INTER-AMERICAN DEVELOPMENT BANK

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1 INFORMATION AND COMMUNICATION TECHNOLOGY FOR DEVELOPMENT DIVISION (SDS/ICT) Danilo Piaggesi, Division Chief

2 GLOBAL ALLIANCE FOR ICT AND DEVELOPMENT INAUGURAL MEETING EMPOWERING THE MAJORITY THROUGH INFORMATION AND COMMUNICATION TECHNOLOGY AND DIGITAL DIVIDENDS: A STRATEGIC PERSPECTIVE OF THE INTER-AMERICAN DEVELOPMENT BANK Kuala Lumpur, Malaysia June 20, 2006 INFORMATION AND COMMUNICATION TECHNOLOGY FOR DEVELOPMENT DIVISION 2

3 ICT PENETRATION IN THE LATIN AMERICAN AND CARIBBEAN REGION IN 2004 LAC USA EU OECD 1. Fixed Lines per 100 inhabitants Cellular Subscribers per 100 inhabitants PCs per 100 inhabitants Internet Penetration (users per 100 inhabitants) INFORMATION AND COMMUNICATION TECHNOLOGY FOR DEVELOPMENT DIVISION 3

4 ICT PENETRATION IN LATIN AMERICAN AND THE CARIBBEAN PERCENTAGE CHANGE LAC USA EU OECD 1. Fixed Lines per 100 inhabitants Cellular Subscribers per 100 inhabitants PCs per 100 inhabitants Internet Penetration (users per 100 inhabitants) INFORMATION AND COMMUNICATION TECHNOLOGY FOR DEVELOPMENT DIVISION 4

5 EVOLUTION OF ICT PENETRATION IN LATIN AMERICA AND THE CARIBBEAN AND HIGH-GROWTH ASIAN COUNTRIES LAC Asia Penetration of ICT in Latin America and the Caribbean Penetration of ICT in HPAE Fixed Mobile PC Internet Fixed Mobile PC Internet INFORMATION AND COMMUNICATION TECHNOLOGY FOR DEVELOPMENT DIVISION 5

6 FACTORS THAT HAVE TRADITIONALLY HINDERED THE WIDESPREAD DEPLOYMENT OF ICT IN LATIN AMERICA AND THE CARIBBEAN Weaknesses in institutional capacity: (a) lack of investment plans with medium and long term perspectives (i.e. of e- strategies); (b) lack of effective coordination between public and private sector; (c) limited investment resources; and (d) legislative and normative gaps Limited connectivity and high access costs: (a) concentration of coverage in urban centers with neglect to rural/marginal areas; (b) price-ability to pay gaps; and (c) barriers to deregulation Deficient digital education and limited of content of local interest: (a) limited technical skills in the use of ICT; (b) lack of formal digital literacy programs; and (c) incentives structure INFORMATION AND COMMUNICATION TECHNOLOGY FOR DEVELOPMENT DIVISION 6

7 STRATEGIC AREAS OF THE BANK S NEW ICT FOR DEVELOPMENT STRATEGY Creation of an environment that fosters the dissemination and use of ICT ICT in support of the modernization of the state ICT in support of competitiveness ICT in support of social development and poverty reduction ICT in support of regional integration ICT in environmental and natural resources management INFORMATION AND COMMUNICATION TECHNOLOGY FOR DEVELOPMENT DIVISION 7

8 A BANK REALIGNAMENT STRATEGY IN THE KNOWLEDGE ECONOMY To consolidate a more inclusive, broad-based economic growth model focused on wealth creation and progress opportunities for the majority of the Region s population. Includes four core areas: Connecting the majority: Development of social infrastructure and connectivity Financial democracy: Broadening access to banking services and increasing their use, leveraging the impact of remittances, and creating new saving, credit and insurance products for lower income population segments Enterprise compact: Job creation, support for microenterprises and small and medium-sized businesses Enabling environment: Establishment of the necessary regulatory frameworks, titling and other legal instruments INFORMATION AND COMMUNICATION TECHNOLOGY FOR DEVELOPMENT DIVISION 8

9 CONNECTING THE MAJORITY: ENHANCING DEVELOPMENT OPPORTUNITIES FOR ALL THROUGH ICT ICT solutions can facilitate the participation of lower income populations in the development process of the Region by directly tackling relevant aspects, which precisely hinder their integration to social and economic development. In particular: limited knowledge and literacy which impairs access to skills and jobs (education) poor health and sanitary conditions limiting employability and risk-taking attitudes (health) active involvement in civic life and strengthening of democratic process economic opportunities INFORMATION AND COMMUNICATION TECHNOLOGY FOR DEVELOPMENT DIVISION 9

10 DEPLOYMENT OF BEST PRACTICES IN ICT: A FORWARD- LOOKING SCENARIO AND BANK-LED SUPPORT TO THE REGION TOWARDS 2015 Human capital development and education: attainment of near universal access to the Internet in the Region s schools extension of wireless networks and connectivity solutions to low-income and rural locations expansion of locally developed curricula efficient access to inexpensive technologies from pilot initiatives expansion of earmarked computer literacy programs deployment of complementary energy and connectivity sources with marked impact on education cont. INFORMATION AND COMMUNICATION TECHNOLOGY FOR DEVELOPMENT DIVISION 10

