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ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC

Fifty-fifth session
22-28 April 1999
Bangkok

Part Two of the Economic and Social Survey of Asia and the Pacific, 1999

Asia and the Pacific into the Twenty-first Century: Information Technology, Globalization, Economic Security and Development

VIII. CONCLUSION: FROM PASSIVE FOLLOWERS TO ACTIVE PARTICIPANTS

Annex

CONSIDERATIONS FOR ICT POLICY FORMULATION IN DEVELOPING COUNTRIES

Even when promulgated as distinct policy pronouncements, ICT policies of necessity have to take into account other policy areas, such as education policies, information policies, trade and investment policies, and cultural and linguistic policies. However, the mere establishment of a written national ICT policy has value in itself. At a minimum, it conveys the message that the government is forward-looking and intends to pursue the utilization of ICT in society. Governments should, of course, aspire to more by putting the policy content into actual practice and becoming a role model in applying ICT in their own administration and services.

Common objectives of ICT policies

The ICT evolution will take place with or without a systematic, comprehensive and articulated policy. However, the lack of a coherent policy is likely to contribute to the development (or prolonged existence) of ineffective infrastructure and a waste of resources. Listed below are some aspirations that ICT policies often try to meet:

Increasing the benefits from information technology
Helping people and organizations to adapt to new circumstances and providing tools and models to respond rationally to challenges posed by ICT
Providing information and communication facilities, services and management at a reasonable or reduced cost
Improving the quality of services and products
Encouraging innovations in technology development, use of technology and general work flows
Promoting information sharing, transparency and accountability and reducing bureaucracy within and between organizations, and towards the public at large
Identifying priority areas for ICT development (areas that will have the greatest positive impact on programmes, services and customers)
Providing citizens with a chance to access information; they may further specify the quality of that access in terms of media, retrieval performance, and so on
Attaining a specified minimum level of information technology resources for educational institutions and government agencies
Supporting the concept of lifelong learning
Providing individuals and organizations with a minimum level of ICT knowledge, and the ability to keep it up to date
Helping to understand information technology, its development and its cross-disciplinary impact

Common ICT policy elements

National ICT policies usually address all or many of the areas listed below. They may also address specific technology problems, such as the year 2000 problem in computers and embedded systems. Organizational (department- or enterprise-level) policies cover more or less the same areas, but are usually more specific and business-oriented. While international cooperation and exchange of experiences is useful in almost any ICT area, certain policies depend on it. For instance, standardization of telecommunication protocols or setting rules for the administration of Internet domain names cannot be accomplished without international cooperation.

Development of ICT infrastructure

Infrastructure development
Interoperation of information systems

Enhancement of public services

Cost savings in service delivery, purchasing, communication, etc.

Electronic commerce and secure transactions

Development of technological standards
Development of skills

: Research and development; ICT education and training

Development of legislation and policies to correspond to the requirements of new ICT

: Diffusion of information technology; Development of ICT industries; Trade policies for ICT-related goods and services; Pricing and taxation of electronic services; Protection of intellectual property; Privacy of personal data; Protection of cultural and linguistic diversity; Protection against illegal and harmful content; Adoption of standards

Institutional development and coordination

: Institutional and regulatory structures; National ICT development coordination; International interface and cooperation

Access to ICT

: Access to infrastructure; Access to information

Monitoring ICT

: Monitoring the use of ICT; Measurement of the impact of ICT

Idealistic and realistic ICT application development compared

If national and global ICT infrastructures were designed today from the beginning, they would look quite different from the ones that actually exist. The reality is, however, that the technologies and applications currently being used have been developed over a long period of time. The gap between an ideal ICT infrastructure and the everyday reality is likely to remain wide for many reasons. A major reason is, of course, the continuous and rapid pace of ICT innovation, which makes today's technology obsolete tomorrow. Another major reason is the lack of experience in managing ICT development at the organizational level in general, and ICT application development in particular. The information in chart 1 compares textbook application development with real-life circumstances.

