MIT TR - Colombia ICT Ecosystems - Innovation Policy Report - Rpt 2 - Mar 5 2014


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"Innovation Policy Report" with recommendations for Colombian Ministry of ICT (MinTIC) [], Minister Diego Molano, Govt of Colombia, March 5 2014. Performed by MIT Technology Review, Cambridge, Mass, during August 2013 to Feb 2014. Co-authors: Erik Pages, Ellen Harpel, Burton Lee, Antoinette Matthews. Report 2 of 2 reports done for MinTIC. Project lead: Antoinette Matthews.

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MIT TR - Colombia ICT Ecosystems - Innovation Policy Report - Rpt 2 - Mar 5 2014

  1. 1. GovernmentPolicyReport AnInitiativeoftheICTMinistryofColombia Published in 2014
  2. 2. TableofContents Executive Summary 1 Background and Context 10 Poverty Alleviation/Social Development 15 Competitiveness 25 ICT & Industry 41 Environment: Talent & Institution 53 T S D U ET D MinTIC Academy Connecting Innovation Supply and Demand Building ICT Talent Digital Rights Developing Regional Ecosystems Strengthening Universities Enterprise ICT Training Demand Stimulation & Discovery These key icons represent concepts and cross-cutting themes throughout the report
  3. 3. MIT TECHNOLOGY REVIEW 3GOVERNMENT POLICY REPORT Since 2010, Colombia’s Vive Digital Plan has served as a road map for transforming Colombia’s ICT landscape and introducing “technology in the life of every Colombian.” By most accounts, Vive Digital has been a great success, meeting its key objectives for improving ICT access and achieving global accolades for its impacts and innovative programming. Today, nearly every Colombian has the opportunity to use the latest ICTs and to fully participate in life as a digital citizen. When the Vive Digital plan was originally unveiled, many Colombians did not understand the potential power of ICT, or else they lacked access to key technologies, such as PCs, tablets, or smartphones. Small pockets of innovation existed, but the average Colombian was not an active user of the Internet and other ICT technologies. As such, Vive Digital rightly focused on issues of access, that is, how to ensure that Colombians had access to ICTs and their many benefits. These access programs have made progress, but we now know that simply ensuring access is not enough. Colombia still faces many challenges in terms of ICT deployment and use. Homegrown ICT capacities are fairly limited and the local industry is dominated by foreign multinationals and a tiny base of local small and medium-size enterprises (SMEs). Many SMEs have limited access to the Internet or other ICT tools. ICT-focused firms lack resources and capacity to develop new innovations or compete in global markets. A strong ICT innovation ecosystem does not yet exist and new firms lack access to skilled business service providers or to effective partners in universities, local governments, or key national agencies. Finally, and perhaps most important, Colombia, like many other countries, suffers from a dearth of ICT talent across the board, from entry-level programmers, to engineers and technicians, to skilled managers to ICT-savvy leaders in the private, non-profit, and public sectors. These new ICT investments and initiatives should not be limited to ICT-related industries alone. Under Vive Digital, important progress in addressing wider societal challenges has been made. Yet continued efforts to deploy ICT in ways that help combat poverty, create jobs, and spur competitiveness are still needed. ICT and related technologies can and should have important impacts on improving productivity and spurring innovation across the Colombian economy. The next version of Vive Digital—Vive Digital 2—seeks to address these pressing challenges. It is time to move beyond ensuring access to ICT. Now, the focus moves to deeper engagement with ICT—to use ICT as a way to improve lives, enhance competitiveness, open new markets, build wealth, and strengthen communities. Executive Summary
  4. 4. GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW4 This report presents potential strategies, initiatives, and programs to be considered as part of MinTIC’s Vive Digital 2 Strategy. The recommendations build on the original Vive Digital framework, but move beyond to identify how ICT can help address other challenges and pressures facing Colombian society and the wider economy. The report addresses four primary focus areas: 1. Poverty Alleviation and Social Development: How can ICT help to reduce poverty in Colombia and to promote other important social development goals, such as improved health and education outcomes? 2. Competitiveness:HowcanICThelpfosteramorecompetitiveandinnovativeColombian economy? 3. ICT Industry: How can the plan help create a stronger Colombian ICT sector that contributes to added value to the economy? 4. Environment and Talent: What underlying conditions, in areas like infrastructure, regulation, talent development, and the business environment, are required to support a thriving ICT-based economy? These focus areas encompass a broad range of issues and policy challenges. Thus, this policy report touches on dozens of issue areas and includes a large number and diverse assemblage of Infrastructure Applications Services Users Colombia will be a world-class leader in the use of ICT for socioeconomic development Poverty and Social Development Competitiveness ICT Industry 4a Environment 4b Talent 1 2 3 ICTMINISTRYOFCOLOMBIA;VIVEDIGITAL2INITIATIVE National Digitization Performance Data
  5. 5. MIT TECHNOLOGY REVIEW 5GOVERNMENT POLICY REPORT policy ideas and recommendations. Its recommendations are organized in two ways—by focus and/or framework area, and by whether they are core recommendations or of a supporting nature. Core recommendations, which require significant investment or significant changes to current policies and programs, are considered top priorities for the Vive Digital 2 Strategy. Supporting recommendations tend to be more modest in scale and scope. They may require simply the continuation of current programs, or minor adjustments to current policy, or small-scale investments targeted to more specific and focused policy goals. FrameworkArea1:ICTandPovertyAlleviation/ SocialDevelopment MinTIC’s leading vision for Vive Digital 2 entails “massifying the Internet.” In other words, MinTIC is seeking to support tools, programs, and investments that help every Colombian access the latest and most up-to-date ICT technologies and services. This new ICT access can help transform lives, by bringing innovations in education, health care, justice reform, poverty alleviation, and economic development to all parts of Colombia and to all Colombians. The Vive Digital 2 Program should embrace the following initiatives, which are all designed to use ICT as a means to improve the health, education, and quality of life for all Colombians. The four items should all be priority action items in Vive Digital 2. 1. Develop a Digital Rights Package for All Colombians. These digital rights should ensure that every citizen has access to digital hardware and to key services, along with control over their personal electronic health and identity records. 2. Build New Training Platforms: Charter MinTIC Academy, Colombia’s first fully online educationandtrainingplatform.ThiseffortwillhelppositionColombiaasaworldleader in Spanish-language online education. 3. PromoteE-Health:Supportcreationofanationwidee-healthstrategyincooperationwith othernationalministries;appointaMinTICambassadorfore-healthtohelppromoteand support this effort. 4. Provide Deeper Access: Deploy dedicated wireless access points in every community inColombia.Thiseffortshouldbeaccompaniedwithsupportforsmartphonepurchases and with MinTIC’s sponsorship of “app stores” that host useful mobile apps, tools, and services. T ET
  6. 6. GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW6 FrameworkArea2:Competitiveness Empowering all Colombians via ICT will help improve lives and promote economic development. A new push to enhance national and regional competitiveness via ICT is also needed. Today, the limited penetration of state-of-the art ICT in Colombian businesses, especially in SMEs, is a major impediment to economic growth. Industry competitiveness can be enhanced via ICTs in many ways, including: 1. Adopt a National E-Agriculture Strategy: Colombia’s agriculture sectors are global industry leaders and major employers across the country. Efforts to improve the productivity of Colombian agriculture via ICT-innovation investments can have large rippleeffectsacrosstheeconomy.MinTICshoulddevelopnewinitiatives,inpartnership withtheICTandagribusinesssectors,toprovideICTtraining,facilitatecreationofsector- specific apps, develop information content, and identify market potential for advanced ICT-agribusiness products or services that could be developed within Colombia. 2. Build ICT Capacity among SMEs: Encourage SMEs in all sectors to embrace the active use of ICT tools and technologies, via actions such as: • Offering ICT training, education and funding to deepen the ICT capability of SMEs that already use basic technology tools • Creating MinTIC-approved training and content to upgrade digital skills and encourage utilization to deepen the ICT capability of SMEs • Providing vouchers to subsidize purchase of ICT products and services • Developing applications that help SMEs to improve the efficiency and productivity of their supply chains. 3. Embrace E-Government: Formalize MinTIC as the lead organization for e-government initiatives at the national level in order to: • achieve a “whole-of-government” approach and management of a single portal for citizen services and • develop a long-term technology road map and build political support to address evolving ICT issues in government. This effort should include the establishment of a new regional center of ICT innovation for e-government to serve as a national thought leader on effective e-government strategies. 4. EmbraceOpenSource:Adoptapositiveandproactivepolicytowardsdevelopment,use, andsharingofopensourcesoftwareandrelatedcodethatwouldapplytoallgovernment levels, public health and higher education institutions. ET ET D
  7. 7. MIT TECHNOLOGY REVIEW 7GOVERNMENT POLICY REPORT FrameworkArea3:ICTIndustry Developing a more competitive, resilient, and innovative homegrown ICT sector is a primary goal of MinTIC and other key players supporting the development of Colombia’s innovation and entrepreneurship-focused ecosystems. MinTIC and its partners have already initiated several important new efforts focused on strengthening Colombia’s innovation ecosystem. These include efforts such as the program and the recently-released Strategic Vision of the Software and Associated Services Sector. This section presents additional ideas for enhancing the competitiveness of Colombia’s emerging ICT sector. Specific suggested initiatives include the following: 1. Build regional ecosystems by investing in several initiatives that strengthen regional ICT clusters and related industries. These initiatives include: • Regional centers of ICT innovation that build connections between ICT and key regional industry clusters, with a particular focus on anchor companies • University entrepreneurship and innovation centers that strengthen university capacities to train future entrepreneurs, to commercialize technology, and to nurture regional innovation ecosystems • Proof-of-concept centers: a small number of centers focused exclusively on the commercialization of university-developed technology. 2. Support ICT-focused innovation investments at SMEs. This fund could be structured in several ways—as a pool of grant funds, as a challenge prize competition, or as an innovationvoucherprogramwherefirmscouldusepubliclybackedvoucherstopurchase services or tools on the open market. U U
  8. 8. GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW8 FrameworkArea4:Environment:TalentInstitutions Framework Area 4 of the Vive Digital II strategy includes two major components: talent and institutions. The dearth of ICT talent, which ranges from entry-level programmers to engineers and technicians to skilled managers and ICT-savvy leaders in the private, nonprofit, and public sectors, has been identified as a barrier to achieving a digital culture and maximizing the opportunities ICT presents for overall economic competitiveness. MinTIC has organized its efforts to improve the quantity and quality of ICT technical skills and competencies around three categories: society, ICT professionals (industry and universities), and policy makers. These efforts require close partnerships with different kinds of institutions, such as national, regional and local government organizations, universities, and leading industry partners. Specific recommendations in the areas of talent and institutions include the following: 1. BuildICTTalentatallLevels:ScaleMinTIC’sICTtalentinitiativestoamassivelevelthrough a MinTIC-approved digital badging program that will be accessible to all Colombians— not just ICT professionals—and will be aimed at developing basic and advanced ICT technical skills, using the proposed MinTIC Academy as the main platform. 2. Serve Key Industry Needs: Create a program that can provide customized training for firms with demonstrated demand for workers needing ICT technical skills, working in partnership with SENA (the national apprenticeship service), ICETEX (the technical education institute, universities, or other qualified training providers. 3. GroomICT-SavvyPublicServants:IncreaseunderstandingofICTpolicyissuesamong electedofficialsatallgovernmentlevelsbyofferingnontechnical,big-pictureeventsthat address ICT topics, built around popular speakers, private sector leaders, networking, and social activities. 4. Enhance C-Level Management and ICT Expertise: Create and convene groups of governmentandprivatesectorCIOsforeducation,leadership,andprogrammanagement training to improve their ability to implement ICT solutions at the regional and municipal levels. ET ET T ET
