Information and communication technology (ICT)and decentralization

UNITED NATIONS

ECONOMIC AND SOCIAL COUNCIL

Distr.: GENERAL

E/ECA/DISD/CODL1/CRP10 28 June 1999

Original: ENGLISH ECONOMIC COMMISSION FOR AFRICA

First Meeting of the Committee on Development Information ICODI)

28 June-2 July 1999 Addis Ababa, Ethiopia

INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) AND DECENTRALIZATION

Information and

Communications Technology (ICT) and Decentralization

Dr Bob Day, CSIR/DACST

&

Nebo Legoabe, CSIR CODI Meeting ECA, Addis Ababa 28th June-2nd Julv 1999

DACST S&T development

Review of SETIs Audit

Foresight Innovation

The National Research &

Technology Foresight Project

Foresight: a powerful tool to influence, anticipate, but NOT predict the future.

Foresight: a process which brings together different communities e.g. academic, industry, government and civil society to investigate or assess how research and technology trends can best be utilised to generate economic and social benefits for the countrv and resion.

Foresight Methodology:

Proposal for Boundary Conditions

Aug97 -April 98 ■MM^^^^^^- July 99

Department ofArts. Culture. Science and Technology

Outputs ofForesight:

Inform S&T policy guidelines

ID funding priorities for publicly funded research Improve alignment between public and private sector Encourage greater R&D investment in government and industry

ID skills shortages in S&T, and action initiatives Focus capacity development in tertiary sector

Improve technology awareness & uptake in SMMEs

Department ofArts. Culture, Science and Technology

12 Foresight Sectors:

Agriculture & Agroprocessing

Biodiversity

Business and Financial Services

Information & Communication Technologies Mining and Metallurgy

Safety of Citizen and Society

Cross Cutters

■ Energy - Health

• Manufacturing

• Environment

• Tourism

• Youth

■Education / HRD / skills development

•Business development

•Value Addition/Beneficiation

Department ofArts, Culture. Science and Technology

1 ICT Sector:

ICT SECTOR Information/Knowledge

Society

ICT Industry

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= if!ware 7 = !ecommun>caiions

,'ANS 3 ucoly industry '-iternet & mlraneii Professional Services

'iieacn organisation

Knowledge proouaio

ICT Empowerment of Society/Economy

Privil« Public Socio-

3«etor Secior Economic

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Home Office

; ICT "wrihin' Oiganoalional orocesses. warning ...

CT 'wdriour : Services to cusIomera/slaKenolOerS ...

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Department ofArts, Culture. Science and Technology

ICT and Sustainable Development:

Is information an essential precursor and accelerator of poverty alleviation and wealth creation?

YES! If used to empower ALL individuals SO - need Information Equity:

- Market forces alone do not reduce the "haves" & "have- nots" gap - serve elites, even in developed world

- So - Government involvement/facilitation needed to kick start the Equitable Information Society

- Then - Allow market forces to enhance sustain ability once foundations for Equity have been established.

The Knowledge Society

New paradigm, emphasising the value of each human mind, rather than "automating their muscle".

Enabled by ICTs whilst simultaneously driving the development of new ICTs.

Information rather than energy intensive.

Sustained through networks, not single organisations.

Supports distributed rather than centralised intelligence.

Requires multiple skills and continuous learning.

Replaces life-time employment with labour market flexibility.

Customised rather than standardised products.

ICT and the Future - Impact OF Youth

Youth and ICT enhanced entrepreneurship Youth and the role of ICTs in SMMEs

Youth and the role of ICTs in the informal sector Youth and the sustainability of MPTCs

Youth and a South African

aames/edutainment/multimedia industry Youth and the global delivery of SA Cultures Youth and the early adoption/development of a South African Knowledge Society

Preliminary Feedback - Survey 1st Round:

High ranking (expert?) responses are "perceived wisdom"

- US influence?

Acquiring capability - very negative overall picture for local innovation & development. Lack of leadership from within ICT industry

Impression responses give is that only "indigenous" stuff can be developed here - all the rest (particularly hard technologies) should be imported

Analyse importance/relevance/impact of responses across all scenarios: What scenario(s) are respondents in?