Chart 1. Comparison of idealistic and realistic ICT application development

Feature

Ideal design

Reality

Development objectives

System goals are based on well-defined programme or business needs.

All participants in the project agree about how the system will serve the needs of users.

The system objectives are reasonable given the resources available.

The system objectives have the support of elected officials and top management.

The objectives include performance measures and a post-implementation evaluation.

Most initiated applications are never used because their development is not completed or because they are not suitable for their intended purposes or are too difficult to put into operation.

Management and staff are ill-informed and poorly trained in how to use ICT effectively. They do not have mechanisms to keep themselves up to date with the evolution of technology.

Staff are unable to articulate their needs. ICT personnel have no time to relate to organizational goals and study how business is being conducted.

Management has no practical measurement indicators to optimize ICT spending and personnel. Consequently, it is difficult to set meaningful and realistic objectives for ICT development. Overambitious goals are set compared with available resources. Application development is started before the availability of requisite support resources is confirmed.

In inter-agency projects, the substantive goals of participating organizations can overlap or conflict, even when the organizations are engaged in a joint project.

ICT project management

All participants are treated as equals and have a substantial stake in the project's success.

All participants understand the project management process and the roles and responsibilities of all the players.

Available financial resources are invested where they are most needed.

Information about project status is shared frequently.

The participants engage in joint problem identification and problem-solving.

Collectively, the project team has the skills needed to carry out a successful system project.

Individuals and organizations resist changes.

Project goals are often comprehensive, but budgets to achieve them are usually underestimated.

New projects are started with too little advance information, weak leadership support, inadequate user participation, too little funding, and less-than-comprehensive training and orientation.

Many projects take considerably longer than originally planned.

Especially in government projects, the roles of collaborating parties in project planning and management can conflict with their (simultaneous) oversight and regulatory roles, and become a source of difficulty in working relationships.

Design of systems

The system is designed to integrate with the related systems and business processes of the affected organizations.

Standard definitions of key data are used by all participants.

The system is designed to support information-sharing across organizations and programmes.

Built-in safeguards assure system security and the confidentiality of sensitive or personal information.

The design adheres to commonly accepted industry standards and does not rely on proprietary technologies.

There is no need for parallel or supplemental systems or procedures to support the service or business functions that the system is designed to meet.

Built-in features reduce human effort and minimize duplication.

The design takes into account the current technical capabilities of the participating organizations.

Usually, the existing infrastructure must be accommodated in a new design, making it second best from the beginning.

Project priorities and desired system features are not static; they change during the project implementation, and so does the best choice technology.

Programme codes are written with varying degrees of compliance with industry standards and adopted application standards. The code is more often than not poorly documented, with design documents being cryptic, inconsistent and incomplete.

The development of applications for information-sharing is often blocked by non-technological reasons which were not adequately analysed before development was begun.

New applications are felt to increase the workload as they are often run parallel with the old ones, and require more time for training and for learning than anticipated.

User support

Complete user documentation (e.g., manuals, troubleshooting guide) is available.

Continuing, up-to-date and accessible user training is offered.

Ongoing, adequate technical support services are available for system maintenance and enhancement.

An ongoing, adequate "help desk" supports users.

There are built-in data management and analysis capabilities for users, including access to local, regional and statewide databases for planning and evaluation purposes.

Some provision is made for local modification based on local needs, including low-tech and no-tech options where local conditions do not support high-tech solutions.

The problems in using ICT applications occur in real work situations and must usually be resolved at once. Most organizations cannot afford to maintain user support that is able to provide instantaneous support.

Organizations are not able to figure out how to use the full potential of existing software and computers. Personnel responsible for ICT development are satisfied after applications are installed and are running with reasonable stability, while non-ICT staff are unwilling to commit time to learn crucial features of new applications.

Organizations fail to change their working procedures and organizations in ways that the new technology would require.