  9. 9. MIT TECHNOLOGY REVIEW 9GOVERNMENT POLICY REPORT Supporting Recommendations* Digital rights for citizens (1) Lead organization for e-government at national level (2) Open source policy (2) Wireless access points and apps store (1) ICT innovation investments or vouchers for SMEs (2,3) MinTIC Academy (1): ICT for SMEs (2); digital badges (4); events for politicians (4); teacher- counselor training (1,4); ICT for Government curriculum (4) Regional center of ICT innovation of e-government (4) E-health strategy (1) ICT for Agribusiness (2) Regional centers of ICT innovation (3) University entrepreneurship and innovation centers (3) Proof-of-concept centers (3) Customized ICT training for companies/strategic sectors (4) CIO council (4) Product design centers (4) Data privacy policy (2) Open data policy (2) ICT purchases to favor Colombian firms (3) Tablet program for students (1) Smart cities policy (2) Entrepreneur in residence (3) Potential for mobile banking (1) ICT for logistics summit (2) Regional ICT strategy implementation (2) Outreach: TEDx, civic hacking (1) Prize for e-education/ entrepreneurship (1) Open data communities of practice (2) Investor networks (3) MinTIC Policy Lead MinTIC is the national leader to craft poli- cies that will affect all Colombians and all government agencies. MinTIC Programs MinTIC creates, finances, and manages these programs inter- nally; they do not require external partnerships to implement. MinTIC Lab MinTIC initiatives for which MinTIC must work through partners, are outward-fac- ing, and require external resources or agreements to achieve objectives. “Seat at the Table” Other organizations (including other central government ministries) already have primary responsibility for achieving the socioeconomic objectives related to these recommendations, but MinTIC brings ICT to the table to improve their outcomes. Building the Academia- Government-Industry Links MinTIC facilitates and/or bro- kers these relationships that are created in the service of broader ICT and socioeco- nomic development objectives. Core Recommendations* (Framework areas are noted in parentheses) MatrixofRecommendations/InstitutionalApproach
  10. 10. GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW10 Since 2010, Colombia has enjoyed a strong period of economic growth and prosperity. These achievements stem from multiple causes, but smart public policies have played an important role. In the field of information and communications technologies (ICT), the Colombian government’s Vive Digital Plan has been an essential driving force. Led by the Ministry of Information and Communications Technologies (MinTIC) and its chief minister, Diego Molano Vega, Vive Digital sought to transform Colombia’s ICT landscape by introducing “technology in the life of every Colombian.” The original Vive Digital plan set three broad goals for 2010-2014:1 1. Triple the number of municipalities connected to the information superhighway 2. Connect 50 percent of homes and 50 percent of SMEs to the Internet 3. Quadruple the number of Colombian broadband Internet connections to achieve a target of 8.8 million broadband Internet connections in 2014. As the 2014 completion date of the original Vive Digital plan approaches, nearly all the plan’s core objectives have been met. Today, nearly every Colombian has the opportunity to use the latest ICTs and to participate fully in life as a digital citizen. Colombia’s outstanding ICT programs have been recognized around the globe by organizations such as the Inter-American Development Bank (IDB), the Organization for Economic Cooperation and Development (OECD), the Global Telecommunications Conference, and the World Summit on the Information Society. When the Vive Digital plan was originally unveiled, many Colombians did not understand the potential power of ICT, or lacked access to key technologies, such as PCs, tablets, or smartphones. Small pockets of innovation existed, but the average Colombian was not an active user of the Internet and other ICT technologies. As such, Vive Digital rightly focused on issues of access, that is, how to ensure that Colombians had access to ICTs and their many benefits. This work took multiple forms—from investments in core infrastructure (for example broadband, and submarine cables) to major deployment initiatives, like the expansion of MinTIC’s Computers for Education effort. 1 For background, see Diego Molano Vega, “Colombia’s Digital Agenda: Successes and the Challenges Ahead,” in The Global Information Technology Report 2013, (Davos, Switzerland: World Economic Forum: 2013). Background and Context
  11. 11. MIT TECHNOLOGY REVIEW 11GOVERNMENT POLICY REPORT SOURCE:BOOZCOMPANY These access programs have made progress, but we now know that simply ensuring access is not enough. We must continue to improve access where it is still a problem, but we must go beyond that. For MinTIC, helping people to use ICT as a path to prosperity and economic development is a core mission. We must empower people to effectively use and benefit from ICT. This section will treat in detail approaches that can help Colombians use ICT to better their lives. Continued efforts to promote access and digital culture must remain top priorities and should be accompanied by a comprehensive rethinking of digital rights for Colombians. Finally, we will address three core areas: education, health, and financial literacy and empowerment. Successful new initiatives in each of these areas will make important contributions to providing new ICT tools and services for all Colombians. The range of digitization scores for 150 countries shows that 65 countries are still in the constrained stage; 19 are emerging, 28 are transitional, and 38 have achieved advanced levels of ICT adoption and use. Africa Asia/Pacific/Oceania Middle East South and Central America/Caribbean Europe North America STAGE: Constrained SCORE: Less than 25 Advanced 40 and higher Emerging Transitional 30 to 39.9 26.9 Panama Azerbaijan Antigua Barbuda Botswana Trinidad Tobago Armenia China Ecuador Bosnia Georgia Indonesia Brunei Tunisia Thailand Algeria 23.8 37.9 Estonia Ukraine Cyprus Bulgaria Croatia Latvia Uruguay Oman Argentina Serbia Macao Iran Philippines Bahrain Colombia 31.7 23.8 Kazakhstan Guyana South Africa Belize India Egypt Fiji Gabon El Salvador Paraguay Pakistan Suriname Dominican Rep. Guatemala Namibia 20.2 20.0 Aruba Moldova Sri Lanka Bolivia Kyrgyzstan Honduras Morocco Bhutan Cape Verde Angola Syria Ghana Zambia Nigeria Cambodia 13.0 12.9 Bangladesh Vietnam Cote d'Ivoire Swaziland Vanuatu Kenya Uzbekistan Uganda Iraq Nepal Cuba Djibouti Senegal Laos Burundi 8.9 8.1 Benin Sao Tome Mozambique Cameroon Togo Yemen Rwanda Mali Lesotho Afghanistan Madagascar Burkina Faso Niger Comoros Ethiopia 1.9 (LOWEST SCORE) (HIGHEST SCORE) 63.7 Norway Iceland Korea Hong Kong Switzerland U.S. Luxembourg Taiwan Canada Israel Denmark Japan U.K. Sweden Finland 52.2 52.0 Australia Belgium Singapore France Portugal Germany Austria Spain Italy Ireland Netherlands Czech Republic Russia Romania Slovakia 43.7 43.6 UAE Greece Poland Hungary Belarus Slovenia New Zealand Lithuania Chile Malaysia Mauritius Saudi Arabia Qatar Malta Kuwait 38.0 31.6 Montenegro Turkey Mexico Barbados Seychelles Jordan Lebanon Mongolia Costa Rica Brazil Peru Macedonia Saint Lucia Albania Venezuela 27.1 Emerging 25 to 29.9 Components of the Digitization Score National Digitization Performance Data
  12. 12. GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW12 The steps beyond access programs are referred to by many researchers as digitization, that is, efforts that measure the ability to use and benefit from ICT, not just have access to it. A shift to these strategies makes great sense, because the connections between digitization and prosperity are very strong. A recent Booz Allen Hamilton global study looked at these connections in 150 nations.2 (Figure 1 shows performance rankings.) The study found that when a country improved its digitization score by 10 points, its GDP increased by 0.50 to 0.62 percent. But if a country improved its Internet access score by 10 points, GDP grew by only 0.16 percent.3 Not surprisingly, the research found that the most advanced economies also had the most advanced digital economies as well. However, the researchers further noted that the impacts of digitization accelerate as a nation becomes more “digitized.” A “virtuous cycle” ensues where the impacts of digital development have ever larger ripple effects in new jobs, prosperity, and new innovations. The original Vive Digital plan has produced enormous achievements. Key plan outcomes include the following: n 96 percent of Colombia is now connected to optical fiber networks. n Every Colombian municipality has high-speed Internet access. n Colombians are getting connected. Since 2010, household Internet connections grew by 94 percent and small business connections jumped 185 percent. n 746 thousand computers and tablets have been delivered to public schools. n More than 1.2 million students are now connected to the Internet in school. While important improvements in ICT access have been achieved, Colombia still faces many challenges in terms of ICT deployment and use. Homegrown ICT capacities are fairly limited and the local industry is dominated by foreign multinationals and a tiny base of local small and medium-size enterprises (SMEs). Most traditional SMEs have little or no access to the Internet or other ICT tools. ICT-focused firms often lack the resources and capacity to develop new innovations or compete in global markets. A strong ICT innovation ecosystem does not yet exist and new firms lack access to skilled business service providers or to effective partners in universities, local governments, or key national agencies. Finally, and perhaps most important, Colombia suffers from a dearth of ICT talent across the board, from entry-level programmers to engineers and technicians to skilled managers to ICT-savvy leaders in the private, nonprofit, and public sectors. 2 Bahjat El-Darwiche, Milind Singh, and Sandeep Ganediwalla, “Digitization and Prosperity,” Strategy + Business, Autumn 2012 3 Ibid, p. 6
  13. 13. MIT TECHNOLOGY REVIEW 13GOVERNMENT POLICY REPORT The next version of Vive Digital—Vive Digital 2—seeks to address these pressing challenges. It is time to move ahead. Now, the focus moves beyond ensuring access to ICT to deeper engagement—as a way to improve lives, enhance competitiveness, open new markets, build wealth, and strengthen communities. Achieving these deeper impacts will require reorientation of policies and the introduction of new programs and initiatives, which will be detailed throughout the report. We will also introduce several key underlying (and cross-cutting) themes that govern all of these new efforts. Underlying themes include: n Building Talent across the Spectrum: Policies must help Colombians use ICT better at all levels—in business, in careers, in government, in education, and in their personal lives. We must establish short and long-term programs to build enough talent to address the market needs that the right policies are going to create. n Developing Ecosystems of Entrepreneurship and Innovation: Effective ecosystems depend on close collaborations across sectors and regions. MinTIC seeks strong partners who can join in nurturing a new culture of collaboration. Businesses and universities must also commit to this and embrace partnerships across all of the framework areas. n Bringing ICT to Business: We need to ensure that all businesses, especially SMEs and industries, can effectively deploy and use ICT. n Building on Regional and City Assets: Where possible, ICT policies should be tailored to capitalize on unique and competitive assets in Colombia’s diverse regions and cities, such as local industry clusters or strong local research capacities. n Connecting Supply and Demand for Innovation: Develop new tools and policies that help Colombians develop new ICT technologies and startups, and that create demand for such services from individuals, households, and businesses. n Building Digital Culture in New Ways: Develop scalable platforms that help promote ICT on a massive scale.
