enhancing ict development and connectivity for the landlocked...

UN-OHRLLS

Enhancing ICT development and connectivity

for the Landlocked Developing Countries

Issues Note and Chair’s Summary Adopted at the Thematic

Meeting held as part of the preparatory process for the

Comprehensive 10 Year Review of the Implementation of the

Almaty Programme of Action on 31st October 2013, in Nairobi,

Kenya.

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ii

Note

This publication contains an issues note on Enhancing ICT Development and

connectivity for Landlocked Developing Countries and the Chair’s Summary Adopted at

the Thematic Meeting on Enhancing ICT development and connectivity for the

Landlocked Developing Countries Held on 31st October 2013, at the United Nations

Conference Centre, Nairobi, Kenya.

The views expressed therein do not necessarily reflect the views of the United Nations.

iii

CONTENTS

Issues Note on Enhancing ICT Development and connectivity for Landlocked

Developing Countries ……………………….…………..…………………………....

1

Chair’s Summary Adopted at the Thematic Meeting on Enhancing ICT

development and connectivity for the Landlocked Developing Countries Held on

31st October 2013, at the United Nations Conference Centre, Nairobi,

Kenya………..………………………………………………………….........................

38

1

Issues Note on Enhancing ICT Development and connectivity

for Landlocked Developing Countries

I. Introduction

Geographical factors put Landlocked Developing Countries (LLDCs) at a distinct

disadvantage in the development process as they incur substantially higher transport and

other trade transaction costs when compared to coastal countries. The higher trading costs

for LLDCs emanate from factors associated with the status of the physical infrastructure

of the major transit routes for transporting their traded goods such as poor and inadequate

transport infrastructure and long distance from the sea port; and costs associated with the

soft infrastructure which comprises of the administrative border crossing procedures,

transit procedures, logistics and regulatory and legal systems for permitting passage of

traded goods across borders.

There are studies which have shown that landlockedness reduces GDP growth in these

countries by about 1.5 to 2 percent annually (for example see MacKellar et. Al 2000).

According to the World Bank 2014 estimates, LLDCs spent, on average, $3,203 to export

a standardized container of cargo, against $1,287 for the transit countries; and $3,884 to

import a similar container of merchandise compared to $1,602 incurred by their coastal

neighbours. That means it is 2.5 times costly to import and export for LLDCs. These high

transport and trade transaction costs, diminish export profits, inflate the prices of

imported inputs for manufacturing and discourage investment thereby negatively

affecting overall sustainable development in LLDCs. A recent study conducted by UN-

OHRLLS shows that the LLDCs as a group only exported 61% of the trade volume of the

representative coastal economy in 2010. The study also shows that the cost of trade and

transport services in LLDCs have increased over time. The study indicates that because

of landlockedness, the level of development in the LLDCs is, on average, 20% lower than

what it would be if the countries were not landlocked.

The First International Ministerial Conference of LLDCs, Transit Developing Countries

and Development Partners held in Almaty, Kazakhstan in 2003 adopted the Almaty

Programme of Action (APoA) which is a partnership framework to address the special

needs and challenges faced by the LLDCs. The priorities of the APoA include:

Fundamental transit policy issues, Infrastructure development and maintenance;

International trade and trade facilitation; International support measures, and

Implementation and review.

Some considerable progress has been made in the implementation of the priority areas of

the APoA, however, much more needs to be done to achieve the aim of the APoA and

better integrate LLDCs into the global trading system. Some of the achievements

accomplished since 2003 include development and modernization of infrastructure,

construction of dry ports, telecommunications and energy infrastructure along transit

routes; elimination of physical barriers to trade; introduction of one-stop border points

2

and single window systems; trade facilitation; joining regional and sub-regional

infrastructure programmes; signing of bilateral port and road agreements; and

streamlining of customs and border services. Economic and social development

indicators have improved during the implementation of the APoA despite large

differences among individual LLDCs. According to the 2013 report of the Secretary

General on the implementation of the APoA, LLDCs as a group experienced an

improvement in annual growth of GDP from about 5 per cent to about 6.5 percent

between 2003 and 2011. However, this growth decreased to 4.9% in 2012. Although the

group of LLDCs have improved their trade, they only account for 1.2% of total world

trade showing that they are still marginalized from the global markets.

On the social front, although significant gains have been recorded in several MDGs,

including primary education, gender equality, combating the spread of HIV/AIDS and

increasing the proportion of people with access to improved water source, many LLDCs

are lagging behind other groups in achieving food security, eradicating poverty and

reducing child and maternal mortality. Nearly two-thirds of the LLDCs have a GDP per

capita that is below $1,000.

The LLDCs continue to face combined adverse effects of landlockedness, structural

constraints and newly emerging challenges such as the global economic and financial

crisis, compounded by the negative impacts of climate change, desertification, land

degradation, drought and food crises. Persistent challenges faced by LLDCs include

limited productive capacities, declining value addition in manufacturing and agriculture,

and heavy reliance on undiversified primary commodities. These challenges render the

development process more difficult, impede integration of LLDCs into the global trading

system and into value chains and negatively affect their economic development. Thus

much more needs to be done to significantly reduce the trade transaction costs incurred

by LLDCs, enhance their productive capacities, improve their competitiveness, and

generate higher levels of economic growth needed to promote inclusive and sustainable

development.

Information and communications technologies (ICTs)1 can contribute towards addressing

these challenges and increased economic growth in LLDCs by improving trade

facilitation, increasing productivity across all the other sectors and lowering costs and

facilitating access to services, notably in administration, education, health and banking.

However, in order to enhance the role of ICTs in accelerating the development of LLDCs

it is important to critically analyze the status and performance of ICT development in

LLDCs, identify the challenges and suggest some recommendations. This issues paper

reviews the status of ICTs and identifies important issues and recommendations for

consideration in the development of the new development agenda for LLDCs. Following

1 ICT comprises a complex and diverse set of equipment, infrastructure, applications and

services, used to produce, process, distribute and transform information. It includes

mobile telephony, fixed telephony, personal computers, internet, broadband, tv, radio,

etc.

3

this introduction, the next section highlights the areas where ICTs can help address the

special needs of LLDCs. Section 3 presents the status of ICT development in LLDCs and

major challenges. Section 4 suggests recommendations to enhance the role of ICT in

fostering development in LLDCs.

II. Key areas in which ICT can address the special development

needs of LLDCs

ICT can play a major role to address the challenges facing LLDCs. An attempt has been

made to visually show the challenges faced by LLDCs and how ICT can address these

constraints in figure 1.

ICT can help to achieve fast, reliable and efficient transit transport systems in LLDCs

which are necessary to reduce the high trade transaction costs that they face and improve

their competitiveness. While the average number of documents and time for LLDCs to

export and import has decreased between 2006 and 2014 – it is still much higher for

LLDCs when compared to transit countries. According to the World Bank’s Doing

Business 2013 Report, the average number of documents that LLDCs take to export have

decreased from 9 in 2006 to 8 in 2014 whilst for importing from 11 to 10. The average

time taken by LLDCs to complete export formalities has decreased from 48 days to 42

and to import from 57 to 47 days. However when compared to transit developing

countries where the average days to export is 22 days and 27 days to import, the LLDCs

need to do more to reduce delays in exporting and importing.

The broad application of ICT in reducing paperwork, customs clearance, border crossing,

tracking of shipment that is in transit would have a major role to play to reduce delays in

border and transit procedures and formalities, reduce trade transaction costs, and promote

further international trade. The use of ICT in terms of e-payments would assist in trade

facilitation by eliminating the need to use cash in payments of customs duties, taxes and

fees and reduce time at borders and unnecessary costs. Use of the Single Window

Concept and the Automated System for Customs Data (ASYCUDA) which use ICTs

have greatly improved customs clearance and procedures. This result in improvement in

efficiency and competitiveness of LLDCs’ exports which is crucial for enhancing their

export performance and thereby improved economic growth.

In industry and other business activities, ICT can increase competitiveness and

productivity through more efficient production of goods and services, logistics and new

business processes resulting in higher outputs. ICT can stimulate upstream capacities

(research and development, product design, application development) as well as

downstream services (logistics, transportation, etc). Thus increased ICT use in industry in

LLDCs can improve efficiency and boost GDP growth. According to analysis by the

ITU, improved affordable broadband access to the internet to both households and the

private sector could increase GDP by 1.5% per year. Fuss et. al estimated that when

internet penetration rises by 10 per cent in developing economies, it correlates with an

incremental GDP increase of between one and two per cent.

4

Figure 1: Conceptual links between landlockedness, sustainable development and

the role of ICT

ICT can also improve the LLDCs’ capacity to participate in international trade through

increased trade in services, particularly information-intensive services. Examples of such

CHALLENGES Long distances to sea ports Dependency on transit countries Remoteness from markets Inadequate physical/hard infrastructure Additional border crossings Logistical and institutional bottlenecks High trade costs

DIRECT AND INDIRECT IMPACT Low trade potential Poor economic growth Poor productive capacities Lack of diversification and high

commodity dependence Lack of resources to invest in social and

environmental pillars of development

High vulnerability to shocks

NATIONAL LEVEL OUTCOMES Increased trade and income Increased productivity Increased human development (education, health) Increased productive capacities Poverty reduction and increased sustainable development Increased resilience to shocks including climate change

IMPROVED TRADE FACILITATION Reduce documentation at border crossings

Paperless and quicker transactions and payments

Improved customs procedures

Reduces risks and uncertainties

Cargo tracking

Reduced trade costs

Increased competitiveness

INCREASED TRADE IN SERVICES Facilitates trade in services, esp.

information-intensive services

INCREASED TRADE IN IT COMPONENTS Join relevant global value chains

ICT SUPPORTING BROADER SUSTAINABLE DEVELOPMENT Use of ICT in all sectors: commerce,

agriculture, industry, health, education, environment etc

Enhancing entrepreneurship – SMEs

Attraction of foreign direct investment

ICT AS AN ENABLER FOR

DEVELOPMENT IN LLDCs

LANDLOCKEDNESS

5

services include various customer services, education, medical transcriptions, tax returns,

web design etc. Production and sale of IT components can also contribute to increased

trade capacity of LLDCs since production of these components are less or not sensitive to

transport costs. Thus LLDCs could join global value chains through their ICT-producing

industries. E-commerce presents an unparalleled opportunity for LLDCs as it lowers the

entry point to emerging global and regional markets by connecting buyers and sellers

mainly through the Internet. However, an effective and predictable trade and transport

system, together with an efficient ICT infrastructure, is a prerequisite to successful e-

commerce development.

