There have been other things going on in the world besides the
Macworld Expo - another sorry display of anarchist mob violence at the
G8 summit in Genoa for instance. Can nothing be done about this
portable mob of criminal yahoos? As my Prime Minister, Jean Chretien
(who will be hosting next year's G8 at an isolated retreat in the
Canadian Rockies, protected by mountains, about 20 miles of
near-impenetrable forest, and a few, easily checkpoint controllable
access roads) remarked yesterday, "burning cars is not democracy."
At last year's G8 summit, protesters mocked international efforts to
channel technology towards the needs of the poor. "We can't eat
computers," complained the Luddite leader of a group campaigning for
debt relief. "People are dying." To underscore the point, members of
the group set fire to a laptop computer on an Okinawa beach. And within
international development circles, some have worried that the
technology "fad" might distract donors and draw resources from more
traditional development goals.
But this year's Human Development Report, commissioned by the
United Nations Development Programme
(UNDP) and released this month, argues that information and
communications technology and biotechnology can make major
contributions to reducing world poverty. UNDP Administrator Mark
Malloch Brown warns, "Ignoring technological breakthroughs in medicine,
agriculture, and information will mean missing opportunities to
transform the lives of poor people."
The report concludes that information and communications technology
(ICT) can make an important development impact, because it can overcome
barriers of social, economic, and geographical isolation; increase
access to information and education; and enable poor people to
participate in more of the decisions that affect their lives.
However, it's not only between the first and third worlds that a
disparity of access to Internet technology exists. In a commentary
entitled Don't
ignore the global digital divide, published by ZDNet, Klaus Schwab,
founder and President of the World Economic Forum, a not-for-profit
Foundation in Geneva, Switzerland, notes, "It's clear that a divide
exists between those who have access to electricity and those who do
not. A similar divide exists between those who have access to a
telephone and those who do not. And a divide exists between those who
have access to a broadband connection to the Internet and those who do
not."
He cites Michael Powell, Chairman of the US Federal Communications
Commission, who thinks the whole issue of the digital divide has been
overplayed. "I think the term [digital divide] sometimes is dangerous
in the sense that it suggests that the minute a new and innovative
technology is introduced in the market, there is a divide unless it is
equitably distributed among every part of the society, and that is just
an unreal understanding of an American capitalist systemÖ" he
quotes Powell saying. "I think there's a Mercedes divide, I'd like one,
but I can't afford it . . . I'm not meaning to be completely
flip about this - I think it is an important social issue - but it
shouldn't be used to justify the notion of, essentially, the
socialization of deployment of the infrastructure."
Schwab thinks Mr. Powell's comments miss the point. So do I, and so
does Canada's Industry minister Brian Tobin, whose National Broadband Task Force has
recommended that the government of Canada make high-speed broadband
Internet services available to all Canadian communities by 2004.
In Canada, as in the US, some critics echo Mr. Powell's protest and
have suggested the Can$1.85-4.5 billion necessary to provide universal
broadband access could be better spent elsewhere and argue that rural
residents aren't likely to make use of fast Internet connections.
"I think that kind of pompous, arrogant, misguided, shortsighted
thinking has no place in a modern and contemporary Canada," Brian Tobin
responded last month.
I often disagree with Mr. Tobin, but I give him full credit for
standing tough in the face of urban elitists who oppose full advantages
of citizenship for all Canadians. As a rural resident, I am sick and
tired of the supercilious attitude of some urban dwellers that anyone
who lives outside a metropolitan area is an ignorant simpleton who
couldn't possibly have any interest in high-tech communications or what
is going on in the world beyond the horizon. Internet access is more
important to many rural Canadians than it is to city-dwellers.
As Klaus Schwab observes, digital technology is not a luxury item
like a Mercedes Benz. It is, instead, the key that opens the door to
the knowledge economy. And if we fail to provide access to digital
technology to countries in the developing world [and rural areas of the
developed world] we are essentially denying them an opportunity to
participate in the new economy of the 21st century.
In its report, "The New National Dream: Networking the Nation for
Broadband Access," the Canadian National Broadband Task Force notes
that broadband infrastructure is essential to "Canada's economic
well-being and continued international leadership, and is an important
element of the Government of Canada's innovation agenda. It is a
nation-building challenge that will require creative partnerships and
collaboration between governments, the private sector and communities
nationwide."
