreneurship centers to catalyse system-wide change.
INTRODUCTION

Entrepreneurship support initiatives (ESIs) come in a variety of shapes and sizes, and they offer a range of services to small, micro, and medium-sized enterprises (SMMEs) and entrepreneurs. Our report, Supporting Entrepreneurship in Developing Countries: Survey of the Field and Inventory of Initiatives106, offers a descriptive look at this emerging area in development aid. We selected sixteen initiatives that are notably successful, innovative, or representative of a particular type and used them to illustrate the kinds of ESI services that are available and the methods that are being used to promote entrepreneurship. We covered a range of programmesfrom local community initiatives to large international efforts. An extensive list of ESIs is presented in the Annex to that report, giving a quick but comprehensive overview of a broad range of ESIs. Even a cursory examination of ongoing ESIs reveals how this methodology for development aid is taking shape and the trends in the field. Wealth creation is increasingly seen as a vehicle for social change, and social entrepreneurship is on the rise. Following the approach of a few trailblazing organisations, there is a wave of new initiatives that emphasize public/private partnerships and incorporate basic business principles, emphasizing accountability and measurable results. Many efforts tap into the power of human connections by building relationships among like-minded individuals and organisations so they can share experiences and contacts. Information and communication technology (ICT) is used both in the delivery of ESI services and as a tool for SMMEs and entrepreneurs.

106. See http://www.bridges.org/entrepreneurship/esi_inventory.pdf

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This report accompanies and builds on the inventory report, with a more evaluative look at the field of entrepreneurship support.107 Specifically, Section 2 looks at a range of success metrics that can be used to determine what is working best and why, and highlight the greatest challenges that ESIs face. Section 3 offers a standard formator report cardthat incorporates the success metrics and could be used as a tool for objective evaluation of ESIs. The metrics and report card are illustrated in Annex 1 with an example evaluation of the Grameen Bank, a well-known and successful ESI. Finally, Section 4 considers what more is needed to provide support to entrepreneurs and SMEs in developing countries, and offers suggestions on how the gaps should be filled. Together, these reports offer a market analysis of the entrepreneurship support field. The inventory report is intended as a resource for connecting like-minded ground-level initiatives, so they can exchange information, learn from one another and avoid duplication of effort. This companion report is offered as a first step toward common evaluation criteria that ESIs could use to gauge the effectiveness of their activities. Both are also intended to inform the deliberations of the various international planning efforts currently underway as they ponder the value-added that can be brought to this area
SUCCESS METRICS: DET E R M I N I N G W H AT W O R K S A N D W H Y
The value of case studies

Case studies are a popular way for development programmes to tell stories about what is happening in the field. They offer a mechanism for information exchange about small initiatives and disseminating accomplishments that might otherwise go unnoticed. Programmes such as the World Resource Institutes (WRI) Digital Dividends project, the International Institutes for Communication and Developments (IICD) ICT Stories Competition, the

107. This report assumes that the reader has reviewed the inventory report, in particular by drawing from the ESIs reviewed in the inventory to provide examples to illustrate points in this text.

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Development Gateway, and the Stockholm Challenge provide a forum for dissemination.108 However, the value of most publicly available case studies is limited, because many are submitted by the organisations themselves and are mainly intended as promotional pieces. Those that have been compiled by outsiders are often just nice human-interest stories, or they are dry and technical reports on implementation details. While some development aid programmes conduct internal evaluations, few subject themselves to a public critique of their activities. There is great hesitance to publicly criticise any programme trying to do something good, no matter what its shortcomings might be. The situation is complicated by the relationships that drive the development community, both between non-profit organisations and funders, and among organisations that compete for development funds and public mindshare. No one wants to risk alienating an organisation from possible funders or project collaborators. But in this, as in other areas, the development community could follow the lead of the private sector, and understand evaluation as a part of the learning process and a component in creating the best possible service delivery. Business students and MBA candidates learn from real world examples by using objective case studies of businesses to examine successes and failures. They try to figure out what works best and why and study the mistakes of others to fully understand how to build successful businesses for themselves. Business professionals seek out critical evaluations of entrepreneurs and enterprises in magazines like Red Herring and The Industry Standard, and they exchange experiences at conferences and seminars, to learn from their peers and compare their own approaches to others. And this model of learning from the lessons of the marketplace could be equally applied to instruct ground-level entrepreneurship support initiatives and the development community more broadly.
THE NEXT S T E P : O B J E C T I V E E VA L U AT I O N C R I T E R I A

Analysing and comparing ESIs is not a simple task since many have different goals and gauge success accordingly. Some initiatives focus on only one

108. For more information see: http://www.digitaldividend.org/; http://www.iicd.org/stories/; http://www.developmentgateway.org/; http://www.challenge.stockholm.se/

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aspect of entrepreneurship support, like seed funding, while others address a range of issues, such as business management and financial planning assistance as well as funding. Nonetheless, common criteria for measuring the success of ESIs could provide a useful tool for determining what works bestand what could help it work betterand why. In this section we offer a range of criteria for success that could be used to evaluate ESI efforts. But measuring success is tricky. It implies value judgments, and suggests that what is not successful is a failure. We recognise the shades of gray in our search for ideas about what works, and we define best practices broadly to accommodate a variety of approaches. We do not claim that every ESI must meet every criterion in order to be considered successful. And we recognise that every measurement may not be appropriate for every ESI, and that some may be very successful without meeting all criteria. Moreover, this list is not meant to be hierarchical: none of these criteria is necessarily more important than another. What is intended is an overall look at the options, and a baseline, for gauging the effectiveness of an ESI. We have identified the following basic criteria against which an ESI could be evaluated used examples taken from the initiatives covered in the inventory report to illustrate the points below:
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) Setting concrete goals and achieving them, Creating new businesses, Implementing and disseminating best practices, Evaluating efforts and reporting back to clients and supporters, Building local capacity and imparting a skill set so businesses can grow themselves, Facilitating truly original ideas, Building businesses that withstand the test of time, Fostering environmentally sustainable business, Focusing on marginalized groups, Positively affecting the local economy and society, Fostering catalytic change by promoting a culture of entrepreneurship, Addressing policy issues that hinder entrepreneurship and SMME development, Implementing a cost-effective approach to get the most impact for the least cost,

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(14) Integrating technology and going beyond ICT, (15) Offering services that are relevant and useful at the ground level, (16) Satisfying client entrepreneurs. SETTING CO N C R E T E G O A L S A N D A C H I E V I N G T H E M

ESIs build their strategies around what they believe is the greatest obstacle to entrepreneurship or SMME development: for example, the need for funding, business planning assistance, or business skills training. To accomplish the mission, most ESIs set out a concrete methodology with target deliverables, such as a certain number of loans distributed, business plans drafted, or people trained. So, the first thing to consider about an ESIs success is whether it does what it said it would do in a quantifiable way. Grameen Bank is an example of an ESI that demonstrates the fulfillment of its mission through compelling statistics. The Bank has lent over US$1 billion to over two million borrowers and has a 97% repayment rate; it has 2,384,377 members and 1171 branches in 40,428 villages. This kind of concrete measurable is the development equivalent of the financial bottom line of a business, and it is usually required by ESI funders who want to see the results of their social investments. But the measure can be deceiving. An initiative might be very good at doing what it said it would, such as assisting 100 entrepreneurs to write business plans each year. Yet if no businesses are ever actually launched or the businesses do not make any money or the clients are not satisfied with the help they receive, then the ESI might not be very successful after all. ESIs should have a quantifiable method of demonstrating how they achieve their mission and it is important that they do what they say they will. But those who evaluate their success should look beyond the numbers to consider the context and broader impact.
C R E AT I N G N E W B U S I N E S S E S

The next level of evaluation is to consider whether the ESI succeeds in creating new businesses. This can obviously be linked to the previous idea where the mission of an ESI is specifically to create new businessesbut not necessarily. Trickle Up is a good example of this measure for success. Since 1979 it has helped start over 100,000 businesses in 119 countries. However,

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again it is important to take this measure at face value. Some ESIs do not set out to create new businesses, but they have a positive effect on entrepreneurship and SMME development through a different approach.
IMP L E M E N T I N G A N D D I S S E M I N AT I N G BEST PRACTICES

An effective initiative will learn from others, and allow others to learn from it. Too often new initiatives do not do their homework before launching something new. By reviewing and learning from what is already underway in the field, new efforts can benefit from the learning curve of others by building on successful ideas and avoiding mistakes that have already been made. Every new programme should start with an examination of the best practices in the field. ESIs can also extend the reach of their efforts by sharing their experiences with like-minded initiatives and disseminating their own best practices and lessons learned. DevelopmentSpace is one example of an initiative that was developed out of an extensive review of what was happening in the field and was specifically designed to fill the gaps.
EVALUAT I N G E F F O R T S A N D R E P O R T I N G B A C K T O CLIENTS AND SUPPORTERS

ESIs have a financial obligation to funders and supporters and a moral obligation to clients to provide services that are well-run and transparent. And all stakeholders should be updated on the initiatives, activities and results with regular reports. Evaluation not only provides a mechanism for external answerability, but also helps an initiative assess its own projects and internal processes, and understand what works best and what does not. For example, TechnoServe, through its evaluation model that measures core indicators, impacts, and cost-effectiveness, provides its funders with concrete data on its programmes and results.
BUILDING L O C A L C A PA C I T Y A N D I M PA R T I N G A S K I L L SET SO B U S I N E S S E S C A N G R O W T H E M S E LV E S

An ESI should build the local capacity of people to enable them to do for themselves. It is also one way of ensuring that the ESIs beneficial effects extend beyond the individual entrepreneurs to the community and country.

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By training entrepreneurs and imparting a relevant and transferable skill set, it will enable them to grow their businesses after the direct assistance ends, and apply what they learn to new enterprises in the future. In this regard, an ESI succeeds if it leaves something behind after the intervention ends and thereby helps entrepreneurs move up the value chain on their own. For example, Endeavor focuses on growing, rather than starting, businesses by further developing enterprises that already exists and providing networking and support services for high-growth companies. One of its main goals is to leave the entrepreneurs with a range of business skillsfrom management to technology useand thereby build a broader entrepreneurial environment that will develop on its own.
FACIL I TAT I N G T R U LY O R I GI N A L I D E A S

Another way that an initiative can be successful in supporting entrepreneurship is when it facilitates the local development of truly original ideas. The definition of an entrepreneur is someone who assumes the financial risk of beginning and managing a new venture, a venture based on a totally new idea, a new way of doing something, doing the same things in a new location, or attempting something no one else has done before. And new ideas are the lifeblood of entrepreneurship. The reality at ground-level is often that the thing people need most is the ability to imagine the possibilities, such as the possibilities for businesses that serve a niche in the local community or possibilities for uses of technology that are locally relevant. By inspiring and supporting people to think for themselves, an ESI can facilitate new business applications to spring up in the local context. For instance, Geekcorps volunteers are trained with this principle in mind, so that they do not just take technology applications that work in the US and transfer them to developing countries, but they work within the local context to help people discover and implement their own applications for technology.
BUILDI N G B U S I N E S S E S T H AT W I T H S TA N D THE TEST OF TIME

This criterion looks at whether ESIs are supporting businesses that are economically sustainable over time. An ESI may launch a certain number

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of new businesses in a given year, but it is worth considering whether they are still running after one, two, five or ten years to determine whether the businesses remain viable after the support has ended. For example, Trickle Up considers the long-term viability of the new businesses it starts by formally tracking them for at least five years. According to its records, two-thirds of the businesses are still running after one year. However, this criterion must also be applied judiciously. While it is optimal to have businesses that are sustainable in the long run, the success of small businesses is uncertain under the best of circumstances. In the volatile world of start-up enterprise, it is a given that a certain percentage of new businesses and entrepreneurs will failand this is not necessarily a negative.109 In an entrepreneurial culture, people will learn from their failures and ideally will apply those lessons to more successful ventures in the future. The ESI should equip entrepreneurs with skills that are transferable. A first business attempt might fail, but a trained, educated entrepreneur will retain the knowledge and abilities to try again.
F O S T E R I N G E N V I R O N M E N TA L LY S U S TA I N A B L E B U S I N E S S

It is also important to consider whether ESIs foster sustainable development in terms of the environmental impact of the businesses they create and support. In developing countries the physical environment is a critical issue for development, and it affects a range of factors that determine quality of life and health. A business cannot be considered truly sustainable if it is not environmentally aware and does not integrate environmentally responsible actions into its operations. An ESI can provide information and guidance to empower businesses in developing countries to leapfrog the environmental damages caused by resource-intensive industrial stages that the world is now trying to repair. This should be a two-tiered level of assessment, reflecting not only the actions of the ESI itself in setting an example as an environmentally responsible organisation, but also the
109. Indeed, many would argue that failure is a necessary part of an entrepreneurial environment. For example, in the United States, where the environment is conducive to entrepreneurial ventures, the Small Business Administration found that from 1989 to 1992, only 66% of all small businesses remained open for two years, 49.6% for 4 years, and 39.5% 6 years.

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environmental standards and practices that are encouraged and imparted to new businesses and entrepreneurs. The World Resources Institutes New Ventures initiative offers an example of an ESI that succeeds in this regard. New Ventures itself is housed in an environmentally friendly green office. Environmental impact is one of the factors considered in its selection process and it only supports entrepreneurs who are creating sustainable, environmentally aware enterprises.
FOCU S I N G O N M A R G I N A L I S E D G R O U P S

The concept behind ESIs assumes that the initiative exists to help individuals or countries on the lower end of the economic spectrum. However, even within developing countries there exist differences in access to funding and education based on gender, race, age or religion. An initiative risks creating further divisions between the haves and have-nots if it does not focus on the particular needs of these marginalized groups. For example, the Grameen Bank exists to assist the poorest of the poor in Bangladesh, but in delivering credit, priority has been increasingly assigned to women. Women now make up 95% of Grameens borrowers, and studies have shown that women borrowers have raised their status, lessened their dependency on their husbands and improved their homes and the nutritional standards of their children.
POSITIVE LY A F F E C T I N G T H E L O C A L E C O N O M Y AND SOCIETY

Positive effects on the local economy and society are measured in terms of traditional statistical indicators like job creation, unemployment rates, disposable income, tax revenue and other social factors. This criterion is very important, but also very difficult to assess, because even if there is growth in the economy, it may be extremely difficult to associate it with the activities of a certain initiative. And since it relates to overall cumulative effects, rather than the success of individual businesses, it may not be apparent for years. However, ESIs can also structure their interventions in a way that will make it easier for their impact to be measured. For example, TechnoServe helps build businesses that have a positive impact on the local economy and tax base. TechnoServe evaluates the impact of its

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programmes by collecting and analysing core indicators such as gross and net profits, number of employees, and the dollar amount of raw product purchased from the rural poor. An impact assessment is conducted annually in the community where the business is located. TechnoServe also conducts a cost-effectiveness analysis that compares the cost of TechnoServes programmes with the economic and social benefits to the clients. On average, every $1 invested in TechnoServe has consistently returned more than $5 in benefits to the rural poor in the form of higher wages, higher salaries, and higher profits.
FOSTERI N G C ATA LY T I C C H A N G E B Y P R O M O T I N G A C U LT U R E O F E N T R E P R E N E U R S H I P

By creating a culture of entrepreneurship an ESI can foster catalytic change and ensure the widest possible results from its efforts. In many developing countries, the ideals that form the basis for an entrepreneurial culture risk-taking, innovation, acceptance of failure, learning from mistakesare not native ideas. If an ESI does not establish some foundation for these concepts as part of what it does, the SMME environment that it creates will wither on the vine when left alone. But the entrepreneurial ideals need to make sense to the people on the ground so that they can understand the advantages of entrepreneurship for themselves. A successful ESI will build on relevant aspects in the local economy and society and raise awareness about the benefits of entrepreneurship. New Ventures mentors the entrepreneurs it has identified to work with, providing not only business planning and funding assistance, but continuing to assist them by providing a network of professionals and fellow entrepreneurs. New Ventures works to catalyse the entrepreneurial culture by connecting local entrepreneurs with local funding, creating a pipeline of business connections that goes beyond an individual business. These mechanisms work to create a supporting environment for entrepreneurial services and attitudes.
ADDRE S S I N G P O L I C Y I S S U E S T H AT H I N D E R ENTREPR E N E U R S H I P A N D S M M E D E V E L O P M E N T

A sound legal and regulatory framework is necessary to create a reliable environment within which business and social programmes can thrive. But

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many ESI programmes are hindered in countries with policies unfavourable to SMME development. Most policy-making processes would benefit from a clearer understanding of how policy affects the entrepreneur at ground level. ESIs should help entrepreneurs and SMMEs address policy obstacles, at least by helping government, business and society stakeholders better understand each others position and responsibilities. For example, the National Association of Women Entrepreneurs of Malaysia (NAWEM) acts as a liaison between its members and the Government of Malaysia, state and local agencies and organisations, and external agencies and bodies, and often plays a role as policy advocate for entrepreneurs. However, the majority of ESIs do not have a strategy for addressing policy obstacles in place, and this could have a negative impact on the effectiveness of current programmes in the long-term.
IMPLEMEN T I N G A C O S T- E F F E C T I V E A P P R O A C H TO GET TH E M O S T I M PA C T F O R T H E L E A S T C O S T

Many initiatives expend a large amount of money on start-up and overhead costs, to little effect. But supporters expect the greatest possible return on their social investment, so an ESI must ensure that its interventions have the most impact for the least cost. An ESI should apply the same standards of business operation to itself as it does to its client entrepreneurs, and that includes an evaluation of its efficiency and cost-effectiveness. Trickle Up offers an example of an innovative cost-effective approach. People already working there, such as Peace Corps Volunteers or staff from community organisations, implement the programmes locally in each country and that keeps overhead low.
INTEGRATING T E C H N O L O G Y A N D G O I N G B E Y O N D I C T

While ICT may not seem like a central concern when supporting entrepreneurs that need a good business plan and seed funding more than they need a computer, the reality in todays information society requires that most SMMEs have some level of ICT use integrated into their business. An entrepreneur who uses ICT appropriately and effectively can run a more efficient business and reach markets that were previously unimaginable. And entrepreneurs who do not understand or use ICT will be left

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behind. It is a given that any ESI should be using technology as a tool for delivering on its mission as well as providing appropriate ICT-based business skills training as part of the services offered to entrepreneurs. But ICT is just a tool. It is a tool for improving the way that companies do what they do, as it is a tool for improving the delivery of social services like healthcare, education, and government-to-citizen programmes. And it is equally important that ESIs go beyond technology and focus on the use of ICT only as a means to an end, not the end. Entrepreneurs and SMMEs in developing countries should not be lured into thinking that a local ICT sector will solve their community or countrys economic and social problems; it is the use of ICT that matters. It is important for ESIs to go beyond existing models for ICT use and think outside of the box to imagine the possibilities for how ICT can be used to solve local problems in developing countries. There are some examples of ESIs that integrate ICT use into what they do and the businesses and communities they serve, by connecting potential funders to entrepreneurs, implementing their programs, and assisting entrepreneurs to use ICT for local business. The Foundation for Economic and Business Development (FEBDEV) integrates ICT training into all of its business skills courses, both at the theoretical and practical levels. Geekcorps provides hands-on technical support and training for SMMEs. A number of initiatives also use ICT as a tool for exchanging information, collaborating online, and managing relationships from a distance to extend their reach to places where they do not have a physical presence. However, the effectiveness of initiatives that are solely Internet-based is extremely limited because many of the people in developing countries who need the most help do not have access to the Internet. Even for those that do have Internet access, it is often too slow and/or expensive to be an effective mechanism for obtaining information. Overall, ICT is under-utilized in the field of entrepreneurship support (as with most other kinds of development aid efforts). Trickle Up and TechnoServe are just two examples of ESIs that do not use ICT effectively themselves, nor do they integrate it as a tool for client entrepreneurs. The organisations are aware of the deficiency, yet are still struggling to find the most effective way to incorporate ICT into current activities.

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OFFERING S E RV I C E S T H AT A R E R E L E VA N T A N D US E F U L AT T H E G R O U N D L E V E L

This criterion can be the make-or-break point, because even when all other criteria are met, if the ESI services do not relate directly to the lives of local people in a relevant and useful way, the initiative is unlikely to succeed overall. At the end of the day it is all really about the people at ground level who are on the receiving end of any development aid programme. ESI services must be user-friendly, integrated at a community level, compatible with the existing political framework, accessible, affordable, and appropriate to local culture and languages. Traditionally, development aid agencies took a top-down approach and brought solutions from far-away places. But a bottom-up approach that involves the client entrepreneurs in the design of the programme can be a very effective way of ensuring that ESI services are relevant and useful to the lives of people at the ground level. It can also help the programme to gain local support and transfer a sense of local ownership of the process and the results. An initiative that is locally relevant and useful is more likely to take on a life of its own and become part of the community rather than one imposed upon it. There are many good examples of ESIs that offer relevant and appropriate services. This is particularly true of locally initiated and developed ESIs, such as the Cape IT Initiative (CITI), which arose to address a needfor IT support services in the Western Cape regionand is using community resources and connections to address that need. At the same time, CITI is helping the local community understand the need for, and advantages of, ICT development. CITI is homegrown, but has an impact beyond the local community.
SATISF Y I N G C L I E N T E N T R E P R E N E U R S

One of the best indicators for the success of any ground-level initiative is whether the people whom the services are supposed to help are satisfied with the programmes and feel that they have benefited from the services they receive from ESIs. All initiatives should have mechanisms for clients to give feedback, and they should respond to it accordingly. For example, Geekcorps communicates face-to-face with its clients to develop solutions that are driven by their real needs. As volunteers work with the business to

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address the identified problems, entrepreneurs have opportunities for giving feedback throughout the process, and adjustments are made along the way.
EVAL U AT I O N R E P O R T C A R D T E M P L AT E

The success metrics outlined above form the basis for an objective, evaluative case study approach that could be used as a learning tool in the entrepreneurship support field. In this section we put those metrics into a standard format for evaluation, or report card, for gauging the success of ESIs. The evaluation report starts by presenting some basic facts about the organisation, such as when it was founded, the number of employees, geographic focus, and example projects. Then it provides a system for the initiative to be objectively rated according to each metric category with a numeric score and a descriptive evaluation. The report format also includes a space for the organisation itself to offer its views on its greatest success, greatest failure, and the most important lesson it has learned, which could provides vital insight for other organisations. The success metrics are broad and may be applied to each ESI differently, and they are not hierarchical; therefore, the evaluation report should be used for presenting descriptive critiques of individual initiatives rather than for ranking them against one another. See Annex 1 for a sample evaluation of The Grameen Bank using this template. What works and why: <name of initiative> <evaluated by>, <date> Name of initiative: Type: <3-4 word description of the type of organisation or initiative> Mission: <2 sentence description of mission> Geographic focus: <where the work is undertaken> Contact information: <address, telephone, fax, email> URL: <web address> Started when and how: <year it was launched, and set up as what kind of organisation (for profit corporation, Section 21 nonprofit corporation, initiative of a 501(c)(3) organisation, etc.)> Size: <how many employees, how many offices> Director and organisational structure: <name of the director, short description of the key organisational structures> Annual budget and main funders:

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Example projects: <short description of 2-4 examples projects> Summary critique: <short paragraph summarizing the overall evaluation> In the words of the evaluated initiative: <direct comments from the initiative on its greatest success, greatest failure, and/or most important lesson learned>
METRIC Concrete goals and achievements New businesses Best practices SCORE 1-5* 1-5 1-5 EXPLANATION AND DESCRIPTION Does the ESI set concrete goals and does it achieve them? Do the goals relate to the ESIs mission? Does the ESI start new businesses? Does the ESI look at what similar initiatives have done already before it starts something new? Does it apply best practices in what it does? Does it share its experiences with like-minded efforts to disseminate best practices? Does the ESI evaluate its efforts and does it report back to its clients, funders and supporters? What does the ESI work to build local capacity? Does it impart a skill set that will allow entrepreneurs to grow their businesses for themselves? Does the ESI facilitate truly original ideas to emerge from the communities where it works? Does the ESI build businesses that withstand the test of time? Does the ESI incorporate environmental principles into what it does, and encourage the SMEs it helps to become environmentally sustainable? Does the ESI focus on the particular needs of people marginalized by gender, race, age or religion? Does it have specific programmes aimed at helping these groups? Does the ESI have a positive effect on the local economy and society in terms of traditional statistical indicators like job creation and unemployment rates? Does the ESI foster catalytic change by promoting a culture of entrepreneurship in the communities where it works? Does the benefit of the programs work extend beyond the program itself? Does the ESI have a strategy for helping entrepreneurs and SMEs address policy obstacles? Does the ESI implement its programmes in a cost-effective way to get the most impact for the least cost? Does the ESI integrate ICT into what it does and the services it provides? Does it treat ICT as a means to an end? Does the ESI offer content or services that are relevant and useful at ground level? Are the client entrepreneurs satisfied by the ESIs services?

Reporting and evaluation Local capacity

1-5 1-5

Original ideas The test of time Environmentally sustainability

1-5 1-5 1-5

Focus on inequalities of gender, race, age or religion Local economy and society

1-5

1-5

Catalytic change

1-5

Policy issues Cost-effectiveness Integrating technology and going beyond ICT Relevant and useful services Satisfying client entrepreneurs

1-5 1-5 1-5

1-5 1-5

* Scores were given on the basis of 1-5, with 1 being the best rating.

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OUR VIEWS: FILLING IN THE GAPS

Based on our research and observations, we offer the following informed opinions on the main challenges faced by ESIs and what more is needed to further develop the field of entrepreneurship support.
MA I N C H A L L E N G E S FA C E D B Y E S I S

In addition to meeting the yardsticks for success described above, initiatives seeking to support SMMEs and entrepreneurs in developing countries need to overcome a number of particular challenges. These issues are not necessarily unique to this field, but are nonetheless worth mentioning here.
Ground-level obstacles: An ESI needs to have a realistic perception of the obstacles at the ground level before setting up operations. An understanding of the local social and political issues, as well as the e-readiness of the community, will put the initiative on solid footing. Having local buy-in for its activities, such as through an established network of local partners and contacts, will help address this challenge. Deal flow: All of the ESIs face the challenge of creating deal flow so they can connect with suitable SMMEs and entrepreneurs who will be the recipients of their services. A model in which ESIs rely solely on online relationships and/or parachuting in experts for short periods of time is unlikely to deliver reliably. However, staffing an office in each community is unwieldy, exponentially increasing overhead and adding layers of bureaucracy. ESIs need creative ways to effectively build and manage relationships. Lack of background data: Everything is still too new to fully understand how things will play out or the true effectiveness of new models of ESI support. ESIs should gather data and assess performance to inform further developments in the field, so that in time this challenge will be addressed. Disconnect of funding sources to small initiatives: While there is considerable funding available to support entrepreneurship and SMME development, the flow of funding needs to be improved. Large, top-down development aid programmes still receive a disproportionate share of international development aid money, even

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though it is increasingly clear that other approaches are more effective. Quite often the small, ground level initiatives that produce the most significant results have the hardest time getting funded, so appropriately directed funding could allow for much greater impact in the field overall. Needs for other support: In addition to funding, existing groundlevel ESIs need other kinds of support including: access to technology and technical assistance, appropriate materials with relevant local content (such as how-to manuals or information on public services), practical business management assistance, and networking. Technical assistance includes connections to the local ICT sector, so that available resources can be accessed, and shared among initiatives. W H AT M O R E I S N E E D E D ?