ICTs can also play a major role in the broader development of LLDCs since they are well

known to be powerful instruments for advancing economic and social development

through the creation of new types of online and offline activities, economic activities,

employment opportunities, education and training, improvements in delivery of health-

care, education and other services, and the enhancement of networking, participation and

advocacy within society. With 3G devices, doctors are remotely monitoring cardiac

patients in rural villages and children everywhere can access educational content in and

out of the classroom, 24 hours a day.

The use of ICT provides positive externalities, enhancing creativity, learning and

problem-solving skills. For many people, their first and only access to the Internet will be

via a mobile device. Such connectivity, combined with low-cost but advanced devices,

provides unprecedented opportunities to empower individuals across society. According

to the UNCTAD, The Information Economy Report 2010, micro-entrepreneurs in many

developing countries including LLDCs are quickly adopting mobile phones to access, for

example, market price information and weather forecasts, transfer funds, pay bills and

save money as well as to stay in touch with suppliers, customers, friends and family and

this greatly improves work productivity.

6

III. Overview of the trends in ICT development in LLDCs

Significant progress has been made in the last decade in the development of the ICT

sector in LLDCs. However despite the progress, a significant digital divide still exists

between the LLDCs and the other groups of countries (the developed and transit

developing countries). Much more needs to be done to fully harness the potential of ICT

to support development in LLDCs.

National ICT and Broadband policies

All of the LLDCs have formulated national policies on ICT development as shown in

table 1. National ICT and Broadband policies 2

provide the necessary policies and a

framework for their implementation with clear goals. Effective ICT plans are the result of

consultation with all stakeholders including academia, business sector, industry and

NGOs. The ICT plan is essential to clearly indicate development of the ICT sector itself

and its role in fulfilling the larger development needs of the country through its

application in other sectors such as education, health, government, business, and industry.

Since the ICT plan is vital for unleashing the full potential of ICT for development, it is

important for countries to review and update their national ICT plans that so that they can

take into account the changes in the industry and ensure that the plan clearly support the

development of the necessary infrastructure, institutions and regulatory framework.

Effective implementation of national ICT and Broadband policies by the LLDCs is

affected by several challenges including: lack of adequate resources to implement;

limited coordination; lack of supportive infrastructure (ie. electricity), and limited skilled

personnel. It is important for that the international community supports the LLDCs to

address these challenges.

Table 1. Status of National ICT and Broadband policies in LLDCs

Country

Policy

available Year

Adopted

Title Afghanistan Yes 2008 Afghanistan National Development Strategy: 1387 – 1391

(2008 – 2013)

Armenia Yes 2008 Government of Republic of Armenia Decree No. 35 on

Approving the Information Technology Sector

Development Concept Paper

Azerbaijan Yes 2003 National Strategy for ICT development of the Republic of

Azerbaijan (2003-2012)

Bhutan Yes 2008 National Broadband Master Plan Implementation Project

Bolivia Yes 2007 National Plan for Digital Inclusion 2007– 2010

Botswana Yes 2004 Botswana’s National ICT Policy

Burkina Faso Yes 2006 Lettre de politique sectorielle 2006-2010

Burundi Yes 2011 Burundi/ ICT : National Projects for Broadband

Connectivity Burundi Community Telecentre Network

Central

African Rep

Yes 2006 Politique, Stratégies et plan d'actions de l'édification de la

Société de l'Information en République Centrafricaine

Chad Yes 2007 Plan de développement des technologies de l’Information et

2 Can also be referred to as national e-strategy and national ICT strategy.

7

Ethiopia Yes 2005 ICT Policy

Kazakhstan Yes 2010 Program of ICT Development

Kyrgyzstan Yes 2003 The National Strategy on Information and Communication

Technologies for Development of the Kyrgyz Republic

Lao P.D.R. Yes 2009 National ICT Policy

Lesotho Yes 2005 ICT Policy for Lesotho

Malawi Yes 2003 An Integrated ICT-led Socio-Economic Development

Policy for Malawi

Mali Yes 2005 National ICT Policy and Plan

Moldova Yes 2010 Hotărâre cu privire la aprobarea Programului de dezvoltare

a accesului la Internet în bandă largă pe anii 2010-2013

Mongolia Yes 2011 National program on Broadband Network up to 2015

Nepal Yes 2000 Nepal Information Technology Policy

Niger Yes 2005 Plan de développement des Technologies de l’Information

et de la Communication au Niger / Plan NICI du Niger

Paraguay Yes 2011 Paraguay 2013 Conectado y Plan Nacional de

Telecomunicaciones - PNT

Rwanda Yes 2006 Regional Connectivity Infrastructure Program (RCIP)

Swaziland Yes 2007 National ICT Policy.

Tajikistan Yes 2003 State Strategy on Information and Communications

Technologies for Development of the Republic of

Tajikistan.

TFYR

Macedonia

Yes 2005 National Strategy for the development of Electronic

Communications with Information Technologies

Turkmenistan Yes 2003 Strategy of economic, political and cultural development of

Turkmenistan for the period till 2020

Uganda Yes 2009 Uganda Broadband Infrastructure Strategy National

Position Paper

Uzbekistan Yes 2002 ICT development programme for the period 2002-2010

Zambia Yes 2006 National Information and Communication Technology

Policy

Zimbabwe Yes 2005 National Information and Communication Technology

Policy Framework Connection to the undersea cable

initiatives promotes broadband usage

The Broadband Commission for Digital Development, 2013, Planning for progress: Why

national Broadband Plans Matter, and Various Government reports from internet.

Structure of the ICT sector The ICT regulatory framework should foster investment and widespread diffusion. ITU

analysis3 shows that there is extensive evidence of a strong correlation between opening

markets to competition and the increase in the number of subscriptions to ICT services.

The exponential increase in the growth of mobile subscriptions and broadband services

was a direct result of opening up the markets to competition.

Table 2 shows that the mobile and broadband internet services have been opened up for

competition in most of the LLDCs. However, foreign ownership of services is restricted

in 12 of the LLDCs and in 60% of the countries, the government is still the operator for

the telephone fixed line.

3 ITU, 2010, Regulatory News, May 2010.

8

A World Bank policy research paper by Borchert et. Al. 2012, stressed that it is important

for the LLDCs to be less restrictive in the ICT sector but instead they should encourage

increased private sector investment and access to telecommunication services.

Table 2. Structure of the ICT Sector in LLDCs

Main

Telephone

Fixed Line

Operator

Mobile

Telephone

Service

Internet

Service

Foreign

Ownership

2005 2011 2005 2011 2005 2011 2005 2011

Afghanistan Public Public PC PC PC PC A A

Armenia Mixed Mixed PC PC C C A A

Azerbaijan Public Public PC PC C C R R

Bhutan Public Public M C PC C R R

Bolivia Private Public C C C C R No

Botswana Public Public C C C C A A

Burkina Faso Public Mixed C PC C PC R R

Burundi Public Public C C C C A A

Central African

Republic

Mixed Mixed C C C - - -

Chad Public Public C - C C A R

Ethiopia Public Public M M M M No R

Kazakhstan Mixed Mixed C PC - C - R

Kyrgyz

Republic

Mixed Mixed C C C C R R

Lao PDR Public Mixed PC PC PC PC R R

Lesotho Mixed Mixed C C C C A A

Macedonia

FYR

Mixed Mixed C C C C A -

Malawi Public Mixed PC PC PC PC R R

Mali Public Mixed P P C C - A

Moldova Public Public C C C C A A

Mongolia Mixed Mixed P P C C R R

Nepal Public Mixed P C C C R A

Niger Mixed Mixed C C M M R R

Paraguay Public Public C C C C R A

Rwanda Mixed Mixed C C C C - A

Swaziland Public Public M M C PC No No

Tajikistan Mixed Mixed - - - - - -

Turkmenistan Public Public C C - - - -

Uganda Mixed Mixed PC C C C A A

Uzbekistan Public Public C C - - - -

Zambia Public Mixed PC C PC C R R

Zimbabwe Public Public C PC C C R R

Source: World Bank and ITU, 2013, “The Little Data Book on Information and Communication

Technology”

Notes: (a). Level of competition: C – competition; PC – partial competition; M – monopoly.

9

(b). Foreign Ownership: No – not allowed; R – restricted; A – allowed.

Fixed-telephone subscription

The growth in traditional telecommunications – fixed-telephone users has been relatively

low in LLDCs. LLDCs have a significantly lower level of subscriptions per 100

inhabitants when compared to both developed, and developing countries and the world

average as shown in Figure 2. In the past decade however, while the other groups have

started to decrease the number of subscriptions, the LLDCs as a group has witnessed

some increase.

Figure 2. Fixed-Telephone subscriptions (per 100 inhabitants)

Source: ITU World Telecommunication/ICT Indicators Database

Mobile-cellular subscriptions The LLDCs have made remarkable progress in increased use of cellular telephony which

has overtaken use of fixed-line telephones. The cellular subscriptions per 100 inhabitants

in LLDCs increased from 6.4 in 2003 to 59.4 in 2012. However, as illustrated by figure 3,

the LLDCs as a group still lag behind all the other groups of countries.

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

2005 2006 2007 2008 2009 2010 2011 2012

Developed

Developing

World

LLDCs

10

Figure 3. Mobile cellular subscriptions (per 100 inhabitants)


Internet Users The number of internet users is growing in the LLDCs. The average percentage of

individuals using the internet for LLDCs improved from 2.2% in 2003 to 13.3% in 2012.

However, they lag far behind the developed countries and other groups of countries.