A report to the Task Force submitted by The Rural Secretariat,
Agriculture and Agri-Food Canada, notes that the 22% of Canadians who
live in rural and remote communities must have access to modern
information and telecommunications technology, which will be essential
for their future economic sustainability and growth as well, and points
out that:
Citizens of rural and remote areas have similar needs to those of
urban areas yet are disadvantaged by a number of unique challenges,
namely:
- distance from and access to markets and associated higher costs
which can be a disincentive to new business growth;
- geographical remoteness, sometimes implying severe physical
conditions and difficulties of access to transportation;
- low population density implying a lower taxation base to support
essential services, difficulty in attracting private investment due to
the market size, and lack of an adequate and skilled labour pool;
and
- reliance on seasonal/cyclical industries vulnerable to the market
shocks of commodity prices and trade restrictions in the global
economy.
The report observes that "strategic investment in broadband
technologies offers the potential to overcome many of the unique
challenges and traditional barriers that characterize the rural
economy, particularly associated with problems of distance and access,"
and affirms that "Canada's longer term economic prospects are
increasingly tied to its capacity to harness the forces of technology,
knowledge and innovation that drive the global, knowledge-based
economy." Without broadband, rural areas will continue to fall farther
and farther behind economically, and will be increasingly shut off from
services and opportunities that urban Canadians take for granted. The
Internet is the future of communications, and probably within a decade
it will be the main conduit for everything from banking to
television.
"Ensuring that all Canadians, regardless of where they live, have
access to high-speed information technology is essential for future
economic sustainability and growth. Rural and remote Canada is
generally not well positioned to capitalize on opportunities and the
benefits of Canada's transition to the knowledge-driven, technology
intensive new economy," says the report. "Investment in
telecommunications falls into the same class of infrastructure
investments as do roads, water, electricity supply, access to public
services - - all of which are indispensable for economic and social
development. However, low population density continues to be a major
barrier for rural and remote communities as a lack of an adequate
population base and market can discourage private sector infrastructure
investment." Consequently, this is one instance where government
investment in a vital basic infrastructure, just as the government
invested in the transcontinental railroad in the 19th Century, is
necessary, and will ultimately pay handsome dividends, not least the
survival of many rural communities.
As the report states, "The speed of change in the information age is
continuing to accelerate, and many rural and remote areas are in danger
of being marginalized. It is imperative that we do not inadvertently
create barriers that would inhibit rural and remote communities from
taking steps to manage their future. To date, rural and remote Canada
are not benefiting at the same rate from new knowledge-based economy
jobs and from the power of the Internet as a tool of social and
economic development."
"So when we talk about information and communication technologies as
tools to realize 'life, liberty and the pursuit of happiness,'" says
Klaus Schwab, "I see a tremendous opportunity for entrepreneurs. The
digital divide may be difficult to bridge, but opportunities to apply
new technologies for economic development and social good continue to
grow."
Thirty-one percent of US Internet users now have broadband access at
home, work, or school, according to a report released by Arbitron in
conjunction with Coleman, a media research firm, and reported by Nua
Publishing. Fifty-eight percent of these users have broadband access
only at work, 27% have it only at home and 15% have broadband at both
locations.
With the proper infrastructure in place, there is no reason why
world-class e-businesses can't operate virtually anywhere. The current
slump in the dot-coms sector is a correction, not a meltdown. The
future of communications, entertainment, and a large proportion of
commerce is on the Internet. Government services will also be
increasingly offered via cyberspace. As Scott Cook, chairman of Intuit
Inc. has observed, "we're still in the first minutes of the first day
of the Internet revolution."
A new study funded by Verizon Communications and released last week
says that widespread use of high-speed Internet service by Americans
could contribute as much as $500 billion annually to the U.S.
economy.
A
report on Yahoo notes:
- Consumers would benefit from online home shopping, entertainment,
traditional telephone and health care services, as well as reduced
commuting, adding $200 billion to the economy if half the country has
the high-speed service or $400 billion if almost all Americans have it,
the study said.
Plus, the higher consumer demand will also provide a boost to
manufacturers of computers, software and entertainment products, which
would add another $50 billion to $100 billion to the economy, according
to the study done by economist Robert Crandall and engineering
consultant Charles Jackson.
