Overview of Emerging Nations & research we do at the Tau Institute.

1. Emerging ICT Regions
Roger Strukhoff
February 2014

2. Developing Nation Groupings
Developing nations no longer seen as “Third World”
Two major groupings in common use today are:
BRIC (Brazil, Russia, India, China)
• coined by Jim O'Neill at Goldman Sachs
MINT (Mexico, Indonesia, Nigeria, Turkey)
• coined by Merrill Lynch, now taken up by O'Neill

3. Traditional View
BRIC, MINT, Next Eleven, Frontier Markets focus on
population size of selected nations and determine absolute
economic environments.
Our View
The Tau Institute focuses on 102 nations of all sizes and
determines relative, not absolute, socio-economic & ICT
environments.

4. Our Approach
Technology factors (sources in parentheses)
− Average bandwidth (Ookla, Inc.)
− Internet access (Intl Telecommunications Union)
− Broadband access (Intl Telecommunications Union)
− Dataservers (World Bank)
Socioeconomic factors
− Income Parity (United Nations, CIA)
− Perception of Corruption (Transparency Intl)
− Human Development Index (United Nations)
− Local cost of living (International Monetary Fund)

5. Overall Tau Index
Measures Current ICT Development
Scores Can Be Plotted on a Relatively Smooth Curve
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6. Raw Tau Index
Measures Potential ICT Development
Scores Show Dramatic Differences
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7. Goldilocks Temperature
Measures Relative Pace of ICT Development
The Tau Institute measures the relative dynamism and torque of global ICT
environments.
In our research, we've found that economies can be over-torqued, or “too hot.”
Other economies can be under-torqued, or “too cold.”
We've also found wide regional variances in dynamism, ie, some entire regions
may be over-torqued or under-torqued.
We've thus developed “Goldilocks Categories” that integrates our algorithms
against a formula based on the Golden Ratio.
This allows us to categorize the overall ICT environment of individual countries
as too hot, too cold, or just right, relative to their regions.

8. Developing Regions
1. Eastern Europe
2. Middle East
3. Africa
4. South Asia
5. Latin America
Note: The BRIC nations – Brazil, Russia, India, China – are so large they can
distort regional results. They are thus excluded from this particular analysis.
Our goal is to go “Beyond the BRICs.”

9. 1. Eastern Europe
excluding Russia
Nations Surveyed 15
Total Population 160 million
– Largest: Ukraine, Poland, Romania
Total GDP $1.6 trillion
– Largest: Poland, Czech Republic, Ukraine
Overall Index: Current Leaders
– Estonia, Lithuania, Poland
Raw Index: Potential Leaders
– Latvia, Czech Republic, Slovakia

10. Country Example
Latvia
Capital Riga
Population 2.1 million
Per Capita Income 42nd
of 102
Cost of Living Benefit 57/102
Bandwidth 6th
out of 102
Internet Access 27/102
Broadband Access 30/102
Income Parity 42/102
Corruption Perception 42/102
Overall Tau Index Ranking
– Global 12th out of 102
– Regional 2/15
Raw Tau Index Ranking
– Global 15/102
– Regional 2/15
– Goldilocks Temp Just Right

11. 2. Middle East
including Egypt
Nations Surveyed 11
Total Population 330 million
– Largest: Egypt, Turkey, Iran
Total GDP $2.9 trillion
– Largest: Turkey, Saudi Arabia, United Arab Emirates
Overall Index: Current Leaders
– Jordan, Israel, United Arab Emirates
Raw Index: Potential Laders
– Egypt, Yemen, Saudi Arabia

12. Country Example
Jordan
Capital Amman
Population 6.3 million
Per Capita Income 66th
of 102
Cost of Living Benefit 65/102
Bandwidth 73/102
Internet Access 63/102
Broadband Access 61/102
Income Parity 60/102
Corruption Perception 37/102
Overall Tau Index Ranking
– Global 31st out of 102
– Regional 1/11
Raw Tau Index Ranking
– Global 36/102
– Regional 2/11
– Goldilocks Temp Just Right

13. 3. Africa
excluding Egypt
Nations Surveyed 22
Total Population 700 million
– Largest: Nigeria, Ethiopia, South Africa
Total GDP $1.4 trillion
– Largest: South Africa, Nigeria, Algeria
Overall Index: Current Leaders
– Uganda, Morocco, Ghana
Raw Index: Potential Leaders
– Tanzania, Ethiopia, Senegal

14. Country Example
Ghana
Capital Accra
Population 25 million
Per Capita Income 82nd
of 102
Cost of Living Benefit 69/102
Bandwidth 63/102
Internet Access 85/102
Broadband Access 89/102
Income Parity 58/102
Corruption Perception 49/102
Overall Tau Index Ranking
– Global 48th of 102
– Regional 4/22
Raw Tau Index Ranking
– Global 24/102
– Regional 12/22
– Goldilocks Temp Just Right

15. 4. Asia
excluding China, India, Japan, South Korea
Nations Surveyed 14
Total Population 930 million
– Largest: Indonesia, Pakistan, Bangladesh
Total GDP $3.1 trillion
– Largest: Indonesia, Taiwan, Thailand
Overall Index: Current Leaders
– Vietnam, Taiwan, Mongolia
Raw Index: Potential Leaders
– Philippines, Pakistan, Laos

16. Country Example
Philippines
Capital Manila
Population 92 million
Per Capita Income 80th of 102
Cost of Living Benefit 30/102
Bandwidth 85/102
Internet Access 68/102
Broadband Access 66/102
Income Parity 81/102
Corruption Perception 84/102
Overall Tau Index Ranking
– Global 53rd of 102
– Regional 6/14
Raw Tau Index Ranking
– Global 22/102
– Regional 3/14
– Goldilocks Temp Just Right

17. 5. Latin America
excluding Brazil
Nations Surveyed 13
Population 325 million
– Largest: Mexico, Colombia, Argentina
Total GDP $2.9 trillion
– Largest: Mexico, Argentina, Colombia
Overall Index: Current Leaders
– Chile, Uruguay, Costa Rica
Raw Index: Potential Leaders
– Honduras, Ecuador, Panama

18. Country Example
Ecuador
Capital Quito
Population 15 million
Per Capita Income 62nd
of 102
Cost of Living Benefit 23/102
Bandwidth 67/102
Internet Access 65/102
Broadband Access 72/102
Income Parity 83/102
Corruption Perception 77/102
Overall Tau Index Ranking
– Global 71st of 102
– Regional 10/13
Raw Tau Index Ranking
– Global 55/102
– Regional 3/13
– Goldilocks Temp Just Right

19. Goals/Capabilities
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Our main goal is to start conversations
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Our predictability is meant to be long-term
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We can dig deeper into individual countries,
groups, regions, etc.
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We can integrate additional factors
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We can adjust curves to emphasize factors that
are important to our clients

20. Contact
Roger Strukhoff
Executive Director
Tel: +1-815-757-7534
rstrukhoff@tauinstitute.org
Www.TauInstitute.org
Twitter @TauDir
Skype strukhoff
205 E. Seminary St. Mount Carroll IL 61053 USA
105 Elizalde St. Paranaque Metro Manila 1720 Philippines