Figure 4. Percentage of individuals using the Internet


-

20.0

40.0

60.0

80.0

100.0

120.0

140.0

2005 2006 2007 2008 2009 2010 2011 2012

Developed

Developing

World

LLDCs

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

2005 2006 2007 2008 2009 2010 2011 2012

Developed

Developing

LLDCs

Transit

World

11

Fixed (wired) broadband subscriptions

There has been increased use of fixed broadband access which refers to high-speed fixed

(wired) access to the public internet at downstream speeds equal to, or greater than, 256

kbit/s. This includes DSL, Cable, Fibre and other fixed (wired) broadband subscriptions.

Fixed wired broadband subscriptions in LLDCs grew from 0.01 per 100 inhabitants in

2003 to 1.1 in 2012. However LLDCs lag way behind the other groups when compared

with the 2012 average of 5 in developing countries, 26 in developed countries and 6.2 in

transit countries (Figure 5). The trend reflects the increasing proportion of mobile data

traffic offloaded on fixed (wired) networks, for example through Wifi connections. This

takes some of the pressure off mobile networks, but at the same time requires improved

infrastructure which might explain why LLDCs are performing less efficiently.

Figure 5. Fixed (wired) broadband subscriptions (per 100 inhabitants)


Although fixed (wired) broadband uptake is growing and reflects the significant

investments made in optical fibre infrastructure in many LLDCs, the strong link between

broadband uptake and broadband affordability makes it very difficult for these countries

to develop their ICT infrastructure since broadband prices are higher in LLDCs.

Furthermore not many people in LLDCs own ICT equipment such as computers and

televisions. Data on ownership of ICTs is not available for all LLDCs as shown in annex

1. Based on data from available countries, in 10 LLDCs less than 20% of households own

a computer whilst in the developed and developing countries the averages are 76% and

28% respectively. It is important for LLDCs to systematically collect ICT statistics and

indicators and report regularly.

ICT Development Index

The ITU calculates the ICT Development Index (IDI) which is a composite index

combining 11 indicators into one benchmark measure that serves to monitor and compare

0

5

10

15

20

25

30

2005 2006 2007 2008 2009 2010 2011 2012

Developed

Developing

LLDCs

Transit

World

12

developments in ICT across countries4. The IDI is divided into three sub-indices: (a)

Access sub-index, which captures ICT readiness and includes five infrastructure and

access indicators; (b) Use sub-index, which captures ICT intensity and includes three ICT

intensity and usage indicators; and (c) Skills sub-index, that captures ICT capability or

skills as indispensable input indicators5. The IDI is presented on a scale of 1 to 10.

When compared to transit and developed countries, LLDCs have lower values of the

aggregate IDI (see table 3). LLDCs have the lowest IDI in the access sub-index, which

measures ICT infrastructure and readiness – a basic requirement for using and benefiting

from ICTs. This indicates that they have limited access to ICT infrastructure, including

fixed and mobile telephony, internet and broadband when compared to the other

countries and are not capable of fully exploiting ICT to support their development. Seven

out of the 15 countries with the lowest IDI ranking in 2012 are LLDCs. It is important

that continued work be done to improve ICT development in LLDCs.

Table 3. ICT Development Index LLDCs Compared to other groups of countries

2012

LLDC Transit Developed

Overall IDI 2.66 2.94 6.8

Access sub-index 2.99 3.18 7.1 Use sub-index 1.21 1.24 5.5 Skills sub-index 4.9 5.1 8.7

Source: ITU Measuring the Information Society Report 2013

Within the LLDCs, great diversity in IDI performance among the countries exists. As

shown in figure 6, some countries such as Kazakhstan, Macedonia and Azerbaijan, have

higher levels of IDI.

4 ITU, 2013, “Measuring the Information Society”.

5 ITU, 2013, “Measuring the Information Society”.

13

Figure 6. ICT Development Index (IDI) for some LLDCs in 2012

Source: ITU Measuring the Information Society Report 2013

Dynamic countries case examples

Each year the ITU’s Measuring the Information Society report identifies the most

dynamic countries, which have recorded above-average improvements in their IDI rank

or value over the past 12 months. In 2012, some of the LLDCs that were featured include

Mongolia and Zimbabwe and in 2011 Armenia was featured. Kazakhstan was the LLDC

with the highest IDI in 2012. Excerpts of the features are included as case studies in this

issues note. Boxes 1, 2, 3, and 4 feature the dynamic case examples.

Box 1. Armenia’s surge in Internet use

The country that improved most in 2011 was Armenia, which moved up 14 places to 72nd, while

increasing its IDI score by 31 per cent. Mobile penetration increased from 75 to 125 per cent, and

household access to computers and the Internet also rose significantly. These factors plus the

available fixed- and mobile-broadband services led to growth in use. An increase in international

bandwidth from 1 083 Mbit/s to 10 547 Mbit/s and growth in mobile-phone subscriptions have

contributed to greater access. Fixed-broadband penetration was around 3 per cent with signs of growth. The Ministry of Economy

of Armenia plans to expand the country’s high-speed broadband network through a mixture of fibre-

0.99

1

1.01

1.18

1.24

1.43

1.54

1.66

1.77

1.81

1.95

2.1

2.4

2.44

2.52

3

3.12

3.21

3.28

3.92

4.45

4.74

5.01

5.19

5.74

0 2 4 6 8

Niger

Central African Republic

Chad

Burkina Faso

Ethiopia

Malaw i

Mali

Rw anda

Zambia

Uganda

Lesotho

Lao PDR

Bhutan

Sw aziland

Zimbabw e

Botsw ana

Uzbekistan

Paraguay

Bolivia

Mongolia

Armenia

Moldova

Azerbaijan

TFYR Macedonia

Kazakhstan

14

optic, WiMAX and satellite technologies. The country’s main operator ArmenTel extended its 3G

footprint, deploying additional 3G base stations in new regions so as to improve coverage. According to Pearce 2011, the Armenian Government’s programme “Computers for All” may have

influenced the sharp increase in internet use in 2011. The programme was launched in September

2009 and it allows Armenian citizens to rent desktop and laptop computers at a low price. The

programme met its goal of providing 30% of Armenian residents with a portable computer and also

met its goal of expanding computers to rural Armenians. Furthermore, most Armenians began using

smartphones to access internet in 2009 and 2010.

Source: ITU Measuring the Information Society 2011 report, Katy Pearce, 2011, Internet Penetration

in Armenia Tripled in the past 2 Years: Caucus barometer, Epress news, 4 December 2011.

Box 2. A relatively strong ICT framework: the case of Kazakhstan

Kazakhstan has been performing better than the rest of the LLDCs, with an IDI level of 5.74 in 2012. In terms of fixed-line, Kazakhstan has a relatively strong telecom sector with a penetration of 20%.

The national operator, Kazakh Telecom, launched a programme to modernize the country’s

telecommunication system. The plan includes the modernization of the company’s rural telecom

network by introducing the use of digital telephone exchange. Moreover, satellite facilities have been

installed in Kazakhstan’s rural areas. The mobile market soared from 3.2 million subscribers in 2005

to 14.9 million subscribers by 2009. Internet use seems to be still lacking, as the quantity of Internet

users in 2009 merely exceeded 3,15 million users that corresponds to density of 19,8 users per 100

inhabitants. An interesting project is the one initiated in 2003 by the Customs Control Agency of Kazakhstan

called the “Programme of Modernization of Customs Services” with the objectives of the

simplification of customs procedures and the facilitation of transit trade of neighbouring countries.

The long-term goal however is the establishment of an electronic customs information system, or e-

customs, to create a uniform customs information environment for custom services, provide web-

based services and enable electronic declaration of goods. The President of the Republic of Kazakhstan gave instruction to establish the Integration Information

System «Single Window on Export-Import Operations», the Governmental Order of 3.30.2011,

№288. The Concept of Creation of the Single Window and Plan of Measures for Implementation

thereof in 2011-2013 were developed and approved by the Enactment of the Government of the

Republic of Kazakhstan of July 3, 2011 No.771. This initiative would be substantial in helping ease the challenges associated with the geography of

Kazakhstan and it shows how the development of ICT infrastructure is essential for the particular

situation of Landlocked Developing Countries. Source: UNESCAP, 2006, “Guidelines on ICT Application for Trade and Transport Facilitation”;

EECA, 2011, “Policy Dialogue in ICT to an Upper Level for Reinforced EU-EECA Cooperation”. Asia Pacific Trade Facilitation Forum 2011

Box 3. Mongolia Case

According to the ITU Report of 2013, Mongolia significantly improved its IDI levels in 2012. Both

the access and the use sub-index values increased by more than the global average. In terms of ICT

15

household connectivity, the progress was remarkable: the percentage of households with a computer

increased from 24% in 2011 to 30% in 2012, and the proportion of households with Internet access

augmented in equal measure, from 9% in 2011 to 14% in 2012. These improvements rely on the fact that in the last decade the Government of Mongolia has been

giving ICT a high priority as a catalyst and an engine for socio-economic development. Among the

various initiatives, Mongolia introduced a new customs ICT system for trade facilitation in June

2003, a Window-based replacement known as the Mongolian Customs Automated Data Processing

System (GAMAS). The goal of the GAMAS was to create a unified information system that covers

all data within the customs system, interfacing other government agencies, banks, freight forwarders

and customs brokers, and that computerizes the tasks of estimation, calculation and duty assessment

among others. Subsequently, in October 2004, the Information and Communications Technology

Authority was established with the mission of “creating a knowledge-based information society in

Mongolia” (Resolution 207, Government of Mongolia). The Authority is responsible for all ICT

policies, their coordination and their implementation under the direct auspices of the Prime Minister.

In the same period, the Government’s adoption of “ICT Vision 2010” drafted the E-Mongolia

Programme, which strengthened the legal environment for e-commerce. The National Broadband

Programme, to be implemented by 2015, is aimed at providing affordable broadband access. All

these initiatives allowed Mongolia to be one of the most advanced in the adoption of ICT for trade

facilitation among LLDCs of the Asian region. Sources: UNESCAP, 2006, “Guidelines on ICT Application for Trade and Transport Facilitation”; ITU, 2013,

“Measuring the Information Society”.

