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World economic forum gitr report april 2013


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World economic forum gitr report april 2013

  1. 1. Insight ReportThe Global InformationTechnology Report 2013Growth and Jobs in a Hyperconnected WorldBeñat Bilbao-Osorio, Soumitra Dutta, and Bruno Lanvin, Editors
  2. 2. Insight ReportThe Global InformationTechnology Report 2013Growth and Jobs in a Hyperconnected WorldBeñat Bilbao-Osorio, World Economic ForumSoumitra Dutta, Cornell UniversityBruno Lanvin, INSEADEditors @ 2013 World Economic Forum
  3. 3. The Global Information Technology Report 2013 is a World Economic Forumproject within the framework of the World Economic GenevaForum’s Global Competitiveness and BenchmarkingNetwork and the Industry Partnership Programme for Copyright © 2013Information and Communication Technologies. It is the by the World Economic Forum and INSEADresult of a collaboration between the World EconomicForum and INSEAD. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted,Professor Klaus Schwab in any form or by any means, electronic, mechanical,Executive Chairman photocopying, or otherwise without the prior permission of the World Economic Forum.Børge BrendeManaging Director, Government Relations ISBN-10: 92-95044-77-0 and Constituents Engagement ISBN-13: 978-92-95044-77-7Robert Greenhill This report is printed on paper suitable for recycling andManaging Director, Chief Business Officer made from fully managed and sustained forest sources. Printed and bound in Switzerland by SRO-Kundig.EDITORS Visit The Global Information Technology Report page atBeñat Bilbao-Osorio, Associate Director and Senior Economist, Global Competitiveness and Benchmarking Network, World Economic ForumSoumitra Dutta, Dean, Samuel Curtis Johnson We thank Hope Steele for her excellent editing work and Graduate School of Management, Cornell University Neil Weinberg for his superb graphic design and layout.Bruno Lanvin, Executive Director, eLab, INSEAD The terms country and nation as used in this report do not in all cases refer to a territorial entity that is a stateGLOBAL COMPETITIVENESS AND BENCHMARKING NETWORK as understood by international law and practice. TheJennifer Blanke, Chief Economist, Head terms cover well-defined, geographically self-contained of the Global Competitiveness and economic areas that may not be states but for which Benchmarking Network statistical data are maintained on a separate andCiara Browne, Associate Director independent basis.Gemma Corrigan, InternRoberto Crotti, Quantitative EconomistMargareta Drzeniek Hanouz, Director, Lead Economist, Head of Competitiveness ResearchThierry Geiger, Associate Director, EconomistTania Gutknecht, Community ManagerCaroline Ko, Junior EconomistCecilia Serin, Team CoordinatorINFORMATION TECHNOLOGY AND TELECOMMUNICATIONSINDUSTRIES TEAMAlan Marcus, Senior Director, Head of Information and Communication Technologies IndustriesWilliam Hoffman, Associate Director, Head of Issue CommunityDanil Kerimi, Associate Director, Head of Government CommunityElena Kvochko, Project Manager, Information Technology IndustryDerek O’Halloran, Head of Information Technology IndustryAlexandra Shaw, Team Coordinator, Information Technology IndustryBruce Weinelt, Director, Head of Telecommunication Industry @ 2013 World Economic Forum
  4. 4. ContentsPreface v 1.6 The Economic Impact of Next-Generation 77Børge Brende and Robert Greenhill (World Economic Forum) Mobile Services: How 3G Connections and the Use of Mobile Data Impact GDP Growth Chris Williams, Davide Strusani, David Vincent, andForeword vii David Kovo (Deloitte LLP)Cesare Mainardi (Booz & Company) 1.7 Better Measurements for Realizing the 81Foreword ix Full Potential of Health Information Technologies John Chambers (Cisco Systems) Elettra Ronchi (OECD), Julia Adler-Milstein and Genna R. Cohen (University of Michigan), and Laura P. Winn andExecutive Summary xi Ashish K. Jha (Harvard School of Public Health)Beñat Bilbao-Osorio (World Economic Forum), SoumitraDutta (Cornell University), and Bruno Lanvin (INSEAD) 1.8 Re-Establishing the European Union’s 93 Competitiveness with the Next Wave of Investment in Telecommunications The Networked Readiness Index Rankings xxi Scott Beardsley, Luis Enriquez, Wim Torfs, Ferry Grijpink, Stagg Newman, Sergio Sandoval, and Malin Strandell-Jansson (McKinsey & Company)Part 1: The Current Networked Readinessfor Growth and Jobs 1.9 The Big Opportunity for Inclusive Growth 101 Mikael Hagström and Ian Manocha (SAS Institute Inc.)1.1 The Networked Readiness Index 2013: 3 Benchmarking ICT Uptake and Support forGrowth and Jobs in a HyperconnectedWorld Part 2: Case Studies of Leveraging ICTsBeñat Bilbao-Osorio (World Economic Forum), for Competitiveness and Well-BeingSoumitra Dutta (Cornell University), Thierry Geiger(World Economic Forum), and Bruno Lanvin (INSEAD) 2.1 Colombia’s Digital Agenda: Successes 111 and the Challenges Ahead 1.2 Digitization for Economic Growth and 35 Diego Molano Vega (Ministry of InformationJob Creation and Communication Technologies of Colombia)Karim Sabbagh, Roman Friedrich, Bahjat El-Darwiche,Milind Singh, and Alex Koster (Booz & Company) 2.2 The Metamorphosis to a Knowledge-Based 119 Society: Rwanda 1.3 Convergent Objectives, Divergent Strategies: 43 Alex Ntale (Rwanda ICT Chamber and Private SectorA Taxonomy of National Broadband and Federation), Atsushi Yamanaka (Rwanda DevelopmentICT Plans Board-ICT/Japan International Cooperation Agency), andRobert Pepper and John Garrity (Cisco Systems) Didier Nkurikiyimfura (Ministry of Youth and ICT of Rwanda)1.4 The Importance of National Policy Leadership 53 2.3 E-Government in Latin America: A Review 127Phillippa Biggs and Anna Polomska (ITU/UNESCO of the Success in Colombia, Uruguay, and Panama Broadband Commission for Digital Development) Miguel A. Porrúa (Organization of American States)1.5 Fiber Broadband: A Foundation for Social 67and Economic Growth Sean Williams (BT) The Global Information Technology Report Report 2013 | iii @ 2013 World Economic Forum
  5. 5. ContentsPart 3: Country/Economy ProfilesHow to Read the Country/Economy Profiles.................................139Index of Countries/Economies.......................................................141Country/Economy Profiles.............................................................142Part 4: Data TablesHow to Read the Data Tables........................................................289Index of Data Tables......................................................................291Data Tables...................................................................................293Technical Notes and Sources 361About the Authors 367List of Partner Institutes 375Acknowledgments 383iv | The Global Information Technology Report Report 2013 @ 2013 World Economic Forum
  6. 6. PrefaceBØRGE BRENDE AND ROBERT GREENHILLWorld Economic ForumThe 12th edition of The Global Information Technology actors—individuals, businesses, and governments.Report (GITR) is being released at a time of cautious Over time, the series has become one of the most-optimism after a long period of economic uncertainty respected studies of its kind. It is extensively used bythat has transformed the global economic outlook. While policymakers and relevant stakeholders as a unique tooluncertainty in the euro zone and the risk of political to identify strengths on which to build and weaknessesdeadlock in the United States still persist and could derail that need to be addressed by national strategies forthe tentative economic recovery in developed economies, enhanced networked readiness.the risk of a financial and economic meltdown with The Global Information Technology Report 2013unprecedented consequences seems more remote than it features the latest results of the NRI, offering an overviewdid a year ago. Overall, developed economies are striving of the current state of ICT readiness in the world. Thisto return to higher levels of competitiveness while fighting year’s coverage includes a record number of 144the stubbornly high levels