Often, international organizations, developed country governments, and ICT companies promote a single perfect solution for fostering entrepreneurship based on their favourite business models and technologies, regardless of the countrys needs and history. But there is no one-size-fitsall approach that works best for supporting entrepreneurs in developing countries. The formula for a successful ESI may be unique to each country or community, and it will be shaped by the existing web of local business, culture, economics and politics. Still, there are a number of commonalities in the broad challenges ESIs face overall. Our review of the trends in the field and consideration of how best to measure success has led us to some (mostly obvious) conclusions about what more is needed to bolster this emerging model for development aid.
Learn from what is happening in the field already, and build on it. There is no single approach to entrepreneurship support, but understanding the best aspects of different initiatives is the first step to improving the field overall. Before proposing new models for entrepreneurship support, it would be useful to look at what is already underway and consider how best to enhance it. One way would be to help existing ESIs become successful. The measures

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for success outlined above provide a starting point for determining what ESIs need to improve. Extend ESI services to more communities. Use the measures for success to determine what is working best and why, and replicate it in other places as appropriate to local circumstances. Successful ideas can also be spread through the effective use of technology. Others should be encouraged to copy the best ideas. Bring people together for seminars and show them what is happening in other communities. Focus on ground-level experience. The only way to formulate a legitimate and effective ESI programme is to understand and be involved in what is happening on the ground. Problems must be viewed from the perspectives of local people and strategies must work within the local community context. Connect ESIs with one another. ESIs should connect to share information and experiences and disseminate best practices. If initiatives were better connected, strengthening some would be a way to benefit them all. ESIs on the ground need to utilise existing networks and share resources with other local organisations. Harness creativity. Foster ESIs that can nurture local sparks of innovation and creativity that represent real solutions to real local problems. Create environments where entrepreneurs can explore and implement new ideas. Stir public interest and participation in policy-making efforts. There is a strong connection between a thriving entrepreneurial community and a positive governmental legal and regulatory framework. Entrepreneurs should understand how policy-making affects them and their businesses. Apply business practices to ESI operations. Many ESIs hold the entrepreneurs they assist to a higher standard of business practicessuch as detailed business plans, budget breakdowns, and reporting mechanismsthan they apply to their own operations. Many do not have a clear statement of the needs they are trying to address, a detailed analysis of how the initiative will address the particular need, a long-term plan for their own sustainability, or a way of measuring results. This makes it difficult to measure the

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impact or figure out what might need to be changed to improve the initiative. Foster a culture of entrepreneurship at community level. Give local communities positive examples of the benefits of entrepreneurship. Show people how new SMME growth in their communities can be good for them. Provide an environment where people can take risks to start new businesses. Do everything outlined above under one roof by launching regional entrepreneurship centers to catalyse system-wide change. There is a lot of focus on catalysing change, but it is not clear what that really means or how it can actually be done. One way to catalyse change is to create clusters of like-minded initiatives and stir activities around them. A regional centre could be a gathering place for various ESIs, entrepreneurs, SMMEs, potential funders, non-governmental organisations, ICT companies and trainers. It could provide physical infrastructure, information resources, and practical assistance to bolster the range of efforts to support entrepreneurial activities. The centre could be the basis for an ecosystem of existing initiatives, bringing together diverse skills and resources, and providing a physical point of connection. It could be a place where entrepreneurs would come to implement their ideas, get trained, obtain resources, share experiences, connect with people who could help them, and where like-minded efforts would co-locate to share energy, resources, ideas, and people. CONCLUSION

Factors that contribute to the growth and success of entrepreneurship, and entrepreneurship support initiatives, are complex. Levels of entrepreneurial activity in a country are affected by cultural norms, including a general entrepreneurial mindset of risk-taking and the level of encouragement received by women and minorities; access to financial support and belief in the financial future of the country; the role of the government; the physical infrastructure; and access to education and training. Support initiatives either choose to address one of those barriers, or attempt to find a holistic approach for addressing all of the barriers.

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In general, our research and examination of entrepreneurship and ESIs has shown that:
Economic development and markets are inherently linked to poverty reduction; Anything done should be based on concrete local needs, and locally driven; It is important to catalyse change with a number of diverse, but loosely connected, approaches; Networking and information sharing is vital; ICT is just a tool, and it is important to focus on getting ICT used; and Policy is important, and should focus on a practical and peopleoriented approach.

There is no single ESI that successfully addresses all the barriers to entrepreneurship. Most initiatives are successful in one particular area, or have developed a creative approach to a particular need. But in the absence of any single organisation with a stand-alone solution for everything, it would be useful to consider how their individual strengths could be combined to form an interconnected platform for success. This is a way to build on the positive framework of what already exists and create a web of people and resources that effectively contributes to the growth of entrepreneurship in the developing world.
ANNE X 1 : E X A M P L E E VA L U AT I O N R E P O R T: THE GRAMEEN BANK

The following example of independent evaluation of ESIs of the Grameen Bank illustrates how the evaluation template can work. Unlike what would be expected in a normal evaluation, we have not consulted with anyone from the Grameen Bank, nor has the Bank had a chance to review this evaluation to check its accuracy. We chose the Grameen Bank for this example because it is a very successful ESI, considered a model for initiatives everywhere, and can certainly stand up to any scrutiny. What works and why: The Grameen Bank Bridges.org, 29 May 2002

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Name of initiative: The Grameen Bank, a member of the Grameen Family of Organisations Type: Seed funding programme expanded to other SMME supportnational level Mission: Provide credit for the poorest of the poor in rural Bangladesh to start businesses and work to improve their socio-economic conditions. Geographic focus: Bangladesh Contact information: Grameen Bank Bhaban, Mirpur, Section-2, Dhaka-1216, Bangladesh Email: grameen.bank@grameen.net, Tel: + 88 (0) 2 900 5257 68 URL: http://www.grameen-info.org/index.html Started when and how: The Grameen Family of Organisations is an outgrowth of the Grameen Bank, which was founded in 1976 by Professor Muhammad Yunus. In addition to the Bank, there are now twelve nonprofit and for profit associated organisations. Size: The Bank operates fifteen zonal offices, under which are a total of 122 area offices, each supervising eight to ten branch offices. Director and organisational structure: Professor Muhammad Yunus is the Managing Director. A Board of Directors oversees the Grameen Family of Organisations. Annual budget and main funders: The first external funding came from the International Fund for Agricultural Development (IFAD). Since then Grameen has received loans and grants from NORAD (Norwegian aid agency), SIDA (Swedish aid agency), KFW and GTZ (German aid agencies), CIDA (Canadian aid agency), OECF (Japanese aid agency), IFAD (UN Development Finance Agency), the Ford Foundation, and the Dutch Government. In l995, Grameen finally made enough profit to operate on a fully commercial basis without the need for any preferential loans or grants. Example projects: Grameen Shamogree (Rural Products): works to develop and market rural industries; Grameen Krishi Foundation: works with farmers in northern Bangladesh and Tangail District; Grameen Motsho (Fisher-

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ies) Foundation: improves access of the poor to fisheries resources; Grameen Communications (GC): aims to increase awareness and promote the use of Internet Summary critique: The Grameen Bank is a model for ESIs because of its relevance, simplicity, and success. It is a perfect example of a well-executed idea that started by trying to meet a specific local need: providing credit for the poorest of the poor who otherwise had no access to funding. The Bank has since expanded into several other areas of business development, also successfully, and become a model for other initiatives all over the world. If we are to hold Grameen to the standard of ultimate success, however, it should be noted that the Bank is missing opportunities to increase sustainability by not emphasising training and education - Grameen does not have a specific initiative devoted to business skills development and education. The Bank has the opportunity to use its village banking services to become centres of business skills development, including ICT training. While this is not a part of Grameens mission, it is a missed opportunity to create true sustainability.

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METRIC Setting concrete goals and achieving them

SCORE 1

EVALUATION The Bank has a clear mission to provide microcredit, and is able to easily quantify achievements. It has lent over US$1 billion to over two million borrowers, has 2,384,377 members and 1171 branches in 40,428 villages. The Grameen Trust was set up specifically to help others replicate the Grameen model of microcredit. Grameen encourages the study and replication of its model. Grameen conducts its own studies, and has encouraged extensive study by other organisations. It has a specific monitoring and evaluation department. Grameens microcredit loans are directly responsible for creating thousands of new businesses. Grameen does provide seed funding and business start up assistance, but does not emphasise ICT or business skills training. While informal and small-scale lending arrangements have long existed in many parts of the world, Grameen has very successfully translated this idea into a modern and large scale approach. As Grameen does not focus on imparting a business skill set, it is not clear that the businesses will thrive, or if the entrepreneurs are empowered to start other businesses. Grameen does not have an overall strong green theme, but does have a renewable energy project, and the agriculture and fisheries projects work to create renewable resources. Women now make up 95% of Grameens borrowers, and studies have shown that women borrowers have raised their status, lessened their dependency on their husbands and improved their homes and the nutritional standards of their children. Grameen affects the economy through economic elevation of the poor through seed funding and appropriate training, but also by building infrastructure and contributing to the development of local industries. The average household income of Grameen Bank members is about 50% higher than the target group in the control village, and 25% higher than the target group non-Bank members. India has a strong existing culture of entrepreneurship, which Grameen strengthens by helping marginalised groups to participate in it. Grameen does not have a policy focus. Though the Bank was originally started with external funding, it now operates on a fully commercial basis. The Bank has 68 Information Management Centres, each providing computer access for three branches. Ten of fifteen zonal offices have Internet access. The Grameen Family has two ICT related initiatives, Grameen Telcom and Grameen Cybernet which work to bring ICT to the people of Bangladesh. The Bank does not provide ICT training. In addition to seed funding, Grameen has developed other services that help accelerate the progress of the poor toward economic betterment, including technical assistance, rural industry development, and supplying renewable energy systems. Grameens rapid and continued success speaks to the clients satisfaction. Many of Grameens borrowers take out a second loan after the first has been paid back, expanding houses or businesses.

Implementing and disseminating best practices Evaluating efforts and reporting back to clients and supporters Creating new businesses Building local capacity imparting a skill set Facilitating truly original ideas

1 3

Building businesses that stand the test of time Fostering environmentally sustainable businesses Focus on marginalised groups

Positively affecting the local economy and society

Fostering catalytic change

Addressing policy Implementing a cost-effective approach Integrating technology

5 1 3

Offering services that are relevant and useful at ground level

Satisfying clients

ACKNOWLEDGEMENT

We would like to thank the people that provided insight and advice on this report, including those at Accenture, Acumen Fund, Development Space, E-Learning Associates, Geekcorps, Hewlett-Packard, Technoserve, World Corps, World Resources Institute, and the Youth Employment Summit. We would also like to thank Hewlett-Packard for supporting this work.
Reprinted by permission of Bridges.org, (2003). Copyright (2003) by the Bridges.org.

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SECTION VI

ASSESSMENTS

ICT Development Indices

Prepared by the United Nations Conference on Trade and Development

SYNOPSIS

This report seeks to analyse and evaluate Information and Communication Technology (ICT) development using indicators of ICT diffusion across countries. It develops a conceptual framework and selects key indicators measuring development in ICTs, with a specific focus on ICTs as pervasive technologies of global impact, wide application and growing potential. This study benchmarks levels of ICT development, in existing infrastructure connectivity, as well as measures of future potential and important determinants affecting countries abilities to absorb, adopt and make use of these new technologies. The challenges in such a benchmarking exercise are manifold, in the selection of a representative set of indicators measuring the complex concept of technology development; in the trade-off of breadth versus depth in the nature and number of these indicators; and in the integration of the results of benchmarking into policy analysis. And yet, used wisely and with caution, benchmarking can provide useful information and meaningful analysis for policy purposes. Such a cross-country analysis permits comparison between countries and monitoring of progress over time. Comparison with better-performing countries helps identify policies for further improvement and progression. Although benchmarking cannot investigate causation, it nevertheless allows more straightforward identification based on evidence of success stories for closer investigation for policy conclusions. Approached with thought, benchmarking is a useful input to policy analysis in allowing

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more informed and insightful study into policy and ultimately, in promoting better, faster and more effective ICT development. In conjunction with CSTD, UNCTAD reviewed and evaluated existing work to measure ICT development from different sources, including academia, the private sector and international organizations (UNDP, UNIDO, OECD and the ITU). On the basis of this work, UNCTAD constructed a theoretical framework to approach ICT measurement, comprising indicators for connectivity, access, usage and policy. UNCTAD benchmarked and analysed the diffusion of ICT capabilities across 160-200 countries for 1995-2002. This cross-country study compiles data and calculates ICT Development Indices for: connectivity (physical infrastructure for ICTs, in penetration rates of Internet hosts, PCs, telephone mainlines, mobile phones per capita); wider access to ICTs (literacy, GDP per capita and cost of local calls, as well as actual number of Internet users); usage of ICTs (incoming and outgoing telecoms traffic, as an alternative to Internet data traffic flows in the absence of publicly available statistics on these); and policy environment (a wider policy framework conducive to the adoption and absorption of ICTs, which can be evaluated in terms of the presence of a domestic Internet exchange, as well as competition in the local loop, domestic long distance and ISP markets). This study analysed country and regional rankings based on these index measurements, and reviewed results over time to identify interesting trends. It further sought to evaluate the extent and evolution of the digital divide, using basic measures of hardware equipment and numbers of Internet users in each country, to determine whether and in what way the digital divide is evolving. Classification of countries as falling behind, keeping up and getting ahead on the basis of country rankings show stable rankings over time, with strong regional influences. As a generalisation, African and South Asian countries were classified as falling behind, Latin American and transition economies as keeping up and OECD countries and S.E.Asian Tigers as getting ahead. However, this masks considerable diversity in individual country experience, with Arab and island states as notable successes having good connectivity despite less competitive policy measures. Strong positive correlations are observed between connectivity and access and, to a lesser extent, connectivity and competitive telecoms policy. Country rankings are

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stable and consistent over time, and in line with expectations based on income. Such stability is consistent with long-term time horizons required for telecommunications investment. It also implies that these Indices are based on indicators measuring central ICT development. UNCTAD further analysed and measured the international digital divide in inequality in distributions of hardware equipment and Internet users across countries, using Gini measures of inequality. Trends in connectivity over time suggest that, despite stable country rankings, there is reducing inequality and potential convergence in the distributions of hardware across countries, yielding the intriguing result of a diminishing digital divide. Gini analysis reveals some small change in inequality, with only small, incremental reductions from highly unequal levels. Our results show that more recent technologies such as the Internet (as measured by Internet hosts and Internet users) are more unevenly distributed relative to older technologies, such as fixed line telephony. Our findings demonstrate leapfrogging in mobile telephony (with lower levels of inequality, which reduce the fastest), suggesting greater potential for mobiles as more equally distributed technologies in bridging the digital divide. However, Gini coefficients as relative measures across the whole distribution do not identify the origins of reducing inequality. UNCTAD therefore analysed relative movements in rankings to identify how countries and regions are faring in basic connectivity, to see which countries are contributing to reducing inequality, increasing inequality, or preserving the status quo. Based on a regional analysis of relative rankings, we find evidence that OECD countries are becoming more tightly bunched in the upper tail of the distribution. Sub-Saharan African countries continue to occupy the lower tail of the distribution. The incremental reductions in Gini coefficient likely derive from the middle of the distribution of hardware equipment across countries. China in particular has a steady and substantial rise in relative rankings that influences the Gini coefficient strongly, since China is host to one fifth of the worlds population. Taken together, it is envisaged that these relative measures of the digital divide and the insights derived from benchmarking, provide a more detailed picture of the evolution of countries ICT development. Overall, these reductions represent only small, incremental reductions in inequality from the initial high levels of inequality. There is still considerable

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work to be done in bringing the large majority of the worlds population within reach of modern communications. And yet, the benefits of extending ICTs to the worlds rural and poorer populations may be enormous. For then, truly, their voices may be heard.
1. INTRODUCTION

This report seeks to analyse and evaluate Information and Communication Technology (ICT) development using indicators of ICT diffusion across countries. It develops a conceptual framework and selects key indicators measuring development in ICTs, with a specific focus on ICTs as pervasive technologies of global impact, wide application and growing potential. This study benchmarks levels of ICT development, in extant infrastructure connectivity, as well as measures of future potential and important determinants affecting countries abilities to absorb, adopt and make use of these new technologies. In keeping with their complex nature and multiple applications, Information and Communication Technologies (ICTs) may be viewed in different ways. The World Bank defines ICTs as the set of activities which facilitate by electronic means the processing, transmission and display of information (Rodriguez & Wilson, 2000). ICTs refer to technologies people use to share, distribute, gather information and to communicate, through computers and computer networks (ESCAP, 2001). ICTs are a complex and varied set of goods, applications and services used for producing, distributing, processing, transforming information[including] telecoms, TV and radio broadcasting, hardware and software, computer services and electronic media (Marcelle, 2000). ICTs represent a cluster of associated technologies defined by their functional usage in information access and communication, of which one embodiment is the Internet. Hargittai (1999) defines the Internet technically and functionally: The Internet is a worldwide network of computers, but sociologically it is also important to consider it as a network of people using computers that make vast amounts of information available. Given the two [basic] services of the systemcommunication and information retrievalthe multitude of services allowed is unprecedented. ICTs, represented by the Internet, deliver at once a worldwide broadcasting capability, a mechanism for information dissemination, a medium for interaction between individuals and a marketplace for goods and services [Kiiski & Pohjola (2001)].
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ICTs have been in use for some time, for example, in voice communications technology. However, recent advances such as the Internet are breaking new ground (and introducing new divisions) in the achievements and potential they offer. Cukier (1998) notes that definition of the Internet is very relevant to the peering debate [about the exchange of data traffic and interconnection agreements] as well as whether regulators [have] a role to play in Net matters. He points out that the voice telecoms network is founded upon the principle of universal connectivity The Internet, however, lacks a specific definition and it is uncertain whether the telephony model applies to it. In this view, [spread of ] the Internet has unique important characteristics differentiating it from older technologies, such as telephony. This view has important implications for countries policy approaches and the way in which they seek to encourage, monitor and regulate ICT adoption, interconnection and, ultimately, access. It may be easier to define what ICTs are not: ICTs are not a panacea for development or replacement for real world processes. If real world processes are flawed, deficient or absent, ICTs cannot make good these flaws or make up for these deficiencies. If a government process is bureaucratic, convoluted and subject to delays, moving it online may not make it any more efficient; and instant transmission may not necessarily make it any faster. If controls over financial systems are inadequate or missing, making systems electronic will not make them effective; and may in fact make it more difficult to trace the audit trail. This emphasizes the importance of having well-thought out, well-established, clear real world processes, before moving them online. In this view, ICTs can be an effective AND, rather than a substitute OR. ICTs may, however, reshape, re-organize and fundamentally restructure working methods, and ultimately, the sectors in which they are used. ICTs offer generic advantages of: efficiency and productivity gains; informationsharing, storage, and communication; faster knowledge-accumulation, dissemination and application; in support of the specific purposes for which they are used. ICTs also permit new, collaborative work methods, with their potential for networking. Communication and interaction between previously isolated agents pool their individually isolated resources, knowledge and experience to build a common knowledge base that all members can draw upon. ICTs can transform work and research methods by enabling group interactions based on central reserves of shared knowledge. The evi-

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dence suggests that we still stand at the threshold of what ICTs may achieve, and that collaborative networking methods will evolve further, as people learn to communicate, interact and work in new ways. This makes ICTs a very exciting AND, and one that may change the equation altogether. Despite the undoubted benefits offered by ICTs, substantial barriers to the effective use of ICTs also exist, in both developed and developing countries. These barriers must be addressed to allow realisation of ICTs full potential. Some barriers may be endemic (e.g. the generation gap, learning processes, and gaining experience in ICTs). Developing countries face additional barriers to effective ICT usage. In the E-Commerce Report (2001), UNCTAD notes that in developing countries, [government agencies] will have to deal with problems of telecoms infrastructure, poor computer and general literacy, lack of awareness of the Internet and regulatory inadequacy, that also hinder other applications of the Internet there. (These obstacles are not uncommon in developed countries, with the European Union seeking to address some of these challenges). Technological gaps and uneven diffusion in technology are not newolder innovations such as telephony and electricity are still far from evenly diffusedbut what may be unprecendented is the potential size of the opportunity costs and benefits foregone by failure to participate in the new digital society. Growth in the use of ICTs is highly uneven. There are significant disparities in access to and use of ICTs in developing countries, which risk being left behind in the digital revolution. Developing countries risk being left further behind in terms of income, equality, development, voice and presence on an increasingly digitalised world stage. They must look forward prospectively, and participate actively in building technological capabilities to suit their needs. Technology itself also has a role to play in this. Just as technologies create them, new innovations offer ways of bridging technological divides. Connectivity can build on existing infrastructure or bypass traditional means with technologies such as wireless. The availability of free software is transforming the IT industry. This report seeks to benchmark the extent of ICT development, as an important contribution and input to policy-making. Benchmarking is important in measuring outcomes (but not causation) from policies, and in monitoring progress in ICT connectivity and access. Benchmarking allows comparisons between countries and indicates how well countries are doing compared to others in terms of their adaptation, mastery and develop-

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ment in ICTs. A standard selection of indicators against which countries are measured allows comparisons and initial policy conclusions, between countries and over time. Comparison with better-performing countries helps identify policies for further improvement and progression. Although benchmarking cannot investigate causation, it nevertheless allows more straightforward identification based on evidence of success stories and laggards for closer investigation, as an essential input to policy analysis. ITU (2002) notes in its 2002 World Telecommunications Development Report that over the last few decades, virtually every country has succeeded in improving its telecommunications sector. Thus, every country can show that its particular blend of policies has been successful. It is only by making international comparisons that it is possible to show which policies have been more successful than others For this reason, an approach based on comparative rankings may be more meaningful than one that uses absolute growth rates. UNCTAD therefore uses a methodology based on relative rankings, rather than absolute scores. Indeed, with respect to ICTs, it is unclear what the reference points for absolute scores would be. In this paper, we adopt a comparative approach based on relative country rankings to identify countries that are making progress in ICT uptake, and those which are being left behind in the digital divide.
2. THEORETICAL FRAMEWORK & LITERATURE REVIEW

In conjunction with the United Nations Commission on Science and Technology for Development (UNCSTD), UNCTAD reviewed and evaluated existing work to measure ICTs from different sources, including academia, the private sector and international organizations (UNDP, UNIDO, OECD and the ITU). Our review of existing work carried out to date to evaluate countries ICT capabilities reveals a consistent underlying theoretical framework of indicators of connectivity, access, policy and usage across most studies, irrespective of the viewpoint from which they are written, as illustrated in Table 1 below. UNCTAD uses this theoretical framework, shown in Table 1, to approach the measurement of ICT development and adopts this framework in the formulation of the ICT Development Indices. This section provides a brief discussion of some of the main conceptual issues arising from a review of the literature on approaches towards the measurement of ICT development.

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Table 1: Theoretical Framework for Measuring ICT Development

Mosaic Group (1996) McConnell International (2001, 2000) Commercial E-Readiness Connectivity Infrastructure pricing Connectivity (30%) fixed & mobile, narrow band/ broadband Cost of access Availability Affordability Legal and Regulatory Envt (15%) Business Envt (20%) E-commerce (20%); consumer/business use; e-services (10%) Social/cultural infrastructure5% Education/literacy E-Readiness Networked Readiness Info Infrastructure Software & Hardware Availability Affordability Legal Environment: Telecom & Trade policy Content B2B education B2C Ecommerce; IT Sector ICT Training Commercial Sociological Harvard University ITU Defence IT capability Economist (EIU) (2001, 2000)

INDEX

UNCTAD (2002)

Mosaic Group (1998)

Perspective

Tech. Development

General IT

Telecoms Internet Access Hosts; servers; telephones; PCs.

Item measured

ICT diffusion

Global Diffusion of Internet

1. Connectivity (physical capacity; infrastructure) Pervasiveness Access

Internet hosts; Tel. Mainlines; PCs; Mobile subscribers.

Pervasiveness; Connectivity Infrastructure.

2. Access (wider determinants of access) Depth of Development E-Leadership; EBusiness Climate

Internet users; Literacy; Average revenue; call costs.

Pervasiveness Geographical dispersion

Users; subscribers.

3. Policy environment

Competition: Local loop, long distance; Internet exchange. Sophistication of usage Information Security

Organisational infrastructure

ISPs; Prices; Traffic

4. Usage

Telecom traffic: incoming; outgoing.

Sectoral Absorption Sophistication of use Proximity to Tech. Frontier Indigenisation Human Capital

Additional

Conceptual issues relating to ICT Indices

The theoretical model and selection of indicators determines the quality and predictive power of Indices. A good example of a comprehensive, well thought-out model embodying views on causation in Internet indices is the United Nations Industrial Development Organization (UNIDO)s Industrial Performance Scoreboard (2002). Conversely, the absence of, or deficiencies in, a model constrains and limits the scope of observations possible (e.g. Economic Intelligence Units E-Readiness indicators, which yield only limited policy insights, following the lack of a coherent theoretical framework). The selection of indicators has important consequences for the studys results and conlusions. The United Nations Development Progam (UNDP) used a broad selection of technological indicators in their Technological Achievement Index (2001). UNDPs index for agriculture and manufacturing technologies has the advantage of enabling UNDP to characterise developing countries by technological criteria relevant to developing countries industrial achievements. Inclusion of older innovations permits longitudinal comparisons over time back to 1970. In this study, we opt for a more narrow, focused subset of ICT indicators. This has the effect of restricting the time period (from 1995 onwards; following Hargittai (1999), who notes that usage of the Internet only really became widespread after 1993). It also has the effect of restricting our country sample, depending upon the indicator. For connectivity, 200 countries have been assessed. For more advanced data, notably on usage of ICTs, sample is restricted to mostly OECD and South Asian countries. Standardised data for several regions are not available, with individual case studies detailing usage for different countries. Selection of indicators also describes the breadth versus depth tradeoff. This trade-off describes how standardised data is not available in detail for a large number of countries. Press (1999) observes that in tracking diffusion of the Internet, one must choose a balance between breadth and depth. He concludes that with a complex concept as the Internet, an index may be more robust than a [single] indicator in measuring a qualitative concept (Press, 1999, p.5). From a practical perspective, if a wide sample coverage is sought, then basic, standardised indictors must be chosen for the index. For more detailed indicators such as usage and ICT take-up statistics, specialised data is only available for a smaller subset of countries.

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Furthermore, this type of data is most likely to come from country case studies, rather than the high level, standardised data we present here. In the trade-off between breadth versus depth, this study opts necessarily for breadth in pursuit of its cross-country benchmarking exercise. UNCTAD (1991) distinguishes between input, output and performance-related indicators for technology indicators as a whole. However, it is becoming increasingly unclear as to what extent this distinction still applies in respect of ICT indicators. Is a Personal Computer to be viewed as an input (e.g. as a necessary piece of equipment for dial-up Internet access), as an output (e.g. in regression analysis, which has sought to explain the diffusion of PCs, as in Caselli & Coleman, 2001), or as part of the phenomenon to be studied? The distinction between input and output indicators (e.g. UNDP, 2001) finds a parallel in similar distinctions between ex ante and ex post indicators (e.g. World Economic Forum, 2001), and determinants and performance indicators (e.g. UNIDO, 2002). It also partly relates to views of technologies, including ICTs, as sequential, in which one technology forms a basis or input to another in predefined steps. For example, UNDP (2001) justifies including telephones and electricity per capita as indicators in its Technological Achievement Index since they are needed to use newer technologies and are pervasive inputs to a multitude of activities. Alternatively, views of technologies may be synergistic, in which a cluster or spectrum of technologies is necessary as simultaneous inputs to an outcome technology e.g., electricity, laser technology, digital code, PC, modem for Internet access. The question of whether inputs into the process of technology development are considered sequential, as with UNDP (2001), or synergistic, as in the cluster approach of McConnell International (2001), determines the form of index adoptedSee Index Methodology in the next Section. Views of sequential and synergistic technologies also partly reflect views of causation. Indices are not capable of determining or quantifying causation, for which more sophisticated statistical techniques are required. These may be conceptually embodied in the theoretical framework, e.g. the UNIDO (2002) distinguishes between Determinants and indicators of Industrial Performance and investigates causation by methods including cluster analysis and regressions. Indices provide a ready means

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of measuring a standardised predetermined set of symptoms, rather than their wider causes. There is likely to be significant endogeneity within this model, which indices are not equipped to analyse. Furthermore, the indigenous nature of technology is a consideration for some studies. In Porter et al (1999)s original Capacity for Innovation Index, the highest scores in its qualitative variable were assigned to countries where companies obtain technology by pioneering their own new products and processes, whereas countries where companies obtain technology exclusively from foreign countries received less credit. This method values domestic innovation as more valuable than imported technology and diminishes the value of international technology transfer (TT), despite substantial evidence to the contrary, for the potential success of these channels (notably Asian NIEs, such as Korea). The World Economic Forum also distinguishes between domestic and foreign technology in its study of national competitiveness, on the basis that evidence suggests that without strong domestic technological activity, heavy dependence on foreign technologies leads to limited and shallow technology transfer (World Economic Forum, 2000). The Mosaic Group (1996) assesses indigenisation in its IT Capacity Framework, defined as the national origins and staffing of technology with indigenous personnel. However, subsequently the Mosaic Group (1998) assesses worldwide diffusion of technology in its Global Diffusion of the Internet framework as a stand-alone, independent package that countries can import and apply, and no longer considers the national origins of technology, R&D or human capital. The question as to what extent it is still relevant to talk of the national origins of a global technology such as the Internet, is intriguing. The Economist Intelligence Unit notes that the Internet is global, but local conditions matter (EIU, 2001). National and cultural influences are apparent in the readiness with which consumers adopt new technology and issues of MNC operations and FDI in technology transfer. There is an important role for the state in the development of policy and the telecoms and business environment. Governments can influence access to technology (connectivity, control over access, censorship). Important policies include telecoms policy and regulation, import policy, FDI, MNCs and technology transfer, political openness/censorship, e-governance, E-

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Leadership, education, research, stable macro-fundamentals and the legal environment. This academic question finds its practical correlation in the adoption of national economies as the basic unit of analysis (see the next section: ICT Development Indices).
3. I C T D E V E L O P M E N T IN D I C E S

The Index of ICT Diffusion is a simple arithmetic average of scores on quantitative variables (connectivity and access indices). Qualitative variables for policy indicators are also presented separately for 2001-2. The telecom usage index was also reviewed and analysed, but is not included, as it is unclear to what extent telecom traffic is representative of Internet use. These indicators represent a selective subset of the full set possible, with other indicators omitted owing to limited data availability or difficulties in their measurement. Table 2: Construction of the ICT Development Indices
Index/Dimension 1. Connectivity Indicators Internet hosts per capita Number of PCs per capita Telephone mainlines per capita Cellular subscribers per capita 2. Access Internet users per capita Literacy (% population) GDP per capita Cost of a local call 3. Policy (presented separately, as relates to 2001-2). Usage: Telecom Traffic (analysed separately,but not presented, as appears unrepresentative and not clear to what extent this reflects global diffusion of ICTs and Internet). Presence of Internet exchange Competition in local loop telecoms Competition in domestic longdistance Competition in ISP market International incoming telecom traffic (minutes per capita) International outgoing telecom traffic (minutes per capita) ITU UNSD World Bank ITU UNCTAD research ITU ITU ITU ITU Sources All data series from ITU deflated by UNSD population data and compared to World Bank data for accuracy check.