Box 4. Zimbabwe case study

Zimbabwe is one of the most dynamic countries in the IDI of 2012, having made significant progress

on both the access and the use sub-indices of the IDI. In both sub-indices, it is the mobile/wireless

indicators where the most progress was made: while mobile-cellular penetration increased from 72%

in 2011 to 97% in 2012, the wireless-broadband penetration doubled from 15% to 30% over the

same period. The use and diffusion of ICT for national development has been reflected in various government

instruments such as the Science and Technology Policy of 2002. The Postal and

Telecommunications services were provided and regulated under the then Ministry of Transport and

Communication which culminated in the establishment of the sector regulator, the Postal and

Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) in 2000 (Postal &

Telecommunications Act, Chapter 12.05). This bill effectively ended the monopoly of the Post and

Telecommunications Corporation. In September 2007, the Government launched the National ICT

Policy Framework which led to the establishment of the Ministry of ICT (MICT) that resolved a

number of the issues related to divided responsibilities. At the present time, regulation of the ICT

sector is divided between the Broadcasting Authority of Zimbabwe (BAZ), POTRAZ, and the Media

and Information Commission (MIC). In 2012, POTRAZ has started to set up base stations in the

country’s underserved areas, funded through the Universal Services Fund (USF). Statistics from

POTRAZ show that the highest share of investments in the telecommunication and postal sector was

in data and Internet services (78% of total investments at the end of 2012). These initiatives among others allowed Zimbabwe to have the second-highest penetration rate in

Africa, just after Ghana (34%). Sources: ITU, 2012, “Measuring the Information Society”; Zimbabwe Ministry of Information Communication

16

Technology, “Strategic Plan 2010-2014”; African Development Bank, 2012, “Information and

Communications Technology Report”, Chapter 12 – Zimbabwe.

Trends in ICT and GDP per capita

ICT has the potential to increase economic growth through improved efficiency and

productivity growth as discussed in section 2. Figure 7a shows the relationship between

GDP per capita and percentage of Internet users in LLDCs in 2003 and in 2011 and

figure 7b shows the same for transit countries. All the figures show a positive relationship

between Internet use and per capita GDP. They also show that over time some countries

have increased their GDP per capita and ICT use. In spite of the clear developments

achieved since 2003, the divide between the LLDCs and transit countries still remains

substantial: while transit countries have reached GDP per capita levels above $14 000

with a corresponding percentage of more than 50% of internet users in 2011, apart from a

few outliers most LLDCs remained at a level of GDP per capita below $5000 and have a

low percentage of internet users.

Thus it is important for the LLDCs to improve the amount of use of the internet, as it

could enhance their ability to accelerate their economic development.

Figure 7a. GDP per capita and Percentage of Internet users in LLDCs

Source: ITU World Telecommunication/ICT Indicators Database and World Bank Development Indicators

LLDCs in 2003

0

2000

4000

6000

8000

10000

12000

14000

16000

0 10 20 30 40 50 60

% Internet users

GD

P p

er

ca

pit

a

LLDCs in 2011

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

0 10 20 30 40 50 60

% Internet users

GD

P p

er

ca

pit

a

17

Figure 7b. GDP per capita and Percentage of Internet users in Transit countries

Source: ITU World Telecommunication/ICT Indicators Database and World Bank Development Indicators

IV. The challenges faced by LLDCs in improving access and use of

ICTs for development

Despite some encouraging developments in the use of ICT in LLDCs, there is growing

concern that LLDCs are not progressing rapidly enough in terms of overcoming the

digital divide. The digital divide is at its most pronounced between the LLDCs and the

developed world, the developing countries and the transit countries. The foregoing

analysis also shows that there is also a digital divide within the LLDCs themselves.

Within the LLDCs there is digital divide between the urban and rural areas and between

various economic and social sectors (including gender). The bulk of telecommunications

infrastructure does not extend beyond the largest cities and therefore does not reach the

majority of the population. This section explores some of the reasons for the lack of rapid

development of ICT in LLDCs and its limited use in addressing the challenges associated

with landlockedness.

Infrastructure and equipment gaps

ICT is a dynamic sector that is continually changing and requires updating. Most of the

fixed telephone networks in LLDCs are plagued with inadequate capacities, utilize old

and obsolete technology and in many instances suffer from network failures. Under these

conditions, operation and maintenance of the networks become difficult and this results

in poor quality of service. Mobile technology while it has grown rapidly has

infrastructure challenges such as lack of adequate transmission infrastructure to increase

Transit countries in 2003

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

0 10 20 30 40 50 60

% Internet users

GD

P p

er

ca

pit

a

Transit countries in 2011

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

0 10 20 30 40 50 60

% Internet users

GD

P p

er

ca

pit

a

18

coverage and in some cases duplication or parallel infrastructures by different operators.

Thus both fixed and mobile telephone networks have infrastructure gaps that need

addressing if service provision is to be increased in LLDCs.

There are also infrastructure gaps for broadband services that need to be addressed and

intraregional connectivity and sufficient undersea cables for connecting LLDCs to other

areas of the world and to the rich information resources of the global internet are

required. Since LLDCs are not near the coast, their biggest challenge is to invest in ICT

infrastructure that passes through neighbouring and coastal countries in order to access

international network. Work has been going on in Africa to complete the network of

submarine cables surrounding the continent. For example the Eastern African Submarine

Cable System (EASSy) an undersea fibre optic cable system connects countries

in Eastern Africa to the rest of the world from South Africa to Sudan, with landing points

in nine countries and is connected to at least ten landlocked countries which no longer

have to rely on satellite internet access to carry voice and data services. EASSy is the

highest capacity system serving sub-Saharan Africa, with a 4.72 terabit per second

(Tbit/s), 2 fibre-pair configuration. The cable entered service on 16 July 2010, with

commercial service starting on 30 July 2010.

There is also lack of strategy on infrastructure sharing – there are many instances where

operators build parallel infrastructure on same routes thus making it more expensive for

the end users who have to ultimately pay for these investments through the end user

pricing.

Inadequate availability of investment capital. There is low international interest to invest

in ICT infrastructure in LLDCs because the infrastructure development costs are high.

Pricing and affordability

One of the main barriers faced by LLDCs is the higher costs of ICT. The costs for

LLDCs to access high speed international internet bandwidth and their fixed (wired) -

broadband monthly subscription charges are very much higher than coastal countries that

are located close to the submarine communications cable that are laid on the seabed. The

ITU calculates the ICT Price Basket (IPB) which combines the average cost of fixed

telephone, mobile cellular and fixed broadband internet services and computed as a

percentage of average Gross National Income (GNI) per capita. The trends in the IPB in

LLDCs shows that there has been a decrease in the prices of the services, however, the

IPB level of LLDCs is still much higher than transit countries and developed countries

(see figure 8). While developed countries and transit countries had a IPB of 1.5 and 17.19

in 2012 respectively, the LLDCs were still facing an average of 23.8 which is about 30%

more than the transit countries.

19

Figure 8. ICT Price Basket (IPB), 2008 and 2012

Source: ITU Measuring the Information Society Report, 2013. Note: The IPB is a composite basket that

includes three tariffs sets, referred to as sub-baskets: fixed telephone, mobile cellular and fixed broadband Internet services. The IPB is the value derived from the sum of the price of each sub-basket as a percentage of a

country’s monthly GNI per capita, divided by three.

The IPB is also divided into 3 sub-indexes: (a) fixed-telephone sub-basket as a % of GNI

per capita; (b) mobile-cellular sub-basket as a % of GNI per capita; (c) and fixed-

broadband sub-basket as a % of GNI per capita. The difference between the LLDCs and

transit countries is significant. Apart from the fixed-telephone costs, where the difference

between the two groups is of about 3 percentage points, mobile-cellular and fixed-

broadband costs are almost as twice as expensive in LLDCs compared to transit countries

(Figure 9), with the former reaching a level of almost 46% of GNI per capita in 2012 for

the fixed-broadband sub-basket.

2

25.2

34.8

1.5

17.19

23.8

0

5

10

15

20

25

30

35

40

LLDCs Transit Developed countries

2008

2011

20

Figure 9. IPB Sub-baskets as a percentage of GNI per capita, 2012

Source: ITU Measuring the Information Society Report, 2013

There is need to find ways of reducing the cost of broadband for LLDCs. The LLDCs

have an option of connecting directly to satellite since it is not restricted to the sea.

However the costs of utilizing satellite communication are very high and most of the

LLDCs cannot afford.

Azerbaijan is one of the LLDCs that has the lowest IPB in 2012 and box 5 features the

country’s case example.

Box 5. Competitive ICT Price Basket in a Landlocked Developing Country: the case of

Azerbaijan

According to ITU Statistics, Azerbaijan has the lowest IPB among all other LLDCs, with a

level of 1.8 in 2012. Azerbaijan’s ICT sector in particular the internet market has doubled in

every three years recording a 20%-25% increase in the last 10 years, the Ministry of

Communication and Information Technologies has said in its annual report.

The government has indeed adopted several initiatives in order to reach the goal of

developing the ICT sector:

In 2004, the Ministry of Communications and IT with new leadership gets

established

In 2005, a State Programme on development of communication and IT is adopted for

the period of 2005-2008

In 2006, ICT is announced as the second priority after Oil by President of Azerbaijan

The Republic of Azerbaijan is moreover following several projects such as the “National

ICT Strategy for development of Azerbaijan” (2003-2012) and the “State Program on

provision of secondary and primary schools with the information and communications

0

5

10

15

20

25

30

35

40

45

50

Fixed-telephone Mobile-cellular Fixed-broadband

LLDCs

Transit

21

technologies” (2005-2007).

The government acknowledged that the development of ICT infrastructure is addressed in

order to provide and sustain a fair, transparent and competitive marketplace, achievements

that can enhance and ease the particular situation of Landlocked Developing countries.

According to the report of the World Economic Forum ‘Global information technologies

2013’, Azerbaijan holds 56th place among 144 countries for ‘Networked Readiness Index’.

Source: Ministry of Communications and Information Technologies of Republic of

Azerbaijan, 2007, Presentation by Dr. Rufat Gulmammadov, Head of Information Society

Development Department.

