Preface

Information and communication technology (ICT) has become an indispensable tool in the fight against world poverty. ICT provides developing nations with an unprecedented opportunity to meet vital development goals such as poverty reduction, basic healthcare and education far more effectively than before. Those nations that succeed in harnessing the potential of ICT can look forward to greatly expanded economic growth, dramatically improved human welfare and stronger forms of democratic government.

THE UNIQUE CHARACTERISTICS OF ICT

ICT can be a powerful enabler of development goals because its unique characteristics dramatically improve communication and the exchange of information to strengthen and create new economic and social networks:

• ICT is pervasive and cross-cutting. ICT can be applied to the full range of human activity from personal use to business and government. It is multifunctional and flexible, allowing for tailored solutions—based on personalization and localization—to meet diverse needs.
• ICT is a key enabler in the creation of networks and thus allows those with access to benefit from exponentially increasing returns as usage increases (i.e. network externalities).
• ICT fosters the dissemination of information and knowledge by separating content from its physical location. This flow of information is largely impervious to geographic boundaries—allowing remote communities to become integrated into global networks and making information, knowledge and culture accessible, in theory, to anyone.
• The “digital” and “virtual” nature of many ICT products and services allows for zero or declining marginal costs. Replication of content is virtually free regardless of its volume, and marginal costs for distribution and communication are near zero. As a result, ICT can radically reduce transaction costs.
• ICT’s power to store, retrieve, sort, filter, distribute and share information seamlessly can lead to substantial efficiency gains in production, distribution and markets. ICT streamlines supply and production chains and makes many business processes and transactions leaner and more effective.
• The increase in efficiency and subsequent reduction of costs brought about by ICT is leading to the creation of new products, services and distribution channels within traditional industries, as well as innovative business models and whole new industries. Intangible assets like intellectual capital are increasingly becoming the key source of value. With the required initial investment being just a fraction of what was required in the more physical-asset intensive industrial economy, barriers to entry are significantly lowered, and competition increased.
• ICT facilitates disintermediation, as it makes it possible for users to acquire products and services directly from the original provider, reducing the need for intermediaries. This cannot only be a considerable source of efficiency, but has in fact been one of the factors leading to the creation of so-called “markets of one,” leveraging ICT’s potential to cater to the needs or preferences of users and consumers on an individual basis.
• ICT is global. Through the creation and expansion of networks, ICT can transcend cultural and linguistic barriers by providing individuals and groups the ability to live and work anywhere, allowing local communities to become part of the global network economy without regard to nationality, and challenging current policy, legal and regulatory structures within and between nations.

These characteristics suggest that ICT have the potential, if conceived as a means and not an end in itself, to be a powerful enabler of development. However, the fact that ICT can, in theory, assist development efforts does not mean that it will necessarily do so. In order for ICT to positively foster development goals, it must be employed effectively.

* from: Creating a Development Dynamic: Final Report of the Digital Opportunity Initiative, Accenture, Markle Foundation, UNDP, July 2001

OBJECTIVE

The manuals shall provide guidelines for countries to improve or optimize its e-readiness. Self-assessment of e-readiness is provided on separate document as a framework to determine the level of each country. Various factors were taken into account in this self-assessment. Some of these factors were later becoming key factors, which need to be considered in improving e-readiness. Some were prerequisites and played crucial role, as they had to be available even for the initial level.

STRUCTURE OF DOCUMENT

The prerequisites for each level were discussed first. Later, upgrade path, stages of development and what to focus during improvement will be presented. Lastly, each key factor contributing toward development of ICT shall be identified and analyzed.

Prerequisite, Development stages and Key Factors

PREREQUISITE

These prerequisites are basic requirement to at even initial level of e-readiness. They have to be available before improvement can be made. However, it does not mean that these prerequisites are widely available in the countries. Imbalance of distribution is fact even in developed countries. Therefore these prerequisites need to be available at least on the institution which will become focal point for electronic linkage toward NAM-CSSTC. Each of them shall be discussed below.

Electricity

Basic electricity are necessary to provide power for the IT infrastructure. There are various ways to generate a stable power source of electricity. Depending on the policy of the countries, power plant can be utilize hydroelectric (which is popular and cheapest), geo thermal, fossil fuel (diesel, coal), wind energy, solar energy, or nuclear.

Distribution and reliability are another factors to be considered. Typically to improve these factors, IT infrastructures were equipped with UPS (un-interruptible power supply). The device provides protection against power line noises (surge and spikes) which could be harmful to sensitive electric and mechanic part of the system. UPS also smoothed ripples of voltages coming in from AC power lines. The actual advantage of UPS is graceful shutdown in case of power failure. It works by actually powering the IT system from batteries. The power line is used to charge the batteries and output of batteries is fed to an inverter to convert it to AC voltage again.

Computers

Of course the basic of all IT infrastructure are computers. Nowadays, PC or personal computer are ubiquitous and can provide almost all computing-power necessary for any requirement. Other more specialized computers are workstation, servers, mini computer and super computer. PC and these other type of computers are discussed further in separate document describing ICT system.

Internet Connection

Next step of computers is interconnection. Local interconnection can be achieved using LAN (local area network). Global interconnection requires Internet connection. Typically, this requires an ISP (Internet service provider) or connection to global backbone Internet. The latter are more costly and usually available to ISP or with subsidy to university or research institution.

Various types of Internet connection are available. The most common and slowest is dial up connection using telephone lines. It requires a simple dial up modem for computers to connect to Internet POP (point of presence). The charge for dial up is based on time of connection and volume of data.

Other type of connection is ‘always on’ type which mean the computer is continuously connected to Internet. The charges are usually flat rate on monthly basis. Some also counts volume of data as on top of basic charge. This type of connection includes leased line, cable modem, DSL, wireless broadband and satellite. Detail description of each access media is provided in separate document.

Software

The computer forms the part called hardware. It cannot function without the other part or software. The most important software is operating system (OS) which provides basic function of computer such as initial setup when it first powered on. Another function of OS is connecting peripheral such as monitor, keyboard, mouse, printer, etc. Popular OS now is Windows by Microsoft. Another open system OS that is popular lately is Linux, which has similarity with Unix.

Other software on top of OS and required for connection to Internet is browser. Typically, it combines function of surfing World Wide Web, email and newsreader. Newest browser also integrated with streaming video function. Netscape and Internet explorer are popular browser.

Web server is software, which runs to provide basis for homepage of World Wide Web. Popular one is IIS (Internet information system) by Microsoft or Apache the open system alternative. These software are discussed in details in separate document titled ICT system.

Human Resources

Obviously all of the infrastructure would mean nothing if the human resource side was not ready to utilize it. First and foremost is skill in using this ICT basic infrastructure such as computers. Effort has been made to ease human interface of computers of what so called ‘user friendly interface’ but so far operating a computers require training and adaptation as most of the command has to be issued with keyboard. Second is the cultural adaptation of society toward ICT infrastructure. Telephone as basic means of communication has been widely adopted. Computer literacy and adoption of it as means of communications are still in infancy even in developed countries. In USA there is a domain dedicated to bridge the gap of digital divide among its citizen particularly ethnic groups and minors.

FOCUS

There are four areas, which should fall within government attention particularly to develop e-readiness and country’s competitive position in global electronic linkage.

Firstly, welfare is everything. Without a proper per capita income, it is difficult for the public to adopt the Internet. True that Internet may help alleviate poverty and provide support toward development but basic public’s need for food, housing, health facilities and security are still priority. As illustrated above, even in developed country like USA, there is still gap in the society in adopting Internet, let alone in developing countries.

Second, connectivity is the goal. Penetration is still considered as critical factors in Internet revolution. Disparity of telecommunication services between rural and urban areas are fact, thus he provision of telecommunication infrastructure become a major factor here. Creative alternatives to provide access in cost-effective ways are available by utilizing advanced in technology.

