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Information and Communication Technologies in International Trade, Investment and Sustainable Development

-- a Commonwealth Perspective

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Information – a new Resource

The important role that information now plays in the global society has led many to regard it as the most important national resource which any country can apply to its own development. In a recent paper authored by Harland Cleveland, a former US Ambassador to NATO and President of the University of Hawaii, it is suggested that the world tends to regard this new resource, information, in the same way that it has regarded tangible resources or things such as property, money and raw materials. Dr. Harland argues that information is not a commodity with physical properties, and that it displays unique properties that need to be specially recognized. He proposes the following differences:

  • information expands as it is used; it tends towards glut and not scarcity

  • as information expands it is less hungry for other resources than were the earlier engines of economic growth

  • information is substitutable – it can replace land, labour and capital

  • information is readily transportable – makes remoteness a matter of choice

  • information is porous – it leaks

  • information is shared, not exchanged – the message delivered from the seller to the buyer, also remains with the buyer

  • Thus, the very essence of information as a resource offers both new prospects and new concerns to any society that proposes to harness ICTs in its determination to obtain maximum benefit from their application. For example, the Malta Workshop addressed the issue of the protection of privacy in the exchange of data. Societies need to be aware of the tendency for information to leak and must define procedures and regulations that inhibit such leakage. Another important concern arising from both leakage of information and its tendency to glut, is the impact such massive amounts of information can have on the cultural imperatives of a society. Governments may need to provide regulations that safeguard them against those elements in the tidal wave of information, which threaten unique cultural and linguistic characteristics.

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    Delegates also recognized that if ICTs are to be widely applied in support of sustainable development, the nation must provide for universal open access. Such universality is critically dependent on an effective telecom infrastructure. Unfortunately, a reliable telecom infrastructure does not exist in all countries, and where it does exist, as was emphasized in the presentation by Commonwealth Telecommunications Organization (CTO), its financial strength may be challenged through the introduction of competitors through liberalization and the increasing downward pressure on international settlement rates. Given the importance of an effective infrastructure, the delegates agreed that emphasis within the Commonwealth needed to continue to focus on the improvement of such basic services. In that regard, they welcomed the important role played by the CTO in training and capacity building of national telecoms.

    Nevertheless, the introduction in the very near future of global satellite-based mobile telecommunication services offers the opportunity to those countries with weak land-based telecom infrastructures to leap-frog ahead. Adding to this the fact that prices for both hardware and software for the application of ICT continue to diminish, most countries in development have a major window of opportunity to put information and communications technology to work for their sustainable economic development.

    It was recognized by all of the delegates that any nation which failed to join in the application of ICTs would be applying a form of protectionism which would so severely limit their access to the world economy and the benefits of global commerce, that they would be doomed to economic stagnation – a form of slow suicide. The danger remains that the world will be divided into haves and have nots, not because of access to natural resources or industrial capital, but because of a lack of access to information, and to an ability to communicate with others in the global marketplace. The responsibility to guard against this development remains with national governments, who must undertake as a priority, to develop the required models for development of both infrastructure services and the application of information and communications technologies, which are appropriate to their country. The Commonwealth is in a unique position to assist in the support of such national efforts through the provision of shared experiences and the development of best practices.

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    Returning to the primary focus of the workshop, it was noted that even with the best telecom and ICT infrastructure in the world, unless the national business enterprises, acting as the engines of the economy, fully participated in the application of information and communication technologies to their own business, its availability would result in little benefit to the nation. The workshop reviewed several important applications of information and communication technologies as they affect trade and investment promotion. These included such items as:

    • open access to public services by the government sector

    • dissemination of procurement opportunities from both public and private sector

    • display of market and trade information for business purposes

    • provision for the matching of business opportunities.

    • development of new electronic information commodities, such as specially prepared databases offering analysis of statistical information

    • completion of trading and business transactions, including EDI and actual electronic commerce including payment

    Most critical in this regard would be the involvement of small and medium enterprises (SMEs) since they formed the largest employment sector in most countries, and offered the best hopes for job creation and poverty alleviation. Yet, it would be the SMEs that would be most difficult to enroll, since their financial and human resources are always stretched, and their focus exclusively on what would serve the interests of their business and not on a perceived national benefit. The attraction of such enterprises to the application of ICTs would require extensive promotion and training, would likely require the involvement of those associations or chambers which serve the sector, and would be assisted by the development of new approaches to the delivery of ICTs. Commonwealth assistance in these activities should be supported and encouraged.

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