34309 The Global Information Technology Report 2003­2004 Towards an Equitable Information Society Soumitra Dutta Bruno Lanvin Fiona Paua New York · Oxford Oxford University Press 2004 The Global Information Technology Report 2003­2004: Oxford University Press Towards an Equitable Information Society (GITR) is a special project within the framework of the Global Oxford New York Competitiveness Programme. The GITR is the result of a Auckland Bangkok Buenos Aires Cape Town collaboration between the World Economic Forum, the World Chennai Dar es Salaam Delhi Hong Kong Bank, and INSEAD, France. Istanbul Karachi Kolkata Kuala Lumpur Madrid Melbourne Mexico City Mumbai Nairobi São Paulo Shanghai Singapore At the World Economic Forum: Taipei Tokyo Toronto Professor Klaus Schwab Executive Chairman Copyright © 2004 José María Figueres-Olsen by the International Bank for Reconstruction and Development / Co-Chief Executive Officer the World Bank, World Economic Forum, Dr Augusto Lopez-Claros and INSEAD Director Jennifer Blanke Published by Economist Oxford University Press, Inc. Emma Loades 198 Madison Avenue Manager New York, New York 10016 Fiona Paua http://www.oup.com Economist Catherine Vindret Oxford is a registered trademark of Oxford University Press Research Associate Saadia Zahidi The findings, interpretations, and conclusions expressed herein Research Associate are those of the author(s) and do not necessarily reflect the views of the Board of Executive Directors of the World Bank or the At INSEAD: governments they represent. Professor Soumitra Dutta Roland Berger Professor of Business and Technology The World Bank does not guarantee the accuracy of the data Dean for Executive Education included in this work. The boundaries, colors, denominations, Amit Jain and other information shown on any map in this work do not Research Program Manager imply any judgment on the part of the World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. At the World Bank: Bruno Lanvin All rights reserved. No part of this publication may be Manager of the Information for Development Program reproduced, stored in a retrieval system, or transmitted, (infoDev) in any form or by any means, electronic, mechanical, Heini Shi photocopying, recording, or otherwise, without the prior Program Officer, infoDev permission of Oxford University Press. A special thank you to Mitchell & Company Graphic Design for ISBN 0-19-517361-9 their excellent work on the report cover. Printed in the United States of America Thank you to Pearl Jusem and her team at DBA Design for the on acid-free paper great interior graphic design and layout. We are very grateful to Victor Echevarria Icaza and Annette Heimlicher for invaluable research assistance. The terms country and nation as used in this report do not in all cases refer to a territorial entity that is a state as understood by international law and practice. The term covers well-defined, geographically self-contained economic areas that may not be states but for which statistical data are maintained on a separate and independent basis. Contents Preface ........................................................................................................................................v Introduction .................................................................................................................................vii Executive Summary .......................................................................................................................ix The Networked Readiness Index Rankings......................................................................................xi PART 1 CHAPTERS....................................................................................................1 1 The Networked Readiness Index 2003­2004: .................................................. 3 Overview and Analysis Framework Soumitra Dutta and Amit Jain 2 Global Diffusion of ICT: A Progress Report.....................................................23 Fiona Paua 3 Poverty "e-Readication" ..................................................................................... 57 Using ICT to Meet MDG: Direct and Indirect Roles of e-Maturity Bruno Lanvin and Christine Zhen-Wei Qiang 4 Towards a New Regulatory Compact ...............................................................71 Scott Beardsley, Ingo Beyer von Morgenstern, Luis Enriquez, and Walter Verbeke 5 CASE STUDY: Little Finland's Transformation to a Wireless Giant .....................87 Petri Rouvinen and Pekka Ylä-Anttila PART 2 COUNTRY PROFILES...............................................................................109 How to Read the Country Tables .......................................................................................... 111 List of Countries .................................................................................................................. 112 PART 3 DATA PRESENTATION.............................................................................215 The Networked Readiness Index: Methodology...............................................................217 How to Read the Data Tables ............................................................................................... 221 List of Data Tables and Key Indicators .................................................................................. 223 List of Authors........................................................................................................................... 301 List of Partner Institutes............................................................................................................. 305 The release of the Global Information Technology Report Preface 2003­2004 comes in a markedly different context than the two previous editions. The very first edition, the Global Information Technology Report 2001­2002 was released at a time when the technology sector was reeling from its peak and the global economy was entering a period of diminished growth expectations. Similarly, last year's Report was presented against the backdrop of continued consolidation in the technology sector and heightened uncertainty in the global economy. In contrast, this year's Report comes at a time of rising optimism. Signs are quite clear that a nascent recovery of the global economy is underway. The technology sector, in particular, now exhibits visible indications of a turnaround, having benefited from the recent period of deep restructuring and extensive streamlining. These developments, together with the unmistakable gains achieved thus far under a more challenging environment, augur very well for creating the conditions necessary for promoting a global information society. Poised at the threshold of a turning point, this is certainly not the time to be complacent. The use and application of information and communication technologies (ICT) remain the most powerful engines for economic growth. ICT also continues to be the best hope for developing countries to accelerate the development process. More than ever, we must v all intensify our efforts to enable individuals, businesses, Professor Klaus Schwab and governments to benefit more fully from the use and World Economic Forum application of ICT. Preface Recognizing the importance of benchmarking performance and disseminating best practices, the Global Information Technology Report series of the World Economic Forum assesses the progress of networked readiness in countries, revealing the obstacles that prevent countries from fully capturing the benefits of ICT. Beyond just providing a yearly "snapshot" of networked readiness, what we want to do with the Report is establish a process whereby governments, businesses and other stakeholders can evaluate progress on a continual basis. It is therefore most fitting that this year's Global Information Technology Report is being launched at a historic moment when leaders from around the world are gathering in Geneva on the occasion of the World Summit for Information Society. The theme of this year's Report,"Towards a More Equitable Information Society" is one that reflects the relevance of ICT to economic and social development. In keeping with our theme, we have made a special effort to include in this year's Report 20 more developing countries, mostly from sub-Saharan Africa. This brings the country coverage up to 102 countries, making the Report the most comprehensive assessment of networked readiness in the world. We commend the contributors to this Report for their vision and commitment to producing a valuable resource for policymakers and business leaders who are engaged in the task of promoting networked readiness. We especially thank the editors of the Report, Soumitra Dutta of INSEAD, Bruno Lanvin of the infoDev Program of the World Bank, and Fiona Paua of the World Economic Forum for their leadership roles in this project. Appreciation also goes to Augusto Lopez-Claros, the Director of the Global Competitiveness Programme, and his team: Jennifer Blanke, Emma Loades, Catherine Vindret, and Saadia Zahidi. Finally, we would like to extend our appreciation to our global network of Partner Institutes who have provided an invaluable contribution in conducting our Executive Opinion Survey, without which this Report would not have been possible. vi Preface Connectivity for the Next Five Billion Introduction Helping the world to communicate has never been as important and as relevant as it is today. Working together to provide "Connectivity for the Next Five Billion" is the equivalent of giving the disenfranchised population of this world a technology-based passport out of poverty and into well-being! And today, when there are signs of renewed global economic activity, connectivity can also be a new engine of growth for a sustainable recovery by the technology sector. On the supply side, we see constant increases in the offering of ICT products that cater to consumers in the developed world. They are the ones with the resources to buy. And they also have an insatiable appetite for the latest version of software, more powerful microprocessors, and the most newly designed personal computer. In the case of technology, however, does it have to be the latest version all the time, for all markets? Or can we adequately "connect" and empower the poor of the world--at a good profit--with less than the most powerful version of everything? We need to develop the connectivity equivalent of what Grameen Bank in Bangladesh or Banco Sol in Bolivia are to financial services, with their successful micro-credit programs. With this type of approach, other sectors of the vii José María Figueres-Olsen global economy are not only creating new markets and capitalizing on new business opportunities, but they are also World Economic Forum enabling people to unleash their sense of entrepreneurship and contribute to their own well-being! Introduction On the demand side, there is increasing awareness about the importance of putting in place strong programs to deploy ICT for health, education, smart cards (thus lowering intermediation costs), environmental programs, and government services, and even to attracting foreign direct investment. This strategy pays off handsomely in terms of job creation and economic growth. There persists, however, a need to work collectively to broaden popular understanding in the developing world about what ICT can do. And there is also a need for committed leadership to spur initiatives and actions that will lead to greater connectivity. The Global Information Technology Report 2003­2004 helps raise the profile of these issues, instill a healthy sense of competition amongst nations, and provide them with good insight on how to maximise return on their ICT investment. We are therefore proud to contribute to better livelihoods around the world through the findings and solutions that the GITR offers. During the dot-com boom years, information and Executive communication technologies (ICT) attracted a great deal of hype. Corporate executives, consultants, and academics Summary believed that the primary reason for acquiring ICT was to achieve rapid, exponential growth and to penetrate new markets with radical new business models. Companies sought to replicate the "Amazon.com" model, and expectations from technology were unrealistically high. In the midst of this technology frenzy, governments raced to declare their e-visions and e-strategies; several projects and initiatives had as their intent the closing of the "digital divide," because ICT was seen as a critical enabler for the development of emerging economies. The bursting of the technology bubble and the dot-com crash of the year 2000 was a brutal shock to many technology companies. The ensuing market turmoil and investor disenchantment led to widespread consolidation in many technology sectors. Corporate ICT budgets tightened, and spending on ICT-related projects slowed down. These changes in activity led to a paradigm shift and a realistic moderation of expectations; the focus of ICT projects shifted from achieving fast growth to enhancing productivity and e-enabling core business processes. Corporations began concentrating on the visible impact of and measurable return on their investments in ICT. Government ICT projects were similarly scrutinized for value and effectiveness. ix The year 2003 has seen a reversal of the negative sentiments Soumitra Dutta, INSEAD in the financial markets. Despite a turbulent geopolitical Bruno Lanvin, infoDev environment, markets have started a new and positive cycle. and Summary Initial signs of a global recovery are visible, and the ICT Fiona Paua, World Economic Forum sector has benefited from this renewed positive sentiment. Investments in ICT are growing, albeit slowly. Technology Executive stocks have benefited from renewed investment and have partly recovered, although most stocks are still quoted at a fraction of their peak values. After having made progress in e-enabling their core business processes, corporations are once again looking to exploit the transformational potential of ICT. Governments have also benefited from their own ICT investments--the use of ICT has spread rapidly amongst large segments of the world's population and the implementation of e-government projects has improved the effectiveness of many administrative processes. It is in this setting and with an optimistic note that we publish the Global Information Technology Report 2003­2004. The third in the series of reports, this Report continues to provide a comprehensive assessment of the networked readiness of economies globally. Using the same framework as that used in last year's research, the current Report and research covers 102 of the world's leading economies. Networked readiness is examined by studying the environment for ICT in these economies--market, as well as political, regulatory, and infrastructure factors--and by analyzing the readiness and usage of ICT from the perspective of three key stakeholders: Four McKinsey consultants, Scott Beardsley, Ingo Beyer individuals, businesses, and governments. von Morgenstern, Luis Enriquez, and Walter Verbeke, present the chapter that follows, entitled,"Towards a New This Report is divided into three main sections: essays, country Regulatory Compact." This chapter describes four key trends profiles, and data tables. The essay section draws upon the in telecommunications that inevitably will have a tremendous expertise of scholars, practitioners, policymakers, and business impact on the future of the industry and its key stakeholders. leaders. The country profiles section provides a detailed, They also point out the four regulatory issues that relative snapshot of each economy's networked readiness. Data stakeholders such as operators, regulators, and policymakers tables that contain rankings of economies for every variable need to consider in order to successfully manage industry discussed are presented at the final section of the Report. trends and be better prepared for changes in the industry. The first chapter,"The Networked Readiness Index The final chapter,"Little Finland's Transformation to a 2003­2004," by Soumitra Dutta and Amit Jain, presents Wireless Giant," by Petri Rouvinen and Pekka Ylä-Anttila, the overall results of the research including the relative traces Finland's transformation from being one of the least levels of networked readiness of different economies. After ICT-specialized countries to being one of the most specialized analyzing the performance of key economies in terms of the ones. The authors point out that in pre-Nokia Finland, the "Environment" for ICT, the "Readiness" of key stakeholders dominant industries in the country were forestry and timber. to benefit from ICT, and finally the level of "Usage" of ICT, They show how Finland, a country with a low technology the authors investigate the relation of networked readiness base and small population, succeeded in transitioning into an to levels of competition in industry and to GDP. The chapter information economy and becoming the current dominant also takes a look at the digital divide through the lens of player in the global mobile communications industry. networked readiness, and concludes that there is evidence to support the digital convergence of nations. The second section of the Report contains the country profiles for each of the 102 economies assessed. This is In her chapter,"Global Diffusion of ICT: A Progress Report," followed by the third and final section, a presentation of the Fiona Paua of the World Economic Forum discusses the data tables and statistical methodology used to compute the current state of diffusion of ICT across the world. Drawing on Networked Readiness Index. These last two sections of the x analysis of empirical data, Paua identifies current trends such Report allow the reader to gain a deeper understanding of the as the rapid growth in ICT diffusion occurring in developing networked readiness of a particular economy. countries and the fact that the highest penetration rates are still in developed countries. She reveals that the leading ICT leaders can use the essays and the two data-oriented Summary markets for ICT today are a mix of developed and developing sections as a guide for designing and structuring policy countries, and that there is vast market potential for ICT in measures for the key ICT stakeholders--individuals, the more populous developing countries. Aside from global businesses, and governments--in order to capture the benefits Executive trends, the analysis presents regional profiles that capture of ICT. Moreover, given that this year's Report contains those countries that are significantly improving ICT access the third computation of the Networked Readiness Index and those countries that are lagging behind. As the world rankings, we have the beginnings of valuable time-series data. gears up for economic recovery and the technology sector This can help policymakers compute their current networked stands poised for a rebound, the chapter offers policymakers readiness trajectory and take measures to ensure that progress and regulators four policy imperatives and four market continues in the desired direction. implications drawn from the analysis. It is important to note that while ICT is an essential enabler Bruno Lanvin and Christine Zhen-Wei Qiang of infoDev of business growth and economic development, it also holds (The World Bank) present in their chapter,"Poverty the potential for disruptive change. There are many examples `e-Readication' Using ICT to Meet MDG: Direct and of disruptive change, such as that which occurred in Finland, Indirect Roles of e-Maturity," the role of ICT in poverty Singapore, Korea, and India, to name a few countries. These eradication. Beginning with a discussion of the Millennium countries all succeeded in jump-starting development, Development Goals of the United Nations General Assembly, productivity, and growth by leveraging the transformative they attempt to trace the trajectory of development and potential of ICT. Our hope is that this Report will help value-added resulting from the deployment of ICT. They readers to leverage ICT effectively for their chosen trajectories argue that improving e-readiness gives rise successively of progress. to competitiveness, value/wealth creation, employment/ empowerment and, finally, the achievement of the goal of poverty eradication. Part 1 The Networked Readiness xi Index Rankings The Networked Readiness Index Rankings 2003 NRI RANK COUNTRY SCORE NRI RANK COUNTRY SCORE 1 United States 5.50 52 Trinidad and Tobago 3.37 2 Singapore 5.40 53 Jamaica 3.36 3 Finland 5.23 54 Uruguay 3.35 4 Sweden 5.20 55 Botswana 3.34 5 Denmark 5.19 56 Turkey 3.32 6 Canada 5.07 57 Dominican Republic 3.32 7 Switzerland 5.06 58 Panama 3.31 8 Norway 5.03 59 Namibia 3.28 9 Australia 4.88 60 Colombia 3.28 10 Iceland 4.88 61 Romania 3.26 11 Germany 4.85 62 El Salvador 3.22 12 Japan 4.80 63 Russian Federation 3.19 13 Netherlands 4.79 64 Morocco 3.19 14 Luxembourg 4.76 65 Egypt 3.19 15 United Kingdom 4.68 66 Sri Lanka 3.15 16 Israel 4.64 67 Bulgaria 3.15 17 Taiwan 4.62 68 Vietnam 3.13 18 Hong Kong SAR 4.61 69 Philippines 3.10 19 France 4.60 70 Peru 3.09 20 Korea 4.60 71 Tanzania 3.09 21 Austria 4.56 72 Venezuela 3.09 22 Ireland 4.55 73 Indonesia 3.06 23 New Zealand 4.48 74 Ghana 3.06 24 Belgium 4.43 75 Macedonia, FYR 3.05 xiii 25 Estonia 4.25 76 Pakistan 3.03 26 Malaysia 4.19 77 Serbia 2.98 27 Malta 4.15 78 Ukraine 2.96 Rankings 28 Italy 4.07 79 Nigeria 2.92 29 Spain 4.01 80 Uganda 2.90 Index 30 Slovenia 3.99 81 Senegal 2.90 31 Portugal 3.94 82 Gambia 2.85 32 Chile 3.94 83 Cameroon 2.82 Readiness ed 33 Czech Republic 3.80 84 Kenya 2.81 34 Greece 3.76 85 Zambia 2.80 35 Latvia 3.74 86 Guatemala 2.76 Network 36 Hungary 3.74 87 Algeria 2.75 heT 37 South Africa 3.72 88 Malawi 2.71 38 Thailand 3.72 89 Ecuador 2.68 39 Brazil 3.67 90 Bolivia 2.66 40 Tunisia 3.67 91 Paraguay 2.62 41 Slovak Republic 3.66 92 Madagascar 2.60 42 Lithuania 3.63 93 Bangladesh 2.57 43 Mauritius 3.62 94 Nicaragua 2.56 44 Mexico 3.57 95 Zimbabwe 2.53 45 India 3.54 96 Mali 2.52 46 Jordan 3.53 97 Mozambique 2.51 47 Poland 3.51 98 Honduras 2.41 48 Croatia 3.48 99 Angola 2.32 49 Costa Rica 3.46 100 Haiti 2.27 50 Argentina 3.45 101 Ethiopia 2.13 51 China 3.38 102 Chad 2.09 Part 1 Chapters Overview Chapter 1 The Networked Readiness Index (NRI) is defined as a nation's or community's degree of preparation to participate in and The Networked benefit from information and communication technology (ICT) developments. This is the third year that the NRI is being published. It represents a continuation of our efforts to Readiness Index better comprehend the impact of ICT on the competitiveness of nations. Building upon last year's collaboration between 2003­2004: INSEAD, the World Bank (infodev), and the World Economic Forum, the current research provides a continuity of data and analysis for the evaluation of prior decisions and actions, and Overview and Analysis for the enhancement of planning for the future. Framework The ICT based dot-com boom and thriving global economy of the late 1990s gave way to economic stagnation in 2001­2002, and we now see the first few signs of recovery. In parallel, the perceived impact of ICT for companies and nations has also evolved. While the dot-com boom years were characterized by interest in the potential of ICT to transform industry business models, the focus in businesses over the last couple of years has shifted to productivity gains from ICT-enabled processes. Nevertheless, the fact remains that ICT forms the backbone of most industries such as banking, airlines, and publishing, and is an important value-adding component for others. Governments and regulators also continue to see progress in 3 ICT as fundamental to national progress. Policies are being put in place to increase ICT penetration in society and to Soumitra Dutta, INSEAD reduce the digital divide. Tariffs continue to be reduced and Amit Jain, INSEAD levels of competition increased to provide incentives for 2003­2004 businesses to invest effectively in ICT. Keeping this in mind, and realizing the value for decision makers of a reliable and Index consistent benchmark of networked readiness, the current research effort extends the set of 82 countries covered in the 2002­2003 study to a total of 102 countries. Readiness ed This chapter presents the Networked Readiness Framework that has been used to assess the relative degree of networked Network readiness and compute the NRI of 102 countries. The heT discussion in this chapter is divided into five main sections. 1 First, there is a brief recapitulation of the Networked Readiness Framework. Second, the results of the research Chapter and analysis are presented in the form of a relative ranking of nations based on their degrees of networked readiness. Third, we take a closer look at the three component indexes (and their constituent subindexes) composing the NRI, and how various countries have fared on each of these dimensions. In the fourth section, some key relationships are investigated: the relationship of Networked Readiness with GDP per capita; the link between ICT competition, the affordability of services and the NRI; the evolution of the NRI over the last three studies and a look at the evolution of the digital divide. In the fifth and concluding section, some of the key challenges faced while conducting the study are presented. The Networked Readiness Framework key stakeholders (individuals, businesses, and governments) 2003­2004 to use ICT, and finally the usage of ICT amongst these stakeholders. A discussion in greater detail on the structure The Networked Readiness Index (NRI) is defined as of the framework is presented in a later section entitled, "the degree of preparation of a nation or community to "Disaggregating the Networked Readiness Index." participate in and benefit from ICT developments." The NRI was introduced in 2001­2002 (Kirkman et al 2002) and NRI Results for 2003­2004 was refined further in 2002­2003 (Dutta et al 2003). The Networked Readiness Framework used to compute the NRI The overall results for the Networked Readiness Index 2003­ rankings this year (2003­2004) remains identical to that used 2004 are presented in Table 1. The United States comes out to compute the NRI rankings for 2002­2003.1 The Networked with the top rank, followed by Singapore. The rapid evolution Readiness Framework and its components provide not only a of Singapore2 from the 8th rank in 2001­2002 to the 3rd rank model for evaluating a country's relative development and use in the 2002­2003 study and finally to 2nd place in the current of ICT, but also allow for a better understanding of a nation's ranking analysis is the consequence of the government's strengths and weaknesses with respect to ICT. proactive efforts to promote ICT penetration and usage. Finland, Sweden, and Denmark occupy the 3rd, 4th, and 5th Figure 1 depicts the structure of the Networked Readiness places, respectively. Canada gets the 6th position, followed Framework used in this research. The Networked Readiness by Switzerland, Norway, and Australia. Iceland comes in 10th Framework is based upon the following premises: place. Of note also are: · There are three important stakeholders to consider in the · In the top five places, three positions go to Scandinavian development and use of ICT: individuals, businesses, and countries: Finland (3), Sweden (4), and Denmark (5). governments; · Luxembourg enters the top 25 moving from the 27th place · There is a general macroeconomic and regulatory in the 2002­2003 rankings to position 14. environment for ICT in which the stakeholders play out · Korea, with its very high Internet penetration, and one their respective roles; of the highest usages of broadband in the world · The degree of usage of ICT by (and hence the impact of is ranked 20. 4 ICT on) the three stakeholders is linked to their degrees of readiness (or capability) to use and benefit from ICT. · Estonia is the leader amongst the eastern European countries with a rank of 25. As shown in Figure 1, the NRI is a composite of three One sees in the top 25 rankings the following regional 2003­2004 components: the environment for ICT offered by a given groupings: country or community, the readiness of the community's Index Figure 1. The Networked Readiness Index Framework Readiness ed Index Component indexes Subindexes Network heT 1 Market Environment Environment Political and Regulatory Environment Chapter Infrastructure Environment Individual Readiness Networked Readiness Readiness Business Readiness Index Government Readiness Individual Usage Usage Business Usage Government Usage Constituent relationship Source: INSEAD Table 1. The Networked Readiness Index Rankings COUNTRY SCORE NRI RANK COUNTRY SCORE NRI RANK COUNTRY SCORE NRI RANK United States 5.50 1 Latvia 3.74 35 Philippines 3.10 69 Singapore 5.40 2 Hungary 3.74 36 Peru 3.09 70 Finland 5.23 3 South Africa 3.72 37 Tanzania 3.09 71 Sweden 5.20 4 Thailand 3.72 38 Venezuela 3.09 72 Denmark 5.19 5 Brazil 3.67 39 Indonesia 3.06 73 Canada 5.07 6 Tunisia 3.67 40 Ghana 3.06 74 Switzerland 5.06 7 Slovak Republic 3.66 41 Macedonia, FYR 3.05 75 Norway 5.03 8 Lithuania 3.63 42 Pakistan 3.03 76 Australia 4.88 9 Mauritius 3.62 43 Serbia 2.98 77 Iceland 4.88 10 Mexico 3.57 44 Ukraine 2.96 78 Germany 4.85 11 India 3.54 45 Nigeria 2.92 79 Japan 4.80 12 Jordan 3.53 46 Uganda 2.90 80 Netherlands 4.79 13 Poland 3.51 47 Senegal 2.90 81 Luxembourg 4.76 14 Croatia 3.48 48 Gambia 2.85 82 United Kingdom 4.68 15 Costa Rica 3.46 49 Cameroon 2.82 83 Israel 4.64 16 Argentina 3.45 50 Kenya 2.81 84 Taiwan 4.62 17 China 3.38 51 Zambia 2.80 85 Hong Kong SAR 4.61 18 Trinidad and Tobago 3.37 52 Guatemala 2.76 86 France 4.60 19 Jamaica 3.36 53 Algeria 2.75 87 Korea 4.60 20 Uruguay 3.35 54 Malawi 2.71 88 Austria 4.56 21 Botswana 3.34 55 Ecuador 2.68 89 Ireland 4.55 22 Turkey 3.32 56 Bolivia 2.66 90 New Zealand 4.48 23 Dominican Republic 3.32 57 Paraguay 2.62 91 Belgium 4.43 24 Panama 3.31 58 Madagascar 2.60 92 Estonia 4.25 25 Namibia 3.28 59 Bangladesh 2.57 93 Malaysia 4.19 26 Colombia 3.28 60 Nicaragua 2.56 94 Malta 4.15 27 Romania 3.26 61 Zimbabwe 2.53 95 Italy 4.07 28 El Salvador 3.22 62 Mali 2.52 96 Spain 4.01 29 Russian Federation 3.19 63 Mozambique 2.51 97 Slovenia 3.99 30 Morocco 3.19 64 Honduras 2.41 98 Portugal 3.94 31 Egypt 3.19 65 Angola 2.32 99 Chile 3.94 32 Sri Lanka 3.15 66 Haiti 2.27 100 Czech Republic 3.80 33 Bulgaria 3.15 67 Ethiopia 2.13 101 Greece 3.76 34 Vietnam 3.13 68 Chad 2.09 102 5 · TheAmericas:twocountries(theUnitedStatesandCanada) We would like to emphasize that while rankings are useful · Western Europe: 14 countries, led by Scandinavia as relative indicators of a nation's ICT excellence, there are several limitations to the analytic process. Caution should · Asia and Oceania:3 seven countries led by Singapore be exercised while comparing countries that are closely 2003­2004 · Middle-East and North Africa: one country (Israel) ranked. For instance, countries ranked close together can Index show very small variation in their index scores. Latvia (NRI · Central and Eastern Europe: one country (Estonia) score = 3.74, rank 35) and Hungary (NRI score = 3.74, rank = 36) even have the same overall scores. In this case, Latvia Furthermore, one can observe that Readiness has an overall index score marginally higher than that of · ThetoprankedLatinAmericancountriesareChile(32), ed Hungary, but it is at the third decimal place. Additionally, Brazil (39), and Mexico (44). small differences in the index may be outside the limits of · In Asia, Malaysia is ranked 26th and Thailand, 38th.India, statistical significance due to the fact that some missing Network with its immense pool of trained IT manpower, is ranked observations were estimated using analytic techniques such heT 1 45th. China is ranked 51st. as regression and clustering. · Russia is ranked 63rd overall. One must also keep in mind that while the number of Chapter countries included in the current study has increased from 82 Interpreting the results in the 2002­2003 report to 102, a number of nations could not The NRI captures key factors relating to the environment, be included in the research due to limitations in the availability the readiness and the usage of the three stakeholders in the of reliable data. Ranking an even larger set of nations remains Networked Readiness Framework (individuals, businesses, and a challenge for the future. An overall global ranking needs to governments), and can be used to understand the performance account for these missing countries, and any inferences drawn of a nation or a region with regards to ICT readiness and from the current analysis of 102 nations should be made with usage. The component index and subindex rankings serve to this limitation taken into consideration. identify key areas where a nation is under- or overperforming. Finally, the complexity of ICT issues in a nation can get One would, for instance, be able to identify relative imbalances obscured behind the numerical score of the NRI. A country in development across the three component indexes of like India, for instance, shows enormous geographic and Environment, Readiness and Usage, or even go one level deeper.4 demographic divides in ICT readiness and usage. It has one Market: This entails the assessment of the presence of the of the largest ICT workforces in the world. One can find appropriate human resources and ancillary businesses to intense ICT usage in technology clusters such as Bangalore support a knowledge-based society. The forces that play an and Gurgaon (near New Delhi), or amongst the upper important role in determining the market environment for middle class. The other side of the story is that there is not ICT are varied and include fundamental macroeconomic even telephone connectivity in large parts of the country. variables like GDP and import/export, commercial measures Singapore, on the other hand, is a country where there is like availability of funding and skilled labor, and the level of high ICT readiness and usage across all stakeholders-- development of the corporate environment. The leader for individuals, businesses, and governments. this subindex is Singapore, followed by the United States and Finland. Ireland and Israel, in the 4th and 5th positions, are Disaggregating the Networked Readiness notable for their performance on the Environment-Market subindex. Index Political/Regulatory: The priorities of a nation are reflected The NRI provides a relative benchmark of the overall success in its policies and laws that in turn influence its rate of growth of a country in participating in and benefiting from ICT. and direction of development. This component of the NRI While this is useful, one may need to gain further insights measures the impact of a nation's polity, laws, and regulations, into areas of over- and underperformance of a nation, and to and their implementation on the development and use of understand the key drivers determining the results. One can ICT. The leaders from the Political/Regulatory perspective are do so by looking at the component indexes: Environment, Finland, Hong Kong SAR, and Estonia. Iceland manifests an Readiness, and Usage. Table 2 presents the overall results of exceptional performance and is highly ranked at 4th place, each component index. Further insight may be obtained by whereas Singapore is ranked 5th, which is not surprising, looking at the subindexes composing each Component Index. given the priority its government places on ICT. The final level of detail can be obtained by observing the 48 variables comprising the subindexes, which are presented in Infrastructure: Infrastructure is defined as the level of the Technical Appendix at the end of the chapter. Figure 2 availability and quality of the key access infrastructure for gives a schematic diagram of the relationships between the ICT within a country. A quality ICT access infrastructure various indexes, and how they add up to form the NRI. 6 facilitates the adoption, usage, and impact of these Figure 2. Disaggregating the Networked Readiness Index technologies, which again promote investment in ICT infrastructure. Infrastructure thus plays a critical role in Increasing level of detail influencing the networked readiness of a nation. The top 2003­2004 ranks along this component go to Iceland, the United States, and Switzerland. One notes that India at 67th place for Index Infrastructure has a very low rank compared to its overall NRI Index Component Subindexes Variables Indexes 44th position in the Environment component index--an indication of the heterogeneous proliferation of ICT Readiness across different socioeconomic and geographic segments ed of the country. Aggregation of results Network Readiness heT Environment 1 The Readiness of a nation measures the capability of the The Environment component index is designed to measure principal agents of an economy (citizens, businesses, and the degree of conduciveness of the environment that a governments) to leverage the potential of ICT. This capability Chapter country provides for the development and use of ICT. As is lent to the nation's community by a combination of can be seen from Table 2, the top countries with regards factors like the presence of relevant skills for using ICT to the Environment are the United States, Singapore, and within individuals, access and affordability of ICT for Finland; and the results are consistent with the overall index. corporations, and government use of ICT for its own services Singapore owes its excellent performance in the Environment and processes. As shown in Table 2, Finland ranks highest on component index to the proactive policies and measures overall Readiness and shows a consistent performance across undertaken by the government to promote ICT, resulting in all three readiness subindexes. Sweden is in 2nd place and is it being a unique center of excellence in the region. supported by a very strong performance in Individual and Business Readiness. Third ranked United States benefits from Table 3 presents the detailed ranking and scores for each of high scores in Readiness for each of the three stakeholders. the three subindexes comprising the Environment component index: Table 2. The Networked Readiness Index Component Indexes Networked Readiness Index = 1/3 Environment Component index + 1/3 Readiness Component index + 1/3 Usage Component index ENVIRONMENT COMPONENT INDEX COUNTRY SCORE RANK COUNTRY SCORE RANK COUNTRY SCORE RANK United States 5.17 1 Brazil 3.66 35 Bulgaria 2.88 69 Singapore 5.12 2 Tunisia 3.63 36 Gambia 2.85 70 Finland 4.98 3 Namibia 3.62 37 Peru 2.83 71 Switzerland 4.93 4 Latvia 3.61 38 Nigeria 2.82 72 Iceland 4.84 5 Slovenia 3.60 39 Russian Federation 2.82 73 Sweden 4.72 6 Hungary 3.60 40 Vietnam 2.80 74 Canada 4.67 7 Thailand 3.57 41 Romania 2.80 75 Taiwan 4.66 8 Jordan 3.56 42 Pakistan 2.80 76 Luxembourg 4.64 9 Botswana 3.49 43 Senegal 2.79 77 Denmark 4.61 10 India 3.45 44 Uganda 2.79 78 Hong Kong SAR 4.56 11 Lithuania 3.41 45 Serbia 2.78 79 Australia 4.56 12 Costa Rica 3.37 46 Mali 2.77 80 Israel 4.54 13 Mexico 3.36 47 Venezuela 2.75 81 United Kingdom 4.51 14 Mauritius 3.36 48 Philippines 2.67 82 Netherlands 4.46 15 Trinidad and Tobago 3.36 49 Cameroon 2.62 83 Norway 4.45 16 Poland 3.31 50 Guatemala 2.61 84 Germany 4.42 17 Slovak Republic 3.30 51 Bolivia 2.60 85 New Zealand 4.37 18 Uruguay 3.25 52 Zambia 2.59 86 Japan 4.34 19 Panama 3.24 53 Madagascar 2.59 87 Korea 4.34 20 Dominican Republic 3.23 54 Malawi 2.58 88 Austria 4.30 21 Croatia 3.22 55 Bangladesh 2.57 89 Ireland 4.28 22 Jamaica 3.20 56 Ecuador 2.57 90 France 4.27 23 Argentina 3.15 57 Kenya 2.55 91 Belgium 4.11 24 Turkey 3.14 58 Paraguay 2.53 92 Estonia 4.00 25 Macedonia, FYR 3.11 59 Ukraine 2.53 93 Malaysia 3.95 26 Egypt 3.08 60 Algeria 2.48 94 Portugal 3.89 27 Morocco 3.07 61 Mozambique 2.44 95 Italy 3.89 28 El Salvador 3.07 62 Honduras 2.29 96 Malta 3.87 29 China 3.03 63 Zimbabwe 2.29 97 Spain 3.86 30 Colombia 3.02 64 Nicaragua 2.23 98 Chile 3.85 31 Tanzania 3.01 65 Chad 2.19 99 Greece 3.76 32 Sri Lanka 2.99 66 Haiti 2.19 100 South Africa 3.68 33 Ghana 2.97 67 Angola 2.00 101 7 Czech Republic 3.66 34 Indonesia 2.92 68 Ethiopia 1.99 102 READINESS COMPONENT INDEX COUNTRY SCORE RANK COUNTRY SCORE RANK COUNTRY SCORE RANK Finland 6.07 1 Portugal 4.65 35 Indonesia 3.91 69 2003­2004 Sweden 5.95 2 Latvia 4.63 36 Morocco 3.87 70 United States 5.95 3 Thailand 4.59 37 Egypt 3.86 71 Index Singapore 5.85 4 Hungary 4.53 38 Philippines 3.84 72 Denmark 5.81 5 Greece 4.50 39 Namibia 3.81 73 Norway 5.71 6 Brazil 4.49 40 Ghana 3.81 74 France 5.66 7 Mauritius 4.47 41 Macedonia, FYR 3.80 75 Readiness Canada 5.66 8 Tunisia 4.47 42 Tanzania 3.70 76 Australia 5.56 9 Poland 4.44 43 Serbia 3.70 77 ed United Kingdom 5.54 10 Croatia 4.42 44 Pakistan 3.67 78 Japan 5.51 11 Colombia 4.34 45 Cameroon 3.61 79 Germany 5.50 12 South Africa 4.33 46 Algeria 3.59 80 Network Switzerland 5.44 13 Mexico 4.29 47 Zambia 3.54 81 Netherlands 5.36 14 Russian Federation 4.26 48 Nigeria 3.49 82 heT Austria 5.32 15 Argentina 4.24 49 Guatemala 3.48 83 1 Iceland 5.28 16 India 4.23 50 Bolivia 3.46 84 Taiwan 5.25 17 Jordan 4.19 51 Senegal 3.45 85 Ireland 5.24 18 Dominican Republic 4.18 52 Nicaragua 3.42 86 Chapter Korea 5.24 19 Uruguay 4.18 53 Paraguay 3.42 87 New Zealand 5.16 20 China 4.14 54 Malawi 3.42 88 Belgium 5.16 21 Costa Rica 4.14 55 Kenya 3.42 89 Estonia 5.11 22 Romania 4.13 56 Uganda 3.32 90 Israel 5.06 23 Jamaica 4.11 57 Zimbabwe 3.24 91 Spain 5.00 24 Ukraine 4.08 58 Gambia 3.23 92 Luxembourg 4.96 25 El Salvador 4.08 59 Ecuador 3.19 93 Italy 4.91 26 Bulgaria 4.06 60 Madagascar 3.05 94 Slovenia 4.90 27 Turkey 4.05 61 Bangladesh 3.00 95 Hong Kong SAR 4.87 28 Venezuela 4.02 62 Honduras 2.97 96 Malaysia 4.86 29 Panama 4.01 63 Angola 2.95 97 Chile 4.73 30 Sri Lanka 3.98 64 Haiti 2.92 98 Malta 4.70 31 Trinidad and Tobago 3.98 65 Mali 2.86 99 Lithuania 4.69 32 Peru 3.97 66 Mozambique 2.80 100 Czech Republic 4.68 33 Vietnam 3.93 67 Ethiopia 2.44 101 Slovak Republic 4.67 34 Botswana 3.91 68 Chad 2.32 102 Table 2. The Networked Readiness Index Component Indexes (continued) USAGE COMPONENT INDEX COUNTRY SCORE RANK COUNTRY SCORE RANK COUNTRY SCORE RANK United States 5.39 1 Czech Republic 3.06 35 Russian Federation 2.49 69 Singapore 5.21 2 Mexico 3.05 36 Venezuela 2.49 70 Denmark 5.15 3 Mauritius 3.04 37 Sri Lanka 2.49 71 Norway 4.94 4 Greece 3.03 38 Peru 2.48 72 Sweden 4.94 5 Slovak Republic 3.02 39 Colombia 2.48 73 Canada 4.88 6 Thailand 3.00 40 Gambia 2.47 74 Switzerland 4.82 7 Latvia 2.99 41 Nigeria 2.47 75 Luxembourg 4.67 8 Argentina 2.97 42 Kenya 2.46 76 Finland 4.63 9 China 2.97 43 Serbia 2.45 77 Germany 4.62 10 India 2.94 44 Senegal 2.45 78 Japan 4.56 11 Tunisia 2.90 45 Namibia 2.41 79 Netherlands 4.53 12 Costa Rica 2.87 46 Ghana 2.39 80 Australia 4.53 13 Brazil 2.85 47 Indonesia 2.35 81 Iceland 4.52 14 Romania 2.85 48 Mozambique 2.30 82 Hong Kong SAR 4.39 15 Jordan 2.83 49 Ecuador 2.27 83 Israel 4.30 16 Philippines 2.80 50 Zambia 2.27 84 Korea 4.22 17 Croatia 2.79 51 Ukraine 2.26 85 Ireland 4.13 18 Poland 2.78 52 Cameroon 2.24 86 Austria 4.07 19 Lithuania 2.78 53 Macedonia, FYR 2.23 87 Belgium 4.02 20 Jamaica 2.78 54 Guatemala 2.19 88 United Kingdom 3.99 21 Trinidad and Tobago 2.76 55 Algeria 2.18 89 Taiwan 3.95 22 Turkey 2.76 56 Madagascar 2.17 90 New Zealand 3.90 23 Panama 2.68 57 Malawi 2.15 91 Malta 3.90 24 Vietnam 2.67 58 Bangladesh 2.14 92 France 3.87 25 Morocco 2.63 59 Zimbabwe 2.07 93 Malaysia 3.78 26 Botswana 2.63 60 Nicaragua 2.03 94 Estonia 3.65 27 Uruguay 2.63 61 Angola 2.01 95 Slovenia 3.47 28 Pakistan 2.62 62 Ethiopia 1.98 96 Italy 3.41 29 Egypt 2.62 63 Honduras 1.97 97 Portugal 3.29 30 Uganda 2.60 64 Mali 1.93 98 Chile 3.24 31 Tanzania 2.56 65 Bolivia 1.93 99 Spain 3.17 32 Dominican Republic 2.54 66 Paraguay 1.91 100 South Africa 3.15 33 El Salvador 2.52 67 Chad 1.75 101 Hungary 3.10 34 Bulgaria 2.50 68 Haiti 1.71 102 8 Detailed results for each of the subindexes used for services online. If the polity of a nation decides to make measuring Readiness can be found in Table 4, and are ICT a priority, this becomes visible in the short- and long- listed below. term policy measures and laws that help encourage ICT 2003­2004 deployment and use. It is also reflected in the government's Individual Readiness: Individual Readiness measures the Index own use of ICT and the extent to which it equips its people readiness of a nation's citizens to utilize and leverage ICT. to do the same. Singapore leads on Government Readiness, Factors that are used to measure this include literacy rates, followed by Finland and the United States. France and mode and locus of access to the Internet, and the degree Readiness Canada follow in 4th and 5th places, respectively. Of note ed of connectivity of individuals. This year's analysis leads to also are Malaysia, in 6th place, and Korea, in 9th. The entry some interesting results; the top four positions on Individual of developing countries such as Malaysia and Korea in the Readiness go to the Scandinavian countries--Norway, upper ranks on the government readiness dimension is Network Sweden, Denmark, and Finland. Another northern European heT a reflection of the policies and actions taken by member country, Iceland, comes in 8th. 1 governments to promote ICT in the country and in particular in the government. Business Readiness: Business Readiness measures the Chapter readiness of businesses to participate in and benefit from Usage ICT. The aim is not to just focus on the largest corporations, The Usage component aims to measure the degree of usage but also to include small and medium-sized businesses and of ICT by the principal stakeholders of the NRI framework-- their willingness to exploit ICT and invest in the ICT skills individuals, businesses, and governments. In the absence of their employees. Finland and Sweden displace last year's of reliable data about the specific impact of ICT on the key leader, the United States, as the top 2 countries with regards stakeholders, the Usage component provides an indication of to Business Readiness. The United States ranks 3rd, followed the changes in behaviors, lifestyles, and other economic and by Singapore. non-economic benefits brought about by the adoption of Government Readiness: Government Readiness measures ICT. The United States, Singapore, and Denmark are the top the readiness of a government to employ ICT. It is reflected three performers with regards to overall Usage, as shown in in the policymaking machinery and internal processes Table 2. One can observe variances in country performance of the government and in the availability of government across the three subindexes, reflecting uneven impact across Table 3. Environment Subindexes Environment Component = 1/3 Market Environment Subindex + 1/3 Political and Regulatory Subindex Environment + 1/3 Infrastructure Environment Subindex MARKET ENVIRONMENT SUBINDEX COUNTRY SCORE RANK COUNTRY SCORE RANK COUNTRY SCORE RANK Singapore 5.06 1 Hungary 3.00 35 Serbia 2.45 69 United States 4.76 2 Greece 2.95 36 Jamaica 2.44 70 Finland 4.59 3 Czech Republic 2.94 37 Namibia 2.44 71 Ireland 4.37 4 Vietnam 2.91 38 Ghana 2.41 72 Israel 4.30 5 Estonia 2.89 39 Dominican Republic 2.40 73 Taiwan 4.29 6 Lithuania 2.89 40 Bulgaria 2.39 74 Japan 4.28 7 Malta 2.89 41 Pakistan 2.36 75 Luxembourg 4.27 8 Costa Rica 2.88 42 Macedonia, FYR 2.32 76 Sweden 4.17 9 Slovenia 2.87 43 Argentina 2.31 77 Switzerland 4.09 10 China 2.86 44 Philippines 2.30 78 Canada 3.96 11 South Africa 2.82 45 Algeria 2.27 79 Netherlands 3.93 12 Poland 2.82 46 Zimbabwe 2.26 80 United Kingdom 3.88 13 Jordan 2.78 47 Uruguay 2.24 81 Denmark 3.82 14 Russian Federation 2.78 48 Malawi 2.21 82 Germany 3.76 15 Egypt 2.77 49 Venezuela 2.19 83 Belgium 3.75 16 Indonesia 2.72 50 Madagascar 2.19 84 France 3.74 17 Slovak Republic 2.71 51 Bangladesh 2.18 85 Norway 3.74 18 Botswana 2.71 52 Senegal 2.18 86 Korea 3.61 19 Mauritius 2.69 53 Mali 2.17 87 Austria 3.61 20 Sri Lanka 2.66 54 Zambia 2.15 88 Australia 3.57 21 Mexico 2.66 55 Guatemala 2.15 89 Iceland 3.56 22 Trinidad and Tobago 2.65 56 Peru 2.11 90 Hong Kong SAR 3.50 23 Turkey 2.64 57 Ecuador 2.09 91 Italy 3.35 24 Panama 2.64 58 El Salvador 2.09 92 Spain 3.29 25 Croatia 2.62 59 Honduras 2.02 93 Malaysia 3.25 26 Morocco 2.60 60 Gambia 2.01 94 India 3.22 27 Romania 2.59 61 Mozambique 2.00 95 Thailand 3.16 28 Uganda 2.57 62 Ethiopia 2.00 96 Tunisia 3.15 29 Kenya 2.56 63 Nicaragua 1.94 97 Portugal 3.04 30 Tanzania 2.54 64 Bolivia 1.87 98 Chile 3.04 31 Nigeria 2.50 65 Chad 1.86 99 Latvia 3.03 32 Cameroon 2.46 66 Paraguay 1.82 100 New Zealand 3.02 33 Ukraine 2.45 67 Angola 1.75 101 9 Brazil 3.02 34 Colombia 2.45 68 Haiti 1.61 102 POLITICAL AND REGULATORY ENVIRONMENT SUBINDEX COUNTRY SCORE RANK COUNTRY SCORE RANK COUNTRY SCORE RANK 2003­2004 Finland 5.74 1 Spain 4.37 35 Morocco 3.68 69 Hong Kong SAR 5.66 2 Belgium 4.36 36 Mali 3.65 70 Estonia 5.43 3 Japan 4.34 37 Indonesia 3.64 71 Index Iceland 5.33 4 Thailand 4.30 38 Senegal 3.64 72 Singapore 5.22 5 Ghana 4.25 39 Turkey 3.58 73 Switzerland 5.21 6 El Salvador 4.21 40 Pakistan 3.58 74 Denmark 5.20 7 Czech Republic 4.21 41 Kenya 3.56 75 Readiness United States 5.20 8 Italy 4.17 42 Peru 3.55 76 ed United Kingdom 5.18 9 Brazil 4.16 43 Argentina 3.50 77 Luxembourg 5.17 10 Namibia 4.16 44 Vietnam 3.43 78 Sweden 5.16 11 Dominican Republic 4.13 45 Macedonia, FYR 3.42 79 New Zealand 5.16 12 Hungary 4.09 46 Croatia 3.41 80 Network Australia 5.15 13 Trinidad and Tobago 4.08 47 Nicaragua 3.35 81 heT Netherlands 5.03 14 Greece 4.08 48 Bolivia 3.34 82 1 Israel 4.93 15 Malawi 4.07 49 Cameroon 3.30 83 Taiwan 4.88 16 Jamaica 4.05 50 Bangladesh 3.28 84 Germany 4.84 17 Slovenia 4.04 51 Bulgaria 3.28 85 Chile 4.82 18 Tanzania 4.00 52 Mozambique 3.28 86 Chapter Austria 4.81 19 Uruguay 3.93 53 Paraguay 3.27 87 Malta 4.78 20 Mauritius 3.90 54 Romania 3.23 88 Canada 4.78 21 Zambia 3.90 55 Madagascar 3.20 89 Norway 4.68 22 Poland 3.90 56 Honduras 3.20 90 South Africa 4.67 23 Costa Rica 3.89 57 Guatemala 3.18 91 Ireland 4.57 24 Lithuania 3.88 58 Serbia 3.16 92 Korea 4.56 25 Mexico 3.84 59 Ecuador 3.15 93 Jordan 4.56 26 Colombia 3.83 60 Algeria 3.10 94 Portugal 4.54 27 Slovak Republic 3.82 61 Russian Federation 3.02 95 Botswana 4.50 28 Sri Lanka 3.79 62 Venezuela 2.97 96 India 4.47 29 Philippines 3.78 63 Angola 2.95 97 Gambia 4.47 30 Panama 3.76 64 Ukraine 2.84 98 Malaysia 4.46 31 Nigeria 3.75 65 Haiti 2.81 99 France 4.44 32 Egypt 3.72 66 Zimbabwe 2.81 100 Latvia 4.43 33 Uganda 3.69 67 Chad 2.54 101 Tunisia 4.42 34 China 3.68 68 Ethiopia 2.49 102 Table 3. Environment Subindexes (continued) Environment Component = 1/3 Market Environment Subindex + 1/3 Political and Regulatory Subindex Environment + 1/3 Infrastructure Environment Subindex INFRASTRUCTURE ENVIRONMENT SUBINDEX COUNTRY SCORE RANK COUNTRY SCORE RANK COUNTRY SCORE RANK Iceland 5.61 1 Hungary 3.72 35 Bolivia 2.59 69 United States 5.55 2 Chile 3.69 36 Romania 2.58 70 Switzerland 5.48 3 Estonia 3.68 37 Senegal 2.57 71 Canada 5.26 4 Argentina 3.64 38 China 2.54 72 Singapore 5.09 5 Croatia 3.62 39 Sri Lanka 2.51 73 Australia 4.95 6 Macedonia, FYR 3.60 40 Guatemala 2.51 74 Norway 4.93 7 Uruguay 3.59 41 Paraguay 2.51 75 New Zealand 4.93 8 Mexico 3.59 42 Tanzania 2.49 76 Korea 4.85 9 South Africa 3.55 43 Mali 2.48 77 Taiwan 4.83 10 Mauritius 3.48 44 Pakistan 2.46 78 Sweden 4.83 11 Lithuania 3.45 45 Ecuador 2.46 79 Denmark 4.80 12 Latvia 3.39 46 Indonesia 2.40 80 Germany 4.65 13 Slovak Republic 3.36 47 Madagascar 2.38 81 France 4.63 14 Jordan 3.35 48 Ukraine 2.29 82 Finland 4.62 15 Costa Rica 3.34 49 Ghana 2.25 83 Hong Kong SAR 4.53 16 Trinidad and Tobago 3.34 50 Bangladesh 2.24 84 Austria 4.49 17 Panama 3.32 51 Nigeria 2.20 85 Luxembourg 4.48 18 Tunisia 3.31 52 Chad 2.19 86 United Kingdom 4.47 19 Botswana 3.26 53 Haiti 2.14 87 Netherlands 4.43 20 Thailand 3.25 54 Uganda 2.11 88 Japan 4.42 21 Turkey 3.20 55 Cameroon 2.08 89 Israel 4.38 22 Poland 3.20 56 Gambia 2.07 90 Namibia 4.27 23 Dominican Republic 3.16 57 Algeria 2.06 91 Greece 4.24 24 Jamaica 3.12 58 Vietnam 2.06 92 Belgium 4.23 25 Venezuela 3.09 59 Mozambique 2.03 93 Italy 4.15 26 Bulgaria 2.97 60 Philippines 1.92 94 Malaysia 4.14 27 Morocco 2.93 61 Zimbabwe 1.81 95 Portugal 4.10 28 El Salvador 2.91 62 Zambia 1.72 96 Malta 3.94 29 Peru 2.82 63 Honduras 1.67 97 Spain 3.91 30 Colombia 2.80 64 Kenya 1.54 98 Slovenia 3.90 31 Egypt 2.76 65 Ethiopia 1.46 99 Ireland 3.89 32 Serbia 2.74 66 Malawi 1.45 100 10 Czech Republic 3.84 33 India 2.65 67 Nicaragua 1.40 101 Brazil 3.82 34 Russian Federation 2.64 68 Angola 1.30 102 the three principal stakeholders. For example, Singapore Government Usage: Government Usage is the level of use 2003­2004 ranks high for Business Usage (2) and Government Usage (1) of ICT technologies by the government of a given country. but relatively low for Individual Usage (18). Another notable The government, besides making ICT a priority, can also Index example is Estonia, with high Government Readiness (15) benefit from the usage of ICT itself. This usage can help the and Usage (13) but relatively low positions for Individual government streamline services to its citizens and improve its (26) and Business (39) Usage. overall functioning. Factors used to measure this include the Readiness volume of transactions that businesses have with governments ed Table 5 gives the detailed results and scores for each of the three and the presence of government services online. The top subindexes used for measuring Usage. These are listed below. ranking countries on this measure are Singapore, the United Network States, Canada, Hong Kong SAR, and Denmark. Of note is heT Individual Usage: Individual Usage gives an indication of Malaysia at 7th place and Estonia at 13th place, reflecting the 1 the level of adoption and usage of ICT technologies by a fact that these countries' governments are taking active steps to nation's citizens. This is done by assessing the deployment promote ICT usage in their own functions. of connectivity-enhancing technologies like telephones Chapter and Internet connections, levels of Internet usage, and money spent online. The Individual Usage rankings differ Understanding Networked Readiness significantly from those of Individual Readiness. The top The degree of networked readiness of a nation is the result of performers here are Luxembourg, Norway, the Netherlands, a multitude of effects. Our research started with a set of over Switzerland, and Denmark. 90 different variables or indicators for evaluating networked readiness. These 90 variables were narrowed down by statistical Business Usage: Business Usage measures the level of analysis to a set of 48 variables (see chapter entitled "The deployment and use of ICT across businesses in a nation. Networked Readiness Index: Methodology" later in this book). Business usage is determined by factors such as the level of These 48 variables were grouped amongst the nine subindexes business-to-business and business-to-consumer e-commerce, of the NRI framework. This provides us with an opportunity the use of ICT for activities like marketing, and levels of to study some of the interrelationships across the variables and online transactions. The top five performers are the United the components/subindexes of the NRI framework. States, Singapore, Australia, Sweden, and Denmark. Table 4. Readiness Subindexes Readiness Component = 1/3 Individual Readiness Subindex + 1/3 Business Readiness Subindex + 1/3 Government Readiness Subindex INDIVIDUAL READINESS SUBINDEX COUNTRY SCORE RANK COUNTRY SCORE RANK COUNTRY SCORE RANK Norway 6.53 1 Malta 4.74 35 El Salvador 3.96 69 Sweden 6.41 2 Ukraine 4.73 36 Zimbabwe 3.95 70 Denmark 6.05 3 Slovak Republic 4.73 37 Indonesia 3.94 71 Finland 5.98 4 Portugal 4.70 38 Egypt 3.91 72 United States 5.89 5 Poland 4.62 39 Vietnam 3.90 73 Australia 5.71 6 Bulgaria 4.62 40 Botswana 3.87 74 United Kingdom 5.66 7 Romania 4.57 41 Paraguay 3.84 75 Iceland 5.63 8 Uruguay 4.53 42 Algeria 3.79 76 Canada 5.59 9 Croatia 4.52 43 Namibia 3.76 77 Switzerland 5.56 10 Thailand 4.47 44 Morocco 3.68 78 France 5.53 11 Argentina 4.46 45 Honduras 3.66 79 Netherlands 5.48 12 Chile 4.45 46 India 3.65 80 Austria 5.47 13 Malaysia 4.43 47 Ecuador 3.65 81 Japan 5.44 14 Trinidad and Tobago 4.39 48 Ghana 3.62 82 New Zealand 5.37 15 Costa Rica 4.37 49 Zambia 3.54 83 Belgium 5.29 16 Macedonia, FYR 4.34 50 Kenya 3.54 84 Taiwan 5.26 17 Panama 4.25 51 Guatemala 3.52 85 Estonia 5.21 18 Colombia 4.25 52 Cameroon 3.51 86 Germany 5.21 19 Mexico 4.22 53 Nicaragua 3.50 87 Ireland 5.19 20 Jordan 4.21 54 Angola 3.49 88 Korea 5.18 21 Mauritius 4.19 55 Pakistan 3.26 89 Singapore 5.15 22 Tunisia 4.18 56 Nigeria 3.20 90 Italy 5.13 23 Serbia 4.17 57 Bangladesh 3.19 91 Hong Kong SAR 5.12 24 Turkey 4.16 58 Haiti 3.19 92 Latvia 5.08 25 Brazil 4.13 59 Malawi 3.19 93 Israel 5.07 26 Venezuela 4.12 60 Tanzania 3.12 94 Greece 5.06 27 Jamaica 4.12 61 Senegal 3.12 95 Luxembourg 5.04 28 China 4.06 62 Madagascar 3.08 96 Spain 5.01 29 Peru 4.02 63 Uganda 2.80 97 Slovenia 4.99 30 Dominican Republic 3.98 64 Mozambique 2.74 98 Russian Federation 4.92 31 Philippines 3.98 65 Mali 2.67 99 Lithuania 4.86 32 Bolivia 3.98 66 Gambia 2.53 100 Hungary 4.81 33 South Africa 3.97 67 Chad 2.45 101 Czech Republic 4.79 34 Sri Lanka 3.96 68 Ethiopia 2.37 102 11 BUSINESS READINESS SUBINDEX COUNTRY SCORE RANK COUNTRY SCORE RANK COUNTRY SCORE RANK 2003­2004 Finland 6.49 1 Tunisia 4.72 35 Romania 3.96 69 Sweden 6.35 2 Czech Republic 4.70 36 Bulgaria 3.95 70 United States 6.34 3 Hungary 4.69 37 Macedonia, FYR 3.95 71 Index Singapore 6.23 4 Malaysia 4.68 38 Ukraine 3.88 72 Switzerland 6.22 5 Brazil 4.66 39 Botswana 3.87 73 Japan 6.15 6 Malta 4.63 40 Vietnam 3.85 74 Denmark 6.02 7 Latvia 4.63 41 Ghana 3.85 75 Readiness Norway 5.97 8 Jordan 4.62 42 Senegal 3.81 76 ed Germany 5.94 9 Russian Federation 4.61 43 Pakistan 3.79 77 Canada 5.90 10 Thailand 4.57 44 Malawi 3.61 78 France 5.89 11 Poland 4.46 45 Gambia 3.61 79 Australia 5.88 12 Morocco 4.43 46 Philippines 3.59 80 Network Belgium 5.78 13 India 4.43 47 Nigeria 3.56 81 heT United Kingdom 5.77 14 Dominican Republic 4.40 48 Zimbabwe 3.55 82 1 Netherlands 5.75 15 Mauritius 4.39 49 Algeria 3.51 83 Iceland 5.62 16 Mexico 4.38 50 Tanzania 3.48 84 Austria 5.55 17 Argentina 4.35 51 Bolivia 3.48 85 New Zealand 5.47 18 Colombia 4.34 52 Zambia 3.46 86 Chapter Taiwan 5.40 19 Croatia 4.34 53 Paraguay 3.42 87 Ireland 5.39 20 Uruguay 4.31 54 Serbia 3.40 88 Israel 5.37 21 El Salvador 4.25 55 Kenya 3.30 89 Spain 5.28 22 Turkey 4.25 56 Cameroon 3.26 90 Korea 5.28 23 Jamaica 4.25 57 Ecuador 3.25 91 Slovenia 5.22 24 Costa Rica 4.19 58 Nicaragua 3.23 92 Luxembourg 5.19 25 China 4.13 59 Uganda 3.16 93 Estonia 5.11 26 Egypt 4.10 60 Honduras 2.92 94 Slovak Republic 4.91 27 Peru 4.09 61 Angola 2.87 95 Chile 4.89 28 Indonesia 4.09 62 Bangladesh 2.84 96 Italy 4.89 29 Venezuela 4.07 63 Madagascar 2.80 97 Portugal 4.88 30 Panama 4.05 64 Mali 2.74 98 Hong Kong SAR 4.82 31 Guatemala 4.05 65 Haiti 2.71 99 Lithuania 4.77 32 Sri Lanka 4.04 66 Ethiopia 2.50 100 South Africa 4.72 33 Namibia 4.02 67 Chad 2.40 101 Greece 4.72 34 Trinidad and Tobago 3.98 68 Mozambique 2.36 102 Table 4. Readiness Subindexes (continued) Readiness Component = 1/3 Individual Readiness Subindex + 1/3 Business Readiness Subindex + 1/3 Government Readiness Subindex GOVERNMENT READINESS SUBINDEX GOVERNMENT GOVERNMENT COUNTRY SCORE RANK COUNTRY SCORE RANK COUNTRY SCORE RANK Singapore 6.17 1 Slovenia 4.51 35 Greece 3.71 69 Finland 5.72 2 Tanzania 4.50 36 Nigeria 3.71 70 United States 5.62 3 Tunisia 4.50 37 Uruguay 3.70 71 France 5.57 4 Lithuania 4.44 38 Indonesia 3.69 72 Canada 5.49 5 Colombia 4.44 39 Ukraine 3.64 73 Malaysia 5.46 6 Belgium 4.41 40 Namibia 3.64 74 Denmark 5.37 7 Croatia 4.40 41 Zambia 3.62 75 Germany 5.36 8 Portugal 4.38 42 Bulgaria 3.61 76 Korea 5.25 9 Slovak Republic 4.36 43 Egypt 3.57 77 United Kingdom 5.19 10 South Africa 4.31 44 Trinidad and Tobago 3.57 78 Ireland 5.14 11 Mexico 4.27 45 Gambia 3.54 79 Taiwan 5.10 12 Poland 4.25 46 Nicaragua 3.53 80 Sweden 5.10 13 China 4.23 47 Serbia 3.52 81 Australia 5.09 14 Latvia 4.19 48 Morocco 3.49 82 Estonia 5.00 15 Dominican Republic 4.16 49 Algeria 3.48 83 Austria 4.95 16 Hungary 4.10 50 Malawi 3.46 84 Japan 4.92 17 Cameroon 4.07 51 Senegal 3.43 85 Chile 4.86 18 Vietnam 4.03 52 Kenya 3.41 86 Netherlands 4.85 19 El Salvador 4.02 53 Mozambique 3.30 87 Mauritius 4.82 20 Botswana 4.00 54 Madagascar 3.26 88 Israel 4.75 21 Uganda 3.99 55 Russian Federation 3.26 89 Thailand 4.74 22 Philippines 3.96 56 Mali 3.17 90 Malta 4.72 23 Pakistan 3.96 57 Macedonia, FYR 3.12 91 Italy 4.72 24 Ghana 3.95 58 Paraguay 2.99 92 Spain 4.71 25 Jamaica 3.95 59 Bangladesh 2.97 93 Brazil 4.70 26 Sri Lanka 3.93 60 Bolivia 2.92 94 Hong Kong SAR 4.69 27 Argentina 3.90 61 Guatemala 2.88 95 Luxembourg 4.65 28 Romania 3.87 62 Haiti 2.85 96 New Zealand 4.65 29 Venezuela 3.86 63 Ecuador 2.69 97 Norway 4.64 30 Costa Rica 3.85 64 Angola 2.49 98 India 4.62 31 Peru 3.79 65 Ethiopia 2.45 99 Iceland 4.60 32 Turkey 3.74 66 Honduras 2.33 100 Switzerland 4.55 33 Jordan 3.73 67 Zimbabwe 2.22 101 12 Czech Republic 4.53 34 Panama 3.71 68 Chad 2.12 102 GDP and Networked Readiness · Around a GDP per capita of USD 6,000 to 9,000 the curve tapers off and the effect of increasing GDP is much less 2003­2004 Any attempt to use a single measure to approximate the pronounced. Other factors become more relevant to the Networked Readiness of a nation would be a simplification. Index NRI score at higher values of GDP per capita. An interesting link to explore is that between NRI and the gross domestic product (GDP) per capita of a country. If one Countries widely distanced from the regression plot could be has a closer look at the NRI results, one would find that India, examples of underperforming or overperforming countries. Readiness with a GDP per capita of USD 483, has an NRI score of 3.54 ed Thus one sees that the United States leads the NRI ranking, and is ranked 45 overall. Nicaragua, with a very similar GDP whereas Luxembourg, with a significantly higher GDP per per capita of USD 485, has, on the other hand, a score of 2.56 capita, relatively underperforms on the overall NRI score. Network and an overall ranking of 94. One thus sees a wide spread in Similarly India and Estonia would be overperforming on their heT the NRI score for a given GDP per capita. This is only one of NRI scores with respect to their GDP per capita. 1 many examples that could be cited. Does increased competition increase NRI? Chapter Nevertheless, one can look at the relation between the NRI Figure 4 shows the effect of increasing competition in the and GDP per capita in order to obtain a better understanding ICT sector on the ISP (Internet service provider) access of trends, and also to identify over- and underperformers charges. Intensity of competition in the ICT Sector is plotted with respect to the trend. Figure 3 gives a plot between against the ISP access charges, and one sees that there is a GDP per capita and the NRI. The partial log regression plot decrease in the cost of services with increasing competition. presents a projected trend line. One can note immediately the Thus the affordability of ICT services would tend to increase following points: with increased competition. · For a given GDP per capita, there is a spread in the NRI scores around the regression plot as presented in Figure 3. One would expect that increased affordability of ICT services · The impact of GDP seems to be very high at low GDP would stimulate the adoption and usage of ICT by the key stakeholders of the Networked Readiness Framework. Figure values, and the NRI score increases rapidly with small 5 plots the number of Internet users per 1,000 inhabitants increases in GDP. Table 5. Usage Subindexes Usage Component = 1/3 Individual Usage Subindex + Business Usage Subindex + 1/3 Government Usage Subindex INDIVIDUAL USAGE SUBINDEX COUNTRY SCORE RANK COUNTRY SCORE RANK COUNTRY SCORE RANK Luxembourg 6.00 1 Spain 2.06 35 India 1.17 69 Norway 5.80 2 Argentina 2.06 36 Jordan 1.17 70 Netherlands 5.44 3 Uruguay 2.02 37 Serbia 1.17 71 Switzerland 5.40 4 Latvia 1.98 38 Philippines 1.16 72 Denmark 4.98 5 Chile 1.97 39 Paraguay 1.13 73 Germany 4.75 6 Costa Rica 1.90 40 Algeria 1.13 74 Sweden 4.66 7 Mauritius 1.86 41 Bolivia 1.12 75 United States 4.63 8 Poland 1.81 42 Morocco 1.12 76 Iceland 4.40 9 Bulgaria 1.80 43 Egypt 1.11 77 Finland 4.19 10 Trinidad and Tobago 1.73 44 Zimbabwe 1.10 78 Canada 4.12 11 Lithuania 1.68 45 Vietnam 1.10 79 Japan 4.12 12 Romania 1.65 46 Nicaragua 1.08 80 Belgium 4.07 13 Jamaica 1.50 47 Madagascar 1.08 81 Australia 3.59 14 Croatia 1.50 48 Cameroon 1.08 82 Korea 3.56 15 Russian Federation 1.48 49 Honduras 1.07 83 Ireland 3.54 16 Panama 1.47 50 Indonesia 1.07 84 Austria 3.53 17 Peru 1.45 51 Haiti 1.07 85 Singapore 3.32 18 Dominican Republic 1.44 52 Senegal 1.06 86 Slovenia 3.30 19 Venezuela 1.43 53 Gambia 1.06 87 Malta 3.26 20 Mexico 1.41 54 Kenya 1.05 88 United Kingdom 3.16 21 China 1.37 55 Pakistan 1.04 89 Hong Kong SAR 3.10 22 Tunisia 1.36 56 Sri Lanka 1.04 90 Israel 3.03 23 South Africa 1.32 57 Tanzania 1.03 91 France 2.85 24 Brazil 1.32 58 Zambia 1.02 92 New Zealand 2.70 25 Macedonia, FYR 1.28 59 Angola 1.02 93 Estonia 2.59 26 Ukraine 1.27 60 Nigeria 1.02 94 Taiwan 2.53 27 El Salvador 1.25 61 Uganda 1.01 95 Portugal 2.51 28 Ecuador 1.25 62 Ghana 1.01 96 Italy 2.49 29 Turkey 1.23 63 Mozambique 1.01 97 Hungary 2.35 30 Colombia 1.22 64 Bangladesh 1.01 98 Malaysia 2.29 31 Thailand 1.21 65 Mali 1.01 99 Greece 2.19 32 Guatemala 1.20 66 Malawi 1.01 100 Slovak Republic 2.15 33 Botswana 1.20 67 Chad 1.00 101 Czech Republic 2.08 34 Namibia 1.19 68 Ethiopia 1.00 102 13 BUSINESS USAGE SUBINDEX COUNTRY SCORE RANK COUNTRY SCORE RANK COUNTRY SCORE RANK 2003­2004 United States 6.02 1 Slovenia 4.02 35 China 3.43 69 Singapore 5.87 2 Costa Rica 4.01 36 Zimbabwe 3.41 70 Australia 5.85 3 Croatia 3.97 37 Colombia 3.39 71 Index Sweden 5.71 4 Portugal 3.96 38 Egypt 3.39 72 Denmark 5.44 5 Estonia 3.92 39 Ghana 3.35 73 Switzerland 5.42 6 India 3.92 40 Peru 3.33 74 Israel 5.40 7 Poland 3.88 41 Jamaica 3.32 75 Readiness Norway 5.37 8 Latvia 3.86 42 Pakistan 3.29 76 ed Iceland 5.32 9 Greece 3.86 43 Gambia 3.28 77 Japan 5.20 10 Panama 3.85 44 Uruguay 3.27 78 Finland 5.20 11 Slovak Republic 3.85 45 Russian Federation 3.17 79 Canada 5.12 12 Tunisia 3.81 46 Mozambique 3.14 80 Network New Zealand 5.08 13 Trinidad and Tobago 3.77 47 Guatemala 3.09 81 heT Hong Kong SAR 4.79 14 Dominican Republic 3.77 48 Serbia 3.05 82 1 Netherlands 4.75 15 Turkey 3.72 49 Ecuador 3.05 83 Germany 4.69 16 Lithuania 3.72 50 Zambia 3.04 84 Ireland 4.67 17 Hungary 3.71 51 Bangladesh 3.03 85 Korea 4.62 18 Jordan 3.69 52 Cameroon 3.01 86 Chapter Luxembourg 4.62 19 Vietnam 3.69 53 Bulgaria 3.00 87 United Kingdom 4.60 20 Botswana 3.64 54 Malawi 3.00 88 Taiwan 4.50 21 Argentina 3.61 55 Indonesia 2.99 89 Malaysia 4.48 22 Nigeria 3.59 56 Macedonia, FYR 2.99 90 France 4.45 23 Venezuela 3.58 57 Nicaragua 2.98 91 South Africa 4.40 24 Tanzania 3.58 58 Ukraine 2.98 92 Austria 4.37 25 Philippines 3.57 59 Algeria 2.97 93 Belgium 4.36 26 El Salvador 3.55 60 Honduras 2.86 94 Chile 4.18 27 Mauritius 3.52 61 Madagascar 2.85 95 Italy 4.15 28 Senegal 3.52 62 Angola 2.79 96 Malta 4.14 29 Namibia 3.50 63 Paraguay 2.66 97 Czech Republic 4.11 30 Morocco 3.50 64 Bolivia 2.65 98 Brazil 4.08 31 Uganda 3.50 65 Haiti 2.59 99 Mexico 4.05 32 Kenya 3.48 66 Chad 2.59 100 Thailand 4.05 33 Sri Lanka 3.46 67 Ethiopia 2.58 101 Spain 4.04 34 Romania 3.44 68 Mali 2.55 102 Table 5. Usage Subindexes (continued) Usage component index = 1/3 Individual Usage + 1/3 Business Usage + 1/3 Government Usage GOVERNMENT USAGE SUBINDEX COUNTRY SCORE RANK COUNTRY SCORE RANK COUNTRY SCORE RANK Singapore 6.45 1 Chile 3.58 35 Nigeria 2.79 69 United States 5.51 2 Tunisia 3.55 36 Trinidad and Tobago 2.79 70 Canada 5.38 3 Pakistan 3.53 37 Senegal 2.77 71 Hong Kong SAR 5.29 4 Jamaica 3.51 38 El Salvador 2.76 72 Denmark 5.05 5 Romania 3.45 39 Mozambique 2.76 73 Taiwan 4.83 6 Netherlands 3.42 40 Zambia 2.74 74 Malaysia 4.56 7 Spain 3.41 41 Bulgaria 2.71 75 Finland 4.51 8 Luxembourg 3.40 43 Panama 2.71 76 Israel 4.49 9 Portugal 3.40 42 Costa Rica 2.69 77 Korea 4.48 10 Egypt 3.37 44 Poland 2.67 78 Sweden 4.45 11 Turkey 3.33 45 Peru 2.65 79 Germany 4.43 12 Uganda 3.30 46 Cameroon 2.62 80 Estonia 4.42 13 Morocco 3.27 47 Uruguay 2.59 81 Japan 4.36 14 Argentina 3.25 48 Madagascar 2.58 82 Austria 4.32 15 Hungary 3.22 49 Namibia 2.55 83 France 4.29 16 Vietnam 3.22 50 Ecuador 2.53 84 Malta 4.29 17 Brazil 3.16 51 Ukraine 2.52 85 United Kingdom 4.20 18 Serbia 3.13 52 Venezuela 2.47 86 Ireland 4.17 19 Latvia 3.11 53 Malawi 2.44 87 Australia 4.16 20 Slovenia 3.08 54 Macedonia, FYR 2.43 88 China 4.12 21 Gambia 3.08 55 Algeria 2.42 89 New Zealand 3.92 22 Tanzania 3.07 56 Dominican Republic 2.40 90 Iceland 3.84 23 Slovak Republic 3.06 57 Bangladesh 2.37 91 Thailand 3.76 24 Botswana 3.04 58 Ethiopia 2.36 92 Mauritius 3.75 25 Greece 3.04 59 Guatemala 2.27 93 India 3.73 26 Indonesia 3.00 60 Mali 2.24 94 South Africa 3.72 27 Czech Republic 3.00 61 Angola 2.23 95 Mexico 3.70 28 Sri Lanka 2.97 62 Bolivia 2.02 96 Philippines 3.68 29 Lithuania 2.96 63 Nicaragua 2.02 97 Norway 3.64 30 Croatia 2.89 64 Honduras 1.99 98 Switzerland 3.64 31 Kenya 2.85 65 Paraguay 1.94 99 Belgium 3.64 32 Russian Federation 2.84 66 Zimbabwe 1.71 100 Jordan 3.64 33 Ghana 2.82 67 Chad 1.67 101 14 Italy 3.59 34 Colombia 2.82 68 Haiti 1.48 102 2003­2004 Figure 3. Networked Readiness 2003­2004 vs Gross Domestic Product per Capita, Index Partial Log Regression 6.00 United States Singapore Readiness Estonia India ed 5.00 Luxembourg Network 4.00 Italy heT 1 Greece 3.00 Chapter 2.00 Venezuela Ethiopia 1.00 0 10,000 20,000 30,000 40,000 50,000 GDP per capita (US$) Source: Authors' analysis of data from the World Bank Figure 4. Competition in the ICT Sector Gives Rise to Affordability of Services, Partial Logarithmic Regression Internet service provider access charges (US$ per 30 off-peak hours) adjusted by GDP per capita 0.20 0.18 0.16 0.14 0.12 0.10 0.08 0.06 y = 0.7392e -1.1274x R2 = 0.3062 0.04 0.02 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 Competition in the ICT Sector Source: Authors' analysis of data from the World Economic Forum and The World Bank Figure 5. Internet Users per 1,000 inhabitants and Networked Readiness, Partial Logarithmic Regression Internet users per 1,000 inhabitants 15 700.0 600.0 2003­2004 500.0 Index 400.0 Readiness 300.0 ed y = 0.5316x -0.8576 200.0 R2 = 0.801 Network heT 100.0 1 0.0 0.05 0.1 0.15 0.2 Chapter Internet service provider access charges (US$ per 30 off-peak hours) -100.0 adjusted by GDP per capita Source: Authors' analysis of data from the World Bank as a function of the ISP access charge adjusted by GDP per In Figure 6, the number of Internet users per 1,000 capita. One sees a decrease in the number of Internet users inhabitants is plotted against the overall NRI of a country. with increasing ISP access charges. Thus nations with more One sees that as the number of Internet users increases, there affordable ICT services would tend to have higher levels of is a trend towards an increase in the NRI. ICT readiness and usage for their key stakeholders. This should lead to a higher level of NRI for the nation. Plotting the intensity of ICT competition against the NRI provides a very interesting result as can be seen in Figure Figure 6. Internet Users per 1,000 Inhabitants and Networked Readiness, Partial Logarithmic Regression Networked Readiness score 6.00 5.00 4.00 3.00 2.00 0 100 200 300 400 500 600 700 Internet users per 1,000 inhabitants Sources: Authors' analysis of data from the World Economic Forum and from the World Bank 7. The NRI is seen to increase steadily as the degree of index scores, and one sees this readiness translating into real competition in the ICT sector increases. Thus one impact ICT usage, as represented by high Usage scores (see Figure 8). of policy on the NRI is clear. Competition in the ICT sector 16 makes services more affordable, and the more affordable a If one has a closer look at the trend of Readiness versus service becomes, the more it is used by the key stakeholders-- Usage, at lower values of Readiness, one sees that Usage individuals, businesses, and governments. The increased remains rather flat with initial increases in Readiness. This readiness and usage of ICT increases the NRI of a country. leads us to believe that there is a threshold to Readiness: 2003­2004 a country needs to have a certain level of Readiness with Our research provides empirical support for policymakers regards to ICT before there can be an effective usage of ICT, Index seeking to enhance their ICT competitiveness and overall and a consequent impact. A certain critical mass in terms levels of NRI; a key is to promote competition in the local of number of users, or the availability of narrowband and ICT sector. An example of a country having followed this broadband services, or of services online is essential before Readiness route is Japan. Japan's incumbent operator NTT actively this is reflected in usage metrics. This is reflected in Figure 8. ed promoted ISDN service, and reached significant penetration. · Haiti, with a Readiness score of 2.92, has a low Usage At that moment, the government encouraged competition score of 1.71 and has still to increase its Readiness before Network for entry by unbundling the local loop and, as a result, Usage starts increasing significantly. heT numerous players entered with DSL service. The result 1 was a sharp decline in prices to half that of the incumbent · Uganda is an over performer below the threshold level. It NTT's initial offering, and a rapid take-off in the adoption has a Readiness score of 3.32 and a corresponding Usage Chapter of DSL. Japan today has one of the world's most competitive level of 2.60. and cheapest broadband services. The uptake has grown · Luxembourg and France find themselves above the exponentially since DSL was introduced. threshold level. While Luxembourg overperforms, France has a lower Usage level than expected. Is there a threshold for Usage to take off? One would expect the Readiness and Usage scores of a nation Evolution of the NRI over time to move hand-in-hand. A country having a high degree of The Networked Readiness of a nation is a dynamic measure, Readiness should be able to transform this ICT capability and it evolves over time as a result of policy measures taken by into usage statistics, and hence show a consequent high score government and business leaders, and as a result of changes on the Usage component index. For instance, the United occurring in the global environment. Looking at the changes States is among the highest in terms of Readiness component in NRI rankings over time (see Table 6), one observes that 15 countries have shared the 10 top positions. Figure 7. Competition Promotes Networked Readiness, Partial Logarithmic Regression Networked Readiness Index score 6.00 5.50 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 Competition in the ISP sector Sources: Authors' analysis of data from the World Economic Forum and from the World Bank Figure 8. Usage vs Readiness Component Indexes Usage Component Index score 6.00 United States 17 5.00 Luxembourg 4.00 2003­2004 Malta eshhold France Thr Index 3.00 Uganda Mozambique Lithuania Readiness ed 2.00 Ukraine Chad Haiti Network 1.00 heT 2.00 3.00 4.00 5.00 6.00 1 Readiness Component Index score Source: Technology Management Department, INSEAD Chapter The United States and Finland have consistently been in the One must add a note of caution to this analysis because the top three positions, whereas Singapore has rapidly progressed results of the three different research efforts are not directly from 8th place in 2001­2002, to 3rd place in 2002­2003, and comparable. The framework used in the 2001­2002 study is currently in 2nd place. is different (see Schwab et al 2002). Moreover, while the framework and methodology of analysis of the 2002­2003 Another constant is the performance of the northern and the 2003­2004 studies are identical, the underlying data European countries, with Finland, Sweden, Denmark, variables used differ to a certain extent. This is in order to Norway, and Iceland present in the top 10 places in each of accomodate the larger set of countries considered in the the three years. current analysis and the availability of reliable and up-to-date information. Table 6. Evolution of Networked Readiness from 2001­2003 collect a complete and high quality set of data relating to ICT. We used two types of data in our research: soft data, which Country 2003­2004 2002­2003 2001­2002 are subjective data gathered from questionnaires (managed United States 1 2 1 by the World Economic Forum as part of their research for Singapore 2 3 8 the Global Competitiveness Report), and hard data, which are driven by statistics collected by international multilateral Finland 3 1 3 agencies (such as the World Bank and ITU). Both these sets Sweden 4 4 4 of data play a crucial role in the overall analysis. The soft data Denmark 5 8 7 are critical in determining the opinion of the decision makers Canada 6 6 12 and influencers who are intimately familiar with a nation's Switzerland 7 13 16 economy and ICT usage. On the other hand, the hard data capture fundamental elements related to the development of Norway 8 17 5 infrastructure, human capital and ICT. Australia 9 15 14 Iceland 10 5 2 Absence of Key Usage Metrics: Key ICT areas such as mobile telephony and the Internet are still undergoing rapid development. Owing to this, accurate and up-to-date usage metrics are difficult to obtain. For example, metrics on cost The Digital Divide--Increasing or Decreasing? savings realized, on key measures of policy and regulation, The subject of digital divides across and within nations has and on the use of ICT by governments remain elusive. received a lot of attention over the last years. Since ICT is seen Selection of Countries: The use of objective and reliable data is as an important enabler of productivity and growth, leaders critical in preparing a report of this type. Availability of data has from business and government have embarked upon several in fact been a key factor in selecting the 102 countries that form plans to increase the adoption and usage of ICT among the part of this study. As a consequence, regions suffering from a key stakeholders--individuals, businesses, and governments. chronic lack of reliable statistics such as Africa and Central Asia In this context, frequently evoked questions have concerned find themselves underrepresented in the NRI index. 18 changes in the digital divide: are the differences in the levels of Ensuring Statistical Significance: Once solid and reliable facts digital development amongst nations increasing or decreasing? had been accumulated, a comprehensive statistical analysis Is there a convergence or divergence in the digital divide? was conducted. Following the classic steps of any such 2003­2004 Figure 9 shows the plot of the NRIs for the years 2002­2003 analysis, correlation and factor analyses were conducted to and 2003­2004 in descending order of NRI. The trend lines determine interrelationships amongst variables and to drop Index for the two sets of NRI are plotted also. The spread (distance variables if necessary. The variables were then classified along between the higher and lower ends of the trend line) of the the lines of the NRI framework. NRI is seen to decrease from the year 2002­2003 to the year Readiness Data Estimation: Despite our best efforts to collect data from 2003­2004, and this indicates a decrease in the digital divide ed all major international sources, it has been necessary at times across nations. to cope with incomplete sets of data for the countries under Network Figure 10 plots the weighted average NRI by region, consideration. In order to compensate for this, statistical heT normalized by taking the score of Africa (the region with the procedures have been used to estimate missing data: mainly 1 lowest NRI each year as 1). One sees that from 2001­2002 to regression and clustering techniques. Control procedures the current study of 2003­2004, the weighted average NRI and checks have been devised to ensure that estimations were reasonable and not overly favorable or disadvantageous in Chapter scores are tending to converge, indicating that the NRI of major regions of the world are converging over time. their representation of the countries in question. Calculating the Index: In order to calculate the index, the data Research Challenges were first transformed on a scale of 1 to 7, in order that each piece of information would have an equal weight. Next, each of the subindexes was computed as the mathematical average Finding the Facts of the variables composing it. The same approach was used to calculate the component indexes, averaging the subindexes. Lack of accurate and reliable data can pose seemingly Finally, the NRI was computed as an average of the three insurmountable roadblocks to the implementation of even the component indexes. Details are provided in the technical best laid out frameworks. The goal of our research and analysis appendix and in the later chapter titled "The Networked has been to provide a scientific and credible interpretation of Readiness Index: Methodology." reality. Thus, an important step in our research has been to Figure 9. Digital Convergence or Divergence? Networked Readiness score 7 6 NRI Spread 2002_2003 NRI Spread 2003_2004 5 Spread in NRI has decreased from 2002_2003 to 2003_2004 4 3 2 1 NRI 2003-2004 NRI 2002-2003 0 Chile India Rica Taiwan Estonia Tunisia Turkey Ukraine UgandaMalawi Singapore Colombia Bulgaria Costa Philippines Honduras SwitzerlandNetherlands Source: Technology Management Department, INSEAD Figure 10. Regional Weighted NRI, 3-Year Trend With in the availability of reliable and current data restrict the Africa = 1 measurement of the phenomena to a subset of countries, and 19 also to a small number of the underlying forces. 2.5 Nevertheless the Networked Readiness Framework and Index 2.0 2001 are useful tools for key policy decision makers charting a 2002 2003­2004 country's strategic direction in order to enhance national 1.5 2003 competitiveness. The NRI Framework attempts to interpret Index the underlying complexity of the development and use of ICT 1.0 in an intuitive and easy-to-comprehend model. The overall NRI is a summary measure of a nation's ability to participate Readiness 0.5 in and benefit from ICT developments. The NRI provides ed guidance to business leaders and public policymakers for 0 enhancing the impact of ICT on important stakeholders-- 1 = Network East Asia individuals, businesses, and governments. Europe Europe Oceania Africa America America of heT Middle est 1 Rest Latin W North Governments and policymakers can have significant The weighted average NRI is calculated as per the following formula: Weighted average NRI of Region = ((NRI of impact on the adoption and usage of ICT. For example, our Chapter Country*Population of country))/ Population of the region) over all research has demonstrated that promoting competition the countries in the given region. and deregulation in the ICT sector leads to decreasing service costs, and that lowered costs result in an increase in Source: Technology Management Department, INSEAD consumption of services. The NRI allows a nation to benchmark its ICT performance, Summary and to determine the effectiveness of policy. It also permits Networked Readiness is a complex phenomena and the sum a country to learn from the policy and performance of of diverse and interrelated forces. Measuring a country's other countries with similar profiles, and to identify best Networked Readiness remains a significant challenge, and practice. The NRI serves to highlight the areas of over- and any framework or model representing Networked Readiness underperformance of a given country as compared to a is a simplified representation at best. Further, limitations similar set of countries, and to provide best practice examples. Overperforming countries have put ICT on the national Endnotes agenda, and have striven to make it an area of excellence, 1 For more information on the development of the Networked whereas other underperforming nations have not done Readiness Framework and other efforts in the domain, refer to so. The former countries have succeeded in going beyond Dutta and Jain, "Networked Readiness of Nations" in Dutta et al 2003. individual measures of national income, or national ICT spending, in an effort to provide an optimal Environment for 2 While the Networked Readiness Framework for 2003­2004 ICT development, thus promoting high levels of Readiness is identical to that used in 2002­2003, it is important to note that the underlying variables have evolved. The increase in and Usage within all three key stakeholders. The United the number of countries included in the NRI rankings from 82 States, Singapore, and Finland are such leaders, and can serve in 2002­2003 to 102 this year limits the number of variables as role models for other nations in their quest for that can be considered. The research methodology imposes a 65 percent observation rate for each variable over the 102 ICT excellence. countries. Variables with fewer observations than this have been dropped. 3 Oceania includes Australia and New Zealand. 4 For example, overall second ranked Singapore does well on the Readiness component index (4), supported by a strong Government Readiness (1) and Business Readiness (4), even though it has a relatively modest performance on Individual Readiness (22). See Table 4. References Dutta, S., B. Lanvin and F. Paua, eds. 2003. The Global Information Technology Report 2002­2003: Readiness for the Networked World. New York: Oxford University Press. International Telecommunication Union. 2002. World Telecommunication Indicators. Online. http://www.itu.int/home/ index.html Kirkman, G., P. Cornelius, J. Sachs, and K. Schwab, eds. 2002. The 20 Global Information Technology Report 2001­2002: Readiness for the Networked World. New York: Oxford University Press. Organisation for Economic Co-operation and Development. 2001. Science, Technology and Industry Outlook: Drivers of Growth: 2003­2004 Information Technology, Innovation, and Entrepreneurship. Online. http://www1.oecd.org/publications/e-book/ Index 9201131e.pdf Pilat, D. and F. C. Lee. 2001. Productivity Growth in ICT-Producing and ICT-Using Industries: A Source of Growth Differentials in Readiness the OECD? Online. http://www.oecd.org ed Schwab, K., M. Porter, J. Sachs, P. Cornelius, and J. McArthur, eds. 2002. The Global Competitiveness Report 2001­2002. New York: Oxford University Press. Network heT United Nations Development Programme. 2001. Human 1 Development Report: Making New Technologies Work for Human Development. New York: Oxford University Press. Chapter Van Ark, B. 2001. The Renewal of the Old Economy: An International Comparative Perspective. Online. http:// www.oecd.org World Bank Group. 2002. World Development Indicators 2001. Online. http://www.worldbank.org/data/wdi/index.htm Technical Appendix Constructing the Networked Readiness Index Definitions of the Networked Readiness Index, Component Indexes, and Subindexes The Networked Readiness Index separates Environmental factors from ICT Readiness and Usage, and hence there are three component indexes. Starting from a set of over 90 ICT related variables, we have divided these variables amongst the 9 subindexes. We then eliminated variables on the basis of number of countries for which data were available and used analytical procedures such as correlation analysis. Our final index computation is based on a set of 48 variables. The Networked Readiness Index is defined as follows: Networked Readiness Index = 1/3 Environment + 1/3 Readiness + 1/3 Usage I. The Environment component index is defined as follows: Environment Component = 1/3 Market Environment Subindex + 1/3 Political and Regulatory Environment Subindex + 1/3 Infrastructure Environment Subindex I.1. Market Environment Subindex is defined by the following variables: 1.01 State of cluster development, 2003 1.02 Venture capital availability, 2003 1.03 Subsidies for firm-level R&D, 2003 1.04 Quality of scientific research institutions, 2003 1.05 Availability of scientists and engineers, 2003 1.06 Brain drain, 2003 1.07 Utility patents, 2002 1.08 ICT manufactured exports, 2001 1.09 ICT service exports, 2001 21 I.2. Political and Regulatory Environment Subindex is defined by the following variables: 2.01 Overall administrative burden, 2003 2003­2004 2.02 Quality of the legal system, 2003 2.03 Laws relating to ICT, 2003 Index 2.04 Competition in the ISP sector, 2003 2.05 Foreign ownership restrictions, 2003 2.06 Efficiency of the tax system, 2003 Readiness ed 2.07 Freedom of the press, 2003 I.3. Infrastructure Environment Subindex is defined by the following variables: Network 3.01 Overall infrastructure quality, 2003 heT 1 3.02 Waiting time for telephone lines, 2000 3.03 Telephone mainlines, 2001 3.04 Public pay telephones, 2001 Chapter 3.05 Internet servers, 2001 Our research used the most recent data available from the concerned sources e.g., the Executive Opinion Survey 2003 from the World Economic Forum and data from the World Bank and International Telecommunication Union. II. The Readiness component index is defined as follows: Readiness Component = 1/3 Individual Readiness Subindex + 1/3 Business Readiness Subindex + 1/3 Government Readiness Subindex II.1. Individual Readiness Subindex is defined by the following variables: 1.01 Public expenditure on education, 2000 1.02 Adult illiteracy, 2001 1.03 Tertiary enrollment, 2001 1.04 Radios, 2001 1.05 Television sets, 2001 1.06 Households online, 2001 1.07 Quality of math and science education, 2003 1.08 Affordability of local fixed line calls, 2001 1.09 Affordability of Internet telephone access, 2001 1.10 Affordability of Internet service provider fees, 2001 II.2. Business Readiness Subindex is defined by the following variables: 2.01 Ease of obtaining telephone lines, 2003 2.02 Cost of business phone subscription, 2002 2.03 Extent of staff training, 2003 2.04 Quality of business schools, 2003 2.05 Scientists and engineers in R&D, 2000 II.3. Government Readiness Subindex is defined by the following variables: 3.01 Government prioritization of ICT, 2003 3.02 Government procurement of ICT, 2003 3.03 Government online presence, 2003 22 III. The Usage component index is defined as follows: Usage Component = 1/3 Individual Usage Subindex +1/3 Business Usage Subindex + 1/3 Government Usage Subindex 2003­2004 III.1. Individual Usage Subindex is defined by the following variables: Index 1.01 Personal computers, 2001 1.02 ISDN subscribers, 2001 1.03 Cable television subscribers, 2001 Readiness 1.04 Internet users, 2001 ed III.2. Business Usage Subindex is defined by the following variables: Network 2.01 Computers installed in businesses, 2002 heT 2.02 Firm-level technology absorption, 2003 1 2.03 Prevalence of foreign technology licensing, 2003 Chapter III.3. Government Usage Subindex is defined by the following variables: 3.01 Government success in ICT promotion, 2003 3.02 Government online services, 2003 "Bridging the digital divide in and among countries has assumed a critical importance on our respective national Chapter 2 agendas. Everyone should be able to enjoy access to information and communications networks." Global Diffusion "Okinawa Charter on Global Information Society," adopted at the G-8 summit meeting in Okinawa and Kyushu, July 2000 of ICT: Recognizing the potential of information and communication A Progress Report technologies (ICT) for accelerating economic development and enhancing the lives of individuals, the international community has stressed the importance of improving access to technologies, particularly in the developing world. Attention to this issue reached a turning point in 2000, when the G-8 Digital Opportunity Taskforce (DOT Force) was created to focus on bridging the digital divide. It was also at this time that the World Economic Forum initiated work on the first Global Information Technology Report,1 which focused on assessing the preparedness of individuals, businesses, and governments to participate in, and benefit more fully from, the global networked world. Since 2000, however, much has changed in the global political, economic, and technological landscape. International geopolitical tensions have escalated at the same time that the engines of economic growth have slowed in many parts of the world. Meanwhile, the technology sector has undergone massive and widespread consolidation and restructuring, 23 including painful reassessment of investment strategies and Fiona Paua, World Economic Forum product deployment. Only recently have we begun to see the ICT of recovery of the global economy and signs of increased activity in the technology sector. Diffusion On the occasion of the World Summit for Information Society meetings to be held in Geneva (2003) and the launching of the Global third edition of the Global Information Technology Report, it is 2 fitting to examine what has been accomplished in the last three years. Although a three-year time frame would appear short Chapter in most cases, it is a reasonable time frame when viewed in the context of the dynamism of ICT diffusion in the world. The purpose of this progress report is to evaluate recent performance and ascertain the implications of the work that lies ahead. What is the global picture of the diffusion of ICT? What has been accomplished in the last three years? Which countries are performing well and which are lagging? How much remains to be done? What lessons can we glean? This progress report is about access to ICT. It focuses on assessing the spread of key information and communication technologies. It examines the pervasiveness of Internet use in the world and traces the diffusion of personal computers, The views expressed here are the author's personal main telephone lines,cellular mobile telephones, television opinions and do not necessarily reflect those of the World Economic Forum. The author wishes to acknowledge receivers, cable television, and home satellite antennas. invaluable research assistance from Catherine Vindret, Saadia Zahidi, and Victor Echevarria Icaza. Among the important uses of these technologies is as tools for transmitting information that can be relevant for development purposes. But beyond the transmission of The types of ICT assessed in this chapter were determined information, these same tools, when networked, enhance primarily by the availability of data. The selection does not, in individual, firm, and national productivity, broaden the any way, assert that these devices represent the technologies market access of entrepreneurs and businesses, and improve most relevant for the developmental requirements of government service delivery. Significantly, these devices countries worldwide. Indeed, beyond the scope of this report can improve overall individual well-being and transform are other very important dimensions of the issue of ICT the interaction between and among various stakeholders in access, such as identifying appropriate technologies and society, transcending geographical and other boundaries. relevant applications and ensuring affordability and ease of use, being particularly mindful of varied linguistic and This progress report analyzes information from the learning capabilities. International Telecommunication Union (ITU),2 which produces the most extensive database on relevant indicators. Employing disaggregated data, this analysis is conducted The database contains several decades' information for more at the global, regional, and country levels. The first part of than 200 countries and territories and is an excellent source the analysis focuses on the global picture, defining eight not just because of the breadth of its scope, but also for the prevailing trends. The second part presents regional profiles comparability of the data. The current analysis relates to data that capture those countries that are significantly improving for 1999­2002 for 200 of the world's economies covering ICT access and those countries that are lagging behind. The 99.98 percent of the world's population. Seven indicators third part of the analysis highlights policy considerations that are included: the number of Internet users (estimated), are most relevant to promoting ICT access. personal computers, main telephone lines in operation,3 cellular mobile telephone subscribers4 and, to a lesser extent, Part I. The Global Picture television receivers, cable television subscribers, and home satellite antennas. The data, although ending in 2002, appear Eight key findings sketch the global picture: (1) growth in ICT to reflect the most current world status of these indicators. diffusion has been dramatic, with cellular mobile telephone subscribers exceeding the number of main telephone lines Table 1. Increase in Global ICT Diffusion at a Glance, 1999­2002 24 1999 2002 1999­2002 Increase (in millions) (in millions) (in millions) (in percent) ICT of Population 5,962 6,192 229 4 Households 1,484 1,552 68 5 Internet users (estimated) 276 605 329 119 Personal computers 394 550 157 40 Diffusion Main telephone lines in operation 906 1,098 192 21 Cellular mobile telephone subscribers 493 1,155 662 134 Global Television receivers 1,573 1,775 202 13 2 Cable television subscribers 288 359 71 25 Home satellite antennas 78 97 19 24 Chapter % of Total population % of Total households 1999 2002 1999 2002 Internet users (estimated) 5 10 19 39 Personal computers 7 9 27 35 Main telephone lines in operation 15 18 61 71 Cellular mobile telephone subscribers 8 19 33 74 Television receivers 26 29 106 114 Cable television subscribers 5 6 19 23 Home satellite antennas 1 2 5 6 Ratio to population Ratio to households 1999 2002 1999 2002 Internet users (estimated) 1 in 22 1 in 10 1 in 5 1 in 3 Personal computers 1 in 15 1 in 11 1 in 4 1 in 3 Main telephone lines in operation 1 in 7 1 in 6 1 in 2 1 in 1 Cellular mobile telephone subscribers 1 in 12 1 in 5 1 in 3 1 in 1 Television receivers 1 in 4 1 in 3 1 in 1 1 in 1 Cable television subscribers 1 in 21 1 in 17 1 in 5 1 in 4 Home satellite antennas 1 in 77 1 in 64 1 in 19 1 in 16 Source: Author's calculations based on data from the International Telecommunication Union, World Telecommunication Indicators Database, accessed July 2003 and with Internet users exceeding the number of personal the table highlights, at least 85 of the 125 economies are from computers; (2) the largest increases in ICT diffusion are in middle income and low income countries.5 the most populous countries; (3) some of the fastest rates of growth and most sizeable increases in diffusion are in The number of Internet users also multiplied exponentially-- developing economies; (4) the best penetration rates are still 119 percent over the last three years. Since 1999, the world in advanced economies with relatively small populations; has added 329 million more Internet users, bringing the total (5) the less developed economies still have the poorest ICT estimated number of Internet users to 605 million as of 2002. penetration rates; (6) despite the dramatic increases in This means that 10 percent or 1 person in every 10 in the world diffusion of ICT in the most populous countries, it is also is an Internet user. Significantly, the number of Internet users in these very same countries where most of the work still in the world has exceeded the number of personal computers. needs to be done; and finally, (8) the "divide" in ICT access There were 550 million personal computers in the world as of has narrowed but low income, particularly severely indebted 2002, up 40 percent from nearly 400 million in 1999. economies in sub-Saharan Africa, still lag considerably. Television, however, retains the distinction of being the most 1. Growth in global ICT diffusion has been pervasive device. There are 1.8 billion television receivers dramatic. in the world, or 1 for every 3 persons and almost 1 for every household. Coming from a fairly high base, growth in While much remains to be done, it is indisputable that the television receivers was 13 percent over the last three years; in diffusion of ICT access has been nothing less than dramatic numerical terms, that is 202 million more television receivers, over the three years under study. This improvement in a figure higher than the increase in the number of main ICT access has been achieved despite consolidation in the telephone lines in operation during the same period. But technology sector and an overall global economic growth access to cable television and home satellite antennas remains slowdown. limited. As of 2002, there were about 360 million cable television subscribers in the world, equivalent to 1 subscriber The greatest dynamism was exhibited by the growth of for every 4 households and 1 subscriber in every 17 persons. cellular mobile telephone subscribers and the increase in Meanwhile, home satellite antennas numbered 97 million in the number of Internet users (see Table 1). Of the 6.2 billion 2002, or 1 for every 16 households and 1 for every 64 persons. people in the world, 1 in every 5 is a cellular mobile telephone Both cable television and home satellite antennas grew at a subscriber, up from 1 in every 12 three years ago. In this 25 comparable pace, about 25 percent for the three-year period. period, the number of cellular mobile telephone subscribers ICT grew 134 percent, outpacing the 21 percent growth of the 2. The largest increases in ICT diffusion came of number of main telephone lines in operation. Since 1999, from the most populous countries. there have been 662 million additional cellular mobile telephone subscribers, many more than the 192 million main A large proportion of the improvement in ICT diffusion Diffusion lines added during the same period. As of 2002, the number came from some of the most populous countries of the world of cellular mobile telephone subscribers (1.15 billion) (see Table 2). For the period 1999­2002, China is the most Global 2 exceeded the number of main telephone lines in operation outstanding performer, posting the highest increase in many (1.10 billion). Appendix 1 lists by income the 125 economies of the indicators. The country posted the highest increase where the number of cellular mobile telephone subscribers in the number of main telephone lines in operation, cellular Chapter exceeds the number of main telephone lines in operation. As mobile telephone subscribers, television receivers, and cable Table 2. Increases in ICT Diffusion in the 7 Most Populous Countries, 1999­2002 Increases, 1999­2002* (in millions) 2002 Population Internet users Personal Main telephone Cellular mobile Television (in millions) Country (estimated) computers lines telephone subscribers receivers 1,285 China 50 10 106 163 40 1,042 India 14 3 15 11 10 288 United States 53 37 6 55 34 212 Indonesia 7 0 2 9 2 174 Brazil 11 7 14 20 4 149 Pakistan 1 0 1 1 5 147 Russian Federation 5 8 5 16 5 Note: *or latest available data Source: Author's calculations based on data from the International Telecommunication Union, World Telecommunication Indicators Database, accessed July 2003 Box 1. ICT Diffusion in China and India Both China and India have posted remarkable improvements in ICT diffusion over the last decade. A close look at comparative historical data reveals different rates of ICT diffusion: each of the four diffusion rates for China appears to be a multiple of the corresponding rate for India. Differential rates such as these raise the question of what factors affect diffusion rates in countries.6 Figure 1. Main Telephone Lines in Operation, 1992­2002 Figure 3. Personal Computers, 1991­2001 In millions In millions 250 30 China China 25 200 20 150 15 100 10 India 50 India 5 0 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Figure 2. Cellular Mobile Telephone Subscribers, 1992­2002 Figure 4. Internet Users, 1992­2002 In millions In millions 250 70 China China 60 26 200 50 ICT 150 40 of 100 30 20 India Diffusion 50 10 India Global 0 0 2 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Chapter Source: International Telecommunication Union, World Telecommunication Indicators database, accessed July 2003 television subscribers. China also posted the second highest year period while Japan, with the second highest increase, increase in the number of Internet users and the fifth highest added 6 million subscribers, a sixth of China's figure. increase in the number of personal computers. Of the most populous and developed economies, the United Although it is tempting to chalk up the gains in penetration States, Japan, and Germany posted the highest increases. The to the scale of China's population, the country's achievements United States, the third most populous country in the world, over the last three years is best appreciated when juxtaposed added the highest number of Internet users and personal with other populous countries (see Box 1 and Table 2). In computers at 53 million and 37 million, respectively. terms of main telephone lines, for instance, China added 106 The United States is followed by Japan, the ninth most million while India, with the second highest increase, added populous country, which posted the third highest increase 15 million. Likewise, China added 163 million cellular mobile in the number of Internet users and personal computers. telephone subscribers, while the United States, with the Germany, the 12th most populous country in the world, second highest increase, added 55 million. Similarly, China posted the third highest increase in cellular mobile telephone had 36 million new cable television subscribers in the three- subscribers, the fourth highest increases in Internet users, personal computers, cable television subscribers, and home Indonesia also posted a significant increase in pay phones, satellite antennas and the fifth highest increase in main adding 133,627 over the last three years. telephone lines in operation. 