Third, competition is the engine. Various examples have proven that competition promotes greater investment, lower prices, stimulate growth in subscribers as well as technology innovation. Therefore regulation which are becoming barrier to competition must be wisely and gradually eliminated.

Last factor is education, which becomes enabler. As always-human resource skill are important to maximize use of Internet. Unlike telephone, Internet present higher social barrier as it requires literacy and IT knowledge as a minimum. Therefore to prevent exclusion even if the infrastructure is in place, education to the people is important either formal or informal.

STAGES OF DEVELOPMENT

The following is typical stage of development for e-readiness and actually also shown adoption level of Internet in the society. Note that, however there are no clear and distinct boundaries among each level. Rather, an overlap and gradual migration is actually what is happening. Therefore a countries might well in the all stages of development at various location in the country itself.

Searching and publishing information

Internet was initially meant to provide alternatives to collaboration among scientist and researcher. They were ranges from simple text messaging to more elaborate peer review and joint authoring, which involved complex and inter-linked document. In the adoption by the society, this heritage is still valid and mostly the first use of Internet is searching and publishing information. At this level, there should be a coherent vision by the government to support and later guided the development toward another level.

Communication at this level are indirect and mostly one ways. Small feedback or e-mail contact is typical but these are not interactive communication. There might be some creative person pushing the boundaries by providing some kind of chat facilities using text messaging.

Intranet

At this level, collaboration within an organization is done using the intranet. Organization is not limited to government institution but includes also business entities. Intranet allows data to be gathered, processed and shared in new form therefore ensuring efficiency. Although part of the process is sometimes handled offline, the implementation of intranet are improving the quality and efficiencies of the overall process. Apart from the speed factor, intranet also guarantees transparency as everything runs on online basis so concerned parties can monitor the progress directly.

Extranet

This is the most advanced state whereby services and process are conducted online. Almost all of the information and data are exchanged over the cyberspace. Only physical goods, which can not be transported over Internet, are delivered offline. It also the most interesting as it open up a limitless opportunity to explore the usage of Internet and electronic linkage. In fact, at this level electronic community can span a global reach beyond time and geographical limitation.

KEY FACTORS

We have identified the following key factors, which is essential in effort to improve e-readiness and ICT development in the countries. They are grouped in four categories below:

1. Infrastructure and connectivity

This part will discuss improvement of prerequisite infrastructure of ICT namely telecommunication and information technology. Later, connectivity as a goal mean that increase the penetration of infrastructure is important. This would translate into improving availability of telecomm and IT through various creative and unique ways.

2. Financial assistance and business or private entity participation

Obviously funding availability shall play major role in any development effort. Therefore this part will discuss the subject. Next, participation of business and private entities is another alternative to funding the project. However, there should be clear incentive to stimulate participation from these parties. Some illustrations of the project conducted in various countries with participation from business sector are provided in this section.

3. Regulation, law and applicable IPR (intellectual property rights)

Government influences and directs the effort of a nation through law and regulation, which is under their control. Similarly in ICT, law and regulation, which is conducive toward advancement, need to be identified and enacted. In the mean time regulation and law which inhibit ICT must be gradually and wisely eliminated. Another subject, which has been proven to be important, is intellectual property right (IPR) which would later spur research and development (R&D) activities.

4. Human resources, education and public opinion building

Last but not least is the human resource aspect. Education is closely related in improving human resource skill and knowledge. Other important aspect is how to disseminate information and bring participation from whole society. Therefore effort for public opinion building is also discussed.

Infrastructure and connectivity

INFRASTRUCTURE

Current advanced and modern ICT has enabled innumerable global-flows in information, products, people, business opportunity, capital and ideas, which offer great potential for radical improvements both in human development and environments. Since ICT can be a powerful tool for development nowadays, the readiness of ICT infrastructure plays a very critical role in delivering the development program into national goals. Its extensive characteristics allow ICT to be the most useful tools among others development imperatives for enhancing and speeding up a society development among huge disparities in the quality of human livings among countries. Several countries have already put the ICT-infrastructure-program bigger role to contribute a great deal to their development goals. Moreover, ICT infrastructure can be useful at both the micro and national level, such as allowing the effectiveness and reach of development interventions, enhancing good governance, and providing business opportunity for the private sectors.

ICT is already being used highly effectively to directly address development goals. In Gambia, for example, it is being used to achieve better health outcomes. In Chile, it is starting to reap significant results in primary school education. In Bangladesh, it has led to the creation of direct employment for thousands of local women and men, while in parts of India new Internet-enabled centers mean better access to different government services for remote communities. In Indonesia, too, ICT is enabling local citizens’ groups to monitor compliance with environmental standards. (Creating a Development Dynamic – Final Report of DOI  – July 2001)

Government of developing countries should learn from other country’s experience that ICT could provide a dramatic impact on achieving specific social and economic development goals, moreover, play a key role in broader national development strategies. They also have to take appropriate and effective strategies to improve ICT infrastructure into their national development goal. The strategies chosen should be realistic, flexible and sensitive to local conditions, and should be backed by strong public and private institutional support. Above all, there should be a strong commitment to local participation and the fulfillment of local needs, and last but not least, government express political will as clear as possible.

A framework proposed by the DOI, suggest that the government should consider several keypoints in formulating their strategies for maximizing their effort and budget to obtain their goals. The framework consists of five related areas; one of them is infrastructure. In infrastructure area, the strategies should be taken into account are as follow:

• Deploying a core ICT network infrastructure. ICT is very pervasive in the global world today, the features are very excessive and the price soon will be very competitive. An ICT-based network or solution will have advantages in term of interoperability and cost compared to other development imperatives.
• Achieving relative ubiquity of access. Access for ICT service should be available everywhere in urban or rural area, and every people should deserve it. Unlike policies focused on export expansion or on international positioning, this mass-oriented policy will consume much cost and, therefore, should be complemented by government interventions through universal access funds and support of community networks and public access points
• Investing in strategically-focused capacity to support high development priorities. The strategy should focus on developing appropriate and strategic network infrastructure capacity for key sectors to take advantage of leading edge technologies. To take advantage of global positioning possibilities, such focused capacity should also include a reasonable level of global connectivity
• Addressing ICT infrastructure as an enabler to enhance the achievement of development goals and national long-term targets. ICT can be a powerful tool for development, both because of ICT’s inherent characteristics and the mounting empirical evidence in many countries show that it can contribute a great deal to development goals.

In many developing countries, the role of government in providing telecommunication service is very deterministic. Government or state-owned company(s) has dominated all telecommunication service from provisioning and maintaining core network infrastructure, as well as providing universal access. However, some privatization and liberalization policies aimed at increasing competition in the sector, has already provided a greater involvement of the private sector in infrastructure provision.

Ubiquity and the move toward universal access are becoming more and more feasible due to rapidly declining costs for networking and telecommunication technologies. These declining costs allow developing countries to leapfrog ahead through the use of cutting-edge technologies. In most developing countries, the information network is composed of an all-digital microwave and fiber-optic system with digital exchanges at the main centers. The involvement of the private sector has hastened the adoption of these technologies, particularly in the case of wireless and mobile.

The strategy(s) should also focus on the complementarities and synergies between stakeholders and coordination among stakeholders. Infrastructure is rolled out as part of an overall program that includes simultaneous actions in other areas. These stakeholders could involve regulator with adaptive and supportive framework, NGOs, private enterprise and non-profit community as partners, and SMEs and public as service users/customers. The stakeholders should have the same initiatives to expand ICT access and services, and to strengthen demand as a beneficial side effect of addressing development imperatives through a public infrastructure strategy.

Achieving Greater Penetration of ICT Infrastructure

Infrastructure is basic requirement for promoting ICT as enabler of development program. When the infrastructure exists, the pace of development will be faster. However, the infrastructure irreadiness is a very general problem in most developing countries, and it is responsible for poverty problem and huge disparities between the rich country and the poor.

1. Digitalization of Telecommunication Equipment

Switching equipment, transmission equipment (microwave radio system, optical cable network) and local cable network should be “digital ready’, since the Internet and other networking system is in form of digital world. Migrating process from analog system to digital system should be addressed carefully since it will bear huge cost for developing countries.