of unemployment, especially economies, accounting for over 98 percent of globalamong youth; at the same time, developing and emerging GDP. A number of essays on the role of ICTs to promoteeconomies are focusing on innovation as a prerequisite growth and jobs in an increasingly hyperconnectedto sustain the high economic growth rates they have world, as well as policy case studies on developingexperienced in the past decade and leapfrog toward ICTs, are featured in the Report, together with ahigher levels of economic and social prosperity. comprehensive data section—including detailed profiles Against this backdrop, the role that information for each economy covered and data tables with globaland communication technologies (ICTs) can play to rankings for the NRI’s 54 economic growth and the creation of high- We would like to convey our sincere gratitude to thequality jobs has never drawn so much attention and industry and international organizations’ experts whoresearch. There had been some initial concerns about contributed outstanding chapters exploring the linksthe risk, in some developed economies, that ICTs between ICTs and economic growth and job creation,could accelerate the delocalization of certain economic as well as to policy analysts for providing their valuableactivities toward developing countries. But the benefits insights in the policy case studies.of ICTs are now widely recognized everywhere as an We especially wish to thank the editors of theimportant source of efficiency gains for companies that Report, Soumitra Dutta at the Samuel Curtis Johnsonwill allow them to optimize their production function and Graduate School of Management at Cornell University,liberalize resources toward other productive investments. Bruno Lanvin at INSEAD, and Beñat Bilbao-OsorioMoreover, ICTs are also increasingly recognized as a at the World Economic Forum, for their leadership inkey source of innovation that can generate increased this project, together with the other members of theeconomic growth and new sources of high-value-added GITR team: Thierry Geiger, Danil Kerimi, and Elenajobs. This ability to innovate is essential in the current Kvochko. Appreciation also goes to Alan Marcus,information revolution that is transforming economic and Senior Director and Head of the Information Technologysocial transactions in our societies. and Communication Industries team, and Jennifer The GITR series has been published by the World Blanke, Chief Economist and Head of the GlobalEconomic Forum in partnership with INSEAD since Competitiveness and Benchmarking Network, as well2002. The Report has accompanied and monitored as her team: Ciara Browne, Gemma Corrigan, RobertoICT advances over the last decade as well as raising Crotti, Margareta Drzeniek Hanouz, Tania Gutknecht,awareness of the importance of ICT diffusion and Caroline Ko, and Cecilia Serin. Last but not least, weusage for long-term competitiveness and societal would like to express our gratitude to our network ofwell-being. Through the lens of the Networked 167 Partner Institutes around the world and to all theReadiness Index (NRI), the driving factors and impacts business executives who participated in our Executiveof networked readiness and ICT leveraging have been Opinion Survey. Without their valuable input, theidentified, highlighting the joint responsibility of all social production of this Report would not have been possible. The Global Information Technology Report Report 2013 | v @ 2013 World Economic Forum
  7. 7. @ 2013 World Economic Forum
  8. 8. ForewordCESARE MAINARDIChief Executive Officer, Booz & CompanyEver since Adam Smith first proposed the theory of improves; some jobs get replaced by technologies; andabsolute advantage enjoyed by a country in producing lower-value-added, labor-intensive jobs go overseasa good or service, policymakers have sought to build to emerging markets where labor is cheaper. On aand maintain such an advantage in key sectors of their sector-by-sector basis, you see the same effect ineconomies. What has become increasingly clear over highly digitized industries such as financial services andthe past 12 years that the World Economic Forum and manufacturing.INSEAD have been publishing this Global Information Thus no universal prescriptions are available forTechnology Report is the role that information realizing the full socioeconomic benefits of digitization—communication technologies (ICTs), and specifically the right formula will vary by country and industry. Butdigitization, plays in the potential development and there is no question that the benefits are there to bemaintenance of absolute advantage. realized, and they are substantial for the foresighted and Digitization—the mass adoption of connected digital by consumers, enterprises, and governments— The lesson for policymakers and national leaders isis far more than a disruptive wave washing over isolated clear: having laid the necessary groundwork by buildingindustries. We have long since recognized that reality. out broadband infrastructure and ensuring access, it isDigitization is a fundamental driver of economic growth now time to differentiate around distinctive opportunitiesand job creation the world over—in both developed and and capabilities. Governments have a role to play asemerging markets. And that is not hollow rhetoric—it digital market makers. That means making deliberateis confirmed by econometric analysis that Booz & choices about what sectors furnish the best opportunityCompany has conducted to quantify the actual impact for that absolute advantage Adam Smith described andof digitization on a country’s economic output (GDP) focusing on them. It means understanding the tradeoffsand employment. In fact, we have created a Digitization between job creation and productivity that increasingIndex that scores a country’s digitization level on a scale digitization brings, and creating mechanisms to offsetof 0 to 100. This level-setter allows us to go beyond the potential job losses. Finally, it means understandinganecdotal evidence of the transformational impact of what capabilities you must bring as a policymaker toICTs and actually measure that impact on economic and advancing your country’s digitization agenda. Do yousocial factors on a comparative basis. need to play the role of direct developer, financier, or The headline is powerful: despite the continued facilitator? There are successful models of all threesluggishness of economies across the globe, digitization capability sets in practice today around the world.has boosted world economic output by nearly US$200 You have only to open your eyes and apply the rightbillion over the past two years and has created 6 million capabilities lens to chart the right path forward. Thisjobs. Specifically, our analysis reveals that an increase year’s Global Information Technology Report willof 10 percent in a country’s digitization score drives a illuminate the way.0.75 percent growth in its GDP per capita. That same 10percent boost in digitization leads to a 1.02 percent dropin a state’s unemployment rate. These benefits grow as acountry moves along the digitization continuum—in otherwords, increased digitization yields improving returns. Although the net effect of digitization is positive,as you begin analyzing the data by country and sector,certain tradeoffs become apparent. For example,advanced-stage economies in North America andWestern Europe, for a number of reasons, realize feweremployment benefits than developing economies astheir digitization level increases. Their productivity The Global Information Technology Report Report 2013 | vii @ 2013 World Economic Forum
  9. 9. @ 2013 World Economic Forum
