ECLAC/IDE-JETRO UNDP Thematic Trust Fund Information and Communication Technology for Development...

ECLAC/IDE-JETRO

UNDP Thematic Trust Fund

Information and Communication Technology for Development

PROJECT: Comparative Study on East Asian and Latin American IT Industries

Regional Summary: Latin America

Rodrigo Cárcamo O.

November 2004-Chile

CONTENT

• EQUIPMENT

• E-COMMERCE

• IT MARKET

• DIGITAL DIVIDE

• IT POLICIES

• POINTS TO EMPHASIZE

FIXED PHONE LINES PER 100 INHABITANTS

55.850.6

23 22.3 21.9 17.9 14.7 10.3 6.6

010203040506070

2000

2001

2002

EQUIPMENT

SOURCE: INTERNATIONAL TELECOMMUNICATION UNION. ITU

SOURCE: INTERNATIONAL TELECOMMUNICATION UNION. ITU

MOBILE PHONES PER EACH 100 INHABITANTS

8.56

19.220.124

42.8

05

10

15202530

354045

CHILE MÉXICO BRASIL ARGENTINA PERÚ

2000

2001

2002

EQUIPMENT

PCs PER 100 INHABITANTS

2.524.34.937.58.28.211.93

19.6

38.22

05

1015202530354045

2000 2001 2002

EQUIPMENT

SOURCE: ITU

EQUIPMENT

SOURCE: ITU

INTERNET USERS PER 100 INHABITANTS44.9

23.7515.6

11.2 9.85 9.35 8.22 4.65 4.62

0.0

10.0

20.0

30.0

40.0

50.0

2000 2001 2002

SOURCE: INFORMATION OF EACH COUNTRY. CONSULTANTS

B2C COMMERCE. US$MILLIONS

1400

1016

18940.5

0

200

400

600

800

1000

1200

1400

1600

BRASIL MÉXICO ARGENTINA CHILE

2000

2001

2002

E-COMMERCE

B2B COMMERCE. US$MILLIONS

3700

2290

715290

0

500

1000

1500

2000

2500

3000

3500

4000

ARGENTINA CHILE BRASIL MÉXICO

2000

2001

2002

E-COMMERCE


IT SOFTWARE SPENDING as a % of GDP

0.37

0.090.1

0.170.19

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

BRASIL CHILE ARGENTINA MÉXICO PERÚ

2000

2001

2002

IT MARKET


IT HARDWARE SPENDING as a % of GDP

0.81

0.58

0.3

0.51

1.36

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

BRASIL CHILE MÉXICO ARGENTINA PERÚ

2000

2001

2002

IT MARKET


IT SERVICES SPENDING as a % of GDP

0.560.46

0.310.23

0

0.2

0.4

0.6

0.8

1

1.2

BRASIL CHILE ARGENTINA MÉXICO PERÚ

2000

2001

2002


IT MARKET

USES OF THE INTERNET. 2003

DATA MINING

E-MAIL

CONTACTS WITH BANKS

GOVERNMENT PROCEEDURES

TAXES CONTRIBUTION

SOCIAL CONTRIBUTIONS

ADVERTISING AND MARKETING PURPOSES

MAKING SALES AND PURCHASES ON LINE

EXCHANGING OPERATIONAL DATA WITH SUPPLIERS

AFTER SALES CUSTOMER SERVICE AND SUPPORT


DRIVERS TO INTERNET USE

• TO IMPROVE COORDINATION WITH CUSTOMERS AND SUPPLIERS

• TO REDUCE COSTS

• TO EXPAND MARKET FOR EXISTING PRODUCT OR SERVICES

• TO ENTER NEW BUSINESS OR MARKETS

• CUSTOMERS DEMANDED IT

• REQUIRED FOR GOVERNMENT PROCUREMENT

• MAJOR COMPETITORS WERE ONLINE

• SUPPLIERS REQUIERED IT


BARRIERS and OBSTACLES To E-COMMERCE ADOPTION

Concern about privacy of data or security issues

• Customers do not use the technology

• Inadequate legal protection for internet purchases

• Finding staff with e-commerce expertise

• Costs of implementing an e-commerce site

• Making needed organizational changes

• Need for face to face customer interaction

• Business laws do not support e-commerce

Source: CRITO Global E-Commerce Survey, 2002

DIGITAL DIVIDE

Technological gap between individuals, families, firms and geographical areas in access opportunities to information and communication technologies and internet use.

