World Telecommunication Day 1999 |
Pity the poor techno-frog. On the back of this metaphorical amphibian has been laid the burden of catch-up for developing countries. The world's least-advantaged nations are being exhorted to ''leapfrog'' their way to postindustrial development through the wonders of new technology. In fact, a lot of the rhetoric is true.
''The information society offers developing countries an opportunity to leapfrog,'' says Hamadoun Touré, director of the International Telecommunication Union's Telecommunication Development Bureau, ''and new information technologies will allow them to leapfrog in a very inexpensive way. It is easier to start from scratch than to have a transition period where there are old technologies and new technologies that need to be brought together. In South Africa, in Senegal and in some countries in Latin America, there are many success stories. In fact, the only countries today with 100 percent digital networks tend to be developing countries.'' Botswana, for example, has a greater percentage of digital lines than Britain.
Wireless, cellular and satellite systems, along with digital network switches, can form the underpinnings of a new telecommunications infrastructure. The money to build them is available. But they are only one ingredient in a complex and constantly changing recipe for success in the digital economy of the next century.
''Having the basic infrastructure [10-30 telephone lines per 100 inhabitants] is a base, but it isn't enough,'' explains Ben Petrazzini, a policy analyst for the ITU. ''Telecom services can't be too expensive, or access is effectively prohibited. If you can't have reasonable connections at acceptable prices, you aren't even in the game.''
''In the game'' today means e-commerce. The ITU launched its EC-DC (Electronic Commerce for Developing Countries) initiative in March 1998 at the ITU World Telecommunication Development Conference in Valletta, Malta. EC-DC's mission is to help developing countries participate in e-commerce through increased awareness, technology transfer and the development of appropriate infrastructure.
''The Internet can offer new and unique opportunities for developing countries to sell goods and services to the global marketplace,'' says the ITU in its 1999 report, ''Internet for Development.''
Notes Mr. Petrazzini: ''E-commerce means new opportunities for developing nations because, with relatively low capital expenditures, you can have an industry for software development, data processing, call centers and servicing opportunities. Of course, other things must be in place - like education and skills training.''
At the most rudimentary level, a country needs technicians capable of installing, servicing and upgrading its telecommunications infrastructure. Next, an educated business sector and a literate consumer base are requisites.
''Literacy means more than knowing how to use a computer,'' says Bill Poulos, director of electronic commerce policy for Electronic Data Systems. ''It is knowing how to leverage IT technology for business.''
The ITU has set up four Centers of Excellence, two in Africa and one each in the Americas and the Asia-Pacific region, with some of the surplus income generated by telecommunications events. The purpose of these centers is to train public officials in policy and regulatory issues. They are also a resource for executives involved in the management of telecommunications networks and services. Executives from public corporations are also eligible. Many countries corporatize their telecommunications without privatizing them.
Understanding regulatory issues and the changes brought by privatization are key to the development of a favorable business climate, both for infrastructure development and the commerce that is to be built upon it. Until recently, nearly all telecommunications regulators presided over national monopolies; now they are expected to regulate to encourage competition. In the last four years alone, some 40 countries, including Germany and France, established new independent regulatory authorities, reports Arthur Levin, legal officer for the ITU.
In its July 1999 report on regulatory issues for electronic commerce, the ITU notes that many critical issues raised by e-commerce fall outside the purview of telecommunications regulation. These include intellectual property rights, taxation, dispute resolution and contract issues. Taxation is clearly a government responsibility, but whether some of the others should be handled by lawmakers or industry-led groups is still being debated.
''No international organization is attempting to take charge of the Internet,'' says John Dryden, head of the Information Computer and Communications Policy Division of the Organization for Economic Cooperation and Development. ''Because the Internet is private, governments are trying to develop ways for the Internet to regulate itself.'' He goes on to list at least four ways to do this: 1) If it is illegal elsewhere, it is illegal on the Internet. 2) Enforce voluntary codes of practice for business, like the Better Business Bureau, and mark them with icons on Web sites. 3) Encourage technological means to protect privacy and safeguard children. 4) Encourage information, transparency and education.
Such practices contribute to the sort of business environment the investment community favors. Investors are also drawn to countries where markets are liberalized and competition is encouraged. ''It is clear that private partners are willing to invest a lot in countries, but they will not do it without first knowing that a good regulatory environment is in place,'' says Mr. Touré. ''They naturally need to feel confident that their investments will be profitable to them.''
He cites the example of Senegal, which worked with France Telecom in a venture that has spread telecommunications access across the country and brought a healthy return to investors.
Claudia Flisi