ADDRESSING "DIGITAL GAP" BETWEEN DEVELOPING, DEVELOPED COUNTRIES STRESSED IN HIGH-LEVEL SEGMENT OF ECONOMIC AND SOCIAL COUNCIL

Press Release
ECOSOC/5895

ADDRESSING ‘DIGITAL GAP’ BETWEEN DEVELOPING, DEVELOPED COUNTRIES STRESSED IN HIGH-LEVEL SEGMENT OF ECONOMIC AND SOCIAL COUNCIL

How could information technology promote development in the face of the huge “digital gap” between the developed and developing countries? asked Nigeria’s Minister of Science and Technology this afternoon, as the Economic and Social Council continued its policy dialogue portion within the high-level segment of its 2000 substantive session.

Nigeria’s Minister, Ebitimi Banigo, speaking on behalf of the “Group of 77” developing countries and China, said that while the presentations of the World Bank, the World Trade Organization and others had revealed the importance of information technology and the central question he had posed, he had not yet found any convergence of views on funding or establishing basic infrastructure towards information technology.

The President of the World Bank, James Wolfensohn, said that the ability of individual countries to cross the "digital divide" depended among other things on leadership, which needed to be supportive of computers, and not afraid of them. Governments should create an environment in which information technology could function and where cheap connectivity was possible.

The Executive Secretary of the Economic Commission for Latin America and the Caribbean, Jose Antonio Ocampo, indicated six policy areas in which the process could be addressed: education; equitable access; extension of information technology into social services; development of local and regional software systems; world class telecommunication services; and a good legal infrastructure.

Concluding the policy dialogue, the President of the Council, Makarim Wibisono (Indonesia), said there seemed to be agreement that the great challenge in a period of unprecedented growth and prosperity was to assist the over 2 billion people living in poverty to get their share of development and growth through information technology.

The Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), Rubens Ricupero, the Special Representative of the International Monetary Fund, Reinhard Muzenberg, and the Director-General of the World Trade Organization, Mike Moore, also took part in the dialogue this afternoon, as did the Under Secretary-General for Economic and Social Affairs, Nitin Desai. Representatives of Belarus, Russian Federation, Pakistan, Rwanda, Suriname and Poland addressed participants with questions and comments.

Economic and Social Council - 1a - Press Release ECOSOC/5895 12th Meeting (PM) 5 July 2000

Following the adjournment of the meeting, a panel was convened with senior representatives from the regional development banks on the theme of the interconnection between information and communication technologies, finance and development. The panel was chaired by the Council's President. Panellists included the President of the Inter-American Development Bank; the Division Manager of Infrastructure and Industry, North Region, of the African Development Bank; and the Deputy Director of the Programme Department (West), Asian Development Bank.

Representatives of Brazil and Bolivia addressed the panel.

The Council will meet again at 10 a.m. Thursday, 6 July, to continue the high-level segment of its 2000 substantive session, on the theme Development and international cooperation in the twenty-first century; the role of information technology in the context of a knowledge-based global economy.

Economic and Social Council - 3 - Press Release ECOSOC/5895 12th Meeting (PM) 5 July 2000

Council Work Programme

The Economic and Social Council met this afternoon to continue the policy dialogue portion within the high-level segment of its 2000 substantive session. The theme of the high-level segment is “Development and international cooperation in the twenty-first century: the role of information technology in the context of a knowledge-based global economy.

At the opening of the policy dialogue at the morning meeting, statements were made by: James Wolfensohn, President of the World Bank; Mike Moore, Director-General, World Trade Organization (WTO); Eduardo Aninat, Deputy Managing Director, International Monetary Fund (IMF); Rubens Ricupero, Secretary-General, United Nations Conference on Trade and Development (UNCTAD); Jose Antonio Ocampo, Executive Secretary, Economic Commission for Latin America and the Caribbean; and Mark Malloch Brown, Administrator of the United Nations Development Programme (UNDP).

(For background on the session see Press Release ECOSOC/5892 issued 28 June.)