Users are not sufficiently trained, particularly in using applications' built-in help features. Only a small percentage of staff are capable and willing to keep themselves up to date through self-learning.

___________________

Source: Derived from "Tying a Sensible Knot: A Practical Guide to State-Local Information Systems", Center for Technology in Government, State University of New York at Albany, <http://www.ctg.albany.edu/resources/pdfrpwp/iis1.pdf> (8 February 1999) and the secretariat's experiences in ICT application development.

ICT policies need to recognize the above caveats and offer ways to overcome the constraints. Application development should be based on a sound development methodology, good practices found to work elsewhere, past experiences, realistic objectives and user needs. However, perfect planning is neither feasible nor possible, and eventually the success or failure of a development venture is judged on the realized use of the application.

The objectives and content of ICT policies have similarities and differences in international, national, local and organizational contexts. A comparison of some basic features and linkages between various ICT policy levels is given in chart 2.

Chart 2. Links between organizational, national and international policies

Feature	Organizational policies	National-level policies	International policies
Creator	Chief executives and chief information officers.	Government, government agencies, government agency coordinating national and/or government-wide ICT development.	Intergovernmental bodies organizations, international business alliances, large hardware and software manufacturers, multinational corporations.
Method of creation	Various methods in use, some leading to explicit articulated policies, others to ad hoc sets of instructions or to related insertions in sectoral policies.	Typically initiated by governments, triggered by models of other countries. A drafting agency is selected and a draft is circulated for comments among the rest of the government agencies.	Working groups, international meetings, research and development by large hardware and software manufacturers, standards development by international organizations.
Compre- hensiveness	Highly variable, from non-existent to very comprehensive.	Some developed countries are starting to have comprehensive national ICT policies, including national information infrastructure policies and government-wide policies. However, many developing countries have no articulated national ICT policies.	Concentrate on policies that are required in international transactions. Do not effectively address several areas, including impact on social development, access to information and effectiveness of technology transfer.
Main objectives	To support organizational business goals by improving operational efficiency and exchange of information. To maintain and improve competitiveness.	To provide all citizens with equitable access to information and information technologies. To ensure that ICT is part of national education programmes. To improve efficiency and transparency of civil service. To address national ICT issues, such as those arising from national languages.	To ensure that all countries can benefit from information and communication technologies. To develop and promote international technology standards.
Main problems in creating such policies	Resistance to change, especially when technology threatens conventional structures. Difficulty in deciding who is responsible for policy development.	Difficulty in making them pragmatic and meaningful. Setting of the balance between national policy and sectoral policies in which ICT plays a role.	Enormous variation in country conditions.
Links to global policies	Indirect link. Mainly through adoption of international ICT standards and observance of trading agreements.	Direct observance of international agreements and standards as applicable to country commitments. Global policies and standards provide material for setting components of national policies.
Links to national policies	Enterprises may be restricted by national laws and regulations, or may benefit from national development incentives, education programmes, and so on.	Models and experiences of other countries are useful in creating national policies.	International standards are promoted at national level. National policies may address international issues and identify participating agencies in international cooperation.
Links to enterprise policies	Models and experiences of others, especially business associates, are useful in the creation of policies.	Adoption of national standards at enterprise level.	Adoption of international standards at enterprise level.
Main deficiencies in current policies	Inadequate enterprise level adjustments necessitated by ICT development.	Lack of systematic approaches to ICT development in developing countries. Lack of understanding of the impact of ICT on society.	Lack of international mechanisms that could effectively help in the diffusion of ICT in developing countries. Lack of international laws and mechanisms to control undesirable aspects of ICT use.
Role of intergovernmental organizations in improvement	Mostly indirect, through effects on national and global-level policies. Direct advisory role in respect of counterpart government agency policies.	Being independent from ICT vendors, an advisory role in ICT development in central government, in various government sectors and agencies. International support for good governance usually includes ICT components.	A central role in international standard setting, in coordinating rules and regulations.

