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““ICT mainstreaming and the Quality ICT mainstreaming and the Quality of Development Coof Development Co--operationoperation””

International Meeting on ICT for Development Cooperation

Gijon, 10-12 February 2009

John DrydenEx-Deputy Director for Science, Technology and IndustryOECD, Paris

The views expressed are those of the author in his private capacity and do not necessarily represent those of the OECD or its Member governments.

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Objectives

• Set the context for the Roundtable on “ICT and the Quality of Spanish Development Co-operation”

• Five issues• Five messages

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Issues

• Impacts of ICTs on economic growth and social development

• Global efforts to harness ICTs for development goals

• ICTs and the MDGs• Aid effectiveness, “quality” in development

co-operation and the role of ICTs• Current prospects for development co-

operation

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Messages• OECD’s findings on the benefits of ICTs do not carry

over easily to developing countries.• Global initiatives in “ICT4D” have been long on

discussion and short on action.• ICT mainstreaming is indispensible to achieving the

MDGs• ICT mainstreaming is implicit rather than explicit in the

push for “aid effectiveness”.• The conjuncture is very poor so current prospects do not

appear good but there are a few developments that create opportunities both for development co-operation and for ICTs to enhance its quality and effectiveness.

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“ICT in Development Co-operation institutions” and “ICT4D”

ICT used for development co-operation (contributes to quality):• ICT aids management and delivery of development assistance (e.g. back

office and front office operations). – User: development co-operation institutions

• ICT “mainstreamed” as part of development assistance. Institutions explicitly integrate appropriate ICT element into what they deliver.

– User: the institutions, their partners (other development agencies, recipient institutions and governments) involved in development assistance projects.

ICT used for development (e.g. the MDGs)• ICT and development (“ICT4D”) includes the above plus all ICT production

and use to achieve goals of economic growth, development and social welfare including inclusion in global community.

– User: potentially everyone, whether or not it originates from development co-operation flows.

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1. OECD work on ICT• Predominantly concerns OECD countries• Committees of delegates from Member countries work

with the Secretariat• Core work (by directorate for Science, Technology and

Industry) in four main areas:– Communications and information services policy (formerly

“telecom”)– The Information Economy (formerly “IT”)– Security and Privacy– Statistics

• Specialised directorates work on ICTs (education, health, employment and social affairs, e-government, …)

• Little work on, or for, developing countries

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Core work on ICT at the OECD• Statistics, analysis, policy recommendations, sharing

best practices, policy co-ordination• Upcoming technologies and applications – their

implications for the economy, society and policy• Some major themes: electronic commerce; the Internet;

broadband; “convergence”• Ministerial meetings in Ottawa 1998 and Seoul 2008• Some current issues: digital content, protection of critical

infrastructure, spam and malware; ICTs and the environment

• Focus on role of innovation in the ICT industry and the role of ICT in innovation more generally (the “Innovation Strategy”)

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The Future of the Internet Economy(The Seoul Declaration, 2008)

Build a secure future for the Internet economy by setting out a policy framework and increasing international co-operation:

• Facilitate the convergence of digital networks devices applications and services

• Foster creativity in the development, use and application of the Internet

• Strengthen confidence and security• Ensure the Internet Economy is truly global

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What’s in the Seoul Declaration for developing countries?

Support / promote(… in the “truly global” part)• expanded access to the Internet and related ICTs• a competitive environment for the Internet Economy and the

opportunities it can bring for development• use by all communities (local content, language); promote inclusion

(incl. cultural and linguistic diversity)• Internationalised domain names• Co-operation in cyber-security• Potential to tackle global challenges including energy efficiency and

climate change(… in the other parts)• Open environment for creativity; interoperability and access;

education; IPv6; etc.

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ICTs, economic growth and social welfare: The Solow paradox… (is like the “aid paradox”)

OECD works to measure and analyse the impacts of ICTs, shed light on the processes and mechanisms and draw out the implications for policy and best practices.

Solow (1987) remarked, "You can see the computer age everywhere but in the productivity statistics." … but there is now much better evidence on the economic impacts of ICT at least three levels ofanalysis:

• macro-economic evidence on the role of ICT investment in capital deepening.