Policy Dialogue

GENNADY NOVITSKY, Deputy Prime-Minister of Belarus, said access to information and communication technology (ICT) was becoming a critical factor of economic growth and social advancement in the twenty-first century. In that regard, the role of the international economic community had become twice as critical in the promotion of ICT in the countries with insufficient levels of economic development. The issue should be examined from the perspective of a broader economic policy, where international trade and financial organizations were essential.

He said that in the modern world, any country -- no matter how big or small, rich or poor -- could become vulnerable. There was an ever-growing awareness of the need for all countries and international institutions to pursue a policy conducive to maximizing the benefits of globalization, while minimizing its risks. He supported the establishment of a system where every country and international institution would bear real responsibilities before the international community for adherence to the principles of international law and national economic interests.

The potential of the international economic community, primarily that of the Bretton Woods institutions, UNCTAD and WTO, was still far from being fully harnessed to tackling the problems of developing countries and countries with economies in transition. He looked forward to a substantial reduction in the number of trade barriers and protectionism in the developed countries.

A number of developing countries and countries with economies in transition had been actively redirecting their economies to market principles, providing greater access to their markets for companies, including those involved in ICT, from industrialized countries, he continued. Yet, that had not been matched by similar liberal actions by economically advanced countries. Reforms in the process of decision-making in WTO would be a timely measure. The process should be changed from consensus to vote.

The pace of liberalization and globalization should be reflective of the level of development of countries, as well as of their political, social and cultural diversity. It was critical to apply the principles of step-by-step liberalization towards developing countries and countries with economies in transition, making those principles inherent in all future trade negotiations and development programmes. In order to make global prosperity and economic advancement attainable, there was a need to resolve not just technological problems, but also of political and systemic issues.

EBITIMI BANIGO, Minister of Science and Technology of Nigeria, speaking on behalf of the “Group of 77” developing countries and China, said that there was a need to address one central question: how could information technology promote development in the face of the huge digital gap between the developed and developing countries? He had not heard any convergence on funding for putting up a basic infrastructure of ICT. Perhaps the World Bank or the United Nations Development Programme (UNDP) could address that issue. He asked how long-distance learning was designed and conducted and how the Heavily Indebted Poor Countries (HIPC) initiative and transfer of technology could be speedily implemented.

The representative of the Russian Federation asked what kinds of steps were being taken to coordinate the United Nations system to tackle the challenges of globalization and technology. Specifically, how would the WTO apply its modalities?

MIKE MOORE, Director-General of the World Trade Organization, said his organization was going through reams of paper on suggested ways to adapt its policies. Certainly the process needed to be improved and that was being done.

The representative of Pakistan asked how an agreed-upon target would be realized. How would financing for development be managed? How would it be implemented? How would the external debt problem be handled for developing countries?

The representative of Rwanda asked what could be done to narrow the gap between the developing and developed worlds? How would the needy be given access to the Internet when they did not have electricity?

NITIN DESAI, Under-Secretary-General for Economic and Social Affairs, said the Advisory Committee on Coordination (ACC) was very much involved in coordinating the United Nations system to help countries deal with globalization. For example, it provided guidelines through the Second Committee and within UNCTAD. The ACC also coordinated elements that strengthened the capacities of countries to participate. The developed world bore a responsibility for helping the developing countries close the digital divide.

JAMES WOLFENSOHN, President of the World Bank, said his organization had been very happy to work with the United Nations. As had been shown at the Social Summit last week, development goals would not be reached at the present rate of progress. However, the Social Summit had demonstrated that those goals could be reached. There were three ways in which to accelerate development. One was to gain a deeper understanding of poverty. Another was to be practical, rather than dogmatic, for example by raising efficiency. Third, more global partnerships aimed at reducing poverty needed to be created.

With regard to countries lacking the most basic requisites for climbing the Internet ladder upward, he said it was not a matter of having to choose either computers or bread, as had been pointed out in the morning. The question was how to give people both those things. That involved creating and nurturing a culture of learning. There were no concrete answers, but rather an approach. An Olympian plan was not needed. Rather, it was necessary to remain flexible and be user- oriented.

REINHARD MUNZBERG, Special Representative of the International Monetary Fund (IMF) to the United Nations, said globalization was a multifacted issue. Different institutions worked on various aspects and the issues came together in dialogues. It was important to see the overall picture and dialogues provided that. The Fund would continue to help coordinate elements of the United Nations system as components of globalization and technology were worked out, such as the question of external debt and its impact on the digital gap.