International Digital Divide.

Users of Internet (%)

OECD Countries 80

Rest of the World 20

SOURCE: LATIN AMERICAN ASSOCIATION OF INTEGRATION

DIGITAL DIVIDE

Domestic Digital Divide

Households with access to tha Internet in USA (%)

Households with income over US$ 75.000: 77,7

Households with lower income 12,7


SIMPLE DIGITAL DIVIDE. FIXED PHONE LINES

-45.8

-42.1

-37.7

-34.5

-30.5

-30.1

-29.4

-50.0 -40.0 -30.0 -20.0 -10.0 0.0

Peru

El Salvador

Mexico

Colombia

Argentina

Brazil

Chile

2002

2001

2000


DIGITAL DIVIDE

SIMPLE DIGITAL DIVIDE. COMPUTERS

-34.2

-32.4

-31.8

-29.2

-28.5

-28.5

-24.8

-40.0 -30.0 -20.0 -10.0 0.0

El Salvador

Peru

Colombia

Brazil

Argentina

Mexico

Chile

2002

2001

2000


DIGITAL DIVIDE

SIMPLE DIGITAL DIVIDE. INTERNET USERS

-32.0

-32.0

-28.4

-27.3

-26.8

-25.4

-12.9

-40.0 -30.0 -20.0 -10.0 0.0

El Salvador

Colombia

Brazil

Perú

Mexico

Argentina

Chile

2002

2001

2000


DIGITAL DIVIDE

PURE DIGITAL DIVIDE. PHONE LINES. 2001

1,8

-4,7

-7,9

-8,4

-18,4

-29

-35 -30 -25 -20 -15 -10 -5 0 5

CHILE

BRASIL

COLOMBIA

PERÚ

MÉXICO

ARGENTINA


DIGITAL DIVIDE

PURE DIGITAL DIVIDE. COMPUTERS. 2001

2,1

0,9

0,7

0,3

0

-5,3

-6 -4 -2 0 2 4

PERÚ

BRASIL

CHILE

COLOMBIA

MÉXICO

ARGENTINA


DIGITAL DIVIDE

PURE DIGITAL DIVIDE. INTERNET USERS. 2001

12,3

8,8

-0,8

-1,2

-1,8

-3,3

-5 0 5 10 15

CHILE

PERÚ

BRASIL

COLOMBIA

ARGENTINA

MÉXICO


DIGITAL DIVIDE

ORIGINS of the DIGITAL DIVIDE

1.- LACK of INFRASTRUCTURE. (Fixed Phone Lines)

Size and distribution of Population

2.- GDP percapita and its DISTRIBUTION

DIGITAL DIVIDE


CAUSES OF DIGITAL DIVIDE

3.- USERS by PC

USERS for PC. 2001

2.4 2.39

1.5

1.050.74 0.72 0.64 0.53

0

0.5

1

1.5

2

2.5

3


DIGITAL DIVIDE

CAUSES of DIGITAL DIVIDE

4.- ACCESS COSTS

INTERNET ACCESS COSTS

8.08

5.26 5.174.54

3.2

1.650.65

0123456789


DIGITAL DIVIDE

SOURCE: WORLD BANK


5.- REGULAR EDUCATION

PCs per each 100 ELEMENTARY AND SECONDARY STUDENTS. (%)