"The impact of broadband by any measure - in terms of GDP, jobs, U.S.
productivity and efficiency - will be profound,'' said Jackson. "We're
looking at a transformative technology: one that doesn't just create
change at the margins of an economic system, but at its core."
Reps. Billy Tauzin and John Dingell have proposed legislation that
would eliminate requirements that dominant local telephone carriers
open their networks before they can offer long-distance data services -
but would require telcos to deploy high-speed Internet service in
hard-to-reach and rural areas. It would be worthwhile for people who
believe in the concept of universal information access and see the
Internet as the engine of prosperity for everyone to contact their
congressperson and support this bill.
The OECD's Communications Outlook
2001 report notes that the Internet, electronic commerce and demand
for broadband communications access at prices supporting an "always-on"
environment are major agents of change in recent telecommunications
policy. But despite developments pushing for greater competition,
progress in liberalising public telecommunications markets remains
slow, especially in terms of local access. At the same time, the
potential contribution to economic growth, including e-commerce
development which could result from reform in the communications sector
are much higher than before. Increased competition is also a major
policy instrument for bridging the digital divide by ensuring wider
access to information and communication technologies.
The sixth edition of the biennial OECD Communications Outlook
provides a range of performance indicators for public communication
services in OECD countries. In addition to a comprehensive review of
the telecommunications sector it includes data and analysis of
broadcasting, cable television and the Internet.
Communications revenues for companies headquartered in the OECD area
totaled US$1.3 trillion in 1999, distributed between telecommunication
services (63%), communication equipment (23%) and broadcasting services
(14%). In the same year, telecommunication revenues for carriers based
in the OECD countries represented more than US$ 800 billion and the
telecommunication services market in the OECD area was estimated at
more than US$ 756 billion.
The benefits of increasing liberalisation are clearly visible in the
growing use of mobile communications and the Internet. Between 1995 and
1999, the average annual expansion for fixed networks was only 4%,
whereas mobile networks grew at an annual rate of 49%. Prepaid cards
driving up wireless penetration rates, the disappearance of
long-distance charges and the possibility of making international calls
at low rates bear witness to the rapid progress in services and
decreasing prices. In New Zealand, fixed network subscribers can now
have a mobile phone without paying a monthly rental for this service.
In the United Kingdom, some cable companies offer a package of
television channels or Internet access as part of their standard
telephony service.
Although all OECD countries are committed to open competition in
telecommunications, the process of deregulation needs to be taken
further. Recent regulatory initiatives have focused on stimulating
local access competition. In 2000, there was a significant increase in
licensing of networks likely to enhance long-term competition, such as
fixed wireless access and third-generation licenses (UMTS).
The OECD Human Development Report concludes that many of the most
important technology opportunities for poor people have so far been
missed because of lack of market demand and inadequate public funding.
Technology creators in the private sector respond to the needs of
high-income consumers, rather than the needs of those who have little
purchasing power. Public sector funding and incentives for research and
development could compensate for these market failures but, says the
Report, governments in both developing and developed countries have so
far failed to provide the support needed.
The diffusion of technology has been just as uneven. Developed
(OECD) countries have 80 percent of the world's Internet users. The
total international bandwidth for all of Africa is less than in the
city of Sao Paulo, Brazil. The total bandwidth for all of Latin America
is roughly equal to that of Seoul, Korea.
Much older technologies have yet to reach the world's poor.
Electricity, in widespread use since the invention of the light bulb in
the 1870s, is still not accessible for some two billion people, a third
of the world's population. Two billion people also do not have access
to low cost essential medicines such as penicillin that were mostly
developed decades ago.
Every year since 1990, the United Nations Development Programme has
commissioned the Human Development Report by an independent team of
experts to explore major issues of global concern. The Report looks
beyond per capita income as a measure of human progress by also
assessing it against such factors as average life expectancy, literacy
and overall well-being. It argues that human development is ultimately
"a process of enlarging people's choices."
And those choices should include broadband Internet access. There is
much work to do.
The Human Development Report is published in English by Oxford
University Press, 2001 Evans Rd., Cary, NC 27513, USA. Telephone (919)
677-0977; toll free in the USA (800) 451-7556; fax (919) 677-1303.
- OECD Communications Outlook 2001
288 pages, OECD, Paris 2001
Electronic version available (PDF)
€73; FF478.85; US$65; DM142.78
For more information, read: The OECD
Communications Outlook 2001.