ITU

Appendix 1 presents the ICT Development Indices and Index of ICT Diffusion and country rankings for 2001, 2000 and 1999 for all countries with data available. Indices and rankings for 1998 and 1995 have also been calculated and are analysed in Appendices 3 and 4.

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3 . 1 I C T I N D I C AT O R S
1. Connectivity

Connectivity is narrowly defined as the physical infrastructure available to a country, as distinct from broader factors determining access (e.g. literacy, cost). Connectivity represents the basic limiting factor on access to, and use of, ICTswithout the essential physical hardware, ICT use is not possible. We defined the narrow connectivity as the minimum set of measures necessary for ICT access as comprising: Internet hosts per capita; PCs per capita; telephone mainlines per capita; and mobile subscribers per capita. This excludes supporting infrastructure (such as electrical supply and transport), affordability and broadband access, which may be currently more relevant to developed countries, but is expected to become increasingly important to all countries in the future. McConnell International note that a multitude of factors must be in place a weakness in any one can degrade a countrys ability to take advantage of the economic potential of the Internet. This view sees connectivity as a cluster of technologies with synergies, rather than precedence, between different types of physical infrastructure. This is in contrast to UNDPs sequential logic of old (telephony and electricity) as opposed to new innovations (hosts, PCs) and leapfrogging between stages with a sequential order. a. Internet hosts per capita Number of internet hosts has been taken as a measure of the Internet penetration of a country, and the degree of national connectivity. Network Wizards (NW) define a host as: A domain name that has an IP address (A) record associated with it. This would be any computer system connected to the Internet (via full or part-time, direct or dialup connections) ie. nw.com, www.nw.com. OECD (1998a) considers that host count is the most precise available data on the presence of Internet in a country. Cross-country regression work has mainly used this variable as the most representative variable of Internet diffusion e.g. Hargittai (1999), Kiiski & Pohjola (2001), Robinson & Crenshaw (2001). Increasing number of Internet hosts implies increased ability to handle, service and store large amounts of data. However, difficulties include:

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ambiguity/overlap in definition with Internet server functions Hosts may include name servers, mail servers and file servers; measurement methods and difficulties in allocating hosts to nations;

Hosts are assumed to be in the country shown by their country code (e.g. .nl for Netherlands). However, there is not necessarily any correlation between a hosts domain name and its location. A host with a .NL domain name could easily be located in the U.S. or any other country. Hosts under domains EDU/ORG/NET/COM/INT could be located anywhere. There is no way to determine where a host is without asking its administrator (Network Wizards). This is a major problem, giving anomalous results e.g. the top country for Internet host penetration at July 1999 was the Pacific island Niue (Minges, 2001). The Solomon Islands had no hosts according to the July 1999 Networks Wizards survey, but has been connected to the Internet since 1996. The U.S. ranks 44th in Internet penetration based on the .us code. Most hosts in US use .com, .net or domains other than .us (Minges, 2001). A single computer may host several domain names and a single domain name might be hosted by a group of computers (Minges, 2001). These figures have been adjusted for physical location of the hosts by ISC. Data are subject to revision and there are often discrepancies between surveys. In July 1999, OECD nations owned 93% hosts (Press, 1999). b. PCs per capita Telephone lines and personal computers are key components for Internet access before 3Generation and WAP mobile access become widely available, with significant implications for ICT adoption. Current access methods include dial-up access, using a telephone line, PC and modem. PCs therefore represent an upper limit for Internet access. Caselli & Coleman (2001) use number of computer imports as a measure of computer technology adoption. PC estimates are available for developed countries, but measurement may not be reliable. Most ITU data are estimates of PC stocks from sales or import data. This is inaccurate for developing countries, where shipment data are scarce and significant channels for PC imports are omitted (e.g., smuggling, grey market, local assembly). Increased PC penetration

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rates should increase ICT connectivity. This is purely a numerical count and gives no indication of the power or quality of PCs, usage made of them, or method (e.g. shared Internet access). c. Telephone mainlines per capita This is a relatively reliable, basic limiting factor of connectivity and representative of potential, if not actual, levels of dial-up access. ITU statistics include telephone subscribers plus the number of pay phones (data from telecom authorities or operators). Increased availability of telephone mainlines should increase connectivity, assuming dial-up access is available. However, this does not give an indication of the speed, reliability or cost of the connection, which are important considerations. It is important to be aware of the proxy variables that may be implicit in this measure. Telephone networks typically require large investments, so average national income and the public resources available play a large role in determining connectivity on a national basis. Population distribution, urban/rural dispersion and underlying geographical factors are important determinants of the extent of telephone networks e.g. Nepal and Cambodia have relatively limited mainline networks, while Turkeys is widely distributed. d. Mobile subscribers per capita This measure of mobile connectivity will become increasingly important in the future. Current methods of Internet access emphasise PC-based applications, with 3G and WAP less widely adopted. Inclusion of mobiles allows leapfrogging in e.g. Cambodia (ITU case study, 2002). However, ITU notes that the Cambodian government has neglected fixed lines, which are more important for Internet access at this time. Inclusion of both fixed and mobile telephones reflects forms of ICT access which are important both now and in the future.
2. Access

Jensen (2000) considers Internet connectivity from a more technical telecommunications perspective, noting that it requires more than simply installing phone cables the Internet is dependent on the telephone network ([comprising] cost of the line and cost of local and long-distance charges), availability and affordability of access equipment and pervasiveness of

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telematics (mix of hard/software with human/organisational skills and knowledge transfer). This introduces a broader definition of access and the factors determining use of ICTs, beyond narrow connectivity. a. Number of Internet users This is an ex post measure of the level of Internet usage achieved by a nation in realised access to the Internet. However, Nua surveys and Minges (2001) point out different survey methods and definitions of Internet users:
Inhabitants > awareness > ICT access > users > subscribers

Number of subscribers paying for Internet access is more precise than users and implies a certain degree of usage in terms of realised actual users. It is also more measurable, but may not reflect full usage as it omits free or shared access. For developing countries, subscribers may constitute elite consumers and fail to include common types of usage (e.g. shared access and cybercafes). Nua collects its data from national surveys that do not use consistent methodology, reducing their comparability. For consistency, we used ITU estimates of Internet users, weighted by population to yield Internet users per capita. ITU surveys were observed to be consistently lower than SangoNet surveys (Nua). However, to test how representative ITU surveys are, countries were scored and ranked according to Nua and ITU user estimates. Comparison of these rankings revealed relatively similar country profiles. b. Literacy In the absence of widely available voice protocols, text-based protocols remain the most widely used Internet applications. Language barriers and illiteracy have been identified as common obstacles to Internet access. Language has been modelled using dummy variables for English-speaking former colonies (Robinson & Crenshaw, 2001). However, the rapid growth of other languages on the Internet means that the importance of this obstacle to access is diminishing all the time. According to GlobalReach, 43% of online users and 68.4% Web content use English, down from 80% webpages in English in the late 1990s. Literacy remains a pervasive barrier to access, particularly for develop-

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ing countries. Basic literacy represents an important ex ante capability for Internet access, of which only a small subset may be realised as the proportion of Internet users. Depth measures of human capital, such as tertiary education, are considered less relevant for basic Internet access. We have therefore included basic literacy in our index. c. Cost of a local call Prices are an important measure and determinant of access, since people will not use the Internet if they cannot afford it. In Europe, the practice of per minute billing has been considered a major obstacle to Internet adoption (Center for Democracy & Technology, 2002). Some countries may have high Internet connectivity (e.g. high telephone and PC penetration) but relatively low user levels. The most heavily used Internet access method is dial-up (U.S. Internet Council, 2000), which entails the following main charges:
1. telephone charges (line rental/call charges to PTO); 2. Internet access charges (paid to the ISP).

Internet pricing comparisons are complex (depending upon method of access, time and frequency of usage), change rapidly and are often only available for developed countries. Given data constraints for developing countries, we adopted cost of a local call as the most representative indicator of cost of access. However, issues with telephone charges include:
local call charges: some telephone operators do not charge directly for local calls (includes operators in N. America and New Zealand)this has been considered an integral factor in and key to the expansion of ICTs in North America (Information Society, quoted in Center for Democracy and Technology, 2002); a. operators may include a proportion of free local calls in subscription charges; b. charges may be fixed regardless of call duration; c. local call charges may differ depending on the time of day, day of week, or whether the call is for Internet access; d. operators may provide discounted calls to user-specified numbers.

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e. Reduced cost of calls should facilitate the expansion of access to ICTs.

d. GDP per capita Income is another key determinant of access and peoples ability to afford hardware investment and ongoing call costs (that are often a significant proportion of the cost in accessing the Internet). $1 an hour charged by a cybercafe is unaffordable for people whose average income is $2 per day. Average national income is also a proxy variable for a countrys level of development, often implicitly related to a countrys level of investment and thus its connectivity and infrastructure. Kedzie (1997) notes that economic development is a leading candidate for a compounding factor that affects both democracy and electronic communication networks simultaneously. However, in his study of democracy and interconnectivity based on simultaneous equations analysis growth in Internet nodes, statistical test results do not support economic development as a confounding third variable neither democracy nor GDP proves to influence interconnectivity strongly.
3. Policy Index

The Policy Index relates to 2001-2, as this data is current and ITU gives realtime data. Retrospective comparison is made with the other indices for 1995-2000. However, the stability of the rankings emerging (see section 4: Discussion of Results) give us confidence that these are valid comparisons to make. a. Presence of Internet Exchanges Abramson (2000) defines Internet exchange (IX) pointsalso called network access points (NAPs) or metropolitan area exchanges (MAEs)as physical installations created by third parties to facilitate traffic exchange between ISPs. Telegeography defines IX as services created to facilitate on-site interconnections between independent or third-party Internet networks. This definition can be ambiguous: ITU considers Egypt has access to the functions of an IX (ITU, 2001) but Egypt is not listed as having an IX (Telegeography). Internet exchanges are important to permit domestic exchange of within-country traffic, without using valuable international bandwidth.

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Abramson (2000) notes that IX provide focal points for local traffic exchange, enhancing local Internet infrastructure and reducing dependence on international links. Establishing an Internet exchange is an important policy decision in the allocation of resources for developing countries, keeping domestic Internet traffic within the country and saving international bandwidth for other uses. For the majority of developing countries, Internet exchanges are nationally based i.e. one per country (e.g. Kenya IX, Indonesia IX). Some countries have multiple exchanges serving major urban centres [Capetown IX (CINX), Johannesburg IX (JINX)]. In U.S., IX operate primarily at the State level or serve major urban centres (MAE may be an appropriate name). Our policy variable is a dichotomous variable (1 for an IX, 0 for its absence) since, for the majority of developing countries, presence of an IX is a major step. The additional benefits arising from further exchanges at the urban level may be considered marginal. The establishment of an IX may also be indicative of a proactive ICT policy outlook. b. & c. Competition in the local loop/domestic long distance Competition in a countrys telecoms sector is an important policy choice. Current thinking holds that monopolies may hinder rapid development and advocates liberalisation of the telecoms sector in promoting competition, lowering prices and expanding access. OECD (2001) concludes countries that moved early to liberalise telecoms have much lower telecoms costs and a wider diffusion of ICTs than countries that were late to take action (p.9). They recommend that countries facilitate the diffusion of ICT, by increasing competition in telecoms and technology (p.22) [with] policies to unbundle the local loop and improve interconnection frameworks (p.24). The structure and policy developments in the telecoms market affect the diffusion and absorption of ICTs within a country. Gorman & Malecki (2000) observe that regulation and lack of telecommunication competition make it more expensive to operate through Asian and European providers (Bond, 1997; Cukier, 1998). The high cost of infrastructure and connections in Europe makes a circuit from Washington DC to Paris, London or Stockholm cost less than direct lines (Paltridge, 1999). Although prices are dropping as competition increases, leasing capacity on many intra-European leased lines remains more expensive than trans-Atlantic routes (Paltridge, 1999).

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However, evidence from the cross-country regression studies is conflicting. Kiiski & Pohjola (2001) found that Internet access cost best explained growth in computer hosts per capita. However, competition (lack of monopoly) in telecoms markets proved insignificant. This is in sharp contrast with Hargittai (1999), who found that monopoly in the telecoms sector had a considerable negative impact on Internet connectivity in OECD countries (but not via reduced prices in access costs, which proved statistically insignificant). Competition in the local loop describes a countrys telecoms market structure and government policy towards telecoms, irrespective of whether competition actually results in reduced prices. Based on data from ITU T-Reg Unit, our index scores competition in the local loop as 1, partial competition 0.5, duopoly 0.25 and monopoly 0. It is important to be aware of the implicit value judgments inherent in this scoring system. The monopoly score of 0 does not recognise the potentially beneficial effects conferred by a benign monopoly. SingTel is widely recognised to have been an efficient, proactive incumbent in Singapores telecoms sector, with important benefits for the adoption of ICTs in Singapore (ITU, 2001). This contrasts with Nepal Telecommunications Company in Nepal, which was not customer-orientated in pricing, bandwidth or service (ITU, 2000). In future work, the blunt monopoly/ competition distinction could be replaced by country analysis of actual effects in practice. d. Competition in the ISP market ITU defines web servers as installations that provide end-user access to the Internet, disseminate information and sell products and services (Minges, 2001). However, Cukier (1998) identifies four different types of ISP (backbone, downstream, webhosting and online service providers). Competition in a countrys ISP market is important for the domestic diffusion of ICTs. Competition in Internet service provision may reduce prices and installation time, improve quality and availability of different services and customer care, thereby enhancing access. The importance of a vibrant ISP market is illustrated by Indonesia and Egypt, each with in excess of 60 ISPs, as opposed to Cambodia and Vietnam, where a limited number of ISPs and higher market concentration arguably result in higher prices and reduced customer service (ITU case studies). Number of ISPs in a country has been used as an indicator of mar-

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ket liberalisation. However, there are at least four different types of ISP [Cukier (1998)], markets may be fast-changing and there may be no legal requirement for ISPs to register. It is also necessary to distinguish between licensed ISPs and operational ISPs. This makes ISP counts inaccurate in large, liberalised markets. Number of ISPs has not been used in our index. We used ITUs T-Reg unit data to define this variable as a simple dichotomous variable (competitive scored as 1, monopoly as 0), rather than the continuous number of ISPs.
4. Usage: Telecom Traffic (omitted from the Index of ICT Diffusion)

We investigated Internet traffic data. However, this data is commercially sensitive for Internet Service Providers (ISPs), who did not respond positively to our data requests. This is consistent with OECD (1998), who note an absence of data on Internet traffic flows between countries. Abramson (2000) notes meaningful Internet traffic statistics do not yet exist, despite widespread use of telephone traffic data. Minges (2001) notes that Internet traffic data are scarce. Where available, they are compiled by telecom operators, ISPs, and some government agencies. Internet average daily usage in minutes reveal wide variations in average usage times across countries. We investigated existing data on telecom traffic as an indicator of usage. Telephone technologies form part of the ICT technological cluster. They are however mature technologies with established uses and may not be representative of usage patterns for more recent Internet technologies. Our telecom index is calculated as the average of incoming/outgoing telecoms traffic (minutes per capita population):
Telecom traffic index = (incoming traffic + outgoing traffic)/2

The results from our telecom index reveal the interesting phenomenon of offshore islands. There is a small, but important, sub-category of island states (such as Cayman Islands, Bahamas, Bermuda) specialised in service industries such as offshore banking/financial services, which require and are highly intensive in the use of ICTs. Renata Lebre La Rovere (1996) points out in her excellent review of Brazilian banking that a banks production process is particularly suited to benefit from IT diffusion, since

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it is organised around the storage and transfer of information. Banking particularly lends itself to automation and computerisation due to the high volume of repeat transactions involved. These economies have high PC and telephone penetration rates. However, their importance is apparent in the telecom usage statistics, where they have highest average incoming/ outgoing telephone traffic. Please see discussion of results. The extent to which this usage phenomenon is representative of Internet data traffic flows is questionable. Comparison of country rankings in telecom traffic with total Internet users (regardless of type of usage) reveals little similarity in country rankings. We have therefore kept this index separate and not included it in the Index of ICT Diffusion. However, current telecom traffic may demonstrate future patterns of usage of ICTs as these more recent technologies mature.
3.2. INDEX METHODOLOGY

Edgeworth (1925) defines an index number as a number [that] shows by its variations the changes in a magnitude which is not susceptible either [to] accurate measurement itself or [to] direct valuation in practice. Press (1999) observes that in tracking diffusion of the Internet, one must choose a balance between breadth and depth and concludes that an index may be more robust than a [single] indicator in measuring a qualitative concept (Press, 1999, p.5). The Mosaic Group suggests that individual technologies need to be evaluated, since countries seldom exhibit uniform capabilities across the broad spectrum of ICTs. Measures of breadth and depth are needed; a dilemma which the Mosaic Group resolves by the use of Kiriat or wheel and spoke diagrams [Kiriat, 1973] to reflect technology as a multi-faceted concept. UNCTAD has reflected this balance between breadth and depth through use of an aggregate index with component sub-indices. However, there are dangers inherent in the use of a disaggregated index. The Mosaic Group observes in their Framework Analysis paper (1997) that while it is tempting to derive a single index to reflect a countrys IT capability, such an approach is unlikely to provide the depth of understanding needed for policy decision-making. Press (1997) explicitly warns against the dangers of averaging, or reducing a [multi-faceted] capability diagram down to a single number (i.e. area), since capability diagrams

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with the same total area may have very different shapes i.e. countries exhibit different profiles across the spectrum of ICT technological capabilities. Press (1999) notes further challenges for Internet indices: [they] should be orthogonal, each measuring an independent aspect of the state of the Internet in a nation, but it is difficult to define indices that are both comprehensive and uncorrelated. Simple averaging of indicators in an index implicitly assumes equal weighting of indicators and the possibility of offset of one indicator by another (i.e. connectivity is assumed equivalent to access and policy). GIT (2000) note that an additive model implies that strength on any one of these dimensions could compensate for weakness on another. The question of whether inputs into the process of technology development are considered sequential, as with UNDP (2001), or synergistic, as in the cluster approach of McConnell International (2001), determines the form of index adopted. A sequential concept of technological inputs implies an additive model in which factors with implied equivalence may offset each other. In other words, strength on one aspect can compensate for weakness on another (GIT 2000). This is also the perspective within which the idea of leapfrogging fits in. For instance, Cambodias lack of fixed mainlines may not matter, as its high mobile penetration rate is likely to offset this, implying leapfrogging by skipping a step in the sequence. Conversely, a synergistic view of a critical mass of associated technologies essential for a countrys advancement in technology implies a multiplicative model in which weakness in any one input may hinder and impede effective development on the basis of non-equivalent inputs. This is the view put forward by McConnell International (2001) in the context of the Internet, in stating that a multitude of factors must be in place to take full advantage of the economic potential of the Internet, and that the weakness in one area can seriously obstruct the realisation of potential benefits. GIT (2000) also subscribe to a synergistic view by highlighting that all four dimensions in their model, namely national orientation, socio-economic infrastructure, technological infrastructure and productive capacity, have to be strengthened in order for a nation to enhance its technology-based export competitiveness. Despite these two differing views and methodologies, indices have usually followed simple additive averaging models. We also opt for such a model

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for mainly two reasons. First, our review of existing work to date indicated that results calculated using both methodologies do not differ significantly from each other. Second, the additive model is more widely used due to its relative simplicity. In fact, determinants do not have the same or equivalent influence over IT capability. Connectivity is a limiting factor, while government policy may result in lower IT capability for a well-connected nation or different consequences for IT capability of equivalently connected nations following different policy paths (e.g. Pakistan/India: positive impact of early liberalisation of telecoms licenses for Internet growth in Pakistan, compared to slower growth under public monopoly, private monopoly and finally liberal privatisation in India). We have used the aggregated index approach, with component indices (similar to UNDPs HDI). Countries overall scores may be disaggregated into component indices of interest, permitting finer discernment between nations with different profiles across the spectrum of ICT capabilities. Attention should not focus on final index scores, but on scores across country profiles. Relative or Absolute Indices ITU (2002) notes in its 2002 World Telecommunications Development Report that over the last few decades, virtually every country has succeeded in improving its telecommunications sector. Thus, every country can show that its particular blend of policies has been successful. In absolute scores, therefore, nearly all countries will show increases in telecommunications connectivity. ITU concludes it is only by making international comparisons that it is possible to show which policies have been more successful than others For this reason, an approach based on comparative rankings may be more meaningful than one that uses absolute growth rates. ITU argues that relative growth rates are more insightful for policy analysis than absolute growth rates. UNCTAD therefore uses a methodology based on relative rankings, rather than absolute scores. Using relative rankings, countries index scores are calculated as a proportion of the maximum score achieved by any country in any one year (see next Section). This method has the advantage that reference points derive from real-world achievements realised by any country (listed in Appendix 5). However, it has the drawback that reference countries change year on year,

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reducing inter-year comparability. Only country rankings can be compared between years, consistent with the ITUs recommendations, rather than direct comparisons of countries scores (since the reference points are changing). In this paper, we adopt a comparative approach based on comparisons of relative country rankings between years to identify countries that are making progress in ICT uptake, and those which are being left behind in the digital divide. Evidence from other studies illustrates some issues that may arise using relative indices. GIT (2000) notes that relative indexing is a relative scaling so that an apparent decline over time or low score is only relative to other countries. GITs HTI are relative indicators. Hence, a decline on an indicator does not imply an actual drop, just that competing countries have advanced faster. Thus, Germany is considerably closer to other leading nations than to the U.S. and Japan this distancing is not due to any decline in Germany, but rather to the remarkable gains by the U.S. (GIT 2000). UNIDO (2002) also notes that: movements in rankings are relative, not absolute. Many [countries] like Kenya are not particularly technology-intensive exportersthey move up the scale because their exports are more complex than their other measures relative to other countries in their vicinity. These observations support the idea that in general, it is more meaningful to talk about countries rankings, rather than a countrys index score. Countries tend to group or bunch together (particularly around the centre of the index distribution), where a score interval of 0.1 may be equivalent to several places in the rankings. Conversely, countries that stand out in the lead or fall behind in the tails of the distribution may have relatively large gaps between country scores, such that a significant improvement in index score is necessary to catch up leaders, or for those behind to catch other countries up. In general, it will thus be more meaningful to talk about countries rankings, rather than their absolute index scores. Reference Points The question of approach in using relative versus absolute indices is closely connected to the issue of reference points. Indices with absolute scores are calculated as a proportion of fixed reference points. This has the advantage

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of permitting direct year on year comparability of scores (although, for the reasons cited above, the significance of a countrys score depends upon its place in the index distribution), but it is unclear what these reference points should be for ICT achievements. With some indicators, maximum achievements are relatively straightforward: for example, 100% literacy rate, 100% Internet user rate. For other indicators, maximum achievements are less obvious. Mobile penetration may reach over 100% (e.g. for subscribers with more than one phone, or two SIM cards per phone). There are no established a priori ceiling limits for Internet host penetration. The problem of an outlying star performer is also illustrated in GITs work, where the country with the maximum reference value forges ahead. The U.S. increased [its electronics production] by $71B from 1996 to 1999. The U.S. position is so strong that even Chinas remarkable doubling of electronics production from $33B to $65B increases its score only from 12 to 19 (out of 100). This is partly apparent from Appendix 5, where the maximum reference values for ICT parameters are increasing at very rapid rates. The use of fixed reference values, as happened with UNDPs HDI could resolve this problem. However, with fast-changing ICT indicators, it is not evident what these fixed reference values should be (compared to life expectancy/literacy, where well-established upper ceiling values exist). Indicator Scores Methodology Scores are derived as an index relative to the maximum and minimum achieved in any indicator by countries: Index score = (ValueMinimum)/(MaximumMinimum) Since the minimum value achieved is zero110 for most indicators, scores amount to a percentage of maximum values:
Index score: = (Value0)/(Maximum0) = Value / Maximum
110. Irving Fisher (1922)s statistically desirable property of reversibility (i.e. that the index calculated forwards and the index calculated backwards should be reciprocals of each other) is not fulfilled due to use of arithmetic averages in the indices. Use of zero minimum values means that this reversible property yields mathematically undefined answers (reciprocals of zero). However, this does not have any significant consequences for this index.

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Maximum reference values are given in Appendix 5 for connectivity. Indicators for which minimum values were not zero were telecoms traffic and telephone mainlines. However, these scores were calculated as a percentage of maximum values for consistency. Appendix 1 presents the Index of ICT Diffusion calculated on the basis of the Connectivity and Access Indices for 2001, 2000 and 1999. On the basis of these rankings, countries are classified as falling behind (FB), keeping up (KU) and getting ahead (GA) corresponding to first, second and last thirds in rankings. To analyse trends in movements between 19952001, segmental analysis was carried out. Appendices 3 and 4 present the results for 2001, dividing countries into these categories on the basis of rankings for study of trends over time. This permits categorical analysis of results, by income level, region or culture. It also allows analysis of the scatter of observations, with frequency given in brackets after the title. Additive Model and Averaging There is no a priori logic for weighting indicators in their aggregation into the index. Simple averaging of indicators in an index implicitly assumes equal weighting of indicators and the possibility of offset of one indicator by another (i.e. mobiles are assumed to have equal importance to telephones, PCs and Internet hosts; connectivity is assumed equivalent to access and policy). GIT (2000) note that an additive model implies that strength on any one of these dimensions could compensate for weakness on another. This is consistent with a sequential view of ICTs, rather than a synergistic one (where any weakness in the cluster reduces overall technological capabilities i.e. a multiplicative model as discussed previously). Furthermore, use of simple averages across scores results in averaging effects. GIT (2000) recognises that a given indicator combines several scores, so typically no country will score 100 on the resulting indicators. In general, distributions are averaged into the centre of the scoring range. Averaging effects are noted by UNIDO (2002), which recognises the possibility of offset at least for some countries [where] use of two benchmarks together biases the results against them in that their average capabilities appear lower.