• sectoral analysis showing the contribution of (a) ICT-producing sectors and (b) ICT-using sectors (esp. services) to productivity growth.

• detailed firm-level analysis demonstrating the wide-ranging impacts of ICT in the economy, even in sectors where sectoral data suggest little was happening

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What about developing countries?• Some Emerging countries have been very successful – most spectacular

examples of development and poverty reduction have produced and/or used ICTs intensively.

– But OECD analysis doesn’t necessarily carry over easily to developing countries

Some relevant differences:• Barriers to entry and people’s needs are different, phones and broadcast

taken up quicker than computers and the Internet. – Practical issues (e.g. infrastructures needs are different for different technologies

and different countries). – Pre-paid cards if cash economy or few users have bank accounts.

• The relationship between ICT investments and economic growth in OECD countries is complex and uncertain and is highly dependent on complementary factors, many of which are less apparent in developing countries:

– Power supply, maintenance, skills and literacy, needs for “information intermediary” professions

– the degree to which society is networked, the extent to which its economy is reliant on services and high-end manufacturing rather than raw materials and agriculture, the availability of human skills, the effectiveness of local capital markets, the simplicity of business regulation, the ease with which local management can exploit opportunities.

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2. Global efforts to harness ICTsfor development goals

• Many international organisations involved actively, including OECD

• UN (UNCTAD, UNDP) and specialised agencies (UNESCO, ITU-D), World Bank group (inc. infoDev and WBI)

• Development Gateway, GKP• Private sector initiatives• Even DAC conferences

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Global co-ordination and dialogue on ICT for development and the “digital

divide” the OECD, the G8 and the UN• OECD global conferences, starting 1995 • The Millennium Summit, the MDGs and the UN

ICT Task Force• G8 Okinawa Declaration and the DOT Force• The WSIS

– IGF– GAID

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G8 Okinawa and the DOT Force• 2000 G8 Summit in Kyushu-Okinawa

– the “Okinawa Charter” on Global Information Society. – Digital Opportunity Task Force (DOT force) aimed at “integrating

efforts to bridge the digital divide into a broader international approach”.

• DOT Force– Multistakeholder (G8, 8 developing countries, IGOs, Private

sector, NGOs); secretariat from WB and UNDP– Objectives:

• Examine and promote consensus on potential of ICTs for development challenges (i.e not only “digital divide”)

• Promote co-ordination• Promote mobilisation of resources

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The DOT Force’s Report provided the “Genoa Plan of Action”

1. Support development of national e-strategies.2. Improve connectivity, increase access, and lower costs3. Enhance human capacity development, knowledge

creation and sharing.4. Foster enterprise, jobs and entrepreneurship.5. Strengthen universal participation in global ICT

governance.6. Establish a dedicated LDC [less developed country]

initiative for ICT-inclusion.7. ICT for health care and support against disease.8. Support local content and application development.9. Prioritise the contribution of ICTs in Development

Assistance Programmes.

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The UN ICT TF (2001-2005)• A recommendation of the Millennium Declaration • Principal mission: investigate how to harness the potential of ICTs, and

make its benefits accessible and meaningful for all, in particular the poor. Specifically, report on how ICTs can help achieve the MDGs

• Help preparations for the World Summit on the Information Society and the “Millennium+5” summit.

• Some activities:– by sponsoring regional meetings, global forums on topics where multi-

stakeholder dialogue (i.e. involvement of developing countries) was required– producing several publications and reports– round tables linking information and communication technology (ICT) with

science and technology and the Millennium Development Goals; – working group on ICT indicators and Millennium Development Goals mapping. – consultations for Global Forum on Internet Governance– special interests and projects such as e-schools and wireless internet for

developing countries initiatives, etc. • mandate expired at end - 2005,

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WSIS 2003 (Geneva) and 2005 (Tunis)

• ITU proposal• Geneva

– Declaration of Principles– Plan of Action

• Internet governance not resolved -- WGIG• “Digital Solidarity Agenda” – recommended integrating national e-strategies into

PRSPs and mainstreaming into development co-operation strategies Tunis Commitment; Financial Mechanisms: proposal for a “Digital Solidarity Fund” --TFFM