Globally, SA's ICT is "not there yet" - so look for a few areas to establish world leadership;

Insights from Electronic Commerce Scenarios:

E-Commerce is VERY fragile. So. if we want it to be a (the?) major driver of the SA Information Society, all

sectors/stakeholders must collaborate and be sensitive (ongoing) to a wide range of issues. However, this is also an OPPORTUNITY, since even 1st world countries are struggling with the balance.

E-Commerce is very likely to work AGAINST our need for EQUITY - the marginalised get further left behind whilst the

•'haves" rush ahead.

Need for DYNAMIC BALANCE between national (even organisational) interests and the need for global involvement.

Need to adopt emerging knowledge paradigm at all levels of society. Growth driven by e-commerce is incompatible with the industrial paradigm:

- SB: Role ofthe YOUNG (over 30s struggle to adopt new thinking methods)

E-Commerce Definition:

The Internet/www has accelerated the transformation of global commerce, allowing for instantaneous, inexpensive contact among sellers, buyers, investors, advertisers, and financiers anywhere in the world.

Principle activities contributing to global e-commerce:

• Government services and information

• Business-to-business wholesale and retail services/sales

• Business-to-consumer retail sales/transactions

• Financial services and transactions

• Subscription & usage-based telephony, online, & internet access services

• Subscription or transaction-based information services & s/w sales

• Advertising and marketing services

E-Commerce - OECD Structure,

Building Trust

• Security - integrity & confidentiality of data transmissions

■ Privacy - protection of personal information

• Authenticity - transaction verification, fraud prevention

• Non-repudiabiiity - honouring transactions Establishing Ground Rules

• Taxation and duties

• intellectual property rights and domain names Enhancing Infrastructure

• ICT infrastructure

• Telecommunications market and pricing regulation

• Banking and financial services Maximising the Benefits

E-Gommerce:

Maximising the Benefits:

• Equity

• Ensuring Global Participation

• Labour Issues

• Economic Impact

• Government as "model user"

• Infrastructure Deployment

• Social Impact

• Skills Development

• SMMEs

• Community Information Centres (MPTCs)

Equity

Who are we maximising benefits for? Gap could widen Given history of social disparities, government needs to ensure policies which encourage ALL South Africans to use e-commerce for their benefit

A model similar to the USA might be applied to e- commerce, undertaking activities especially promoting e-commerce usage by poorest/most marginalised communities.

Ensuring Global Participation

E-commerce knows no boundaries. Balance needed between allowing restriction-free commerce to continue whilst protecting the national interests.

Encourage partnerships with international companies BUT maximise economic benefit (long term), and ensure skills & technology transfer.

Local ICT innovation needed to elevate Africa from consumer status to an attractive investment option.

Labour Issues

Some existing jobs, companies and industries will

disappear - replaced by individuals contracting out their skills for finite periods.

"Job"' concept belongs to industrial era - work will be performed without people filling conventional posts in conventional work places in conventional companies New role of unions to facilitate transition

Economic Impact

• Government and private enterprises must either "adapt

or die"

E-commerce will reduce the need for concentrations of

businesses in CBDs.

Marginalised people who previously were considered

"unbankable" will, via e-commerce and cheap infrastructure, dramatically expand the market

"Think-Tank" entity might provide invaluable analysis of trends, creating on-going wealth generating "early

response"

Government as "model user"

• Government should both facilitate the emergence of the knowledge society, and coordinate its "model usage" of ICT

• Procurement is an ideal area for government to play its

■'model user" role

Infrastructure Deployment

Government must encourage infrastructure roll-out from the private sector, including deregulation of the telecomms industry.

Encouragement of public/private partnerships, eg for roll-out, sharing of infrastructure, access to rare expertise.

Social Impact

E-commerce might accentuate break-up of classical family structures, and imbalances associated with individualism

Paradigm shift required to deal with electronic environment: eg impact of electronic money in rural areas?

Welfare issues do not appear to be well handled by the OECD

Skills Development

Shortage of 9000 ICT specialists over next 5 years (HSRC) - worsened by threat of brain drain.

Use of ICT to provide education and training should be more systematically exploited

Need for computer literacy and related skills, especially at primary level

ABET needed for E-commerce, including women.

Opportunities for new avenues of employment for disabled opened up by e-commerce.