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Time Period Hargittai (1999) notes that the World Wide Web was invented only in 1990 and web browser in 1993, [which] significantly accelerated [the Internets] spread both in U.S. and internationally. Significant Internet diffusion is observed worldwide only in the past few years. We therefore compiled indicators and calculated indices for 1995, 1998, 1999, 2000 and 2001. Appendix 1 presents ICT Development Indices for 2001, 2000 and 1999. The Policy Index relates to 2001-2, since ITUs data is constantly updated. This makes comparisons with the Policy Index retrospective. Unit of analysis Our units of analysis are nation states, countries or territories defined by national boundaries. Technological hubs, or centres of excellence with extensive hinterlands [Telegeography survey, quoted in UNDPs HDR (2001)] are aggregated into national level statistics and it is important to be aware of the significant averaging effect this has on our results. Adoption of nations and territories as our unit of analysis gives added pre-eminence to Singapore, as both a nation state and a large city (ITU, 2000), compared to e.g. a lower ranking for India, comprising Bangalore as a technological hub. Were New York or Bangalore to be separated out from their hinterlands, very different results would emerge. New York has more Internet hosts available to it than the whole of Sub-Saharan Africa which means that a city ranking, or ranking of nations by cities, would yield different results. Telegeography (2001)s survey gives some indication of what a ranking by cities looks like. Bridges.org observes that international digital divides have been assessed by comparisons of connectivity hardware between countries (PCs, hosts, servers, telephones), whereas domestic digital divides are assessed by measures of access by different groups (ethnicity, gender, age, income). The concept of disparities in access to ICTs is the same in both cases, but the level of analysis determines the choice of variables and method. The Mosaic Group (1996) measured the indigenisation of IT capability, or involvement by nationals in installation, use, operation, maintenance, management and adaptation of technology performed by indigenous personnel [Mosaic 1996]. The Mosaic Group (1998)s later theoretical

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framework assesses absorption of ICT technologies as independent, standalone technologies. National origin of technology is not considered. Analysis of technology along national lines measures national differences in the adoption and absorption of IT. However, whether such differences are national or cultural may be indeterminate (boundaries of nation states and culture may coincide, but this is not always the case). Expatriate communities are often important in promoting technological adoption in their homelands (e.g. communication needs of overseas Vietnamese; the accumulated human capital of Indian software specialists in US). National Size Effects GIT (2000) note that Porter et al (1999)s Innovation Index is normalised (per capita measures), whereas [GITs] is not (most of the statistical components reflect national totals). HTI address national technological competitiveness without particular concern for an economys size. However, they do not explore the consequences of this for their results. In fact, this may introduce bias into results. UNIDO (2002) notes that the use of a population deflator works against large countries, but remains a good way to adjust for country size. This may be particularly true for infrastructure, where a certain minimum threshold infrastructure in the network may be required, irrespective of the size of country. Further expansion of the network may benefit from economies of scale in larger countries, resulting in proportionately reduced levels of infrastructure per capita. Country size is intimately related to population dispersion and geographical dispersion of the network. It is unlikely that we will be able to correct for these effects; however, it is important to remain aware of their existence and the fact that averaging measures across per capita population may implicitly work against larger countries, lowering their relative rankings. Data Omission Effects The treatment of data omissions is central in determining the results of an index. In calculating the indices, final scores must be adjusted for the number of data observations and weighted, to eliminate the impact of data omissions. Failure to do so effectively dilutes the final index score by the number of omissions. However, data omissions are more likely for poorer countries. This poses a problem for our results, the extent of which

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is unclear. For some indicators (e.g. telephone mainlines and mobiles, in the Connectivity Index), 201 countries have been covered to a reasonable extent. However, some indicators (e.g. local call costs, in the Access Index) have more limited data availability which varies from year to year. Rodriguez & Wilson (2000) note that their results almost surely err on the side of optimism, as countries with poor or no available data are most likely to be the same countries that are being left behind by the information revolution. This caution also applies to our study. The omission of primarily poorer countries with low data availability means that absent or negligible observations are omitted. Our sample essentially comprises those countries with a degree of connectivity infrastructure in the first instance. This introduces bias from sample truncation into our findings, but it is difficult to establish the extent of this bias, or how to correct it.
4 . D I S C U S S I O N O F R E S U LT S

Results in this section are discussed by:

1. Income (UNDP codes of high-, middle- and low-income, others); 2. Regional groupings (UNDP codes of E. Europe and CIS, OECD, Arab states, E.Asia, S.Asia, Latin America & Caribbean, SubSaharan Africa, others); 3. Other regions, where geographical factors are important (e.g. island states). Comparisons are also made between: 4. Connectivity and Access Indices and their relation in Appendix 3; 5. Policy and Connectivity Indices to study the impact of policy in enhancing ultimate connectivity in Appendix 4; 6. Evolution of indices over time; with particular attention paid to 7. Evolution of connectivity indicators over time, as representative of the digital divide.

as important comparisons within the ICT Development Indices. Telecoms policy is expected to impact mainly upon user numbers and cost variables in the Access Index, and less so on other variables of literacy and income, so this comparison was not analysed in detail. Positive correlations between sub-indices in Appendix 2 are illustrated by overweight positive diagonals. Random scatters of observations would

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yield equal weightings across boxes. However, frequency of observations (given by the figures in brackets) illustrates a positive correlation in weightings. The high correlations in our results may suggest that we are measuring consistent indicators of central technological development. However, indices do not address the question of causation. These indicators may also represent proxy variables for key drivers underlying technological development (e.g. average income and/or level of development, levels of investment). Causation cannot be determined by correlations and it is proposed to investigate causation by regression work at a later date. a. Income UNDP codes were used to classify up to 171 countries into four categories of high-/middle-/low-income and others for ICT Indices. To some extent, this analysis is partly dependent upon these classifications. Analysis of ICT rankings reveals that: Table 3: Analysis of the Index of ICT Diffusion by Income
Index of ICT Diffusion High: Best Worst Average Middle: Best Worst Average Low: Best Worst Average Others: Best Worst Average 2001 U.S. 1 Qatar 45 18.6 Korea, Rep. 23 Albania 161 77 Armenia 62 Eritrea 171 132 Macao 31 Sol. Islands 167 109.4 2000 U.S. 1 Bahamas 48 18.7 Korea, Rep. 23 Albania 176 82 Indonesia 72 Eritrea 180 137.6 Guam 25 Sol. Islands 174 106 1999 Norway 1 Qatar 37 17 Korea, Rep. 21 Eq. Guinea 144 73 Tajikistan 50 Central Af. Rep 159 126 Greenland 27 Vanuatu 148 84 1998 Norway 1 Bahamas 55 18 Korea, Rep. 26 Gabon 142 74 Ukraine 66 Niger 159 128 Greenland 25 Sol. Islands 141 76 1995 Finland 1 Bahamas 46 17 Korea, Rep. 26 Egypt 154 78 Vietnam 61 Central Af. Rep 156 120 Macao 28 St Lucia 143 70

Average rankings conform to expectations. High income countries consistently capture the top rankings, with an average ranking of 17-18.7. This average ranking is 55-60 places ahead of middle income countries, which have a consistent average ranking between 73 and 81 over 1995-2001. Low income countries show some decline in average ranking over this period, from 120 to 132 in 2001. Others are too varied to yield meaningful conclusions. This pattern is apparent from the Connectivity Index for 200 countries using these categories:

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Table 4: Analysis of the Connectivity Index by Income

Connectivity Index High: Best Worst Average Middle: Best Worst Average Low: Best Worst Average Others: Best Worst Average 2001 U.S. 1 Brunei 82 21.2 Korea, Rep. 26 Gabon 155 86.5 Georgia 89 Niger 193 158.6 Bermuda 11 Somalia 195 94.6 2000 U.S. 1 Bahamas 62 22.5 Korea, Rep. 29 Djibouti 159 94.3 Ukraine 100 Congo DR 200 163.7 Bermuda 5 Afghanistan 199 85.6 1999 U.S. 1 Bahamas 64 23.6 Korea, Rep. 28 Eq. Guinea 183 97 Ukraine 100 Guinea Bissau 201 165 Bermuda 5 Afghanistan 197 81 1998 Finland 1 Bahamas 62 22.6 Korea, Rep. 28 Eq. Guinea 165 97.5 Ukraine 98 Congo DR 201 165 Bermuda 7 Afghanistan 200 81.6 1995 Finland 1 Qatar 57 22.5 Korea, Rep. 30 Eq. Guinea 170 99.5 Armenia 90 Chad 201 163 Bermuda10 Yugoslavia 200 111

High income countries again capture the top connectivity rankings, with an average ranking of 21-23.6. This average ranking is 77 places ahead of middle income countries, whose constant average ranking improves from 99.5 to 86.5 from 1995-2001. Low income countries also show some improvement in average ranking over this period from 163 to 158.6. Again, others is too varied a category to draw meaningful conclusions. These results are however constrained by the broadness of these categories e.g. Djibouti, Gabon, Equatorial Guinea and Cote dIvoire are classified as middle-income countries, and Georgia, Ukraine and Armenia as low-income. The definitions of these categories constrains possible conclusions, so it is interesting to look at narrower regional classifications for more focused analysis. b. Regional Groupings UNDP codes were used to classify up to 171 countries into eight categories of E. Europe and CIS, OECD, Arab states, E.Asia, S.Asia, Latin America & Caribbean, Sub-Saharan Africa and others. ICT diffusion rankings by these categories reveals:

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Table 5: Analysis of the Index of ICT Diffusion by Regional Grouping

Index of ICT Diffusion 1. OECD: Best Worst Average 2. EE & CIS: Best Worst Average 3. LAC: Best Worst Average 4. E. Asia: Best Worst Average 5. Arab: Best Worst Average 6. S. Asia: Best Worst Average 7.SSA: Best Worst Average Others: Best Worst Average 2001 U.S. 1 Mexico 75 22.2 Slovenia 27 Uzbekistan 166 94.8 Bahamas 44 Belize 128 71.7 Hong Kong 9 Cambodia 169 88.7 UAE 25 Yemen 140 88.8 Maldives 70 Bangladesh 148 111.6 Mauritius 57 Eritrea 171 126.3 Israel 22 Sol. Islands 167 98.8 2000 U.S. 1 Mexico 73 22.7 Slovenia 28 Albania 176 107.6 Costa Rica 46 Belize 131 77.6 Hong Kong 8 Cambodia 179 89.3 UAE 26 Yemen 145 91 Maldives 70 Bangladesh 154 113.3 Mauritius 65 Eritrea 180 131.3 Israel 21 Sol. Islands 174 99.3 1999 Norway 1 Mexico 72 22 Slovenia 30 Azerbaijan 140 71 Barbados 38 Dominican Rep. 120 79 Hong Kong 8 Myanmar 146 80 UAE 26 Sudan 127 80 Maldives 56 Bangladesh 133 104 Mauritius 54 Niger 159 127 Israel 20 Vanuatu 148 74.4 1998 Norway 1 Mexico 71 21.5 Estonia 28 Azerbaijan 140 70 Uruguay 45 Dominican Rep. 125 79.5 Hong Kong 11 Lao 156 77 UAE 29 Yemen 128 82 Maldives 77 Sri Lanka 134 113 Mauritius 50 Niger 159 126.4 Israel 17 Sol. Islands 141 66 1995 Finland 1 Mexico 116 27 Slovenia 27 Uzbekistan 142 78 Guyana 41 Bolivia 146 78.6 Hong Kong 11 Mongolia 153 74.5 Kuwait 31 Egypt 154 89 Maldives 86 Nepal 137 112 Mauritius 39 Central Af. Rep 156 117 Israel 19 St Vincent & G 143 62.5

Average rankings conform to expectations. OECD countries consistently capture the top rankings, with average ranking improving from 27 to 22.2 from 1995-2001. E.Europe and CIS also improve in average ranking from 78 to 71 from 1995-1999, but decline afterwards to 94.8 in 2001. Latin American and Caribbean countries have a consistent ranking of 78.679 from 1995-1999, that improves to 71.7 in 2001. E.Asian countries is a diverse category, encompassing Asian Tigers (e.g. best-performing Hong Kong at 11-8) and Cambodia, Lao PDR and Myanmar as countries tasked with catching up. E.Asia shows some decline in average ranking over this period from 74.5 to 88.7. Arab countries are similarly diverse, encompassing countries getting ahead (such as UAE and Kuwait) and countries catching up (Yemen and Sudan), and have roughly constant ranking over

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this period, with average ranking varying between 80 and 90, and 88.8 in 2001. South Asia also shows an improvement from an average of 112 in 1995 to 104 in 1999, before slipping back to 111.6 in 2001. Sub-Saharan Africas average ranking is consistently last but stable from 117 in 1995 to 126.3 in 2001, although its best-performers of Mauritius and South Africa generally rank between 50-65. Others is a varied category. These trends are again apparent from the connectivity index rankings (see also analysis of regional groupings in connectivity in the Digital Divide Section): Table 6: Analysis of the Connectivity Index by Regional Grouping
Connectivity Index 1. OECD: Best Worst Average 2. EE/CIS: Best Worst Average 3. LAC: Best Worst Average 4. Arab: Best Worst Average 5. E.Asia: Best Worst Average 6. S. Asia: Best Worst Average 7.SSA: Best Worst Average 8. Others: Best Worst Average 2001 U.S. 1 Mexico 74 22 Slovenia 25 Kyrgyz Rep. 175 90 Bahamas 49 Nicaragua 147 86.4 UAE 30 Sudan 164 103 Hong Kong 12 Myanmar 188 106 Iran 97 Bangladesh 184 148.3 Mauritius 57 Somalia 195 156.7 Bermuda 11 Afghanistan 194 90.4 2000 U.S. 1 Mexico 88 25.4 Slovenia 28 Tajikistan 153 96.9 Barbados 59 Nicaragua 147 93.9 UAE 35 Sudan 169 107.4 Singapore 11 Myanmar 192 111.4 Iran 104 Bangladesh 190 153.6 Mauritius 69 Congo, DR 200 162 Bermuda 5 Afghanistan 199 83 1999 U.S. 1 Mexico 93 26.6 Slovenia 31 Tajikistan 152 99 Barbados 57 Nicaragua 145 95 UAE 39 Sudan 172 109 Hong Kong 12 Myanmar 184 114 Iran 101 Bangladesh 185 150 Mauritius 75 Guinea-Bissau 201 166 Bermuda 5 Afghanistan 197 78.7 1998 Finland 1 Mexico 97 27 Slovenia 36 Albania 152 95.7 Barbados 55 Nicaragua 144 97 Qatar 51 Sudan 178 108 Hong Kong 11 Myanmar 186 115 Iran 99 Bangladesh 189 150 Mauritius 70 Chad 201 166 Bermuda 7 Afghanistan 200 79 1995 Finland 1 Mexico 95 29 Slovenia 40 Albania 158 92 Barbados 51 Nicaragua 142 100 Kuwait 44 Sudan 187 108 Hong Kong 13 Myanmar 180 113 Iran 101 Bangladesh 191 151 Mauritius 79 Chad 201 167 Bermuda 5 Afghanistan 198 77.8

For 1995-2001, average connectivity rankings conform to expectations and show remarkable consistency between periods. Furthermore, the same countries are consistently best or worst in their categories, which may reflect the long timescales needed to significantly improve levels of infrastructure. OECD countries consistently capture the top rankings, with average rank-

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ing improving from 29 to 22 from 1995-2001. E.Europe and CIS show a decline in average ranking from 92 to 99 from 1995-1999, and an improvement thereafter from 99-90 (overall unchanged), while Latin American and Caribbean countries show a steady improvement in average ranking from 100 to 86.4. In terms of connectivity, Arab countries outperform E.Asian countries (the reverse is true of wider ICT access and diffusion) with average Arab connectivity of 108-103 (compared to 113-106 for E.Asia). Arab countries encompass countries getting ahead (UAE, Qatar and Kuwait) and Sudan as their worst-performer, although Sudan improves steadily from 187-164. E.Asian countries include best-performing Hong Kong (between 11-13) and Myanmar as the worst performing (at 180-192). South Asia has a constant average of around 150, with consistent best-performer Iran and lower-performing Bangladesh. Sub-Saharan Africas average ranking is consistently last but shows some improvement, from 167 to 156.7 with best performers of Mauritius and South Africa generally ranking between 57-85. Chad and Guinea-Bissau are the lowest performers at 201. Others is again a varied category. c. Other Regions Regional classifications are reflected in the above UNDPs categories of E. Europe and CIS, OECD, Arab states, E.Asia, S.Asia, Latin America & Caribbean, Sub-Saharan Africa. However, for our purposes, further interesting results emerge from the Usage Index: telecom traffic, where the importance of island economies is also apparent. These are small, relatively remote but highly connected islands such as Cayman Islands and Bermuda specialised in service industries. These island states score highly in connectivity, beyond what might be expected from their geography, but in line with their specialisation in ICT-intensive service sectors. The negative impact of geography is also evident e.g. in respect of Nepal and Bhutan, where mountainous terrain prevents extensive network infrastructure. These countries score poorly in their regional classification of S.Asia and the satellite technology that can help overcome such terrain is not included in our Index. d. Connectivity and Access IndicesAppendix 3 Connectivity and Access show high correlations of 0.786 (2001), 0.764 (2000), 0.776 (1999), 0.833 (1998) and 0.686 in 1995, as shown in

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Appendix 2. The strong correlation of the access index (comprising users, literacy, call costs and average income) with connectivity is embodied in the Index of ICT Diffusion, as the average of these two indices. Appendix 3 illustrates this correlation, with countries lying mainly on the positive correlation diagonal and less so on the inverse diagonal. It is expected that good connectivity provides a basic foundation for and enhances good access (GDP income is an important underlying determinant of both access and connectivity infrastructure). Good access despite poor connectivity is counter-intuitive against expectationsonly one country experiences good access (Costa Rica, due to good literacy rates and low call costs) with fifteen having adequate access despite poor connectivity. Despite their relative rarity, these countries embodied by Costa Rica illustrate the possibilities for governments to enhance access beyond narrowly defined ICT connectivity with good literacy and low call costs. Transition economies generally enjoy strong literacy and education, improving access, but with reducing connectivity moving from Central and Eastern Europe towards Central Asian republics. This contrast is observed in our rankings in Appendix 3. The absence of good connectivity may make widespread access difficult to achieve, with a large vicious circle (CU Con, CU Acc), populated largely by African and Asian subcontinent countries. e. Policy and Connectivity IndicesAppendix 4 Policy and Connectivity index scores show a reasonable correlation in Appendix 2 of 0.516 (2001), 0.4297 (2000), 0.430 (1999), 0.426 (1998) and 0.403 (1995) although this is a retrospective comparison to make, since the policy variable relates to 2001-2002. This may also explain the reducing correlation the further back in time. The positive diagonal in Appendix 4 is again overweight in country observations, as expected from these correlations. Segmental analysis of rankings presented in Appendix 4 illustrates strong regional groupings. The GA Con-GA Pol box contains primarily OECD countries, engaged in a virtuous circle with competitive telecoms sectors and good infrastructure. GA Con-KU Pol contains Mediterranean and some former E. European countries. GA Con-CU Pol contains Arab

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and island states with good infrastructure, but less liberalised telecoms policies. It is important to note that for offshore islands with small populations, a competitive telecoms sector may not be appropriate, contrary to the value judgments implicit in the scores. The KU Con-GA Pol box contains mostly Latin American and some Asian countries that may have implemented competitive policies, but have yet to witness the full benefits. The middle segment KU Con-KU Pol contains the bulk of Central/Eastern European countries that have been cautious about or delayed telecom sector reforms. African countries dominate the catching up (CU) Connectivity column. However, countries in the CU Con-GA Pol box offer the most potential. These are countries that may have recently implemented reforms (e.g. India, in the transition from monopoly to a more liberal market structure) and are waiting to reap the benefits, or countries that have had competitive market structures for some time, but lack the resources to invest heavily in infrastructure. However, a coherent competitive policy framework is in place, so these countries may be in a position to profit from their policies in the future. These regional groups in rankings highlight different types of economies under consideration and suggest that policy recommendations must be tailored to the different types of economy. f. Evolution over time Comparison of Appendices 3 and 4 reveals that rankings are relatively stable year on year. Comparisons of country movements in connectivity between years demonstrate relatively little movement between boxes, although some volatility within classifications may occur. This is consistent with high correlations observed between years:

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Table 7: Correlations within Indices between years

Index of ICT Diffusion 2001 2000 1999 1998 1995 Connectivity Index 2001 2000 1999 1998 1995 Access Index 2001 2000 1999 1998 1995 2001 1 2000 0.9867 1 1999 0.8133 0.8211 1 1998 0.8297 0.8488 0.9338 1 2001 1 2000 0.9617 1 1999 0.9554 0.9893 1 1998 0.9483 0.9798 0.9893 1 2001 1 2000 0.9918 1 1999 0.9507 0.9591 1 1998 0.9476 0.9590 0.9849 1 1995 0.9084 0.9182 0.9421 0.9553 1 1995 0.9112 0.9461 0.9579 0.9789 1 1995 0.7057 0.7167 0.7725 0.8000 1

These correlations are consistent with UNIDO (2002)s considerable stability in Industrial Performance Scoreboard rankings supporting the argument that capability building is a slow and incremental process. These could thus reflect the long-term nature of investments and prolonged timescales involved in expansion of telephone mainline networks. It also suggests that it may be difficult to break out of a vicious circle, but that benefits conferred by establishing a virtuous circle with competitive policies may be long-term. Appendices 3 and 4 provide a segmental analysis of rankings for the year 2001. Only 2001 is presented, but a review of movements from 19952001 yields further insights. China moved up the connectivity rankings from CU to KU in 1998, following liberalisation of its telecoms sector to full competition in long-distance and partial competition in its local loop. China also experienced considerable inward investment in this period. India and Pakistan retain CU Connectivity status. The growth of telecommunications infrastructure in south Asia has not been demand-driven, unlike that of other countries where the infrastructure has been built and

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services operated by private investors but almost entirely investmentdriven, dependent on priority level from limited public resources [In India] connectivity remains low and unevenly distributed (Indian Economic and Political Weekly, 1999). However, different policy paths were pursued: In Pakistan, the private sector dominates; in India the government [was] monopoly service provider [until the end of 1998/early 1999]; in Nepal, high cost of international communications was circumvented by a country-wide Intranet. These different policy paths do not appear to have had a strongly differentiated impact on respective connectivity. (Nb. India subsequently liberalised its telecom sector, accounting for its maximum policy score of 4 in 2001-2). Reforms and subsequent benefits in connectivity are also strongly differentiated in the FUSSR. In keeping with the World Bank and EBRD studies of economies in transition, the sharp contrast between CEE and the Central Asian region is observed in our rankings. For analysis of the evolution of connectivity indicators 1995-2000 which are of particular importance due to their relation to the digital divide, please see the next section.
5 . T H E D I G I TA L D I V I D E

In their review of work carried out to assess the digital divide, Bridges.org observes that the digital divide between countries has typically been assessed by counts of hardware and connectivity (such as hosts, PCs, telephones, mobiles). We can analyse the distribution of our data on these variables to investigate their evolution over time, to see whether the uneven diffusion of technology (UNDP) is increasing or decreasing over time. Definitions of the digital divide include:
1. absolute measures: the absolute gap between the most advanced country with highest hardware concentrations and the country with the lowest; 2. relative measures: measures of whether the distribution as a whole is growing more or less convergent with time; 3. categorical measures: whether the group of low-income countries is converging with (relative to) the group of high-income countries. 4. convergence: relative convergence or divergence in rates of growth of hardware, Rodriguez & Wilson (2000).

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UNCTAD used the first three of these methods to analyse indicators of hardware connectivity and numbers of Internet users. These are basic indicators of the digital divide, which may be defined with more sophistication as access to and use of ICTs. It may not be the amount of hardware that is most important, but ultimately, the use that is made of this hardware and overall changes in the way the economy works. However, analysis of connectivity as the basic limiting factor to ICT access and of actual numbers of Internet users evaluates bottlenecks and disparity in the first stages of access to ICTs. a. Absolute Measures In Appendix 5 presenting basic statistics describing the indicator data populations, absolute measures of the digital divide reveals steadily increasing maxima, medians and averages across all populations over the period 1995-2000. These populations indicate rapidly increasing maximum observations as the countries in the lead continue to forge ahead as star performers, while in most cases, minimum observations remain at, or close to, zero. (This is explained by these observations describing per capita penetrations. Absolute gains in telecommunications sectors cited by the ITU may thus be negated by gains in populations in some developing countries). It is often this absolute perceived gap that is cited in popular observations about the digital divide - the gap between the most ICT-developed economies and the least ICT- developed appears to be wide, obvious and growing. In terms of relative disparities, the evidence is rather more mixed. The distributions of these indicator populations are highly skewed, as indicated by significant standard deviations (as a percentage of mean) and discrepancies between the median and mean (both measures of central tendency, but the mean is more influenced by outliers). Appendix 5 indicates however that skewness in these distributions of averaged indicator penetrations per capita is decreasing marginally over time. The picture is one of digital leaders forging ahead in their absolute lead; however, newcomers may be catching up in terms of relatively less skewed distributions of hardware across countries, based on average hardware penetrations across countries as the basic unit of analysis. Such average scores are only partially representative, however. These indicators are averages of total hardware equipment divided by total population for each country. They do not take account of the relative propor-

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tion of the worlds population living in each country. The Gini measure of inequality weights the distribution of hardware equipment or Internet users by the relative proportion of the worlds population for each country to produce a relative weighted measure of inequality. b. Gini Coefficients Preliminary analysis of Gini coefficients of inequality in levels of hardware equipment across nations reveals that levels of inequality in the distribution of hardware equipment are very high at 0.7-0.9, approximately twice the average level of income inequality observed for countries (between 0.3 - 0.4). Inequality in the distribution of technology across countries is undoubtedly high and substantial. Gini coefficients further reflect the relative age of the technologies, with greater inequality observed for more recently introduced technologies, such as Internet hosts (around 0.91) and Internet users (between 0.87 and 0.73). Internet users are more evenly distributed than either PCs or Internet hosts, emphasising that access may differ from basic connectivity to the Internet. Telephones, as the oldest technology examined, consistently have the lowest Gini coefficients of all these technologies from 0.69 to 0.57 over the period 1995-2001. Mobiles are a notable exception to the age rule, with lower Gini coefficients than expected from the relative youth of this technology, that further reduce the fastest, from 0.82 to 0.66 over the period 1995-2001. This reflects the leapfrogging noted by the ITU and UNDP. The digital divide, as measured by hardware equipment and Internet users, is undoubtedly wide and substantial. Table 8: Gini Coefficients (figures in brackets give numbers of countries)
Variables Internet Hosts Internet Users PCs Mobile subscribers Telephone mainlines 2001 0.915727 (193) 0.732629 (160) 0.754002 (144) 0.658388 (175) 0.570299 (174) 2000 0.92052 (199) 0.754422 (183) 0.754097 (156) 0.703486 (195) 0.589103 (196) 1999 0.91655 (200) 0.809996 (195) 0.770972 (155) 0.731545 (184) 0.645535 (193) 1998 0.913665 (200) 0.876371 (187) 0.76715 (148) 0.775206 (197) 0.66678 (200) 1997 0.912568 (200) 0.85085 (181) 0.793778 (126) 0.788291 (194) 0.679151 (200) 1996 0.902182 (198) 0.859376 (171) 0.791806 (116) 0.816721 (195) 0.69676 (200) 1995 0.910215 (199) 0.870685 (136) 0.790808 (110) 0.822235 (195) 0.688234 (200)

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The question of how the digital divide is evolving, and whether it is growing or diminishing over time is more complex. Gini analysis reveals relatively little overall change in the inequality of these distributions, with their evolution over time representing small, incremental reductions from their highly unequal levels. However, Gini coefficients as relative measures across the whole distribution do not identify exactly where contributions to reducing inequality come from. Given that Gini measures are weighted by population, countries with substantial populations, such as China and India, have greater influence in determining the Gini coefficient. It is doubtful that such contributions to reducing inequality derive from the tails of the distribution (as we saw from the absolute measures, best performers are in fact increasing their lead, whilst some countries in the lower tail remain at, or close to, zero). Thus, these small reductions in inequality are coming from the centre of the distribution, but Gini coefficients only hint at a greater weighting for more populated countriesthey do not tell us exactly which countries. In the next section, we analyse relative movements in rankings to identify how countries and regions are faring in basic connectivity, to see which countries are contributing to reductions in inequality, increasing inequality, or merely preserving the status quo. Taken together, it is envisaged that these relative measures of the digital divide and the insights derived from benchmarking, provide a more detailed picture of developments in countries ICT development. c. Relative Movements in Country Rankings for Connectivity Country rankings have two main characteristics: their current level and trend over time. To analyse relative movements in country rankings, connectivity rankings were divided into quartiles of Excellent (1-50 places); Good (51-100); Poor (101-150) and Disadvantaged (151-201). Trends in connectivity rankings over time were then assessed, to determine whether they were Improving, Same or Declining. In a sample of 201 countries, if 100 is taken as the median, the impact of trends in inequality on the status quo may be viewed as:

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Table 9: Relative Movements in Country Rankings

Level Excellent (50 countries) Trend Improving Same Declining Good (51 countries) Improving Same Declining Poor (52 countries) Improving Same Declining Disadvantaged (49 countries) Improving Same Declining Impact on Inequality Exacerbates inequality Preserves the status quo Reduces inequality Exacerbates inequality Preserves the status quo Reduces inequality: trend towards median Reduces inequality: trend towards median Preserves the status quo Exacerbates inequality Reduces inequality: trend towards median Preserves the status quo Exacerbates inequality

(This is a judgemental exercise and not exact science: countries may be borderline between categories, and move from one into another, accounting for the inexact numbers of countries in each category). The conclusions from such a review depend strongly on the regional classifications. UNDP classifications of regional and cultural groupings are used. Analysis of country rankings by categories reveals the following trends: i. OECD countries Consistent with the observations in Section 4 about regional rankings, OECD countries are consistently the best-performing countries in ICT development. OECD countries rank as having excellent and good connectivity and consistently capture first place (Finland, replaced by the U.S.) as maximum ranking, but with reducing minimum rankings from 95th to 74th place (Mexico). Consequently, the OECD average ranking reduces from 29 to 22 place from 1995-2001. Only three OECD countries show marginal declines in rankings (Finland, Australia and Canada) reflecting loss of first mover advantages and catch-up by other OECD countries. The standard deviation in rankings reduces correspondingly from 26 to 18, indicating a more closely-bunched grouping at the upper end of the distribution. OECD countries are effectively differentiating and separating out from the body of the distribution of country rankings, in an increasingly polarised distribution with OECD countries ahead.

