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Challenges and opportunities of the digital strategy in México 2014

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The purpose of this research study consisted in contributing elements of analysis to identify the main challenges and opportunities that face the National Digital Strategy to fulfill its mains goals by 2018

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Challenges and opportunities of the digital strategy in México 2014

  1. 1. Challenges and Opportunities of the Digital Strategy in México 1 Armando Peralta Díaz armandopdiaz@gmail. com @armandopdiaz
  2. 2. DG.0 2014 15th Annual International Conference On Digital Government Research Centro de Investigación y Docencia Económicas (CIDE) Aguascalientes City, Aguascalientes, Mexico June 18-21, 2014
  3. 3. Target. Information Society and Knowledge. The Digital Economy in México. Challenges of National Strategy National. Conclusions and recommendations. Thematic lines 2 3 1 2 3 4 5
  4. 4. TARGET 4
  5. 5. The purpose of this research study consisted in contributing elements of analysis to identify the main challenges and opportunities that face the National Digital Strategy to fulfill its mains goals by 2018 TARGET 5
  6. 6. 6 ISK. Digital Paradigm (1) Conversion of information into bits made the configuration of the four subsystems that comprise the ICT system. 6 ICT System Uptake and interoper ation Transmis sion Comput ing Storage
  7. 7. The main idea of representing information using the binary method and the convergence of the four basic operations of the ICT system, are the engine that drives the digital paradigm. Thus, information becomes the main ingredient for the generation of knowledge. ISK. Digital Paradigm (2) 7
  8. 8. Societies with greater capacity to generate knowledge, have an invaluable tool to exploit the opportunities arising from technical progress to improve their welfare. The digital paradigm is changing trends of global production, working methods, business life cycle of products and ISK. Digital Paradigm (3) 8
  9. 9. 9 ISK. Digital Paradigm (4) ICT can contribute to the growth and development of economies because their dynamic to meets three important 9 IC T Transvers lity Compleme ntarity Internatio nal projection
  10. 10. 10 The Digital Economy in México
  11. 11. 11 The digital divide in Mexico with respect to developed countries is explained by many factors among which the inequalities in terms of income and education, which are an obstacle to the dissemination and use of ICT. The Digital Economy in Mexico (1) The analysis of the digital economy in Mexico is done from the perspective of supply and demand.
  12. 12. The production of ICT goods and services shows the growing dynamism of the subsectors: 517, 3341, 3343 Average (%) AARG Total GDP 10,673,492 100.00 2.53 ICT GDP / Total GDP 2.88 ICT Subsector GDP 307,184 100.00 6.73 3341 Manufacture of computers and peripheral equipment 25,375 8.26 7.22 3342 Manufacture of communication equipment 18,543 6.04 -2.79 3343 Manufacture of audio and video 11,430 3.72 6.93 3344 Manufacture of electronic components 21,547 7.01 4.79 3345 Manufacture of measuring instruments, control, navigation, and electronic medical equipment 11,980 3.90 2.95 3346 Manufacturing and reproducing magnetic and optical media 2,085 0.68 4.17 511 Newspaper publishing, magazines, books, software and other materials, and integrated editing these publications printing 17,569 5.72 -1.14 512 Film and video industry, and sound industry 6,440 2.10 2.32 515 Radio and television 12,522 4.08 1.63 517 Other telecommunications 177,003 57.62 11.04 518 Electronic data processing, hosting and related services 1,970 0.64 1.63 519 Other information services 720 0.23 1.21 Source: Own calculations based on INEGI, Banco de Información Económica. Table 1. Gross Domestic Product (Millions of pesos at 2008 prices) Subsector / Branch Designation 1993-2013 The Digital Economy in Mexico (2) 12