2. Providing Digital Transmission / Backbone Network

Digital transmission system is built across the country, connecting all cities, provinces, and municipalities throughout the nation. Digital terrestrial radio network is deployed as country’s telecommunication backbones, as well as digital satellite system to cover bigger area in short time. VSAT system is considered to provide rural telecommunication system for spread, low-dense rural area.

3. Providing High-speed Data Network for Urban and Metro Area

Demands for data telecommunications is getting enormous in the city, demanded by business, academic or young people. Every existing telecommunication infrastructure available should be upgraded to bring more and more bandwidth. Telephone wireline network should adopt xDSL technology to go beyond 2 Mbps data stream. Coaxial cable should introduce cable modem, to provide data capability on top of TV cable network. Optical fiber network should go to every building, serve business with higher speed of the Internet access. Other access system such as wireless technology  (LMDS, MMDS, and wireless-LAN) should be deployed to expedite the network deployment.

4. Establishing Information Super Highway in Metro Area

Several developed countries has announced their plan to build an Information Super Highway in their big metro area. The ISH is a high capacity internet/data network using all advanced transmission network such as optical fiber, coaxial cable, xDSL, connecting several buildings, business centers, shopping malls, hotels, landmarks: airport, train and bus station, in the main business area. This ambitious program is to response to the increasing demands of multimedia service, mobile connectivity, and electronic commerce.

5. Adopting Advanced Telecommunication Network

Telecommunication technology is evolving during certain period. The digitalization of switching equipment and transmission system had already started by early 1980. Several years later, some improvements took place repetitively. The telecom operator and government should keep their eyes on the technology development, and adopt it whenever they need. Current advanced telecommunication network has gone far compared to the old-fashioned analog telecommunication system. It can now deliver several services via single network, such as ISDN, IN and xDSL.

6. Establishing 2.5G or 3G Mobile Telecommunication System

Mobile communications is growing much faster than normal wireline telecommunications, at least three times faster than the growth rate of the traditional means of telecommunications. Developing countries are now depending mainly on cellular or wireless communications to expedite their penetration target.

The next generations of mobile telecommunication system such as GPRS and W-CDMA for GSM system and CDMA-1X and CDMA-3X for CDMA system, are employing data service heavily, can go beyond 114 kbps per single user. This program should be in line with the Information Super Highway program as mentioned above.

7. Establishing an intra-University Network

This network is connecting all buildings, faculties/departments, laboratories, libraries, statistic centers, student centers, via a high-speed network such as coaxial cable, Ethernet cable or even optical fiber network. The internal network will provide free-of-charge data communication service, so that it will promote better relationship among resource center in the university. 

8. Establishing an Inter-University Network

This network will connect several universities, campuses, libraries, via a private, low-cost network, instead a commercial public-switched network. Since traffic flow among universities is predicted high and continuous, it will be more efficient to build a permanent connection among them rather than using a commercial service.

The wireless solution called Broadband Wireless Access or Wireless LAN operating at low frequency band could be ideal. ITU-R has recommended several frequency bands is dedicated as non-commercial band, called ISM (Institution, Science, Medical), such as 1.5 GHz, 2.4 GHz, 5.8 GHz frequency bands. These frequency bands can go travel a long distance, thanks to its lower band, and the implementation cost is getting cheaper since more and more non-commercial institutions around the world using this make the economy of scaling of this technology.

9. Upgrading National Bandwidth Capacity to the Internet Backbone

The most expensive expenditure in Internet business in developing countries is having connection the Internet backbone. Most of the Internet big hosts and information resides in developed countries. The distance between “north” and “south” region makes the backbone cost is keep high. On the other hand, national demand is keep growing due to Internet becomes more popular everywhere. Strategic steps should be addressed to overcome lack of bandwidth and other potential problem related to multi-lateral involvement.

A regional backbone and the Regional Inter Exchange (RIX) should be established to convey Internet traffic among countries in the region. The physical network could be optical fiber network, under-sea cable network (regional or international) or Intelsat Satellite System. Multiple connection to international backbone (mainly to industrial countries) should also be maintained: such as USA-node, ASPAC-node, AUS-node and EUROPE-node. The bandwidth to the Internet backbone should be increased regularly. The bear cost can be shared among the members of the RIX.

10. Promoting R&D Activities

The explosive growth of technology can only be sustained by continuous research and development activities. Developing countries, such as NAM member countries, can take part of this activity by creating environment or climate to become a global platform for R&D. Developed countries could take this opportunity by employing R&D capability of local scientists to get work done faster and more cost-effectively.

Establishing NAM-CSSTC Program Office in Member Countries

The NAM-CSSTC was already established in Jakarta, Indonesia in 1997, as a center or main hub for promoting ICT role in the developing countries. In order to disseminate the study, plan and recommendation already made, as well as bringing a better involvement of the NAM members in promoting ICT for their development, a program or liaison office should be established in every country. The Program Office is to address all networking and connectivity issues, monitoring nation capacity and capability, web preparation and content development, as well as promoting ICT and the Internet awareness among high-level officers and other national stakeholders. Several national pilot projects on selected pilot locations could be undergone under monitoring of this program office. 

Every country should also establish a national gateway or focal point, which will bring several technical tasks as follow:

• Connecting the national gateway to other resources within country: Government Institutions (such as Research, Development Planning Bureau, Statistical Bureau, Ministry of Trade and Industry), National Chambers, Universities, Research Institutions, and other interested Private/Business Institution
• Conducting human resource development, training in ICT program and networking, and disseminating the progress to other pilot locations. The involvement of local/native human resource should be promoted and prioritized.
• Preparing contents associated at every resource center. Every important resource centers within nation should be promoted, and the resources such as research institutions, labs, skilled persons, and other natural resources should be available to other member countries. The presentation can be websites, links, downloading files or other popular media in Internet world.
• Managing several important/substantial websites or portals that contains strategic information and sensitive resources. Although the resource should be available for every member countries, as mentioned above, some strategic and sensitive information could be an exception. The sensitive resources such as national security policy, national research bureau, banking, native political issue, native religions, etc should be managed carefully.
• Conducting language translation if needed. (translation from national language to international language, and vice versa). Several international languages should be chosen, in order to reach as much reader as possible. English, French and Spain language could be chosen as the most popular international language nowadays.
• Preparing coordination with other regional countries via Regional Gateway. Regional gateway should also be established by the member countries within region (Southeast Asia, Mid-east Asia, North Africa, etc.). Several national gateways can elect one of them to be Regional gateway, and conducting coordinating and supervising role to promote better improvements among regional countries. 

Both program office and national gateway tasks could be carried out by the same institution in order to get better coordination and efficiency in term of operational cost.

Connectivity

Connectivity will provide more people to interact each other over the distance. Telecommunication and connectivity has played very dominant roles in the worldwide nowadays. Promoting connectivity means providing more computers connect to others via networking technology or system, especially via the Internet. The strategies consist of providing more affordable computers to the people and providing more Internet access available to the computer users, including bandwidth, IP address and domain name. Last but not least, is developing websites, contents and other web applications, make the national information or resource being available to other people in the world.

Promoting PC Penetration

Computer has experienced a paradigm shift from the stand-alone mainframe computers to PCs in the 1990s and, now, with the explosive growth of the Internet, multimedia, and the emergent network-centered computer, the role of PCs becomes more and more dominant.

Information and Communications Technology (ICT) as a whole has been making dramatic breakthroughs in the last thirty years. Computer have seen, every 24 months a doubling of the number-crunching capacity and a simultaneous reduction in prices by 50 %, according to the Moore’s Law, one of the founders of Intel, the dominant processor manufacturer of silicon chip in the world.