Policy and regulatory challenges

As noted earlier some LLDCs do not have updated national ICT and broadband

policies and this is a major obstacle in enhancing ICT development.

Increasingly there is need for convergence policy for the IT, broadcasting and

telecommunications sectors that some LLDCs still need to work on.

Lack of a conducive legal environment to support ICT development and encourage

private sector participation.

Conflicting mandate/overlap of regulatory bodies e.g. telecom and broadcasting

commissions, telecom and competition commissions.

Capacity constraints in policy formulation and of regulatory institutions. The full

complement of skills – technical, economic, legal and others are required.

Lack of adequate data and information: It is difficult to develop and effectively

implement, monitor and evaluate comprehensive policies on ICT due to lack of data.

Regional or sub-regional level challenges

Some regions with LLDCs still lack a common and harmonized policy and

regulatory framework.

Lack of an established mechanism for countries to share information and

experiences.

22

V. Conclusions and Recommendations

LLDCs have disadvantages related to their geography which make them incur high trade

costs thereby restricting their competitiveness and trade activity on the international

markets. They also have structural constraints related to their limited ability to trade and

integrate into the international markets and generate adequate resources to invest in their

sustainable development. These constraints include high trading costs, limited productive

capacities, declining value addition in manufacturing and agriculture, and heavy reliance

on undiversified primary commodities. ICT can act as a multiplier for economic growth

in LLDCs by improving trade facilitation, making supply chains more efficient, financial

transactions faster, accelerate the flow of goods and services across national borders, and

increase productivity in all sectors resulting in higher output.

The following recommendations are put forward to support the LLDCs to fully harness

ICT for their development.

National ICT and Broadband Policies

LLDCs should develop or update their national ICT and broadband plan or strategy and

ensure allocation of adequate resources for its implementation. The plan should include

how to develop a modern ICT infrastructure and internet access that can provide

universal access. Such a strategy should be anchored in strong regulatory frameworks and

domestic ICT laws that conform to international and regional standards, including the

Global ICT policy.

The national ICT plan should fully reflect the cross-cutting nature of ICTs and their

pivotal role in national development. LLDCs should include in their national ICT plan a

strategy of how ICT can be used to promote trade facilitation and address the major

challenges associated with landlockedness.

There is need to forge partnerships between the governments, inter-governmental

organizations and the private sector in developing and implementing ICT plans.

ICT governance

Create and support enabling environments that promotes sound economic and political

governance. In particular, improve ICT governance and affordability by ensuring

freedom of expression, providing a competitive framework for the application of ICT,

ensuring compliance through independent regulation and favoring low-cost, technology-

neutral and open source solutions; Link the creation of an enabling ICT environment to

national planning and strategic frame-works, including performance monitoring and

dialogue processes. Speed up the process of reforms and implementing the provisions of

Acts already adopted into law.

Increased investments from the private sector

ICT infrastructure needs are significant in all regions with LLDCs. Investments in ICT

have traditionally been the domain of the public sector. It has however become very

23

obvious in the last decade that public investments will not be sufficient to meet the

demand for growth.

When market players make investments in new infrastructure and technology it is

principally the demand from customers, their willingness to pay and the competitive

situation that will influence when and where the investments are made. The challenge is

to bring about functioning competition and to provide market players with the conditions

they need to invest, so that the investments are made broadly and across the whole

country. Thus policy makers in LLDCs should promote investment in the ICT sector by

creating an enabling environment with investment-friendly policy frameworks, regulatory

certainty and fair competition.

Encourage public private partnerships through providing technical assistance.

Rapid development of the ICT infrastructure in LLDCs

Improve the access of LLDCs to international high-capacity submarine fibre-optic cables,

low-price international voice services, higher-speed internet access, and high-bandwidth

backbone networks to connect towns and cities within countries, across borders. More

efficient technology is required to meet market demand and requirements for access to

high-quality broadband. International community and regional cooperation should

support the LLDCs to be able to access international broadband networks at lower prices.

LLDCs and their neighbours should promote implementation of infrastructure sharing

between transport, energy and ICT sectors.

Improved data collection

Collect ICT statistics and indicators, based on internationally agreed methodologies, and

report regularly at all levels – national, regional and global so as to guide policy decisions

and monitor the effectiveness of past policies.

Improved ICT use to promote trade facilitation

LLDCs and transit countries should increase the utilization of ICT to facilitate trade and

transport, in conjunction with harmonization of customs systems and documentation.

Using ICT to spur economic growth in manufacturing and industry

LLDCs should utilize ICT to improve efficiency and increase productivity in all

production sectors especially industry, agriculture and mining and enhance processing

and value addition in order to reduce commodity dependence.

Promote the use of ICT to support productivity and competitiveness of the services sector

since it is of strategic importance to overcome landlockedness through its potential

contribution to trade and development.

Given that informal and formal small and medium enterprises (SMEs) are the backbone

of broad-based economic growth, it is crucial to mainstream the use of ICT for micro,

small and medium enterprises.

24

Enhanced use of ICT to support broader sustainable development

Promote the use of ICT in disaster preparedness, early warning, rescue, mitigation, relief

and response. Intensify ICT use in all sectors – ie. Promote E-Business, e-Government, e-

Banking, e-Trading, e-Commerce; cyber security and in delivery of social services such

as health, and education.

Capacity-building

Benefiting from ICTs requires substantial complementary investments in learning, and

reorganisation by all stakeholders. Implement capacity-building programmes to increase

ICT literacy in LLDCs, including women, children, the elderly and people with

disabilities. Encourage the introduction of ICT at all levels of education. Develop a

workforce and manpower with high levels of ICT proficiency and expertise.

Enhanced regional ICT connectivity

Build or strengthen sub-regional and regional broadband infrastructure.

Ensure and support regional co-ordination in the planning of new infrastructure and in

assuring maintenance of existing infrastructure.

Encourage harmonization of ICT policy and regulatory frameworks at sub-regional

level as a catalyst towards establishment of regional markets. It will also ease

implementation of cross-border projects and attract further investment in the sector.

Promote harmonized regional customs and border crossing procedures to provide for

faster transit and border crossing of goods from LLDCs.

Support creation/strengthening of regional funds to encourage private public

partnership.

Knowledge and experience sharing amongst the LLDCs themselves is very valuable

and allow cooperating partners to benefit from each other’s experiences. It is

important that efficient mechanisms to document, disseminate and share best

practices are set up at regional and global levels.

Support from Bilateral and multilateral development partners

Bilateral and multilateral development partners should increase their technical and

financial assistance to support ICT development in LLDCs. In particular the following

areas:

Support LLDCs to access international optical fibre networks by funding the

deployment of a terrestrial information superhighway to boost access and

affordability regarding fixed broadband Internet services;

Improve the ability of LLDCs to use satellite by lowering acquisition costs

through space segment consolidation efforts;

Facilitate access to technologies and transfer of know-how on ICTs.

Support the Aid for Trade initiative, giving special consideration to the

requirements of LLDCs.

25

South-South cooperation and triangular cooperation is important as a means for

diversified trade opportunities, additional foreign direct investment flows that contribute

to improved ICT infrastructure and the achievement of sustainable development of

LLDCs, as well as cooperation in the transfer of appropriate technology is important.

United Nations, International, Regional and Sub-regional organizations

Organizations of the United Nations system, and other international organizations, the

Regional Development Banks, and Regional Economic Communities, are invited to

provide more and better targeted technical assistance to support accelerated ICT

development in LLDCs.

International and regional organizations in particular OHRLLS, ITU, UNCTAD, World

Bank, the International Think Tank for LLDCs, Regional Banks and others should

provide LLDCs with technical assistance on how to utilize ICT to lower trading costs,

boost trade, and stimulate structural transformation. They should also promote sharing of

best practices and advising on new technologies.

26

References

Borchert Ingo, Batshur Gootiiz, Arti Grover Goswami, Aaditya Mattoo, 2012,

Landlocked or policy-locked? How Services Trade Protection Deepens Economic

Isolation, World Bank Policy Research Working Paper 5942, Washington DC.

The Broadband Commission for Digital Development, 2013, Planning for progress: Why

national Broadband Plans Matter, Joint Publication of ITU and CISCO.

EECA, 2011, Policy Dialogue in ICT to an Upper Level for Reinforced EU-EECA

Cooperation.

Fuss Melvyn, Meloria Meschi and Leonard Waverman, 2005, The Impact of Telecoms

on Economic Growth in Developing Countries in Africa: The Impact of Mobile Phones,

Vodafone Policy Paper Series 2, 2005.

Jorgenson, D.W., Stiroh, K.J. 2000b, Raising the speed limit: U.S. economic growth in

the information age. Brookings Papers on Economic Activity 1,

ITU, 2013, Measuring the Information Society 2013 Report, Geneva.

MacKellar L., A. Wörgötter and J. Wörz, 2000, Economic Development Problems of

Landlocked Countries, Transition Economics Series No. 14

ITU, 2011, Measuring the Information Society 2011 Report, Geneva.

UNESCAP, 2006, Guidelines on ICT Application for Trade and Transport Facilitation,

Bangkok.

UN-OHRLLS, 2013a, The Development Economics of Landlockedness: Understanding

the development costs of being landlocked, New York.

UN-OHRLLS, 2013b, Report of the Secretary General to the 68th session of the General

Assembly: Implementation of the Almaty Programme of Action, New York.

World Bank, 2013a, Doing Business 2013 Report, Washington DC.

World Bank, 2013b, The Little Data Book on Information and Communication

Technology, Washington DC.

