Digital Divide, ICT, Development, Stratification, Empowerment, Capacity and Capability

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1 UNDERSTANDING THE DIGITAL DIVIDE: Stratification and Empowerment in the Kingdom of Tonga Fonongava inga Mangisi Keio University Japan ABSTRACT Affordable access to Information and Communication Technologies (ICTs) has conventionally been synonymous with use. However, the discrepancy between not just rich and poor, but knowledge and ignorance and other factors of social stratification among and within countries, have also been pertinent in perpetuating and exacerbating the digital divide. While there is growing scholarship and optimism in ICT s role in the development of countries and communities, there is less on analyzing a country s capacity and capability to optimize the benefits of this technology from a bottom-top approach particularly in developing and least developing countries (DCs and LDCs). ICTs- particularly the Internet, is not well understood, and often misunderstood, in the developing regions of the Pacific. It has, therefore, in cases been a huge drain on the public purse with varied success against development planning. For most LDCs and DCs the problem is access or use, or both depending on the technology. With as low as around 1 per cent internet penetration rate (Pakistan, Bangladesh, Sri Lanka, Nepal, Laos, Tonga) 1 it is perhaps not surprising that services like e-governance, e-commerce, and e-learning is not a priority on their development agendas. Underlying these issues of limited Internet access are even more basic issues relating to the perceived need and potential benefits of this technology to rural and remote communities at a national and local level. KEYWORDS Digital Divide, ICT, Development, Stratification, Empowerment, Capacity and Capability 1. INTRODUCTION: WHY IS THE DIGITAL DIVIDE A CONCERN? The term digital divide was born in the 1990s when the internet made its commercial debut. The concept however was a result of decades of scholarship speculating a third era of development- the information age. The global dominance of countries like Japan, the United States, and Great Britain during the first and second industrial revolutions set the bar for international competition. Post-World War II conditions 2, rather than stunting Japan s growth capacity, created a platform among these powers to engage in the techno-arms race. Since the 1960s much scholarship was devoted to the newly emerging Post-Industrial and Information Societies. Page 1 of 11

2 Academics and Practitioners have analyzed and marked the increased employment figures towards service-oriented and information-related jobs; increases in telecommunication and media penetration, publication and investment; the increase in manufacturing information and communication equipment; the comparative advantage of businesses using state-of-the-art technology, making governments realign their macro-policies to be inclusive of ICT for development. The World Summit on the Information Society (WSIS) 3 in 2005 reiterated the need for countries to find common solutions towards initiatives like e-governance. ICT has also been hailed by proponentsthe United Nations and its affiliated agencies, and the International Telecommunications Union and the World Economic Forum as a tool in catalyzing development and poverty reduction. While there is empirical data that concurs with the former, the latter is a gray area that needs more conceptual clarification and practical implementation. One of the prominent features of countries like Japan, Korea, and Singapore is that they have laid out the foundation for ICT development since the 1970s, well before other countries in Asia 4 and the South Pacific. The development model shows similar stages in light industry, assembled and export manufacturing before encroaching on ICT as an industry 5. The early recognition of the knowledge-emergent society was featured in Japanese government policy highlighting informatization or johoka since the 1970s and deregulating telecom services spurring growth in ADSL technologies Korea by the end of the 1980s had achieved a high level of universal service Korea s and today has one of the highest broadband penetration levels partially accredited to government subsidy and promotion activities; Singapore in 1981 introduced the Civil Service Computerization Program to train all public employees in the use of IT 6 advancing to high penetration levels due partly to the ease of wiring a small island, with a highly concentrated and economically well-off population. The overall success of their exceptional ICT development was the implementation and streamlining of coherent designed 7 ICT and Telecommunication Policies to intergrated Master Plans guiding their investments. Japan Korea Singapore GNI per capita, 35,990 9,400 24,740 US$, 2001 Land Area ( km sq) Total Population 127,370 47,676 4,131 ( 000s) Urban % Literacy School enrollment FIGURE 1: SOCIAL AND DEMOGRAPHIC INDICATORS SOURCE: APRIL, 2003; ITU PUBLICATION. Page 2 of 11