• Tunis – Commitment– Agenda for the Information Society

• Financial Mechanisms for Meeting the Challenges of ICT for Development• Internet Governance• Implementation and Follow-up• Global alliance on ICT for Development (UN-GAID) / Internet Governance Forum

(IGF)

• Partnership on Measuring ICT for Development

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3. The MDGs and ICTs1. Eradicate extreme poverty and hunger2. Achieve universal primary education3. Promote gender equality and empower women4. Reduce child mortality5. Improve maternal health6. Combat HIV/AIDS, malaria and other diseases7. Ensure environmental sustainability8. Develop a Global Partnership for Development

– Target 18: In cooperation with the private sector, make available the benefits of new technologies, especially information and communications

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Mainstreaming ICTs• UN ICT Task Force Report Mainstreaming ICTs for the

Achievement of the MDGs spelled out the value of ICTsas an “enabler” of the MDGs rather than as a production sector

• Integration of ICTs (national e-strategies) into national development strategies and PRSPs– Create ICTs and Development Framework– Align with development goals (e.g. national strategy for

development, or MDGs) and long-term needs of partner countries

– Use strengths of donor country to be selective and maximise value-added; prioritise development co-operation sectors

• Develop basic information systems using appropriate ICTs• Develop e-services to make their delivery more efficient, accessible,

trustworthy and transparent

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ICTs and Development Framework(model used is Finland)

Infrastructure•Availability of ICT

General infrastructure (electricity, etc)ICT Infrastructure (lines & access)

ICT applications

Information and KnowledgeAccess to Information

Basic education (literacy) Information society skills (ICT literacy)

Technical knowledgeBusiness knowledge

R&D

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IntegratingICT with

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4. Aid effectiveness – a historical overview

• Marshall Plan• Cold War• Focus on development and poverty

reduction (but increasing concerns about effectiveness)

• Millennium Summit and the Monterrey Consensus

• DAC Working Party on Aid Effectiveness• High Level Fora (Rome, Paris, Accra)

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The Paris Declaration, 2005

• Broad multi-stakeholder consensus on how to make aid more effective

• Five main principles – 12 indicators– Ownership (1)– Alignment (2-8)– Harmonisation (9-10)– Managing for results (11)– Mutual accountability (12)

• Quantitative targets for 2010• Indicator-based Monitoring surveys 2006, 2008

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Paris Declaration: Summary of Indicators of Progress

1. Partners have operational development strategies 2. Partners have reliable public financial management and procurement

systems 3. Aid flows are aligned on national priorities 4. Capacity will be strengthened by coordinated support 5. Use of country public financial management and procurement

systems 6. Parallel project implementation units to be avoided 7. Aid is more predictable 8. Aid is untied 9. Use of common arrangements or procedures 10. Joint donor missions and joint analytical work 11. Results-oriented frameworks 12. Mutual accountability

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How are we doing?Findings of monitoring report to Accra

• 33 countries in 2006 (in respect of 2005), 54 countries in 2008 (in respect of 2007), –covering about half total ODA

• Progress made in all areas but generally at pace slower than that necessary to meet 2010 targets– On track: PFM systems, alignment and co-ordination

of technical assistance with countries’ capacity development programmes; untied aid.

– Off track: the rest, especially making partners’development strategies more “operational” and effective (e.g. linking strategy to resource allocation in national budget); co-ordination by donors (delivery mechanisms, missions, country studies)

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Recommendations of the 2008 Survey

• Step up efforts to reinforce (recipient country) ownership and strengthen country systems.– Partner countries should take the lead– Donors should meet their commitments to use and strengthen country

systems– Donors and partners should work together

• Strengthen accountability– Donors and partners should increase efforts for mutual accountability– Work together to develop budget processes that reflect aid flows more

realistically• Cost effective aid management (reduce transaction costs)

– Donors should increase aid through programme-based approaches– Further effort to co-ordinate missions and analytic work

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“Quality” and “effectiveness”• Effectiveness: Quality “leverages” quantity;• Effectiveness: delivers results• Efficiency: quality, value for money, improving,

sustainable• Quality: (quantity-independent) policies and practices

that can contribute to aid effectiveness in achieving development co-operation goals (e.g. the MDGs)

• Efforts to measure quality directly by means of (quantity-independent) indicators show how hard it is.