Promoting ICT development means promoting PC penetration among people living in developing countries. It could be done by :

• University-to-university cooperation (U-to-U), shifting the Research & Development facility, including computer laboratory facility, to universities in developing countries
• Bringing down the tariff level (import duty, luxury tax, value added tax) on all IT-related product, especially PCs.
• One interesting breakthrough nowadays is developing a supercomputer by networking or clustering several old-fashioned PCs. For example 16 PCs of 486 type can create a supercomputer with 70 megaflops capacity, and 16 PCs of Pentium Pro type can create supercomputer 1 gigaflops capacity.
• Promoting Linux operating system and Ethernet /LAN networking system to reduce cost of software among individual/household PC owners.

Developing Content and Web Applications

The Web (or more properly, the World Wide Web) was developed at CERN in Switzerland as a new form of communicating text and graphics across the Internet making use of the hypertext markup language (HTML) as a way to describe the attributes of the text and the placement of graphics, sounds, or even movie clips. Since it was first introduced, the number of users has blossomed and the number of sites containing information and searchable archives has been growing at an unprecedented rate.

The Web requires a client program (such as Netscape, Internet Explorer, or Lynx) and a server (http) to send information to the client. The client program allows the local user to run an application program to connect to the server, provide a graphical interface for the Web and allow the user to view pictures. Client programs are available in any operating system from UNIX, Windows, to Macintosh. Servers contain files full of information about courses, research interests, map, etc. All of this information is formatted in a language called HTML (hypertext markup language). HTML allows the user to insert formatting directives into the text, with a specific style and format, and convert it into HTML documents.

In order to popularize the Internet among the people and to open up their countries to the world, NAM member countries should encourage their people, especially business sectors, universities and R&D bodies, government institutions and SMEs, to providing demand-driven information they are competence in the web. The information should be relevant to the needs and conditions experienced by local people. The information should be in HTML format and should follow rules such as compatibility, language and etc.

Several key factors should be considered by every country in order to have successful web developing program and to make the information available and useful to other people.

Relevance and Usability. The contents and information delivered in the websites should be responsive to user needs and local conditions. It should be commonly understood, and should comply with technical specifications that are sensitive to the actual use and working environment of users. Partnerships between community networks and the private sector are key in this area, as are consultation mechanisms that facilitate bottom-up approaches and inclusiveness.

Language Compatibility. In many developing countries, problems also arise because standard fonts for local languages are unavailable. For such countries, translation into international language and international characters (Latin characters) is an important step, otherwise only very few people can take benefits from the contents. External partners (public, private and citizens in diaspora) can play a key role in this area. For other Latin-character countries, dual-language presentation (international language and native language) will be useful for most people in the rest of the world.

Affordability. Unaffordable access is probably the single most important reason for low use of ICT in developing countries. National ICT strategies can facilitate mechanisms for subsidized use and can support reform measures that would lead to the reduction of costs and access charges.

Development Applications. In addition, there is a need to build applications that are focused on achieving development goals. These range from those that enhance e-government and e-governance processes, to those that apply ICT to specific development goals, including health, education, empowerment, environmental sustainability and support of employment and enterprise creation.

Finance and Business sector participation

FINANCIAL ASSISTANCE

The most crucial tasks burdening all governments on promoting ICT development are fund provisioning and budget allocating to finance all necessary components. Although some countries are rich, due to their very abundant natural resources, most of the developing countries are suffering lack of funds, while on the other hand, they have plenty of development tasks and targets to accomplish and perform. Government should promote and catalyze the private participation in ICT development. Banking, venture capital and tax are sectors that government should take an appropriate actions for providing public awareness as well as business opportunity for more development activities.

Government should formulate a complete and sustainable program in order to involving all stakeholders take part in disseminating the ICT development. Government should also establish an environment, allowing development programs, such as financial assistantship program, are carried out by not only government and state-owned enterprise, but also private and international business institutions.

In banking sector, an appropriate regulation is needed, such as incentive, small-scale protection policy and deregulation, which will allow healthy banks to have more roles in giving opportunities for under-served communities and small-to-medium enterprises. In some developing countries, several banks are concentrating on providing credit and assistance to the farmers and they are enjoying a very small number of non-performing loans.

Other government’s task is formulating strategies to promote venture capital facilities and attracting venture capital. Venture capital is very popular in industrialized country, and their contribution to national economics is very big. Therefore, they should be invited, with several appropriate strategies, in order to getting interested in doing business in developing countries, such as relocating their business line, putting their capital in the pioneering business and providing business opportunity to the communities.

In order to provide more incentives to attract business opportunity in ICT field, government should explore the potential of using the dramatic cuts in transactions costs offered by ICT. In some countries, government already brings the tariff level down on all IT-related products. This policy is expected to find new ways of expanding micro-finance initiatives for the poor, ranging from credit for small and medium enterprise to incentive for the pioneering company.

For promoting private participation in ICT business activities, government should take active initiative in realizing a partnership of private and public stakeholders. This program is aimed at establishing the enabling environment to attract major investment in ICT infrastructure and matching information technology to the basic development needs of health, education, environment, trade and others. Government should also promote private sector entities on crafting the appropriate strategies, such as competition, public policy to support Internet and electronic commerce growth, and enabling entrepreneurial environments.

Government should establish an environment so that financing program is conducting by not only government and state-owned enterprise, but also private and international business institutions.

Finance Institutions and Funding Availability

Financial institution takes dominant role in providing budget and investment for the government and private. Access to credit and financing is more developed and more systematic, compared to the financial facilities in other developing countries. More credits are available for the dissemination of the advanced ICT development.

Banking sector is dominant in channeling resources across geographic zones and economic sectors. It is also ICT-intensive and provides niche opportunities for local enterprises. As financial institutions proliferate deeper into the different areas of the country, banking can also help to expand opportunities for under-served communities and businesses. At the same time, by adopting appropriate solution including ICT, banking can provide financial services more cost-effective and affordable for poor communities and small enterprises.

Venture capital sector is growing in the developed countries. It is a key engine of enterprise growth. The business and regulation environment provides more opportunities for the venture capitalist and more attractive business is created. Many factors account for this, such as clear and transparent regulations, such as patent regulations, foreigner ownership, more political and economic stability, as well as good law enforcement. For small-medium enterprises, government provides pioneering venture capital such as business incubators and accelerators, involving both local and overseas capitalist well experienced in this field.

Role of the Government for Funding ICT Development

The roles of the government are, on one hand, obtaining sufficient funds for financing the development program, and on the other hand, creating climate and environment in order to giving opportunity to the private sectors to take part in development activities. In order to obtain adequate and sustainable source of funds for developing ICT strategies, government should take active role in multilateral cooperation with developed and developing countries in the region, as well as allocate some portion of its national budget for infrastructure and education program of ICT, especially in rural area. While in creating supportive business environment, government provides regulation, policy, incentive or even facility. Several sources of funds are listed below but not limited to, and some countries may have different scenarios.

1. Government to provide budget allocation from national budget plan. Government should allocate certain ratio of its annual budget for education, health and development of rural areas. Certain amount of those activities will be ICT-related and responsible for ICT dissemination program. 
2. A strategic partnership of major international institutions, such as UNDP supports World Bank to build a Global Development Gateway and promote on distance learning. Distance education has been a particularly successful model in developing countries where affordability and geography have been real barriers to access. The partnership will invite other countries’ involvement in order to disseminating the program and making the partnership successful. The six largest distance-learning universities in the world are located in developing countries: Turkey, Indonesia, China, India, Thailand and Korea—all of which offer expanding virtual campuses.
3. Encouraging private sector involvement to support international program, such as cooperation between UNDP and Cisco. Several multi-national companies (MNC) have regular program of disseminating and campaigning the use of technology they are competence with. They are willingly helping people or countries with their knowledge and provide solution for several problems. The program usually involves many countries, such as Cisco/ UNDP Networking Academy Program involves more than 100 countries. This course trains more than 155,000 students or workers in developing countries in designing, building, and maintaining computer networks, enabling students to obtain jobs in the local IT industry.
4. Encouraging private or business sector to provide fund for local, specific, short-term project related in disseminating the ICT infrastructure to rural area. Some business stakeholder or big corporate is willing to take part in upbringing the pace of development. They have responsibility as well as business strategy for improving quality of human living in rural areas. When the quality of living is improved, the business opportunity is bigger. On the other hand, government should prepare adequate facility for attracting more and more private sectors involving in such program.
5. Encouraging partnership of private and public stakeholders, in order to establishing the enabling environment to attract major investment in information infrastructure and matching information technology to the basic development needs of health, education, environment, trade and others.
6. Promoting governments and private sector entities on crafting the appropriate strategic mix of telecommunications competition, public policy to support Internet and electronic commerce growth, and enabling entrepreneurial environments.
7. nviting developed country(s) to relocate the R&D facility and manufacturing facility to developing countries. The principal countries will get benefit of lower R&D and production cost, while recipient countries will harvest the technology-know-how, job opportunities and source of funds for surroundings area. 