3. Some of the fastest rates of growth and Many of the most populous countries in the developing most sizeable increases are in developing world also posted the largest increases over the last three economies. years. Next to China and India, Brazil stands out as having added, since 1999, an additional 14 million main telephone Of the 200 economies included in the study, 180 economies, lines, 20 million cellular mobile telephone subscribers, 11 mostly developing economies, doubled their number of million Internet users, and 7 million personal computers. Internet users during this period, growing by as much as Another notable performer is Russia, which, over the same 44,400 percent (as in the case of Somalia). During this same period, added 8 million personal computers, 5 million main period 61 economies doubled their number of personal telephone lines, and 5 million television receivers. computers; in the area of telecommunications, 26 economies doubled their number of main telephone lines in operation Because the figure for main telephone lines in Table 2 and at least 69 economies doubled their number of cellular includes public pay telephones, more access is being provided mobile telephone subscribers. Twenty-one economies than the actual number of lines suggests. During the three- also doubled their number of television receivers, while year period, Brazil added 638,100 public pay telephones, 20 economies doubled their number of cable television China added 488,562 pay phones and India added 442,000. subscribers and 32 economies doubled their number of home satellite antennas. Table 3. Most Significant Increases in ICT Diffusion, 1999­2002* Country (millions) % of World increase Country % change (thousands) Internet users (estimated) United States 53 16 Somalia 44,400 89 China 50 15 Azerbaijan 3,650 292 Japan 30 9 Uzbekistan 3,567 268 27 Germany 18 5 Zimbabwe 2,400 480 Korea, Republic of 15 5 Lesotho 2,000 20 ICT India 14 4 Myanmar 1,900 10 of France 13 4 Pakistan 1,775 1,420 United Kingdom 12 4 Sao Tome and Principe 1,700 9 Diffusion Brazil 11 3 Libya 1,686 118 Italy 9 3 Sudan 1,580 79 Personal computers Global 2 United States 37 24 Yemen 383 115 Korea, Republic of 15 10 Zimbabwe 300 450 Japan 12 8 Equatorial Guinea 250 3 Chapter Germany 12 7 Bangladesh 246 320 China 10 6 Paraguay 233 140 Russian Federation 8 5 Bhutan 233 7 Brazil 7 4 Togo 200 100 France 5 3 Maldives 167 13 Canada 4 3 Croatia 153 460 Italy 4 3 Saudi Arabia 150 1,803 Main telephone lines in operation China 106 55 Somalia 186 65 India 15 8 Sudan 167 420 Brazil 14 7 China 97 105,704 United States 6 3 Mauritania 94 15 Germany 6 3 Ethiopia 89 174 Iran 5 2 Haiti 86 60 Russian Federation 5 2 Guinea-Bissau 84 5 Mexico 4 2 Yemen 79 226 Egypt 3 1 Malawi 77 32 Korea, Republic of 3 1 Lao, PDR 76 27 Table 3. Most Significant Increases in ICT Diffusion, 1999­2002* (continued) In terms of figures In terms of growth rates Country (millions) % of World increase Country % change (thousands) Cellular mobile telephone subscribers China 163 25 Syria 9,900 396 United States 55 8 Cameroon 9,283 557 Germany 36 5 Albania 7,167 789 Japan 24 4 Nigeria 6,432 1,608 United Kingdom 23 3 Burundi 6,400 51 Italy 22 3 Kenya 5,478 1,301 Brazil 20 3 Djibouti 5,257 15 Spain 18 3 Equatorial Guinea 4,400 26 Mexico 18 3 Congo, DR 4,336 217 Television receivers China 40 20 Burkina Faso 631 820 United States 34 17 Togo 500 500 Turkey 13 6 Namibia 314 382 India 10 5 Eritrea 233 140 Japan 9 4 Dem. People's Rep. of Korea 195 2,535 Sudan 8 4 Sudan 151 7,572 United Kingdom 7 4 Mali 15 210 Philippines 6 3 Tanzania 117 810 Pakistan 5 3 Albania 115 525 Russian Federation 5 2 Jamaica 98 481 Cable television subscribers China 36 57 Spain 466 484 Japan 6 9 Thailand 449 654 28 United States 5 7 Lebanon 426 81 ICT Germany 3 5 Kyrgyzstan 389 10 of India 3 5 Georgia 308 46 Philippines 2 3 Azerbaijan 275 3 Korea, Republic of 1 2 Indonesia 250 50 Diffusion Australia 1 1 Philippines 145 1,740 United Kingdom 1 1 Australia 143 825 Global Thailand 1 1 Nigeria 115 32 2 Home satellite antennas United States 5 28 New Zealand 466 247 Chapter United Kingdom 2 10 Tunisia 338 1,198 Canada 2 10 Canada 295 1,635 Germany 1 8 Sudan 291 64 Tunisia 1 7 Malta 277 7 Hungary 1 5 Chile 209 85 Syria 1 5 Syria 191 830 Spain 1 5 Sri Lanka 183 0.1 Italy 1 4 Maldives 176 2 Turkey 1 4 Switzerland 157 440 Note: *or latest available data Source: Author's calculations based on data from the International Telecommunication Union, World Telecommunication Indicators Database, accessed July 2003 Table 3 shows numerous examples of developing economies having come from a relatively low base in 1999. But the fact that are making exemplary progress. Somalia, for instance, remains that these tremendous growth rates represent huge posted the largest rate of growth of main telephone lines increases in numbers in many economies. Indeed, over the and Internet users. Syria has the highest rates of growth of three-year period and of the 200 economies in the study, 66 cellular mobile telephone subscribers while Yemen posted the economies added at least 1 million cellular mobile telephone highest rates of increase in personal computers. For many of subscribers, 43 economies added at least 1 million Internet these economies, the dramatic growth rates stem partly from users, 31 economies added at least 1 million television receivers, 22 economies added at least 1 million personal in ICT diffusion. In the last three years, South Africa added computers, and 18 economies added at least 1 million main 6.9 million cellular mobile telephone subscribers, 2 million telephone lines. television receivers, and 1.2 million Internet users. Over the same period Nigeria, the region's most populous country, In addition to China, India, Russia, and Brazil, several added 4.5 million television receivers and 1.6 million cellular developing economies registered a combination of dramatic mobile telephone subscribers; the latter figure constitutes growth rates and an equally remarkable increase in the number a 6,432 percent increase over its 1999 subscriber base of of users. In South Asia, Pakistan is notable for increasing the 25,000. Kenya, too, multiplied the number of its cellular number of Internet users despite having a fairly low personal mobile telephone subscribers from 24,000 in 1999 to 1.3 computer base. In 1999 the country had only 80,000 Internet million in 2002. Another area where Kenya demonstrated users but over three years 1.4 million users were added, significant improvement is in the number of Internet users, amounting to a growth of 1,775 percent. Pakistan also added adding 465,000 users over the last three years from a base of 5.4 million television receivers and over 900,000 cellular mobile only 35,000 users. Similarly, Zimbabwe added 480,000 new telephone subscribers; Bangladesh likewise added a similar Internet users to its 1999 base of only 20,000 while increasing number of cellular mobile telephone subscribers as Pakistan, as its personal computer base by 450,000. Sudan is outstanding well as 3.2 million new television receivers. in terms of television receivers, having added 7.5 million in the last three years. Also notable is Burkina Faso, which added In the Middle East and North Africa region, rapid diffusion 820,000 television receivers over the same period. Several occurred in several economies. Iran, Saudi Arabia, and Egypt notable improvements can also be found in the increases posted widespread increases. In the last three years, Iran, in the number of cellular mobile telephone subscribers for instance, added 4.7 million main telephone lines, 2.9 in Cameroon, Senegal, and Côte d'Ivoire, which posted million Internet users, 1.8 million cellular mobile telephone increases of 9,283 percent (557,000 subscribers), 530 percent subscribers, 1 million personal computers, and 1 million (465,000 subscribers), and 299 percent (770,000 subscribers), television receivers. During the same period, Saudi Arabia respectively. increased its Internet user base from 100,000 to 1.6 million users. In addition, Saudi Arabia added 4.2 million cellular In Asia, different economies posted varying magnitudes mobile telephone users, and 1.8 million personal computers. of increases for different indicators. The largest increase in Also remarkable is Egypt's performance over the last three the number of Internet users was in the Republic of Korea, 29 years: an additional 4 million cellular mobile telephone which added 15 million new users in the three-year period. subscribers, 2.7 million main telephone lines, 1.4 million ICT Indonesia added 7 million Internet users, a 21-fold increase, of television receivers, and 1.3 million Internet users. Other while Taiwan added nearly 4 million new users, out of economies posted spectacular performances for specific its population of about 22 million. Increases in personal indicators: Morocco added 5.8 million cellular mobile computers were most notable in the Republic of Korea, which Diffusion telephone subscribers, Tunisia added 1.2 million home added 15 million units, and in Malaysia, which increased its satellite antennas, while Syria added half a million more number of units by 1.8 million, a doubling of the 1999 level. Global main telephone lines and television receivers. 2 In terms of main telephone lines, Vietnam and Thailand posted the most remarkable increases: the former added 1.6 In South America, Mexico posted impressive additions in million lines while the latter added 1.2 million. Growth of Chapter the last three years: 18 million cellular mobile telephone cellular mobile telephone subscribers was most dramatic subscribers, 4 million main telephone lines, 2.8 million in Thailand, with nearly 14 million new subscribers added Internet users, 2.6 million personal computers, and 1.8 during the three-year period. Taiwan and the Philippines million television receivers. Similarly, over the same added 12.4 and 11.4 million new subscribers, respectively. period Chile added 4.2 million cellular mobile telephone Diffusion of television receivers expanded by 195 percent subscribers, 3.7 million television receivers, and 3 million in the Democratic Republic of Korea while the Philippines Internet users. Argentina, despite its economic difficulties added 6.3 million units. The latter is also notable for during the last three years, added 2.9 million Internet users, increasing the number of cable television subscribers by 1.7 2.1 million cellular mobile telephone subscribers, and nearly million, nearly tripling the 1999 figure. Finally, the increase of 1 million personal computers. In the Caribbean, Jamaica is home satellite antennas was most remarkable in New Zealand, notable for doubling the numbers of its television receivers which registered a 466 percent increase. and Internet users while posting an 870 percent increase in the number of cellular phones from about 144,000 in 1999 to 1.4 million by 2002. 4. Best penetration rates are still in advanced economies with relatively small populations. While there are fewer economies that posted across-the- In Internet penetration, Iceland has the highest rate; its number board improvements in sub-Saharan Africa, the region of users is equivalent to 61 percent of its population (see Table nonetheless has many remarkable examples of improvements 4). Iceland is succeeded by Liechtenstein, Sweden, and Republic of Korea with Internet penetration rates of 58 percent, 57 with a personal computer penetration of at least 50 percent percent, and 55 percent of the population, respectively. of their population: Switzerland, Luxembourg, Australia, Singapore, with an Internet penetration of 54 percent of Norway, and Singapore. its population, stands out as having the highest household Internet penetration at 227 percent of its households. In terms of main telephone lines, Monaco and Bermuda have the highest penetration rates in the world, while Taiwan For personal computer penetration, the United States and Luxembourg have the best penetration rates in terms takes the lead, with a penetration rate of 62 percent of its of cellular phones. For television receivers, Bermuda and population. The United States is followed by Denmark at 58 the Faroe Islands have the highest penetration rates while percent penetration, and both Sweden and Republic of Korea Monaco and Liechtenstein have the highest penetration rate at 56 percent. In addition, there are five other economies of cable television. Faroe Islands and Kuwait have the best penetration rate in the world for home satellite antennas. Table 4. Highest Penetration Rates, 2002* Country as % of Population Country as % of Population Internet users (estimated) Television receivers Iceland 61 Bermuda 108 Liechtenstein 58 Faroe Islands 102 Sweden 57 United Kingdom 97 Korea, Republic of 55 Sweden 96 Singapore 54 United States 93 United States 54 Norway 88 Netherlands 53 Qatar 87 Finland 51 Denmark 86 Norway 50 Latvia 85 New Zealand 48 Japan 78 Personal computers Cable television subscribers United States 62 Monaco 59 Denmark 58 Liechtenstein 40 30 Sweden 56 Netherlands 40 Korea, Republic of 56 Belgium 37 ICT Switzerland 54 Switzerland 37 of Luxembourg 51 Luxembourg 31 Australia 51 Germany 26 Norway 50 Virgin Islands (US) 26 Diffusion Singapore 50 United States 25 Bermuda 49 Canada 25 Global Main telephone lines in operation Home satellite antennas 2 Monaco 92 Faroe Islands 42 Bermuda 86 Kuwait 27 Chapter Luxembourg 77 Austria 19 Switzerland 73 Hungary 17 Norway 73 Germany 16 Sweden 72 Tunisia 16 Denmark 70 Denmark 15 United States 66 Slovenia 14 Germany 65 Sweden 12 Canada 64 Slovak Republic 12 Cellular mobile telephone subscribers Taiwan 106 Luxembourg 101 Israel 95 Hong Kong SAR 93 Italy 93 Iceland 89 Sweden 89 Czech Republic 85 Greece 85 Finland 85 Note: *or latest available data Source: Author's calculations based on data from the International Telecommunication Union, World Telecommunication Indicators Database, accessed July 2003 5. The least developed economies still have Table 5. Lowest Penetration Rates, 2002: Priority Countries* the poorest ICT penetration rates. Country Ratio (per population) Internet users (estimated) The economies that rank as having among the poorest Congo, DR 1 per 8,774 penetration rates are quite dispersed around the world, Myanmar 1 per 4,899 with the exception of North America (see Table 5). In the Liberia 1 per 3,238 Asia and the Pacific region, Myanmar and Cambodia are Tajikistan 1 per 1,822 most notable: Myanmar has dismal penetration rates in Ethiopia 1 per 1,347 terms of Internet users, personal computers, cellular mobile Central African Rep. 1 per 1,319 telephone subscribers, and television, and Cambodia also has Niger 1 per 979 Iraq 1 per 970 low penetration of main telephone lines, television receivers, Burundi 1 per 832 and personal computers. In the Middle East, Afghanistan has Sierra Leone 1 per 707 low penetration rates of main telephone lines and cellular Personal computers mobile telephones while Iraq has a low penetration rate of Niger 1 per 1,958 Internet users and cellular mobile telephones. In Europe, Burundi 1 per 1,398 Tajikistan is among the economies with the lowest Internet Myanmar 1 per 891 penetration while Turkmenistan is on the list of those with Malawi 1 per 803 the lowest penetration rate of cellular mobile telephones. Mali 1 per 759 In Latin America and the Caribbean, Haiti ranks among Cambodia 1 per 689 the economies with the world's lowest penetration rates Ethiopia 1 per 673 in television receivers while Cuba is among the economies Chad 1 per 656 with the poorest cellular mobile telephone penetration. In Burkina Faso 1 per 629 South Asia, Pakistan and Sri Lanka are among those with Benin 1 per 599 Main telephone lines in operation the lowest penetration rates of cable television, while Nepal Congo, DR 1 per 2,632 has among the lowest penetration rates for television and Afghanistan 1 per 705 cellular phones. Chad 1 per 665 Niger 1 per 542 Most of the economies that appear to have the lowest Liberia 1 per 476 31 penetration rates are from sub-Saharan Africa. It is notable Uganda 1 per 449 that with the exception of Kenya, the World Bank has rated Central African Rep. 1 per 444 ICT as severely indebted nearly all of the sub-Saharan African of Cambodia 1 per 412 countries in the list in Table 5. Rwanda 1 per 380 Burundi 1 per 316 Diffusion 6. Despite the dramatic increases in diffusion Cellular mobile telephone subscribers of ICT in the most populous countries, it is Niger 1 per 5,525 Global Myanmar 1 per 3,555 also in these very same countries where the 2 Afghanistan 1 per 1,941 greatest number of people can potentially still Liberia 1 per 1,619 be connected. Ethiopia 1 per 1,337 Chapter Iraq 1 per 1,212 Table 6 lists the 15 most populous countries in the world Nepal 1 per 1,060 and displays the numbers of people that are potentially still Cuba 1 per 632 a market for technologies. The reality is that universal access Turkmenistan 1 per 594 for individuals is unlikely to be a goal in these countries. In Papua New Guinea 1 per 511 many economies, and for many of these technologies, shared Television receivers access is not only the norm but is perhaps the optimal and Congo, DR 1 per 526 most pragmatic mode. Each country will have to ascertain its Chad 1 per 525 own optimal penetration level. Comoros 1 per 282 Malawi 1 per 261 With the two largest populations in the world, China and Ethiopia 1 per 182 India face the greatest challenges in ICT diffusion. Both Central African Rep. 1 per 174 China and India have a combined population of 2 billion Haiti 1 per 166 people who were not cellular mobile telephone subscribers Cambodia 1 per 135 as of 2002; of the same magnitude are the numbers of main Myanmar 1 per 134 telephone lines in operation, Internet users and personal Nepal 1 per 120 computers, and television receivers. Next to China and India, Note: *or latest available data Source: Author's calculations based on data from the International Telecommunication Union, World Telecommunication Indicators Database, accessed July 2003 Table 6. Potential Market for ICT Diffusion, 2002* Population Population Population Population Rank Population without less the Population without without cable according that are non- personal number of main without cellular television television to Internet users computers telephone lines phones receivers subscribers population Country (in millions) (in millions) (in millions) (in millions) (in millions) (in millions) 1 China 1,225 1,260 1,070 1,078 875 1,188 2 India 1,025 1,036 1,000 1,029 957 1,002 3 United States 133 110 98 148 21 215 4 Indonesia 204 210 204 200 180 212 5 Brazil 160 161 135 139 114 172 6 Pakistan 147 148 145 148 127 149 7 Russian Federation 141 134 111 129 68 135 8 Bangladesh 133 133 132 132 125 130 9 Japan 70 79 56 46 28 104 10 Nigeria 120 119 119 118 108 120 11 Mexico 97 95 87 76 74 99 12 Germany 48 47 29 23 34 61 13 Vietnam 80 80 78 79 66 n/a 14 Philippines 76 78 77 66 65 77 15 Ethiopia 67 67 67 67 67 n/a Note: *or latest available data Source: Author's calculations based on data from the International Telecommunication Union, World Telecommunication Indicators Database, accessed July 2003 significant proportions of the populations of Indonesia, certainly evident in the increases in the number of Internet 32 Pakistan, Brazil, and Bangladesh are still unconnected. users and cellular mobile telephone subscribers. Significantly, even the United States has considerable work ICT ahead. As of 2002, 147 million people in the country were With the exception of the Internet and personal computers, of not cellular mobile telephone subscribers and 133 million middle and low income economies posted larger increases people were not Internet users. than high income economies. In terms of the number of main telephone lines in operation, the increase in the Diffusion 7. The largest markets for ICT applications and number of lines in middle and low income economies was seven times higher than the increase in high income Global content are now a mixture of developed and 2 developing economies. economies. In the case of television receivers, the increase in middle and low income economies was twice the increase When assessing which among the economies in the world in high income economies. Even in terms of cellular mobile Chapter now have the largest number ICT users and devices, it is telephone subscribers, low and middle income economies significant to find that China, Republic of Korea, India, added 1.4 times the number added by high income Brazil, and Russia have risen to the top leagues of economies economies. with the largest ICT base. Table 7 depicts the top 10 economies in terms of the number of users for each ICT Other signs of a narrowing divide in ICT access are evident indicator, along with the proportion of the world market when examining how much the low and middle income represented by the country. Even for these economies, economies account for the overall global penetration of however, there remains the challenge of creating relevant ICT. Low and middle income economies are inhabited by 84 applications for the different markets. percent of world population. It is notable that as of 2002, this category accounted for 61 percent of all television receivers, 8. The "divide" in ICT access has narrowed, but 52 percent of all cable television subscribers, 48 percent of all low income economies still lag considerably, main telephone lines, 45 percent of cellular mobile telephone particularly in sub-Saharan Africa. subscribers, 30 percent of Internet users and home satellite Table 8 demonstrates that middle and low income economies antennas, and 22 percent of personal computers. These have posted faster growth rates than high income economies figures are particularly striking when compared to those of for most of the technologies included in this study. Faster 1999, when low and middle income economies accounted for growth rates for middle and low income economies are only 15 percent of the world's Internet users and 26 percent of cellular mobile telephone subscribers. Table 7. Largest Markets for ICT Applications and Content, 2002 (in millions) % of World total (in millions) % of World total Internet users (estimated) Personal computers United States 155 26 United States 178 35 China 59 10 Japan 49 9 Japan 57 9 Germany 36 6 Germany 35 6 Korea, Republic of 26 4 Korea 26 4 China 25 4 United Kingdom 24 4 United Kingdom 22 4 France 19 3 France 21 4 Italy 17 3 Canada 15 3 India 17 3 Italy 13 2 Canada 15 3 Brazil 13 2 Main telephone lines in operation Cellular mobile telephone subscribers China 214 15 China 207 12 United States 190 19 United States 141 15 Japan 71 8 Japan 81 9 Germany 54 5 Germany 59 7 India 41 3 Italy 52 6 Brazil 39 3 United Kingdom 50 6 Russian Federation 36 3 France 39 4 United Kingdom 35 4 Brazil 35 3 France 34 3 Spain 33 3 Italy 27 3 Korea, Republic of 32 4 Television receivers Cable television subscribers China 410 24 China 96 25 United States 267 14 United States 73 22 33 Japan 100 6 India 40 12 India 85 5 Japan 23 6 ICT Russian Federation 79 5 Germany 22 6 of Brazil 60 4 Russian Federation 11 4 United Kingdom 57 3 Korea, Republic of 8 3 Diffusion Germany 48 3 Canada 8 2 France 38 2 Netherlands 7 2 Global Indonesia 32 2 Argentina 6 2 2 Home satellite antennas United States 18 19 Germany 13 15 Chapter Japan 12 13 United Kingdom 7 6 Indonesia 4 5 Algeria 4 4 France 3 3 Italy 3 3 Poland 3 3 Canada 2 1 Source: Author's calculations based on data from the International Telecommunication Union, World Telecommunication Indicators Database, accessed July 2003 It is of great concern, however, that the low income Part II. Regional Profiles economies still lag considerably behind in terms of When the global picture is disaggregated into different penetration rates of their population. Of the 2.5 billion regions, the results present an interesting mix, as shown in total population of low income economies (41 percent of Table 9. Of all the regions, the United States and Canada the world's population), only 2 percent are cellular mobile combined ("North America") has the highest number of telephone subscribers, and only 1 percent are Internet users personal computers, equivalent to 35 percent of the world's and have access to cellular mobile telephones. Table 8. The "Divide"in ICT Diffusion (According to Income Level), 1999­2002* 1999 2002 1999­2002 Increase % of Total population (in millions) (in millions) (in percent) (in millions) 1999 2002 Internet users (estimated) High income 235 423 80 187 25 44 Upper middle income 16 51 213 34 3 10 Lower middle income 20 99 398 79 1 5 Low income 5 32 575 28 0 1 World 276 605 119 329 5 10 Personal computers High income 321 429 34 108 34 45 Upper middle income 25 43 75 19 5 9 Lower middle income 38 63 64 25 2 3 Low income 10 15 56 5 0 1 World 394 550 40 156 7 9 Main telephone lines in operation High income 542 567 4 23 58 59 Upper middle income 85 107 25 22 17 21 Lower middle income 221 345 57 125 10 16 Low income 58 80 38 22 2 3 World 906 1,098 21 192 15 18 Cellular mobile telephone subscribers High income 363 637 76 274 39 66 34 Upper middle income 49 138 181 89 10 27 Lower middle income 73 335 357 262 3 15 ICT Low income 7 44 532 37 0 2 of World 493 1,155 134 662 8 19 Television receivers Diffusion High income 629 695 11 66 66 71 Global Upper middle income 154 167 9 14 31 33 2 Lower middle income 583 663 14 80 27 30 Low income 207 250 21 43 9 10 Chapter World 1,573 1,775 13 202 26 29 Cable television subscribers High income 153 172 12 19 16 18 Upper middle income 19 21 11 2 4 4 Lower middle income 79 119 50 39 4 5 Low income 37 47 8 3 2 2 World 288 359 22 64 5 6 Home satellite antennas High income 57 68 18 10 6 7 Upper middle income 9 12 29 3 2 2 Lower middle income 8 13 42 3 0 1 Low income 4 5 12 0 0 0 World 78 97 22 17 1 2 Note: *or latest available data Source: Author's calculations based on data from the International Telecommunication Union, World Telecommunication Indicators Database, accessed July 2003 Table 9. The "Divide"in ICT Diffusion (Geographic Perspective), 1999­2002* 1999 2002 1999­2002 Increase % of Total population (in millions) (in millions) (in percent) (in millions) 1999 2002 Internet users (estimated) Asia and the Pacific 67.1 192.5 187 125.5 3 9 Canada and the United States 113.0 170.2 51 57.2 37 53 Europe 77.6 168.5 117 90.8 9 19 Latin America and the Caribbean 10.5 36.2 245 26.2 2 7 North Africa and the Middle East 2.6 12.8 383 9.6 1 4 South Asia 3.0 18.6 512 15.5 0 1 Sub-Saharan Africa 2.3 6.0 156 3.6 0 1 World 276.2 604.8 119 328.5 5 10 Personal computers Asia and the Pacific 90.3 137.3 52 47.0 4 7 Canada and the United States 152.1 193.3 27 41.2 49 60 Europe 114.7 159.4 39 44.7 13 18 Latin America and the Caribbean 19.1 32.6 71 13.5 4 6 North Africa and the Middle East 8.7 13.6 51 4.4 3 4 South Asia 4.2 7.4 77 3.2 0 1 Sub-Saharan Africa 4.7 6.8 42 2.0 1 1 World 393.9 550.5 40 156.1 7 9 Main telephone lines in operation Asia and the Pacific 251.7 368.0 46 116.3 12 18 Canada and the United States 203.6 210.0 3 6.4 66 66 Europe 314.3 334.5 6 20.2 36 38 Latin America and the Caribbean 67.4 89.4 33 22.1 13 17 North Africa and the Middle East 29.0 38.9 34 9.9 10 12 South Asia 30.9 47.1 52 16.2 2 3 Sub-Saharan Africa 9.2 10.2 11 1.0 1 2 Cellular mobile telephone subscribers World 492.7 1,154.8 134 662.1 8 19 Asia and the Pacific 160.0 423.7 165 263.6 8 20 Canada and the United States 93.0 152.6 64 59.7 30 48 35 Europe 182.2 404.9 122 222.7 21 46 Latin America and the Caribbean 40.9 101.5 148 60.6 8 19 ICT North Africa and the Middle East 7.6 33.4 340 25.8 3 10 of South Asia 2.6 16.0 520 13.4 0 1 Sub-Saharan Africa 6.5 22.8 253 16.3 1 3 World 906.1 1,098.0 21 191.9 15 18 Diffusion Television receivers Asia and the Pacific 583.5 648.5 11 65.0 29 31 Canada and the United States 253.3 288.5 14 35.2 82 90 Global Europe 414.5 460.8 11 46.3 48 53 2 Latin America and the Caribbean 136.5 150.1 10 13.5 27 28 North Africa and the Middle East 57.6 63.0 8 4.9 19 20 South Asia 98.1 117.0 19 18.9 7 8 Chapter Sub-Saharan Africa 29.4 47.3 61 17.9 5 7 World 1,572.8 1,775.1 13 201.8 26 29 Cable television subscribers Asia and the Pacific 91.8 139.0 51 47.1 5 7 Canada and the United States 76.6 81.0 6 4.4 25 25 Europe 67.9 78.4 10 6.9 8 9 Latin America and the Caribbean 13.3 15.5 14 1.9 3 3 North Africa and the Middle East 1.3 1.4 12 0.1 0 0 South Asia 37.1 43.7 8 3.0 3 3 Sub-Saharan Africa 0.1 0.2 38 0.1 0 0 World 288.1 359.2 22 63.6 5 6 Home satellite antennas Asia and the Pacific 19.5 17.5 -11 -2.1 1 1 Canada and the United States 13.7 20.1 47 6.4 4 6 Europe 33.8 43.6 26 8.7 4 5 Latin America and the Caribbean 1.6 2.7 62 1.0 0 1 North Africa and the Middle East 8.9 11.9 29 2.6 3 4 South Asia 0.0 0.0 177 0.0 0 0 Sub-Saharan Africa 0.4 1.2 83 0.3 0 0 World 77.9 96.8 22 16.8 1 2 Note: *or latest available data Source: Author's calculations based on data from the International Telecommunication Union, World Telecommunication Indicators Database, accessed July 2003 Table 10. Regional Profiles in ICT Diffusion, 1999­2002* 1999 2002 1999­2002 Increase % of Total population (in millions) (in millions) (in percent) (in millions) 1999 2002 Asia Population 2,031.7 2,080.3 2 48.6 Internet users (estimated) 67.1 192.5 187 125.5 3 9 Personal computers 90.3 137.3 52 47.0 4 7 Main telephone lines in operation 251.7 368.0 46 116.3 12 18 Cellular mobile telephone subscribers 160.0 423.7 165 263.6 8 20 Television receivers 583.5 648.5 11 65.0 29 31 Cable television receivers 91.8 139.0 51 47.1 5 7 Home satellite antennas 17.1 17.5 2 0.4 1 1 Europe Population 868.1 874.0 1 5.8 Internet users (estimated) 77.6 168.5 117 90.9 9 19 Personal computers 114.7 159.4 39 44.7 13 18 Main telephone lines in operation 314.3 334.5 6 20.2 36 38 Cellular mobile telephone subscribers 182.2 404.9 122 222.7 21 46 Television receivers 414.5 460.8 11 46.3 48 53 Cable television receivers 67.9 78.4 15 10.4 8 9 Home satellite antennas 33.8 43.6 29 9.7 4 5 Latin America Population 509.8 530.8 4 21.0 Internet users (estimated) 10.5 36.2 245 25.7 2 7 Personal computers 19.1 32.6 71 13.5 4 6 Main telephone lines in operation 67.4 89.4 33 22.1 13 17 Cellular mobile telephone subscribers 40.9 101.5 148 60.6 8 19 Television receivers 136.5 150.1 10 13.5 27 28 36 Cable television receivers 13.3 15.5 17 2.2 3 3 Home satellite antennas 1.6 2.7 66 1.1 0 1 ICT of North Africa and the Middle East Population 300.9 320.3 6 19.4 Internet users (estimated) 2.6 12.8 388 10.2 1 4 Diffusion Personal computers 8.7 13.6 56 4.9 3 4 Main telephone lines in operation 29.0 38.9 34 9.9 10 12 Cellular mobile telephone subscribers 7.6 33.4 340 25.8 3 10 Global 2 Television receivers 57.6 63.0 9 5.4 19 20 Cable television receivers 1.3 1.4 12 0.1 0 0 Home satellite antennas 8.9 11.9 34 3.0 3 4 Chapter South Asia Population 1,322.9 1,390.2 5 67.3 Internet users (estimated) 3.0 18.6 512 15.5 0 1 Personal computers 4.2 7.4 77 3.2 0 0 Main telephone lines in operation 30.9 47.1 52 16.2 2 2 Cellular mobile telephone subscribers 2.6 16.0 520 13.4 0 1 Television receivers 98.1 117.0 19 18.9 5 6 Cable television receivers 37.1 43.7 18 6.6 2 2 Home satellite antennas 0.0 0.0 192 0.0 0 0 Sub-Saharan Africa Population 621.5 676.2 9 54.7 Internet users (estimated) 2.3 6.0 156 3.6 0 1 Personal computers 4.7 6.8 43 2.0 1 1 Main telephone lines in operation 9.2 10.2 11 1.0 1 2 Cellular mobile telephone subscribers 6.5 22.8 253 16.3 1 3 Television receivers 29.4 47.3 61 17.9 5 7 Cable television receivers 0.1 0.2 38 0.1 0 0 Home satellite antennas 0.4 1.2 228 0.8 0 0 Note: *or latest available data Source: Author's calculations based on data from the International Telecommunication Union, World Telecommunication Indicators Database, accessed July 2003 personal computers. In 1999, North America also had Cellular mobile telephone penetration is lower at 48 percent the highest number of Internet users and cellular mobile but the growth rate in the diffusion of this device has been telephone subscribers but by 2002, this was no longer the much higher. In the last three years, the number of cellular case. By 2002, because of dynamic growth in overall ICT mobile telephone subscribers increased by 64 percent, or 59.7 diffusion, the Asia-Pacific region had the highest number million. As of 2002, Canada and the United States had 153 not only of Internet users and cellular mobile telephone million cellular mobile telephone subscribers, a figure that subscribers but also of main telephone lines, television exceeds the number of cellular mobile telephone subscribers receivers, and cable television subscribers. Europe takes the in Latin America and the Caribbean. lead in terms of the number of home satellite antennas. These three regions--North America, Asia and the Pacific, Despite an already high television penetration rate at 82 and Europe--account for at least 60 percent of the global percent of its individual population as of 1999, Canada and penetration for each device. the United States added a combined 35.2 million television receivers in the three-year period, a 14 percent increase. As In terms of penetration rates, Europe is a distant second of 2002, these two economies had a total of 288.5 television to North America with the exception of cellular mobile receivers, significantly more than 3.5 times the number of telephone subscribers where Europe, with a 46 percent cable television subscribers, and 14.4 times the number of rate, nearly matches North America's 48 percent rate. The home satellite antennas. In the last three years, cable television Asia and the Pacific region, despite its dynamism, actually subscribers increased by 4.4 million, a relatively lackluster has a penetration rate below the world average in terms of growth of 6 percent when compared to the growth of home numbers of Internet users and personal computers. The satellite antennas which increased by 47 percent or 6.4 million. remaining regions, Latin America and the Caribbean, North Africa and the Middle East, South Asia, and sub-Saharan Europe Africa, have single digit penetration rates for both Internet Looking at the 52 economies of the region with a combined users and personal computers. A particularly distressing population of 874 million, Europe, as of 2002, had 461 figure is the main telephone line penetration rate in sub- million television receivers, 405 million cellular mobile Saharan Africa, which barely improved since 1999 and telephone subscribers, 335 million main telephone lines, and remains low at 2 percent of its total population and 8 percent 168 million Internet users (see Table 10). In addition, the of total households. region had 159 million personal computers, 78 million cable 37 television subscribers, and 44 million home satellite antennas. North America--Canada and the United States ICT of Canada and the United States, with a combined population of Over the last three years, the most dramatic growth rates 320 million people, have an estimated 170.2 million Internet in the region are the number of cellular mobile telephone users. This is equivalent to a 53 percent penetration rate of subscribers, up 122 percent, and the number of Internet Diffusion the population and 28 percent of the world's Internet users. users, up 117 percent. Diffusion of other devices was more About a third of the estimated number of Internet users moderate, with growth of television receivers at 11 percent Global 2 were added in the last three years alone, when the number of and main telephone lines at 6 percent over the three-year Internet users in the region increased by 57.2 million, a 51 period. The relatively mild growth in the diffusion of these percent increase. two technologies is largely because of the fairly high 1999 Chapter penetration rates: television receivers at 48 percent of total Compared to the growth in the number of Internet users, population and main telephone lines at 36 percent of the the growth in personal computers was slower although population. these two economies combined still have the largest number compared to any other region in the world. As of 2002, these In Europe, Germany, as of 2002, had the largest number two economies together had 193 million personal computers, of Internet users and personal computers, as well as main of which 41.2 million were added in the last three years, telephone lines, cellular mobile telephone subscribers, cable equivalent to a 27 percent increase. The current individual television subscribers, and home satellite antennas. Over the penetration rate is 60 percent. last three years, Germany also posted the largest increases in nearly all the devices under study except for television With already high penetration rates in the number of main receivers and home satellite antennas. In actual numbers, telephone lines in operation, the United States and Canada Germany added nearly 18 million new Internet users, an posted a 3 percent increase in the number of telephone increase of 105 percent and nearly 12 million personal lines, adding 6.4 million lines in the last three years. By 2002, computers, a growth of 47 percent. During the same period, the number of main telephone lines reached 210 million, the country added 5.5 million main telephone lines and equivalent to a 66 percent individual penetration rate. nearly six times that number, or 36 million, new cellular mobile telephone subscribers, equivalent to a 152 percent Table 11. Regional Highlights: Leading Countries in Growth and Penetration, Europe Change (units), 1999­2002 Change (%), 1999­2002 Penetration rate (% of Population), 2002 Internet users (estimated) 1 Germany 17,900,000 1 Azerbaijan 3,650 1 Iceland 61 2 France 13,346,000 2 Uzbekistan 3,567 2 Liechtenstein 58 3 United Kingdom 11,500,000 3 Belarus 1,517 3 Sweden 57 4 Italy 8,800,000 4 Kyrgyzstan 1,420 4 Netherlands 53 5 Spain 5,026,000 5 Bosnia and Herzegovina 1,329 5 Finland 51 6 Russian Federation 4,500,000 6 Serbia 700 6 Norway 50 7 Turkey 3,400,000 7 Lithuania 385 7 Denmark 47 8 Netherlands 2,390,000 8 Russian Federation 300 8 Monaco 46 9 Portugal 2,200,000 9 Albania 300 9 Germany 42 10 Belgium 2,000,000 10 Turkmenistan 300 10 Estonia 41 Personal computers 1 Germany 11,520,940 1 Croatia 153 1 Denmark 58 2 Russian Federation 7,500,000 2 Russian Federation 136 2 Sweden 56 3 France 5,020,000 3 Latvia 100 3 Switzerland 54 4 Italy 4,025,000 4 Moldova 100 4 Luxembourg 51 5 United Kingdom 4,000,000 5 Bulgaria 84 5 Norway 50 6 Spain 2,000,000 6 Armenia 75 6 Iceland 45 7 Netherlands 1,200,000 7 Lithuania 73 7 Finland 44 8 Sweden 1,000,000 8 Slovak Republic 64 8 Germany 43 9 Austria 913,000 9 Georgia 56 9 Netherlands 43 10 Poland 900,000 10 Albania 50 10 Ireland 38 Main telephone lines in operation 1 Germany 5,510,000 1 Albania 57 1 Monaco 92 2 Russian Federation 4,551,000 2 Azerbaijan 36 2 Luxembourg 77 3 Spain 2,225,170 3 Bosnia and Herzegovina 33 3 Switzerland 73 4 Poland 1,224,800 4 Kazakhstan 18 4 Norway 73 38 5 United Kingdom 1,124,000 5 Moldova 15 5 Sweden 72 6 Italy 949,950 6 Croatia 15 6 Denmark 70 ICT of 7 Turkey 860,810 7 Russian Federation 15 7 Germany 65 8 Ukraine 595,600 8 Macedonia, FYR 14 8 Iceland 63 9 Netherlands 387,000 9 Ireland 14 9 Netherlands 62 Diffusion 10 Romania 376,000 10 Spain 14 10 Cyprus 61 Cellular mobile telephone subscribers 1 Germany 35,754,000 1 Albania 7,167 1 Luxembourg 101 Global 2 2 United Kingdom 22,736,000 2 Tajikistan 2,012 2 Italy 93 3 Italy 22,020,000 3 Kazakhstan 1,975 3 Iceland 89 4 Spain 18,471,290 4 Kyrgyzstan 1,962 4 Sweden 89 Chapter 5 France 17,151,800 5 Belarus 1,883 5 Czech Republic 85 6 Russian Federation 16,297,500 6 Bosnia and Herzegovina 1,323 6 Greece 85 7 Turkey 15,252,843 7 Russian Federation 1,189 7 Finland 85 8 Poland 10,043,500 8 Moldova 1,150 8 United Kingdom 84 9 Czech Republic 6,665,624 9 Ukraine 927 9 Norway 84 10 Greece 5,410,260 10 Croatia 672 10 Slovenia 84 Television receivers 1 Turkey 12,725,620 1 Albania 115 1 Faroe Islands 102 2 United Kingdom 7,400,000 2 Turkey 81 2 United Kingdom 97 3 Russian Federation 5,000,000 3 Sweden 76 3 Sweden 96 4 Sweden 3,700,000 4 Georgia 74 4 Norway 88 5 Netherlands 2,000,000 5 Kazakhstan 39 5 Denmark 86 6 Kazakhstan 1,540,110 6 Norway 38 6 Latvia 85 7 Romania 1,500,000 7 Azerbaijan 36 7 Monaco 76 8 Poland 1,298,000 8 Netherlands 24 8 Finland 68 9 Norway 1,100,000 9 Romania 21 9 Luxembourg 66 10 France 1,000,000 10 Austria 21 10 Netherlands 65 Note: *or latest available data Source: Author's calculations based on data from the International Telecommunication Union, World Telecommunication Indicators Database, accessed July 2003 growth. Germany also added 3.2 million cable television telephone subscribers, at least 27 economies in the region subscribers and 1.3 million home satellite antennas during have a penetration rate greater than 50 percent; Luxembourg, the three-year period. Italy, Iceland, Sweden, and the Czech Republic have the highest penetration rates in the region. For television The United Kingdom is second in Europe in the number of receivers, 24 economies in the region have over 50 percent Internet users, personal computers, television receivers, and penetration, led by the Faroe Islands, the United Kingdom, home satellite antennas. It is the third in the region in the Sweden, and Norway; among the middle income economies number of main telephone lines in operation and cellular in this list are Latvia, Malta, the Czech Republic, Russia, and mobile telephone subscribers, and fourth in the region in Estonia. For cable television, only Monaco has more than terms of cable television subscribers. Over the last three 50 percent penetration; the other leading economies in this years, the United Kingdom has added nearly 12 million regard are Liechtenstein, the Netherlands, Belgium, and Internet users, 4 million personal computers, 1 million Switzerland. For home satellite antennas, Faroe Island has main telephone lines, 23 million cellular mobile telephone the highest penetration rate at 42 percent of its population, subscribers, more than 7 million television receivers, 760,000 followed by Austria at 19 percent penetration, Hungary at 17 cable television subscribers, and nearly 1.8 million home percent, and Germany at 16 percent. satellite antennas. As of 2002, there were 20 economies in the region that had France is third in the region in the number of Internet users, Internet penetration rates lower than 10 percent, which personal computers, and home satellite antennas while is the world average. The three raising the most concern ranking fourth in the region in terms of main telephone are Tajikistan, where 1 person in every 1,822 is an Internet lines in operation, cellular mobile telephone subscribers, and user; Turkmenistan, which has a ratio of 1 user for every television receivers. In the three-year period, France added 606 persons; and Albania, which has a ratio of 1 Internet more than 13 million Internet users, a growth of nearly five user for every 403 persons. In terms of personal computers, times the 1999 figure, bringing the total number of Internet data were missing for 12 economies in the region, but users in the country to more than 18.7 million. among those that had available data, Albania had the lowest penetration rate with 1 computer for every 134 persons, In the region, Italy has the fourth largest number of Internet and Armenia followed with 1 personal computer for every users and personal computers, at 17 million and 13 million, 109 persons. In terms of main telephone lines, only five 39 respectively. Italy is fifth in the region in terms of the number economies in the region had less than 10 percent penetration of main telephone lines but is second in the number of ICT rate: Turkmenistan, Kyrgyzstan, Uzbekistan, Albania, and cellular mobile telephone subscribers. Italy is sixth in the of Tajikistan. The last in the list, Tajikistan, had a 4 percent number of television receivers and fourth in home satellite penetration rate. For cellular mobile telephone subscribers, antennas. In the last three years, Italy has added 8.8 million nine economies in the region had a less than 10 percent Diffusion Internet users, 4 million personal computers and, notably, 22 penetration rate; Turkmenistan and Tajikistan have among million cellular mobile telephone subscribers. the lowest penetration rates, both with less than 1 percent. Global 2 Russia stands out in Europe as having the largest number of In terms of television penetration, only one country in the television receivers and the second largest number of main region has less than a 10 percent penetration--Kyrgyzstan, telephone lines and cable television subscribers in the region. with a 5 percent rate. Chapter Russia has also demonstrated tremendous increases over One of the economies in the region with among the lowest the last three years: a 300 percent increase in the number penetration rates but that has made considerable progress of Internet users, 136 percent increase in the number of over the last three years is Albania. Between 1999 and 2002, personal computers and, notably, a 1,189 percent increase in Albania increased its number of Internet users by 300 the number of cellular mobile telephone subscribers. percent, personal computers by 50 percent, main telephone In terms of population penetration rates, six economies in lines by 57 percent, television receivers by 115 percent and, the region have over 50 percent of their population using the notably, the number of cellular mobile telephone subscribers Internet: Iceland, Liechtenstein, Sweden, the Netherlands, by 7,167 percent. Finland, and Norway, in descending order. For personal computers, five economies have over 50 percent penetration Asia and the Pacific rates: Denmark, Sweden, Switzerland, Luxembourg, and Asia and the Pacific, a region comprising 33 economies, has Norway, also in descending order. Regarding main telephone a combined population of 2.1 billion, of which 193 million, line penetration rates, 19 economies have over 50 percent or 9 percent, are Internet users and 137 million, or 7 percent, penetration rates; in the lead are Monaco, Luxembourg, have personal computers (see Table 10). There are more Switzerland, Norway, and Sweden. In terms of cellular mobile cellular mobile telephone subscribers in the region than there are main telephone lines: about 424 million cellular mobile telephone subscribers compared to 368 million numbers of personal computers and home satellite antennas main telephone lines. In terms of television, the region has but fifth in numbers of Internet users and main telephone 648 million television receivers, 139 million cable television lines. Indonesia is third in the region for numbers of subscribers, and 17 million home satellite antennas. television receivers and second for home satellite antennas, and Thailand is fourth in the region in terms of television Over the period 1999­2002, the number of Internet users receivers and fifth in terms of cellular mobile telephone in the region surged by 187 percent while the number of subscribers and home satellite antennas. Malaysia is third in cellular mobile telephone subscribers jumped by 165 percent. numbers of home satellite antennas while the Philippines is The growth in cellular mobile telephone subscribers has fifth in the region in terms of the number of cable television increased the penetration rate from 8 percent to 20 percent subscribers. in three years, the latter rate being higher than the main line penetration rate of 18 percent. Slowest growth rates in In terms of Internet users, two economies in the region the region were in television receivers, up 11 percent, and have greater than 50 percent penetration rates: Republic of home satellite antennas, which only increased by 2 percent. Korea and Singapore. These two economies are followed Television, however, is the most pervasive device in the by New Zealand, Japan, Hong Kong, and Australia, all of region, with a 31 percent penetration rate. which have penetration rates higher than 40 percent. For personal computers, three economies, Republic of Korea, In terms of actual numbers, China leads the region in Australia, and Singapore have penetration rates above 50 Internet users, main telephone lines, cellular mobile percent, followed by Taiwan at a 40 percent penetration rate. telephone subscribers, television receivers, and cable In terms of main telephone line penetration, Taiwan, Hong television subscribers. China also leads the region in terms of Kong, Japan, Australia, and Guam have the highest rates, growth rates in many of these technologies. In the 1999­2002 all exceeding 50 percent. Similarly, Taiwan also leads in the period, China increased its number of main telephone lines region in terms of cellular mobile telephone penetration, by 97 percent, cellular mobile telephone subscribers by 377 but this time followed by Hong Kong, Singapore, and percent, and the number of Internet users by 564 percent. Republic of Korea. Significantly, 9 out of 33 economies in Overall penetration rates, however, still have much room for the region have cellular mobile telephone penetration rates improvement: main telephone and cellular mobile telephone greater than 60 percent. Television penetration rates are also 40 penetration rates are below 20 percent while Internet user significantly high in the region, with Japan at 78 percent, and personal computer penetration rates are in the low Australia at 72 percent, Guam at 71 percent and Brunei at ICT single digits. of 61 percent. For cable television, Taiwan, followed by Guam and Japan, has the highest penetration rates while for home Japan leads the region in the number of personal computers satellite antennas, Japan leads, followed by New Zealand. and home satellite antennas. It is second to China in the Diffusion number of Internet users, the number of main telephone As of 2002, 19 of the 33 economies have Internet lines in operation, cellular mobile telephone subscribers, Global penetration rates below 10 percent, including China, 2 television receivers and cable television subscribers. Despite Indonesia, the Philippines, Thailand, and Vietnam. Of the relatively high levels of penetration, Japan continued to post 19 economies with single-digit Internet penetration rates, significant increases. Over the period 1999­2002, Japan added Chapter four have penetration rates below 1 percent: Solomon 30 million new Internet users, 12 million personal computers, Islands, Laos, Cambodia, and Myanmar (there is no figure 24 million cellular mobile telephone subscribers, 9 million for the Democratic People's Republic of Korea). The latter television receivers, and more than 5 million cable television three economies also have personal computer penetration subscribers. In terms of penetration rates, Japan leads the rates below 1 percent. In terms of main telephone line region in television receivers and home satellite antennas. penetration, 15 economies have a less than 10 percent penetration rate, with Cambodia having the lowest rate In actual numbers, as of 2002, the Republic of Korea is of less than 1 percent. For cellular mobile telephone second in the region in terms of personal computers, with penetration rates, 13 economies have less than a 10 percent more than 26 million units. The country is third in the penetration rate (data are missing for two economies). region in the number of Internet users, the number of main Television penetration rates tend to be higher, with 11 telephone lines, cellular mobile telephone subscribers, and economies having penetration rates of less than 10 percent. cable television subscribers. Of concern is Myanmar, which ranks among those with Next to China, Japan, and the Republic of Korea is Taiwan, the lowest penetration rates in the region across various which is fourth in terms of total number of Internet users, indicators. The country has 1 television for every 134 main telephone lines, cellular mobile telephone subscribers persons, 1 main telephone line for every 166 persons, 1 and cable television subscribers, and fifth in the penetration personal computer for every 891 persons, 1 cellular mobile of personal computers. Australia is fourth in terms of Table 12. Regional Highlights: Leading Countries in Growth and Penetration, Asia and the Pacific Change (units), 1999­2002 Change (%), 1999­2002 Penetration rate (% of Population), 2002 Internet users (estimated) 1 China 50,200,000 1 Myanmar 1,900 1 Korea, Republic of 55 2 Japan 30,140,000 2 Reunion 1,400 2 Singapore 54 3 Korea, Republic of 15,410,000 3 Vietnam 1,400 3 New Zealand 48 4 Indonesia 7,100,000 4 Indonesia 789 4 Japan 45 5 Malaysia 4,700,000 5 Samoa 700 5 Hong Kong SAR 43 6 Taiwan 3,790,000 6 Lao, PDR 650 6 Australia 43 7 Thailand 3,500,000 7 Cambodia 650 7 Taiwan 38 8 Australia 2,800,000 8 Vanuatu 600 8 Malaysia 31 9 Philippines 2,410,000 9 China 564 9 Guam 30 10 Hong Kong SAR 1,518,800 10 French Polynesia 338 10 Macau 26 Personal computers 1 Korea, Republic of 14,928,000 1 Korea, Republic of 129 1 Korea, Republic of 56 2 Japan 12,400,000 2 Mongolia 108 2 Australia 51 3 China 9,500,000 3 Malaysia 100 3 Singapore 50 4 Taiwan 2,226,100 4 Marshall Islands 100 4 Taiwan 40 5 Australia 2,000,000 5 Thailand 78 5 Hong Kong SAR 38 6 Malaysia 1,800,000 6 Philippines 75 6 Japan 38 7 Thailand 1,079,000 7 China 61 7 New Zealand 38 8 Philippines 940,000 8 Vietnam 60 8 French Polynesia 28 9 Hong Kong SAR 600,000 9 Cambodia 54 9 Macau 21 10 Singapore 400,000 10 Macau 53 10 Malaysia 15 Main telephone lines in operation 1 China 105,704,200 1 China 97 1 Taiwan 58 2 Korea, Republic of 2,738,910 2 Lao, PDR 76 2 Hong Kong SAR 57 3 Indonesia 1,669,842 3 Vietnam 74 3 Japan 56 4 Vietnam 1,558,861 4 Indonesia 27 4 Australia 54 41 5 Thailand 1,284,206 5 Thailand 25 5 Guam 50 6 Taiwan 1,055,660 6 Mongolia 24 6 Korea, Republic of 49 ICT of 7 Australia 830,000 7 Tonga 23 7 Singapore 46 8 Japan 619,000 8 Cambodia 21 8 New Zealand 45 9 Philippines 446,491 9 Samoa 21 9 Reunion 40 Diffusion 10 Malaysia 239,201 10 Vanuatu 20 10 Macau 40 Cellular mobile telephone subscribers Global 1 China 163,324,000 1 Tonga 2,296 1 Taiwan 106 2 2 Japan 24,272,410 2 Vanuatu 1,533 2 Hong Kong SAR 93 3 Thailand 13,777,599 3 Thailand 589 3 Singapore 79 4 Taiwan 12,364,270 4 Mongolia 525 4 Korea, Republic of 68 Chapter 5 Philippines 11,366,250 5 Vietnam 479 5 Reunion 66 6 Indonesia 9,479,031 6 Indonesia 427 6 Australia 64 7 Korea, Republic of 8,899,280 7 Philippines 399 7 Japan 64 8 Australia 6,264,000 8 China 377 8 Macau 63 9 Malaysia 6,255,000 9 Lao, PDR 357 9 New Zealand 62 10 Hong Kong SAR 2,022,493 10 Reunion 341 10 Brunei Darussalam 39 Television receivers 1 China 40,000,000 1 Dem. People's Rep. of Korea 195 1 Japan 78 2 Japan 9,000,000 2 Papua New Guinea 83 2 Australia 72 3 Philippines 6,300,000 3 Philippines 77 3 Guam 71 4 Dem. People's Rep. of Korea 2,535,000 4 Solomon Islands 71 4 Brunei Darussalam 61 5 Indonesia 2,000,000 5 Kiribati 35 5 New Zealand 54 6 Thailand 1,700,000 6 Tonga 27 6 Hong Kong SAR 50 7 Australia 768,000 7 Malaysia 13 7 New Caledonia 50 8 Taiwan 760,000 8 Myanmar 13 8 Taiwan 44 9 Vietnam 609,000 9 China 11 9 Korea, Republic of 36 10 Malaysia 555,000 10 Thailand 10 10 China 32 Source: Author's calculations based on data from the International Telecommunication Union, World Telecommunication Indicators Database, accessed July 2003 telephone subscriber in every 3,555 persons, and 1 Internet Honduras, Paraguay, Nicaragua, and Haiti have among the user in every 4,899 persons. lowest main telephone penetration rates. For cellular mobile telephones, three economies have penetration rates above 50 Latin America and the Caribbean percent--Martinique, Guadeloupe, and Jamaica--while seven Of the 531 million people in the 38 economies in the Latin economies have penetration rates below 10 percent. Honduras, America and the Caribbean region, 36 million (7 percent of the Nicaragua, Haiti, and Cuba have among the lowest cellular population) are Internet users and a slightly lower figure, 33 mobile telephone penetration rates. In terms of television million (6 percent of the population), have personal computers receivers, five economies in the region, including Chile and (see Table 10). As in Europe and Asia, the region has more Uruguay, have penetration rates above 50 percent, and only cellular mobile telephone subscribers (102 million) than the two economies have penetration rates below 10 percent. number of main telephone lines (89 million). The region has Of the economies in the region, Cuba has one of the lowest 150 million television receivers, 15 million cable television penetration rates for some indicators. The country has a 1 subscribers, and 2.7 million home satellite antennas. percent Internet penetration rate, with 1 Internet user in From 1999­2002, the region has experienced a 245 percent every 94 persons. In terms of telephone lines, Cuba has a 5 increase in the number of Internet users and a 148 percent percent penetration rate, with 1 main telephone line for every increase in the number of cellular mobile telephone 20 persons. Perhaps the most striking statistic is the number subscribers. Personal computers grew by 71 percent while of cellular mobile telephone subscribers, which, at 17,851, is home satellite antennas increased by 66 percent. Growth equivalent to 1 subscriber in every 632 persons. of television receivers was relatively mild at 10 percent, and brought the television penetration rate to 28 percent South Asia of total population. The region's cellular mobile telephone South Asia, a region of eight economies and a combined penetration rate of 19 percent exceeds the main telephone population of 1.4 billion, has 18.6 million Internet users and line penetration rate of 17 percent. Internet and personal 7.4 million personal computers (see Table 10). The region has computer penetration in the region, at 7 percent and 6 47 million main telephone lines and 16 million cellular mobile percent respectively, is below the world average of 10 percent telephone subscribers. Television receivers are more prevalent and 9 percent, respectively. than any other device--there are 117 million television 42 receivers in the region and 44 million cable television In terms of actual numbers, Brazil leads the region in subscribers but less than 4,000 home satellite antennas. ICT the number of Internet users, personal computers, main of telephone lines in operation, cellular mobile telephone In the last three years, the region added nearly 19 million subscribers, television receivers, and home satellite antennas. television receivers and more than 16 million main telephone Diffusion Brazil is succeeded by Mexico, which holds the second lines. In the same period there were 15 million new Internet highest number for all the indicators. Argentina is first for users, a growth of 512 percent. The region also increased Global the number of cable television subscribers and third for the number of cellular mobile telephone subscribers by 13.4 2 Internet users, personal computers, main telephone lines, million, equivalent to a growth of 520 percent, and added 3.2 cellular mobile telephones, and home satellite antennas. Chile million personal computers and 6.6 million cable television Chapter is fourth in the number of Internet users and home satellite subscribers during the three-year period. antennas, and fifth for numbers of personal computers, main telephone lines, cellular mobile telephone subscribers, Overall, regional penetration rates have been quite low, the television receivers, and cable television subscribers. highest being the television penetration rate at 6 percent of Colombia is fourth in terms of personal computers and total population. Penetration rates of main telephone lines number of main telephone lines in operation and fifth in and cable television subscribers are in the 2 percent range, terms of numbers of home satellite antennas. Venezuela is while the region's cellular mobile telephone penetration is at fourth in numbers of cellular mobile telephone subscribers 1 percent. The penetration rate of personal computers is less and cable television subscribers. than 1 percent. For both Internet users and personal computers, no economy As the largest economy in the region in terms of weight in the region has a penetration rate higher than 50 percent. and population, India also has the highest numbers for Twenty-seven economies in the region, including Brazil, the various devices and user indicators. The scale in which Mexico, Colombia, Venezuela, and Peru have less than a 10 India has been improving in the last three years is quite percent penetration rate for Internet and personal computers. remarkable--the country added nearly 15 million main In terms of main telephone lines, the region has two telephone lines, nearly 14 million Internet users, 10.8 million economies, Bermuda and the Virgin Islands, with penetration cellular mobile telephone subscribers, 10 million television rates above 50 percent, while nine economies have main receivers, 3 million cable television subscribers, and 2.7 telephone line penetration rates below 10 percent. Cuba, million personal computers. Table 13. Regional Highlights: Leading Countries in Growth and Penetration, Latin America and the Caribbean Change (units), 1999­2002 Change (%), 1999­2002 Penetration rate (% of Population), 2002 Internet users (estimated) 1 Brazil 10,800,000 1 Haiti 1,233 1 Bermuda 46 2 Chile 2,950,000 2 Martinique 700 2 Chile 24 3 Argentina 2,900,000 3 Dominica 525 3 Aruba 22 4 Mexico 2,841,166 4 Guatemala 515 4 Dominica 16 5 Peru 1,500,000 5 Aruba 500 5 Puerto Rico 16 6 Colombia 1,318,000 6 El Salvador 500 6 Virgin Islands (US) 15 7 Venezuela 594,429 7 Chile 472 7 Uruguay 12 8 Ecuador 403,315 8 Honduras 471 8 Argentina 11 9 Puerto Rico 400,000 9 Ecuador 403 9 Guyana 11 10 Guatemala 335,000 10 Paraguay 400 10 Trinidad and Tobago 11 Personal computers 1 Brazil 6,900,000 1 Paraguay 233 1 Bermuda 49 2 Mexico 2,600,000 2 Brazil 113 2 Guadeloupe 22 3 Argentina 900,000 3 Cuba 100 3 Costa Rica 17 4 Colombia 733,000 4 Bolivia 90 4 Belize 14 5 Chile 641,814 5 Costa Rica 75 5 Martinique 13 6 Peru 350,000 6 Ecuador 61 6 Grenada 12 7 Costa Rica 300,000 7 Mexico 60 7 St. Vincent and the 12 Grenadines 8 Venezuela 300,000 8 Chile 56 8 Chile 12 9 Ecuador 152,652 9 Colombia 52 9 Uruguay 11 10 Paraguay 140,000 10 Nicaragua 50 10 Barbados 9 Main telephone lines in operation 1 Brazil 13,825,000 1 Haiti 86 1 Bermuda 86 2 Mexico 4,014,240 2 Brazil 55 2 Virgin Islands (US) 63 3 Colombia 1,100,578 3 Guatemala 39 3 Barbados 48 4 Argentina 652,672 4 Mexico 37 4 Antigua and Barbuda 48 43 5 Chile 358,403 5 El Salvador 35 5 Guadeloupe 45 ICT 6 Peru 334,265 6 Cuba 32 6 Martinique 42 of 7 Ecuador 296,660 7 Costa Rica 29 7 Bahamas 41 8 Venezuela 290,982 8 Ecuador 26 8 Netherlands Antilles 37 9 Costa Rica 235,389 9 Guyana 26 9 Puerto Rico 34 Diffusion 10 Guatemala 235,267 10 Peru 20 10 Aruba 34 Cellular mobile telephone subscribers Global 1 Brazil 19,848,300 1 Guyana 3,001 1 Martinique 79 2 2 Mexico 18,196,625 2 Dominica 1,070 2 Guadeloupe 70 3 Chile 4,185,011 3 Jamaica 870 3 Jamaica 53 4 Venezuela 2,678,826 4 Trinidad and Tobago 836 4 Aruba 48 Chapter 5 Colombia 2,630,465 5 Belize 697 5 Chile 43 6 Argentina 2,066,000 6 Bahamas 665 6 Bahamas 39 Peru 1,286,686 7 St. Vincent and the 603 7 Virgin Islands (US) 37 7 Grenadines 8 Jamaica 1,255,612 8 Haiti 460 8 Antigua and Barbuda 32 9 Guatemala 1,239,285 9 Nicaragua 442 9 Puerto Rico 31 10 Paraguay 1,231,407 10 Suriname 397 10 Paraguay 29 Television receivers 1 Brazil 4,000,000 1 Jamaica 98 1 Bermuda 108 2 Chile 3,668,711 2 Chile 87 2 Virgin Islands (US) 65 3 Mexico 1,800,000 3 Guyana 42 3 Uruguay 52 4 Colombia 1,499,020 4 Haiti 19 4 Chile 52 5 Jamaica 481,000 5 Honduras 18 5 Antigua and Barbuda 45 6 Ecuador 424,633 6 Ecuador 16 6 Jamaica 37 7 Argentina 400,000 7 Suriname 15 7 Grenada 35 8 Venezuela 214,258 8 Guatemala 13 8 Brazil 35 9 Peru 200,000 9 Colombia 13 9 Trinidad and Tobago 34 10 Guatemala 200,000 10 Barbados 13 10 Puerto Rico 34 Source: Author's calculations based on data from the International Telecommunication Union, World Telecommunication Indicators Database, accessed July 2003 Table 14. Regional Highlights: Leading Countries in Growth and Penetration, South Asia Change (units), 1999­2002 Change (%), 1999­2002 Penetration rate (% of Population), 2002 Internet users (estimated) 1 Maldives 12,000 1 Maldives 400 1 Maldives 5 2 India 13,780,000 2 India 492 2 India 2 3 Bhutan 9,250 3 Bhutan 1,233 3 Bhutan 1 4 Sri Lanka 135,000 4 Sri Lanka 208 4 Sri Lanka 1 5 Pakistan 1,420,000 5 Pakistan 1,775 5 Pakistan 1 6 Nepal 25,000 6 Nepal 71 6 Nepal 0 7 Bangladesh 154,000 7 Bangladesh 308 7 Bangladesh 0 8 Afghanistan n/a 8 Afghanistan n/a 8 Afghanistan n/a Personal computers 1 Maldives 12,500 1 Maldives 167 1 Maldives 7 2 Bhutan 7,000 2 Bhutan 233 2 Bhutan 1 3 Sri Lanka 145,000 3 Sri Lanka 138 3 Sri Lanka 1 4 India 2,700,000 4 India 82 4 India 1 5 Pakistan 20,000 5 Pakistan 3 5 Pakistan 0 6 Nepal 20,000 6 Nepal 33 6 Nepal 0 7 Bangladesh 320,000 7 Bangladesh 246 7 Bangladesh 0 8 Afghanistan n/a 8 Afghanistan n/a 8 Afghanistan n/a Main telephone lines in operation 1 India 14,908,660 1 Bhutan 64 1 Maldives 10 2 Pakistan 703,893 2 Bangladesh 58 2 Sri Lanka 5 3 Bangladesh 249,032 3 India 56 3 India 4 4 Sri Lanka 211,192 4 Sri Lanka 31 4 Bhutan 3 44 5 Nepal 74,638 5 Nepal 29 5 Pakistan 2 6 Bhutan 7,625 6 Maldives 29 6 Nepal 1 ICT 7 Maldives 6,472 7 Pakistan 24 7 Bangladesh 1 of 8 Afghanistan 4,050 8 Afghanistan 14 8 Afghanistan 0 Cellular mobile telephone subscribers Diffusion 1 India 10,803,329 1 Maldives 1,332 1 Maldives 15 2 Pakistan 940,170 2 Bangladesh 621 2 Sri Lanka 5 Global 3 Bangladesh 926,000 3 India 573 3 India 1 2 4 Sri Lanka 674,925 4 Pakistan 337 4 Pakistan 1 5 Maldives 38,973 5 Nepal 298 5 Bangladesh 1 Chapter 6 Nepal 16,381 6 Sri Lanka 263 6 Nepal 0 7 Afghanistan 12,000 7 Afghanistan n/a 7 Afghanistan 0 8 Bhutan 0 8 Bhutan n/a 8 Bhutan 0 Television receivers 1 India 10,000,000 1 Bangladesh 68 1 Pakistan 14 2 Pakistan 5,390,000 2 Maldives 41 2 Maldives 13 3 Bangladesh 3,171,102 3 Bhutan 38 3 Sri Lanka 12 4 Sri Lanka 300,000 4 Pakistan 34 4 India 8 5 Nepal 43,000 5 Nepal 29 5 Bangladesh 6 6 Afghanistan 20,000 6 Sri Lanka 16 6 Bhutan 3 7 Maldives 10,700 7 India 13 7 Afghanistan 1 8 Bhutan 5,000 8 Afghanistan 7 8 Nepal 1 Note: *or latest available data Source: Author's calculations based on data from the International Telecommunication Union, World Telecommunication Indicators Database, accessed July 2003 None of the economies in the region has a penetration rate of In the region, Iran has the highest number of Internet users, more than 20 percent for any of the indicators. The penetration personal computers, and main telephone lines. Over the last rates are notably high for television receivers, where Pakistan at three years Iran has added 2.9 million Internet users, a 1,167 14 percent has the highest rate percent, followed by Maldives percent increase. During the same period, Iran also increased at 13 percent and Sri Lanka at 12 percent; the rest of the the number of personal computers by 1 million, main economies have single-digit penetration rates. In terms of main telephone lines by 4.7 million, and cellular mobile telephone telephone lines only the Maldives reaches the 10 percent mark, subscribers by 1.8 million. with India at a 4 percent penetration rate, Pakistan at 2 percent, and Bangladesh at 1 percent. In terms of cellular mobile Israel has the highest number of cellular mobile telephone telephone penetration, Maldives has a 15 percent penetration subscribers and cable television subscribers, and the second rate followed by Sri Lanka at 5 percent while India, Pakistan, highest number of Internet users. In the last three years, and Bangladesh post a 1 percent penetration rate. Israel added 1.2 million Internet users, a 150 percent increase. During the same period, Israel also added 3.4 million cellular In this region, penetration rates for Bangladesh, Nepal, and mobile telephone subscribers, a 120 percent increase. Afghanistan are cause for concern. In Bangladesh, only 1 person in every 653 is an Internet user; there is 1 personal computer Saudi Arabia is second in the region in terms of the number for every 296 persons and 1 main telephone line for every of personal computers and home satellite antennas. It ranks 195 persons. Similarly, Nepal has 1 television for every 120 third in the region in the number of Internet users, main persons, 1 personal computer for every 290 persons, 1 Internet telephone lines in operation, television receivers and cable user in every 387 persons, and 1 cellular mobile telephone television subscribers. Notably, during the period 1999­2002 subscriber in every 1,060 persons. Finally, Afghanistan has 1 the number of Internet users in Saudi Arabia rose by 1.5 main telephone line for every 705 persons and 1 cellular mobile million, an increase of 1,500 percent. Similarly, the country telephone subscriber in every 1,941 persons. increased its number of personal computers by 150 percent or 1.8 million. Saudi Arabia also posted a notable increase in Middle East and North Africa the number of cellular mobile telephone subscribers, adding 4 million over the last three years, which is equivalent to a The Middle East and North Africa, a region of 20 economies, growth of 499 percent. has a combined population of 320 million, roughly equivalent to the combined population of the United States and Canada 45 Egypt has the second highest number of telephone lines in (see Table 10). Of the region's 320 million people, about 13 the region, and the fourth highest number of cellular mobile ICT million, or 4 percent, are Internet users and about 14 million telephone subscribers, Internet users, and personal computers. of have personal computers. The Middle East and North Africa Over the last three years, Egypt expanded its number of region is one of the few regions where the number of personal Internet users by 650 percent, adding 1.3 million new users. computers exceeds the estimated number of Internet users. Diffusion The country also added more than 2.7 million main telephone In terms of telecommunications, the region has 39 million lines and more than 4 million new cellular mobile telephone main telephone lines (12 percent individual penetration) and Global subscribers. 2 33 million cellular mobile telephone subscribers (10 percent individual penetration). The region also has 63 million In terms of Internet penetration rates, at 37 percent the United television receivers, and a far higher number of home satellite Arab Emirates has the highest in the region. The United Chapter antennas, nearly 12 million, than cable television subscribers, Arab Emirates is followed by Israel at 30 percent penetration, which number 1.4 million. Bahrain at 25 percent, and Lebanon at 12 percent. In terms of personal computers, Israel has the highest penetration rate Between 1999 and 2002 the region posted a 388 percent at 24 percent, followed by Qatar at 18 percent and Bahrain increase in the number of Internet users, equivalent to 10.2 at 16 percent. In terms of main telephone lines, Israel has the million new users, and a 340 percent increase in cellular highest penetration rate at 47 percent, followed by the United mobile telephone subscribers, equivalent to 25.8 million new Arab Emirates at 34 percent and Qatar at 29 percent. Similarly, subscribers. Personal computers increased by 56 percent Israel has the highest cellular mobile telephone penetration while main telephone lines and home satellite antennas both at 95 percent followed by the United Arab Emirates with a 76 grew by 34 percent. At a slower pace were increases in cable percent penetration rate and Bahrain at 58 percent. In terms television at 12 percent and television receivers at 9 percent. of television penetration, Qatar has the highest rate at 87 percent, followed by Oman at 55 percent and Bahrain at 43 Television penetration rate in the region is 20 percent. Main percent. For cable television, Israel has the highest penetration telephone lines and cellular mobile telephone subscriber rate at 18 percent, and for home satellite antennas Kuwait has penetration rates are slightly lower at 12 percent and 10 the highest penetration rate of 27 percent. percent, respectively. Penetration rates of both Internet users and personal computers are both at 4 percent, leaving much room for improvement. Table 15. Regional Highlights: Leading Countries in Growth and Penetration, Middle East and North Africa Change (units), 1999­2002 Change (%), 1999­2002 Penetration rate (% of Population), 2002 Internet users (estimated) 1 Iran 2,918,000 1 Libya 1,686 1 United Arab Emirates 37 2 Saudi Arabia 1,500,000 2 Saudi Arabia 1,500 2 Israel 30 3 Egypt 1,300,000 3 Iran 1,167 3 Bahrain 25 4 Israel 1,200,000 4 Syria 1,000 4 Lebanon 12 5 United Arab Emirates 717,615 5 Morocco 900 5 Qatar 11 6 Morocco 450,000 6 Algeria 733 6 Kuwait 11 7 Algeria 440,000 7 Egypt 650 7 Saudi Arabia 7 8 Tunisia 355,500 8 Djibouti 500 8 Oman 7 9 Lebanon 200,000 9 Bahrain 450 9 Jordan 6 10 Syria 200,000 10 Yemen 300 10 Tunisia 5 Personal computers 1 Saudi Arabia 1,803,000 1 Yemen 383 1 Israel 24 2 Iran 1,000,000 2 Saudi Arabia 150 2 Qatar 18 3 Egypt 370,000 3 Jordan 122 3 Bahrain 16 4 Israel 240,000 4 Tunisia 107 4 United Arab Emirates 14 5 Tunisia 155,000 5 Lebanon 83 5 Saudi Arabia 13 6 United Arab Emirates 150,000 6 Djibouti 67 6 Kuwait 12 7 Lebanon 125,000 7 United Arab Emirates 50 7 Lebanon 8 8 Yemen 115,000 8 Egypt 49 8 Iran 7 9 Jordan 110,000 9 Oman 46 9 Jordan 4 10 Syria 100,000 10 Syria 43 10 Oman 4 Main telephone lines in operation 1 Iran 4,703,833 1 Yemen 79 1 Israel 47 2 Egypt 2,743,639 2 Egypt 59 2 United Arab Emirates 34 3 Saudi Arabia 611,361 3 Iran 56 3 Qatar 29 4 Syria 498,955 4 Tunisia 35 4 Bahrain 26 46 5 Algeria 308,000 5 West Bank and Gaza 34 5 Kuwait 20 6 Tunisia 297,619 6 Syria 31 6 Iran 20 ICT of 7 Yemen 225,704 7 Saudi Arabia 23 7 Lebanon 20 8 Israel 222,000 8 Jordan 22 8 Saudi Arabia 14 9 Jordan 122,325 9 Libya 20 9 Jordan 13 Diffusion 10 United Arab Emirates 118,476 10 Algeria 19 10 Syria 12 Cellular mobile telephone subscribers Global 1 Morocco 5,829,496 1 Syria 9,900 1 Israel 95 2 2 Saudi Arabia 4,171,337 2 Djibouti 5,257 2 United Arab Emirates 76 3 Egypt 4,013,726 3 Yemen 1,707 3 Bahrain 58 4 Israel 3,454,000 4 Morocco 1,579 4 Kuwait 52 Chapter 5 Iran 1,829,082 5 Jordan 930 5 Qatar 44 6 United Arab Emirates 1,595,804 6 Egypt 834 6 Jordan 23 7 Jordan 1,101,180 7 Tunisia 812 7 Lebanon 23 8 Kuwait 927,000 8 Saudi Arabia 499 8 Saudi Arabia 22 9 Yemen 472,323 9 Algeria 456 9 Morocco 21 10 Tunisia 448,653 10 Iran 373 10 Oman 17 Television receivers 1 Egypt 1,400,000 1 Syria 28 1 Qatar 87 2 Iran 1,000,000 2 Jordan 11 2 Oman 55 3 Syria 674,300 3 Tunisia 11 3 Bahrain 43 4 Saudi Arabia 407,000 4 Egypt 10 4 Kuwait 40 5 Yemen 310,000 5 Iran 10 5 Lebanon 35 6 Morocco 293,381 6 Israel 8 6 Israel 32 7 Tunisia 200,000 7 Saudi Arabia 7 7 Yemen 27 8 Israel 150,000 8 Morocco 6 8 Saudi Arabia 26 9 Jordan 95,000 9 Yemen 6 9 United Arab Emirates 24 10 Oman 85,000 10 Oman 6 10 Egypt 23 Source: Author's calculations based on data from the International Telecommunication Union, World Telecommunication Indicators Database, accessed July 2003 For television, only two economies, Iraq and Djibouti, have and the second highest number of personal computers, main penetration rates below 10 percent. For main telephone telephone lines in operation, and cellular mobile telephone lines, seven economies have single-digit penetration subscribers. Kenya has the second highest number of Internet rates, including Algeria and Morocco. For cellular mobile users (tied with Zimbabwe) and the third highest number telephone subscribers, 10 economies have less than 10 percent of cellular mobile telephone subscribers. Zimbabwe has the penetration rates, including Egypt, Tunisia, Iran, Yemen, second highest number of Internet users, the third highest and Syria. In terms of Internet users, Saudi Arabia, Jordan, number of personal computers, and the third highest number and Tunisia are among the 14 economies in the region with of cable television subscribers. Sudan has the largest number penetration rates that are lower than the world average of of television receivers in the region, the third largest number 10 percent. In the region, Yemen has the lowest Internet of main telephone lines, and the fifth largest number of penetration, with 1 Internet user for every 485 persons. personal computers. In terms of personal computers, Morocco, Iraq, Yemen, and Algeria have penetration rates of about 1 percent of In terms of penetration rates, Mauritius and the Seychelles population. interchange for the top 2 slots for most of the technologies. Mauritius has the highest Internet penetration rate at 15 Sub-Saharan Africa percent of its population, followed by the Seychelles at 11 percent and South Africa at 7 percent. For personal Sub-Saharan Africa, a region with 47 economies and a computers, the Seychelles has the highest penetration rate combined population of 676 million, has about 6 million at 14 percent of the population, Mauritius is second with 11 Internet users and nearly 7 million personal computers percent penetration and Cape Verde is third, with 8 percent (see Table 10). There are nearly 23 million cellular mobile penetration. In terms of the number of cellular mobile telephone subscribers, which is more than twice the 10.2 telephone subscribers, the Seychelles registered a 53 percent million main telephone lines in operation. Like other regions, penetration rate, followed by Mauritius at 29 percent and television is the most prevalent of the ICT devices included South Africa at 27 percent. For television receivers, Sudan has in the study. There are 47 million television receivers in the the highest penetration rate at 39 percent, followed by Gabon region, and about 1.2 million home satellite antennas and and Mauritius at 30 percent 188,000 cable television subscribers. The penetration rates for the majority of the economies in Over the last three years, cellular mobile telephones increased 47 the region are cause for concern. Forty-three economies by 253 percent in the region, an addition of 16.3 million. in the region have a less than 5 percent penetration rate ICT During the same period, only 1 million lines were added, an of for Internet users. Of the 43 economies, 30 of them have 11 percent increase. Consequently, in 20 economies of the penetration rates below 1 percent. The Central African region, the number of cellular mobile telephone subscribers Republic, Ethiopia, Liberia, and the Democratic Republic of exceeds the number of main telephone lines. Diffusion Congo have among the worst Internet penetration rates. In Regional Internet growth, although it was an increase of 156 the latter, for example, only 1 in every 8,774 persons is an Global percent, amounted to only 3.6 million new users. This means Internet user, a far cry from the world average of 1 in every 10 2 that in the last three years, the region added slightly fewer persons. users than what Taiwan, an economy with about 22 million Chapter Personal computers present a similar picture. Only two people, added during the same period. Personal computers economies, the Seychelles and Mauritius, post penetration in the region also rose by only 2 million during the three- rates higher than 10 percent. The rest of the region either has year period, an increase of 43 percent. While the increase is less than 10 percent, or no data are available. Of those where certainly welcome, it is disappointing when one takes into data are available, at least 17 have penetration rates below 1 account that it is slightly less than the increase in the number percent. Among those with the lowest penetration rates for of personal computers in Taiwan. personal computers is Niger, with 1 personal computer for South Africa has the highest number of Internet users, every 1,958 persons. personal computers, main telephone lines in operation, cellular In terms of main telephone lines, 41 out of 47 economies in mobile telephone subscribers, and home satellite antennas in sub-Saharan Africa have a penetration rate below 5 percent. At the region. The country added nearly 1.3 million Internet users least 31 of these economies have penetration rates of 1 percent over the last three years, a 70 percent increase. In terms of the or less. Some of the worst rates are in the Democratic Republic number of cellular mobile telephone subscribers, the country of the Congo, where there is an estimated 1 main telephone added 6.9 million, an increase of 133 percent. line for every 2,632 persons. Other economies in the region with notable ICT bases For cellular mobile telephone subscribers, 33 economies have are Nigeria, Kenya, Zimbabwe, and Sudan. Nigeria has the a penetration rate below 5 percent. Of these 33 economies, highest number of cable television subscribers in the region, Table 16. Regional Highlights: Leading Countries in Growth and Penetration, Sub-Saharan Africa Change (units), 1999­2002 Change (%), 1999­2002 Penetration rate (% of Population), 2002 Internet users (estimated) 1 South Africa 1,280,000 1 Somalia 44,400 1 Mauritius 15 2 Zimbabwe 480,000 2 Zimbabwe 2,400 2 Seychelles 11 3 Kenya 465,000 3 Lesotho 2,000 3 South Africa 7 4 Togo 170,000 4 Sao Tome and Principe 1,700 4 Sao Tome and Principe 6 5 Nigeria 150,000 5 Sudan 1,580 5 Zimbabwe 4 6 Mauritius 125,000 6 Chad 1,400 6 Togo 4 7 Somalia 88,800 7 Kenya 1,329 7 Cape Verde 4 8 Sudan 79,000 8 Congo, DR 1,100 8 Botswana 3 9 Senegal 75,000 9 Eritrea 900 9 Namibia 2 10 Tanzania 75,000 10 Congo, DR 900 10 Swaziland 2 Personal computers 1 South Africa 700,000 1 Zimbabwe 300 1 Seychelles 14 2 Zimbabwe 450,000 2 Equatorial Guinea 250 2 Mauritius 11 3 Sudan 115,000 3 Togo 200 3 Cape Verde 8 4 Togo 100,000 4 Sudan 135 4 South Africa 7 5 Nigeria 100,000 5 Gabon 127 5 Namibia 5 6 Senegal 60,000 6 Angola 125 6 Zimbabwe 5 7 Ethiopia 55,000 7 Ethiopia 122 7 Botswana 4 8 Namibia 50,000 8 Comoros 110 8 Togo 3 9 Kenya 50,000 9 Namibia 100 9 Senegal 2 10 Tanzania 40,000 10 Eritrea 79 10 Gabon 2 Main telephone lines in operation 1 Sudan 420,422 1 Somalia 186 1 Mauritius 27 2 Nigeria 251,828 2 Sudan 167 2 Seychelles 26 3 Ethiopia 173,705 3 Mauritania 94 3 Cape Verde 16 4 Côte d'Ivoire 116,846 4 Ethiopia 89 4 South Africa 11 48 5 Ghana 83,567 5 Guinea-Bissau 84 5 Botswana 8 6 Mauritius 70,126 6 Malawi 77 6 Namibia 6 ICT 7 Somalia 65,000 7 Rwanda 70 7 Sao Tome and Principe 4 of 8 Senegal 58,749 8 Lesotho 58 8 Swaziland 3 9 Zimbabwe 48,898 9 Comoros 57 9 Gambia 3 10 Malawi 31,738 10 Nigeria 56 10 Zimbabwe 2 Diffusion Cellular mobile telephone subscribers 1 South Africa 6,893,000 1 Cameroon 9,283 1 Seychelles 53 Global 2 2 Nigeria 1,608,060 2 Nigeria 6,432 2 Mauritius 29 3 Kenya 1,301,465 3 Burundi 6,400 3 South Africa 27 4 Côte d'Ivoire 769,924 4 Kenya 5,478 4 Botswana 24 Chapter 5 Cameroon 557,000 5 Equatorial Guinea 4,400 5 Gabon 22 6 Senegal 465,548 6 Congo, DR 4,336 6 Cape Verde 10 7 Tanzania 376,014 7 Gabon 3,057 7 Mauritania 9 8 Uganda 336,952 8 Mozambique 2,326 8 Namibia 8 9 Ghana 334,974 9 Gambia 1,784 9 Gambia 7 10 Botswana 323,000 10 Burkina Faso 1,685 10 Congo, DR 7 Television receivers 1 Sudan 7,571,630 1 Burkina Faso 631 1 Sudan 39 2 Nigeria 4,500,000 2 Togo 500 2 Gabon 31 3 South Africa 2,053,000 3 Namibia 314 3 Mauritius 30 4 Burkina Faso 820,000 4 Eritrea 233 4 Namibia 27 5 Tanzania 810,000 5 Sudan 151 5 Seychelles 20 6 Togo 500,000 6 Mali 150 6 South Africa 18 7 Namibia 382,480 7 Tanzania 117 7 Togo 13 8 Mali 210,000 8 Burundi 83 8 Cape Verde 10 9 Kenya 152,928 9 Mozambique 79 9 Nigeria 10 10 Eritrea 140,000 10 Nigeria 60 10 Mauritania 10 Source: Author's calculations based on data from the International Telecommunication Union, World Telecommunication Indicators Database, accessed July 2003 24 economies have a penetration rate of 1 percent or lower. as severely indebted economies, 24 percent of the population Niger's penetration rate is particularly worrisome, with 1 belong to economies classified as moderately indebted cellular mobile telephone subscriber in every 5,525 persons. economies, while 12 percent belong to less indebted economies. In sub-Saharan Africa, less indebted economies have on Television penetration rates are, on the whole, higher than average 1 Internet user in every 22 persons. This is in stark that for the other technologies. Ten of the 47 economies have contrast to severely indebted economies that have, on average, television penetration rates higher than 10 percent. Only four 1 Internet user in every 471 persons. Similarly, less indebted economies have penetration rates below 1 percent. Chad and economies have on average 1 personal computer for every 20 the Democratic Republic of the Congo are among those with persons, while severely indebted economies have 1 personal the lowest television penetration rates. Chad has 1 television computer for every 277 persons. Less indebted economies for every 525 persons while the Democratic Republic of the also have 1 main telephone line for every 13 persons, while Congo has 1 television for every 526 persons. severely indebted economies have 1 main telephone line for every 149 persons. In terms of cellular mobile telephones there Breaking down the aggregate figures according to levels of is 1 cellular mobile telephone subscriber in every 6 persons in indebtedness, the picture reveals the tendency that the greater less indebted economies while in severely indebted economies the level of indebtedness, the lower the penetration rates. In the there is 1 subscriber in every 87. region, 64 percent of the population live in what are classified Box 2. Crafting the Right Framework It is more important than ever for each economy to determine what types of policies are needed to create an environment and network infrastructure that would facilitate greater ICT access and overall networked readiness. Setting the "right" framework is difficult because it requires policy coherence among various areas. The framework below outlines the elements that should be considered in crafting an environment for networked readiness: PART I. MARKET ENVIRONMENT PART II. LEGAL AND REGULATORY FRAMEWORK HUMAN RESOURCES LEGAL FRAMEWORK Basic legal framework: property rights, contract 49 Education law Infrastructure-related: computerization and ICT networking of schools and libraries Revising and creating relevant legislation: of e-commerce Content-related: training of educators and integration of ICT in the curriculum Harmonization with international law Government expenditures in education REGULATORY FRAMEWORK Diffusion Regulatory capacity: establishing an independent Labor and effective regulatory agency Certification and accreditation of ICT literacy Global levels Degree of regulation: choosing an appropriate 2 level of regulation Skills development Regulatory process: licensing/auctions, standards Skills matching through appropriate recruitment setting, dispute resolution: interconnection Chapter tools and centers Reversing the brain drain PART III. INFRASTRUCTURE CAPITAL Early-stage financing: access to venture capital Market Structure: privatization, liberalization Later-stage financing: access to capital markets Pricing: choice or regulatory pricing regime, metered vs. non-metered, subsidies vs. no TECHNOLOGY subsidies, Internet telephony Technological Diffusion Role of trade in technology transfer Universal Service/Access Role of foreign direct investment in technology Content: local content, content regulation, transfer taxation, privacy, and consumer data protection Technological Innovation Network quality: network service and support, Financing: grants, subsidies, tax concessions, loans quality of service monitoring, security Academia-business collaboration Supporting infrastructure: electricity, postal systems, customs, transport logistics Industry clusters Financial: payment gateway, identification, Ease of patent registration authentication Source: Figueres-Olsen, J-M and F. Paua. 2003. "Crafting the Environment for Networked Readiness." In Global Information Technology Report 2002­2003. New York: Oxford University Press for the World Economic Forum. Box 3. Promoting ICT Diffusion Through e-Government: Presence and Services ICT diffusion flourishes best when governments make it Figure 5. Matrix of Sophistication of Online Government a priority to promote the use of technologies. One of the Service Delivery vs Country Income Classification ways governments can do this is through e-government, Stage 1 Stage 2 Stage 3 such as increasing government presence on the web and Greece Australia providing relevant information and services online. Luxembourg Austria Slovenia Canada To benchmark the presence of national governments on the Denmark web and to assess the quality and sophistication of online Finland France government services, the World Economic Forum conducted HIGH Germany a survey of national government websites from June to Hong Kong SAR July 2003. Significantly, many developing economies are INCOME Ireland making inroads in e-government. Low income economies Israel such as Tanzania and Nicaragua have remarkable online Japan government presence. Moreover, several middle income Korea, Republic of New Zealand economies, including Argentina, China, Estonia, Mexico, Singapore Philippines, South Africa, Guatemala, and Malta are Spain increasing the level of sophistication of their e-government Sweden services websites (Figure E). Taiwan United Kingdom The result of the survey is captured in two e-government United States indicators that have been incorporated this year in the Bolivia Algeria Argentina Networked Readiness Index Rankings. The first measure Botswana Brazil China (Data table II.3.03) pertains to the presence of national Honduras Bulgaria Estonia Macedonia Chile Guatemala governments on the web and this includes assessment of Namibia Colombia Malta the websites of the chief executive, the judiciary, the main Trinidad and Tobago Costa Rica Mexico legislative body, ministries, embassies, and finally, the Croatia Philippines main government online portal, if available. The second Czech Republic South Africa measure (Data table III.3.02) evaluates the sophistication Dominican Republic of online government service delivery. For each country, Ecuador Egypt the availability and quality of five e-government services El Salvador were assessed: filing of personal taxes, application for Hungary car registration, application for passports, application for MIDDLE Jamaica Jordan 50 business permits and, finally, electronic public procurement. Latvia Of the five e-government services assessed, application for INCOME Lithuania ICT business permits and electronic public procurement cater Malaysia of Mauritius mostly to business while the other three services cater to Morocco individual citizens. Panama Paraguay In terms of online government presence, it is remarkable Diffusion Peru that all 102 economies have at least one branch of Poland government online. Of the 102 economies, 101 economies Romania Global have at least one ministry website, 94 economies have a Russian Federation Serbia 2 website for the national parliament and 89 economies have Slovak Republic a website for the judiciary. Of the 94 economies with a Sri Lanka website for the national parliament, 79 economies have old Thailand Chapter bills and the constitution online. Of the 89 economies with a Tunisia website for the judiciary, 66 economies post information on Turkey bills and pending cases online. Finally, of the 102 economies Uruguay Venezuela covered in the survey, 83 economies have a central site for the government, and of this number, 25 economies have Chad Angola Ethiopia Bangladesh single-entry portals to electronic services for citizens. Gambia Cameroon Ghana India In terms of the sophistication of online government LO W Haiti Indonesia services, many countries, including developing countries, INCOME Madagascar Kenya are making significant inroads. For business permits, only Malawi Mozambique 14 economies can conduct electronic payments, but at Mali Nigeria least 90 economies had procedure details online, of which Nicaragua Pakistan 52 economies allow downloading of forms. For electronic Senegal Tanzania Vietnam Uganda procurement, only 10 economies can do the entire Zimbabwe Ukraine transaction online but at least 78 economies have a related Zambia website with procedure details. For passport applications, Stage 1. Information stage: e-government services websites, where at least 70 economies have simple contact information available, provide basic information and procedure details while for car registration, at least Stage 2. Interactive stage: e-government services websites allow 49 economies provide procedure details, of which 31 allow submitting and downloading forms downloading of forms. Finally, for filing personal taxes, 72 Stage 3. Transaction stage: at least one e-government service enables economies have relevant web pages with downloadable electronic payment for the transaction forms while 17 countries, including developing countries Source: World Economic Forum, Survey of National Government Websites, accessed June­July 2003 like Guatemala, allow electronic payment. Nonetheless, the gains are apparent across the board, The task before us all is twofold: apply the lessons we have particularly in the area of Internet users and cellular mobile learned, particularly in the last three years, and seize the telephone subscribers. In 1999, 1 in every 266 persons opportunities of improved economic prospects in order to was an Internet user in sub-Saharan Africa; by 2002, this reduce the gaps in access to ICT. As the world gears up for ratio improved to 1 in every 113 persons. For the severely economic recovery and the technology sector stands poised indebted economies, this ratio moved from 1 Internet user for a rebound, there are four policy considerations and in every 1,996 persons to 1 in every 471 persons. In terms of another four market implications for policymakers, business cellular mobile telephone subscribers, the region improved leaders, and civil society to bear in mind. its 1999 ratio of 1 subscriber in every 96 persons to 1 in 30 by 2002. At the same time, the penetration rate of cellular Four Policy Imperatives mobile telephone subscribers in severely indebted economies The first policy imperative is that it is more important than dramatically improved from 1 subscriber in every 797 persons ever to craft the right framework. As the variations in country to 1 subscriber in 87. performance in ICT diffusion reveals there is no simple blueprint for crafting the right environment for fostering Policy Imperatives and Market increased ICT access. A particular policy and regulatory framework that is most suitable for one country may not be Implications applicable to another due to a myriad of variations, ranging The analysis above has painted the global picture of ICT from geographic terrains to differing economic, political, diffusion as well as presented the profiles of ICT penetration social, and institutional contexts. in the different regions of the world. Evaluating the progress of ICT diffusion over the last three years, the analysis clearly Yet the fact remains that the most appropriate framework for shows that much has been achieved in improving access to an economy must be in place to enable it to fully capture the information and communication technologies in the world, benefits of ICT (see Box 2). On the policy side, this means particularly in many developing economies. assessing several aspects of the framework: market structure, pricing, universal service/access, content, network quality, and That much of this remarkable growth in ICT diffusion has supporting infrastructure. With so many aspects involved in been achieved in a difficult environment makes it even more the framework, it is important to ensure policy coherence as extraordinary. The last three years marked the peaking of the well as flexibility in adapting to rapidly changing technologies 51 Internet bubble and consolidation in the technology industry. and shifting global trade and investment patterns. Moreover, ICT It was also a period marked by a synchronized downturn in there must be in place a clear and up-to-date legal framework of the global economy. that is consistent with international law. It is also important to ensure that an independent regulator who is empowered Today, the technology industry is increasingly showing signs and equipped to implement regulatory policy, allocate scarce Diffusion of a pick-up in activity. The information and communication resources, adjudicate disputes, and balance goals of efficiency, technology sector in general is also benefiting from the equity, and innovation oversees a country's regulatory regime. Global consolidation that has occurred during the last three 2 years: debt levels have been reduced, operations have been The second important policy imperative is that the issue of streamlined, and much of the excess has been minimized. ICT access is ultimately about developing human capacity. Chapter Research and development activities are accelerating and The willingness to acquire technological devices depends on more innovations are coming to market. All these positive the expected utility of these devices, which in turn depends on developments in the sector augur very well for continued an individual's capacity to use these devices. For policymakers, dramatic improvements in ICT diffusion. this means that attention must be placed on education and labor policies. A country's educational system and policies These positive developments come at an opportune time must provide the relevant knowledge and skills needed by because, as the above analysis also shows, much still needs to individuals in the knowledge economy. Likewise, labor policies be done to improve global ICT diffusion. Many members of must ensure timely upgrading of the knowledge and skill the global community have yet to gain access to some of the base of the workforce. Significantly, both education and labor most basic information and communication technologies. policies must entail the allocation of sufficient resources and Even in the context of shared access in developing investment from governments. economies, the disparities of ICT access remain glaring. The lingering gap will continue to exist unless international and It is important, however, that efforts to enhance human national policymakers as well as business leaders and other capacity be pursued concurrently with efforts to ensure that stakeholders exert concerted efforts to close it. appropriate technologies are being developed. Policymakers and business leaders must continually assess whether existing technologies are relevant to the needs and abilities of the intended users. The third important policy imperative is that ICT diffusion cellular mobile telephones, more than 5.5 billion people in the flourishes best when governments make it a priority world are not cellular mobile telephone subscribers. to promote the use of technologies. When one looks at economies with low penetration rates, one of the questions The second implication is that there is a potentially large that immediately come to mind is: what, if anything, are market for technologies and applications other than what is the governments doing to promote ICT access? There are available today. One of the caveats noted in the introduction many reasons that developing country governments may of this study is that indicators monitored in this analysis may be unable to focus on ICT promotion. Some governments not be the most relevant or the most affordable technologies, are unfortunately caught in wars and various forms of particularly for developing economies. For instance, is a political instability. There are others that simply do not have desktop personal computer practical for a farmer who works the resources to address the issue of ICT access because in the field all day? Or can more appropriate technologies of pressing requirements in the area of food, security, or be developed? Beyond the question of relevance, more user- healthcare; these cases clearly provide opportunities for friendly technologies must also be developed to cater to the donor economies and international and nongovernmental varying educational, linguistic, and ability levels of people. organizations to offer assistance. In yet other cases the Technologies must also be developed that are affordable problem is lack of attention to policy and resource allocation; for the intended users. There are clearly unmet needs and policymakers are then called upon to adopt a longer-term opportunities to innovate upon existing technologies. perspective and to look at effective ICT promotion as an The third implication revealed by the analysis of global ICT investment in the future. diffusion is that it is important to study demand and take- Beyond establishing policy and regulatory frameworks up patterns. In the face of rapidly shifting technologies, conducive to creating a network infrastructure, governments companies and governments are often faced with the difficult must also promote the use of these technologies, either by task of choosing technology platforms. As policymakers example through e-government (see Box 3), or through strive towards promoting ICT access and providing proactive policies to promote local content. Production information and relevant online services, it is important of local content and relevant applications are important that they choose a platform that is broadly used by their elements when encouraging individuals to acquire and use constituency and that can be best used to connect to the 52 ICT. In advanced economies, there are cases where it is lack networked economy. For companies, this task has the added of interest, rather than lack of affordability, that deters a component of having to ascertain the projected demand for ICT these technologies. of potential Internet user. Equally as important as producing local content, government Three years ago, it would have been difficult to predict that cellular mobile telephone subscribers would exceed Diffusion also must foster the creation of an environment that allows information exchanges, that is, freedom of communication the number of main telephones lines in 125 economies (Appendix 1). There are many reasons for the rapid take- Global and expression. Freedom of the press is curtailed in many 2 countries, and this constraint often extends into Internet up of cellular mobile telephone subscribers; among these content regulation. reasons is the waiting time in many developing economies to get a telephone line connected. Two other very important Chapter The fourth policy imperative is that international trade plays reasons are the introduction of pre-paid cards, which a very important role in ICT diffusion. International trade dramatically reduced the cost of access, and the popularity allows domestic producers and consumers to have access to and affordability of short messaging service, which allows the a greater variety of ICT products and services at prices lower sending of text messages through a mobile telephone. Indeed, than would otherwise be possible. To facilitate ICT diffusion, determining which technologies are spreading rapidly and policymakers must liberalize trade by lowering tariff and non- assessing what is driving the spread can provide important tariff barriers to ICT. lessons that may be applicable to existing and emerging technologies. Four Market Implications Beyond examining where growth is coming from, it is In addition to policy considerations, this progress report on equally important to examine the varying take-up patterns of global ICT diffusion indicates important market implications. technologies. What does this mean for developing economies The first is that there is a significantly large market that is seeking the easiest, most affordable way to connect to yet to be connected. Ninety percent of the world's 6.2 billion the Internet? It is also interesting to see that amidst the population are not Internet users. There are 1.5 billion emergence of various new devices, television remains among households in the world but there are only half a billion the most pervasive ICT in the world. What implication personal computers. Moreover, despite the rapid adoption of does this have for delivering time-sensitive information? Worldwide over the last three years, purchases of personal computers grew by 40 percent, which pales in comparison third is for governments to promote the use of ICT through to the 119 percent growth in the number of Internet users. a national ICT strategy, e-government initiatives, promotion What does this say about the price structure and appeal of of local content, and the creation of an environment where the current design of personal computers? What impact freedom of communication and expression can prevail. The would Wi-Fi, and other new technologies, have on improving fourth policy imperative is that international trade plays a Internet access? very important role in ICT diffusion, and governments must reduce tariff and non-tariff barriers to ICT imports. The fourth market implication is that we have barely begun to tap the possibilities of the current network. In the world As the world gears up for economic recovery and the today, for example, there are at least 1.5 billion cellular technology sector stands poised for a rebound, the analysis mobile telephone subscribers. What kind of applications can highlights four market implications. The first is that a large be created for this subscriber base? What opportunities do proportion of the world is yet to be connected and this a network of more than 600 million Internet users present? represents a tremendous market opportunity. The second Moreover, what implications would convergence have on implication is that since most of those yet to be connected are the current network and array of applications? The rate of in the developing world, there is a potentially large market for growth of ICT diffusion and the rapid take-up of newer new and more affordable technology as well as applications technologies certainly provide us with strong reasons to be that are more relevant and user friendly. Clearly there optimistic about tapping the potential of an increasingly are opportunities to innovate and improve upon existing networked world. technologies. Related to the second implication is the third, which highlights the importance of studying demand and Conclusion take-up patterns in order to anticipate future requirements. And the final implication is that the world has barely begun As a progress report on the global diffusion of ICT, the to tap the possibilities of the current network, which has analysis of the empirical data clearly shows that globally, more than 600 million Internet users, and more than 2 access to ICT has increased dramatically, particularly in billion main telephone lines and cellular mobile telephone terms of cellular mobile telephones and the Internet. That subscribers. The rate of growth of ICT diffusion and the a significant proportion of the growth came from emerging rapid take-up of newer technologies certainly provide strong market economies is remarkable. What makes the overriding reasons for optimism as we continue to tap the potential of an 53 high rate and diffusion of ICT even more extraordinary is increasingly networked world. ICT that it occurred at a time that was marked by a synchronized of downturn in the global economy and deep consolidation in the technology sector. Diffusion Yet analysis at the regional and country level, particularly when disaggregated according to income levels, reveals the Global persistence of a significant gap between the penetration 2 rates in high income economies and low income economies, particularly those economies in sub-Saharan Africa that Chapter are severely indebted. Even in the context of shared access in developing economies, the disparities of ICT access still remain glaring. The lingering gap will continue to exist unless international and national policymakers as well as business leaders and other stakeholders exert a concerted effort to apply the lessons that have been learned, particularly over the last three years. It is equally important to seize the opportunities of improved economic prospects in order to reduce the gaps in access to ICT. The analysis of the global diffusion of ICT leads us to four policy imperatives and four market implications for policymakers, business leaders, and civil society. To promote greater diffusion of ICT it is important, first, to craft the right framework in terms of policy and regulatory environments. The second policy consideration is to develop human capacity in order to encourage individuals to use ICT and enable them to maximize the benefits of having access to ICT. The Endnotes 1 The first Global Information Technology Report was a collaboration between the World Economic Forum, the Center for International Development at Harvard University, and infoDev of the World Bank. 2 Data are primarily from the International Telecommunication Union (ITU) World Telecommunication Indicators Database, accessed July 2003. Public information is available at the ITU website:http://www.itu.int/ITU-D/ict/ 3 "Main telephone lines" is defined by the ITU as "telephone lines connecting a customer's equipment (e.g., telephone set, facsimile machine) to the Public Switched Telephone Network (PSTN) and which have a dedicated port on a telephone exchange." ITU also notes that, "for most countries, main lines also include public payphones." More information can be found on the Technical Notes page of the ITU website: http: //www.itu.int/ITU-D/ict/statistics/at_glance/main02.pdf 4 "Cellular mobile telephone subscribers" is defined by the ITU as "users of portable telephones subscribing to an automatic public mobile telephone service using cellular technology that provides access to the PSTN." More information can be found on the Technical Notes page of the ITU website: http://www.itu.int/ ITU-D/ict/statistics/at_glance/main02.pdf 5 Classification of economies according to income is based on the World Bank's Country Classification whereby economies are divided according to 2002 GNI per capita, calculated using the World Bank Atlas method. The groups are: low income, USD 735 or less; lower middle income, USD 736 to 2,935; upper middle income, USD 2,936 to 9,075; and high income, USD 9,076 or more. For the purposes of Appendix 1, "lower middle income" and "upper middle income" were merged into one "middle income" category. More information on the World Bank Country Classification can be found on the World Bank website: http: 54 //www.worldbank.org/data/countryclass/countryclass.html 6 The historical perspective on the China and India experiences ICT in ICT diffusion was first explored in Paua, F., E. J. Lee, A. of Padmanabhan, et al. 2001. "Information Infrastructure Development in China and India: Comparative Analysis, 1986­ 2000." Unpublished paper, Harvard University. Diffusion References Cornelius, P., F. von Kirchbach, F. Paua and N. Semine. 