  10. 10. ForewordJOHN CHAMBERSChairman and Chief Executive Officer, Cisco SystemsIt has been almost 30 years since the connectionsthat sparked one of the greatest technologicaltransformations in history were made, creatingan enormous global market for information andcommunication technologies (ICTs) while laying thefoundation for networked readiness. Today the Internetand the applications and the services it supports touchour lives every day. Just as Cisco was at the forefrontof network development in the past, today we envisiona future where everything is connected and amazingthings are possible. More than 99 percent of things in the physicalworld are not linked to the Internet. Yet. But as the worldtransitions into what we call the Internet of Everything(IoE)—the intelligent connection of people, processes,data, and things—only the networked readiness ofcountries will dictate where the IoE will take hold andwho will reap its benefits. Given the economic andsocial potential of this market transition, we are verypleased to again collaborate with the World EconomicForum and INSEAD in the production of this year’sGlobal Information Technology Report and its NetworkedReadiness Index. The IoE and intelligent networking will impact allsectors, creating opportunities for people, businesses,and countries. An intelligent network will be the driver ofthe next round of innovation, productivity enhancement,and employment. Developing the IoE will require close collaborationamong stakeholders in industry, customers, academia,and government. Products and services will bedeveloped commercially, customers will dictate whatsucceeds in the market place, academia can aid inresearch and design, and governments can play arole in maintaining a vibrant and competitive businessenvironment where innovation will flourish. This year’s Global Information Technology Report,focusing on ICTs for growth and jobs, places a spotlighton the role that technology can have in economicgrowth and employment. As highlighted in the researchthat follows, high-speed broadband networks havedemonstrated a positive impact on short- and long-termemployment, and we believe the next wave of Internetdevelopment will further advance the growth effects ofthe network. The Global Information Technology Report Report 2013 | ix @ 2013 World Economic Forum
  11. 11. @ 2013 World Economic Forum
  12. 12. Executive SummaryBEÑAT BILBAO-OSORIO, World Economic ForumSOUMITRA DUTTA , Cornell UniversityBRUNO LANVIN, INSEADWhen The Global Information Technology Report (GITR) the world needs to collectively address environmentaland the Networked Readiness Index (NRI) were created and social challenges to ensure a more sustainablesome 12 years ago, the attention of decision makers development path and a better quality of life for itsand investors was on adopting business and financial people.strategies that would allow them to develop in the On the “push” side, technological progresscontext of a fast-moving but nascent Internet economy. continues at a relentless speed. The growing availabilityOver more than a decade, the NRI has provided of technology has empowered citizens of both developeddecision leaders with a useful conceptual framework to and emerging economies with fairly good access to theevaluate the impact of information and communications digital world. The rise of cloud computing has reducedtechnologies (ICTs) at a global level, and to benchmark the competitive differentials in technology availabilitythe ICT readiness and the usage of their economies. across larger and smaller firms. Low entry barriers in the Today, the world has undergone massive changes: digital space have sparked creativity and given rise to athe Internet bubble has come and gone, and emerging class of young entrepreneurs around the world. It is clearcountries such as China and India have become that ICTs offer higher benefit-to-cost ratios in all sectorsprominent global users and providers of ICT equipment of production, while simultaneously offering new ways toand services. Struggling to emerge from the financial create value by better and more efficiently organizing thecrisis, developed economies are striving to return to use of natural, financial, and human resources.higher levels of growth and competitiveness while Numerous studies have been presented in thefighting stubbornly high unemployment rates, especially literature on the connections between ICTs on theamong their youth. Both emerging and developed one hand, and development and growth on the other.economies are focusing on innovation, competing Although the first analyses of the economic impactglobally for talent, resources, and market shares. of fixed telephone density on economic growth wereInformation flows and networks have spread across conducted more than three decades ago,1 such studiesborders in ways that could not be imagined before the have proliferated in recent years. Despite the ubiquityonset of the Internet, the global adoption of mobile of ICTs in society and business, such research hastelephony and social networks, and the rapid growth of not been easy. For one thing, the pace of adoption ofbroadband. Business models have been redefined, the many technologies (broadband, mobile, etc.) has beenworkplace has been redesigned, small startups have fast and recent—thus limiting the validity of longitudinalevolved into large companies, and entire functions of studies and making it difficult for data collectionsociety (education, health, security, privacy) are being agencies to keep pace with the definition and collectionrethought. of appropriate metrics. Also, it remains challenging to isolate the impact of ICTs as their economic impactsICTs, COMPETITIVENESS, GROWTH, AND JOBS: A have often occurred when combined with other broadCOMPLEX RELATIONSHIP social and business changes.The links between ICTs (their tools, services, and models) For more than a decade, the NRI has includedon the one hand and the unwavering importance of aspects of how ICTs are transforming the economycompetitiveness, growth, and jobs on the other have and society. Among the expressions of transformationnever before been the subject of so much attention and is the development of new skills that are important inconcern. This is hardly surprising when one considers knowledge-based, information-rich societies and thatthe “pull” of technology: developed economies need are crucial for employment. Despite the fact that ICTs areto reinvent themselves to maintain or restore their becoming increasingly universal, the question of accesscompetitiveness, retain or regain market shares, and and usage remains important—especially for developingcreate jobs; emerging and developing economies are countries, given their need to narrow the digital divide.seeking ways to improve productivity and find new The NRI includes features related to access and usagesources of growth through new technologies. Finally, that cover not only affordable ICT infrastructure but The Global Information Technology Report Report 2013 | xi @ 2013 World Economic Forum
  13. 13. Executive Summaryalso digital resources, including software and skills. In • the friendliness of a country’s market and regulatoryaddition, the NRI includes proxies to assessing some of framework in supporting high levels of ICT uptake;the economic and social impacts accruing from ICTs. • the degree of a society’s preparation to make goodThus, the Index facilitates the identification of areas use of an affordable ICT infrastructure;where policy intervention—through investment, smartregulation, and/or incentives—could boost the impact of • the efforts of the main social agents—that is,ICTs on development and growth. individuals, business, and government—to increase their capacity to use ICTs as well as their actual usePART 1: THE CURRENT NETWORKED READINESS of ICTs in day-to-day activities; andLANDSCAPE • the broad economic and social impacts accruingPart 1 presents the latest findings of the NRI, offering from ICTs and the transformation of a countrya comprehensive assessment of the present state toward an ICT- and technology-savvy economyof networked readiness in the world. Furthermore, a and society.number of expert contributions inquiring into the relationbetween ICTs and growth and jobs in the current As in previous editions, the NRI is composed of aeconomic and digital context are also included. These mixture of quantitative data collected by internationalrelate to (1) the role of digitization for economic growth organizations—such