BUSINESS PRIVATE PARTICIPATION

Private sector plays a very dominant role in ICT development in developed countries.  At this level, business sector-led initiative is increasing and more business is willing to fund a number of development programs, with specific business considerations. ICT provides a lot of business opportunity for the private sector, making financial institutions such as banking, venture capital, and insurance company, become more important and government could plays minimum role in disseminating the ICT.

The economic trend is now shifting from local or regional market towards global-market- economic policies. Modern advances in telecommunication have made the world become a global village, become borderless. Global companies have become entrepreneurial webs and they are seeking out the best and the most effective manner of production of goods and services. For such global-market trade, telecommunication and IT play a very vital action. Today competition in the world market is time-based and the velocity of business is vital to success. A state-of-the-art telecommunications system therefore is a necessity. 

Business or private sector can take active participation in promoting ICT whenever they identify business advantages in this activity. New business opportunity or cutting cost aide can motivate private sector to make benefit of ICT network throughout country. They can also get benefit by improving access to financial capital, facilitating access to global and local markets, enforcing appropriate tax and property rights regimes, enabling efficient business processes and stimulating domestic demand for ICT.

Business Opportunity for Private Sectors

For developed countries, information and telecommunication infrastructure has achieved an advanced level, which provide a lot of business opportunities. The infrastructure is usually modern, ubiquity even in the rural and under-developed area, affordable for the people and competitive. Infrastructure is no longer becoming business commodity, since the major player of telecommunication operator has already won the competition, most of them are state-owned enterprise. However, there is still plenty of business opportunity in the advanced ICT service. Private sector can support value-added service, mobile services, as well as ICT manufacturing, and R&D activity.

Several opportunities are also available, thanks to the development of recent ICT. Some opportunities for private are described in the following sections.

E-Commerce

Electronic Commerce refers to the use of electronic means and technologies to conduct commerce, including within business, business-to-business and business-to-consumer interaction. The enabling technologies are also used for non-commercial activities such as entertainment, communication, filing and paying taxes, managing personal finance, research and education, which may still include the service of online companies. Although these may be cutting-edge applications, conventional e-commerce areas include:

• Searching for product information
• Ordering products
• Paying for goods and services
• Customer service

Electronic Commerce is growing and has found its popularity in this decade. E-commerce offers plenty of opportunity of doing business. The market and transaction process are shifting from analog product and manual marketplace, to a digital product and automated, digital marketplace, from cash money to digital money. Transaction is conducted efficiently in a very fast way, and involving all part of the world. All commerce activities can be integrated into a holistic business process, which have capability to innovate and integrate business and market process. The nation now become borderless, resources in every place can be transacted and exchanged without the moving of the resources. The business opportunity is enormous, and the involvement of financial institutions is absolute.

Efficiency Program

ICT enables people and enterprises to capture economic opportunities by increasing process efficiency, promoting participation in expanded economic networks, and creating opportunities for employment.

ICT enables improved business process efficiency and productivity. Businesses can reduce operational costs by decreasing material, procurement and transaction costs, resulting in lower prices for intermediate and finished goods, and they can also use more and better information to improve the value of their output.

Brazil: Building National IT Capacity for Domestic Market Dev.

Brazil’s ICT policy has been consistently focused on the development of a domestic ICT sector and market, although the mechanisms to secure this have changed. In the early phase (1980-90s), the focus was on the creation of a diversified industrial structure and the development of the technical capabilities of national firms. In more recent years, with greater liberalization of the economy, the strategy to support domestic capacity has shifted from protection to promotion. Development of the sector is taking place with a greater presence of, and collaboration with, external partners. Brazil is now poised to become a major production center for export as well as domestic demand. Brazil offers a large market, manufacturing capabilities, installed industrial base and access to other South American markets. Having encouraged the growth of the IT sector, the Brazilian Government is now moving to extend the benefits of ICT to a broader base in society. Brazil was among the first developing countries to put in place policies promoting the development of a national ICT industry. The Brazilian ICT (principally computer) sector drew on a skilled population base, strong research and development (R&D) networks, a relatively extensive telecommunications infrastructure (put in place by the end of the 1970s) and a strong level of government commitment. Brazil’s IT policy in the early 1980s came in the wake of the debt crisis, the attendant need to reduce imports and the desire to avail the country of the opportunity to expand and diversify its industrial base. Its so-called “market reserve” policy was established to create a “greenhouse” environment that could nurture locally-owned companies (for micro and mini-computers) and protect them from direct imports and competition with world industry leaders for Brazil’s relatively large and fast growing national market. Domestic R&D grew because technology transfer agreements were difficult to obtain. Local firms developed their own products based on reverse engineering or in-house design. By the end of the 1980s, Brazil had attracted a set of IT corporations that brought significant local market presence and job creation benefits. Among the 50 main ICT firms involved in hardware production, total employment increased from 43,000 in 1984 to over 74,000 in 1989. The output of local computer hardware producers grew from less than US$200 million in 1979, to more than US$4 billion in 1990. However, the debt crisis also led to a decline in telecommunication services. Partly in response, the government introduced liberalization measures in the telecommunications sector. The first step was a constitutional amendment abolishing the telecommunications monopoly. This was later followed by legislation allowing private enterprise to bid for cellular licenses. Lower prices resulted and telecommunication services were not only restored, but grew, making the expansion of the domestic computer industry more viable. Following an initial decline in the production of hardware with liberalization, production expanded again in the 1990s on the basis of local production led by Compaq, Itautec (a national company) and IBM. Liberalization thus resulted in the computer industry being rebuilt on new terms, although based on the legacy of previously created technological capabilities. In 1997, the Brazilian PC industry produced over 1.2 million systems worth US$2.5 billion, or 37 percent of the Latin American market. Opening up the market has also led to rapid growth of contract manufacturing in Brazil. Compaq and Epson are outsourcing their production of integrated circuit boards to Brazil. Hewlett Packard does the same for its printers. Another development is that software has risen as a proportion of the IT industry, going from 15.7 percent in 1991 to 21.3 percent in 1997, and it is currently growing at 25 percent a year. Software production accounts for over 10,000 firms in Brazil, and for more than 200,000 jobs. Brazil is the largest “packaged software” market in Latin America. The growth of the Brazil IT market has encouraged a number of foreign software and information services firms to set up local subsidiaries for customization and various service functions, but national firms, given their previous experience and well-established user-producer relationships, were also able to find profitable niches in banking automation and R&D.

From: Creating a Development Dynamic: Final Report of the Digital Opportunity Initiative, Accenture, Markle Foundation, UNDP, July 2001

MNC and Regional Expansion

The private corporations should expand their view, to not limit their coverage locally, but also take part actively in countries among region. They could bring their product, service, experienced, or even investment to neighboring countries, providing more business cooperation and job opportunity for more people. Their cooperation with local, native company can create a joint-venture, relocation, or local R&D activity, which then provide more benefit for the MNCs. Experience shows that the pioneer MNCs usually more successful than the followers.   