27

Annex 1: Core indicators on access to, and use of, ICT by households and individuals, latest available data (2008-2012)

Percentage of households with Percentage of individuals who used ICTs

Radio Year of

latest data

TV Year of

latest data

Comp-uter

Year of

latest data

Internet access

at home

Year of

latest data

Comp-uter

Year of

latest data

Mobile Year of latest data

1 Afghanistan ... ... ... ... ... ...

2 Armenia ... 98.7 2011 28.7 2011 22.2 2011 ... ...

3 Azerbaijan 99.6 2011 100.0 2011 39.0 2011 42.0 2011 48.0 2011 83.3 2011

4 Bhutan 62.0 2008 37.7 2008 16.4 2012 11.6 2012 ... ...

5 Bolivia 77.3 2009 76.7 2009 24.0 2011 7.4 2011 35.6 2009 58.6 2009

6 Botswana 76.4 2008 56.8 2008 ... ... ... ...

7 Burkina Faso ... 18.4 2009 ... ... ... ...

8 Burundi ... ... 0.1 2009 0.1 2009 ... ...

9 Central African Rep.

... ... ... ... ... ...

10 Chad ... ... ... ... ... ...

11 Ethiopia ... ... ... ... ... ...

12 Kazakhstan ... 86.8 2009 46.0 2010 49.4 2011 ... ...

13 Kyrgyzstan ... ... ... ... ... ...

14 Lao P.D.R. ... ... ... ... ... ...

15 Lesotho ... ... ... ... ... ...

16 Malawi 53.2 2010 8.7 2011 4.0 2012 5.5 2012 ... ...

17 Mali ... 31.3 2009 6.2 2011 2.0 2011 ... ...

18 Moldova 73.0 2009 93.0 2009 37.0 2010 27.0 2009 42.0 2009 78.0 2009

19 Mongolia 9.2 2010 89.3 2010 30.3 2012 14.0 2012 ... ...

20 Nepal 57.9 2008 38.6 2010 7.3 2011 3.3 2011 ... ...

21 Niger 43.0 2008 9.9 2008 1.5 2011 0.1 2008 0.9 2008 ...

22 Paraguay 82.0 2010 87.7 2010 19.3 2010 13.8 2010 ... ...

23 Rwanda 62.6 2010 5.3 2010 2.0 2011 ... ... ...

24 Swaziland ... ... ... ... ... ...

25 Tajikistan ... ... ... ... ... ...

26 TFYR Macedonia

... ... 53.6 2010 46.1 2010 57.7 2010 78.7 2008

27 Turkmenistan ... ... ... ... ... ...

28 Uganda 62.8 2008 6.4 2009 ... ... ... ...

29 Uzbekistan ... ... ... ... ... ...

30 Zambia ... 27.0 2009 ... ... ... ...

31 Zimbabwe 37.9 2011 36.3 2011 5.9 2011 4.0 2010 ... ...

Source: ITU World Telecommunication/ICT Indicators Database. ... Data not available

28

Annex 2: Examples of initiatives by The Econet Wireless Zimbabwe

A. EcoCash

Ecocash is an innovative mobile payment solution that enables Econet customers to

complete simple financial transactions such as sending money to loved ones, buying

prepaid airtime for yourself or other Econet subscribers and paying for goods and

services.

With the EcoCash account one can do the following: Deposit money/Cash-In;

Withdraw money/ Cash-Out; Transfer (send) money to registered EcoCash customers

only; Buy Econet prepaid airtime, text, data bundles or pay a direct connect account

for yourself and other Econet subscribers; Pay bills; Pay merchants for goods and

services; and Link your EcoCash to your bank account.

B. Econet Disease Surveillance Network

Our research and development team, working with partners in America, have developed a

test kit, which we can install at any rural clinic, or hospital. A blood sample, through a

simple finger prick, is taken, and placed on a cartridge containing a strip of absorbent

paper impregnated with antibodies. If the person has an infection, the paper changes

colour. The paper is then photographed using a simple cell phone camera, supplied as

part of the kit. The picture of the sample is beamed over our network, to a special

computer, which processes it, and provides a diagnosis, which is sent back to the remote

clinic, in a matter of seconds, by SMS. The computer also collates the data, to enable

public health officials, to know the spread of diseases, in the country. So, far we have the

capacity to test for 5 diseases: malaria, HIV, dengue, influenza and hepatitis B. The test

kit, not only enables thousands of people to be tested, and treated, but it also allows

governments, to be able to monitor the movement real time of any of these diseases,

enabling them to react quickly to major outbreaks. We are currently testing this system,

and it is our hope to eventually get such systems installed in every African country. Our

vision is that within 10 years, people will be testing themselves for diseases, using their

cell phones... Just add a little innovation, to what you do best.

C. Energize the Chain Program

Project seeks to improve the efficiency of vaccine storage and delivery systems in

Zimbabwe by supplying energy efficient vaccine-storage refrigerators to rural clinics

with limited access to reliable power supply, and leveraging electricity generated at

cellphone towers to power vaccine-storage refrigerators. Econet Wireless Zimbabwe in

partnership with the National Healthcare Trust of Zimbabwe, kicked off the initiative in

June 2011 with a series of development activities including stakeholder engagement, site

design, vaccine-storage refrigerator evaluation, and site selection. The first 10 sites were

delivered by early 2012 in six Provinces of Zimbabwe. An additional 100 sites are in

different stages of progress, with 100 more budgeted for the next financial year.

This pioneering approach dramatically increases efficiency within the vaccine delivery

system while simultaneously contributing to a greener environment through the

installation of energy efficient, ozone-friendly refrigerators at peripheral points in the

29

vaccine cold chain. The refrigerators are powered by renewable energy, in large part

solar, and are designed to seamlessly integrate with the public vaccine delivery system in

Zimbabwe, thus ensuring long-term sustainability of the solution.

Health System Benefits

The electricity grid in rural Zimbabwe might not be able to ensure continuous, reliable

power supply, especially in remote parts of the country. In such regions, vaccines may be

stored at a central point and moved over large distances by road for each vaccination

session, greatly increasing transportation time, logistical hurdles, and operational costs.

Meanwhile, the reliance on motor vehicles to ferry vaccines across large distances for

each planned session reduces efficiency and leaves vaccine supply at the mercy of local

weather and fuel supply conditions.

Econet Wireless Zimbabwe innovative solution shifts the last point of storage

significantly closer to the point of vaccine delivery by deploying highly energy efficient

vaccine-storage refrigerators to rural clinics and/or co-locating such refrigerators with

Econet Wireless Zimbabwe cellphone tower sites (in dedicated, fenced off areas), which

are ubiquitous throughout Zimbabwe. This simple, but revolutionary approach reduces

vaccine transportation time and increases health system efficiency.

Environmental Benefits

Econet Wireless Zimbabwe delivers direct environmental benefits ranging from ozone

conservation to reduction in ambient noise. The refrigeration units used in this initiative

do not use ozone-depleting gases, are highly energy efficient, and are powered by solar or

other renewable sources wherever possible. By utilizing a vaccine refrigerator with a 10-

day holdover capability, this program also dramatically reduces the need for generator

usage and the associated noise.

Benefits for Other Stakeholders

Other key stakeholders in the ecosystem also derive several benefits from involvement in

our work. For communities that are part of the program, in addition to having vaccines

administered at a location in closer proximity, there is also the potential for future

integration into the health records directly from the point of vaccination. For the

sponsoring mobile operator, this program offers a novel way to engage with the

communities it serves, and demonstrate its commitment to the greater public interest by

supporting local health services.

Source: Econet Wireless Zimbabwe

https://www.econet.co.zw

30

Annex 3. LLDC ICT Funding Sources

Afghanistan Public:

Ministry of Communications and Information Technology (MCIT) and Afghan

Telecom Regulatory Authority (ATRA)

2008 – establishment of state-owned Afghan Telecom’s satellite-based Village

Communications Network

MCIT is developing a high-capacity fibre optic backbone: the National Optical

Ring Network that will link all of the provinces within the country, as well as

connecting Afghanistan with its six neighbors (Pakistan, China, Tajikistan,

Uzbekistan, Turkmenistan, and Iran).

Private:

National Middle-income entrepreneurs from diaspora communities set up

Internet facilities (ISPs), software and web development firms

2004 – Roshan Cellular Telecommunication Project – Loan US$ 35,000

2006 – Roshan Phase II Expansion – Telecom Development Company Afghanistan

Limited – Loan US$ 85,000

International Donors

World Bank, USAID, SIDA and KOICA have contributed directly to ICT sector

development

2003-2006 IDA and IBRD US$ 6.130 million credit for Afghanistan

Reconstruction Fund – Telecommunications Project

Armenia Public:

2001 – Presidential Order No. 896: IT Development Supporting Council (ITDSC)

created to establish permanent communication between government, IT industry

and interested civil society groups.

Government with technical assistance of World Bank and USAID in 2001 ICT

Master Strategy

Private:

National The Union of Information Technology Enterprises

International Synopsis Armenia (USA) joint stock company specialising in

Electronic Design Automation (EDA) software for semiconductor design

International WEB-ISI (France) French SME works joint-venture with E-works

LLC in Armenia


2003 – USAID support Central Bank and ten commercial banks established a

national e-payment system ArCa

Azerbaijan Public

2003/2004 – Establishment of Ministry of Communication and Information

Technologies (MCIT)

2003-2012 – National Information and Communication and Technologies Strategy

for the Development of the Republic of Azerbaijan

2011-2012 – Government adopted a special action program to support E-

government development

2012 - $414 million (2% of total) were invested in ICT sector

PPP

2011 – MCIT signed a formal agreement with Micorsoft to help ensure that all

government offices will run legally licensed software

31

Private

National/International by 2011, ICT-related investments reached US$2.0billion:

25% of which is FDI

2007 – public shares of two mobile operators (Azercell and Bakcell) were privatized

2009 – Azerfon mobile operator signed a partner market agreement with Vodafone

2010-2012 exports of IT products made by national companies have increased

four times

2013 – Science Development Fund under the President of Azerbaijan has allocated

more than US$1 million to finance ICT projects

PPP

US-Azerbaijan Chamber of Commerce December 2-5, 2013 ICT Trade Mission

to Azerbaijan


UNDP - 2013-2020 “Modernization of Sustainability and Efficiency of ICT

infrastructure and ICT services in the Republic of Azerbaijan”

Bhutan Public

2004 – Ministry of Information and Communication (MoIC): ICT Policy and

Strategy (BIPS)