11 DEPLOYMENT OF BEST PRACTICES IN ICT: A FORWARD- LOOKING SCENARIO AND BANK-LED SUPPORT TO THE REGION TOWARDS 2015 CONT. Health and social services: overall improvement in the distribution of healthcare services through extended connectivity and wireless solutions attainment of real-time monitoring of diseases, rapid response to disasters and health emergencies overall improvement in the management and operational efficiency of the health care system including that of national health networks operation of cost effective digital-telemedicine networks enhanced training cont. INFORMATION AND COMMUNICATION TECHNOLOGY FOR DEVELOPMENT DIVISION 11

12 DEPLOYMENT OF BEST PRACTICES IN ICT: A FORWARD- LOOKING SCENARIO AND BANK-LED SUPPORT TO THE REGION TOWARDS 2015 CONT. Financial services and remittances: extension of modern financial services including credit to lower-income segments of the population cheaper and faster means of remittances from abroad and reduction of fixed costs of smaller financial transactions accelerated modernization and capitalization of the microcredit financial system, and resulting mobilization of credit resources and modern financial services greater personal and transactional safety democratization of credit for lower-income populations and small and medium-sized enterprises (SMEs) cont. INFORMATION AND COMMUNICATION TECHNOLOGY FOR DEVELOPMENT DIVISION 12

13 DEPLOYMENT OF BEST PRACTICES IN ICT: A FORWARD- LOOKING SCENARIO AND BANK-LED SUPPORT TO THE REGION TOWARDS 2015 CONT. Complementary ICT-based government services and actions: public sector-supported extension of connectivity and wireless connections to schools, healthcare facilities, and local governments, especially in rural/underserved areas expansion of the reach and impact of social public services extension of electronic government solutions to, among others, identification services, land titling and registration, agricultural extension, and disaster management set the stage for private sector innovation, investment and ICT-based interventions in both, traditional and nontraditional areas (including social development and poverty reduction INFORMATION AND COMMUNICATION TECHNOLOGY FOR DEVELOPMENT DIVISION 13

14 THE STRATEGY: PROMOTING A MULTI-STAKEHOLDER APPROACH TOWARDS DIGITAL INCLUSION FOR ALL Strengthening the role of the public sector in the implementation of ICT-based programs aimed at enhancing the reach and impact of social development, poverty reduction and citizen participation programs Implementing organizational arrangements to facilitate the participation of civil society organizations in the promotion and implementation of community-based development programs, including social and poverty-targeted actions at the local level Promoting the participation of the technology-based private sector in the development of the Region as a pivotal source of innovation in social development, job creation, income opportunities and wealth generation INFORMATION AND COMMUNICATION TECHNOLOGY FOR DEVELOPMENT DIVISION 14

15 DIGITAL INCLUSION: A PUBLIC-PRIVATE PARTNERSHIP IN ICT FOR DEVELOPMENT Promoting the participation of the private sector through ICT and connectivity investments and technical assistance in priority social sectors in the Region Creating value-added opportunities and the expansion of ICTbased social and financial services to underserved communities Tapping the profit potential that can be realized from efforts aimed at improving the social and economic conditions of the poor (under a blended strategy ) Embracing an environment which promotes a collaborative development process, while allowing for private sector participation in social development and poverty reduction through ICT, under a corporate social responsibility umbrella INFORMATION AND COMMUNICATION TECHNOLOGY FOR DEVELOPMENT DIVISION 15

16 PUBLIC-PRIVATE PARTNERSHIPS IN ICT FOR DEVELOPMENT: CONCRETE ACTIONS OF THE BANK Design and implementation of the institutional, financial and legal means for the Bank to effectively partner with leading private sector firms and civil society institutions from the member countries in the design and implementation of ICTbased development actions Establishment of a Facility in Information and Communication Technology for Development to leverage the available nonreimbursable cash and in-kind resources for the design and implementation of state-of-the-art technologies as part of the development technical cooperation projects in the Region Enabling an environment for the generation of best practices and models, and the dissemination of lessons learned in ICT INFORMATION AND COMMUNICATION TECHNOLOGY FOR DEVELOPMENT DIVISION 16

17 PUBLIC-PRIVATE PARTNERSHIPS IN ICT FOR DEVELOPMENT: MEMORANDUM OF UNDERSTANDING BETWEEN THE INTER-AMERICAN DEVELOPMENT BANK AND MICROSOFT CORPORATION Signed on June 1, 2006 Part of the overall framework of the Facility in Information and Communication Technology for Development Strategic areas of collaboration include: electronic government; ICT security for the public sector; science and technology capacity building; education; remittances and microfinance; and youth, technology and social inclusion Initial contribution of US$1.2 million to the Youth Development Program for Innovation and Social Action INFORMATION AND COMMUNICATION TECHNOLOGY FOR DEVELOPMENT DIVISION 17

18 INFORMATION AND COMMUNICATION TECHNOLOGY FOR DEVELOPMENT DIVISION 18

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