Other opportunity should be explored more is inter-regional trade, instead of inter-national trade. In order to increase inter-regional trade flow of goods and services, several improvements should be made. Trade finance should be enhanced, customs procedures in different neighboring countries should be simplified and harmonized, and for standards and conformity assessment, enhancement of Mutual Recognition Agreements (MRA) in specific sectors is recommended. Last but not least, visa permit processing and regulation on temporary residence should be available and easy. 

ICT also facilitates global connectivity, resulting in new ways of creating and delivering products and services on a regional scale. New business models and market configurations enabled by ICT, including business process outsourcing, value chain integration and disintermediation, provide developing countries with access to new markets and new sources of competitive advantage from which to drive income growth.

Other business opportunities for private sectors to go regional or international are promoting advertising and commercial program for international events, establishing venture capital company in neighboring countries, relocating R&D facilities to the skilled countries, and promoting other advanced IT and telecommunication technology.

Employment Program

ICT can contribute to better employment opportunities in developing countries both through improved labor market facilitation and direct employment. Using electronic job marketplaces, employers and employees can match labor skills and availability to satisfy their demands. For example, a job-search portal designed to serve professional employees provides job opportunity information on local web sites in local languages. In addition, the establishment of local tele-centers in many countries has created direct employment for thousands of local women and men.

ICT for Attracting the FDI

ICT could also give contribution in supporting government program to attract FDI (Foreign Direct Investment). FDI strengthen and stabilizes economies and that primary consideration in all FDI decisions is ROI (Return on Investment). ICT allows business and investment information exchange to be available for both private sectors in industrialized countries and their partners in developing countries. This information exchange can be implemented very cheap and quick, thanks to Internet and its components such as websites, e-mail, contents and other applications. Beforehand, government should prepare policies to improve their investment climates and push the implementation of investment liberalization, which benefits all the economies concerned. Transparency, liberal regulatory environment, non-discriminatory treatment, investment promotion and protection policy, efficiency of national administration system, as well as clear and transparent FDI flows are among key success factors to attract more FDIs.  

ICT as a Production Sector

In the following third millennium, the importance of information technology and telecommunications is gaining weight, as an efficient platform and infrastructure for all business sectors of trade, investment promotion, finance and technology cooperation. ICT can be enabler to address all opportunities in business nowadays. ICT can increase the quality of information sharing required by e-commerce and SME-database. ICT can also provide database of training and education program, courses for the technical human resources and business managers, exchange of experts and free consulting programs to SMEs, in order to support private sectors and government gain their return on investments.

In industrial sectors, production and manufacturing process are promoted to obtain more efficiency in material, human resources and time. Since firms have become less and less capable of supplying all the necessary technological knowledge on their own, cooperation in the area of industrial technology now matters than ever. The transfer of technology should be stimulated on a commercial and mutually acceptable basis. Other issues such as contracts, patent and IPR should be prepared and better understood.

In many developing countries, the government is one of the major consumers of ICT products and services. Governments can therefore lead by way of example in the use of ICT and can also implement best organizational practices—some involving the use of ICT—to ensure that public funds are spent in the most optimal way. Procurement of services by the government via ICT channels can generate a strong demand for ICT services.

Regulation and Law

ROLE OF GOVERNMENT REGULATION

ICT is a new method of communicating and improving the welfare. It should be treated like any other industries and should be regulated, but if possible it should operate and function without high government intervention. A regulatory challenge is to develop consistent and relevant regulation that can promote growth of the sector, actively encourage innovation and serve the best interest of community.

Regulatory monitoring is desirable to remove barriers to ICT development, which is including the cost of service, basic infrastructure, service and transmission supply. ICT media, in particularly Internet Protocol (IP) based is likely to form the backbone for integrated voice & data service in the future that will create some added values.

The main issues

The main issues for every advanced country to attract FDI and increase this sector are:

• Not to defend the certainty pricing / tariff scheme.

Access to free competitive market will be necessary for both of operators & consumers to get the most efficient prices / tariff. Competition is essential to reduce cost and accelerate the spread of new technology.

• Serve the best interests of community.

Government should stimulate the best condition by promoting increased liberalization, harmonization of regulation and standard, and spread of best practice.

In general, the world is moving from an industrial to an information economy. The evidence is the rising of the ‘new economy’, driven by the information network.

The ‘new economy’ is a world in which:

• People work with their brains instead of their hands.

There are new ideas, concepts & innovations in all sectors for making all works will become easier and faster.

• Communication technology creates global competition.

It serves a global access and global market in the world, in which all producers and consumers can take the advantage.

• Innovation is more important.

It will offer added value and specialty rather than mass product.

• Investment buys new concept rather then new machines.
• Rapid change is a constant.
• ‘Light touch’ of government intervention to develop and serve the best interest of community.

Privately owned and operated to reduce the government intervention therefore public can get the efficient price and the best quality.

• IP based network. to develop greater connectivity and market in the world, and take the advantage of it, such as multi resources, new investment etc.

To take the more advantages from ICT media, advanced countries which have e-readiness condition, have to develop a good investment climate and strong network. Sometimes policy reviews must be done to perceive information exchange for extending the universal access.

Major challenges to e-readiness countries

• Strong infrastructure. It is the backbone for spreading the ICT usage in public and developing the strong ICT industry.
• Widespread access of information networks and services are the basic needs of the digital economy. It should be supported by the strong infrastructure.
• Competitive price for stimulating local ICT industry and offering the efficient price to consumer.
• It will offer the best choice for consumers. It makes all operators / producers giving the best quality to grab the market.
• Equal treatment of investment regulation and legal system should be set up for protecting both of local operators / producers and consumers as well as attracting FDI.
• Efficient Custom, taxation & natural resources usage fee. Simple & transparent administration procedure is needed for attracting new investors.
• Network access security should be set up in order to protect ICT resources from any illegal actions.
• Strong protection for IPR, copyrights and domain name is necessary for protecting original works and their creators and guaranteeing public interest and access.
• Content plays an important role to attract public interest in getting more information. It is also an effective way to introduce local resources to global market.

It is indisputable that Small and Medium size enterprises (SMEs) as group forms an important part of the business structure of any economy. It provides an essential structure supporting the bigger organization in providing all sorts of high value added services and intermediate products as well as supplying specialized product to meet specific niches of the market.

While large companies are able to develop by themselves cross-border trade and investment, SMEs lack information, financial and manpower resources and tend to focus on their domestic markets. E-commerce will be an effective media for SMEs to expand their activities.

There is potential for more trade and investment between these economies SMEs are encouraged to develop cross-border activities. To express this potential, there is a need for a deliberate and voluntary effort, which are undertaken by government and private sectors in order to implement practical and effective measures. To promote the SMEs development, the usage of Internet networks is needed to improve the relevancy and quality information. E-commerce usage also can give advantages for business community, in where business community can reach bigger market, more efficient resources and other opportunity.

Lack of manpower with required skill and expertise should be taken to set up more and strong education system, including training institution geared toward the specific needs. Improved educational and health standards in developing countries contribute to foster a positive investment climate.

Besides that, promoting cultural understanding from business perspective, such as building Culture Briefing Centers that can be accessed virtually provide a good basis. An official world wide home page would enhance availability of information, encourage transparency and provide a forum for business people to explore opportunities and to communicate with other potential partners. Lack of information about domestic market, opportunity and culture can reduce the interest level of foreign investor. Better communication leads to better business relationship.

Competition is essential to reduce cost and accelerate the technology adaptation. Some policy instruments to support private investment are needed. Government should stimulate this by promoting increased liberalization, harmonization of regulation and equal treatment with non-discriminatory policy. These includes better dissemination of information about investment opportunities, protection for IPR, non-discriminatory licensing arrangement and equal treatment of natural resources usage such as frequency usage.

The rule of law and the protection of IPR are underpinning a good investment climate. The adherence to the principals of transparency and non-discriminatory treatments by governments are essential conditions to attract Foreign Direct Investment (FDI).