3 Small island developing states on the other hand, and in this case Pacific Island Countries, are characterized by small, vulnerable economies between low to uppermiddle income (dependent on migration, remittances, and aid); bloated public service with high administration costs; high emigration rates of skilled people; geographical isolation and fragmentation from industrial and regional centres; high transportation cost; and a heavy dependence on tourism for revenue. These factors plus the pressures of globalization and the new demands of accessing world markets are forcing these countries rather than to customize policy frameworks and strategic initiatives, to adopt the technology first and then figure out the rest, like buying the shoe before measuring the foot. The domino effect of techno-colonization has pushed countries in the lower brackets of the income strata to contributing almost half of the total Telecommunications investments reported in FIGURE 2: TELECOMMUNICATION INVESTMENT BY INCOME GROUP IN 1998 AND 2002 SOURCE: WORLD ICT VISUAL DATA BOOK: BRIDGING THE DIGITAL DIVIDE. ITU JAPAN 2. THE DEBATE: WHO BENEFITS? Based on the investment figures above, some pertinent questions call for some serious consideration. How urgent is bridging the divide for lower income countries? Who should remedy the situation? And who will ultimately benefit from this new arrangement? These answers are not easy to come by as the benefits in practical and sustainable terms in the poorer countries seem quite aloof. Although the internet uptake in LDCs and DCs have been laggard, other ICT Indicators have shown much more promising figures. Fixed telephones by the global scale have increased by around 33 percent between 1998 and 2003, putting the total number at 1146 million, 45.7 per cent of the total of telephones in the world. The numbers are almost shared equally among the regions of Asia and Oceania, Europe, and North and South America. By income group, however, almost 50 per cent of telephones are in high income countries. Mobile telephone density in Asia has increased from over 20 percent (20.3%) to almost 37 percent (36.7%) 8 between 1998 and 2003, low-income countries in particular increasing almost 20 times 9 while representing only 5.4 per cent of the world. Television penetration is also on the rise particularly in the low and lower middle income bracket 10. Page 3 of 11

4 The Internet, however, is far more complex and costly to maintain then any of the above technologies. The benefits too, seen in much of the thriving ICT countries in the world, should not be taken as given. 2.1 TECHNO-DEPENDENCY The theory of dependency 11 and the centre-periphery relationships between 12 IntelSat/Microsoft 13 and lower income countries that are adopting ICT for Development frameworks and initiatives highlights some notable issues. According to Furtado (1963), the centre-periphery relationship is not just unequal sharing of development benefits, but also the transplantation of Western consumption patterns while transnational corporations control access to modern technology. 14 The rapid development of software and hardware usher in the problems of upgrading and compatibility and exert extra strain on the budgets of lower income countries that have other more pressing needs not to mention human resource development. In cases, the poorer countries have been a dumping ground for unreliable technology not attractive to developed countries, like Tonga s Tropo-scatter System CASE STUDY: POLICY AND INITIATIVES IN THE KINGDOM OF TONGA Tonga is a constitutional monarchy located East of Australia, and Northeast of New Zealand with a total land area of 699 sqkm spreading over 700,000 sqkm of territorial sea. Tonga s immediate neighbours are Samoa in the South and Fiji in the Southeast. An Archipelago of 171 islands, only 36 are inhabited with the majority of the population residing on the main island of Tongatapu. The population of Tonga was estimated at 105,600 in 1995, with a growth rate of 0.78 per cent 16. The population is highly homogenous with 96 per cent being indigenous Tongans, with a majority of 69 per cent of the total population residing on the main island. The remaining 4 per cent include part-tongan and non-tongans 17. The Tongan economy is primarily based on agriculture, manufacturing (small and cottage industries). Agricultural and fisheries products comprise over 90 percent of exports and over 40 per cent of GDP. There is a large cottage industry for the manufacture of handicrafts. A push in recent years to create a light industrial sector has led to the establishment of several ventures. Tonga, like other Pacific Islands face many challenges in developing their economies. Some of the common obstacles mentioned earlier in this paper, plus a scarce resource base, small domestic markets, vulnerability to natural disasters, and high susceptibility to global market makes economic tendency critical towards remittances and dependent on foreign aid, which has accounted for TOP$53.5 million, three times more than receipts from exports 18. Life Expectancy 72.2 Adult Literacy (%) 98.9 Gross Enrollment (%) 83 GDP per capita USD$ (ppp) 6992 FIGURE 3: TONGA S HUMAN DEVELOPMENT INDICATORS SOURCE: UNDP HUMAN DEVELOPMENT REPORT Page 4 of 11

