Ic ts as an enabler for private sector development remi lang, unctad


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Ic ts as an enabler for private sector development remi lang, unctad

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