  13. 13. 1993-2013 (84 quarters) Total GDP: 2.5% (aarg) ICP GDP: 6.5% (aarg) ICP_GDP / T_GDP: 1993: 1.9% 2013: 4.2% The Digital Economy in México (3) 79 % Telecomm 57.6% Manufactu re of computers 8.3% Electronics Manufactu ring 7.0% Communic ation Equipment 6.0% 13
  14. 14. 11.0 (aarg) (1993-2013) 33.3% (1993) 73.5% (2013) In summary, throughout the restructuring period of the ICT industry that highlights the growing importance of industry Telecomucacione s verified. The Digital Economy in México (4) 14
  15. 15. Indicators 2010 2011 2012 2013 Variation 2013 / 2010 Households with computer 1 29.8 30.0 32.2 35.8 6.0 Households with Internet 1 22.2 23.3 26.0 30.7 8.5 Household with television 1 94.7 94.7 94.9 94.9 0.2 TV households pay 1 26.7 30.4 32.2 36.7 10.0 Households with telephone service 1 80.6 82.2 83.6 85.5 4.9 Computer users 2 40.1 41.9 43.4 46.7 6.6 Internet users 2 33.8 37.2 39.8 43.5 9.7 Computer users who use it as a tool for school support 3 53.4 52.3 51.8 49.7 -3.7 Internet users who have made transactions via Internet 4 5.0 5.1 5.4 5.8 0.8 Internet users that access from outside the home 4 51.8 50.8 48.0 44.1 -7.7 Annual growth of employed persons in the computer manufacturing industry 0.0 -0.3 ND ND NA Notes: 1/ As a proportion of total households. 2/ As a proportion of the population aged six years or older. 3/ As a proportion of all computers users. 4/ As a proportion of total Internet users. Source: INEGI. Module Availability and Use of Information Technologies in Households. Table 2. Information Society. Selected Indicators (Percentages) Although there is progress in the use and diffusion of ICT in Mexican society; there are still considerable gaps digital demand The Digital Economy in México (5) 15
  16. 16. The Digital Economy in México (6) Households with Internet 69.3 Households with computer 64.2 Internet Users 56.5 Computer Users 53.3 Digital Gaps 2013 (%) 16
  17. 17. 17 The country recorded a major breakthrough in the production of goods and services in the digital economy. The Digital Economy in Mexico (7) There is also a gradual progress experienced in the adoption, use and connectivity of information technology in Mexican society. However, there are crucial challenges facing the National Digital Agenda goals to advance in closing the digital divide.
  18. 18. 18 The country recorded a major breakthrough in the production of goods and services in the digital economy. The Digital Economy in México (7) There is also a gradual progress experienced in the adoption, use and connectivity of information technology in Mexican society. However, there are crucial challenges facing the National Digital Agenda goals to advance in closing the digital divide.
  19. 19. 19 Challenges of the National Digital Strategy
  20. 20. In the literature there are several studies that recognize the importance of ICT to reach constitute an important factor in increasing productivity and economic growth, due to the positive externalities derived from its application in key sectors of the economy, institutional structure and Challenges of the National Digital Strategy (1) 20
  21. 21. Arguments for public policy: development of complementarities; equity of access and use; infrastructure development; regulatory framework; diffusion of innovations. Challenges of the National Digital Strategy (2) 21
  22. 22. Objectives of the NDS: Government transformation. Digital economy Quality Education Universal and effective health Public safety Challenges of the National Digital Strategy (3) 22
  23. 23. Goals for 2018: Achieving a scanning rate equivalent to the average OECD Achieving indicators leading country in Latin America for the same year Challenges of the National Digital Strategy (4) 23
