Bringing the Benefits of IT to Emerging Markets

It's time to examine opportunities in emerging markets.

By Kiyotaka Akasaka

PAGE 2

Governments must of course do their part, by supporting fair competition and business innovation through sound regulatory systems. Particularly important at this juncture is the development of policies and regulations that will help realize the full benefits of Internet protocol convergence.

Many IT companies feel hampered by limited knowledge of local needs. But international actors such as the United Nations, the International Telecommunication Union and the World Bank have a great deal of expertise in these markets, and they stand ready to provide information on their technical and regulatory frameworks as well as on specific local needs.

Various initiatives are already well under way. MIT Media Lab founder Nicholas Negroponte has developed the $175 "XO" laptop for Third World children. Technology leaders such as Intel and Cisco Systems have invested billions to connect schools, bring low-cost financing of personal computers and establish research and development facilities in emerging countries. The Geneva-based Digital Solidarity Fund channels voluntary corporate financing to specific and urgent needs. The U.N. Global Alliance for ICT and Development, chaired by Intel's Craig Barrett, works to meld the efforts of all those seeking to spread technology globally.

But to really boost the spread of IT, a more systematic approach is needed. This is no longer an area for nonprofit activity or for showcasing corporate responsibility. Some leading companies have woken up to the business opportunities that emerging economies represent. The mobile communications industry, which now has more than 800 million users in developing countries, has, after all, developed very healthy and profitable markets in precisely these markets.

At the Silicon Valley meeting, many participants argued that investing in new business models and technology solutions tailored for developing countries would help meet people's needs and create new markets and business opportunities. Public-private partnership "are what the world needs and what governments want for their citizens," Barrett said at the meeting. "It's the right thing to do and it makes business sense."

"Closing the digital divide should not be seen as charity, but as a sound business practice," added Hamadoun Touré, the head of the International Telecommunication Union.

And government interest is keen. Many developing countries have adopted e-strategies that call for more access and use. A World Bank review of 40 e-strategies created by developing countries found that the vast majority—more than 85 percent—seek to expand IT use in governments and schools, to develop telecommunications infrastructure and to provide an adequate legal and regulatory framework.

Between 2000 and 2004, the fastest growth of Internet users—370 percent—occurred in North Africa and the Middle East. "There is incredible enthusiasm among the poorest countries to be part of the information society," according to International Telecommunication Union expert Cosmas Zavazava. "This, coupled with the emergence of new, low cost and affordable technologies, especially wireless, will hasten the pace towards universal access."


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