ICTs for Economic Growth: ICTs for Economic Growth: Theory, Policy Implications, Theory, Policy Implications, Case Studies Case Studies Jaroslaw K. Ponder Jaroslaw K. Ponder Strategy and Policy Unit International Telecommunication Union Briefing Session on Economics 22 May 2006, UNDP, Geneva, Switzerland Note: The views expressed in this presentation are those of the author and do not necessarily reflect the opinions of the ITU. Jaroslaw K. Ponder can be contacted at [email protected]
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ICTs for Economic Growth: Theory, Policy Implications, Case Studies Jaroslaw K. Ponder Strategy and Policy Unit International Telecommunication Union Briefing.
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ICTs for Economic Growth:ICTs for Economic Growth:Theory, Policy Implications, Theory, Policy Implications, Case StudiesCase Studies
Jaroslaw K. PonderJaroslaw K. PonderStrategy and Policy Unit
International Telecommunication Union
Briefing Session on Economics22 May 2006, UNDP, Geneva, Switzerland
Note: The views expressed in this presentation are those of the author and do not necessarily reflect the opinions of the ITU. Jaroslaw K. Ponder can be contacted at [email protected]
• Trends• Economic meaning of the ICT sector • ICTs versus economic wealth• Theory of economic growth • Policy implications • Global actions • Conclusions
Diffusion of ICTs in CEECsDiffusion of ICTs in CEECs– Muller, Salsas (2003) – Determinants of the Internet
Usage : internet hosts, income per capita, openness, education, political and civil freedoms, state of transition towards a liberalized telecommunications regime, the state of the telecommunications infrastructure, cost of telephone Internet usage costs do not explain cross-
country differences in the number of Internet hosts and users
– Muller, Salsas (2004) – Significant determinants of the Internet usage in enterprises: trade, company size, computer usage, degree of the telecom market liberalization
- Ponder, Markova (2005) – Diffusion of mobile telecommunications
Investigating particular character of Investigating particular character of the ICT sectorthe ICT sector
Investigating particular character of Investigating particular character of the ICT sectorthe ICT sector
Institutional Approach• Piatkowski (2003) – New Economy Indicator – level of
institutional readiness of transition economies for adoption of the New Economy. Slovenia, Czech Republic, Hungary and Estonia belong to the regional leaders. (NEI Factors: regulation, infrastructure, trade, financial system, R&D, human capital, labour market flexibility, product market flexibility, entrepreneurship, macroeconomic stability)
• Piech (2004) – Knowledge Assessment Methodology of World Bank (KAM Methodology: GDP, HDI, Tariffs, Property rights, Regulation, Researchers in R&D, Manuf. Trade, Adult literacy, …, Telephones, Computers, Internet hosts). Czech Republic and Estonia, the most promising countries of region. The same structure as developed countries.
contributes positively to TFP growth• Piatkowski (2003) – CEEC-8: ICT capital contribution to
output growth and labour productivity (extraordinary increase in real ICT investment caused by a) falling prices of ICTs, b) higher-than normal returns on investment)
• Rajasalu, Laur (2003) – Estonia: low contribution of ICT sectors in Estonia´s output. The evidence of direct positive impact of high-tech, medium, high tech and knowledge intensive industries on economic growth is not very convincing. High dependence on subcontracting and transfer pricing makes the contribution of high and medium-high tech industries rather low. Economic growth is influenced more by indirect impact of ICT that made the economy as a whole more competitive and helped to attract investments and create new jobs.
Investigating particular character of Investigating particular character of the ICT sectorthe ICT sector
Economic GrowthEconomic Growth- ECTA (2006) – Positive and statistically significant
relationship between regulatory effectiveness and investment For every 1% increase in regulatory effectiveness
there will be a 0.47% increase in investment. Investment needed to build an electronic communications sector
• Van Ark (2005) – Old and New Europe: Contribution of ICT investment to productivity growth is positive and significant but differentiates between all CEECs exist. Champions: Czech Republic, Hungary
Investigating particular character of Investigating particular character of the ICT sectorthe ICT sector
Economic Growth Economic Growth • Perminova (2004) – Russia: ICT contribution to the labor
productivity growth 1996-2000 in: ICT using sector - even 5 times bigger than in Europe and 2
times as big as in USA, non ICT using sector - like in USA, ICT producing sector - very small 1/10 of European or USA
achievements.• Waverman (2005) – Developing Countries
Positive impact of mobile telecommunications on the economic growth in developing countries
Differences in the penetration and diffusion of mobile telephony certainly appear to explain some of the differences in growth rates between developing countries. If gaps in mobile telecoms penetration between countries persist, then our results suggest that this gap will feed into a significant difference in their growth rates in future.
• 12. We emphasize that the adoption of ICTs by enterprises plays a fundamental role in economic growth. The growth and productivity enhancing effects of well-implemented investments in ICTs can lead to increased trade and to more and better employment. For this reason, both enterprise development and labour market policies play a fundamental role in the adoption of ICTs. We invite governments and the private sector to enhance the capacity of Small, Medium and Micro Enterprises (SMMEs), since they furnish the greatest number of jobs in most economies. We shall work together, with all stakeholders, to put in place the necessary policy, legal and regulatory frameworks that foster entrepreneurship, particularly for SMMEs.
• 90. We reaffirm our commitment to providing equitable access to information and knowledge for all, recognizing the role of ICTs for economic growth and development. We are committed to working towards achieving the indicative targets, set out in the Geneva Plan of Action, that serve as global references for improving connectivity and universal, ubiquitous, equitable, non-discriminatory and affordable access to, and use of, ICTs, considering different national circumstances, to be achieved by 2015, and to using ICTs, as a tool to achieve the internationally agreed development goals and objectives, including the Millennium Development Goals…
Thank you very much Thank you very much for your attention!for your attention!
Jaroslaw K. Ponder International Telecommunication UnionStrategy and Policy Unit E-mail: [email protected] http://www.itu.int/spu Tel: 00 41 22 730 60 65
We all build global We all build global Information Society!Information Society!
ITU’s Strategy and ITU’s Strategy and Policy Unit (SPU)Policy Unit (SPU)
http://www.itu.int/spuhttp://www.itu.int/spu
• New Initiatives Programme Digital Bridges (2005) Ubiquitous Network Societies (2005) Today’s Networks Tomorrow (2005) What Rules for IP-enabled NGNs? (2006) Digital Transformations in the Information
Society (2006) Regulatory Environment for Future Mobile
Internship at the ITUInternship at the ITUwww.itu.int/employment/stages.html www.itu.int/employment/stages.html
• ITU internship programme The Union runs a non-remunerated internship programme for
students who wish to improve their skills and gain experience working in an international environment. This programme is open to all undergraduate and graduate students from ITU's 189 Member States. Candidates are selected in response to specific needs identified within ITU departments.
• Strategy and Policy Unit competition SPU launched its first essay-writing competition under the
"Young Minds in Telecoms" Programme in November 2004. The competition was open to graduate students and recent graduates in economics, political science, law, literature, telecommunications, computer science, information systems and related fields.