Factors affecting the formulation of national ICT policies in developing countries

The importance of ICT policies is understood at the highest political level in many developing countries, and some countries have already adopted their own policies. Selected references to these policies are listed at the end of this annex. The effectiveness of an ICT policy in one country does not guarantee that the same recipe would work in another and many developing countries face similar constraints that need to be taken into account when ICT policies are formulated.

ICT infrastructure is weak. Information presented elsewhere in this study illustrates that the lack of computer and telecommunications infrastructure is a key problem in many developing countries. National ICT policies therefore need to be very strong in this area. A master infrastructure development plan can be supported by detailed policies for administrative sectors, geographic areas, types of service, types of educational institute, etc. Government involvement remains essential in the construction of the infrastructure in the foreseeable future in rural areas and remote locations. At the present time, only large cities are sufficiently attractive for most private developers, such as mobile phone and Internet service providers.

ICT-related goods and services are made available on suppliers' terms and low per capita purchasing power does not allow markets to mature. While the processing cost per unit calculated or stored has dropped dramatically, the unit price of the average personal computer sold has not fallen very much. The fact that low-cost computers (although technologically feasible) are not available is largely because the development and trade of ICT components are almost entirely supply-driven, taking into account the needs of only the minority of potential users. It would be easier to learn how to use "poor man's PC" than those currently available; the hardware would be relatively simple, and the operating system and software applications would be reliable and small. Such a personal computer would still be able to perform the most common tasks in the workplace, at school and at home.

Basic information technology, such as personal computers, their peripherals and software are available in major cities of developing countries. However, low purchasing power keeps the number of vendors down. Government ICT policies can help the development of ICT markets by reducing red tape, reducing import taxes and creating a favourable entrepreneurial environment.

Telecommunications monopolies still exist. Developing countries in the Asian and Pacific region are mulling over the possibilities for reforming their telecommunications sectors, which are mainly in the hands of government monopolies. A fair degree of liberalization has been achieved in several domestic telecommunications markets, and private Internet service providers have become commonplace. Consequently, more countries are succeeding in eradicating waiting lists for telephone services.

The liberalization of international telecommunications is, however, taking place painstakingly slowly, and retail prices have practically nothing to do with transmission costs. Governments are protecting their rights to collect tax-like revenue through monopolies, and attempts to change the international accounting rate settlement system^a (which is an additional reason for the high price of international telephone calls) have not succeeded. National ICT policies cannot afford to ignore the fact that the need for low-cost telecommunications services in developing countries is higher than ever. The policies also need adjustments because the existing market mechanism is being taken over by new modes of operation.^b

ICT readiness varies significantly between government departments. Departments and agencies operating in a naturally ICT-intensive field are likely to be more advanced than others. A government can help by identifying a coordinator agency to maintain information about government ICT development ventures. Another way to benefit from the heterogeneity is to develop and test pilot applications in the more advanced departments before these are released for wider use within the government.

Public sector is a significant employer. The computerization of routine functions allows governments to reduce staff and simultaneously to improve the quality of their services. The effectiveness of such moves is often moderated by inflexibilities in employment contracts that limit the scope for staff retrenchments.

Management structures and styles are not conducive. Most failures in ICT application development are caused by poor planning and management, and not by the lack of resources or wrong technology choices. Management of ICT projects is often made more difficult by overly hierarchical organizational structures that are not conducive to innovative ideas. This can create a problem if the management is unaware, or resists becoming aware, of the benefits that could be achieved through the application of ICT. National policies should emphasize the importance of involving senior executives in ICT development and making them accountable for their organization's ICT-related performance.

Governments are struggling to find money for basic public services. Government budgets tend to be tight, especially in developing countries, and this can create problems for rational ICT development and hamper the ability to react quickly to new requirements or to buy the latest technology. In order to get value for money, ICT policies should require that the specifications of systems developed or purchased are reconfirmed by third-party experts before the order is placed.