Foreign Direct Investment plays an essential role in strengthening and stabilizing the economies, including the ICT industry. It can improve the better competition rate. An investment regulatory policy should be implemented to develop a good investment climate. Stable legal, political and security framework is acknowledged to be a pre-requisite to attract FDI flow.

Business community recognizes the importance of co-operating with governments to promote economic development based on sound and sustainable environment conditions. Political risk insurance schemes to encourage investment need to be further promoted by government as well as by private entities.

New and more effective programs for long-terms capital investment should be considered within existing international financing organizations. Bilateral and multilateral assistance programs could become more effective through a process of consultation and co-operation with the private sectors.

Liberal regulatory environment is needed to remove the obstacles of capital flows such as FDI transactions. Transparency and policy predictability is very important at the pre-investment decision stage. It is of vital importance that the prospective investor has complete confidence in the transparency and the policy predictability of the host country.

There should be greater enforcement of non-discriminatory laws, including:

• Equal access information.
• Common standard.
• Transparent regulation.

Measures should be taken to facilitate international trade and investment are including market access, streamlining of custom procedures, and encouraging co-operation in technology exchange. Further deregulation and liberalization of financial markets also have a vital role play in restoring the confidence of foreign investors.

Opening of investment regimes and removal or reduction of burdensome requirements and obstacles will attract more FDI. A variety of incentives, including tax breaks, R&D grants will facilitate better investment climate. An effective court-system with independent jurisdiction to which foreign investors have equal and impartial access is an important role for ensuring transparency and predictability. A well-educated labor force (including foreign language skills), low corporate taxes, tariffs and indirect taxes are needed to promote the perfect competition market structure.

The very first challenge is to expand access to the ICT media at affordable tariff. The high cost of service in many advanced countries remains one of the main barriers to Internet diffusion in addition to that of the shortage of phone lines. Legislative or regulatory measures as well as suitable pricing / tariff policies must be adopted so that the ICT media can be made available for all segments of society. The tariff monitoring system should be developed to keep the reasonable tariff that is based on cost orientation. Low cost Internet access should be provided to schools, universities, libraries, multipurpose community tele-centers or public service institutions to stimulate wider usage and ‘wire’ rural communities.

Strong programs should be developed to increase technology and computer skills among young people to fulfill the demand of ICT operators. Besides that, access to education will determine the wealth of nations and individuals. In the digital economy, people who do not know how to use electronic information networks and services will have difficulty facing the high competition, no matter what other skills they have.

Greater awareness of the benefits of on-line access to information, especially in this information and globalization age must be actively pursued throughout society and in particularly SMEs. Using the Internet access, traditional economic activities can be made more efficient and more profitable cause people can sell their product or service directly to other countries.

No government intervention on tariff in perfect competition market structure will increase the good competition climate among the player. Perfect competitive market will decide the reasonable tariff that always figures out the balance condition between demand and supply. The high competition rate will give many choices to end customer and the other side it will be improving the quality of product or service offered.

In general the roles of government are:

• Develop liberal regulatory environment in all ICT sectors. Implement equal and non-discriminatory treatment to attract more investors. Deregulation measures in ICT industry to open up the perfect competition climate. A supporting system and good investment climate is needed to attract FDI.
• Develop good competition system in domestic ICT market to serve the best interest to community. They must be prepared for a strong competitive rate in the global market.
• Develop better investment climate to attract Foreign Direct Investment (FDI), especially in ICT sector. It is an important step to accelerate the ICT development program.
• No government intervention in tariff structure. The market should decide it therefore all community can take the more advantage from this technology. It will offer the most efficient tariff for both operators and consumers.
• Open up all ICT market to a wider range of players and investors. Promote competition in Internet service provision market to improve the better service and price to community to serve the efficient price with the best quality. This is a necessary step towards participating in the global market place.
• Develop the strong ICT education program, including international language education program, in all education level to fulfill the demand of multinational company in ICT industries and improve the innovation, particularly in local content. Without good education system there can be no innovation and no growth in ICT industry. The government should prepare the strong education program to educate their people in the skills required in the information economy. High quality human resources program to attract FDI, including technical and managerial aspect should be set up.
• Develop the strong foreign language program in all education level therefore public can take the advantage of the Internet and communicate with other countries.
• Implement and enforce the legal framework to protect IPR, copyright, domain name and disputing problems for protecting the producers and authors, as well as for protecting the consumers. The strong legal framework and international standardization for electronic signing for electronic agreement (documentation) should be set up to facilitate the growth of e-commerce or e-business.
• Promote a public awareness campaign for high usage of e-commerce, particularly for SMEs and other home industries. E-commerce is an effective media to promote local product and resources for catching greater market in the world without high cost.
• Reduce tax for high technology equipment and also for importing end user (household) ICT equipment, such as Personal Computer that is categorized in expensive products to avoid higher tariff for the end consumers and to accelerate the ICT deployment program to all community.
• Set up a good incentive for private players that develop R&D activities to improve the innovation product or service. A transfer of technology program to improve the local employee skill should be developed to educate local employees and building the strong local industries.
• Provide ICT access to all productive citizens to improve the utilization rate and the competitive advantage of local employee.
• Simplify the licensing procedure and implement the efficient procedure for natural resource usage to stimulate the growth of ICT operators.
• Promote production of local content and the development of local part of ICT equipment to improve the competitive advantage. It is also important to promote the local resources to other countries for catching the greater market.
• Promote growth of Internet access market and universal access to reach global market and resources. It will be an effective way to stimulate all industries, particularly the competitive advantage of local industry.

INTELLECTUAL PROPERTY RIGHTS AND COPYRIGHT

The foundations and goals of copyright are, on one hand, to encourage creation by granting exclusive rights to the creator for a limited period of time and, on the other, to support and regulate the spread of cultural goods, knowledge, and ideas. Copyright therefore relies on balancing the interests of protecting original works and their creators and guaranteeing public interest and fundamental freedoms (such as access to culture and freedom of speech).

Present development in intellectual property, especially in the field of copyright and neighboring rights, could threaten this balance. It is also true however that new technologies represent a threat for the normal exploitation of copyright-protected works. The preservation of this balance between the legitimate interests of the right holders and the equally legitimate interests of users to have access to information and culture are of crucial importance in the framework of the Information Society.

Role of the Government  

Well implementation of intellectual property right and copyright law, including sanction and punishment to whom who violate it.

Malaysia: National Approaches

In an environment characterized by rapid advance in ICT, globalization, liberalization, and greater reliance on knowledge for value creation, Malaysia plans to leapfrog into the post-industrial age by leveraging ICT as a strategic lever for national development and global positioning. In 1996, Malaysia launched a program called “Vision 2020,” which laid out a plan to build a fully developed, knowledge-rich Malaysian society by the year 2020 through the development of the ICT sector and the use of ICT to increase global competitiveness. The intent behind Malaysia’s Multimedia Super Corridor (MSC) has been to create a high-tech environment and infrastructure that can attract national and international investors and create spillover effects in the rest of the Malaysian economy. Specific sectors of focus include education, healthcare , government, commerce and manufacturing. Comprehensive policies are being developed to encourage ICT use in various sectors of the economy, as well as to accelerate the growth of the ICT sector. Trade and investment policies, such as financial and non-financial incentives, a fair trade system, and import and export duties, promote local and foreign investment. The Malaysian government has also defined attractive policies for foreign investment, such as streamlining the investment approval process, unrestricted employment of foreign knowledge workers, and freedom to obtain capital globally. The Malaysian Government has invested heavily in world-class infrastructure. Malaysia’s Multimedia Super Corridor (MSC) is designed to create an ideal environment for ICT-related production as well as provide the backbone for an information superhighway. The network contains a high-speed link (10Gb/s network) that connects the MSC to Japan, ASEAN, the US and Europe, and is capable of supporting extensive public administration, education and business applications. The intent of the superhighway is to provide quality access to global information as quickly and easily as possible. Simultaneously, the Demonstrator Application Grand Scheme (DAGS) is intended to facilitate social and economic progress through the innovative use of ICT. It provides funds for citizens to access the opportunities associated with the MSC and to be involved in multimedia development. A number of incentives and projects are underway to foster entrepreneurship and business efficiency. The government provides both financial and non-financial incentives to Malaysian businesses. Financial incentives include zero income tax for a period of 10 years, R&D grants, and a 100 percent investment tax allowance on new investment in the MSC. Non-financial incentives include unrestricted employment of foreign knowledge workers, no restrictions on global capital, and limited restrictions on ownership. Strategic Compact: Malaysia’s leadership recognized the need for a cooperative partnership to achieve its development objectives and its ambitious vision. To leverage and coordinate public, private and community sectors, the National Information Technology Agenda (NITA) was developed as a major strategy for national development. The National IT Agenda (NITA), launched in December 1996 by the National IT Council (NITC), provides the foundation and framework for the utilization of ICT to transform Malaysia into a developed nation. The NITA vision is to use ICT to transform Malaysia, across all sectors, into an information society, then a knowledge society, and finally a “values-based” knowledge society. Source: http://www.opt-init.org/framework/onepage/onepage.html