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ii. EE and CIS Eastern European and the Commonwealth of Independent States demonstrate polarisation within their region. Maximum ranking is improving (Slovenia rockets up the rankings, from 40th place to 25th place from 1995 to 2001). However, minimum rankings slip from 158th place in 1995 (Albania) to 175th place in 2001 (the Kyrgyz Republic). This leaves overall average ranking unchanged, between 92-90 place, but leads to a steady increase in EE and CIS standard deviation in rankings, from 18 to 40. The EE and CIS region demonstrates increasing variation and polarisation, around approximately the same mean. (It is worth noting that variation would be further increased if Poland, Hungary and the Czech Republic were to be included in the CEE region, rather than under the OECD). iii. Latin America and Caribbean Latin American and Caribbean countries show a steady improvement in average ranking from 100 to 86.4. Barbados and Bahamas have rankings around 51-49th place from 1995-2001. The minimum ranking (Nicaragua) declines from 142 to 147th place from 1995-2001. The average ranking improves slightly from 99 to 86, while standard deviation remains the same at 25. Overall, Latin America retains a stable distribution around a slowly improving average. iv. Arab Countries Arab countries encompass best-performing Qatar, Kuwait and the United Arab Emirates (UAE) whose rankings improve from 44 to 30th place, and Sudan with the lowest ICT development, although Sudan improves steadily from 187-164th place from 1995-2001. This does not impact the average ranking and standard deviation, which remain unchanged at around 108 and 41 respectively. Overall, the contribution of Arab countries is therefore to maintain the status quo, with no major contributions to reducing inequality. v. East Asia E.Asian countries include best-performing Hong Kong and Singapore (between 11-13) and Myanmar as the worst performing, declining from 180 to 192 from 1995-2001. This leaves the overall average unchanged at 113-111 between 1995-2001, although there is some improvement to 106 in 2001, while the standard deviation hovers around 55. From the group

328

regional perspective, there are no major developments. However, the most remarkable individual success story in East Asia is China, which rockets up the rankings in connectivity from 136th place in 1995 to 93rd in 2001. Given that China is host to one fifth of the worlds population, Chinas steady rise in relative ranking is likely contribute substantially to the reduction in inequality showed by the Gini coefficients. vi. South Asia South Asia demonstrates no real change overall and essentially preserves the status quo. The best maximum ranking varies between 101 and 97 (Iran) from 1995 to 2001, and the lowest between 191 and 194 (Bangladesh). This leaves overall average ranking preserved at 151-148, while standard deviation remains the same around 30. India, the most populous country with one sixth of the worlds population, shows a slight improvement in ranking from 158 to 151 between 1995-2001. This may reinforce the reductions in Gini coefficient, representing a small reduction in inequality, but it seems likely that overall, the South Asian region does not contribute towards any major changes in overall inequality. vii. Sub-Saharan Africa Africa demonstrates a wide variation in performance, between bestperforming Mauritius, which improves from 79th place to 57th place from 1995-2001, and the bulk of Sub-Saharan African countries at the lower end of the distribution, including Chad, Guinea-Bissau, Congo and Somalia which occupy last place. The overall average ranking shows a small improvement in rankings, from 167 to 157, while standard deviation in rankings increases to reflect the growing variation from 28 to 32. Overall, there is thus an increasing deviation about a minimally improving average. However, African countries remain clustered towards the bottom of the distribution, so the overall contribution of Sub-Saharan Africa is to maintain the status quo, with no major contributions to reducing inequality.
6. C O N C L U S I O N S & WAY F O RWA R D

There are different aspects to multi-faceted technology clusters, and ICTs may be defined and measured from several perspectives. Measurement across multiple aspects is necessary, to give rounded country profiles across the spectrum of ICT capabilities. Based on a review of previous work, we

329

chose the aspects of connectivity, access, usage and policy as key components in the measurement of ICT development across countries. We measured technological profiles using a disaggregated index of ICT Diffusion, with component indices for connectivity, access and policy in the ICT Development Indices. There is a trade-off of breadth versus depth of indicators in such a cross-country analysis of as many countries as possible. It is difficult to achieve depth and complexity in indicators using standardised, crosscountry indicators for broad comparability across many countries. The qualitative policy index contains an implicit value judgment in favour of competition in the telecoms sector, which does not allow for benign monopolies or small economies where economies of scale may be appropriate. The policy index is, however, correlated with connectivity, which implies beneficial effects to telecoms liberalisation in terms of improved connectivity. These different aspects are related, with strong positive correlations observed between connectivity and access and, to a lesser extent, competitive telecoms policy and connectivity. This suggests that we are measuring central measures of technological development, although causation cannot be addressed with benchmarking indicesfor example, we may be implicitly measuring proxy variables of income and/or development. Benchmarking provides useful information and meaningful analysis for policy purposes. Our cross-country analysis allows comparison between countries and monitoring of progress over time. It further allows straightforward identification based on evidence of success stories for closer investigation for policy conclusions. Approached with thought, benchmarking is a useful input to policy analysis in allowing more informed and insightful study into policy and ultimately, in promoting better, faster and more effective ICT development. Classification of countries as catching up, keeping up and getting ahead on the basis of rankings in the ICT Development Indices show consistent rankings over time, with high correlations and stable rankings (illustrative of these high correlations) between periods. This may reflect the long-term nature of infrastructure investments and policy reforms. Strong regional influences are apparent. As a broad generalisation, African and South Asian countries are classified as catching up, Latin American and transition economies as keeping up, and OECD countries and some

330

South East Asian Tigers as getting ahead. However, this masks considerable diversity with individual success stories such as Costa Rica and China, and the notable successes achieved in connectivity by Arab and island states, despite less competitive telecom policies. For island states, this may arise however, from their geographical situation and specialisation in service industries. Trends in connectivity over time suggest stable country rankings from 1995 to 2001 and potential convergence in distributions of hardware, yielding the intriguing result of a diminishing digital divide, as defined narrowly by hardware measures. A review of the the digital divide and its evolution, as defined by hardware measures, has been carried out in terms of both absolute measures, Gini coefficients and an analysis of movements in country rankings. Taken together, this review suggests small, incremental reductions in inequality in the distributions of hardware and Internet users across countries, yielding the intriguing result of a diminishing digital divide. Our results show that more recent technologies such as the Internet are more unevenly distributed relative to older technologies, such as fixed line telephony. Our findings also demonstrate leapfrogging in mobile telephony (with lower levels of inequality, which reduce the fastest), suggesting greater potential for mobiles as more equally distributed technologies in bridging the digital divide. Using a regional analysis of relative rankings, we reviewed levels of, and trends in, connectivity for different regions. Our results show that the tails of the distributions are becoming more polarised, with OECD countries differentiating out from the body of the distribution of countries, and becoming increasingly more tightly bunched at the head of the distribution. Conversely, Sub-Saharan Africa remains grouped in the lower end of the distribution. These incremental reductions in Gini coefficients derive from the middle of the distribution, and China in particular, which accounts for a fifth of the worlds population and shows a steady and substantial rise up the rankings. It would be interesting to compare our indices and the changes in rankings therein with other indices (e.g. UNIDOs Infrastructure Index, McConnell Internationals and EIUs connectivity rankings). In future work, the challenging question of causation could be addressed to forge a link between the trends in outcomes observed and underlying policy by using more sophisticated statistical techniques. Regression work should include consideration of economies sectoral composition, as reflected in

331

the technological structure of exports and FDI as important determinants of and influences on countries uptake and absorption of ICTs.
LIST OF ACRONYMS

CEE CSTD CU EIU EU FDI GA GDP GIT HDI HDR HTI ICTs IP ISP IT ITU IX KU LAC MAE MNC NAPs OECD PC PTO SSA UNCSTD

Central and Eastern Europe Commission on Science and Technology for Development Catching Up / Falling Behind Economist Intelligence Unit European Union Foreign Direct Investment Getting Ahead Gross Domestic Product Georgia Institute of Technology Human Development Index (UNDP) Human Development Report (UNDP) High Technology Indicators (GIT) Information and Communication Technologies Internet Protocol Internet Service Providers Information Technology Information and Telecommunication Union Internet Exchange points Keeping Up Latin America & Caribbean Metropolitan Area Exchanges Multi-National Corporation Network Access Points Organisation for Economic Cooperation and Development Personal Computer Public Telephone Operator Sub-Saharan Africa United Nations Commission on Science and Technology for Development UNCTAD United Nations Conference on Trade and Development UNDP United Nations Development Program UNIDO United Nations Industrial Development Organization WAP Wireless Access Protocol
332

7. APPENDICES

The following appendices are presented:

1. Appendix 1ICT Development Indices for 2001, 2000 and 1999 (by country and by ranking); 2. Appendix 2Correlations of component indices; 3. Appendix 3Comparison of Connectivity/Access Indices for 2001; 4. Appendix 4Comparison of Connectivity/Policy Indices for 2001; 5. Appendix 5Digital Divide work; 6. Appendix 6Connectivity Index (2001, 2000 and 1999).

Appendix 1 presents ICT Development Indices and the Index of ICT Diffusion calculated as discussed above, in the section on Index Methodology for 2001, 2000 and 1999. Appendix 2 presents correlation tables for the three main component indices (Connectivity, Access and Policy Indices) calculated using the correlation function in Excel for the four years 1995, 1998, 1999, 2000 and 2001. Appendices 3 and 4 compare Connectivity/Access Indices and Connectivity/Policy Indices for 2001 by categorising them as catching up (CU), keeping up (KU) and getting ahead (GA). For connectivity, countries were divided into thirds, with the first third (1-67) classified as GA, second third (68-124) classified as KU and the last third (125-201) as CU. For access, countries were also divided into thirds, with the first third (1-53) classified as GA, second third (54-106) classified as KU and the last third (107-156) as CU. For policy, thirds closely corresponded to scores, so first third includes policy scores in excess of 0.5, the second third 0.5>/ x >0 and last third scores of zero. This allows the segmental classification and analysis of Connectivity with Access Index and Connectivity with Policy Index. Appendix 5 presents exploratory data analysis for base data populations of Internet hosts, PCs, telephones and mobiles to present a preliminary analysis of the digital divide. Appendix 6 provides a separate listing of the Connectivity Index, for 2001, 2000 and 1999.

333

7. APPENDI X 1 : I C T D E V E L O P M E N T I N D I C E S ( 2 0 0 1 )
COUNTRY
Afghanistan Albania Algeria American Samoa Andorra Angola Antigua and Barbuda Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Darussalam Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Cayman Islands Central African Rep. Chad Chile China

2001 CONNECTIVITY
0.0005 0.0500 0.0209 0.0321 0.2675 0.0038 0.3567 0.1382 0.0446 0.3153 0.5814 0.4904 0.0664 0.2171 0.2560 0.0027 0.0754 0.1106 0.4717 0.1325 0.0083 0.5614 0.0029 0.0475 0.0618 0.0841 0.1352 0.0950 0.2092 0.0036 0.0022 0.0056 0.0087 0.4385 0.0782 0.0362 0.0022 0.0017 0.1944 0.0759

2001 ACCESS
.. 0.0161 0.2248 .. .. 0.0110 .. 0.4221 0.4959 .. 0.6396 0.6728 0.0094 0.4701 0.6660 0.1399 0.6007 0.0714 0.6444 0.0975 0.1280 .. 0.1591 0.4419 0.0207 0.4252 0.4706 0.6903 0.3755 0.0791 0.1613 0.0034 0.3939 0.7179 0.2667 .. 0.1556 0.1816 0.4532 0.3026

2001-2 POLICY
0.1667 0.5000 0.0000 0.0000 0.0000 0.6250 0.1667 1.0000 0.2500 0.0000 1.0000 1.0000 0.1667 0.0000 0.0000 0.0833 0.0000 0.3333 0.8750 0.0000 0.0000 0.0000 0.0000 0.2500 0.2500 0.2500 0.7500 0.0000 0.5000 0.2500 0.6667 0.3750 0.0000 1.0000 0.2500 0.0000 0.0000 0.0000 1.0000 0.8750

2001 ICT DIFFUSION

.. 0.033066658 0.122837535 .. .. 0.007400343

0.280129439 0.270259284 .. 0.610462268 0.581640716 0.037865117 0.343632715 0.461000488 0.071297108 0.338087047 0.090978728 0.558049134 0.114972247 0.068150287 .. 0.080999773 0.244698065 0.041264407 0.254646597 0.302877114 0.392647369 0.29235306 0.041374387 0.081746558 0.004493064 0.201302836 0.578170681 0.172483465 .. 0.078917352 0.09164793 0.323813524 0.189220187

334

COUNTRY
Colombia Comoros Congo Congo (Democratic Republic of the) Costa Rica Cote dIvoire Croatia Cuba Cyprus Czech Republic Denmark Djibouti Dominica Dominican Rep. Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Faroe Islands Fiji Finland France French Guiana French Polynesia Gabon Gambia Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guadelope Guam Guatemala Guinea Guinea-Bissau

2001 CONNECTIVITY
0.0847 0.0056 0.0159 0.0011 0.1538 0.0190 0.2368 0.0224 0.3447 0.3844 0.6203 0.0099 0.1721 0.0889 0.0558 0.0433 0.0671 0.0144 0.0031 0.3217 0.0019 0.0929 0.0795 0.6402 0.4596 .. 0.1861 0.0096 0.0208 0.0817 0.4995 0.0074 .. 0.3817 0.3172 0.1715 .. .. 0.0485 0.0042 0.0037

2001 ACCESS
0.3350 0.2583 0.4154 .. 0.5274 0.1633 0.5379 0.4877 0.6219 0.4525 0.7859 0.1793 .. 0.3091 0.3273 0.3895 0.4197 0.4164 0.0038 0.5113 0.1310 .. 0.4493 0.7220 0.6296 .. 0.2460 0.4020 0.1289 0.0102 0.6874 0.2365 .. 0.4692 0.5042 0.0885 .. 0.9950 0.3616 0.1405 0.1264

2001-2 POLICY
1.0000 0.0000 0.6667 0.7500 0.0000 0.2500 0.5000 0.2500 0.5000 1.0000 1.0000 0.0000 0.0000 0.7500 0.1250 0.2500 0.7500 0.0000 0.2500 0.7500 0.0000 0.0000 0.0000 1.0000 1.0000 0.0000 0.0000 0.3750 0.2500 0.7500 1.0000 0.5000 0.0000 1.0000 0.0000 0.0000 0.0000 0.0000 0.5000 0.2500 0.7500

2001 ICT DIFFUSION

0.209830044 0.131974466 0.215660292 .. 0.34057669 0.091152173 0.387370568 0.255070121 0.48328467 0.418420835 0.703105322 0.094609149 .. 0.19896696 0.191539414 0.216381019 0.243382443 0.21541592 0.003456059 0.41651666 0.066449659 .. 0.264381982 0.681065837 0.544591168 .. 0.216058916 0.205804468 0.074802833 0.045955985 0.593480312 0.121954517 .. 0.425445318 0.410678569 0.130016424 .. .. 0.205047156 0.072344169 0.065044672

335

COUNTRY
Guyana Honduras Hongkong Hungary Iceland India Indonesia Iran (Islamic Rep. of ) Iraq Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Kiribati Korea, Dem. Rep. Korea (Rep. of ) Kuwait Kyrgyzstan Lao P.D.R. Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Macau Macedonia, FYR Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Martinique

2001 CONNECTIVITY
0.0548 0.0274 0.5556 0.2858 0.7065 0.0134 0.0211 0.0701 0.0107 0.5018 0.4790 0.4370 0.1449 0.4918 0.0883 0.0194 0.0092 0.0195 0.0276 0.4023 0.1850 0.0040 0.0053 0.2216 0.0479 0.0082 0.0010 0.0455 0.2909 0.1871 0.7028 0.2934 0.1372 0.0043 0.0030 0.1949 0.0493 0.0027 0.3470 0.0523 ..

2001 ACCESS
0.3939 0.5036 0.7826 0.4917 0.9138 0.1937 0.4592 0.2704 .. 0.6393 0.5796 0.6056 0.3294 0.8396 0.3335 .. 0.2837 0.0233 .. 0.6522 0.6555 .. 0.2101 0.3904 0.4856 0.2847 0.2652 0.4027 .. 0.4821 0.7754 0.6274 0.3527 0.0045 0.2020 0.5627 0.4531 0.1362 0.6423 0.0345 ..

2001-2 POLICY
0.0000 0.0000 1.0000 0.5000 1.0000 1.0000 0.5000 0.0000 0.0000 1.0000 0.5000 1.0000 0.2500 1.0000 0.2500 0.6667 0.6250 0.0000 0.0000 0.8750 0.1667 0.3750 0.0000 0.5000 0.0000 0.0000 0.0000 0.0000 0.0000 0.2500 1.0000 0.0000 0.2500 0.7500 0.7500 0.6250 0.0000 0.5000 0.5000 0.0000 0.0000

2001 ICT DIFFUSION

0.224367984 0.265523508 0.66911458 0.388732272 0.810114573 0.10351466 0.240136052 0.170240055 .. 0.570576017 0.529289132 0.5213067 0.237133091 0.665655189 0.210880945 .. 0.146437143 0.021368796 .. 0.527257657 0.420259543 .. 0.107717538 0.306005956 0.266724449 0.146458491 0.133137566 0.224073714 .. 0.334596136 0.739124756 0.460417848 0.244990376 0.004383419 0.102499833 0.37876599 0.251210599 0.069431727 0.494686344 0.04340254 ..

336

COUNTRY
Mauritania Mauritius Mexico Micronesia (Fed. States of ) Moldova Mongolia Morocco Mozambique Myanmar Namibia Nepal Netherlands Netherlands Antilles New Caledonia New Zealand Nicaragua Niger Nigeria Norway Oman Pakistan Panama Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Romania Russia Rwanda Samoa Sao Tome and Principe Saudi Arabia Senegal Seychelles Sierra Leone Singapore Slovak Republic Slovenia

2001 CONNECTIVITY
0.0080 0.1856 0.1230 0.0345 0.0638 0.0385 0.0564 0.0052 0.0022 0.0491 0.0051 0.6528 0.2106 0.0577 0.5281 0.0157 0.0008 0.0047 0.6690 0.0711 0.0097 0.1117 0.0726 0.0565 0.0555 0.1927 0.3908 0.2310 0.2315 0.1113 0.1012 0.0039 0.0482 0.0205 0.1011 0.0330 0.2737 0.0039 0.5491 0.2511 0.4298

2001 ACCESS
0.1373 0.3752 0.3655 .. 0.3391 0.0158 0.1784 0.2173 0.4251 0.3009 0.3452 0.6731 .. .. 0.6810 0.3255 0.0552 0.3242 0.8838 0.3930 0.3517 0.5007 0.4368 0.4711 0.5027 0.4129 0.5603 0.5795 0.4552 0.3609 0.3578 0.3909 0.0310 0.0503 0.3953 0.1319 0.1704 0.1219 0.6617 0.5661 0.5501

2001-2 POLICY
0.3333 0.0000 0.7500 0.0000 0.2500 0.5000 0.2500 0.2500 0.0000 0.2500 0.2500 0.7500 0.0000 0.0000 0.8750 0.2500 0.6667 0.7500 1.0000 0.0000 0.8750 0.5000 0.2500 1.0000 1.0000 0.8750 1.0000 0.0000 0.0000 0.5000 0.5000 0.0000 0.0000 0.0000 0.5000 0.2500 0.0000 0.5000 1.0000 0.5000 0.2500

2001 ICT DIFFUSION

0.072625314 0.28041522 0.244251098 .. 0.20141817 0.027162433 0.11741058 0.111234232 0.21365745 0.17501665 0.175167267 0.662953275 .. .. 0.604538239 0.170634801 0.027999867 0.164460937 0.776393593 0.232065713 0.180705636 0.306185889 0.254720915 0.263810316 0.279069106 0.302756919 0.475541941 0.405294354 0.343337767 0.236102424 0.22947641 0.197424446 0.039630734 0.035393645 0.248199984 0.082455664 0.222053146 0.062903588 0.605399974 0.408642678 0.489971049

337

COUNTRY
Solomon Islands Somalia South Africa Spain Sri Lanka Saint Kitts and Nevis Saint Lucia St. Vincent & the Grenadines Sudan Suriname Swaziland Sweden Switzerland Syria Taiwan, China Tajikistan Tanzania Thailand Togo Trinidad and Tobago Tunisia Turkey Turkmenistan Uganda Ukraine United Arab Emirates United Kingdom United States Uruguay Uzbekistan Vanuatu Venezuela Viet Nam Virgin Islands (U.S.) Yemen Yugoslavia Zambia Zimbabwe

2001 CONNECTIVITY
0.0247 0.0000 0.1168 0.3700 0.0251 0.1683 0.1238 0.0916 0.0063 0.1378 0.0379 0.6918 0.5857 0.0402 .. 0.0138 0.0056 0.0683 0.0168 0.1432 0.0512 0.1713 0.0456 0.0054 0.0810 0.3786 0.5396 0.8005 0.1776 0.0256 0.0147 0.1207 0.0189 0.0543 0.0090 0.1243 0.0075 0.0174

2001 ACCESS
0.0103 .. 0.3397 0.5243 0.4494 .. .. .. 0.1937 0.4950 0.4251 0.7847 0.7909 0.2564 .. 0.3315 0.2561 0.3619 0.1974 0.4138 0.2729 0.3245 0.0121 0.2266 0.3409 0.6247 0.7131 0.8462 0.4312 0.0107 0.1765 0.4346 0.3156 .. 0.1575 .. 0.2633 0.3183

2001-2 POLICY
0.0000 0.6667 0.3333 1.0000 0.5000 0.0000 0.0000 0.0000 0.7500 0.5000 0.2500 1.0000 1.0000 0.0000 1.0000 0.0000 0.2500 0.6250 0.2500 0.2500 0.2500 0.2500 0.3333 0.5000 0.0833 0.2500 1.0000 1.0000 0.1250 0.1667 0.0000 0.7500 0.2500 0.0000 0.2500 0.6667 0.2500 0.7500

2001 ICT DIFFUSION

0.017500514 .. 0.228270209 0.44716507 0.237257064 .. .. .. 0.099977804 0.316396106 0.231484438 0.73828085 0.688307363 0.148293031 .. 0.172642523 0.130824524 0.215103892 0.107076493 0.278488098 0.162011465 0.247935095 0.028825513 0.115994873 0.210987261 0.501655426 0.626315848 0.823370778 0.304377226 0.018103136 0.095633432 0.277639578 0.167252298 .. 0.083246802 .. 0.135412716 0.167861436

338

2001 Index of ICT Diffusion by Ranking

339

7. APPENDI X 1 : I C T D E V E L O P M E N T I N D I C E S ( 2 0 0 0 )
COUNTRY
Afghanistan Albania Algeria American Samoa Andorra Angola Antigua and Barbuda Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Darussalam Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Cayman Islands Central African Rep. Chad Chile

2000 CONNECTIVITY
0.0005 0.0199 0.0197 0.1474 0.2824 0.0026 0.3631 0.1386 0.0434 0.2039 0.5653 0.5493 0.0589 0.1804 0.2396 0.0022 0.1964 0.1006 0.4747 0.1260 0.0057 0.6670 0.0028 0.0470 0.0505 0.0859 0.1189 0.2013 0.1503 0.0025 0.0022 0.0043 0.0064 0.5134 0.0661 0.4682 0.0018 0.0012 0.1720

2000 ACCESS
.. 0.0148 0.2248 .. 0.4139 0.0097 0.1885 0.4210 0.3379 .. 0.6486 0.6620 0.0084 0.4676 0.5972 0.1398 0.4212 0.0562 0.6352 0.0963 0.1275 .. 0.1589 0.3026 0.0211 0.2924 0.4661 0.6906 0.3685 0.0788 0.1613 0.0032 0.3940 0.7373 0.2639 .. 0.1556 0.1816 0.4488

2001-2 POLICY
0.1667 0.5000 0.0000 0.0000 0.0000 0.6250 0.1667 1.0000 0.2500 0.0000 1.0000 1.0000 0.1667 0.0000 0.0000 0.0833 0.0000 0.3333 0.8750 0.0000 0.0000 0.0000 0.0000 0.2500 0.2500 0.2500 0.7500 0.0000 0.5000 0.2500 0.6667 0.3750 0.0000 1.0000 0.2500 0.0000 0.0000 0.0000 1.0000

2000 ICT DIFFUSION

.. 0.0173 0.1222 .. 0.3481 0.0061 0.2758 0.2798 0.1907 .. 0.6069 0.6056 0.0337 0.3240 0.4184 0.0710 0.3088 0.0784 0.5549 0.1112 0.0666 .. 0.0809 0.1748 0.0358 0.1892 0.2925 0.4460 0.2594 0.0407 0.0818 0.0038 0.2002 0.6254 0.1650 .. 0.0787 0.0914 0.3104

340

COUNTRY
China Colombia Comoros Congo Congo (Democratic Republic of the) Costa Rica Cote dIvoire Croatia Cuba Cyprus Czech Republic Denmark Djibouti Dominica Dominican Republic Ecuador Egypt, Arab Rep. El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Faeroe Islands Fiji Finland France French Guiana French Polynesia Gabon Gambia, The Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guadelope Guam Guatemala Guinea

2000 CONNECTIVITY
0.0592 0.0802 0.0046 0.0109 0.0003 0.1443 0.0158 0.2081 0.0169 0.3341 0.3033 0.6412 0.0088 0.1298 0.0754 0.0489 0.0336 0.0688 0.0090 0.0030 0.3235 0.0015 0.3899 0.0752 0.6416 0.4608 0.1913 0.1597 0.0437 0.0134 0.0676 0.5223 0.0068 0.5830 0.3619 0.3405 0.1625 0.2915 0.0030 0.0450 0.0040

2000 ACCESS
0.2997 0.3336 0.2579 0.4154 .. 0.5173 0.1626 0.3884 0.4845 0.6123 0.4437 0.7726 0.1781 0.1155 0.3091 0.3230 0.3891 0.2842 0.4163 0.0031 0.5169 0.1309 .. 0.4488 0.7208 0.5825 .. 0.2508 0.2747 0.1275 0.0104 0.6736 0.2364 .. 0.4580 0.5092 0.0851 .. 0.9950 0.3583 0.1402

2001-2 POLICY
0.8750 1.0000 0.0000 0.6667 0.7500 0.0000 0.2500 0.5000 0.2500 0.5000 1.0000 1.0000 0.0000 0.0000 0.7500 0.1250 0.2500 0.7500 0.0000 0.2500 0.7500 0.0000 0.0000 0.0000 1.0000 1.0000 0.0000 0.0000 0.3750 0.2500 0.7500 1.0000 0.5000 0.0000 1.0000 0.0000 0.0000 0.0000 0.0000 0.5000 0.2500