as International Telecommunicationand job creation; (2) the description of a taxonomy of Union (ITU), other UN agencies, the Organisation fornational broadband and ICT plans; (3) the importance of Economic Co-operation and Development (OECD), andnational policy leadership; (4) the role of fiber broadband the World Bank—and survey data from the Executivefor economic and social growth; (5) the economic impact Opinion Survey (the Survey), conducted annually byof next-generation mobile technologies; (6) the need for the Forum in each of the economies covered by thebetter measurement to realize the potential of health Report. The NRI 2013 covers a record number of 144information technologies; (7) the role of ICTs for Europe economies, accounting for over 98 percent of world regain its competitiveness, and (8) the potential of ICTs In terms of the results (see the Networkedto support social inclusion. Readiness Index Rankings provided on page xix), two groups of economies dominate the NRI: NorthernInsight from the NRI 2013 on the world’s networked European economies and the so-called Asian Tigers.readiness Among the Northern European countries, four out of theGiven the potential high returns that ICTs can provide five Nordic economies featured in the NRI—Finland,in transforming a nation’s economy and its citizens’ Sweden, Norway, and Denmark (in rank order)—continuewell-being, assessing ICT developments has been the to feature in the top 10. Iceland, the last of the Nordics,object of much academic and policy attention in the past is not too far behind, at 17th place. The performancedecade. Several organizations have made significant of this group in terms of readiness is particularlyefforts to measure and benchmark ICT deployment outstanding. All five Nordics feature in the top 10 of thisand uptake, but few have aimed at equally assessing subindex. Within this subindex, on the infrastructurethe returns that ICTs can actually provide to both the and digital content pillar, four countries occupy the topeconomy and society. Although data availability is positions. As highlighted in the previous edition andstill scarce in terms of ICT impacts, policy interest in in this Report, the gap between those countries andmeasuring ICTs has shifted from measuring ICT access the ones in the Southern and Eastern parts of Europeto measuring ICT impacts. is profound. A second group of economies that posts Last year, after two years of research and a remarkable performance are the Asian Tigers:consultations with ICT practitioners, policy and industry Singapore, Taiwan (China), the Republic of Korea, andexperts, and academia, a new subindex on ICT impacts Hong Kong SAR. All boast outstanding business andthat aimed at holistically assessing the way that innovation environments that are consistently rankedcountries go about leveraging ICTs and benefiting from among the most conducive in the world. The Tigers alsothem in terms of enhanced competitiveness and well- stand out for their governments’ leadership in promotingbeing has been introduced in the NRI. This evolution the digital agenda, and the impact of ICTs on societyensures that the NRI framework remains at the forefront tends to be larger in these economies.of ICT measurement. As one of the most authoritative Finland (1st) reaches the top of the NRI rankingsassessments of its kind, it has been adopted by several for the first time, thanks to improvements across thegovernments as a valuable tool for informing their board. The country shows progress on two-thirds ofcompetitiveness and policy agendas. the 54 indicators of the NRI and posts a very consistent As a result, the framework gauges: performance across all categories of the NRI. Singaporexii | The Global Information Technology Report Report 2013 @ 2013 World Economic Forum
  14. 14. Executive Summaryremains 2nd overall, while slightly improving its score. Asian Tigers—on the planet are next to some of theThe extreme efficiency and business friendliness of least-connected ones. Nowhere else does the regionalits institutional framework, strong intellectual property digital divide run as deeply as it does in Asia. Regardlessprotection, intense competition, and high university of their position on the development ladder, all Asianenrollment rate lead to these outstanding outcomes. economies have much to gain from increased networkedSweden (3rd) maintains its score, but declines two readiness. It will allow populations of the least-advancedpositions and abandons the top spot to Finland. Despite countries to gain access to much-needed basic services,this slight decline in rankings, the country undeniably improved government transparency and efficiency,remains one of the few truly knowledge-based and—for the most advanced, many of which suffer fromeconomies of this world. anemic economic growth—it will contribute to boosting Up three notches, the United Kingdom (7th) their innovation capacity. The NRI reveals that in theposts the biggest rank improvement among the top case of Asia’s best-performing economies, governments10 economies. The country offers one of the most typically lead the digital effort, unlike in Europe. At theconducive environments for ICT development. In heart of Asia, and representative of its immense diversity,particular, it offers a sound and conducive political and the Association of Southeast Asian Nations (ASEAN)regulatory environment (7th). The country also boasts is fairly dynamic. Led by Singapore, all eight ASEANhigh levels of ICT adoption. ICTs are pervasive among members covered by the NRI improve their overall scorethe population, businesses, and the government. Down and a majority progress in the rankings, albeit in someone, the United States slips to 9th place despite a cases—such as Cambodia and the Philippines—from aperformance essentially unchanged from the previous low base.year. This constitutes the country’s worst showing since Digitally connecting the hemisphere remains onethe first edition of the GITR in 2001, in which it ranked of the key challenges for Latin America and the1st, although changes to the methodology and in the Caribbean, as recognized during the Sixth Summit ofcomposition of the NRI over time cause the results not to the Americas, which took place in Colombia in Aprilbe strictly comparable. The country still possesses many 2012.4 While several countries have made remarkablestrengths, however, which have contributed to making it improvements that are clearly reflected in importantthe world’s innovation powerhouse for decades. gains in the scores and rankings of the NRI—including Several European countries continue to lead Panama, Mexico, Colombia, and El Salvador—overall,the rankings, showcasing their strong efforts and Latin American and the Caribbean still suffers fromcommitment to fully develop and leverage ICTs to a serious lag that prevents it from fully leveraging theboost their competitiveness and the well-being of potential of ICT to boost the regional productivity. Thetheir citizens. Within the European Union (EU), while social and, most remarkably, economic impacts accruingstark intra-regional disparities persist, it is worth noting from ICTs remain low in comparison with other regionsthat the divergence across Member States in the despite government-led efforts to develop and upgradeNRI is significantly narrower than it is in the Global ICT infrastructure and also despite governments’Competitiveness Index,2 the most comprehensive increasing use of the Internet to communicate andanalysis for measuring the set of policies, institutions, interact with individuals and the business community.and factors that drive the productivity of an economy. Weaknesses in the political and regulatory environment,This reflects the longstanding efforts of the European the existence of large segments of the population with aUnion to narrow the digital divide in Europe and build low skill base, and poor development of the innovationan internal digital market, as corroborated by the launch system are all factors hindering the potential that ICTof a new Digital Agenda for Europe,3 one of the