• “Quality standards” exist (ISO 9000 family)

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Quality standards at ISO• ISO 9000 is the family of standards for quality management systems

(QMS). • Maintained by ISO• Administered by independent accreditation and certification bodies. • Certification does not guarantee quality, as such, rather that a

certain level of QMS is applied to the business processes. • Originated in manufacturing but employed across several types of

organization. Services sectors now account for the highest number of ISO 9001 certificates.

• Procedures covering key processes, record keeping, “customer”satisfaction, monitoring, review, continual improvement, etc.

• ISO 9000 (fundamentals of QMS); ISO 9001 (requirements of QMS); ISO 9004 (improvements to QMS), etc.

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Assessing aid quality

• Decide on quality criteria (e.g. Paris Declaration)• Two approaches

– “Quality-adjust” aid (award bonus or impose penalties on the extent to which the quality criteria are met) and divide-out

– Create quality index by aggregating list of indicators (measure quality directly)

• Agreement on methodology / indicator list / measurement criteria

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Center for Global Development Commitment to Development Index

ComponentsAidTradeInvestmentMigrationEnvironmentSecurityTechnology

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Aid scores of the CDI

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“Quality-adjusted” aid (CGD)

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Where does ICT come in?ICT is today implicit rather than explicit

in the push for quality• ICT aids management and delivery of development assistance by

development co-operation institutions (e.g. back office and front office operations).

• ICT “mainstreamed” as part of development assistance. Institutions explicitly integrate appropriate ICT element into the aid they deliver.

• Paris Declaration:– Knowledge management– Financial management and procurement systems – Analytical work– Co-ordination and co-operation

• Elimination of duplication of projects or missions • Networking and communication between the actors involved in development

assistance projects: development agencies, recipient institutions and governments, multilateral institutions and private foundations, specific project-oriented organisations (e.g. GAVI)

– Monitoring and Evaluation (transparency and accountability)

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5. Prospects (downside)• The global economy

– Global growth flat in 2009), negative for the OECD.– Developing economies will be hurt through a fall in commodity prices, increase in

cost of borrowing and a reversal of capital inflows. If growth goes below 3pc (most of them in 2009) then poverty reduction tends to reverse.

– Credibility of international institutions and crisis of confidence• Trade

– Doha round stalled– World trade expected to shrink in 2009, risk of protectionism in measures to

stimulate domestic economies – Developing countries will suffer collateral damage

• Environment– Energy security, food crisis, climate change – Negotiations have been difficult even in “good times”

• Aid– Donors’ aid budgets will come under greater pressure (developing countries

expect this) • The ICT sector

– investment and consumption cutbacks, credit and venture capital crunch, tough year ahead

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Prospects (upside)• The global economy

– Something is being done– International co-ordination

• Trade – G20 urged to give impetus to Doha process

• Environment. – General commitment to maintain goals and agree successor to Kyoto protocol in

Copenhagen, Dec. 2009.– Reduced oil prices take the pressure off but provide an opportunity for

investment in environmental technologies, both mitigation and adaptation to climate change.

• Aid– DAC aid pledge– General commitment to aid maintained (Strong statements by both Obama and

Clinton; Taro Aso: $17bn for development measures in Asia), need for value for money likely to strengthen aid effectiveness efforts

• The ICT sector– governments maintaining ICT investment. – Pace of research and development and innovation isn’t slackening much yet.

Cheaper more functional devices. OLPC rivalled by “netbook”, etc.)– ICT more closely linked with science and technology and innovation. – ICT can improve aid effectiveness

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Conclusion: ICT and the quality of development co-operation

• ICT – innovation and technological progress continues– Use of ICT accelerates the innovation process– Capabilities increasing while prices fall– Networking physical and virtual (Internet and web2.0)

• Development co-operation– Under pressure so need for quality will intensify– Most of the ICT tools exist– Recognition increasing that integration of ICT is

indispensible for quality in development co-operation

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• John Dryden• dryden01@hotmail.com• +33 1 47 41 26 25