4.78

3.41

1.49 1.23 1.641.02

0123456

1999

2000

DIGITAL DIVIDE

ACCEPTED PATENTS of INVENTIONS. YEAR 2000

5227

2285

1587

614

0

1000

2000

3000

4000

5000

6000

MÉXICO BRASIL ARGENTINA CHILE

In the same year : EU: 236.729 and Japón plus Korea: 160.836



6.- R&D

DIGITAL DIVIDE


7.- ATTITUD

– BY INSUFFICIENT INFORMATION

– DISTRUST-INSECURITY

– LACK of SUITABLE QUALIFICATION

DIGITAL DIVIDE

MSMEs% of TOTAL FIRMS : 90 to 99

% of GDP : 20 to 60

% of TOTAL EMPLOYMENT : 63 to76

% of EXPORTING FIRMS : 64 to 88.8

% of VALUE of the EXPORTS : 4 to 20


IN LATIN AMERICA

• THE EXPORTS OF MOST OF THE COUNTRIES OF LATIN AMERICA ARE CONCENTRATED IN THE GREAT COMPANIES

• THE EXPORTS OF MANUFACTURES ARE MADE BY GREAT COMPANIES WITH INTENSIVE TECHNOLOGIES IN CAPITAL

• The SMEs ARE STILL PRODUCING OF SUBSTITUTES OF IMPORTS and NonTRADABLES

MSMEsIn L.A.

% WITH INTERNET CONNECTION : 30 to 80

% WITH WEB SITE : 11 to 70

In Spain

% WITH INTERNET CONNECTION : 90

% WITH WEB SITE : 51.2


IT POLICIESMÉXICO.

PROSOFT in order to create the conditions to have an internationally competitive software industry.

• Promote exports and investments attraction

•Orientate exports promotion actions in niches with comparative advantage for the industry

•Education and competent personal training software development

•Develop the domestic market

• Identify the IT adoption level in economic sectorsSOURCE: MEXICO REPORT. CONSULTANT

IT POLICIES

MEXICO

•Develop the IT domestic market

•Creation of information technologies category in the National Award of Technology

•Promote the infrastructure construction and telecomunications

•Allocate IT initiatives on the federative states and business groupings for positioned the country’s IT industry as world class player

SOURCE: MEXICO REPORT. CONSULTANT

IT POLICIESCHILE. Digital Agenda. 2004-2006

Proposes that Chile will be a digitally developed country, or be ranked to level OECD member states in 2010.

Includes 34 initiatives, which can be grouped into six action areas:

• Acces

• Education and Training

• E-government

•Computerization of firms

•IT Industry

•Legal-normative framworkSOURCE: CHILE REPORT. CONSULTANT

IT POLICIESCOLOMBIA. Connectivity Agenda

Is the program of the Communications Ministry, in charge of impelling the use and massification of the ICT.

• On-line Government

• On-line Payments

• On-line Government Nationwide

• Integral System of Electronic Procurement

• Government Intranet

• Centralized System of Information Consultations

• National University NetworkSOURCE: COLOMBIA REPORT. CONSULTANT

IT POLICIESEL SALVADOR. Computer Science National Committee.

In charge to propose and to elaborate Policy proposals regarding computer science in the country.

Six main axes:

• Handling and administration of the information

• Education and formation of human resources

• Computer applications

• Infrastructure, interconnection and nets of data

• National computer industry

• Positioning of the technology sector of information in the economic and social development of the country.

SOURCE: EL SALVADOR REPORT. CONSULTANT

POINTS TO EMPHASIZE

I.- ICT.

1.- TO AMASS CONNECTIVITY And ACCESS.

Availability and costs of access. (Investment)

Operational costs (Maintenance)

Public policies in telecomunicaciones.Incremento investment in

fixed telephony.

Promotion to the development of new technologies of access

• Policies of financing, specially for Pymes. The great companies are connected. The Pymes, little.

• To increase public joining points to Internet. (Schools, Universities,Libraries, Unions, Centers of Social Concentration)

POINTS TO EMPHASIZE

1.- TO AMASS CONNECTIVITY And ACCESS

• To stimulate the investment in ITC.

• Implementation and use of ITC in Public Distributions

• Tariff Excenciones tributary and tax exemptions

• Incentives to the installation of accesses public in remote and depressed zones

POINTS TO EMPHASIZE2.- EDUCATION AND TRAINNING

DIGITAL ALPHABETIZATION

Investment in human capital has high rates of return

Increase of accesses in Schools and Universities

• To jeopardize industralists, unions, ONGs, mutuales, suppliers of local communications, telephone companies or of access to Internet.