  24. 24. Digital economy: “developing an ecosystem that contributes to a prosperous Mexico, through assimilation of ICT in economic processes, to stimulate productivity growth, economic growth and the creation of formal jobs”. Challenges of the National Digital Strategy (5) 24
  25. 25. ITU, 2013: Numeralia Between 2007-2011, the income generated by the Telecommunications grew 12%. Equivalent to 1.8 billion USD. 2.6% of world GDP. In late 2013, 40% of the world population use the Internet. 2,000 million mobile broadband subscriptions. Global penetration rate of 30%. In late 2012, 80% ofTV households, compared with 41% of households with a computer and 37% with Internet access. Internet developed countries, penetration rate: 80% vs Challenges of the National Digital Strategy (6) 25
  26. 26. The objectives of the IDT-ITU are measuring: the level and time course of development of ICT in the country and in comparison with other countries; progress of ICT development in developed and developing countries; the digital divide, is to say the differences between countries Challenges of the National Digital Strategy (7) 26
  27. 27. Methodology for calculating the IDT-ITU: Infrastructur e and access Use and intensity Capacity Challenges of the National Digital Strategy (8) Rank ICT Rank ICT 2012 2012 2011 2011 Rank ICT World average* 4.35 4.15 0.20 Developed C. average 6.78 6.55 0.23 Developing C. average 3.44 3.25 0.19 OECD average 7.18 6.97 0.22 Average Latin America** 5.03 4.66 0.37 Mexico 83 3.95 82 3.78 -1 0.17 World* -0.40 -0.37 -0.03 Developed Countries -2.83 -2.77 -0.06 Developing Countries 0.51 0.53 -0.02 OECD Countries -3.23 -3.19 -0.05 Latin America** -1.08 -0.88 -0.20 Notes: * Includes 157 countires. **Selected countries: Barbados, Uruguay, Chile, Argentina, Costa Rica, Brasil, Panamá, Colombia, Venezuela y Ecuador. Source: Own calculations based on ITU, Masuring the Information Society, 2013 . Table 3. Gaps: Index of ICT Development 2011-2012 Economy Variations 2012 vs 2011 Gaps / ICT / With respect to: 27
  28. 28. Region and country 2012 + Points + Ranking México 3.95 82 OCDE 7.18 3 Israel 7.11 26 3 57 places Latin America 5.03 Barbados 6.01 36 2 47 Uruguay 5.38 50 1.4 33 Chile 5.08 52 1.1 31 México Challen ges for 2018 move up in rank Challenges of the National Digital Strategy (10) 28
  29. 29. Challenges of the National Digital Strategy (11) Prices of fixed broadband GDP p.c. Economy Rank % of USD, 2011 GDP p.c. USD PPP$ (*) OECD average 1.3 33.1 30.5 37,546 Average Latin America* 3.0 22.4 31.9 9,500 Mexico 62 2.3 17.6 26.7 9,240 OECD Countries 1.0 -15.5 -3.8 -28,306 Latin America** -0.7 -4.8 -5.2 -260 Notes: (*) or latest available data. **Selected countries: Uruguay, Venezuela, Brasil, Panamá, Costa Rica, Chile, Colombia, Barbados, Argentina, Ecuador. Source: Own calculations based on ITU, 2013. Cuadro 4. Gaps: Prices Fixed Broadband (BFP), 2012 GAPS / BFP / With respect to: 29
  30. 30. Fixed Broadband Fixed Broadband Economy Rank (Wired) Rank (Wired) 2011 suscript. per 2012 suscript. per Rank Suscrip. 100 inhabitants 100 inhabitants World average* n.d. 9.1 OECD average 26.9 27.5 0.6 Average Latin America** 9.5 11.2 1.7 Mexico 59 10.6 64 10.9 -5 0.3 World* 1.8 OECD countries -16.3 -16.6 -0.3 Latin America** 1.10 -0.26 -1.4 *183 Countries in 2012. **Selected countries: Barbados, Uruguay, Chile, Argentina, Costa Rica, Brasil, Colombia, Panamá, Venezuela y Ecuador. Source: Own calculations based on ITU / UNESCO, 2012. Cuadro 5. Gaps: Fixed Broadband (FBB), 2011, 2012 Variations 2012 / 2011 Gaps / FBB / With respect to: Challenges of the National Digital Strategy (12) 30