2002. Global "Trade in ICT Products: The Global Framework and Empirical 2 Evidence." In Global Information Technology Report 2001­ 2002. New York: Oxford University Press. Chapter Figueres-Olsen, J.M. and F. Paua. 2003. "Crafting the Environment for Networked Readiness." In Dutta, S., F. Paua, and B. Lanvin, eds., Global Information Technology Report 2002­2003. New York: Oxford University Press for the World Economic Forum. International Telecommunication Union (ITU). World Telecommunication Indicators Database. Online. Accessed July 2003. Appendix 1. Countries Where the Number of Cellular Mobile Telephones Subscribers Exceeds the Number of Main Telephones Lines in Operation, 2002* High income economies Middle income economies Low income economies Difference** Difference** Difference** Italy 24,864,050 Mexico 10,986,630 Indonesia 3,949,965 United Kingdom 14,776,000 Philippines 10,877,304 Kenya 997,118 Spain 14,769,400 Thailand 9,617,158 Nigeria 931,060 Taiwan 10,805,990 South Africa 7,186,000 Côte d'Ivoire 690,929 Japan 9,969,000 Morocco 5,071,223 Cameroon 461,558 Korea, Republic of 9,085,000 Czech Republic 4,749,334 Bangladesh 393,000 Germany 5,480,000 Malaysia 4,575,000 Cambodia 346,506 France 4,656,560 Turkey 4,459,500 Uganda 338,334 Portugal 4,167,900 Venezuela 3,621,790 Senegal 328,804 Greece 3,706,534 Chile 2,978,496 Tanzania 278,500 Israel 3,234,000 Hungary 2,895,555 Mauritania 213,733 Belgium 3,003,085 Poland 2,600,000 Mozambique 207,512 Hong Kong SAR 2,454,598 Saudi Arabia 1,690,422 Congo 199,800 Austria 2,427,000 Slovak Republic 1,520,658 Ghana 162,878 Netherlands 2,100,000 Paraguay 1,393,800 Congo, DR 130,000 Australia 1,989,000 Jamaica 950,000 Togo 108,844 Finland 1,550,000 Guatemala 731,117 Madagascar 103,569 Sweden 1,474,000 Lithuania 695,674 Mongolia 88,000 Singapore 1,364,900 Albania 580,000 Rwanda 68,500 United Arab Emirates 1,334,417 Jordan 531,999 Nicaragua 68,295 Ireland 994,000 Estonia 406,000 Benin 65,702 Slovenia 855,565 Croatia 399,000 Zimbabwe 65,146 Kuwait 745,109 Dominican Republic 314,937 Guinea 64,783 Denmark 738,898 Bolivia 308,735 Gambia 61,650 55 New Zealand 671,000 Peru 277,735 Lesotho 57,964 ICT Norway 517,000 Botswana 272,400 Zambia 50,617 of Switzerland 399,000 Bosnia and Herzegovina 258,555 Angola 45,000 Bahrain 213,544 Serbia 257,434 Sierra Leone 43,505 Reunion 189,800 Gabon 248,584 Burundi 29,916 Diffusion Martinique 147,900 El Salvador 221,119 Burkina Faso 27,992 Guadeloupe 113,500 Oman 218,000 Chad 22,365 Global 2 Luxembourg 108,237 Latvia 215,985 Equatorial Guinea 18,200 Macau 100,032 Ecuador 134,673 Malawi 12,947 Qatar 90,184 Panama 98,855 Haiti 10,000 Chapter Iceland 75,310 Lebanon 96,264 Mali 2,909 Brunei Darussalam 48,560 Malta 69,590 Central African Republic 2,083 French Polynesia 37,480 Sri Lanka 48,472 New Caledonia 29,291 Trinidad and Tobago 36,857 Aruba 15,868 Namibia 32,602 Liechtenstein 2,077 Swaziland 27,940 Mauritius 22,775 Seychelles 22,734 West Bank and Gaza 21,500 Belize 20,860 Maldives 13,248 Suriname 9,634 Guyana 6,859 Djibouti 4,875 Honduras 4,011 Note: *or latest available data ** indicates the difference between the number of cellular mobile telephone subscribers and the number of telephone main lines in operation. Source: Author's calculations based on data from the International Telecommunication Union, World Telecommunication Indicators Database, accessed July 2003 Overview Chapter 3 For policymakers, the acronym ICT covers a complex set of technical, legal, and regulatory issues that they sometimes Poverty have difficulty relating to broader social and economic objectives. Efforts to bring ICT to the forefront of economic and social thinking (in particular in the area of development) "e-Readication" are still relatively recent. However, because some of those efforts have been initiated close enough to decision-making Using ICT to Meet MDG: circles, they are starting to bear fruit at the policy level. This is all the more remarkable because the increased awareness of the crucial social and economic roles of ICT has taken Direct and Indirect place against the background of depressed ICT markets and significant downsizing in related industries. Among the major Roles of e-Maturity challenges that the pursuit and expansion of those efforts now have to face, two interrelated ones require immediate attention. These are (1) the involvement of civil society and local communities in supporting greater resource allocation to ICT as a means of achieving broad economic and social objectives such as poverty reduction, and (2) the production of credible indicators through which action in this area can be measured and rewarded. This chapter offers a few practical proposals for dealing with these challenges. Introduction The year 2000 saw the launch of two major international efforts, which are now expected to converge. One was the 57 "Digital Opportunity Task Force" (DOT Force), initiated Bruno Lanvin and by the G-8. The other was the adoption by the UN General Assembly of a new set of development targets, called Christine Zhen-Wei Qiang "Millennium Development Goals" or MDG, to be achieved by 2015.1 "e-Readication" The DOT Force concluded that "when wisely applied, ICT offer enormous opportunities to narrow social and economic overtyP 3 inequalities and support sustainable local wealth creation, and thus help to achieve the broader development goals that the international community has set. . . . ICT can provide Chapter new and more efficient methods of production, bring previously unattainable markets within the reach of local producers, improve the delivery of government services, and increase access to basic social goods and services. There need therefore be no trade-off between investment in ICT and the achievement of development objectives" (G8 DOT Task Force 2001, p. 4). As the world prepares for the World Summit on the Information Society (WSIS), to be held in Geneva (2003) and Tunis (2005), businesses and governments now seek the operational tools that will enable them to link their respective decisions, strategies, and policies to the broader objective Respectively Manager, Information for Development Program (infoDev), and Economist, Global Information and of reducing the gap between rich and poor. In this context, Communications Technology Department, the World Bank. indicators measuring e-readiness and network readiness are The views expressed here should be considered as the authors attracting growing attention. They are powerful guides for personal opinions. They do not necessarily reflect those of the World Bank or infoDev. action and have attracted the attention of the media, civil E-Readiness and Poverty Eradication society, and analysts interested in finding out "what and who On the multidimensional scale of e-readiness and works well in reducing the digital divide." e-maturity, the way in which various countries move from one level to the next is significantly more interesting (at least From a development point of view, this means that when from a policy point of view) than their "absolute" rankings poverty reduction is the objective, e-readiness has the vis-à-vis each other. However, both the "dynamics" and the potential to bring us closer to the ultimate goal, that is, "ranking" of e-readiness may look very different, depending poverty eradication. This is what the neologism "Poverty on the axes of reference which are used to measure them. e-Readication" is meant to encapsulate. Box 1. Millennium Development Goals and Related Targets GOAL 1--Eradicate extreme poverty and hunger Halve, between 1990 and 2015, the proportion of people whose income is less than US$1 per day Halve, between 1990 and 2015, the proportion of people who suffer from hunger GOAL 2--Achieve universal primary education Ensure that, by 2015, children everywhere, boys and girls alike, will be able to complete a full course of primary schooling GOAL 3--Promote gender equality and empower women Eliminate gender disparity in primary and secondary education, preferably by 2005, and in all levels of education no later than 2015 GOAL 4--Reduce child mortality Reduce by two-thirds, between 1990 and 2015, the under-five mortality rate GOAL 5--Improve maternal health Reduce by three-quarters, between 1990 and 2015, the maternal mortality rate 58 GOAL 6--Combat HIV/AIDS, malaria, and other diseases Have halted by 2015, and begun to reverse the spread of HIV/AIDS Have halted by 2015, and begun to reverse the incidence of malaria and other major diseases GOAL 7--Ensure environmental sustainability Integrate the principles of sustainable development into country policies and program and reverse the loss of environmental resources "e-Readication" Halve, by 2015, the proportion of people without sustainable access to safe drinking water Have achieved, by 2020, a significant improvement in the lives of at least 100 million slum dwellers overtyP 3 GOAL 8--Develop a global partnership for development Develop further an open, rule-based, predictable, nondiscriminatory trading and financial system (includes a commitment to good governance, development, and poverty reduction--both nationally and internationally) Chapter Official development assistance Address the special needs of the least developed countries (includes tariff-and quota-free access for exports, enhanced program of debt relief for HIPC and cancellation of official bilateral debt, and more generous ODA for countries committed to poverty reduction) Market access Address the special needs of landlocked countries and small island developing states (through the Barbados Programme and 22nd General Assembly provisions) Debt sustainability Deal comprehensively with the debt problems of developing countries through national and international measures in order to make debt sustainable in the long term Other In cooperation with developing countries, develop and implement strategies for decent and productive work for youth In cooperation with pharmaceutical companies, provide access to affordable, essential drugs in developing countries In cooperation with the private sector, make available the benefits of new technologies, especially information and communications Figure 1. The e-Readiness Ripple Effect Economic value creation Poverty eradication Employment/empowerment Value/wealth creation Competitiveness e-readiness Starting point on the e-maturity scale Social cohesiveness Figure 2. From e-Readiness to Poverty Eradication Economic value creation Productivity path MDG time horizon Poverty eradication 59 Information society path Employment/empowerment Value/wealth creation "e-Readication" Competitiveness e-readiness overtyP 3 Starting point on the e-maturity scale Chapter Social cohesiveness This simple fact becomes particularly relevant when one to poverty eradication will depend very narrowly on the considers that e-readiness is not an end in itself. Both from relative importance that its society and decision makers the point of view of economic value creation and from that grant to economic indicators on one hand (e.g., economic of social cohesiveness, the ripple effect of greater value creation) and social objectives (e.g., reducing income e-readiness pervades increasingly broad policy and social disparities) on the other. Although the two paths may objectives. These include the competitiveness of national eventually converge and contribute efficiently to poverty economies and enterprises, the ability of such economies eradication (see Figure 2), medium-term time horizons and enterprises to create wealth and hence, employment (such as that of the MDG, which focus on 2015) may give a and empowerment to local communities, and, finally, "divergent picture" of such paths. contributions to the elimination of poverty (see Figure 1). So, is there a "techno-economic" vision and a "social" vision Seen from this point of view, e-readiness can be used as an of e-readication? Although it has yet to be expressed in those instrument to eradicate poverty in many different ways. The terms, this debate is at the very core of the World Summit on path that a particular country will follow from e-readiness the Information Society (Geneva 2003, Tunis 2005). In that controversial context, the MDG framework offers a unique set 1 to 7. Considering the fact that Goals 2 to 7 are actually of references and objectives, around which both paths can be fundamental components of a concerted strategy to achieve reconciled. Goal 1 (poverty eradication), one can represent a simplified dynamic model of the pursuit of MDG as follows: Information Societies and the Millennium Assessing the potential of using ICT, as measured by the Development Goals e-economy maturity ranking2 (e-readiness) in achieving The old debate of the 1990s about choosing between ICT the MDG, requires addressing the three different channels and other development imperatives (e.g., by stating that, in through which it could work (see Figure 4): poor countries, investment in ICT draws precious resources · Social empowerment--its part in helping to achieve away from more urgent development needs), has now specific social development objectives; shifted from one of trade-offs to one of complementarity · Economic empowerment--its role in fostering broader (Accenture, Markle Foundation, and UNDP 2001). economic development; and These new technologies, it is now clear, are not an end in themselves. Nor will a one-size-fits-all approach work--the · Political empowerment--its worth in bringing the poor challenges faced by developing countries vary too greatly by into the process of making policies that affect their lives. geography, culture, and level of economic attainment. ICT can not eliminate the need for political stability, physical First, ICT applications have already proved their value in infrastructure, human capacity, and basic health care, nor addressing several specific challenges identified in the MDG. can it offer a panacea for all development problems. But By mainstreaming ICT into a broader development context, evidence is growing that ICT is a potentially powerful tool ICT may be leveraged to achieve such core social objectives.3 when used in the right way as part of an overall development Sustainable poverty reduction is not achieved by short- strategy. This is clearly an approach that will require sighted miracle cures, such as universal Internet access. For innovative and close partnership between governments, solutions to be credible, useful, and sustainable, they must business, and civil society. respond to demand. A prerequisite for success is that people be aware of the possibilities that ICT offers in traditional In the context of the MDG, this means that Goal 8 (which development sectors such as education, good governance, 60 covers both ICT and partnerships) can increase the efficiency health, livelihood opportunities (e.g., agriculture), and with which the international community will pursue Goals environment. Figure 3. Pursuing MDG: A Dynamic Model "e-Readication" Goal 1: Poverty eradication Targets 1, 2 overtyP 3 Goal 2: Primary education Target 3 Chapter Efforts Goal 3: Gender equality Target 4 Scorecards and (resources) monitoring from local and Goal 4: Child mortality Target 5 (tracking 48 international reduction indicators) communities Goal 5: Maternal health Target 6 to reach MDG Goal 6: HIV/AIDS and oid Targets 7, 8 Goal 7: Environment Target 9 Goal 8: ICT & partnerships Targets 12_18 Figure 4. From e-Readiness to Achieving MDG Education Social Health Empowerment Gender Environment Economic Economic growth Achieving MDG E-Readiness Empowerment Poverty reduction Political Partnership Empowerment Pro-poor policies Second, the key to self-sustaining development, in the end, is contribution to addressing relevant social and societal issues. economic growth. ICT can make a significant contribution to Moreover, access to ICT should not be seen as an end in itself. economic growth by increasing labor productivity through The measure of success remains the progress towards reaching high growth of total factor productivity (TFP) in ICT- the MDG, rather than the spread of technologies.4 producing industries, through increase in the real ICT capital stock per worker, and through the overall productivity In the following discussion, the focus is primarily on the growth arising from reorganization across the entire opportunities opened by ICT for achieving the MDG and economy (Qiang and Pitt 2003). sustainable development, provided that the appropriate policies and institutions are existent or forthcoming. Third, ICT has the potential to help bring ideas and 61 experience to even the most isolated, opening to them the Using ICT to Achieve MDG world outside their village, city, or country. It also allows people to share their experience with the world at large with a Social Empowerment tap on a keyboard or a touch on a cellular phone keypad. ICT can also empower individuals to participate in the political Characterizing ICT institutions and policymaking of their community, giving "e-Readication" Before exploring the power of ICT to improve efficiency in voice to those who have traditionally been excluded. delivering each of the MDG social goals, an appreciation overtyP Naturally, meeting MDG can in turn improve a country's of the characteristics and the economy-wide effects of ICT 3 e-maturity/e-readiness. This relies on four components: may facilitate a greater understanding of their potential as a (1) the readiness of a community's key stakeholders development tool. Chapter (individuals, businesses, and governments) to use ICT, (2) ICT is a general purpose technology (GPT) and has access to, and availability of ICT, (3) usage of ICT amongst the features characterized by new growth theorists and those stakeholders, and (4) the impact of ICT on the key economic historians: (1) wide scope for improvement and stakeholders. The actions required to achieve social and elaboration; (2) applicability across a broad range of uses economic objectives (such as those contained in the MDG) and in a wide variety of products and processes; and (3) often include the adaptation of ICT applications for local use strong complementarities with existing or potential new and to local conditions, and the promotion of local content. technologies. GPT play the role of "enabling technologies," Such a process, because it involves all key players and makes opening up new opportunities rather than offering complete their respective impacts mutually reinforcing, can be a solutions (Hanna 2003). Their characteristics are: critical way to empower and involve civil society in building information societies. · Interactive, permanent, and global reach--ICT includes effective synchronous and asynchronous two-way However, one must be careful to avoid technological communication technologies. Once one has access determinism in considering the role of ICT in reaching the to ICT, it is available around the clock and permits MDG. If policies (e.g., in the legal and regulatory fields) do communication independent of the physical movement of not create the right incentives, or if institutions are too weak individuals and geographic distances between them. to implement those policies, ICT can only make a limited Figure 5. Role of ICT in Social Sectors Education Reach Externalities Decoupling Pervasiveness Delivering distance education Broadening availability of quality educational materials Developing scientific research network Enhancing the efficiency and effectiveness of education administration Gender Influencing public opinion on gender equality Improving the economic opportunities for girls and women using ICT MDG Educating women to do a better job caring for children in social sector Health Facilitating remote consultation, diagnosis and treatment Disseminating health information and disease prevention techniques Medical research collaboration and training Improving the efficiency of medical facility administration Environment Communication in development and enforcement of policies affecting environment Raising awareness and sharing knowledge on environmental issues Enabling greater environmental sustainability in other sectors Environmental monitoring and resource management and risk mitigation Source: World Bank, 2003 · Externalities--As inputs into the development process, ICT is a panacea, but that an understanding of the promise ideas, knowledge, and information are non-rival in nature and implications of the ongoing ICT revolution is necessary and can potentially be treated as global public goods, with in order to realize its potential for development; this goes far significant external effects on the economy as a whole. In beyond its contribution as a sector. addition to these content-related externalities, there are also externalities related to the size of the ICT networks Figure 5 provides examples of linkages between ICT applications and each one of the social sector MDG 62 and applications. Once a critical mass of investments is reached, network externalities5 come into effect and (Goals 2 to 7). This is done by identifying which of the above- marginal returns on ICT investment increase, at least up to mentioned GPT characteristics of ICT apply to any particular a point (Qiang and Pitt 2003). social objective. · Decoupling property--ICT is able to serve as information Over the last few years, many ICT-for-development "e-Readication" channels due to its ability to support the decoupling of initiatives have contributed analytical and empirical information from its physical repository (Bedi 1999). This evidence illustrating the developmental role of ICT.7 An overtyP revolutionary aspect allows the immediate transmission action-oriented international consensus now needs to be 3 of information, unhindered by the volume or the built on the basis of such evidence. nature (voice, video, or data). The capacity to support information separation is the key attribute underlying the Chapter Economic and Political Empowerment-- wide range of activities and services offered through ICT. Foundations of Achieving MDG · Pervasiveness--A technology may have pervasive As stressed earlier, eradication of extreme poverty and hunger economic effects6 if it (1) generates a wide range of new is the first of the MDG, while most of the other seven goals are products and services; (2) generates strong industrial mutually reinforcing and focus on reducing poverty in all its interests as a means for profitability and competitive forms. The poor are not just deprived of basic food, education, advantage; and (3) reduces the costs and improves the and health services; their lack of access to knowledge and performance of the processes, services, and products of their low political visibility reinforce their vulnerability to many sectors of the economy. The widespread applications constraints and challenges. This, in turn, forces them into of ICT and the possibility of tailoring them to adapt social exclusion, powerlessness, and poverty traps. to individual, corporate, and government needs clearly qualify ICT as pervasive technologies. Lack of access to ICT is clearly not an element of poverty in the way that insufficient nutrition or inadequate shelter Linking ICT to the Social Objectives of the MDG are (Kenny, Navas-Sabater, and Qiang 2002), but it can be Rather than being treated as an isolated sector , ICT should seen both as a cause and an outcome of low levels of human be used as a lens to re-think development strategies, as a tool development. As shown in Figure 6, the correlation between to enable all sectors, and as a new and powerful means to the human development index (HDI)8 and the networked help reach development objectives. This does not mean that readiness index (NRI)9 is very high (greater than 80 percent). Figure 6. NRI and HDI, 2003 NRI value 7 6 5 4 3 2 1 0 0.4 0.5 0.6 0.7 0.8 0.9 1.0 HDI value Source: UNDP (2003c), Dutta, Lanvin and Paua ed. (2003) If ICT are appropriately deployed by the users, governments, Box 2. Targeting the Poor civil society, and donors to take into consideration people's differing needs, they can become powerful economic and Although the poverty line in Brazil dropped sharply political tools for the poor. Policies and projects targeting in the mid 1990s, there still exists a "hard core" of 40 poverty reduction and involving ICT may promote million people (nearly a quarter of the population), who live on less than half the minimum wage of opportunities for poor people by (1) providing information 240 reais (US$80) a month. The government-linked about access to resources and managing them efficiently, (2) Institute of Applied Economic Research estimates 63 stimulating economic growth and reducing the digital divide, the number of those in extreme poverty (lacking the (3) educating citizens about their rights and helping them to money to feed themselves properly) at 23 million. voice their needs, and (4) facilitating political involvement. The government used information technology to These are all key ingredients of economic and political identify the needy and make sure that resources empowerment. reached them: beneficiaries collect their income "e-Readication" transfer from the bank through electronic cards. This Economic Empowerment not only reduces the scope for corruption or political favoritism, but also generates a stream of information overtyP RESOURCE MANAGEMENT that can be used for designing, targeting, and 3 Resource management aims at influencing the use and monitoring programs. distribution of assets. A more poor-supportive distribution The government wants to boost spending on income Chapter of assets would not only increase the income of the poor, but support next year by up to 1.5 billion reais. The goal is also their aggregate growth (see Box 2). ICT's relevance lies in to eradicate hunger in Brazil by the end of 2006. managing resources (e.g, humanitarian aid in emergencies) as well as in providing information about access to resources Source: After The Economist vol. 268 no. 8337, page 31­33 (August 16, 2003) (e.g., micro-credit, credit schemes, land allocation). In a knowledge-based economy, the distribution of information via ICT is strategically important. GROWTH in the level of ICT capital, and through growth of TFP in While growth is not all that is required to improve equality, ICT production. Empirical results also show that, during it can be argued that growth-enhancing policies generally the 1990s, the contribution of ICT to economic growth benefit the poor.10 through these two channels increased in a significant number of countries. The most diffusive and profound long-term The contribution of increased ICT production and utilization effects--namely the productivity growth arising from to economic growth appears significant. A recent survey reorganization of production and creation of new products, on this topic by Qiang and Pitt (2003) suggests that ICT is markets, and operations around ICT goods and services-- contributing to labor productivity through both increases appear to be spreading, particularly in some sectors such as transport, tourism, financial services, and retail. INEQUALITY AND REDISTRIBUTION processes that shape their lives. Moreover, poor people Developing countries need to capture growth opportunities. and communities are often isolated and lack means to take However, gains from national growth do not automatically collective action. The disadvantaged cannot assert their rights trickle down to benefit the poor. A well-balanced development unless they are organized. Thus, the notion "organization strategy should seek to target more directly opportunities for is power" carries as much weight as "knowledge is power" the poor and marginalized groups in the society. (see Gerster and Zimmermann 2003). ICT have a great deal of potential for increasing the efficiency of organization.11 The distribution of the welfare gains from ICT is a subject Local communities and civil society can play a critical role in of debate among both academics and practitioners. Critics enabling the poor to access relevant information and tools have pointed to the emergence of a "digital divide" between for communication with others, making their own choices, the information "haves" and "have-nots." In contrast to most articulating their interests, engaging in social learning, and free market advocates, critics of globalization claim that ICT having more decision power over their lives. could exacerbate the extremes of wealth already observable in the world economy and increase relative, if not absolute, POLITICAL PARTICIPATION/LOCAL EMPOWERMENT poverty. The probability of exclusion is seen as high and the Local empowerment and the redistribution of political power implications significant. are aimed at introducing social change and making poverty reduction sustainable. Political participation is now being At present, data are not sufficient to support any firm redefined by the use of multi-way communications, through conclusions as to whether ICT is diminishing or increasing electronic and non-electronic ICT networks. Information and income inequalities at the national level. But there is country- communication flow both vertically (top-down and bottom- level anecdotal evidence in some developing countries that up), and horizontally (between networks, communities, and highlights a growing urban-rural digital divide and inequality, individuals). with economic opportunities being unevenly spread (see Qiang and Smith 2003). Using ICT, governments can improve the quality and responsiveness of the services they provide to their citizens, Political Empowerment coordinate among various agencies, and expand the reach and There are also non-economic dimensions to ICT. accessibility of services and public infrastructure. Citizens are 64 Communication is a basic requirement of social interaction. encouraged to participate in the democratic process through The key lies in determining the crucial information and ICT mechanisms such as electronic forums and bulletin communication needs of the poor and how communication boards, which enable participation in public discussions. This can address such quality-of-life issues as social exclusion, is especially relevant for marginalized communities and groups marginalization, isolation, alienation, humiliation, such as rural citizens, women, and ethnic minorities, who can exchange information of mutual interest, share knowledge "e-Readication" vulnerability (to external shocks and internal conflicts), and insecurity (the risk of being subjected to physical violence on best practices, strengthen their collective power, and shape overtyP because of social status, gender, or ethnic identity). Because their own development solutions. This gives the citizens a greater sense of ownership in decision-making processes. 3 of the particular issues they face as a result of their poverty, poor people need additional support in terms of physical and economic access to information. Reaching the MDG Requires Both Money Chapter and Efficiency Pro-poor policies should not only take a "do no harm" approach to ICT strategies, but should be proactive. Policies In order to reach the targets set by the MDG, countries need to include specific objectives and indicators, such as the can either increase the resources they allocate to specific promotion of universal access to ICT, and the adaptation of objectives, or increase the efficiency with which they use their ICT applications to local needs and conditions, including available resources. At the core of the discussion about ICT languages and cultures. For instance, if private industry were to be the starting point in the telecom sector, strong conditions and commitments would be required to ensure Figure 7. Financing MDG: Resource Allocation and Efficiency that supply also goes to rural districts and to the poor. RIGHTS AND CHOICES Allocation of resources T Development is also about fulfillment of entitlements and to sector i (MDG) rights. Lack of efficient information and communication Impact on sector i processes makes public institutions slow and unresponsive, (MDG) and shifts much of the burden of transactions onto citizens, particularly the poor. The latter do not know their rights and Increased efficiency in delivering choices and lack knowledge of the political and development sector i (MDG) Figure 8. Efficiency in Deliverying MDG: Introducing the ICT Factor Impact on MDGi/output of sector i Production frontier (Yi= f(xi)) yi yi xi Investment in MDGi/input into sector i and MDG is the question of whether ICT can contribute to allocation to the ICT sector, xT on the other hand, the improving efficiency in delivering the MDG. following chain of causalities is generated (see Figure 9 below). This simplified model can be translated into the following set The Jayasuriya-Wodon Model of equations: As Ruwan Jayasuriya and Quentin Wodon (2003) remark, (resource allocation frontier) efficiency in delivering a particular MDG12 can be measured xi xT + = T 65 as the ratio between "actual delivery" and "optimal delivery" y'i = f (xi xT), where y'i is the output generated in sector i by , (see Figure 8, in which yi = f (xi), where yi is the output allocating xi to the sector and xT to ICT generated in sector i by allocating xi to the sector). Graphically, we now have to consider three dimensions: two If, however, one introduces the possibility of allocating are contained in the resource allocation plane (between sector available resources (T) between a direct allocation to sector i and ICT), and the third one allows us to represent the final "e-Readication" i (e.g., health or education), xion one hand and a partial impact on sector I and its corresponding MDG. (See Figure 10 on next page.) overtyP 3 Figure 9. Investing in ICT to Reach MDG Chapter Allocation of resources T to sector i (MDGi) and ICT Allocation of resources Allocation of resources to xi to ICT to sector i Non ICT-related ICT-related increased efficiency increased efficiency in in delivering in sector i delivering in sector i Increased efficiency in Impact on sector i delivering in sector i Figure 10. Investing in ICT to Enchance Efficiency in Delivering in MDG Impact on MDGi Production frontier (Yi= f(xi, xt)) y'i yi Resources allocated to ICT Ti xt Resource frontier (xi + xt = Ti) xt Ti Resources allocated to Sector i/MDGi This way of representing ICT investment as a source of 1. A conceptual frame of reference with which decision 66 increased efficiency in pursuing MDG 2 to 7 (and hence 1) and policymakers can (1) get the big picture, (2) identify opens a number of policy and strategic avenues. Additional causalities between their actions and anticipated effects, efforts will be required from statisticians and econometricians and (3) choose the political paths, relative emphases, to help quantify the relevant elasticities and dynamic linkages and sequencings according to which they want their between various variables, which may vary from one country own actions and those of their partners (public and "e-Readication" to another. International efforts are hence required to collect private, local or not) to be organized. Such a framework relevant data at the local, regional and global levels. should in particular provide examples, references, and overtyP methodologies for estimating the effects of higher 3 investments in ICT on various social and economic Conclusion: The Measure of All Things objectives (including the MDG). Chapter Over the last few years, policymakers have paid increased 2. A set of "scorecards" with which policymakers, local attention to ICT and the extent to which it can help to players, and international observers and contributors achieve the MDG while also fostering inclusion and equity. can (1) measure13 the efforts made at different levels of The international community currently has at its disposal a decision-making, (2) evaluate their impact along the rare combination of tools to turn the information revolution chain of causalities contained in the framework described into a powerful instrument to fight poverty and inequality at above, and (3) attract attention and mobilize energies the global level. This combination consists of (1) an agreed- and support whenever any "missing link," sluggishness, or upon framework of references (the MDG and their related imbalance is identified that might imperil the pursuit of targets), and (2) a higher level of awareness among decision established objectives (including the MDG and ultimately makers of the economic and social importance of ICT. So, poverty eradication). what is missing to trigger action and generate impact at the 3. Feedback mechanisms through which the intensity of policy level ? efforts made (in particular at the local level) by the The analysis and discussion provided in this chapter and public and private sector to promote ICT as a tool for elsewhere in the Global Information Technology Report development and growth can be valued and rewarded. indicate that the additional key ingredients necessary include In the broad context of the pursuit of the Millennium the following : Development Goals, these elements can be schematically included in the following diagram : Figure 11. The Roles of Policy Decisions and Scorecards in "e-Readication" Scorecard A B C D Scorecard Scor A Health Scorecard A Scor CBAecardScoArecard BAecardScorecard B DScore B Scorecard C CBA cardSCcoAr DCB BAecard A D DCB B ect Education Scorecard DC A DC C D B D D Dir C D Environment Impact on MDG 2 to 7 Allocation of resources Scorecard A B C Legal/regulatory D Scorecard Scorecard A A ect B B C Policy Decisions Infrastructure C D D (Efforts to reach MDG) Indir Scorecard A B Impact on Poverty ICT (MDG 8) C Reduction International D (MDG 1) Regional National Scorecard A Local B C Scorecard A D Scorecard A B B C C D D Trade Partnerships & processes E-Maturity opportunities (MDG 8) (MDG 8) and Scorecard job creation A B C D Indicates an area/objective for Efficiency & competitiveness which scorecards will play a key role in ensuring feedback effects gains (MDG 8) for policy decisions IDENTIFYING THE RIGHT PLAYERS AND GIVING THEM economic fields. They will also have to be user-friendly so that 67 THE RIGHT TOOLS governments can make use of them in budget discussions and As the world prepares for the World Summit on the business leaders can relate them to their bottom line. Information Society (WSIS), an opportunity and a challenge arise. How will the international community provide the This is definitely a tall order, and one that will require necessary "scorecards," giving them the credibility and significant efforts and attention in the coming few years. It legitimacy they require to be effective tools for policymakers? is also one in which all members of the information society "e-Readication" Identifying the right "issuer" of such scorecards will be have a role to play. The more we all know about the ways in an important and difficult exercise. Such an issuer should which e-readiness and e-maturity can contribute effectively overtyP 3 combine a rare set of qualities including (1) technical to poverty eradication, the faster we shall be able to move competence, (2) acceptance among all users of such towards the building of a vibrant, open, and equitable scorecards (governments, international organizations, information society. As its name suggests, poverty Chapter business, and civil society), and (3) the visibility and e-readication may very well be a shortcut to this destination. outspokenness necessary to make such scorecards a universally accepted reference and support for action. The Global Information Technology Report and its various "e-maturity" indices are among the better recognized tools for assessing how ready national economies are to benefit from the information revolution and the emergence of a global networked economy. Improving its country coverage and refining its methodology will be necessary and other statistical and econometric tools will be required in order to offer the complete set of scorecards that decision and policymakers will need to justify their decisions to do more and better in the field of information technology. Such tools will need to be sophisticated enough to reflect the complexity of the direct and indirect effects of ICT on various social and Appendix. Some Initiatives Illustrating the Link Between ICT and Sectoral MDG Initiative and Application Model Impact EDUCATION · By 2000, over 5,300 primary and secondary schools had Enlaces--Chilean ICT in Education Initiative received computers, local networks, educational and productivity software, and free/unlimited Internet access. In 1990, the Chilean government embarked on a major educational reform program, known as Enlaces. It included an · Also by 2000, 70,000 teachers (50 percent of all teachers) initiative to integrate ICT as learning and teaching resources had received technical training. Enlaces had reached for all students and teachers within the public school 90 percent of the student population attending state- system. Enlaces began as a pilot project interconnecting 100 subsidized institutions. schools and by 1995, became a nationwide initiative. The hallmark of the program is to provide both connectivity in the classroom and training and support for teachers. http: //www.mirandanet.ac.uk/ftp/enlaces.pdf GENDER · The training course includes 280 instructional hours over a Training for African Women in Internet Working Technology six-month period, and leads to independent certification as is a training course for African women offered at the a Certified Networking Associate or a Certified Networking Information Technology Center of the United Nations Professional. Economic Commission for Africa (UNECA) in Addis Ababa, · In addition to networking courses, participants take part Ethiopia. The training course, sponsored by infoDev, Cisco in training on gender and development, entrepreneurship, Systems, and UNECA, aims to increase opportunities for and management for African women. African women to enter the field of ICT and to empower women through entrepreneurship and management training. http://wbln0018.worldbank.org/ict/projects.nsf HEALTH · This project connects traditional rural community health RESCUER (The Rural Extended Services and Care for Ultimate providers with a cost-effective formal health delivery Emergency Relief ) was initiated by the Ugandan Ministry of system that provides responsive maternal health care. Health, UNFPA, and the Uganda Population Secretariat in 1996. Its objective is to improve maternal health within the · Three years after project implementation, a study sample country, where the maternal mortality rate (506 per 100,000) of the Iganga district concluded that the maternal is one of the highest in the world. Due to the unavailability mortality rate had decreased by nearly 50 percent of electric power in most rural areas, lack of fixed telephone lines and 24-hour service requirements, radio technology was 68 employed via fixed base stations, mobile walkie-talkies, and vehicle radios. ENVIRONMENT · The website receives an average of 300,000 hits per month SIDSNet is a medium of communication for 43 Small from over 100 countries, including donors and SIDS. Island Developing States (SIDS) on common issues such as biodiversity, climate change, coastal and marine management, · The site contributes to the increasing level of awareness "e-Readication" energy sources, and trade. It is promoting the sharing of SIDS and understanding of the link between the environment experiences and the development of the global SIDS agenda. and human development among SIDS decision makers. overtyP http://www.sidsnet.org/ 3 Source: World Bank (2003) Chapter References Dutta, S., B. Lanvin, and F. Paua eds. 2003. Global Information Technology Report 2002­2003. New York: Oxford University Accenture, Markle Foundation, and United Nations Development Press. Programme. 2001. Creating a Development Dynamic: Final Report of the Digital Opportunity Initiative. Online. http: Flore, A. G. 2001. "ICT and Poverty: the Indisputable Link," //www.opt-init.org/framework/pages/contents.html Paper presented at Third Asia Development Forum on Regional Economic Cooperation in Asia and the Pacific, Asian Avgerou, C. 1998. "How Can ICT Enable Growth in Developing Development Bank, Bangkok, June 11­14, 2001. Online. Countries," Information Technology for Development 8, pp. http://www.worldbank.org/html/extdr/offrep/eap/eapprem/ 15­28. infoalexan.pdf Bedi, A. S. 2001. "The Role of ICT in Economic Development--A G-8 Digital Opportunity Task Force (DOT Force). 2001. "Digital Partial Survey," ZEF Discussion Paper on Development Policy Opportunities for All," final report of the DOT Force No. 7. Bonn, Germany: Center for Development Research presented at the Genoa G-8 Summit, July 2001. Online. http: (ZEF). Online. http://www.developmentgateway.org/download/ //www.dotforce.org/reports/DOT_Force_Report_V_5.0h.html 164685/zef_dp7­99.pdf Gerster, R. and S. Zimmermann. 2003. "Information and Dollar, D. and A. Kraay. 2001. "Growth is Good for the Poor," Communication Technologies (ICT) for Poverty Reduction?" Policy Research Working Paper No. 2587. Washington, D.C.: Swiss Agency for Development and Cooperation Discussion The World Bank. Online. http://econ.worldbank.org/files/1696_ Paper. Online. http://www.gersterconsulting.ch/docs/ICT_for_ wps2587.pdf Poverty_Reduction.pdf Kenny, C., J. Navas-Sabater, and C. Qiang. 2002. Chapter 24. United Nations Information Communications Technology (UNICT "Information and Communication Technologies and Poverty." Task Force). 2003. "Using ICT to achieve the MDG," Paper In A Source Book for Poverty Reduction Strategy Paper. presented by Richard Simpson (Canada) at the Fifth Meeting of Washington, D.C.: The World Bank. the UNICT Task Force, Geneva, September 2003. Nagy, H. 2003. "Why ICT Matters for Growth and Poverty World Bank. 2003. "ICT and MDG: The WBG Experiences." Reduction." Mimeographed, the World Bank. Online. Mimeographed, the World Bank. http://www.developmentgateway.org/node/133831/sdm/ docview?docid=510867 Endnotes infoDev. 2002. Annual Report. Washington, D.C.: The World Bank. Online. http://www.infodev.org 1 The MDG and associated targets come from the Millennium Declaration signed by the representatives of 189 countries, Jayasuriya, R. and Q. Wodon. 2003. "Efficiency in Reaching the including 147 Heads of States, in 2000. The eight goals (see Box Millennium Development Goals," World Bank Working Paper 1) represent a partnership among the developed countries, the No 9. Washington, D.C.: The World Bank. developing countries, and international agencies determined, as the Declaration states, "to create an environment--at Lanvin, B. 2002. "La fracture numérique n'est pas une fatalité." the national and global levels alike--which is conducive to In J.F. Soupizet and L. Gille, eds., Nord et Sud Numeriques development and the elimination of poverty" (see Box 2). (Les cahiers du numérique 2, no. 3­4, 2001). Online. http://www.lavoisier.fr/fr/livres/index.asp?texte=2746204120& 2 As defined in The Global Information Technology Report select=isbn&from=Hermes 2002­2003, page 9. Addressing the Joint OECD/UN/World Bank Global Forum on the Knowledge Economyntegrating Lanvin, B. 2003. "Leaders and Facilitators--The New Roles of ICT in Development Programmes (Paris, 4­5 March 2003), Governments in Digital Economies." In S. Dutta, B. Lanvin, Jean-François Rischard, Vice-President of the World Bank, and F. Paua, eds., Global Information Technology Report recalled that there are at least three ways in which ICT can be 2002­2003. New York: Oxford University Press. Online. http: mainstreamed in development, namely (1) integrating ICT in //www.weforum.org/pdf/Global_Competitiveness_Reports/ topical development solutions, (2) integrating ICT in overall Reports/GITR_2002_2003/Leaders_and_Facilitators.pdf development solutions, and (3) integrating ICT in advanced development thinking; he also noted that, although significant Marker, P., K. McNamara, and L. Wallace. 2002. The Significance progress had been made on the first of those three elements, of ICT for Reducing Poverty, Department for International much remained to be done on (2) and even more about (3). Development. Online. http://www.dfid.gov.uk/Pubs/files/ict_ poverty.pdf 3 This implies that the ICT targets of MDG 8 (telephony and Internet connectivity) should not be considered in isolation. It Organization for Economic Co-operation and Development also reflects the growing consensus that the so-called digital (OECD, 2003). "How ICTs Can Help Achieve the Millennium divide is less about equipment and connectivity than about 69 Development Goals," Table presented at meeting on content, applications, and the ability of local communities to Integrating ICT in Development Programmes. Online. http: create and derive socio-economic value from the use of ICT. //www.oecd.org/dataoecd/54/4/2500199.xls 4 Network externalities are considered to be generated when, as Pilat, D. 2003. "Digital Economy--Going for Growth," OECD the total number of connections increases, the average benefit Observer 237. obtained from connecting to the network also increases. Metcalfe's Law states that the usefulness (or utility) of a "e-Readication" Qiang, C. Z.-W., A. Pitt, with S. Ayers. 2003. "Contribution of ICT network grows with the square of the number of its users. to Growth," World Bank Working Paper. Washington, D.C.: the World Bank. 5 As described, for example, by Avgerou 1998. overtyP 3 Qiang, C. Z.-W. and P. L. Smith. 2003. "Digital Divide in China." 6 See DOT Force (2001), infoDev (2002) and UNICT Task Force Mimeographed, the World Bank. (2003) for example. This chapter's appendix lists some examples of the positive transformational impact of ICT in Chapter Samiullah, Y. and S. Rao. 2003. Role of ICTs in Urban and each of the social sectors. Rural Poverty Reduction. Department for International Development. Online. http://www.teri.res.in/icteap/present/ 7 The human development index is a composite index measuring session4/sami.doc average achievement in three basic dimensions of human development--a long and healthy life (as measured by life Steinberg, J. 2003. "Information Technology and Development expectancy at birth); knowledge (as measured by the adult Beyond `either/or'," Brookings Review 21, no. 2, pp. 45­48. literacy rate and the combined primary, secondary, and tertiary gross enrollment ratio); and a decent standard of living (as measured by GDP per capita). United Nations Development Programme (UNDP). 2003a. "The Role of ICT in Enhancing the Achievement of Millennium Development Goals," A Contribution to the Work of 8 The networked economy index is a composite of three Millennium Project, Task Force 10 on Science and Technology. components: the environment for enabling ICT; the readiness Mimeographed, UNDP. of a community's key stakeholders (individuals, businesses, and governments) to use ICT; and finally, the usage of ICT amongst these stakeholders. ------. 2003b. "ICT for Development: Elements of an Action Framework for Implementing the MDG," Discussion Paper, Task Force on Science, Technology and Innovation of the UN 9 IMF (2000). A research report by Dollar and Kraay (2001) Millennium Project. Online. http://infolac.ucol.mx/eventos/ analyzes 80 countries over the past four decades and concludes reunion-varadero/task_force.pdf that growth in the overall economy is reflected one for one by income growth for the poor (defined as the bottom one-fifth of the income distribution). See also Ferreira, (1999). Qiang and ------. 2003c. Millennium Development Goals: A Compact Among Smith (2003). Nations to End Human Poverty. Human Development Report 2003. Online. http://www.undp.org/hdr2003 10 In Kenya, for instance, a group of women used videos to raise their voices and inform the decision makers about their needs. See http://www.itdg.org 11 The Jayasuriya/Wodon study encompasses goals 1 to 7, its authors considering that Goal 8 is out of the scope of their analysis. 12 One could argue that measurement, which is always a delicate affair in economics and other social sciences, is particularly difficult in the field of ICT, where innovation is so fast-paced, and effects so unpredictable. One of the best possible answers to this worry has been provided by Ken Adler in his report of the odyssey of Jean-Baptiste-Joseph Delambre and Pierre- François-André Méchain, the two scientists sent by the French Revolutionary Government of 1792 to measure the earth and establish the legal length of the meter: "How do you measure the earth while the world is turning beneath your feet? How do you establish a new order when the countryside is in chaos? How do you set standards at a time when everything is up for grabs? Or is there, in fact, no better time to do so?" (from K. Adler, The Measure of All Things, Free Press, 2002 ). 70 "e-Readication" overtyP 3 Chapter Regulatory moves and evolving technology are reshaping the telecom landscape. Most affected are Bell companies such as Chapter 4 SBC. SBC lost customers for 1.8 million local phone lines (10 percent) from April 2002 through June 30 of this year Towards a (in California alone). They jumped to long-distance carriers and cable companies that barged into the local-phone business New Regulatory after state regulators made it far cheaper for outside companies to use SBC's network. Compact --The Wall Street Journal, August 13, 2003 Introduction Over the past decade, the telecom industry has been dramatically reshaped by the wave of liberalization and privatization that has swept across the world. State-owned monopolies have been privatized, and incumbent operators have had to cope with substantial price declines and losses in their shares of key markets such as long distance, international carriage, and data services. In many market segments, incumbents' market shares have dropped to below 50 percent. This has been accompanied by the explosive growth in mobile penetration and usage--in some countries, mobile voice traffic has surpassed that of traditional fixed- line networks and in many countries, mobile penetration is greater than fixed. However, despite these changes, one area has remained firmly dominated by incumbents: the "last mile" of access to the vast majority of users. Even in countries that 71 have seen liberalization here, such as the United States and the Scott Beardsley, Ingo Beyer von United Kingdom, there has not yet been any substantial dent Morgenstern, Luis Enriquez, in local operators' market share--until now. Compact and Walter Verbeke As the cited Wall Street Journal excerpt notes, incumbent McKinsey & Company providers are beginning to see their last-mile market Regulatory share erode, driven by two forces. Technology has allowed New cable networks to capture increasing shares of broadband a subscribers and of telephony subscribers. Technology has also ards increased infrastructure availability and reduced the price of owT mobile calls, driving latent demand as well as substitution of 4 both traffic and access (particularly in developing countries). Regulators have provided a second impetus to these forces by Chapter pushing incumbents to open their fixed networks to entrants at relatively low costs. These two forces support several major trends that are slowly eroding incumbents' dominance and will transform the industry in the coming years. This chapter describes four trends in the telecommunications (telecom) industry that will have a tremendous impact on the future of the industry and its key stakeholders: fixed-mobile substitution, increasing competition in fixed-access, take-up of voice-over-IP (VoIP), and growth of broadband access. In the medium term, these trends will gradually but significantly alter the traditional fixed-telephony business model. Regulation will Thanks to Nicole Kozera Almonte and Wim Torfs of play a key role in determining the pace of these trends and the McKinsey & Company for researching the facts supporting freedom that incumbents will have to respond to them. the findings of this chapter. Successfully managing the evolution of these trends the evolution of the sector and determine the rate at which requires that key industry stakeholders address four the sector is able to generate further economic benefits. critical dimensions: a regulatory shift towards focusing on 5. There are four regulatory dimensions in which stakeholders the economics of telecom players; the variation between such as operators, regulators, and policymakers need to national structures in terms of starting conditions and work in order to manage these industry trends successfully network readiness; the constraints to change; and the and be better prepared for a reshaped industry: tailoring of the regulatory approach such that it offers mutually consistent solutions for governments, society, and Regulation has to ensure that business decisions by telecom operators. players can be based on business economics. Regulatory change should be a function of market and This chapter contains several key points, outlined below: starting conditions and can therefore be expected to 1. Four major economic trends will substantially reduce the vary by country. overall importance of incumbent-provided traditional Constraints to regulatory change should be recognized voice telephony: and understood. Fixed-mobile traffic and access substitution will Regulatory approaches should be tailored towards continue. However, the degree of substitution will mutually consistent solutions. substantially vary by country, as it is primarily driven by relative fixed/mobile penetration and corresponding The first section of this chapter summarizes those trends that price differentials. are having the greatest impact on the traditional telephony Incumbents' losses of market share in PSTN (public voice model and outlines their underlying economics. The switched telephone network) fixed-access to cable second section outlines the role of regulation in setting and LLU (local-loop unbundling) attackers remains the pace of these trends. The final section defines the four relatively small with a few exceptions but could increase critical dimensions within which operators, regulators, and significantly in certain countries, particularly in North policymakers will need to work in order to manage the America and, to a lesser extent, the United Kingdom, trends successfully. Supporting case studies and insights are the Benelux countries, and other upgraded cable drawn from McKinsey's extensive experience serving major 72 environments. stakeholders within the telecom industry. VoIP is poised to take off and could have a significant impact on the volume of PSTN voice traffic in the Four Trends Reshaping Traditional Voice Compact medium term, especially in countries with high Telephony broadband penetration. Traditional fixed-line, incumbent-dominated networks Regulatory The growth in broadband will reshape the revenue are coming under increasing pressure. Four trends in model for both incumbents and attackers in the particular will substantially reduce the overall importance New a medium term but could also prompt new regulatory of incumbent-provided traditional voice telephony, each intervention to support wider adoption. adding approximately 1 to 2 percent annually to the ards owT erosion of incumbents' access lines. As a result, incumbents' 2. Together, these trends will have a substantial effect on 4 narrowband access lines now account for nearly 83 percent industry structure, despite the fact that the impact of each of the total in the United States and in those European individual trend is moderate. Although this impact will countries at the highest risk of share erosion. As Figure 1 Chapter vary by country, the countries at highest risk could see indicates, by the end of 2007, estimates suggest that less their share of traditional voice-line access decline from than half of fixed access lines will be incumbent-provided 83 percent today (end of 2002) to less than 50 percent by narrowband voice. This is a major evolution in the the end of 2007. traditional fixed-line access model that will fundamentally alter the economics of the business and put significant 3. Broadband penetration is becoming significant in many pressure on prices and costs for all players, thereby placing countries, some of them achieving household penetration substantial value at risk for all stakeholders in the industry. rates of more than 50 percent. However, penetration growth will probably level off, since consumer spending on telecom is limited and prices are not likely to come down The "death of a thousand cuts" can be broken down into four very quickly. key trends, as outlined below: To date, fixed-mobile traffic substitution has mostly 4. Regulation will have a major influence on the extent of the affected voice traffic in advanced countries as mobile impact and will determine a substantial allocation of value networks have become ubiquitous and perceived price among key industry players and consumers. This will shape differentials between fixed and mobile considerably Figure 1. Substantial Erosion of the Traditional Fixed-Line Incumbents' Market Share in Voice Total number of fixed-access lines (narrow- and broadband) in US, UK, Spain, Germany, Japan, Belgium 1998 100% = 270 million lines 2002 100% = 333 million lines 2007* 100% = 438 million lines possible scenario in percent in percent in percent 3 9 12 8 29 48 97 83 11 Incumbent narrowband Competition narrowband Broadband VoIP Sources: ECTA; Analysys; Ovum; regulators; company data; McKinsey analysis decline. In addition, more countries are seeing access encouragement can push broadband penetration well substitution starting to emerge, driven primarily by the beyond expected saturation levels. growing traffic substitution. In developing economies, mobile infrastructure is in many cases leapfrogging In a number of countries, these four trends threaten to ahead of fixed, rapidly fulfilling latent demand and put significant value at risk, particularly for incumbents, suppressing the building of a fixed network. depending upon market structure, starting position, and the regulatory environment. Given the interrelated and mutually 73 Attackers' market share of fixed-access remains rather reinforcing character of these trends, their combined effect limited--usually around 5 percent. This is mostly due to could still be significant in an even wider group of countries. the regulatory conditions of LLU and cable penetration. An initial assessment, shown in Figure 2, indicates that Compact However, in the United States and the United Kingdom, certain high-risk countries may experience an extremely fixed-line attackers have managed to capture roughly 13 significant impact of a particular trend in the next five years: percent of the local-access market. · In the Czech Republic, fixed-mobile substitution could hit Regulatory Thus far, VoIP take-up has been in the business an incumbents' EBIT (earnings before interest and taxes) segment, driven by the cost savings offered on New by more than 40 percent. a internal company calls. In Europe, nearly one-fifth of enterprises already use VoIP, with Spain (24 · In the United States, competition on local PSTN ards percent) and the United Kingdom (22 percent) having access could remove between 40 and 80 percent of an owT 4 an especially high take-up. In addition to further incumbent's EBIT, depending upon the type of customer. business-user growth, a major breakthrough in · In the United Kingdom,VoIP telephony could represent 8 residential usage seems very likely, as significant cost Chapter percent of total voice-market revenues. savings could make VoIP very attractive. · In Japan, broadband penetration could reach up to 80 Broadband penetration has been growing steadily, percent, 55 percentage points more than today. primarily among higher-income households, reaching levels of 20 to 30 percent in higher-adoption countries In most of the medium- and lower-risk countries, no such as the United States, Canada, Japan, Sweden, and individual trend is likely to have the degree of impact shown Benelux. At today's prices, broadband growth is likely above. However, as illustrated in Figure 3, the four trends are to slow down as penetration reaches 45 percent in interrelated, and it is likely that they will often reinforce each the United States and 15 percent in Europe (although other. The resulting effect could, therefore, still be important many richer European countries are likely to see a and put substantial value at stake. much higher leveling-off point), as it is still relatively expensive (USD 30 to 50 per month). However, South VoIP growth and broadband are certainly mutually Korea's 66 percent penetration level demonstrates that reinforcing. VoIP-related services are more attractive over a comprehensive policy of supply support and demand broadband access and will increase the attractiveness of Figure 2. Impact of Trends Varies Substantially, Putting Significant Value at Risk in Some Countries Trend Description Potential impact in highest-risk countries Example market Unit Amount at stake (%) % of PSTN 1 Voice-over-IP Significant savings via VoIP over UK 8 growth broadband over existing PSTN residental voice line or upgrades to IP-terminal market revenues in 2007 % of EBIT 2 Fixed-mobile Voice traffic shifts from fixed Czech 43 substitution to mobile, and access lines are Republic of fixed switched off or not installed business in 2005 % of EBIT 3 Competition on Incumbents lose most profitable US 40-84 local fixed-access customers through cable and of fixed LLU competition business in 2007 % of household 4 Broadband Achieving Korea's levels of EU penetration by increasing market 25-30 households' willingness to penetration spend on broadband in 2007* Source: McKinsey analysis Figure 3. Trends Are Interrelated, in Many Cases Reinforcing Each Other VoIP growth Cost and relative price "Killer" application Penetration 74 Penetration Customer acquisition Compact Fixed-mobile Functionality Broadband substitution differentiation Regulatory Economics of attackers New Competition and relative price Competition a ards owT Access competition 4 Source: McKinsey analysis Chapter broadband to some users, thereby pushing deeper broadband The increasing substitution of mobile telephony for both penetration. Consequently, increasing broadband penetration traffic and access substantially reinforces overall access could swell the potential pool of VoIP users. This, in turn, competition. Finally, fixed-mobile substitution and could increase savings to all other VoIP users, since VoIP- broadband could potentially reinforce each other on the basis to-VoIP could be very low-cost, thereby prompting further of functional differentiation, whereby data-related services penetration of residential VoIP. VoIP also mutually reinforces would use broadband, while voice-related products would access competition, as VoIP could be instrumental in helping use mobile technology, resulting in the further cancellation of operators acquire new customers. traditional narrowband access lines. Broadband and access competition are also mutually To understand these trends in greater depth, we will now reinforcing trends, since broadband can benefit attackers' tackle the underlying economics of each one in turn. economics and thereby support an attacker's distinctive value proposition. Fixed-Mobile Substitution the Czech Republic, and Finland having a high degree of substitution at between 36 and 51 percent of total potential In an increasing majority of countries, mobile-telephony fixed traffic. Countries such as Norway, France, and Spain, markets are maturing and mobile access is beginning to with between 15 and 25 percent, still experience medium exceed fixed-line penetration. In Europe, a recent newspaper substitution, whereas in countries such as the United article reported that average mobile penetration in the EU Kingdom, Sweden, and Germany levels remain below hit 80 percent, vastly exceeding the fixed penetration of 40 10 percent. to 60 percent of the population. With the ubiquity of mobile networks and the drop in perceived mobile-call prices The key drivers for traffic substitution in developed countries relative to fixed-line calls, increasingly large segments of users are high levels of mobile penetration and relative price have become used to making most phone calls on mobile differentials. These determine how often consumers have a telephones. Consequently, mobile telephony is completing choice between fixed and mobile (structural substitution); its transition from a premium niche product to a direct and, when given the choice, which technology they use mainstream substitute for traditional fixed-line voice traffic. (behavioral substitution). As shown in Figure 4, the degree of fixed-mobile substitution In countries with low fixed-line penetration relative to mobile varies considerably among countries, with Italy, Portugal, penetration, structural substitution occurs more often than in markets with relatively high fixed-line penetration, because consumers often have no choice but to use their mobile phones. In countries with low perceived price differentials Figure 4. Traffic Substitution Varies Substantially by Country between fixed and mobile, behavioral substitution also occurs Traffic substitution more often because consumers prefer to use their mobile Loss of fixed traffic to mobile as percent of total potential phones as they may be cheaper and are more convenient. Once fixed traffic, 2002 the "substitution wheel" starts to spin, it triggers an exponential trend (i.e., as mobile usage increases, the likelihood of High substitution preferring mobile over fixed grows), explained by a networking Italy % effect and the fact that even those who were initially attracted -51 only by price, start valuing the convenience highly. 75 Portugal -39 As Figure 5 demonstrates, there are also growing indications that fixed-mobile substitution is occurring, not only in traffic, Czech Republic Compact -36 but also increasingly in access, whereby the former drives the latter. This access substitution appears to be primarily Finland significant in lower-income countries where fixed-line -36 penetration was not that high to begin with. In Portugal, Regulatory Jordan, Malaysia, and the Czech Republic, for instance, fixed- New a Medium substitution line penetration effectively dropped over the past five years, in Norway the latter even by 5 percent, while it remained stable or even ards -25 grew in other countries. Mobile penetration, by contrast, has owT enjoyed relatively robust growth. 4 France -23 The more consumers use their mobile phones, the lower Chapter Spain the perceived value of their fixed line and the greater chance -15 that they eventually disconnect. The trend is exacerbated by high broadband penetration in countries such as the United States, where millions of customers have cancelled their fixed Low substitution line and use their mobiles for voice calls and broadband UK -9 for Internet access. The introduction and growth of VoIP telephony over broadband connections is expected to fuel Sweden even more access-line cancellations. -9 Germany The implication is that traditional fixed line voice infra- -6 structure investment is becoming increasingly unattractive and will need to shift to new services and technologies in 0 emerging countries, but such a shift may never happen. Sources: Regulators; McKinsey analysis Figure 5. Fixed-Access Stagnation or Decline Due to Figure 6. Loss In Fixed-Access Networks Remains Fixed-Mobile Access Substitution Relatively Small Developed countries Fixed competitors' market share in local access, 2002 Penetration (percent of population) US 100% 11.6 1.6 13.2 Portugal UK Mobile 75 12.8 Belgium 4.2 50 South Korea Fixed 11.6 3.6 25 Spain 1.6 1.8 3.4 0 Netherlands 0.3 100 2.4 2.7 Czech Republic Portugal 0.2 1.5 1.7 75 Mobile Germany 1.6 50 Fixed Japan 0.8 25 LLU 5% of access lines canceled in Czech Sweden 0.1 Cable Republic since 2000 0.4 Other (fixed-wireless access, satellite) 0 0.3 Split not available 1998 1999 2000 2001 2002 0 76 Sources: Regulators; Ovum; Analysys; company data; ECTA; Developing countries McKinsey analysis Penetration (percent of population) Compact 100% Fixed-Access Competition: A Limited, but Jordan Increasing Threat to 'Incumbents' Profits 75 Following the liberalization of many telecom markets, Regulatory attackers entered the fray. They typically acted as a New 50 service provider, using another operator's--usually the a incumbent's--network, or they operated their own network ards Mobile 25 on which telecom services are provided. In the latter situation, owT depending upon market and regulatory conditions, attackers 4 Fixed would employ LLU (Germany), upgrade cable networks 0 (e.g., Benelux and the United Kingdom), or use other access Chapter 100 technologies such as FTTX (fiber, ethernet to the building in Malaysia Italy and Sweden) and fixed-wireless access and satellite (e.g., 75 Italy, New Zealand, South Korea, and Sweden). As illustrated in Figure 6, attackers' market share in fixed-access 50 has remained rather limited, leaving incumbents with only Mobile minor losses in market share. The United States and the United 25 Kingdom are the exceptions--fixed-line competitors already Fixed hold 13 percent of the local-access market. In Europe and Asia, typical fixed-access market share losses to attackers have been 0 less than 5 percent. 1998 1999 2000 2001 2002 However, these relatively low percentages hide potentially Sources: Regulators; ITU; company annual reports; McKinsey analysis higher revenue and profit losses. Loss of access market share appears to be disproportionately concentrated in Figure 7. 40 to 84 Percent of Incumbents' Fixed EBIT at Risk If Losses Continue at Current Pace in High-Risk Countries Value at risk for fixed-line incumbents if . . . . . . 20% of customers with . . . 20% of customers with average ARPU lost high ARPU (top 30%) lost Retail revenues lost 11 21 Wholesale revenues gained 40% 2 84% 3 of EBIT of EBIT at risk at risk Reduction in costs 2 2 Total revenues at risk 7 16 Sources: Company data; Wall Street Journal; McKinsey analysis Figure 8. Business Can Capture Benefits of VoIP Today Savings on fixed-to-fixed voice traffic bill EUR per user, per year { 500 -34% Equipment investment International 45 payback within a year Internal calls National 105 150 329 21 77 { International 105 84 Compact External calls National 245 245 Regulatory New a ards Savings on Savings on Voice bill after internal calls external VoIP migration owT international 4 calls Sources: IDC European IP user survey; company data; McKinsey analysis Chapter urban and suburban areas where small businesses and high a partial replacement for PSTN telephony. As broadband average revenue per user (ARPU) customers represent a penetration, which is a key enabler to support high quality significantly higher share of incumbents' revenues and profits. VoIP connections, increases, the potential market for VoIP As illustrated in Figure 7, if share losses in access continue has grown. Initial assessments indicate that IP telephony at their current pace, based on average ARPU numbers, 40 could put up to USD 10 billion at risk for the traditional percent of an incumbent's EBIT could be at stake in high- incumbents by 2007. To date, VoIP has been adopted mostly risk countries. If the trend of higher-end ARPU customers by business customers, thanks to the savings it can offer on canceling their access line accelerates, this EBIT impact could internal company calls (see Figure 8). In Europe, VoIP has double to more than 80 percent. already penetrated nearly one-fifth of all companies, with Spain (24 percent) and the United Kingdom (22 percent) at VoIP: Gradually Eroding PSTN Telephony the high end. Finance and manufacturing, in particular, have been very quick to adopt, with the media and travel industries Following a number of years of uncertainty about its expected to migrate to VoIP in the near future. future, IP telephony finally appears poised to take off as Figure 9. VoIP Could Potentially Cannibalize Significant PSTN Revenues Broadband residential Average users that might switch monthly savings to VoIP PSTN revenue at stake US$ Percent of total by 2007 Billion US$ UK 2.8­4.2 8­11 0.5­0.7 Spain 2.7­4.0 5­7 0.1­0.2 Italy 2.5­3.8 5­8 0.2­0.3 France 2.2­3.2 4­7 0.2­0.3 Sweden 1.8­2.5 8­13 <0.1 US 7.2­10.7 18­23 4.3­5.5 Japan 2.6­3.8 19­26 2.0­2.7 Rationale Based on savings of 20­30% Assumes 50% of users to of traffic bills; could be whom VoIP is attractive higher if IP-to-IP connectivity and who have broadband obstacles are resolved will switch (e.g., 75% of Yahoo Japan DSL subscribers use VoIP) Sources: IDC; McKinsey analysis VoIP could offer population segments as well as broadband Figure 10. Broadband Penetration Grows Steadily, but Will 78 penetration, important discounts over the current voice Top off Unless Price/Value Perception Is Addressed telephony tariffs. However, growth is likely to be gradual Current penetration, 2003E Potential future penetration unless a major breakthrough in IP-to-IP connection is Households with broadband Possible saturation point Compact achieved. Without that breakthrough, the ability of a VoIP connection, 2003E at current price levels user to call another VoIP user is somewhat limited by the inability of the VoIP phone to recognize whether the Japan Regulatory 25 80 recipient of that call is an IP device. This would limit any US New savings to be gained by an IP-phone user, since in this case 28 45 a the call would most likely have to go through the more costly EU average ards PSTN network, thus limiting the adoption of VoIP among 11 25 owT broadband users. 4 Significantly higher current penetration in certain Assuming a breakthrough in IP-to-IP is realized, and EU member states, e.g., Sweden 23% taking into consideration the calling patterns of different Chapter Belgium 20% population segments, as well as broadband penetration of the Netherlands 19% those segments, an estimate was made of the number of users Sources: IDC; EU country indicators; McKinsey analysis by country that would benefit from using VoIP for some or all of their traffic. A determination of the market share at risk was then based on the assumption that half of those users would actually switch. Broadband: Growing Steadily or Leveling Out? An assessment, illustrated in Figure 9, indicates that Broadband penetration has been growing rapidly in recent dramatic changes would be likely in the United Kingdom, years, primarily among higher-income households. By the the United States, and Japan, where 10 to 20 percent of users end of 2003, broadband will have reached 20 to 30 percent could switch to VoIP. In terms of PSTN revenues, the value at of households in countries such as the United States, Japan, risk by 2007 would amount to USD 500 to 700 million in the Sweden, and Benelux. In South Korea, a staggering two-thirds United Kingdom, USD 4.3 to 5.5 billion in the United States, of households have broadband, while the EU average lags well and USD 2 to 2.7 billion in Japan. behind at just 11 percent. Figure 11. South Korean Example Shows Regulation/Government Policy Can Encourage Penetration Beyond Market Equilibrium Monthly cost of broadband connection (EUR), 2002 70 60 50 40 30 Expected South Korean Actual South Korean penetration of <20% penetration of nearly 60% 20 10 0 0% 20% 40% 60% 80% 100% 120% Households to whom broadband price < 1% of monthly disposable income (percent) Sources: EU country indicators; IDC; McKinsey analysis 79 Penetration is expected to increase in the medium term. to increase broadband beyond this level (and there may be, Compact However, broadband is relatively expensive, costing from once close to half of a country's subscribers adopt the service USD 30 to 50 per month. Therefore, early adopters have and applications such as VoIP grow), then a combination of tended to be higher-income households, but saturation will steps to support further supply and encourage demand would Regulatory be reached when this monthly fee becomes too expensive probably be needed. This is exactly what has happened in for the average household adopting it. If one assumes that South Korea (Figure 11). New a households would be willing to spend up to 1 percent of their income on broadband, then at current price levels, broadband South Korea not only subsidizes infrastructure (which is well ards penetration could rise to 80 percent in Japan, more than known and has resulted in broadband subscription prices that owT tripling the current penetration level. In the United States, are among the lowest in the world), but also promoted the 4 penetration could increase from 28 percent today to 45 take-up of broadband services (for example, by highlighting percent, while average broadband penetration in Europe the value of broadband or education and promoting personal Chapter would be expected to reach approximately 25 percent (Figure computers). This has resulted in a penetration of about 66 10) although levels could be much higher in some richer percent, higher than would be suggested by the underlying European countries. household incomes. The message is clear: in the foreseeable future broadband This example highlights the importance of comprehensive saturation levels will be far below the 100 percent of policies that address all aspects of broadband adoption. As households that have telephones today and may even fall saturation is reached, the easy way out for regulators is to below the number of households that could have access to a continue to push lower prices by forcing the incumbent broadband-enabled line. Over the next few years saturation telephone provider to offer cheap infrastructure to attackers. is likely to be somewhere between 10 and 50 percent for This does not directly address the willingness-to-pay issue most of the developed world--with Japan and South Korea (which is probably best tackled at a governmental level) as the exceptions. Beyond that point, broadband will simply and runs the risk of reducing, rather than increasing, be too expensive, particularly considering that a personal infrastructure investment. This is particularly important if computer is required as well. If there is a public policy desire there is a large cable infrastructure that can compete with the incumbent. If attackers get a good deal from regulated substitution, but also in a leapfrogging of technologies, as incumbent prices, this will reduce cable operators' incentive many users never acquired a fixed line but went directly to to push broadband everywhere. mobile. Fixed-line penetration was relatively low, so when growth in mobile penetration surged, fixed-line penetration Going forward, alternative technologies with broadband stalled and even declined. In Malaysia, fixed-line penetration performance such as 3G or 800.11 (Wi-Fi) may provide has fallen in the past two years and hovers below 20 percent, for their availability and penetration, particularly when while mobile penetration has reached 40 percent and is combined with per use, rather than fixed fee business models. growing rapidly. They will also be facilitated by the availability of alternative handsets or variants of personal assistant devices. But here This slowing of fixed-access growth has huge implications again, regulations governing licensing of spectrum and for incumbents in developing markets. Countries have wholesale conditions, among others will impact price levels always expected penetration levels to grow over time as their and thus affordability and penetration. GDP per capita increases. However, with rapidly growing mobile penetration, fixed-line penetration may not go much Regulation's Significant Impact on beyond its current levels and as a result, incumbents could be Outcome deprived of large revenue streams. Regulation will have a substantial, even defining, role to In such markets, regulators and policymakers can play play in accelerating or decelerating the pace of the trends a major role, but the appropriate course of action will previously outlined. There are a number of overarching depend on the objectives laid out for the sector. Applying critical regulatory areas that will impact the future evolution regulatory frameworks from developed countries could of these specific industry trends, which include licensing result in the mobile industry dominating the voice services conditions, LLU, retail-pricing flexibility, interconnection market, while fixed-line incumbents--especially those (mainly mobile termination), treatment of attackers without mobile subsidiaries--will continue to be heavily (primarily cable and VoIP), and cross-subsidy possibilities regulated, burdened with costly universal service obligations, in the industry. The following section addresses in further and faced with reduced economic surplus as liberalization detail how these and other regulatory factors will impact pushes prices down. This, combined with the flexibility of 80 each of the four major industry trends. mobile operators who can have more refined pricing and can acquire new customers quickly, could result in poor Fixed-Mobile Substitution financial performance or eventual bankruptcy for fixed-line Compact incumbents. The extent to which regulation will have an impact on fixed- mobile substitution will differ greatly by country. Severe economic hardship for fixed-line incumbents could well mean that no significant data infrastructure would Regulatory In developed countries, the primary lever for influencing be built up, given the lack of demand for the fixed-access fixed-mobile voice substitution is pricing--both end-user New network and the incumbent's inability to finance further a and interconnection rates. Regulators could allow fixed-line investments in its core network. If regulators want to avoid players greater flexibility in competing against their mobile ards such a scenario, they have three main options for doing so: counterparts by, for example, permitting incumbents to owT Support fixed-line. Preserve fixed-line incumbents' 4 bundle voice, mobile, and broadband services or by allowing the kind of "same network" on-net price discounts that solvency by treating fixed-line networks as a public mobile operators offer. In the mobile industry, regulators good, similar to roads and railways, and heavily Chapter could remove or reduce the cross-subsidy between "cross- subsidize the build-out of the access network. network" and "on-network" calls in European markets by This would ensure the development of basic data lowering the high mobile termination rate that currently infrastructure and would maintain some degree enables this subsidization. However, changing the mobile of competition between mobile and fixed-line termination rate could have negative implications for the technologies. fixed-line industry and thus a cost/benefit analysis would be Go fully mobile. Allow fixed-line incumbents to go needed for each country before any attempt to unilaterally bankrupt and rely on mobile operators to build-out lower termination rates. Finally, the licensing regime is likely the entire access network for both voice and data. This to affect the degree of competition in mobile, impacting would mean regulating the mobile industry similarly pricing and further influencing the degree of substitution. to the ways the fixed-line industry is regulated, that is, by introducing universal service obligations (USO) The situation in developing countries is very different. The and/or other means to ensure widespread build-out of increase in mobile penetration has not only resulted in a mobile data infrastructure (possibly including 3G) at generally accessible prices. Let the markets decide. Regulators could level the Share in local access, converting up to one-third of homes playing field between the two industries and let them with potential cable access into telecom fixed-access compete for customers. To improve the fixed-line customers. incumbents' ability to compete, regulators should balance the degree of regulation between the two The impact of regulation on fixed-access competition as a industries. This could be done by increasing price result of addressing LLU and cable will vary greatly by market: flexibility for the fixed-line sector, shifting some of In high-risk markets (those with high cable penetration the USO burden to mobile operators, or by applying and an LLU regime attractive to attackers) such as the equally stringent cost-based pricing obligations to the United States, the incumbents' share of access may mobile sector. continue to decline. Combined with fixed-mobile substitution in some markets, incumbent share access Fixed-Access Competition losses could reach 15 to 20 percent of access lines by Competition in fixed-access has been driven thus far by local 2007--enough to virtually bankrupt the incumbent. loop unbundling (LLU) and cable penetration. Depending Regulators could adjust wholesale conditions under upon the regulatory regime, substantial differences in which incumbents must provide access to their local the degree and type of fixed-access competition can be loop, as in the United States, where the LLU regime is identified. Other forms of access-based competition may discussed at the state level. However, there are other eventually come in the form of 802.11b and 3G deployments, regulatory levers to compensate for the revenue loss. or with the broadband wireless spectrum. The New Zealand These include such things as allowing for relative retail government, for example, has launched an initiative to use price increases. Increasing interconnection fees (as wireless broadband technology to serve rural areas. This will real costs per traffic minute used rise), unbundling allow the government to offer broadband for USD 30 per cable, and reconsidering the USO regime by expanding month to consumers. components to the cable industry. LLU conditions and prices have had a tremendous impact In medium-risk markets (those with high cable on attackers' economics. In the United States, for example, penetration but either an unattractive LLU regime or attackers can rent the entire platform--local-loop and strong incumbent driven broadband initiatives) such transmission/switching equipment--at TELRIC (cost as Belgium and the Netherlands, LLU could be made 81 methodology based on long-run incremental costs) prices. more attractive by lowering prices or shifting some of This results in an entirely variable cost (on a per-customer the cost burden to incumbents. This could be done, basis) for the attacker and leaves the incumbents responsible for example, through more attractive co-location Compact for the bulk of the costs for the required capacity increase. requirements or by giving attackers access to the entire In other words, attackers can enter the market gradually platform, as the United States does. Furthermore, without large upfront investments. As a result, the United competition through cable could be encouraged by Regulatory States has seen the greatest amount of competition through allowing operators to provide telecom services (as was LLU with up to 13 percent of unbundled local-access lines the case in Europe, following liberalization in 1998), New a now held by attackers. In Europe, attackers can rent just the subsidizing cable upgrades, deregulating (increasing) local loop as far as the main distribution frame, which means prices for cable television packages, or even taking ards they have to invest in switching and transmission equipment a share in the cable company to help finance the owT 4 for narrowband access at each local switch, regardless of the conversion of the cable network into a telephone initial traffic volume or number of customers. As a result, network. This last approach was used in Belgium, competition in local access has remained low in Europe and where the government-owned Flemish Investment Chapter is centered around broadband DSL-type services, where Company became a shareholder in the upgraded cable margins are tight but potential revenue streams are higher. networks in the northern part of the country. In low-risk markets (those with low cable penetration In parallel with LLU, attackers have entered the fixed- and unattractive LLU regimes) such as Spain and Italy, line market in countries with high cable penetration by regulators can encourage fixed-access competition by upgrading the cable networks, which allows cable companies changing the terms for LLU. Without fundamental to offer voice telephony. Nevertheless, substantial investment changes to the current offer, competition in fixed-access is still required (e.g., backbone, local nodes, switching, and is unlikely to develop. Fixed-mobile substitution could transmission equipment). The market potential may justify result in an alternative form of access competition it in selected countries. In the United States, Benelux, and and would lead to a certain loss of access lines in Canada (with high cable penetration) as well as the United some markets (e.g., Portugal and Italy). Alternatively, Kingdom (despite having only 30 percent cable penetration), government could consider direct public subsidies to cable providers have captured 13 percent of overall market promote alternative infrastructure. Going forward in all three rich markets, fixed access Another factor in the penetration of VoIP is the ability of competition will also be heavily influenced by the users to make IP-to-IP calls over a data network, thereby development of alternative wireless technologies such as completely bypassing the more costly PSTN network. This 3G, WCDMA, and 802.11, among others. Competition and occurs when IP customers have a special number or means infrastructure development can be spurred by attractive of identifying their number as IP, thereby avoiding routing licensing conditions and industry structure. Huge licensing through the PSTN network. A solution would be to assign an fees levied on 3G in many countries run counter to the IP address to all phone numbers in order to heavily promote goal of economically viable competition, but ongoing VoIP, for example through efforts such as e-num. VoIP decisions permitting infrastructure sharing, and ensuring customers would keep their traditional phone number, but MVNOs cannot ??? arbitrage rates will stimulate alternative receive the maximum IP-to-IP savings when they call other IP infrastructure growth. Low-cut licensing of the 802.11MHz phones. This approach is not feasible at present, in part due spectrum may also stimulate competition, if incumbents can to technology, in part due to regulation. Therefore, interim develop this spectrum as an alternative to 3G and extend the approaches must work around the difficulty of identifying a fixed network. receiving number as an IP phone. One approach would be to enable IP-to-IP calls, but route VoIP them through the PSTN network. This provides the flexibility If VoIP is to fulfill its potential, a number of key regulatory to call any PSTN or IP number, but does not give customers issues still need to be resolved. These concern broadband the full benefit of savings on all IP-to-IP calls. Another option penetration, interconnection, numbering, IP-to-IP calls, and is to allow IP-to-IP calls only within the customer's own IP interoperability with PSTN networks. network, as is done in Japan. Broadband access is the most critical enabler of VoIP A last critical enabler for VoIP telephony growth is the telephony, offering countries with high broadband interoperability with PSTN networks, that is, the ability to penetration the greatest potential. In some cases--Japan, for receive calls from PSTN networks on IP phones. Sweden and example--it is the demand for VoIP that will drive growth the United States have this ability already, and it is expected in broadband penetration. (Regulatory issues surrounding to be rolled out by the end of 2003 in Japan. In each case, 82 broadband will be discussed further in the following section interoperability was mandated by a regulatory body; without on broadband trends.) such mandates, interoperability appears very unlikely. There are several regulatory approaches to the These obstacles suggest that VoIP phones will probably grow Compact interconnection of IP networks and traditional PSTN gradually as the technological and regulatory obstacles are networks. VoIP providers can be treated as regular voice overcome. However, its dependence, at least for now, on providers, benefiting from relatively low interconnection broadband to ensure adequate quality of services means that, Regulatory rates and relying on standard incumbent reference unless mandated by regulators/governments, VoIP is unlikely interconnection offers, as, for example, in Sweden. New to fully replace PSTN phones in the near future. a Alternatively, regulators can require individual ards interconnection agreements (as in Japan and the United Broadband owT States) between VoIP providers and incumbents, although Broadband penetration has grown rapidly in the past few 4 this could result in lengthy negotiations and even potentially years, primarily