RUBENS RICUPERO, Secretary-General, UNCTAD, addressing the question of utilization of information technology in developing countries, said in reality there was already a substantial number of practical initiatives that had in common using information technology to improve the efficiency of developing countries in dealing with real problems. In 1993 UNCTAD had started a programme to create trade points in many countries, most of them in developing countries. It had also improved the efficiency of customs in 70 countries and had helped 30 countries in dealing with foreign debt management, which had saved tens of millions of dollars for some countries.

MIKE MOORE, Director-General of the World Trade Organization, said there was one area where ministers and governments had instructed agencies to cooperate -- allowing least developed countries to integrate into world trade. It was an area where a result was possible. His organization would try to help countries comply with existing treaties. International trade was not a matter of globalization; it was an old economic process. International trade as a percentage of gross domestic product was higher in 1914. Only the speed of that trade had changed.

The President of the Council, MAKARIM WIBISONO (Indonesia), noted that informal consultations had indicated several problems with the digital divide. Issues of training and improving content had to be addressed, as well as the legal framework. He asked the panellists how something could be done at the global level to address those issues.

JAMES WOLFENSOHN, President of the World Bank, said there was indeed a divide and that divide should not get bigger. What could be done specifically in individual countries depended upon, among other things, leadership, which needed to be supportive of computers and not afraid of them. Governments should create an environment in which information technology could function and where cheap connectivity was possible. Within a country, pockets could be created with the capacity to use the new technology. In Estonia, for example, every school was linked by the Internet. With free or cheap connectivity, the people would come together. He advised against having a lot of study groups on the subject, but rather to act.

JOSE ANTONIO OCAMPO, Executive Secretary, Economic Commission for Latin America and the Caribbean, emphasized that from regional consultations it was clear that there were six policy areas in which the process could be addressed: education, without which the process could not start; guaranteeing equitable access, including communal services; promotion of the extension of information technology into social services, particularly health services; development of local and regional software systems; world class telecom services; and a good legal infrastructure. The major task of the international community was to support programmes in those areas.

NITIN DESAI, Under-Secretary-General for Economic and Social Affairs, reminded members that the focus of the discussion should be on the use of information technology, not development of it.

Mr. MOORE, Director-General, World Trade Organization, said that many countries had communications policies that were running counter to information technology. The answer to the issue lay indeed with governments and leaders. There was also an age divide. In that respect, the young people could teach.

The representative of Suriname asked how the World Bank would participate in helping developing country governments over the structural obstacles of narrowing the digital gap. What kind of financial mechanism could be created?

The representative of Poland asked whether the so-called “Washington consensus” on development was valid or obsolete?

The representative of Rwanda said his concerns needed further address. The world was said to be fully digitalized, yet his country was not. Even outdated computers could not be used there. How would people be able to use the latest technology? How would the teachers of the teachers be taught?

Mr. WOLFENSOHN, President of the World Bank, said the digital divide had to be addressed differently than it had been so far. Money was often considered the major factor in becoming digitalized, but other elements were just as important. If someone had a plan and the conditions for putting the digital system in place, the money could be gotten, certainly as a loan and hopefully as a grant. One key concern to be faced was that many of those responsible for obtaining computers within countries were scared to get involved in technology -- for example, many older people. The problem had to be approached on a country-by-country basis, perhaps through UNDP. Further, even more important than money for bringing technology into a country was the country’s willingness to create an environment where the public and private sector could come together.

With regard to the Washington consensus and the statement of the United States Treasury Secretary, Lawrence Summers, that morning, Mr. Wolfensohn said there was no such thing as a Washington consensus, because it simply did not hold anymore. Instead, there was now a recognition that a legal system and a financial system were important factors in encouraging the growth of technology in a country. Creating that environment also meant the government needed to be strengthened. The right environment for development was one where equity was possible and rights were protected; otherwise benefits would go to the powerful. Equally important was education. All those factors were part of a package that nurtured development.

The President of the Council, Mr. WIBISONO (Indonesia), said there seemed to be agreement that the great challenge in a period of unprecedented growth and prosperity was to assist the over 2 billion people living in poverty to get their share of development and growth through information technology.