SMMEs

Global phenomenon of the emergence of a large number of Micro-enterprises doing knowledge work

The right business skills should be provided by the education systems to enable people to establish micro-

businesses

Community Information Centres (MPTCs)

Multiple services, shared point of delivery, eg business, health, education, financial services ...

E-commerce is likely to be a major factor in the sustainability of MPTCs

Making a wide range of social welfare services available to rural areas

Everyone (except the blind) is visually capable - therefore e-commerce applications should have non textual interfaces

MPTCs:

1 Stop community development center:

- community participation - needs linked with services - introduce ICT in communities

Vision:

- Empower the poorest and disadvantaged by providing access to information

- Ensure participation in the Global economy

Objectives:

- Community information & service center - Govt. service & information center

- Support SMME and Local Economic Development - Training and capacity building

Citizens* Services

Economic Arena

Development Environment

rtt

ICT Support

Socio-political Arena Economic Arena

"Smart"

Development with ICTs

■ computers

•ABET

■business skiI Is

■life skills, etc.

MPTC

Internet Cafi

■Internet

•e-mail

Content

*■ -creation i co-ordination

■Government

■youth

■SMME/Job info i

i

■computers

•ABET

•business skills

■life skills, etc.

Various Models:

Tele-shop

telephones & messages

Mini-teiecentre (Business in a box)

telephone, fax. copier, scanner, printer, PC

Standard Telecentre

incorporates Mini-teiecentre, with 2-more PCs Internet & e-mail

PMCC

incorporates Standard telecentre with information provision &

training

linked to other multiple services (especially govt. deps)

Tele-hub

Main telecentre and satellites

MPTC: Key Elements 1

Physical infrastructure - school library, church....

ICT Infrastructure - Connectivity - S/W, H/W. W/W Content

- government, community, business. NGOs, etc.

Services

- Telecentre (phone, fax, copier, word processing..) - Internet and e-mail

- Community information

MPTC: Key Elements 2

Services

- Telecentre (,phone. fax. copier, word processing..) - Internet and e-maii

- Community information

- Community media: radio, newspaper, directories, etc - Advice & referral

- Education &. training - Video-conferencing - SMME support - Job information - Tourism - Government - Entertainment - Advertisement - (Teiemedicine)

Integrated Local Support U

a. Advice b. Transactions tmoney and non-

raoney)

Training Services:

a. Human Facilitation b. Computer Literacy c. Computer Assisted Learning (CAL) Financial Services:

a. Account Settlement b. Electronic Commodities

c. Catalogue Shopping d. Micro-iendine Information Services:

a. Inbound b. Outbound c. Classifieds (Jobs Skills)

Research Services:

a. Planning Data b. Execution Data Basic 1CT Services:

a. Connectivity Services (Phones. Fax. E-mail.

Inei)

b Computing Services (DTP. copying) Infrastructure Services:

a. Postal Services b. Physical Advertising c. Incubation Facilities e. Retail Distribution.

SA Initiatives:

Various government departments

- SAPS. DTI. Ntsika. Dept. of Communication (Post Office. Telkom. USA) DACST, Dept. of Sports &

Recreation. Provincial Governments

Telematics for African Development Consortium

- CSIR. HSRC, NGOs. CBOs. Private Sector, educauonai institutions, government departments

International Donors/Punders - IDRC. Unesco, World Bank. UNDP

National information Technology Forum - National Studv on MPCCs

Challenges 1:

Sustainabilitv

- Champions - Good facilitators - IT technical skills - Working technologies - Technology transfer - Accessible location - Relevant needed services

- Partnerships with other stakeholders - Low running costs

- Good management

Challenges 2:

Job creation

- linking with other business initiatives

design/IT maintenance/ software development)

- e-commerce

- wealth creation in communities

Services

- actual delivery by government and service organisations

Role ofLocal Government:

To the communities - Service delivery

- Promote safe & healthy environment - Transparency & good governance - Local Economic Development

- Encouraae involvement of communities in matters of

local government

- 2 way information flow To internal structures

- Training and capacity building - Fair labour practices

-■ Good administration systems and services

MPTCs and Decentralisation:

MPCC

- 1 Stop Shop service delivery platform

- content aeiivery platform in VARIOUS communities - Interactive information & communication deliver}'

platform- (government, business, service providers and

communities)

- Communities create

• information

• businesses

• services

- Communities are connected