  14. 14. GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW14 TheViveDigital2Framework Planning for Vive Digital 2 has been guided by a framework designed to help guide the policy making process. This framework portrays the primary goals of the Vive Digital 2 project, which seeks to identify how ICT can help address other challenges and pressures facing Colombian society and the wider economy. It rests on four primary focus areas: 1. Poverty Alleviation and Social Development: How can ICT help to reduce poverty in Colombia and to promote other important social development goals, such as improved health and education outcomes? 2. Competitiveness: How can ICT help foster a more competitive and innovative Colombian economy? 3. ICT Industry: How can the plan help create a stronger Colombian ICT sector that contributes to added value to the economy? 4. Environment and Talent: What underlying conditions, in areas like infrastructure, regulation, talent development, and the business environment, are required to support a thriving ICT-based economy? This policy report is organized around the Vive Digital 2 framework. Each area is discussed and assessed separately, with each section concluding with a series of recommendations for action under the proposed Vive Digital 2 plan. We conclude with a final section that summarizes all the policy recommendations and also includes additional recommendations for addressing key organizational and implementation issues.
  15. 15. Poverty Alleviation/ Social Development IN THIS SECTION Overview Colombia as a Global ICT Leader: Embracing the Digital World ICT for Education ICT for Health ICT for Financial Literacy and Empowerment MinTIC’s leading vision for Vive Digi- tal 2 entails “massifying the Internet.” In other words, MinTIC is seeking to sup- port tools, programs, and investments that help every Colombian access the most up-to-date ICT technologies and services. This new ICT access can help transform lives, by bringing innovations in educa- tion, health care, poverty alleviation, and economic development to all parts of Colombia and to all Colombians. The Vive Digital 2 Program should embrace the following initiatives, which are all designed to use ICT as a means to improve the health, education, and quality of life for all Colombians. Several core recommendations war- rant top priority focus and attention. Additional supporting recommendations are also presented. STUARTBRADFORD
  16. 16. GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW16 Poverty Alleviation/Social Development S D Core Recommendations These four items are priority action items in Vive Digital 2: 1. Develop a digital rights package for all Colombians. These digital rights should ensure that every citizen has access to hardware and key services, along with control over their personal electronic health and identity records. 2. Charter MinTIC Academy, Colombia’s first fully online education platform and online university. This effort will help position Colombia as a world leader in Spanish-language online education. 3. Support creation of a nationwide e-health strategy in cooperation with other national ministries; appoint a MinTIC ambassador for e-health to help promote and support this effort. 4. Deploy dedicated wireless access points in every community in Colombia. This effort should be accompanied with support for smartphone purchases and with MinTIC’s sponsorship of “app stores” that host useful cell phone apps, tools, and services. Supporting Recommendations 1. Embrace outreach programs, such as civic hacking and a national TEDx network, which bring new ideas about ICT and technology trends to all parts of Colombia. 2. Continue to support a goal of providing one tablet (or another type of ICT device) to every Colombian child by 2018. 3. Develop a more robust local e-education industry via multiple initiatives, such as a national prize for e-education innovations and a business acceleration program focused on e-education-related entrepreneurship. 4. Assess the potential for expanded mobile banking services in Colombia. This effort may require the use of multiple delivery platforms including a mix of cell phones, ATM kiosks, crowd funding, and more traditional banks and lending institutions. * *
  17. 17. MIT TECHNOLOGY REVIEW 17 Poverty Alleviation/Social Development GOVERNMENT POLICY REPORT ColombiaasaGlobalICT Leader:Embracingthe DigitalWorld The New Core Offering: Digital Rights for All Colombians All of these efforts to improve access, uti- lization, and digitization would be rapidly accelerated and transformed via the cre- ation of a set of new “digital rights” for all Colombians. These rights would go beyond a simple statement of legal rights; they would entail a complete package of resources, services, and benefits available to every Colombian citizen. This package would help meet several goals: • Promote digital culture and culture change • Create real demand for ICT products and services • Provide a strong legal foundation for ICT in the economy and in political discourse • Build nationwide buzz around early and deep adoption and use of ICT by citizens, consumers, households, enterprises, and public institutions. This digital rights package dramati- cally extends the concept of a legal “right to Internet access” that has been promulgated in Costa Rica, Estonia, Finland, France, Greece, and Spain. Finland has developed the most expansive program. In addition to declaring a right to Internet access, Finnish law requires that telecommunications pro- viders offer quality services (now defined as Internet speeds of 1Mbps) to every citizen.1 1 Colombia should build on and expand on the Finnish approach to digital rights by providing a more comprehensive package of basic online services and benefits. Under this new system, all Colombians would be guaranteed: • Provision of basic hardware (such as a basic cell phone or tablet) • Access to basic online tools (such as an e-mail account and limited cloud-based data storage) • Access to selected e-government services at no/reduced cost 1 Finnish regulations project that these required speeds will jump from today’s level of 1 Mbps to 100Mbps by 2015. • Personal ownership of individual health- care data by all citizens. Effective provision of these digital rights likely requires formal enactment into law and may potentially be considered as a formal part of Colombia’s constitu- tion. This digital rights package can have far-reaching consequences. In addition to creating excitement about ICT within Colombia, the decision will also reverberate worldwide and help further brand Colom- bia as a regional and global leader in new approaches to ICT. Finally, by stimulating demand for new services, such as cloud- based data storage, this step will also serve to stimulate new ICT investments within Colombia and will also attract new foreign investment. Promoting Digital Culture: Additional Steps Thanks to MinTIC initiatives like Mujeres TIC and Redvolucion, Colombians have been aggressively embracing the use of ICT, the Internet and various mobile technolo- gies. Progress has been impressive since the initiation of the Vive Digital strategy. However, Colombian use of the Internet, social media, and other mobile services still lags the averages for Latin America and falls behind that of regional leaders such as Mexico, Chile, and Brazil.2 In addi- tion, Colombian students rank near the bottom in the most recent Program for International Student Assessment (PISA) assessment of digital literacy skills.3 This lagging performance largely reflects historical gaps that are narrowing due to Colombia’s continued efforts to close its ICT access gap relative to other nations. Recent progress has been quite impres- sive—thanks in part to critical MinTIC investments—and today Colombia has the second highest Internet penetration rate in Latin America. Colombia has also taken several creative steps to promote digitiza- tion in popular culture and to make ICT a more compelling career option as well, even using telenovela characters to make these points. 2 Digital Future in Focus: Colombia, ComScore Report. August 2013. 3 “How are the Digital Skills of Colombian Children?” Colombia Digital, June 1, 2012. Available at: item/1847-how-are-the-digital-skills-of-colombian- children As part of its move from access to digi- tization, MinTIC’s digital culture offerings could similarly evolve from basic education about the benefits of ICT to demonstrating how ICT can be used to address pressing civic and social challenges. The growing global movement around “civic hacking” offers one opportunity where MinTIC can help support this work. Civic hacking is a movement where people come together to use public data, code, and technology to help address pressing social problems; it is booming around the world. In the United States, an annual National Day of Civic Hacking is recognized and hundreds of cities sponsor regular competitions to help spur civic hacking. Colombians are also getting into the game, with events such CoCrea Colombia (held in Barranquilla, Cali, and Manizales in May 2013) designed to address the problem of arroyos in urban areas. MinTIC should continue to sponsor a series of similar hackathons or compe- titions where participants seek to solve pressing social challenges using ICT. A host of other public relations and out- reach efforts should also be considered. Around the world, many countries are embracing the Hour of Code initiative that coincides with Computer Science Educa- tion Week (held in 2013 from December 9 to15). During the Hour of Code campaign, more than 3.5 million students in 161 coun- tries (including Colombia) signed up to take a basic one-hour introduction to com- puter science and coding. This effort offers another means to demystify coding and explain the importance of ICT. The effort is backed by major global ICT firms, and has been publicized by celebrities includ- ing Shakira, Bill Gates, Mark Zuckerberg, and President Barack Obama. MinTIC might also consider official sponsorship of a series of TEDx events (locally organized presentations of ideas worth spreading) around Colombia to focus on ICT-related issues and challenges. TEDx events have already been successful in Bogotá and Medellin, but those events did not specifically focus on ICT. MinTIC support could drive ICT-focused events and also introduce the TEDx model to other regions of the country. These TEDx talks could also be streamed across the country via massive open online courses (MOOCs) or other MinTIC supported technologies.