5 Oceania Small Island Developing States Lower Middle Income Countries 3 Australia 30 Barbados 46 Uruguay 19 New 51 Seychelles 54 Tonga Zealand 54 Tonga 54 Tonga 63 Brazil 74 Samoa 64 Mauritius 73 Thailand 92 Fiji 96 Maldives 95 Dominican Republic 137 PNG 105 Cape Verde 99 Iran FIGURE 4: TONGA S HUMAN DEVELOPMENT RANKING BY GROUP SOURCE: UNDP HUMAN DEVELOPMENT REPORT REGIONAL CO-ORDINATION AND TONGA S COMMUNICATION POLICY Tonga is a one of sixteen member states of the Pacific Island Forum (PIF) 20. In 2004, PIF member states signed the Auckland Declaration, which spawned regional development initiatives under the Pacific Plan 21. One such initiative is the Digital Strategy, an integral part of the Pacific Plan which involves commitments from all parties and its implementation requires endorsement with a regional approach. To meet these objectives and realize the potential of ICTs in the Pacific, the Regional Digital Strategy is based on three Pillars: the first of which emphasizes the commitment at the country level. Towards that end, the Tonga government adopted a set of underlying policy principles in its Communication Policy statement to achieve expanded connectivity, quality of service, affordability, and access to new service applications. These principles were divided into four parts: a. Nurturing a sustainable and financially viable communications sector; b. Maximizing infrastructure availability; c. Support new industry investment and attraction; d. And maximizing strategic and economic benefits from communication assets. The policy framework initiatives comprise of central elements, which include: - Establishing the Tonga Communications Corporation (TCC in 2000) as an integrated provider of network infrastructure and communications services Ownership and structure of TCC that reflects majority Government control, and establishing the Tongan Participation Scheme under which all overseas and local Tongan s may participate in the ownership of up to 10 per cent of the issued shares in TCC. Page 5 of 11

6 - Introduction of competition through the licensing of a second full service provider Creating and adequately resourcing the Department of Communications to undertake all the regulatory tasks concerning Tonga s telecommunications and broadcasting sectors. - Realigning Tonga s existing legislation and regulatory framework in order to facilitate and implement these initiatives 24. FIGURE 5: THE INSTITUTIONAL FRAMEWORK SOURCE: DEPARTMENT OF COMMUNICATION, TONGA The expiration of the Cable and Wireless plc Franchise Agreement in June 2000 and the enactment of the Communications Act 2000 marked the beginning of Tonga s telecommunication restructuring. The Tonga government signed the first 10-year Franchise Agreement in 1978 when C&W serviced Tonga internationally by connecting the Kingdom to its satellite network. The Government s Tonga Telecommunications Commission (TTC) operated domestic services. During the 1980s Tonga s interests expanded to registering satellite orbital slots, leading to the establishment of a private satellite marketing company Friendly Islands Satellite Communications (TongaSat) in At this time another 13-year extension Page 6 of 11