seven developments could have on the regional economy.flagship initiatives of the European Commission’s Europe Sub-Saharan Africa has continued to make2020 Strategy for growth and jobs for the present significant efforts to build its ICT infrastructure, asdecade. reflected by important improvements in developing its Within the Commonwealth of Independent States, broadband infrastructure and the expansion of its mobileseveral countries have fully recognized the potential network coverage. As a result, ICT usage, while stillof ICTs to leapfrog and diversify their economies, and very low, has picked up slightly, as seen especially byimportant progress has been recorded since last year. an increase in the number of Internet users and also by Asia is home to some of the world’s wealthiest, the continued commitment of some governments in themost successful economies in the world and also to region to expand the number of available online services.some of its poorest. Unsurprisingly, a similarly profound Despite this positive trend, the stubbornly high sharpdiversity characterizes Asia’s digital landscape, thus digital divide from more advanced economies, notablymaking it impossible to draw a uniform picture of the in terms of ICT-driven economic and social impacts,region. The most digitized and innovative nations—the persists. A still-costly access to ICT infrastructure, The Global Information Technology Report Report 2013 | xiii @ 2013 World Economic Forum
  15. 15. Executive Summaryrelatively low levels of skills with low educational Policymakers can harness these varying effects ofattainments, and unfavorable business conditions for digitization through three main measures that go beyondentrepreneurship and innovation are hindering the their current roles of setting policy and regulations. First,region’s capacity to fully leverage the potential of the they should create digitization plans for targeted sectorsincreasingly available ICT infrastructure. As a result, only in which they wish to maximize the impact of digitization.two countries—Mauritius (55th) and South Africa (70th)— Second, they should encourage the development of theare positioned in the top half of the rankings, while nine necessary capabilities and enablers to achieve theseout of the bottom ten belong to the region. digitization plans. Finally, policymakers should work The Middle East and North Africa region boasts in concert with industry, consumers, and governmentone of the most diverse performances in the world. agencies to establish an inclusive ICT ecosystem thatOn the one hand, Israel and several Gulf Cooperation encourages greater uptake and usage of digital services.Council states have sharply improved their overallperformances and have continued their investments to Convergent Objectives, Divergent Strategies: Amake ICTs one of the key national industries that attempt Taxonomy of National Broadband and ICT Plansto diversify and transform their economies. On the other In Chapter 1.3, Robert Pepper and John Garrity fromhand, several North African and Levant nations have Cisco Systems analyze the wide range of formaleither fallen—or stagnated, in the best cases—in their broadband policies around the world. A critical questionefforts to leverage ICTs as part of their economic and now is whether the divergence in policy packages willsocial transformation process toward more knowledge- result in significant differences in the efficacy of plans.intensive activities and open societies. To begin this research and establish a foundation for understanding the global landscape of nationalDigitization for Economic Growth and Job Creation: broadband and ICT plans, this chapter reviewsRegional and Industry Perspectives plans around the world and presents a taxonomyChapter 1.2, contributed by Karim Sabbagh, Roman for classification. The authors first detail the existingFriedrich, Bahjat El-Darwiche, Milind Singh, and Alex relationship among broadband, economic growth,Koster at Booz & Company, analyses the rise of and employment. Next they analyze a cross-sectiondigitization—the mass adoption of connected digital of national plans, their objectives, and their policyservices by consumers, enterprises, and governments— components. Subsequently they propose a taxonomyas a key economic driver that accelerates growth examining the degree of broadband supply- andand facilitates job creation. In the current context demand-side emphasis. This taxonomy establishes aof a sluggish global economy, digitization can play common language that can guide governments throughan important role in assisting policymakers to spur the development of national broadband plans and serveseconomic growth and employment. Booz & Company’s as a baseline for evaluating the factors of success foreconometric analysis estimates that, despite the implemented plans.unfavorable global economic climate, digitization has They find that as countries around the world haveprovided a US$193 billion boost to world economic developed national plans to accelerate broadbandoutput and created 6 million jobs globally over the past adoption, the plans vary by both goals and policytwo years.5 recommendations. Their taxonomy of broad-based, However, the impact of digitization by country supply-driven, demand-driven, and emergent plansand by sector is uneven. Developed economies enjoy provides a clear method for categorizing nationalhigher economic growth benefits by a factor of almost broadband and ICT plans on the breadth of their policy25 percent, although they tend to lag behind emerging options; the classification also provides a starting pointeconomies in job creation by a similar margin. The for the review and comparison of national plans. Further,main reason for the differing effects of digitization it can aid policymakers in countries with strategic planslies in the economic structures of developed and underway as they work to increase broadband adoption.emerging economies. Developed countries rely chieflyon domestic consumption, which makes nontradable The Importance of National Policy Leadershipsectors important. Across developed economies, Chapter 1.4, contributed by Phillippa Biggs and Annadigitization improves productivity and has a measurable Polomska at the ITU/UNESCO Broadband Commissioneffect on growth. However, the result can be job losses for Digital Development, evaluates recent growth inbecause lower-skilled, lower-value-added work is sent national broadband plans and the importance of nationalabroad to emerging markets where labor is cheaper. By policy leadership for driving the rollout of broadbandcontrast, emerging markets are more export-oriented networks, services, and applications. In light of recentand driven by tradable sectors. They tend to gain more evidence for strong positive externalities to investmentsfrom digitization’s effect on employment than from its in broadband networks, rapid technological evolution,influence on growth. and a changing institutional environment, the chapterxiv | The Global Information Technology Report Report 2013 @ 2013 World Economic Forum