driven by higher-income early adopters higher interconnection rates. Another option is to exclude and infrastructure-based competition, particularly cable. At VoIP from standard interconnection, treating it as a data Chapter current prices and perceived value, the broadband demand connection through nongeographic numbers, as in France. curve is expected to eventually level off as the high-income However, removing it from the scope of the strict traditional segment becomes saturated and broadband penetration interconnection regimes may lead to less attractive spreads further to medium-and lower-income households. conditions, including higher rates and customers having to adopt a nongeographic number. Countries at the top of the broadband penetration race-- South Korea, the United States, Canada, Singapore, Hong Numbering is another key regulatory issue. The ability to Kong, and Belgium, among others--have one attribute in keep a number is a critical switching factor for customers. common: robust infrastructure-based competition. Generally, As a result, customers are more likely to switch to a VoIP this competition comes from cable companies not owned by provider in markets with regulated VoIP number portability, the telcos that have aggressively upgraded their infrastructure. as is the case in Sweden. Assigning nongeographic numbers to VoIP services could impose an additional hurdle, since the Based on experience in several developed markets, households geographic character of the number is lost. This was the case typically cannot justify spending more than 1 percent of their in France and it resulted in lower VoIP take-up. disposable income on broadband, given that they do not spend more than 3 to 4 percent of their disposable income investment. This is particularly important if there is a large on overall telecom services. Using this metric, at current cable infrastructure that can compete with the incumbent. If broadband prices penetration growth could be expected to attackers get a good deal from regulated incumbent prices, slow down at approximately 25 percent in the EU (although this will reduce the attractiveness for cable operators to push strong variations exist by country), at 45 percent in the United broadband everywhere. States, and at nearly 80 percent in Japan. These differences are In many countries, however, there remains the challenge of driven by income levels and substantial price differences, with making broadband infrastructure available. In countries with Japan having the lowest average price of USD 20 and Europe a weak fixed line infrastructure that is under attack from the highest with USD 40. mobile and VoIP, the challenge is to create economically viable conditions under which broadband can be deployed. In many Increasing broadband penetration will probably require markets with low spending, or in rural environments that lowering prices, particularly in Europe. However, the may be unprofitable for fixed line deployment, it may require challenging industry economics make it unlikely that public sector funding and/or regulatory stimulus to achieve operators will be in a hurry to do so, unless forced by broad penetration or deployment of alternative wireless competition. Only the larger providers (e.g., incumbents) broadband technologies. may be able to reduce prices--and this only after justification by customer numbers and certain economies of scale (e.g., marketing and acquisition). The Critical Nature of Execution Along The increasing importance of broadband to reducing fixed Four Regulatory Dimensions line access churn for incumbents, combined with rapidly The previously discussed industry trends and their filling equipment prices, the need of government to show implications pose a potential economic threat to the top-line reserve growth, and pressure from regulators and traditional voice telephony incumbents. As illustrated in policymakers to achieve broadband and networked readiness, Figure 12, there are four regulatory dimensions in which mean that broadband prices will trend downward. stakeholders such as operators, regulators, and policymakers need to work in order to manage these industry trends Nevertheless, the example of South Korea indicates that there successfully and be better prepared for the reshaped industry: are other levers that can be used to attain higher broadband (1) regulation has to ensure that players' business decisions can 83 penetration. Two-thirds of South Korean households have be based on business economics, (2) regulatory change should broadband, which is three times the expected rate (based be a function of market and starting conditions and therefore on the 1 percent of household income constraint)--even vary by country, (3) constraints to change should be well Compact allowing for the fact that at just USD 30 a month, the understood, and (4) regulatory approaches should be tailored country has among the lowest broadband subscription prices towards mutually consistent solutions. in the world. This situation is driven by several factors: (1) initial price decreases fueled by strong infrastructure- Regulatory based competition from cable; (2) government-supported Figure 12. For Stakeholders, Executing Along Four New a broadband growth through indirect subsidies, public Regulatory Dimensions Is Critical in Order to Manage Industry Trends awareness campaigns, and allowing facilities-based ards competition in last-mile access; (3) strong Internet demand owT by schools, promoted by the government; (4) favorable 4 population demographics with high user concentration, Focus on business Change regulation creating scale economies; and finally, (5) a strong demand economics of as a function of Chapter for content and applications due to South Koreans' interest industry players market and starting conditions in online gaming and brokerage. The example illustrates that rapid broadband growth can be driven by a combination of regulatory, political, cultural, and demographic factors. This highlights the importance of comprehensive policies that address all aspects of broadband adoption. As saturation is reached, the easy option for regulators is to continue to Regulatory approach Recognizing tailored towards and understanding push for lower prices by forcing the incumbent telephone mutually consistent constraints to providers to offer cheap infrastructure to attackers. However, solutions change reaching saturation is not guaranteed. Forced price reductions do not directly address the willingness-to-pay issue (which is probably best tackled at the governmental level) and run Source: McKinsey analysis the risk of reducing, rather than increasing, infrastructure Focus on Business Economics of positioned to understand market needs and adequately Industry Players act on them. While this is ostensibly one of the key components of the EU telecom reform, the jury is still Within today's regulatory frameworks, the trends under out on whether this will mean a shift in the regulatory discussion could be detrimental to the economics of key approaches followed up to now. players in the industry, thereby potentially distorting the market. Therefore, regulation needs to be adjusted to allow Re-equilibrate regulation, moving away from asymmetric operators to make decisions based on business economics. regulation that primarily targets incumbent operators. This will contribute to ensuring a sustainable market At one time, it was logical to impose asymmetric and ongoing network readiness for society. The focus of rules to force monopolists to open up the market regulation would thus need to be shifted as follows: to new entrants. The pendulum has now swung the other way, and attackers have been allowed to grab Drastically reduce telecom-specific regulation and apply market share, while incumbent-oriented restrictive general economic law as competition progressively takes regulation remained unaltered. Regulation should now shape in the different markets. This is particularly move towards a middle-ground position, equalizing the case with international and long-distance the regulatory pressure across all players. Should, communications. Incumbents, although they have for instance, mobile interconnection rates remain a lost their key market positions, are still required to multiple of fixed-line rates in an era where mobile is follow lengthy regulatory filing processes to launch surpassing fixed-line penetration? new pricing schemes or service bundles, while their competitors are allowed to change products and Until quite recently, investments in the highly capital-intensive services at their own discretion. Additionally, in telecom industry were typically financed through cross- assessing competition in the local loop and the need subsidies. Long distance calls financed local calls, business calls for specific regulation, national regulators must take financed residential calls, and fixed-line revenues ensured the into account local voice services that are becoming rollout of mobile networks through high interconnection fees. increasingly competitive. This is especially important This is no longer the case under today's liberalized telecom because mobile phone services are rapidly maturing regulations. Strict retail and wholesale price regulations are and cable is getting its foot in the door of a number of aimed primarily at transferring surplus to the customer and 84 developed markets. at stimulating re-usage of existing networks. Increasingly, Focus regulatory intervention more on overall value incumbents are prevented from creating additional surplus to creation within the market. This requires a significant reinvest in future-oriented fine-mazed broadband networks, Compact policy shift from the initial years of liberalization. and this evolution could fundamentally put future network Policy goals have typically included the redistribution readiness at risk. of value towards consumers (via price reductions) and Regulatory operators/shareholders (i.e., profit through market Incumbent operators need to fully understand the impact of policies and regulations on their business models and work New share). Regulations must become less incumbent- a and price-focused at a time when incumbents are with policymakers and regulatory authorities to steer future ards systematically losing access lines and EBITs are coming regulations in a more favorable direction. owT under increased pressure. South Korea's successful 4 Change Regulation as a Function of Market broadband penetration was driven by a proactive government approach that encouraged both supply and and Starting Conditions Chapter demand for broadband services. The need for regulatory change according to the principles described above will most certainly vary by country as Make regulation more dynamic. As the telecom a function of the respective market structure, starting market's structure and operating conditions are conditions, and degree of network readiness. In this respect, continually evolving, and consumers are rapidly policymakers and regulators should avoid too linear an changing service providers, it will become increasingly application of developed country telecom regulation to challenging to adequately deal with issues and adjust developing countries. Adaptation to country and market regulations accordingly. Issues include how to deal with specificities is essential; without it, regulatory reform could, interconnection rates when incumbents' access lines in many cases, significantly distort the sector. For example, gradually erode, pushing unit costs upwards; and how under a developed country's regulations, a developing to treat consolidation in mobile markets, following country incumbent's business case could substantially the awarding of 3G licenses. To date, regulation has deteriorate, as there is simply less value available to share been substantially focused on locking-in the market among the stakeholders. into pre-set models. Aligning regulations with market economics and conditions will require greater Regulatory reform that does not appropriately take into empowerment of regulatory authorities, as they are well account the major industry trends previously outlined runs a substantial risk of fostering an environment that will lead Regulatory pressure to further reduce mobile rates for to structural under-investment in fixed-line infrastructure, residential customers continues, consequently boosting or even bankruptcy of incumbent fixed-line operators. fixed-mobile substitution. However, this approach High-risk countries can be identified both in developed and neglects to take into account the significant revenue developing markets: decrease that mobile operators will experience in the coming years due to a substantial reduction in In developed markets with a developed fixed-line interconnection and roaming revenues. Therefore, infrastructure, incumbents are particularly at risk in mobile operators may be forced to raise retail prices to countries where upgraded cable penetration is high, compensate for lost revenues. as local-access competition and the risk of fixed-line infrastructure erosion to cable is substantial (e.g., the Pressure on fixed-line incumbents' wholesale offers will United States, Canada, and Benelux). In these cases, most probably continue, both in terms of further rate the regulatory change should ensure a sustainable reductions (e.g., in interconnection, LLU) and by incumbent business case, without which enduring requiring incumbents to mirror their retail products network readiness would be at risk. in wholesale offers, thus allowing attackers to provide similar services. In developed markets lacking adequate local loop competition, measures should focus on enabling Incumbent-oriented asymmetric regulation is not likely to economically viable cable competition via non-telco change. Fixed-line incumbent operators in many markets ownership and relaxing video pricing constraints, local still hold 45 percent market share. Therefore, changing loop unbundling to serve as a competition catalyst, and the SMP (significant market power, i.e., market share of stimulating deployment of alternative technologies such approximately 25 percent) threshold for regulation to as 3G or wireless broadband. a dominance threshold (i.e., approximately 45 percent market share), represents a de facto case in which specific In developing markets where fixed-line penetration regulation will apply to fixed-line incumbents, since and infrastructure are limited, and mobile telephony fixed-line attackers and mobile operators rarely reach is substantially present, there is a high probability such a market share percentage. However, this means that considerable mobile traffic and especially access that regulators will have to be clever about appropriately substitution will occur (e.g., the Czech Republic, India). defining the relevant markets in which dominance is 85 Here, the regulatory focus should be on ensuring that, assessed. Perhaps more appropriate would be a subtler, next to the fixed-line infrastructure, the mobile networks more dynamic definition that recognizes contestability effectively contribute to society's network readiness, which via different modes of communications in relevant includes general Internet access. The challenge will be to Compact customer segments. (This may be especially relevant, ensure that mobile networks are Internet-enabled and for example, in the inter-modal competition between that, for example, mobile intermediate devices for personal fixed and mobile networks.) This would most likely computers and handsets are adequately stimulated. Regulatory need to be done on a case-by-case, country-by-country New Recognizing and Understanding Constraints basis. Merger authorities in the US (the Department of a to Change Justice) already take this approach; however, its role in ards overseeing the market is vastly different from that of a Recognizing constraints will be crucial to the eventual success owT telecom regulator. of any form of regulatory change. In this respect, it is essential 4 to assess whether proposed regulatory change will allow for Regulatory Approach Tailored Towards challenges stemming from the major industry trends to be Mutually Consistent Solutions Chapter properly addressed and determine the likelihood that change The final critical cornerstone for regulatory success involves will effectively occur. addressing the challenges resulting from the key industry The recently defined European telecom regulatory reform trends, while at the same time finding the middle ground may become a case in point. Over the past few years, the EU that meets stakeholders' expectations with regard to those conducted a major telecom regulatory reform that culminated challenges. Policymakers and regulatory authorities will on July 25, 2003, the deadline for EU countries to introduce need to tailor their approach so as to move the industry the new regulatory compact into member state law. After years towards solutions that are mutually consistent for the key of debate about policy objectives and preferred approach, the stakeholders. This means finding solutions that tread a middle question today is whether the new EU regulatory framework road between the objectives of the government, the interests will allow and drive EU countries to effectively deal with the of the incumbents (still the primary provider of fixed-line telecommunications industry's major challenges. infrastructure and access in all countries), the economic needs of entrants, and the customers' needs for choice, improved Several initial observations may lead us to draw a different quality, and innovative services. conclusion: This will be difficult, since there will be multiple competitive stakeholders will be critical to the eventual realization of an models (which will differ by country). Moreover, the road map efficient outcome. is not as clear as it was in the early stages of liberalization, when the focus was to open the market to competitors, leverage the Conclusion incumbents' infrastructure, and eliminate cross-subsidies in order to achieve lower consumer prices. Traditional fixed-line incumbent operators will face significant challenges as the telecommunications industry At the time of liberalization, many regulatory regimes continues to redefine itself. A global wave of liberalization and took either anti- or pro-incumbent stances--sometimes privatization of telecom providers, combined with new and by accident, sometimes by design. The resulting regimes dynamic technologies, continues to dramatically reshape the may or may not have led to sharp declines in prices in the industry. This calls for action from all industry stakeholders short term or encouraged the emergence of infrastructure- to protect the economic interests of both developed and based attackers (such as in the United Kingdom and United emerging markets. Fixed-mobile substitution, fixed- States). Accidental regulation could work as long as the access competition, the growth in VoIP, and the growth of emphasis was on simply lowering prices and removing cross- broadband access are major trends that will have an enormous subsidies in key industry segments, such as international impact on the face of the telecom industry. Regulation will long-distance and other distance-based services. However, play a determining role in how these trends will affect the today's focus is very different and more complex. Existing industry, how readily the incumbents will be allowed to substantial issues involve completely different topics, respond to them, and in how well competition develops. including infrastructure issues (broadband, 3G, data-enabling While telecom industry players can prepare themselves for mobile lines, local-access competition); ensuring a level and, to a certain extent, even influence these trends, they will playing field in inter-modal competition (mobile vs. fixed); have to learn how to successfully manage the evolution of the and addressing disruptive technologies and their long-term trends. In order to achieve this, all industry key stakeholders impact on infrastructure economics (VoIP). The road map must address the issues of a regulatory shift towards the for addressing these issues is not evident and the path to economics of players, local market conditions, and network efficient markets is unclear. None of the issues achieves an readiness, recognizing the constraints to change, and tailoring economically efficient outcome simply by lower prices--in the regulatory approach to arrive at mutually consistent 86 fact, the opposite is true: simply pushing down prices may solutions for all parties. actually distort some choices. Compact The industry challenges raise a number of questions that will need to be addressed, among them being: · Should governments abandon fixed-line networks and Regulatory favor mobile--particularly in the case of developing countries? If governments decide not to go this route, what New a are the implications of taking a neutral role? ards · What role,if any,should governments play when owT broadband penetration levels out? 4 · What should developing countries do to enable primary telephone access or the mobile network for data? Chapter · How should regulated prices be adjusted as incumbent market shares decline? Should these changes occur before the traditional incumbent thresholds currently used by regulators are reached (e.g., 25 percent, 45 percent, and so on)? · What role,if any,should the government take in addressing VoIP? The power of regulatory inertia is tremendous. But the gradual erosion of the traditional fixed-line model suggested by the trends discussed in this document indicate that this inertia can interfere with an efficient evolution of the industry. Mutual consistency between the objectives of all key Introduction--The 21st Century in Beta? Chapter 5 In the "new economy" boom, Finland became labeled as a country where ". . . the 21st century is in beta" (Wired magazine, September 1999) and, for a time, its corporate CASE STUDY: icon Nokia was Europe's most valuable company. Technology enthusiasts expected Linux, an open source Little Finland's operating system with Finnish roots, to replace Windows on virtual desktops. Transformation to In a decade, Finland went from being one of the least information and communication technologies (ICT) a Wireless Giant specialized countries to becoming the single most specialized one. Currently the Finnish ICT sector, with Nokia as its locomotive, consists of some 6 thousand firms and accounts for approximately 10 percent of Finland's GDP. Although in what follows ICT is discussed at large, the Finnish story is mostly one of (digital) mobile telecommunications. In the early 1990s, Finland's prospects seemed gloomy. In 1990, it was hit by the most severe economic crisis in any OECD country since World War II. Real GDP dropped by over 10 percent in just three years, and unemployment had risen to nearly 20 percent by 1994 (Honkapohja and Koskela 1999). Among the factors contributing to the crisis were a downturn in the nationally vital forest-related industries, disruption in the country's sizable eastern trade due to 87 the collapse of the Soviet Union, a speculative bubble in the domestic securities and real estate markets fueled by Petri Rouvinen and Pekka Ylä-Anttila uncontrolled credit expansion and favorable terms of Giant ETLA, The Research Institute of the Finnish Economy trade, and mismanaged financial liberalization, which eventually led to credit crunch and excessive private sector Wireless indebtedness (Kiander and Vartia 1996). a to In the latter half of the 1990s, Finland was nevertheless one of the fastest growing countries in the world. Its remarkable recovery and stellar performance are in considerable part attributable to developments in the ICT sector. But how did ransformationTs Finland become a success story in ICT? Does the Finnish experience hold lessons for other countries? inland'F Section Two provides background information on Finland and its macroeconomic developments as well as a Little:Y discussion of the country's transformation from a factor- STUD to an innovation-driven economy. Section Three discusses ICT-related history and developments in Finland, with CASE 5 an emphasis primarily on mobile telecommunications. Section Four briefly outlines the key factors underlying the "Finnish miracle." Section Five discusses future prospects Chapter for the ICT sector. Finally, Section Six concludes with general considerations of the "Finnish model" and related policy issues. From Factor- to Innovation-Driven Economy a global technology leader with the most modern and efficient production capacity in the world (see Raumolin 1992). By the late 1980s, the forest sector had developed into a competitive Historical Backdrop industrial cluster that today provides high value-added paper During the 20th century, Finnish GDP per capita grew at an grades, as well as forestry technologies and consulting services annual rate of close to 3 percent, that is, faster than in any (Hernesniemi, Lammi, and Ylä-Anttila 1996; Ojainmaa 1994; other European country. Admittedly, as compared to the Rouvinen and Ylä-Anttila 1999). countries in the vanguard of the first industrial revolution in the late 1800s, the starting point was relatively low. Many of The latest phase of forest cluster development is the the basic preconditions for growth were nevertheless in place integration of ICT into pulp and paper making processes and at that time. Institutions such as well-functioning educational maintenance services. The strong forest cluster with roots in and banking systems, as well as a good transportation traditional factor-driven industries is finding interfaces with infrastructure, were important in the take-off phase. Similarly, the knowledge-driven ICT cluster. Furthermore, the global national identity and culture were strong enough to facilitate consolidation in pulp and paper, as well as in other traditional economic growth. After completing the liberalization of both industries, has spawned new ICT markets as the demand internal and external trade by the end of the 1870s, the path for electronic means of integrating geographically dispersed for industrial growth and new business activity had opened. activities has grown. The role of institutions was important, not only in the A Small Nordic Welfare State take-off phase of industrial growth, but also later when the economy moved from factor- to investment-, and later, Geographically, Finland is about the size of Germany or the innovation-driven stages of industrial development. US state of New Mexico. Yet with only 5.2 million inhabitants, it is sparsely populated. The climate is cold, but not quite as Finland's most important--and virtually only--endowment harsh as might be expected from the second most northerly of natural resources, forests, proved to be the decisive factor country in the world. in the take-off phase. Quick advancement in prosperity towards the end of the 1800s and in the early 20th century Finland's economic and social institutions are similar to those of other Nordic countries. It can be appropriately 88 was based on rapidly growing exports of forest-related products--first timber and later, pulp and paper. From the characterized as a Nordic welfare state: it is an egalitarian late 1950s to the late 1970s, the Finnish forest industry carried country with relatively even income distribution and minimal Giant out massive investments and transformed itself gradually into class distinctions. Wireless a Figure 1. The Fastest Growing European Country in the Postwar Era: to GDP Volume in Finland and OECD-Europe (in 1995 prices and purchasing power parity exchange rates) 25,000 ransformationTs 23,000 21,000 Finland inland'F 19,000 Little:Y 17,000 OECD Europe STUD 15,000 CASE 13,000 5 11,000 Chapter 9,000 7,000 5,000 1950 1953 1956 1959 1962 1965 1968 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 Sources: www.SourceOECD.org, Penn World Tables. Smallness is both an advantage and a disadvantage. There Structural Transformation is some evidence in the economic literature that smallness In addition to the aforementioned immediate reasons for the retards economic growth. Small countries have less scope recession of the early 1990s, rigidities in economic and political for utilizing scale economies in production and marketing. systems and corporatist structures were among the underlying On the other hand, small home markets drive firms to causes. The deep recession led to a clear shift in policy thinking. specialize and seek foreign markets. Most small countries Greater emphasis was put on long-term microeconomic can be described as open economies with large exporting as opposed to short-term macroeconomic policies in an sectors. In Finland the share of exports in GDP is currently acknowledgment that the foundations of sustained national close to 50 percent. competitiveness are largely created at the micro level--in firms, financial institutions, and various innovative policy agencies. Smallness and a homogeneous society might also be beneficial for the diffusion of new knowledge in specific areas The European integration process also fueled the shift in such as ICT; in the world of rapid technological change this policy. Finland joined the European Union in 1995 and, could be a competitive advantage. unlike the other Scandinavian countries, adopted the euro from the outset. However, this also meant that the scope for While smallness and specialization increase a country's national macroeconomic policies was considerably reduced. sensitivity to external shocks, small economies have developed various ways to cope with the problem. These The recession of the early 1990s was a watershed between include not only macroeconomic policies but also many the investment- and innovation-driven stages of national kinds of networks and social security systems. Networking development. The country's R&D intensity grew rapidly as and cooperation in society in general, and in the business the business sector increased expenditures on innovative sector in particular, have proven to be important in activity. Public R&D funding also rose at a time when developing new technologies. In many ways Finland can virtually all other public expenditures were cut in the midst be characterized as a "network society" (see Castells and of the recession. Himanen 2002). Of course, social networks, often labeled social capital, can become too tight and finally an obstacle The transition to innovation-driven growth was considerably for change and industrial transformation. Thus far, however, aided by widespread telecommunications deregulation in networking and cooperation have been an advantage rather Europe and elsewhere, as well as by technological developments 89 than a disadvantage in Finnish industrial development. in the ICT sector. Both of these developments have contributed to the booming demand felt since the early 1990s. Giant Wireless Figure 2. Explosive Growth in Electronics Since the Early 1990s: a Finnish Manufacturing Production Volume by Industry (e billions in 2000 prices) to 9,000 Electronics & electrical equipment 8,000 Metal & engineering Pulp & paper Chemicals ransformationTs 7,000 Textiles & apparel inland'F 6,000 5,000 Little:Y STUD 4,000 CASE 3,000 5 2,000 Chapter 1,000 0 1948 1952 1956 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 Sources: ETLA database, Hjerppe et al. (1976), National industrial statistics by Statistics Finland. Figure 3. The Second Most R&D-Intensive Country in The change in the 1990s in Finnish industrial the World structure and exports was unique both nationally and Gross domestic expenditure on R&D internationally. In less than a decade, electronics became (GERD) per GDP % the most important single branch in production and 4.5 exports. The Finnish industrial structure that was 4.0 Sweden previously raw material-, capital-, energy-, and scale- 3.5 Finland intensive, is now primarily knowledge-intensive. Finland's 3.0 Japan US 2.5 relative R&D intensity--the share of the gross domestic 2.0 research and development expenditure (GERD) of EU 1.5 GDP--is the second highest in the world (3.5 percent in 1.0 2002), with only neighboring Sweden surpassing it. 0.5 0 1981 1984 1987 1990 1993 1996 1999 2002 Innovation-Intensive Growth Entering a phase of innovation-driven development presumes Share of GERD financed by government the interplay of several factors. High social cohesion, a % consistent and predictable policy environment, sound basic 60 infrastructure, as well as a just and efficient legislative and 50 juridical environment are necessary preconditions. While 40 EU these were all in place in Finland before the boom, the US 30 key factors were rising investments in R&D and a strong Finland commitment to education. 20 Sweden Japan 10 Due to increased investments in the education system, by 0 the late 1980s, younger generations of Finns were among the 1981 1984 1987 1990 1993 1996 1999 2002 most educated in the world. Education that would enhance technological change was prioritized in the policies of the 90 Share of GERD performed by the business sector 1960s and 1970s. Among the OECD countries, the Finnish % educational system lags behind only the Korean and German 90 systems in terms of its relative emphasis on natural sciences Giant Sweden 80 Japan US and engineering. It is not only graduate level science and 70 Finland 60 EU technology education that matters; a high general level of Wireless 50 education is equally important for adopting and utilizing a 40 new technologies. Basic education continues to be the focal to 30 point of the Finnish educational system. 20 10 As will be discussed below, most of the structural change 0 1981 1984 1987 1990 1993 1996 1999 2002 is attributable to the ICT sector. And within that sector, ransformationTs mobile telecommunications equipment manufacturing Share of communications equipment manufacturing and Nokia dominate. In the latter half of 1990s the Finnish (ISIC 32) in total business enterprise R&D (BERD) inland'F % economy grew at an annual rate of approximately 5 percent. 60 The contribution of Nokia to that growth was on average *EU11 (Belgium, Denmark, Finland, Little:Y France, Germany, Ireland, Italy, more than half a percentage point. In 2000 it peaked at one 50 Finland Netherlands, Spain, Sweden, UK) and a half percentage points, when the GDP growth was 6 40 STUD percent. 30 CASE Sweden 5 20 Japan EU11* World's Most ICT-Intensive Country 10 US Chapter 0 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 Initially Competitive ICT Markets Up until the worldwide deregulation and liberalization boom Sources: OECD Main Science and Technology Indicators Vol. 2003 release 01; of the 1990s, Finland had been one of the most competitive OECD R&D Expenditure in Industry (ISIC Rev.3) Vol. 2002 release 01 (for the lowest pane). telecommunications operators and equipment markets in the world--a position it had occupied for over a hundred years. Figure 4. Heavy Emphasis on Natural Sciences and Engineering Education (a) Finnish postgraduate degrees in natural sciences and engineering 900 800 700 600 500 400 300 200 100 0 1951 53 55 57 59 1961 63 65 67 69 1971 73 75 77 79 1981 83 85 87 89 1991 93 95 97 99 2001 (b) Share of tertiary type A graduates in engineering, manufacturing, construction, life sciences, physical sciences, mathematics and statistics, and computing in all graduates Korea Germany Finland telephony operator (PTO) and regulator was established to Switzerland operate the telegraph and military telephone network left France behind by the Russians. In the 1930s there were over 800 Ireland private telecommunications operators in Finland. Even today Sweden there are some 40 significant operators.3 Czech Republic Austria From the outset, Finnish telecommunications equipment 91 UK markets were open to foreign suppliers. Thanks to its small Japan multi-operator market, Finland became a test market for the Giant Italy latest technology. Private operators' interest in state-of-the- Turkey art technology was fueled by the threat of being taken over by Mexico Wireless the PTO in case of underperformance. In order to integrate a Spain to Belgium different manufacturers' network equipment, operators had Slovak Republic to develop technological expertise, which was later exploited Canada by the emerging domestic equipment industry. Denmark Australia Table 1. In the mid 1970s the Equipment Market ransformationTs Israel was Dominated by Foreign Suppliers: New Zealand Finnish Telephone Exchange Equipment Market Portugal Shares in 1975, a Total of 161 million (2000 prices) inland'F Iceland Poland Ericsson (Sweden) 60% Little:Y US Siemens (Germany) 25% Netherlands STUD Televa (Finland) 8% Norway ITT (United States) 7% CASE Hungary 5 0 25% 50% Source: Häikiö (2001a, p. 162--countries of origin added by the authors). Sources: KOTA OnLine (top, www.csc.fi/kota/) and OECD (2002a). Chapter Emergence of Wireless Communications The origins of this exceptional market structure can be Applications of radio technology were developed in three traced back to the Telephony Decree of the Finnish Senate in companies around 1920: Salora (a Finnish consumer 1886, which distributed numerous private operator licenses electronics company), Suomen Kaapelitehdas (Finnish in order to circumvent Russian telegraph regulations.1 Cable Works), and Radio Laboratory (under the Ministry of Upon gaining independence in 1917,2 an additional public Defense). Fervent engineers, often objects of suspicion and Figure 5. In the Peak Year of 2000 Nokia Accounted for One and a Half Percentage Points of Overall GDP Growth: Contribution of Nokia and the Electro-Technical Industry to GDP Growth in Finland (percentage points) 3.0 2.5 2.0 Nokia's contribution (percentage points) 1.5 1.0 0.5 Electro-technical industry's contribution 0.0 -0.5 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002E Source: Authors' update of Ali-Yrkkö and Hermans (2002). Figure 6. Rapid Worldwide Transition to Open Competition Table 2. Nordic Suppliers and Global Heavyweights in Telecommunications: Fixed Telecommunications Network Competed in NMT Handsets: Market Shares in NMT Handsets Operator Market Structure in the OECD Area in 1985 (83,525 units in total)4 92 Open competition Mobira (Finland) 25.7% Duopoly Number of countries Monopoly Ericsson (Sweden) 16.9% Giant 30 Panasonic (Japan) 8.9% Storno (United States, until 1977 Denmark) 7.1% Wireless 25 a Dancall (Denmark) 6.5% to Mitsubishi (Japan) 6.1% 20 NEC (Japan) 6.0% Siemens (Germany) 5.6% 15 Motorola (United States) 5.6% ransformationTs 10 Simonsen (Norway) 2.3% Source: Nokia Mobile Phones (as cited in Häikiö, 2001c, p. 134--countries of inland'F 5 origin added by the authors). Little:Y 0 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Source: OECD (2003). STUD CASE 5 opposition by conservative colleagues and managers, worked The Auto Radio Puhelin (ARP, Car Radio Telephone) network on applications of radio technology on the sidelines of main was introduced in 1971 as the country's first mobile telephone Chapter business activities. network providing nationwide service. It provided good geographical coverage but was not technologically sophisticated. In 1963, a call for tenders by the Finnish army for a battlefield In the mid 1970s the service had some 10 thousand subscribers. radio spurred companies to give physical expression to their Although ARP did not turn mobile communications into a accumulated expertise. Ultimately the army did not have the major business, it provided experience and customer interfaces resources to purchase the system, but the prototypes served as for companies such as Nokia, Salora, and Televa, the main the forerunners of commercial handsets. suppliers of terminals and network equipment in Finland. It also indicated that there was commercial potential in mobile services. Box 1. Managing the GSM as a Technological and Regulatory Discontinuity The telecommunications industry is characterized by generations of new standards with the potential to alter the competitive landscape. The GSM standard was especially discontinuous in this respect, since it marked a clear break in technological developments and regulatory regimes. GSM set the stage for Nokia's global breakthrough, and thereby provides an important snapshot of how the Finnish ICT industry managed to enter mobile telephony, master the technologies and regulatory challenges, and transform itself into a global leader. In the software communities of the 1980s, the GSM acronym was translated into the "Global Software Monster" due to the technological challenges involved in living up to the demanding specifications of the standard. The standard was based on many years of European collaboration within the Groupe Spécial Mobile, founded in 1983 under the Conférence Européenne des Administrations des Postes et des Télécommunications (CEPT) and subsequently transferred to the European Telecommunications Standardisation Institute (ETSI). Initially, this collaboration included the major European PTOs--this was the regulatory regime that had been a successful one in the NMT era. However, due to increasing technological complexity and IPR clashes, collaboration was subsequently opened to the equipment suppliers as well. This was largely facilitated through political coordination at the European level, whereby the "basket model" of standardization was introduced. In the basket model the interfaces between the subsystems of the cellular network were standardized, while the detailed choice of the internal component technologies was left to the equipment suppliers. Accordingly, competition was enhanced because equipment suppliers could contribute to the standard with their own technological solutions. This also invited the formation of constellations of R&D alliances around competing component technologies. One such alliance was the ECR900, which provided Nokia and Finland with an entry ticket through the back door into the large firms' oligopoly alongside such players as Ericsson, Alcatel, and Siemens. The technological challenges of the GSM were foremost related to the digitalization of radio transmissions, and the exponential increase in the complexity of the signalling and control software. In Finland, meeting these challenges involved the interplay of various developments, some of which were based on bold managerial choices, others of which were highly coincidental. A key precondition for the timely entry into GSM markets was the accumulated competencies that Nokia had developed in the field of digital software processing and transmissions in the 1970s and 1980s. A peculiarity was that Nokia had 93 gained a very significant market position in the data modem business in the 1980s, based on interactions with an advanced banking sector in the Nordic countries as the key customer. Data modems and early personal computers made Nokia a leading user of digitalized integrated circuits (ICs) in collaboration with such giants as AT&T and Texas Giant Instruments in the United States. Likewise, Nokia was an early mover in the field of digital transmission systems with such global industry firsts as the delivery of a 30-channel transmission system to the Finnish PTO in the late 1960s. Later on, further collaboration with the PTO, various local telecom operators, the State Railways, and advanced customers in Wireless a the Soviet Union gave way to voluminous orders for the DX200, a digital switching system. In the early 1980s, following to the strong market position of Mobira in NMT, a clear vision of the future potential of mobile telephony became evident throughout Nokia. These competencies found unintentional applications in the digital cellular environment of the GSM. Apart from being an "accidental incumbent" in digital signal processing, transmission, and switching, Nokia also managed to coordinate scarce resources and combine various technologies very efficiently and at the right time. The first step towards Nokia's consolidation of competencies in Finland was its outsourcing of some R&D to the Oulu region. As ransformationTs a result of regional initiatives to proliferate Oulu as an important ICT center in Finland, a vibrant software community was emerging there. This outsourcing was subsequently internalized through the founding of Nokia's R&D centers in the inland'F Helsinki and Tampere regions, in close collaboration with technical universities. At the same time, Nokia reorganized its telecom divisions through the founding of Nokia Cellular Systems. Instituted in Little:Y 1988, Nokia Cellular Systems was designed to cater solely to the envisioned GSM-based growth in the cellular systems business. This reorganization was meant to contribute to the goal of making the deadline for the inauguration of the STUD GSM service in Europe in 1991. The tight deadline was met in Finland through the world's first GSM call in June of 1991, CASE even though the pan-European inauguration of the service was delayed due to technical problems. 5 However, Nokia was also lucky in many respects. In hindsight the decentralized microprocessor architecture of the DX200 digital switching platform was optimal for the GSM software extensions, although this decision was made primarily due Chapter to limited resources in the 1970s. Moreover, the fact that Nokia had collaborated and provided technological solutions to a range of different local operators, PTO, and other state agencies in Finland as well as the Soviets, meant that a whole arsenal of technological solutions were readily available also for the extensions to the global GSM markets. The collapse of the Soviet markets in the late 1980s was a further "lucky" coincidence. It struck the digital DX200 switching business hard but at the same time, enabled the transfer of resources from fixed to mobile telephony at a time when these resources were needed the most. Likewise, the GSM standardization process took many turns favorable to Nokia, one of which was the basket-model compromise that facilitated the formation of competing R&D alliances. Presently, standardization is increasingly open and primarily in the domain of large multi-technology firms due to the further increase in technological complexity, number of participants, and the importance of multiple patents. This trend is best illustrated through the growth in the number of patents deemed as essential to the GSM and to the UMTS standard (see Table). As a consequence, the competitive landscape is changing once again. Firms and Their Share Essential Patents in the GSM and UMTS Standard Number of Number of firms holding essential patents essential patents Key players' shares of the essential patents ola Nokia Ericsson Philips Motor Alcatel Siemens Qualcomm Others GSM 2,024 24 41% 18% 9% 4% 4% 2% ­ 22% UMTS 3,499 30 27% 8% ­ 12% 3% 1% 45% 4% Source: ETSI (2002). The GSM has defined one technological and regulatory path towards next generations of mobile telephony, through the GRPS, EDGE, and UMTS standards. The future will tell to which degree this present stronghold of Finland in GSM technologies and markets will also support further advances and standardization paths in the rapidly changing and increasingly multi-layered and competitive landscape of the ICT industry. Source: Kindly provided by Christopher Palmberg on the basis of Palmberg and Martikainen (2003). The development of the Nordisk Mobil Telefon (NMT, Nordic PTO was the sole NMT operator in Finland. The 94 Mobile Telephone) standard in the 1970s was a highly valuable liberalization of the wireless operation culminated in the outcome of the traditional cooperation of Nordic authorities granting of a GSM license to Radiolinja (a private operator). and industry. It aimed at creating a Nordic market for mobile In 1991, PTO and Radiolinja were among the few who opened Giant telephony and inducing competition. The standard was their GSM networks in accordance with the original schedule open to third-country suppliers as well. Openness promoted set up by the GSM development group's memorandum of Wireless competition in network equipment and handsets. Advanced understanding. Nokia made its global GSM premiere by a to features such as roaming were included, and fortunately, the providing Radiolinja's network. diffusion-promoting "caller pays" practice was also adopted. Although the foundations of domestic equipment In the early 1980s, the Nordic countries formed the largest manufacturing were laid in the 1920s, up until the1980s, mobile communication market worldwide in terms of the foreign manufacturers dominated the market. During the ransformationTs number of subscribers. Mobira, a joint venture of Nokia 1970s and 1980s, Finland was advancing rapidly in digital and Salora, supplied the first NMT handsets.5 In contrast, and mobile technologies. Nokia participated in these inland'F Finnish companies were neither ready nor willing to supply developments and since the 1970s, it has become a central network technology at the starting phase of the NMT project. force in the consolidation of the industry. By the late 1980s, Little:Y Eventually, under pressure from PTO, and motivated by the the bulk of the Finnish telecommunications equipment need to curb Swedish Ericsson's market power and equipment industry had merged into Nokia. STUD prices in general, Mobira, and later Tele-Nokia, started to CASE manufacture network equipment (Palmberg 2002). Nokia's Transformation into a Global Mobile 5 Communications Giant In 1988, the telecommunication authorities of the European Community published the Groupe Spécial Mobile (GSM, The merger of Suomen Kaapelitehdas (Finnish Cable Chapter Digital Global System for Mobile Communication) standard. Works), Suomen Gummitehdas (Finnish Rubber Works) Nokia and Ericsson were among the first to adopt GSM, and Nokia in 1967 may be seen as the birth of the current which eventually became almost universally accepted--with Nokia Corporation. Although the wood-grinding mill lent the major exceptions of the United States, Canada, and the name, the cable company provided the core knowledge leading Latin American countries. Recently GSM has also base to the new entity: in 1960 it had established an gained ground in these markets. electronics department reselling computers, providing computing services, and also manufacturing some its own Figure 7. The Evolution of the Finnish Mobile Communications Industry 1889 1865 Finnish Rubber Nokia Works 1917 Finnish Cable Works 1925 1928 Nordell & Radio Laboratory Koskinen M. of Defense 1945 1945 Salora State Electric Works 1962 Televa 1967 50% Nokia Corp. Exchange development 1976 Radio telephones Televa Oy 50% 50% 50% 1977 Telefenno 1979 Mobira 1981 1984 1983 Telenokia Nokia 100% Radio Nokia (51%), Tandy-Mobira telephones The State of JV in Korea Finland 1986 Nokia-Mobira Oy 1987 Nokia-Mobira Nokia 100% 1988 Network Benefon development 95 1989 Nokia Mobile Giant Phones 1991 Acq. Technophone Wireless a 1992 1992 to Tandy-Nokia joint Nokia Telecommunications venture in the US . 1994 Nokia acq. 100% of the JVs with Tandy 1997 Microcell ransformationTs 1999 Nokia Networks inland'F 2003 Flextronics Singapore Little:Y STUD Source: Derived by the authors from an earlier version by Paija (2001, p. 25). CASE 5 electronic devices. It also assumed an important role in (e.g., Swedish Ericsson Information Systems in 1988), and educating its own staff--and Finns more generally--on other fields not directly related to telecommunications.6 This Chapter digital technologies. conglomerate strategy, together with managerial and ownership problems, caused--along with the early 1990s recession--a Nokia was still pursuing a conglomerate strategy in the 1980s deep crisis. Jorma Ollila became the CEO in 1992. Under his and made several sizable acquisitions in consumer electronics leadership, activities outside mobile communications were (i.e., televisions such as Swedish Luxor in 1984 and German divested. The process was completed by the late 1990s. Standard Elektrik Lorenz in 1987), information systems Figure 8. From a Multi-Branch Conglomerate to a Mobile Handset Company in a Decade: Nokia's Sales by Industry7 Percent 100 Rubber 90 80 Forest 70 60 Networks 50 Cables 40 30 Other TVs Phones 20 10 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 Sources: Derived by the authors from an earlier version by Paija (2001, p. 27) with additional data from Häikiö (2001b) and Nokia's annual reports. With the exception of UK-based Technophone in 1991,8 There Is More to the Finnish ICT Cluster than Nokia has not made major foreign acquisitions in its current Nokia core businesses. In fact, it retreated from its acquisition Koski, Rouvinen, and Ylä-Anttila (2002) show that 96 strategy almost completely after the early 1990s. But alliances international ICT manufacturing exhibited an intensifying were important from early on: in handsets, Nokia established concentration tendency in the 1990s, and that laggards rarely joint ventures with American Tandy, and did private labeling Giant catch up, let alone leapfrog, the leaders. Thus, originally ICT- with Tandy-owned Radio Shack, AT&T, and others; on the specialized countries tend to become more so. Finland is a rare network side, it initially partnered with Alcatel (France) and exception to this rule. During the 1990s, it went from being Wireless a AEG (Germany) to provide GSM solutions.9 one of the least ICT-specialized industrialized countries to to With a nearly 40 percent market share, Nokia is currently becoming the single most specialized one. a clear market leader in mobile handsets, and is one of The broadly understood Finnish ICT sector (or cluster) the dominant players in mobile network infrastructure --from digital content provision and packing via network equipment. It has been riding the wave of exploding global ransformationTs infrastructure equipment manufacturing and operation mobile telecommunication markets, fueled by worldwide to end-user terminals and portals--is comprised of 6,000 deregulation in telecommunications. Thanks to its narrowly firms (Paija and Rouvinen 2003), including 300 first-tier inland'F defined and globally orientated strategy, it has been able to subcontractors of Nokia (Ali-Yrkkö 2003). meet the market challenge somewhat better than its closest Little:Y competitors. Furthermore, the management has been able The impact of the ICT cluster on the Finnish economy can to build an innovation-driven culture and supporting hardly be exaggerated. In the 1990s its GDP share rose from STUD organizational structure, flexibly exploiting both internal and 4 to 10 percent.12 Nokia's share is an estimated 3 percent. ICT CASE external networking. has indeed become the country's third industrial pillar at the 5 expense of the traditional metal and engineering as well as Nokia has had its share of problems and challenges as well. forest-based sectors. Nokia alone accounts for an estimated It was nearly bankrupted in the early 1990s, primarily as a Chapter one-fifth of Finnish exports. consequence of its overly ambitious and costly acquisition and internationalization strategy.10 The mid 1990s logistics crisis Finland is quite dependent on Nokia, but at least now the and the mismatch of product mix and market demand led to Finnish economy has a second major pillar alongside the a major revision in organizational structure. What seems to traditional forest-related industries. Should anything go set Nokia apart from many other gigantic corporations is its wrong, the country has a proven ability to adapt. As compared ability to react quickly and improvise in a moment of crisis. to a dependence on natural resources such as oil, it seems Table 3. Siemens Remains the Biggest Communications Equipment Providing Corporation: Some ICT-Related Companies in Fortune Global 500 Communications Equipment Providers Revenues Profit margin Employees R&D intensity Worldwide market (US$ billion (profits/revenues, (thousands (expenditure/ share in mobile Firm Country in 2002) % in 2002) in 2002) revenue, % in 2001) phones (% in 2002) Siemens Germany 77 3 426 10 8 Samsung Electronics Korea 48 12 80 6 10 NEC Japan 39 -1 146 7 Fujitsu Japan 38 -3 157 7 Nokia Finland 28 11 52 10 36 Motorola United States 27 -9 97 14 15 Cisco United States 19 10 36 18 LG Electronics Korea 18 2 55 5 Alcatel France 16 -29 76 11 Ericsson Sweden 15 -13 65 20 6 Lucent United States 14 -86 47 17 Nortel Canada 11 -34 37 19 Major Operators Revenues Profit margin Employees R&D intensity Worldwide market (US$ billion (profits/revenues, (thousands in (expenditure/ share in mobile Firm Country in 2002) % in 2002) 2002) revenue, % in 2001) phones (% in 2002) NTT Japan 90 2 207 3 Verizon United States 68 6 229 Communications Deutsche Telekom Germany 51 -46 256 2 AT&T United States 47 -28 71 1 France Telecom France 44 -44 244 1 SBC Communications United States 43 13 176 97 Olivetti Italy 30 -2 107 BT UK 29 14 105 2 Giant Other ICT Firms Revenues Profit margin Employees R&D intensity Worldwide market Wireless (US$ billion (profits/revenues, (thousands in (expenditure/ share in mobile a Firm Country in 2002) % in 2002) 2002) revenue, % in 2001) phones (% in 2002) to IBM United States 83 4 316 Hitachi Japan 67 0 340 Sony Japan 61 2 161 HP United States 57 -2 141 Vivendi France 55 -40 284 ransformationTs AOL Time Warner United States 42 -237 91 Microsoft United States 28 28 51 inland'F Intel United States 21 2 79 Sources: Fortune (2003), R&D figures for communications companies and some operators from OECD (2003, pp. 80­81), mobile phone market shares of major Little:Y suppliers from Gartner Dataquest's website (www.gartner.com, Ericsson refers to SonyEricsson). STUD CASE 5 plausible to argue that the knowledge accumulated in ICT- nevertheless been able to attract R&D activities of such firms related activities could be more easily applied elsewhere. as Ericsson, Fujitsu, IBM, HP, and Siemens, which may be Obviously, such a small country can probably never hold interpreted as a sign of the viability of its ICT cluster. Chapter a well-diversified portfolio of internationally competitive business activities. Jalava and Pohjola (2002) show that the absolute macroeconomic effects of ICT in the late 1990s were quite Although other Finnish ICT companies are gaining ground similar in Finland and in the United States (see, for example, in global markets, there have not been major breakthroughs Jorgenson 2001). As distinct from the situation of the United in broader ICT market segments. In recent years Finland has States, however, the effects in Finland are mostly mediated via Figure 9. Heavy Specialization in ICT and Communications Equipment Manufacturing11 ICT value added ICT employment R&D in ICT (% of business sector total, 2000) (% of business sector total, 2000) (Selected ICT ind., % of GDP, 2000) Ireland Finland Finland Finland Sweden Korea Korea Canada Sweden US Japan Japan New Zealand UK US Sweden Netherlands Canada Hungary Belgium Ireland UK France Netherlands Netherlands Norway Germany Belgium Denmark France Japan Austria Belgium Czech Rep. US UK Norway Korea Denmark Canada Italy Norway Denmark Australia Italy France Czech Rep. Australia Portugal Spain Spain Austria Mexico Czech Rep. Australia Germany Poland Spain Portugal Italy Germany Mexico Slovak Rep. Greece 0 16 0 10 0 2 Total Communication & other equipment Manufacturing Communication & other equipment Computer & office equipment Services (for those avail.) Computer & office equipment Services Services Source: OECD (2002b). Table 4. Some ICT Companies on the Main List of the Helsinki Stock Exchange Profit margin 98 Net sales in 2002 (%, in 2002 net sales per Personnel Company Self description (g millions) operating profit) in 2002 Giant Nokia Oyj The world leader in mobile communications 30,016 15.9 52,700 TeliaSonera AB (Sweden, The leading telecommunications group in the Nordic and Baltic regions 2,241 2.9 8,170 Wireless figures for Sonera) a Elisa Oyj One of the leading European operators in applying new technology 1,563 -4.5 8,120 to Tietoenator Oyj One of leading suppliers of high value-added IT services in Europe 1,271 7.5 11,600 The world's largest supplier of mobile phone precision components, powder Perlos Oyj 365 0.4 3,640 inhalers for pharmaceuticals Novo Group Oyj One of the largest providers of business-to-business IT services in the Nordic countries 309 3.0 2,260 ransformationTs A leading manufacturer of precision plastic components for communications, Eimo Oyj 252 1.2 1,940 automotive, and healthcare A high-tech circuits and mechanics manufacturer for communications, automotive, inland'F Aspocomp Group Oyj 183 -12.8 3,080 and other industries Teleste Oyj A technology-leading provider of video and broadband cable networks 67 -6.4 506 Little:Y Aldata Solution Oyj A leading European retail software company 66 6.4 448 STUD Yomi Oyj A significant provider of software for communications networks and terminals 58 6.7 621 CASE Comptel Oyj The global market leader in mediation software for operators and service providers 49 -13.4 595 5 A worldwide supplier of messaging and intelligent network systems for operators Tecnomen Oyj 40 -35.4 457 and service providers The leading provider of centrally managed security solutions for the mobile Chapter F-Secure 39 -4.5 306 enterprise Stonesoft Oyj A global supplier of security platform software 30 -75.3 336 Sysopen Oyj One of the leading independent integrated e-Business solution providers 29 10.0 323 TJ Group Oyj A European provider of Extended CRM solutions 28 -57.6 321 SSH Communications A world-leading supplier of managed security middleware (cryptography and 17 -83.9 147 Security authentication) Sources: Helsinki Stock Exhange (www.hex.com), Top 500 database by Talouselämä business periodical, companies' websites. Exchange was the most internationalized one in the world, as Box 2. Nokia--A Big Company in a Small Country measured by market value owned by foreigners. Contrary to the Israeli case, for example, smaller Finnish companies have Nokia and Finland not made initial public offerings in NASDAQ or other foreign Nokia is by far the biggest company in Finland. It markets. They have nevertheless benefited from the rapidly accounts for one-fifth of the country's total exports increasing availability of venture capital finance since the and close to 3 percent of its GDP. But its role is even early 1990s (Hyytinen and Pajarinen 2002).13 more important in strategically important activities like R&D and internationalization of business. Nokia's Creative Destruction share in total business sector R&D is 50 percent, and of total national research and development some Clearly, a country's historical developments and one third. Hence, as a performer of R&D, Nokia is macroeconomic environment provide the general conditions bigger than the whole Finnish university sector. More for its economic development and microeconomic than 60 percent of Nokia's R&D (e3 billion in 2002) is conducted in Finland. Nokia employs 20,000 people in restructuring. For Finland, World War II and the recession Finland, of which more than half are in R&D. of the early 1990s provided clear breaks from the past. These events, together with the country's natural environment Nokia in the Finnish Economy and lack of natural resources, fostered pragmatism and a Nokia's 2002 Share in straightforward culture in both politics and business. The GDP 2.7% relatively poor Finns simply could not afford inflexibility or R&D (GERD) 35% bureaucracy--they had to adapt to the challenges imposed by the internationalizing world. Even in the deepest crisis, political Exports 21% and economic institutions remained functional, and thus the Employment 1% necessary adjustments took place in an orderly manner. Employment, manufacturing 5% Market valuation of Helsinki Stock Exhange 60% Vast unemployment in the 1990s gave the ICT cluster the Source: ETLA estimates. large recruitment pool necessary for its expansion. The public educational system also responded to the content and volume needs in ICT-related education. Furthermore, the collapse of 99 ICT provision. ICT penetration rates are nevertheless quite the eastern trade relaxed resource constraints within firms, high and the country is a leader in certain types of ICT usage, which could then be targeted to the development of ICT for example, online banking and mobile payments. (including GSM) and the expansion that followed. Giant Maliranta and Rouvinen (2003) use firm-level data to study Role of Public Policies Wireless the effects of ICT usage. The average effect in Finland is The institutionalization and strengthening of science and a almost exactly the same as the mean estimate calculated to technology policies began in the early 1960s. Important across tens of similar international studies. There is, however, changes that contributed to the knowledge-driven growth huge variation across firms. Although in most respects and expansion of the ICT sector took place throughout the Finland is also an advanced user of ICT, it nevertheless seems following decades. The main target of these policies was that as a user it is not as exceptional as it is as a producer. This to strengthen the science and technology base of industry ransformationTs is somewhat alarming, as the long-run economic effects of (Lemola 2002). ICT are mostly mediated via its use. In the beginning of the 1980s, technology policy became inland'F increasingly target-oriented and systematic. The National Can We Explain It? Technology Agency (Tekes) was established in 1982 to Little:Y coordinate public R&D support and related efforts, such STUD New Markets, Reduced Financial Constraints as national technology programs. Technology transfer and commercialization of research results were emphasized. CASE 5 The liberalization of global markets for goods, services, Tekes and its programs became important instruments capital, and technology, initiated by developments in the for implementing policies. The focus of the new agency's United Kingdom and the United States in the late 1970s, led operations was information technology. In fact, two extensive Chapter to a globalization boom in the mid 1980s. Finnish companies information technology programs had already been initiated gained access to new markets, dependency on domestic banks before Tekes was established. for finance was reduced, and capital constraints were relaxed. Larger Finnish companies gained direct access to foreign Towards the end of the 1980s, a more systemic view on investors. There was a huge influx of capital to Finland in policymaking was adopted. In the 1990s, the Science and the mid 1990s, and for a couple of years the Helsinki Stock Technology Policy Council, a high-level body advising the Cabinet and the President on science and technology radio technology had started in the early 1920s. As suggested matters, introduced the national innovation system as a basic above, it "lurked in the shadows" in many Finnish firms well framework for policymaking. Innovation was seen as having a before it had commercial applications. This was driven by the systemic character, contrary to the traditional linear innovation fact that amateur radio was a popular hobby in Finland. model. This enhanced cooperation between various policy agencies and improved possibilities for making use of emerging NMT and GSM--Winning Standards complex ICT. The systemic view also emphasized the role of Telecommunications standardization in the Nordic and education in adopting, diffusing, and utilizing new technologies European contexts may be the single biggest explanatory factor (see Georghiou, Smith, Toivanen, and Ylä-Anttila 2003). in the Finnish ICT success. Finland was an early adopter of Booming Demand first NMT and then GSM, both of which eventually proved to be the "winning technologies" in their eras. During and prior to the cold war era, telecommunications operation was considered a natural monopoly and equipment Early on, NMT provided critical mass and relatively high manufacturing was largely kept national for strategic reasons. penetration rates, which led to early recovery of development Since then, both operation and equipment markets have costs as well as accumulation of hands-on knowledge and been almost completely deregulated and liberalized. Finnish scale benefits. Network benefits of both production and ICT firms had ample experience operating in a competitive consumption also accumulated quickly. environment with diverse customer needs, unlike many of their international competitors. Besides having a history Upon the transition to digital technologies, Nokia bet heavily of telecommunications competition that dated back over a on GSM as the second-generation (2G) standard, which hundred years, Finland was also some three years ahead of eventually commanded three-quarters of the worldwide user other industrialized countries in taking the final steps towards base. Nokia managed to capitalize on its early lead in both completely deregulated communications markets. GSM networks and handsets. In mobile telecommunications in particular, deregulation The fact that mobile telecommunications standards were brought about eager "second-tier" operators and service agreed beforehand rather than being completely or in part providers that wanted to deploy new networks rapidly and determined by market forces, clearly aided entrants and 100 with a minimum of technical problems. Former monopoly market creation. The settlement of these and subsequent operators were forced to respond by upgrading their standards was in part based on demonstrations, where the Giant networks. Competition, and resulting lower prices, fueled benefits of a given technological solution could be shown in demand, which in turn led to further investments. Thus, the an open competition. Nokia has been quite successful in these industry was indeed in a virtuous cycle in the 1990s. competitions, and thus it has considerably influenced the Wireless a formation of these standards. to The non-telecom ICT market was also booming. The geographically dispersed multinational enterprises had new Advanced Users demands for ICT-related equipment and services. Rapidly Scandinavians seem to be accustomed, and therefore quite falling equipment prices boosted both business and consumer willing, to test new technologies. In the early years of mobile ransformationTs use. The Internet went mainstream in the mid 1990s; the telecommunications, new generations of phones always mobile phone became a mass-market product around the caused quite a stir and "forced" many users to shop for an same time, although initially these two developments were inland'F upgrade. Fortunately, customer needs in these markets not directly related. preceded those elsewhere, thus giving somewhat of a Little:Y first-mover advantage to the Scandinavian firms. Thus, Technological Opportunity the Scandinavian market was a rather happy marriage of STUD Digitalization was a major technological breakthrough in technological competence in both production and use. voice and data storage, processing, and transmission. It was CASE As shown above, all of the Scandinavian countries were 5 important for Finland, as it provided an opportunity for new players with no experience or vested interests in computing present in the early NMT markets, but only Nokia and or communication. Finland had sufficient expertise in Ericsson stood the test of time. One of the reasons for this Chapter digital technologies at large and in telecommunications in may be the fact that these two also had a strong presence on particular, both of which were absolutely vital for the big the network side, giving them a thorough understanding of GSM breakthrough.14 the whole system. Radio technology, in addition to a profound understanding of Nokia's expertise in networks was considerably enhanced telecommunications, was one of the prerequisites for building by technologically advanced domestic operators who were a mobile telephone system. University-level education in interested in the latest gadgets but at the same time quite Box 3. Nokia Success Factors Nokia's sales were e30 billion (31 billion USD) in 2002, thus exceeding the annual budget of the state of Finland. At the end of 2002 it had three business groups: Mobile Phones (77 percent of net sales), Networks (22 percent of net sales), and Ventures Organization. It employed over 50,000 people in 2002, of which more than 40 percent were in Finland. Ninety percent of its shares were held abroad. At the end of 2002 it had production centers in nine and R&D centers in 15 countries. In a decade, Nokia's (nominal) sales have grown 10-fold Nokia--Key Figures and its share price has grown over 70-fold. How did 1992 2002 Nokia do it? The underlying market trends and general factors are considered in the text; in this box we look for Market value (e billions, end of year) 1,028 72,300 explanations inside the company. Net sales (e billions) 3,056 30,016 of which abroad (%) 80.0 98.8 SUCCESS FACTORS Profit margin 1.7 19.0 (%, operating profit per net sales) The Foundations--Technology Employment 26,770 52,700 Technology at Nokia consists of many things, including, of which abroad (%) 48.6 57.1 first and foremost, its own R&D. Also important have R&D (%, R&D expenditure per net sales) 6.1 10.2 been efforts to promote prevailing and new industry of which abroad (%, authors' estimates) 30.0 35.0 standards, a broad patenting strategy, as well as technology at production, including its "platform Sources: Top 500 database by Talouselämä business periodical, Nokia's thinking" and logistics to and from the factory. annual reports, ETLA estimates. The initial impetus for much of Nokia's R&D effort has been direct or indirect (e.g., standards) customer needs. Oftentimes the work was conducted with outside partners or in joint ventures. In the late 1980s Nokia Research Center was established to coordinate and support R&D efforts in various business groups. Currently the center primarily serves the business units. The business units also have their own R&D centers. NMT, GSM, and UMTS standards--all vitally important for Nokia--are discussed in the text. The company's latest efforts in promoting standards go beyond telecommunications protocols. In a combined effort with other manufacturers, Symbia is being promoted as a standard handset operating system. In Open Mobile Alliance, more than 300 companies promote 101 open standard solutions for interoperable mobile services. Jacques Noels, a Frenchman leading Nokia Consumer Electronics from 1988 to 1992, drew the attention of Nokia's Giant management to the important role of a solid patenting strategy (Häikiö 2001, pp. 21­22, 153). He noted that in the late 1980s, Japanese, Korean, and Taiwanese ICT companies were preyed upon by some US manufacturers with strong patent portfolios. In 1988, after reaching a 10 percent market share in the United States, Nokia was predictably sued by Motorola for alleged patent violations. The case was settled out of court. After the incident, Nokia started to take Wireless a determined actions to expand its patent portfolio. to "Platform thinking" is one of the cornerstones of Nokia Mobile Phone's R&D and production strategy. Its aim is to develop a manageable set of standard subsystems or platforms, a combination of which then forms a specific handset. A platform includes necessary design, technical, and commercial specifications. The number of specialized, as opposed to industry standard, components is kept to a minimum. As a consequence of this strategy, Nokia has been able to outsource most of its component production and assembly, while focusing itself primarily on brand management, logistics, and key ransformationTs software components (SEC 2001). Focus--From Technology to Lifestyle-Driven Consumption inland'F Nokia has carefully attended to customer needs and has valued long-term customer relationships. In practice this has shown in the company's close cooperation with operators in the business side, and in offering desirable features, design, Little:Y and branding on the consumer side. STUD In handsets Nokia was among the first to offer curvy "pocket-fitting" designs with integrated antennas, screens with sufficient contrast and size for comfortable reading, end-user customization such as exchangeable covers, and CASE downloadable ring tones and logos, as well as entertainment such as off- and online games. While all of these seem 5 obvious now, it took surprisingly long before they became part of the standard setup. Surprisingly enough, Nokia's head designer is not a Finn. Since 1987, American Frank Nuovo (at first as a consultant, and Chapter since 1995 as the head of the Nokia Design Center in Los Angeles) has led handset designing. The name Nokia became the centerpiece of the company's branding strategy in 1991. Relatively early, "lifestyle consumption," as opposed to, for example, technological excellence, became the focal point in branding. A decade later, Nokia had become the strongest brand in the mobile market and one of the ten most valuable brands in the world. Approach--Internal and External Networking Day et al. (2001) argue that achieving a fine balance between separation and integration has been one of Nokia's key strengths. Various units have sufficient independence but they nevertheless have shared values, goals, strategies, and vision. Through team work, internal recruiting, job rotation, and informal personal networks across hierarchical levels, the company attempts to exploit the already available resources to the fullest. In Finnish culture, informal contracts and trust have been the norm--even in industrial relations. However, with progressing globalization, formal agreements have become a necessity. In external networking, Nokia has been active in outsourcing, partnerships, and alliances, while keeping its core activities such as branding and R&D mostly in-house. Organization--No-Nonsense Management Last but not least is management. Upon becoming the CEO, Jorma Ollila defined a relatively narrow focus for the company that it has followed ever since. Even during the heyday of the new economy, Nokia remained lean and focused. Maintaining this focus was undoubtedly aided by its increasingly international ownership structure. In the 1990s Nokia's managerial challenge was to manage rapid organic growth; in the new millenium the challenge has been to manage the ending of the growth. Nokia's growth was clearly aided by its agility and lack of bureaucracy. Although the company has Finnish roots and its executive board is populated by Finns, Nokia's orientation has been distinctively global. price conscious and always benchmarking domestic offerings What's Ahead? against foreign competition. Cooperation and Visionary Management All-IP World One of the key challenges of the Finnish ICT cluster is the Competition brings about efficient and lean organization. on-going convergence of voice and data communications, Somewhat paradoxically, cooperation has been equally information systems, consumer electronics, and digital important for the success of ICT in Finland. Indeed, content that is being tailored for these various channels and international comparisons (EU 2000; OECD 1999) suggest 102 devices. Mobile Internet or perhaps more appropriately that intense inter-organizational cooperation is one of the "whatever, wherever, and however desired," will introduce a essential features of the Finnish national innovation system. new playing field with diverse and seemingly different players. Giant As shown above, a diverse set of Finnish communications Indeed, participants in the respective industries are already expertise was eventually merged into Nokia. In the 1980s it competing in both handsets and networks, and this tendency Wireless was relatively similar to some other Finnish conglomerates, will only strengthen as Internet protocols (IP) increasingly a to but in the 1990s it transformed itself to something form the basis for all electronic communication. Over time exceptional. Despite its roots, Nokia was able to give up its the focus on equipment weakens as it becomes more diffused, forest-related activities and seems to have realized quite early and shifts to applications and content. that the Soviet trade was best treated as a "cash cow" used Finland has two major weaknesses in the all-IP future. First, it ransformationTs to finance developments elsewhere. Focusing on mobile communications was a rather bold move on Nokia's behalf in has little clout outside mobile telecommunication equipment. the early 1990s, but it has paid off handsomely. Thus, at least domestically, it cannot leverage market power in inland'F other domains as the industry is being transformed. Second, Although Finns are often accused of being too engineer- the all-IP world is not likely to favor the integrated and closed Little:Y oriented, Nokia has been less so than its closest competitors, architectures and business models of the telecommunications Swedish Ericsson and US Motorola. This may be due to its world. The first problem has been addressed by acquiring a STUD historically somewhat broader customer interface in both the broader set of competencies and forming alliances with the CASE operator and end-user side, Nokia's early lead in the handset leaders of the respective industries. The second problem can 5 market, and early industry developments. Nokia started to only be addressed by actually competing in the ever more emphasize design and branding before the competitors--it open and fragmented operating environment.15 Chapter anticipated that the mobile phone was going to become a mass-market consumer product. It seems that from early on Next Generation Networks Ericsson has envisioned itself as a system company, while In the mid 1980s, the International Telecommunications Nokia always identified itself as a handset company, although Union (ITU) assumed an active role in the introduction of the at times the network side commanded a large share of the next generation (third, 3G) standards. Although ITU pushed turnover. As compared to Ericsson and Motorola with long for one worldwide standard, eventually three became accepted traditions in the field, Nokia was clearly the challenger, and in International Mobile Telecommunications (IMT-2000) thus it had to be humble. guidelines: W-CDMA (better known as UMTS, Universal on" feature could be used to reach the goals of 3G. WLAN Mobile Telecommunication System), CDMA2000 (promoted nevertheless has a number of unsolved problems such as in particular by American Qualcomm) and the Chinese control for log-in and access rights, payment, and coverage, TD-SCDMA. Originally ITU's decision was considered a which have already been solved in 3G. It is too early to say win for the Nokia-Ericsson camp promoting UMTS, but early how the market will unfold, but most likely 3G and WLAN market developments seem to suggest that CDMA2000 is will coexist with in-between roaming as desired. progressing faster than expected. Industry Turbulence Europe attempted to maintain its lead in mobile There was an over-investment in virtually all ICT-related telecommunications by pushing for rapid deployment of activities in the late 1990s. In part these were driven by UMTS. In many European countries radio spectrums for 3G one-time events, such as deregulation and liberalization in operations were auctioned for over i100 billion in total. It major markets, the Y2K computer glitch, the introduction soon became clear that deployment and diffusion would be of the euro, and commercialization of the Internet--not to slower, network building costs higher, and expected revenue mention the new economy bubble. In hindsight it is easy per user lower than the licensees had anticipated. While the to say that the market participants should have anticipated auctions were designed to maximize the immediate pay-off some leveling-off in demand. But nobody could have for the public good (radio spectrum), the long-term effects anticipated the collapse of the ICT market that has taken were unanticipated. The rules of the auction explicitly place. The current market situation has taken a heavy toll prohibited secondary trading and defined how, when, by on the companies involved. The underlying factors of the whom, and with what standard the 3G networks were to be recent boom are nevertheless still there: real prices of digital set up. Thus, the operators were not making a technology computing power and communications drop at double-digit or even a business decision--they were deciding whether or annual rates, new applications of ICT that are discovered not they wanted to be in the (mobile) telecommunications every day and continue to boost productivity in business business; this was a question of their very existence. Currently and to improve our daily lives. Thus, while the medium- the operators' indebtedness due to auctions, combined with term prospects of the industry are gloomy, the longer-term the bearish financial market, is holding back the deployment prospects are considerably brighter. However, only some of 3G networks. of the current businesses will live to see the dawn of these 103 prospects. With the 3G auctions, Europe effectively did the exact opposite of what was intended; in effect, it taxed the UMTS standard What Kind of Mobile Culture? Giant over its rivals. In any case, by making a public decision favoring one technology over another, the auctions did away In a sense, the discussion of 3G vs. WLAN is also about how with technology neutrality, which is often considered one of the culture of using the technology evolves. Will a typical user Wireless a the golden rules in technology policymaking. The regulatory eventually require broadband access at all times and locations to failure in the 3G rollout has recently sparked requests for for streaming video and similar applications, or is s/he going public actions "reversing" the damage. to be happy having hotspots in areas of peak demand and limited communication ability elsewhere? And perhaps more The main benefit of the first generation digital (as compared importantly, for what and how much is s/he willing to pay? to analog) system was improved voice quality. The key promise ransformationTs of 3G is improved data communication. So far voice has been For the majority of us, the office or home desktop computer the key driver of mobile communication, although data is remains the most important means for storing the flow of our inland'F gaining ground. Upon bidding for a spectrum, the operators lives. A number of small electronic appliances, mobile phones, seem to have assumed a rapid and large shift from voice to along with personal digital assistants, electronic organizers as Little:Y data. This shift is indeed taking place, but from the European well as lap- and palmtops, are trying to take over the personal point of view, somewhat differently than they had expected. computer in this respect and to become all-encompassing STUD "personal trusted devices," perhaps even replacing our wallets CASE Whereas Europeans seem to have assumed that the and passports. 5 mobile Internet would be an extension of mobile telecommunications, the American route of extending wire- Depending on the actual configuration, Finland may stay Chapter line data communications architectures to wireless local area on the cutting edge and continue to serve as a useful testing networks (WLANs, also known as Wi-Fi or 802.11x, where x ground for new applications, or it may have to play catch-up refers to the incarnation) seems to have an early market lead. with respect to some other lead-user concentrations such as Japan or some US regions. Individuals, both as consumers Arguably, a combination of WLAN and an intermediate and business representatives, will ultimately decide who wins generation (2.5G, e.g., GPRS, general packet radio service) in the market place. mobile telecommunications system having the "always Conclusion the economy's most important competitive advantages as the growth of a highly educated labor force slows down. Viability of the Finnish Model Changing Policy Priorities Upon its birth as an independent nation, Finland had a The performance of the Finnish economy in the 1990s was somewhat disadvantageous starting point. But as Porter remarkable. It looked as though the economy had found a (1990), among others, has noted, in the long run selective unique way to combine high social security, dynamism, and disadvantages can be turned to sources of national growth. Successful policies contributing to the Finnish success competitiveness. Decades of a relatively stable political and story were equated with a new economic model for the economic environment, as well as a shared national vision information society (see Castells and Himanen 2002). on how to build the country, have been important factors in Finland's success. While in hindsight the Finnish public policies of the 1990s were successful, the "Finnish miracle" can only be partially Finland was lagging behind the rest of Europe in industrial explained by public policies pursued in the 1990s. The development after World War II. It consciously upgraded necessary policy changes had already been made in the its skills and competencies and in half a century caught 1980s, with some having come as early as the 1970s. Building up with the leaders. The most recent push in the country's competitive advantages takes time. There was no master plan development nevertheless involves many coincidental factors to restructure the Finnish economy and industry; rather, an and good timing. Thus, Finland has been fortunate, but the array of policy measures were working to the same end over fact that it was well-positioned when the opportunity arose an extended period of time (see Georghiou et al. 2003). had nothing to do with luck. Historically Finland has played catch-up; now it is slowly learning that it is considerably However, policies pursued since the early 1990s have had harder to be one of the leaders. their role as well. There was a major shift in priorities as a consequence of European integration and changes in As shown above, the confluence of several factors led to comparative advantages of the economy; focus shifted from the ICT boom in Finland. The country itself provided short-term macroeconomic to long-term microeconomic particularly fertile framework conditions and had policies. It is nevertheless true that sound but stringent 104 accumulated a great deal of ICT-related expertise. Due to macroeconomic policies contributed to the recovery. By the unfavorable macroeconomic shocks, it had resources available end of 1990s the high double-deficit of the current account and a desperate need for something new. Digitalization Giant and public sector finances vanished and unemployment had presented a technological opportunity. Furthermore, the started to fall. While joining the EU and EMU narrowed the country had early exposure to two successive generations of scope of macroeconomic policies, it also brought new stability Wireless winning standards. Finnish firms had already "laboratory a with moderate inflation, low real interest rates, and increasing to tested" competition when deregulation created a wide open predictability of fiscal policies. world market. On top of this, there was a company that had the vision and a strategy to make it happen. These factors, Under these circumstances, the increased emphasis on combined with quite a few lucky breaks, served to put Finland microeconomic and especially innovation policies has out in front of the pack. ransformationTs been a successful choice. These new policies are based on indirect measures aimed at influencing firm behavior. Although the scope of the Finnish ICT cluster has broadened Policies concentrate on rectifying market failures, promoting inland'F in recent years, it remains highly specialized in mobile competition, and improving framework conditions. communications. The cluster has benefited greatly from These types of enabling policies fit well to the economic Little:Y having a powerful locomotive and system integrator, environment of the 21st century. The key priorities today Nokia. Although smaller Finnish companies have made are innovation policies and policies for enhancing the STUD efforts to decrease their dependency on their key customer, functioning of capital markets. in many cases their fortunes are still tied to it. Nokia has CASE 5 been able to maintain and even strengthen its position in Although the high-road strategy of innovation and global competition, and to a limited extent can influence technology has been emphasized only recently, it was developments in the market place. However, the fact remains Chapter initiated in the 1970s and 1980s. In the 1980s, long before that the whole sector is in turbulence. the rise and fall of the "new economy," Finnish technology policy began to give high priority to ICT. These policies were Major future challenges for the Finnish economy include an continued in the following decade and they undoubtedly aging population and increasing needs for flexibility in the contributed to the success story of the 1990s. Finnish R&D labor market. The working population will inevitably start investment and networking between public and private to decline in only a couple of years. This will weaken one of actors rose to new heights. What Is to Be Learned? should adapt to changes in operating environment and The Finnish experience suggests that a deep crisis often should take into account lessons learned from experiences precedes considerable and lasting shifts in economic and elsewhere. At the same time, they should build on national social structures. In general, people seldom have a desire to strengths and not be swayed by wishful thinking. Innovation take great leaps forward into the unknown, but a crisis may policy must have a long-term strategic perspective. Hence, bring about a willingness to accept the inevitable. Major policies must be consistent over the long term and not adjustments in "mental models" may also make one better dictated by short-term cyclical or political considerations. able to adapt to further changes. Constant benchmarking of performance is necessary for the assessment of policies. Moreover, it appears that small countries with greater homogeneity and closer interaction (networking) among The case of Finland is a good example of the interaction economic agents may well have an advantage in adjusting to of several growth-generating factors. Favorable factor new technologies and, hence, in generating economic growth. conditions and a high level of investment are not sufficient. This is a kind of a small country paradox, since most of the In order to achieve sustained growth, more emphasis has to economic literature (including new growth theories) suggests be put on adoption of innovations, learning, and increasing that larger countries grow faster than smaller ones, and should specialization. Growth that is not based on constantly rising thus achieve higher levels of income (see Lundvall 1999). productivity is unsustainable. The Finnish response to the most recent crisis was to open up the economy, modernize social structures, strengthen public Reading Guide finance, and shift policies from direct business involvement to Pajarinen, Rouvinen, and Ylä-Anttila (1998) consider Finnish building framework conditions for private business. competitiveness in the globalizing world. Hernesniemi, Lammi, and Ylä-Anttila (1996) discuss the micro-foundations The rapid turnaround of the Finnish economy would not of Finnish competitiveness and provide an overview of have been possible without the rise of the ICT cluster, which the Finnish industrial clusters. Some of this work has been in turn was facilitated by the convergence of a number summarized by Rouvinen and Ylä-Anttila (1999). Castells and of factors. Unfortunately we cannot perform real world Himanen (2002) discuss the "Finnish model" (reviewed in experiments to see what would have happened in a different 105 Ylä-Anttila 2003). environment, but it is our belief that even slight changes in events or their timing would have made a big difference. For The National Industrial Strategy by the Ministry of Trade Giant instance, had the remaining bits and pieces of the Finnish and Industry of Finland (Pietarinen and Ranki 1993) may communications sector, deregulated and liberalized from be seen as the starting point and original documentation of 1988 to 1994, been opened up a few years earlier, later, or Wireless the country's current industrial policy. In their evaluation a even in a different order, the situation would have been quite of the Finnish national innovation system, Georghiou, to different. If, for example, Radiolinja had built an analog Smith, Toivanen, and Ylä-Anttila (2003) summarize recent NMT network or, along with PTO, postponed its GSM developments in policymaking and consider future prospects. introduction a few years, Nokia's international GSM premiere and a progressive market as a homebase would have been Paija (2001) provides a comprehensive overview of the endangered. Had Finland not experienced the recession, there ransformationTs Finnish ICT cluster. This work has partly been updated would have been fewer resources targeted to the at-the-time in Paija and Rouvinen (2003). Koski, Rouvinen, and Ylä- uncertain ICT business. Other aspects of recent developments Anttila (2002) have a comparative perspective on ICT in inland'F provoke similar thought exercises and conclusions. the EU countries, but they also touch upon the Finnish case. Steinbock (2002) has a global perspective, but he also Little:Y Although the history of Finnish ICT-related policymaking discusses Finnish experiences. STUD is full of right decisions at the right time, they have mostly been made for the wrong reasons. For instance, the political The three volume magnum opus by Häikiö (2001a; 2001b; CASE wrangling over GSM licenses did not even touch upon 5 2001c) is the most authoritative piece of writing on the the economic and social benefits that would be gained by history of Nokia. With unrestricted access to the company's competition in and early adoption of digital mobile telephony. internal archives and personnel, he provides an unmatched Chapter level of detail. An abbreviated version is also available in Because there are no universally applicable policies that every English (Häikiö 2002). Ali-Yrkkö, Paija, Reilly, and Ylä-Anttila country should adopt, the Finnish model cannot be replicated (2000) discuss the role of Nokia in the Finnish economy. as such. There are nevertheless some general principles of Ali-Yrkkö (2003) discusses the role of Nokia in the Finnish sound policymaking that can and should be imitated. Policies national innovation system. Ali-Yrkkö (2001) takes a detailed look at the company's partner network in Finland. Ali-Yrkkö, Paija, Rouvinen, and Ylä-Anttila (2003) look at the company nevertheless had the indirect effect of making Nokia very cautious in its acquisitions, emphasizing cost-efficiency and from a global management perspective. profitability and the importance of maintaining a narrow business focus. Palmberg (2002) examines the cases of DX200 and NMT from a public procurement perspective. Palmberg and 8 At the time, Technophone was the second largest mobile phone manufacturer in Europe. Martikainen (2003) discuss the role of GSM and related technologies in Finland. 9 According to a Nokia director Kari-Pekka Wilska, the Tandy cooperation considerably enhanced the company's customer orientation. In the leading Finnish daily newspaper Helsingin Acknowledgements Sanomat (7 April 2002, p. E3--in Finnish, translated by the authors), he notes: "We had a Finnish engineer's mindset. As This chapter was written as a part of the Wireless a major distributor of consumer products, Tandy's view was Communication Research Program (brie-etla.org) of BRIE, totally different. . . . We learned that even though the product can command a high price in the market place, it does not have the Berkeley Roundtable on the International Economy at the to be expensive to produce." University of California at Berkeley, and ETLA, the Research Institute of the Finnish Economy. It has benefited from 10 There was even an attempt to sell the company to Ericsson, which in hindsight unwisely showed no interest, although earlier work and insights of Jyrki Ali-Yrkkö and Laura Paija. it had made a proposal for a joint venture in the mid 1980s; Christopher Palmberg and Olli Martikainen have provided Siemens showed interest in the company but negotiations were detailed comments and suggestions, and Palmberg has kindly discontinued. provided the box on GSM. 11 ICT sectors as defined at the source. The reference year may vary. See the original source for further notes. Notes 12 We approximate the ICT cluster with the following NACE industries: 30 office, accounting and computing machinery, 1 Recall that from the 13th century until 1809 Finland was 32 radio, Television and communications equipment, 64 post under Swedish reign, after which it was a semi-autonomous and telecommunications, 72 computer and related activities. grand duchy of Imperial Russia until it gained independence in This is considerably narrower than Paija's (2001) "original" ICT 1917. Due to its strategic importance, the Tsar had established cluster definition. a telegraph monopoly in the country shortly after Morse's original patent in 1837. Fortunately, the Tsar's reaction to Bell's 1876 patent for telephone was somewhat different, 13 The recruitment of Mr. Jorma Ollila (Nokia's current CEO) from the London office of American Citibank in 1985 was 106 perhaps because the telephone was considered "an instrument of entertainment." Interestingly, at the time that Finnish motivated by the increasing role of international finance. The telephony was being established, nearby Stockholm had more following year he took the first steps towards implementing Nokia's current ownership structure by managing a directed Giant telephones than any other city in the world (Holst 2003). share issue to one of George Soros' funds (Häikiö 2001c, pp. 75, 78). After Finland removed the remaining restrictions on 2 Coincidently, in the very same year, Eric Tigerstedt, a Finnish foreign ownership in 1993, Nokia started sizable equity issues inventor who was well ahead of his time, attempted to patent Wireless in international markets. In 1994 it was listed to the New York a a "pocketsize folding telephone with a very thin carbon Stock Exchange. According to Häikiö (2001b, p. 195), Nokia is to microphone." the least domestically-owned company among the hundred biggest companies in the world. 3 There are also three or more significant operators in each of the following: long distance, international telecommunication 14 Nokia electronics, established in 1960, resold computers, services, and mobile telephony. provided computing services, and also manufactured some of ransformationTs its own electronic devices. Sales were modest, but the 1960s 4 Mobira was the fourth in the global handset market after may be seen as an era of competence building in digital Motorola, NEC, and OKI. technologies. The real breakthrough and expansion came in the 1970s. In 1972 Nokia signed a contract to deliver a large inland'F 5 Weighing approximately five kilograms, the original NMT computer system for the Loviisa nuclear plant. In 1973 Nokia terminals were not quite the handsets of today. decided to start its own computer manufacturing after a Little:Y major order from a local bank (Kansallis Banking Group). In 6 Indeed, in the late 1980s Nokia was the biggest manufacturer order to capitalize on accumulated computer expertise and of personal computers and color television sets in the Nordic to leverage its phone cable business, Nokia became involved STUD countries and was among the top 10 in Europe. In 1986 Nokia in fixed-line digital telecommunications by acquiring a had 10 divisions, 45 business units, and 180 lines of business. license for a central telephone exchange from CIT-Alcatel in CASE 1976. Its own (in part developed at Televa) digital exchange, 5 7 The area in the middle of the figure indicates Nokia's the now legendary DX200, was introduced in 1982. It was disastrous attempt to buy its way into television based on a standard Intel microprocessor and was thus manufacturing; cumulative losses amounted to e1.3 billion easily programmable and upgradeable. With its distributed Chapter in year 2000 prices (Häikiö 2001b, p. 126). Although it seems processing power, all-digital silicon architecture, and industry- plausible to argue the experiences gained aided Nokia in its standard components and programming language, it went mobile communications businesses, there is no evidence to against prevailing beliefs about telecommunications. DX200 support the argument (see, e.g., Häikiö 2001b, pp. 115, 254). was amazingly profitable in fixed networks and later formed There was little exchange of personnel between the units. the foundations of Nokia's wireless network systems. With The communications business separately built its production altogether 2 thousand person-years of R&D effort spanning facilities, logistics, and distribution channels. There is also no over 10 years (Keijo Olkkola, as cited in Häikiö 2001a, p. 275), evidence of sharing ideas in branding, design, or management it may be the biggest single R&D project in Finnish history (see between the two lines of business. The failures in television also Palmberg 2002). 