  31. 31. Challenges of the National Digital Strategy (13) Broadband Broadband Economy Rank Mobile Rank Mobile 2011 suscript. per 2012 suscript. per Rank Suscrps 100 inhabitants 100 inhabitants World average* n.d. 22.1 n.a. OECD average 46.4 59.9 13.5 Average Latin America** 9.3 20.7 11.4 Mexico 84 4.6 92 9.7 -8 5.1 World* -12.4 OECD countries -41.8 -50.2 -8.4 Latin America** -4.70 -11.0 -6.3 Notes: * Includes 170 countries. **Selected countries: Brasil, Barbados, Uruguay, Chile, Ecuador, Panamá, Costa Rica, Argentina, Colombia y Venezuela. Source: Own calculations based on ITU / UNESCO, 2012. Table 6. Gaps: Mobile Broadband (MBB), 2011, 2012 Variations 2012 / 2011 Gaps / MBB / With respect to: 31
  32. 32. Challenges of the National Digital Strategy (13) Broadband Broadband Economy Rank Mobile Rank Mobile 2011 suscript. per 2012 suscript. per Rank Suscrps 100 inhabitants 100 inhabitants World average* n.d. 22.1 n.a. OECD average 46.4 59.9 13.5 Average Latin America** 9.3 20.7 11.4 Mexico 84 4.6 92 9.7 -8 5.1 World* -12.4 OECD countries -41.8 -50.2 -8.4 Latin America** -4.70 -11.0 -6.3 Notes: * Includes 170 countries. **Selected countries: Brasil, Barbados, Uruguay, Chile, Ecuador, Panamá, Costa Rica, Argentina, Colombia y Venezuela. Source: Own calculations based on ITU / UNESCO, 2012. Table 6. Gaps: Mobile Broadband (MBB), 2011, 2012 Variations 2012 / 2011 Gaps / MBB / With respect to: 32
  33. 33. Challenges of the National Digital Strategy (14) Percentage of Percentage of Economy Rank Households Rank Households 2011 with Internet 2012 with Internet Rank (%) acces acces World average* 20.5 24.0 Average Latin America** 31.9 39.8 Mexico 38 27.5 43 26.0 -5 -1.5 World* 7.0 2.0 -5.0 Latin America** -4.40 -13.8 -9.4 Notes: * Includes 128 developing countries, 2012. **Selected countries: Barbados, Uruguay, Argentina, Costa Rica, Brasil, Chile, Colombia, Panamá, Ecuador y Venezuela. Source: Own calculations based on ITU / UNESCO, 2012. Table 7. Percentage of Households with Internet acces in Developing Countries (DCHI), 2011-2012 Variations 2012 / 2011 Gaps / DCHI / With respect to: 33
  34. 34. Challenges of the National Digital Strategy (15) Percentage of Percentage of Economy Rank People with Rank People with 2011 Internet 2012 Internet Rank (%) World average* 32.5 35.7 3.2 OECD average 75.0 77.8 2.8 Average Developing C. 24.4 27.5 3.1 Average Latin America 46.7 51.6 4.9 Mexico 84 36.2 97 38.4 -13 2.2 World* 3.7 2.7 -1.0 OECD Countries -38.8 -39.4 -0.6 Developing Countries** 11.8 10.9 -0.9 Latin America*** -10.5 -13.2 -2.7 Notes: * Includes 177 countries. ** Includes 132 developing countries. ***Selected countries: Barbados, Chile, Argentina, Uruguay, Brasil, Colombia, Costa Rica, Panamá, Venezuela y Ecuador. Source: Own calculations based on ITU / UNESCO, 2012. Table 8. Percentage of People With Internet, 2011-2012 Variations 2012 / 2012 Gaps / People with Internet / With respect to: 34
  35. 35. 35 Conclusions and Recommendations
  36. 36. 36 One lesson to consider is that meet international standards of the most advanced countries is a major challenge due to the closure of the digital divide is a "moving target“. Conclusions and Recommendations (1) At the same time, their full utilization represents an opportunity as a catalyst for socioeconomic development and social welfare.
  37. 37. 37 In Mexico there are conditions to promote the use and application of these technologies in strategic areas such as health, education, security, trade, business, productive sectors and government services. Conclusions and Recommendations (2) The role of government is essential to face challenges in the near future.
  38. 38. 38 Conclusions and Recommendations (3) Precautionary areas in the field of public policies to advance the EDN achieve the goals and objectives: Legal framework Financing and Investment Access and connectivity Use and exploitation Cloud computing Monitoring and evaluation
  39. 39. Thanks for attention! armandopdiaz@gm ail.com

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