Human Resources, Education and Public Opinion Building

Facilitating education about, and access to, telematics networks and services, such as the Internet service connection, must become a high priority on the development agendas of governments, especially in developing countries and countries in transition, as they are essential prerequisites for ensuring equitable access to information.

HUMAN RESOURCE DEVELOPMENT AND EDUCATION ON ICT

Education for information and communication technology could begin at early age and continues up to the higher educational level, also including non-formal education, a field in which associations and non-governmental organizations play a major role. The depth of the treatment given to these depends on the educational level concerned and the concepts are imparted following differing teaching approaches.

Formal education is the sector in which the key resources are being promoted in the world of information and communication technology. However, it is absolutely essential to link such action to all schemes being carried out in the informal education sector in order to integrate all aspects of the development of ICT skill.

In addition to formal education in which local associations, non-governmental organizations and governments cooperate closely, the authority should introduce other strategy which often result in the implementation of projects aimed at the introduction of information and communication technology, the training of teachers and teacher-trainers at all levels and the production of training materials and teaching aids tailored to the local content. These strategies will vary from one country to another.

The training of teachers and educational personnel at all levels is a key factor in promoting education for information and communication technology. Accordingly, the authority attach paramount importance to such training, which is provided through seminars and workshops in collaboration with national institutions, non-governmental organizations, and international partners working in this field. It may take the form of initial training, and is provided by higher-level teacher training institutes as well as by universities. Its duration may vary from one country to another.

The authority should ensure that all ICT education and training within their national jurisdictions includes training on ethical awareness and standards and not just on technical competence. The focus should be on the pre-requisite of developing and nurturing “human infrastructure”, including integrated education, ICT training, and skill-based programs.

Legislative and social provisions should make on behalf of vulnerable sectors of the population (physically and mentally disabled groups, refugees, immigrants, ethnic minorities, etc.). Ministries of Education, National Commissions, non-governmental organizations, and local associations carry out programs to promote the right to ICT education for the most disadvantaged population categories in order to provide them with the means of becoming integrated in the information society and taking part in all activities. It should however be noted that, in most countries, such provisions are not always reflected in effective implementation measures, and conditions of access to education for such population groups remain difficult.

Networking among the various national and regional institutions for purpose of pooling information and experience is another effective means of promoting education for a culture of information society.

The authority should promote, at every stage of education, an active civic training, which will enable every person to gain knowledge of the method of operation and the work of information and communication technology.

More and more local associations and non-governmental organizations should work hand in hand with the authority in order to increase public awareness on ICT and to provide for the training for trainers.

The development of national, regional, and international networking arrangements serves to strengthen information pooling and the exchange of documentation and research findings on different subjects and aspects of education for a culture of information and communication technology society.

Role of the Government

• To prepare such education system to supply the demand of skilled people in ICT industry. Most of the parts of ICT system consist of high technology components. This requires highly skilled people to operate and maintain. To reduce dependencies from foreign workers, the government must prepare and stimulate both formal and informal education to develop required high-tech skilled local people.
• Equal treatment of ICT education at all level of education on technical aspect and in multi language. The government should promote the right to ICT education for the most disadvantaged population categories (physically and mentally disabled groups, refugees, immigrants, ethnic minorities, etc.)  in order to provide them with the means of becoming integrated in the information society and taking part in all activities.
• Mutual cooperation with ICT industry to get highly skilled people in order to aim the target of in-house research and development. This could reduce dependencies from foreign vendors, and increase local creativity and innovations.

PUBLIC OPINION BUILDING

In order to gain participation from the society toward improving e-readiness and adoption of Internet, there should be a conscious and comprehensive effort to educate the public. Various channels can be utilized for public education. Traditional media such as newspaper, radio and television as well as mass gathering are typical. Other more subtle channel is through education institution formally or informally through public seminar or conference. Lastly, Internet itself can become a medium for public education in a form that is more interactive than traditional channel.

For the advanced level, the objective is more toward finding and exploring in creative ways utilization of cyber-space and Internet. Countries in this level become leaders in innovation and the impact should trickle down toward countries with the level below them. This is positive nature of the Internet with its free flow of information. Another additional objective of public education is to convince and gathers participation of the public to assist other less developed countries to improve their e-readiness. This assistance can come either in physical infrastructure such as hardware and software or in terms of human resource such as scholarship for education, technical expertise or political influence.

Conclusion

A the advance level the importance is ICT has been understood and even adopted by the society at large. Therefore there is less need to promote ICT as infrastructure but rather as tools and means to support daily activity whether its business or personal. Countries at this level should stimulate creativity and further explore the limitless boundary of ICT. Therefore, they could lead in either R&D as well as innovative use of ICT.

To foster good relationship and further spread usage of ICT, advance countries could lend assistance toward countries at the basic and developing level. The form could be physical infrastructure or human resource either through education or technical assistance.

The focus and key factors discussed in the document should assist the policy maker and government institution as well as various concerned parties in ICT development. Key factors that need to be considered are:

1. Infrastructure and connectivity
2. Financial assistance and business sector participation
3. Law, regulation and intellectual property rights (IPR)
4. Human resource, education and public opinion building

Authors Information

Name	:	Virano Gazi Nasution
Nationality	:	Indonesia
Education	:	Master of Science from Stanford University
Current position	:	President Director of PT. Ratelindo
Professional Experience	:	– Finance Director of PT. Ratelindo- Business Development Manager of PT. Bakrie Electronic Company
E-mail	:	nvn@ratelindo.co.id
Name	:	Aprita Primayuda
Nationality	:	Indonesia
Education	:	Electronic Engineer from Institut Teknologi Bandung
Current position	:	Deputy General Manager of Business Development Department of PT Ratelindo
Professional Experience	:	Deputy General Manager of Operation Department of PT Ratelindo
E-mail	:	prima@ratelindo.co.id
Name	:	Aristo Lystiono
Nationality	:	Indonesia
Education	:	Informatics Engineer from Institut Teknologi Bandung
Current position	:	Executive IT specialist of PT Ratelindo
Professional Experience	:	Manager IT operation of PT Ratelindo
E-mail	:	aristo@ratelindo.co.id
Name	:	Indarti Primora B Harahap
Nationality	:	Indonesia
Education	:	Master of Management from University of Indonesia Telecommunication Engineer from University of Indonesia
Current position	:	Senior Assistance of Corporate Secretary of PT Ratelindo
Professional Experience	:	Strategic Planning Supervisor of PT Ratelindo
E-mail	:	mora@ratelindo.co.id
Name	:	Medwi Swasono
Nationality	:	Indonesia
Education	:	Telecommunication Engineer of Institut Teknologi Bandung
Current position	:	Marketing & Business Manager
Professional Experience	:	Market & Finance analyst of PT. RatelindoSenior Engineer of PT. Ratelindo
E-mail	:	medwi@ratelindo.co.id