15 The management of Nokia understood opportunities Holst, G.-M. 2003. Information and Communication Technology and threats in the all-IP world quite clearly in the mid in Finland and Sweden--Addicted Users Pushing Creative 1990s. Internally its business impact was likened to that Engineers to "Killer Applications". Stockholm: TELDOK of digitalization some years earlier. Partly as a response, a (Report 147). corporate venturing unit New Ventures Organization was established in 1998. Honkapohja, S. and E. Koskela. 1999. "The Economic Crisis of the 1990s in Finland," Economic Policy 14, no. 29, pp. 399­436. References Hyytinen, A.and M. Pajarinen. 2002. "Financing of Technology- Intensive Small Businesses: Some Evidence of the Uniqueness of Ali-Yrkkö, J. 2001. Nokia's Network--Gaining Competitiveness the ICT Industry," ETLA Discussion Paper No. 813. Helsinki: The from Co-Operation. Helsinki: Taloustieto (ETLA B 174). Research Institute of the Finnish Economy. Ali-Yrkkö, J. 2003. "Nokia--A Giant in the Finnish Innovation Jalava, J. and M. Pohjola. 2002. "Economic Growth in the New System." In G. Schienstock, ed., Catching Up and Forging Economy: Evidence from Advanced Economies," Information Ahead: The Finnish Success Story. Albershot, Hants, UK: Edward Economics And Policy 14, no. 2, pp. 189­210. Elgar. Jorgenson, D. W. 2001. "Information Technology and the U.S. Ali-Yrkkö, J. and R. Hermans. 2002. "Nokia in the Finnish Economy," American Economic Review 91, no. 1, pp. 1­42. Innovation System," ETLA Discussion Papers No. 811. Helsinki: The Research Institute of the Finnish Economy. Kiander, J. and P. Vartia. 1996. "The Great Depression of the 1990s in Finland," Finnish Economic Papers 9, no. 1, pp. 72­88. Ali-Yrkkö, J., L. Paija, C. Reilly, and P. Ylä-Anttila. 2000. NOKIA--A Big Company in a Small Country. Helsinki: Taloustieto (ETLA B Koski, H., P. Rouvinen, and P. Ylä-Anttila. 2002. "ICT Clusters in 162). Europe: The Great Central Banana and Small Nordic Potato," Information Economics and Policy 14, no. 2, pp. 145­165. Ali-Yrkkö, J., L. Paija, P. Rouvinen, and P. Ylä-Anttila. 2003. "Nokia: An Extended Compnay with Local and Global Operations." In P. Lemola, T. 2002. "Convergence of National Science and Technology N. Gooderham and O. Nordhaug, International Management: Policies: the case of Finland," Research Policy 31, nos. 8­9, pp. Cross-Boundary Challenges. Oxford and Boston: Blackwell. 1481­1490. Castells, M. and P. Himanen. 2002. The Information Society and the Lundvall, B.-Å. 1999. "Nation States, Social Capital and Economic Welfare State--The Finnish Model. New York: Oxford University Development--A Systems's Approach to Knowledge Press (Sitra 250). Creation and Learning," Paper presented at the Innovation, Competitiveness and Environment in Central America: A Day, J. D., P. Y. Mang, A. Richter, and J. Roberts. 2001. "The Systems of Innovation Approach, conference in Costa Rica, Innovative Organization: Why New Ventures Need More than a 107 February 22­23, 1999. Room of Their Own." The McKinsey Quarterly 2, pp. 21­31. Maliranta, M., and P. Rouvinen. 2003. "Productivity Effects of ICT in European Telecommunications Standards Institute (ETSI). 2002. Giant Finnish Business," ETLA Discussion Paper No. 852. Helsinki: The Intellectual Property Rights (IPRs); Essential, or Potentially Research Institute of the Finnish Economy. Essential, IPRs Notified to ETSI in Respect to ETSI Standards. Sophia Antipolis, France: ETSI (ETSI SR 000 314 V1.9.1 Wireless Ojainmaa, K. 1994. International Competitive Advantage of (2002­11)). a the Finnish Chemical Forest Industry. Helsinki: Taloustieto to (ETLA C 66). European Union. 2000. Towards a European Research Area. Brussels: European Commission (COM (2000)6). Organisation for Economic Co-operation and Development (OECD). 1999. Science, Technology and Industry Scoreboard-- Georghiou, L., K. Smith, O. Toivanen, and P. Ylä-Anttila. 2003. Benchmarking Knowledge-based Economies. Paris: Evaluation of the Finnish Innovation Support System. Helsinki: Organisation for Economic Co-operation and Development. Ministry of Trade and Industry (Publications 5/2003). ransformationTs ------. 2002a. Education at Glance. Paris: Organization for Häikiö, M. 2001a. Nokia Oyj:n historia, vol. 1, Fuusio. Helsinki: Economic Co-operation and Development. Edita. inland'F ------. 2002b. Measuring the Information Economy. Paris: ------. 2001b. Nokia Oyj:n historia, vol. 3, Globalisaatio. Helsinki: Organization for Economic Co-operation and Development. Little:Y Edita. ------. 2003. Communications Outlook. Paris: Organization for STUD ------. 2001c. Nokia Oyj:n historia, vol. 2, Sturm und Drang. Economic Co-operation and Development. Helsinki: Edita. CASE 5 Paija, L. 2001. "The ICT Cluster in Finland--Can We Explain It?" In ------. 2002. Nokia: The Inside Story. London: Prentice Hall (for L. Paija, ed., Finnish ICT Cluster in the Digital Economy. Helsinki: Financial Times). Taloustieto (ETLA B 176). Chapter Hernesniemi, H., M. Lammi, and P. Ylä-Anttila. 1996. Advantage Paija, L. and P. Rouvinen. 2003. "Evolution of the Finnish ICT Finland: The Future of Finnish Industries. Helsinki: Taloustieto cluster." In G. Schienstock, ed., Catching Up and Forging Ahead: (ETLA B 113, Sitra 149). The Finnish Success Story. Albershot, Hants, UK: Edward Elgar. Hjerppe, R., R. Hjerppe, K. Mannermaa, O. E. Niitamo, and K. Pajarinen, M., P. Rouvinen, and P. Ylä-Anttila. 1998. Small Country Siltari. 1976. Suomen teollisuus ja teollinen käsityö 1900­1965. Strategies in Global Competition--Benchmarking the Finnish Helsinki: Bank of Finland. Case. Helsinki: Taloustieto (ETLA B 144, Sitra 203). Palmberg, C. 2002. "Technological Systems and Competent Procurers--The Transformation of Nokia and the Finnish Telecom Industry Revised?" Telecommunications Policy 26, nos. 3­4, pp. 129­148. Palmberg, C. and O. Martikainen. 2003. "Overcoming a Technological Discontinuity--The Case of the Finnish Telecom Industry and the GSM," ETLA Discussion Paper No. 855. Helsinki: The Research Institute of the Finnish Economy. Pietarinen, M. and R. Ranki. 1993. National Industrial Strategy for Finland. Helsinki: Ministry of Trade and Industry (Publications 3/1993). Porter, M. E. 1990. The Competitive Advantage of Nations. London: MacMillan. Raumolin, J. 1992. "The Diffusion of Technology in the Forest and Mining Sector in Finland." In S. Vuori and P. Ylä-Anttila, eds., Mastering Technology Diffusion--The Finnish Experience. Helsinki: Taloustieto (ETLA B 82). Rouvinen, P. and P. Ylä-Anttila. 1999. "Finnish Clusters and New Industrial Policymaking." In OECD Proceedings, Boosting Innovation: The Cluster Approach. Paris: Organisation for Economic Co-operation and Development. Securities and Exchange Commission (SEC). 2001. FORM 20-F REPORT--Nokia Corporation." Washington D.C.: Securities and Exchange Commission. Steinbock, D. 2002. Wireless Horizon: Strategy and Competition in the Worldwide Mobile Marketplace. New York: AMACOM. "The 500 Largest Corporations in the World," 2003. Fortune. 108 (European edition) 48, no. 2, pp. F1­F10. Ylä-Anttila, P. 2003. The Information Society and the Welfare Giant State--The Finnish Model (Book review). Research Policy 32, no. 8, pp. 1533­1534. Wireless a to ransformationTs inland'F Little:Y STUD CASE 5 Chapter Part 2 Country Profiles Part 3 Country Profiles How To Read the Country Tables The Country Tables section presents the Algeria.dz rankings of the 102 countries analyzed in the Global Information Technology Report 2003­2004. It provides a snapshot of a country's level of ICT Key Indicators Networked Readiness Index Rank development by grouping information 87 Population, 2002 31,293,000 2003­2004 (102 countries) under the following sections: Main telephone lines in operation, 2002 1,908,000 growth (%) 1999­2002 19% 1. Key indicators concerning the level Cellular mobile telephone subscribers, 2002 400,000 growth (%) 1999­2002 456% Readiness Component Index 80 of ICT diffusion includes indicators Personal computers, 2002 220,000 Individual Readiness 76 growth (%) 1999­2002 22% Business Readiness 83 of population, the number of Internet users (estimated), 2002 500,000 Government Readiness 83 households, main telephone lines, growth (%) 1999­2002 733% Public expenditure on education (per capita), 2000 59 Adult illiteracy (%), 2001 86 cellular phones, television receivers, Source: Data from International Telecommunication Union STARS database Tertiary enrollment (gross %), 2001 or most recent available 67 cable television subscribers, Radios (per 1,000 inhabitants), 2001 or most recent available 73 RANK/102 Television sets (per 1,000 inhabitants), 2001 79 personal computers, Internet users, Environment Component Index 94 Households online (as % of households with computers), 2002 88 Market Environment and public pay telephones. The 79 Quality of math and science education, 2003 73 Political and Regulatory Environment 94 Affordability of local fixed line calls (as % of per capita GDP), 2001 39 International Telecommunication Infrastructure Environment 91 Affordability of Internet telephone access (as % of per capita GDP), 2001 18 Union is the source of the data in State of cluster development, 2003 97 Affordability of Internet service provider fees (as % of per capita GDP), 2001 71 Ease of obtaining telephone lines, 2003 90 the Key Indicators section. Venture capital availability, 2003 101 Cost of business telephone monthly subscription (as % of per capita GDP),2002 40 Subsidies for firm-level R&D, 2003 59 Extent of staff training, 2003 87 Quality of scientific research institutions, 2003 88 2. Overall Networked Readiness Index Quality of business schools, 2003 86 Availability of scientists and engineers, 2003 23 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 52 (NRI) ranking for 2003­2004 gives Brain drain, 2003 88 Government prioritization of ICT, 2003 80 Utility patents granted (per 1,000,000 inhabitants), 2002 72 111 immediate insight into the overall Government online presence, 2003 80 ICT manufactured exports (per capita), 2001 80 Government procurement of ICT, 2003 52 preparedness of a country to ICT service exports (per capita), 2001 57 participate in and benefit from the Overall administrative burden, 2003 99 Usage Component Index 89 Profiles Quality of the legal system, 2003 76 Individual Usage 74 networked world. Where available, Laws relating to ICT, 2003 100 Business Usage 93 the country's historical rank is Competition in the ISP sector, 2003 96 Government Usage 89 Personal computers (per 1,000 inhabitants), 2001 85 Country provided for comparison. Foreign ownership restrictions, 2003 96 Efficiency of the tax system, 2003 54 ISDN subscribers (per 1,000 inhabitants), 2001 56 2 Cable TV subscribers (per 1,000 inhabitants), 2001 57 Freedom of the press, 2003 56 3. Component indexes is divided into Internet users (per 1,000 inhabitants), 2001 96 artP Overall infrastructure quality, 2003 69 Computers installed in businesses (per 1,000 inhabitants), 2002 76 three sections corresponding to the Waiting time for telephone lines (years), 2000 90 Firm-level technology absorption, 2003 76 Telephone mainlines (per 1,000 inhabitants), 2001 73 index components: Environment, Prevalence of foreign technology licensing, 2003 92 Public pay phones (per 1,000 inhabitants), 2001 92 Government success in ICT promotion, 2003 91 Readiness, and Usage. Rankings for Internet servers (per 1,000,000 inhabitants), 2001 61 Government online services, 2003 68 a country can be found for each of the component indexes and for the subindexes comprising the component indexes. A listing of the variables is provided under each of contributing to a country's performance other countries. This can be done by the component indexes. Detailed in the environment component index examining the Data Rankings section country rankings for each variable by looking at the rankings of the of the Report, where one can study are presented. variables contributing to it, such as the performance of all 102 countries. venture capital availability or the state By looking at this information, and by of cluster development. By analyzing the performance of two identifying key areas of relative over- countries that are similar, one can and underperformance, one can gain The inferences that one draws from quickly assess their relative strengths a rapid understanding of a country's the ranking of a given country can be and weaknesses, as well as identify the networked readiness. For example, put into perspective by taking a closer key areas requiring improvement. one can identify key parameters look at the relative performance of List of Countries Algeria........................................... 113 Haiti .............................................. 147 Pakistan......................................... 181 Angola........................................... 114 Honduras.......................................148 Panama ......................................... 182 Argentina........................................115 Hong Kong SAR ............................. 149 Paraguay ....................................... 183 Australia ........................................ 116 Hungary......................................... 150 Peru...............................................184 Austria............................................117 Iceland........................................... 151 Philippines ..................................... 185 Bangladesh.................................... 118 India.............................................. 152 Poland ...........................................186 Belgium ......................................... 119 Indonesia....................................... 153 Portugal......................................... 187 Bolivia ........................................... 120 Ireland ........................................... 154 Romania ........................................188 Botswana....................................... 121 Israel ............................................. 155 Russian Federation......................... 189 Brazil ............................................. 122 Italy ............................................... 156 Senegal..........................................190 Bulgaria......................................... 123 Jamaica ......................................... 157 Serbia ............................................ 191 Cameroon...................................... 124 Japan............................................. 158 Singapore ...................................... 192 Canada.......................................... 125 Jordan ........................................... 159 Slovak Republic.............................. 193 Chad.............................................. 126 Kenya ............................................160 Slovenia.........................................194 Chile.............................................. 127 Korea............................................. 161 South Africa................................... 195 112 China............................................. 128 Latvia............................................. 162 Spain .............................................196 Colombia ....................................... 129 Lithuania........................................ 163 Sri Lanka........................................ 197 Profiles Costa Rica...................................... 130 Luxembourg...................................164 Sweden.......................................... 198 Croatia .......................................... 131 Macedonia, FYR............................. 165 Switzerland.................................... 199 Country 2 Czech Republic............................... 132 Madagascar...................................166 Taiwan...........................................200 artP Denmark........................................ 133 Malawi .......................................... 167 Tanzania ........................................ 201 Dominican Republic........................ 134 Malaysia ........................................168 Thailand.........................................202 Ecuador ......................................... 135 Mali............................................... 169 Trinidad and Tobago ......................203 Egypt ............................................. 136 Malta............................................. 170 Tunisia...........................................204 El Salvador..................................... 137 Mauritius ....................................... 171 Turkey............................................205 Estonia .......................................... 138 Mexico........................................... 172 Uganda..........................................206 Ethiopia ......................................... 139 Morocco ........................................ 173 Ukraine.......................................... 207 Finland ..........................................140 Mozambique.................................. 174 United Kingdom.............................208 France............................................ 141 Namibia......................................... 175 United States .................................209 Gambia.......................................... 142 Netherlands ................................... 176 Uruguay......................................... 210 Germany........................................ 143 New Zealand.................................. 177 Venezuela...................................... 211 Ghana............................................144 Nicaragua ...................................... 178 Vietnam......................................... 212 Greece........................................... 145 Nigeria........................................... 179 Zambia .......................................... 213 Guatemala.....................................146 Norway..........................................180 Zimbabwe...................................... 214 Algeria.dz Key Indicators Networked Readiness Index Rank 87 Population, 2002 31,293,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 1,908,000 growth (%) 1999­2002 19% Cellular mobile telephone subscribers, 2002 400,000 growth (%) 1999­2002 456% Readiness Component Index 80 Personal computers, 2002 220,000 Individual Readiness 76 growth (%) 1999­2002 22% Business Readiness 83 Internet users (estimated), 2002 500,000 Government Readiness 83 growth (%) 1999­2002 733% Public expenditure on education (per capita), 2000 59 Adult illiteracy (%), 2001 86 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 67 Radios (per 1,000 inhabitants), 2001 or most recent available 73 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 79 94 Households online (as % of households with computers), 2002 88 Market Environment 79 Quality of math and science education, 2003 73 Political and Regulatory Environment 94 Affordability of local fixed line calls (as % of per capita GDP), 2001 39 Infrastructure Environment 91 Affordability of Internet telephone access (as % of per capita GDP), 2001 18 113 State of cluster development, 2003 97 Affordability of Internet service provider fees (as % of per capita GDP), 2001 71 Venture capital availability, 2003 90 101 Ease of obtaining telephone lines, 2003 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 40 Subsidies for firm-level R&D, 2003 59 Extent of staff training, 2003 87 Quality of scientific research institutions, 2003 88 Country Quality of business schools, 2003 86 2 Availability of scientists and engineers, 2003 23 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 52 artP Brain drain, 2003 88 Government prioritization of ICT, 2003 80 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 80 ICT manufactured exports (per capita), 2001 80 Government procurement of ICT, 2003 52 ICT service exports (per capita), 2001 57 Overall administrative burden, 2003 99 Usage Component Index 89 Quality of the legal system, 2003 76 Individual Usage 74 Laws relating to ICT, 2003 100 Business Usage 93 Competition in the ISP sector, 2003 96 Government Usage 89 Foreign ownership restrictions, 2003 96 Personal computers (per 1,000 inhabitants), 2001 85 Efficiency of the tax system, 2003 54 ISDN subscribers (per 1,000 inhabitants), 2001 56 Cable television subscribers (per 1,000 inhabitants), 2001 57 Freedom of the press, 2003 56 Internet users (per 1,000 inhabitants), 2001 96 Overall infrastructure quality, 2003 69 Computers installed in businesses (per 1,000 inhabitants), 2002 76 Waiting time for telephone lines (years), 2000 90 Firm-level technology absorption, 2003 76 Telephone mainlines (per 1,000 inhabitants), 2001 73 Prevalence of foreign technology licensing, 2003 92 Public pay telephones (per 1,000 inhabitants), 2001 92 Government success in ICT promotion, 2003 91 Internet servers (per 1,000,000 inhabitants), 2001 61 Government online services, 2003 68 Angola.ao Key Indicators Networked Readiness Index Rank 99 Population, 2002 13,937,000 2003­2004 (102 countries) 87 Main telephone lines in operation, 2002 85,000 growth (%) 1999­2002 26% Cellular mobile telephone subscribers, 2002 130,000 growth (%) 1999­2002 442% Readiness Component Index 97 Personal computers, 2002 27,000 Individual Readiness 88 growth (%) 1999­2002 125% Business Readiness 95 Internet users (estimated), 2002 41,000 Government Readiness 98 growth (%) 1999­2002 733% Public expenditure on education (per capita), 2000 83 Adult illiteracy (%), 2001 63 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 100 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 99 Environment Component Index Television sets (per 1,000 inhabitants), 2001 94 101 Households online (as % of households with computers), 2002 67 Market Environment 101 Quality of math and science education, 2003 102 Political and Regulatory Environment 97 Affordability of local fixed line calls (as % of per capita GDP), 2001 85 114 Infrastructure Environment 102 Affordability of Internet telephone access (as % of per capita GDP), 2001 73 State of cluster development, 2003 102 Affordability of Internet service provider fees (as % of per capita GDP), 2001 79 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 96 97 Cost of business telephone monthly subscription (as % of per capita GDP),2002 93 Subsidies for firm-level R&D, 2003 96 Country Extent of staff training, 2003 93 Quality of scientific research institutions, 2003 99 2 Quality of business schools, 2003 102 artP Availability of scientists and engineers, 2003 102 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 48 Brain drain, 2003 57 Government prioritization of ICT, 2003 97 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 93 ICT manufactured exports (per capita), 2001 40 Government procurement of ICT, 2003 96 ICT service exports (per capita), 2001 75 Overall administrative burden, 2003 35 Usage Component Index 95 Quality of the legal system, 2003 91 Individual Usage 93 Laws relating to ICT, 2003 97 Business Usage 96 Competition in the ISP sector, 2003 95 Government Usage 95 Foreign ownership restrictions, 2003 60 Personal computers (per 1,000 inhabitants), 2001 99 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 63 70 Cable television subscribers (per 1,000 inhabitants), 2001 84 Freedom of the press, 2003 100 Internet users (per 1,000 inhabitants), 2001 87 Overall infrastructure quality, 2003 100 Computers installed in businesses (per 1,000 inhabitants), 2002 89 Waiting time for telephone lines (years), 2000 99 Firm-level technology absorption, 2003 85 Telephone mainlines (per 1,000 inhabitants), 2001 92 Prevalence of foreign technology licensing, 2003 96 Public pay telephones (per 1,000 inhabitants), 2001 93 Government success in ICT promotion, 2003 90 Internet servers (per 1,000,000 inhabitants), 2001 73 Government online services, 2003 86 Argentina.ar Key Indicators Networked Readiness Index Rank 50 Population, 2002 36,600,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 8,009,446 2002­2003 (82 countries) 45 growth (%) 1999­2002 9% 2001­2002 (75 countries) 32 Cellular mobile telephone subscribers, 2002 6,500,000 growth (%) 1999­2002 47% Readiness Component Index 49 Individual Readiness Personal computers, 2002 3,000,000 45 growth (%) 1999­2002 43% Business Readiness 51 Internet users (estimated), 2002 4,100,000 Government Readiness 61 growth (%) 1999­2002 242% Public expenditure on education (per capita), 2000 54 Adult illiteracy (%), 2001 39 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 28 Radios (per 1,000 inhabitants), 2001 or most recent available 32 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 44 57 Households online (as % of households with computers), 2002 93 Market Environment 77 Quality of math and science education, 2003 65 Political and Regulatory Environment 77 Affordability of local fixed line calls (as % of per capita GDP), 2001 63 Infrastructure Environment 38 Affordability of Internet telephone access (as % of per capita GDP), 2001 36 115 State of cluster development, 2003 83 Affordability of Internet service provider fees (as % of per capita GDP), 2001 82 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 51 98 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 90 Subsidies for firm-level R&D, 2003 82 Extent of staff training, 2003 57 Quality of scientific research institutions, 2003 73 Country Quality of business schools, 2003 25 2 Availability of scientists and engineers, 2003 41 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 46 artP Brain drain, 2003 73 Government prioritization of ICT, 2003 98 Utility patents granted (per 1,000,000 inhabitants), 2002 37 Government online presence, 2003 16 ICT manufactured exports (per capita), 2001 50 Government procurement of ICT, 2003 89 ICT service exports (per capita), 2001 68 Overall administrative burden, 2003 95 Usage Component Index 42 Quality of the legal system, 2003 95 Individual Usage 36 Laws relating to ICT, 2003 71 Business Usage 55 Competition in the ISP sector, 2003 28 Government Usage 48 Foreign ownership restrictions, 2003 38 Personal computers (per 1,000 inhabitants), 2001 40 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 38 99 Cable television subscribers (per 1,000 inhabitants), 2001 16 Freedom of the press, 2003 54 Internet users (per 1,000 inhabitants), 2001 43 Overall infrastructure quality, 2003 45 Computers installed in businesses (per 1,000 inhabitants), 2002 41 Waiting time for telephone lines (years), 2000 35 Firm-level technology absorption, 2003 70 Telephone mainlines (per 1,000 inhabitants), 2001 49 Prevalence of foreign technology licensing, 2003 49 Public pay telephones (per 1,000 inhabitants), 2001 16 Government success in ICT promotion, 2003 93 Internet servers (per 1,000,000 inhabitants), 2001 48 Government online services, 2003 17 Australia.au Key Indicators Networked Readiness Index Rank 9 Population, 2002 19,662,780 2003­2004 (102 countries) Main telephone lines in operation, 2002 10,590,000 2002­2003 (82 countries) 15 growth (%) 1999­2002 9% 2001­2002 (75 countries) 14 Cellular mobile telephone subscribers, 2002 12,579,000 growth (%) 1999­2002 99% Readiness Component Index 9 Personal computers, 2001 10,000,000 Individual Readiness 6 growth (%) 1999­2001 25% Business Readiness 12 Internet users (estimated), 2002 8,400,000 Government Readiness 14 growth (%) 1999­2002 50% Public expenditure on education (per capita), 2000 20 Adult illiteracy (%), 2001 1 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 9 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 4 Environment Component Index Television sets (per 1,000 inhabitants), 2001 12 7 Households online (as % of households with computers), 2002 23 Market Environment 21 Quality of math and science education, 2003 9 Political and Regulatory Environment 13 Affordability of local fixed line calls (as % of per capita GDP), 2001 24 116 Infrastructure Environment 6 Affordability of Internet telephone access (as % of per capita GDP), 2001 27 State of cluster development, 2003 34 Affordability of Internet service provider fees (as % of per capita GDP), 2001 17 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 7 14 Subsidies for firm-level R&D, 2003 Cost of business telephone monthly subscription (as % of per capita GDP),2002 24 13 Country Extent of staff training, 2003 12 Quality of scientific research institutions, 2003 9 2 Quality of business schools, 2003 13 artP Availability of scientists and engineers, 2003 14 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 10 Brain drain, 2003 30 Government prioritization of ICT, 2003 30 Utility patents granted (per 1,000,000 inhabitants), 2002 21 Government online presence, 2003 9 ICT manufactured exports (per capita), 2001 33 Government procurement of ICT, 2003 27 ICT service exports (per capita), 2001 33 Overall administrative burden, 2003 22 Usage Component Index 13 Quality of the legal system, 2003 3 Individual Usage 14 Laws relating to ICT, 2003 3 Business Usage 3 Competition in the ISP sector, 2003 16 Government Usage 20 Foreign ownership restrictions, 2003 39 Personal computers (per 1,000 inhabitants), 2001 6 Efficiency of the tax system, 2003 40 ISDN subscribers (per 1,000 inhabitants), 2001 16 Cable television subscribers (per 1,000 inhabitants), 2001 44 Freedom of the press, 2003 5 Internet users (per 1,000 inhabitants), 2001 16 Overall infrastructure quality, 2003 9 Computers installed in businesses (per 1,000 inhabitants), 2002 2 Waiting time for telephone lines (years), 2000 1 Firm-level technology absorption, 2003 16 Telephone mainlines (per 1,000 inhabitants), 2001 16 Prevalence of foreign technology licensing, 2003 3 Public pay telephones (per 1,000 inhabitants), 2001 30 Government success in ICT promotion, 2003 45 Internet servers (per 1,000,000 inhabitants), 2001 3 Government online services, 2003 11 Austria.at Key Indicators Networked Readiness Index Rank 21 Population, 2002 8,159,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 3,988,000 2002­2003 (82 countries) 16 growth (%) 1999­2002 3% 2001­2002 (75 countries) 9 Cellular mobile telephone subscribers, 2002 6,415,000 growth (%) 1999­2002 51% Readiness Component Index 15 Individual Readiness Personal computers, 2002 3,013,000 13 growth (%) 1999­2002 43% Business Readiness 17 Internet users (estimated), 2002 3,340,000 Government Readiness 16 growth (%) 1999­2002 82% Public expenditure on education (per capita), 2000 8 Adult illiteracy (%), 2001 30 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 16 Radios (per 1,000 inhabitants), 2001 or most recent available 25 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 23 21 Households online (as % of households with computers), 2002 15 Market Environment 20 Quality of math and science education, 2003 7 Political and Regulatory Environment 19 Affordability of local fixed line calls (as % of per capita GDP), 2001 22 Infrastructure Environment 17 Affordability of Internet telephone access (as % of per capita GDP), 2001 72 117 State of cluster development, 2003 19 Affordability of Internet service provider fees (as % of per capita GDP), 2001 14 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 17 47 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 18 Subsidies for firm-level R&D, 2003 14 Extent of staff training, 2003 16 Quality of scientific research institutions, 2003 23 Country Quality of business schools, 2003 22 2 Availability of scientists and engineers, 2003 26 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 20 artP Brain drain, 2003 23 Government prioritization of ICT, 2003 56 Utility patents granted (per 1,000,000 inhabitants), 2002 17 Government online presence, 2003 7 ICT manufactured exports (per capita), 2001 16 Government procurement of ICT, 2003 43 ICT service exports (per capita), 2001 5 Overall administrative burden, 2003 12 Usage Component Index 19 Quality of the legal system, 2003 19 Individual Usage 17 Laws relating to ICT, 2003 31 Business Usage 25 Competition in the ISP sector, 2003 21 Government Usage 15 Foreign ownership restrictions, 2003 20 Personal computers (per 1,000 inhabitants), 2001 20 Efficiency of the tax system, 2003 69 ISDN subscribers (per 1,000 inhabitants), 2001 11 Cable television subscribers (per 1,000 inhabitants), 2001 Freedom of the press, 2003 20 11 Internet users (per 1,000 inhabitants), 2001 18 Overall infrastructure quality, 2003 13 Computers installed in businesses (per 1,000 inhabitants), 2002 18 Waiting time for telephone lines (years), 2000 1 Firm-level technology absorption, 2003 37 Telephone mainlines (per 1,000 inhabitants), 2001 25 Prevalence of foreign technology licensing, 2003 74 Public pay telephones (per 1,000 inhabitants), 2001 43 Government success in ICT promotion, 2003 40 Internet servers (per 1,000,000 inhabitants), 2001 13 Government online services, 2003 7 Bangladesh.bd Key Indicators Networked Readiness Index Rank 93 Population, 2002 133,132,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 682,000 2002­2003 (82 countries) 77 growth (%) 1999­2002 58% 2001­2002 (75 countries) 73 Cellular mobile telephone subscribers, 2002 1,075,000 growth (%) 1999­2002 621% Readiness Component Index 95 Personal computers, 2002 450,000 Individual Readiness 91 growth (%) 1999­2002 246% Business Readiness 96 Internet users (estimated), 2002 204,000 Government Readiness 93 growth (%) 1999­2002 308% Public expenditure on education (per capita), 2000 91 Adult illiteracy (%), 2001 98 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 79 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 100 Environment Component Index Television sets (per 1,000 inhabitants), 2001 89 95 Households online (as % of households with computers), 2002 75 Market Environment 85 Quality of math and science education, 2003 87 Political and Regulatory Environment 84 Affordability of local fixed line calls (as % of per capita GDP), 2001 83 118 Infrastructure Environment 84 Affordability of Internet telephone access (as % of per capita GDP), 2001 81 State of cluster development, 2003 50 Affordability of Internet service provider fees (as % of per capita GDP), 2001 86 Profiles Venture capital availability, 2003 94 Ease of obtaining telephone lines, 2003 100 Cost of business telephone monthly subscription (as % of per capita GDP),2002 83 Subsidies for firm-level R&D, 2003 94 Country Extent of staff training, 2003 98 Quality of scientific research institutions, 2003 85 2 Quality of business schools, 2003 93 artP Availability of scientists and engineers, 2003 62 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 94 Brain drain, 2003 95 Government prioritization of ICT, 2003 43 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 96 ICT manufactured exports (per capita), 2001 88 Government procurement of ICT, 2003 97 ICT service exports (per capita), 2001 94 Overall administrative burden, 2003 96 Usage Component Index 92 Quality of the legal system, 2003 74 Individual Usage 98 Laws relating to ICT, 2003 99 Business Usage 85 Competition in the ISP sector, 2003 63 Government Usage 91 Foreign ownership restrictions, 2003 61 Personal computers (per 1,000 inhabitants), 2001 97 Efficiency of the tax system, 2003 83 ISDN subscribers (per 1,000 inhabitants), 2001 93 Cable television subscribers (per 1,000 inhabitants), 2001 88 Freedom of the press, 2003 75 Internet users (per 1,000 inhabitants), 2001 97 Overall infrastructure quality, 2003 90 Computers installed in businesses (per 1,000 inhabitants), 2002 102 Waiting time for telephone lines (years), 2000 79 Firm-level technology absorption, 2003 83 Telephone mainlines (per 1,000 inhabitants), 2001 95 Prevalence of foreign technology licensing, 2003 83 Public pay telephones (per 1,000 inhabitants), 2001 55 Government success in ICT promotion, 2003 88 Internet servers (per 1,000,000 inhabitants), 2001 102 Government online services, 2003 74 Belgium.be Key Indicators Networked Readiness Index Rank 24 Population, 2002 10,346,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 5,132,427 2002­2003 (82 countries) 22 growth (%) 1999­2002 -2% 2001­2002 (75 countries) 18 Cellular mobile telephone subscribers, 2002 8,135,512 growth (%) 1999­2002 155% Readiness Component Index 21 Individual Readiness Personal computers, 2002 2,500,000 16 growth (%) 1999­2002 11% Business Readiness 13 Internet users (estimated), 2002 3,400,000 Government Readiness 40 growth (%) 1999­2002 143% Public expenditure on education (per capita), 2000 9 Adult illiteracy (%), 2001 30 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 18 Radios (per 1,000 inhabitants), 2001 or most recent available 23 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 22 24 Households online (as % of households with computers), 2002 39 Market Environment 16 Quality of math and science education, 2003 2 Political and Regulatory Environment 36 Affordability of local fixed line calls (as % of per capita GDP), 2001 25 Infrastructure Environment 25 Affordability of Internet telephone access (as % of per capita GDP), 2001 85 119 State of cluster development, 2003 38 Affordability of Internet service provider fees (as % of per capita GDP), 2001 16 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 19 21 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 19 Subsidies for firm-level R&D, 2003 17 Extent of staff training, 2003 10 Quality of scientific research institutions, 2003 15 Country Quality of business schools, 2003 15 2 Availability of scientists and engineers, 2003 22 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 13 artP Brain drain, 2003 19 Government prioritization of ICT, 2003 60 Utility patents granted (per 1,000,000 inhabitants), 2002 15 Government online presence, 2003 31 ICT manufactured exports (per capita), 2001 9 Government procurement of ICT, 2003 56 ICT service exports (per capita), 2001 6 Overall administrative burden, 2003 93 Usage Component Index 20 Quality of the legal system, 2003 28 Individual Usage 13 Laws relating to ICT, 2003 39 Business Usage 26 Competition in the ISP sector, 2003 31 Government Usage 32 Foreign ownership restrictions, 2003 18 Personal computers (per 1,000 inhabitants), 2001 24 Efficiency of the tax system, 2003 86 ISDN subscribers (per 1,000 inhabitants), 2001 12 Cable television subscribers (per 1,000 inhabitants), 2001 2 Freedom of the press, 2003 9 Internet users (per 1,000 inhabitants), 2001 19 Overall infrastructure quality, 2003 17 Computers installed in businesses (per 1,000 inhabitants), 2002 22 Waiting time for telephone lines (years), 2000 1 Firm-level technology absorption, 2003 41 Telephone mainlines (per 1,000 inhabitants), 2001 18 Prevalence of foreign technology licensing, 2003 53 Public pay telephones (per 1,000 inhabitants), 2001 66 Government success in ICT promotion, 2003 61 Internet servers (per 1,000,000 inhabitants), 2001 23 Government online services, 2003 24 Bolivia.bo Key Indicators Networked Readiness Index Rank 90 Population, 2002 8,341,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 563,941 2002­2003 (82 countries) 78 growth (%) 1999­2002 12% 2001­2002 (75 countries) 67 Cellular mobile telephone subscribers, 2002 872,676 growth (%) 1999­2002 108% Readiness Component Index 84 Personal computers, 2002 190,000 Individual Readiness 66 growth (%) 1999­2002 90% Business Readiness 85 Internet users (estimated), 2002 270,000 Government Readiness 94 growth (%) 1999­2002 238% Public expenditure on education (per capita), 2000 72 Adult illiteracy (%), 2001 68 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 40 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 33 Environment Component Index Television sets (per 1,000 inhabitants), 2001 85 75 Households online (as % of households with computers), 2002 94 Market Environment 98 Quality of math and science education, 2003 88 Political and Regulatory Environment 82 Affordability of local fixed line calls (as % of per capita GDP), 2001 86 120 Infrastructure Environment 69 Affordability of Internet telephone access (as % of per capita GDP), 2001 45 State of cluster development, 2003 93 Affordability of Internet service provider fees (as % of per capita GDP), 2001 67 Profiles Venture capital availability, 2003 88 Ease of obtaining telephone lines, 2003 56 Cost of business telephone monthly subscription (as % of per capita GDP),2002 Subsidies for firm-level R&D, 2003 99 89 Country Extent of staff training, 2003 100 Quality of scientific research institutions, 2003 98 2 Quality of business schools, 2003 95 artP Availability of scientists and engineers, 2003 91 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 87 Brain drain, 2003 76 Government prioritization of ICT, 2003 94 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 72 ICT manufactured exports (per capita), 2001 72 Government procurement of ICT, 2003 101 ICT service exports (per capita), 2001 89 Overall administrative burden, 2003 80 Usage Component Index 99 Quality of the legal system, 2003 98 Individual Usage 75 Laws relating to ICT, 2003 95 Business Usage 98 Competition in the ISP sector, 2003 57 Government Usage 96 Foreign ownership restrictions, 2003 82 Personal computers (per 1,000 inhabitants), 2001 69 63 Efficiency of the tax system, 2003 42 ISDN subscribers (per 1,000 inhabitants), 2001 Cable television subscribers (per 1,000 inhabitants), 2001 76 Freedom of the press, 2003 57 Internet users (per 1,000 inhabitants), 2001 69 Overall infrastructure quality, 2003 98 Computers installed in businesses (per 1,000 inhabitants), 2002 74 Waiting time for telephone lines (years), 2000 38 Firm-level technology absorption, 2003 102 Telephone mainlines (per 1,000 inhabitants), 2001 72 Prevalence of foreign technology licensing, 2003 95 Public pay telephones (per 1,000 inhabitants), 2001 71 Government success in ICT promotion, 2003 93 Internet servers (per 1,000,000 inhabitants), 2001 72 Government online services, 2003 93 Botswana.bw Key Indicators Networked Readiness Index Rank 55 Population, 2002 1,720,000 2003­2004 (102 countries) Main telephone lines in operation, 2001 142,600 2002­2003 (82 countries) 44 growth (%) 1999­2001 15% Cellular mobile telephone subscribers, 2002 415,000 growth (%) 1999­2002 351% Readiness Component Index 68 74 Personal computers, 2002 65,000 Individual Readiness growth (%) 1999­2002 30% Business Readiness 73 Internet users (estimated), 2001 50,000 Government Readiness 54 growth (%) 1999­2001 163% Public expenditure on education (per capita), 2000 36 Adult illiteracy (%), 2001 78 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 84 Radios (per 1,000 inhabitants), 2001 or most recent available 91 RANK/102 90 Environment Component Index Television sets (per 1,000 inhabitants), 2001 43 Households online (as % of households with computers), 2002 49 Market Environment 52 Quality of math and science education, 2003 59 Political and Regulatory Environment 28 Affordability of local fixed line calls (as % of per capita GDP), 2001 29 Infrastructure Environment 53 Affordability of Internet telephone access (as % of per capita GDP), 2001 10 121 State of cluster development, 2003 59 Affordability of Internet service provider fees (as % of per capita GDP), 2001 43 Venture capital availability, 2003 77 42 Ease of obtaining telephone lines, 2003 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 31 Subsidies for firm-level R&D, 2003 58 Extent of staff training, 2003 61 Quality of scientific research institutions, 2003 53 Country Quality of business schools, 2003 83 2 Availability of scientists and engineers, 2003 87 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 92 artP Brain drain, 2003 17 Government prioritization of ICT, 2003 36 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 75 ICT manufactured exports (per capita), 2001 55 Government procurement of ICT, 2003 25 ICT service exports (per capita), 2001 51 Overall administrative burden, 2003 26 Usage Component Index 60 Quality of the legal system, 2003 11 Individual Usage 67 Laws relating to ICT, 2003 73 Business Usage 54 Competition in the ISP sector, 2003 93 Government Usage 58 Foreign ownership restrictions, 2003 25 Personal computers (per 1,000 inhabitants), 2001 58 Efficiency of the tax system, 2003 3 ISDN subscribers (per 1,000 inhabitants), 2001 46 Cable television subscribers (per 1,000 inhabitants), 2001 79 Freedom of the press, 2003 55 Internet users (per 1,000 inhabitants), 2001 59 Overall infrastructure quality, 2003 28 Computers installed in businesses (per 1,000 inhabitants), 2002 59 Waiting time for telephone lines (years), 2000 46 Firm-level technology absorption, 2003 69 Telephone mainlines (per 1,000 inhabitants), 2001 68 Prevalence of foreign technology licensing, 2003 12 Public pay telephones (per 1,000 inhabitants), 2001 62 Government success in ICT promotion, 2003 29 Internet servers (per 1,000,000 inhabitants), 2001 46 Government online services, 2003 74 Brazil.br Key Indicators Networked Readiness Index Rank 39 Population, 2002 173,879,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 38,810,000 2002­2003 (82 countries) 29 growth (%) 1999­2002 55% 2001­2002 (75 countries) 38 Cellular mobile telephone subscribers, 2002 34,881,000 growth (%) 1999­2002 132% Readiness Component Index 40 Personal computers, 2002 13,000,000 Individual Readiness 59 growth (%) 1999­2002 113% Business Readiness 39 Internet users (estimated), 2002 14,300,000 Government Readiness 26 growth (%) 1999­2002 309% Public expenditure on education (per capita), 2000 53 Adult illiteracy (%), 2001 66 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 62 Radios (per 1,000 inhabitants), 2001 or most recent available 47 RANK/102 Environment Component Index 41 35 Television sets (per 1,000 inhabitants), 2001 Households online (as % of households with computers), 2002 87 Market Environment 34 Quality of math and science education, 2003 75 Political and Regulatory Environment 43 Affordability of local fixed line calls (as % of per capita GDP), 2001 42 122 Infrastructure Environment 34 Affordability of Internet telephone access (as % of per capita GDP), 2001 56 State of cluster development, 2003 25 Affordability of Internet service provider fees (as % of per capita GDP), 2001 59 34 Profiles Venture capital availability, 2003 54 Ease of obtaining telephone lines, 2003 Cost of business telephone monthly subscription (as % of per capita GDP),2002 58 Subsidies for firm-level R&D, 2003 35 27 Country Extent of staff training, 2003 Quality of scientific research institutions, 2003 49 2 Quality of business schools, 2003 34 artP Availability of scientists and engineers, 2003 46 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 65 Brain drain, 2003 22 Government prioritization of ICT, 2003 66 Utility patents granted (per 1,000,000 inhabitants), 2002 48 Government online presence, 2003 11 ICT manufactured exports (per capita), 2001 46 Government procurement of ICT, 2003 53 ICT service exports (per capita), 2001 59 Overall administrative burden, 2003 53 Usage Component Index 47 Quality of the legal system, 2003 52 Individual Usage 58 Laws relating to ICT, 2003 37 Business Usage 31 Competition in the ISP sector, 2003 26 Government Usage 51 Foreign ownership restrictions, 2003 42 Personal computers (per 1,000 inhabitants), 2001 48 Efficiency of the tax system, 2003 101 ISDN subscribers (per 1,000 inhabitants), 2001 42 Cable television subscribers (per 1,000 inhabitants), 2001 69 Freedom of the press, 2003 17 Internet users (per 1,000 inhabitants), 2001 51 Overall infrastructure quality, 2003 47 Computers installed in businesses (per 1,000 inhabitants), 2002 38 Waiting time for telephone lines (years), 2000 44 Firm-level technology absorption, 2003 40 Telephone mainlines (per 1,000 inhabitants), 2001 50 Prevalence of foreign technology licensing, 2003 7 Public pay telephones (per 1,000 inhabitants), 2001 5 Government success in ICT promotion, 2003 38 Internet servers (per 1,000,000 inhabitants), 2001 49 Government online services, 2003 58 Bulgaria.bg Key Indicators Networked Readiness Index Rank 67 Population, 2002 7,801,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 2,922,028 2002­2003 (82 countries) 68 growth (%) 1999­2002 3% 2001­2002 (75 countries) 53 Cellular mobile telephone subscribers, 2001 1,550,000 growth (%) 1999­2001 343% Readiness Component Index 60 Individual Readiness Personal computers, 2002 405,000 40 growth (%) 1999­2002 84% Business Readiness 70 Internet users, (estimated), 2002 700,000 Government Readiness 76 growth (%) 1999­2002 198% Public expenditure on education (per capita), 2000 63 Adult illiteracy (%), 2001 25 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 35 Radios (per 1,000 inhabitants), 2001 or most recent available 38 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 31 69 Households online (as % of households with computers), 2002 85 Market Environment 74 Quality of math and science education, 2003 29 Political and Regulatory Environment 85 Affordability of local fixed line calls (as % of per capita GDP), 2001 73 Infrastructure Environment 60 Affordability of Internet telephone access (as % of per capita GDP), 2001 2 123 State of cluster development, 2003 77 Affordability of Internet service provider fees (as % of per capita GDP), 2001 38 Venture capital availability, 2003 75 Ease of obtaining telephone lines, 2003 72 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 50 Subsidies for firm-level R&D, 2003 77 Extent of staff training, 2003 91 Quality of scientific research institutions, 2003 70 Country Quality of business schools, 2003 87 2 Availability of scientists and engineers, 2003 31 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 38 artP Brain drain, 2003 91 Government prioritization of ICT, 2003 88 Utility patents granted (per 1,000,000 inhabitants), 2002 50 Government online presence, 2003 56 ICT manufactured exports (per capita), 2001 61 Government procurement of ICT, 2003 79 ICT service exports (per capita), 2001 48 Overall administrative burden, 2003 65 Usage Component Index 68 Quality of the legal system, 2003 78 Individual Usage 43 Laws relating to ICT, 2003 70 Business Usage 87 Competition in the ISP sector, 2003 70 Government Usage 75 Foreign ownership restrictions, 2003 94 Personal computers (per 1,000 inhabitants), 2001 54 Efficiency of the tax system, 2003 89 ISDN subscribers (per 1,000 inhabitants), 2001 50 Cable television subscribers (per 1,000 inhabitants), 2001 24 Freedom of the press, 2003 78 Internet users (per 1,000 inhabitants), 2001 44 Overall infrastructure quality, 2003 74 Computers installed in businesses (per 1,000 inhabitants), 2002 48 Waiting time for telephone lines (years), 2000 81 Firm-level technology absorption, 2003 95 Telephone mainlines (per 1,000 inhabitants), 2001 34 Prevalence of foreign technology licensing, 2003 91 Public pay telephones (per 1,000 inhabitants), 2001 46 Government success in ICT promotion, 2003 85 Internet servers (per 1,000,000 inhabitants), 2001 54 Government online services, 2003 54 Cameroon.cm Key Indicators Networked Readiness Index Rank 83 Population, 2002 15,752,000 2003­2004 (102 countries) Main telephone lines in operation, 2001 101,442 growth (%) 1999­2001 7% Cellular mobile telephone subscribers, 2002 563,000 growth (%) 1999­2002 9283% Readiness Component Index 79 Personal computers, 2001 60,000 Individual Readiness 86 growth (%) 1999­2001 50% Business Readiness 90 Internet users (estimated), 2001 45,000 Government Readiness 51 growth (%) 1999­2001 125% Public expenditure on education (per capita), 2000 89 Adult illiteracy (%), 2001 82 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 83 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 87 Environment Component Index Television sets (per 1,000 inhabitants), 2001 89 83 Households online (as % of households with computers), 2002 69 Market Environment 66 Quality of math and science education, 2003 61 Political and Regulatory Environment 83 Affordability of local fixed line calls (as % of per capita GDP), 2001 89 124 Infrastructure Environment 89 Affordability of Internet telephone access (as % of per capita GDP), 2001 80 State of cluster development, 2003 94 Affordability of Internet service provider fees (as % of per capita GDP), 2001 94 Profiles Venture capital availability, 2003 78 Ease of obtaining telephone lines, 2003 98 Cost of business telephone monthly subscription (as % of per capita GDP),2002 65 Subsidies for firm-level R&D, 2003 49 Country Extent of staff training, 2003 85 Quality of scientific research institutions, 2003 50 2 Quality of business schools, 2003 76 artP Availability of scientists and engineers, 2003 36 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 74 Brain drain, 2003 80 Government prioritization of ICT, 2003 46 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 69 ICT manufactured exports (per capita), 2001 100 Government procurement of ICT, 2003 22 ICT service exports (per capita), 2001 67 Overall administrative burden, 2003 79 Usage Component Index 86 Quality of the legal system, 2003 72 Individual Usage 82 Laws relating to ICT, 2003 87 Business Usage 86 Competition in the ISP sector, 2003 68 Government Usage 80 Foreign ownership restrictions, 2003 49 Personal computers (per 1,000 inhabitants), 2001 91 Efficiency of the tax system, 2003 73 ISDN subscribers (per 1,000 inhabitants), 2001 73 Cable television subscribers (per 1,000 inhabitants), 2001 64 Freedom of the press, 2003 92 Internet users (per 1,000 inhabitants), 2001 90 Overall infrastructure quality, 2003 84 Computers installed in businesses (per 1,000 inhabitants), 2002 85 Waiting time for telephone lines (years), 2000 92 Firm-level technology absorption, 2003 84 Telephone mainlines (per 1,000 inhabitants), 2001 91 Prevalence of foreign technology licensing, 2003 88 Public pay telephones (per 1,000 inhabitants), 2001 38 Government success in ICT promotion, 2003 73 Internet servers (per 1,000,000 inhabitants), 2001 74 Government online services, 2003 81 Canada.ca Key Indicators Networked Readiness Index Rank 6 Population, 2002 31,414,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 19,962,070 2002­2003 (82 countries) 6 growth (%) 1999­2002 0% 2001­2002 (75 countries) 12 Cellular mobile telephone subscribers, 2002 11,849,020 growth (%) 1999­2002 71% Readiness Component Index 8 Individual Readiness Personal computers, 2002 15,300,000 9 growth (%) 1999­2002 38% Business Readiness 10 Internet users (estimated), 2002 15,200,000 Government Readiness 5 growth (%) 1999­2002 38% Public expenditure on education (per capita), 2000 12 Adult illiteracy (%), 2001 37 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 12 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 10 Environment Component Index Television sets (per 1,000 inhabitants), 2001 10 7 Households online (as % of households with computers), 2002 12 Market Environment 11 Quality of math and science education, 2003 13 Political and Regulatory Environment 21 Affordability of local fixed line calls (as % of per capita GDP), 2001 21 Infrastructure Environment 4 Affordability of Internet telephone access (as % of per capita GDP), 2001 65 125 State of cluster development, 2003 12 Affordability of Internet service provider fees (as % of per capita GDP), 2001 10 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 11 12 Profiles Subsidies for firm-level R&D, 2003 Cost of business telephone monthly subscription (as % of per capita GDP),2002 32 5 Extent of staff training, 2003 17 Quality of scientific research institutions, 2003 13 Country Quality of business schools, 2003 3 2 Availability of scientists and engineers, 2003 5 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 12 artP Brain drain, 2003 26 Government prioritization of ICT, 2003 19 Utility patents granted (per 1,000,000 inhabitants), 2002 9 Government online presence, 2003 1 ICT manufactured exports (per capita), 2001 17 Government procurement of ICT, 2003 16 ICT service exports (per capita), 2001 18 Overall administrative burden, 2003 34 Usage Component Index 6 Quality of the legal system, 2003 20 Individual Usage 11 Laws relating to ICT, 2003 16 Business Usage 12 Competition in the ISP sector, 2003 10 Government Usage 3 Foreign ownership restrictions, 2003 55 Personal computers (per 1,000 inhabitants), 2001 10 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 36 53 Cable television subscribers (per 1,000 inhabitants), 2001 5 Freedom of the press, 2003 19 Internet users (per 1,000 inhabitants), 2001 9 Overall infrastructure quality, 2003 14 Computers installed in businesses (per 1,000 inhabitants), 2002 8 Waiting time for telephone lines (years), 2000 1 Firm-level technology absorption, 2003 18 Telephone mainlines (per 1,000 inhabitants), 2001 5 Prevalence of foreign technology licensing, 2003 52 Public pay telephones (per 1,000 inhabitants), 2001 15 Government success in ICT promotion, 2003 17 Internet servers (per 1,000,000 inhabitants), 2001 5 Government online services, 2003 4 Chad.td Key Indicators Networked Readiness Index Rank 102 Population, 2002 7,871,778 2003­2004 (102 countries) Main telephone lines in operation, 2002 11,835 growth (%) 1999­2002 22% Cellular mobile telephone subscribers, 2002 34,200 growth (%) 1999­2002 n/a Readiness Component Index 102 Personal computers, 2001 12,000 Individual Readiness 101 growth (%) 1999­2001 20% Business Readiness 101 Internet users (estimated), 2002 15,000 Government Readiness 102 growth (%) 1999­2002 1,400% Public expenditure on education (per capita), 2000 101 Adult illiteracy (%), 2001 96 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 98 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 75 Environment Component Index Television sets (per 1,000 inhabitants), 2001 102 99 Households online (as % of households with computers), 2002 82 Market Environment 99 Quality of math and science education, 2003 100 Political and Regulatory Environment 101 Affordability of local fixed line calls (as % of per capita GDP), 2001 101 126 Infrastructure Environment 86 Affordability of Internet telephone access (as % of per capita GDP), 2001 101 State of cluster development, 2003 89 Affordability of Internet service provider fees (as % of per capita GDP), 2001 97 Profiles Venture capital availability, 2003 102 Ease of obtaining telephone lines, 2003 95 Cost of business telephone monthly subscription (as % of per capita GDP),2002 97 Subsidies for firm-level R&D, 2003 83 97 Country Extent of staff training, 2003 Quality of scientific research institutions, 2003 100 2 Quality of business schools, 2003 101 artP Availability of scientists and engineers, 2003 99 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 99 Brain drain, 2003 66 Government prioritization of ICT, 2003 96 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 102 ICT manufactured exports (per capita), 2001 93 Government procurement of ICT, 2003 99 ICT service exports (per capita), 2001 90 Overall administrative burden, 2003 43 Usage Component Index 101 Quality of the legal system, 2003 96 Individual Usage 101 Laws relating to ICT, 2003 93 Business Usage 100 Competition in the ISP sector, 2003 101 Government Usage 101 Foreign ownership restrictions, 2003 97 Personal computers (per 1,000 inhabitants), 2001 98 Efficiency of the tax system, 2003 97 ISDN subscribers (per 1,000 inhabitants), 2001 89 Cable television subscribers (per 1,000 inhabitants), 2001 96 Freedom of the press, 2003 95 Internet users (per 1,000 inhabitants), 2001 101 Overall infrastructure quality, 2003 102 Computers installed in businesses (per 1,000 inhabitants), 2002 82 Waiting time for telephone lines (years), 2000 43 Firm-level technology absorption, 2003 99 Telephone mainlines (per 1,000 inhabitants), 2001 102 Prevalence of foreign technology licensing, 2003 100 Public pay telephones (per 1,000 inhabitants), 2001 102 Government success in ICT promotion, 2003 98 Internet servers (per 1,000,000 inhabitants), 2001 86 Government online services, 2003 99 Chile.cl Key Indicators Networked Readiness Index Rank 32 Population, 2002 15,050,340 2003­2004 (102 countries) Main telephone lines in operation, 2002 3,467,202 2002­2003 (82 countries) 35 growth (%) 1999­2002 12% 2001­2002 (75 countries) 34 Cellular mobile telephone subscribers, 2002 6,445,698 growth (%) 1999­2002 185% Readiness Component Index 30 Individual Readiness 46 Personal computers, 2002 1,795,814 growth (%) 1999­2002 56% Business Readiness 28 Internet users (estimated), 2002 3,575,000 Government Readiness 18 growth (%) 1999­2002 472% Public expenditure on education (per capita), 2000 47 Adult illiteracy (%), 2001 40 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 38 Radios (per 1,000 inhabitants), 2001 or most recent available 24 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 51 31 Households online (as % of households with computers), 2002 51 Market Environment 31 Quality of math and science education, 2003 67 Political and Regulatory Environment 18 Affordability of local fixed line calls (as % of per capita GDP), 2001 50 Infrastructure Environment 36 Affordability of Internet telephone access (as % of per capita GDP), 2001 22 127 State of cluster development, 2003 65 Affordability of Internet service provider fees (as % of per capita GDP), 2001 44 Venture capital availability, 2003 15 37 Ease of obtaining telephone lines, 2003 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 49 Subsidies for firm-level R&D, 2003 44 Extent of staff training, 2003 36 Quality of scientific research institutions, 2003 48 Country Quality of business schools, 2003 17 2 Availability of scientists and engineers, 2003 39 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 62 artP Brain drain, 2003 3 Government prioritization of ICT, 2003 33 Utility patents granted (per 1,000,000 inhabitants), 2002 45 Government online presence, 2003 14 ICT manufactured exports (per capita), 2001 65 Government procurement of ICT, 2003 55 ICT service exports (per capita), 2001 43 Overall administrative burden, 2003 30 Usage Component Index 31 Quality of the legal system, 2003 38 Individual Usage 39 Laws relating to ICT, 2003 30 Business Usage 27 Competition in the ISP sector, 2003 13 Government Usage 35 Foreign ownership restrictions, 2003 10 Personal computers (per 1,000 inhabitants), 2001 38 Efficiency of the tax system, 2003 19 ISDN subscribers (per 1,000 inhabitants), 2001 27 Cable television subscribers (per 1,000 inhabitants), 2001 51 Freedom of the press, 2003 30 Internet users (per 1,000 inhabitants), 2001 31 Overall infrastructure quality, 2003 31 Computers installed in businesses (per 1,000 inhabitants), 2002 32 Waiting time for telephone lines (years), 2000 27 Firm-level technology absorption, 2003 24 Telephone mainlines (per 1,000 inhabitants), 2001 46 Prevalence of foreign technology licensing, 2003 30 Public pay telephones (per 1,000 inhabitants), 2001 33 Government success in ICT promotion, 2003 41 Internet servers (per 1,000,000 inhabitants), 2001 43 Government online services, 2003 32 China.cn Key Indicators Networked Readiness Index Rank 51 Population, 2002 1,284,530,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 214,420,000 2002­2003 (82 countries) 43 growth (%) 1999­2002 97% 2001­2002 (75 countries) 64 Cellular mobile telephone subscribers, 2002 206,620,000 growth (%) 1999­2002 377% Readiness Component Index 54 62 Personal computers, 2001 25,000,000 Individual Readiness growth (%) 1999­2001 61% Business Readiness 59 Internet users (estimated), 2002 59,100,000 Government Readiness 47 growth (%) 1999­2002 564% Public expenditure on education (per capita), 2000 79 Adult illiteracy (%), 2001 69 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 78 Radios (per 1,000 inhabitants), 2001 or most recent available 62 RANK/102 46 Environment Component Index 63 Television sets (per 1,000 inhabitants), 2001 Households online (as % of households with computers), 2002 89 Market Environment 44 Quality of math and science education, 2003 46 Political and Regulatory Environment 68 Affordability of local fixed line calls (as % of per capita GDP), 2001 77 128 Infrastructure Environment 72 Affordability of Internet telephone access (as % of per capita GDP), 2001 30 State of cluster development, 2003 30 Affordability of Internet service provider fees (as % of per capita GDP), 2001 49 57 Profiles Venture capital availability, 2003 58 Ease of obtaining telephone lines, 2003 Cost of business telephone monthly subscription (as % of per capita GDP),2002 70 Subsidies for firm-level R&D, 2003 22 55 Country Extent of staff training, 2003 Quality of scientific research institutions, 2003 28 2 Quality of business schools, 2003 72 artP Availability of scientists and engineers, 2003 68 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 51 Brain drain, 2003 51 Government prioritization of ICT, 2003 32 Utility patents granted (per 1,000,000 inhabitants), 2002 55 Government online presence, 2003 76 ICT manufactured exports (per capita), 2001 44 Government procurement of ICT, 2003 9 ICT service exports (per capita), 2001 87 Overall administrative burden, 2003 21 Usage Component Index 43 Quality of the legal system, 2003 62 Individual Usage 55 Laws relating to ICT, 2003 51 Business Usage 69 Competition in the ISP sector, 2003 52 Government Usage 21 Foreign ownership restrictions, 2003 81 Personal computers (per 1,000 inhabitants), 2001 71 53 Efficiency of the tax system, 2003 29 ISDN subscribers (per 1,000 inhabitants), 2001 Cable television subscribers (per 1,000 inhabitants), 2001 45 Freedom of the press, 2003 99 Internet users (per 1,000 inhabitants), 2001 63 Overall infrastructure quality, 2003 55 Computers installed in businesses (per 1,000 inhabitants), 2002 65 Waiting time for telephone lines (years), 2000 88 Firm-level technology absorption, 2003 58 Telephone mainlines (per 1,000 inhabitants), 2001 57 Prevalence of foreign technology licensing, 2003 70 Public pay telephones (per 1,000 inhabitants), 2001 48 Government success in ICT promotion, 2003 24 Internet servers (per 1,000,000 inhabitants), 2001 82 Government online services, 2003 18 Colombia.co Key Indicators Networked Readiness Index Rank 60 Population, 2002 43,290,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 7,766,000 2002­2003 (82 countries) 59 growth (%) 1999­2002 17% 2001­2002 (75 countries) 57 Cellular mobile telephone subscribers, 2002 4,597,000 growth (%) 1999­2002 134% Readiness Component Index 45 Personal computers, 2002 2,133,000 Individual Readiness 52 growth (%) 1999­2002 52% Business Readiness 52 Internet users (estimated), 2002 1,982,000 Government Readiness 39 growth (%) 1999­2002 198% Public expenditure on education (per capita), 2000 60 Adult illiteracy (%), 2001 55 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 55 Radios (per 1,000 inhabitants), 2001 or most recent available 37 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 51 64 Households online (as % of households with computers), 2002 91 Market Environment 68 Quality of math and science education, 2003 58 Political and Regulatory Environment 60 Affordability of local fixed line calls (as % of per capita GDP), 2001 46 Infrastructure Environment 64 Affordability of Internet telephone access (as % of per capita GDP), 2001 31 129 State of cluster development, 2003 58 Affordability of Internet service provider fees (as % of per capita GDP), 2001 69 Venture capital availability, 2003 48 69 Ease of obtaining telephone lines, 2003 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 48 Subsidies for firm-level R&D, 2003 71 Extent of staff training, 2003 52 Quality of scientific research institutions, 2003 64 Country Quality of business schools, 2003 41 2 Availability of scientists and engineers, 2003 74 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 86 artP Brain drain, 2003 58 Government prioritization of ICT, 2003 57 Utility patents granted (per 1,000,000 inhabitants), 2002 59 Government online presence, 2003 24 ICT manufactured exports (per capita), 2001 63 Government procurement of ICT, 2003 64 ICT service exports (per capita), 2001 86 Overall administrative burden, 2003 64 Usage Component Index 73 Quality of the legal system, 2003 70 Individual Usage 64 Laws relating to ICT, 2003 41 Business Usage 71 Competition in the ISP sector, 2003 45 Government Usage 68 Foreign ownership restrictions, 2003 79 Personal computers (per 1,000 inhabitants), 2001 55 Efficiency of the tax system, 2003 72 ISDN subscribers (per 1,000 inhabitants), 2001 41 Cable television subscribers (per 1,000 inhabitants), 2001 71 Freedom of the press, 2003 49 Internet users (per 1,000 inhabitants), 2001 62 Overall infrastructure quality, 2003 66 Computers installed in businesses (per 1,000 inhabitants), 2002 53 Waiting time for telephone lines (years), 2000 71 Firm-level technology absorption, 2003 59 Telephone mainlines (per 1,000 inhabitants), 2001 55 Prevalence of foreign technology licensing, 2003 75 Public pay telephones (per 1,000 inhabitants), 2001 72 Government success in ICT promotion, 2003 56 Internet servers (per 1,000,000 inhabitants), 2001 59 Government online services, 2003 74 Costa Rica.cr Key Indicators Networked Readiness Index Rank 49 Population, 2002 4,143,000 2003­2004 (102 countries) Main telephone lines in operation, 2001 1,037,986 2002­2003 (82 countries) 49 growth (%) 1999­2001 29% 2001­2002 (75 countries) 45 Cellular mobile telephone subscribers, 2002 528,047 growth (%) 1999­2002 282% Readiness Component Index 55 Personal computers, 2001 700,000 Individual Readiness 49 growth (%) 1999­2001 75% Business Readiness 58 Internet users (estimated), 2001 384,000 Government Readiness 64 growth (%) 1999­2001 156% Public expenditure on education (per capita), 2000 46 Adult illiteracy (%), 2001 41 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 64 Radios (per 1,000 inhabitants), 2001 or most recent available 20 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 55 46 Households online (as % of households with computers), 2002 44 Market Environment 42 Quality of math and science education, 2003 48 Political and Regulatory Environment 57 Affordability of local fixed line calls (as % of per capita GDP), 2001 33 130 Infrastructure Environment 49 Affordability of Internet telephone access (as % of per capita GDP), 2001 6 State of cluster development, 2003 64 Affordability of Internet service provider fees (as % of per capita GDP), 2001 39 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 92 68 Cost of business telephone monthly subscription (as % of per capita GDP),2002 41 Subsidies for firm-level R&D, 2003 75 30 Country Extent of staff training, 2003 Quality of scientific research institutions, 2003 30 2 Quality of business schools, 2003 26 artP Availability of scientists and engineers, 2003 34 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 53 Brain drain, 2003 9 Government prioritization of ICT, 2003 77 Utility patents granted (per 1,000,000 inhabitants), 2002 44 Government online presence, 2003 61 ICT manufactured exports (per capita), 2001 29 Government procurement of ICT, 2003 46 ICT service exports (per capita), 2001 40 Overall administrative burden, 2003 28 Usage Component Index 46 Quality of the legal system, 2003 54 Individual Usage 40 Laws relating to ICT, 2003 62 Business Usage 36 Competition in the ISP sector, 2003 100 Government Usage 77 Foreign ownership restrictions, 2003 33 Personal computers (per 1,000 inhabitants), 2001 28 Efficiency of the tax system, 2003 41 ISDN subscribers (per 1,000 inhabitants), 2001 60 Cable television subscribers (per 1,000 inhabitants), 2001 36 Freedom of the press, 2003 21 Internet users (per 1,000 inhabitants), 2001 42 Overall infrastructure quality, 2003 72 Computers installed in businesses (per 1,000 inhabitants), 2002 47 Waiting time for telephone lines (years), 2000 41 Firm-level technology absorption, 2003 17 Telephone mainlines (per 1,000 inhabitants), 2001 47 Prevalence of foreign technology licensing, 2003 11 Public pay telephones (per 1,000 inhabitants), 2001 27 Government success in ICT promotion, 2003 63 Internet servers (per 1,000,000 inhabitants), 2001 33 Government online services, 2003 81 Croatia.hr Key Indicators Networked Readiness Index Rank 48 Population, 2002 4,844,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 1,879,000 2002­2003 (82 countries) 48 growth (%) 1999­2002 15% Cellular mobile telephone subscribers, 2002 2,278,000 growth (%) 1999­2002 672% Readiness Component Index 44 Personal computers, 2002 760,000 Individual Readiness 43 growth (%) 1999­2002 153% Business Readiness 53 Internet users (estimated), 2002 789,000 Government Readiness 41 growth (%) 1999­2002 295% Public expenditure on education (per capita), 2000 43 Adult illiteracy (%), 2001 28 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 46 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 61 Environment Component Index Television sets (per 1,000 inhabitants), 2001 50 55 Households online (as % of households with computers), 2002 37 Market Environment 59 Quality of math and science education, 2003 34 Political and Regulatory Environment 80 Affordability of local fixed line calls (as % of per capita GDP), 2001 45 Infrastructure Environment 39 Affordability of Internet telephone access (as % of per capita GDP), 2001 16 131 State of cluster development, 2003 78 Affordability of Internet service provider fees (as % of per capita GDP), 2001 41 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 42 65 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 45 Subsidies for firm-level R&D, 2003 52 Extent of staff training, 2003 74 Quality of scientific research institutions, 2003 42 Country Quality of business schools, 2003 79 2 Availability of scientists and engineers, 2003 43 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 39 artP Brain drain, 2003 71 Government prioritization of ICT, 2003 49 Utility patents granted (per 1,000,000 inhabitants), 2002 32 Government online presence, 2003 25 ICT manufactured exports (per capita), 2001 39 Government procurement of ICT, 2003 74 ICT service exports (per capita), 2001 31 Overall administrative burden, 2003 85 Usage Component Index 51 Quality of the legal system, 2003 79 Individual Usage 48 Laws relating to ICT, 2003 61 Business Usage 37 Competition in the ISP sector, 2003 83 Government Usage 64 Foreign ownership restrictions, 2003 92 Personal computers (per 1,000 inhabitants), 2001 41 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 32 38 Cable television subscribers (per 1,000 inhabitants), 2001 54 Freedom of the press, 2003 74 Internet users (per 1,000 inhabitants), 2001 49 Overall infrastructure quality, 2003 81 Computers installed in businesses (per 1,000 inhabitants), 2002 40 Waiting time for telephone lines (years), 2000 56 Firm-level technology absorption, 2003 35 Telephone mainlines (per 1,000 inhabitants), 2001 33 Prevalence of foreign technology licensing, 2003 21 Public pay telephones (per 1,000 inhabitants), 2001 13 Government success in ICT promotion, 2003 64 Internet servers (per 1,000,000 inhabitants), 2001 34 Government online services, 2003 63 Czech Republic.cz Key Indicators Networked Readiness Index Rank 33 Population, 2002 10,144,000 2003­2004 (102 countries) Main telephone lines in operation, 2001 3,860,843 2002­2003 (82 countries) 28 growth (%) 1999­2001 1% 2001­2002 (75 countries) 28 Cellular mobile telephone subscribers, 2002 8,610,177 growth (%) 1999­2002 343% Readiness Component Index 33 Personal computers, 2001 1,500,000 Individual Readiness 34 growth (%) 1999­2001 36% Business Readiness 36 Internet users (estimated), 2002 2,500,000 Government Readiness 34 growth (%) 1999­2002 257% Public expenditure on education (per capita), 2000 33 Adult illiteracy (%), 2001 7 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 45 Radios (per 1,000 inhabitants), 2001 or most recent available 21 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 25 34 Households online (as % of households with computers), 2002 34 Market Environment 37 Quality of math and science education, 2003 17 Political and Regulatory Environment 41 Affordability of local fixed line calls (as % of per capita GDP), 2001 43 132 Infrastructure Environment 33 Affordability of Internet telephone access (as % of per capita GDP), 2001 93 State of cluster development, 2003 76 Affordability of Internet service provider fees (as % of per capita GDP), 2001 28 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 45 38 Cost of business telephone monthly subscription (as % of per capita GDP),2002 28 Subsidies for firm-level R&D, 2003 42 Country Extent of staff training, 2003 50 Quality of scientific research institutions, 2003 34 2 Quality of business schools, 2003 44 artP Availability of scientists and engineers, 2003 33 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 37 Brain drain, 2003 35 Government prioritization of ICT, 2003 62 Utility patents granted (per 1,000,000 inhabitants), 2002 30 Government online presence, 2003 21 ICT manufactured exports (per capita), 2001 26 Government procurement of ICT, 2003 51 ICT service exports (per capita), 2001 27 Overall administrative burden, 2003 57 Usage Component Index 35 Quality of the legal system, 2003 46 Individual Usage 34 Laws relating to ICT, 2003 35 Business Usage 30 Competition in the ISP sector, 2003 47 Government Usage 61 Foreign ownership restrictions, 2003 35 Personal computers (per 1,000 inhabitants), 2001 33 28 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 75 Cable television subscribers (per 1,000 inhabitants), 2001 31 Freedom of the press, 2003 32 Internet users (per 1,000 inhabitants), 2001 34 Overall infrastructure quality, 2003 38 Computers installed in businesses (per 1,000 inhabitants), 2002 29 Waiting time for telephone lines (years), 2000 34 Firm-level technology absorption, 2003 53 Telephone mainlines (per 1,000 inhabitants), 2001 31 Prevalence of foreign technology licensing, 2003 17 Public pay telephones (per 1,000 inhabitants), 2001 39 Government success in ICT promotion, 2003 77 Internet servers (per 1,000,000 inhabitants), 2001 26 Government online services, 2003 47 Denmark.dk Key Indicators Networked Readiness Index Rank 5 Population, 2002 5,374,255 2003­2004 (102 countries) Main telephone lines in operation, 2002 3,739,247 2002­2003 (82 countries) 8 growth (%) 1999­2002 3% 2001­2002 (75 countries) 7 Cellular mobile telephone subscribers, 2002 4,478,145 growth (%) 1999­2002 70% Readiness Component Index 5 Individual Readiness Personal computers, 2002 3,100,000 3 growth (%) 1999­2002 29% Business Readiness 7 Internet users (estimated), 2002 2,500,000 Government Readiness 7 growth (%) 1999­2002 54% Public expenditure on education (per capita), 2000 2 Adult illiteracy (%), 2001 1 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 15 Radios (per 1,000 inhabitants), 2001 or most recent available 8 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 4 10 Households online (as % of households with computers), 2002 5 Market Environment 14 Quality of math and science education, 2003 28 Political and Regulatory Environment 7 Affordability of local fixed line calls (as % of per capita GDP), 2001 5 Infrastructure Environment 12 Affordability of Internet telephone access (as % of per capita GDP), 2001 71 133 State of cluster development, 2003 11 Affordability of Internet service provider fees (as % of per capita GDP), 2001 18 Venture capital availability, 2003 8 13 Ease of obtaining telephone lines, 2003 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 4 Subsidies for firm-level R&D, 2003 32 Extent of staff training, 2003 1 Quality of scientific research institutions, 2003 7 Country Quality of business schools, 2003 23 2 Availability of scientists and engineers, 2003 11 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 9 artP Brain drain, 2003 24 Government prioritization of ICT, 2003 10 Utility patents granted (per 1,000,000 inhabitants), 2002 13 Government online presence, 2003 15 ICT manufactured exports (per capita), 2001 10 Government procurement of ICT, 2003 13 ICT service exports (per capita), 2001 10 Overall administrative burden, 2003 14 Usage Component Index 3 Quality of the legal system, 2003 4 Individual Usage 5 Laws relating to ICT, 2003 4 Business Usage 5 Competition in the ISP sector, 2003 9 Government Usage 5 Foreign ownership restrictions, 2003 15 Personal computers (per 1,000 inhabitants), 2001 4 Efficiency of the tax system, 2003 80 ISDN subscribers (per 1,000 inhabitants), 2001 7 Cable television subscribers (per 1,000 inhabitants), 2001 10 Freedom of the press, 2003 1 Internet users (per 1,000 inhabitants), 2001 2 Overall infrastructure quality, 2003 3 Computers installed in businesses (per 1,000 inhabitants), 2002 7 Waiting time for telephone lines (years), 2000 1 Firm-level technology absorption, 2003 13 Telephone mainlines (per 1,000 inhabitants), 2001 4 Prevalence of foreign technology licensing, 2003 16 Public pay telephones (per 1,000 inhabitants), 2001 76 Government success in ICT promotion, 2003 10 Internet servers (per 1,000,000 inhabitants), 2001 16 Government online services, 2003 5 Dominican Republic.do Key Indicators Networked Readiness Index Rank 57 Population, 2002 8,707,500 2003­2004 (102 countries) Main telephone lines in operation, 2001 955,145 2002­2003 (82 countries) 57 growth (%) 1999­2001 16% 2001­2002 (75 countries) 47 Cellular mobile telephone subscribers, 2001 1,270,082 growth (%) 1999­2001 199% Readiness Component Index 52 Personal computers, 2002 n/a Individual Readiness 64 growth (%) 1999­2002 n/a Business Readiness 48 Internet users (estimated), 2001 186,000 Government Readiness 49 growth (%) 1999­2001 94% Public expenditure on education (per capita), 2000 67 Adult illiteracy (%), 2001 73 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 56 Radios (per 1,000 inhabitants), 2001 or most recent available 84 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 56 54 Households online (as % of households with computers), 2002 55 Market Environment 73 Quality of math and science education, 2003 84 Political and Regulatory Environment 45 Affordability of local fixed line calls (as % of per capita GDP), 2001 61 134 Infrastructure Environment 57 Affordability of Internet telephone access (as % of per capita GDP), 2001 57 State of cluster development, 2003 82 Affordability of Internet service provider fees (as % of per capita GDP), 2001 50 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 31 48 Cost of business telephone monthly subscription (as % of per capita GDP),2002 68 Subsidies for firm-level R&D, 2003 80 Country Extent of staff training, 2003 43 Quality of scientific research institutions, 2003 83 2 Quality of business schools, 2003 63 artP Availability of scientists and engineers, 2003 90 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 54 Brain drain, 2003 33 Government prioritization of ICT, 2003 74 Utility patents granted (per 1,000,000 inhabitants), 2002 61 Government online presence, 2003 36 ICT manufactured exports (per capita), 2001 59 Government procurement of ICT, 2003 63 ICT service exports (per capita), 2001 63 Overall administrative burden, 2003 46 Usage Component Index 66 Quality of the legal system, 2003 60 Individual Usage 52 Laws relating to ICT, 2003 40 Business Usage 48 Competition in the ISP sector, 2003 42 Government Usage 90 Foreign ownership restrictions, 2003 21 Personal computers (per 1,000 inhabitants), 2001 50 Efficiency of the tax system, 2003 44 ISDN subscribers (per 1,000 inhabitants), 2001 81 Cable television subscribers (per 1,000 inhabitants), 2001 42 Freedom of the press, 2003 60 Internet users (per 1,000 inhabitants), 2001 67 Overall infrastructure quality, 2003 44 Computers installed in businesses (per 1,000 inhabitants), 2002 58 Waiting time for telephone lines (years), 2000 67 Firm-level technology absorption, 2003 33 Telephone mainlines (per 1,000 inhabitants), 2001 61 Prevalence of foreign technology licensing, 2003 31 Public pay telephones (per 1,000 inhabitants), 2001 25 Government success in ICT promotion, 2003 74 Internet servers (per 1,000,000 inhabitants), 2001 66 Government online services, 2003 93 Ecuador.ec Key Indicators Networked Readiness Index Rank 89 Population, 2002 12,941,500 2003­2004 (102 countries) Main telephone lines in operation, 2002 1,426,188 2002­2003 (82 countries) 75 growth (%) 1999­2002 26% 2001­2002 (75 countries) 71 Cellular mobile telephone subscribers, 2002 1,560,861 growth (%) 1999­2002 307% Readiness Component Index 93 Individual Readiness Personal computers, 2002 402,652 81 growth (%) 1999­2002 61% Business Readiness 91 Internet users (estimated), 2002 503,315 Government Readiness 97 growth (%) 1999­2002 403% Public expenditure on education (per capita), 2000 77 Adult illiteracy (%), 2001 57 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 61 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 50 Environment Component Index 90 Television sets (per 1,000 inhabitants), 2001 57 Households online (as % of households with computers), 2002 98 Market Environment 91 Quality of math and science education, 2003 92 Political and Regulatory Environment 93 Affordability of local fixed line calls (as % of per capita GDP), 2001 98 Infrastructure Environment 79 Affordability of Internet telephone access (as % of per capita GDP), 2001 33 135 State of cluster development, 2003 71 Affordability of Internet service provider fees (as % of per capita GDP), 2001 56 Venture capital availability, 2003 81 Ease of obtaining telephone lines, 2003 87 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 76 Subsidies for firm-level R&D, 2003 92 Extent of staff training, 2003 90 Quality of scientific research institutions, 2003 94 Country Quality of business schools, 2003 90 2 Availability of scientists and engineers, 2003 86 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 89 artP Brain drain, 2003 75 Government prioritization of ICT, 2003 95 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 87 ICT manufactured exports (per capita), 2001 76 Government procurement of ICT, 2003 94 ICT service exports (per capita), 2001 76 Overall administrative burden, 2003 88 Usage Component Index 83 Quality of the legal system, 2003 94 Individual Usage 62 Laws relating to ICT, 2003 81 Business Usage 83 Competition in the ISP sector, 2003 90 Government Usage 84 Foreign ownership restrictions, 2003 91 Personal computers (per 1,000 inhabitants), 2001 66 Efficiency of the tax system, 2003 85 ISDN subscribers (per 1,000 inhabitants), 2001 55 Cable television subscribers (per 1,000 inhabitants), 2001 56 Freedom of the press, 2003 51 Internet users (per 1,000 inhabitants), 2001 65 Overall infrastructure quality, 2003 78 Computers installed in businesses (per 1,000 inhabitants), 2002 67 Waiting time for telephone lines (years), 2000 73 Firm-level technology absorption, 2003 90 Telephone mainlines (per 1,000 inhabitants), 2001 64 Prevalence of foreign technology licensing, 2003 80 Public pay telephones (per 1,000 inhabitants), 2001 87 Government success in ICT promotion, 2003 94 Internet servers (per 1,000,000 inhabitants), 2001 69 Government online services, 2003 49 Egypt.eg Key Indicators Networked Readiness Index Rank Population, 2002 65,643,000 2003­2004 (102 countries) 65 Main telephone lines in operation, 2002 7,430,000 2002­2003 (82 countries) 65 growth (%) 1999­2002 59% 2001­2002 (75 countries) 60 Cellular mobile telephone subscribers, 2002 4,494,700 growth (%) 1999­2002 834% Readiness Component Index 71 Personal computers, 2002 1,120,000 Individual Readiness 72 growth (%) 1999­2002 49% Business Readiness 60 Internet users (estimated), 2002 1,500,000 Government Readiness 77 growth (%) 1999­2002 650% Public expenditure on education (per capita), 2000 70 Adult illiteracy (%), 2001 92 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 37 Radios (per 1,000 inhabitants), 2001 or most recent available 62 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 59 60 Households online (as % of households with computers), 2002 99 Market Environment 49 Quality of math and science education, 2003 66 Political and Regulatory Environment 66 Affordability of local fixed line calls (as % of per capita GDP), 2001 35 136 Infrastructure Environment 65 Affordability of Internet telephone access (as % of per capita GDP), 2001 25 State of cluster development, 2003 26 Affordability of Internet service provider fees (as % of per capita GDP), 2001 52 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 64 44 Cost of business telephone monthly subscription (as % of per capita GDP),2002 38 Subsidies for firm-level R&D, 2003 45 66 Country Extent of staff training, 2003 Quality of scientific research institutions, 2003 60 2 Quality of business schools, 2003 75 artP Availability of scientists and engineers, 2003 57 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 55 Brain drain, 2003 54 Government prioritization of ICT, 2003 42 Utility patents granted (per 1,000,000 inhabitants), 2002 64 Government online presence, 2003 89 ICT manufactured exports (per capita), 2001 91 Government procurement of ICT, 2003 48 ICT service exports (per capita), 2001 56 Overall administrative burden, 2003 49 Usage Component Index 63 Quality of the legal system, 2003 59 Individual Usage 77 Laws relating to ICT, 2003 63 Business Usage 72 Competition in the ISP sector, 2003 33 Government Usage 44 Foreign ownership restrictions, 2003 70 Personal computers (per 1,000 inhabitants), 2001 74 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 80 57 Cable television subscribers (per 1,000 inhabitants), 2001 n/a Freedom of the press, 2003 90 Internet users (per 1,000 inhabitants), 2001 80 Overall infrastructure quality, 2003 43 Computers installed in businesses (per 1,000 inhabitants), 2002 70 Waiting time for telephone lines (years), 2000 70 Firm-level technology absorption, 2003 71 Telephone mainlines (per 1,000 inhabitants), 2001 64 Prevalence of foreign technology licensing, 2003 64 Public pay telephones (per 1,000 inhabitants), 2001 83 Government success in ICT promotion, 2003 35 Internet servers (per 1,000,000 inhabitants), 2001 81 Government online services, 2003 44 El Salvador.sv Key Indicators Networked Readiness Index Rank 62 Population, 2002 6,457,500 2003­2004 (102 countries) Main telephone lines in operation, 2002 667,699 2002­2003 (82 countries) 63 growth (%) 1999­2002 35% 2001­2002 (75 countries) 55 Cellular mobile telephone subscribers, 2002 888,818 growth (%) 1999­2002 74% Readiness Component Index 59 Individual Readiness Personal computers, 2001 140,000 69 growth (%) 1999­2001 40% Business Readiness 55 Internet users (estimated), 2002 300,000 Government Readiness 53 growth (%) 1999­2002 500% Public expenditure on education (per capita), 2000 71 Adult illiteracy (%), 2001 76 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 60 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 45 Environment Component Index Television sets (per 1,000 inhabitants), 2001 60 62 Households online (as % of households with computers), 2002 56 Market Environment 92 Quality of math and science education, 2003 81 Political and Regulatory Environment 40 Affordability of local fixed line calls (as % of per capita GDP), 2001 58 Infrastructure Environment 62 Affordability of Internet telephone access (as % of per capita GDP), 2001 44 137 State of cluster development, 2003 87 Affordability of Internet service provider fees (as % of per capita GDP), 2001 62 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 26 50 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 73 Subsidies for firm-level R&D, 2003 100 Extent of staff training, 2003 49 Quality of scientific research institutions, 2003 96 Country Quality of business schools, 2003 64 2 Availability of scientists and engineers, 2003 97 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 95 artP Brain drain, 2003 49 Government prioritization of ICT, 2003 72 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 51 ICT manufactured exports (per capita), 2001 64 Government procurement of ICT, 2003 57 ICT service exports (per capita), 2001 62 Overall administrative burden, 2003 29 Usage Component Index 67 Quality of the legal system, 2003 75 Individual Usage 61 Laws relating to ICT, 2003 74 Business Usage 60 Competition in the ISP sector, 2003 43 Government Usage 72 Foreign ownership restrictions, 2003 50 Personal computers (per 1,000 inhabitants), 2001 67 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 68 9 Cable television subscribers (per 1,000 inhabitants), 2001 50 Freedom of the press, 2003 29 Internet users (per 1,000 inhabitants), 2001 83 Overall infrastructure quality, 2003 50 Computers installed in businesses (per 1,000 inhabitants), 2002 62 Waiting time for telephone lines (years), 2000 72 Firm-level technology absorption, 2003 52 Telephone mainlines (per 1,000 inhabitants), 2001 67 Prevalence of foreign technology licensing, 2003 58 Public pay telephones (per 1,000 inhabitants), 2001 44 Government success in ICT promotion, 2003 62 Internet servers (per 1,000,000 inhabitants), 2001 64 Government online services, 2003 74 Estonia.ee Key Indicators Networked Readiness Index Rank Population, 2002 1,355,000 2003­2004 (102 countries) 25 Main telephone lines in operation, 2002 475,000 2002­2003 (82 countries) 24 growth (%) 1999­2002 -8% 2001­2002 (75 countries) 23 Cellular mobile telephone subscribers, 2002 881,000 growth (%) 1999­2002 128% Readiness Component Index 22 18 Personal computers, 2002 285,000 Individual Readiness growth (%) 1999­2002 46% Business Readiness 26 Internet users (estimated), 2002 560,000 Government Readiness 15 growth (%) 1999­2002 180% Public expenditure on education (per capita), 2000 31 Adult illiteracy (%), 2001 10 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 17 Radios (per 1,000 inhabitants), 2001 or most recent available 9 RANK/102 13 Environment Component Index Television sets (per 1,000 inhabitants), 2001 25 Households online (as % of households with computers), 2002 31 Market Environment 39 Quality of math and science education, 2003 15 Political and Regulatory Environment 3 Affordability of local fixed line calls (as % of per capita GDP), 2001 48 138 Infrastructure Environment 37 Affordability of Internet telephone access (as % of per capita GDP), 2001 28 State of cluster development, 2003 74 Affordability of Internet service provider fees (as % of per capita GDP), 2001 40 27 Profiles Venture capital availability, 2003 27 Ease of obtaining telephone lines, 2003 Cost of business telephone monthly subscription (as % of per capita GDP),2002 42 Subsidies for firm-level R&D, 2003 55 40 Country Extent of staff training, 2003 Quality of scientific research institutions, 2003 31 2 Quality of business schools, 2003 28 artP Availability of scientists and engineers, 2003 52 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 25 Brain drain, 2003 38 Government prioritization of ICT, 2003 18 Utility patents granted (per 1,000,000 inhabitants), 2002 29 Government online presence, 2003 18 ICT manufactured exports (per capita), 2001 24 Government procurement of ICT, 2003 33 ICT service exports (per capita), 2001 26 Overall administrative burden, 2003 6 Usage Component Index 27 Quality of the legal system, 2003 22 Individual Usage 26 Laws relating to ICT, 2003 6 Business Usage 39 Competition in the ISP sector, 2003 5 Government Usage 13 Foreign ownership restrictions, 2003 29 Personal computers (per 1,000 inhabitants), 2001 27 Efficiency of the tax system, 2003 4 ISDN subscribers (per 1,000 inhabitants), 2001 25 Cable television subscribers (per 1,000 inhabitants), 2001 30 Freedom of the press, 2003 20 Internet users (per 1,000 inhabitants), 2001 21 Overall infrastructure quality, 2003 32 Computers installed in businesses (per 1,000 inhabitants), 2002 45 Waiting time for telephone lines (years), 2000 63 Firm-level technology absorption, 2003 19 Telephone mainlines (per 1,000 inhabitants), 2001 35 Prevalence of foreign technology licensing, 2003 41 Public pay telephones (per 1,000 inhabitants), 2001 63 Government success in ICT promotion, 2003 12 Internet servers (per 1,000,000 inhabitants), 2001 18 Government online services, 2003 16 Ethiopia.et Key Indicators Networked Readiness Index Rank 101 Population, 2002 67,347,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 368,199 growth (%) 1999­2002 89% Cellular mobile telephone subscribers, 2002 50,369 growth (%) 1999­2002 647% Readiness Component Index 101 Personal computers, 2002 100,000 Individual Readiness 102 growth (%) 1999­2002 122% Business Readiness 100 Internet users (estimated), 2002 50,000 Government Readiness 99 growth (%) 1999­2002 525% Public expenditure on education (per capita), 2000 102 Adult illiteracy (%), 2001 99 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 96 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 82 Environment Component Index Television sets (per 1,000 inhabitants), 2001 97 102 Households online (as % of households with computers), 2002 86 Market Environment 96 Quality of math and science education, 2003 85 Political and Regulatory Environment 102 Affordability of local fixed line calls (as % of per capita GDP), 2001 95 Infrastructure Environment 99 Affordability of Internet telephone access (as % of per capita GDP), 2001 96 139 State of cluster development, 2003 86 Affordability of Internet service provider fees (as % of per capita GDP), 2001 102 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 94 90 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 98 Subsidies for firm-level R&D, 2003 90 Extent of staff training, 2003 101 Quality of scientific research institutions, 2003 65 Country Quality of business schools, 2003 97 2 Availability of scientists and engineers, 2003 96 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 96 artP Brain drain, 2003 92 Government prioritization of ICT, 2003 86 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 100 ICT manufactured exports (per capita), 2001 102 Government procurement of ICT, 2003 95 ICT service exports (per capita), 2001 96 Overall administrative burden, 2003 68 Usage Component Index 96 Quality of the legal system, 2003 87 Individual Usage 102 Laws relating to ICT, 2003 101 Business Usage 101 Competition in the ISP sector, 2003 102 Government Usage 92 Foreign ownership restrictions, 2003 102 Personal computers (per 1,000 inhabitants), 2001 102 Efficiency of the tax system, 2003 76 ISDN subscribers (per 1,000 inhabitants), 2001 97 Cable television subscribers (per 1,000 inhabitants), 2001 n/a Freedom of the press, 2003 94 Internet users (per 1,000 inhabitants), 2001 102 Overall infrastructure quality, 2003 93 Computers installed in businesses (per 1,000 inhabitants), 2002 99 Waiting time for telephone lines (years), 2000 96 Firm-level technology absorption, 2003 98 Telephone mainlines (per 1,000 inhabitants), 2001 95 Prevalence of foreign technology licensing, 2003 99 Public pay telephones (per 1,000 inhabitants), 2001 101 Government success in ICT promotion, 2003 84 Internet servers (per 1,000,000 inhabitants), 2001 96 Government online services, 2003 86 Finland.fi Key Indicators Networked Readiness Index Rank 3 Population, 2002 5,207,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 2,850,000 2002­2003 (82 countries) 1 growth (%) 1999­2002 0% 2001­2002 (75 countries) 3 Cellular mobile telephone subscribers, 2002 4,400,000 growth (%) 1999­2002 34% Readiness Component Index 1 4 Personal computers, 2002 2,300,000 Individual Readiness growth (%) 1999­2002 24% Business Readiness 1 Internet users (estimated), 2002 2,650,000 Government Readiness 2 growth (%) 1999­2002 59% Public expenditure on education (per capita), 2000 6 Adult illiteracy (%), 2001 1 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 1 Radios (per 1,000 inhabitants), 2001 or most recent available 5 RANK/102 11 Environment Component Index 3 Television sets (per 1,000 inhabitants), 2001 Households online (as % of households with computers), 2002 11 Market Environment 3 Quality of math and science education, 2003 4 Political and Regulatory Environment 1 Affordability of local fixed line calls (as % of per capita GDP), 2001 18 140 Infrastructure Environment 15 Affordability of Internet telephone access (as % of per capita GDP), 2001 51 State of cluster development, 2003 1 Affordability of Internet service provider fees (as % of per capita GDP), 2001 15 1 Profiles Venture capital availability, 2003 1 Ease of obtaining telephone lines, 2003 Cost of business telephone monthly subscription (as % of per capita GDP),2002 6 Subsidies for firm-level R&D, 2003 6 7 Country Extent of staff training, 2003 Quality of scientific research institutions, 2003 4 2 Quality of business schools, 2003 6 artP Availability of scientists and engineers, 2003 2 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 2 Brain drain, 2003 2 Government prioritization of ICT, 2003 3 Utility patents granted (per 1,000,000 inhabitants), 2002 7 Government online presence, 2003 12 ICT manufactured exports (per capita), 2001 8 Government procurement of ICT, 2003 4 ICT service exports (per capita), 2001 15 Overall administrative burden, 2003 3 Usage Component Index 9 Quality of the legal system, 2003 1 Individual Usage 10 Laws relating to ICT, 2003 1 Business Usage 11 Competition in the ISP sector, 2003 6 Government Usage 8 Foreign ownership restrictions, 2003 7 Personal computers (per 1,000 inhabitants), 2001 12 10 Efficiency of the tax system, 2003 12 ISDN subscribers (per 1,000 inhabitants), 2001 Cable television subscribers (per 1,000 inhabitants), 2001 12 Freedom of the press, 2003 8 Internet users (per 1,000 inhabitants), 2001 11 Overall infrastructure quality, 2003 5 Computers installed in businesses (per 1,000 inhabitants), 2002 13 Waiting time for telephone lines (years), 2000 1 Firm-level technology absorption, 2003 1 Telephone mainlines (per 1,000 inhabitants), 2001 14 Prevalence of foreign technology licensing, 2003 47 Public pay telephones (per 1,000 inhabitants), 2001 65 Government success in ICT promotion, 2003 5 Internet servers (per 1,000,000 inhabitants), 2001 11 Government online services, 2003 20 France.fr Key Indicators Networked Readiness Index Rank 19 Population, 2002 59,637,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 33,928,740 2002­2003 (82 countries) 19 growth (%) 1999­2002 0% 2001­2002 (75 countries) 24 Cellular mobile telephone subscribers, 2002 38,585,300 growth (%) 1999­2002 80% Readiness Component Index 7 Individual Readiness Personal computers, 2002 20,700,000 11 growth (%) 1999­2002 32% Business Readiness 11 Internet users (estimated), 2002 18,716,000 Government Readiness 4 growth (%) 1999­2002 249% Public expenditure on education (per capita), 2000 10 Adult illiteracy (%), 2001 17 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 21 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 17 Environment Component Index 23 Television sets (per 1,000 inhabitants), 2001 12 Households online (as % of households with computers), 2002 17 Market Environment 17 Quality of math and science education, 2003 3 Political and Regulatory Environment 32 Affordability of local fixed line calls (as % of per capita GDP), 2001 28 Infrastructure Environment 14 Affordability of Internet telephone access (as % of per capita GDP), 2001 62 141 State of cluster development, 2003 19 Affordability of Internet service provider fees (as % of per capita GDP), 2001 25 Venture capital availability, 2003 14 Ease of obtaining telephone lines, 2003 9 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 15 Subsidies for firm-level R&D, 2003 8 Extent of staff training, 2003 15 Quality of scientific research institutions, 2003 8 Country Quality of business schools, 2003 2 2 Availability of scientists and engineers, 2003 4 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 14 artP Brain drain, 2003 40 Government prioritization of ICT, 2003 26 Utility patents granted (per 1,000,000 inhabitants), 2002 16 Government online presence, 2003 3 ICT manufactured exports (per capita), 2001 14 Government procurement of ICT, 2003 6 ICT service exports (per capita), 2001 17 Overall administrative burden, 2003 90 Usage Component Index 25 Quality of the legal system, 2003 42 Individual Usage 24 Laws relating to ICT, 2003 13 Business Usage 23 Competition in the ISP sector, 2003 24 Government Usage 16 Foreign ownership restrictions, 2003 19 Personal computers (per 1,000 inhabitants), 2001 19 Efficiency of the tax system, 2003 79 ISDN subscribers (per 1,000 