-- a Commonwealth Perspective
Qawra - 21 May 1997

Ladies & Gentlemen,

Distinguished Visitors and Speakers,

When they meet in Edinburgh next October, the Commonwealth Heads of Government will have as their main focus "Trade, Investment and Sustainable Development". Broad issues such as investment-promotion, political stability and the development of human resources will no doubt feature prominently in their deliberations. There is no single development, however, that is likely to be as significant as the diffusion of Information and Communication Technologies (or ICTs). These technologies are clearly becoming the conduit for all human endeavour, from managing the utilisation of scarce resources to the development of the person and the generation of economic activity.

The backdrop of political and economic relations is increasingly multi-faceted and complex as we continue to evolve, individually and collectively, in a networked "milieu". ICTs help us keep pace with this complex reality. Our challenge now - as the pace accelerates - is to avoid an increasing divide between "the haves and the have nots" - in all contexts, whether international, regional or local.

The Commonwealth itself, notwithstanding on-going collaborative programmes and much donor activity, reflects this divide, with some countries, having harnessed ICTs, distancing themselves at an ever-increasing pace from the less-developed. Perhaps for the first time, however, the latter have within their grasp the potential to leap-frog generations of inappropriate development. Much trial and error. Initiatives such as the Africa Information Society Initiative - sponsored by the United Nations - and the joint ITU and World Bank rural telecentres programme are steps in the right direction. Donor action needs to be complemented by adequate brokering and project-oversight mechanisms which are also required.

In our need to co-ordinate development programmes and rationalise efforts, we need to promote strategic partnerships between the various players. Amongst these one can include, in the context of this Workshop, Commonwealth organs such as the Export and Industrial Development Division in the Commonwealth Secretariat and COMNET-IT as well as others such as the network promoted by the International Bureau for the Chambers of Commerce, the G77 Trade Information Network and the U.N. Trade Point Programme. Indeed, there seems to be no shortage of like-minded international initiatives and donor-programmes.

Even within a single country, the application of ICTs to Trade activity involves a number of stakeholders such as Government Ministries, Trade Promotion Organisations, Industry and Commerce associations and financial institutions. Clearly, development agencies and developing countries need guidelines, possibly articulated within Development Models that might address such matters as business and trade applications, and the resultant transition and migration strategies, standards, funding-mechanisms and partnerships.

Faced with a plethora of significant considerations, as well as technical and legal issues, the appropriate Commonwealth agencies will hopefully find the wherewithal to fund the cultivation and promotion of appropriate development and infrastructure services models. Amongst the issues that need to be factored into these models are the notion that Governments must reconcile themselves with the need to accept a decline in telecommunication tariffs to stimulate an economic activity that is increasingly information-based; similarly, the notion that protectionism as a long-term strategy is detrimental to the very sectors it is designed to safeguard.

Also, that Governments need to use their purchase-power to leverage open-access connectivity to avoid getting locked into de facto supplier-standards. In its own modest way, Malta remains committed to a continual renewal of its National Strategy for Information Technology and to its Public Service IT Strategy. The Public Service remains a key component in sustaining the country's economic well-being. Indeed it has been said that a country's private-sector profitability is the barometer of its public-service effectiveness and efficiency.

We too, are searching for the right development model to take us along this path to economic well-being. Multi-disciplinary approaches are being sought that entail Trade facilitation, Regulatory overhaul, "One-stop" or "Single-window" access for citizens and enterprise; concepts of "service anytime, anywhere", compatible infrastructures, information standards, technology standards and legal issues. We are but a small player on the global stage.

Collectively, the fifty three Commonwealth Countries with a 1.6 billion population, will have a significant impact on shaping the new global order. Such is the magnitude of our task and responsibility.

Markets, however, do not create themselves. They are shaped by the institutions and policies of the society in which they operate. Whilst Governments are engaged in creating the competitive environment needed to stimulate private sector investment in the infrastructure, entrepreneurs need to focus on content, services and applications - especially in relation to the Internet - so that the enabling effects of the Information Highway can be translated into economic benefits. Amongst these initiatives, the activity of Small to Medium Enterprise deserves special mention.

In many countries, SMEs represent a cornerstone of the economy. Given this overwhelming influence - whether real or potential - it is imperative that we nurture these firms. Small and medium-sized enterprises have in recent history enjoyed the benefits of significant events such as the advent of free trade agreements, computer technology and now the arrival of cyberspace. The laying of railway tracks during the industrial revolution answered a need to unify countries and markets and offered a means of transportation in an era where manufacturing and natural resources dominated our economies.

Today, the information highway facilitates and speeds up communication and, like the railway, will aslo provide a means of transportation in an era where information drives an increasing proportion of our economies.

By virtue of their very size, SMEs enjoy crucial advantages over their larger competitors, most notably that of flexibility. They are leaner and innately flexible. At the same time, consumer tastes have undergone a transformation, moving away from mass-produced uniformity to more personalised and differentiated products. Within this arena, SMEs enjoy an inherent advantage since they can flexibly adapt to, and satisfy demanding consumer needs and wants, including the demand for improved customer service.

Buttressing the benefits of this innate advantage of SMEs are the huge transformations characterising the modern economy. Firstly, the dissolution of trade barriers facilitates the access enjoyed by SMEs to foreign markets, which, prior to their removal, were virtually insurmountable except to the largest of corportations. Secondly, new technology and, equally important, the plummeting cost of technology advances, have contributed to eroding the advantages of economies of scale enjoyed by the larger corporations. Also, the advantages of the information highway are significantly more accessible to SMEs than are proprietary networks.

The information highway will provide SMEs admittance into a world of heretofore impenetrable possibilities. No longer does a proprietary computer network with a link to customers offer competitive advantage, because everybody is already connected. Instead, proprietary networks become a disadvantage, forcing the builder to bear all costs, without taking advantage of the investments made by others. There is abundant evidence that the ability of SMEs to target well defined markets and to respond flexibly with personalised services utilising "public-domain technology" accounts for their growing share of the Gross Domestic Product of countries.

Ladies and gentlemen, that manifestation of ICTs called the Information Highway is going to profoundly affect every one, even people who have never used computers, never will and never even want to. The area of Trade, Investment and Development is no exception; indeed it is amongst the primary impact areas. I would like therefore to capture the salient points and challenges resulting from this workshop.

You have heard about the Global Information Infrastructure initiative ascribed to Al Gore's vision at the Buenos Aires world ITU forum. I would submit that a Commonwealth Information Infrastructure is a major component in this global vision. It is therefore incumbent on Commonwealth Countries to mobilise their efforts in mapping out appropriate models of development and strategic collaboration to guide these efforts, co-ordinate activities and rationalise resources.

In the particular domain of Trade and Commerce with which we have been concerned this week, there is much scope for strategic alliances between Commonwealth players such as the Commonwealth Secretariat's Export and Industrial Development Division and COMNET, as well as global players such as related U.N. initiatives and international business networks embracing Chambers of Commerce and Trade Promotion Organisations.

The relevant Commonwealth organs can make an explicit contribution by factoring the many diverse initiatives, opportunities and issues into articulated development and infrastructure services delivery models. This can be followed by awareness-building, promotion of these models with policy-makers and key stakeholders, and by the brokering of expertise. We also look forward to tangible support and funding of innovative projects that can serve as a blueprint for aspiring economies. In this regard, I look forward to receiving the policy recommendations emanating from this workshop.

And now, whilst declaring the workshop closed, let us recognise that the ongoing dialogue and partnerships still remain very much open.