  18. 18. GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW18 Poverty Alleviation/Social Development These recommended outreach initia- tives help to improve on the good work already underway via MinTIC and other partners. However, they do not make a massive change in Colombia’s ICT access debates. A more far-reaching recom- mendation would require deployment of community wireless access points in every Colombian community. Since these access points already exist in most urban areas, MinTIC’s programs should focus on providing similar access points in more isolated and rural communities. Wireless access points offer a means to truly engage a large swath of Colom- bians, as national cell-phone penetration rates now exceed 100 percent. If the access points are combined with small subsidies for the purchase of smartphones, the ability to access the latest ICT tools and services would be available to all. Core Recommendation The Challenge: More Colombians need access to the full array of ICT tools and services, along with a means to share new apps and innovations. Proposed Solution: Install free wireless access points in all communities and link this network to a series of “app stores” where new tools and apps can be promoted and sold. * In an effort to further stimulate use of and interest in these new mobile device services and tools, MinTIC should spon- sor the creation of its own app store where new tools and apps can be made available. Multiple stores could be considered, each focused on a key issue area (health, mobile banking, and education), a target industry, or a specific region or locality. Creation of new apps should be promoted across all MinTIC programs, from Apps.Co to hackathons to CPE (Computadores para Educar) and numerous other such initia- tives. In addition, MinTIC should consider sponsoring a program similar to the MIT- backed Entrepreneurial Research and Programming on Mobiles (EPROM) ini- tiative. EPROM, which operates in Africa, supports research and business devel- opment activities focused on cell phone platforms. Ongoing projects include efforts to develop new tools for mobile health records, mobile mapping, mobile blood bank management, and numerous other applications. Benefits to Colombia: • Builds digital culture and national dialogue across all Colombia and all social groups • Promotes demand for ICT services and applications across Colombian consumers, households, enterprises and public organizations. • Enhances safety, security and peace for all Colombians • Lays the foundation for building scalable national ICT platforms in education, health, e-Government and business • Strengthens ICT utilization and adoption in all regions and cities and in all industry sectors • Lays foundation for building a domestic cloud computing, big data and data center network • Attracts foreign investment aimed at ICT infrastructure and services, in particular a nationwide data center network • Demonstrates global leadership around use of ICT for economic development, poverty alleviation and reduction of inequality, building upon the example of Finland Highspeed Broadband Minimum 1 - 100 MBPS ICT Training and Education (online and classroom) Basic Cellphone, SMS, GPS, Camera Basic Cloud-based Data Storage Minimum 100MB-1GB cloud storage for each citizen Guaranteed under Law for Every Citizen of Colombia Patient Ownership of Personal Health Records and Data E-Government Services (free/discounted) Basic Tablet Basic Email Digital Rights for All Colombian Citizens A Comprehensive Package of ICT Services, Privileges, and Benefits for All SOURCE:CODE.ORG,DECEMBER2013.COPYRIGHT–BURTONHOYTLEE2014.ALLRIGHTSRESERVED(EDITSANDMODIFICATIONSPERMITTED).
  19. 19. MIT TECHNOLOGY REVIEW 19 Poverty Alleviation/Social Development GOVERNMENT POLICY REPORT ICTforEducation n The development of new mobile learn- ing tools is one of the most exciting new directions for ICT policy. Education at all levels—primary, secondary, and tertiary--- is being transformed via ICT. ICT is now a regular part of formal education at all levels in Colombia, and the emergence of new platforms for online learning offers the potential to bring training, education, and other benefits to a widening swath of individuals, households, businesses, and communities. At present, Colombia is a Latin Amer- ican leader in terms of deploying ICTs for education. A number of Vive Digital programs focus on this important work, especially at the primary and secondary school levels. For example, the CPE initia- tive brings ICTs to children in rural and underdeveloped areas and also provides support to teachers in the effective use of ICT tools. Since its inception in 2001, CPE has delivered nearly 700 thousand comput- ers to more than 40,000 schools. Along the way, CPE has supported technical train- ing for 14,000 teachers. Today, the ratio of students to computer terminals across Colombia has dropped to 15:1. CPE is continuing its work and intends to further empower both students and teachers in the effective use of ICTs. Future plans call for reaching a 12:1 student to computer ratio in schools and in reaching 100 percent coverage in teacher technical training. (At present, MinTIC is on track to achieve these goals by August 2014. With a more recent initiative of tablets for students associated with its recently granted high- speed 4G licenses, Colombia might even reach a ratio of 4:1!). As older computers become obsolete, CPE must also continue to upgrade outdated systems, computers, and tablets and ensure the effective dis- posal and recycling of discarded materials. In addition to continued ICT access improvements via CPE, MinTIC should also examine how ICT can improve the actual delivery of learning opportunities. These initiatives could address three broad sets of issues: 1. Improving access to education and ICT learning opportunities 2. Improving quality of education 3. Introducing new ICT-related tools and technologies to education. Improving Education Access Vive Digital 1 rightly focused its primary attention on improving access to ICT as an education tool. The many achieve- ments of the CPE program testify to the effectiveness of this approach. To increase access to ICT in primary and secondary education, MinTIC should assess whether to continue with current plans that call for continued and gradual introduction of computers for students or to embrace a more radical goal of providing one laptop (or tablet) per child. These 1:1 models, such as Uruguay’s CEIBAL or similar projects in Peru and Brazil, are generating increas- ing interest as the cost of computers and mobile devices drops. As noted elsewhere in this report, these 1:1 models generate some implementation challenges (such as high cost) but they do seem to generate important improvements in both learning outcomes and ICT proficiency. A goal of 1:1 is an achievable and attractive target for the Vive Digital 2 initiative. A new effort to help improve access to higher education may also make sense. In Chile, the Ministry of Education has used Educarchile, a national Internet educa- tion portal, as a tool to help lower-income students better prepare for the national university admissions test (PSU). This test, first introduced in 2003, has proven quite challenging for students from lower-income neighborhoods and lower- performing schools. Educarchile provides PSU training, practice tests and other tools for both teachers and students. This site is one of the most visited web portals in Chile and is serving millions of students each year. A mobile tool, PSU Movil, has been used since 2009 and similar resources are now found on social media sites like Twit- ter and Facebook. In the United States, extensive online education is the norm at community col- leges that often serve a more diverse, less affluent, and less college-ready stu- dent base. Many of these students lack the finances to afford college courses, and many need time-consuming and costly remedial education in areas like reading and math. Distance and online learning programs allow students to take courses at their own pace and at a reduced cost. These transition curricula and learning tools are increasingly popular.4 For example, in Florida, 40 percent of college students took at least one online course in 2011.5 Texas has enjoyed great success with its Developmental Summer Bridge program, which provides online remedial courses in the summer between high school comple- tion and college enrollment. Private online education provid- ers are also thriving. The University of Phoenix is likely the best known exam- ple of these schools. While the school is facing a number of growth challenges, its reach is extensive, engaging more than 30 thousand faculty members and providing online courses to more than 300 thousand students. The embrace of online education offers an important means to achieve MinTIC’s stated goals of “massifying” the Inter- net, generating a massive increase in the public’s regular and consistent use of the Internet and other ICT tools. Online edu- cation offers platforms that will allow large and rapid increases in the number of Colombians using ICT. Improving Education Quality via ICT In the area of education quality, two areas of focus have received substantial attention in recent years: the use of ICT in support- ing teacher training, and the need for more rigorous and effective evaluations and assessment. Under leadership of MinTIC and the Ministry of Education, Colom- bia has been a global leader in supporting ICT-focused teacher training. The CPE program has already trained 14 thousand teachers with a goal of eventually provid- ing such training to 28 thousand educators nationwide. Teachers’ discomfort with new technol- ogy may be a deterrent to both effective deployment in the classroom and overall support for ICT skill development among students. As it expands student access, 4 Community College Research Center, Reshaping the College Transition, A State Policy Report, November 2013. 5 state-leaders-ready-to-expand-online-higher- education-in-2013/ S D