inhabitants), 2001 17 Cable television subscribers (per 1,000 inhabitants), 2001 47 Freedom of the press, 2003 25 Internet users (per 1,000 inhabitants), 2001 27 Overall infrastructure quality, 2003 6 Computers installed in businesses (per 1,000 inhabitants), 2002 21 Waiting time for telephone lines (years), 2000 1 Firm-level technology absorption, 2003 27 Telephone mainlines (per 1,000 inhabitants), 2001 13 Prevalence of foreign technology licensing, 2003 55 Public pay telephones (per 1,000 inhabitants), 2001 35 Government success in ICT promotion, 2003 26 Internet servers (per 1,000,000 inhabitants), 2001 25 Government online services, 2003 14 Gambia.gm Key Indicators Networked Readiness Index Rank 82 Population, 2002 1,372,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 38,350 growth (%) 1999­2002 31% Cellular mobile telephone subscribers, 2002 100,000 growth (%) 1999­2002 1,784% Readiness Component Index 92 Personal computers, 2001 17,000 Individual Readiness 100 growth (%) 1999­2001 70% Business Readiness 79 Internet users (estimated), 2001 18,000 Government Readiness 79 growth (%) 1999­2001 100% Public expenditure on education (per capita), 2000 95 Adult illiteracy (%), 2001 101 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 95 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 54 Environment Component Index Television sets (per 1,000 inhabitants), 2001 101 70 Households online (as % of households with computers), 2002 80 Market Environment 94 Quality of math and science education, 2003 83 Political and Regulatory Environment 30 Affordability of local fixed line calls (as % of per capita GDP), 2001 93 142 Infrastructure Environment 90 Affordability of Internet telephone access (as % of per capita GDP), 2001 102 State of cluster development, 2003 68 Affordability of Internet service provider fees (as % of per capita GDP), 2001 90 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 67 79 Cost of business telephone monthly subscription (as % of per capita GDP),2002 87 Subsidies for firm-level R&D, 2003 89 Country Extent of staff training, 2003 82 Quality of scientific research institutions, 2003 87 2 Quality of business schools, 2003 88 artP Availability of scientists and engineers, 2003 100 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 75 Brain drain, 2003 89 Government prioritization of ICT, 2003 13 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 92 ICT manufactured exports (per capita), 2001 99 Government procurement of ICT, 2003 81 ICT service exports (per capita), 2001 91 Overall administrative burden, 2003 8 Usage Component Index 74 Quality of the legal system, 2003 30 Individual Usage 87 Laws relating to ICT, 2003 83 Business Usage 77 Competition in the ISP sector, 2003 46 Government Usage 55 Foreign ownership restrictions, 2003 14 Personal computers (per 1,000 inhabitants), 2001 78 90 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 13 Cable television subscribers (per 1,000 inhabitants), 2001 94 Freedom of the press, 2003 71 Internet users (per 1,000 inhabitants), 2001 73 Overall infrastructure quality, 2003 53 Computers installed in businesses (per 1,000 inhabitants), 2002 61 Waiting time for telephone lines (years), 2000 91 Firm-level technology absorption, 2003 42 Telephone mainlines (per 1,000 inhabitants), 2001 83 Prevalence of foreign technology licensing, 2003 90 Public pay telephones (per 1,000 inhabitants), 2001 85 Government success in ICT promotion, 2003 9 Internet servers (per 1,000,000 inhabitants), 2001 89 Government online services, 2003 96 Germany.de Key Indicators Networked Readiness Index Rank 11 Population, 2002 82,600,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 53,720,000 2002­2003 (82 countries) 10 growth (%) 1999­2002 11% 2001­2002 (75 countries) 17 Cellular mobile telephone subscribers, 2002 59,200,000 growth (%) 1999­2002 152% Readiness Component Index 12 Individual Readiness Personal computers, 2002 35,920,940 19 growth (%) 1999­2002 47% Business Readiness 9 Internet users (estimated), 2002 35,000,000 Government Readiness 8 growth (%) 1999­2002 105% Public expenditure on education (per capita), 2000 17 Adult illiteracy (%), 2001 17 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 31 Radios (per 1,000 inhabitants), 2001 or most recent available 36 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 17 16 Households online (as % of households with computers), 2002 6 Market Environment 15 Quality of math and science education, 2003 53 Political and Regulatory Environment 17 Affordability of local fixed line calls (as % of per capita GDP), 2001 12 Infrastructure Environment 13 Affordability of Internet telephone access (as % of per capita GDP), 2001 60 143 State of cluster development, 2003 16 Affordability of Internet service provider fees (as % of per capita GDP), 2001 12 Venture capital availability, 2003 30 Ease of obtaining telephone lines, 2003 10 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 8 Subsidies for firm-level R&D, 2003 19 Extent of staff training, 2003 4 Quality of scientific research institutions, 2003 12 Country Quality of business schools, 2003 19 2 Availability of scientists and engineers, 2003 18 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 11 artP Brain drain, 2003 28 Government prioritization of ICT, 2003 38 Utility patents granted (per 1,000,000 inhabitants), 2002 8 Government online presence, 2003 2 ICT manufactured exports (per capita), 2001 15 Government procurement of ICT, 2003 14 ICT service exports (per capita), 2001 16 Overall administrative burden, 2003 24 Usage Component Index 10 Quality of the legal system, 2003 8 Individual Usage 6 Laws relating to ICT, 2003 14 Business Usage 16 Competition in the ISP sector, 2003 11 Government Usage 12 Foreign ownership restrictions, 2003 11 Personal computers (per 1,000 inhabitants), 2001 16 4 Efficiency of the tax system, 2003 102 ISDN subscribers (per 1,000 inhabitants), 2001 Cable television subscribers (per 1,000 inhabitants), 2001 6 Freedom of the press, 2003 4 Internet users (per 1,000 inhabitants), 2001 14 Overall infrastructure quality, 2003 4 Computers installed in businesses (per 1,000 inhabitants), 2002 20 Waiting time for telephone lines (years), 2000 1 Firm-level technology absorption, 2003 11 Telephone mainlines (per 1,000 inhabitants), 2001 7 Prevalence of foreign technology licensing, 2003 38 Public pay telephones (per 1,000 inhabitants), 2001 75 Government success in ICT promotion, 2003 37 Internet servers (per 1,000,000 inhabitants), 2001 17 Government online services, 2003 6 Ghana.gh Key Indicators Networked Readiness Index Rank 74 Population, 2002 21,674,000 2003­2004 (102 countries) Main telephone lines in operation, 2001 242,122 growth (%) 1999­2001 53% Cellular mobile telephone subscribers, 2002 405,000 growth (%) 1999­2002 478% Readiness Component Index 74 Personal computers, 2001 70,000 Individual Readiness 82 growth (%) 1999­2001 40% Business Readiness 75 Internet users (estimated), 2001 40,520 Government Readiness 58 growth (%) 1999­2001 103% Public expenditure on education (per capita), 2000 87 Adult illiteracy (%), 2001 81 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 89 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 27 Environment Component Index 67 Television sets (per 1,000 inhabitants), 2001 77 Households online (as % of households with computers), 2002 76 Market Environment 72 Quality of math and science education, 2003 70 Political and Regulatory Environment 39 Affordability of local fixed line calls (as % of per capita GDP), 2001 87 144 Infrastructure Environment 83 Affordability of Internet telephone access (as % of per capita GDP), 2001 87 State of cluster development, 2003 55 Affordability of Internet service provider fees (as % of per capita GDP), 2001 91 Profiles Venture capital availability, 2003 72 Ease of obtaining telephone lines, 2003 91 Cost of business telephone monthly subscription (as % of per capita GDP),2002 35 Subsidies for firm-level R&D, 2003 62 Country Extent of staff training, 2003 72 Quality of scientific research institutions, 2003 40 2 Quality of business schools, 2003 59 artP Availability of scientists and engineers, 2003 80 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 44 Brain drain, 2003 96 Government prioritization of ICT, 2003 17 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 88 ICT manufactured exports (per capita), 2001 98 Government procurement of ICT, 2003 19 ICT service exports (per capita), 2001 97 Overall administrative burden, 2003 27 Usage Component Index 80 Quality of the legal system, 2003 50 Individual Usage 96 Laws relating to ICT, 2003 53 Business Usage 73 Competition in the ISP sector, 2003 65 Government Usage 67 Foreign ownership restrictions, 2003 34 Personal computers (per 1,000 inhabitants), 2001 93 Efficiency of the tax system, 2003 22 ISDN subscribers (per 1,000 inhabitants), 2001 94 Cable television subscribers (per 1,000 inhabitants), 2001 90 Freedom of the press, 2003 43 Internet users (per 1,000 inhabitants), 2001 95 Overall infrastructure quality, 2003 71 Computers installed in businesses (per 1,000 inhabitants), 2002 90 Waiting time for telephone lines (years), 2000 75 Firm-level technology absorption, 2003 57 Telephone mainlines (per 1,000 inhabitants), 2001 87 Prevalence of foreign technology licensing, 2003 71 Public pay telephones (per 1,000 inhabitants), 2001 89 Government success in ICT promotion, 2003 22 Internet servers (per 1,000,000 inhabitants), 2001 95 Government online services, 2003 96 Greece.gr Key Indicators Networked Readiness Index Rank 34 Population, 2002 11,018,000 2003­2004 (102 countries) Main telephone lines in operation, 2001 5,607,726 2002­2003 (82 countries) 42 growth (%) 1999­2001 0% 2001­2002 (75 countries) 31 Cellular mobile telephone subscribers, 2002 9,314,260 growth (%) 1999­2002 139% Readiness Component Index 39 Individual Readiness Personal computers, 2001 860,000 27 growth (%) 1999­2001 34% Business Readiness 34 Internet users (estimated), 2002 1,704,936 Government Readiness 69 growth (%) 1999­2002 127% Public expenditure on education (per capita), 2000 28 Adult illiteracy (%), 2001 36 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 26 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 45 Environment Component Index Television sets (per 1,000 inhabitants), 2001 27 32 Households online (as % of households with computers), 2002 9 Market Environment 36 Quality of math and science education, 2003 38 Political and Regulatory Environment 48 Affordability of local fixed line calls (as % of per capita GDP), 2001 30 Infrastructure Environment 24 Affordability of Internet telephone access (as % of per capita GDP), 2001 52 145 State of cluster development, 2003 61 Affordability of Internet service provider fees (as % of per capita GDP), 2001 27 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 39 35 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 16 Subsidies for firm-level R&D, 2003 26 Extent of staff training, 2003 46 Quality of scientific research institutions, 2003 55 Country Quality of business schools, 2003 57 2 Availability of scientists and engineers, 2003 19 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 36 artP Brain drain, 2003 42 Government prioritization of ICT, 2003 68 Utility patents granted (per 1,000,000 inhabitants), 2002 35 Government online presence, 2003 65 ICT manufactured exports (per capita), 2001 43 Government procurement of ICT, 2003 76 ICT service exports (per capita), 2001 35 Overall administrative burden, 2003 75 Usage Component Index 38 Quality of the legal system, 2003 35 Individual Usage 32 Laws relating to ICT, 2003 64 Business Usage 43 Competition in the ISP sector, 2003 39 Government Usage 59 Foreign ownership restrictions, 2003 54 Personal computers (per 1,000 inhabitants), 2001 43 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 88 20 Cable television subscribers (per 1,000 inhabitants), 2001 Freedom of the press, 2003 22 24 Internet users (per 1,000 inhabitants), 2001 35 Overall infrastructure quality, 2003 49 Computers installed in businesses (per 1,000 inhabitants), 2002 36 Waiting time for telephone lines (years), 2000 37 Firm-level technology absorption, 2003 78 Telephone mainlines (per 1,000 inhabitants), 2001 15 Prevalence of foreign technology licensing, 2003 10 Public pay telephones (per 1,000 inhabitants), 2001 10 Government success in ICT promotion, 2003 72 Internet servers (per 1,000,000 inhabitants), 2001 38 Government online services, 2003 49 Guatemala.gt Key Indicators Networked Readiness Index Rank 86 Population, 2002 11,997,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 845,968 2002­2003 (82 countries) 73 growth (%) 1999­2002 39% 2001­2002 (75 countries) 68 Cellular mobile telephone subscribers, 2002 1,577,085 growth (%) 1999­2002 367% Readiness Component Index 83 85 Personal computers, 2001 150,000 Individual Readiness growth (%) 1999­2001 36% Business Readiness 65 Internet users (estimated), 2002 400,000 Government Readiness 95 growth (%) 1999­2002 515% Public expenditure on education (per capita), 2000 78 Adult illiteracy (%), 2001 84 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 77 Radios (per 1,000 inhabitants), 2001 or most recent available 98 RANK/102 86 Environment Component Index Television sets (per 1,000 inhabitants), 2001 84 Households online (as % of households with computers), 2002 58 Market Environment 89 Quality of math and science education, 2003 101 Political and Regulatory Environment 91 Affordability of local fixed line calls (as % of per capita GDP), 2001 72 146 Infrastructure Environment 74 Affordability of Internet telephone access (as % of per capita GDP), 2001 35 State of cluster development, 2003 81 Affordability of Internet service provider fees (as % of per capita GDP), 2001 68 50 Profiles Venture capital availability, 2003 67 Ease of obtaining telephone lines, 2003 Cost of business telephone monthly subscription (as % of per capita GDP),2002 53 Subsidies for firm-level R&D, 2003 98 75 Country Extent of staff training, 2003 Quality of scientific research institutions, 2003 93 2 Quality of business schools, 2003 66 artP Availability of scientists and engineers, 2003 89 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 69 Brain drain, 2003 53 Government prioritization of ICT, 2003 102 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 63 ICT manufactured exports (per capita), 2001 68 Government procurement of ICT, 2003 100 ICT service exports (per capita), 2001 64 Overall administrative burden, 2003 84 Usage Component Index 88 Quality of the legal system, 2003 90 Individual Usage 66 Laws relating to ICT, 2003 92 Business Usage 81 Competition in the ISP sector, 2003 51 Government Usage 93 Foreign ownership restrictions, 2003 88 Personal computers (per 1,000 inhabitants), 2001 77 75 Efficiency of the tax system, 2003 95 ISDN subscribers (per 1,000 inhabitants), 2001 Cable television subscribers (per 1,000 inhabitants), 2001 55 Freedom of the press, 2003 72 Internet users (per 1,000 inhabitants), 2001 70 Overall infrastructure quality, 2003 75 Computers installed in businesses (per 1,000 inhabitants), 2002 66 Waiting time for telephone lines (years), 2000 82 Firm-level technology absorption, 2003 81 Telephone mainlines (per 1,000 inhabitants), 2001 71 Prevalence of foreign technology licensing, 2003 87 Public pay telephones (per 1,000 inhabitants), 2001 42 Government success in ICT promotion, 2003 101 Internet servers (per 1,000,000 inhabitants), 2001 65 Government online services, 2003 49 Haiti.ht Key Indicators Networked Readiness Index Rank 100 Population, 2002 8,298,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 130,000 2002­2003 (82 countries) 82 growth (%) 1999­2002 86% Cellular mobile telephone subscribers, 2002 140,000 growth (%) 1999­2002 460% Readiness Component Index 98 Personal computers, 2002 n/a Individual Readiness 92 growth (%) 1999­2002 n/a Business Readiness 99 Internet users (estimated), 2002 80,000 Government Readiness 96 growth (%) 1999­2002 1,233% Public expenditure on education (per capita), 2000 100 Adult illiteracy (%), 2001 93 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 97 Radios (per 1,000 inhabitants), 2001 or most recent available 102 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 97 100 Households online (as % of households with computers), 2002 72 Market Environment 102 Quality of math and science education, 2003 98 Political and Regulatory Environment 99 Affordability of local fixed line calls (as % of per capita GDP), 2001 82 Infrastructure Environment 87 Affordability of Internet telephone access (as % of per capita GDP), 2001 76 147 State of cluster development, 2003 101 Affordability of Internet service provider fees (as % of per capita GDP), 2001 89 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 101 89 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 86 Subsidies for firm-level R&D, 2003 101 Extent of staff training, 2003 99 Quality of scientific research institutions, 2003 102 Country Quality of business schools, 2003 100 2 Availability of scientists and engineers, 2003 94 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 83 artP Brain drain, 2003 102 Government prioritization of ICT, 2003 100 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 74 ICT manufactured exports (per capita), 2001 85 Government procurement of ICT, 2003 93 ICT service exports (per capita), 2001 79 Overall administrative burden, 2003 59 Usage Component Index 102 Quality of the legal system, 2003 102 Individual Usage 85 Laws relating to ICT, 2003 102 Business Usage 99 Competition in the ISP sector, 2003 88 Government Usage 102 Foreign ownership restrictions, 2003 98 Personal computers (per 1,000 inhabitants), 2001 70 Efficiency of the tax system, 2003 86 43 ISDN subscribers (per 1,000 inhabitants), 2001 Cable television subscribers (per 1,000 inhabitants), 2001 81 Freedom of the press, 2003 84 Internet users (per 1,000 inhabitants), 2001 88 Overall infrastructure quality, 2003 101 Computers installed in businesses (per 1,000 inhabitants), 2002 86 Waiting time for telephone lines (years), 2000 85 Firm-level technology absorption, 2003 89 Telephone mainlines (per 1,000 inhabitants), 2001 88 Prevalence of foreign technology licensing, 2003 101 Public pay telephones (per 1,000 inhabitants), 2001 24 Government success in ICT promotion, 2003 100 Internet servers (per 1,000,000 inhabitants), 2001 84 Government online services, 2003 99 Honduras.hn Key Indicators Networked Readiness Index Rank 98 Population, 2002 6,712,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 322,497 2002­2003 (82 countries) 81 growth (%) 1999­2002 16% 2001­2002 (75 countries) 72 Cellular mobile telephone subscribers, 2002 326,508 growth (%) 1999­2002 315% Readiness Component Index 96 Personal computers, 2001 80,000 Individual Readiness 79 growth (%) 1999­2001 33% Business Readiness 94 Internet users (estimated), 2002 200,000 Government Readiness 100 growth (%) 1999­2002 471% Public expenditure on education (per capita), 2000 74 Adult illiteracy (%), 2001 80 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 68 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 50 Environment Component Index Television sets (per 1,000 inhabitants), 2001 82 96 Households online (as % of households with computers), 2002 65 Market Environment 93 Quality of math and science education, 2003 99 Political and Regulatory Environment 90 Affordability of local fixed line calls (as % of per capita GDP), 2001 80 148 Infrastructure Environment 97 Affordability of Internet telephone access (as % of per capita GDP), 2001 68 State of cluster development, 2003 84 Affordability of Internet service provider fees (as % of per capita GDP), 2001 70 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 91 102 Subsidies for firm-level R&D, 2003 Cost of business telephone monthly subscription (as % of per capita GDP),2002 77 88 Country Extent of staff training, 2003 92 Quality of scientific research institutions, 2003 95 2 Quality of business schools, 2003 98 artP Availability of scientists and engineers, 2003 95 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 48 Brain drain, 2003 60 Government prioritization of ICT, 2003 92 Utility patents granted (per 1,000,000 inhabitants), 2002 52 Government online presence, 2003 97 ICT manufactured exports (per capita), 2001 81 Government procurement of ICT, 2003 98 ICT service exports (per capita), 2001 69 Overall administrative burden, 2003 70 Usage Component Index 97 Quality of the legal system, 2003 93 Individual Usage 83 Laws relating to ICT, 2003 91 Business Usage 94 Competition in the ISP sector, 2003 89 Government Usage 98 Foreign ownership restrictions, 2003 78 Personal computers (per 1,000 inhabitants), 2001 79 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 63 68 Cable television subscribers (per 1,000 inhabitants), 2001 78 Freedom of the press, 2003 67 Internet users (per 1,000 inhabitants), 2001 86 Overall infrastructure quality, 2003 86 Computers installed in businesses (per 1,000 inhabitants), 2002 78 Waiting time for telephone lines (years), 2000 95 Firm-level technology absorption, 2003 101 Telephone mainlines (per 1,000 inhabitants), 2001 75 Prevalence of foreign technology licensing, 2003 89 Public pay telephones (per 1,000 inhabitants), 2001 86 Government success in ICT promotion, 2003 95 Internet servers (per 1,000,000 inhabitants), 2001 71 Government online services, 2003 89 Hong Kong SAR.hk Key Indicators Networked Readiness Index Rank 18 Population, 2002 6,773,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 3,842,943 2002­2003 (82 countries) 18 growth (%) 1999­2002 -1% 2001­2002 (75 countries) 13 Cellular mobile telephone subscribers, 2002 6,297,541 growth (%) 1999­2002 47% Readiness Component Index 28 Individual Readiness 24 Personal computers, 2001 2,600,000 growth (%) 1999­2001 30% Business Readiness 31 Internet users (estimated), 2002 2,918,800 Government Readiness 27 growth (%) 1999­2002 108% Public expenditure on education (per capita), 2000 14 Adult illiteracy (%), 2001 47 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 51 Radios (per 1,000 inhabitants), 2001 or most recent available 31 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 28 11 Households online (as % of households with computers), 2002 14 Market Environment 23 Quality of math and science education, 2003 16 Political and Regulatory Environment 2 Affordability of local fixed line calls (as % of per capita GDP), 2001 20 Infrastructure Environment 16 Affordability of Internet telephone access (as % of per capita GDP), 2001 64 149 State of cluster development, 2003 9 Affordability of Internet service provider fees (as % of per capita GDP), 2001 23 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 11 15 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 22 Subsidies for firm-level R&D, 2003 53 Extent of staff training, 2003 28 Quality of scientific research institutions, 2003 39 Country Quality of business schools, 2003 30 2 Availability of scientists and engineers, 2003 51 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 88 artP Brain drain, 2003 21 Government prioritization of ICT, 2003 22 Utility patents granted (per 1,000,000 inhabitants), 2002 24 Government online presence, 2003 39 ICT manufactured exports (per capita), 2001 22 Government procurement of ICT, 2003 26 ICT service exports (per capita), 2001 4 Overall administrative burden, 2003 2 Usage Component Index 15 Quality of the legal system, 2003 17 Individual Usage 22 Laws relating to ICT, 2003 18 Business Usage 14 Competition in the ISP sector, 2003 4 Government Usage 4 Foreign ownership restrictions, 2003 2 Personal computers (per 1,000 inhabitants), 2001 15 43 Efficiency of the tax system, 2003 1 ISDN subscribers (per 1,000 inhabitants), 2001 Cable television subscribers (per 1,000 inhabitants), 2001 35 Freedom of the press, 2003 39 Internet users (per 1,000 inhabitants), 2001 15 Overall infrastructure quality, 2003 10 Computers installed in businesses (per 1,000 inhabitants), 2002 15 Waiting time for telephone lines (years), 2000 1 Firm-level technology absorption, 2003 28 Telephone mainlines (per 1,000 inhabitants), 2001 12 Prevalence of foreign technology licensing, 2003 37 Public pay telephones (per 1,000 inhabitants), 2001 74 Government success in ICT promotion, 2003 31 Internet servers (per 1,000,000 inhabitants), 2001 15 Government online services, 2003 2 Hungary.hu Key Indicators Networked Readiness Index Rank 36 Population, 2002 10,152,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 3,666,443 2002­2003 (82 countries) 30 growth (%) 1999­2002 -2% 2001­2002 (75 countries) 30 Cellular mobile telephone subscribers, 2002 6,561,998 growth (%) 1999­2002 303% Readiness Component Index 38 Personal computers, 2002 1,100,000 Individual Readiness 33 growth (%) 1999­2002 47% Business Readiness 37 Internet users (estimated), 2002 1,600,000 Government Readiness 50 growth (%) 1999­2002 167% Public expenditure on education (per capita), 2000 32 Adult illiteracy (%), 2001 16 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 36 Radios (per 1,000 inhabitants), 2001 or most recent available 30 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 32 40 Households online (as % of households with computers), 2002 30 Market Environment 35 Quality of math and science education, 2003 8 Political and Regulatory Environment 46 Affordability of local fixed line calls (as % of per capita GDP), 2001 40 150 Infrastructure Environment 35 Affordability of Internet telephone access (as % of per capita GDP), 2001 94 State of cluster development, 2003 72 Affordability of Internet service provider fees (as % of per capita GDP), 2001 35 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 40 41 Cost of business telephone monthly subscription (as % of per capita GDP),2002 47 Subsidies for firm-level R&D, 2003 37 65 Country Extent of staff training, 2003 Quality of scientific research institutions, 2003 22 2 Quality of business schools, 2003 40 artP Availability of scientists and engineers, 2003 24 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 34 Brain drain, 2003 46 Government prioritization of ICT, 2003 50 Utility patents granted (per 1,000,000 inhabitants), 2002 28 Government online presence, 2003 60 ICT manufactured exports (per capita), 2001 20 Government procurement of ICT, 2003 34 ICT service exports (per capita), 2001 23 Overall administrative burden, 2003 58 Usage Component Index 34 Quality of the legal system, 2003 29 Individual Usage 30 Laws relating to ICT, 2003 49 Business Usage 51 Competition in the ISP sector, 2003 94 Government Usage 49 Foreign ownership restrictions, 2003 12 Personal computers (per 1,000 inhabitants), 2001 39 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 21 60 Cable television subscribers (per 1,000 inhabitants), 2001 18 Freedom of the press, 2003 42 Internet users (per 1,000 inhabitants), 2001 33 Overall infrastructure quality, 2003 58 Computers installed in businesses (per 1,000 inhabitants), 2002 35 Waiting time for telephone lines (years), 2000 31 Firm-level technology absorption, 2003 68 Telephone mainlines (per 1,000 inhabitants), 2001 32 Prevalence of foreign technology licensing, 2003 65 Public pay telephones (per 1,000 inhabitants), 2001 22 Government success in ICT promotion, 2003 65 Internet servers (per 1,000,000 inhabitants), 2001 35 Government online services, 2003 40 Iceland.is Key Indicators Networked Readiness Index Rank 10 Population, 2002 288,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 180,690 2002­2003 (82 countries) 5 growth (%) 1999­2002 -4% 2001­2002 (75 countries) 2 Cellular mobile telephone subscribers, 2002 256,000 growth (%) 1999­2002 48% Readiness Component Index 16 Individual Readiness 8 Personal computers, 2002 130,000 growth (%) 1999­2002 30% Business Readiness 16 Internet users (estimated), 2002 175,000 Government Readiness 32 growth (%) 1999­2002 17% Public expenditure on education (per capita), 2000 7 Adult illiteracy (%), 2001 7 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 27 Radios (per 1,000 inhabitants), 2001 or most recent available 7 RANK/102 Environment Component Index 5 Television sets (per 1,000 inhabitants), 2001 9 Households online (as % of households with computers), 2002 7 Market Environment 22 Quality of math and science education, 2003 26 Political and Regulatory Environment 4 Affordability of local fixed line calls (as % of per capita GDP), 2001 6 Infrastructure Environment 1 Affordability of Internet telephone access (as % of per capita GDP), 2001 53 151 State of cluster development, 2003 37 Affordability of Internet service provider fees (as % of per capita GDP), 2001 6 Venture capital availability, 2003 20 Ease of obtaining telephone lines, 2003 4 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 12 Subsidies for firm-level R&D, 2003 31 Extent of staff training, 2003 14 Quality of scientific research institutions, 2003 21 Country Quality of business schools, 2003 21 2 Availability of scientists and engineers, 2003 6 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 21 artP Brain drain, 2003 10 Government prioritization of ICT, 2003 20 Utility patents granted (per 1,000,000 inhabitants), 2002 20 Government online presence, 2003 50 ICT manufactured exports (per capita), 2001 37 Government procurement of ICT, 2003 21 ICT service exports (per capita), 2001 11 Overall administrative burden, 2003 5 Usage Component Index 14 Quality of the legal system, 2003 6 Individual Usage 9 Laws relating to ICT, 2003 9 Business Usage 9 Competition in the ISP sector, 2003 3 Government Usage 23 Foreign ownership restrictions, 2003 93 Personal computers (per 1,000 inhabitants), 2001 9 Efficiency of the tax system, 2003 6 ISDN subscribers (per 1,000 inhabitants), 2001 8 Cable television subscribers (per 1,000 inhabitants), 2001 11 Freedom of the press, 2003 12 Internet users (per 1,000 inhabitants), 2001 10 Overall infrastructure quality, 2003 11 Computers installed in businesses (per 1,000 inhabitants), 2002 11 Waiting time for telephone lines (years), 2000 1 Firm-level technology absorption, 2003 7 Telephone mainlines (per 1,000 inhabitants), 2001 9 Prevalence of foreign technology licensing, 2003 22 Public pay telephones (per 1,000 inhabitants), 2001 58 Government success in ICT promotion, 2003 11 Internet servers (per 1,000,000 inhabitants), 2001 1 Government online services, 2003 39 India.in Key Indicators Networked Readiness Index Rank Population, 2002 1,041,846,000 2003­2004 (102 countries) 45 Main telephone lines in operation, 2002 41,420,000 2002­2003 (82 countries) 37 growth (%) 1999­2002 56% 2001­2002 (75 countries) 54 Cellular mobile telephone subscribers, 2002 12,687,640 growth (%) 1999­2002 573% Readiness Component Index 50 Personal computers, 2001 6,000,000 Individual Readiness 80 growth (%) 1999­2001 82% Business Readiness 47 Internet users (estimated), 2002 16,580,000 Government Readiness 31 growth (%) 1999­2002 492% Public expenditure on education (per capita), 2000 84 Adult illiteracy (%), 2001 91 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 72 Radios (per 1,000 inhabitants), 2001 or most recent available 95 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 83 44 Households online (as % of households with computers), 2002 101 Market Environment 27 Quality of math and science education, 2003 14 Political and Regulatory Environment 29 Affordability of local fixed line calls (as % of per capita GDP), 2001 66 152 Infrastructure Environment 67 Affordability of Internet telephone access (as % of per capita GDP), 2001 49 State of cluster development, 2003 17 Affordability of Internet service provider fees (as % of per capita GDP), 2001 75 45 Profiles Venture capital availability, 2003 28 Ease of obtaining telephone lines, 2003 Cost of business telephone monthly subscription (as % of per capita GDP),2002 94 Subsidies for firm-level R&D, 2003 21 45 Country Extent of staff training, 2003 Quality of scientific research institutions, 2003 20 2 Quality of business schools, 2003 8 artP Availability of scientists and engineers, 2003 3 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 80 Brain drain, 2003 65 Government prioritization of ICT, 2003 12 Utility patents granted (per 1,000,000 inhabitants), 2002 54 Government online presence, 2003 36 ICT manufactured exports (per capita), 2001 82 Government procurement of ICT, 2003 71 ICT service exports (per capita), 2001 77 Overall administrative burden, 2003 67 Usage Component Index 44 Quality of the legal system, 2003 25 Individual Usage 69 Laws relating to ICT, 2003 36 Business Usage 40 Competition in the ISP sector, 2003 26 Government Usage 26 Foreign ownership restrictions, 2003 41 Personal computers (per 1,000 inhabitants), 2001 88 82 Efficiency of the tax system, 2003 59 ISDN subscribers (per 1,000 inhabitants), 2001 Cable television subscribers (per 1,000 inhabitants), 2001 53 Freedom of the press, 2003 26 Internet users (per 1,000 inhabitants), 2001 85 Overall infrastructure quality, 2003 70 Computers installed in businesses (per 1,000 inhabitants), 2002 80 Waiting time for telephone lines (years), 2000 53 Firm-level technology absorption, 2003 31 Telephone mainlines (per 1,000 inhabitants), 2001 79 Prevalence of foreign technology licensing, 2003 6 Public pay telephones (per 1,000 inhabitants), 2001 34 Government success in ICT promotion, 2003 16 Internet servers (per 1,000,000 inhabitants), 2001 85 Government online services, 2003 40 Indonesia.id Key Indicators Networked Readiness Index Rank 73 Population, 2002 212,110,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 7,750,035 2002­2003 (82 countries) 64 growth (%) 1999­2002 27% 2001­2002 (75 countries) 59 Cellular mobile telephone subscribers, 2002 11,700,000 growth (%) 1999­2002 427% Readiness Component Index 69 Individual Readiness Personal computers, 2001 2,300,000 71 growth (%) 1999­2001 21% Business Readiness 62 Internet users (estimated), 2002 8,000,000 Government Readiness 72 growth (%) 1999­2002 789% Public expenditure on education (per capita), 2000 76 Adult illiteracy (%), 2001 65 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 69 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 89 Environment Component Index Television sets (per 1,000 inhabitants), 2001 68 71 Households online (as % of households with computers), 2002 92 Market Environment 50 Quality of math and science education, 2003 62 Political and Regulatory Environment 71 Affordability of local fixed line calls (as % of per capita GDP), 2001 51 Infrastructure Environment 80 Affordability of Internet telephone access (as % of per capita GDP), 2001 42 153 State of cluster development, 2003 33 Affordability of Internet service provider fees (as % of per capita GDP), 2001 72 Venture capital availability, 2003 49 Ease of obtaining telephone lines, 2003 81 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 61 Subsidies for firm-level R&D, 2003 28 Extent of staff training, 2003 47 Quality of scientific research institutions, 2003 62 Country Quality of business schools, 2003 71 2 Availability of scientists and engineers, 2003 85 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 33 artP Brain drain, 2003 45 Government prioritization of ICT, 2003 83 Utility patents granted (per 1,000,000 inhabitants), 2002 69 Government online presence, 2003 73 ICT manufactured exports (per capita), 2001 52 Government procurement of ICT, 2003 27 ICT service exports (per capita), 2001 100 Overall administrative burden, 2003 15 Usage Component Index 81 Quality of the legal system, 2003 67 Individual Usage 84 Laws relating to ICT, 2003 48 Business Usage 89 Competition in the ISP sector, 2003 69 Government Usage 60 Foreign ownership restrictions, 2003 95 Personal computers (per 1,000 inhabitants), 2001 82 Efficiency of the tax system, 2003 36 ISDN subscribers (per 1,000 inhabitants), 2001 83 Cable television subscribers (per 1,000 inhabitants), 2001 90 Freedom of the press, 2003 89 Internet users (per 1,000 inhabitants), 2001 68 Overall infrastructure quality, 2003 51 Computers installed in businesses (per 1,000 inhabitants), 2002 71 Waiting time for telephone lines (years), 2000 84 Firm-level technology absorption, 2003 96 Telephone mainlines (per 1,000 inhabitants), 2001 81 Prevalence of foreign technology licensing, 2003 81 Public pay telephones (per 1,000 inhabitants), 2001 64 Government success in ICT promotion, 2003 69 Internet servers (per 1,000,000 inhabitants), 2001 78 Government online services, 2003 53 Ireland.ie Key Indicators Networked Readiness Index Rank Population, 2002 3,931,000 2003­2004 (102 countries) 22 Main telephone lines in operation, 2002 1,975,000 2002­2003 (82 countries) 21 growth (%) 1999­2002 14% 2001­2002 (75 countries) 19 Cellular mobile telephone subscribers, 2002 2,969,000 growth (%) 1999­2002 77% Readiness Component Index 18 20 Personal computers, 2001 1,500,000 Individual Readiness growth (%) 1999­2001 27% Business Readiness 20 Internet users (estimated), 2002 1,065,000 Government Readiness 11 growth (%) 1999­2002 160% Public expenditure on education (per capita), 2000 11 Adult illiteracy (%), 2001 30 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 30 Radios (per 1,000 inhabitants), 2001 or most recent available 29 RANK/102 37 Environment Component Index Television sets (per 1,000 inhabitants), 2001 22 Households online (as % of households with computers), 2002 21 Market Environment 4 Quality of math and science education, 2003 20 Political and Regulatory Environment 24 Affordability of local fixed line calls (as % of per capita GDP), 2001 16 154 Infrastructure Environment 32 Affordability of Internet telephone access (as % of per capita GDP), 2001 61 State of cluster development, 2003 8 7 Affordability of Internet service provider fees (as % of per capita GDP), 2001 43 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 9 Cost of business telephone monthly subscription (as % of per capita GDP),2002 10 Subsidies for firm-level R&D, 2003 11 23 Country Extent of staff training, 2003 Quality of scientific research institutions, 2003 14 2 Quality of business schools, 2003 16 artP Availability of scientists and engineers, 2003 20 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 23 Brain drain, 2003 20 Government prioritization of ICT, 2003 31 Utility patents granted (per 1,000,000 inhabitants), 2002 23 Government online presence, 2003 10 ICT manufactured exports (per capita), 2001 2 Government procurement of ICT, 2003 18 ICT service exports (per capita), 2001 3 Overall administrative burden, 2003 18 Usage Component Index 18 Quality of the legal system, 2003 26 Individual Usage 16 Laws relating to ICT, 2003 22 Business Usage 17 Competition in the ISP sector, 2003 97 Government Usage 19 Foreign ownership restrictions, 2003 2 Personal computers (per 1,000 inhabitants), 2001 14 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 9 20 Cable television subscribers (per 1,000 inhabitants), 2001 19 Freedom of the press, 2003 48 Internet users (per 1,000 inhabitants), 2001 29 Overall infrastructure quality, 2003 64 Computers installed in businesses (per 1,000 inhabitants), 2002 16 Waiting time for telephone lines (years), 2000 1 Firm-level technology absorption, 2003 29 Telephone mainlines (per 1,000 inhabitants), 2001 20 Prevalence of foreign technology licensing, 2003 54 Public pay telephones (per 1,000 inhabitants), 2001 52 Government success in ICT promotion, 2003 20 Internet servers (per 1,000,000 inhabitants), 2001 12 Government online services, 2003 18 Israel.il Key Indicators Networked Readiness Index Rank 16 Population, 2002 6,635,600 2003­2004 (102 countries) Main telephone lines in operation, 2002 3,100,000 2002­2003 (82 countries) 12 growth (%) 1999­2002 8% 2001­2002 (75 countries) 22 Cellular mobile telephone subscribers, 2002 6,334,000 growth (%) 1999­2002 120% Readiness Component Index 23 Individual Readiness 26 Personal computers, 2001 1,600,000 growth (%) 1999­2001 18% Business Readiness 21 Internet users (estimated), 2002 2,000,000 Government Readiness 21 growth (%) 1999­2002 150% Public expenditure on education (per capita), 2000 15 Adult illiteracy (%), 2001 44 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 22 Radios (per 1,000 inhabitants), 2001 or most recent available 40 RANK/102 43 Environment Component Index Television sets (per 1,000 inhabitants), 2001 13 Households online (as % of households with computers), 2002 25 Market Environment 5 Quality of math and science education, 2003 21 Political and Regulatory Environment 15 Affordability of local fixed line calls (as % of per capita GDP), 2001 2 Infrastructure Environment 22 Affordability of Internet telephone access (as % of per capita GDP), 2001 4 155 State of cluster development, 2003 26 Affordability of Internet service provider fees (as % of per capita GDP), 2001 19 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 5 4 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 11 Subsidies for firm-level R&D, 2003 4 Extent of staff training, 2003 24 Quality of scientific research institutions, 2003 2 Country Quality of business schools, 2003 10 2 Availability of scientists and engineers, 2003 1 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 32 artP Brain drain, 2003 18 Government prioritization of ICT, 2003 58 Utility patents granted (per 1,000,000 inhabitants), 2002 6 Government online presence, 2003 35 ICT manufactured exports (per capita), 2001 12 Government procurement of ICT, 2003 7 ICT service exports (per capita), 2001 9 Overall administrative burden, 2003 31 Usage Component Index 16 Quality of the legal system, 2003 2 Individual Usage 23 Laws relating to ICT, 2003 21 Business Usage 7 Competition in the ISP sector, 2003 7 Government Usage 9 Foreign ownership restrictions, 2003 23 Personal computers (per 1,000 inhabitants), 2001 23 Efficiency of the tax system, 2003 77 ISDN subscribers (per 1,000 inhabitants), 2001 24 Cable television subscribers (per 1,000 inhabitants), 2001 14 Freedom of the press, 2003 22 Internet users (per 1,000 inhabitants), 2001 24 Overall infrastructure quality, 2003 25 Computers installed in businesses (per 1,000 inhabitants), 2002 10 Waiting time for telephone lines (years), 2000 25 Firm-level technology absorption, 2003 4 Telephone mainlines (per 1,000 inhabitants), 2001 22 Prevalence of foreign technology licensing, 2003 20 Public pay telephones (per 1,000 inhabitants), 2001 18 Government success in ICT promotion, 2003 21 Internet servers (per 1,000,000 inhabitants), 2001 21 Government online services, 2003 8 Italy.it Key Indicators Networked Readiness Index Rank 28 Population, 2002 56,464,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 27,451,950 2002­2003 (82 countries) 26 growth (%) 1999­2002 4% 2001­2002 (75 countries) 25 Cellular mobile telephone subscribers, 2002 52,316,000 growth (%) 1999­2002 73% Readiness Component Index 26 Personal computers, 2002 13,025,000 Individual Readiness 23 growth (%) 1999­2002 45% Business Readiness 29 Internet users (estimated), 2002 17,000,000 Government Readiness 24 growth (%) 1999­2002 107% Public expenditure on education (per capita), 2000 22 Adult illiteracy (%), 2001 26 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 25 Radios (per 1,000 inhabitants), 2001 or most recent available 19 RANK/102 Environment Component Index 28 Television sets (per 1,000 inhabitants), 2001 29 Households online (as % of households with computers), 2002 19 Market Environment 24 Quality of math and science education, 2003 40 Political and Regulatory Environment 42 Affordability of local fixed line calls (as % of per capita GDP), 2001 23 156 Infrastructure Environment 26 Affordability of Internet telephone access (as % of per capita GDP), 2001 77 State of cluster development, 2003 2 Affordability of Internet service provider fees (as % of per capita GDP), 2001 22 Profiles Venture capital availability, 2003 29 Ease of obtaining telephone lines, 2003 47 Cost of business telephone monthly subscription (as % of per capita GDP),2002 23 Subsidies for firm-level R&D, 2003 33 Country Extent of staff training, 2003 33 Quality of scientific research institutions, 2003 44 2 Quality of business schools, 2003 27 artP Availability of scientists and engineers, 2003 29 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 40 Brain drain, 2003 50 Government prioritization of ICT, 2003 65 Utility patents granted (per 1,000,000 inhabitants), 2002 25 Government online presence, 2003 13 ICT manufactured exports (per capita), 2001 25 Government procurement of ICT, 2003 40 ICT service exports (per capita), 2001 21 Overall administrative burden, 2003 73 Usage Component Index 29 Quality of the legal system, 2003 43 Individual Usage 29 Laws relating to ICT, 2003 34 Business Usage 28 Competition in the ISP sector, 2003 20 Government Usage 34 Foreign ownership restrictions, 2003 72 Personal computers (per 1,000 inhabitants), 2001 26 Efficiency of the tax system, 2003 84 ISDN subscribers (per 1,000 inhabitants), 2001 13 Cable television subscribers (per 1,000 inhabitants), 2001 83 Freedom of the press, 2003 34 Internet users (per 1,000 inhabitants), 2001 24 Overall infrastructure quality, 2003 40 Computers installed in businesses (per 1,000 inhabitants), 2002 25 Waiting time for telephone lines (years), 2000 1 Firm-level technology absorption, 2003 61 Telephone mainlines (per 1,000 inhabitants), 2001 23 Prevalence of foreign technology licensing, 2003 15 Public pay telephones (per 1,000 inhabitants), 2001 17 Government success in ICT promotion, 2003 58 Internet servers (per 1,000,000 inhabitants), 2001 29 Government online services, 2003 27 Jamaica.jm Key Indicators Networked Readiness Index Rank Population, 2002 2,618,000 2003­2004 (102 countries) 53 Main telephone lines in operation, 2002 450,000 2002­2003 (82 countries) 60 growth (%) 1999­2002 -8% 2001­2002 (75 countries) 56 Cellular mobile telephone subscribers, 2002 1,400,000 growth (%) 1999­2002 870% Readiness Component Index 57 Individual Readiness Personal computers, 2001 130,000 61 growth (%) 1999­2001 18% Business Readiness 57 Internet users (estimated), 2001 100,000 Government Readiness 59 growth (%) 1999­2001 67% Public expenditure on education (per capita), 2000 44 Adult illiteracy (%), 2001 67 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 63 Radios (per 1,000 inhabitants), 2001 or most recent available 22 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 65 56 Households online (as % of households with computers), 2002 50 Market Environment 70 Quality of math and science education, 2003 72 Political and Regulatory Environment 50 Affordability of local fixed line calls (as % of per capita GDP), 2001 60 Infrastructure Environment 58 Affordability of Internet telephone access (as % of per capita GDP), 2001 54 157 State of cluster development, 2003 62 Affordability of Internet service provider fees (as % of per capita GDP), 2001 73 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 63 74 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 72 Subsidies for firm-level R&D, 2003 70 Extent of staff training, 2003 48 Quality of scientific research institutions, 2003 Country 37 Quality of business schools, 2003 38 2 Availability of scientists and engineers, 2003 76 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 57 artP Brain drain, 2003 79 Government prioritization of ICT, 2003 27 Utility patents granted (per 1,000,000 inhabitants), 2002 43 Government online presence, 2003 79 ICT manufactured exports (per capita), 2001 89 Government procurement of ICT, 2003 35 ICT service exports (per capita), 2001 39 Overall administrative burden, 2003 92 Usage Component Index 54 Quality of the legal system, 2003 48 Individual Usage 47 Laws relating to ICT, 2003 59 Business Usage 75 Competition in the ISP sector, 2003 32 Government Usage 38 Foreign ownership restrictions, 2003 16 Personal computers (per 1,000 inhabitants), 2001 51 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 46 64 Cable television subscribers (per 1,000 inhabitants), 2001 39 Freedom of the press, 2003 53 Internet users (per 1,000 inhabitants), 2001 55 Overall infrastructure quality, 2003 56 Computers installed in businesses (per 1,000 inhabitants), 2002 57 Waiting time for telephone lines (years), 2000 93 Firm-level technology absorption, 2003 73 Telephone mainlines (per 1,000 inhabitants), 2001 52 Prevalence of foreign technology licensing, 2003 73 Public pay telephones (per 1,000 inhabitants), 2001 4 Government success in ICT promotion, 2003 60 Internet servers (per 1,000,000 inhabitants), 2001 56 Government online services, 2003 29 Japan.jp Key Indicators Networked Readiness Index Rank 12 Population, 2002 127,530,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 71,149,000 2002­2003 (82 countries) 20 growth (%) 1999­2002 1% 2001­2002 (75 countries) 21 Cellular mobile telephone subscribers, 2002 81,118,000 growth (%) 1999­2002 43% Readiness Component Index 11 Personal computers, 2002 48,700,000 Individual Readiness 14 growth (%) 1999­2002 34% Business Readiness 6 Internet users (estimated), 2002 57,200,000 Government Readiness 17 growth (%) 1999­2002 111% Public expenditure on education (per capita), 2000 18 Adult illiteracy (%), 2001 17 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 29 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 16 Environment Component Index 19 Television sets (per 1,000 inhabitants), 2001 7 Households online (as % of households with computers), 2002 8 Market Environment 7 Quality of math and science education, 2003 24 Political and Regulatory Environment 37 Affordability of local fixed line calls (as % of per capita GDP), 2001 3 158 Infrastructure Environment 21 Affordability of Internet telephone access (as % of per capita GDP), 2001 78 State of cluster development, 2003 5 Affordability of Internet service provider fees (as % of per capita GDP), 2001 11 Profiles Venture capital availability, 2003 45 Ease of obtaining telephone lines, 2003 6 Cost of business telephone monthly subscription (as % of per capita GDP),2002 20 Subsidies for firm-level R&D, 2003 10 Country Extent of staff training, 2003 6 Quality of scientific research institutions, 2003 11 2 Quality of business schools, 2003 53 artP Availability of scientists and engineers, 2003 9 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 1 Brain drain, 2003 8 Government prioritization of ICT, 2003 9 Utility patents granted (per 1,000,000 inhabitants), 2002 2 Government online presence, 2003 44 ICT manufactured exports (per capita), 2001 19 Government procurement of ICT, 2003 15 ICT service exports (per capita), 2001 24 Overall administrative burden, 2003 50 Usage Component Index 11 Quality of the legal system, 2003 36 Individual Usage 12 Laws relating to ICT, 2003 27 Business Usage 10 Competition in the ISP sector, 2003 14 Government Usage 14 Foreign ownership restrictions, 2003 85 Personal computers (per 1,000 inhabitants), 2001 18 Efficiency of the tax system, 2003 81 ISDN subscribers (per 1,000 inhabitants), 2001 6 Cable television subscribers (per 1,000 inhabitants), 2001 20 Freedom of the press, 2003 31 Internet users (per 1,000 inhabitants), 2001 8 Overall infrastructure quality, 2003 18 Computers installed in businesses (per 1,000 inhabitants), 2002 14 Waiting time for telephone lines (years), 2000 1 Firm-level technology absorption, 2003 2 Telephone mainlines (per 1,000 inhabitants), 2001 10 Prevalence of foreign technology licensing, 2003 27 Public pay telephones (per 1,000 inhabitants), 2001 54 Government success in ICT promotion, 2003 30 Internet servers (per 1,000,000 inhabitants), 2001 22 Government online services, 2003 8 Jordan.jo Key Indicators Networked Readiness Index Rank 46 Population, 2002 5,329,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 687,598 2002­2003 (82 countries) 51 growth (%) 1999­2002 22% 2001­2002 (75 countries) 49 Cellular mobile telephone subscribers, 2002 1,219,597 growth (%) 1999­2002 930% Readiness Component Index 51 Individual Readiness Personal computers, 2002 200,000 54 growth (%) 1999­2002 122% Business Readiness 42 Internet users (estimated), 2002 307,000 Government Readiness 67 growth (%) 1999­2002 156% Public expenditure on education (per capita), 2000 58 Adult illiteracy (%), 2001 60 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 48 Radios (per 1,000 inhabitants), 2001 or most recent available 58 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 81 42 Households online (as % of households with computers), 2002 95 Market Environment 47 Quality of math and science education, 2003 31 Political and Regulatory Environment 26 Affordability of local fixed line calls (as % of per capita GDP), 2001 49 Infrastructure Environment 48 Affordability of Internet telephone access (as % of per capita GDP), 2001 41 159 State of cluster development, 2003 52 Affordability of Internet service provider fees (as % of per capita GDP), 2001 66 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 29 62 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 75 Subsidies for firm-level R&D, 2003 54 Extent of staff training, 2003 62 Quality of scientific research institutions, 2003 46 Country Quality of business schools, 2003 60 2 Availability of scientists and engineers, 2003 12 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 28 artP Brain drain, 2003 63 Government prioritization of ICT, 2003 11 Utility patents granted (per 1,000,000 inhabitants), 2002 57 Government online presence, 2003 94 ICT manufactured exports (per capita), 2001 56 Government procurement of ICT, 2003 45 ICT service exports (per capita), 2001 41 Overall administrative burden, 2003 9 Usage Component Index 49 Quality of the legal system, 2003 23 Individual Usage 70 Laws relating to ICT, 2003 38 Business Usage 52 Competition in the ISP sector, 2003 19 Government Usage 33 Foreign ownership restrictions, 2003 47 Personal computers (per 1,000 inhabitants), 2001 62 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 61 20 Cable television subscribers (per 1,000 inhabitants), 2001 90 Freedom of the press, 2003 85 Internet users (per 1,000 inhabitants), 2001 54 Overall infrastructure quality, 2003 23 Computers installed in businesses (per 1,000 inhabitants), 2002 77 Waiting time for telephone lines (years), 2000 40 Firm-level technology absorption, 2003 48 Telephone mainlines (per 1,000 inhabitants), 2001 59 Prevalence of foreign technology licensing, 2003 13 Public pay telephones (per 1,000 inhabitants), 2001 70 Government success in ICT promotion, 2003 8 Internet servers (per 1,000,000 inhabitants), 2001 76 Government online services, 2003 59 Kenya.ke Key Indicators Networked Readiness Index Rank Population, 2002 31,930,000 2003­2004 (102 countries) 84 Main telephone lines in operation, 2002 328,104 growth (%) 1999­2002 8% Cellular mobile telephone subscribers, 2002 1,325,222 growth (%) 1999­2002 5,478% Readiness Component Index 89 Personal computers, 2001 175,000 Individual Readiness 84 growth (%) 1999­2001 40% Business Readiness 89 Internet users (estimated), 2001 500,000 growth (%) 1999­2001 1,329% Government Readiness 86 Public expenditure on education (per capita), 2000 82 Adult illiteracy (%), 2001 74 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 90 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 77 Environment Component Index Television sets (per 1,000 inhabitants), 2001 92 91 Households online (as % of households with computers), 2002 73 Market Environment 63 Quality of math and science education, 2003 64 Political and Regulatory Environment 75 Affordability of local fixed line calls (as % of per capita GDP), 2001 90 160 Infrastructure Environment 98 Affordability of Internet telephone access (as % of per capita GDP), 2001 86 State of cluster development, 2003 42 Affordability of Internet service provider fees (as % of per capita GDP), 2001 96 Profiles Venture capital availability, 2003 77 Ease of obtaining telephone lines, 2003 93 Cost of business telephone monthly subscription (as % of per capita GDP),2002 95 Subsidies for firm-level R&D, 2003 69 Country Extent of staff training, 2003 63 Quality of scientific research institutions, 2003 27 2 Quality of business schools, 2003 73 artP Availability of scientists and engineers, 2003 54 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 60 Brain drain, 2003 82 Government prioritization of ICT, 2003 81 Utility patents granted (per 1,000,000 inhabitants), 2002 70 Government online presence, 2003 77 ICT manufactured exports (per capita), 2001 84 Government procurement of ICT, 2003 67 ICT service exports (per capita), 2001 82 Overall administrative burden, 2003 63 Usage Component Index 76 Quality of the legal system, 2003 84 Individual Usage 88 Laws relating to ICT, 2003 67 Business Usage 66 Competition in the ISP sector, 2003 73 Government Usage 65 Foreign ownership restrictions, 2003 48 Personal computers (per 1,000 inhabitants), 2001 89 Efficiency of the tax system, 2003 49 ISDN subscribers (per 1,000 inhabitants), 2001 95 Cable television subscribers (per 1,000 inhabitants), 2001 86 Freedom of the press, 2003 79 Internet users (per 1,000 inhabitants), 2001 71 Overall infrastructure quality, 2003 88 Computers installed in businesses (per 1,000 inhabitants), 2002 93 Waiting time for telephone lines (years), 2000 98 Firm-level technology absorption, 2003 77 Telephone mainlines (per 1,000 inhabitants), 2001 88 Prevalence of foreign technology licensing, 2003 28 Public pay telephones (per 1,000 inhabitants), 2001 88 Government success in ICT promotion, 2003 75 Internet servers (per 1,000,000 inhabitants), 2001 99 Government online services, 2003 59 Korea.kr Key Indicators Networked Readiness Index Rank 20 Population, 2002 47,600,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 23,257,000 2002­2003 (82 countries) 14 growth (%) 1999­2002 13% 2001­2002 (75 countries) 20 Cellular mobile telephone subscribers, 2002 32,342,000 growth (%) 1999­2002 38% Readiness Component Index 19 Individual Readiness 21 Personal computers, 2002 26,458,000 growth (%) 1999­2002 129% Business Readiness 23 Internet users (estimated), 2002 26,270,000 Government Readiness 9 growth (%) 1999­2002 142% Public expenditure on education (per capita), 2000 29 Adult illiteracy (%), 2001 33 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 2 Radios (per 1,000 inhabitants), 2001 or most recent available 11 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 40 20 Households online (as % of households with computers), 2002 24 Market Environment 19 Quality of math and science education, 2003 35 Political and Regulatory Environment 25 Affordability of local fixed line calls (as % of per capita GDP), 2001 8 Infrastructure Environment 9 Affordability of Internet telephone access (as % of per capita GDP), 2001 9 161 State of cluster development, 2003 8 Affordability of Internet service provider fees (as % of per capita GDP), 2001 24 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 23 16 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 1 Subsidies for firm-level R&D, 2003 15 Extent of staff training, 2003 21 Quality of scientific research institutions, 2003 26 Country Quality of business schools, 2003 45 2 Availability of scientists and engineers, 2003 40 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 19 artP Brain drain, 2003 32 Government prioritization of ICT, 2003 8 Utility patents granted (per 1,000,000 inhabitants), 2002 14 Government online presence, 2003 23 ICT manufactured exports (per capita), 2001 18 Government procurement of ICT, 2003 12 ICT service exports (per capita), 2001 32 Overall administrative burden, 2003 23 Usage Component Index 17 Quality of the legal system, 2003 49 Individual Usage 15 Laws relating to ICT, 2003 12 Business Usage 18 Competition in the ISP sector, 2003 1 Government Usage 10 Foreign ownership restrictions, 2003 68 Personal computers (per 1,000 inhabitants), 2001 22 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 37 37 Cable television subscribers (per 1,000 inhabitants), 2001 15 Freedom of the press, 2003 58 Internet users (per 1,000 inhabitants), 2001 4 Overall infrastructure quality, 2003 21 Computers installed in businesses (per 1,000 inhabitants), 2002 23 Waiting time for telephone lines (years), 2000 1 Firm-level technology absorption, 2003 10 Telephone mainlines (per 1,000 inhabitants), 2001 19 Prevalence of foreign technology licensing, 2003 19 Public pay telephones (per 1,000 inhabitants), 2001 3 Government success in ICT promotion, 2003 4 Internet servers (per 1,000,000 inhabitants), 2001 45 Government online services, 2003 26 Latvia.lv Key Indicators Networked Readiness Index Rank 35 Population, 2002 2,329,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 701,211 2002­2003 (82 countries) 38 growth (%) 1999­2002 -4% 2001­2002 (75 countries) 39 Cellular mobile telephone subscribers, 2002 917,196 growth (%) 1999­2002 234% Readiness Component Index 36 Personal computers, 2002 400,000 Individual Readiness 25 growth (%) 1999­2002 100% Business Readiness 41 Internet users (estimated), 2002 310,000 Government Readiness 48 growth (%) 1999­2002 195% Public expenditure on education (per capita), 2000 42 Adult illiteracy (%), 2001 9 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 10 Radios (per 1,000 inhabitants), 2001 or most recent available 28 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 5 38 Households online (as % of households with computers), 2002 90 Market Environment 32 Quality of math and science education, 2003 32 Political and Regulatory Environment 33 Affordability of local fixed line calls (as % of per capita GDP), 2001 59 162 Infrastructure Environment 46 Affordability of Internet telephone access (as % of per capita GDP), 2001 40 State of cluster development, 2003 39 Affordability of Internet service provider fees (as % of per capita GDP), 2001 55 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 61 19 Cost of business telephone monthly subscription (as % of per capita GDP),2002 51 Subsidies for firm-level R&D, 2003 27 37 Country Extent of staff training, 2003 Quality of scientific research institutions, 2003 47 2 Quality of business schools, 2003 33 artP Availability of scientists and engineers, 2003 61 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 41 Brain drain, 2003 36 Government prioritization of ICT, 2003 52 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 59 ICT manufactured exports (per capita), 2001 53 Government procurement of ICT, 2003 23 ICT service exports (per capita), 2001 42 Overall administrative burden, 2003 13 Usage Component Index 41 Quality of the legal system, 2003 47 Individual Usage 38 Laws relating to ICT, 2003 28 Business Usage 42 Competition in the ISP sector, 2003 40 Government Usage 53 Foreign ownership restrictions, 2003 43 Personal computers (per 1,000 inhabitants), 2001 31 Efficiency of the tax system, 2003 33 24 ISDN subscribers (per 1,000 inhabitants), 2001 Cable television subscribers (per 1,000 inhabitants), 2001 28 Freedom of the press, 2003 59 Internet users (per 1,000 inhabitants), 2001 45 Overall infrastructure quality, 2003 37 Computers installed in businesses (per 1,000 inhabitants), 2002 51 Waiting time for telephone lines (years), 2000 65 Firm-level technology absorption, 2003 38 Telephone mainlines (per 1,000 inhabitants), 2001 37 Prevalence of foreign technology licensing, 2003 18 Public pay telephones (per 1,000 inhabitants), 2001 67 Government success in ICT promotion, 2003 43 Internet servers (per 1,000,000 inhabitants), 2001 30 Government online services, 2003 59 Lithuania.lt Key Indicators Networked Readiness Index Rank 42 Population, 2002 3,460,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 935,899 2002­2003 (82 countries) 46 growth (%) 1999­2002 -19% 2001­2002 (75 countries) 42 Cellular mobile telephone subscribers, 2002 1,631,573 growth (%) 1999­2002 391% Readiness Component Index 32 Individual Readiness Personal computers, 2002 380,000 32 growth (%) 1999­2002 73% Business Readiness 32 Internet users (estimated), 2002 500,000 Government Readiness 38 growth (%) 1999­2002 385% Public expenditure on education (per capita), 2000 40 Adult illiteracy (%), 2001 14 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 23 Radios (per 1,000 inhabitants), 2001 or most recent available 41 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 33 45 Households online (as % of households with computers), 2002 32 Market Environment 40 Quality of math and science education, 2003 23 Political and Regulatory Environment 58 Affordability of local fixed line calls (as % of per capita GDP), 2001 62 Infrastructure Environment 45 Affordability of Internet telephone access (as % of per capita GDP), 2001 24 163 State of cluster development, 2003 46 Affordability of Internet service provider fees (as % of per capita GDP), 2001 65 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 38 22 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 46 Subsidies for firm-level R&D, 2003 46 Extent of staff training, 2003 67 Quality of scientific research institutions, 2003 38 Country Quality of business schools, 2003 49 2 Availability of scientists and engineers, 2003 28 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 27 artP Brain drain, 2003 69 Government prioritization of ICT, 2003 54 Utility patents granted (per 1,000,000 inhabitants), 2002 49 Government online presence, 2003 33 ICT manufactured exports (per capita), 2001 45 Government procurement of ICT, 2003 47 ICT service exports (per capita), 2001 49 Overall administrative burden, 2003 52 Usage Component Index 53 Quality of the legal system, 2003 65 Individual Usage 45 Laws relating to ICT, 2003 45 Business Usage 50 Competition in the ISP sector, 2003 58 Government Usage 63 Foreign ownership restrictions, 2003 63 Personal computers (per 1,000 inhabitants), 2001 44 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 44 82 Cable television subscribers (per 1,000 inhabitants), 2001 34 Freedom of the press, 2003 37 Internet users (per 1,000 inhabitants), 2001 47 Overall infrastructure quality, 2003 39 Computers installed in businesses (per 1,000 inhabitants), 2002 54 Waiting time for telephone lines (years), 2000 57 Firm-level technology absorption, 2003 25 Telephone mainlines (per 1,000 inhabitants), 2001 36 Prevalence of foreign technology licensing, 2003 66 Public pay telephones (per 1,000 inhabitants), 2001 61 Government success in ICT promotion, 2003 52 Internet servers (per 1,000,000 inhabitants), 2001 37 Government online services, 2003 63 Luxembourg.lu Key Indicators Networked Readiness Index Rank 14 Population, 2002 449,000 2003­2004 (102 countries) Main telephone lines in operation, 2001 346,763 2002­2003 (82 countries) 27 growth (%) 1999­2001 12% Cellular mobile telephone subscribers, 2002 455,000 growth (%) 1999­2002 118% Readiness Component Index 25 Personal computers, 2001 230,000 Individual Readiness 28 growth (%) 1999­2001 35% Business Readiness 25 Internet users (estimated), 2002 165,000 Government Readiness 28 growth (%) 1999­2002 120% Public expenditure on education (per capita), 2000 5 Adult illiteracy (%), 2001 1 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 76 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 56 Environment Component Index Television sets (per 1,000 inhabitants), 2001 18 9 Households online (as % of households with computers), 2002 20 Market Environment 8 Quality of math and science education, 2003 41 Political and Regulatory Environment 10 Affordability of local fixed line calls (as % of per capita GDP), 2001 4 164 Infrastructure Environment 18 Affordability of Internet telephone access (as % of per capita GDP), 2001 63 State of cluster development, 2003 36 Affordability of Internet service provider fees (as % of per capita GDP), 2001 2 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 19 5 Cost of business telephone monthly subscription (as % of per capita GDP),2002 3 Subsidies for firm-level R&D, 2003 3 Country Extent of staff training, 2003 13 Quality of scientific research institutions, 2003 63 2 Quality of business schools, 2003 93 artP Availability of scientists and engineers, 2003 69 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 15 Brain drain, 2003 14 Government prioritization of ICT, 2003 23 Utility patents granted (per 1,000,000 inhabitants), 2002 12 Government online presence, 2003 58 ICT manufactured exports (per capita), 2001 3 Government procurement of ICT, 2003 8 ICT service exports (per capita), 2001 1 Overall administrative burden, 2003 17 Usage Component Index 8 Quality of the legal system, 2003 18 Individual Usage 1 Laws relating to ICT, 2003 20 Business Usage 19 Competition in the ISP sector, 2003 30 Government Usage 43 Foreign ownership restrictions, 2003 4 Personal computers (per 1,000 inhabitants), 2001 1 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 2 7 Cable television subscribers (per 1,000 inhabitants), 2001 4 Freedom of the press, 2003 18 Internet users (per 1,000 inhabitants), 2001 7 Overall infrastructure quality, 2003 15 Computers installed in businesses (per 1,000 inhabitants), 2002 19 Waiting time for telephone lines (years), 2000 1 Firm-level technology absorption, 2003 20 Telephone mainlines (per 1,000 inhabitants), 2001 26 Prevalence of foreign technology licensing, 2003 46 Public pay telephones (per 1,000 inhabitants), 2001 80 Government success in ICT promotion, 2003 23 Internet servers (per 1,000,000 inhabitants), 2001 4 Government online services, 2003 54 Macedonia, FYR.mk Key Indicators Networked Readiness Index Rank Population, 2002 2,064,000 2003­2004 (102 countries) 75 Main telephone lines in operation, 2001 538,507 growth (%) 1999­2001 14% Cellular mobile telephone subscribers, 2001 223,275 growth (%) 1999­2001 358% Readiness Component Index 75 Personal computers, 2002 n/a Individual Readiness 50 growth (%) 1999­2002 n/a Business Readiness 71 Internet users (estimated), 2001 70,000 Government Readiness 91 growth (%) 1999­2001 133% Public expenditure on education (per capita), 2000 62 Adult illiteracy (%), 2001 45 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 53 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 80 Environment Component Index Television sets (per 1,000 inhabitants), 2001 54 59 Households online (as % of households with computers), 2002 57 Market Environment 76 Quality of math and science education, 2003 39 Political and Regulatory Environment 79 Affordability of local fixed line calls (as % of per capita GDP), 2001 26 Infrastructure Environment 40 Affordability of Internet telephone access (as % of per capita GDP), 2001 5 165 State of cluster development, 2003 95 Affordability of Internet service provider fees (as % of per capita GDP), 2001 48 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 55 36 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 62 Subsidies for firm-level R&D, 2003 79 Extent of staff training, 2003 70 Quality of scientific research institutions, 2003 84 Country Quality of business schools, 2003 91 2 Availability of scientists and engineers, 2003 42 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 61 artP Brain drain, 2003 98 Government prioritization of ICT, 2003 85 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 90 ICT manufactured exports (per capita), 2001 73 Government procurement of ICT, 2003 61 ICT service exports (per capita), 2001 47 Overall administrative burden, 2003 69 Usage Component Index 87 Quality of the legal system, 2003 88 Individual Usage 59 Laws relating to ICT, 2003 84 Business Usage 90 Competition in the ISP sector, 2003 76 Government Usage 88 Foreign ownership restrictions, 2003 86 Personal computers (per 1,000 inhabitants), 2001 57 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 48 56 Cable television subscribers (per 1,000 inhabitants), 2001 Freedom of the press, 2003 57 52 Internet users (per 1,000 inhabitants), 2001 58 Overall infrastructure quality, 2003 85 Computers installed in businesses (per 1,000 inhabitants), 2002 94 Waiting time for telephone lines (years), 2000 76 Firm-level technology absorption, 2003 93 Telephone mainlines (per 1,000 inhabitants), 2001 42 Prevalence of foreign technology licensing, 2003 78 Public pay telephones (per 1,000 inhabitants), 2001 2 Government success in ICT promotion, 2003 89 Internet servers (per 1,000,000 inhabitants), 2001 62 Government online services, 2003 68 Madagascar.mg Key Indicators Networked Readiness Index Rank 92 Population, 2002 15,910,600 2003­2004 (102 countries) Main telephone lines in operation, 2002 59,441 growth (%) 1999­2002 18% Cellular mobile telephone subscribers, 2002 163,010 growth (%) 1999­2002 356% Readiness Component Index 94 Personal computers, 2001 40,000 Individual Readiness 96 growth (%) 1999­2001 33% Business Readiness 97 Internet users (estimated), 2002 55,000 Government Readiness 88 growth (%) 1999­2002 120% Public expenditure on education (per capita), 2000 90 Adult illiteracy (%), 2001 87 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 93 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 78 Environment Component Index Television sets (per 1,000 inhabitants), 2001 87 93 Households online (as % of households with computers), 2002 77 Market Environment 84 Quality of math and science education, 2003 63 Political and Regulatory Environment 89 Affordability of local fixed line calls (as % of per capita GDP), 2001 99 166 Infrastructure Environment 81 Affordability of Internet telephone access (as % of per capita GDP), 2001 92 State of cluster development, 2003 92 Affordability of Internet service provider fees (as % of per capita GDP), 2001 98 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 82 89 Cost of business telephone monthly subscription (as % of per capita GDP),2002 Subsidies for firm-level R&D, 2003 99 87 Country Extent of staff training, 2003 86 Quality of scientific research institutions, 2003 86 2 Quality of business schools, 2003 74 artP Availability of scientists and engineers, 2003 60 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 101 Brain drain, 2003 77 Government prioritization of ICT, 2003 44 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 95 ICT manufactured exports (per capita), 2001 69 Government procurement of ICT, 2003 75 ICT service exports (per capita), 2001 99 Overall administrative burden, 2003 101 Usage Component Index 90 Quality of the legal system, 2003 86 Individual Usage 81 Laws relating to ICT, 2003 94 Business Usage 95 Competition in the ISP sector, 2003 79 Government Usage 82 Foreign ownership restrictions, 2003 74 Personal computers (per 1,000 inhabitants), 2001 96 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 85 71 Cable television subscribers (per 1,000 inhabitants), 2001 62 Freedom of the press, 2003 68 Internet users (per 1,000 inhabitants), 2001 94 Overall infrastructure quality, 2003 96 Computers installed in businesses (per 1,000 inhabitants), 2002 95 Waiting time for telephone lines (years), 2000 28 Firm-level technology absorption, 2003 56 Telephone mainlines (per 1,000 inhabitants), 2001 95 Prevalence of foreign technology licensing, 2003 98 Public pay telephones (per 1,000 inhabitants), 2001 98 Government success in ICT promotion, 2003 50 Internet servers (per 1,000,000 inhabitants), 2001 89 Government online services, 2003 93 Malawi.mw Key Indicators Networked Readiness Index Rank 88 Population, 2002 10,436,800 2003­2004 (102 countries) Main telephone lines in operation, 2002 73,100 growth (%) 1999­2002 77% Cellular mobile telephone subscribers, 2002 86,047 growth (%) 1999­2002 282% Readiness Component Index 88 Personal computers, 2001 13,000 Individual Readiness 93 growth (%) 1999­2001 30% Business Readiness 78 Internet users (estimated), 2002 27,000 Government Readiness 84 growth (%) 1999­2002 170% Public expenditure on education (per capita), 2000 96 Adult illiteracy (%), 2001 90 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 102 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 43 Environment Component Index Television sets (per 1,000 inhabitants), 2001 100 88 Households online (as % of households with computers), 2002 84 Market Environment 82 Quality of math and science education, 2003 71 Political and Regulatory Environment 49 Affordability of local fixed line calls (as % of per capita GDP), 2001 91 Infrastructure Environment 100 Affordability of Internet telephone access (as % of per capita GDP), 2001 89 167 State of cluster development, 2003 75 Affordability of Internet service provider fees (as % of per capita GDP), 2001 101 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 84 99 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 85 Subsidies for firm-level R&D, 2003 93 Extent of staff training, 2003 69 Quality of scientific research institutions, 2003 68 Country Quality of business schools, 2003 68 2 Availability of scientists and engineers, 2003 70 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 50 artP Brain drain, 2003 72 Government prioritization of ICT, 2003 89 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 67 ICT manufactured exports (per capita), 2001 96 Government procurement of ICT, 2003 80 ICT service exports (per capita), 2001 88 Overall administrative burden, 2003 20 Usage Component Index 91 Quality of the legal system, 2003 40 Individual Usage 100 Laws relating to ICT, 2003 90 Business Usage 88 Competition in the ISP sector, 2003 55 Government Usage 87 Foreign ownership restrictions, 2003 17 Personal computers (per 1,000 inhabitants), 2001 99 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 97 32 Cable television subscribers (per 1,000 inhabitants), 2001 n/a Freedom of the press, 2003 73 Internet users (per 1,000 inhabitants), 2001 98 Overall infrastructure quality, 2003 79 Computers installed in businesses (per 1,000 inhabitants), 2002 98 Waiting time for telephone lines (years), 2000 100 Firm-level technology absorption, 2003 92 Telephone mainlines (per 1,000 inhabitants), 2001 93 Prevalence of foreign technology licensing, 2003 79 Public pay telephones (per 1,000 inhabitants), 2001 97 Government success in ICT promotion, 2003 76 Internet servers (per 1,000,000 inhabitants), 2001 96 Government online services, 2003 89 Malaysia.my Key Indicators Networked Readiness Index Rank 26 Population, 2002 24,370,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 4,670,000 2002­2003 (82 countries) 32 growth (%) 1999­2002 5% 2001­2002 (75 countries) 36 Cellular mobile telephone subscribers, 2002 9,245,000 growth (%) 1999­2002 209% Readiness Component Index 29 Personal computers, 2002 3,600,000 Individual Readiness 47 growth (%) 1999­2002 100% Business Readiness 38 Internet users (estimated), 2002 7,500,000 Government Readiness 6 growth (%) 1999­2002 168% Public expenditure on education (per capita), 2000 37 Adult illiteracy (%), 2001 64 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 50 Radios (per 1,000 inhabitants), 2001 or most recent available 48 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 60 26 Households online (as % of households with computers), 2002 26 Market Environment 26 Quality of math and science education, 2003 47 Political and Regulatory Environment 31 Affordability of local fixed line calls (as % of per capita GDP), 2001 19 168 Infrastructure Environment 27 Affordability of Internet telephone access (as % of per capita GDP), 2001 13 State of cluster development, 2003 24 Affordability of Internet service provider fees (as % of per capita GDP), 2001 29 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 44 24 Cost of business telephone monthly subscription (as % of per capita GDP),2002 37 Subsidies for firm-level R&D, 2003 9 Country Extent of staff training, 2003 18 Quality of scientific research institutions, 2003 36 2 Quality of business schools, 2003 46 artP Availability of scientists and engineers, 2003 65 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 79 Brain drain, 2003 37 Government prioritization of ICT, 2003 2 Utility patents granted (per 1,000,000 inhabitants), 2002 34 Government online presence, 2003 43 ICT manufactured exports (per capita), 2001 7 Government procurement of ICT, 2003 2 ICT service exports (per capita), 2001 30 Overall administrative burden, 2003 16 Usage Component Index 26 Quality of the legal system, 2003 41 Individual Usage 31 Laws relating to ICT, 2003 7 Business Usage 22 Competition in the ISP sector, 2003 36 Government Usage 7 Foreign ownership restrictions, 2003 67 Personal computers (per 1,000 inhabitants), 2001 34 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 48 5 Cable television subscribers (per 1,000 inhabitants), 2001 n/a Freedom of the press, 2003 98 Internet users (per 1,000 inhabitants), 2001 26 Overall infrastructure quality, 2003 12 Computers installed in businesses (per 1,000 inhabitants), 2002 33 Waiting time for telephone lines (years), 2000 52 Firm-level technology absorption, 2003 14 Telephone mainlines (per 1,000 inhabitants), 2001 53 Prevalence of foreign technology licensing, 2003 2 Public pay telephones (per 1,000 inhabitants), 2001 6 Government success in ICT promotion, 2003 2 Internet servers (per 1,000,000 inhabitants), 2001 47 Government online services, 2003 20 Mali.ml Key Indicators Networked Readiness Index Rank 96 Population, 2002 10,628,800 2003­2004 (102 countries) Main telephone lines in operation, 2002 49,730 growth (%) 1999­2002 47% Cellular mobile telephone subscribers, 2002 52,639 growth (%) 1999­2002 724% Readiness Component Index 99 Personal computers, 2001 14,000 Individual Readiness 99 growth (%) 1999­2001 27% Business Readiness 98 Internet users (estimated), 2002 32,000 Government Readiness 90 growth (%) 1999­2002 410% Public expenditure on education (per capita), 2000 94 Adult illiteracy (%), 2001 102 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 94 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 85 Environment Component Index Television sets (per 1,000 inhabitants), 2001 95 80 Households online (as % of households with computers), 2002 78 Market Environment 87 Quality of math and science education, 2003 79 Political and Regulatory Environment 70 Affordability of local fixed line calls (as % of per capita GDP), 2001 96 Infrastructure Environment 77 Affordability of Internet telephone access (as % of per capita GDP), 2001 97 169 State of cluster development, 2003 91 Affordability of Internet service provider fees (as % of per capita GDP), 2001 100 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 95 99 Profiles Subsidies for firm-level R&D, 2003 Cost of business telephone monthly subscription (as % of per capita GDP),2002 92 63 Extent of staff training, 2003 102 Quality of scientific research institutions, 2003 75 Country Quality of business schools, 2003 96 2 Availability of scientists and engineers, 2003 79 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 99 artP Brain drain, 2003 94 Government prioritization of ICT, 2003 21 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 101 ICT manufactured exports (per capita), 2001 94 Government procurement of ICT, 2003 72 ICT service exports (per capita), 2001 91 Overall administrative burden, 2003 61 Usage Component Index 98 Quality of the legal system, 2003 63 Individual Usage 99 Laws relating to ICT, 2003 96 Business Usage 102 Competition in the ISP sector, 2003 84 Government Usage 94 Foreign ownership restrictions, 2003 53 Personal computers (per 1,000 inhabitants), 2001 101 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 90 58 Cable television subscribers (per 1,000 inhabitants), 2001 94 Freedom of the press, 2003 36 Internet users (per 1,000 inhabitants), 2001 91 Overall infrastructure quality, 2003 91 Computers installed in businesses (per 1,000 inhabitants), 2002 84 Waiting time for telephone lines (years), 2000 74 Firm-level technology absorption, 2003 94 Telephone mainlines (per 1,000 inhabitants), 2001 95 Prevalence of foreign technology licensing, 2003 102 Public pay telephones (per 1,000 inhabitants), 2001 31 Government success in ICT promotion, 2003 71 Internet servers (per 1,000,000 inhabitants), 2001 92 Government online services, 2003 99 Malta.mt Key Indicators Networked Readiness Index Rank 27 Population, 2002 396,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 207,269 growth (%) 1999­2002 5% Cellular mobile telephone subscribers, 2002 276,859 growth (%) 1999­2002 637% Readiness Component Index 31 Personal computers, 2001 90,000 Individual Readiness 35 growth (%) 1999­2001 29% Business Readiness 40 Internet users (estimated), 2001 99,000 Government Readiness 23 growth (%) 1999­2001 230% Public expenditure on education (per capita), 2000 29 Adult illiteracy (%), 2001 53 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 58 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 26 Environment Component Index Television sets (per 1,000 inhabitants), 2001 17 29 Households online (as % of households with computers), 2002 36 Market Environment 41 Quality of math and science education, 2003 30 Political and Regulatory Environment 20 Affordability of local fixed line calls (as % of per capita GDP), 2001 38 170 Infrastructure Environment 29 Affordability of Internet telephone access (as % of per capita GDP), 2001 8 State of cluster development, 2003 79 Affordability of Internet service provider fees (as % of per capita GDP), 2001 33 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 32 56 Cost of business telephone monthly subscription (as % of per capita GDP),2002 30 Subsidies for firm-level R&D, 2003 38 Country Extent of staff training, 2003 38 Quality of scientific research institutions, 2003 71 2 Quality of business schools, 2003 58 artP Availability of scientists and engineers, 2003 58 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 47 Brain drain, 2003 29 Government prioritization of ICT, 2003 6 Utility patents granted (per 1,000,000 inhabitants), 2002 33 Government online presence, 2003 40 ICT manufactured exports (per capita), 2001 4 Government procurement of ICT, 2003 54 ICT service exports (per capita), 2001 19 Overall administrative burden, 2003 39 Usage Component Index 24 Quality of the legal system, 2003 21 Individual Usage 20 Laws relating to ICT, 2003 29 Business Usage 29 Competition in the ISP sector, 2003 34 Government Usage 17 Foreign ownership restrictions, 2003 37 Personal computers (per 1,000 inhabitants), 2001 30 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 40 8 Cable television subscribers (per 1,000 inhabitants), 2001 8 Freedom of the press, 2003 35 Internet users (per 1,000 inhabitants), 2001 12 Overall infrastructure quality, 2003 42 Computers installed in businesses (per 1,000 inhabitants), 2002 24 Waiting time for telephone lines (years), 2000 30 Firm-level technology absorption, 2003 45 Telephone mainlines (per 1,000 inhabitants), 2001 30 Prevalence of foreign technology licensing, 2003 45 Public pay telephones (per 1,000 inhabitants), 2001 20 Government success in ICT promotion, 2003 7 Internet servers (per 1,000,000 inhabitants), 2001 24 Government online services, 2003 27 Mauritius.mu Key Indicators Networked Readiness Index Rank 43 Population, 2002 1,210,492 2003­2004 (102 countries) Main telephone lines in operation, 2002 327,225 2002­2003 (82 countries) 56 growth (%) 1999­2002 27% 2001­2002 (75 countries) 51 Cellular mobile telephone subscribers, 2002 350,000 growth (%) 1999­2002 243% Readiness Component Index 41 Individual Readiness Personal computers, 2001 130,000 55 growth (%) 1999­2001 18% Business Readiness 49 Internet users (estimated), 2002 180,000 Government Readiness 20 growth (%) 1999­2002 227% Public expenditure on education (per capita), 2000 50 Adult illiteracy (%), 2001 72 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 71 Radios (per 1,000 inhabitants), 2001 or most recent available 57 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 47 48 Households online (as % of households with computers), 2002 46 Market Environment 53 Quality of math and science education, 2003 51 Political and Regulatory Environment 54 Affordability of local fixed line calls (as % of per capita GDP), 2001 34 Infrastructure Environment 44 Affordability of Internet telephone access (as % of per capita GDP), 2001 20 171 State of cluster development, 2003 31 Affordability of Internet service provider fees (as % of per capita GDP), 2001 46 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 52 31 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 29 Subsidies for firm-level R&D, 2003 50 Extent of staff training, 2003 31 Quality of scientific research institutions, 2003 78 Country Quality of business schools, 2003 69 2 Availability of scientists and engineers, 2003 66 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 63 artP Brain drain, 2003 62 Government prioritization of ICT, 2003 4 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 32 ICT manufactured exports (per capita), 2001 60 Government procurement of ICT, 2003 66 ICT service exports (per capita), 2001 25 Overall administrative burden, 2003 87 Usage Component Index 37 Quality of the legal system, 2003 44 Individual Usage 41 Laws relating to ICT, 2003 32 Business Usage 61 Competition in the ISP sector, 2003 99 Government Usage 25 Foreign ownership restrictions, 2003 87 Personal computers (per 1,000 inhabitants), 2001 37 51 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 10 Cable television subscribers (per 1,000 inhabitants), 2001 40 Freedom of the press, 2003 41 Internet users (per 1,000 inhabitants), 2001 36 Overall infrastructure quality, 2003 35 Computers installed in businesses (per 1,000 inhabitants), 2002 56 Waiting time for telephone lines (years), 2000 59 Firm-level technology absorption, 2003 63 Telephone mainlines (per 1,000 inhabitants), 2001 43 Prevalence of foreign technology licensing, 2003 51 Public pay telephones (per 1,000 inhabitants), 2001 51 Government success in ICT promotion, 2003 13 Internet servers (per 1,000,000 inhabitants), 2001 40 Government online services, 2003 44 Mexico.mx Key Indicators Networked Readiness Index Rank 44 Population, 2002 101,877,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 14,941,630 2002­2003 (82 countries) 47 growth (%) 1999­2002 37% 2001­2002 (75 countries) 44 Cellular mobile telephone subscribers, 2002 25,928,260 growth (%) 1999­2002 235% Readiness Component Index 47 Personal computers, 2001 6,900,000 Individual Readiness 53 growth (%) 1999­2001 60% Business Readiness 50 Internet users (estimated), 2002 4,663,364 Government Readiness 45 growth (%) 1999­2002 156% Public expenditure on education (per capita), 2000 35 Adult illiteracy (%), 2001 58 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 59 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 65 Environment Component Index Television sets (per 1,000 inhabitants), 2001 47 53 Households online (as % of households with computers), 2002 28 Market Environment 55 Quality of math and science education, 2003 80 Political and Regulatory Environment 59 Affordability of local fixed line calls (as % of per capita GDP), 2001 52 172 Infrastructure Environment 42 Affordability of Internet telephone access (as % of per capita GDP), 2001 88 State of cluster development, 2003 47 Affordability of Internet service provider fees (as % of per capita GDP), 2001 31 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 76 53 Cost of business telephone monthly subscription (as % of per capita GDP),2002 Subsidies for firm-level R&D, 2003 52 51 Country Extent of staff training, 2003 42 Quality of scientific research institutions, 2003 52 2 Quality of business schools, 2003 35 artP Availability of scientists and engineers, 2003 82 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 72 Brain drain, 2003 31 Government prioritization of ICT, 2003 41 Utility patents granted (per 1,000,000 inhabitants), 2002 41 Government online presence, 2003 47 ICT manufactured exports (per capita), 2001 27 Government procurement of ICT, 2003 59 ICT service exports (per capita), 2001 71 Overall administrative burden, 2003 82 Usage Component Index 36 Quality of the legal system, 2003 64 Individual Usage 54 Laws relating to ICT, 2003 56 Business Usage 32 Competition in the ISP sector, 2003 49 Government Usage 28 Foreign ownership restrictions, 2003 26 Personal computers (per 1,000 inhabitants), 2001 46 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 26 90 Cable television subscribers (per 1,000 inhabitants), 2001 59 Freedom of the press, 2003 40 Internet users (per 1,000 inhabitants), 2001 57 Overall infrastructure quality, 2003 52 Computers installed in businesses (per 1,000 inhabitants), 2002 37 Waiting time for telephone lines (years), 2000 33 Firm-level technology absorption, 2003 44 Telephone mainlines (per 1,000 inhabitants), 2001 57 Prevalence of foreign technology licensing, 2003 8 Public pay telephones (per 1,000 inhabitants), 2001 8 Government success in ICT promotion, 2003 51 Internet servers (per 1,000,000 inhabitants), 2001 52 Government online services, 2003 24 Morocco.ma Key Indicators Networked Readiness Index Rank 64 Population, 2002 29,643,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 1,127,447 2002­2003 (82 countries) 52 growth (%) 1999­2002 -23% 2001­2002 (75 countries) Cellular mobile telephone subscribers, 2002 6,198,670 growth (%) 1999­2002 1,579% Readiness Component Index 70 Individual Readiness Personal computers, 2001 400,000 78 growth (%) 1999­2001 33% Business Readiness 46 Internet users (estimated), 2002 500,000 Government Readiness 82 growth (%) 1999­2002 900% Public expenditure on education (per capita), 2000 66 Adult illiteracy (%), 2001 94 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 73 Radios (per 1,000 inhabitants), 2001 or most recent available 74 RANK/102 Environment Component Index 61 Television sets (per 1,000 inhabitants), 2001 70 Households online (as % of households with computers), 2002 43 Market Environment 60 Quality of math and science education, 2003 50 Political and Regulatory Environment 69 Affordability of local fixed line calls (as % of per capita GDP), 2001 78 Infrastructure Environment 61 Affordability of Internet telephone access (as % of per capita GDP), 2001 70 173 State of cluster development, 2003 40 Affordability of Internet service provider fees (as % of per capita GDP), 2001 78 Venture capital availability, 2003 53 Ease of obtaining telephone lines, 2003 33 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 80 Subsidies for firm-level R&D, 2003 36 Extent of staff training, 2003 51 Quality of scientific research institutions, 2003 66 Country Quality of business schools, 2003 42 2 Availability of scientists and engineers, 2003 53 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 45 artP Brain drain, 2003 90 Government prioritization of ICT, 2003 63 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 83 ICT manufactured exports (per capita), 2001 54 Government procurement of ICT, 2003 58 ICT service exports (per capita), 2001 66 Overall administrative burden, 2003 36 Usage Component Index 59 Quality of the legal system, 2003 71 Individual Usage 76 Laws relating to ICT, 2003 57 Business Usage 64 Competition in the ISP sector, 2003 74 Government Usage 47 Foreign ownership restrictions, 2003 31 Personal computers (per 1,000 inhabitants), 2001 76 Efficiency of the tax system, 2003 31 ISDN subscribers (per 1,000 inhabitants), 2001 62 Cable television subscribers (per 1,000 inhabitants), 2001 67 Freedom of the press, 2003 91 Internet users (per 1,000 inhabitants), 2001 72 Overall infrastructure quality, 2003 65 Computers installed in businesses (per 1,000 inhabitants), 2002 79 Waiting time for telephone lines (years), 2000 32 Firm-level technology absorption, 2003 43 Telephone mainlines (per 1,000 inhabitants), 2001 78 Prevalence of foreign technology licensing, 2003 69 Public pay telephones (per 1,000 inhabitants), 2001 47 Government success in ICT promotion, 2003 32 Internet servers (per 1,000,000 inhabitants), 2001 80 Government online services, 2003 54 Mozambique.mz Key Indicators Networked Readiness Index Rank 97 Population, 2002 18,234,000 2003­2004 (102 countries) Main telephone lines in operation, 2001 89,488 growth (%) 1999­2001 15% Cellular mobile telephone subscribers, 2002 297,000 growth (%) 1999­2002 2,326% Readiness Component Index 100 Individual Readiness Personal computers, 2001 70,000 98 growth (%) 1999­2001 40% Business Readiness 102 Internet users (estimated), 2001 30,000 Government Readiness 87 growth (%) 1999­2001 200% Public expenditure on education (per capita), 2000 99 Adult illiteracy (%), 2001 95 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 101 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 101 Environment Component Index Television sets (per 1,000 inhabitants), 2001 99 95 Households online (as % of households with computers), 2002 83 Market Environment 95 Quality of math and science education, 2003 96 Political and Regulatory Environment 86 Affordability of local fixed line calls (as % of per capita GDP), 2001 100 174 Infrastructure Environment 93 Affordability of Internet telephone access (as % of per capita GDP), 2001 95 State of cluster development, 2003 100 Affordability of Internet service provider fees (as % of per capita GDP), 2001 95 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 78 87 Cost of business telephone monthly subscription (as % of per capita GDP),2002 102 Subsidies for firm-level R&D, 2003 91 Country Extent of staff training, 2003 83 Quality of scientific research institutions, 2003 92 2 Quality of business schools, 2003 99 artP Availability of scientists and engineers, 2003 101 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 96 Brain drain, 2003 39 Government prioritization of ICT, 2003 55 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 91 ICT manufactured exports (per capita), 2001 97 Government procurement of ICT, 2003 73 ICT service exports (per capita), 2001 73 Overall administrative burden, 2003 77 Usage Component Index 82 Quality of the legal system, 2003 85 Individual Usage 97 Laws relating to ICT, 2003 89 Business Usage 80 Competition in the ISP sector, 2003 92 Government Usage 73 Foreign ownership restrictions, 2003 62 Personal computers (per 1,000 inhabitants), 2001 92 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 97 51 Cable television subscribers (per 1,000 inhabitants), 2001 96 Freedom of the press, 2003 81 Internet users (per 1,000 inhabitants), 2001 100 Overall infrastructure quality, 2003 92 Computers installed in businesses (per 1,000 inhabitants), 2002 96 Waiting time for telephone lines (years), 2000 78 Firm-level technology absorption, 2003 64 Telephone mainlines (per 1,000 inhabitants), 2001 95 Prevalence of foreign technology licensing, 2003 84 Public pay telephones (per 1,000 inhabitants), 2001 91 Government success in ICT promotion, 2003 53 Internet servers (per 1,000,000 inhabitants), 2001 83 Government online services, 2003 81 Namibia.na Key Indicators Networked Readiness Index Rank 59 Population, 2002 1,875,000 2003­2004 (102 countries) Main telephone lines in operation, 2001 117,398 2002­2003 (82 countries) 53 growth (%) 1999­2001 9% Cellular mobile telephone subscribers, 2002 150,000 growth (%) 1999­2002 400% Readiness Component Index 73 Personal computers, 2001 100,000 Individual Readiness 77 growth (%) 1999­2001 100% Business Readiness 67 Internet users (estimated), 2001 45,000 Government Readiness 74 growth (%) 1999­2001 650% Public expenditure on education (per capita), 2000 52 Adult illiteracy (%), 2001 75 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 81 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 92 Environment Component Index Television sets (per 1,000 inhabitants), 2001 88 37 Households online (as % of households with computers), 2002 59 Market Environment 71 Quality of math and science education, 2003 82 Political and Regulatory Environment 44 Affordability of local fixed line calls (as % of per capita GDP), 2001 47 Infrastructure Environment 23 Affordability of Internet telephone access (as % of per capita GDP), 2001 32 175 State of cluster development, 2003 66 Affordability of Internet service provider fees (as % of per capita GDP), 2001 74 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 59 46 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 54 Subsidies for firm-level R&D, 2003 68 Extent of staff training, 2003 53 Quality of scientific research institutions, 2003 80 Country Quality of business schools, 2003 92 2 Availability of scientists and engineers, 2003 93 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 58 artP Brain drain, 2003 47 Government prioritization of ICT, 2003 70 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 71 ICT manufactured exports (per capita), 2001 66 Government procurement of ICT, 2003 69 ICT service exports (per capita), 2001 55 Overall administrative burden, 2003 37 Usage Component Index 79 Quality of the legal system, 2003 32 Individual Usage 68 Laws relating to ICT, 2003 68 Business Usage 63 Competition in the ISP sector, 2003 61 Government Usage 83 Foreign ownership restrictions, 2003 73 Personal computers (per 1,000 inhabitants), 2001 60 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 49 17 Cable television subscribers (per 1,000 inhabitants), 2001 75 Freedom of the press, 2003 65 Internet users (per 1,000 inhabitants), 2001 66 Overall infrastructure quality, 2003 20 Computers installed in businesses (per 1,000 inhabitants), 2002 69 Waiting time for telephone lines (years), 2000 51 Firm-level technology absorption, 2003 75 Telephone mainlines (per 1,000 inhabitants), 2001 70 Prevalence of foreign technology licensing, 2003 33 Public pay telephones (per 1,000 inhabitants), 2001 1 Government success in ICT promotion, 2003 66 Internet servers (per 1,000,000 inhabitants), 2001 58 Government online services, 2003 89 Netherlands.nl Key Indicators Networked Readiness Index Rank 13 Population, 2002 16,195,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 10,000,000 2002­2003 (82 countries) 11 growth (%) 1999­2002 4% 2001­2002 (75 countries) 6 Cellular mobile telephone subscribers, 2002 12,100,000 growth (%) 1999­2002 79% Readiness Component Index 14 Personal computers, 2001 6,900,000 Individual Readiness 12 growth (%) 1999­2001 21% Business Readiness 15 Internet users (estimated), 2002 8,590,000 Government Readiness 19 growth (%) 1999­2002 39% Public expenditure on education (per capita), 2000 13 Adult illiteracy (%), 2001 17 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 20 Radios (per 1,000 inhabitants), 2001 or most recent available 14 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 21 15 Households online (as % of households with computers), 2002 3 Market Environment 12 Quality of math and science education, 2003 25 Political and Regulatory Environment 14 Affordability of local fixed line calls (as % of per capita GDP), 2001 14 176 Infrastructure Environment 20 Affordability of Internet telephone access (as % of per capita GDP), 2001 69 State of cluster development, 2003 19 Affordability of Internet service provider fees (as % of per capita GDP), 2001 9 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 13 6 Cost of business telephone monthly subscription (as % of per capita GDP),2002 13 Subsidies for firm-level R&D, 2003 18 Country Extent of staff training, 2003 9 Quality of scientific research institutions, 2003 16 2 Quality of business schools, 2003 14 artP Availability of scientists and engineers, 2003 49 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 17 Brain drain, 2003 6 Government prioritization of ICT, 2003 64 Utility patents granted (per 1,000,000 inhabitants), 2002 11 Government online presence, 2003 8 ICT manufactured exports (per capita), 2001 5 Government procurement of ICT, 2003 37 ICT service exports (per capita), 2001 7 Overall administrative burden, 2003 56 Usage Component Index 12 Quality of the legal system, 2003 5 Individual Usage 3 Laws relating to ICT, 2003 26 Business Usage 15 Competition in the ISP sector, 2003 17 Government Usage 40 Foreign ownership restrictions, 2003 24 Personal computers (per 1,000 inhabitants), 2001 11 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 23 5 Cable television subscribers (per 1,000 inhabitants), 2001 1 Freedom of the press, 2003 3 Internet users (per 1,000 inhabitants), 2001 6 Overall infrastructure quality, 2003 16 Computers installed in businesses (per 1,000 inhabitants), 2002 12 Waiting time for telephone lines (years), 2000 1 Firm-level technology absorption, 2003 51 Telephone mainlines (per 1,000 inhabitants), 2001 8 Prevalence of foreign technology licensing, 2003 36 Public pay telephones (per 1,000 inhabitants), 2001 77 Government success in ICT promotion, 2003 54 Internet servers (per 1,000,000 inhabitants), 2001 20 Government online services, 2003 33 New Zealand.nz Key Indicators Networked Readiness Index Rank 23 Population, 2002 3,939,100 2003­2004 (102 countries) Main telephone lines in operation, 2002 1,765,000 2002­2003 (82 countries) 23 growth (%) 1999­2002 -4% 2001­2002 (75 countries) 11 Cellular mobile telephone subscribers, 2002 2,436,000 growth (%) 1999­2002 75% Readiness Component Index 20 Individual Readiness Personal computers, 2001 1,500,000 15 growth (%) 1999­2001 