  16. 16. Executive Summaryexplores the changing role of policymakers in helping to from Cisco Systems, the impact of increasing usage offacilitate and set national policy. mobile data per 3G connection. This study finds that: A growing number of countries now recognize • For a given level of mobile penetration, a 10 percentthe importance of policy leadership and a clear cross- increase in 3G penetration increases GDP per capitasectoral vision to maximize the economic and social growth by 0.15 percentage points.returns to ICTs, as shown by strong growth in thenumber of national broadband plans. This chapter • A doubling of mobile data use is associated with anprovides a brief overview of the growth in these plans increase in the GDP per capita growth rate of 0.5and the key characteristics of good ones, with reference percentage several examples: the US, UK, and Polish nationalbroadband plans. These results suggest that policy activity should focus on increasing 3G penetration and mobile dataFiber Broadband: A Foundation for Social and consumption. This focus should include makingEconomic Growth spectrum available for mobile broadband andIn Chapter 1.5, Sean Williams from BT highlights the fact encouraging the substitution of basic mobile servicesthat, as the foundation for knowledge- and ICT-based with more-advanced 3G, fiber broadband has the potential to drive socialand economic growth and help create jobs. As Europe, Better Measurements for Realizing the Full Potentialand the wider developed world, look to emerge from the of Health Information Technologiesrecent financial crisis and downturn, such growth will be Healthcare has become an increasingly dominant topicvital. The issue is not whether fiber broadband can help of discussion in recent years because of rising costsdrive social and economic growth, but how the vision and the need to improve the efficiency and quality ofof coverage as close as possible to 100 percent can be healthcare delivery. Although ICTs cannot, alone, provideachieved. the solution for overcoming these issues, they are seen This chapter aims to advance the debate in two by many governments as potentially playing a significantways: first, by reviewing recent independent research role as enablers of the changes required in healthfrom Regeneris, an economic development consulting systems.firm, detailing the economic impact of high-speed In light of this, a critical question now facingbroadband infrastructure on environments as diverse as policymakers is how to realize the full potential ofcapital cities and economically deprived rural regions. these technologies, particularly since the challenges toAnd second, by articulating technical and market achieving widespread ICT adoption and use are provingsolutions that are fit for purpose in the current economic daunting.climate. In Chapter 1.7, Elettra Ronchi from the Organisation The chapter recommends policy responses that for Economic Co-operation and Development (OECD),national governments and regional authorities should Julia Adler-Milstein and Genna R. Cohen from theimplement to put these solutions into action. University of Michigan, and Laura P. Winn and Ashish K. Jha from the Harvard School of Public Health argueThe Economic Impact of Next-Generation Mobile that countries have much to gain by combining theirServices: How 3G Connections and the Use of efforts and sharing the burden of developing comparableMobile Data Impact GDP Growth measures for evidence-based policy in this sector. Risk,In Chapter 1.6, Chris Williams, Davide Strusani, David delay, and cost can be minimized by learning from goodVincent, and David Kovo from Deloitte LLP argue that international practices.the mobile telecommunication sector continues to offer The chapter reviews what is currently knownunprecedented opportunities for economic growth in about the state of implementation of ICTs in the healthboth developing and developed markets, and that mobile sector across OECD countries and the benefits thatcommunication services have become an essential part can be realized from these technologies, including theof how economies work and function. opportunities for economic growth. It then discusses As technology develops, mobile telephony has the efforts, led by the OECD, to develop a common setthe potential to impact economic development further of indicators, describing the policy motivation for thisthrough the provision of high-value 3G and 4G data work, the process followed, the current status of theseservices accessed via smartphones, tablets, and measures, and the key remaining challenges.dongles that deliver mobile data services to businessesand consumers. For the first time, applying econometricanalysis, the authors studiy the impact, on GDPper capita growth, of consumers substituting a 2Gconnection with a 3G connection and, based on data The Global Information Technology Report Report 2013 | xv @ 2013 World Economic Forum
  17. 17. Executive SummaryRe-Establishing the European Union’s other essential assets—oil and water, for instance—itCompetitiveness with the Next Wave of Investment exists in abundance and can help reduce conflict andin Telecommunications tension instead of proliferating discord.In Chapter 1.8, Scott Beardsley, Luis Enriquez, Wim In Chapter 1.9, Mikael Hagström and Ian ManochaTorfs, Ferry Grijpink, Stagg Newman, Sergio Sandoval, from SAS Institute Inc. identify how big data andand Malin Strandell-Jansson from McKinsey & Company analytics can help energize the economy throughargue that Europe’s fixed and mobile telecommunication efficiency, innovation and creative gains, by:networks need a massive upgrade to satisfy burgeoning • using big data to stimulate new ways of doingconsumer demand for new Internet services. McKinsey business;& Company estimates that modernizing the EU-15’s fixedtelecommunication infrastructure to give all households • using linguistic-based analytics to formulate policiesaccess to high-speed broadband will take €200 to €250 and target action plans to tackle unemploymentbillion, while revamping Europe’s mobile infrastructure to before problems manifest themselves;offer 4G services to 95 percent of the region’s population • using big data and analytics to match people to jobswould cost another €50 to €70 billion. and jobs to people more proactively—the chapter Unless they make investments on this scale, draws on experiences at the national and stateEurope’s economies risk losing technology leadership government level, and from working with financialacross the telecommunication value chain to Asia and institutions; andthe United States. High-speed network investment is far • putting the tools and methods of analytics intoahead in both regions. For instance, around 64 percent the hands of an existing workforce to industrializeof 4G mobile subscriptions worldwide are in North the service economy (the sleeping giant), muchAmerica, 33 percent in Asia Pacific, but only 3 percent as Henry Ford’s innovation industrialized factoryin Europe. Value-added by the US telecommunication production.industry grew in real terms by 18 percent from 2007 to2010, but only 7 percent in Europe. The chapter analyzes advances in ICTs and Downward pressure on both wholesale and current applications—such as how a major retailretail prices is choking growth and profitability among organization comes to understand what customersEurope’s telecommunication players, hindering them want (what products, where, and when) and the flowfrom meeting their investment challenge. This chapter of this information back down their supply chain tooffers four ideas for shaping a region-wide policy manufacturers, based on demand. Such approachesframework that could lift those constraints: can help ensure we have qualified labor in the right • Allow a reduction in the number of fixed and location at the right time. mobile operators. Europe’s consumers could be better served by an industry with fewer players that PART 2: CASE STUDIES OF LEVERAGING ICTS FOR are strong enough to make large investments but COMPETITIVENESS AND WELL-BEING sufficiently plentiful to ensure vibrant competition. Part 2 presents deep-dive studies of selected national experiences of leveraging ICTs or developing the • Allow more pricing flexibility, so operators sector, showcasing the main challenges faced and get a proportionate return from customers who the articulation of strategies to overcome them. In this generate the most data traffic and take up the most edition, the cases of Colombia and Rwanda, as well as bandwidth. a comparative case study of e-government in three Latin • Restrict wholesale access regulation to a few American countries, are presented. basic services, and allow “regulatory” holidays. This would give operators a better chance of Colombia’s Digital Agenda: Successes and recouping their investments. Challenges Ahead In recent years, the ICT sector has gained importance • Release more spectrum to operators, giving them in Colombian public policy because the government has more options for extending network capacity. given priority to the development of Plan Vive Digital, which seeks to give the country a technological leapThe Big Opportunity for Inclusive Growth forward that affects the economy and developmentThe social and economic environment is changing, in a positive way, reducing poverty and increasingand the way that business and government look at the competitiveness and productivity.economy must change with it. If not, we run the risk of In Chapter 2.1, Diego Molano Vega, Minister ofsocial exclusion and further economic slowdown. Information and Communication Technologies of Big data is a new asset class that has great Colombia, identifies the four obstacles to achieving thepotential to help resurrect the global economy. Unlikexvi | The Global Information Technology Report Report 2013 @ 2013 World Economic Forum