  20. 20. GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW20 Poverty Alleviation/Social Development IMAGECOURTESYMITOPENCOURSEWAREIMAGECOURTESYMITOPENCOURSEWAREIMAGECOURTESYMITOPENCOURSEWARE MinTIC may also need to expand teacher training so that the full benefits of tech- nology in the classroom may be achieved. CPE’s successful training and outreach efforts should be continued, and could be supplemented with a new MinTIC focus on developing new curricula and new digital teaching and learning materials. MinTIC should also consider a number of approaches that can help build better connections with ICT businesses and aspir- ing entrepreneurs across Colombia. For example, a national prize competition for education-related apps and tools might be developed. This effort could be modeled on UNESCO’s King Hamad Bin Isa Al Khal- ifa Prize for the Use of ICTs in Education, which has rewarded ICT education innova- tions for the past few years. Competitions can help generate business interest in serv- ing the growing e-education marketplace. In addition, MinTIC might consider pro- viding additional support for e-education start-up acceleration programs or the development of a focused education mod- ule within the initiative. Numerous start-up acceleration programs worldwide are embracing a focus on online learning and ICT-driven education innovations. These incubator/accelerator programs nurture entrepreneurs who are developing new solutions for the education technology market. Many programs are freestanding; examples include Silicon Valley’s Imag- ine K-12 incubator and London’s EdTech incubator. Other programs are affiliated with industry associations (for example, the Software and Information Indus- try Association), major universities (like Stanford’s Schools of Education and Engi- neering), or private firms in the education market (such as Macmillan’s New Ventures Program). At the University of Pennsyl- vania, the new Education Design Studio Inc. (EDSi), affiliated with the Graduate Supporting Recommendation The Challenge: Colombia does not have a strong homegrown e-education industry. Proposed Solution: Use challenge prize programs and startup acceleration programs, such as, to help seed the startup of new e-education companies. * S D U ET T S D CLASSROOM EDUCATION Content Interaction Assessment Content Interaction Assessment Credentialing Credentialing? MOOCs Scaling Up Education MITx and other MOOCS Aspects of the educational experience reaggregated in the MOOC format MITx and edX Sharing, Teaching, Platform 2002 Sharing • Publication of material from more than 2,100 MIT courses • Uses open licenses to permit reuse • 170 million users in 10 years • No interactivity, no certificate 2012 Platform • 501c3 owned by MIT and Harvard • Open source platform for MOOCs • Building x Consortium (currently 29 universities) 2011 Teaching • MIT Massive Open Online Courses for the world • Interactivity • Certificates ALSO • Innovations in MIT’s on-campus teaching Distinguishing characteristics of MIT OpenCourseWare, MITx and edX Disaggregated aspects of the educational experience at scale online Learning Web 1.0 Web 2.0 AI/Adaptive Alternative Credentialing Content Interaction Assessment Credentialing Scaling Up Education Open Credentialing CLASSROOM EDUCATION
  21. 21. MIT TECHNOLOGY REVIEW 21 Poverty Alleviation/Social Development GOVERNMENT POLICY REPORT School of Education, serves as a combi- nation of incubator, design studio, seed fund, and social impact company in its own right. At present, EDSi operates in “virtual” space, but will take over new physical space next year. EDSi operates with a mixture of funding from local government agencies, private investors, foundations, and large firms such as McGraw Hill Education. In addition to supporting new inno- vations, MinTIC should also promote improved quality in existing ICT educa- tion initiatives. This effort requires an expanded commitment to quality assur- ance and performance measurement of program outcomes and impacts, areas that can be greatly improved via ICTs. As part of Vive Digital 2, MinTIC should work with the Ministry of Education and with other national and international accreditation agencies, such as the Latin American and Caribbean Institute for Quality in Distance Education to ensure that Colombian train- ing materials and assessment tools are of the highest quality and contribute to better education outcomes. Introducing New ICT Promotion Models and Platforms New ICT tools and services emerge nearly every day in the e-learning market, but MOOCs are receiving the bulk of public COPYRIGHT–BURTONHOYTLEE2014.ALLRIGHTSRESERVED(EDITSANDMODIFICATIONSPERMITTED). MinTIC Academy – A NEW ICT Platform and Model for Delivering Online Education and Training Content Across Colombia License International Content • MIT, Harvard, Stanford, Oxford, etc. Develop New Content Domestically • MOOCS • Courses optimized for Colombian SMEs, MSMEs, schools, households and universities Content Focus • Basic ICT skills for Colombian citizens • ICT management and leadership • Software engineering, design, coding • ICT entrepreneurship • ICT innovation processes • Strategic use of ICT for Competitive advantage and exports Use of Open Data + Open Source Content Development Improves Competitiveness • Anchor for new EduTech ICT sector in Colombia • Attracts foreign investment and partners • Supports talent development at all levels, in all sectors and communities. • Online education and social development for cities, regions, and rural areas Cross-Cutting Benefits Large Domestic Market • Primary and secondary schools • Universities • MSMEs, SMEs, large enterprises • SENA • Ministries • Regions and cities • Hospitals and clinics • Industries – agriculture, tourism, technology, etc. Large Global Export Market • LatAM • USA • Spain/Europe Users Domestic Partnerships • Universities • SENA • Industry International Partnerships • MIT • Harvard • Stanford • Cambridge Partners MinTIC Academy A scalable ICT platform and organization dedicated to the development and delivery of MOOC-like Spanish language education and training content “CODED IN COLOMBIA” Made in Colombia by Colombians for Colombian needs and users MinTIC Academy Institutional and Operational Options Option Description Public Institution • Organized and operated as a new unit within MinTIC, with MinTIC staff and internal budget • Organized as a new stand-alone public sector enterprise in partnership with MinTIC, Universities, Ministry of Education, SENA, etc. Private Sector Institution(s) • One or more new startups supported with seed funding from MinTIC via procurement or grant, and private investors • One or more established companies in Colombia contracted by MinTIC to develop all grant components of MinTIC Academy • Attract one or more US/European MOOC startups Udacity, Coursera, iVersity, etc. to establish an operation in Colombia Public/Private Hybrid Model or Partnership • A combination of the above options Option Ranking Option I Option II Option III
  22. 22. GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW22 Poverty Alleviation/Social Development attention today. MOOCs are becoming commonplace in the US and Europe, via companies like edX and Coursera, but they are a newer phenomenon in Latin America. In fact, Sao Paolo University announced what it deemed the first MOOC based in Latin America in June 2013.6 Spain’s Miriada X remains one of the best known Spanish-language MOOC platforms. By their very nature, MOOCs are avail- able to anyone, and it is not unusual for popular courses to enroll thousands of students. As such, Colombian students can and should consider enrolling in MOOCs offered in the US or elsewhere. However, there is a pressing need for more Spanish-language MOOCs and for courses that reflect local, national or regional pri- orities. EdX, Coursera, and other US-based market leaders are unlikely to develop extensive local content for the Colombian market. Thus, MinTIC may want to con- sider sponsoring homegrown development of MOOC courses for use by Colombians, and for eventual export to other Span- ish-speaking populations. Coursework in ICT-related fields, like programming or web page design, directly addresses MinTIC’s mission, but other focused coursework, on Colombian history or cul- ture, may also make sense. Some of this coursework could be adapted from existing coursework managed by Udacity; several Udacity programming courses have been translated into Spanish via a partnership with Google. Because some traditional education providers may view MOOCs as competition, MinTIC may also need to sponsor the development of its own focused curricula as well. Finally, MinTIC can use these resources to help address Vive Digi- tal 2’s important goals of expanding SME use of ICTs. Special courses and workshops focused on SME needs and issues could be delivered via these technologies. A more expansive approach would involve MinTIC support for the creation of a new online platform or online uni- versity—MinTIC Academy—the first of its kind in Latin America and one of the first worldwide as well. This effort would help to position Colombia as a global leader in online education, and also serve as a vehicle for a host of MinTIC-related offerings and 6 https://www.edsurge. com/n/2013-06-17-latin-america-s-first-mooc training in key ICT skills and competen- cies and in other areas, such as e-health and mobile finance. This platform should not be limited to university-level training; it should be customized to serve a wide range of audiences. There is no real limit to the range of potential offerings. Within the areas addressed in the Vive Digital framework, issues like financial literacy, entrepreneurship, SME technical assis- tance, youth engagement, teacher training, and many more areas could benefit from new online learning platforms. To be truly effective, this platform should focus on Colombia’s domestic needs and interests and provide funding to develop content addressing key Colombian markets. Because of the challenges related to the development and marketing of new content via MOOCs, MinTIC should undertake additional evaluations to assess Core Recommendation The Challenge: Colombia lacks a scalable online learning platform that can reach large parts of its population and targeted learning communities, such as teachers, SME managers, or mothers. Proposed Solution: MinTIC Academy, Colombia’s first fully online education and training platform. * the best potential management and struc- ture for this new online learning platform Three options exist: 1. To “own” and manage the platform at MinTIC, 2. To partner with Colombian education providers to develop, manage, and market content, and 3. To develop formal partnerships with existing market leaders, such as MIT OpenCourseware, MITx, or the edX consortium. This last option would serve as the simplest and lowest-cost approach for the initial first step. The global OpenCourse- ware Consortium already includes 250 international universities with more than 13 thousand online courses in 20 different languages. As the platform is developed, additional steps to create more local content and more content for non-univer- sity-level audiences must be a top priority. MinTIC and its potential partners should commit to announcing the creation of the new platform within their first six months and Vive Digital 2 and to opening the first MOOC courses within the first year of operations. ICTforHealth n Effective use of ICT and related tech- nologies has proved to improve health care outcomes greatly. E-health is a rap- COPYRIGHT–BURTONHOYTLEE2012-2013 ET ET T Patient medical records waiting digitization, Archives Room, Hospital Local del Norte, Bucuramanga, Santander region, Colombia, March 2012.