20% Business Readiness 18 Internet users (estimated), 2002 1,908,000 Government Readiness 29 growth (%) 1999­2002 71% Public expenditure on education (per capita), 2000 21 Adult illiteracy (%), 2001 17 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 7 Radios (per 1,000 inhabitants), 2001 or most recent available 13 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 19 18 Households online (as % of households with computers), 2002 18 Market Environment 33 Quality of math and science education, 2003 44 Political and Regulatory Environment 12 Affordability of local fixed line calls (as % of per capita GDP), 2001 11 Infrastructure Environment 8 Affordability of Internet telephone access (as % of per capita GDP), 2001 37 177 State of cluster development, 2003 44 Affordability of Internet service provider fees (as % of per capita GDP), 2001 20 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 16 17 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 43 Subsidies for firm-level R&D, 2003 72 Extent of staff training, 2003 20 Quality of scientific research institutions, 2003 17 Country Quality of business schools, 2003 20 2 Availability of scientists and engineers, 2003 50 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 22 artP Brain drain, 2003 55 Government prioritization of ICT, 2003 51 Utility patents granted (per 1,000,000 inhabitants), 2002 22 Government online presence, 2003 19 ICT manufactured exports (per capita), 2001 36 Government procurement of ICT, 2003 50 ICT service exports (per capita), 2001 29 Overall administrative burden, 2003 60 Usage Component Index 23 Quality of the legal system, 2003 7 Individual Usage 25 Laws relating to ICT, 2003 10 Business Usage 13 Competition in the ISP sector, 2003 22 Government Usage 22 Foreign ownership restrictions, 2003 8 Personal computers (per 1,000 inhabitants), 2001 13 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 23 15 Cable television subscribers (per 1,000 inhabitants), 2001 80 Freedom of the press, 2003 13 Internet users (per 1,000 inhabitants), 2001 23 Overall infrastructure quality, 2003 22 Computers installed in businesses (per 1,000 inhabitants), 2002 9 Waiting time for telephone lines (years), 2000 1 Firm-level technology absorption, 2003 22 Telephone mainlines (per 1,000 inhabitants), 2001 21 Prevalence of foreign technology licensing, 2003 32 Public pay telephones (per 1,000 inhabitants), 2001 7 Government success in ICT promotion, 2003 59 Internet servers (per 1,000,000 inhabitants), 2001 6 Government online services, 2003 15 Nicaragua.ni Key Indicators Networked Readiness Index Rank 94 Population, 2002 5,370,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 171,632 2002­2003 (82 countries) 79 growth (%) 1999­2002 14% 2001­2002 (75 countries) 69 Cellular mobile telephone subscribers, 2002 239,927 growth (%) 1999­2002 442% Readiness Component Index 86 Personal computers, 2002 150,000 Individual Readiness 87 growth (%) 1999­2002 50% Business Readiness 92 Internet users (estimated), 2002 90,000 Government Readiness 80 growth (%) 1999­2002 260% Public expenditure on education (per capita), 2000 81 Adult illiteracy (%), 2001 88 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 70 Radios (per 1,000 inhabitants), 2001 or most recent available 71 RANK/102 Environment Component Index 98 Television sets (per 1,000 inhabitants), 2001 85 Households online (as % of households with computers), 2002 71 Market Environment 97 Quality of math and science education, 2003 90 Political and Regulatory Environment 81 Affordability of local fixed line calls (as % of per capita GDP), 2001 84 178 Infrastructure Environment 101 Affordability of Internet telephone access (as % of per capita GDP), 2001 84 State of cluster development, 2003 98 Affordability of Internet service provider fees (as % of per capita GDP), 2001 88 Profiles Venture capital availability, 2003 83 Ease of obtaining telephone lines, 2003 88 Cost of business telephone monthly subscription (as % of per capita GDP),2002 79 Subsidies for firm-level R&D, 2003 95 Country Extent of staff training, 2003 94 Quality of scientific research institutions, 2003 97 2 Quality of business schools, 2003 78 artP Availability of scientists and engineers, 2003 92 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 91 Brain drain, 2003 61 Government prioritization of ICT, 2003 87 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 57 ICT manufactured exports (per capita), 2001 87 Government procurement of ICT, 2003 86 ICT service exports (per capita), 2001 61 Overall administrative burden, 2003 78 Usage Component Index 94 Quality of the legal system, 2003 99 Individual Usage 80 Laws relating to ICT, 2003 88 Business Usage 91 Competition in the ISP sector, 2003 82 Government Usage 97 Foreign ownership restrictions, 2003 65 Personal computers (per 1,000 inhabitants), 2001 83 Efficiency of the tax system, 2003 74 ISDN subscribers (per 1,000 inhabitants), 2001 73 Cable television subscribers (per 1,000 inhabitants), 2001 74 Freedom of the press, 2003 38 Internet users (per 1,000 inhabitants), 2001 79 Overall infrastructure quality, 2003 95 Computers installed in businesses (per 1,000 inhabitants), 2002 83 Waiting time for telephone lines (years), 2000 101 Firm-level technology absorption, 2003 91 Telephone mainlines (per 1,000 inhabitants), 2001 82 Prevalence of foreign technology licensing, 2003 85 Public pay telephones (per 1,000 inhabitants), 2001 82 Government success in ICT promotion, 2003 92 Internet servers (per 1,000,000 inhabitants), 2001 63 Government online services, 2003 96 Nigeria.ng Key Indicators Networked Readiness Index Rank 79 Population, 2002 120,079,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 702,000 2002­2003 (82 countries) 74 growth (%) 1999­2002 56% 2001­2002 (75 countries) 75 Cellular mobile telephone subscribers, 2002 1,633,060 growth (%) 1999­2002 6,432% Readiness Component Index 82 Individual Readiness Personal computers, 2001 800,000 90 growth (%) 1999­2001 14% Business Readiness 81 Internet users (estimated), 2002 200,000 Government Readiness 70 growth (%) 1999­2002 300% Public expenditure on education (per capita), 2000 88 Adult illiteracy (%), 2001 89 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 85 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 81 Environment Component Index Television sets (per 1,000 inhabitants), 2001 63 72 Households online (as % of households with computers), 2002 102 Market Environment 65 Quality of math and science education, 2003 91 Political and Regulatory Environment 65 Affordability of local fixed line calls (as % of per capita GDP), 2001 88 Infrastructure Environment 85 Affordability of Internet telephone access (as % of per capita GDP), 2001 91 179 State of cluster development, 2003 22 Affordability of Internet service provider fees (as % of per capita GDP), 2001 92 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 83 66 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 78 Subsidies for firm-level R&D, 2003 64 Extent of staff training, 2003 68 Quality of scientific research institutions, 2003 81 Country Quality of business schools, 2003 77 2 Availability of scientists and engineers, 2003 55 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 78 artP Brain drain, 2003 97 Government prioritization of ICT, 2003 67 Utility patents granted (per 1,000,000 inhabitants), 2002 68 Government online presence, 2003 78 ICT manufactured exports (per capita), 2001 101 Government procurement of ICT, 2003 32 ICT service exports (per capita), 2001 93 Overall administrative burden, 2003 76 Usage Component Index 75 Quality of the legal system, 2003 61 Individual Usage 94 Laws relating to ICT, 2003 75 Business Usage 56 Competition in the ISP sector, 2003 77 Government Usage 69 Foreign ownership restrictions, 2003 21 Personal computers (per 1,000 inhabitants), 2001 87 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 101 52 Cable television subscribers (per 1,000 inhabitants), 2001 86 Freedom of the press, 2003 64 Internet users (per 1,000 inhabitants), 2001 99 Overall infrastructure quality, 2003 99 Computers installed in businesses (per 1,000 inhabitants), 2002 81 Waiting time for telephone lines (years), 2000 64 Firm-level technology absorption, 2003 49 Telephone mainlines (per 1,000 inhabitants), 2001 93 Prevalence of foreign technology licensing, 2003 34 Public pay telephones (per 1,000 inhabitants), 2001 100 Government success in ICT promotion, 2003 39 Internet servers (per 1,000,000 inhabitants), 2001 101 Government online services, 2003 86 Norway.no Key Indicators Networked Readiness Index Rank 8 Population, 2002 4,556,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 3,325,000 2002­2003 (82 countries) 17 growth (%) 1999­2002 5% 2001­2002 (75 countries) 5 Cellular mobile telephone subscribers, 2002 3,842,000 growth (%) 1999­2002 40% Readiness Component Index 6 Personal computers, 2001 2,300,000 Individual Readiness 1 growth (%) 1999­2001 15% Business Readiness 8 Internet users (estimated), 2002 2,300,000 Government Readiness 30 growth (%) 1999­2002 28% Public expenditure on education (per capita), 2000 1 Adult illiteracy (%), 2001 1 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 6 Radios (per 1,000 inhabitants), 2001 or most recent available 1 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 16 3 Households online (as % of households with computers), 2002 1 Market Environment 18 Quality of math and science education, 2003 55 Political and Regulatory Environment 22 Affordability of local fixed line calls (as % of per capita GDP), 2001 10 180 Infrastructure Environment 7 Affordability of Internet telephone access (as % of per capita GDP), 2001 58 State of cluster development, 2003 23 Affordability of Internet service provider fees (as % of per capita GDP), 2001 5 Profiles Venture capital availability, 2003 10 Ease of obtaining telephone lines, 2003 21 Cost of business telephone monthly subscription (as % of per capita GDP),2002 5 Subsidies for firm-level R&D, 2003 16 Country Extent of staff training, 2003 22 Quality of scientific research institutions, 2003 19 2 Quality of business schools, 2003 12 artP Availability of scientists and engineers, 2003 25 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 5 Brain drain, 2003 5 Government prioritization of ICT, 2003 48 Utility patents granted (per 1,000,000 inhabitants), 2002 19 Government online presence, 2003 27 ICT manufactured exports (per capita), 2001 23 Government procurement of ICT, 2003 27 ICT service exports (per capita), 2001 12 Overall administrative burden, 2003 32 Usage Component Index 4 Quality of the legal system, 2003 16 Individual Usage 2 Laws relating to ICT, 2003 15 Business Usage 8 Competition in the ISP sector, 2003 25 Government Usage 30 Foreign ownership restrictions, 2003 69 Personal computers (per 1,000 inhabitants), 2001 8 Efficiency of the tax system, 2003 56 ISDN subscribers (per 1,000 inhabitants), 2001 1 Cable television subscribers (per 1,000 inhabitants), 2001 13 Freedom of the press, 2003 14 Internet users (per 1,000 inhabitants), 2001 1 Overall infrastructure quality, 2003 34 Computers installed in businesses (per 1,000 inhabitants), 2002 4 Waiting time for telephone lines (years), 2000 1 Firm-level technology absorption, 2003 21 Telephone mainlines (per 1,000 inhabitants), 2001 3 Prevalence of foreign technology licensing, 2003 62 Public pay telephones (per 1,000 inhabitants), 2001 11 Government success in ICT promotion, 2003 42 Internet servers (per 1,000,000 inhabitants), 2001 14 Government online services, 2003 29 Pakistan.pk Key Indicators Networked Readiness Index Rank 76 Population, 2002 148,784,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 3,690,000 growth (%) 1999­2002 24% Cellular mobile telephone subscribers, 2002 1,219,000 growth (%) 1999­2002 337% Readiness Component Index 78 Personal computers, 2001 600,000 Individual Readiness 89 growth (%) 1999­2001 3% Business Readiness 77 Internet users (estimated), 2002 1,500,000 Government Readiness 57 growth (%) 1999­2002 1,775% Public expenditure on education (per capita), 2000 93 Adult illiteracy (%), 2001 97 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 88 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 97 Environment Component Index Television sets (per 1,000 inhabitants), 2001 73 76 Households online (as % of households with computers), 2002 100 Market Environment 75 Quality of math and science education, 2003 95 Political and Regulatory Environment 74 Affordability of local fixed line calls (as % of per capita GDP), 2001 69 Infrastructure Environment 78 Affordability of Internet telephone access (as % of per capita GDP), 2001 55 181 State of cluster development, 2003 13 Affordability of Internet service provider fees (as % of per capita GDP), 2001 83 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 65 80 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 88 Subsidies for firm-level R&D, 2003 81 Extent of staff training, 2003 76 Quality of scientific research institutions, 2003 90 Country Quality of business schools, 2003 56 2 Availability of scientists and engineers, 2003 81 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 93 artP Brain drain, 2003 81 Government prioritization of ICT, 2003 29 Utility patents granted (per 1,000,000 inhabitants), 2002 71 Government online presence, 2003 64 ICT manufactured exports (per capita), 2001 92 Government procurement of ICT, 2003 78 ICT service exports (per capita), 2001 98 Overall administrative burden, 2003 83 Usage Component Index 62 Quality of the legal system, 2003 77 Individual Usage 89 Laws relating to ICT, 2003 77 Business Usage 76 Competition in the ISP sector, 2003 38 Government Usage 37 Foreign ownership restrictions, 2003 46 Personal computers (per 1,000 inhabitants), 2001 90 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 79 93 Cable television subscribers (per 1,000 inhabitants), 2001 77 Freedom of the press, 2003 65 Internet users (per 1,000 inhabitants), 2001 89 Overall infrastructure quality, 2003 68 Computers installed in businesses (per 1,000 inhabitants), 2002 101 Waiting time for telephone lines (years), 2000 68 Firm-level technology absorption, 2003 82 Telephone mainlines (per 1,000 inhabitants), 2001 85 Prevalence of foreign technology licensing, 2003 61 Public pay telephones (per 1,000 inhabitants), 2001 84 Government success in ICT promotion, 2003 33 Internet servers (per 1,000,000 inhabitants), 2001 98 Government online services, 2003 36 Panama.pa Key Indicators Networked Readiness Index Rank 58 Population, 2002 2,960,000 2003­2004 (102 countries) Main telephone lines in operation, 2001 376,499 2002­2003 (82 countries) 61 growth (%) 1999­2001 -19% 2001­2002 (75 countries) 48 Cellular mobile telephone subscribers, 2001 475,354 growth (%) 1999­2001 104% Readiness Component Index 63 Personal computers, 2001 110,000 Individual Readiness 51 growth (%) 1999­2001 22% Business Readiness 64 Internet users (estimated), 2001 120,000 Government Readiness 68 growth (%) 1999­2001 167% Public expenditure on education (per capita), 2000 39 Adult illiteracy (%), 2001 54 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 42 Radios (per 1,000 inhabitants), 2001 or most recent available 68 RANK/102 Environment Component Index 53 Television sets (per 1,000 inhabitants), 2001 65 Households online (as % of households with computers), 2002 45 Market Environment 58 Quality of math and science education, 2003 77 Political and Regulatory Environment 64 Affordability of local fixed line calls (as % of per capita GDP), 2001 41 182 Infrastructure Environment 51 Affordability of Internet telephone access (as % of per capita GDP), 2001 21 State of cluster development, 2003 57 Affordability of Internet service provider fees (as % of per capita GDP), 2001 45 Profiles Venture capital availability, 2003 34 Ease of obtaining telephone lines, 2003 58 Cost of business telephone monthly subscription (as % of per capita GDP),2002 57 Subsidies for firm-level R&D, 2003 73 Country Extent of staff training, 2003 59 Quality of scientific research institutions, 2003 82 2 Quality of business schools, 2003 67 artP Availability of scientists and engineers, 2003 83 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 84 Brain drain, 2003 25 Government prioritization of ICT, 2003 91 Utility patents granted (per 1,000,000 inhabitants), 2002 51 Government online presence, 2003 38 ICT manufactured exports (per capita), 2001 83 Government procurement of ICT, 2003 91 ICT service exports (per capita), 2001 44 Overall administrative burden, 2003 71 Usage Component Index 57 Quality of the legal system, 2003 89 Individual Usage 50 Laws relating to ICT, 2003 42 Business Usage 44 Competition in the ISP sector, 2003 37 Government Usage 76 Foreign ownership restrictions, 2003 45 Personal computers (per 1,000 inhabitants), 2001 59 Efficiency of the tax system, 2003 50 ISDN subscribers (per 1,000 inhabitants), 2001 34 Cable television subscribers (per 1,000 inhabitants), 2001 40 Freedom of the press, 2003 63 Internet users (per 1,000 inhabitants), 2001 60 Overall infrastructure quality, 2003 46 Computers installed in businesses (per 1,000 inhabitants), 2002 50 Waiting time for telephone lines (years), 2000 49 Firm-level technology absorption, 2003 32 Telephone mainlines (per 1,000 inhabitants), 2001 56 Prevalence of foreign technology licensing, 2003 26 Public pay telephones (per 1,000 inhabitants), 2001 28 Government success in ICT promotion, 2003 80 Internet servers (per 1,000,000 inhabitants), 2001 40 Government online services, 2003 63 Paraguay.py Key Indicators Networked Readiness Index Rank 91 Population, 2002 5,782,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 273,218 2002­2003 (82 countries) 76 growth (%) 1999­2002 2% 2001­2002 (75 countries) 63 Cellular mobile telephone subscribers, 2002 1,667,018 growth (%) 1999­2002 283% Readiness Component Index 87 Individual Readiness Personal computers, 2002 200,000 75 growth (%) 1999­2002 233% Business Readiness 87 Internet users (estimated), 2002 100,000 Government Readiness 92 growth (%) 1999­2002 400% Public expenditure on education (per capita), 2000 69 Adult illiteracy (%), 2001 48 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 74 Radios (per 1,000 inhabitants), 2001 or most recent available 83 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 58 92 Households online (as % of households with computers), 2002 64 Market Environment 100 Quality of math and science education, 2003 97 Political and Regulatory Environment 87 Affordability of local fixed line calls (as % of per capita GDP), 2001 81 Infrastructure Environment 75 Affordability of Internet telephone access (as % of per capita GDP), 2001 48 183 State of cluster development, 2003 99 Affordability of Internet service provider fees (as % of per capita GDP), 2001 77 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 86 96 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 60 Subsidies for firm-level R&D, 2003 102 Extent of staff training, 2003 96 Quality of scientific research institutions, 2003 101 Country Quality of business schools, 2003 82 2 Availability of scientists and engineers, 2003 98 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 55 artP Brain drain, 2003 59 Government prioritization of ICT, 2003 101 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 52 ICT manufactured exports (per capita), 2001 78 Government procurement of ICT, 2003 102 ICT service exports (per capita), 2001 46 Overall administrative burden, 2003 44 Usage Component Index 100 Quality of the legal system, 2003 100 Individual Usage 73 Laws relating to ICT, 2003 98 Business Usage 97 Competition in the ISP sector, 2003 81 Government Usage 99 Foreign ownership restrictions, 2003 80 Personal computers (per 1,000 inhabitants), 2001 75 Efficiency of the tax system, 2003 34 ISDN subscribers (per 1,000 inhabitants), 2001 102 Cable television subscribers (per 1,000 inhabitants), 2001 60 Freedom of the press, 2003 69 Internet users (per 1,000 inhabitants), 2001 76 Overall infrastructure quality, 2003 97 Computers installed in businesses (per 1,000 inhabitants), 2002 64 Waiting time for telephone lines (years), 2000 47 Firm-level technology absorption, 2003 100 Telephone mainlines (per 1,000 inhabitants), 2001 74 Prevalence of foreign technology licensing, 2003 97 Public pay telephones (per 1,000 inhabitants), 2001 73 Government success in ICT promotion, 2003 102 Internet servers (per 1,000,000 inhabitants), 2001 70 Government online services, 2003 68 Peru.pe Key Indicators Networked Readiness Index Rank 70 Population, 2002 26,748,970 2003­2004 (102 countries) Main telephone lines in operation, 2001 2,022,265 2002­2003 (82 countries) 67 growth (%) 1999­2001 20% 2001­2002 (75 countries) 52 Cellular mobile telephone subscribers, 2002 2,300,000 growth (%) 1999­2002 127% Readiness Component Index 66 Personal computers, 2001 1,250,000 Individual Readiness 63 growth (%) 1999­2001 39% Business Readiness 61 Internet users (estimated), 2001 2,000,000 Government Readiness 65 growth (%) 1999­2001 300% Public expenditure on education (per capita), 2000 64 Adult illiteracy (%), 2001 61 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 47 Radios (per 1,000 inhabitants), 2001 or most recent available 72 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 73 71 Households online (as % of households with computers), 2002 62 Market Environment 90 Quality of math and science education, 2003 93 Political and Regulatory Environment 76 Affordability of local fixed line calls (as % of per capita GDP), 2001 64 184 Infrastructure Environment 63 Affordability of Internet telephone access (as % of per capita GDP), 2001 34 State of cluster development, 2003 85 Affordability of Internet service provider fees (as % of per capita GDP), 2001 58 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 37 85 Cost of business telephone monthly subscription (as % of per capita GDP),2002 82 Subsidies for firm-level R&D, 2003 97 Country Extent of staff training, 2003 78 Quality of scientific research institutions, 2003 91 2 Quality of business schools, 2003 47 artP Availability of scientists and engineers, 2003 71 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 71 Brain drain, 2003 70 Government prioritization of ICT, 2003 82 Utility patents granted (per 1,000,000 inhabitants), 2002 67 Government online presence, 2003 41 ICT manufactured exports (per capita), 2001 75 Government procurement of ICT, 2003 92 ICT service exports (per capita), 2001 81 Overall administrative burden, 2003 91 Usage Component Index 72 Quality of the legal system, 2003 92 Individual Usage 51 Laws relating to ICT, 2003 60 Business Usage 74 Competition in the ISP sector, 2003 66 Government Usage 79 Foreign ownership restrictions, 2003 57 Personal computers (per 1,000 inhabitants), 2001 53 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 52 66 Cable television subscribers (per 1,000 inhabitants), 2001 Freedom of the press, 2003 63 45 Internet users (per 1,000 inhabitants), 2001 39 Overall infrastructure quality, 2003 83 Computers installed in businesses (per 1,000 inhabitants), 2002 55 Waiting time for telephone lines (years), 2000 61 Firm-level technology absorption, 2003 79 Telephone mainlines (per 1,000 inhabitants), 2001 69 Prevalence of foreign technology licensing, 2003 72 Public pay telephones (per 1,000 inhabitants), 2001 36 Government success in ICT promotion, 2003 82 Internet servers (per 1,000,000 inhabitants), 2001 60 Government online services, 2003 63 Philippines.ph Key Indicators Networked Readiness Index Rank 69 Population, 2002 79,982,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 3,338,926 2002­2003 (82 countries) 62 growth (%) 1999­2002 15% 2001­2002 (75 countries) 58 Cellular mobile telephone subscribers, 2002 14,216,230 growth (%) 1999­2002 399% Readiness Component Index 72 Individual Readiness Personal computers, 2002 2,200,000 65 growth (%) 1999­2002 75% Business Readiness 80 Internet users (estimated), 2001 3,500,000 Government Readiness 56 growth (%) 1999­2001 221% Public expenditure on education (per capita), 2000 73 Adult illiteracy (%), 2001 43 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 43 Radios (per 1,000 inhabitants), 2001 or most recent available 88 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 69 82 Households online (as % of households with computers), 2002 97 Market Environment 78 Quality of math and science education, 2003 89 Political and Regulatory Environment 63 Affordability of local fixed line calls (as % of per capita GDP), 2001 76 Infrastructure Environment 94 Affordability of Internet telephone access (as % of per capita GDP), 2001 43 185 State of cluster development, 2003 43 Affordability of Internet service provider fees (as % of per capita GDP), 2001 80 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 71 71 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 101 Subsidies for firm-level R&D, 2003 78 Extent of staff training, 2003 41 Quality of scientific research institutions, 2003 89 Country Quality of business schools, 2003 32 2 Availability of scientists and engineers, 2003 72 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 81 artP Brain drain, 2003 87 Government prioritization of ICT, 2003 61 Utility patents granted (per 1,000,000 inhabitants), 2002 58 Government online presence, 2003 49 ICT manufactured exports (per capita), 2001 28 Government procurement of ICT, 2003 84 ICT service exports (per capita), 2001 85 Overall administrative burden, 2003 98 Usage Component Index 50 Quality of the legal system, 2003 73 Individual Usage 72 Laws relating to ICT, 2003 52 Business Usage 59 Competition in the ISP sector, 2003 41 Government Usage 29 Foreign ownership restrictions, 2003 83 Personal computers (per 1,000 inhabitants), 2001 68 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 88 62 Cable television subscribers (per 1,000 inhabitants), 2001 72 Freedom of the press, 2003 16 Internet users (per 1,000 inhabitants), 2001 64 Overall infrastructure quality, 2003 89 Computers installed in businesses (per 1,000 inhabitants), 2002 63 Waiting time for telephone lines (years), 2000 88 Firm-level technology absorption, 2003 72 Telephone mainlines (per 1,000 inhabitants), 2001 77 Prevalence of foreign technology licensing, 2003 23 Public pay telephones (per 1,000 inhabitants), 2001 90 Government success in ICT promotion, 2003 68 Internet servers (per 1,000,000 inhabitants), 2001 68 Government online services, 2003 20 Poland.pl Key Indicators Networked Readiness Index Rank 47 Population, 2002 38,609,000 2003­2004 (102 countries) Main telephone lines in operation, 2001 11,400,000 2002­2003 (82 countries) 39 growth (%) 1999­2001 12% 2001­2002 (75 countries) 35 Cellular mobile telephone subscribers, 2002 14,000,000 growth (%) 1999­2002 254% Readiness Component Index 43 Personal computers, 2001 3,300,000 Individual Readiness 39 growth (%) 1999­2001 38% Business Readiness 45 Internet users (estimated), 2001 3,800,000 Government Readiness 46 growth (%) 1999­2001 81% Public expenditure on education (per capita), 2000 38 Adult illiteracy (%), 2001 11 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 19 Radios (per 1,000 inhabitants), 2001 or most recent available 42 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 36 50 Households online (as % of households with computers), 2002 38 Market Environment 46 Quality of math and science education, 2003 36 Political and Regulatory Environment 56 Affordability of local fixed line calls (as % of per capita GDP), 2001 44 186 Infrastructure Environment 56 Affordability of Internet telephone access (as % of per capita GDP), 2001 100 State of cluster development, 2003 49 Affordability of Internet service provider fees (as % of per capita GDP), 2001 36 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 68 42 Cost of business telephone monthly subscription (as % of per capita GDP),2002 44 Subsidies for firm-level R&D, 2003 43 Country Extent of staff training, 2003 54 Quality of scientific research institutions, 2003 54 2 Quality of business schools, 2003 51 artP Availability of scientists and engineers, 2003 35 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 35 Brain drain, 2003 44 Government prioritization of ICT, 2003 84 Utility patents granted (per 1,000,000 inhabitants), 2002 53 Government online presence, 2003 22 ICT manufactured exports (per capita), 2001 48 Government procurement of ICT, 2003 60 ICT service exports (per capita), 2001 50 Overall administrative burden, 2003 51 Usage Component Index 52 Quality of the legal system, 2003 51 Individual Usage 42 Laws relating to ICT, 2003 46 Business Usage 41 Competition in the ISP sector, 2003 71 Government Usage 78 Foreign ownership restrictions, 2003 51 Personal computers (per 1,000 inhabitants), 2001 42 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 39 87 Cable television subscribers (per 1,000 inhabitants), 2001 32 Freedom of the press, 2003 50 Internet users (per 1,000 inhabitants), 2001 40 Overall infrastructure quality, 2003 73 Computers installed in businesses (per 1,000 inhabitants), 2002 34 Waiting time for telephone lines (years), 2000 54 Firm-level technology absorption, 2003 54 Telephone mainlines (per 1,000 inhabitants), 2001 38 Prevalence of foreign technology licensing, 2003 43 Public pay telephones (per 1,000 inhabitants), 2001 50 Government success in ICT promotion, 2003 81 Internet servers (per 1,000,000 inhabitants), 2001 44 Government online services, 2003 63 Portugal.pt Key Indicators Networked Readiness Index Rank 31 Population, 2002 10,409,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 4,361,000 2002­2003 (82 countries) 31 growth (%) 1999­2002 3% 2001­2002 (75 countries) 27 Cellular mobile telephone subscribers, 2002 8,528,900 growth (%) 1999­2002 83% Readiness Component Index 35 Individual Readiness Personal computers, 2001 1,210,000 38 growth (%) 1999­2001 30% Business Readiness 30 Internet users (estimated), 2002 3,700,000 Government Readiness 42 growth (%) 1999­2002 147% Public expenditure on education (per capita), 2000 25 Adult illiteracy (%), 2001 52 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 24 Radios (per 1,000 inhabitants), 2001 or most recent available 67 RANK/102 Environment Component Index 27 Television sets (per 1,000 inhabitants), 2001 34 Households online (as % of households with computers), 2002 22 Market Environment 30 Quality of math and science education, 2003 76 Political and Regulatory Environment 27 Affordability of local fixed line calls (as % of per capita GDP), 2001 36 Infrastructure Environment 28 Affordability of Internet telephone access (as % of per capita GDP), 2001 83 187 State of cluster development, 2003 41 Affordability of Internet service provider fees (as % of per capita GDP), 2001 30 Venture capital availability, 2003 33 Ease of obtaining telephone lines, 2003 24 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 27 Subsidies for firm-level R&D, 2003 24 Extent of staff training, 2003 56 Quality of scientific research institutions, 2003 41 Country Quality of business schools, 2003 36 2 Availability of scientists and engineers, 2003 48 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 31 artP Brain drain, 2003 27 Government prioritization of ICT, 2003 53 Utility patents granted (per 1,000,000 inhabitants), 2002 40 Government online presence, 2003 30 ICT manufactured exports (per capita), 2001 35 Government procurement of ICT, 2003 67 ICT service exports (per capita), 2001 37 Overall administrative burden, 2003 54 Usage Component Index 30 Quality of the legal system, 2003 14 Individual Usage 28 Laws relating to ICT, 2003 44 Business Usage 38 Competition in the ISP sector, 2003 35 Government Usage 42 Foreign ownership restrictions, 2003 59 Personal computers (per 1,000 inhabitants), 2001 35 Efficiency of the tax system, 2003 47 ISDN subscribers (per 1,000 inhabitants), 2001 18 Cable television subscribers (per 1,000 inhabitants), 2001 29 Freedom of the press, 2003 6 Internet users (per 1,000 inhabitants), 2001 28 Overall infrastructure quality, 2003 30 Computers installed in businesses (per 1,000 inhabitants), 2002 30 Waiting time for telephone lines (years), 2000 39 Firm-level technology absorption, 2003 87 Telephone mainlines (per 1,000 inhabitants), 2001 28 Prevalence of foreign technology licensing, 2003 9 Public pay telephones (per 1,000 inhabitants), 2001 21 Government success in ICT promotion, 2003 48 Internet servers (per 1,000,000 inhabitants), 2001 32 Government online services, 2003 36 Romania.ro Key Indicators Networked Readiness Index Rank 61 Population, 2002 22,330,000 2003­2004 (102 countries) Main telephone lines in operation, 2001 4,116,000 2002­2003 (82 countries) 72 growth (%) 1999­2001 10% 2001­2002 (75 countries) 65 Cellular mobile telephone subscribers, 2001 3,845,116 growth (%) 1999­2001 184% Readiness Component Index 56 Personal computers, 2001 800,000 Individual Readiness 41 growth (%) 1999­2001 33% Business Readiness 69 Internet users (estimated), 2002 1,800,000 Government Readiness 62 growth (%) 1999­2002 200% Public expenditure on education (per capita), 2000 65 Adult illiteracy (%), 2001 29 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 52 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 60 Environment Component Index Television sets (per 1,000 inhabitants), 2001 75 38 Households online (as % of households with computers), 2002 41 Market Environment 61 Quality of math and science education, 2003 5 Political and Regulatory Environment 88 Affordability of local fixed line calls (as % of per capita GDP), 2001 74 188 Infrastructure Environment 70 Affordability of Internet telephone access (as % of per capita GDP), 2001 38 State of cluster development, 2003 48 Affordability of Internet service provider fees (as % of per capita GDP), 2001 54 Profiles Venture capital availability, 2003 64 Ease of obtaining telephone lines, 2003 75 Cost of business telephone monthly subscription (as % of per capita GDP),2002 Subsidies for firm-level R&D, 2003 55 57 Country Extent of staff training, 2003 89 Quality of scientific research institutions, 2003 69 2 Quality of business schools, 2003 62 artP Availability of scientists and engineers, 2003 21 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 43 Brain drain, 2003 93 Government prioritization of ICT, 2003 73 Utility patents granted (per 1,000,000 inhabitants), 2002 60 Government online presence, 2003 46 ICT manufactured exports (per capita), 2001 47 Government procurement of ICT, 2003 85 ICT service exports (per capita), 2001 60 Overall administrative burden, 2003 97 Usage Component Index 48 Quality of the legal system, 2003 82 Individual Usage 46 Laws relating to ICT, 2003 50 Business Usage 68 Competition in the ISP sector, 2003 72 Government Usage 39 Foreign ownership restrictions, 2003 77 Personal computers (per 1,000 inhabitants), 2001 61 Efficiency of the tax system, 2003 100 ISDN subscribers (per 1,000 inhabitants), 2001 71 Cable television subscribers (per 1,000 inhabitants), 2001 27 Freedom of the press, 2003 76 Internet users (per 1,000 inhabitants), 2001 52 Overall infrastructure quality, 2003 77 Computers installed in businesses (per 1,000 inhabitants), 2002 60 Waiting time for telephone lines (years), 2000 83 Firm-level technology absorption, 2003 65 Telephone mainlines (per 1,000 inhabitants), 2001 54 Prevalence of foreign technology licensing, 2003 67 Public pay telephones (per 1,000 inhabitants), 2001 59 Government success in ICT promotion, 2003 49 Internet servers (per 1,000,000 inhabitants), 2001 53 Government online services, 2003 35 Russian Federation.ru Key Indicators Networked Readiness Index Rank 63 Population, 2002 146,586,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 35,500,000 2002­2003 (82 countries) 69 growth (%) 1999­2002 15% 2001­2002 (75 countries) 61 Cellular mobile telephone subscribers, 2002 17,668,130 growth (%) 1999­2002 1,189% Readiness Component Index 48 Individual Readiness Personal computers, 2002 13,000,000 31 growth (%) 1999­2002 136% Business Readiness 43 Internet users (estimated), 2002 6,000,000 Government Readiness 89 growth (%) 1999­2002 300% Public expenditure on education (per capita), 2000 56 Adult illiteracy (%), 2001 15 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 8 Radios (per 1,000 inhabitants), 2001 or most recent available 49 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 24 73 Households online (as % of households with computers), 2002 54 Market Environment 48 Quality of math and science education, 2003 18 Political and Regulatory Environment 95 Affordability of local fixed line calls (as % of per capita GDP), 2001 56 Infrastructure Environment 68 Affordability of Internet telephone access (as % of per capita GDP), 2001 14 189 State of cluster development, 2003 56 Affordability of Internet service provider fees (as % of per capita GDP), 2001 47 Venture capital availability, 2003 63 Ease of obtaining telephone lines, 2003 74 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 66 Subsidies for firm-level R&D, 2003 61 Extent of staff training, 2003 79 Quality of scientific research institutions, 2003 25 Country Quality of business schools, 2003 61 2 Availability of scientists and engineers, 2003 27 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 8 artP Brain drain, 2003 56 Government prioritization of ICT, 2003 78 Utility patents granted (per 1,000,000 inhabitants), 2002 38 Government online presence, 2003 82 ICT manufactured exports (per capita), 2001 49 Government procurement of ICT, 2003 77 ICT service exports (per capita), 2001 74 Overall administrative burden, 2003 100 Usage Component Index 69 Quality of the legal system, 2003 81 Individual Usage 49 Laws relating to ICT, 2003 76 Business Usage 79 Competition in the ISP sector, 2003 80 Government Usage 66 Foreign ownership restrictions, 2003 99 Personal computers (per 1,000 inhabitants), 2001 52 Efficiency of the tax system, 2003 96 ISDN subscribers (per 1,000 inhabitants), 2001 54 Cable television subscribers (per 1,000 inhabitants), 2001 38 Freedom of the press, 2003 82 Internet users (per 1,000 inhabitants), 2001 61 Overall infrastructure quality, 2003 60 Computers installed in businesses (per 1,000 inhabitants), 2002 42 Waiting time for telephone lines (years), 2000 87 Firm-level technology absorption, 2003 66 Telephone mainlines (per 1,000 inhabitants), 2001 44 Prevalence of foreign technology licensing, 2003 93 Public pay telephones (per 1,000 inhabitants), 2001 56 Government success in ICT promotion, 2003 86 Internet servers (per 1,000,000 inhabitants), 2001 55 Government online services, 2003 44 Senegal.sn Key Indicators Networked Readiness Index Rank 81 Population, 2002 9,802,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 224,623 growth (%) 1999­2002 35% Cellular mobile telephone subscribers, 2002 553,427 growth (%) 1999­2002 530% Readiness Component Index 85 Personal computers, 2002 200,000 Individual Readiness 95 growth (%) 1999­2002 43% Business Readiness 76 Internet users (estimated), 2002 105,000 Government Readiness 85 growth (%) 1999­2002 250% Public expenditure on education (per capita), 2000 85 Adult illiteracy (%), 2001 100 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 87 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 94 Environment Component Index 77 Television sets (per 1,000 inhabitants), 2001 84 Households online (as % of households with computers), 2002 70 Market Environment 86 Quality of math and science education, 2003 78 Political and Regulatory Environment 72 Affordability of local fixed line calls (as % of per capita GDP), 2001 94 190 Infrastructure Environment 71 Affordability of Internet telephone access (as % of per capita GDP), 2001 82 State of cluster development, 2003 96 Affordability of Internet service provider fees (as % of per capita GDP), 2001 81 Profiles Venture capital availability, 2003 92 Ease of obtaining telephone lines, 2003 62 Cost of business telephone monthly subscription (as % of per capita GDP),2002 84 Subsidies for firm-level R&D, 2003 60 Country Extent of staff training, 2003 80 Quality of scientific research institutions, 2003 67 2 Quality of business schools, 2003 54 artP Availability of scientists and engineers, 2003 84 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 102 Brain drain, 2003 85 Government prioritization of ICT, 2003 23 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 99 ICT manufactured exports (per capita), 2001 77 Government procurement of ICT, 2003 27 ICT service exports (per capita), 2001 72 Overall administrative burden, 2003 89 Usage Component Index 78 Quality of the legal system, 2003 69 Individual Usage 86 Laws relating to ICT, 2003 78 Business Usage 62 Competition in the ISP sector, 2003 86 Government Usage 71 Foreign ownership restrictions, 2003 44 Personal computers (per 1,000 inhabitants), 2001 72 Efficiency of the tax system, 2003 63 ISDN subscribers (per 1,000 inhabitants), 2001 67 Cable television subscribers (per 1,000 inhabitants), 2001 100 Freedom of the press, 2003 46 Internet users (per 1,000 inhabitants), 2001 77 Overall infrastructure quality, 2003 87 Computers installed in businesses (per 1,000 inhabitants), 2002 88 Waiting time for telephone lines (years), 2000 55 Firm-level technology absorption, 2003 12 Telephone mainlines (per 1,000 inhabitants), 2001 84 Prevalence of foreign technology licensing, 2003 82 Public pay telephones (per 1,000 inhabitants), 2001 69 Government success in ICT promotion, 2003 36 Internet servers (per 1,000,000 inhabitants), 2001 88 Government online services, 2003 89 Serbia.yu Key Indicators Networked Readiness Index Rank Population, 2002 10,720,000 2003­2004 (102 countries) 77 Main telephone lines in operation, 2002 2,492,963 growth (%) 1999­2002 9% Cellular mobile telephone subscribers, 2002 2,750,397 growth (%) 1999­2002 354% Readiness Component Index 77 Personal computers, 2002 290,000 Individual Readiness 57 growth (%) 1999­2002 32% Business Readiness 88 Internet users (estimated), 2002 640,000 Government Readiness 81 growth (%) 1999­2002 700% Public expenditure on education (per capita), 2000 68 Adult illiteracy (%), 2001 59 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 54 Radios (per 1,000 inhabitants), 2001 or most recent available 70 RANK/102 Environment Component Index 79 Television sets (per 1,000 inhabitants), 2001 62 Households online (as % of households with computers), 2002 63 Market Environment 69 Quality of math and science education, 2003 45 Political and Regulatory Environment 92 Affordability of local fixed line calls (as % of per capita GDP), 2001 67 Infrastructure Environment 66 Affordability of Internet telephone access (as % of per capita GDP), 2001 47 191 State of cluster development, 2003 73 Affordability of Internet service provider fees (as % of per capita GDP), 2001 76 Venture capital availability, 2003 51 Ease of obtaining telephone lines, 2003 85 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 69 Subsidies for firm-level R&D, 2003 74 Extent of staff training, 2003 88 Quality of scientific research institutions, 2003 58 Country Quality of business schools, 2003 84 2 Availability of scientists and engineers, 2003 38 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 85 artP Brain drain, 2003 100 Government prioritization of ICT, 2003 45 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 86 ICT manufactured exports (per capita), 2001 67 Government procurement of ICT, 2003 62 ICT service exports (per capita), 2001 54 Overall administrative burden, 2003 81 Usage Component Index 77 Quality of the legal system, 2003 80 Individual Usage 71 Laws relating to ICT, 2003 65 Business Usage 82 Competition in the ISP sector, 2003 91 Government Usage 52 Foreign ownership restrictions, 2003 100 Personal computers (per 1,000 inhabitants), 2001 63 Efficiency of the tax system, 2003 46 ISDN subscribers (per 1,000 inhabitants), 2001 76 Cable television subscribers (per 1,000 inhabitants), 2001 60 Freedom of the press, 2003 86 Internet users (per 1,000 inhabitants), 2001 78 Overall infrastructure quality, 2003 94 Computers installed in businesses (per 1,000 inhabitants), 2002 73 Waiting time for telephone lines (years), 2000 77 Firm-level technology absorption, 2003 86 Telephone mainlines (per 1,000 inhabitants), 2001 48 Prevalence of foreign technology licensing, 2003 86 Public pay telephones (per 1,000 inhabitants), 2001 29 Government success in ICT promotion, 2003 57 Internet servers (per 1,000,000 inhabitants), 2001 79 Government online services, 2003 49 Singapore.sg Key Indicators Networked Readiness Index Rank 2 Population, 2002 4,163,700 2003­2004 (102 countries) Main telephone lines in operation, 2002 1,930,200 2002­2003 (82 countries) 3 growth (%) 1999­2002 3% 2001­2002 (75 countries) 8 Cellular mobile telephone subscribers, 2002 3,295,100 growth (%) 1999­2002 102% Readiness Component Index 4 Personal computers, 2001 2,100,000 Individual Readiness 22 growth (%) 1999­2001 24% Business Readiness 4 Internet users (estimated), 2002 2,247,000 Government Readiness 1 growth (%) 1999­2002 137% Public expenditure on education (per capita), 2000 23 Adult illiteracy (%), 2001 51 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 32 Radios (per 1,000 inhabitants), 2001 or most recent available 34 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 48 2 Households online (as % of households with computers), 2002 13 Market Environment 1 Quality of math and science education, 2003 1 Political and Regulatory Environment 5 Affordability of local fixed line calls (as % of per capita GDP), 2001 1 192 Infrastructure Environment 5 Affordability of Internet telephone access (as % of per capita GDP), 2001 1 State of cluster development, 2003 4 Affordability of Internet service provider fees (as % of per capita GDP), 2001 21 Profiles Venture capital availability, 2003 2 12 Ease of obtaining telephone lines, 2003 Cost of business telephone monthly subscription (as % of per capita GDP),2002 2 Subsidies for firm-level R&D, 2003 1 Country Extent of staff training, 2003 8 Quality of scientific research institutions, 2003 10 2 Quality of business schools, 2003 9 artP Availability of scientists and engineers, 2003 16 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 4 Brain drain, 2003 15 Government prioritization of ICT, 2003 1 Utility patents granted (per 1,000,000 inhabitants), 2002 10 Government online presence, 2003 6 ICT manufactured exports (per capita), 2001 1 Government procurement of ICT, 2003 1 ICT service exports (per capita), 2001 2 Overall administrative burden, 2003 1 Usage Component Index 2 Quality of the legal system, 2003 27 Individual Usage 18 Laws relating to ICT, 2003 2 Business Usage 2 Competition in the ISP sector, 2003 18 Government Usage 1 Foreign ownership restrictions, 2003 5 Personal computers (per 1,000 inhabitants), 2001 7 Efficiency of the tax system, 2003 2 ISDN subscribers (per 1,000 inhabitants), 2001 31 Cable television subscribers (per 1,000 inhabitants), 2001 43 Freedom of the press, 2003 96 Internet users (per 1,000 inhabitants), 2001 17 Overall infrastructure quality, 2003 1 Computers installed in businesses (per 1,000 inhabitants), 2002 6 Waiting time for telephone lines (years), 2000 1 Firm-level technology absorption, 2003 5 Telephone mainlines (per 1,000 inhabitants), 2001 23 Prevalence of foreign technology licensing, 2003 1 Public pay telephones (per 1,000 inhabitants), 2001 9 Government success in ICT promotion, 2003 1 Internet servers (per 1,000,000 inhabitants), 2001 8 Government online services, 2003 1 Slovak Republic.sk Key Indicators Networked Readiness Index Rank 41 Population, 2002 5,378,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 1,402,725 2002­2003 (82 countries) 40 growth (%) 1999­2002 -15% 2001­2002 (75 countries) 33 Cellular mobile telephone subscribers, 2002 2,923,383 growth (%) 1999­2002 340% Readiness Component Index 34 Individual Readiness Personal computers, 2002 970,000 37 growth (%) 1999­2002 64% Business Readiness 27 Internet users (estimated), 2002 862,833 Government Readiness 43 growth (%) 1999­2002 195% Public expenditure on education (per capita), 2000 45 Adult illiteracy (%), 2001 1 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 44 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 15 Environment Component Index Television sets (per 1,000 inhabitants), 2001 51 35 Households online (as % of households with computers), 2002 68 Market Environment 51 Quality of math and science education, 2003 11 Political and Regulatory Environment 61 Affordability of local fixed line calls (as % of per capita GDP), 2001 55 Infrastructure Environment 47 Affordability of Internet telephone access (as % of per capita GDP), 2001 26 193 State of cluster development, 2003 54 Affordability of Internet service provider fees (as % of per capita GDP), 2001 34 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 55 35 Profiles Subsidies for firm-level R&D, 2003 Cost of business telephone monthly subscription (as % of per capita GDP),2002 34 67 Extent of staff training, 2003 39 Quality of scientific research institutions, 2003 59 Country Quality of business schools, 2003 48 2 Availability of scientists and engineers, 2003 15 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 30 artP Brain drain, 2003 68 Government prioritization of ICT, 2003 75 Utility patents granted (per 1,000,000 inhabitants), 2002 36 Government online presence, 2003 26 ICT manufactured exports (per capita), 2001 38 Government procurement of ICT, 2003 49 ICT service exports (per capita), 2001 38 Overall administrative burden, 2003 86 Usage Component Index 39 Quality of the legal system, 2003 68 Individual Usage 33 Laws relating to ICT, 2003 47 Business Usage 45 Competition in the ISP sector, 2003 67 Government Usage 57 Foreign ownership restrictions, 2003 13 Personal computers (per 1,000 inhabitants), 2001 32 30 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 91 Cable television subscribers (per 1,000 inhabitants), 2001 26 Freedom of the press, 2003 33 Internet users (per 1,000 inhabitants), 2001 37 Overall infrastructure quality, 2003 57 Computers installed in businesses (per 1,000 inhabitants), 2002 46 Waiting time for telephone lines (years), 2000 48 Firm-level technology absorption, 2003 26 Telephone mainlines (per 1,000 inhabitants), 2001 39 Prevalence of foreign technology licensing, 2003 48 Public pay telephones (per 1,000 inhabitants), 2001 45 Government success in ICT promotion, 2003 78 Internet servers (per 1,000,000 inhabitants), 2001 31 Government online services, 2003 40 Slovenia.si Key Indicators Networked Readiness Index Rank 30 Population, 2002 1,996,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 811,435 2002­2003 (82 countries) 33 growth (%) 1999­2002 7% 2001­2002 (75 countries) 29 Cellular mobile telephone subscribers, 2002 1,667,000 growth (%) 1999­2002 164% Readiness Component Index 27 Personal computers, 2002 600,000 Individual Readiness 30 growth (%) 1999­2002 20% Business Readiness 24 Internet users (estimated), 2002 800,000 Government Readiness 35 growth (%) 1999­2002 220% Public expenditure on education (per capita), 2000 27 Adult illiteracy (%), 2001 12 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 11 Radios (per 1,000 inhabitants), 2001 or most recent available 53 RANK/102 Environment Component Index 39 Television sets (per 1,000 inhabitants), 2001 39 Households online (as % of households with computers), 2002 29 Market Environment 43 Quality of math and science education, 2003 19 Political and Regulatory Environment 51 Affordability of local fixed line calls (as % of per capita GDP), 2001 17 194 Infrastructure Environment 31 Affordability of Internet telephone access (as % of per capita GDP), 2001 7 State of cluster development, 2003 66 Affordability of Internet service provider fees (as % of per capita GDP), 2001 37 Profiles Venture capital availability, 2003 61 Ease of obtaining telephone lines, 2003 30 Cost of business telephone monthly subscription (as % of per capita GDP),2002 9 Subsidies for firm-level R&D, 2003 29 Country Extent of staff training, 2003 29 Quality of scientific research institutions, 2003 29 2 Quality of business schools, 2003 31 artP Availability of scientists and engineers, 2003 64 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 24 Brain drain, 2003 34 Government prioritization of ICT, 2003 58 Utility patents granted (per 1,000,000 inhabitants), 2002 26 Government online presence, 2003 28 ICT manufactured exports (per capita), 2001 31 Government procurement of ICT, 2003 44 ICT service exports (per capita), 2001 28 Overall administrative burden, 2003 55 Usage Component Index 28 Quality of the legal system, 2003 45 Individual Usage 19 Laws relating to ICT, 2003 23 Business Usage 35 Competition in the ISP sector, 2003 59 Government Usage 54 Foreign ownership restrictions, 2003 90 Personal computers (per 1,000 inhabitants), 2001 21 Efficiency of the tax system, 2003 39 ISDN subscribers (per 1,000 inhabitants), 2001 14 Cable television subscribers (per 1,000 inhabitants), 2001 17 Freedom of the press, 2003 61 Internet users (per 1,000 inhabitants), 2001 22 Overall infrastructure quality, 2003 36 Computers installed in businesses (per 1,000 inhabitants), 2002 27 Waiting time for telephone lines (years), 2000 29 Firm-level technology absorption, 2003 46 Telephone mainlines (per 1,000 inhabitants), 2001 29 Prevalence of foreign technology licensing, 2003 60 Public pay telephones (per 1,000 inhabitants), 2001 57 Government success in ICT promotion, 2003 55 Internet servers (per 1,000,000 inhabitants), 2001 19 Government online services, 2003 54 South Africa.za Key Indicators Networked Readiness Index Rank 37 Population, 2002 45,454,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 4,895,000 2002­2003 (82 countries) 36 growth (%) 1999­2002 -11% 2001­2002 (75 countries) 40 Cellular mobile telephone subscribers, 2002 12,081,000 growth (%) 1999­2002 133% Readiness Component Index 46 Individual Readiness Personal computers, 2002 3,300,000 67 growth (%) 1999­2002 27% Business Readiness 33 Internet users (estimated), 2002 3,100,000 Government Readiness 44 growth (%) 1999­2002 70% Public expenditure on education (per capita), 2000 51 Adult illiteracy (%), 2001 70 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 65 Radios (per 1,000 inhabitants), 2001 or most recent available 64 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 72 33 Households online (as % of households with computers), 2002 42 Market Environment 45 Quality of math and science education, 2003 86 Political and Regulatory Environment 23 Affordability of local fixed line calls (as % of per capita GDP), 2001 57 Infrastructure Environment 43 Affordability of Internet telephone access (as % of per capita GDP), 2001 29 195 State of cluster development, 2003 28 Affordability of Internet service provider fees (as % of per capita GDP), 2001 64 Venture capital availability, 2003 32 Ease of obtaining telephone lines, 2003 66 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 64 Subsidies for firm-level R&D, 2003 39 Extent of staff training, 2003 25 Quality of scientific research institutions, 2003 24 Country Quality of business schools, 2003 18 2 Availability of scientists and engineers, 2003 74 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 42 artP Brain drain, 2003 67 Government prioritization of ICT, 2003 35 Utility patents granted (per 1,000,000 inhabitants), 2002 31 Government online presence, 2003 54 ICT manufactured exports (per capita), 2001 51 Government procurement of ICT, 2003 38 ICT service exports (per capita), 2001 78 Overall administrative burden, 2003 48 Usage Component Index 33 Quality of the legal system, 2003 15 Individual Usage 57 Laws relating to ICT, 2003 24 Business Usage 24 Competition in the ISP sector, 2003 50 Government Usage 27 Foreign ownership restrictions, 2003 30 Personal computers (per 1,000 inhabitants), 2001 47 Efficiency of the tax system, 2003 28 ISDN subscribers (per 1,000 inhabitants), 2001 59 Cable television subscribers (per 1,000 inhabitants), 2001 101 Freedom of the press, 2003 28 Internet users (per 1,000 inhabitants), 2001 46 Overall infrastructure quality, 2003 19 Computers installed in businesses (per 1,000 inhabitants), 2002 26 Waiting time for telephone lines (years), 2000 60 Firm-level technology absorption, 2003 39 Telephone mainlines (per 1,000 inhabitants), 2001 60 Prevalence of foreign technology licensing, 2003 4 Public pay telephones (per 1,000 inhabitants), 2001 23 Government success in ICT promotion, 2003 34 Internet servers (per 1,000,000 inhabitants), 2001 36 Government online services, 2003 29 Spain.es Key Indicators Networked Readiness Index Rank 29 Population, 2002 40,683,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 18,705,600 2002­2003 (82 countries) 25 growth (%) 1999­2002 14% 2001­2002 (75 countries) 26 Cellular mobile telephone subscribers, 2002 33,475,000 growth (%) 1999­2002 123% Readiness Component Index 24 Personal computers, 2001 6,800,000 Individual Readiness 29 growth (%) 1999­2001 42% Business Readiness 22 Internet users (estimated), 2002 7,856,000 Government Readiness 25 growth (%) 1999­2002 178% Public expenditure on education (per capita), 2000 24 Adult illiteracy (%), 2001 34 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 14 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 65 Environment Component Index Television sets (per 1,000 inhabitants), 2001 30 15 Households online (as % of households with computers), 2002 48 Market Environment 25 Quality of math and science education, 2003 33 Political and Regulatory Environment 35 Affordability of local fixed line calls (as % of per capita GDP), 2001 15 196 Infrastructure Environment 30 Affordability of Internet telephone access (as % of per capita GDP), 2001 3 State of cluster development, 2003 35 Affordability of Internet service provider fees (as % of per capita GDP), 2001 26 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 23 36 Cost of business telephone monthly subscription (as % of per capita GDP),2002 Subsidies for firm-level R&D, 2003 14 23 Country Extent of staff training, 2003 32 Quality of scientific research institutions, 2003 51 2 Quality of business schools, 2003 11 artP Availability of scientists and engineers, 2003 30 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 29 Brain drain, 2003 4 Government prioritization of ICT, 2003 37 Utility patents granted (per 1,000,000 inhabitants), 2002 27 Government online presence, 2003 29 ICT manufactured exports (per capita), 2001 32 Government procurement of ICT, 2003 31 ICT service exports (per capita), 2001 22 Overall administrative burden, 2003 61 Usage Component Index 32 Quality of the legal system, 2003 55 Individual Usage 35 Laws relating to ICT, 2003 33 Business Usage 34 Competition in the ISP sector, 2003 48 Government Usage 41 Foreign ownership restrictions, 2003 27 Personal computers (per 1,000 inhabitants), 2001 29 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 25 19 Cable television subscribers (per 1,000 inhabitants), 2001 Freedom of the press, 2003 66 23 Internet users (per 1,000 inhabitants), 2001 32 Overall infrastructure quality, 2003 24 Computers installed in businesses (per 1,000 inhabitants), 2002 31 Waiting time for telephone lines (years), 2000 25 Firm-level technology absorption, 2003 36 Telephone mainlines (per 1,000 inhabitants), 2001 27 Prevalence of foreign technology licensing, 2003 55 Public pay telephones (per 1,000 inhabitants), 2001 68 Government success in ICT promotion, 2003 46 Internet servers (per 1,000,000 inhabitants), 2001 28 Government online services, 2003 36 Sri Lanka.lk Key Indicators Networked Readiness Index Rank 66 Population, 2002 18,947,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 883,108 2002­2003 (82 countries) 54 growth (%) 1999­2002 31% 2001­2002 (75 countries) 62 Cellular mobile telephone subscribers, 2002 931,580 growth (%) 1999­2002 263% Readiness Component Index 64 Individual Readiness 68 Personal computers, 2002 250,000 growth (%) 1999­2002 138% Business Readiness 66 Internet users (estimated), 2002 200,000 Government Readiness 60 growth (%) 1999­2002 208% Public expenditure on education (per capita), 2000 80 Adult illiteracy (%), 2001 56 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 82 Radios (per 1,000 inhabitants), 2001 or most recent available 79 RANK/102 78 Environment Component Index Television sets (per 1,000 inhabitants), 2001 66 Households online (as % of households with computers), 2002 66 Market Environment 54 Quality of math and science education, 2003 52 Political and Regulatory Environment 62 Affordability of local fixed line calls (as % of per capita GDP), 2001 70 Infrastructure Environment 73 Affordability of Internet telephone access (as % of per capita GDP), 2001 15 197 State of cluster development, 2003 29 Affordability of Internet service provider fees (as % of per capita GDP), 2001 53 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 69 40 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 71 Subsidies for firm-level R&D, 2003 47 Extent of staff training, 2003 60 Quality of scientific research institutions, 2003 56 Country Quality of business schools, 2003 52 2 Availability of scientists and engineers, 2003 59 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 77 artP Brain drain, 2003 86 Government prioritization of ICT, 2003 47 Utility patents granted (per 1,000,000 inhabitants), 2002 65 Government online presence, 2003 62 ICT manufactured exports (per capita), 2001 40 Government procurement of ICT, 2003 65 ICT service exports (per capita), 2001 70 Overall administrative burden, 2003 44 Usage Component Index 71 Quality of the legal system, 2003 66 Individual Usage 90 Laws relating to ICT, 2003 69 Business Usage 67 Competition in the ISP sector, 2003 44 Government Usage 62 Foreign ownership restrictions, 2003 56 Personal computers (per 1,000 inhabitants), 2001 84 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 30 77 Cable television subscribers (per 1,000 inhabitants), 2001 Freedom of the press, 2003 90 83 Internet users (per 1,000 inhabitants), 2001 82 Overall infrastructure quality, 2003 67 Computers installed in businesses (per 1,000 inhabitants), 2002 100 Waiting time for telephone lines (years), 2000 69 Firm-level technology absorption, 2003 62 Telephone mainlines (per 1,000 inhabitants), 2001 76 Prevalence of foreign technology licensing, 2003 44 Public pay telephones (per 1,000 inhabitants), 2001 81 Government success in ICT promotion, 2003 44 Internet servers (per 1,000,000 inhabitants), 2001 77 Government online services, 2003 68 Sweden.se Key Indicators Networked Readiness Index Rank 4 Population, 2002 8,943,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 6,441,000 2002­2003 (82 countries) 4 growth (%) 1999­2002 -1% 2001­2002 (75 countries) 4 Cellular mobile telephone subscribers, 2002 7,915,000 growth (%) 1999­2002 53% Readiness Component Index 2 Personal computers, 2001 5,000,000 Individual Readiness 2 growth (%) 1999­2001 25% Business Readiness 2 Internet users (estimated), 2002 5,125,000 Government Readiness 13 growth (%) 1999­2002 40% Public expenditure on education (per capita), 2000 3 Adult illiteracy (%), 2001 17 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 5 Radios (per 1,000 inhabitants), 2001 or most recent available 2 RANK/102 Environment Component Index 6 Television sets (per 1,000 inhabitants), 2001 1 Households online (as % of households with computers), 2002 2 Market Environment 9 Quality of math and science education, 2003 21 Political and Regulatory Environment 11 Affordability of local fixed line calls (as % of per capita GDP), 2001 13 198 Infrastructure Environment 11 Affordability of Internet telephone access (as % of per capita GDP), 2001 74 State of cluster development, 2003 15 Affordability of Internet service provider fees (as % of per capita GDP), 2001 1 Profiles Venture capital availability, 2003 7 Ease of obtaining telephone lines, 2003 7 Cost of business telephone monthly subscription (as % of per capita GDP),2002 17 Subsidies for firm-level R&D, 2003 30 Country Extent of staff training, 2003 3 Quality of scientific research institutions, 2003 6 2 Quality of business schools, 2003 7 artP Availability of scientists and engineers, 2003 10 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 3 Brain drain, 2003 11 Government prioritization of ICT, 2003 14 Utility patents granted (per 1,000,000 inhabitants), 2002 4 Government online presence, 2003 17 ICT manufactured exports (per capita), 2001 11 Government procurement of ICT, 2003 24 ICT service exports (per capita), 2001 8 Overall administrative burden, 2003 11 Usage Component Index 5 Quality of the legal system, 2003 9 Individual Usage 7 Laws relating to ICT, 2003 11 Business Usage 4 Competition in the ISP sector, 2003 12 Government Usage 11 Foreign ownership restrictions, 2003 6 Personal computers (per 1,000 inhabitants), 2001 3 Efficiency of the tax system, 2003 67 ISDN subscribers (per 1,000 inhabitants), 2001 15 Cable television subscribers (per 1,000 inhabitants), 2001 9 Freedom of the press, 2003 2 Internet users (per 1,000 inhabitants), 2001 3 Overall infrastructure quality, 2003 7 Computers installed in businesses (per 1,000 inhabitants), 2002 3 Waiting time for telephone lines (years), 2000 1 Firm-level technology absorption, 2003 3 Telephone mainlines (per 1,000 inhabitants), 2001 17 Prevalence of foreign technology licensing, 2003 63 Public pay telephones (per 1,000 inhabitants), 2001 26 Government success in ICT promotion, 2003 19 Internet servers (per 1,000,000 inhabitants), 2001 9 Government online services, 2003 11 Switzerland.ch Key Indicators Networked Readiness Index Rank 7 Population, 2002 7,281,270 2003­2004 (102 countries) Main telephone lines in operation, 2002 5,335,000 2002­2003 (82 countries) 13 growth (%) 1999­2002 5% 2001­2002 (75 countries) 16 Cellular mobile telephone subscribers, 2002 5,734,000 growth (%) 1999­2002 88% Readiness Component Index 13 Individual Readiness Personal computers, 2001 3,900,000 10 growth (%) 1999­2001 18% Business Readiness 5 Internet users (estimated), 2002 2,375,000 Government Readiness 33 growth (%) 1999­2002 61% Public expenditure on education (per capita), 2000 4 Adult illiteracy (%), 2001 17 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 34 Radios (per 1,000 inhabitants), 2001 or most recent available 12 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 20 4 Households online (as % of households with computers), 2002 10 Market Environment 10 Quality of math and science education, 2003 6 Political and Regulatory Environment 6 Affordability of local fixed line calls (as % of per capita GDP), 2001 9 Infrastructure Environment 3 Affordability of Internet telephone access (as % of per capita GDP), 2001 75 199 State of cluster development, 2003 18 Affordability of Internet service provider fees (as % of per capita GDP), 2001 7 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 3 26 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 7 Subsidies for firm-level R&D, 2003 41 Extent of staff training, 2003 2 Quality of scientific research institutions, 2003 3 Country Quality of business schools, 2003 4 2 Availability of scientists and engineers, 2003 7 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 7 artP Brain drain, 2003 7 Government prioritization of ICT, 2003 39 Utility patents granted (per 1,000,000 inhabitants), 2002 5 Government online presence, 2003 42 ICT manufactured exports (per capita), 2001 6 Government procurement of ICT, 2003 20 ICT service exports (per capita), 2001 13 Overall administrative burden, 2003 4 Usage Component Index 7 Quality of the legal system, 2003 12 Individual Usage 4 Laws relating to ICT, 2003 25 Business Usage 6 Competition in the ISP sector, 2003 15 Government Usage 31 Foreign ownership restrictions, 2003 36 Personal computers (per 1,000 inhabitants), 2001 5 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 3 16 Cable television subscribers (per 1,000 inhabitants), 2001 2 Freedom of the press, 2003 10 Internet users (per 1,000 inhabitants), 2001 20 Overall infrastructure quality, 2003 2 Computers installed in businesses (per 1,000 inhabitants), 2002 5 Waiting time for telephone lines (years), 2000 1 Firm-level technology absorption, 2003 9 Telephone mainlines (per 1,000 inhabitants), 2001 2 Prevalence of foreign technology licensing, 2003 58 Public pay telephones (per 1,000 inhabitants), 2001 14 Government success in ICT promotion, 2003 28 Internet servers (per 1,000,000 inhabitants), 2001 7 Government online services, 2003 33 Taiwan.tw Key Indicators Networked Readiness Index Rank 17 Population, 2002 22,457,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 13,099,420 2002­2003 (82 countries) 9 growth (%) 1999­2002 9% 2001­2002 (75 countries) 15 Cellular mobile telephone subscribers, 2002 23,905,410 growth (%) 1999­2002 107% Readiness Component Index 17 Personal computers, 2002 8,887,100 Individual Readiness 17 growth (%) 1999­2002 33% Business Readiness 19 Internet users (estimated), 2002 8,590,000 Government Readiness 12 growth (%) 1999­2002 79% Public expenditure on education (per capita), 2000 26 Adult illiteracy (%), 2001 46 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 3 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 55 Environment Component Index Television sets (per 1,000 inhabitants), 2001 14 8 Households online (as % of households with computers), 2002 27 Market Environment 6 Quality of math and science education, 2003 12 Political and Regulatory Environment 16 Affordability of local fixed line calls (as % of per capita GDP), 2001 31 200 Infrastructure Environment 10 Affordability of Internet telephone access (as % of per capita GDP), 2001 59 State of cluster development, 2003 3 Affordability of Internet service provider fees (as % of per capita GDP), 2001 32 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 28 18 Cost of business telephone monthly subscription (as % of per capita GDP),2002 21 Subsidies for firm-level R&D, 2003 2 19 Country Extent of staff training, 2003 Quality of scientific research institutions, 2003 18 2 Quality of business schools, 2003 29 artP Availability of scientists and engineers, 2003 17 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 18 Brain drain, 2003 16 Government prioritization of ICT, 2003 7 Utility patents granted (per 1,000,000 inhabitants), 2002 3 Government online presence, 2003 48 ICT manufactured exports (per capita), 2001 34 Government procurement of ICT, 2003 3 ICT service exports (per capita), 2001 34 Overall administrative burden, 2003 7 Usage Component Index 22 Quality of the legal system, 2003 37 Individual Usage 27 Laws relating to ICT, 2003 17 Business Usage 21 Competition in the ISP sector, 2003 23 Government Usage 6 Foreign ownership restrictions, 2003 58 Personal computers (per 1,000 inhabitants), 2001 25 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 45 11 Cable television subscribers (per 1,000 inhabitants), 2001 22 Freedom of the press, 2003 44 Internet users (per 1,000 inhabitants), 2001 30 Overall infrastructure quality, 2003 27 Computers installed in businesses (per 1,000 inhabitants), 2002 28 Waiting time for telephone lines (years), 2000 36 Firm-level technology absorption, 2003 8 Telephone mainlines (per 1,000 inhabitants), 2001 1 Prevalence of foreign technology licensing, 2003 14 Public pay telephones (per 1,000 inhabitants), 2001 12 Government success in ICT promotion, 2003 6 Internet servers (per 1,000,000 inhabitants), 2001 27 Government online services, 2003 11 Tanzania.tz Key Indicators Networked Readiness Index Rank 71 Population, 2002 34,569,230 2003­2004 (102 countries) Main telephone lines in operation, 2001 148,464 growth (%) 1999­2001 -1% Cellular mobile telephone subscribers, 2001 426,964 growth (%) 1999­2001 738% Readiness Component Index 76 Personal computers, 2001 120,000 Individual Readiness 94 growth (%) 1999­2001 50% Business Readiness 84 Internet users (estimated), 2001 100,000 Government Readiness 36 growth (%) 1999­2001 300% Public expenditure on education (per capita), 2000 98 Adult illiteracy (%), 2001 79 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 99 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 52 Environment Component Index 65 Television sets (per 1,000 inhabitants), 2001 87 Households online (as % of households with computers), 2002 79 Market Environment 64 Quality of math and science education, 2003 74 Political and Regulatory Environment 52 Affordability of local fixed line calls (as % of per capita GDP), 2001 97 Infrastructure Environment 76 Affordability of Internet telephone access (as % of per capita GDP), 2001 98 201 State of cluster development, 2003 70 Affordability of Internet service provider fees (as % of per capita GDP), 2001 99 Venture capital availability, 2003 70 Ease of obtaining telephone lines, 2003 76 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 96 Subsidies for firm-level R&D, 2003 56 Extent of staff training, 2003 73 Quality of scientific research institutions, 2003 32 Country Quality of business schools, 2003 81 2 Availability of scientists and engineers, 2003 73 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 68 artP Brain drain, 2003 64 Government prioritization of ICT, 2003 28 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 53 ICT manufactured exports (per capita), 2001 94 Government procurement of ICT, 2003 17 ICT service exports (per capita), 2001 95 Overall administrative burden, 2003 33 Usage Component Index 65 Quality of the legal system, 2003 38 Individual Usage 91 Laws relating to ICT, 2003 55 Business Usage 58 Competition in the ISP sector, 2003 56 Government Usage 56 Foreign ownership restrictions, 2003 52 Personal computers (per 1,000 inhabitants), 2001 93 Efficiency of the tax system, 2003 55 ISDN subscribers (per 1,000 inhabitants), 2001 90 Cable television subscribers (per 1,000 inhabitants), 2001 96 Freedom of the press, 2003 80 Internet users (per 1,000 inhabitants), 2001 81 Overall infrastructure quality, 2003 61 Computers installed in businesses (per 1,000 inhabitants), 2002 97 Waiting time for telephone lines (years), 2000 62 Firm-level technology absorption, 2003 50 Telephone mainlines (per 1,000 inhabitants), 2001 95 Prevalence of foreign technology licensing, 2003 35 Public pay telephones (per 1,000 inhabitants), 2001 99 Government success in ICT promotion, 2003 27 Internet servers (per 1,000,000 inhabitants), 2001 89 Government online services, 2003 74 Thailand.th Key Indicators Networked Readiness Index Rank 38 Population, 2002 61,887,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 6,499,842 2002­2003 (82 countries) 41 growth (%) 1999­2002 25% 2001­2002 (75 countries) 43 Cellular mobile telephone subscribers, 2002 16,117,000 growth (%) 1999­2002 589% Readiness Component Index 37 44 Personal computers, 2002 2,461,000 Individual Readiness growth (%) 1999­2002 78% Business Readiness 44 Internet users (estimated), 2002 4,800,000 Government Readiness 22 growth (%) 1999­2002 269% Public expenditure on education (per capita), 2000 55 Adult illiteracy (%), 2001 42 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 41 Radios (per 1,000 inhabitants), 2001 or most recent available 76 RANK/102 48 Environment Component Index Television sets (per 1,000 inhabitants), 2001 41 Households online (as % of households with computers), 2002 33 Market Environment 28 Quality of math and science education, 2003 42 Political and Regulatory Environment 38 Affordability of local fixed line calls (as % of per capita GDP), 2001 65 202 Infrastructure Environment 54 Affordability of Internet telephone access (as % of per capita GDP), 2001 50 State of cluster development, 2003 10 Affordability of Internet service provider fees (as % of per capita GDP), 2001 42 41 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 39 Cost of business telephone monthly subscription (as % of per capita GDP),2002 33 Subsidies for firm-level R&D, 2003 25 34 Country Extent of staff training, 2003 Quality of scientific research institutions, 2003 43 2 Quality of business schools, 2003 36 artP Availability of scientists and engineers, 2003 63 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 90 Brain drain, 2003 12 Government prioritization of ICT, 2003 16 Utility patents granted (per 1,000,000 inhabitants), 2002 46 Government online presence, 2003 37 ICT manufactured exports (per capita), 2001 30 Government procurement of ICT, 2003 36 ICT service exports (per capita), 2001 53 Overall administrative burden, 2003 25 Usage Component Index 40 Quality of the legal system, 2003 34 Individual Usage 65 Laws relating to ICT, 2003 43 Business Usage 33 Competition in the ISP sector, 2003 29 Government Usage 24 Foreign ownership restrictions, 2003 75 Personal computers (per 1,000 inhabitants), 2001 64 Efficiency of the tax system, 2003 69 27 ISDN subscribers (per 1,000 inhabitants), 2001 Cable television subscribers (per 1,000 inhabitants), 2001 82 Freedom of the press, 2003 62 Internet users (per 1,000 inhabitants), 2001 48 Overall infrastructure quality, 2003 29 Computers installed in businesses (per 1,000 inhabitants), 2002 49 Waiting time for telephone lines (years), 2000 66 Firm-level technology absorption, 2003 30 Telephone mainlines (per 1,000 inhabitants), 2001 66 Prevalence of foreign technology licensing, 2003 5 Public pay telephones (per 1,000 inhabitants), 2001 41 Government success in ICT promotion, 2003 14 Internet servers (per 1,000,000 inhabitants), 2001 57 Government online services, 2003 40 Trinidad and Tobago.tt Key Indicators Networked Readiness Index Rank 52 Population, 2002 1,301,500 2003­2004 (102 countries) Main telephone lines in operation, 2002 325,054 2002­2003 (82 countries) 58 growth (%) 1999­2002 17% 2001­2002 (75 countries) 46 Cellular mobile telephone subscribers, 2002 361,911 growth (%) 1999­2002 836% Readiness Component Index 65 Individual Readiness Personal computers, 2002 103,500 48 growth (%) 1999­2002 48% Business Readiness 68 Internet users (estimated), 2002 138,000 Government Readiness 78 growth (%) 1999­2002 84% Public expenditure on education (per capita), 2000 34 Adult illiteracy (%), 2001 27 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 80 Radios (per 1,000 inhabitants), 2001 or most recent available 39 RANK/102 Environment Component Index 49 Television sets (per 1,000 inhabitants), 2001 42 Households online (as % of households with computers), 2002 40 Market Environment 56 Quality of math and science education, 2003 49 Political and Regulatory Environment 47 Affordability of local fixed line calls (as % of per capita GDP), 2001 27 Infrastructure Environment 50 Affordability of Internet telephone access (as % of per capita GDP), 2001 12 203 State of cluster development, 2003 53 Affordability of Internet service provider fees (as % of per capita GDP), 2001 4 Venture capital availability, 2003 60 Ease of obtaining telephone lines, 2003 79 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 63 Subsidies for firm-level R&D, 2003 65 Extent of staff training, 2003 44 Quality of scientific research institutions, 2003 61 Country Quality of business schools, 2003 43 2 Availability of scientists and engineers, 2003 56 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 82 artP Brain drain, 2003 48 Government prioritization of ICT, 2003 76 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 81 ICT manufactured exports (per capita), 2001 62 Government procurement of ICT, 2003 39 ICT service exports (per capita), 2001 36 Overall administrative burden, 2003 42 Usage Component Index 55 Quality of the legal system, 2003 24 Individual Usage 44 Laws relating to ICT, 2003 80 Business Usage 47 Competition in the ISP sector, 2003 98 Government Usage 70 Foreign ownership restrictions, 2003 64 Personal computers (per 1,000 inhabitants), 2001 45 Efficiency of the tax system, 2003 14 ISDN subscribers (per 1,000 inhabitants), 2001 72 Cable television subscribers (per 1,000 inhabitants), 2001 33 Freedom of the press, 2003 47 Internet users (per 1,000 inhabitants), 2001 41 Overall infrastructure quality, 2003 41 Computers installed in businesses (per 1,000 inhabitants), 2002 43 Waiting time for telephone lines (years), 2000 45 Firm-level technology absorption, 2003 47 Telephone mainlines (per 1,000 inhabitants), 2001 45 Prevalence of foreign technology licensing, 2003 42 Public pay telephones (per 1,000 inhabitants), 2001 60 Government success in ICT promotion, 2003 70 Internet servers (per 1,000,000 inhabitants), 2001 42 Government online services, 2003 68 Tunisia.tn Key Indicators Networked Readiness Index Rank 40 Population, 2002 9,815,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 1,148,000 2002­2003 (82 countries) 34 growth (%) 1999­2002 35% Cellular mobile telephone subscribers, 2002 503,911 growth (%) 1999­2002 812% Readiness Component Index 42 Personal computers, 2002 300,000 Individual Readiness 56 growth (%) 1999­2002 107% Business Readiness 35 Internet users (estimated), 2002 505,500 Government Readiness 37 growth (%) 1999­2002 237% Public expenditure on education (per capita), 2000 49 Adult illiteracy (%), 2001 83 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 57 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 90 Environment Component Index Television sets (per 1,000 inhabitants), 2001 64 36 Households online (as % of households with computers), 2002 60 Market Environment 29 Quality of math and science education, 2003 10 Political and Regulatory Environment 34 Affordability of local fixed line calls (as % of per capita GDP), 2001 37 204 Infrastructure Environment 52 Affordability of Internet telephone access (as % of per capita GDP), 2001 19 State of cluster development, 2003 63 Affordability of Internet service provider fees (as % of per capita GDP), 2001 61 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 49 25 Cost of business telephone monthly subscription (as % of per capita GDP),2002 25 Subsidies for firm-level R&D, 2003 7 Country Extent of staff training, 2003 26 Quality of scientific research institutions, 2003 45 2 Quality of business schools, 2003 24 artP Availability of scientists and engineers, 2003 13 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 64 Brain drain, 2003 41 Government prioritization of ICT, 2003 5 Utility patents granted (per 1,000,000 inhabitants), 2002 62 Government online presence, 2003 85 ICT manufactured exports (per capita), 2001 58 Government procurement of ICT, 2003 5 ICT service exports (per capita), 2001 52 Overall administrative burden, 2003 10 Usage Component Index 45 Quality of the legal system, 2003 33 Individual Usage 56 Laws relating to ICT, 2003 19 Business Usage 46 Competition in the ISP sector, 2003 60 Government Usage 36 Foreign ownership restrictions, 2003 40 Personal computers (per 1,000 inhabitants), 2001 65 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 78 18 Cable television subscribers (per 1,000 inhabitants), 2001 48 Freedom of the press, 2003 87 Internet users (per 1,000 inhabitants), 2001 53 Overall infrastructure quality, 2003 33 Computers installed in businesses (per 1,000 inhabitants), 2002 68 Waiting time for telephone lines (years), 2000 58 Firm-level technology absorption, 2003 23 Telephone mainlines (per 1,000 inhabitants), 2001 62 Prevalence of foreign technology licensing, 2003 29 Public pay telephones (per 1,000 inhabitants), 2001 40 Government success in ICT promotion, 2003 3 Internet servers (per 1,000,000 inhabitants), 2001 75 Government online services, 2003 81 Turkey.tr Key Indicators Networked Readiness Index Rank 56 Population, 2002 67,272,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 18,914,860 2002­2003 (82 countries) 50 growth (%) 1999­2002 5% 2001­2002 (75 countries) 41 Cellular mobile telephone subscribers, 2002 23,374,360 growth (%) 1999­2002 188% Readiness Component Index 61 Individual Readiness 58 Personal computers, 2001 2,700,000 growth (%) 1999­2001 23% Business Readiness 56 Internet users (estimated), 2002 4,900,000 Government Readiness 66 growth (%) 1999­2002 227% Public expenditure on education (per capita), 2000 57 Adult illiteracy (%), 2001 71 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 66 Radios (per 1,000 inhabitants), 2001 or most recent available 44 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 45 58 Households online (as % of households with computers), 2002 35 Market Environment 57 Quality of math and science education, 2003 54 Political and Regulatory Environment 73 Affordability of local fixed line calls (as % of per capita GDP), 2001 68 Infrastructure Environment 55 Affordability of Internet telephone access (as % of per capita GDP), 2001 90 205 State of cluster development, 2003 32 Affordability of Internet service provider fees (as % of per capita GDP), 2001 60 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 60 84 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 39 Subsidies for firm-level R&D, 2003 40 Extent of staff training, 2003 58 Quality of scientific research institutions, 2003 79 Country Quality of business schools, 2003 55 2 Availability of scientists and engineers, 2003 47 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 66 artP Brain drain, 2003 52 Government prioritization of ICT, 2003 90 Utility patents granted (per 1,000,000 inhabitants), 2002 56 Government online presence, 2003 45 ICT manufactured exports (per capita), 2001 57 Government procurement of ICT, 2003 83 ICT service exports (per capita), 2001 45 Overall administrative burden, 2003 66 Usage Component Index 56 Quality of the legal system, 2003 57 Individual Usage 63 Laws relating to ICT, 2003 86 Business Usage 49 Competition in the ISP sector, 2003 54 Government Usage 45 Foreign ownership restrictions, 2003 66 Personal computers (per 1,000 inhabitants), 2001 56 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 70 94 Cable television subscribers (per 1,000 inhabitants), 2001 70 Freedom of the press, 2003 70 Internet users (per 1,000 inhabitants), 2001 56 Overall infrastructure quality, 2003 54 Computers installed in businesses (per 1,000 inhabitants), 2002 52 Waiting time for telephone lines (years), 2000 42 Firm-level technology absorption, 2003 54 Telephone mainlines (per 1,000 inhabitants), 2001 40 Prevalence of foreign technology licensing, 2003 23 Public pay telephones (per 1,000 inhabitants), 2001 79 Government success in ICT promotion, 2003 87 Internet servers (per 1,000,000 inhabitants), 2001 51 Government online services, 2003 20 Uganda.ug Key Indicators Networked Readiness Index Rank 80 Population, 2002 24,700,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 54,976 growth (%) 1999­2002 -4% Cellular mobile telephone subscribers, 2002 393,310 growth (%) 1999­2002 598% Readiness Component Index 90 Personal computers, 2001 70,000 Individual Readiness 97 growth (%) 1999­2001 27% Business Readiness 93 Internet users (estimated), 2001 60,000 Government Readiness 55 growth (%) 1999­2001 140% Public expenditure on education (per capita), 2000 97 Adult illiteracy (%), 2001 85 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 91 Radios (per 1,000 inhabitants), 2001 or most recent available 93 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 91 78 Households online (as % of households with computers), 2002 81 Market Environment 62 Quality of math and science education, 2003 68 Political and Regulatory Environment 67 Affordability of local fixed line calls (as % of per capita GDP), 2001 102 206 Infrastructure Environment 88 Affordability of Internet telephone access (as % of per capita GDP), 2001 99 State of cluster development, 2003 51 Affordability of Internet service provider fees (as % of per capita GDP), 2001 93 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 73 57 Cost of business telephone monthly subscription (as % of per capita GDP),2002 100 Subsidies for firm-level R&D, 2003 48 77 Country Extent of staff training, 2003 Quality of scientific research institutions, 2003 33 2 Quality of business schools, 2003 70 artP Availability of scientists and engineers, 2003 77 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 96 Brain drain, 2003 83 Government prioritization of ICT, 2003 39 Utility patents granted (per 1,000,000 inhabitants), 2002 66 Government online presence, 2003 70 ICT manufactured exports (per capita), 2001 90 Government procurement of ICT, 2003 41 ICT service exports (per capita), 2001 101 Overall administrative burden, 2003 41 Usage Component Index 64 Quality of the legal system, 2003 58 Individual Usage 95 Laws relating to ICT, 2003 66 Business Usage 65 Competition in the ISP sector, 2003 53 Government Usage 46 Foreign ownership restrictions, 2003 32 Personal computers (per 1,000 inhabitants), 2001 95 97 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 64 Cable television subscribers (per 1,000 inhabitants), 2001 96 Freedom of the press, 2003 93 Internet users (per 1,000 inhabitants), 2001 92 Overall infrastructure quality, 2003 80 Computers installed in businesses (per 1,000 inhabitants), 2002 92 Waiting time for telephone lines (years), 2000 80 Firm-level technology absorption, 2003 60 Telephone mainlines (per 1,000 inhabitants), 2001 101 Prevalence of foreign technology licensing, 2003 40 Public pay telephones (per 1,000 inhabitants), 2001 94 Government success in ICT promotion, 2003 25 Internet servers (per 1,000,000 inhabitants), 2001 86 Government online services, 2003 59 Ukraine.ua Key Indicators Networked Readiness Index Rank 78 Population, 2002 50,137,000 2003­2004 (102 countries) Main telephone lines in operation, 2001 10,669,600 2002­2003 (82 countries) 70 growth (%) 1999­2001 6% 2001­2002 (75 countries) 66 Cellular mobile telephone subscribers, 2001 2,224,600 growth (%) 1999­2001 927% Readiness Component Index 58 Individual Readiness Personal computers, 2001 920,000 36 growth (%) 1999­2001 15% Business Readiness 72 Internet users (estimated), 2001 600,000 Government Readiness 73 growth (%) 1999­2001 200% Public expenditure on education (per capita), 2000 75 Adult illiteracy (%), 2001 13 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 33 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 18 Environment Component Index Television sets (per 1,000 inhabitants), 2001 30 93 Households online (as % of households with computers), 2002 47 Market Environment 67 Quality of math and science education, 2003 27 Political and Regulatory Environment 98 Affordability of local fixed line calls (as % of per capita GDP), 2001 79 Infrastructure Environment 82 Affordability of Internet telephone access (as % of per capita GDP), 2001 11 207 State of cluster development, 2003 88 Affordability of Internet service provider fees (as % of per capita GDP), 2001 57 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 80 73 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 91 Subsidies for firm-level R&D, 2003 66 Extent of staff training, 2003 95 Quality of scientific research institutions, 2003 57 Country Quality of business schools, 2003 65 2 Availability of scientists and engineers, 2003 45 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 26 artP Brain drain, 2003 74 Government prioritization of ICT, 2003 69 Utility patents granted (per 1,000,000 inhabitants), 2002 47 Government online presence, 2003 66 ICT manufactured exports (per capita), 2001 40 Government procurement of ICT, 2003 82 ICT service exports (per capita), 2001 84 Overall administrative burden, 2003 72 Usage Component Index 85 Quality of the legal system, 2003 83 Individual Usage 60 Laws relating to ICT, 2003 85 Business Usage 92 Competition in the ISP sector, 2003 75 Government Usage 85 Foreign ownership restrictions, 2003 89 Personal computers (per 1,000 inhabitants), 2001 73 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 63 98 Cable television subscribers (per 1,000 inhabitants), 2001 49 Freedom of the press, 2003 101 Internet users (per 1,000 inhabitants), 2001 75 Overall infrastructure quality, 2003 59 Computers installed in businesses (per 1,000 inhabitants), 2002 72 Waiting time for telephone lines (years), 2000 97 Firm-level technology absorption, 2003 67 Telephone mainlines (per 1,000 inhabitants), 2001 51 Prevalence of foreign technology licensing, 2003 94 Public pay telephones (per 1,000 inhabitants), 2001 49 Government success in ICT promotion, 2003 82 Internet servers (per 1,000,000 inhabitants), 2001 67 Government online services, 2003 74 United Kingdom.uk Key Indicators Networked Readiness Index Rank 15 Population, 2002 59,088,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 35,145,000 2002­2003 (82 countries) 7 growth (%) 1999­2002 3% 2001­2002 (75 countries) 10 Cellular mobile telephone subscribers, 2002 49,921,000 growth (%) 1999­2002 84% Readiness Component Index 10 Personal computers, 2001 22,000,000 Individual Readiness 7 growth (%) 1999­2001 22% Business Readiness 14 Internet users (estimated), 2002 24,000,000 Government Readiness 10 growth (%) 1999­2002 92% Public expenditure on education (per capita), 2000 16 Adult illiteracy (%), 2001 17 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 13 Radios (per 1,000 inhabitants), 2001 or most recent available 6 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 2 14 Households online (as % of households with computers), 2002 16 Market Environment 13 Quality of math and science education, 2003 43 Political and Regulatory Environment 9 Affordability of local fixed line calls (as % of per capita GDP), 2001 32 208 Infrastructure Environment 19 Affordability of Internet telephone access (as % of per capita GDP), 2001 67 State of cluster development, 2003 14 Affordability of Internet service provider fees (as % of per capita GDP), 2001 13 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 22 2 Cost of business telephone monthly subscription (as % of per capita GDP),2002 26 Subsidies for firm-level R&D, 2003 19 Country Extent of staff training, 2003 11 Quality of scientific research institutions, 2003 5 2 Quality of business schools, 2003 5 artP Availability of scientists and engineers, 2003 37 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 16 Brain drain, 2003 13 Government prioritization of ICT, 2003 25 Utility patents granted (per 1,000,000 inhabitants), 2002 18 Government online presence, 2003 5 ICT manufactured exports (per capita), 2001 13 Government procurement of ICT, 2003 42 ICT service exports (per capita), 2001 14 Overall administrative burden, 2003 38 Usage Component Index 21 Quality of the legal system, 2003 10 Individual Usage 21 Laws relating to ICT, 2003 8 Business Usage 20 Competition in the ISP sector, 2003 8 Government Usage 18 Foreign ownership restrictions, 2003 1 Personal computers (per 1,000 inhabitants), 2001 17 22 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 35 Cable television subscribers (per 1,000 inhabitants), 2001 46 Freedom of the press, 2003 15 Internet users (per 1,000 inhabitants), 2001 13 Overall infrastructure quality, 2003 26 Computers installed in businesses (per 1,000 inhabitants), 2002 17 Waiting time for telephone lines (years), 2000 1 Firm-level technology absorption, 2003 34 Telephone mainlines (per 1,000 inhabitants), 2001 11 Prevalence of foreign technology licensing, 2003 57 Public pay telephones (per 1,000 inhabitants), 2001 53 Government success in ICT promotion, 2003 47 Internet servers (per 1,000,000 inhabitants), 2001 10 Government online services, 2003 8 United States.us Key Indicators Networked Readiness Index Rank Population, 2002 288,368,700 2003­2004 (102 countries) 1 Main telephone lines in operation, 2002 190,000,000 2002­2003 (82 countries) 2 growth (%) 1999­2002 4% 2001­2002 (75 countries) 1 Cellular mobile telephone subscribers, 2002 140,766,800 growth (%) 1999­2002 64% Readiness Component Index 3 Personal computers, 2001 178,000,000 Individual Readiness 5 growth (%) 1999­2001 26% Business Readiness 3 Internet users (estimated), 2002 155,000,000 Government Readiness 3 growth (%) 1999­2002 52% Public expenditure on education (per capita), 2000 19 Adult illiteracy (%), 2001 37 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 4 Radios (per 1,000 inhabitants), 2001 or most recent available 3 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 6 1 Households online (as % of households with computers), 2002 4 Market Environment 2 Quality of math and science education, 2003 37 Political and Regulatory Environment 8 Affordability of local fixed line calls (as % of per capita GDP), 2001 7 Infrastructure Environment 2 Affordability of Internet telephone access (as % of per capita GDP), 2001 17 209 State of cluster development, 2003 6 Affordability of Internet service provider fees (as % of per capita GDP), 2001 3 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 18 3 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 36 Subsidies for firm-level R&D, 2003 12 Extent of staff training, 2003 5 Quality of scientific research institutions, 2003 1 Country Quality of business schools, 2003 1 2 Availability of scientists and engineers, 2003 8 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 6 artP Brain drain, 2003 1 Government prioritization of ICT, 2003 15 Utility patents granted (per 1,000,000 inhabitants), 2002 1 Government online presence, 2003 4 ICT manufactured exports (per capita), 2001 21 Government procurement of ICT, 2003 10 ICT service exports (per capita), 2001 20 Overall administrative burden, 2003 19 Usage Component Index 1 Quality of the legal system, 2003 13 Individual Usage 8 Laws relating to ICT, 2003 5 Business Usage 1 Competition in the ISP sector, 2003 2 Government Usage 2 Foreign ownership restrictions, 2003 9 Personal computers (per 1,000 inhabitants), 2001 2 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 29 45 Cable television subscribers (per 1,000 inhabitants), 2001 7 Freedom of the press, 2003 7 Internet users (per 1,000 inhabitants), 2001 5 Overall infrastructure quality, 2003 8 Computers installed in businesses (per 1,000 inhabitants), 2002 1 Waiting time for telephone lines (years), 2000 1 Firm-level technology absorption, 2003 6 Telephone mainlines (per 1,000 inhabitants), 2001 6 Prevalence of foreign technology licensing, 2003 23 Public pay telephones (per 1,000 inhabitants), 2001 19 Government success in ICT promotion, 2003 18 Internet servers (per 1,000,000 inhabitants), 2001 2 Government online services, 2003 2 Uruguay.uy Key Indicators Networked Readiness Index Rank 54 Population, 2002 3,385,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 946,533 2002­2003 (82 countries) 55 growth (%) 1999­2002 6% 2001­2002 (75 countries) 37 Cellular mobile telephone subscribers, 2002 652,000 growth (%) 1999­2002 104% Readiness Component Index 53 Personal computers, 2001 370,000 Individual Readiness 42 growth (%) 1999­2001 12% Business Readiness 54 Internet users (estimated), 2001 400,000 Government Readiness 71 growth (%) 1999­2001 21% Public expenditure on education (per capita), 2000 61 Adult illiteracy (%), 2001 35 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 39 Radios (per 1,000 inhabitants), 2001 or most recent available 35 RANK/102 Environment Component Index 52 Television sets (per 1,000 inhabitants), 2001 26 Households online (as % of households with computers), 2002 53 Market Environment 81 Quality of math and science education, 2003 56 Political and Regulatory Environment 53 Affordability of local fixed line calls (as % of per capita GDP), 2001 75 210 Infrastructure Environment 41 Affordability of Internet telephone access (as % of per capita GDP), 2001 46 State of cluster development, 2003 90 Affordability of Internet service provider fees (as % of per capita GDP), 2001 63 Profiles Venture capital availability, 2003 100 Ease of obtaining telephone lines, 2003 25 Cost of business telephone monthly subscription (as % of per capita GDP),2002 56 Subsidies for firm-level R&D, 2003 84 Country Extent of staff training, 2003 84 Quality of scientific research institutions, 2003 74 2 Quality of business schools, 2003 39 artP Availability of scientists and engineers, 2003 44 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 73 Brain drain, 2003 78 Government prioritization of ICT, 2003 71 Utility patents granted (per 1,000,000 inhabitants), 2002 42 Government online presence, 2003 55 ICT manufactured exports (per capita), 2001 71 Government procurement of ICT, 2003 88 ICT service exports (per capita), 2001 65 Overall administrative burden, 2003 74 Usage Component Index 61 Quality of the legal system, 2003 31 Individual Usage 37 Laws relating to ICT, 2003 79 Business Usage 78 Competition in the ISP sector, 2003 64 Government Usage 81 Foreign ownership restrictions, 2003 71 Personal computers (per 1,000 inhabitants), 2001 36 Efficiency of the tax system, 2003 78 ISDN subscribers (per 1,000 inhabitants), 2001 58 Cable television subscribers (per 1,000 inhabitants), 2001 25 Freedom of the press, 2003 27 Internet users (per 1,000 inhabitants), 2001 38 Overall infrastructure quality, 2003 48 Computers installed in businesses (per 1,000 inhabitants), 2002 39 Waiting time for telephone lines (years), 2000 1 Firm-level technology absorption, 2003 96 Telephone mainlines (per 1,000 inhabitants), 2001 41 Prevalence of foreign technology licensing, 2003 76 Public pay telephones (per 1,000 inhabitants), 2001 32 Government success in ICT promotion, 2003 79 Internet servers (per 1,000,000 inhabitants), 2001 39 Government online services, 2003 73 Venezuela.ve Key Indicators Networked Readiness Index Rank 72 Population, 2002 25,300,000 2003­2004 (102 countries) Main telephone lines in operation, 2002 2,841,771 2002­2003 (82 countries) 66 growth (%) 1999­2002 11% 2001­2002 (75 countries) 50 Cellular mobile telephone subscribers, 2002 6,463,561 growth (%) 1999­2002 71% Readiness Component Index 62 Individual Readiness Personal computers, 2001 1,300,000 60 growth (%) 1999­2001 30% Business Readiness 63 Internet users (estimated), 2002 1,274,429 Government Readiness 63 growth (%) 1999­2002 87% Public expenditure on education (per capita), 2000 41 Adult illiteracy (%), 2001 49 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 49 Radios (per 1,000 inhabitants), 2001 or most recent available 69 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 68 81 Households online (as % of households with computers), 2002 52 Market Environment 83 Quality of math and science education, 2003 94 Political and Regulatory Environment 96 Affordability of local fixed line calls (as % of per capita GDP), 2001 53 Infrastructure Environment 59 Affordability of Internet telephone access (as % of per capita GDP), 2001 23 211 State of cluster development, 2003 80 Affordability of Internet service provider fees (as % of per capita GDP), 2001 51 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 54 93 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 74 Subsidies for firm-level R&D, 2003 85 Extent of staff training, 2003 71 Quality of scientific research institutions, 2003 77 Country Quality of business schools, 2003 50 2 Availability of scientists and engineers, 2003 67 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 76 artP Brain drain, 2003 84 Government prioritization of ICT, 2003 93 Utility patents granted (per 1,000,000 inhabitants), 2002 39 Government online presence, 2003 20 ICT manufactured exports (per capita), 2001 74 Government procurement of ICT, 2003 87 ICT service exports (per capita), 2001 83 Overall administrative burden, 2003 102 Usage Component Index 70 Quality of the legal system, 2003 101 Individual Usage 53 Laws relating to ICT, 2003 58 Business Usage 57 Competition in the ISP sector, 2003 62 Government Usage 86 Foreign ownership restrictions, 2003 76 Personal computers (per 1,000 inhabitants), 2001 49 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 34 92 Cable television subscribers (per 1,000 inhabitants), 2001 52 Freedom of the press, 2003 88 Internet users (per 1,000 inhabitants), 2001 50 Overall infrastructure quality, 2003 62 Computers installed in businesses (per 1,000 inhabitants), 2002 44 Waiting time for telephone lines (years), 2000 49 Firm-level technology absorption, 2003 74 Telephone mainlines (per 1,000 inhabitants), 2001 62 Prevalence of foreign technology licensing, 2003 50 Public pay telephones (per 1,000 inhabitants), 2001 34 Government success in ICT promotion, 2003 99 Internet servers (per 1,000,000 inhabitants), 2001 50 Government online services, 2003 47 Vietnam.vn Key Indicators Networked Readiness Index Rank 68 Population, 2002 81,248,500 2003­2004 (102 countries) Main telephone lines in operation, 2002 3,664,752 2002­2003 (82 countries) 71 growth (%) 1999­2002 74% 2001­2002 (75 countries) 74 Cellular mobile telephone subscribers, 2002 1,902,388 growth (%) 1999­2002 479% Readiness Component Index 67 Personal computers, 2002 800,000 Individual Readiness 73 growth (%) 1999­2002 60% Business Readiness 74 Internet users (estimated), 2002 1,500,000 Government Readiness 52 growth (%) 1999­2002 1,400% Public expenditure on education (per capita), 2000 86 Adult illiteracy (%), 2001 50 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 75 Radios (per 1,000 