Study sees tech promise in developing nations

While the downturn in the US economy has depressed the market here for information technology and electronic commerce, a new report argues that companies should be looking to developing nations for new opportunities.

The report, released Thursday and conducted by McConnell International, an e-commerce consulting firm, with help from the World Information Technology and Services Alliance, studied "e-readiness" in 53 countries, many of which are developing. Specifically, the report, an update on the first one released in August, measured the level of connectivity, information security, human capital, leadership in promoting and helping to foster e-commerce and whether there is a business climate conducive for e-commerce.

"E-society is shifting increasingly to emerging economies," said Bruce McConnell, the firm's president, a former chief of information and technology policy at the Office of Management and Budget, who left to head the International Y2K Cooperation Center in 1999. "We believe by bringing emerging markets onto the Net everyone benefits."

He and others said the report highlights the many business opportunities available in developing countries that are trying to transform their economies. Such opportunities "are risky... You have to be ready to work with local partners," he said.

McConnell added that many of these countries see the economic slowdown in the developed world as a chance for them to catch up.

Among those countries that scored the best in the survey included Estonia, South Korea and Taiwan. Estonia was praised as a pioneer in promoting e-government. The report notes that the country's government holds its Cabinet meetings online. The Estonian government also has worked closely with Finland and has made a strong commitment to make its business climate more successful for e-commerce. In Taiwan's capital, Taipei, the local government has linked 175 government authorities through a private broadband network that allows most of the city's documents to be delivered electronically.

The report argues that such efforts help government officials learn firsthand the benefits of using IT.

South Korea's government was noted for a major project it launched to promote e-commerce and improve the business infrastructure. It also has stepped up its efforts to crack down on software piracy and established a system aimed at preventing and curbing cybercrime.

The report does show that wide gaps exist, but the report highlights positive actions being taken by those countries that may not have the infrastructure or connectivity currently in place. Jordan, for example, was given high marks for taking steps now that have the potential to improve its ability to "participate in the digital economy." The country has launched a two-year education initiative requiring students to become literate in both English and computer skills.

Bruno Lanvin, executive secretary at the G8's Digital Opportunity Taskforce, said the report highlights a much broader issue of the "development divide" that is related to the global economy's increasing reliance on information technologies.

The Digital Opportunity Taskforce is an effort launched by the Group of Eight countries aimed at narrowing the gap between the technology haves and have-nots. The group is set to release a report later this year outlining nine action points. However, one of the major issues still to be decided is who will oversee its implementation and pay for it, Lanvin said.

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