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    Promoting Information and Communication Technology in ADB Operations
    Promoting Information and Communication Technology in ADB Operations
    Promoting Information and Communication Technology in ADB Operations
    Ebook309 pages3 hours

    Promoting Information and Communication Technology in ADB Operations

    By Asian Development Bank

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    About this ebook

    Rapid advances in information and communication technology (ICT) continue to create tremendous opportunities for economic and social gains in the world's poorest areas. A key infrastructure of knowledge-based economies. ICT is a driving force for rapidly growing new sectors. The Strategy 2020 of the Asian Development Bank (ADB) reinforces the importance of drawing on ICT to enhance development in Asia and the Pacific. In line with Strategy 2020, ADB's 2013 ICT for Development Strategy and with the support of the Republic of Korea's e-Asia and Knowledge Partnership Fund (EAKPF), this study examines and identifies opportunities for promoting ICT in ADB operations.
    LanguageEnglish
    PublisherAsian Development Bank
    Release dateSep 1, 2014
    ISBN9789292546090
    Promoting Information and Communication Technology in ADB Operations

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      Book preview

      Promoting Information and Communication Technology in ADB Operations - Asian Development Bank

      PROMOTING INFORMATION AND COMMUNICATION TECHNOLOGY IN ADB OPERATIONS

      © 2014 Asian Development Bank

      All rights reserved. Published 2014.

      Printed in the Philippines.

      ISBN 978-92-9254-608-3 (Print), 978-92-9254-609-0 (e-ISBN)

      Publication Stock No. RPT146749-2

      Cataloging-In-Publication Data

      Asian Development Bank.

      Promoting Information and Communication Technology in ADB Operations.

      Mandaluyong City, Philippines: Asian Development Bank, 2014.

      1. ICT. 2. e-Governance. 3. Asian Development Bank. I. Asian Development Bank.

      The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent.

      ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use.

      By making any designation of or reference to a particular territory or geographic area, or by using the term country in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area.

      ADB encourages printing or copying information exclusively for personal and noncommercial use with proper acknowledgment of ADB. Users are restricted from reselling, redistributing, or creating derivative works for commercial purposes without the express, written consent of ADB.

      Note:

      In this publication, $ refers to US dollars.

      Asian Development Bank

      6 ADB Avenue, Mandaluyong City

      1550 Metro Manila, Philippines

      Tel +63 2 632 4444

      Fax +63 2 636 2444

      www.adb.org

      For orders, please contact:

      Public Information Center

      Fax +63 2 636 2584

      adbpub@adb.org

      This report was completed with the financial support of the Asian Development Bank (ADB) from trust fund resources provided by the Government of the Republic of Korea. It was prepared by Seok Yong Yoon, senior public management specialist (e-Governance) of ADB’s Regional and Sustainable Development Department, Steven Tabor, and Michael Minges, with inputs and assistance provided by Chava Chaithanya, Gora Datta, Basheerhamad Shadrach, Lauro Vives, Barbara Vondy, and Mary Grace Mirandilla-Santos. The authors would like to express gratitude to ADB Management and staff for their comments and guidance. The authors also wish to thank Cynthia Lizzette Francisco for her inputs and support, and Ma. Carolina Faustino-Chan and Portia Gonzales for their assistance.

      This report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents.

      This report is a work in progress. Please do not cite, quote, or circulate without permission from the authors.

      Contents

      Tables

      Figures

      Boxes

      Preface

      Rapid advances in information and communicationtechnology (ICT) continue to create tremendous opportunities for economic and social gains in the world’s poorest areas. A key infrastructure of knowledge-based economies, ICT is a driving force for rapidly growing new sectors including electronics and software development, business process outsourcing, and various internet-based services. The most important benefits of ICT come not just from simple connectivity or access to networks, but from using it as a powerful instrument for providing innovative development solutions and expanding economic opportunities. For governments throughout Asia and the Pacific, technology is evolving rapidly, creating new ways of delivering services and integrating markets.

      In 2003, the Asian Development Bank (ADB) published its ICT strategy with three strategic ICT thrusts to guide ADB operations: (i) creating an enabling environment through policy improvements and relevant infrastructure provision, (ii) building human resources for general ICT literacy and ICT professional skills through the use of ICT, and (iii) developing ICT applications and information content through ADB-supported projects and activities.¹

      With the support of the Government of the Republic of Korea’s e-Asia and Knowledge Partnership Fund, this study examines opportunities for promoting ICT in ADB operations. It builds on and reinforces the findings of ADB’s ICT strategy; identifies areas where there remain gaps in ICT infrastructure, policy, and institutions; examines ADB assistance in supporting ICT for development since the ICT strategy was adopted; and identifies a number of areas in which e-solutions could be adopted to assist ADB’s developing member countries (DMCs) meet the strategic goals and objectives set in key sectors of ADB operations.