The penetration and influence of the Internet are still minimal. The Internet is changing the way in which data and information are collected and disseminated and how services are provided to clients. Thus, most new systems should be developed with either immediate or future Internet connectivity in mind.

Governments find it difficult to recruit and retain qualified ICT staff. A key constraint for the effective application of ICT in developing countries is the shortage of human resources.^c Apart from a lack of qualified ICT-system personnel, there is often high turnover of such personnel which can seriously hamper systems development or daily operations. In addition, the ICT skills of other related personnel are not very developed. These problems can lead to delayed and uncoordinated ICT development and contribute to inadequate data security. ICT policies need to address human resource development needs in a broad educational context.

Selected ICT policy references in the Asian and Pacific region

Some key ICT policy documents for selected countries are listed below. The list was compiled in January 1999, based on Web searches, and does not represent a full picture of the ESCAP region. Each entry shows the title, the originating institution and the Web site address.

Australia

Towards an Australian Strategy for the Information Economy: A Preliminary Statement of the Government's Policy Approach and a Basis for Business and Community Consultation, Ministerial Council for the Information Economy, 29 July 1998

<http://www.noie.gov.au/strategy.html> (8 February 1999)

Clients first: The Challenge for Government Information Technology, report of the Minister of Finance's Information Technology Review Group, 1 March 1995

<http://www.finance.gov.au/pubs/itrg/itrg-tc.html> (8 February 1999)

Framework and Strategies for Information Technology in the Commonwealth of Australia, exposure draft, Government Information Services Policy Board, December 1995

<http://www.ogit.gov.au/publications/framework/framewrk.html> (8 February 1999)

China

Information Technology in China, overview prepared by the Ministry of Electronics Industry

<http://www.ita.doc.gov/industry/omni/prc.htm> (15 February 1999)

China IT News, weekly newsletter

<http://www.china-research.com/crc_ciw.htm> (15 February 1999)

Hong Kong, China

Digital 21: Hong Kong Special Administrative Region Information Technology Strategy, prepared by the-Information Technology and Broadcasting Bureau

<http://www.info.gov.hk/itbb/new/digital21.pdf> (November 1998)

Development of Information Infrastructure in Hong Kong, Legislative Council Information Policy Panel, 23 January 1997

<http://www.ofta.gov.hk/mis/rp97a231.html> (15 January 1999)

India

Information Technology Action Plan, prepared by the National Task Force on Information Technology and Software Development, July 1998:

Part I: Software

<http://it-taskforce.nic.in/it-taskforce/infplan.htm> (9 February 1999)

Part II: Hardware (development, manufacture and export of information technology hardware)

<http://it-taskforce.nic.in/it-taskforce/actplan/actplan2.htm> (8 February 1999)

Report of the Panel on Development, Manufacture and Export of Information Technology Hardware, September 1998

<http://it-taskforce.nic.in/it-taskforce/hardrep/> (9 February 1999)

Basic Background Reports National Task Force on Information Technology and Software Development

<http://it-taskforce.nic.in/it-taskforce/bgnew.htm> (8 February 1999)

Japan

Towards the Age of the Digital Economy, Ministry of International Trade and Industry, May 1997

<http://www.miti.go.jp/intro-e/a228101e.html> (21 January 1999)

Vision 21 for Info-communications, Ministry of Posts and Telecommunications

<http://www.mpt.go.jp/policyreports/english/telecouncil/v21-9706/v21-9706-e.html> (21 January 1999)

Flow of Information on the Internet, Report of the Study Group for the Advancement of the Condition for the Use of Telecommunications, Telecommunications Bureau, Ministry of Posts and Telecommunications, December 1996

<http://www.mpt.go.jp/policyreports/english/group/Internet/contents.html> (8 February 1999)

For Achieving Globalization of an "Intellectually Creative Society", interim report, Telecommunications Council, Ministry of Posts and Telecommunications, 23 January 1995

<http://www.mpt.go.jp/policyreports/english/telecouncil/Interim_Report/index.html> (8 February 1999)