The meeting also confirmed that as the United Nations system entered the new millennium, the overarching goal was to tap more effectively the benefits of globalization for all people in the world. Information and communication technology could play a crucial role in meeting the challenge of bridging the digital divide. Spreading the benefits of globalization to where they were most needed would require conducive national policies and international support.

Panel Discussion

A panel discussion with senior representatives from the Regional Development Banks was held on the theme of the interconnection between information and communication technologies, finance and development. The panel was chaired by the Council President. Participants included: Enrique Iglesias, President of the Inter-American Development Bank; Cordje Bedoumra, Division Chief, Infrastructure and Industry, North Region, African Development Bank; and Rajat Nag, Deputy Director, Programme Department (West), Asian Development Bank.

ENRIQUE IGLESIAS, President of the Inter-American Development Bank, said many technological sectors in his region were beginning to grow. Those included the use of technology for human resource development, for empowering citizens to participate and gain access, for promoting democratic processes and for enabling nations to create jobs and participate. The big challenge was to improve the quality of opportunities. That could be done through alliances of private, public and civic elements formed specifically for improving the quality and range of opportunities. Another aspect of technological development was whether a new development paradigm was being created. New instruments were being created and that went beyond just improving the means of promoting development.

From the Bank’s perspective, the world was entering an age of an interim paradigm, not a new one, he said, because the same basic questions remained on the table. Production and sustainable growth both had to be increased, and both had to better meet social demands. The goal was to focus the new technologies so they helped achieve a better quality of growth and competitiveness, at the same time that instruments of intervention were made more accurate. The overall goal was social equity.

What could be concretely done to have a real digital democracy in South America? he asked. Education, for one. Sensitization of social leaders through social centres, for another. To achieve the digital connectivity of a society, best practices and ways of increasing productivity could be shared and new areas of investment could be produced. His organization also supported regional training. The problems of using technology for development were complex and they should not be separated from the social dimension, if digital democracy was to be achieved. That was the central goal for the next century.

Mr. BEDOUMRA, Division Manager of the Infrastructure and Industry North Region, African Development Bank, said the situation of Africa was a special one, in the sense of the challenges to be met. The situation was characterized by high poverty, a drop in the share of commodities in the world market and the decline in investments. There was a consensus that the growth rate in Africa of 3.5 per cent had to be doubled.

Development of human capital, including education, health and basic food supplies, was necessary, he said. A challenge to be met over the long-term was the protection of the environment. Regional integration to attain scales of

economy was another challenge, as was the furthering of economic reforms. Information technology should enable Africa to make a leap forward. Important investments could be made in information technology to accelerate development and access to basic education.

The African Development Bank had made good governance a priority. Resources had to be managed wisely. Thanks to information technology, the population had access to reliable information and had become more informed. Through information technology, civil society might take an active part in the choices for development. The Bank was making an ongoing effort to contribute to the development of information and communication technology in Africa. It was being integrated into the Bank’s projects, as the Bank tried to become a knowledge centre for Africa, he said.

RAJAT NAG, Deputy Director, Programme Department (West), Asian Development Bank, said the key to narrowing the digital divide was accessibility of information. The content of the Internet was not appropriate or useful if people did not have the basic skills to make use of it. His organization supported information and communication technology. Even so, it maintained it was important to go back to the basics. The information technology of today was based first of all on a sound telecommunication infrastructure. The construction of such an infrastructure had been critical in helping countries to digitalize. Each country needed to construct its own program on how to enter the technological age.

While money was not the only determining factor in the spread of technology, he said money was scarce for meeting the basic needs of many people in such areas as health services and education. Only 5 per cent of the people in his region had access to the Internet. For the other 95 per cent to gain access and close the digital divide, basic services had to be provided and ensured.

The representative of Brazil supported the position of Mr. Iglesias, President of the Inter-American Development Bank, and suggested that some of his ideas could be used as a pilot project for the region.

The representative of Bolivia, asked that in the final declaration some of the conclusions of the ECLAC meeting on technology be included. He said a digital divide already existed. The market could not do everything. Bridging the gap also depended on government policies.

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