2000 ICT DIFFUSION

0.1795 0.2069 0.1313 0.2132 .. 0.3308 0.0892 0.2983 0.2507 0.4732 0.3735 0.7069 0.0935 0.1227 0.1922 0.1859 0.2114 0.1765 0.2126 0.0030 0.4202 0.0662 .. 0.2620 0.6812 0.5216 .. 0.2052 0.1592 0.0704 0.0390 0.5980 0.1216 .. 0.4100 0.4249 0.1238 .. 0.4990 0.2017 0.0721

341

COUNTRY
Guinea-Bissau Guyana Honduras Hong Kong, China Hungary Iceland India Indonesia Iran, Islamic Rep. Iraq Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Kiribati Dem. Peoples Rep. of Korea Korea, Rep. Kuwait Kyrgyz Republic Lao PDR Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Macao, China Macedonia, FYR Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands

2000 CONNECTIVITY
0.0034 0.0394 0.0251 0.5869 0.2488 0.7293 0.0119 0.0184 0.0662 0.0107 0.5031 0.5079 0.4544 0.1201 0.4957 0.0730 0.0470 0.0065 0.0207 0.0270 0.4147 0.2039 0.0296 0.0040 0.2041 0.1421 0.0085 0.0011 0.0448 0.5580 0.1652 0.6506 0.2783 0.1156 0.0032 0.0029 0.1775 0.0403 0.0017 0.3405 0.0517

2000 ACCESS
0.1262 0.3719 0.3803 0.7796 0.4676 0.9138 0.1934 0.4564 0.2696 .. 0.6415 0.5792 0.5989 0.3281 0.7830 0.3276 0.0184 0.2796 0.0211 .. 0.6288 0.6501 0.0118 0.2098 0.3907 0.3713 0.2846 0.2651 0.4016 .. 0.4829 0.7935 0.5772 0.3499 0.0045 0.2019 0.5410 0.4496 0.1359 0.5687 0.0350

2001-2 POLICY
0.7500 0.0000 0.0000 1.0000 0.5000 1.0000 1.0000 0.5000 0.0000 0.0000 1.0000 0.5000 1.0000 0.2500 1.0000 0.2500 0.6667 0.6250 0.0000 0.0000 0.8750 0.1667 0.3750 0.0000 0.5000 0.0000 0.0000 0.0000 0.0000 0.0000 0.2500 1.0000 0.0000 0.2500 0.7500 0.7500 0.6250 0.0000 0.5000 0.5000 0.0000

2000 ICT DIFFUSION

0.0648 0.2057 0.2027 0.6832 0.3582 0.8215 0.1027 0.2374 0.1679 .. 0.5723 0.5436 0.5267 0.2241 0.6394 0.2003 0.0327 0.1430 0.0209 .. 0.5217 0.4270 0.0207 0.1069 0.2974 0.2567 0.1465 0.1331 0.2232 .. 0.3240 0.7221 0.4278 0.2328 0.0038 0.1024 0.3592 0.2450 0.0688 0.4546 0.0433

342

COUNTRY
Martinique Mauritania Mauritius Mexico Micronesia (Fed. States of ) Moldova Mongolia Morocco Mozambique Myanmar Namibia Nepal Netherlands Netherlands Antilles New Caledonia New Zealand Nicaragua Niger Nigeria Norway Oman Pakistan Panama Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Romania Russian Federation Rwanda Samoa Sao Tome and Principe Saudi Arabia Senegal Seychelles Sierra Leone Singapore Slovak Republic

2000 CONNECTIVITY
0.2597 0.0070 0.1628 0.1092 0.0331 0.0542 0.0371 0.0429 0.0036 0.0021 0.0485 0.0047 0.6481 0.2039 0.1846 0.5527 0.0183 0.0008 0.0042 0.7445 0.0595 0.0086 0.1071 0.0677 0.0523 0.0467 0.1706 0.3787 0.2206 0.2182 0.0981 0.0883 0.0030 0.0376 0.0189 0.0893 0.0220 0.2265 0.0028 0.5985 0.2171

2000 ACCESS
.. 0.1371 0.3518 0.3639 0.0489 0.3391 0.0144 0.1758 0.2173 0.4251 0.2983 0.3452 0.6493 .. 0.2591 0.6688 0.2225 0.0549 0.2171 0.8672 0.3895 0.3508 0.3512 0.4360 0.4701 0.5018 0.4057 0.5260 0.5549 0.4491 0.3592 0.3553 0.3903 0.0227 0.0432 0.3932 0.1293 0.1527 0.1218 0.6515 0.4746

2001-2 POLICY
0.0000 0.3333 0.0000 0.7500 0.0000 0.2500 0.5000 0.2500 0.2500 0.0000 0.2500 0.2500 0.7500 0.0000 0.0000 0.8750 0.2500 0.6667 0.7500 1.0000 0.0000 0.8750 0.5000 0.2500 1.0000 1.0000 0.8750 1.0000 0.0000 0.0000 0.5000 0.5000 0.0000 0.0000 0.0000 0.5000 0.2500 0.0000 0.5000 1.0000 0.5000

2000 ICT DIFFUSION

.. 0.0720 0.2573 0.2366 0.0410 0.1966 0.0258 0.1093 0.1104 0.2136 0.1734 0.1749 0.6487 .. 0.2218 0.6107 0.1204 0.0278 0.1107 0.8059 0.2245 0.1797 0.2292 0.2519 0.2612 0.2743 0.2881 0.4523 0.3878 0.3336 0.2287 0.2218 0.1967 0.0301 0.0310 0.2413 0.0756 0.1896 0.0623 0.6250 0.3459

343

COUNTRY
Slovenia Solomon Islands Somalia South Africa Spain Sri Lanka St. Kitts and Nevis St. Lucia St. Vincent & the Grenadines Grenadines Sudan Suriname Swaziland Sweden Switzerland Syrian Arab Republic Taiwan, China Tajikistan Tanzania Thailand Togo Trinidad and Tobago Tunisia Turkey Turkmenistan Uganda Ukraine United Arab Emirates United Kingdom United States Uruguay Uzbekistan Vanuatu Venezuela Viet Nam Virgin Islands (U.S.) Yemen Yugoslavia Zambia Zimbabwe

2000 CONNECTIVITY
0.4314 0.0259 0.0022 0.1229 0.3861 0.0215 0.2454 0.1614 0.1132 0.0050 0.1071 0.0289 0.7143 0.6560 0.0356 .. 0.0132 0.0042 0.0508 0.0129 0.1272 0.0417 0.1689 0.0292 0.0044 0.0711 0.3614 0.5662 0.8073 0.1779 0.0251 0.0143 0.1202 0.0160 0.3326 0.0066 0.1124 0.0082 0.0189

2000 ACCESS
0.4884 0.0109 .. 0.3368 0.5101 0.4493 .. .. 0.0601 0.1933 0.4933 0.4242 0.7879 0.7601 0.2556 .. 0.3315 0.2539 0.3555 0.1971 0.4122 0.2674 0.3234 0.0119 0.2264 0.3390 0.6144 0.6871 0.8486 0.4354 0.0104 0.1747 0.4319 0.3146 .. 0.1575 .. 0.2632 0.3167

2001-2 POLICY
0.2500 0.0000 0.6667 0.3333 1.0000 0.5000 0.0000 0.0000 0.0000 0.7500 0.5000 0.2500 1.0000 1.0000 0.0000 1.0000 0.0000 0.2500 0.6250 0.2500 0.2500 0.2500 0.2500 0.3333 0.5000 0.0833 0.2500 1.0000 1.0000 0.1250 0.1667 0.0000 0.7500 0.2500 0.0000 0.2500 0.6667 0.2500 0.7500

2000 ICT DIFFUSION

0.4599 0.0184 .. 0.2298 0.4481 0.2354 .. .. 0.0867 0.0992 0.3002 0.2265 0.7511 0.7081 0.1456 .. 0.1724 0.1291 0.2031 0.1050 0.2697 0.1546 0.2462 0.0206 0.1154 0.2051 0.4879 0.6266 0.8279 0.3067 0.0178 0.0945 0.2760 0.1653 .. 0.0820 .. 0.1357 0.1678

344

2000 Index of ICT Diffusion by Ranking

345

7. APPENDI X 1 : I C T D E V E L O P M E N T I N D I C E S ( 1 9 9 9 )
COUNTRY
Afghanistan Albania Algeria American Samoa Andorra Angola Antigua and Barbuda Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas, The Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Cayman Islands Central African Republic Chad Chile

1999 CONNECTIVITY
0.0005 0.0152 0.0191 0.1053 0.3142 0.0027 0.2634 0.1334 0.0495 0.2142 0.5670 0.5094 0.0485 0.1706 0.2302 0.0019 0.2072 0.1011 0.4652 0.1139 0.0015 0.7095 0.0063 0.0441 0.0453 0.0708 0.0992 0.1870 0.1327 0.0019 0.0012 0.0038 0.0043 0.5290 0.0535 0.4434 0.0019 0.0010 0.1547

1999 ACCESS
.. 0.4687 0.4412 .. .. 0.3239 0.4164 0.5230 0.5895 .. 0.7067 0.6295 0.2728 .. 0.6184 0.3452 0.5943 0.5370 0.6248 0.5002 0.1383 .. .. 0.4338 .. 0.4744 0.4974 0.6845 0.5377 0.2664 0.1610 0.3443 0.4156 0.7600 0.4449 .. 0.1204 0.2742 0.5119

2001-2 POLICY
0.1667 0.5000 0.0000 0.0000 0.0000 0.6250 0.1667 1.0000 0.2500 0.0000 1.0000 1.0000 0.1667 0.0000 0.0000 0.0833 0.0000 0.3333 0.8750 0.0000 0.0000 0.0000 0.0000 0.2500 0.2500 0.2500 0.7500 0.0000 0.5000 0.2500 0.6667 0.3750 0.0000 1.0000 0.2500 0.0000 0.0000 0.0000 1.0000

1999 ICT DIFFUSION

.. 0.2420 0.2301 .. .. 0.1633 0.3399 0.3282 0.3195 .. 0.6368 0.5694 0.1607 .. 0.4243 0.1736 0.4008 0.3191 0.5450 0.3070 0.0699 .. .. 0.2389 .. 0.2726 0.2983 0.4358 0.3352 0.1342 0.0811 0.1741 0.2099 0.6445 0.2492 .. 0.0612 0.1376 0.3333

346

COUNTRY
China Colombia Comoros Congo, Dem. Rep. Congo, Rep. Costa Rica Cote dIvoire Croatia Cuba Cyprus Czech Republic Denmark Djibouti Dominica Dominican Republic Ecuador Egypt, Arab Rep. El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Faeroe Islands Fiji Finland France French Guiana French Polynesia Gabon Gambia, The Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guadelope Guam Guatemala Guinea

1999 CONNECTIVITY
0.0443 0.0831 0.0043 0.0002 0.0052 0.1261 0.0133 0.1669 0.0164 0.3524 0.2496 0.6801 0.0092 0.1599 0.0656 0.0486 0.0303 0.0543 0.0022 0.0028 0.3064 0.0013 0.3653 0.0659 0.7079 0.4686 0.1986 0.1434 0.0162 0.0123 0.0581 0.4561 0.0051 0.4049 0.3349 0.3709 0.1589 0.3114 0.2520 0.0329 0.0046

1999 ACCESS
0.4779 0.5041 0.3236 .. 0.2708 0.5477 0.3433 0.4114 0.5948 0.6504 0.5294 0.7193 0.4135 .. 0.3221 0.4930 0.3975 0.4429 0.3111 0.3766 0.5831 0.3368 .. 0.4826 0.7164 0.6186 .. 0.3184 .. 0.1933 .. 0.6626 0.4008 .. 0.5843 0.5911 0.4030 .. .. 0.4028 0.2793

2001-2 POLICY
0.8750 1.0000 0.0000 0.7500 0.6667 0.0000 0.2500 0.5000 0.2500 0.5000 1.0000 1.0000 0.0000 0.0000 0.7500 0.1250 0.2500 0.7500 0.0000 0.2500 0.7500 0.0000 0.0000 0.0000 1.0000 1.0000 0.0000 0.0000 0.3750 0.2500 0.7500 1.0000 0.5000 0.0000 1.0000 0.0000 0.0000 0.0000 0.0000 0.5000 0.2500

1999 ICT DIFFUSION

0.2611 0.2936 0.1639 .. 0.1380 0.3369 0.1783 0.2891 0.3056 0.5014 0.3895 0.6997 0.2114 .. 0.1939 0.2708 0.2139 0.2486 0.1567 0.1897 0.4447 0.1691 .. 0.2743 0.7122 0.5436 .. 0.2309 .. 0.1028 .. 0.5593 0.2029 .. 0.4596 0.4810 0.2809 .. .. 0.2178 0.1420

347

COUNTRY
Guinea-Bissau Guyana Honduras Hong Kong, China Hungary Iceland India Indonesia Iran, Islamic Rep. Iraq Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Kiribati Korea, Dem. Rep. Korea, Rep. Kuwait Kyrgyz Republic Lao PDR Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Macao, China Macedonia, FYR Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands

1999 CONNECTIVITY
0.0000 0.0371 0.0225 0.5811 0.2235 0.7582 0.0101 0.0171 0.0668 0.0117 0.4864 0.4723 0.4389 0.0988 0.5043 0.0444 0.0440 0.0054 0.0201 0.0271 0.4259 0.1972 0.0316 0.0041 0.1817 0.1521 0.0001 0.0009 0.0586 0.5712 0.1599 0.6224 0.2646 0.1050 0.0026 0.0023 0.1496 0.0371 0.0010 0.2966 0.0512

1999 ACCESS
0.1317 0.5174 0.4189 0.7311 0.5250 0.8554 0.4005 0.4740 0.4670 .. 0.6464 0.6338 0.6032 0.3302 0.6032 0.4973 .. 0.4394 .. .. 0.6783 0.6397 .. 0.3719 0.4987 0.6059 0.4631 .. .. .. 0.5193 0.7626 0.5214 0.3726 0.3827 0.3862 0.5580 0.6189 0.1391 0.6036 ..

2001-2 POLICY
0.7500 0.0000 0.0000 1.0000 0.5000 1.0000 1.0000 0.5000 0.0000 0.0000 1.0000 0.5000 1.0000 0.2500 1.0000 0.2500 0.6667 0.6250 0.0000 0.0000 0.8750 0.1667 0.3750 0.0000 0.5000 0.0000 0.0000 0.0000 0.0000 0.0000 0.2500 1.0000 0.0000 0.2500 0.7500 0.7500 0.6250 0.0000 0.5000 0.5000 0.0000

1999 ICT DIFFUSION

0.0659 0.2772 0.2207 0.6561 0.3743 0.8068 0.2053 0.2456 0.2669 .. 0.5664 0.5530 0.5211 0.2145 0.5538 0.2709 .. 0.2224 .. .. 0.5521 0.4184 .. 0.1880 0.3402 0.3790 0.2316 .. .. .. 0.3396 0.6925 0.3930 0.2388 0.1926 0.1943 0.3538 0.3280 0.0700 0.4501 ..

348

COUNTRY
Martinique Mauritania Mauritius Mexico Micronesia, Fed. Sts. Moldova Mongolia Morocco Mozambique Myanmar Namibia Nepal Netherlands Netherlands Antilles New Caledonia New Zealand Nicaragua Niger Nigeria Norway Oman Pakistan Panama Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Romania Russian Federation Rwanda Samoa Sao Tome and Principe Saudi Arabia Senegal Seychelles Sierra Leone Singapore Slovak Republic

1999 CONNECTIVITY
0.2903 0.0154 0.1463 0.0906 0.0065 0.0430 0.0216 0.0254 0.0028 0.0022 0.0413 0.0047 0.6004 0.2158 0.1567 0.5486 0.0166 0.0004 0.0037 0.7972 0.0590 0.0094 0.0962 0.0956 0.0524 0.0347 0.1526 0.3592 0.2374 0.2067 0.0872 0.0844 0.0015 0.0244 0.0180 0.0846 0.0165 0.2127 0.0015 0.5659 0.2164

1999 ACCESS
.. 0.3240 0.5201 0.4672 .. 0.5061 0.4127 0.3491 0.3165 0.2883 0.4610 0.3537 0.6616 .. 0.3108 0.6979 0.3940 0.0570 0.2159 0.8321 .. 0.3631 0.3613 0.4734 0.4719 0.5182 0.5373 0.5591 .. 0.6293 0.3902 0.5420 0.3992 0.4599 .. 0.5053 0.2883 .. 0.3163 0.7032 0.5508

2001-2 POLICY
0.0000 0.3333 0.0000 0.7500 0.0000 0.2500 0.5000 0.2500 0.2500 0.0000 0.2500 0.2500 0.7500 0.0000 0.0000 0.8750 0.2500 0.6667 0.7500 1.0000 0.0000 0.8750 0.5000 0.2500 1.0000 1.0000 0.8750 1.0000 0.0000 0.0000 0.5000 0.5000 0.0000 0.0000 0.0000 0.5000 0.2500 0.0000 0.5000 1.0000 0.5000

1999 ICT DIFFUSION

.. 0.1697 0.3332 0.2789 .. 0.2746 0.2171 0.1873 0.1597 0.1453 0.2511 0.1792 0.6310 .. 0.2338 0.6233 0.2053 0.0287 0.1098 0.8147 .. 0.1862 0.2287 0.2845 0.2622 0.2765 0.3450 0.4592 .. 0.4180 0.2387 0.3132 0.2003 0.2422 .. 0.2950 0.1524 .. 0.1589 0.6345 0.3836

349

COUNTRY
Slovenia Solomon Islands Somalia South Africa Spain Sri Lanka St. Kitts and Nevis St. Lucia St. Vincent and G. Sudan Suriname Swaziland Sweden Switzerland Syrian Arab Republic Taiwan Tajikistan Tanzania Thailand Togo Trinidad and Tobago Tunisia Turkey Turkmenistan Uganda Ukraine United Arab Emirates United Kingdom United States Uruguay Uzbekistan Vanuatu Venezuela, RB Vietnam Virgin Islands (U.S.) Yemen, Rep. Yugoslavia, Former Zambia Zimbabwe

1999 CONNECTIVITY
0.3690 0.0278 0.0006 0.1169 0.3132 0.0186 0.2351 0.2079 0.1143 0.0041 0.0879 0.0213 0.7204 0.6487 0.0363 0.6359 0.0136 0.0031 0.0514 0.0130 0.1064 0.0362 0.1469 0.0324 0.0029 0.0684 0.3119 0.5311 0.8140 0.1752 0.0264 0.0136 0.1144 0.0139 0.3410 0.0063 0.0962 0.0070 0.0177

1999 ACCESS
0.5338 0.2891 .. 0.4975 0.5856 0.4784 .. .. 0.3286 0.3634 .. 0.4471 0.5736 0.7045 0.4573 .. 0.6605 0.3983 0.4936 0.3537 0.3899 0.4506 0.4625 .. 0.3445 0.5185 0.6799 0.6276 0.8083 0.5036 0.3126 0.2630 0.4814 0.4578 .. 0.3628 .. 0.4221 0.3167

2001-2 POLICY
0.2500 0.0000 0.6667 0.3333 1.0000 0.5000 0.0000 0.0000 0.0000 0.7500 0.5000 0.2500 1.0000 1.0000 0.0000 1.0000 0.0000 0.2500 0.6250 0.2500 0.2500 0.2500 0.2500 0.3333 0.5000 0.0833 0.2500 1.0000 1.0000 0.1250 0.1667 0.0000 0.7500 0.2500 0.0000 0.2500 0.6667 0.2500 0.7500

1999 ICT DIFFUSION

0.4514 0.1584 .. 0.3072 0.4494 0.2485 .. .. 0.2215 0.1837 .. 0.2342 0.6470 0.6766 0.2468 .. 0.3371 0.2007 0.2725 0.1834 0.2481 0.2434 0.3047 .. 0.1737 0.2934 0.4959 0.5793 0.8112 0.3394 0.1695 0.1383 0.2979 0.2359 .. 0.1845 .. 0.2145 0.1672

350

1999 Index of ICT Diffusion by Ranking

351

7. APPENDIX 2: CORRE L AT I O N S O F C O M P O NE N T I N D I C E S
2001 Connectivity Access Policy 2000 Connectivity Access Policy 1999 Connectivity Access Policy 1998 Connectivity Access Policy 1995 Connectivity Access Policy Connectivity 1 Access 0.6863 1 Connectivity 1 Access 0.83326 1 Connectivity 1 Access 0.7757 1 Connectivity 1 Access 0.7639 1 Connectivity 1 Access 0.7846 1 Policy 0.5163 0.4247 1 Policy 0.4297 0.4426 1 Policy 0.4297 0.3971 1 Policy 0.4258 0.4558 1 Policy 0.4031 0.3744 1

352

7. APPENDIX 3: COMPARIS O N O F C O N N E C T I V I T Y / A C C E S S I N D I C E S

2001 Connectivity Versus Access Plot of Rankings

CU CONGA ACC (3) Honduras, Cuba, Indonesia. KU CONGA ACC (9) Suriname, Brazil, Panama, Brunei, Barbados, Peru, Philippines, Lebanon, Armenia. GA CONGA ACC (45) US, Iceland, Luxembourg, Sweden, Norway, Netherlands, Finland, Denmark, Switzerland, Australia, HK, Singapore, U.K., New Zealand, Ireland, Germany, Japan, Austria, Israel, Belgium, France, Canada, Italy, Slovenia, Korea, Portugal, Greece, UAE, Spain, Malta, Cyprus, Estonia, Greenland, Macao, Hungary, Bahrain, Slovak Rep., Croatia, Puerto Rico, Bahamas, Malaysia, Lithuania, Kuwait, Costa Rica. GA CONKU ACC (10) Czech Republic, Qatar, Latvia, Bulgaria, Chile, Poland, Mauritius, Uruguay, Turkey, Jamaica. Brazil, , Brunei, New Caledonia, Liberia. Honduras, , Panama, Gabon, Armenia, Nigeria,

CU CONKU ACC (16) Sri Lanka, Vietnam, Zimbabwe, Congo, Nicaragua, Eq. Guinea, Tajikistan, Pakistan, Gabon, Kenya, Cameroon, Lesotho, Nepal, Nigeria, Rwanda, Myanmar.

KU CONKU ACC (31) Trinidad & Tobago, Argentina, Macedonia, Mexico, Venezuela, S. Africa, Romania, Russia, Saudi Arabia, Dominican Rep., Jordan, Colombia, Botswana, Ukraine, Fiji, China, Paraguay, Oman, Thailand, El Salvador, Moldova, Ecuador, Guyana, Tunisia, Maldives, Namibia, Guatemala, Bolivia, Libya, Egypt, Swaziland. KU CONCU ACC (15) Belize, Belarus, Georgia, Cape Verde, Iran, Azerbaijan, Bosnia, Morocco, Marshall Islands, Albania, Samoa, Turkmenistan, Syria, Mongolia, Senegal.

CU CONCU ACC (40) Uzbekistan, Solomon Isls, Algeria, Gambia, Sao Tome, Kiribati, Ivory Coast, Togo, Vanuatu, India, Djibouti, Yemen, Benin, Mauritania, Zambia, Ghana, Sudan, Comoros, Cambodia, Tanzania, Uganda, Laos PDR, Mozambique, Madagascar, Guinea, Sierra Leone, Angola, Guinea-B, Burkina Faso, Eritrea, Malawi, Bhutan, Bangladesh, Mali, CAR, Burundi, Ethiopia, Chad, Liberia Niger.

GA CONCU ACC (3) Seychelles, French Polynesia, Grenada.

353

7. APPENDIX 4: COMPARISO N O F P O L I C Y / C O N N E C T I V I T Y I N D I C E S

2001 Connectivity Versus Policy Plot of Rankings

CU CONGA POL (16) Kazakhstan, Zimbabwe, Congo Rep., India, Pakistan, Kenya, Sudan, Nigeria, Madagascar, Angola, Guinea-Bissau, Malawi, Burundi, Congo DR, Niger, Somalia. KU CONGA POL (13) Argentina, Brazil, Yugoslavia, Mexico, Venezuela, Dominican Rep., Colombia, Georgia, China, Thailand, El Salvador, Peru, Philippines. GA CONGA POL (31) US, Iceland, Luxembourg, Sweden, Norway, Netherlands, Finland, Denmark, Switzerland, Australia, Hong Kong, Singapore, United Kingdom, New Zealand, Ireland, Germany, Japan, Austria, Belgium, France, Canada, Italy, Korea, Portugal, Czech Republic, Greece, Spain, Estonia, Malaysia, Chile, Poland. GA CONKU POL (16) Israel, Slovenia, UAE, Antigua and Barbuda, Malta, Cyprus, Hungary, Slovak Republic, Croatia, Latvia, Bulgaria, Lithuania, Kuwait, Uruguay, Turkey, Jamaica.

CU CONKU POL (27) Uzbekistan, Sri Lanka, Cuba, Indonesia, Gambia, Cote dIvoire, Vietnam, Togo, Nicaragua, Gabon, Yemen, Mauritania, Zambia, Ghana, Cambodia, Tanzania, Uganda, Mozambique, Nepal, Guinea, Kyrgyz Republic, Sierra Leone, Burkina Faso, Eritrea, Bangladesh, Mali, Afghanistan.

KU CONKU POL (30) Trinidad and Tobago, Suriname, Macedonia, South Africa, Panama, Romania, Belarus, Russian Federation, Saudi Arabia, Jordan, Botswana, Ukraine, Cape Verde, Paraguay, Azerbaijan, Moldova, Bosnia and Herzegovina, Morocco, Ecuador, Tunisia, Albania, Namibia, Guatemala, Bolivia, Turkmenistan, Armenia, Egypt, Mongolia, Swaziland, Senegal. KU CONCU POL (20) Belize, St. Lucia, Brunei, Faeroe Islands, St Vincent, Fiji, Barbados, Oman, Iran, New Caldeonia, Guyana, Virgin Islands, Marshall Islands, Maldives, Samoa, Lebanon, Libya, Syria, Cayman Islands, American Samoa.

CU CONCU POL (23) Korea DR, Honduras, Solomon Islands, Algeria, Sao Tome, Kiribati, Vanuatu, Eq. Guinea, Tajikistan, Iraq, Djibouti, Cameroon, Benin, Lesotho, Comoros, Lao PDR, Rwanda, Bhutan, CAR, Myanmar, Ethiopia, Chad, Liberia.

GA CONCU POL (18) Bermuda, Greenland, Aruba, Macau, Lichtenstein, Seychelles, Andorra, Bahrain, Qatar, Puerto Rico, Bahamas, Netherlands Antilles, French Polynesia, Mauritius, Dominica, Grenada, St. Kitts, Costa Rica.