  23. 23. MIT TECHNOLOGY REVIEW 23 Poverty Alleviation/Social Development GOVERNMENT POLICY REPORT idly growing field that is helping to improve health-care quality, expand the provision of care to underserved populations, and also help reduce health-care costs. New ICT tools such as digital medical records that facilitate e-prescriptions, e-referrals, and other new services have the potential to transform the delivery of health ser- vices. As a recent Inter-American Develop- ment Bank analysis noted, e-health services deliver four types of benefits. In addition to improving the care delivered at clinics and hospitals, they help to: 1. Create better informed patients. 2. Deliver information directly to the point of care. 3. Extend care to previously underserved communities. 4. Lower the cost of service delivery.7 MinTIC and other state ministries have long embraced the concepts of e-health. In addition, a number of universities and research centers, led by the Colombia Telemedicine Center of Cali, are devel- oping new tools, resources, and training programs. Creating effective data privacy rules is an essential first step for effective e-health policies. Fortunately, recent revisions to Colombia’s personal data protection laws have aligned Colombia’s rules and practices with similar rules used by other leading Latin American nations and across the globe. The World Health Organization’s most recent eHealth Country Profile series also notes that many of the key legal and regulatory foundations are in place in Colombia.8 7 Inter-American Development Bank, Bridging Gaps, Building Opportunities: Broadband as a Catalyst of Economic Growth and Social Progress in Latin America and the Caribbean, March 2012, p. 27. 8 World Health Organization, Global Observatory for eHealth. Available at: ehealth_series_vol1/en/index.html Core Recommendation The Challenge: To create more public support for the acceleration of e-health programs in Colombia. Proposed Solution: Support development of a national e-health plan, with MinTIC support provided by a newly designated e-health coordinator. * A National E-Health Strategy As a next step, MinTIC should consider sponsoring or advocating for develop- ment of a national e-health action plan in cooperation with key health-related agencies. As part of this effort, MinTIC should consider designating a national level e-health coordinator to help manage the planning process. Because of the tre- mendous complexities related to various aspects of e-health policies, national level planning to coordinate multiple agencies and disciplines is needed. In addition to addressing key legal and regulatory issues, this national plan can help set a frame- work for new investment in health ICT infrastructure. These national level strategies are rec- ommended as preferred practice by many international and regional organizations, including the World Health Organization, the Pan-American Health Organization, the International Telecommunications Union (ITU), the OECD, the European Union (EU), and many others. The ITU and key partners have developed special- ized tool kits to assist in the development of such plans.9 In Europe, the EU has embarked on development of a new 2012- 2020 e-health action plan to coordinate data rules and to develop telemedicine technical standards across member states. A similar effort is needed in Colombia, perhaps in cooperation with other Latin American nations. Electronic Health Records (EHRs) This strategy should place particular attention on how to manage digital health records. Management and control of per- sonal health records is proving to be a major obstacle in the development and expansion of mobile health services. In the US and other developed economies, EHRs have been used for some time, but issues over EHR management have greatly complicated moves toward full digitization of health services.10 EHR systems are not 9 International Telecommunications Union, National E-Health Strategy Toolkit, (Geneva: ITU, 2012). Available at: pub/D-STR-E_HEALTH.05-2012 10 Kyle Murphy, “Is Mobile the Key to EHR Interoperability, Fragmentation?” EHR Intelligence, October 23, 2013. Available at: ehrintelligence. com/2013/10/23/is-mobile-the-key-to-ehr- interoperability-fragmentation/ inter-operable and the large number of new technologies and services further com- plicates the mix. These challenges could be lessened if patients were provided with remote real-time access to and control of their own personal health records.11 Suc- cessful e-health initiatives also meet the operational needs of health-care provid- ers, including doctors, public health offices, and hospitals. E-health services will not be adopted if they are too complicated, unreliable or incompatible with existing processes. ICTforFinancialLiteracy andEmpowerment n With cell phone penetration rates that exceed 100 percent, Colombia is poised to be a regional and global leader in mobile banking and related fields. Numerous stud- ies project massive growth in mobile bank- ing utilization across Latin America over the next several years.12 Other research, from the World Bank Group’s International Finance Corporation (IFC) and from the MasterCard Mobile Payments Readiness Index, notes that Colombians are ready and willing to use mobile banking services. The needed regulatory infrastructure is in place, but many are deterred by the high cost of these services and other non-ICT- related factors, such as overall low savings rates. These trends offer opportunities to reduce costs and to improve services, but, more important, they offer a means to reach new and underserved custom- ers, particularly those with lower incomes or residents of relatively isolated rural regions. Using ICT technology for finan- cial inclusion is proving to be a successful strategy around the globe. Kenya is prob- ably the best known example of this process and the benefits of new mobile technolo- gies for financial inclusion. Prior to the advent of mobile money (2006), only 20 percent of Kenyans had access to financial 11 “Frost and Sullivan Examines the Future of On-Demand Mobile Personal Health Records,” Press Release, October 22, 2013. Available at: pag?docid=286610401 12 See, for example, Deloitte, The Future of Mobile Banking in Latin America, 2011 Report. Available at: Local%20Assets/Documents/FSI/US_FSI_ Mobilebanking_Latin_America_121511.pdf D S D D D
  24. 24. GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW24 Poverty Alleviation/Social Development services. By 2010, 75 percent of Kenyans had used such services.13 While the Kenyan success story is regularly touted, few other nations have been able to emulate this impressive per- formance. Kenya’s success developed not simply because of the power of ICT, but because mobile-money efforts were well integrated into a national network of finan- cial agents who could benefit from a large and ready pool of customers. Effective strategies in Colombia will depend not just on new technologies, but on the abil- ity to link mobile-money services to a wide and available network of service points in stores, kiosks, mobile devices, and the like. The adoption of mobile economy tools will depend upon success in helping Colom- bians transition from their traditional reliance on the cash economy. Despite extensive cell phone pen- etration rates, Colombia has been less successful in encouraging full and effective use of new mobile banking services. In fact, Colombia has one of the largest gaps in Latin America between mobile penetration rates and financial inclusion.14 While more affluent customers are embracing mobile banking, penetration rates among the poor remain low. A recent study of mobile phone use by informal workers in Medel- lin found that most respondents used cell phones for personal calls and opted to use game kiosks for financial services.15 These kiosks were viewed as more convenient and better structured to deal with the small payments and small transactions required by most local customers. Most did not see a need for banking services, which were viewed as too costly and too complex. The analysis recommends that kiosks and other points of sale should be tapped as part of a nationwide network to provide financial services. This digital network, with a focus on the poor and unbanked, would serve as 13 Fatima Yousif et al., Best Practices in Mobile Microfinance, Grameen Foundation White Paper, 2013, p. 2. Available at: grameen_microfinance_white_paper.pdf 14 Ericsson Consumer Lab, M-Commerce in Latin America, June 2013. Available at: res/docs/2013/consumerlab/m-commerce-in-latam. pdf. 15 Ana Maria Echeverry Villa and Coppelia Herran Cuertas, Betting on Chance in Colombia, Irvine: CA: Institute for Money, Technology and Financial Inclusion, 2013. Available at: imtfi/docs/2013/betting_on_chance_in_colombia_ english_final.pdf a supplement to the mobile banking ser- vices under development by banks and other private lenders. The current reliance on kiosks suggests that any shifts toward mobile banking should include this onsite distribution channel as well. Linking mobile banking and micro- finance programs has also proved to be an effective development strategy. An extensive literature on best practices in ICT-driven microfinance has been devel- oped by global microfinance institutions (MFIs) like Grameen Bank and others.16 This research suggests that there is no one single effective business model and strategy for mobile microfinance services. As such, industry experts recommend the design of pilot demonstration projects to test dif- ferent models and approaches. MinTIC should consider working with regional governments to test a handful of business models for effective mobile microfinance services. A final option would be to consider sup- port for national, regional, or local crowd funding platforms modeled on existing tools such as Kiva, Kickstarter, or Indi- egogo. These sites could be focused on a specific region or specific focus areas, such as business startups, nonprofits, or arts and culture related projects. This effort offers another means to help publicize the power of ICT platforms to assist Colombi- ans in accessing capital for needed projects or startups. In Colombia, cultural and business factors seem to outweigh technology shortcomings as a primary impediment to greater use of mobile banking services. Therefore these efforts should be accom- panied by an extensive outreach campaign that touts the benefits of mobile banking. Sample Metrics This fundamental area of the Vive Digital strategy covers a wide array of issues, and thus complicates our capacity to develop a single set of shared metrics. Each subfield, such as e-health or e-education, must rely on specialized metrics and performance assessment systems. Fortunately, most of these disciplines can also point to well- established best practices for performance measurement, such as the PISA assess- 16 Yousif et al. ments of digital learning or the ITU’s toolkit for tracking e-health performance. More generally, MinTIC should con- tinue to utilize the core access metrics that have driven assessment of the original Vive Digital strategy. These include the follow- ing measurements: 1. Connections: The scale and scope of municipal, business, and home connections to fiber optic networks and high-speed Internet connections 2. Penetration: Increases in access to key ICT tools and services, such as ICT access in schools; training teachers to be comfortable with ICT tools; and increases in use of new services, such as mobile bank- ing or e-health services 3. Economic Impacts: Increases in stu- dents entering ICT and related fields, and the creation of new jobs, new wealth, and new business ventures based on ICT and assessed at the local, regional, and national levels. These access measures should be sup- plemented by other metrics that capture Colombia’s continued success in promoting digitization.17 These include the following: 1. Ubiquity: access to digital services and applications 2. Affordability: availability through low pricing 3. Reliability: quality and consistency of connection 4. Speed: real-time data throughput rates 5. Usability: ease of getting on line and ease of use 6. Skill: incorporation of digital services into lives and businesses. 17 El Darwiche et al, p. 3.