      The report finds that there are ample opportunities to incorporate ICT to integrate markets, expand employment opportunities, and improve the delivery of key services to contribute to poverty reduction and inclusive growth. Technology is changing in ways that could, if effectively deployed, contribute to massive gains in the access and delivery of services, while providing countless new business opportunities for the region. But harnessing new technology will require substantial investment, both public and private, improvements in regulatory regimes, and considerable improvement in ICT literacy and institutional capacities. In all of these areas, ADB, in close cooperation with other stakeholders and partners, can play an important role.

      ICT is rapidly evolving, and new knowledge of technological possibilities and of the good practices required to effectively deploy such technology will be required if policymakers are to harness the development potential that ICT affords. ADB’s Regional and Sustainable Development Department, in partnership with other development partners and stakeholders, will continue to support the advancement of new knowledge on ICT for development to assist ADB’s DMCs capture the benefits of this exciting new technology.

      Abbreviations

      Executive Summary

      Rapid advances in information and communication technology (ICT) continue to create tremendous opportunities for economic and social gains in the world’s poorest areas. A key infrastructure of knowledge-based economies, ICT is a driving force for rapidly growing new sectors including electronics and software development, business process outsourcing, and various internet-based services. In line with ADB’s Strategy 2020, along with its 2003 ICT strategy, this publication examines and identifies opportunities for promoting ICT in ADB’s operations.

      ICT sector challenges. The ICT sector is highly diverse throughout the Asia and Pacific region. On the one hand, the region’s developed economies have highly evolved markets and are among the world leaders in internet penetration and broadband networks. On the other hand, many of the region’s developing economies have far to progress to create sustainable and dynamic ICT sectors with widespread high-speed internet access for citizens.

      Wireless technology has dramatically boosted basic access to ICTs in the region. In 2000, mobile penetration among the region’s low- and middle-income economies stood at 2 per 100 people; by 2012, this had risen to 86 subscriptions per 100 people. This has been propelled by the ease by which wireless networks can be deployed compared with fixed networks and the introduction of competition in most of the region’s economies. For consumers, flexible payment options and the convenience of having their phones with them have driven mobile take-up. Wireless has been further stimulated by incessant device improvements and the spread of mobile broadband networks.

      While simple cellphones were the norm a decade ago, today smartphones and tablets are increasingly prevalent. Smarter devices can enhance development interventions in areas such as agriculture, financial services, employment, governance, and health. Further, they can help overcome literacy and language challenges. Experiments with tablets in South Asia have found that illiterate and rural users can quickly benefit from livelihood and health applications due to graphical user interfaces.

      High-speed networks have assumed strategic importance for economic and social development. However, broadband take-up varies tremendously in the region. Average fixed broadband penetration in Asia and the Pacific was only 3% in low- and middle-income economies in 2012. Mobile broadband penetration is higher. But, there is an even greater gap between high-income (99% penetration) and low- and middle-income economies (10%) in mobile broadband than there is for fixed broadband. Eight economies, all in the Pacific, have yet to launch mobile broadband networks.

      The pace of sector reform in the region has been uneven. According to ITU data for the Asia and Pacific region, 29 out of 40 economies had a separate ICT regulator in 2012. This is a significant difference since 2000, when only 10 economies in the region had a separate regulator. According to World Bank data, only 15 economies in the East Asia and the Pacific and the South Asia regions have divested some, or all, of their incumbent telecommunication operators since 1990. There have been no new divestures since 2007 reflecting the global financial crisis and lack of interest in incumbent operators. On the other hand, many new private operators have entered the market, primarily for the provision of mobile services. Though the region has liberalized ICT services over the last few decades, competition remains limited in some nations. While the theoretical level of openness appears to be high in some markets, it is often constrained by opaque licensing procedures and restrictions on facilities-based competition.

      ICT needs and opportunities. The rapid spread of mobile communications and deployment of broadband wireless networks is placing high demand on the efficient allocation of radio spectrum. Governments need to design methods to allocate available spectrum to promote the spread of mobile broadband. One promising area is the so-called digital dividend arising from transitioning terrestrial broadcasting services from analog to digital. The transition liberates radio spectrum for new services such as mobile broadband. Rural zones in particular can benefit because this spectrum has a larger transmission range leading to lower costs for deploying mobile broadband networks.

      A key issue inhibiting broadband take-up in the region is high costs. One factor has been the price of international links to overseas internet sites. Although most countries in the region have expanded international internet links and introduced some level of competition, wholesale internet costs still remain high. Transiting internet traffic abroad also discourages the development of local content. An alternative is to create internet exchange points (IXPs) where ISPs exchange domestic traffic, generally for free. More than half the developing economies in the Asia and Pacific region do not have IXPs.

      Broadband

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