354

7. A P P E N D I X 5 : D I G I TA L D I V I D E W O R K

According to Bridges.org, the international digital divide has typically been assessed by counts of hardware and connectivity (hosts, PCs, telephones, mobiles). We can analyse the distribution of these variables to investigate their evolution over time, to see whether uneven diffusion (UNDP) is in fact increasing or decreasing over time: Table ASummary Statistics
MEASURE 1995 values Maximum Minimum Median Average Med/av % Std.deviation SD/av Skewness Kurtosis Hosts 422 0 0.042 15.80 0.26% 50.17 3.17 4.949 29.627 PCs 328 0 17.24 59.92 28.8% 85.27 1.42 1.629 1.509 Telephones 737 0.7 93.8 178.45 0.75% 194.79 1.09 1.006 -0.211 Mobiles 227 0 1.34 20.25 6.6% 39.90 1.97 2.873 9.453

1998 values Maximum Minimum Median Average Med/av % Std.deviation SD/av Skewness Kurtosis

1,098 0 1.79 57.48 3.1% 153.54 2.68 4.220 20.466

447 0 26.85 83.23 32.2% 116.48 1.398 1.659 1.663

840 0.4 108.5 204.61 53% 213.09 1.04 0.9346 -0.2823

572 0 15.28 70.36 21.7% 110.99 1.58 2.068 4.180

355

MEASURE 1999 values Maximum Minimum Median Average Med/av % Std.deviation SD/av Skewness Kurtosis

Hosts 1,896 0 3.24 83.37 3.88% 224.64 2.69 4.541 26.036

PCs 503 0.38 33.82 93.41 36.2% 126.52 1.35 1.644 1.689

Telephones 857 0.3 128.1 218.44 58.6% 219.69 1.01 0.904 -0.280

Mobiles 651 0 35.27 116.96 30.2% 162.35 1.39 1.602 1.706

2000 values Maximum Minimum Median Average Med/av % Std.deviation SD/av Skewness Kurtosis

2,845 0 4.57 111.35 4.1% 301.27 2.71 5.2393 37.19

568 0.95 39.9 106.54 37.5% 144.37 1.36 1.6363 1.6697

915.5 0.4 114.6 213.4 57.7% 224.91 1.05 1.0764 0.2524

794 0 53.6 166.56 32.2% 222.88 1.338 1.4358 0.8855

2001 values Maximum Minimum Median Average Med/av % Std.deviation SD/av Skewness Kurtosis

3,714 0 5.48 146.95 3.73% 396.61 2.70 5.3373 37.7662

623 0.53 34.7 99.36 34.9% 142.91 1.44 1.9281 2.9673

888.6 0.4 112.4 206.5 54.4% 216.15 1.05 1.0337 0.1004

977.8 0 75.7 210.7 35.9% 265.96 1.26 1.2645 0.2833

356

Table BEvolution over time of statistics on average per capita variable distributions
Maximum Hosts PCs Telephones Mobiles Median/av% Hosts PCs Telephones Mobiles SD/average Hosts PCs Telephones Mobiles Skewness Hosts PCs Telephones Mobiles 5.3373 1.9281 1.0337 1.2645 5.2393 1.6363 1.0764 1.4358 4.541 1.644 0.904 1.602 4.220 1.659 0.9346 2.068 4.929 1.629 1.006 2.873 2.7 1.44 1.05 1.26 2.71 1.36 1.05 1.338 2.69 1.35 1.01 1.39 2.68 1.398 1.04 1.58 3.17 1.42 1.09 1.97 3.73% 34.9% 54.4% 35.9% 4.1% 37.5% 53.7% 32.2% 3.88% 36.2% 58.6% 30.2% 3.1% 32.2% 53% 21.7% 0.26% 28.8% 0.75% 6.6% 2001 3,714 623 888.6 977.77 2000 2,845 568 915.5 794 1999 1,896 503 857 651 1998 1,098 447 840 572 1995 422 328 737 227

Table CSummary Statistics of Connectivity Index

MEASURE Maximum Minimum Median Average Med/av % Std.deviation SD/average Skewness Kurtosis 2001 0.8005 (U.S.) 1.18x10-6 (Somalia) 0.0683 0.1532 44.6% 0.1888 1.23 1.484 1.276 2000 0.8073 (U.S.) 0.00027 (Congo DR) 0.0699 0.1630 42.9% 0.199 1.22 1.412 0.979 1999 0.814 (U.S.) 3.37x10-5 (Guinea-Bissau) 0.0668 0.1599 41.8% 0.1996 1.25 1.488 1.335 1998 0.8131 (Fin) 0.00028 (Congo DR) 0.0570 0.1465 38.9% 0.1896 1.29 1.675 2.236 1995 0.8368(Fin) 0.000362 (Chad) 0.0472 0.1245 37.9% 0.1741 1.40 2.003 3.841

357

7. APPEN D I X 6 : C O N N E C T I V I T Y I N D E X ( 2 0 0 1 )
COUNTRY
Afghanistan Albania Algeria American Samoa Andorra Angola Antigua and Barbuda Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Darussalam Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Cayman Islands Central African Rep. Chad

Hosts
0.0000 0.0002 0.0001 0.0321 0.0960 0.0000 0.0325 0.0334 0.0017 0.0239 0.3186 0.1087 0.0004 0.0002 0.0071 0.0000 0.0013 0.0009 0.0923 0.0039 0.0002 0.2193 0.0014 0.0005 0.0022 0.0022 0.0257 0.0700 0.0092 0.0002 0.0000 0.0001 0.0001 0.2509 0.0002 0.0362 0.0000 0.0000

PC
.. 0.0153 0.0115 .. .. 0.0020 .. 0.0857 0.0127 .. 0.8306 .. .. .. 0.2465 0.0029 0.1496 .. .. 0.2295 0.0027 0.8112 0.0030 0.0321 .. 0.0672 0.1005 0.1200 .. 0.0023 .. 0.0024 0.0063 .. .. .. 0.0030 0.0024

Tel
0.0015 0.0707 0.0686 .. 0.4390 0.0067 0.6447 0.2434 0.1572 0.4014 0.5854 0.5310 0.1203 0.4502 0.3002 0.0041 .. 0.3170 0.5564 0.1717 0.0104 1.0000 0.0074 0.0680 0.1246 .. 0.2441 .. 0.4169 0.0055 0.0035 0.0028 0.0075 0.7373 0.1607 .. 0.0030 0.0015

Mobile
0.0000 0.1138 0.0033 .. .. 0.0065 0.3930 0.1903 0.0067 0.5207 0.5907 0.8316 0.0783 0.2009 0.4701 0.0038 .. 0.0139 0.7663 0.1248 0.0198 0.2152 0.0000 0.0893 0.0587 0.1829 0.1704 .. 0.2015 0.0065 0.0031 0.0170 0.0209 0.3272 0.0738 .. 0.0030 0.0028

Connectivity
0.0005 0.0500 0.0209 0.0321 0.2675 0.0038 0.3567 0.1382 0.0446 0.3153 0.5814 0.4904 0.0664 0.2171 0.2560 0.0027 0.0754 0.1106 0.4717 0.1325 0.0083 0.5614 0.0029 0.0475 0.0618 0.0841 0.1352 0.0950 0.2092 0.0036 0.0022 0.0056 0.0087 0.4385 0.0782 0.0362 0.0022 0.0017

358

COUNTRY
Chile China Colombia Comoros Congo Congo (Democratic Republic of the) Costa Rica Cote dIvoire Croatia Cuba Cyprus Czech Republic Denmark Djibouti Dominica Dominican Rep. Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Faroe Islands Fiji Finland France French Polynesia Gabon Gambia Georgia Germany Ghana Greece Greenland Grenada Guatemala Guinea Guinea-Bissau Guyana

Hosts
0.0215 0.0002 0.0036 0.0000 0.0000 0.0000

PC
0.1356 0.0313 0.0676 0.0088 0.0062 ..

Tel
0.2706 0.1568 0.1919 0.0137 0.0080 0.0004

Mobile
0.3501 0.1153 0.0755 0.0000 0.0493 0.0029

Connectivity
0.1944 0.0759 0.0847 0.0056 0.0159 0.0011

0.0056 0.0005 0.0127 0.0002 0.0071 0.0566 0.2833 0.0000 0.0085 0.0132 0.0007 0.0001 0.0002 0.0000 0.0000 0.0998 0.0000 0.0929 0.0022 0.4612 0.0357 0.0196 0.0001 0.0002 0.0011 0.0797 0.0000 0.0363 0.1235 0.0003 0.0015 0.0001 0.0002 0.0001

0.2734 0.0098 0.1380 0.0314 0.3455

0.2586 0.0202 0.4110 0.0573 0.6193 0.4218

0.0774 0.0456 0.3856 0.0007 0.4067 0.6747 0.7583 0.0048 .. 0.1290 0.0682 0.0414 0.1279 0.0327 0.0000 0.4838 0.0004 .. 0.0945 0.7987 0.6179 0.2890 .. 0.0329 0.0576 0.7014 0.0100 0.7665 0.3042 0.0700 0.0992 0.0069 0.0000 0.0529

0.1538 0.0190 0.2368 0.0224 0.3447 0.3844 0.6203 0.0099 0.1721 0.0889 0.0558 0.0433 0.0671 0.0144 0.0031 0.3217 0.0019 0.0929 0.0795 0.6402 0.4596 0.1861 0.0096 0.0208 0.0817 0.4995 0.0074 0.3817 0.3172 0.1715 0.0485 0.0042 0.0037 0.0548

.. 0.0175 0.1367 .. 0.0374 0.0233 0.0351 0.0086 0.0029 0.2917 0.0019 .. 0.0976 0.6824 0.5404 .. 0.0191 0.0204 .. .. 0.0057 0.1300 .. 0.2227 0.0206 0.0062 .. 0.0484

0.8193 0.0174 0.3711 0.1243 0.1167 0.1083 0.1052 0.0165 0.0094 0.4116 0.0054 .. 0.1237 0.6183 0.6442 0.2497 .. 0.0295 0.1864 0.7175 0.0138 0.5941 0.5239 0.3931 0.0728 0.0035 0.0110 0.1179

359

COUNTRY
Honduras Hongkong Hungary Iceland India Indonesia Iran (Islamic Rep. of ) Iraq Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Kiribati Korea, Dem. Rep. Korea (Rep. of ) Kuwait Kyrgyzstan Lao P.D.R. Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Macau Macedonia, FYR Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Mauritania Mauritius

Hosts
0.0001 0.1500 0.0455 0.5231 0.0002 0.0006 0.0001 0.0000 0.0898 0.0627 0.0319 0.0015 0.1505 0.0012 0.0018 0.0002 0.0007 .. 0.0252 0.0047 0.0025 0.0001 0.0280 0.0054 0.0001 0.0000 0.0000 0.2909 0.0257 0.0850 0.0011 0.0034 0.0000 0.0000 0.0088 0.0000 0.0000 0.0600 0.0002 0.0001 0.0072

PC
0.0195 0.6000 0.1620 0.6850 0.0094 0.0171 0.1013 .. 0.6272 0.4164 0.3157 0.0804 0.5601 0.0541 .. 0.0090 0.0382 .. 0.4095 0.2119 .. 0.0048 0.2404 0.0904 .. .. .. .. 0.1132 0.8355 0.2864 .. 0.0039 0.0018 0.2129 0.0321 0.0019 0.3690 0.1085 0.0158 0.1784

Tel
0.0530 0.6347 0.4233 0.7621 0.0381 0.0415 0.1578 0.0322 0.5449 0.5652 0.5344 0.2220 0.6717 0.1471 .. 0.0113 .. 0.0552 0.5433 0.2697

Mobile
0.0370 0.8378 0.5124 0.8556 0.0057 0.0252 0.0213 0.0000 0.7455 0.8716 0.8661 0.2755 0.5847 0.1510 0.0370 0.0163 .. 0.0000 0.6311 0.2538 0.0055

Connectivity
0.0274 0.5556 0.2858 0.7065 0.0134 0.0211 0.0701 0.0107 0.5018 0.4790 0.4370 0.1449 0.4918 0.0883 0.0194 0.0092 0.0195 0.0276 0.4023 0.1850 0.0040 0.0053 0.2216 0.0479 0.0082 0.0010 0.0455 0.2909 0.1871 0.7028 0.2934 0.1372 0.0043 0.0030 0.1949 0.0493 0.0027 0.3470 0.0523 0.0080 0.1856

0.0110 0.3390 .. .. 0.0025 0.1269 .. 0.3513 0.8907 0.4426 0.2966 0.0040 0.0053 0.2356 0.1022 0.0048 0.5968 0.0909 .. 0.2949

0.0056 0.2792 .. 0.0164 0.0007 0.0095 .. 0.2584 1.0000 0.4434 0.1117 0.0092 0.0049 0.3221 0.0629 0.0040 0.3623 0.0097 .. 0.2621

360

COUNTRY
Mexico Micronesia (Fed. States of ) Moldova Mongolia Morocco Mozambique Myanmar Namibia Nepal Netherlands Netherlands Antilles New Caledonia New Zealand Nicaragua Niger Nigeria Norway Oman Pakistan Panama Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Romania Russia Rwanda Saint Kitts and Nevis Saint Lucia Samoa Sao Tome and Principe Saudi Arabia Senegal Seychelles Sierra Leone Singapore

Hosts
0.0246 0.0140 0.0011 0.0002 0.0002 0.0000 0.0000 0.0070 0.0002 0.4449 0.0015 0.0577 0.2887 0.0011 0.0000 0.0000 0.1831 0.0048 0.0002 0.0073 0.0013 0.0014 0.0011 0.0342 0.0662 0.0011 0.0006 0.0056 0.0066 0.0004 0.0002 0.0003 0.0906 0.0178 0.0015 .. 0.0087 0.0002 0.1298

PC
0.1104 .. 0.0262 0.0220 0.0211 0.0060 0.0018 0.0584 0.0054 0.6958 .. .. 0.6327 0.0154 0.0009 0.0110 0.8232 0.0521 0.0066 0.0609 0.0228 0.0770 0.0354 0.1374 0.1937 .. 0.2794 0.0574 0.0811 .. 0.3364 0.2472 0.0121 .. 0.1069 0.0299 0.2367 .. 0.8212

Tel
0.1517 0.0894 0.1776 0.0541 0.0441 0.0054 0.0065 0.0739 0.0142 0.7065 0.4198 .. 0.5419 .. 0.0022 0.0048 0.8180 0.1010 0.0264 0.1669 0.0577 0.0872 0.0452 0.3326 0.4901 0.3786 0.3278 0.2058 0.2777 0.0030 .. .. 0.0708 0.0437 0.1730 0.0276 0.2954 0.0056 0.5338

Mobile
0.2052 0.0000 0.0501 0.0779 0.1604 0.0093 0.0003 0.0572 0.0007 0.7640 .. .. 0.6491 0.0306 0.0002 0.0029 0.8516 0.1266 0.0056 0.2117 0.2087 0.0606 0.1401 0.2664 0.8132 0.3134 0.3181 0.1763 0.0393 0.0084 .. .. 0.0193 0.0000 0.1230 0.0414 0.5539 0.0060 0.7117

Connectivity
0.1230 0.0345 0.0638 0.0385 0.0564 0.0052 0.0022 0.0491 0.0051 0.6528 0.2106 0.0577 0.5281 0.0157 0.0008 0.0047 0.6690 0.0711 0.0097 0.1117 0.0726 0.0565 0.0555 0.1927 0.3908 0.2310 0.2315 0.1113 0.1012 0.0039 0.1683 0.1238 0.0482 0.0205 0.1011 0.0330 0.2737 0.0039 0.5491

361

COUNTRY
Slovak Republic Slovenia Solomon Islands Somalia South Africa Spain Sri Lanka St. Vincent and the Grenadines Sudan Suriname Swaziland Sweden Switzerland Syria Taiwan, China Tajikistan Tanzania Thailand Togo Trinidad and Tobago Tunisia Turkey Turkmenistan Uganda Ukraine United Arab Emirates United Kingdom United States Uruguay Uzbekistan Vanuatu Venezuela Viet Nam Virgin Islands (U.S.) Yemen Yugoslavia Zambia Zimbabwe

Hosts
0.0362 0.0401 0.0023 0.0000 0.0147 0.0363 0.0003 0.0001 0.0000 0.0004 0.0033 0.2241 0.1981 0.0000 .. 0.0001 0.0001 0.0030 0.0001 0.0142 0.0001 0.0042 0.0009 0.0000 0.0032 0.0777 0.1009 1.0000 0.0568 0.0000 0.0048 0.0025 0.0000 0.0543 0.0000 0.0040 0.0003 0.0007

PC
0.2378 0.4450 0.0764 .. 0.1100 0.2736 0.0126 0.1832 0.0058 .. .. 0.9092 .. 0.0261 .. .. 0.0054 0.0429 0.0345 0.1112 0.0386 0.0641 .. 0.0047 0.0301 0.2543 0.5935 1.0000 0.1768 .. .. 0.0848 0.0162 .. 0.0031 0.0381 0.0113 0.0206

Tel
0.3242 0.4533 0.0180 .. 0.1277 0.4913 0.0488 .. 0.0160 0.2078 0.0384 0.8390 0.8136 0.1225 .. 0.0409 0.0046 0.1057 0.0116 0.2699 0.1243 0.3145 0.0902 0.0030 0.2445 0.4466 0.6561 0.7478 0.3184 0.0741 0.0377 0.1260 0.0434 .. 0.0249 0.2610 0.0090 0.0222

Mobile
0.4065 0.7808 0.0021 .. 0.2148 0.6788 0.0385 .. 0.0034 0.2052 0.0720 0.7951 0.7455 0.0123 .. 0.0003 0.0121 0.1214 0.0209 0.1773 0.0416 0.3024 .. 0.0137 0.0463 0.7359 0.8078 0.4543 0.1582 0.0025 0.0018 0.2695 0.0162 .. 0.0081 0.1939 0.0094 0.0262

Connectivity
0.2511 0.4298 0.0247 0.0000 0.1168 0.3700 0.0251 0.0916 0.0063 0.1378 0.0379 0.6918 0.5857 0.0402 .. 0.0138 0.0056 0.0683 0.0168 0.1432 0.0512 0.1713 0.0456 0.0054 0.0810 0.3786 0.5396 0.8005 0.1776 0.0256 0.0147 0.1207 0.0189 0.0543 0.0090 0.1243 0.0075 0.0174

362

7. APPE N D I X 6 : C O N N E C T I V IT Y I N D E X ( 2 0 0 0 )
COUNTRY
Afghanistan Albania Algeria American Samoa Andorra Angola Antigua and Barbuda Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Darussalam Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Cayman Islands Central African Rep. Chad

Hosts
0.0000 0.0002 0.0000 0.0639 0.0675 0.0000 0.0170 0.0257 0.0025 0.0101 0.2968 0.2102 0.0007 0.0003 0.0003 0.0000 0.0013 0.0007 0.1030 0.0046 0.0000 0.1898 0.0013 0.0006 0.0020 0.0054 0.0181 0.0496 0.0081 0.0001 0.0000 0.0001 0.0001 0.2702 0.0002 0.0520 0.0000 0.0000

PC
.. 0.0140 0.0116 .. .. 0.0020 .. 0.0903 0.0116 .. 0.8273 0.4942 .. .. 0.2612 0.0026 0.1447 .. 0.6007 0.2332 0.0028 0.8382 0.0030 0.0296 .. 0.0685 0.0877 0.1232 0.0800 0.0023 .. 0.0020 0.0059 0.6864 .. .. 0.0028 0.0025

Tel
0.0015 0.0532 0.0635 0.2309 0.4348 0.0058 0.6451 0.2329 0.1538 0.4138 0.5736 0.5182 0.1088 0.4106 0.2919 0.0037 0.5057 0.2951 0.5394 0.1726 0.0090 0.9728 0.0070 0.0661 0.1123 0.1065 0.1982 0.2678 0.3960 0.0050 0.0034 0.0026 0.0070 0.7388 0.1398 1.0000 0.0028 0.0014

Mobile
0.0000 0.0120 0.0036 .. 0.3449 0.0025 0.4272 0.2057 0.0058 0.1878 0.5634 0.9745 0.0673 0.1305 0.4050 0.0026 0.1340 0.0061 0.6556 0.0935 0.0111 .. 0.0000 0.0917 0.0373 0.1634 0.1714 0.3644 0.1169 0.0028 0.0032 0.0125 0.0125 0.3583 0.0582 0.3524 0.0017 0.0009

Connectivity
0.0005 0.0199 0.0197 0.1474 0.2824 0.0026 0.3631 0.1386 0.0434 0.2039 0.5653 0.5493 0.0589 0.1804 0.2396 0.0022 0.1964 0.1006 0.4747 0.1260 0.0057 0.6670 0.0028 0.0470 0.0505 0.0859 0.1189 0.2013 0.1503 0.0025 0.0022 0.0043 0.0064 0.5134 0.0661 0.4682 0.0018 0.0012

363

COUNTRY
Chile China Colombia Comoros Congo Congo (Democratic Republic of the) Costa Rica Cote dIvoire Croatia Cuba Cyprus Czech Republic Denmark Djibouti Dominica Dominican Republic Ecuador Egypt, Arab Rep. El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Faeroe Islands Fiji Finland France French Guiana French Polynesia Gabon Gambia, The Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guadelope

Hosts
0.0173 0.0002 0.0039 0.0002 0.0000 0.0000

PC
0.1457 0.0284 0.0627 0.0075 0.0064 ..

Tel
0.2433 0.1241 0.1866 0.0108 0.0080 0.0004

Mobile
0.2816 0.0842 0.0675 0.0000 0.0292 0.0004

Connectivity
0.1720 0.0592 0.0802 0.0046 0.0109 0.0003

0.0064 0.0001 0.0125 0.0002 0.0359 0.0545 0.2207 0.0000 0.0093 0.0033 0.0001 0.0001 0.0003 0.0000 0.0000 0.1032 0.0000 0.1179 0.0024 0.3598 0.0666 0.0028 0.0227 0.0001 0.0000 0.0012 0.0875 0.0000 0.1383 0.0366 0.1551 0.0001 0.0047

0.2623 0.0099 0.1365 0.0188 0.3367 0.2141 0.7605 0.0181 0.1371 .. 0.0383 0.0207 0.0336 0.0077 0.0030 0.2777 0.0017 .. 0.0973 0.6973 0.5322 0.2669 .. 0.0172 0.0203 .. 0.5929 0.0055 0.9921 0.1244 .. 0.2258 0.3700

0.2440 0.0180 0.4040 0.0477 0.6133 0.4117 0.7874 0.0168 0.3514 0.1167 0.1093 0.0882 0.0992 0.0146 0.0091 0.4098 0.0040 0.5895 0.1160 0.6015 0.6267 .. 0.2411 0.0346 0.0279 0.1572 0.6688 0.0134 0.9384 0.5826 0.5087 0.3663 ..

0.0642 0.0354 0.2795 0.0007 0.3508 0.5328 0.7962 0.0005 0.0214 0.1061 0.0480 0.0252 0.1419 0.0138 0.0000 0.5034 0.0004 0.4623 0.0851 0.9079 0.6176 0.3044 0.2153 0.1228 0.0054 0.0444 0.7401 0.0085 0.2632 0.7041 0.3579 0.0579 0.4999

0.1443 0.0158 0.2081 0.0169 0.3341 0.3033 0.6412 0.0088 0.1298 0.0754 0.0489 0.0336 0.0688 0.0090 0.0030 0.3235 0.0015 0.3899 0.0752 0.6416 0.4608 0.1913 0.1597 0.0437 0.0134 0.0676 0.5223 0.0068 0.5830 0.3619 0.3405 0.1625 0.2915

364

COUNTRY
Guam Guatemala Guinea Guinea-Bissau Guyana Honduras Hong Kong, China Hungary Iceland India Indonesia Iran, Islamic Rep. Iraq Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Kiribati Dem. Peoples Rep. of Korea Korea, Rep. Kuwait Kyrgyz Republic Lao PDR Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Macao, China Macedonia, FYR Madagascar Malawi

Hosts
0.0030 0.0017 0.0001 0.0001 0.0003 0.0001 0.1173 0.0368 0.5022 0.0001 0.0004 0.0001 0.0000 0.1022 0.1049 0.0623 0.0020 0.1284 0.0006 0.0016 0.0005 0.0010 .. 0.0000 0.0062 0.0029 0.0000 0.0289 0.0000 0.0002 0.0000 0.0000 0.4334 0.0169 0.0951 0.0014 0.0027 0.0001 0.0000

PC
.. 0.0201 0.0063 .. 0.0509 0.0192 0.6052 0.1535 0.6929 0.0080 0.0174 0.1001 .. 0.6291 0.4631 0.3150 0.0819 0.5537 0.0537 .. 0.0086 0.0318 .. 0.4236 0.2297 .. 0.0047 0.2471 0.0880 .. .. .. .. 0.1142 0.8055 0.2772 .. 0.0039 0.0019

Tel
.. 0.0651 0.0033 0.0101 0.0982 0.0509 0.6251 0.4162 0.7504 0.0351 0.0342 0.1473 0.0321 0.4567 0.5463 0.5156 0.2170 0.6389 0.1378 0.1239 0.0115 0.0442 0.0540 0.5125 0.2665 0.0835 0.0085 0.3315 0.2129 0.0119 0.0025 0.1249 0.6717 0.3510 0.8277 0.4347 0.2724 0.0038 0.0043

Mobile
.. 0.0933 0.0065 0.0000 0.0083 0.0305 1.0000 0.3887 0.9717 0.0045 0.0217 0.0172 0.0000 0.8245 0.9173 0.9247 0.1794 0.6617 0.0997 0.0154 0.0052 0.0060 0.0000 0.7225 0.3131 0.0023 0.0030 0.2088 0.2676 0.0134 0.0006 0.0095 0.5688 0.1785 0.8743 0.3998 0.0717 0.0050 0.0055

Connectivity
0.0030 0.0450 0.0040 0.0034 0.0394 0.0251 0.5869 0.2488 0.7293 0.0119 0.0184 0.0662 0.0107 0.5031 0.5079 0.4544 0.1201 0.4957 0.0730 0.0470 0.0065 0.0207 0.0270 0.4147 0.2039 0.0296 0.0040 0.2041 0.1421 0.0085 0.0011 0.0448 0.5580 0.1652 0.6506 0.2783 0.1156 0.0032 0.0029

365

COUNTRY
Malaysia Maldives Mali Malta Marshall Islands Martinique Mauritania Mauritius Mexico Micronesia (Fed. States of ) Moldova Mongolia Morocco Mozambique Myanmar Namibia Nepal Netherlands Netherlands Antilles New Caledonia New Zealand Nicaragua Niger Nigeria Norway Oman Pakistan Panama Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Romania Russian Federation Rwanda Samoa

Hosts
0.0108 0.0032 0.0000 0.0595 0.0001 0.0032 0.0002 0.0099 0.0199 0.0135 0.0014 0.0002 0.0002 0.0000 0.0000 0.0065 0.0002 0.3598 0.0018 0.0029 0.3211 0.0010 0.0001 0.0000 0.3561 0.0040 0.0002 0.0186 0.0008 0.0015 0.0009 0.0309 0.0218 0.0014 0.0140 0.0065 0.0079 0.0002 0.0557

PC
0.1900 0.0333 0.0020 0.3609 0.1101 0.2294 0.0165 0.1818 0.1014 .. 0.0260 0.0208 0.0206 0.0058 0.0019 0.0601 0.0053 0.6986 .. .. 0.6426 0.0156 0.0008 0.0116 0.8660 0.0554 0.0073 0.0647 0.0224 0.0720 0.0344 0.1217 0.1844 .. 0.2800 0.0559 0.0762 .. 0.0122

Tel
0.2278 0.0917 0.0038 0.5720 0.0854 0.2738 0.0078 0.2642 0.1362 0.0859 0.1485 0.0507 0.0521 0.0051 0.0061 0.0685 0.0127 0.6802 0.4059 0.2588 0.5277 0.0342 0.0020 0.0047 0.8070 0.0970 0.0236 0.1641 0.0595 0.0731 0.0442 0.3097 0.4704 0.3625 0.3095 0.1898 0.2408 0.0025 0.0587

Mobile
0.2812 0.0331 0.0012 0.3696 0.0110 0.5324 0.0034 0.1952 0.1793 0.0000 0.0408 0.0769 0.0987 0.0035 0.0004 0.0588 0.0006 0.8538 .. 0.2922 0.7193 0.0224 0.0002 0.0003 0.9490 0.0815 0.0031 0.1810 0.1881 0.0625 0.1074 0.2201 0.8380 0.2980 0.2692 0.1403 0.0282 0.0065 0.0238

Connectivity
0.1775 0.0403 0.0017 0.3405 0.0517 0.2597 0.0070 0.1628 0.1092 0.0331 0.0542 0.0371 0.0429 0.0036 0.0021 0.0485 0.0047 0.6481 0.2039 0.1846 0.5527 0.0183 0.0008 0.0042 0.7445 0.0595 0.0086 0.1071 0.0677 0.0523 0.0467 0.1706 0.3787 0.2206 0.2182 0.0981 0.0883 0.0030 0.0376

366

COUNTRY
Sao Tome and Principe Saudi Arabia Senegal Seychelles Sierra Leone Singapore Slovak Republic Slovenia Solomon Islands Somalia South Africa Spain Sri Lanka St. Kitts and Nevis St. Lucia St. Vincent and the Grenadines Sudan Suriname Swaziland Sweden Switzerland Syrian Arab Republic Taiwan, China Tajikistan Tanzania Thailand Togo Trinidad and Tobago Tunisia Turkey Turkmenistan Uganda Ukraine United Arab Emirates United Kingdom United States Uruguay

Hosts
0.0200 0.0006 0.0007 0.0004 0.0002 0.1538 0.0247 0.0387 0.0029 0.0000 0.0152 0.0401 0.0004 0.0004 0.0008 0.0001 0.0000 0.0001 0.0037 0.2368 0.1287 0.0000 .. 0.0002 0.0001 0.0036 0.0001 0.0179 0.0000 0.0037 0.0009 0.0000 0.0025 0.0580 0.0993 1.0000 0.0570