• Special programs of Trainning for Pymes

• Special programs to learn use of services: payment of taxes, electronic vote, educational matriculations, cultural agendamiento, medical consultations, events, etc.

POINTS TO EMPHASIZE

2.- EDUCATION And TRAINNING

Programs of cooperation between Universities, Research

centers,Companies and Establishments of Primary and

Secondary Education.

POINTS TO EMPHASIZE

3.-GOVERNMENT ON-LINE

• Digital development of central, regional and municipal government

• Services online

• Licitations, contracts and purchases of the State

• Electronic proceedings

POINTS TO EMPHASIZE

4.- LEGISLATION

Creation of Normative Legal Marco that endorses and foments the development of the electronic commerce

• E-Contract

• Privacy

• Procedural Aspects

• Computer science Crime

POINTS TO EMPHASIZE

5.- DEVELOPMENT OF THE INDUSTRY ICT

• Promotion of R&D in ICTs

• Facilitación of the Foreign Investment

• Development of the exporting process

• Financing

• Securing of Quality

POINTS TO EMPHASIZE

6.- DIGITALIZACIÓN DE EMPRESAS

• Development of system of purchases of the State

• Means development of payment for e-commerce

• Electronic window of foreign trade

• Masificación of the electronic invoice

• Financing

POINTS TO EMPHASIZE

7.-. HARMONIZATION OF THE INFORMATION

• Definitions of SME XSME

• Definition of Indicators

• Handling and centralization of data

POINTS TO EMPHASIZE

II.- POLICIES OF ENTERPRISE DEVELOPMENT

GLOBALIZATION

1. Policy of Competitiveness: Promotion of Exports

Productive Promotion

ICT

2. Coordination between Organizations of Promotion

3. Coordination Organization of Promotion with private sector

POINTS TO EMPHASIZE


4. Highway towards the Export

Promotion Financing

ICTs R&D R&D

External markets

SUCCESS IN THE INTERNATIONALIZATION

FACTORS:

NETWORKING. INTEGRATED IN DYNAMIC PRODUCTIVE And SOCIAL SYSTEM At LOCAL LEVEL

(TO REACH SCALE ECONOMIES TO COMPETE WITH GE)

QUALITY OF PRODUCTS, PROCESSES And HUMAN RESOURCES (NOT TO COMPETE SINGLE BY PRICE And FOR COMPETITION OF HIGH PROFILE

FOR NICHES)

KNOWLEDGE And COMPETITIONS TO STRUCTURE The LOCAL ECONOMY (TO GENERATE GOODS OF HIGH ADDED VALUE, QUALITY And INNOVATIVOS)

POINTS TO EMPHASIZE

SYSTEM OF COMPANIES FOR THE WORLD

SYSTEM OF COMPANIES FOR LOCAL MARKET

ENTAILMENT

POLICIES

IT IMPLIES:

• TO FORTIFY NETWORKS DE SUBCONTRATACIÓN

• GREATER SPECIALIZATION And COMPLEMENTARINESS OF The SMEs

IN ORDER TO AVOID The DEVELOPMENT COUNTRY At TWO SPEEDS THAT The DIFFERENTIAL OF INCOME INCREASES, WEALTH And WELL-BEING

POINTS TO EMPHASIZEII.- POLICIES OF ENTERPRISE DEVELOPMENT

5. Direct Exporters v/s Indirected Exporters

POINTS TO EMPHASIZE


6. Horizontal Policies Sectorial Policies

THE COMPETITIVENESS IS NOT SINGLE HORIZONTAL.

IT IS IMPORTANT IN SECTORS And CLUSTERS

POINTS TO EMPHASIZE

III.- INTERNATIONAL COOPERATION

• CONVERGENCE

• TO SHARE SOCIETY OF THE INFORMATION

• INTERCHANGE OF EXPERIENCES

• INFORMATION

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