  25. 25. Competitiveness IN THIS SECTION Overview ICT and Competitiveness by Strategic Sector Adoption of ICT among MSMEs to Promote Competitiveness ICT and Regional Competitiveness Smart Cities ICT Adoption in Government Metrics and Performance Impacts MinTIC’s mission to use ICT as a path to prosperity and economic develop- ment requires expanding and deepening business and government use of ICT technologies. This component of the Vive Digital 2 strategy seeks to leverage MinTIC’s ICT investments to make the Colombian economy more competitive and innovative by improving industry productivity and government efficiency. It addresses approaches to ICT development for strategic industry sectors, support for micro-, small, and medium enterprises (MSMEs), regional competitiveness, and e-government. STUARTBRADFORD
  26. 26. GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW26 Competitiveness ET D T Core Recommendations 1. Adopt a National E-Agriculture Strategy: Colombia’s agriculture sectors are global industry leaders and major employers across the country. Efforts to improve the productivity of Colombian agriculture via ICT investments can have large ripple effects across the economy. MinTIC should develop new initiatives, in partnership with the ICT and agribusiness sectors, to provide ICT training, facilitate creation of sector-specific apps, develop information content, and identify market potential for advanced ICT-agribusiness products or services that can be developed within Colombia. 2. Build ICT Capacity in SMEs: Encourage SMEs in all sectors to embrace the active use of ICT tools and technologies, via actions such as: • Offering ICT training, education and funding to deepen the ICT capacity of SMEs that already use basic technology tools (“technology followers”) • Creating MinTIC-approved training and content to upgrade digital skills and encourage using them to deepen the ICT capacity of SMEs • Providing vouchers to subsidize purchase of ICT products and services. 3. Embrace E-Government: Formalize MinTIC as the lead organization for e-government initiatives at the national level in order to achieve a “whole-of-government” approach and management of a single portal for citizen services, develop a long-term technology road map, and build political support to address evolving ICT issues in government. This effort should include the establishment of a regional center of ICT innovation for e-government that would serve as a national thought leader on effective strategies. 4. Embrace open-source software. Adopt a positive and proactive policy towards the development, use, and sharing of open-source software and related code that would apply to all government levels, public health, and higher education institutions. Supporting Recommendations 1. Convene an ICT industry plus logistics sector summit to select one top priority among the needs already identified (such as port security or prediction systems for warehouse traffic) and create a project team (funded by MinTIC and industry partners) to provide a solution within one year. 2. Implement the strategies and actions from the Strategic Vision of the Software and Associated Services Sector Regionalized Marketing and Sales Plan. 3. Adapt outreach techniques developed through Redvolucion and IT Mujeres to provide basic computer and Internet training through multiple channels to micro- and small businesses with low levels of technology adoption. 4. Engage SMEs with high levels of technology adoption in regional cluster initiatives, the proposed regional centers of IT innovation, and university entrepreneurship and innovation centers. Promote access to financing and ICT training programs, such as the proposed innovation funds and MinTIC training and certification programs. 5. Expand the Mipyme digital pilot program to work with large enterprises to introduce ICT to MSMEs in their supply chains. 6. Adopt a bottom-up approach with regions, one which employs local stakeholder- and user-driven priorities and needs, in order to identify specific activities for sectoral and regional ICT initiatives. 7. Pursue a platform approach to smart-cities programs, one that provides governance guidelines while allowing bottom-up innovation and creation of an ecosystem around the initiatives. Engage universities and the proposed regional centers of ICTinnovation—as well as government and private industry—to form the ecosystem around the smart cities initiative. 8. Prepare policy guidelines addressing data practices and privacy issues, for use by government entities at all levels. 9. Adopt a positive and proactive policy towards development, use/adoption, maintenance, and sharing of ”open data” for commercial and not-for-profit applications. This policy would apply to the national government, regional, and city governments, public health and higher education institutions. 10. Create and foster open-data communities of practice across Colombia. T * * ET
  27. 27. MIT TECHNOLOGY REVIEW 27GOVERNMENT POLICY REPORT ICTandCompetitiveness byStrategicSector n ICT infrastructure can enable productiv- ity and efficiency gains by industry sector, but to be transformational, services (infor- mation, apps and software) that meet the specific needs of each sector must be avail- able. This section summarizes major ICT topics and services that have been identi- fied as most important in driving growth for a set of Colombia’s strategic sectors. This section is organized around the country’s strategic sectors—agribusiness, manufacturing, and services—as identi- fied in the Vive Digital 2 framework and consistent with the investment sectors used by the Ministry of Commerce, Indus- try and Tourism (MinCIT)1 and Proexport Colombia. Within these three sectors we focus attention on the “productive bets” that were identified in the FITI report2 as most promising for ICT development in the regions. Responding to the high pri- ority given to trade and transportation by the national government, we also high- light opportunities related to the logistics segment in Colombia. (The information technology industry itself is addressed in Framework 3.) Agribusiness Agriculture accounts for 6.5 percent of Colombia’s GDP and 18 percent of its employment.3 Agricultural products— especially coffee, flowers, bananas and sugar—are major export products. Palm oil, rubber, cocoa, and sugar cane have been identified as areas of opportunity.4 Other major products include rice, tobacco, corn, beef, shrimp, chocolate and confectionery, 1 2 APCA Consortium ETI, Strategic Vision of the Software and Associated Services Sector Regionalized Marketing and Sales Plan of the Sector in Colombia. Executive Summary. 2013. 3 4 ProExport Colombia, Colombian Agribusiness Sector, 2011. www. palm and biofuels, fruits and vegetables, and milk.5 Across the sector, ICT has tremendous potential to help both small-scale farmers and major agricultural enterprises become more productive, expand their operations, find new markets and sales channels, and/ or become export ready.6 In Colombia, the Coffee Region and the Pacific Region have identified the agro- industrial sector as a primary target for ICT development. Fedesoft estimates agricul- ture is the fifth-largest sector in demand for software. However, only 22 companies—or 2.3 percent of the total—provide software services for this sector. These companies include Apolo, Surtifacil, Insoft, SIO, Open Systems and Parquesoft.7 ICT can enhance the competitiveness of the agriculture sector in the following ways: • Providing access to market informa- tion, including current market prices, market demand, and customer identifi- cation. Providing access to other critical information, including weather updates, water conditions, crop-specific educa- tional content, and guidance on how to treat pests and diseases • Facilitating transactions, ranging from text messaging or mobile services, to negotiations between buyers and sellers, to non-cash methods of payment, or even microinsurance8 • Enabling tracking/tracing to enhance food safety and security while also enabling farmers to meet export stan- dards, for example, the TRAZ.AR tracing program for cattle in Argentina9 • Improving supply-chain efficiencies to reduce waste • Implementing applications for agribusi- ness, including precision agriculture to “map weather, water, soil characteristics, and other variables and to precisely apply 5, MinTIC comments on MinTIC Policy Report: Draft Outline October 15, 2013. 6 United Nations Conference on Trade and Development (UNCTAD), Information Economy Report 2011. ICT as an Enabler for Private Sector Development, en.pdf ; The World Bank Group, ICT for Greater Development Impact. Sector Strategy, 2012. EXTINFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/ Resources/WBG_ICT_Strategy-2012.pdf; Inter-American Development Bank, The Imperative of Innovation. Creating Prosperity in Latin America and the Caribbean aspx?docnum=36526246 2011; International Trends in ITC, MIT Technology Review, 2014. 7 APCA Consortium ETI Strategic Vision. Executive Summary. 2013. 8 UNCTAD 2011. 9 International Trends in ITC . p.48 f. fertilizers or pesticides or time harvests” and apps to track and improve farm management processes10 • Funding biotechnology and bioinformat- ics research. For example, ICT programs and services may be integrated with ongoing research programs, such as Cenicafe (coffee), Cenicana (sugar cane), and CEINACUA (shrimp). MinTIC and partners have already identified this as a promising strategy, proposing a center of bioinformatics and computational biol- ogy in the Coffee region—supported by Microsoft, Colciencias, MinTIC, National University and SUMA—to provide “ser- vices in processing and storage of data, development of software and scientific and technical support to companies.”11 There appear to be several national- level and regional partners through which MinTIC can pursue agriculture-related ini- tiatives. In addition to those listed above, the Colombian Corporation for Agricul- ture and Farming Research (CORPOICA), seeks to generate and transfer scientific knowledge and technological solutions to the agricultural sector12 and the Desarrollo Rural con Equidad (DRE—Rural Devel- opment and Equality Program), created by the Ministry of Agriculture and Rural Development and managed by Finagro under the auspices of the National Univer- sity of Colombia, offers credit and technical assistance incentives. DRE also subsidizes up to 80 percent of the technical-assistance contracting costs of small producers. Both appear to be promising partners.13 10 Ibid. 11 APCA Consortium ETI, 2013, p. 44. 12 Inter-American Development Bank, 2011. 13 ProExport Colombia, Colombian Agribusiness Sector, 2011. Core Recommendation The Challenge: The agribusiness sector needsaccesstoICTtraining,tools,andtalent toimproveproductivity,expandgrowth opportunities,andbecomemorecompetitive. Proposed Solution: Partner MinTIC services and the ICT industry with existing public and private organizations serving the agribusiness sector to provide ICT training, facilitate creation of sector-specific apps, develop information content, and identify market potential for advanced ICT- agribusiness products or services that can be developed within Colombia * Competitiveness ET T D
  28. 28. GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW28 Manufacturing Industry accounts for 37.5 percent of Colombia’s GDP and 13 percent of its employment. Major categories include textiles, food processing, oil, clothing and footwear, beverages, chemicals, cement, gold, coal, and emeralds.14 Auto parts, graphic communication, cosmetics, iron and steelworking, metalworking, textiles, and clothing have been identified as areas of opportunity by MinTIC and MinCIT.15 ICT is both an integral part of the global modern manufacturing sector but a weak- ness for many manufacturing SMEs. This provides an opportunity to raise productiv- ity among the latter set of firms that may not be fully comfortable with ICT-focused investments. Challenges to improving productivity in the Latin American man- ufacturing SME sector include lack of knowledge about best practices, delays in adopting new technologies (including ICT), difficulty in integrating into global supply chains, and a lack of market-based advisory services designed for SMEs.16 None of the “productive bets” identi- fied in the FITI report at the regional level are traditional manufacturing industries. However, the Santander Region has identi- fied mining and hydrocarbons as a primary target for ICT development. This sector includes oil and gas, biofuels, and deriva- tives and addresses not just exploration, but also research, business activities, and support services around refining and pro- duction. ICT-related opportunities include furnishing software services to firms in these arenas. It is not clear how big the base 14 15 MinTIC comments on MinTIC Policy Report: Draft Outline October 15, 2013 and 16 Scott Andes, Stephen Ezell, and Jesus Leal, An Alternative to Mercantilism: Manufacturing Extension Services in Latin American and Caribbean Countries,The Information Technology Innovation Foundation, 2013. latin-america-caribbean.pdf is, but the Forum for Information Technol- ogy Initiatives (FITI) reports that relevant IT firms work primarily in consulting and “informatics programs,” followed by data processing and maintenance and repair of office equipment. The specific applications that will be valuable to industrial firms will vary widely by industry and company size and sophis- tication. Here we summarize overall policy approaches to accelerating and deepen- ing enterprise adoption of ICT, which can enhance the competitiveness of the manu- facturing sector: • For the majority of manufacturing SMEs, policy approaches should be: ·· Offer basic training, tailored to manufacturing enterprises, exist- ing productivity and communication tools, which may range from basic spreadsheets to production-schedul- ing tools. ·· Support development