PC
.. 0.1124 0.0299 0.2407 .. 0.8498 0.2411 0.4850 0.0786 .. 0.1097 0.2557 0.0125 0.3201 0.2619 0.1864 0.0057 .. .. 0.8953 0.8832 0.0272 .. .. 0.0050 0.0412 0.0272 0.1087 0.0407 0.0660 .. 0.0045 0.0316 0.2700 0.5978 1.0000 0.1845

Tel
0.0366 0.1592 0.0239 0.2585 0.0047 0.5292 0.3436 0.4316 0.0188 0.0044 0.1251 0.4681 0.0443 0.6221 0.3614 0.2402 0.0136 0.1972 0.0380 0.8179 0.7975 0.1130 .. 0.0392 0.0054 0.0972 0.0103 0.2524 0.1103 0.3014 0.0840 0.0029 0.2296 0.4276 0.6467 0.7425 0.3041

Mobile
0.0000 0.0852 0.0335 0.4066 0.0034 0.8610 0.2589 0.7701 0.0032 .. 0.2416 0.7805 0.0286 0.0393 0.0213 0.0262 0.0009 0.1239 0.0449 0.9071 0.8146 0.0023 .. 0.0002 0.0065 0.0613 0.0139 0.1296 0.0159 0.3047 0.0025 0.0102 0.0208 0.6901 0.9210 0.4868 0.1661

Connectivity
0.0189 0.0893 0.0220 0.2265 0.0028 0.5985 0.2171 0.4314 0.0259 0.0022 0.1229 0.3861 0.0215 0.2454 0.1614 0.1132 0.0050 0.1071 0.0289 0.7143 0.6560 0.0356 .. 0.0132 0.0042 0.0508 0.0129 0.1272 0.0417 0.1689 0.0292 0.0044 0.0711 0.3614 0.5662 0.8073 0.1779

367

COUNTRY
Uzbekistan Vanuatu Venezuela Viet Nam Virgin Islands (U.S.) Yemen Yugoslavia Zambia Zimbabwe

Hosts
0.0000 0.0037 0.0023 0.0000 0.0099 0.0000 0.0050 0.0003 0.0008

PC
.. .. 0.0801 0.0158 .. 0.0034 0.0400 0.0118 0.0223

Tel
0.0727 0.0369 0.1146 0.0355 0.6233 0.0206 0.2491 0.0087 0.0216

Mobile
0.0027 0.0023 0.2838 0.0127 0.3645 0.0022 0.1556 0.0119 0.0308

Connectivity
0.0251 0.0143 0.1202 0.0160 0.3326 0.0066 0.1124 0.0082 0.0189

368

7. APPE N D I X 6 : C O N N E C T I V IT Y I N D E X ( 1 9 9 9 )
COUNTRY
Afghanistan Albania Algeria American Samoa Andorra Angola Antigua and Barbuda Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas, The Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Cayman Islands Central African Republic

Hosts
0.0000 0.0004 0.0000 0.0134 0.0364 0.0000 0.0184 0.0205 0.0032 0.0192 0.3037 0.1713 0.0004 0.0001 0.0094 0.0001 0.0013 0.0005 0.1749 0.0066 0.0000 0.2382 0.0014 0.0006 0.0031 0.0077 0.0140 0.0229 0.0105 0.0001 0.0000 0.0001 0.0000 0.2888 0.0000 0.0620 0.0000

PC
.. 0.0127 0.0120 .. .. 0.0019 .. 0.0924 0.0105 .. 0.8299 0.5166 .. .. 0.2948 0.0019 0.1567 .. 0.6220 0.2244 0.0029 0.8902 0.0029 0.0244 .. 0.0652 0.0721 0.1236 0.0544 0.0021 .. 0.0020 0.0055 0.7175 .. .. 0.0027

Tel
0.0015 0.0425 0.0605 0.2467 0.5219 0.0062 0.5700 0.2346 0.1811 0.4339 0.6072 0.5510 0.1106 0.4304 0.2900 0.0040 0.4981 0.2995 0.5860 0.1815 .. 1.0000 0.0209 0.0720 0.1118 0.0896 0.1735 0.2867 0.3992 0.0047 0.0033 0.0026 0.0075 0.7634 0.1308 0.9189 0.0031

Mobile
0.0000 0.0054 0.0037 0.0558 0.3844 0.0029 0.2019 0.1861 0.0033 0.1896 0.5271 0.7986 0.0346 0.0813 0.3266 0.0017 0.1728 0.0035 0.4781 0.0429 .. .. 0.0000 0.0793 0.0210 0.1208 0.1372 0.3149 0.0668 0.0007 0.0002 0.0107 .. 0.3462 0.0297 0.3495 0.0018

Connectivity
0.0005 0.0152 0.0191 0.1053 0.3142 0.0027 0.2634 0.1334 0.0495 0.2142 0.5670 0.5094 0.0485 0.1706 0.2302 0.0019 0.2072 0.1011 0.4652 0.1139 0.0015 0.7095 0.0063 0.0441 0.0453 0.0708 0.0992 0.1870 0.1327 0.0019 0.0012 0.0038 0.0043 0.5290 0.0535 0.4434 0.0019

369

COUNTRY
Chad Chile China Colombia Comoros Congo, Dem. Rep. Congo, Rep. Costa Rica Cote dIvoire Croatia Cuba Cyprus Czech Republic Denmark Djibouti Dominica Dominican Republic Ecuador Egypt, Arab Rep. El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Faeroe Islands Fiji Finland France French Guiana French Polynesia Gabon Gambia, The Georgia Germany Ghana Gibraltar Greece Greenland

Hosts
0.0000 0.0141 0.0003 0.0052 0.0003 0.0000 0.0000 0.0100 0.0002 0.0165 0.0001 0.0422 0.0627 0.3363 0.0003 0.0135 0.0042 0.0008 0.0002 0.0008 0.0000 0.0000 0.1125 0.0000 0.0835 0.0024 0.4716 0.1102 0.0041 0.0199 0.0000 0.0000 0.0009 0.1051 0.0000 0.1000 0.0374 0.2100

PC
0.0026 0.1324 0.0244 0.0673 0.0058 .. 0.0068 0.2023 0.0101 0.1282 0.0196 0.3327 0.2127 0.8248 0.0194 0.1408 .. 0.0401 0.0224 0.0323 0.0045 .. 0.2750 0.0015 .. 0.0989 0.7164 0.5283 0.2872 .. 0.0166 0.0157 .. 0.5916 0.0053 0.3735 0.1202 ..

Tel
0.0015 0.2414 0.1001 0.1869 0.0112 0.0003 0.0089 0.2380 0.0175 0.4256 0.0453 0.7351 0.4326 0.7986 0.0163 0.3252 0.1144 0.1062 0.0875 0.0887 .. 0.0085 0.4168 0.0036 0.6499 0.1179 0.6437 0.6786 0.3297 0.2638 0.0370 0.0268 0.1435 0.6885 0.0093 0.9355 0.6160 0.5329

Mobile
0.0000 0.2311 0.0526 0.0729 0.0000 .. .. 0.0541 0.0252 0.0973 0.0007 0.2996 0.2902 0.7607 0.0007 .. 0.0783 0.0474 0.0111 0.0954 .. 0.0000 0.4212 0.0002 0.3624 0.0446 1.0000 0.5574 0.1735 0.1466 0.0114 0.0064 0.0298 0.4392 0.0057 0.2104 0.5659 0.3699

Connectivity
0.0010 0.1547 0.0443 0.0831 0.0043 0.0002 0.0052 0.1261 0.0133 0.1669 0.0164 0.3524 0.2496 0.6801 0.0092 0.1599 0.0656 0.0486 0.0303 0.0543 0.0022 0.0028 0.3064 0.0013 0.3653 0.0659 0.7079 0.4686 0.1986 0.1434 0.0162 0.0123 0.0581 0.4561 0.0051 0.4049 0.3349 0.3709

370

COUNTRY
Grenada Guadelope Guam Guatemala Guinea Guinea-Bissau Guyana Honduras Hong Kong, China Hungary Iceland India Indonesia Iran, Islamic Rep. Iraq Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Kiribati Korea, Dem. Rep. Korea, Rep. Kuwait Kyrgyz Republic Lao PDR Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Macao, China Macedonia, FYR

Hosts
0.0002 0.0068 0.0041 0.0008 0.0000 0.0001 0.0001 0.0001 0.0899 0.0630 0.5686 0.0001 0.0005 0.0000 0.0000 0.0896 0.1334 0.0276 0.0008 0.1096 0.0007 0.0012 0.0001 0.0027 0.0000 0.0524 0.0116 0.0016 0.0000 0.0409 0.0073 0.0001 0.0000 0.0000 0.5508 0.0202 0.1175 0.0019 0.0058

PC
0.2347 0.3986 .. 0.0197 0.0066 .. 0.0551 0.0191 0.5899 0.1489 0.7178 0.0066 0.0180 0.1005 .. 0.6237 0.4577 0.3803 0.0856 0.5693 0.0374 .. 0.0083 0.0243 .. 0.3651 0.2476 .. 0.0046 0.1633 0.0868 .. .. .. .. 0.1182 0.7836 0.2714 ..

Tel
0.3676 0.5213 0.5505 0.0642 0.0069 .. 0.0873 0.0516 0.6715 0.4327 0.7901 0.0309 0.0338 0.1556 0.0350 0.5573 0.5498 0.5392 0.2220 0.6504 0.1017 0.1261 0.0120 0.0497 0.0541 0.5107 0.2802 0.0925 0.0077 0.3497 0.2343 .. 0.0026 0.1172 0.7107 0.3634 0.8450 0.4759 0.2729

Mobile
0.0331 0.3188 0.2012 0.0468 0.0048 0.0000 0.0057 0.0193 0.9733 0.2495 0.9564 0.0029 0.0162 0.0109 0.0000 0.6752 0.7481 0.8084 0.0868 0.6881 0.0380 0.0047 0.0012 0.0038 .. 0.7755 0.2492 0.0008 .. 0.1729 0.2800 .. 0.0000 .. 0.4521 0.1377 0.7436 0.3092 0.0362

Connectivity
0.1589 0.3114 0.2520 0.0329 0.0046 0.0000 0.0371 0.0225 0.5811 0.2235 0.7582 0.0101 0.0171 0.0668 0.0117 0.4864 0.4723 0.4389 0.0988 0.5043 0.0444 0.0440 0.0054 0.0201 0.0271 0.4259 0.1972 0.0316 0.0041 0.1817 0.1521 0.0001 0.0009 0.0586 0.5712 0.1599 0.6224 0.2646 0.1050

371

COUNTRY
Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Martinique Mauritania Mauritius Mexico Micronesia, Fed. Sts. Moldova Mongolia Morocco Mozambique Myanmar Namibia Nepal Netherlands Netherlands Antilles New Caledonia New Zealand Nicaragua Niger Nigeria Norway Oman Pakistan Panama Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Romania Russian Federation

Hosts
0.0001 0.0000 0.0143 0.0043 0.0000 0.0816 0.0002 0.0046 0.0001 0.0038 0.0219 0.0130 0.0016 0.0001 0.0004 0.0000 0.0000 0.0062 0.0001 0.3203 0.0024 0.0039 0.3814 0.0011 0.0000 0.0000 0.5203 0.0015 0.0002 0.0023 0.0016 0.0019 0.0009 0.0234 0.0410 0.0018 0.0003 0.0085 0.0033

PC
0.0038 0.0018 0.1369 0.0352 0.0020 0.3589 0.1183 0.2348 0.0539 0.1899 0.0878 .. 0.0162 0.0190 0.0203 0.0055 0.0021 0.0577 0.0053 0.7178 .. .. 0.6634 0.0161 0.0008 0.0126 0.8941 0.0526 0.0084 0.0637 0.0223 0.0709 0.0338 0.1236 0.1850 .. 0.2865 0.0531 0.0748

Tel
0.0037 0.0044 0.2367 0.0929 .. 0.5975 0.0727 0.5112 0.0075 0.2554 0.1309 .. 0.1478 0.0460 0.0615 0.0047 0.0064 0.0744 0.0132 0.7078 0.4292 0.2810 0.5783 0.0355 .. 0.0019 0.8272 0.1044 0.0258 0.1916 0.0583 0.0752 0.0453 0.3063 0.4935 0.3882 0.3067 0.1947 0.2452

Mobile
.. 0.0031 0.2106 0.0159 .. 0.1486 0.0135 0.4108 0.0000 0.1361 0.1219 0.0000 0.0064 0.0211 0.0196 0.0010 0.0004 0.0267 0.0004 0.6557 .. 0.1853 0.5715 0.0137 .. 0.0003 0.9471 0.0775 0.0031 0.1272 0.3001 0.0617 0.0590 0.1572 0.7174 0.3223 0.2332 0.0926 0.0144

Connectivity
0.0026 0.0023 0.1496 0.0371 0.0010 0.2966 0.0512 0.2903 0.0154 0.1463 0.0906 0.0065 0.0430 0.0216 0.0254 0.0028 0.0022 0.0413 0.0047 0.6004 0.2158 0.1567 0.5486 0.0166 0.0004 0.0037 0.7972 0.0590 0.0094 0.0962 0.0956 0.0524 0.0347 0.1526 0.3592 0.2374 0.2067 0.0872 0.0844

372

COUNTRY
Rwanda Samoa Sao Tome and Principe Saudi Arabia Senegal Seychelles Sierra Leone Singapore Slovak Republic Slovenia Solomon Islands Somalia South Africa Spain Sri Lanka St. Kitts and Nevis St. Lucia St. Vincent and G. Sudan Suriname Swaziland Sweden Switzerland Syrian Arab Republic Taiwan Tajikistan Tanzania Thailand Togo Trinidad and Tobago Tunisia Turkey Turkmenistan Uganda Ukraine United Arab Emirates United Kingdom United States

Hosts
0.0002 0.0002 0.0174 0.0008 0.0002 0.0001 0.0001 0.1995 0.0291 0.0624 0.0026 0.0000 0.0207 0.0621 0.0003 0.0011 0.0005 0.0000 0.0001 0.0000 0.0038 0.3116 0.1984 0.0000 .. 0.0002 0.0000 0.0034 0.0001 0.0199 0.0000 0.0063 0.0005 0.0000 0.0031 0.0406 0.1547 1.0000

PC
.. 0.0126 .. 0.1215 0.0303 0.2505 .. 0.8629 0.2175 0.4995 0.0828 .. 0.1116 0.2393 0.0111 0.3079 0.2858 0.1944 0.0056 .. .. 0.8989 0.9153 0.0290 .. .. 0.0046 0.0443 0.0363 0.1080 0.0308 0.0666 .. 0.0048 0.0318 0.2332 0.6040 1.0000

Tel
0.0020 0.0559 0.0366 0.1510 0.0208 0.2848 0.0044 0.5622 0.3577 0.4409 0.0219 0.0017 0.1461 0.4782 0.0420 0.6038 0.3374 0.2436 0.0101 0.1989 0.0364 0.7752 0.8264 0.1158 0.6359 0.0406 0.0052 0.1000 0.0098 0.2516 0.1048 0.3248 0.0954 0.0030 0.2319 0.4743 0.6617 0.7850

Mobile
0.0024 0.0291 0.0000 0.0654 0.0147 0.3155 0.0000 0.6389 0.2613 0.4733 0.0039 0.0000 0.1892 0.4733 0.0210 0.0277 .. 0.0194 0.0007 0.0647 0.0236 0.8959 0.6546 0.0004 .. 0.0002 0.0023 0.0579 0.0059 0.0461 0.0091 0.1898 0.0013 0.0038 0.0066 0.4994 0.7040 0.4710

Connectivity
0.0015 0.0244 0.0180 0.0846 0.0165 0.2127 0.0015 0.5659 0.2164 0.3690 0.0278 0.0006 0.1169 0.3132 0.0186 0.2351 0.2079 0.1143 0.0041 0.0879 0.0213 0.7204 0.6487 0.0363 0.6359 0.0136 0.0031 0.0514 0.0130 0.1064 0.0362 0.1469 0.0324 0.0029 0.0684 0.3119 0.5311 0.8140

373

COUNTRY
Uruguay Uzbekistan Vanuatu Venezuela, RB Vietnam Virgin Islands (U.S.) Yemen, Rep. Yugoslavia, Former Zambia Zimbabwe

Hosts
0.0404 0.0000 0.0041 0.0032 0.0000 0.0263 0.0000 0.0053 0.0003 0.0009

PC
0.1981 .. .. 0.0839 0.0181 .. 0.0034 0.0414 0.0127 0.0241

Tel
0.3157 0.0766 0.0344 0.1254 0.0311 0.6556 0.0194 0.2501 0.0107 0.0241

Mobile
0.1465 0.0025 0.0024 0.2451 0.0065 .. 0.0024 0.0880 0.0042 0.0215

Connectivity
0.1752 0.0264 0.0136 0.1144 0.0139 0.3410 0.0063 0.0962 0.0070 0.0177

374

Data Appendix

Variable Sources and Definitions: 1. Internet Hosts: Internet hosts are the number of computers with active Internet Protocol addresses connected to the Internet, per 10,000 people. Source: ITU. 2. Personal Computers: Personal computers are the estimated number of computers designed to be used by a single individual, per 1,000 people. Source: ITU. 3. Telephone Mainlines: Telephone mainlines are the estimated number of telephone mainlines, per 1,000 people. Source: ITU. 4. Mobile Phones: Mobile phones are the number of mobile phone subscribers, per 1,000 people. Source: ITU and UNSD population estimates. 5. Internet Users: Number of Internet users per 1,000 people. Source: ITU. 6. Literacy: Literacy rate calculated as the inverse of the illiteracy rate. Source: World Bank and UNCTAD. 7. GDP per capita: Gross Domestic Product per capita. Source: World Bank. 8. Cost of a Local Call: Estimated cost of a 3 minute local call in US dollars. Source: ITU. 9. Telecom Traffic Outgoing: Estimated number of minutes outgoing traffic. Source: ITU. 10. Telecom Traffic Incoming: Estimated number of minutes incoming traffic. Source: ITU. 11. Internet Exchange: Presence of an Internet Exchange (IX) point, defined by Telegeography as services created to facilitate on-site interconnections between independent or third-party Internet networks . Source: Telegeography. 12. Competition in Local Loop: full/partial competition, duopoly, monopoly. Source: ITU. 13. Competition in Long-distance: full/partial competition, duopoly, or monopoly. Source: ITU. 14. Competition in ISP market: whether the ISP market may be described by full/partial competition, duopoly, or monopoly. Source: ITU.

375

8. BIBLIOGRAPHY Abramson, B. (2000) Internet Globalization Indicators, Telecommunications Policy (24), 2000, pp. 69-74. Bridges.org (2001) Comparison of E-Readiness Assessment Models (http: //www.bridges.org/ereadiness/report.html; current April 26, 2001). Cukier, K. N. (1998) The global Internet: a primer, Telegeography 1999, Washington, D.C.: Telegeography 1999, pp. 112-145. Cukier, K. N. (1998) Peering and Fearing: ISP Interconnection and Regulatory Issues, available from http://ksgwww.Harvard.edu/iip/iicompol/ Papers/Cukier.html/ Hargittai, E. (1999), Weaving the Western Web: Explaining Differences in Internet Connectivity Among OECD Countries, Telecommunications Policy (23), 1999, pp.701-718. Kedzie, C. (1997) Communication and Democracy: Coincident Revolutions and the Emergent Dictators Dilemma, RGSD-127, The RAND Corporation, Santa Monica CA, 1997 abstract at http://www.rand.org/cgi-bin/ Abstracts/ordi/) Lall (2001) reviews the distinctions and evolution of these innovation indices in his article Competitiveness Indices and Developing Countries: An Economic Evaluation of the GCR, World Development 2001. Lebre La Rovere, Renata (1996): Diffusion of IT and the competitiveness of Brazilian Banking, in Roche, Edward Mozley and Michael James Blaine, eds. Information Technology, Development and Policy (1996). Georgia Institute of Technology High Tech Indicators and associated articles, available from (http://www.gatech.edu/) Goodman, S., Burkhart, G., Foster, W., Press, L., Tan, Z., Woodard, J. (1998) The Global Diffusion of the Internet Project: An Initial Inductive Study, Fairfax, VA: SAIC 1998b available from http:// mosaic.unomaha.edu/GDI1998/GDI1998.html. Gorman, S. P. and Malecki, E. J. (2000) The Networks of the Internet: an Analysis of Provider Networks in the USA, Telecommunications Policy (24), 2000 pp. 113-134. Harvard University Information Technologies Group. Readiness for the Networked World: A Guide for Developing Countries, Center for International Development, Harvard University, 2000 (http:// www.readinessguide.org/).

376

ITU case studies, Geneva: ITU, available from http://itu.int/ti/casestudies/ Jensen (2000) The Internet in Africa, presented to the 2000 Conference of International Federation for Information Processing WG9.4 Social Implications of Computers in Developing Countries. McConnell International, Risk E-Business: Seizing the Opportunity of Global E-Readiness (August 2000), subsequently updated: Ready? Net. Go! Partnerships Leading the Global Economy (May 2001), available from http://www.mcconnellinternational.com. Mosaic Group Global Diffusion of the Internet Project Webpage (2000), homepage at http://mosaic.unomaha.edu/gdi.html Netcraft, The Netcraft Web Server Survey, 2000, available from http: //www. netcraft.com/ Nua Internet Surveys, How Many Online?, 2001, available from http: //www. nua.ie/surveys Nua Internet Surveys, Methodology, 2000, available from http://www. nua.ie/surveys/ OECD (2001) The New Economy: Beyond the Hype, Final Report on the OECD Growth Project, 2001. Porter, Michael E. and Stern, Scott (1999) The New Challenge to Americas Prosperity: Findings from the Innovation Index (Washington, D.C.). Press, L. (1999) The state of the Internet: Growth and Gaps, available from www.isoc.org/inet2000/cdproceedings/8e/8e_4 Press, L. (1997) Tracking the Global Diffusion of the Internet, Communications of the ACM (40:11), 1997b, pp. 11-17 Press, L., Burkhart, G., Foster, W., Goodman, S., Wolcott, P., and Woodard, J. (1997) An Internet Diffusion Framework, Communications of the ACM (41:10), 1997b, pp. 21-26. Rao, Bhandhari, Iqbal, Sinha and Wahaj us Siraj (1999) Struggling with the Digital Divide: Internet Infrastructure, Policies and Regulations in South Asia. Robinson, K.K., and Crenshaw, E.M. (1999) Cyber-Space and Post-Industrial Transformations: A Cross-National Analysis of Internet Development, Working Paper, Dept. of Sociology, Ohio State University, December 1999. Rodriguez & Wilson (2000) Are Poor Countries Losing the Information Revolution? May 2000, infoDev Working Group, World Bank.

377

UNDP Human Development Report, 2001: Making New Technologies Work For Human Development, UNDP, New York. Van Ryckeghem, Dominique (1996) Computers and Culture: cases from Kenya in Roche, Edward Mozley and Michael James Blaine, eds. Information Technology, Development and Policy (1996). WEF, The Global Competitiveness Report, 2000: World Economic Forum, Oxford University Press. Wolcott, P., Goodman, S., and Burkhart, G., (1996) The Information Technology Capability of Nations: A Framework for Analysis, 1996, available at http://mosaic.unomaha.edu/

378

APPENDIX I

AfriNIC AIDA ANM APNIC ARIN ASEAN ATU B2B CANTO

African RIR Accessible Information on Development Activities Auxiliary Nurse and Midwife Asia Pacific RIR American RIR Association of Southeast Asian Nations Amalgamated Transit Union Business to Business Caribbean Association of National Telecommunication Organizations ccTLDs country-code Top Level Domain names CEE Central and Eastern Europe CEO Chief Executive Officer CGPRS Comprehensive Growth and Poverty Reduction Strategy CHC Community Health Center CIDA Canadian International Development Agency CIS Commonwealth of Independent States CITI Cape IT Initiative CSTD Center for Staff Training and Development CU Catching Up DAC Development Assistance Committee DNS Domain Name System DoC Department of Commerce DOI Digital opportunity Initiative DOT Digital Opportunity Taskforce EBRD European Bank for Reconstruction and Development ECHO Enterprise Channelling Organization ECOSOC Economic and Social Council of the United Nations EIU Economist Intelligence Unit EMR Electronic Medical Record ESCAP United Nations Economic and Social Commission for Asia and the Pacific ESIs Entrepreneurship Support Initiatives FDI Foreign Direct Investment FEBDEV Foundation for Economic and Business Development

379

FUSSR GA GAC GCR GDOI GDP GEM gTLDs Gini GIS GIT GITR GPS GTZ HDI HDR HIPC HTI ICANN ICC IICD ICTs ICTD ICT4D IDRC IDS IETF IFAD ILO IMF IP IPR

Former Soviet Union Getting Ahead Governmental Advisory Committee General Cologne Re Global Digital Opportunity Initiative Gross Domestic Product Global Entrepreneurship Monitor global Top Level Domain names The measurement for inequality in a population. Gini coefficient. Geographical information System Georgia Institute of Technology Global Information Technology Report Global Positioning System Gesellschaft fr Technische Zusammenarbeit Haftpflichtverband der Deutschen Industrie Human Development Report Heavily Indebted Poor Countries High Technology Indicators Internet Corporation for Assigned Numbers and Names International Chamber of Commerce

International institute for communication and development

Information and Communication Technologies Information and Communications Technology for Development Information and Communications Technology for Development International Development Research Center Institute of Development Studies Internet Engineering Task Force International Fund for Agricultural Development International Labour Organization International Monetary Fund Internet Protocol Intellectual Property Rights

380

ISC ISO ISPs IT ITU IX KFW KU Kurtosis

Internet Software Consortium International Organization for Standardization Internet Service Providers Information Technologies International Telecommunication Union Internet Exchange Kreditanstalt fr Wiederaufbau Keeping Up Kurtosis is a measure of whether the data are peaked or flat relative to a normal distribution LAC Latin America and Caribbean LAN Local Area Network LDCs Least Developed Countries MAE Metropolitan Area Exchanges MAPS Mobile Access Points MDGs Millennium Development Goals Med/av % Medium/Average percentage MNC Multi-National Corporation MoU Memorandum of Understanding MLA Media Lab Asia NAP National Academy Press NAWEM National Association of Women Entrepreneurs of Malaysia NEPAD New economic Partnership for Africas Development NGOs Non-Governmental Organizations NICs Network Information Centers NIE National Institute of Education NORAD North American Aerospace Defense Command NTIA National Telecommunications and Information Administration NUA National Urban Alliance ODA Official Development Assistance OECD Organization of Economic Cooperation and Development PC Processor Computer PCOs Public Call Offices PDA Personal Digital Assistant PDS Public Distribution System

381

PHC PLWAs PRSP PTO RAM RAP R&D RIR ROM RSPs SADC SARI SangoNet

Primary Healthcare Center People Living With AIDS Poverty Reduction Strategy Paper Patent and Trademark Office Random Access Memory Rapid Assessment Procedure Research and Development Regional Internet Registry Read-Only Memory Rural Service Providers Southern African Development Community Sustainable Access for Rural India A facilitator in the effective and empowering use of information communication technology (ICT) tools by development and social justice actors in Africa SD/av Standard Deviation/Average SIDA Swedish International Development Agency SIM Systems in Motion SMEs Small and Medium size Enterprises SMMEs Small, Micro and Medium size Enterprises SQL Structured Query Language SSTG Social Science and Technology Group SD/av Standard Deviation/Average Std.deviation Standard Deviation TLDs Top Level Domain names TRASA Telecommunication Regulation Association for South Africa 3G Third Generation UAE United Arab Emirates UDRP Uniform Domain names Dispute Resolution Policy UN United Nations UNCSTD United Nations Commission on the Science and Technology for Development UNCTAD United Nations Conference for Trade And Development UNDP United Nations Development Programme UNECA United Nations Economic Commission for Africa UNESCO United Nations Education Science and Culture Organization

382

UNIDO UNSD UPS URL VoIP WAP WAN WEF WHO WHOIS WiFi WIPO WLL WTO WRI

United Nations Industrial Development Organization United Nations Statistics Division United Postal Service Uniform Resource Locator Voice over Internet Protocol Wireless Application Protocol Wide Area Network World Economic Forum World Health Organization Domain name records search tool. Wireless Fidelity World Intellectual Property Organization Wireless Local Loop World Trade organization World Resources Institute

383