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Ic ts as an enabler for private sector development remi lang, unctad
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  • 1. Presentation at e-Asia 2011 Dhaka, 2 December 2011 Rémi Lang ICT Analysis Section UNCTAD INFORMATION ECONOMY REPORT 2011 ICTs as an Enabler for Private Sector Development www.unctad.org/ier2011 www.e-asia.org
  • 2. Private Sector Development Matters
    • … to create jobs, raise incomes and productivity and generate government revenue
    • Innovative action is needed to accelerate progress
    • Report argues: new ICT landscape opens new possibilities which must be better exploited
    The private sector therefore is a key to sustained, inclusive and equitable economic growth and sustainable development in LDCs. “ ” Source: Programme of Action for the LDCs for the Decade 2011–2020, para. 54.
  • 3. Four facets of the ICT-PSD interface Sources: UNCTAD.
  • 4. Affordable ICT Infrastructure and PSD
    • Critical determinant of the investment climate
    • Private sector also leading in developing ICT infrastructure
      • Especially in mobile telephony
    • Success factors: Liberalization, effective regulation and public-private partnerships
    • Cheap, fast, and reliable access key to South Asian ICT success
    Investment value of telecom infrastructure projects with private participation, by region, 1990-2009 (MUS$) Source: UNCTAD, World Bank, UNECA.
  • 5. Enterprise use of ICTs
    • ICT use in enterprises higher productivity
    • Potential benefits
      • Better access to information, knowledge and markets
      • Better communication along the value chain
      • Easier interaction with government
      • Mobile phone applications can be game-changing for (informal) SMEs (mobile-money, access to social networks and other internet related tools)
    • Large divides remain in terms of use and needs
      • Between countries at different levels of development
      • Between industries
      • Between companies of different size (large/medium vs small/micro)
    • Government has key role to play to boost ICT uptake (education, training, conducive regulatory framework).
  • 6. ICT Production: a Key Part of the Private Sector
    • A vibrant ICT sector contributes to PSD
      • Creates jobs (including for the poor), spurs innovation and supports ICT use in the economy
    • Growing importance in many developing countries
      • Malaysia: ICT sector accounts for 12% of business sector value added
      • India: ICT sector ’ s share of GDP up from 3.4% (2001) to 5.9% (2008)
    • New opportunities arising in low-income countries
      • Mobile sector – informal and formal enterprises – >10 million jobs, most of which in airtime distribution
      • Outsourcing of micro-work (e.g. in Bangladesh and India)
    • IT-BPO success story
    • Policy areas: regulations, skills availability, demand creation, innovation
    Source: UNCTAD, World Bank, Orbicom.
  • 7. Making PSD Interventions More Effective and Inclusive
    • Opportunities for cost and time savings for businesses
    • Many functional areas of business environment reform potentially affected, e.g:
      • Business registration and licensing
      • Tax administration
      • Land titles, registers and administration
      • Overall governance (transparency)
      • Access to information and finance
    • Special attention in Report given to:
      • ICT and business development services
      • Mobile money and PSD
      • ICTs in support of women ’ s entrepreneurship
  • 8. Many PSD Strategies Lack ICT Dimension Review of Donors Strategy Documents
    • 22 PSD documents from bilateral donors
      • 41% made no reference to ICTs
      • 32% referred to ICT infrastructure
      • 9% referred to the ICT producing sector or ICT use in enterprises
      • 27% noted that PSD interventions be more effective with ICT use
    • 8 PSD documents from multilateral institutions
      • 25% made no reference to ICTs
      • 12% referred to ICT infrastructure or the ICT sector
      • 25% referred to ICT use in enterprises
      • 75% noted that PSD interventions be more effective with ICT use
    Source: UNCTAD.
  • 9. Overall Policy Recommendations
    • Comprehensive and systematic approach needed to reap full benefit from ICTs for private sector development
    • Develop Donor Guidance – in collaboration with Donor Committee for Enterprise Development (DCED)
    • Pay attention to diverse needs and capabilities of different enterprises – from supply to demand-driven interventions
    • Leverage partnerships
    • More data and more impact assessments of different initiatives needed to identify best practice
  • 10.
    • Thank You!
    The Information Economy Report 2011 can be downloaded free of charge at www.unctad.org/ier2011