of industry- specific content for marketing/sales outreach (creating websites, using e-mail and social media for customer contact); share market and trends information, and create best-prac- tices content and case studies. ·· Teach how to use various ICT- enabled transaction tools such as payment services or money transfer, and possibly connect firms to more sophisticated credit, savings, and insurance financial services. • For more sophisticated SMEs with greater growth potential: ·· Introduce cloud-based services that can lower ICT costs to businesses. (Inform, train, connect). ·· Offer ICT training or services to enable firms to become export ready—via global market information, standards adoption and training, international certifications, and connecting to the supply chain. ·· Raise awareness of ongoing ICT-related innovation and RD ini- tiatives in their industry and region, primarily through the cluster initia- tive and centers of excellence. MinTIC may not be the right entity to provide all of these services directly to manufacturing SMEs, though the proposed MinTIC Academy can play a developmen- tal and supporting role. Prior to changing their behavior, small businesses tend to turn first to peers in their community or industry, then to trusted intermediaries, such as trade groups, educational insti- tutions, or local leaders. ICT services to manufacturing SMEs should be provided via trusted intermediaries and existing industry communities. Accordingly, MinTIC should not lead— except as a convener—but should partner with existing industry groups (such as ACOLFA (Colombian Association of Auto Parts Manufacturers) or Clúster Textil y Confección in the textile industry) and business service providers (including the National Apprenticeship Service (SENA) and Productive Transformation Programs (PTP)) to offer relevant ICT programming. To the extent possible, MinTIC should join existing industry support initiatives to learn more about industry issues and how MinTIC can help, rather than pushing ICT solutions on their own. To expand this network and encourage ICT adoption, vouchers or other incentives for ICT or innovation-related services and purchases should be provided. As Frame- work 3 observes, the innovation voucher approach will also create demand for ICT services and help that sector to develop. Large, sophisticated manufacturing firms will need an entirely different type of ICT support service since they have the resources and experience to implement their own internal ICT processes. They are more likely to look to MinTIC for policy support for intellectual property rights protection, RD/innovation investments (already in place, for example, via Col- ciencias, the Administrative Department of Science, Technology, and Innovation), and are more willing to participate in new programs—such as the CEMEX-MinTIC effort. Finally, access to top-quality IT talent is often a critical issue for large firms, regardless of sector. Talent will be addressed separately in Framework Area 4. Services Services account for 56 percent of Colom- bia’s GDP and 68 percent of employment.17 Energy, business-process outsourcing and offshoring (BPOO), and nature and health 17 Competitiveness D ET D
  29. 29. MIT TECHNOLOGY REVIEW 29GOVERNMENT POLICY REPORT tourism have been identified as areas of opportunity. Electrical energy and ser- vices are also included under PTP18 in this category, as is software and ICT, which is covered separately under Framework 3 in this report. Bankingandfinancialservices has been identified as a focal point in the FITI report for the Cundinamarca region, but is not highlighted elsewhere as a priority sec- tor. In Colombia, as in other countries, the banking and financial sector is a major con- sumer of ICT services. These ICT products and services may be developed and ser- viced internally or they may be outsourced to other firms or universities. Banks also exhibit a high demand for internationally certified talent, often buy foreign soft- ware, and are reportedly dissatisfied with the existing Colombian products in this niche. Growth opportunities are seen in offshoring, custom development, testing, and adapting software to local markets.19 The Antioquia Region has identified the energy services sector as a primary target for ICT development. This sector includes electrical energy generation and transmission. The cluster includes several major companies as well as a large base of microenterprises, a strong chamber of commerce as a unifying agent, research organizations, university involvement, and a small set of software companies that serve the industry.20 The PTP also recognizes this sector, emphasizing actions related to “spe- cialization, the adoption of international standards, certifications, or best practice models” to support industry growth. Business Process Outsourcing and Off- shoring(BPO) is not identified as a primary target for ICT development at the regional level in the FITI report. However, it is a pri- 18 19 APCA Consortium ETI, 2013, p. 40-41. 20 APCA Consortium ETI, 2013. ority sector for both the PTP and Proexport Colombia. This sector reportedly created 84 thousand jobs in 2011 and grew 61 per- cent over the last four years for a total of 210,700 positions in 2012. Major segments served are telecommunications, “other,” and banking services, with the majority (60 percent) of these jobs in inbound call centers. Back office operations account for only 6 percent of the total. Talent is a major issue for this segment, and the government has already initiated targeted programs to address BPO workforce needs. They include a US $12 million initiative between the Inter-American Development Bank (IDB) and PTP to strengthen Colombia’s human capital through a “finishing school” model, and the $18m Instituto Colombiano de Credito Educativo y Estudios Tecnicos en el Exterior (ICETEX) and MinTIC Talento Digital effort to train ICT talent.21 Tourism is not identified as a primary target for ICT development in the FITI report. However, it is a priority sector for both the PTP and Proexport Colombia. The tourism industry in Colombia is growing rapidly (10 percent average annual growth from 2000-2012). The PTP breaks the industry down into medical tourism and wellness (building on the country’s well- regarded and relatively inexpensive health care sector and proximity to key population centers in the Americas) and nature tour- ism (building on the country’s biodiversity and its large number of protected areas). The key issues here are developing 21 labor specialties, study programs, and promotion. On the front end, broadband access is also critically important for com- munication and outreach , using websites, social media, and e-commerce channels22 to provide services to potential customers around the world. IT-enabled back-office functions for managing operations effi- ciently are also vital to success. Each of these subsectors will require tailored ICT initiatives, but a unifying theme is the need to develop industry and ICT talent. The question of talent will be addressed directly in Framework Area 4, but its key themes include raising overall education levels, helping individuals obtain relevant industry and international certi- fications, and supporting second language and multiple language (especially English) proficiency. Logistics Foreign trade in Colombia is expected to triple over the next five years (especially in oil, gas and coal).23 Transportation and logistics is one of the most promising areas in which ICT investments can significantly increase competitiveness, with a large impact on output and other economic mea- sures. For example, a 10 percent reduction in freight costs could increase international imports by 45 percent and regional imports by 60 percent. Improving two key supply- chain barriers—border administration and transport and communications infrastruc- 22 Inter-American Development Bank, Bridging Gaps, Building Opportunity. Broadband as a Catalyst of Economic Growth and Social Progress in Latin America and the Caribbean. A View from Industry. 2012. 23 APCA Consortium ETI, 2013, p. 32. CREDIT:OECD/ECLAC/DEVELOPMENTBANKOFLATINAMERICA(CAF)(2013),LATIN AMERICANECONOMICOUTLOOK2014:LOGISTICSANDCOMPETITIVENESSFOR DEVELOPMENT,OECDPUBLISHING. Chapter 4 ARG   BOL   BRA   CHL   COL   CRI  DOM   ECU   GTM   JAM   MEX   PER   URY  VEN   -­‐40000   -­‐30000   -­‐20000   -­‐10000   0   10000   20000   30000   40000   50000   60000   -­‐1   -­‐0.5   0   0.5   1   1.5   OECD   Other  countries     Lacn  America     LaborproductivitynotexplainedbyGDPpercapita Logistics performance not explained by GDP per capita MEX   Competitiveness T Logistics and Labor Productivity (values)
  30. 30. GOVERNMENT POLICY REPORTMIT TECHNOLOGY REVIEW30 ture and related services— “even halfway to the world’s best practices” would reportedly increase global GDP by nearly 5 percent and exports by 14.5 percent.24 Latin America, and Colombia specifi- cally, have a relatively high proportion of “time-sensitive and logistics-intensive exports” (such as agricultural products, energy products (oil, gas and coal) and clothing) but they still lag OECD coun- tries on logistics/infrastructure measures. ICT for logistics is one of four short-term investment categories recommended by the OECD for improving performance. If logistics includes “all the services and processes needed to transport goods and services from the point of production to the end consumer,” areas of ICT-related needs range from administrative and cus- toms procedures to transport organization and management to tracking and tracing services. Robust and reliable telecommu- nications infrastructure is also vital. 25 Colombia is already addressing its logistics challenges. The country is “under- taking massive developmental initiatives to build up its infrastructure,” investing in airports, roads, highways, and seaports.26 The National Development Plan seeks to triple port capacity.27 Colombia has also made important ICT-related progress in 24 OECD, Policies for Boosting Logistics Performance in Latin America, in Latin American Economic Outlook 2014, pp. 125-157. 2013 citing the World Economic Forum. 25 Ibid. 26 Gartner, Analysis of Colombia as an Offshore Services Location, October 2012. 27 APCA Consortium ETI, 2013. document handling and customs proce- dures, and has implemented electronic data interchanges for taxes and duties (MUISCA) and the single window for for- eign trade (VUCE). The OECD reports that, “In all, the time required for document preparation, customs clearance and tech- nical control, as well as port and terminal handling, is competitive as compared to other Latin American countries and close to high-income OECD economies.”28 The Caribbean region has identified logistics and transport as a primary target for ICT development. 67 percent of the country’s port traffic is in the Caribbean region (2011). Of this traffic, 72 percent is attributable to foreign trade, while the remainder comes from loading, trans- fers, and transits. Looked at another way, 56 percent of exports and imports went through Caribbean ports. Furthermore, the Caribbean region accounts for 15 percent of the country’s passenger traffic. Beyond the Caribbean region, Bogotá reportedly has the leading airport in Latin America by total cargo traffic.29 The logistics sector may have a core of potential “anchor companies” or multi- national corporations with which to build relationships. The FITI report notes that 15 of the largest marine transport companies 28 World Bank, Doing Business in Colombia 2013, Executive Summary, p. 4. Subnational-Reports/DB13-Colombia-Overview.pdf 29 Proexport Colombia, Automotive Industry in Colombia, April 2012. in%20Colombia%20-%20April%202012.pdf in the world are located in the Caribbean region, and it seems unlikely they are there merely for sales, in contrast to the ICT mul- tinationals operating in Colombia. The logistics sector is inherently ICT- oriented. Companies generally do not have to be convinced that it is worthwhile to become ICT-savvy. Other advantages from MinTIC’s perspective is that this sector appears to have anchor companies in the country already, global standards have been established, and Colombia has already made strong progress in its national ICT systems. Strong growth is forecast, with accompanying opportuni- ties for many of the other strategic sectors and regional productive bets. Furthermore, ICT investments in this sector may be per- ceived as relatively inexpensive compared to the massive infrastructure investments underway. ICT can enhance the competitiveness of the transportation and logistics sector in the following ways: • Regional needs identified by FITI:30 ·· software and information systems for port security ·· crane simulators ·· tugs and optimum docking ·· prediction systems of warehouse traffic ·· mobility in ports ·· meteorological and climate predictions. • Foci to improve global competitiveness:31 ·· Customs automation ·· Ability to track and trace goods in transit at every stage of the process ·· Risk analysis for trade in goods ·· Electronic submission of customs forms and documents ·· Information management and terminal operations ·· Electronic “single window” for import and export documentation (VUCE) ·· Streamlining technical and administrative procedures. MinTIC should coordinate with other national level organizations that are 30 APCA Consortium ETI, 2013, p. 33. 31 OECD, Policies for Boosting Logistics Performance in Latin America. SOURCE:WORLDECONOMICFORUM Competitiveness Ambitious scenario Countries improve trade facilitation halfway to global best practice Modest scenario Countries improve trade facilitation halfway to regional best practice Tariffs All tariffs removed globally 4.7% 14.5% 2.6% 9.4% 0.7% 10.1% 2.6 1.6 1.5 1.0 0.4 1.1 The GDP effect of reducing supply chain barriers is much higher than for removing tariffs 3 2 1 0 Trade GDP ($USTRILLION) Increase in trade and GDP under three barrier-removal scenarios