Malaysia

Malaysia homepage

<http://www.jaring.my/> (15 February 1999)

National Information Technology Council, Malaysia

<http://www.jaring.my/nitc/index1.html> (15 February 1999)

Multimedia Super Corridor

<http://www.mdc.com.my/> (15 February 1999)

Malaysia E-Commerce Hub, APEC Electronic Commerce Task Force

<http://www.ec.com.my/> (15 February 1999)

New Zealand

Information Technology Advisory Group Communications Framework: Key Objectives, 4 May 1998

<http://www.moc.govt.nz/itag/objectives.html> (21 January 1999)

The Impact of Information Technology on People with Disabilities, Ministry of Commerce, July 1997

<http://www.moc.govt.nz/ran/itpg/disability.html> (8 February 1999)

Impact 2001, Information Technology Advisory Group:

How Information Technology will Change New Zealand, 1 March 1996

<http://www.moc.govt.nz/itag/impact/impact.html> (21 January 1999)

Strategies for Learning with Information Technology in Schools, 4 May 1998

<http://www.moc.govt.nz/itag/impact/strategies.html> (21 January 1999)

Learning with IT, December 1997

<http://www.moc.govt.nz/itag/impact/imped.html> (21 January 1999)

Pakistan

Draft IT Policy of Pakistan, Ministry of Information and Communication

<http://itcomm.gov.pk/it_policy.html> (9 February 1999)

Better Pakistan 2010

<http://www.pak2010.gov.pk/page_1.htm> (15 February 1999)

Philippines

IT Action Agenda for the 21st Century, National Information Technology Council, Manila, October 1997

<http://www.neda.gov.ph/IT21/IT21txt.htm> (15 January 1999)

National Information Technology Plan 2000 (NITP2000): Executive Summary

<http://www.dlsu.edu.ph/pinas/st/nitp.html> (9 February 1999)

Republic of Korea

Korea's Vision for the Information Society, Ministry of Information and Communication

<http://sp05a.etri.re.kr:8080/e_home/topics/1217-01.html> (15 January 1999)

Information and Communications Policy Statement for the Realization of an Information Society, MIC Official Gazette

<http://sp05a.etri.re.kr:8080/e_home/policy_frm.html> (15 January 1999)

Information and Communications in the Republic of Korea, 1998 White Paper, Ministry of Information and Communication, May 1998

<http://sp05a.etri.re.kr:8080/e_home/white.html> (15 January 1999)

Singapore

IT2000 Masterplan, National Computer Board:

A Vision of an Intelligent Island

Transforming Singapore into an Intelligent Island

National IT Committee

<http://www.ncb.gov.sg/ncb/it2000.asp> (8 February 1999)

Singapore ONE (One Network for Everyone)

<http://www.s-one.gov.sg> (8 February 1999)

Electronic Commerce Hotbed

<http://www.ech.ncb.gov.sg> (8 February 1999)

Thailand

Social Equity and Prosperity: Thailand IT Policy into the 21st century (IT2000), National Information Technology Committee, 1995

<http://www.nitc.go.th/it-2000/full.en.html> (8 February 1999)

Thailand: The Big Picture, National Electronics and Computer Technology Centre

<http://www.nectec.or.th> (15 February 1999)

___________________________

^a For a detailed description of the existing system, see Chairman's report for the Seventh ITU Regulatory Colloquium: Transforming Economic Relationships in International Telecommunications, 3-5 December 1997, Geneva, available at <http://www.itu.int/wtpf/trade/reg_coll/7TH/> (8 February 1999).

^b New modes of operation include resale; refile, hubbing or re-origination; international alliances of telecommunications operators; the extension of foreign operators' networks into the destination countries to points of presence that they establish there; and Internet telephony.

^c See for instance, the report on the Seminar on the Application of Information Technology in National Statistical Offices, (STAT/ITNSO/Rep.), held at Taejon from 15 to 18 December 1998.