7 with C&W was signed to maintain satellite communications with the outer island groups of Ha apai and Vava u because the Tropo-Scatter system in place at the time was very problematic. The expiration of the Agreement was the turning point in the initial telecommunication reform process. Government then purchased all assets from TTC, resumed the international service from C&W and created the public enterprise Tonga Communications Corporation in February Government welcomed competition within the telecom industry with the application of a telecom operator s license by the then Crown Prince of Tonga His Royal Highness Tupouto a in His company TonFon introduced a wireless high-speed digital network offering mobile, internet, and television. It was the vision of Government that the liberalization of the telecom industry was in line with Government s Strategic Development Plan 7 ( ) stating Information Technology will be used to ensure that the right information is available at the right time to the right person for the least cost. 3.2 TOWARDS E-GOVERNMENT: TONGA S GOTNET SYSTEM In 1998, Government embarked on the Government of Tonga Network (GoTNet), an intranet project worth several million dollars. A Government Computer Committee was established to develop and monitor the new system- the development of a high capacity wide area network (WAN) linking government departments in the capital Nuku alofa. The set-up headed by the Ministry of Finance was to provide appropriate ICT infrastructure for online application services (Micropay and SunSystem); online network services ( , web browsing, chat, and video conferencing); better security control and performance monitoring; sharing of resources while complying with regional and national ICT development. What effectively ensued were a computerized government voucher and wage system and a Government Internet Portal. The failure in optimizing the functionality of GoTNet is an example of buying the shoe before measuring the foot. The concern with infrastructure alone meant that capacity outweighed capability exposing a lack of policy and planning. 3.3 LIFE IN THE VILLAGE In a household survey conducted in August this year, I found that the poorer members of the community spend up to per cent of their wages per week (USD$ ) on commutation to city centres to sell handicraft and crops, pay monthly utility bills, and shopping. Those who earned more averaged percent on commutation as they drove cars rather than took buses. Radio and Television were more prominent in households as opposed to fixed telephone, although many had mobile phones. Internet dial up services are available, but the quality of connection will have you waiting minutes before connecting and then disconnecting because of voice traffic. To the villagers and their lifestyles, they do not have the impetus to learn how to use it, and as far as those surveyed are concerned, they don t see the need. Page 7 of 11

8 4. STRATIFICATION AND EMPOWERMENT Stratification by definition is the presence of acknowledged grades in social status, political influence, and economic capability among the people within a society. Human diversification 25 has insisted that ICT development frameworks be tailored to countryspecific needs, although inadequate understanding, planning and policy-making have made this difficult and costly in poorer countries. So how do you empower people to engage in learning processes in which they create, appropriate and share knowledge, tools and techniques in order to change and improve the quality of their own lives and societies? 26 There are several ways. 1. Capacity-building and human resource development 2. Engaging and consulting with key stakeholders in developing policy and strategic initiatives rather than government and donor-driven 3. Creating an Independent regulatory body 4. Encouraging local government participation 5. Data collection and Statistical Analysis 5. DEVELOPMENT POLICIES: ISSUES AND IMPLICATIONS Many government owned Telecommunication companies have benefited from the differentials of calls to and from the country. These governments often play the role of shareholder rather than regulator and policy-maker. What happens then is that the industry soon becomes another taxation department, with very little impetus is reinvest revenues in expanding/upgrading services. Most LDCs and DCs have a general idea about how they could use or expand the use of ICT in their organizations. However designing and customizing policy to be inclusive of all strata of society, developing human resources, coordination of task groups, followups, and developing viable and sustainable strategies have proven to be deficient, if not extremely difficult in national planning. Government commitment and pro-action towards embarking on ICT development initiatives is a must and a first step, but certainly not the last. Poorer countries impressionable attitudes toward economic and social development through technology have been in some cases at their greater expense. In that light, cost/benefit ratios should be anticipated, while funding arrangements, and sustainability assessments not be overlooked. Poorer countries have much more to lose, and therefore must be extra careful in assessing the potential benefits of ICT to their societies and economies. On the other hand proponents of the technology should also pay more attention to how they market its potentials. ICT afterall is not the end, but only a means to an end. Page 8 of 11

