IHS Global Insight Perspective | |
Significance | The World Economic Forum has released an extensive global survey of "network readiness", which provides a useful snapshot of 134 economies' ICT strategies and achievements. |
Implications | Worldwide trends continue with the top positions dominated by the Nordic countries, while sub-Saharan Africa languishes at the bottom of the index. |
Outlook | The report provides a useful indicator of improving conditions for ICT development and correlates the benefits of ICT development with overall economic performance, stressing the importance of ICT in a recessionary environment. |
The World Economic Forum (WEF) today (27 March) released the Global Information Technology Report 2008-2009, the eighth study conducted by the WEF in conjunction with the INSEAD business school and sponsored by Cisco Systems. The report gauges how 134 economies around the world are prepared to use ICT effectively, determined on three dimensions: the general business, regulatory and infrastructure environment for ICT; the readiness of individuals, businesses and governments to use and benefit from ICT; and actual use of the latest information and communications technologies. Data is derived from publicly available sources and an executive opinion survey conducted by leading research institutes and business organisations within the countries under analysis. In total, 27 hard data indicators, including utility patents, mobile phone use and bandwidth available, are combined with 41 survey indicators to give the overall network readiness index score.
Running to almost 300 pages, the report contains eight articles on major trends affecting the ICT industry, this year particularly looking at mobility, such as the effect of mobile services on emerging markets, with case studies on Egypt, South Korea and Brazil, including contributions from state governments. A country profile page aggregates the data for each country and outlines each of the economies studied, while 100 pages of data tables address the questions that contribute to the overall results of the survey, with side-by-side analysis for each dimension.
Irene Mia, a senior economist of the Global Competitiveness Network at the WEF and co-editor of the report, noted, “The development story of the most networked countries in the world, including the Nordic countries, Singapore and the United States among others, has owed much to a consistent focus in the national agenda on education excellence, innovation and an extensive ICT access. This success stands as a reminder for leaders in both the public and private sectors not to lose focus on ICT as an important enabler of growth and competitiveness in times of crisis.”
Global Trends
Outside of the top ten, the Asia-Pacific region has five economies in the top 20 with Korea at 11, Hong Kong (12), Taiwan (13), Australia (14) and Japan (17). China has risen 11 positions to 46, while India fell four places to 54. Latin America and the Caribbean only had six entries in the top half of the index, with Barbados (36), Chile (39), Puerto Rico (42), Jamaica (53), Costa Rica (56) and Brazil (59). Mexico and Argentina both fell down the index to place at 67 and 87 respectively. Sub-Saharan Africa continues to lag, with Mauritius and South Africa the only nations in the top half of the index at 51 and 52 respectively and 18 of the 34 countries ranked below 100. North Africa is marginally stronger with Tunisia leading at 38, Egypt at 76, Morocco at 86 and Algeria at 109. The Middle East has pushed up the rankings with Israel top at 25, followed by the United Arab Emirates (27), Qatar (29), Bahrain (37), Saudi Arabia (40), Jordan (44), Oman (50) and Kuwait (57).
Outlook and Implications
While some hard data is not recent—for example, internet users and bandwidth per population data is from 2005—this report provides a useful snapshot of the global ICT environment, with the overall index breaking down to provide a more precise view of the components that contribute towards the success of communications technologies within these countries. In addition, some elements of qualitative data and analysis provide an overview of the drivers that have made real changes to a country's positioning in the rankings. The report outlines the pillars that support network readiness and growth in ICT, and emphasises the ability of ICT to deliver efficiencies and economic growth.