2012 – Second international ICT gateway – 50km Optical Ground Wire fibre

network between Gelephu and Bagaigon

2008 - UN-ESCAP and Bhutan Ministry of Information and Communication

(MoIC) have partnered with the Royal Institute of Management (RIM) to launch an

ICT Capacity Development Programme

2010 – Capital expenditure (in 100,000 US$) 81

PPP

2011 – “Thimphu TechPark”: IT Park promoted by the Department of Information

Technology & Telecom, the Ministry of Information & Communications, Royal

Government of Bhutan, supported by the World Bank and developed jointly by

Assetz Property Group of Singapore and Druk Holdings & Investments 5 year

investment of US$ 8 million from 2008 to 2013


2006 – “Digital Signature Project”: initiated by the Department of Information

Technology (DIT), with technical and funding support from the International

Telecommunication Union (ITU) and the United Nations Development Programme

(UNDP)

Bolivia Public

2003-2006 – National Strategy and Information Technology Communication

(ETIC): coordinated by ADSIB, Alternative Energy and SITTEL with support from

UNDP

2006 – National ICT Programme for Education Sector, created by the Ministry of

Education in collaboration with IICD

2008 – Renationalisation of ENTEL – Government reinvested BOB 400 million

(over US$ 56.5 million)

2010 – Capital expenditure (in 100,000 US$) 2,613

Private

1995 – ENTEL Privatisation: ETI Euro Telecom bought 50% of ENTEL shares

from the state

32


Since 2000 – “TiCBolivia”: multi-stakeholder network of national actors working

with ICT for development, supported by the Dutch development partner IICD

Botswana Public

Government investment in infrastructure 18% for ICT

2001-2007 Average spending US$ millions per year US$ 80 for operations &

maintenance and US$ 56 of capital expenditure

2000-2005 Annual investment in telecommunications US$ 19.0 millions

Private

2001-2007 Average spending US$ millions per year US$ 19 of private

participation in ICT infrastructure capital expenditure

PPP

Committed nominal investment in ICT projects with private participation ($

millions) 2000-2005 19.0


2001-2007 Average spending US$ millions per year US$ 0 from ODA

DAC Donors total gross ODA disbursement for ICT in 2011 US$ 379,001.00

Burkina Faso Public

2001-2006 Average spending US$ millions per year US$ 10 for operations and

maintenance and US$ 2 of capital expenditure


2000-2005 Annual investment in mobile communication US$ 23.2 millions

Private

2001-2006 Average spending US$ millions per year US$ 64 of private

participation in ICT infrastructure capital expenditure

PPP


millions) 2000-2005 5.3


2001-2006 Average spending US$ millions per year US$ 6 from ODA and US$ 1

from Non-OECD financiers

DAC Donors total gross ODA disbursement for ICT in 2011 US$ 4,160,408.00

Burundi Public

2012 Total Government Expenditure for ICT Development US$ 1.5 million

Private

2006 – Five Telecommunications companies in Burundi signed a Memorandum of

Understanding (MOU) with the objective of coming together to build a shared

national fibre optic backbone connecting the main populated centers

2012 – Total Private Investment for ICT Development US$ 3.0 millions

PPP


millions) 2000-2005 6.0


2007 – IDA approved a financing package of US$20.1 millions for Burundi as a

first tranche of the US$ 424 million Regional Communications Infrastructure

33

Program (RCIP)


Central

African

Republic

Public

2002 – Government set up the National Plan for Information and Communication

Infrastructure (NICI)




o DAC Donors total gross ODA disbursement for ICT in 2011 US$ 640,607.00

Chad Private

2010 – Millicom Tchad S.A. investment commitment US$ 21.2 millions

PPP


millions) 2000-2005 1.4



Ethiopia Public



2000-2005 Annual investment in telephone service US$ 14.5 millions



Kazakhstan Public

2006 – KazPost Financial Strengthening and Modernization Project – Technical

assistance US$ 1,000

Development of Kaznet

Digitization process switch to digital broadcasting by 2015


IREX administered Internet Access and Training Program (IATP)

Soros Foundation Kazakhstan has institutionalized to Information Initiative

OSCE, UN and other international organizations provide access to internet

Kyrgyz

Republic

Public

2002 – National Strategy “Information and Communication Technologies for

Development in the Kyrgyz Republic”


UNDP, USAID and Soros Foundation supported the formulation of national ICT

policies

2001 Telecommunications project funded by the World Bank and EBRD Kyrgyz

telecom was granted exclusive control of long-distance and international telephone

service

Lao PDR Public

2006 – Asian Development Community Broadcasting Initiative – Technical

assistance

Private

2005 – Millicom Lao Company Limited – Investment commitment US$ 4 millions

34


2009 – Asia Development Bank funded US$ 500,000 for “E-Health Center Project”

Lesotho Public



PPP


millions) 2000-2005 3.0



Macedonia

FYR

Public

National Strategy for Information Society

E-Declaration

Program of the Government of Republic of Macedonia for 2006-2010


2006-2011 FDI in ICT Sector 86.8% in Telecommunications (174 million

euros); 6.9% Computer Activities; 4.5% Software; 1.8% ICT Hardware.

2007 – EC funded project SCORE “Strengthening the Strategic Cooperation

between the EU and Western Balkan Region in the field of ICT research”

Malawi Private

2010 – “Zain Malawi Dist” Project by Stanbic Malawi investment commitment

US$ 5.8 millions

PPP


millions) 2000-2005 0.9



Mali Public



PPP


millions) 2000-2005 82.6


Since 1996 – Washington-based “Africa Leland Initiative” team in cooperation with

USAID mission in Bamako created a Communication for Development team

with the aim of accelerating development by making information accessible


Moldova Public


Private

ICT Sector in Moldova Policy White Book developed by Moldovan Association

of ICT Private Companies with the support of the Competitiveness Enhancement

and Enterprise Development (CEED), funded by USAID


35

Since 2005 – USAID supported Regional Competitiveness Initiative (RCI) for IT

development in Macedonia and in the region

2010 – World Bank “Governance E-Transformation Project” Moldova was the

first to join the initiative commitment of US$ 23 million

Mongolia Public

2010 – Regional Logistics development project – Public sector US$ 26,640 + Asian

Development Fund Loan US$ 45,000


UNDP – 1998 support to attend Internet Policy Seminar; support and assistance to

CISCO academy

Mongolian Foundation for Open Society – Soros Foundation full support for the

“ICT Vision-2010 in Mongolia”

Asian Development Bank project focused on educational sector and ICT

TACIS, European Union Agency – 1996-2001 allocated total sum of 26,5 million

euro

World Bank 2001 – Mongolian Development Gateway

Nepal Public

1999 – National pilot programme to develop 15 telecentres in 9 districts within the

country: started by His Majesty’s Government of Nepal (HMG/N) with the support

of UNDP

2007 – Information and Communication Technology Development Project – Public

sector US$ 6,200 + Asian Development Fund Grant US$ 25,000

Niger Public


PPP


millions) 2000-2005 47.2



Paraguay Private

2005 – Millicom Paraguay invested US$ 15.0 millions

Rwanda Public


PPP


millions) 2000-2005 33.0


2000 - UK Department for International Development (DFID) in cooperation with a

number of private-sector companies “Imfundo Project” (£800 million education

programme) aims to find ways to use ICTs to improve education

“E-Rwanda Project” US$ 10 million IDA grant supports the government’s

efforts to use ICT for improving service delivery


Swaziland Public


PPP


36

millions) 2000-2005 3.0



Tajikistan Public

2006 – over 94.5% of the total amount of investment in ICT were given from

local/governmental budget (US$ 133,700)

Turkmenistan Public

2008 – ICT expenditure as a % of GDP 5.5%

Private

2008 - Business investment US$ 23,996,923


2003 – NATO Science committee project “Virtual Silk Highway”

Uganda Public

o 2000-2005 Annual investment in telecommunications US$ 68 millions

o 2010 – Capital expenditure (in 100,000 US$) 1,006

PPP


millions) 2000-2005 77


Rural Communications Development FUND (RCDF) – funded from a 1% levy on

operators’ gross annual revenues but also benefited from contributions from the

government and the World Bank


Uzbekistan Public

National Program of Reconstruction and Development of Telecommunication

network until 2010 – implemented by Uzbektelecom jointly with China

Development Bank (CDB)

2002-2010 – Program of Computerization and Information and Communication

technologies Development

Private

2008 – Business investment as a % of GDP – 26.7%

2008 – Swedish-Finnish TeliaSonera invested up to US$160 million in Ucell


2000 – UNDP started UzSciNet: “Capacity Building for Internet Technologies

Development and Promotion in Uzbekistan” ‘

2008 – Foreign investment about US$ 289 millions

Zambia Public



PPP


millions) 2000-2005 74.0



Zimbabwe Public

37



PPP


millions) 2000-2005 13.0



Source: Various Government reports from internet

38

Chair’s Summary Adopted at the Thematic Meeting on

Enhancing ICT development and connectivity for the

Landlocked Developing Countries (LLDCs)

Held on 31st October 2013, at the United Nations Conference Center,

Nairobi, Kenya

I. Introduction

The General Assembly, in its resolution 66/214, decided to hold a comprehensive ten-

year review conference of the Almaty Programme of Action in 2014 to be preceded, by

regional and global as well as thematic preparations. It is in this context that the ITU and

OHRLLS organized a pre-conference event on Enhancing ICT development and

connectivity for the LLDCs as one of the mini partnership forum of the 2013 Global

South-South Development Expo to review major achievements in ICT development in

LLDCs, showcase the best practices; discuss how partnerships in particular South-South

and Triangular cooperation at regional and international levels can help enhance

development of ICTs in LLDCs, and suggest concrete recommendations that can be

included in the preparation of the outcome document of the 10 Year Review Conference

on the Almaty Programme of Action.

The meeting brought together about 40 participants including senior officials from

landlocked and transit developing countries, representatives of donor countries, regional

development banks, UN system organizations, regional and sub-regional organizations

and civil society.

II. Summary of the Panels and Main Issues Raised The meeting began with an opening session where remarks were delivered by Mr. Gyan

Chandra Acharya, Under-Secretary-General and High Representative, Dr Hamadoun

Touré, Secretary-General, International Telecommunication Union (via video) and Ms.