9 REFERENCES Arndt, H. W. (1987). Economic Development: The History of an Idea. University of Chicago Press: Chicago and London Baran, P. (1957) The Political Economy of Growth. Monthly Review Press: New York; Penguin: New York, 1973) Broadband Korea: Internet Case Study 2003, ITU publication Fonua, P. (June 2001). Wiring-up Nuku alofa. Matangi Tonga News Magazine. p Furtado, C. (1963). The Economic Growth of Brazil. University of California Press: Berkley Gilpin, R. (2001). Global Political Economy: Understanding the International Economic Order. Princeton University Press: New Jersey Gigler, B-S. (Sept, 2004) Including the Excluded: Can ICT empower poor communities. Paper for 4 th International Conference on the Capability Approach: University of Pavia, Italy. Hundley, R.O., Anderson, R.H., Bikson, T.K., Neu, R.C. (2003). The Global Course of the Information Revolution: Recurring themes and Regional Variations. RAND Publications: Santa Monica ITU World Telecommunication Indicators Database 2004 Lallana, E.C. (2004). An Overview of ICT Policies and e-strategies of select Asian economies. UNDP Publication: Bankok. See Murelli, E. (2002). Breaking the Digital Divide: Implications for Developing Countries. Commonwealth Secretariat and SFI Publishing. Tonga Communication Policy Statement, Department of Communications: Tonga UNDP Human Development Report Wade, H. W. (2004). Bridging the digital divide: new route to development or new form of dependency. p The Social Study of Information and Communication Technology: Innovations, Actors, and Contexts. Oxford University Press. World ICT Visual Data Book: Bridging the Digital Divide. ITU Japan: Tokyo 1 World ICT Visual Data Book: Bridging the Digital Divide. ITU Japan: Tokyo Page 9 of 11

10 2 Conditions of limited natural resources, limited capital, and limited domestic demand set the stage for low-capital, light industry export manufacturing. Hundley, R.O., Anderson, R.H., Bikson, T.K., Neu, R.C. (2003). The Global Course of the Information Revolution: Recurring themes and Regional Variations. RAND Publications: Santa Monica 3 World Summit on the Information Society was held in Geneva 10 to 12 December 2003, and Tunis 16 to 18 November A two-phase Summit to create political will towards establishing the foundations of an Information Society and to move forward on the Geneva Plan of Action. 4 See 5 Hundley, R.O., Anderson, R.H., Bikson, T.K., Neu, R.C. (2003). The Global Course of the Information Revolution: Recurring themes and Regional Variations. RAND Publications: Santa Monica 6 Broadband Korea: Internet Case Study 2003, ITU publication 7 Lallana, E.C. (2004). An Overview of ICT Policies and e-strategies of select Asian economies. UNDP Publication: Bankok. See 8 ITU World Telecommunication Indicators Database Global figures increase 4.3 times between 1998 and Lower middle income and low income countries have a 55.6 per cent share of TV set distribution in the world. 11 Furtado, C. (1963). The Economic Growth of Brazil. University of California Press: Berkley 12 Baran, P. (1957) The Political Economy of Growth. Monthly Review Press: New York; Penguin: New York, 1973) 13 Wade p Arndt, H.W. 15 A tropo-scatter microwave system is similar to those of the line-of- sight system, which can be problematic with the interference of vegetation 16 Statistics gather from the Tonga Visitors Bureau. See 17 Non-Tongans refer to expatriates and their families. 18 National Reserve Bank of Tonga, BOP 1995/ UNDP Human Development Report See 21 This document was endorsed by Leaders at the Pacific Islands Forum meeting in October It is the result of work undertaken by the Pacific Plan Task Force with oversight by the Core Group of Leaders. It captures broad-based feedback received from Member countries, non-state bodies and other stake-holders. 22 TCC has assumed control of the assets and domestic operations of the Tonga Telecommunications Commission (TTC) and the activities associated with the expired international services franchise of Cable and Wireless. 23 This is considered as the first stage in a greater liberalization process, and that further new entrants maybe permitted, on a discretionary basis, should government view it as Page 10 of 11

11 in the national interest. 24 Communication Policy Statement, Department of Communications 25 Sen, A. ( 1999 ). Development as Freedom. Anchor Books: New York. 26 Unesco definitions. Page 11 of 11