  18. 18. Executive Summarywidespread use of the Internet in his country: (1) people obtaining access to credit. The Global Competitivenessand businesses do not perceive the Internet as useful; Report 2012–2013 published by the World Economic(2) the costs of installing the necessary infrastructure Forum ranked Rwanda the most competitive economy inare high; (3) the state has limited resources to invest in the East Africa Community (EAC) countries and third ininfrastructure; and (4) Colombians’ purchasing power is sub-Saharan Africa. Rwanda also received top ranking inlimited. East Africa, and 7th in Africa among countries with active To achieve widespread Internet use, Plan Vive Digital mobile-broadband subscriptions per 100 inhabitantshas defined some concrete goals for the year 2014: in 2011 in the United Nations Broadband Commission report. 1. Triple the number of municipalities connected to In many respects, this progress has come as a the information highway. The aim is to extend the result of visionary leadership and good governance infrastructure to connect 1,053 of the country’s practices that have been embraced by Rwanda’s municipalities to the national fiber-optic network. leaders. Rwanda has systematically fought corruption, 2. Connect 50 percent of micro-enterprises and which is one of the biggest impediments to development small- and medium-sized enterprises, and 50 in Africa and everywhere in the world. percent of homes to the Internet. In its Vision 2020, developed in 2000, Rwanda set out on a journey to becoming a knowledge-based 3. Increase the number of Internet connections economy. To this end, the government integrated ICTs fourfold. By 2014, we want to reach 8.8 million into its Vision 2020 to enable the country to leapfrog the Internet connections. key stages of industrialization and transform its agro- based economy into a service-oriented, information-rich Vive Digital aims to develop the country’s digital and knowledge-based one that is globally competitive.environment through its four principal components by: This integration came in the form of its national ICT 1. expanding the infrastructure, strategy and plan, commonly known as the National 2. creating new services at lower prices, Information Communication Infrastructure Plan (NICI 3. developing digital applications and contents, and Plan), which Rwanda adopted in 2000 as an approach 4. fostering ICT adoption and use. to use ICTs holistically for development. Each five-year phase (the NICI Plan includes four five-year phases The main goal is to establish a virtuous circle that spanning 20 years) characterizes this strategy and iscan act as a method of feedback, in which a better aligned with the country’s overall development goals andinfrastructure will allow more and better services at lower vision.prices and also stimulate the development of content, The plan, now in its third phase, has deliveredapplications, and demand. a number of successes. These include a nationwide fiber-optic backbone network, a state-of-the art tier 3The Metamorphosis to a Knowledge-Based Society: data center, 96 percent cell phone/data coverage, andRwanda multipurpose community tele-centers, to mention but aChapter 2.2, by Alex Ntale from the Rwanda ICT few of the plan’s successes.Chamber and Private Sector Federation, AtsushiYamanaka from the Rwanda Development Board-ICT/ E-Government in Latin America: A Review of theJapan International Cooperation Agency, and Didier Success in Colombia, Uruguay, and PanamaNkurikiyimfura from Rwanda’s Ministry of Youth and ICT, Although Latin America entered in the 21st centurypresent Rwanda’s remarkable journey from an agrarian with abundant initiatives aimed at introducing ICTseconomy to a knowledge-based one that has put the in the public sector, as evidenced by the numerouscountry at the forefront of the region in terms of ICTs. e-government solutions documented by the excelGov Rwanda’s economy has continued to grow at Awards, very few countries have been able to maintaincomparably good rates, averaging 8 percent per annum, a rhythm of progress comparable to the most advanceddespite a global recessionary environment starting in nations in the world. Colombia, Uruguay, Panama, Chile,2008 and containing high inflationary pressures. This and occasionally Mexico and Brazil, have occupied agrowth in such adverse circumstances can be attributed place among the top 50 e-government countries in theto good governance, sound fiscal discipline, and the most recognized worldwide rankings.commitment from both the public and private sector to Chapter 2.3, by Miguel A. Porrúa from thebuild a more equitable country. Organization of American States, looks at three Latin In the World Bank’s Doing Business 2012 report, American countries—Colombia, Uruguay, and Panama—Rwanda is ranked number one in East Africa with and charts their respective paths to achieving success inrespect to starting up a business, registering property, establishing ICTs in public administration, and identifiesprotecting investors’ interests, enforcing contracts, and some of their common elements. The Global Information Technology Report Report 2013 | xvii @ 2013 World Economic Forum
  19. 19. Executive Summary For the past five years, Colombia, Uruguay, non-Survey data variables included in the NRIand Panama have seen progress that not only computation this year.becomes empirical proof of the validity of most of therecommendations made by e-government authors and NOTESpractitioners but also positions these three countries as 1 Jipp 1963.a valuable reference for others around the world. 2 See World Economic Forum 2012. The three have built their success upon solid 3 See the European Commission’s Digital Agenda, available atpolitical support that comes from the highest office, the, and goes to the next level, the ministerial. 4 See all three countries, presidents have shown their 5 The authors have estimated the GDP and employment impactcommitment not just with words but with actions. caused by the increased digitization in most countries and aggregated to get the global impact.Presidential decrees have sent an unmistakablemessage to citizens and government officers alike abouttheir unwavering commitment to bringing ICTs to the REFERENCESpublic administration. ITU (International Telecommunication Union). 2012. World Telecomunication/ICT Indicators Database (December 2012 Usually, an immediate consequence of that edition.) Available at support is the availability of financial resources world/ undertake the main initiatives. Unfortunately, Latin Jipp, A. 1963. “Wealth of Nations and Telephone Density.” Telecommunications Journal (July): 199–201.America offers numerous examples of fruitless, well-designed e-government plans that, years after launching, Katz, R. 2012. The Impact of Broadband on the Economy: Research to Date and Policy Issues. ITU Broadband Series, April. Geneva:are still waiting to see some financial investment that ITU. Available at allow the projects to be implemented. Although Reports_Impact-of-Broadband-on-the-Economy.pdf.Colombia, Uruguay, and Panama could have done World Economic Forum. 