Sahle-Work Zewde, Director-General of United Nations Organization Nairobi. The

opening session was followed by two panel discussions on (a) key issues on ICTs and

Broadband, LLDCs challenges, best practices, country experiences and solutions, and (b)

initiatives on partnerships and solutions that can work to improve ICTs development for

LLDCs. This section presents a summary of the panels and the key issues that were

raised.

The meeting noted that the LLDCs had special needs for ICT development as noted in the

resolution on “special measures for landlocked developing countries and small island

developing states for access to international fiber optic network” unanimously passed by

the ITU World Conference on International Telecommunications (WCIT-12) held in

Dubai in 2012. The meeting noted that significant progress has been made in the last

decade in the development of the ICT sector in LLDCs. However despite the progress, a

39

significant digital divide still exists between the LLDCs and the other groups of

countries.

The meeting identified some of the achievements made by LLDCs, which include the

following:

Some LLDCs had developed national policies, laws and the institutional

framework to support the development of the ICT sector. For example Uganda

has: National Telecommunications Policy, National ICT Policy, National

Broadband Strategy and Policy, National Data Protection and Privacy Bill,

National Information Security Framework, National Postcode and Addressing

Bill, and National Broadcasting Policy and a Ministry of ICT and National

Information Technology Authority.

Some LLDCs had introduced liberalization in the ICT and telecommunication

sector and this has boosted the role of the private sector particularly in providing

mobile telephone services. However the meeting stressed that the government still

had to play a major role in areas where the private sector has not addressed – such

as development of the broadband infrastructure network.

There has been remarkable increase in ICT penetration especially of mobile

telephony and internet use.

The regional and sub-regional level efforts are being made to enhance the

development of ICTs and Broadband in LLDCs. For example: in Asia through the

South Asian Association for Regional Cooperation (SAARC) development fund,

the South Asia Sub-regional Economic Cooperation (SASEC) Information

Highway Project is establishing a regional fiber optic-based network to provide

high speed Internet services in Bangladesh, Bhutan, Nepal, and parts of Northern

India, Regional Training Networks in each country and in each country, and also

to develop website portals that would provide information on distance education,

telemedicine, e-commerce, and social networking.

In Africa some sub marine cable operators have established Point of Presence at

coastal landing points and in the LLDCs (inland) in order to offer access to

broadband at lower cost. NEPAD is addressing the inland fibre at the policy level

and a telecom private sector company is championing its implementation.

The meeting noted some best practices that have been achieved in some LLDCs. These

include:

Some LLDCs have integrated ICT into national socio-economic development

agenda, by mainstreaming it into key socio-economic sectors such as Education,

Healthcare, Business, Agriculture and other sectors thereby ensuring that optimal

benefits are realized from use of ICT.

Liberalization of the ICT sector.

Some LLDCs had successfully developed capacity building initiatives for

communities including community e-centers, public information kiosks and

community information centers.

Some LLDCs had launched e-services for utility payments such as water and

electricity. Efforts were also being made to use e-Tax systems by some revenue

authorities.

40

Some LLDCs have implemented Single Window electronic system and the

Automated System for Customs Data (ASYCUDA) which have greatly improved

customs clearance and procedures.

Set up and effective use of a universal fund for expansion of ICT into the rural

areas.

Establishment of e-learning to increase the knowledge and use of ICT by the

public.

The meeting indicated that the LLDCs still confronted challenges on the development of

ICTs/Broadband. Some of the key challenges include:

Lack of expertise to formulate custom designed policy, legal and regulatory

framework suitable for the specific needs of the country;

Lack of consistency in the policy, legal and regulatory regime, which gives rise to

lower confidence in the private sector for investment;

The unnecessary delays in the process of decision making on important issues like

licensing and spectrum have been obstacles to stiff competition, diversification

and introduction of the state of the art technologies;

Limited broadband penetration in LLDCs and limited access to international

Internet Bandwidth is a major challenge for service providers.

Limited funds for developing broadband infrastructure;

High cost of connectivity to the international broadband infrastructure and the

resulting higher costs of ICT and broadband services in LLDCs. For example A

study carried out in ECOWAS region on access to submarine cables by the

LLDCs in 2011 revealed that the wholesale price of international fibre

connectivity for a purchasing level of capacity on E1 (2MB) in Niger is about

US$ 900 per MB per month whereas in a coastal country remain two to five times

lower than the LLDCs. The higher price paid by landlocked countries for

international capacity is linked to the transit costs that they have to pay to coastal

countries to route their traffic across the terrestrial network of the coastal country;

Low affordability of ICT services and products by the general public in LLDCs;

Low levels of ICT awareness and inadequate complementary services such as

national electricity grid;

Many of the governments and the regulators have not been able to adopt a unified

licensing regime, have not addressed the policy, legal, regulatory and institutional

arrangements to cater to convergence brought about by the development of

devices, networks and technologies. The service providers are ready to provide

multimedia services but governments and regulators are not ready;

Many governments have realized the importance of e-governance for its obvious

advantages. But the traditional bureaucracy is not ready for assimilating such

changes. The IT and the telecom infrastructure for the implementation of e-

government programs remains a great challenge;

Local contents have not been developed to the extent that broadband services

become essential for the users.

Cybersecurity remains critical to enhance public confidence in the use of ICTs.

41

III. Recommendations

Discussions in the meeting suggested the following recommendations to support the

LLDCs to fully harness ICT for their development.

National ICT and Broadband policies

LLDCs should develop a national broadband policy and strategic plans ensuring

allocation of adequate resources for its implementation. The policy and strategic plan

should include how to develop a modern ICT infrastructure and Internet access that can

provide universal access. Such a strategy should be anchored in strong regulatory

frameworks and domestic ICT laws that conform to international standards, including the

Global ICT policy. The national ICT plan should fully reflect the cross-cutting nature of

ICTs and their pivotal role in national development. LLDCs should include in their

national ICT plan a strategy of how ICT can be used to promote trade facilitation and

address the major challenge of landlockedness.

Rapid development of the ICT infrastructure in LLDCs

Expand ICT infrastructure in order to improve the access of LLDCs to international high-

capacity submarine fiber-optic cables, low-price international voice services, higher-

speed internet access, and high-bandwidth backbone networks to connect towns and cities

within countries, across borders. The Government should develop National broadband

infrastructure to supplement the private sector broadband infrastructure

Increased use of the established infrastructure

Participants recommended the need for intensified use of the established infrastructure in

order to optimize the returns to infrastructure.

Increased investments from the private sector

Policy makers in LLDCs should promote investment in the ICT sector by creating an

enabling environment with investment-friendly policy frameworks, regulatory certainty

and fair competition in order to promote the role of the private sector. Encourage public

private partnerships through providing technical assistance.

Enhanced regional ICT connectivity and cooperation

Strengthen sub-regional and regional broadband infrastructure, promote harmonization of

ICT policies and regulatory frameworks and customs and border crossing procedures at

sub-regional or regional levels so as to provide for faster transit and border crossing of

goods from LLDCs. Foster knowledge and experience sharing amongst the LLDCs

themselves to allow partners to benefit from each other’s experiences.

Improved ICT use to promote trade facilitation

LLDCs and transit countries should increase the utilization of ICT to simplify, facilitate

trade and transport, in conjunction with harmonization of customs systems and

documentation. ICT is especially effective in applying the concepts of pre-clearing goods

before they actually arrive at a customs post, of pre-clearing vehicles and drivers and of

risk management and selectivity processes.

42

Increased use of ICT to spur economic growth in the production and industrial

sectors and to support broader sustainable development.

LLDCs should scale up utilization of ICT to improve efficiency and increase productivity

in all production sectors especially industry, agriculture and mining, thereby enhancing

process and value addition in order to reduce commodity dependence. They should

mainstream the use of ICT for SMEs and in the delivery of social services such as health,

and education, as well as in disaster preparedness, early warning, rescue, mitigation,

relief and response.

Capacity-building

Benefiting from ICTs requires substantial complementary investments in learning, and

reorganisation by all stakeholders. Increased capacity-building programmes to increase

ICT literacy in LLDCs, including women, children, the elderly, people with disabilities a

workforce and manpower with high levels of ICT proficiency and expertise. Encourage

the introduction of ICT at all levels of education. The use of social networking such as

facebook has contributed to people’s interest in the use of internet. Such interest should

be generated for e-health, e-education, e-governance etc. as well. Carry out public

awareness and sensitization on ICT and help them to have better understanding of the

new technologies.

Increase local and relevant content in ICTs

It is important to encourage increased local and relevant content for in order to boost use

of ICTs. For example in Uganda a requirement of 75% local content for broadcasters is

being promoted.

Improved data collection

Strengthen collection of ICT statistics and indicators and regular reporting at all levels –

national, regional and global to facilitate policy decisions and monitoring the

effectiveness of past policies.

Establishment and interconnection of research and education networks

Increase in research cooperation and regional computing capacity, generate scientific

excellence, bridge the digital divide, reduce 'brain drain', contribute to economic and

social well-being.

Support from Bilateral and multilateral development partners

Bilateral and multilateral development partners should increase their technical and

financial assistance to support ICT development in LLDCs. In particular the following

areas: Support LLDCs to develop the necessary infrastructure to access international

optical fibre networks; Improve the ability of LLDCs to use satellite by lowering

acquisition costs; Facilitate access to technologies and transfer of know-how on ICTs;

and Support the Aid for Trade initiative, giving special consideration to the requirements

of LLDCs.

43

South-South cooperation and triangular cooperation

South-South cooperation should foster and scale up partnership in the transfer of relevant

technologies and innovations, capacity building and financial assistance to LLDCs.

United Nations, International, Regional and Sub-regional organizations

Organizations of the United Nations system, and other international organizations, the

Regional Development Banks, and Regional Economic Communities, are invited to

provide more and better targeted technical assistance to support an accelerated ICT

development in LLDCs in particular technical assistance on how to utilize ICT to lower

trading costs, boost trade, and stimulate structural transformation. They should also

promote sharing of best practices and advise on new technologies.

enhancing ict development and connectivity for the landlocked...

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