2012. The Global Competitiveness Reportmore in providing funding to e-government initiatives, 2012–2013. Geneva: World Economic Forum. Available at www. clearly understood that nice documents with nobacking money produce no results. Smartly usinginternational cooperation and public-private partnerships,they managed to allocate financial resources to theire-government plans every year. The virtuous triangle of success in these threecountries adds another vertex in the careful attentionpaid to human resources. The systematic investmentin the qualification of government officers as well asa carefully designed institutional framework allowedColombia, Uruguay, and Panama to advance morequickly than other countries in the region. Other ingredients, such as the operational autonomyof AGESIC in Uruguay and AIG in Panama; theappropriation office in Colombia; the strong IT sector inUruguay; the international cooperation in Panama; theimplication of the private sector in Colombia; and thecommitment of three, well-qualified champions in thethree countries added the necessary spice to a recipemade of the best ingredients: political support, financialbacking, and qualified human resources.PARTS 3 AND 4: COUNTRY/ECONOMY PROFILESAND DATA PRESENTATIONParts 3 and 4 feature comprehensive profiles for eachof the 144 economies covered in this year’s Reportand data tables for each of the 54 variables composingthe NRI, with global rankings. Each part begins with adescription of how to interpret the data provided. Technical notes and sources, included at the endof Part 4, provide additional insight and informationon the definitions and sources of specific quantitativexviii | The Global Information Technology Report Report 2013 @ 2013 World Economic Forum
  20. 20. The NetworkedReadiness IndexRankings @ 2013 World Economic Forum
  21. 21. @ 2013 World Economic Forum
  22. 22. The Networked Readiness Index 2013 2012 rank 2012 rank Rank Country/Economy Score (out of 142) Rank Country/Economy Score (out of 142) 1 Finland 5.98 3 73 Ukraine 3.87 75 2 Singapore 5.96 2 74 Thailand 3.86 77 3 Sweden 5.91 1 75 Romania 3.86 67 4 Netherlands 5.81 6 76 Indonesia 3.84 80 5 Norway 5.66 7 77 Moldova 3.84 78 6 Switzerland 5.66 5 78 Bosnia and Herzegovina 3.80 84 7 United Kingdom 5.64 10 79 Seychelles 3.80 n/a 8 Denmark 5.58 4 80 Egypt 3.78 79 9 United States 5.57 8 81 Cape Verde 3.78 81 10 Taiwan, China 5.47 11 82 Armenia 3.76 94 11 Korea, Rep. 5.46 12 83 Albania 3.75 68 12 Canada 5.44 9 84 Vietnam 3.74 83 13 Germany 5.43 16 85 Jamaica 3.74 74 14 Hong Kong SAR 5.40 13 86 Philippines 3.73 86 15 Israel 5.39 20 87 Serbia 3.70 85 16 Luxembourg 5.37 21 88 Rwanda 3.68 82 17 Iceland 5.31 15 89 Morocco 3.64 91 18 Australia 5.26 17 90 Dominican Republic 3.62 87 19 Austria 5.25 19 91 Ecuador 3.58 96 20 New Zealand 5.25 14 92 Kenya 3.54 93 21 Japan 5.24 18 93 El Salvador 3.53 103 22 Estonia 5.12 24 94 Lebanon 3.53 95 23 Qatar 5.10 28 95 Ghana 3.51 97 24 Belgium 5.10 22 96 Botswana 3.50 89 25 United Arab Emirates 5.07 30 97 Liberia 3.48 n/a 26 France 5.06 23 98 Gambia, The 3.47 101 27 Ireland 5.05 25 99 Argentina 3.47 92 28 Malta 4.90 26 100 Guyana 3.45 90 29 Bahrain 4.83 27 101 Iran, Islamic Rep. 3.43 104 30 Malaysia 4.82 29 102 Guatemala 3.42 98 31 Saudi Arabia 4.82 34 103 Peru 3.39 106 32 Lithuania 4.72 31 104 Paraguay 3.37 111 33 Portugal 4.67 33 105 Pakistan 3.35 102 34 Chile 4.59 39 106 Cambodia 3.34 108 35 Cyprus 4.59 32 107 Senegal 3.33 100 36 Puerto Rico 4.55 36 108 Venezuela 3.33 107 37 Slovenia 4.53 37 109 Honduras 3.32 99 38 Spain 4.51 38 110 Uganda 3.30 110 39 Barbados 4.49 35 111 Namibia 3.29 105 40 Oman 4.48 40 112 Tajikistan 3.29 114 41 Latvia 4.43 41 113 Nigeria 3.27 112 42 Czech Republic 4.38 42 114 Bangladesh 3.22 113 43 Kazakhstan 4.32 55 115 Zambia 3.19 109 44 Hungary 4.29 43 116 Zimbabwe 3.17 124 45 Turkey 4.22 52 117 Suriname 3.13 121 46 Panama 4.22 57 118 Kyrgyz Republic 3.09 115 47 Jordan 4.20 47 119 Bolivia 3.01 127 48 Montenegro 4.20 46 120 Côte d’Ivoire 3.00 122 49 Poland 4.19 49 121 Gabon 2.97 n/a 50 Italy 4.18 48 122 Mali 2.97 126 51 Croatia 4.17 45 123 Benin 2.97 117 52 Uruguay 4.16 44 124 Cameroon 2.95 125 53 Costa Rica 4.15 58 125 Nicaragua 2.93 131 54 Russian Federation 4.13 56 126 Nepal 2.93 128 55 Mauritius 4.12 53 127 Tanzania 2.92 123 56 Azerbaijan 4.11 61 128 Ethiopia 2.85 130 57 Brunei Darussalam 4.11 54 129 Malawi 2.83 116 58 China 4.03 51 130 Burkina Faso 2.80 135 59 Mongolia 4.01 63 131 Algeria 2.78 118 60 Brazil 3.97 65 132 Libya 2.77 n/a 61 Slovak Republic 3.95 64 133 Mozambique 2.76 120 62 Kuwait 3.94 62 134 Timor-Leste 2.72 132 63 Mexico 3.93 76 135 Mauritania 2.71 139 64 Greece 3.93 59 136 Swaziland 2.69 136 65 Georgia 3.93 88 137 Madagascar 2.69 134 66 Colombia 3.91 73 138 Lesotho 2.68 133 67 Macedonia, FYR 3.89 66 139 Yemen 2.63 141 68 India 3.88 69 140 Guinea 2.61 n/a 69 Sri Lanka 3.88 71 141 Haiti 2.58 142 70 South Africa 3.87 72 142 Chad 2.53 138 71 Bulgaria 3.87 70 143 Sierra Leone 2.53 n/a 72 Trinidad and Tobago 3.87 60 144 Burundi 2.30 137 The Global Information Technology Report Report 2013 | xxi @ 2013 World Economic Forum
  23. 23. @ 2013 World Economic Forum
  24. 24. Part 1The CurrentNetworked Readinessfor Growth and Jobs @ 2013 World Economic Forum
  25. 25. @ 2013 World Economic Forum
  26. 26. CHAPTER 1.1 When The Global Information Technology Report (GITR) and the Networked Readiness Index (NRI) were createdThe Networked Readiness some 12 years ago, the attention of decision makers and investors was on adopting business and financialIndex 2013: Benchmarking strategies that would allow them to develop in the context of a fast-moving but nascent Internet economy.ICT Uptake and Support Over more than a decade, the NRI has provided decision makers with a useful conceptual framework tofor Growth and Jobs in a evaluate the impact of information and communicationHyperconnected World technologies (ICTs) at a global level, and to benchmark the ICT readiness and the usage of their economies. Today, the world has undergone massive changes:BEÑAT BILBAO-OSORIO, World Economic Forum the Internet bubble has come and gone, and emergingSOUMITRA DUTTA , Cornell University countries such as China and India have becomeTHIERRY GEIGER, World Economic Forum prominent global providers and users of ICT equipmentBRUNO LANVIN, INSEAD and services. Struggling to emerge from the financial crisis, developed economies are striving to return to higher levels of growth and competitiveness while fighting stubbornly high unemployment rates, especially among their youth. Both emerging and developed economies are focusing on innovation, competing globally for talent, resources, and market shares. Information flows and networks have spread across borders in ways that could not be imagined before the onset of the Internet, the global adoption of mobile telephony and social networks, and the rapid growth of broadband. Business models have been redefined, the workplace has been redesigned, small startups have evolved into large companies, and entire functions of society (education, health, security, privacy) are being rethought. ICTS, COMPETITIVENESS, GROWTH, AND JOBS: A COMPLEX RELATIONSHIP The links between ICTs (their tools, services, and models) on the one hand and the unwavering importance of competitiveness, growth, and jobs on the other have never before been the subject of so much attention and concern. This is hardly surprising when one considers the “pull” of technology: developed economies need to reinvent themselves to maintain or restore their competitiveness, retain or regain market shares, and create jobs; emerging and developing economies are seeking ways to improve productivity and find new sources of growth through new technologies. Finally, the world needs to collectively address environmental and social challenges to ensure a more sustainable development path and a better quality of life for its people. On the “push” side, technological progress continues at a relentless speed. The growing availability of technology has empowered citizens of both developed and emerging economies with fairly good access to the digital world. The rise of cloud computing has reduced the competitive differentials in technology availability across larger and smaller firms. Low entry barriers in the The Global Information Technology Report 2013 | 3 @ 2013 World Economic Forum