inhabitants), 2001 or most recent available 96 RANK/102 Environment Component Index Television sets (per 1,000 inhabitants), 2001 67 74 Households online (as % of households with computers), 2002 96 Market Environment 38 Quality of math and science education, 2003 57 Political and Regulatory Environment 78 Affordability of local fixed line calls (as % of per capita GDP), 2001 71 212 Infrastructure Environment 92 Affordability of Internet telephone access (as % of per capita GDP), 2001 66 State of cluster development, 2003 45 Affordability of Internet service provider fees (as % of per capita GDP), 2001 85 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 70 58 Cost of business telephone monthly subscription (as % of per capita GDP),2002 67 Subsidies for firm-level R&D, 2003 34 Country Extent of staff training, 2003 64 Quality of scientific research institutions, 2003 35 2 Quality of business schools, 2003 85 artP Availability of scientists and engineers, 2003 32 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 70 Brain drain, 2003 43 Government prioritization of ICT, 2003 34 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 84 ICT manufactured exports (per capita), 2001 85 Government procurement of ICT, 2003 11 ICT service exports (per capita), 2001 79 Overall administrative burden, 2003 40 Usage Component Index 58 Quality of the legal system, 2003 53 Individual Usage 79 Laws relating to ICT, 2003 54 Business Usage 53 Competition in the ISP sector, 2003 85 Government Usage 50 Foreign ownership restrictions, 2003 84 Personal computers (per 1,000 inhabitants), 2001 81 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 86 61 Cable television subscribers (per 1,000 inhabitants), 2001 73 Freedom of the press, 2003 97 Internet users (per 1,000 inhabitants), 2001 74 Overall infrastructure quality, 2003 76 Computers installed in businesses (per 1,000 inhabitants), 2002 75 Waiting time for telephone lines (years), 2000 85 Firm-level technology absorption, 2003 15 Telephone mainlines (per 1,000 inhabitants), 2001 79 Prevalence of foreign technology licensing, 2003 68 Public pay telephones (per 1,000 inhabitants), 2001 95 Government success in ICT promotion, 2003 15 Internet servers (per 1,000,000 inhabitants), 2001 94 Government online services, 2003 81 Zambia.zm Key Indicators Networked Readiness Index Rank Population, 2002 10,696,000 2003­2004 (102 countries) 85 Main telephone lines in operation, 2002 88,475 growth (%) 1999­2002 6% Cellular mobile telephone subscribers, 2002 139,092 growth (%) 1999­2002 393% Readiness Component Index 81 Personal computers, 2002 80,000 Individual Readiness 83 growth (%) 1999­2002 23% Business Readiness 86 Internet users (estimated), 2002 52,420 Government Readiness 75 growth (%) 1999­2002 249% Public expenditure on education (per capita), 2000 92 Adult illiteracy (%), 2001 77 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 92 Radios (per 1,000 inhabitants), 2001 or most recent available RANK/102 86 Environment Component Index Television sets (per 1,000 inhabitants), 2001 80 86 Households online (as % of households with computers), 2002 74 Market Environment 88 Quality of math and science education, 2003 69 Political and Regulatory Environment 55 Affordability of local fixed line calls (as % of per capita GDP), 2001 92 Infrastructure Environment 96 Affordability of Internet telephone access (as % of per capita GDP), 2001 79 213 State of cluster development, 2003 69 Affordability of Internet service provider fees (as % of per capita GDP), 2001 87 Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 82 86 Profiles Cost of business telephone monthly subscription (as % of per capita GDP),2002 81 Subsidies for firm-level R&D, 2003 86 Extent of staff training, 2003 81 Quality of scientific research institutions, 2003 76 Country Quality of business schools, 2003 80 2 Availability of scientists and engineers, 2003 78 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 59 artP Brain drain, 2003 99 Government prioritization of ICT, 2003 79 Utility patents granted (per 1,000,000 inhabitants), 2002 72 Government online presence, 2003 68 ICT manufactured exports (per capita), 2001 79 Government procurement of ICT, 2003 70 ICT service exports (per capita), 2001 102 Overall administrative burden, 2003 47 Usage Component Index 84 Quality of the legal system, 2003 56 Individual Usage 92 Laws relating to ICT, 2003 72 Business Usage 84 Competition in the ISP sector, 2003 78 Government Usage 74 Foreign ownership restrictions, 2003 28 Personal computers (per 1,000 inhabitants), 2001 86 Efficiency of the tax system, 2003 26 ISDN subscribers (per 1,000 inhabitants), 2001 95 Cable television subscribers (per 1,000 inhabitants), 2001 88 Freedom of the press, 2003 77 Internet users (per 1,000 inhabitants), 2001 93 Overall infrastructure quality, 2003 82 Computers installed in businesses (per 1,000 inhabitants), 2002 91 Waiting time for telephone lines (years), 2000 94 Firm-level technology absorption, 2003 88 Telephone mainlines (per 1,000 inhabitants), 2001 90 Prevalence of foreign technology licensing, 2003 77 Public pay telephones (per 1,000 inhabitants), 2001 96 Government success in ICT promotion, 2003 67 Internet servers (per 1,000,000 inhabitants), 2001 100 Government online services, 2003 74 Zimbabwe.zw Key Indicators Networked Readiness Index Rank Population, 2002 11,634,660 2003­2004 (102 countries) 95 Main telephone lines in operation, 2002 287,854 2002­2003 (82 countries) 80 growth (%) 1999­2002 20% 2001­2002 (75 countries) 70 Cellular mobile telephone subscribers, 2002 353,000 growth (%) 1999­2002 103% Readiness Component Index 91 70 Personal computers, 2002 600,000 Individual Readiness growth (%) 1999­2002 300% Business Readiness 82 Internet users (estimated), 2002 500,000 Government Readiness 101 growth (%) 1999­2002 2400% Public expenditure on education (per capita), 2000 48 Adult illiteracy (%), 2001 62 Source: Data from International Telecommunication Union Tertiary enrollment (gross %), 2001 or most recent available 86 Radios (per 1,000 inhabitants), 2001 or most recent available 59 RANK/102 76 Environment Component Index Television sets (per 1,000 inhabitants), 2001 97 Households online (as % of households with computers), 2002 61 Market Environment 80 Quality of math and science education, 2003 60 Political and Regulatory Environment 100 Affordability of local fixed line calls (as % of per capita GDP), 2001 54 214 Infrastructure Environment 95 Affordability of Internet telephone access (as % of per capita GDP), 2001 39 State of cluster development, 2003 60 Affordability of Internet service provider fees (as % of per capita GDP), 2001 84 97 Profiles Venture capital availability, 2003 Ease of obtaining telephone lines, 2003 52 Cost of business telephone monthly subscription (as % of per capita GDP),2002 59 Subsidies for firm-level R&D, 2003 76 35 Country Extent of staff training, 2003 Quality of scientific research institutions, 2003 72 2 Quality of business schools, 2003 89 artP Availability of scientists and engineers, 2003 88 Scientists and engineers in R&D (per 1,000 inhabitants), 2000 67 Brain drain, 2003 101 Government prioritization of ICT, 2003 99 Utility patents granted (per 1,000,000 inhabitants), 2002 63 Government online presence, 2003 98 ICT manufactured exports (per capita), 2001 70 Government procurement of ICT, 2003 90 ICT service exports (per capita), 2001 58 Overall administrative burden, 2003 94 Usage Component Index 93 Quality of the legal system, 2003 97 Individual Usage 78 Laws relating to ICT, 2003 82 Business Usage 70 Competition in the ISP sector, 2003 87 Government Usage 100 Foreign ownership restrictions, 2003 101 Personal computers (per 1,000 inhabitants), 2001 80 84 Efficiency of the tax system, 2003 ISDN subscribers (per 1,000 inhabitants), 2001 33 Cable television subscribers (per 1,000 inhabitants), 2001 65 Freedom of the press, 2003 102 Internet users (per 1,000 inhabitants), 2001 84 Overall infrastructure quality, 2003 63 Computers installed in businesses (per 1,000 inhabitants), 2002 87 Waiting time for telephone lines (years), 2000 102 Firm-level technology absorption, 2003 80 Telephone mainlines (per 1,000 inhabitants), 2001 86 Prevalence of foreign technology licensing, 2003 39 Public pay telephones (per 1,000 inhabitants), 2001 37 Government success in ICT promotion, 2003 97 Internet servers (per 1,000,000 inhabitants), 2001 93 Government online services, 2003 99 Part 3 Data Presentation 215 Presentation Data 3 artP The Networked Readiness Index (NRI) is defined as the degree of preparation of a nation or community to participate The Networked in and benefit from information and communication technologies (ICT) development. By looking at the overall Readiness Index: index of a country, one can get an idea of how a country compares to other countries; specifically, to countries facing Methodology similar global and ICT challenges. In calculating the NRI the overriding aim was to provide the most scientific and credible interpretation of reality. The process included selecting qualitatively relevant variables, estimating missing data and, finally, calculating the index by averaging the normalized data. The main steps are shown in Figure 1 and are explained in greater detail in the following text. Choosing Variables The first step in the study was to collect the most complete and high quality set of data possible relating to ICT. At the outset, 91 variables were chosen based on their qualitative relevance to the Networked Readiness Framework. These variables were then divided into three component indexes: Environment, Readiness, and Usage. Next, the variables were further categorized into three different subindexes (e.g., within Environment the three subindexes are: Market, Political/Regulatory and Infrastructure), leading to a total of three component indexes and nine subindexes. There were two types of short-listed variables, namely, 217 soft data and hard data. For the purposes of this study, Michele Hibon, Mark Yung, and Amit Jain the subjective data gathered from survey questionnaires are termed "soft" data, and statistical data collected by INSEAD independent agencies are termed "hard" data. The soft data Presentation initially selected for the study were extracted from the 2002 and 2003 Executive Opinion Survey conducted by the World Data 3 Economic Forum. The hard data were extracted from six different sources: World Development Indicators (WDI), artP the World Information Technology and Service Alliance (WITSA), International Telecommunication Union (ITU), Pyramid, and the World Economic Forum. While soft data are critical in establishing the opinions of decision makers and influencers who are intimately familiar with a particular economy, the hard data captures fundamental elements related to the development of infrastructure, human capital, and e-commerce. Selecting the Countries The main criteria used in selecting countries were the extent of data available as well as the reliability of the data being considered. Limitations in the availability of reliable data led us to consider only 102 countries for the study--82 countries from last year's Global Information Technology Report and 20 additional countries. All 20 additional countries have also been included in this year's Global Competitiveness Report (GCR). The scope of the study was limited to the GCR Figure 1. Steps in NRI Calculation Variable Data Data selection Further Data Data estimation estimation Final index and country data reduction and modification using using calculation selection modification normalization regression clustering countries because of the importance of the GCR data in the Data Transformation calculation of the NRI. Step 1: Making the data comparable A number of the 102 countries considered in the study are not In order to compare the data across the 102 selected countries, covered by some of the data collection agencies. For countries a number of variables that could not be used in their absolute with missing data, one had to utilize several estimation form to calculate the NRI were transformed. These variables techniques in order to derive appropriate data points. These were identified and then weighed against an external variable, estimation techniques are described in the ensuing sections. such as GDP, population, or GDP per capita, to make them comparable across the countries. Table 1 lists the transformed Dropping Variables variables. After the data were extracted from different data sources, Soft data such as that of GCR 2003 did not require variables with less than 65 observations were dropped. transformation. Other hard data variables not listed above also Soft data variables whose survey results appeared to be did not require transformation as the data had been previously questionable were also dropped. Finally, the highly correlated weighted by the data collection agencies (either as a percentage variables within each block were dropped. For pairs of or by a common denominator such as population). variables that had a correlation coefficient higher than 0.8, the one that was qualitatively less relevant and/or had fewer Estimating Data 218 observations was dropped. Approximately seven variables Step 1: Regression method were dropped due to the 65 observation threshold, another 13 due to the weakness of the underlying raw data, and a further Despite reducing the number of variables from 91 to 48 as 23 variables because of their high correlation to another described in the preceding choosing Variables section, there variable within the same block. As a result, only 48 variables were still a number of missing observations that had to be Presentation remained for the computation of the NRI from the original estimated. It was decided to estimate the missing data rather Data 91 selected variables. than have missing values because missing values would have 3 led to a bias in calculating the index and limited the ability to artP make comparisons across the countries. Different approaches were used in order to estimate the missing data. Table 1. Transforming Variables to Make Them Comparable Variable Name Variable Explanation Denominator ICT service exports, 2001 Communications and computer service exports Population Utility patents, 2002 Number of utility patents granted Population ICT manufactured exports, 2001 High technology manufactured exports Population Public pay telephones, 2001 Number of public pay telephones Population Internet servers, 2001 Number of secure Internet servers Population Affordability of local fixed line calls, 2001 Cost of local 3-minute call at peak rate (US$) GDP per capita Affordability of Internet service provider, 2001 Cost per 30 off-peak hours (US$) GDP per capita Affordability of Internet telephone access, 2001 Cost per 30 off-peak hours (US$) GDP per capita Cost of business phone subscription, 2002 Cost of business telephone monthly subscription (US$) GDP per capita Internet users, 2001 Number of Internet users Population ISDN subscribers, 2001 Number of ISDN subscribers Population Computers installed in businesses, 2001 Computers installed in businesses Population Table 2. Estimating Data Through Regression Variable Name Description of Dependent Variable Description of Independent Variable Telephone mainlines, 2001 Telephone mainlines per 1,000 inhabitants, 2001 Quality of public schools Public pay telephones, 2001 Public pay telephones per 1,000 inhabitants, 2001 Population Television receivers, 2001 Television receivers per 1,000 inhabitants, 2001 or most recent available Internet access at school Households online, 2002 Households online as percent of households with personal computers, 2002 GDP per capita Scientists and engineers in R&D, 2000 Scientists and engineers in R&D per 1,000 inhabitants, 2000 or most recent Capacity for innovation ISDN subscribers, 2001 ISDN subscribers per 1,000 inhabitants, 2001 ISDN, DSL and CATV Accounts Personal computers, 2001 Personal computers per 1,000 inhabitants, 2001 GDP per capita In the first approach, the missing values were estimated using Table 3. Variables Needing Transformation a regression analysis. The process involved picking a variable Variable (X) that was highly correlated to another variable (Y) with the Number Title of the Variable Description of the Variable missing values. X was then used as the independent variable I 1.07 Utility patents Number of utility patents to estimate the dependent variable (Y) in the linear regression granted (i.e., patents for invention) granted Y = a + bX. I 3.02 Telephone wait Waiting time for telephone mainlines (in years) In a more extensive form, as a first step a bi-variate II 1.08 Cost of local call Cost of local call correlation analysis was conducted of the 90 short-listed (USD per 3 minutes) variables and three external variables. The three external II 1.10 ISP access charge Internet service provider access variables chosen were GDP, GDP per capita, and population. charges (US$ per 30 off-peak hours) In case there was more than one highly correlated variable, II 1.09 Internet telephone Internet telephone access charges access charge (US$ per 30 off-peak hours) the variable with all 102 observations and the highest coefficient of correlation was chosen as the independent II 1.02 Illiteracy Illiteracy rate, adult total (% of people ages 15 and above) variable (X). In the event that there was no highly correlated II 2.02 Business Cost of business telephone variable that had all 102 observations, the most highly telephone cost subscription (US$ per month) 219 correlated independent variable that had data for the missing countries with missing observations was used. Estimating Data If the variable used in the regression analysis was not an Step 3: Pro-rata external variable, but one of the 91 variables, it was dropped Presentation in the final calculation of the NRI. Table 2 lists the variables For the one variable where data provided by WITSA was used, Data for which data were estimated using this approach. This the missing observations had to be estimated using a pro- 3 method, however, was not sufficient to estimate all the rata allocation method. Although WITSA provided specific artP missing values; a second approach was therefore used at a raw data for 53 countries, the remaining data were lumped later stage in the study to estimate the rest of the missing data. into five regional sub-categories termed "Rest of [Region]," namely, Western Europe, Central and Eastern Europe, Asia- Pacific, Latin America, and Mid-East Africa. In order to Estimating Data estimate country-specific data for the missing 49 countries, Step 2: Clustering the Rest of Region data were allocated to a country based on that country's GDP relative to the region's combined GDP, The variables that could not be estimated using the regression net of the GDPs of the 53 countries with reported data. method were estimated using a clustering technique. The countries were clustered or grouped according to their Special care was taken not to estimate data using other GDP per capita. In most cases, countries were grouped with estimated data. other countries that were within the range of GDP +/- 20 percent. However, in the case of three countries, namely, Data Transformation Ethiopia, Mozambique, and Malawi, the GDP range was broadened in order to obtain an estimate. Therefore, for the Step 2: Making the variables consistent three aforementioned countries, the clustering technique The next step in calculating the NRI required further overestimates the missing data. transformation of variables to make the variables consistent. While a high score on most of the variables would lead to a higher index score, a few variables had a reverse effect on the index and it was necessary to transform them to make them consistent with the other variables. The data of these variables were multiplied by a factor of -1. The soft data did not require modification as the questions were worded similarly and made the data consistent. Table 3 lists the variables that required transformation. Standardization of the Variables Once the final list of variables was determined, the data were converted on a scale of 1 to 7, using linear transformation. The formula used to standardize the data was: 6X ((country value ­ sample min)/(sample max ­ sample min)) + 1 The soft data did not need this standardization as they were originally collected from respondents using a 7-point scale. Calculation of the Index The final step was the calculation of the NRI. First, each subindex was calculated by taking an average of all the variables in each block. Next, the average of the three subindexes was taken to calculate the three component indexes, namely, Environment, Readiness, and Usage. Finally, 220 the average of the three component indexes was used to arrive at the NRI. Presentation Data 3 artP How to Read the Data Tables The data ranking section provides a list of all the variables with detailed I.1.01 State of cluster development, 2003 data for all 102 countries included in the study. How common are clusters in your country? (1 = limited and shallow, 7 = common and deep) Following a set of key indicators, RANK COUNTRY SCORE SD RANK COUNTRY SCORE SD the data are divided into the nine 1 Finland 6.03 1.12 52 Jordan 3.13 1.62 sections of the Networked Readiness 2 Italy 5.79 1.32 53 Trinidad and Tobago 3.10 1.52 3 Taiwan 5.51 1.16 54 Slovak Republic 3.10 1.52 Framework: 4 Singapore 5.21 1.41 55 Ghana 3.05 1.72 5 Japan 5.07 1.28 56 Russian Federation 3.03 1.33 I.1. Environment-Market 6 United States 4.94 1.39 57 Panama 3.03 1.41 7 Ireland 4.82 1.37 58 Colombia 2.98 1.22 Korea 4.75 Botswana 2.94 I.2. Environment-Political/Regulatory 8 1.16 59 1.70 9 Hong Kong SAR 4.61 1.78 60 Zimbabwe 2.94 1.52 10 Thailand 4.41 1.18 61 Greece 2.93 1.37 I.3. Environment-Infrastructure 11 Denmark 4.36 1.29 62 Jamaica 2.87 1.59 12 Canada 4.25 1.44 63 Tunisia 2.87 1.38 II.1. Readiness-Individual 13 Pakistan 4.24 1.61 64 Costa Rica 2.83 1.31 14 United Kingdom 4.22 1.34 65 Chile 2.82 1.40 15 Sweden 4.21 1.60 66 Namibia 2.80 1.46 II.2. Readiness-Business 16 Germany 4.11 1.65 66 Slovenia 2.80 1.15 17 India 4.08 1.58 68 Gambia 2.78 2.02 II.3. Readiness-Government 18 Switzerland 4.03 1.56 69 Zambia 2.77 1.74 19 Austria 4.00 1.58 70 Tanzania 2.75 1.52 19 France 4.00 1.43 71 Ecuador 2.75 1.66 III.1. Usage-Individual 19 Netherlands 4.00 1.33 72 Hungary 2.73 1.52 22 Nigeria 3.99 1.90 73 Serbia 2.71 1.69 III.2. Usage-Business 23 Norway 3.96 1.70 74 Estonia 2.70 1.52 24 Malaysia 3.95 1.19 75 Malawi 2.70 1.58 III.3. Usage-Government 25 Brazil 3.91 1.41 76 Czech Republic 2.69 1.39 26 Egypt 3.86 1.68 77 Bulgaria 2.68 1.55 26 Israel 3.86 1.56 78 Croatia 2.67 1.62 28 South Africa 3.79 1.52 79 Malta 2.60 1.43 29 Sri Lanka 3.76 1.46 80 Venezuela 2.52 1.36 As mentioned in the Methodology 30 China 3.65 1.33 81 Guatemala 2.47 1.17 31 Mauritius 3.58 1.54 82 Dominican Republic 2.45 1.60 section, two types of variables are 221 32 Turkey 3.57 1.38 83 Argentina 2.42 1.02 33 Indonesia 3.54 1.32 84 Honduras 2.38 1.38 used in our analysis: hard data 34 Australia 3.50 1.19 85 Peru 2.31 1.30 variables and "soft," or survey data 35 Spain 3.46 1.42 86 Ethiopia 2.30 1.54 36 Luxembourg 3.45 1.63 87 El Salvador 2.26 1.12 variables. For each variable, the short 37 Iceland 3.44 1.71 88 Ukraine 2.25 1.13 38 Belgium 3.40 1.53 89 Chad 2.19 1.48 name and a description are listed at 39 Latvia 3.38 1.63 90 Uruguay 2.17 1.18 the beginning of each table. 40 Morocco 3.33 1.61 91 Mali 2.16 1.57 Presentation 41 Portugal 3.32 1.39 92 Madagascar 2.16 1.27 42 Kenya 3.31 1.69 93 Bolivia 2.06 1.06 Data Hard variables. Some hard variables 43 Philippines 3.30 1.28 94 Cameroon 2.04 1.30 44 New Zealand 3.30 1.38 95 Macedonia, FYR 1.98 1.21 3 had to be "transformed" to ensure 45 Vietnam 3.26 1.51 96 Senegal 1.95 1.13 46 Lithuania 3.25 1.28 97 Algeria 1.94 1.23 that they were comparable across artP 47 Mexico 3.25 1.40 98 Nicaragua 1.92 1.24 countries; the hard data presented in 48 Romania 3.23 1.56 99 Paraguay 1.92 1.10 49 Poland 3.19 1.28 100 Mozambique 1.76 1.11 the tables are transformed data. For 50 Bangladesh 3.16 1.79 101 Haiti 1.73 1.12 51 Uganda 3.15 1.76 102 Angola 1.56 1.18 more details on how the data were 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 modified, please see the preceding Source: World Economic Forum, Executive Opinion Survey 2003 section, NRI Index: Methodology. Soft variables. For each survey inefficient, while a high score shows Ranking. The countries have been variable, the original question is that it is on the level of the most ranked using the complete data set for included in the description of the advanced countries. The survey data each variable. The country responses variable. The values for these variables are drawn from the Executive Opinion shown in the tables are rounded off range from one to seven, where a Survey conducted annually by the to two decimal places. Two countries response of one corresponds to a lower World Economic Forum during the first with the same listed variable value relative performance, and a response half of the year. can have different rankings. The of seven corresponds to the highest differences in the rankings exist level of relative performance. The Missing Data. The missing data were because exact figures, not rounded values are responses to questionnaires estimated to complete the data set. numbers, were used to rank the and represent the average score This was done primarily because the countries. If two countries have exactly of different respondents in a missing values would have led to a bias the same value then they will have the country. Variable I.3.01 for example, in calculating the index, and would same rank. corresponds to a question about limit us in making comparisons across overall infrastructure quality; here, countries. Estimated data are indicated a low score means that the general by an asterisk (*). For more details, infrastructure is poorly developed and please refer to the preceding section, NRI Index: Methodology, in the book. List of Data Tables SECTION I Environment Component Market Environment...................................................225 II.1.06 Households online, 2002....................................... 255 I.1.01 State of cluster development, 2003 ....................... 226 II.1.07 Quality of math and science education, 2003......... 256 I.1.02 Venture capital availability, 2003........................... 227 II.1.08 Affordability of local fixed line calls, 2001.............. 257 I.1.03 Subsidies for firm-level R&D, 2003......................... 228 II.1.09 Affordability of Internet telephone access, 2001..... 258 I.1.04 Quality of scientific research institutions, 2003....... 229 II.1.10 Affordability of Internet service provider fees, 2001 259 I.1.05 Availability of scientists and engineers, 2003 ......... 230 I.1.06 Brain drain, 2003 .................................................. 231 Readiness Component I.1.07 Utility patents, 2002.............................................. 232 Business Readiness.....................................................261 I.1.08 ICT manufactured exports, 2001............................ 233 II.2.01 Ease of obtaining telephone lines, 2003 ................ 262 I.1.09 ICT service exports, 2001 ...................................... 234 II.2.02 Cost of business phone subscription, 2002 ............ 263 II.2.03 Extent of staff training, 2003................................. 264 Environment Component II.2.04 Quality of business schools, 2003 .......................... 265 Political and Regulatory Environment........................235 II.2.05 Scientists and engineers in R&D, 2000................... 266 I.2.01 Overall administrative burden, 2003 ...................... 236 I.2.02 Quality of the legal system, 2003 .......................... 237 Readiness Component I.2.03 Laws relating to ICT, 2003..................................... 238 Government Readiness ..............................................267 223 I.2.04 Competition in the ISP sector, 2003....................... 239 II.3.01 Government prioritization of ICT, 2003 .................. 268 I.2.05 Foreign ownership restrictions, 2003 ..................... 240 II.3.02 Government procurement of ICT, 2003 .................. 269 I.2.06 Efficiency of the tax system, 2003.......................... 241 II.3.03 Government online presence, 2003 ....................... 270 Presentation I.2.07 Freedom of the press, 2003................................... 242 Usage Component Data 3 Individual Readiness ..................................................271 Environment Component artP Infrastructure Environment........................................243 III.1.01 Personal computers, 2001 ..................................... 272 I.3.01 Overall infrastructure quality, 2003........................ 244 III.1.02 ISDN subscribers, 2001 ......................................... 273 I.3.02 Waiting time for telephone lines, 2000 .................. 245 III.1.03 Cable television subscribers, 2001 ......................... 274 I.3.03 Telephone mainlines, 2001.................................... 246 III.1.04 Internet users, 2001 .............................................. 275 I.3.04 Public pay telephones, 2001.................................. 247 I.3.05 Internet servers, 2001 ........................................... 248 SECTION III Usage Component Business Readiness.....................................................277 SECTION II Readiness Component III.2.01 Computers installed in businesses, 2002................ 278 Individual Readiness ..................................................249 III.2.02 Firm-level technology absorption, 2003 ................. 279 II.1.01 Public expenditure on education, 2000.................. 250 III.2.03 Prevalence of foreign technology licensing, 2003 ... 280 II.1.02 Adult illiteracy, 2001 ............................................. 251 II.1.03 Tertiary enrollment, 2001 ...................................... 252 Usage Component Government Readiness ..............................................281 II.1.04 Radios, 2001......................................................... 253 III.3.01 Government success in ICT promotion, 2003 ......... 282 II.1.05 Television sets, 2001 ............................................. 254 III.3.02 Government online services, 2003 ......................... 283 List of Key Indicators 1. Total GDP, 2002..........................................................287 2. GDP per capita, 2002..................................................288 3. Population, 2002 .......................................................289 4. Households, 2002.......................................................290 5. Telephone lines, 2002 .................................................291 6. Cellular phones, 2002.................................................292 7. Personal computers, 2002...........................................293 8. Internet users, 2001....................................................294 9. Television, 2002..........................................................295 10. Cable television, 2002 ................................................296 11. Public pay telephones, 2002........................................297 12. Household Internet penetration, 2001 .........................298 224 13. Business Internet penetration, 2001 ............................298 14. Broadband subscriber lines, 2001 ...............................299 Presentation 15. Broadband penetration, 2001 .....................................299 Data 16. B2C e-commerce, 2002...............................................300 3 artP 17. B2B e-commerce, 2002 ..............................................300 18. ICT spending, 2001.....................................................301 19. PC units in business/government, 2001 ......................301 Section I Environment Component Market Environment 225 Presentation Data 3 artP I.1.01 State of cluster development, 2003 How common are clusters in your country? (1 = limited and shallow, 7 = common and deep) RANK COUNTRY SCORE SD RANK COUNTRY SCORE SD 1 Finland 6.03 1.12 52 Jordan 3.13 1.62 2 Italy 5.79 1.32 53 Trinidad and Tobago 3.10 1.52 3 Taiwan 5.51 1.16 54 Slovak Republic 3.10 1.52 4 Singapore 5.21 1.41 55 Ghana 3.05 1.72 5 Japan 5.07 1.28 56 Russian Federation 3.03 1.33 6 United States 4.94 1.39 57 Panama 3.03 1.41 7 Ireland 4.82 1.37 58 Colombia 2.98 1.22 8 Korea 4.75 1.16 59 Botswana 2.94 1.70 9 Hong Kong SAR 4.61 1.78 60 Zimbabwe 2.94 1.52 10 Thailand 4.41 1.18 61 Greece 2.93 1.37 11 Denmark 4.36 1.29 62 Jamaica 2.87 1.59 12 Canada 4.25 1.44 63 Tunisia 2.87 1.38 13 Pakistan 4.24 1.61 64 Costa Rica 2.83 1.31 14 United Kingdom 4.22 1.34 65 Chile 2.82 1.40 15 Sweden 4.21 1.60 66 Namibia 2.80 1.46 16 Germany 4.11 1.65 66 Slovenia 2.80 1.15 17 India 4.08 1.58 68 Gambia 2.78 2.02 18 Switzerland 4.03 1.56 69 Zambia 2.77 1.74 19 Austria 4.00 1.58 70 Tanzania 2.75 1.52 19 France 4.00 1.43 71 Ecuador 2.75 1.66 19 Netherlands 4.00 1.33 72 Hungary 2.73 1.52 22 Nigeria 3.99 1.90 73 Serbia 2.71 1.69 23 Norway 3.96 1.70 74 Estonia 2.70 1.52 226 24 Malaysia 3.95 1.19 75 Malawi 2.70 1.58 25 Brazil 3.91 1.41 76 Czech Republic 2.69 1.39 26 Egypt 3.86 1.68 77 Bulgaria 2.68 1.55 26 Israel 3.86 1.56 78 Croatia 2.67 1.62 28 South Africa 3.79 1.52 79 Malta 2.60 1.43 Presentation 29 Sri Lanka 3.76 1.46 80 Venezuela 2.52 1.36 Data 30 China 3.65 1.33 81 Guatemala 2.47 1.17 3 31 Mauritius 3.58 1.54 82 Dominican Republic 2.45 1.60 artP 32 Turkey 3.57 1.38 83 Argentina 2.42 1.02 33 Indonesia 3.54 1.32 84 Honduras 2.38 1.38 34 Australia 3.50 1.19 85 Peru 2.31 1.30 35 Spain 3.46 1.42 86 Ethiopia 2.30 1.54 36 Luxembourg 3.45 1.63 87 El Salvador 2.26 1.12 37 Iceland 3.44 1.71 88 Ukraine 2.25 1.13 38 Belgium 3.40 1.53 89 Chad 2.19 1.48 39 Latvia 3.38 1.63 90 Uruguay 2.17 1.18 40 Morocco 3.33 1.61 91 Mali 2.16 1.57 41 Portugal 3.32 1.39 92 Madagascar 2.16 1.27 42 Kenya 3.31 1.69 93 Bolivia 2.06 1.06 43 Philippines 3.30 1.28 94 Cameroon 2.04 1.30 44 New Zealand 3.30 1.38 95 Macedonia, FYR 1.98 1.21 45 Vietnam 3.26 1.51 96 Senegal 1.95 1.13 46 Lithuania 3.25 1.28 97 Algeria 1.94 1.23 47 Mexico 3.25 1.40 98 Nicaragua 1.92 1.24 48 Romania 3.23 1.56 99 Paraguay 1.92 1.10 49 Poland 3.19 1.28 100 Mozambique 1.76 1.11 50 Bangladesh 3.16 1.79 101 Haiti 1.73 1.12 51 Uganda 3.15 1.76 102 Angola 1.56 1.18 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 Source: World Economic Forum, Executive Opinion Survey 2003 I.1.02 Venture capital availability, 2003 Entrepreneurs with innovative but risky projects can generally find venture capital in your country (1 = not true, 7 = true) RANK COUNTRY SCORE SD RANK COUNTRY SCORE SD 1 Finland 5.36 0.96 52 Zimbabwe 3.12 1.58 2 United Kingdom 5.29 1.34 53 Morocco 3.07 1.74 3 United States 5.25 1.55 54 Brazil 3.05 1.34 4 Israel 4.95 1.24 55 Slovak Republic 3.03 1.33 5 Luxembourg 4.91 1.23 56 Malta 3.03 1.34 6 Netherlands 4.87 1.55 57 Uganda 3.01 1.89 7 Australia 4.75 1.65 58 China 3.00 1.22 7 Sweden 4.75 1.21 58 Vietnam 3.00 1.62 9 Ireland 4.68 1.40 60 Trinidad and Tobago 2.98 1.40 10 Norway 4.62 1.53 61 Slovenia 2.95 1.25 11 Canada 4.59 1.52 62 Jordan 2.94 1.35 12 Singapore 4.53 1.41 63 Russian Federation 2.92 1.46 13 Denmark 4.46 1.57 64 Romania 2.86 1.63 14 France 4.42 1.48 65 Croatia 2.79 1.63 15 Hong Kong SAR 4.42 1.37 66 Nigeria 2.72 1.50 16 Korea 4.40 1.25 67 Guatemala 2.70 1.55 17 New Zealand 4.39 1.39 68 Costa Rica 2.70 1.52 18 Taiwan 4.37 1.13 69 Colombia 2.69 1.30 19 Latvia 4.36 1.58 70 Tanzania 2.68 1.40 20 Iceland 4.26 1.29 71 Philippines 2.63 1.24 21 Belgium 4.20 1.44 72 Ghana 2.62 1.51 22 Lithuania 4.12 1.31 73 Ukraine 2.59 1.34 23 Spain 4.06 1.41 74 Jamaica 2.53 1.57 227 24 Malaysia 4.04 1.29 75 Bulgaria 2.42 1.35 25 Tunisia 3.90 1.63 76 Mexico 2.41 1.29 26 Switzerland 3.89 1.63 77 Kenya 2.40 1.45 27 Estonia 3.86 1.38 78 Cameroon 2.40 1.55 28 India 3.82 1.49 79 Gambia 2.38 1.62 Presentation 29 Italy 3.75 1.31 80 Pakistan 2.36 1.28 30 Germany 3.66 1.50 81 Ecuador 2.36 1.59 Data 31 Mauritius 3.65 1.28 82 Madagascar 2.31 1.49 3 32 South Africa 3.61 1.55 83 Nicaragua 2.25 1.46 artP 33 Portugal 3.61 1.44 84 Turkey 2.24 1.23 34 Panama 3.61 1.56 85 Peru 2.23 1.19 35 Greece 3.51 1.44 86 Zambia 2.14 1.23 36 Macedonia, FYR 3.47 2.18 87 Mozambique 2.11 1.35 37 Chile 3.43 1.47 88 Bolivia 2.09 1.27 38 Czech Republic 3.42 1.58 89 Haiti 2.08 1.19 39 Thailand 3.38 1.31 90 Ethiopia 2.06 1.65 40 Sri Lanka 3.35 1.42 91 Honduras 2.05 1.25 41 Hungary 3.30 1.57 92 Senegal 2.04 0.98 42 Botswana 3.28 1.62 93 Venezuela 2.03 1.09 42 Poland 3.28 1.32 94 Bangladesh 2.01 1.28 44 Egypt 3.26 1.86 95 Mali 1.97 1.50 45 Japan 3.22 1.31 96 Paraguay 1.97 1.43 46 Namibia 3.21 1.33 97 Angola 1.93 1.35 47 Austria 3.18 1.52 98 Argentina 1.92 1.11 48 Dominican Republic 3.18 1.77 99 Malawi 1.91 1.16 49 Indonesia 3.17 1.38 100 Uruguay 1.84 1.12 50 El Salvador 3.15 1.43 101 Algeria 1.77 1.26 51 Serbia 3.12 1.71 102 Chad 1.52 1.06 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 Source: World Economic Forum, Executive Opinion Survey 2003 I.1.03 Subsidies for firm-level R&D, 2003 For firms conducting research and development (R&D) in your country, direct government subsidies to individual companies or R&D tax credits (1 = never occur, 7 = are widespread and large) RANK COUNTRY SCORE SD RANK COUNTRY SCORE SD 1 Singapore 5.84 0.83 52 Croatia 3.01 1.48 2 Taiwan 5.28 1.10 53 Hong Kong SAR 2.97 1.44 3 Luxembourg 5.20 1.40 54 Jordan 2.96 1.44 4 Israel 5.05 0.92 55 Estonia 2.95 1.44 5 Canada 5.04 1.34 56 Tanzania 2.94 1.45 6 Finland 4.77 1.11 57 Romania 2.93 1.35 7 Tunisia 4.76 1.51 58 Botswana 2.91 1.54 8 France 4.63 1.20 59 Algeria 2.91 1.60 9 Malaysia 4.62 1.05 60 Senegal 2.88 1.66 10 Japan 4.61 1.43 61 Russian Federation 2.87 1.36 11 Ireland 4.51 1.19 62 Ghana 2.82 1.46 12 United States 4.50 1.50 63 Mali 2.81 1.88 13 Australia 4.40 1.19 64 Nigeria 2.81 1.49 14 Austria 4.33 1.30 65 Trinidad and Tobago 2.78 1.23 15 Korea 4.31 1.20 66 Ukraine 2.77 1.08 16 Norway 4.30 1.27 67 Slovak Republic 2.77 1.26 17 Belgium 4.27 1.26 68 Namibia 2.75 1.41 18 Netherlands 4.21 1.38 69 Kenya 2.64 1.41 19 Germany 4.20 1.28 70 Jamaica 2.58 1.18 19 United Kingdom 4.20 1.20 71 Colombia 2.53 1.05 21 India 4.11 1.39 72 New Zealand 2.48 1.30 22 China 3.86 1.27 73 Panama 2.41 1.26 23 Spain 3.84 1.12 74 Serbia 2.38 1.24 228 24 Portugal 3.80 1.32 75 Costa Rica 2.38 1.32 25 Thailand 3.78 1.48 76 Zimbabwe 2.36 1.41 26 Greece 3.70 1.41 77 Bulgaria 2.34 1.10 27 Latvia 3.67 1.65 78 Philippines 2.29 1.01 28 Indonesia 3.67 1.45 79 Macedonia, FYR 2.22 1.39 Presentation 29 Slovenia 3.60 1.37 80 Dominican Republic 2.20 1.21 Data 30 Sweden 3.56 1.58 81 Pakistan 2.20 1.33 3 31 Iceland 3.54 1.36 82 Argentina 2.14 1.01 artP 32 Denmark 3.54 1.50 83 Chad 2.08 1.46 33 Italy 3.53 1.16 84 Uruguay 2.05 1.08 34 Vietnam 3.53 1.43 85 Venezuela 2.03 0.90 35 Brazil 3.52 1.30 86 Zambia 2.02 1.34 36 Morocco 3.51 1.63 87 Madagascar 2.00 1.37 37 Hungary 3.48 1.25 88 Honduras 1.97 1.19 38 Malta 3.47 1.54 89 Gambia 1.96 1.55 39 South Africa 3.36 1.20 90 Ethiopia 1.95 1.22 40 Turkey 3.28 1.40 91 Mozambique 1.86 1.18 41 Switzerland 3.24 1.56 92 Ecuador 1.79 0.81 42 Czech Republic 3.20 1.20 93 Malawi 1.78 1.01 43 Poland 3.18 1.26 94 Bangladesh 1.76 1.21 44 Chile 3.18 1.31 95 Nicaragua 1.64 0.93 45 Egypt 3.17 1.81 96 Angola 1.60 0.89 46 Lithuania 3.13 1.23 97 Peru 1.59 0.84 47 Sri Lanka 3.13 1.39 98 Guatemala 1.54 0.93 48 Uganda 3.08 1.71 99 Bolivia 1.42 0.70 49 Cameroon 3.08 1.62 100 El Salvador 1.36 0.69 50 Mauritius 3.03 1.56 101 Haiti 1.36 0.57 51 Mexico 3.01 1.37 102 Paraguay 1.35 0.60 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 Source: World Economic Forum, Executive Opinion Survey 2003 I.1.04 Quality of scientific research institutions, 2003 Scientific research institutions in your country (e.g., university laboratories, government laboratories) are (1 = nonexistent, 7 = the best in their fields) RANK COUNTRY SCORE SD RANK COUNTRY SCORE SD 1 United States 6.23 1.35 52 Mexico 3.93 1.31 2 Israel 5.86 0.79 53 Botswana 3.93 1.36 3 Switzerland 5.84 1.01 54 Poland 3.90 1.18 4 Finland 5.75 0.65 55 Greece 3.89 1.15 5 United Kingdom 5.68 0.95 56 Sri Lanka 3.87 1.38 6 Sweden 5.63 0.69 57 Ukraine 3.85 1.27 7 Denmark 5.50 0.71 58 Serbia 3.81 1.54 8 France 5.46 0.88 59 Slovak Republic 3.80 1.29 9 Australia 5.45 0.76 60 Egypt 3.76 1.69 10 Singapore 5.44 0.90 61 Trinidad and Tobago 3.74 1.14 11 Japan 5.38 0.96 62 Indonesia 3.74 1.29 12 Germany 5.36 0.81 63 Luxembourg 3.73 1.28 13 Canada 5.32 0.98 64 Colombia 3.68 1.34 14 Ireland 5.20 0.97 65 Ethiopia 3.66 1.49 15 Belgium 5.15 1.11 66 Morocco 3.66 1.63 16 Netherlands 5.13 1.10 67 Senegal 3.65 1.85 17 New Zealand 5.11 0.99 68 Malawi 3.64 1.52 18 Taiwan 5.02 1.12 69 Romania 3.62 1.65 19 Norway 4.93 1.07 70 Bulgaria 3.62 1.36 20 India 4.86 1.35 71 Malta 3.58 1.38 21 Iceland 4.85 0.95 72 Zimbabwe 3.58 1.39 22 Hungary 4.79 1.07 73 Argentina 3.54 1.37 23 Austria 4.72 1.02 74 Uruguay 3.54 1.34 229 24 South Africa 4.69 1.20 75 Mali 3.51 1.79 25 Russian Federation 4.69 1.52 76 Zambia 3.51 1.42 26 Korea 4.69 1.11 77 Venezuela 3.47 1.28 27 Kenya 4.63 1.33 78 Mauritius 3.47 1.32 28 China 4.58 1.12 79 Turkey 3.41 1.15 Presentation 29 Slovenia 4.55 0.98 80 Namibia 3.40 1.30 30 Costa Rica 4.51 1.21 81 Nigeria 3.39 1.43 Data 31 Estonia 4.49 1.13 82 Panama 3.35 1.26 3 32 Tanzania 4.47 1.44 83 Dominican Republic 3.20 1.39 artP 33 Uganda 4.42 1.62 84 Macedonia, FYR 3.20 1.59 34 Czech Republic 4.41 1.27 85 Bangladesh 3.18 1.32 35 Vietnam 4.37 1.31 86 Madagascar 3.16 1.29 36 Malaysia 4.33 1.02 87 Gambia 3.10 1.93 37 Jamaica 4.31 1.25 88 Algeria 3.06 1.23 38 Lithuania 4.29 1.33 89 Philippines 3.02 1.29 39 Hong Kong SAR 4.25 1.28 90 Pakistan 3.02 1.28 40 Ghana 4.25 1.55 91 Peru 2.99 1.14 41 Portugal 4.24 0.97 92 Mozambique 2.88 1.42 42 Croatia 4.24 1.31 93 Guatemala 2.87 1.34 43 Thailand 4.22 1.04 94 Ecuador 2.83 1.28 44 Italy 4.21 1.38 95 Honduras 2.61 1.29 45 Tunisia 4.16 1.30 96 El Salvador 2.52 1.05 46 Jordan 4.15 1.32 97 Nicaragua 2.48 1.19 47 Latvia 4.15 1.29 98 Bolivia 2.44 1.08 48 Chile 4.15 1.34 99 Angola 2.43 1.22 49 Brazil 4.11 1.12 100 Chad 2.42 1.52 50 Cameroon 4.02 1.46 101 Paraguay 2.19 1.01 51 Spain 3.99 1.19 102 Haiti 1.60 0.71 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 Source: World Economic Forum, Executive Opinion Survey 2003 I.1.05 Availability of scientists and engineers, 2003 Scientists and engineers in your country are (1 = nonexistent or rare, 7 = widely available) RANK COUNTRY SCORE SD RANK COUNTRY SCORE SD 1 Israel 6.52 0.68 52 Estonia 4.69 1.13 2 Finland 6.50 0.61 53 Morocco 4.64 1.84 3 India 6.30 0.84 54 Kenya 4.63 1.41 4 France 6.16 0.95 55 Nigeria 4.58 1.53 5 Canada 6.11 0.90 56 Trinidad and Tobago 4.54 1.32 6 Iceland 6.07 0.83 57 Egypt 4.54 1.70 7 Switzerland 6.03 0.87 58 Malta 4.54 1.33 8 United States 6.02 0.92 59 Sri Lanka 4.51 1.25 9 Japan 5.99 0.83 60 Madagascar 4.51 1.51 10 Sweden 5.93 1.02 61 Latvia 4.51 1.35 11 Denmark 5.88 0.77 62 Bangladesh 4.50 1.36 12 Jordan 5.85 1.02 63 Thailand 4.42 1.29 13 Tunisia 5.82 1.09 64 Slovenia 4.37 1.22 14 Australia 5.80 1.24 65 Malaysia 4.35 1.37 15 Slovak Republic 5.75 1.12 66 Mauritius 4.34 1.12 16 Singapore 5.75 0.92 67 Venezuela 4.32 1.43 17 Taiwan 5.63 1.07 68 China 4.25 1.35 18 Germany 5.63 0.91 69 Luxembourg 4.24 1.33 19 Greece 5.59 1.12 70 Malawi 4.15 1.56 20 Ireland 5.55 1.30 71 Peru 4.11 1.51 21 Romania 5.53 1.44 72 Philippines 4.11 1.55 22 Belgium 5.49 0.99 73 Tanzania 4.11 1.50 23 Algeria 5.47 1.38 74 Colombia 4.08 1.48 230 24 Hungary 5.47 1.13 74 South Africa 4.08 1.32 25 Norway 5.44 1.09 76 Jamaica 4.05 1.20 26 Austria 5.42 1.17 77 Uganda 4.05 1.45 27 Russian Federation 5.39 1.45 78 Zambia 4.03 1.60 28 Lithuania 5.36 1.12 79 Mali 4.03 1.96 Presentation 29 Italy 5.34 1.27 80 Ghana 3.97 1.55 Data 30 Spain 5.33 1.16 81 Pakistan 3.96 1.37 3 31 Bulgaria 5.32 1.27 82 Mexico 3.91 1.45 artP 32 Vietnam 5.30 1.26 83 Panama 3.85 1.42 33 Czech Republic 5.29 1.21 84 Senegal 3.81 1.44 34 Costa Rica 5.14 1.16 85 Indonesia 3.72 1.41 35 Poland 5.11 1.44 86 Ecuador 3.52 1.51 36 Cameroon 5.11 1.36 87 Botswana 3.51 1.27 37 United Kingdom 5.09 1.16 88 Zimbabwe 3.48 1.42 38 Serbia 5.08 1.56 89 Guatemala 3.39 1.55 39 Chile 5.07 1.17 90 Dominican Republic 3.34 1.51 40 Korea 5.05 1.23 91 Bolivia 3.21 1.40 41 Argentina 5.02 1.28 92 Nicaragua 3.14 1.57 42 Macedonia, FYR 4.97 1.80 93 Namibia 3.13 1.17 43 Croatia 4.96 1.29 94 Haiti 3.12 1.20 44 Uruguay 4.95 1.42 95 Honduras 3.07 1.37 45 Ukraine 4.94 1.51 96 Ethiopia 2.96 1.36 46 Brazil 4.92 1.38 97 El Salvador 2.92 1.32 47 Turkey 4.89 1.37 98 Paraguay 2.91 1.26 48 Portugal 4.85 1.05 99 Chad 2.67 1.46 49 Netherlands 4.82 1.45 100 Gambia 2.63 1.63 50 New Zealand 4.72 1.22 101 Mozambique 2.57 1.09 51 Hong Kong SAR 4.72 1.45 102 Angola 2.11 1.16 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 Source: World Economic Forum, Executive Opinion Survey 2003 I.1.06 Brain drain, 2003 Your country's talented people (1 = normally leave to pursue opportunities in other countries, 7 = almost always remain in the country) RANK COUNTRY SCORE SD RANK COUNTRY SCORE SD 1 United States 6.31 1.11 52 Turkey 3.33 1.22 2 Finland 5.61 1.20 53 Guatemala 3.33 1.26 3 Chile 5.60 1.06 54 Egypt 3.31 1.76 4 Spain 5.44 1.28 55 New Zealand 3.23 1.05 5 Norway 5.37 1.01 56 Russian Federation 3.08 1.43 6 Netherlands 5.31 1.13 57 Angola 3.06 1.36 7 Switzerland 5.29 1.09 58 Colombia 3.05 1.30 8 Japan 5.25 1.08 59 Paraguay 3.03 1.36 9 Costa Rica 5.17 1.42 60 Honduras 3.02 1.34 10 Iceland 5.11 0.89 61 Nicaragua 3.01 1.56 11 Sweden 5.11 1.23 62 Mauritius 2.97 1.18 12 Thailand 5.05 1.10 63 Jordan 2.93 1.27 13 United Kingdom 5.02 1.07 64 Tanzania 2.88 1.51 14 Luxembourg 5.00 1.09 65 India 2.83 1.24 15 Singapore 4.92 1.24 66 Chad 2.82 1.56 16 Taiwan 4.77 1.04 67 South Africa 2.81 1.17 17 Botswana 4.76 1.64 68 Slovak Republic 2.79 1.18 18 Israel 4.76 1.00 69 Lithuania 2.75 1.26 19 Belgium 4.76 1.43 70 Peru 2.73 1.16 20 Ireland 4.73 1.22 71 Croatia 2.71 1.38 21 Hong Kong SAR 4.70 1.34 72 Malawi 2.71 1.14 22 Brazil 4.60 1.41 73 Argentina 2.66 1.11 23 Austria 4.57 1.42 74 Ukraine 2.60 1.27 231 24 Denmark 4.57 1.25 75 Ecuador 2.57 1.33 25 Panama 4.43 1.54 76 Bolivia 2.57 1.09 26 Canada 4.39 1.52 77 Madagascar 2.54 1.34 27 Portugal 4.33 1.30 78 Uruguay 2.52 1.35 28 Germany 4.31 1.56 79 Jamaica 2.52 0.98 Presentation 29 Malta 4.26 1.31 80 Cameroon 2.50 1.54 30 Australia 4.25 1.12 81 Pakistan 2.48 1.34 Data 31 Mexico 4.24 1.43 82 Kenya 2.47 1.41 3 32 Korea 4.17 1.39 83 Uganda 2.46 1.50 artP 33 Dominican Republic 4.17 1.56 84 Venezuela 2.32 1.07 34 Slovenia 4.15 1.41 85 Senegal 2.26 1.32 35 Czech Republic 4.10 1.41 86 Sri Lanka 2.26 1.10 36 Latvia 4.09 1.50 87 Philippines 2.23 1.07 37 Malaysia 4.03 1.14 88 Algeria 2.23 1.19 38 Estonia 3.89 1.15 89 Gambia 2.23 1.38 39 Mozambique 3.84 1.81 90 Morocco 2.15 1.42 40 France 3.82 1.48 91 Bulgaria 2.10 1.09 41 Tunisia 3.81 1.54 92 Ethiopia 2.08 1.31 42 Greece 3.75 1.35 93 Romania 2.06 1.13 43 Vietnam 3.75 1.57 94 Mali 2.06 1.27 44 Poland 3.66 1.27 95 Bangladesh 2.01 1.00 45 Indonesia 3.63 1.21 96 Ghana 2.01 0.98 46 Hungary 3.61 1.30 97 Nigeria 1.96 1.02 47 Namibia 3.61 1.31 98 Macedonia, FYR 1.95 1.31 48 Trinidad and Tobago 3.57 1.31 99 Zambia 1.92 1.13 49 El Salvador 3.56 1.44 100 Serbia 1.88 0.95 50 Italy 3.48 1.40 101 Zimbabwe 1.79 1.11 51 China 3.40 1.34 102 Haiti 1.60 0.71 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 Source: World Economic Forum, Executive Opinion Survey 2003 I.1.07 Utility patents, 2002 Utility patents granted (per 1,000,000 inhabitants), 2002 RANK COUNTRY VALUE RANK COUNTRY VALUE 1 United States 301.48 52 Honduras 0.30 2 Japan 273.40 53 Poland 0.29 3 Taiwan 241.38 54 India 0.24 4 Sweden 190.34 55 China 0.22 5 Switzerland 189.44 56 Turkey 0.22 6 Israel 165.08 57 Jordan 0.19 7 Finland 155.58 58 Philippines 0.18 8 Germany 137.52 59 Colombia 0.14 9 Canada 109.62 60 Romania 0.13 10 Singapore 97.62 61 Dominican Republic 0.12 11 Netherlands 86.94 62 Tunisia 0.10 12 Luxembourg 82.59 63 Zimbabwe 0.08 13 Denmark 80.38 64 Egypt 0.07 14 Korea 79.87 65 Sri Lanka 0.05 15 Belgium 70.10 66 Uganda 0.04 16 France 67.59 67 Peru 0.04 17 Austria 65.43 68 Nigeria 0.03 18 United Kingdom 64.29 69 Indonesia 0.03 19 Norway 53.78 70 Kenya 0.03 19 Iceland 45.94 71 Pakistan 0.01 19 Australia 44.00 72 Algeria 0.00 22 New Zealand 36.84 72 Angola 0.00 23 Ireland 33.85 72 Bangladesh 0.00 232 24 Hong Kong SAR 33.29 72 Bolivia 0.00 25 Italy 30.49 72 Botswana 0.00 26 Slovenia 8.00 72 Cameroon 0.00 26 Spain 7.59 72 Chad 0.00 28 Hungary 4.85 72 Ecuador 0.00 Presentation 29 Estonia 2.86 72 El Salvador 0.00 Data 30 Czech Republic 2.82 72 Ethiopia 0.00 3 31 South Africa 2.58 72 Gambia 0.00 artP 32 Croatia 2.55 72 Ghana 0.00 33 Malta 2.54 72 Guatemala 0.00 34 Malaysia 2.39 72 Haiti 0.00 35 Greece 1.89 72 Latvia 0.00 36 Slovak Republic 1.48 72 Macedonia, FYR 0.00 37 Argentina 1.42 72 Madagascar 0.00 38 Russian Federation 1.39 72 Malawi 0.00 39 Venezuela 1.20 72 Mali 0.00 40 Portugal 1.10 72 Mauritius 0.00 41 Mexico 0.92 72 Morocco 0.00 42 Uruguay 0.88 72 Mozambique 0.00 43 Jamaica 0.77 72 Namibia 0.00 44 Costa Rica 0.71 72 Nicaragua 0.00 45 Chile 0.71 72 Paraguay 0.00 46 Thailand 0.68 72 Senegal 0.00 47 Ukraine 0.55 72 Serbia 0.00 48 Brazil 0.55 72 Tanzania 0.00 49 Lithuania 0.54 72 Trinidad and Tobago 0.00 50 Bulgaria 0.38 72 Vietnam 0.00 51 Panama 0.34 72 Zambia 0.00 0 50 100 150 200 250 300 350 0 50 100 150 200 250 300 350 Source: US Patent and Trademark Office, February 2003 I.1.08 ICT manufactured exports, 2001 High technology manufactured exports per capita, 2001 RANK COUNTRY VALUEVALUE RANK COUNTRY VALUE 1 Singapore 14,898.1 52 Indonesia 20.6 2 Ireland 9,204.6 53 Latvia 18.8 3 Luxembourg 3,044.4 54 Morocco 17.3 4 Malta 2,656.4 55 Botswana *17.1 5 Netherlands 2,435.0 56 Jordan 17.0 6 Switzerland 2,410.2 57 Turkey 16.0 7 Malaysia 1,780.0 58 Tunisia 15.9 8 Finland 1,779.6 59 Dominican Republic *15.8 9 Belgium 1,571.2 60 Mauritius 11.7 10 Denmark 1,304.2 61 Bulgaria 10.1 11 Sweden 1,215.7 62 Trinidad and Tobago 8.7 12 Israel 1,183.5 63 Colombia * 8.0 13 United Kingdom 1,129.2 64 El Salvador 7.9 14 France 1,125.5 65 Chile 6.9 15 Germany 1,048.3 66 Namibia * 6.3 16 Austria 922.4 67 Serbia * 6.2 17 Canada 862.6 68 Guatemala 5.9 18 Korea 852.9 69 Madagascar * 5.7 19 Japan 779.5 70 Zimbabwe * 5.5 20 Hungary 636.2 71 Uruguay 5.5 21 United States 620.1 72 Bolivia 4.3 22 Hong Kong SAR 530.9 73 Macedonia, FYR 4.2 23 Norway 462.7 74 Venezuela 3.8 233 24 Estonia 418.2 75 Peru 2.1 25 Italy 374.3 76 Ecuador 1.9 26 Czech Republic 297.7 77 Senegal 1.2 27 Mexico 292.3 78 Paraguay 1.2 28 Philippines 267.6 79 Zambia 1.0 Presentation 29 Costa Rica 255.0 80 Algeria 0.7 30 Thailand 237.7 81 Honduras 0.6 Data 31 Slovenia 221.1 82 India * 0.6 3 32 Spain 178.1 83 Panama 0.5 artP 33 Australia 137.0 84 Kenya 0.4 34 Taiwan *135.7 85 Haiti * 0.4 35 Portugal 134.3 85 Vietnam * 0.4 36 New Zealand 122.6 87 Nicaragua 0.4 37 Iceland 95.8 88 Bangladesh * 0.4 38 Slovak Republic 87.6 89 Jamaica 0.2 39 Croatia 75.9 90 Uganda 0.2 40 Angola * 66.3 91 Egypt 0.2 40 Sri Lanka * 66.3 92 Pakistan 0.2 40 Ukraine * 66.3 93 Chad * 0.1 43 Greece 51.7 94 Mali * 0.1 44 China 38.2 94 Tanzania * 0.1 45 Lithuania 36.1 96 Malawi * 0.1 46 Brazil 35.0 97 Mozambique 0.1 47 Romania 25.4 98 Ghana 0.1 48 Poland 24.3 99 Gambia 0.1 49 Russian Federation 22.6 100 Cameroon 0.1 50 Argentina 21.3 101 Nigeria 0.0 51 South Africa 21.2 102 Ethiopia 0.0 0 3000 6000 9000 12000 15000 0 3000 6000 9000 12000 15000 Note: *estimate Source: WITSA, 2003 I.1.09 ICT service exports, 2001 Communications and computer service exports per capita, 2001 RANK COUNTRY VALUE RANK COUNTRY VALUE 1 Luxembourg 7504.43 52 Tunisia 47.72 2 Singapore 3623.48 53 Thailand 43.62 3 Ireland 3071.93 54 Serbia *43.01 4 Hong Kong SAR 2459.23 55 Namibia *42.59 5 Austria 1944.59 56 Egypt 37.55 6 Belgium 1835.48 57 Algeria *37.48 7 Netherlands 1597.28 58 Zimbabwe *33.00 8 Sweden 1300.08 59 Brazil 32.47 9 Israel 1173.83 60 Romania 31.93 10 Denmark 1159.61 61 Nicaragua 31.77 11 Iceland 1055.12 62 El Salvador 28.40 12 Norway 1003.99 63 Dominican Republic 28.13 13 Switzerland 984.05 64 Guatemala 27.56 14 United Kingdom 837.65 65 Uruguay 27.26 15 Finland 551.75 66 Morocco 24.42 16 Germany 537.73 67 Cameroon *22.82 17 France 500.83 68 Argentina 22.11 18 Canada 495.21 69 Honduras 22.04 19 Malta 469.29 70 Sri Lanka 17.18 20 United States 432.06 71 Mexico 16.37 21 Italy 383.49 72 Senegal *16.30 22 Spain 362.91 73 Mozambique 16.12 23 Hungary 298.88 74 Russian Federation 16.07 234 24 Japan 271.33 75 Angola 15.53 25 Mauritius 235.28 76 Ecuador 13.97 26 Estonia 233.31 77 India 13.86 27 Czech Republic 220.69 78 South Africa 13.69 28 Slovenia 220.22 79 Haiti *11.96 Presentation 29 New Zealand 214.25 79 Vietnam *11.96 Data 30 Malaysia 194.29 81 Peru 11.36 3 31 Croatia 189.34 82 Kenya 10.88 artP 32 Korea 188.97 83 Venezuela 9.72 33 Australia 188.27 84 Ukraine 8.97 34 Taiwan *186.59 85 Philippines 8.74 35 Greece 183.30 86 Colombia 8.42 36 Trinidad and Tobago *178.65 87 China 8.17 37 Portugal 156.24 88 Malawi 6.85 38 Slovak Republic 141.54 89 Bolivia 6.20 39 Jamaica 111.65 90 Chad *5.58 40 Costa Rica 109.50 91 Gambia *5.12 41 Jordan 100.90 91 Mali *5.12 42 Latvia 98.75 93 Nigeria *4.63 43 Chile 75.90 94 Bangladesh 4.37 44 Panama 70.31 95 Tanzania 4.01 45 Turkey 69.37 96 Ethiopia 3.47 46 Paraguay 67.05 97 Ghana 3.28 47 Macedonia, FYR 62.10 98 Pakistan 3.26 48 Bulgaria 61.53 99 Madagascar 1.24 49 Lithuania 60.32 100 Indonesia 1.03 50 Poland 53.69 101 Uganda 0.95 51 Botswana *51.09 102 Zambia 0.01 0 1000 2000 3000 4000 5000 6000 7000 8000 0 1000 2000 3000 4000 5000 6000 7000 8000 Note: *estimate Source: International Monetary Fund and the World Bank Section I Environment Component Political/Regulatory Environment 235 Presentation Data 3 artP I.2.01 Overall administrative burden, 2003 Administrative regulations in your country are (1 = burdensome, 7 = not burdensome) RANK COUNTRY SCORE SD RANK COUNTRY SCORE SD 1 Singapore 5.12 1.42 52 Lithuania 2.81 1.12 2 Hong Kong SAR 5.03 1.34 53 Brazil 2.77 1.44 3 Finland 4.69 1.47 54 Portugal 2.76 1.20 4 Switzerland 4.25 1.43 55 Slovenia 2.76 1.09 5 Iceland 4.19 1.30 56 Netherlands 2.75 1.17 6 Estonia 4.17 1.34 57 Czech Republic 2.71 1.32 7 Taiwan 4.09 1.31 58 Hungary 2.69 1.32 8 Gambia 4.09 2.11 59 Haiti 2.68 1.77 9 Jordan 3.86 1.53 60 New Zealand 2.67 1.14 10 Tunisia 3.76 1.52 61 Mali 2.67 1.60 11 Sweden 3.75 1.46 61 Spain 2.67 1.16 12 Austria 3.69 1.40 63 Kenya 2.64 1.35 13 Latvia 3.68 1.55 64 Colombia 2.56 1.24 14 Denmark 3.64 1.53 65 Bulgaria 2.53 1.29 15 Indonesia 3.63 1.53 66 Turkey 2.50 1.22 16 Malaysia 3.59 1.21 67 India 2.49 1.23 17 Luxembourg 3.56 1.62 68 Ethiopia 2.45 1.49 18 Ireland 3.43 1.52 69 Macedonia, FYR 2.41 1.68 19 United States 3.37 1.63 70 Honduras 2.39 1.32 20 Malawi 3.35 1.35 71 Panama 2.39 1.32 21 China 3.32 1.26 72 Ukraine 2.38 1.25 22 Australia 3.30 1.59 73 Italy 2.37 1.25 23 Korea 3.23 1.31 74 Uruguay 2.37 1.22 236 24 Germany 3.22 1.50 75 Greece 2.36 1.32 25 Thailand 3.16 1.40 76 Nigeria 2.35 1.44 26 Botswana 3.13 1.67 77 Mozambique 2.32 1.38 27 Ghana 3.11 1.60 78 Nicaragua 2.30 1.17 28 Costa Rica 3.09 1.42 79 Cameroon 2.29 1.40 Presentation 29 El Salvador 3.09 1.33 80 Bolivia 2.28 1.23 Data 30 Chile 3.08 1.40 81 Serbia 2.28 1.28 3 31 Israel 3.05 1.56 82 Mexico 2.26 1.08 artP 32 Norway 3.04 1.51 83 Pakistan 2.26 1.24 33 Tanzania 3.03 1.53 84 Guatemala 2.25 1.16 34 Canada 3.03 1.52 85 Croatia 2.24 1.22 35 Angola 3.00 2.00 86 Slovak Republic 2.23 1.00 36 Morocco 2.98 2.08 87 Mauritius 2.22 1.29 37 Namibia 2.96 1.47 88 Ecuador 2.21 1.22 38 United Kingdom 2.95 1.39 89 Senegal 2.19 1.39 39 Malta 2.95 1.31 90 France 2.14 1.18 40 Vietnam 2.94 1.57 91 Peru 2.08 1.08 41 Uganda 2.94 1.69 92 Jamaica 2.07 1.14 42 Trinidad and Tobago 2.92 1.41 93 Belgium 2.07 1.18 43 Chad 2.92 2.15 94 Zimbabwe 2.06 1.12 44 Paraguay 2.90 1.64 95 Argentina 2.05 1.09 44 Sri Lanka 2.90 1.32 96 Bangladesh 2.03 1.10 46 Dominican Republic 2.88 1.69 97 Romania 1.96 1.20 47 Zambia 2.86 1.48 98 Philippines 1.96 0.95 48 South Africa 2.85 1.19 99 Algeria 1.94 1.11 49 Egypt 2.83 2.13 100 Russian Federation 1.87 1.17 50 Japan 2.82 1.42 101 Madagascar 1.85 1.04 51 Poland 2.82 1.31 102 Venezuela 1.58 0.97 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 Source: World Economic Forum, Executive Opinion Survey 2003 I.2.02 Quality of the legal system, 2003 The judiciary in your country is independent from political influences of members of government, citizens, or firms (1 = no, heavily influenced, 7 = yes, entirely independent) RANK COUNTRY SCORE SD RANK COUNTRY SCORE SD 1 Finland 6.57 0.81 52 Brazil 3.87 1.44 2 Israel 6.50 1.15 53 Vietnam 3.86 1.42 3 Australia 6.40 0.82 54 Costa Rica 3.83 1.73 4 Denmark 6.36 1.38 55 Spain 3.79 1.45 5 Netherlands 6.31 1.14 56 Zambia 3.79 1.74 6 Iceland 6.31 0.88 57 Turkey 3.73 1.89 7 New Zealand 6.29 0.84 58 Uganda 3.73 1.87 8 Germany 6.13 1.13 59 Egypt 3.67 1.86 9 Sweden 6.04 1.29 60 Dominican Republic 3.61 1.78 10 United Kingdom 5.97 1.22 61 Nigeria 3.51 1.58 11 Botswana 5.91 1.34 62 China 3.42 1.59 12 Switzerland 5.86 1.29 63 Mali 3.41 2.20 13 United States 5.73 1.43 64 Mexico 3.33 1.63 14 Portugal 5.67 1.14 65 Lithuania 3.27 1.45 15 South Africa 5.65 1.22 66 Sri Lanka 3.25 1.52 16 Norway 5.64 1.55 67 Indonesia 3.24 1.38 17 Hong Kong SAR 5.57 1.67 68 Slovak Republic 3.17 1.67 18 Luxembourg 5.55 1.31 69 Senegal 3.13 1.75 19 Austria 5.54 1.63 70 Colombia 3.11 1.40 20 Canada 5.47 1.78 71 Morocco 3.10 1.94 21 Malta 5.27 1.56 72 Cameroon 2.98 2.00 22 Estonia 5.25 1.53 73 Philippines 2.91 1.15 23 Jordan 5.23 1.44 74 Bangladesh 2.88 1.50 24 Trinidad and Tobago 5.23 237 1.37 75 El Salvador 2.87 1.45 25 India 5.22 1.53 76 Algeria 2.83 1.56 26 Ireland 5.20 1.73 77 Pakistan 2.80 1.38 27 Singapore 5.18 1.64 78 Bulgaria 2.72 1.44 28 Belgium 5.02 1.44 79 Croatia 2.71 1.65 Presentation 29 Hungary 4.90 1.55 80 Serbia 2.67 1.39 30 Gambia 4.84 1.79 81 Russian Federation 2.52 1.35 Data 31 Uruguay 4.83 1.74 82 Romania 2.40 1.60 3 32 Namibia 4.83 1.51 83 Ukraine 2.40 1.43 artP 33 Tunisia 4.83 1.49 84 Kenya 2.39 1.44 34 Thailand 4.75 1.66 85 Mozambique 2.37 1.45 35 Greece 4.74 1.56 86 Madagascar 2.37 1.39 36 Japan 4.72 1.68 87 Ethiopia 2.33 1.52 37 Taiwan 4.72 1.30 88 Macedonia, FYR 2.29 1.57 38 Chile 4.62 1.63 89 Panama 2.21 1.15 38 Tanzania 4.62 1.69 90 Guatemala 2.15 1.26 40 Malawi 4.56 1.88 91 Angola 1.95 1.16 41 Malaysia 4.53 1.44 92 Peru 1.95 1.12 42 France 4.39 1.73 93 Honduras 1.94 1.06 43 Italy 4.38 1.74 94 Ecuador 1.89 1.24 44 Mauritius 4.35 1.66 95 Argentina 1.79 1.05 45 Slovenia 4.26 1.59 96 Chad 1.77 1.37 46 Czech Republic 4.23 1.51 97 Zimbabwe 1.72 1.14 47 Latvia 4.20 1.65 98 Bolivia 1.70 0.98 48 Jamaica 4.19 1.72 99 Nicaragua 1.58 1.02 49 Korea 4.06 1.38 100 Paraguay 1.42 0.70 50 Ghana 4.05 1.75 101 Venezuela 1.21 0.48 51 Poland 3.90 1.61 102 Haiti 1.08 0.28 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 Source: World Economic Forum, Executive Opinion Survey 2003 I.2.03 Laws relating to ICT, 2003 Laws relating to information and communication technologies (ICT) (electronic commerce, digital signatures, consumer protection) are (1 = nonexistent, 7 = well developed and enforced) RANK COUNTRY SCORE SD RANK COUNTRY SCORE SD 1 Finland 5.86 0.88 52 Philippines 3.62 1.29 2 Singapore 5.75 0.94 53 Ghana 3.59 1.65 3 Australia 5.55 0.94 54 Vietnam 3.54 1.50 4 Denmark 5.54 1.10 55 Tanzania 3.53 1.68 5 United States 5.48 1.09 56 Mexico 3.53 1.30 6 Estonia 5.46 1.13 57 Morocco 3.49 1.70 7 Malaysia 5.42 1.10 58 Venezuela 3.47 1.33 8 United Kingdom 5.38 1.16 59 Jamaica 3.44 1.36 9 Iceland 5.15 0.99 60 Peru 3.43 1.36 10 New Zealand 5.06 1.10 61 Croatia 3.41 1.55 11 Sweden 5.04 0.96 62 Costa Rica 3.39 1.47 12 Korea 4.99 1.10 63 Egypt 3.35 1.81 13 France 4.99 1.23 64 Greece 3.33 1.39 14 Germany 4.96 1.42 65 Serbia 3.28 1.38 15 Norway 4.78 1.15 66 Uganda 3.27 1.86 16 Canada 4.77 1.58 67 Kenya 3.24 1.38 17 Taiwan 4.70 1.12 68 Namibia 3.20 1.47 18 Hong Kong SAR 4.69 1.34 69 Sri Lanka 3.18 1.37 19 Tunisia 4.69 1.47 70 Bulgaria 3.16 1.39 20 Luxembourg 4.68 1.25 71 Argentina 3.16 1.22 21 Israel 4.67 1.14 72 Zambia 3.16 1.42 22 Ireland 4.63 1.26 73 Botswana 3.13 1.39 23 Slovenia 4.60 1.18 74 El Salvador 3.06 1.41 238 24 South Africa 4.58 1.14 75 Nigeria 3.06 1.53 25 Switzerland 4.56 1.48 76 Russian Federation 3.05 1.38 26 Netherlands 4.55 1.24 77 Pakistan 3.04 1.20 27 Japan 4.44 1.31 78 Senegal 3.04 1.86 28 Latvia 4.35 1.51 79 Uruguay 3.02 1.27 Presentation 29 Malta 4.33 1.38 80 Trinidad and Tobago 2.98 1.28 Data 30 Chile 4.32 1.27 81 Ecuador 2.97 1.30 3 31 Austria 4.26 1.49 82 Zimbabwe 2.84 1.39 artP 32 Mauritius 4.25 1.14 83 Gambia 2.84 1.94 33 Spain 4.23 1.06 84 Macedonia, FYR 2.83 1.63 34 Italy 4.22 1.40 85 Ukraine 2.76 1.35 35 Czech Republic 4.16 1.16 86 Turkey 2.75 1.16 36 India 4.08 1.48 87 Cameroon 2.73 1.55 37 Brazil 4.06 1.34 88 Nicaragua 2.72 1.33 38 Jordan 4.05 1.46 89 Mozambique 2.68 1.44 39 Belgium 4.02 1.28 90 Malawi 2.58 1.65 40 Dominican Republic 4.00 1.30 91 Honduras 2.54 1.34 41 Colombia 3.92 1.31 92 Guatemala 2.51 1.32 42 Panama 3.84 1.61 93 Chad 2.33 1.47 43 Thailand 3.80 1.27 94 Madagascar 2.27 1.28 44 Portugal 3.79 1.28 95 Bolivia 2.27 1.27 45 Lithuania 3.74 1.31 96 Mali 2.21 1.45 46 Poland 3.74 1.28 97 Angola 2.16 1.15 47 Slovak Republic 3.74 1.22 98 Paraguay 2.13 1.26 48 Indonesia 3.73 1.35 99 Bangladesh 2.08 1.19 49 Hungary 3.67 1.28 100 Algeria 1.97 1.20 50 Romania 3.65 1.49 101 Ethiopia 1.94 1.22 51 China 3.65 1.32 102 Haiti 1.52 0.92 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 Source: World Economic Forum, Executive Opinion Survey 2003 I.2.04 Competition in the ISP sector, 2003 Is there sufficient competition among Internet service providers (ISPs) in your country to ensure high quality, infrequent interruptions, and low prices? (1 = no, 7 = yes, equal to the best in the world) RANK COUNTRY SCORE SD RANK COUNTRY SCORE SD 1 Korea 6.14 0.97 52 China 4.18 1.29 2 United States 6.06 1.21 53 Uganda 4.14 1.64 3 Iceland 6.00 0.96 54 Turkey 4.13 1.47 4 Hong Kong SAR 5.93 1.12 55 Malawi 4.13 1.74 5 Estonia 5.89 1.28 56 Tanzania 4.10 1.64 6 Finland 5.89 1.26 57 Bolivia 4.10 1.55 7 Israel 5.86 1.01 58 Lithuania 4.10 1.55 8 United Kingdom 5.77 1.19 59 Slovenia 4.07 1.52 9 Denmark 5.68 1.57 60 Tunisia 4.04 1.72 10 Canada 5.65 1.56 61 Namibia 4.02 1.65 11 Germany 5.52 1.39 62 Venezuela 3.94 1.37 12 Sweden 5.50 1.37 63 Bangladesh 3.88 1.76 13 Chile 5.46 1.27 64 Uruguay 3.83 1.76 14 Japan 5.42 1.40 65 Ghana 3.81 1.78 15 Switzerland 5.41 1.51 66 Peru 3.79 1.52 16 Australia 5.35 1.46 67 Slovak Republic 3.79 1.71 17 Netherlands 5.35 1.45 68 Cameroon 3.78 1.96 18 Singapore 5.34 1.40 69 Indonesia 3.76 1.36 19 Jordan 5.24 1.08 70 Bulgaria 3.75 1.48 20 Italy 5.23 1.46 71 Poland 3.70 1.55 21 Austria 5.23 1.31 72 Romania 3.70 1.78 22 New Zealand 5.20 1.41 73 Kenya 3.69 1.79 23 Taiwan 5.19 1.44 74 Morocco 3.67 1.92 24 France 5.12 239 1.61 75 Ukraine 3.60 1.40 25 Norway 5.11 1.34 76 Macedonia, FYR 3.60 1.96 26 Brazil 5.08 1.48 77 Nigeria 3.59 1.77 26 India 5.08 1.45 78 Zambia 3.56 1.65 28 Argentina 4.92 1.39 79 Madagascar 3.56 1.75 Presentation 29 Thailand 4.84 1.36 80 Russian Federation 3.55 1.82 30 Luxembourg 4.84 1.35 81 Paraguay 3.49 1.64 Data 31 Belgium 4.77 1.48 82 Nicaragua 3.45 1.53 3 32 Jamaica 4.69 1.59 83 Croatia 3.45 1.80 artP 33 Egypt 4.69 1.53 84 Mali 3.37 1.94 34 Malta 4.68 1.49 85 Vietnam 3.29 1.52 35 Portugal 4.64 1.48 86 Senegal 3.28 1.99 36 Malaysia 4.53 1.48 87 Zimbabwe 3.24 1.62 37 Panama 4.48 1.81 88 Haiti 3.24 1.42 38 Pakistan 4.48 1.44 89 Honduras 3.11 1.41 39 Greece 4.44 1.46 90 Ecuador 3.10 1.56 40 Latvia 4.38 1.40 91 Serbia 3.07 1.52 41 Philippines 4.38 1.29 92 Mozambique 3.07 1.48 42 Dominican Republic 4.38 1.74 93 Botswana 2.93 1.53 43 El Salvador 4.35 1.47 94 Hungary 2.92 1.49 44 Sri Lanka 4.35 1.49 95 Angola 2.74 1.52 45 Colombia 4.32 1.34 96 Algeria 2.69 1.83 46 Gambia 4.30 2.10 97 Ireland 2.68 1.49 47 Czech Republic 4.25 1.73 98 Trinidad and Tobago 2.30 1.66 48 Spain 4.25 1.64 99 Mauritius 1.91 1.12 49 Mexico 4.23 1.66 100 Costa Rica 1.87 1.30 50 South Africa 4.23 1.79 101 Chad 1.56 1.19 51 Guatemala 4.21 1.63 102 Ethiopia 1.38 0.98 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 Source: World Economic Forum, Executive Opinion Survey 2003 I.2.05 Foreign ownership restrictions, 2003 Foreign ownership of companies in your country is (1 = rare, limited to few cases, and prohibited in key sectors, 7 = prevalent and encouraged) RANK COUNTRY SCORE SD RANK COUNTRY SCORE SD 1 United Kingdom 6.31 1.03 52 Tanzania 5.15 1.47 2 Hong Kong SAR 6.25 1.05 53 Mali 5.15 1.48 2 Ireland 6.25 0.63 54 Greece 5.14 1.29 4 Luxembourg 6.15 0.71 55 Canada 5.11 1.37 5 Singapore 6.07 1.03 56 Sri Lanka 5.09 1.40 6 Sweden 6.04 0.81 57 Peru 5.08 1.19 7 Finland 5.97 0.94 58 Taiwan 5.07 1.32 8 New Zealand 5.90 0.89 59 Portugal 5.07 1.18 9 United States 5.86 1.06 60 Angola 5.02 1.56 10 Chile 5.84 0.85 61 Bangladesh 4.99 1.77 11 Germany 5.79 1.02 62 Mozambique 4.97 1.38 12 Hungary 5.74 0.98 63 Lithuania 4.92 1.18 13 Slovak Republic 5.72 1.24 64 Trinidad and Tobago 4.88 1.34 14 Gambia 5.71 1.45 65 Nicaragua 4.87 1.45 15 Denmark 5.64 1.10 66 Turkey 4.85 1.52 16 Jamaica 5.64 0.99 67 Malaysia 4.83 1.38 17 Malawi 5.64 1.22 68 Korea 4.83 1.23 18 Belgium 5.63 0.88 69 Norway 4.81 0.92 19 France 5.62 0.96 70 Egypt 4.74 1.66 20 Austria 5.61 0.99 71 Uruguay 4.72 1.53 21 Dominican Republic 5.60 1.22 72 Italy 4.71 1.01 21 Nigeria 5.60 1.26 73 Namibia 4.70 1.40 23 Israel 5.55 1.19 74 Madagascar 4.66 1.47 240 24 Netherlands 5.55 1.07 75 Thailand 4.61 1.45 25 Botswana 5.55 1.07 76 Venezuela 4.56 1.52 26 Mexico 5.53 1.22 77 Romania 4.55 1.64 27 Spain 5.53 0.86 78 Honduras 4.54 1.58 28 Zambia 5.50 1.34 79 Colombia 4.54 1.29 Presentation 29 Estonia 5.49 1.03 80 Paraguay 4.47 1.66 Data 30 South Africa 5.48 1.08 81 China 4.45 1.58 3 31 Morocco 5.47 1.49 82 Bolivia 4.43 1.44 artP 32 Uganda 5.47 1.68 83 Philippines 4.34 1.74 33 Costa Rica 5.44 1.11 84 Vietnam 4.34 1.65 34 Ghana 5.42 1.36 85 Japan 4.33 1.23 35 Czech Republic 5.39 0.98 86 Macedonia, FYR 4.22 1.73 36 Switzerland 5.37 1.16 87 Mauritius 4.16 1.44 37 Malta 5.36 1.34 88 Guatemala 4.14 1.32 38 Argentina 5.36 1.02 89 Ukraine 4.05 1.22 39 Australia 5.35 1.23 90 Slovenia 4.02 1.02 40 Tunisia 5.31 1.51 91 Ecuador 4.00 1.39 41 India 5.30 1.32 92 Croatia 3.97 1.37 42 Brazil 5.25 0.95 93 Iceland 3.96 1.65 43 Latvia 5.24 0.94 94 Bulgaria 3.93 1.33 44 Senegal 5.23 1.21 95 Indonesia 3.86 1.29 45 Panama 5.23 1.19 96 Algeria 3.86 1.82 46 Pakistan 5.23 1.55 97 Chad 3.81 2.04 47 Jordan 5.23 1.28 98 Haiti 3.75 1.59 48 Kenya 5.22 1.26 99 Russian Federation 3.75 1.41 49 Cameroon 5.20 1.19 100 Serbia 3.58 1.44 50 El Salvador 5.20 1.39 101 Zimbabwe 3.44 1.29 51 Poland 5.16 1.19 102 Ethiopia 3.30 1.92 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 Source: World Economic Forum, Executive Opinion Survey 2003 I.2.06 Efficiency of the tax system, 2003 Your country's tax system is (1 = highly complex and distortive on business decisions, 7 = simple and transparent) RANK COUNTRY SCORE SD RANK COUNTRY SCORE SD 1 Hong Kong SAR 6.33 1.26 52 Nigeria 3.09 1.55 2 Singapore 5.84 0.97 53 Canada 3.08 1.46 3 Botswana 5.45 1.23 54 Algeria 3.04 1.65 4 Estonia 5.42 1.36 55 Tanzania 2.97 1.75 5 Malaysia 5.28 0.96 56 Norway 2.96 1.43 6 Iceland 5.22 1.12 57 Egypt 2.96 1.81 7 Luxembourg 5.12 1.12 58 Mali 2.94 1.71 8 Malta 4.99 1.10 59 India 2.94 1.23 9 El Salvador 4.76 1.34 60 Hungary 2.92 1.35 10 Mauritius 4.66 1.21 61 Vietnam 2.92 1.33 11 Taiwan 4.65 1.36 62 Philippines 2.89 1.46 12 Finland 4.64 1.61 63 Senegal 2.88 1.40 13 Gambia 4.62 2.11 64 Jamaica 2.86 1.42 14 Trinidad and Tobago 4.57 1.40 64 Uganda 2.86 1.69 15 New Zealand 4.49 1.47 66 Peru 2.86 1.24 16 Switzerland 4.44 1.36 67 Sweden 2.86 1.48 17 Namibia 4.36 1.42 68 Honduras 2.85 1.53 18 Tunisia 4.33 1.54 69 Austria 2.81 1.37 19 Chile 4.32 1.45 70 Angola 2.78 1.41 20 Ireland 4.20 1.52 71 Madagascar 2.72 1.35 20 Jordan 4.20 1.32 72 Colombia 2.70 1.36 22 Ghana 4.02 1.62 73 Cameroon 2.69 1.26 23 Netherlands 3.95 1.29 74 Nicaragua 2.69 1.32 241 24 Latvia 3.89 1.60 75 Czech Republic 2.69 1.25 25 Spain 3.86 1.28 76 Ethiopia 2.65 1.49 26 Zambia 3.80 1.85 77 Israel 2.62 1.12 27 Thailand 3.80 1.30 78 Uruguay 2.60 1.23 28 South Africa 3.76 1.33 79 France 2.60 1.21 Presentation 29 China 3.72 1.23 80 Denmark 2.57 1.23 30 Sri Lanka 3.57 1.51 81 Japan 2.57 1.11 Data 31 Morocco 3.53 1.94 82 Lithuania 2.47 1.07 3 32 Malawi 3.50 1.67 83 Bangladesh 2.46 1.12 artP 33 Zimbabwe 3.48 1.77 84 Italy 2.45 1.06 34 Paraguay 3.47 1.52 85 Ecuador 2.43 1.20 35 United Kingdom 3.46 1.40 86 Belgium 2.41 1.34 36 Indonesia 3.45 1.33 87 Poland 2.38 1.35 37 Korea 3.43 1.10 88 Greece 2.29 1.11 38 Croatia 3.36 1.82 89 Bulgaria 2.27 1.23 39 Slovenia 3.36 1.43 90 Mexico 2.22 1.11 40 Australia 3.35 1.76 91 Slovak Republic 2.21 1.09 41 Costa Rica 3.34 1.52 92 Venezuela 2.21 1.12 42 Bolivia 3.32 1.50 93 Pakistan 2.19 1.12 43 Haiti 3.28 1.65 94 Turkey 2.17 1.02 44 Dominican Republic 3.23 1.59 95 Guatemala 2.15 1.17 45 United States 3.20 1.43 96 Russian Federation 2.13 1.17 46 Serbia 3.18 1.75 97 Chad 2.10 1.46 47 Portugal 3.13 1.29 98 Ukraine 1.78 0.97 48 Macedonia, FYR 3.12 1.96 99 Argentina 1.77 0.84 49 Kenya 3.12 1.39 100 Romania 1.72 1.15 50 Panama 3.12 1.35 101 Brazil 1.71 0.79 51 Mozambique 3.11 1.58 102 Germany 1.50 0.61 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 Source: World Economic Forum, Executive Opinion Survey 2003 I.2.07 Freedom of the press, 2003 In your country, can newspapers publish stories of their choosing without fear of censorship or retaliation? (1 = no, 7 = yes, whatever they want) RANK COUNTRY SCORE SD RANK COUNTRY SCORE SD 1 Denmark 6.98 0.15 52 Macedonia, FYR 5.48 2.03 2 Sweden 6.89 0.31 53 Jamaica 5.47 1.81 3 Netherlands 6.79 0.76 54 Argentina 5.44 1.63 4 Germany 6.76 0.60 55 Botswana 5.39 1.50 5 Australia 6.75 0.44 56 Algeria 5.36 1.62 6 Portugal 6.72 0.62 57 Bolivia 5.29 1.62 7 United States 6.71 0.54 58 Korea 5.27 1.37 8 Finland 6.57 1.22 59 Latvia 5.24 1.25 9 Belgium 6.57 0.75 60 Dominican Republic 5.24 1.56 10 Switzerland 6.56 0.71 61 Slovenia 5.20 1.57 11 Austria 6.51 0.94 62 Thailand 5.11 1.70 12 Iceland 6.50 0.76 63 Panama 5.07 1.70 13 New Zealand 6.49 0.80 64 Nigeria 5.06 1.76 14 Norway 6.44 1.22 65 Namibia 5.04 1.69 15 United Kingdom 6.40 1.12 65 Pakistan 5.04 1.81 16 Philippines 6.38 1.09 67 Honduras 5.04 1.82 17 Brazil 6.35 0.93 68 Madagascar 5.01 1.71 18 Luxembourg 6.32 0.84 69 Paraguay 4.98 1.95 19 Canada 6.32 1.15 70 Turkey 4.93 1.80 20 Estonia 6.31 1.07 71 Gambia 4.85 1.82 21 Costa Rica 6.24 1.42 72 Guatemala 4.83 1.86 22 Israel 6.24 1.51 73 Malawi 4.76 2.15 23 Spain 6.24 1.02 74 Croatia 4.74 2.02 242 24 Greece 6.22 1.14 75 Bangladesh 4.66 1.87 25 France 6.19 1.19 76 Romania 4.66 2.06 26 India 6.19 1.01 77 Zambia 4.64 2.00 27 Uruguay 6.17 1.11 78 Bulgaria 4.61 1.84 28 South Africa 6.16 1.22 79 Kenya 4.59 1.95 Presentation 29 El Salvador 6.15 1.18 80 Tanzania 4.57 1.84 Data 30 Chile 6.07 1.14 81 Mozambique 4.43 1.78 3 31 Japan 6.07 1.15 82 Russian Federation 4.31 1.84 artP 32 Czech Republic 6.05 1.20 83 Sri Lanka 4.15 1.86 33 Slovak Republic 5.91 1.37 84 Haiti 4.12 1.81 34 Italy 5.85 1.52 85 Jordan 4.11 1.63 35 Malta 5.85 1.41 86 Serbia 4.09 2.03 36 Mali 5.84 1.79 87 Tunisia 3.97 1.80 37 Lithuania 5.84 1.41 88 Venezuela 3.82 1.91 38 Nicaragua 5.81 1.77 89 Indonesia 3.82 1.31 39 Hong Kong SAR 5.80 1.73 90 Egypt 3.77 2.00 40 Mexico 5.79 1.22 91 Morocco 3.51 1.99 41 Mauritius 5.78 1.52 92 Cameroon 3.45 1.92 42 Hungary 5.77 1.44 93 Uganda 3.43 2.10 43 Ghana 5.75 1.49 94 Ethiopia 3.40 2.01 44 Taiwan 5.72 1.24 95 Chad 3.27 2.36 45 Peru 5.70 1.49 96 Singapore 3.25 1.71 46 Senegal 5.69 1.29 97 Vietnam 3.15 1.55 47 Trinidad and Tobago 5.67 1.48 98 Malaysia 3.06 1.56 48 Ireland 5.63 1.85 99 China 3.05 1.40 49 Colombia 5.62 1.20 100 Angola 2.95 1.96 50 Poland 5.58 1.31 101 Ukraine 2.94 1.63 51 Ecuador 5.48 1.50 102 Zimbabwe 2.85 2.00 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 Source: World Economic Forum, Executive Opinion Survey 2003 Section I Environment Component Infrastructure Environment 243 Presentation Data 3 artP I.3.01 Overall infrastructure quality, 2003 General infrastructure in your country is (1 = poorly developed and inefficient, 7 = among the best in the world) RANK COUNTRY SCORE SD RANK COUNTRY SCORE SD 1 Singapore 6.77 0.44 52 Mexico 3.59 1.17 2 Switzerland 6.73 0.79 53 Gambia 3.55 1.50 3 Denmark 6.67 0.62 54 Turkey 3.48 1.33 4 Germany 6.64 0.81 55 China 3.47 1.23 5 Finland 6.56 0.69 56 Jamaica 3.45 1.23 6 France 6.46 0.68 57 Slovak Republic 3.35 1.36 7 Sweden 6.39 0.74 58 Hungary 3.34 1.21 8 United States 6.35 1.08 59 Ukraine 3.28 1.49 9 Australia 6.30 0.66 60 Russian Federation 3.25 1.29 10 Hong Kong SAR 6.27 1.10 61 Tanzania 3.21 1.29 11 Iceland 6.20 0.65 62 Venezuela 3.21 1.32 12 Malaysia 6.08 0.74 63 Zimbabwe 3.19 1.31 13 Austria 6.06 1.06 64 Ireland 3.15 1.33 14 Canada 6.04 1.13 65 Morocco 3.10 1.31 15 Luxembourg 5.97 0.83 66 Colombia 3.10 1.00 16 Netherlands 5.95 1.20 67 Sri Lanka 3.06 1.27 17 Belgium 5.91 0.90 68 Pakistan 3.00 1.25 18 Japan 5.64 1.27 69 Algeria 2.96 1.13 19 South Africa 5.24 0.97 70 India 2.92 1.31 20 Namibia 5.21 1.00 71 Ghana 2.92 1.21 21 Korea 5.20 0.97 72 Costa Rica 2.89 1.12 22 New Zealand 5.20 1.23 73 Poland 2.83 1.12 23 Jordan 5.17 0.87 74 Bulgaria 2.79 1.18 244 24 Spain 5.03 0.93 75 Guatemala 2.75 1.19 25 Israel 5.00 0.95 76 Vietnam 2.75 1.16 26 United Kingdom 4.95 1.26 77 Romania 2.71 1.46 27 Taiwan 4.95 1.05 78 Ecuador 2.69 0.93 28 Botswana 4.92 1.17 79 Malawi 2.68 1.27 Presentation 29 Thailand 4.89 1.07 80 Uganda 2.63 1.35 Data 30 Portugal 4.85 0.89 81 Croatia 2.62 1.25 3 31 Chile 4.75 0.83 82 Zambia 2.56 1.19 artP 32 Estonia 4.75 1.01 83 Peru 2.53 1.07 33 Tunisia 4.70 1.09 84 Cameroon 2.52 0.97 34 Norway 4.70 1.46 85 Macedonia, FYR 2.48 1.31 35 Mauritius 4.63 1.10 86 Honduras 2.48 1.02 36 Slovenia 4.55 1.04 87 Senegal 2.37 1.04 37 Latvia 4.38 1.21 88 Kenya 2.33 1.00 38 Czech Republic 4.34 1.32 89 Philippines 2.32 1.04 39 Lithuania 4.22 1.32 90 Bangladesh 2.09 0.92 40 Italy 4.21 1.40 91 Mali 2.05 1.00 41 Trinidad and Tobago 4.03 1.18 92 Mozambique 1.97 0.96 42 Malta 3.99 1.23 93 Ethiopia 1.96 1.03 43 Egypt 3.89 1.36 94 Serbia 1.93 0.90 44 Dominican Republic 3.86 1.12 95 Nicaragua 1.91 0.91 45 Argentina 3.85 1.26 96 Madagascar 1.91 0.90 46 Panama 3.81 1.22 97 Paraguay 1.86 0.88 47 Brazil 3.81 1.23 98 Bolivia 1.86 0.81 48 Uruguay 3.78 1.11 99 Nigeria 1.79 0.86 49 Greece 3.78 1.10 100 Angola 1.51 0.59 50 El Salvador 3.75 1.06 101 Haiti 1.33 0.56 51 Indonesia 3.68 1.32 102 Chad 1.23 0.57 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 Source: World Economic Forum, Executive Opinion Survey 2003 I.3.02 Waiting time for telephone lines, 2000 Waiting time for telephone lines in years, 2000 RANK COUNTRY VALUE RANK COUNTRY VALUE 1 Australia 0.00 52 Malaysia 0.74 1 Austria 0.00 53 India 0.75 1 Belgium *0.00 54 Poland 0.81 1 Canada 0.00 55 Senegal 0.82 1 Denmark 0.00 56 Croatia 0.88 1 Finland 0.00 57 Lithuania 0.94 1 France 0.00 58 Tunisia 0.95 1 Germany 0.00 59 Mauritius 0.98 1 Hong Kong SAR 0.00 60 South Africa 1.10 1 Iceland 0.00 61 Peru 1.25 1 Ireland *0.00 62 Tanzania 1.30 1 Italy 0.00 63 Estonia 1.36 1 Japan 0.00 64 Nigeria 1.37 1 Korea 0.00 65 Latvia * 1.56 1 Luxembourg 0.00 66 Thailand 1.63 1 Netherlands 0.00 67 Dominican Republic 1.65 1 New Zealand 0.00 68 Pakistan 1.80 1 Norway 0.00 69 Sri Lanka 1.90 1 Singapore 0.00 70 Egypt 1.92 1 Sweden 0.00 71 Colombia 1.96 1 Switzerland 0.00 72 El Salvador 2.22 1 United Kingdom 0.00 73 Ecuador 2.33 1 United States 0.00 74 Mali 2.44 245 1 Uruguay 0.00 75 Ghana 3.12 25 Israel *0.01 76 Macedonia, FYR 3.12 25 Spain 0.01 77 Serbia 3.17 27 Chile 0.04 78 Mozambique * 3.18 28 Madagascar 0.06 79 Bangladesh 3.29 Presentation 29 Slovenia 0.08 80 Uganda * 3.61 30 Malta 0.08 81 Bulgaria 3.62 Data 31 Hungary 0.12 82 Guatemala 3.69 3 32 Morocco 0.12 83 Romania 3.83 artP 33 Mexico 0.13 84 Indonesia 4.64 34 Czech Republic 0.16 85 Haiti * 4.64 35 Argentina 0.17 85 Vietnam * 4.64 36 Taiwan *0.17 87 Russian Federation * 5.13 37 Greece 0.19 88 China * 5.27 38 Bolivia 0.19 88 Philippines * 5.27 39 Portugal 0.25 90 Algeria * 5.37 40 Jordan 0.25 91 Gambia 5.98 41 Costa Rica 0.33 92 Cameroon 6.24 42 Turkey 0.47 93 Jamaica 6.53 43 Chad 0.47 94 Zambia 6.73 44 Brazil 0.52 95 Honduras 7.82 45 Trinidad and Tobago 0.54 96 Ethiopia 7.83 46 Botswana 0.55 97 Ukraine 7.91 47 Paraguay 0.66 98 Kenya 8.10 48 Slovak Republic 0.68 99 Angola 8.55 49 Panama *0.70 100 Malawi 9.10 49 Venezuela *0.70 101 Nicaragua 9.10 51 Namibia 0.70 102 Zimbabwe 10.00 0 1 2 3 4 5 6 7 8 9 10 0 1 2 3 4 5 6 7 8 9 10 Note: *estimate Source: International Telecommunication Union I.3.03 Telephone mainlines, 2001 Telephone mainlines per 1,000 inhabitants, 2001 RANK COUNTRY VALUE RANK COUNTRY VALUE 1 Taiwan 746.0 52 Jamaica 197.0 2 Switzerland 739.0 53 Malaysia 196.0 3 Norway 720.0 54 Romania 184.0 4 Denmark 719.0 55 Colombia 171.0 5 Canada 676.0 56 Panama 148.0 6 United States 667.0 57 China 137.0 7 Germany 634.0 57 Mexico 137.0 8 Netherlands 621.0 59 Jordan 127.0 9 Iceland * 603.6 60 South Africa 112.0 10 Japan 597.0 61 Dominican Republic 110.0 11 United Kingdom 588.0 62 Tunisia 109.0 12 Hong Kong SAR 580.0 62 Venezuela 109.0 13 France 573.0 64 Ecuador 104.0 14 Finland 548.0 64 Egypt 104.0 15 Greece 529.0 66 Thailand 99.0 16 Australia 519.0 67 El Salvador 93.0 17 Sweden * 506.8 68 Botswana 91.0 18 Belgium 498.0 69 Peru 78.0 19 Korea 486.0 70 Namibia 66.0 20 Ireland 485.0 71 Guatemala 65.0 21 New Zealand 477.0 72 Bolivia 62.0 22 Israel 476.0 73 Algeria 61.0 23 Italy 471.0 74 Paraguay 51.0 246 23 Singapore 471.0 75 Honduras 47.0 25 Austria 468.0 76 Sri Lanka 44.0 26 Luxembourg * 452.6 77 Philippines 42.0 27 Spain 431.0 78 Morocco 41.0 28 Portugal 427.0 79 India 38.0 Presentation 29 Slovenia 401.0 79 Vietnam 38.0 Data 30 Malta * 382.3 81 Indonesia 35.0 3 31 Czech Republic 375.0 82 Nicaragua 31.0 artP 32 Hungary 374.0 83 Gambia 26.0 33 Croatia 365.0 84 Senegal 25.0 34 Bulgaria 359.0 85 Pakistan 23.0 35 Estonia 352.0 86 Zimbabwe 19.0 36 Lithuania 313.0 87 Ghana 12.0 37 Latvia 308.0 88 Haiti 10.0 38 Poland 295.0 88 Kenya 10.0 39 Slovak Republic 288.0 90 Zambia 8.0 40 Turkey 285.0 91 Cameroon 7.0 41 Uruguay 283.0 92 Angola 6.0 42 Macedonia, FYR 263.0 93 Malawi 5.0 43 Mauritius 257.0 93 Nigeria 5.0 44 Russian Federation 243.0 95 Bangladesh 4.0 45 Trinidad and Tobago 240.0 95 Ethiopia 4.0 46 Chile 233.0 95 Madagascar 4.0 47 Costa Rica 230.0 95 Mali 4.0 48 Serbia * 225.7 95 Mozambique 4.0 49 Argentina 224.0 95 Tanzania 4.0 50 Brazil 218.0 101 Uganda 3.0 51 Ukraine 212.0 102 Chad 1.0 0 100 200 300 400 500 600 700 800 0 100 200 300 400 500 600 700 800 Note: *estimate Source: World Bank, World Development Indicators 2003 using International Telecommunication Union data I.3.04 Public pay telephones, 2001 Public pay telephones per 1,000 inhabitants, 2001 RANK COUNTRY VALUE RANK COUNTRY VALUE 1 Namibia *12.59 52 Ireland 2.46 2 Macedonia, FYR *11.10 53 United Kingdom 2.43 3 Korea 10.54 54 Japan * 2.28 4 Jamaica * 9.37 55 Bangladesh * 2.26 5 Brazil 7.89 56 Russian Federation * 2.26 6 Malaysia 7.11 57 Slovenia 2.21 7 New Zealand * 7.09 58 Iceland 2.12 8 Mexico 6.95 59 Romania 2.10 9 Singapore * 6.62 60 Trinidad and Tobago 2.00 10 Greece 6.54 61 Lithuania 1.95 11 Norway * 6.32 62 Botswana 1.85 12 Taiwan 6.16 63 Estonia 1.81 13 Croatia * 6.14 64 Indonesia 1.76 14 Switzerland 5.59 65 Finland 1.70 15 Canada 5.42 66 Belgium 1.62 16 Argentina 5.39 67 Latvia 1.60 17 Italy 5.23 68 Spain 1.60 18 Israel * 5.12 69 Senegal 1.59 19 United States 4.80 70 Jordan 1.51 20 Malta 4.77 71 Bolivia 1.43 21 Portugal 4.55 72 Colombia 1.41 22 Hungary 4.49 73 Paraguay 1.39 23 South Africa 4.42 74 Hong Kong SAR 1.38 247 24 Haiti * 4.37 75 Germany 1.37 25 Dominican Republic * 4.32 76 Denmark 1.12 26 Sweden * 4.27 77 Netherlands 1.08 27 Costa Rica 4.20 78 India 1.05 28 Panama 3.94 79 Turkey 1.04 Presentation 29 Serbia * 3.92 80 Luxembourg 0.98 30 Australia 3.85 81 Sri Lanka 0.64 Data 31 Mali * 3.70 82 Nicaragua 0.61 3 32 Uruguay 3.70 83 Egypt 0.50 artP 33 Chile 3.68 84 Pakistan 0.44 34 Venezuela 3.62 85 Gambia 0.43 35 France 3.58 86 Honduras 0.37 36 Peru 3.57 87 Ecuador 0.30 37 Zimbabwe * 3.57 88 Kenya 0.29 38 Cameroon * 3.35 89 Ghana 0.21 39 Czech Republic 3.35 90 Philippines 0.19 40 Tunisia 3.26 91 Mozambique 0.16 41 Thailand 3.23 92 Algeria 0.16 42 Guatemala 3.12 93 Angola 0.15 43 Austria 3.12 94 Uganda 0.15 44 El Salvador 2.87 95 Vietnam 0.08 45 Slovak Republic 2.79 96 Zambia 0.08 46 Bulgaria 2.76 97 Malawi 0.05 47 Morocco * 2.74 98 Madagascar 0.05 48 China 2.67 99 Tanzania 0.04 49 Ukraine * 2.52 100 Nigeria 0.04 50 Poland 2.50 101 Ethiopia 0.04 51 Mauritius 2.48 102 Chad 0.01 0 3 6 9 12 15 0 3 6 9 12 15 Note: *estimate Source: World Bank, World Development Indicators 2003 using International Telecommunication Union data I.3.05 Internet servers, 2001 Secure Internet servers per 1,000,000 inhabitants, 2001 RANK COUNTRY VALUE RANK COUNTRY VALUE 1 Iceland 431.10 52 Mexico 2.54 2 United States 270.80 53 Romania 2.38 3 Australia 175.49 54 Bulgaria 2.31 4 Luxembourg *167.55 55 Russian Federation 1.98 5 Canada 161.50 56 Jamaica 1.92 6 New Zealand 160.26 57 Thailand 1.80 7 Switzerland 149.86 58 Namibia 1.67 8 Singapore 125.00 59 Colombia 1.63 9 Sweden 117.39 60 Peru 1.32 10 United Kingdom 108.32 61 Algeria *1.23 11 Finland 95.77 62 Macedonia, FYR *1.23 12 Ireland 89.74 63 Nicaragua 1.13 13 Austria 82.59 64 El Salvador 1.08 14 Norway 82.00 65 Guatemala 1.00 15 Hong Kong SAR 76.86 66 Dominican Republic 0.93 16 Denmark 74.72 67 Ukraine 0.90 17 Germany 62.88 68 Philippines 0.87 18 Estonia 57.14 69 Ecuador 0.84 19 Slovenia 51.00 70 Paraguay 0.69 20 Netherlands 49.88 71 Honduras 0.60 21 Israel 47.78 72 Bolivia 0.57 22 Japan 40.42 73 Angola *0.52 23 Belgium 33.20 74 Cameroon *0.45 248 24 Malta * 29.14 75 Tunisia 0.41 25 France 27.49 76 Jordan 0.38 26 Czech Republic 26.50 77 Sri Lanka 0.31 27 Taiwan * 25.25 78 Indonesia 0.28 28 Spain 23.51 79 Serbia *0.27 Presentation 29 Italy 18.14 80 Morocco 0.16 Data 30 Latvia 17.92 81 Egypt 0.16 3 31 Slovak Republic 14.63 82 China 0.14 artP 32 Portugal 13.80 83 Mozambique *0.12 33 Costa Rica 13.33 84 Haiti 0.12 34 Croatia 12.98 85 India 0.12 35 Hungary 12.83 86 Chad *0.10 36 South Africa 11.79 86 Uganda *0.10 37 Lithuania 11.62 88 Senegal 0.10 38 Greece 10.94 89 Gambia *0.09 39 Uruguay 10.88 89 Madagascar *0.09 40 Mauritius 10.00 89 Tanzania *0.09 40 Panama 10.00 92 Mali 0.08 42 Trinidad and Tobago 9.23 93 Zimbabwe 0.08 43 Chile 9.04 94 Vietnam 0.07 44 Poland 8.47 95 Ghana 0.05 45 Korea 7.28 96 Ethiopia 0.05 46 Botswana * 6.92 96 Malawi *0.05 47 Malaysia 6.35 98 Pakistan 0.04 48 Argentina 6.28 99 Kenya 0.03 49 Brazil 5.88 100 Zambia *0.02 50 Venezuela 3.67 101 Nigeria 0.01 51 Turkey 3.19 102 Bangladesh 0.01 0 100 200 300 400 500 0 100 200 300 400 500 Note: *estimate Source: World Bank, World Development Indicators 2003 using International Telecommunication Union data Section II--Readiness Component Individual Readiness 249 Presentation Data 3 artP II.1.01 Public expenditure on education, 2000 Public expenditure on education per capita, 2000 RANK COUNTRY VALUE RANK COUNTRY VALUE 1 Norway 2,867.14 52 Namibia 129.15 2 Denmark 2,666.96 53 Brazil 120.71 3 Sweden 2,130.04 54 Argentina 108.72 4 Switzerland 2,043.27 55 Thailand 106.16 5 Luxembourg *1,974.73 56 Russian Federation 106.04 6 Finland 1,551.14 57 Turkey 93.28 7 Iceland *1,526.87 58 Jordan 89.43 8 Austria 1,476.50 59 Algeria *82.83 9 Belgium 1,413.66 60 Colombia *81.57 10 France 1,382.42 61 Uruguay 81.39 11 Ireland 1,374.18 62 Macedonia, FYR 74.19 12 Canada 1,278.85 63 Bulgaria 70.75 13 Netherlands 1,259.55 64 Peru 68.27 14 Hong Kong SAR *1,208.11 65 Romania 67.22 15 Israel 1,190.10 66 Morocco 65.91 16 United Kingdom 1,173.80 67 Dominican Republic 63.44 17 Germany 1,116.49 68 Serbia 63.14 18 Japan 1,095.90 69 Paraguay 61.54 19 United States 1,013.79 70 Egypt *54.21 20 Australia 961.90 71 El Salvador 51.35 21 New Zealand 936.74 72 Bolivia 51.01 22 Italy 931.32 73 Philippines 41.17 23 Singapore 794.97 74 Honduras 39.27 250 24 Spain 738.84 75 Ukraine 37.41 25 Portugal 708.20 76 Indonesia *33.02 26 Taiwan *592.92 77 Ecuador 29.94 27 Slovenia *518.60 78 Guatemala 27.84 28 Greece 477.64 79 China 27.72 Presentation 29 Korea 369.97 80 Sri Lanka 26.39 Data 29 Malta *369.97 81 Nicaragua 24.25 3 31 Estonia 325.13 82 Kenya 23.60 artP 32 Hungary 323.23 83 Angola 22.59 33 Czech Republic 299.52 84 India 19.79 34 Trinidad and Tobago 277.88 85 Senegal 16.51 35 Mexico 277.28 86 Vietnam *14.68 36 Botswana 270.69 86 Ghana 12.30 37 Malaysia 256.51 88 Nigeria *11.33 38 Poland 245.66 89 Cameroon 11.08 39 Panama 228.74 89 Madagascar 8.48 40 Lithuania 219.26 89 Bangladesh 8.18 41 Venezuela *217.41 92 Zambia 7.89 42 Latvia 206.48 93 Pakistan 7.89 43 Croatia 189.65 94 Mali 7.21 44 Jamaica 188.44 95 Gambia 6.79 45 Slovak Republic 184.22 96 Malawi 6.70 46 Costa Rica 177.27 96 Uganda 5.44 47 Chile 173.53 98 Tanzania 5.36 48 Zimbabwe 153.24 99 Mozambique 4.95 49 Tunisia 148.98 100 Haiti 4.69 50 Mauritius 132.24 101 Chad 4.61 51 South Africa 130.37 102 Ethiopia 4.36 0 500 1000 1500 2000 2500 3000 0 100 200 300 400 500 Note: *estimate Source: UNESCO Institute for Statistics II.1.02 Adult illiteracy, 2001 Adult Illiteracy rate in percent, 2001 RANK COUNTRY VALUE RANK COUNTRY VALUE 1 Australia *0.00 52 Portugal 7.47 1 Denmark *0.00 53 Malta 7.71 1 Finland *0.00 54 Panama 7.93 1 Luxembourg *0.00 55 Colombia 8.11 1 Norway *0.00 56 Sri Lanka 8.14 1 Slovak Republic *0.00 57 Ecuador 8.16 7 Czech Republic *0.10 58 Mexico 8.57 7 Iceland *0.10 59 Serbia *9.00 9 Latvia 0.20 60 Jordan 9.66 10 Estonia 0.22 61 Peru 9.80 11 Poland 0.26 62 Zimbabwe 10.66 12 Slovenia 0.35 63 Angola *11.24 13 Ukraine 0.38 64 Malaysia 12.12 14 Lithuania 0.42 65 Indonesia 12.66 15 Russian Federation 0.43 66 Brazil 12.70 16 Hungary 0.66 67 Jamaica 12.72 17 France *1.00 68 Bolivia 14.00 17 Germany *1.00 69 China 14.23 17 Japan *1.00 70 South Africa 14.39 17 Netherlands *1.00 71 Turkey 14.49 17 New Zealand *1.00 72 Mauritius 15.17 17 Sweden *1.00 73 Dominican Republic 15.99 17 Switzerland *1.00 74 Kenya 16.66 251 17 United Kingdom *1.00 75 Namibia 17.35 25 Bulgaria 1.51 76 El Salvador 20.84 26 Italy 1.52 77 Zambia 20.96 27 Trinidad and Tobago 1.61 78 Botswana 21.94 28 Croatia 1.64 79 Tanzania 23.95 Presentation 29 Romania 1.78 80 Honduras 24.44 30 Austria *2.00 81 Ghana 27.31 Data 30 Belgium *2.00 82 Cameroon 27.61 3 30 Ireland *2.00 83 Tunisia 27.89 artP 33 Korea 2.14 84 Guatemala 30.79 34 Spain 2.28 85 Uganda 32.03 35 Uruguay 2.36 86 Algeria 32.20 36 Greece 2.74 87 Madagascar 32.69 37 Canada *3.00 88 Nicaragua 33.18 37 United States *3.00 89 Nigeria 34.61 39 Argentina 3.09 90 Malawi 39.02 40 Chile 4.10 91 India 41.99 41 Costa Rica 4.32 92 Egypt 43.88 42 Thailand 4.35 93 Haiti 49.17 43 Philippines 4.85 94 Morocco 50.22 44 Israel 4.93 95 Mozambique 54.76 45 Macedonia, FYR *5.00 96 Chad 55.77 46 Taiwan *6.00 97 Pakistan 55.96 47 Hong Kong SAR 6.49 98 Bangladesh 59.45 48 Paraguay 6.50 99 Ethiopia 59.69 49 Venezuela 7.17 100 Senegal 61.70 50 Vietnam 7.32 101 Gambia 62.20 51 Singapore 7.45 102 Mali 73.60 0 20 40 60 80 0 20 40 60 80 Note: *estimate Source: UNESCO Institute for Statistics II.1.03 Tertiary enrollment, 2001 Gross tertiary enrollment rate in percent, 2001 or most recent available RANK COUNTRY VALUE RANK COUNTRY VALUE 1 Finland 83.3 52 Romania 27.3 2 Korea 77.6 53 Macedonia, FYR 24.5 3 Taiwan 77.1 54 Serbia 24.2 4 United States 72.6 55 Colombia 23.3 5 Sweden 70.0 56 Dominican Republic 23.1 6 Norway 70.0 57 Tunisia 21.7 7 New Zealand 69.2 58 Malta 21.5 8 Russian Federation 64.1 59 Mexico 20.7 9 Australia 63.3 60 El Salvador 18.2 10 Latvia 63.1 61 Ecuador 17.6 11 Slovenia 60.6 62 Brazil 16.5 12 Canada 60.0 63 Jamaica 16.4 13 United Kingdom 59.5 64 Costa Rica 16.0 14 Spain 59.4 65 South Africa 15.2 15 Denmark 58.9 66 Turkey 15.0 16 Austria 57.7 67 Algeria 15.0 17 Estonia 57.6 68 Honduras 14.7 18 Belgium 57.0 69 Indonesia 14.6 19 Poland 55.5 70 Nicaragua 11.9 20 Netherlands 55.0 71 Mauritius 11.4 21 France 53.6 72 India 10.5 22 Israel 52.7 73 Morocco 10.3 23 Lithuania 52.5 74 Paraguay 10.2 252 24 Portugal 50.2 75 Vietnam 9.7 25 Italy 49.9 76 Luxembourg 9.3 26 Greece 49.9 77 Guatemala 8.4 27 Iceland 48.7 78 China 7.5 28 Argentina 48.0 79 Bangladesh 6.6 Presentation 29 Japan 47.7 80 Trinidad and Tobago 6.5 Data 30 Ireland 47.5 81 Namibia 5.9 3 31 Germany 46.3 82 Sri Lanka 5.3 artP 32 Singapore 43.8 83 Cameroon 4.9 33 Ukraine 43.3 84 Botswana 4.7 34 Switzerland 42.1 85 Nigeria 4.0 35 Bulgaria 40.8 86 Zimbabwe 3.9 36 Hungary 40.0 87 Senegal 3.8 37 Egypt 39.0 88 Pakistan 3.6 38 Chile 37.5 89 Ghana 3.3 39 Uruguay 36.1 90 Kenya 3.0 40 Bolivia 35.7 91 Uganda 3.0 41 Thailand 35.3 92 Zambia 2.5 42 Panama 34.9 93 Madagascar 2.2 43 Philippines 31.2 94 Mali 1.9 44 Slovak Republic 30.3 95 Gambia 1.9 45 Czech Republic 29.8 96 Ethiopia 1.6 46 Croatia 29.0 97 Haiti 1.2 47 Peru 28.8 98 Chad 0.9 48 Jordan 28.6 99 Tanzania 0.7 49 Venezuela 28.5 100 Angola 0.7 50 Malaysia 28.2 101 Mozambique 0.6 51 Hong Kong SAR 27.4 102 Malawi 0.3 0 20 40 60 80 100 0 20 40 60 80 100 Source: UNESCO Institute for Statistics; World Bank, World Development Indicators 2003; National sources II.1.04 Radios, 2001 Radios per 1,000 inhabitants, 2001 or most recent available RANK COUNTRY VALUE RANK COUNTRY VALUE 1 Norway 3,324.0 52 Tanzania 406.0 2 Sweden 2,811.0 53 Slovenia 405.0 3 United States 2,117.0 54 Gambia 396.0 4 Australia 1,999.0 55 Taiwan *395.7 5 Finland 1,624.0 56 Luxembourg 391.6 6 United Kingdom 1,446.0 57 Mauritius 379.0 7 Iceland *1,420.22 58 Jordan 372.0 8 Denmark 1,400.0 59 Zimbabwe 362.0 9 Estonia 1,136.0 60 Romania 358.0 10 Canada 1,047.0 61 Croatia 340.0 11 Korea 1,034.0 62 China 339.0 12 Switzerland 1,002.0 62 Egypt 339.0 13 New Zealand 997.0 64 South Africa 338.0 14 Netherlands 980.0 65 Mexico 330.0 15 Slovak Republic 965.0 65 Spain 330.0 16 Japan 956.0 67 Portugal 304.0 17 France 950.0 68 Panama 300.0 18 Ukraine 889.0 69 Venezuela 294.0 19 Italy 878.0 70 Serbia *281.0 20 Costa Rica 816.0 71 Nicaragua 270.0 21 Czech Republic 803.0 72 Peru 269.0 22 Jamaica 796.0 73 Algeria 244.0 23 Belgium 793.0 74 Morocco 243.0 253 24 Chile 759.0 75 Chad 236.0 25 Austria 753.0 76 Thailand 235.0 26 Malta * 719.0 77 Kenya 221.0 27 Ghana 710.0 78 Madagascar 216.0 28 Latvia 700.0 79 Sri Lanka 215.0 Presentation 29 Ireland 695.0 80 Macedonia, FYR 205.0 30 Hungary 690.0 81 Nigeria 200.0 Data 31 Hong Kong SAR 686.0 82 Ethiopia 189.0 3 32 Argentina 681.0 83 Paraguay 182.0 artP 33 Bolivia 676.0 84 Dominican Republic 181.0 34 Singapore 672.0 85 Mali 180.0 35 Uruguay 603.0 86 Zambia 169.0 36 Germany 570.0 87 Cameroon 163.0 37 Colombia 549.0 88 Philippines 161.0 38 Bulgaria 543.0 89 Indonesia 159.0 39 Trinidad and Tobago 532.0 90 Tunisia 158.0 40 Israel 526.0 91 Botswana 150.0 41 Lithuania 524.0 92 Namibia 141.0 42 Poland 523.0 93 Uganda 127.0 43 Malawi 499.0 94 Senegal 126.0 44 Turkey 487.0 95 India 120.0 45 El Salvador 478.0 96 Vietnam 109.0 45 Greece 478.0 97 Pakistan 105.0 47 Brazil 433.0 98 Guatemala 79.0 48 Malaysia 420.0 99 Angola 74.0 49 Russian Federation 418.0 100 Bangladesh 49.0 50 Ecuador 413.0 101 Mozambique 44.0 50 Honduras 413.0 102 Haiti 18.0 0 500 1000 1500 2000 2500 3000 3500 0 500 1000 1500 2000 2500 3000 3500 Note: *estimate Source: UNESCO Institute for Statistics II.1.05 Television sets, 2001 Television sets per 1,000 inhabitants, 2001 or most recent available RANK COUNTRY VALUE RANK COUNTRY VALUE 1 Sweden 965.0 51 Colombia 286.0 2 United Kingdom 950.0 53 Mexico 283.0 3 Norway 883.0 54 Macedonia, FYR 282.0 4 Denmark 857.0 55 Costa Rica 231.0 5 Latvia 840.0 56 Dominican Republic *227.3 6 United States 835.0 57 Ecuador 225.0 7 Australia 731.0 58 Paraguay 218.0 7 Japan 731.0 59 Egypt 217.0 9 Iceland * 700.4 60 El Salvador 201.0 10 Canada 700.0 60 Malaysia 201.0 11 Finland 678.0 62 Serbia *200.4 12 France 632.0 63 Nigeria 200.0 13 Estonia 629.0 64 Tunisia 198.0 14 Taiwan * 620.3 65 Jamaica 194.0 15 Spain 598.0 65 Panama 194.0 16 Germany 586.0 67 Vietnam 186.0 17 Malta * 581.0 68 Venezuela 185.0 18 Luxembourg * 578.0 69 Philippines 173.0 19 New Zealand 557.0 70 Morocco 159.0 20 Switzerland 554.0 71 Indonesia 153.0 21 Netherlands 553.0 72 South Africa 152.0 22 Belgium 543.0 73 Pakistan 148.0 23 Austria 542.0 73 Peru 148.0 254 24 Russian Federation 538.0 75 Bolivia 121.0 25 Czech Republic 534.0 76 Zimbabwe *118.4 26 Uruguay 530.0 77 Ghana 118.0 27 Greece 519.0 78 Sri Lanka 117.0 28 Hong Kong SAR 504.0 79 Algeria 114.0 Presentation 29 Italy 494.0 80 Zambia 113.0 Data 30 Ukraine 456.0 81 Jordan 111.0 3 31 Bulgaria 453.0 82 Honduras 96.0 artP 32 Hungary 445.0 83 India 83.0 33 Lithuania 422.0 84 Senegal 79.0 34 Portugal 415.0 85 Nicaragua 69.0 35 Slovak Republic 407.0 86 Guatemala 61.0 36 Poland 401.0 87 Tanzania 42.0 37 Ireland 399.0 88 Namibia 38.0 38 Romania 379.0 89 Cameroon 34.0 39 Slovenia 367.0 90 Botswana 30.0 40 Korea 363.0 91 Uganda 27.0 41 Brazil 349.0 92 Kenya 26.0 42 Trinidad and Tobago 340.0 93 Madagascar 24.0 43 Israel 335.0 94 Angola 19.0 44 Argentina 326.0 95 Bangladesh 17.0 45 Turkey 319.0 95 Mali 17.0 46 China 312.0 97 Ethiopia 6.0 47 Mauritius 301.0 97 Haiti 6.0 48 Singapore 300.0 99 Mozambique 5.0 48 Thailand 300.0 100 Malawi 4.0 50 Croatia 293.0 101 Gambia 3.0 51 Chile 286.0 102 Chad 1.0 0 200 400 600 800 1000 0 200 400 600 800 1000 Note: *estimate Source: International Telecommunication Union II.1.06 Households online, 2002 Households online as percent of households with personal computers, 2002 RANK COUNTRY VALUE RANK COUNTRY VALUE 1 Norway 94.10 52 Venezuela 56.33 2 Sweden 92.34 53 Uruguay *56.30 3 Netherlands 87.11 54 Russian Federation 56.04 4 United States 85.86 55 Dominican Republic *55.96 5 Denmark 85.13 56 El Salvador *55.67 6 Germany 84.55 57 Macedonia, FYR *55.28 7 Iceland *82.10 58 Guatemala *55.12 8 Japan 81.89 59 Namibia *55.08 9 Greece 81.79 60 Tunisia 55.00 10 Switzerland 81.67 61 Zimbabwe *54.97 11 Finland 81.65 62 Peru 54.96 12 Canada 81.26 63 Serbia *54.75 13 Singapore *81.15 64 Paraguay *54.74 14 Hong Kong SAR 80.58 65 Honduras *54.51 15 Austria 78.28 66 Sri Lanka *54.39 16 United Kingdom 76.91 67 Angola *54.37 17 France 76.82 68 Slovak Republic 54.36 18 New Zealand 75.92 69 Cameroon *54.14 19 Italy 74.54 70 Senegal *54.07 20 Luxembourg 74.08 71 Nicaragua *54.05 21 Ireland 74.00 72 Haiti *53.99 22 Portugal 71.67 73 Kenya *53.94 255 23 Australia 71.39 74 Zambia *53.91 24 Korea 71.05 75 Bangladesh *53.90 25 Israel 68.68 76 Ghana *53.87 26 Malaysia 67.84 77 Madagascar *53.84 27 Taiwan 67.77 78 Mali *53.83 Presentation 28 Mexico 66.61 79 Tanzania *53.83 29 Slovenia 65.51 80 Gambia *53.83 Data 30 Hungary 64.80 81 Uganda *53.81 3 31 Estonia 64.42 82 Chad *53.81 artP 32 Lithuania 63.81 83 Mozambique *53.79 33 Thailand 63.71 84 Malawi *53.75 34 Czech Republic 63.66 85 Bulgaria 53.73 35 Turkey 62.97 86 Ethiopia *53.68 36 Malta *62.87 87 Brazil 53.60 37 Croatia 62.26 88 Algeria 53.57 38 Poland 61.35 89 China 53.03 39 Belgium 60.66 90 Latvia 53.02 40 Trinidad and Tobago *60.06 91 Colombia 52.89 41 Romania 59.35 92 Indonesia 51.68 42 South Africa 58.51 93 Argentina 50.66 43 Morocco 58.09 94 Bolivia 50.52 44 Costa Rica *57.34 95 Jordan 50.48 45 Panama *57.20 96 Vietnam 50.08 46 Mauritius *57.11 97 Philippines 49.32 47 Ukraine 57.04 98 Ecuador 48.33 48 Spain 56.77 99 Egypt 46.17 49 Botswana *56.52 100 Pakistan 42.45 50 Jamaica *56.38 101 India 38.29 51 Chile 56.34 102 Nigeria 31.06 0 20 40 60 80 100 0 20 40 60 80 100 Note: *estimate Source: Euromonitor, 2003 II.1.07 Quality of math and science education, 2003 Math and science education in your country's schools (1 = lag far behind most other countries, 7 = are among the best in the world) RANK COUNTRY SCORE SD RANK COUNTRY SCORE SD 1 Singapore 6.48 0.64 52 Sri Lanka 4.17 1.56 2 Belgium 6.07 0.96 53 Germany 4.11 1.49 3 France 6.07 1.01 54 Turkey 4.05 1.61 4 Finland 5.89 0.85 55 Norway 4.04 1.81 5 Romania 5.89 1.46 56 Uruguay 3.88 1.49 6 Switzerland 5.86 1.05 57 Vietnam 3.86 1.54 7 Austria 5.84 1.05 58 Colombia 3.85 1.51 8 Hungary 5.70 1.05 59 Botswana 3.85 1.41 9 Australia 5.70 1.22 60 Zimbabwe 3.79 1.52 10 Tunisia 5.65 1.07 61 Cameroon 3.73 1.57 11 Slovak Republic 5.64 0.97 62 Indonesia 3.71 1.43 12 Taiwan 5.63 1.07 63 Madagascar 3.70 1.34 13 Canada 5.54 1.26 64 Kenya 3.68 1.48 14 India 5.54 1.22 65 Argentina 3.68 1.20 15 Estonia 5.52 0.87 66 Egypt 3.59 1.60 16 Hong Kong SAR 5.49 1.07 67 Chile 3.56 1.27 17 Czech Republic 5.48 1.26 68 Uganda 3.55 1.46 18 Russian Federation 5.35 1.37 69 Zambia 3.52 1.47 19 Slovenia 5.30 1.16 70 Ghana 3.51 1.67 20 Ireland 5.30 1.44 71 Malawi 3.38 1.63 21 Israel 5.29 0.78 72 Jamaica 3.36 1.50 21 Sweden 5.29 1.18 73 Algeria 3.34 1.48 256 23 Lithuania 5.23 1.16 74 Tanzania 3.32 1.46 24 Japan 5.19 1.18 75 Brazil 3.32 1.32 25 Netherlands 5.19 1.42 76 Portugal 3.22 1.33 26 Iceland 5.15 0.86 77 Panama 3.20 1.44 27 Ukraine 5.10 1.29 78 Senegal 3.15 1.38 Presentation 28 Denmark 5.10 1.05 79 Mali 3.14 1.62 29 Bulgaria 4.95 1.47 80 Mexico 3.14 1.44 Data 30 Malta 4.91 1.31 81 El Salvador 3.06 1.37 3 31 Jordan 4.90 1.20 82 Namibia 3.02 1.38 artP 32 Latvia 4.83 1.14 83 Gambia 2.99 1.77 33 Spain 4.79 1.20 84 Dominican Republic 2.91 1.25 34 Croatia 4.75 1.59 85 Ethiopia 2.83 1.26 35 Korea 4.75 1.49 86 South Africa 2.82 1.40 36 Poland 4.75 1.38 87 Bangladesh 2.80 1.38 37 United States 4.65 1.60 88 Bolivia 2.79 1.19 38 Greece 4.64 1.32 89 Philippines 2.78 1.30 39 Macedonia, FYR 4.63 1.90 90 Nicaragua 2.77 1.19 40 Italy 4.63 1.33 91 Nigeria 2.72 1.52 41 Luxembourg 4.53 1.11 92 Ecuador 2.69 1.27 42 Thailand 4.52 1.17 93 Peru 2.65 1.08 43 United Kingdom 4.48 1.31 94 Venezuela 2.65 1.10 44 New Zealand 4.46 1.36 95 Pakistan 2.65 1.06 45 Serbia 4.42 1.80 96 Mozambique 2.61 1.34 46 China 4.39 1.48 97 Paraguay 2.31 1.06 47 Malaysia 4.36 1.32 98 Haiti 2.28 1.24 48 Costa Rica 4.30 1.23 99 Honduras 2.14 1.08 49 Trinidad and Tobago 4.28 1.59 100 Chad 2.06 1.16 50 Morocco 4.25 1.94 101 Guatemala 2.02 1.05 51 Mauritius 4.23 1.14 102 Angola 1.91 0.97 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 Source: World Economic Forum, Executive Opinion Survey 2003 II.1.08 Affordability of local fixed line calls, 2001 Cost of a local 3-minute call at peak rate as percent of per capita GDP (*100,000), 2001 RANK COUNTRY VALUE RANK COUNTRY VALUE 1 Singapore 0.09 52 Mexico 2.54 2 Israel 0.12 53 Venezuela 2.66 3 Japan 0.22 54 Zimbabwe 2.71 4 Luxembourg 0.24 55 Slovak Republic 2.74 5 Denmark 0.25 56 Russian Federation * 2.85 6 Iceland 0.29 57 South Africa 2.95 7 United States * 0.29 58 El Salvador 3.14 8 Korea 0.31 59 Latvia 3.14 9 Switzerland 0.32 60 Jamaica * 3.15 10 Norway 0.33 61 Dominican Republic * 3.20 11 New Zealand * 0.37 62 Lithuania 3.21 12 Germany 0.37 63 Argentina 3.31 13 Sweden 0.40 64 Peru 3.38 14 Netherlands 0.42 65 Thailand 3.56 15 Spain 0.43 66 India 4.14 16 Ireland 0.45 67 Serbia * 4.44 17 Slovenia 0.47 68 Turkey 4.50 18 Finland 0.47 69 Pakistan 4.57 19 Malaysia 0.48 70 Sri Lanka 4.70 20 Hong Kong SAR * 0.49 71 Vietnam 4.71 21 Canada * 0.49 72 Guatemala 4.89 22 Austria 0.51 73 Bulgaria * 5.19 23 Italy 0.53 74 Romania 5.73 257 24 Australia 0.54 75 Uruguay 5.85 25 Belgium 0.54 76 Philippines 6.12 26 Macedonia, FYR 0.55 77 China 6.28 27 Trinidad and Tobago 0.58 78 Morocco 6.68 28 France 0.59 79 Ukraine 7.06 Presentation 29 Botswana 0.64 80 Honduras 7.13 30 Greece 0.64 81 Paraguay 7.31 Data 31 Taiwan * 0.64 82 Haiti 7.50 3 32 United Kingdom 0.65 83 Bangladesh 9.17 artP 33 Costa Rica 0.74 84 Nicaragua 9.48 34 Mauritius 0.79 85 Angola 9.56 35 Egypt 0.82 86 Bolivia 9.70 36 Portugal 0.90 87 Ghana 10.00 37 Tunisia 0.91 88 Nigeria 10.11 38 Malta 1.10 89 Cameroon 10.28 39 Algeria 1.16 90 Kenya 10.85 40 Hungary 1.39 91 Malawi 12.24 41 Panama 1.55 92 Zambia 17.49 42 Brazil 1.56 93 Gambia 19.89 43 Czech Republic 1.62 94 Senegal 21.32 44 Poland 1.63 95 Ethiopia 22.03 45 Croatia 1.77 96 Mali 27.19 46 Colombia 1.83 97 Tanzania 27.43 47 Namibia 1.88 98 Ecuador 32.07 48 Estonia 2.08 99 Madagascar 33.94 49 Jordan 2.24 100 Mozambique 33.95 50 Chile 2.42 101 Chad 43.34 51 Indonesia 2.51 102 Uganda 54.97 0 10 20 30 40 50 60 0 10 20 30 40 50 60 Note: *estimate Source: World Bank, World Development Indicators 2003 using International Telecommunication Union data II.1.09 Affordability of Internet telephone access, 2001 Cost per 30 off-peak hours as percent of per capita GDP, 2001 RANK COUNTRY VALUE RANK COUNTRY VALUE 1 Singapore 0.00 52 Greece 0.04 2 Bulgaria 0.00 53 Iceland 0.05 3 Spain * 0.00 54 Jamaica * 0.05 4 Israel 0.00 55 Pakistan 0.05 5 Macedonia, FYR 0.00 56 Brazil * 0.05 6 Costa Rica * 0.00 57 Dominican Republic * 0.05 7 Slovenia 0.00 58 Norway 0.05 8 Malta * 0.00 59 Taiwan * 0.05 9 Korea * 0.00 60 Germany * 0.05 10 Botswana 0.00 61 Ireland 0.05 11 Ukraine 0.00 62 France * 0.05 12 Trinidad and Tobago 0.01 63 Luxembourg 0.05 13 Malaysia 0.01 64 Hong Kong SAR * 0.05 14 Russian Federation 0.01 65 Canada * 0.05 15 Sri Lanka 0.01 66 Vietnam 0.06 16 Croatia 0.01 67 United Kingdom 0.06 17 United States 0.01 68 Honduras 0.06 18 Algeria 0.01 69 Netherlands 0.06 19 Tunisia 0.01 70 Morocco 0.06 20 Mauritius 0.01 71 Denmark * 0.06 21 Panama * 0.01 72 Austria 0.07 22 Chile * 0.01 73 Angola 0.07 23 Venezuela * 0.01 74 Sweden 0.08 258 24 Lithuania 0.01 75 Switzerland 0.08 25 Egypt 0.01 76 Haiti * 0.08 26 Slovak Republic 0.01 77 Italy 0.09 27 Australia 0.01 78 Japan 0.09 28 Estonia 0.01 79 Zambia 0.09 Presentation 29 South Africa 0.01 80 Cameroon 0.10 Data 30 China 0.01 81 Bangladesh 0.10 3 31 Colombia 0.02 82 Senegal 0.10 artP 32 Namibia * 0.02 83 Portugal 0.11 33 Ecuador * 0.02 84 Nicaragua 0.11 34 Peru * 0.02 85 Belgium 0.11 35 Guatemala * 0.02 86 Kenya 0.12 36 Argentina 0.02 87 Ghana 0.13 37 New Zealand * 0.02 88 Mexico 0.14 38 Romania 0.02 89 Malawi 0.15 39 Zimbabwe 0.02 90 Turkey 0.15 40 Latvia 0.02 91 Nigeria 0.16 41 Jordan 0.02 92 Madagascar 0.17 42 Indonesia 0.03 93 Czech Republic 0.17 43 Philippines * 0.03 94 Hungary 0.21 44 El Salvador 0.03 95 Mozambique 0.26 45 Bolivia * 0.03 96 Ethiopia 0.26 46 Uruguay * 0.03 97 Mali 0.28 47 Serbia * 0.03 98 Tanzania 0.31 48 Paraguay * 0.03 99 Uganda 0.35 49 India 0.04 100 Poland 0.37 50 Thailand 0.04 101 Chad 0.47 51 Finland 0.04 102 Gambia 1.07 0.0 0.4 0.8 1.2 0.0 0.4 0.8 1.2 Note: *estimate Source: World Bank, World Development Indicators 2003 using International Telecommunication Union data II.1.10 Affordability of Internet service provider fees, 2001 Cost per 30 off-peak hours as percent of per capita GDP, 2001 RANK COUNTRY VALUE RANK COUNTRY VALUE 1 Sweden 0.01 52 Egypt 0.71 2 Luxembourg 0.01 53 Sri Lanka 0.76 3 United States 0.02 54 Romania 0.78 4 Trinidad and Tobago 0.02 55 Latvia 0.81 5 Norway 0.03 56 Ecuador * 0.84 6 Iceland 0.03 57 Ukraine 0.85 7 Switzerland *0.04 58 Peru * 0.94 8 Ireland *0.04 59 Brazil * 0.99 9 Netherlands *0.05 60 Turkey * 1.09 10 Canada 0.05 61 Tunisia 1.13 11 Japan 0.05 62 El Salvador 1.16 12 Germany 0.05 63 Uruguay * 1.22 13 United Kingdom 0.05 64 South Africa 1.25 14 Austria *0.06 65 Lithuania 1.31 15 Finland *0.06 66 Jordan 1.34 16 Belgium *0.06 67 Bolivia * 1.41 17 Australia 0.06 68 Guatemala * 1.50 18 Denmark 0.06 69 Colombia * 1.50 19 Israel 0.07 70 Honduras 1.53 20 New Zealand 0.07 71 Algeria 1.54 21 Singapore *0.07 72 Indonesia 1.57 22 Italy *0.07 73 Jamaica 1.65 23 Hong Kong SAR 0.08 74 Namibia * 1.70 259 24 Korea 0.08 75 India 2.07 25 France 0.08 76 Serbia * 2.17 26 Spain 0.10 77 Paraguay * 2.18 27 Greece 0.12 78 Morocco 2.20 28 Czech Republic *0.12 79 Angola 2.39 Presentation 29 Malaysia 0.13 80 Philippines 2.44 30 Portugal *0.14 81 Senegal 2.72 Data 31 Mexico 0.17 82 Argentina 2.87 3 32 Taiwan *0.18 83 Pakistan 2.88 artP 33 Malta *0.19 84 Zimbabwe 3.09 34 Slovak Republic 0.19 85 Vietnam 4.64 35 Hungary 0.20 86 Bangladesh 5.28 36 Poland *0.26 87 Zambia 5.54 37 Slovenia 0.28 88 Nicaragua 6.18 38 Bulgaria 0.37 89 Haiti * 6.73 39 Costa Rica 0.40 90 Gambia 7.15 40 Estonia *0.42 91 Ghana 12.00 41 Croatia 0.45 92 Nigeria 12.41 42 Thailand 0.46 93 Uganda 12.69 43 Botswana 0.47 94 Cameroon 13.24 44 Chile *0.52 95 Mozambique 14.55 45 Panama *0.54 96 Kenya 17.78 46 Mauritius 0.61 97 Chad 21.99 47 Russian Federation 0.61 98 Madagascar 25.08 48 Macedonia, FYR 0.67 99 Tanzania 27.04 49 China 0.68 100 Mali 27.28 50 Dominican Republic 0.71 101 Malawi 37.95 51 Venezuela 0.71 102 Ethiopia 103.56 0 30 60 90 120 0 30 60 90 120 Note: *estimate Source: World Bank, World Development Indicators 2003 using International Telecommunication Union data Section II--Readiness Component Business Readiness 261 Presentation Data 3 artP II.2.01 Ease of obtaining telephone lines, 2003 New telephone lines for your business are (1 = scarce and difficult to obtain, 7 = widely available and highly reliable) RANK COUNTRY SCORE SD RANK COUNTRY SCORE SD 1 Finland 6.94 0.33 52 Mauritius 5.65 0.91 2 Singapore 6.93 0.25 53 Mexico 5.64 1.49 3 Switzerland 6.89 0.36 54 Venezuela 5.56 1.19 4 Iceland 6.89 0.32 55 Macedonia, FYR 5.52 1.45 5 Israel 6.86 0.36 56 Bolivia 5.46 1.40 6 Japan 6.85 0.40 57 China 5.43 1.47 7 Sweden 6.82 0.39 58 Panama 5.43 1.32 8 Denmark 6.81 0.67 59 Namibia 5.36 1.36 9 France 6.80 0.56 60 Turkey 5.36 1.55 10 Germany 6.79 0.44 61 Latvia 5.31 1.15 11 Hong Kong SAR 6.77 0.70 62 Senegal 5.19 1.71 12 Canada 6.73 0.62 63 Jamaica 5.14 1.48 13 Netherlands 6.73 0.63 64 Egypt 5.11 1.96 14 Australia 6.70 0.47 65 Pakistan 5.10 1.40 15 Chile 6.67 0.67 66 South Africa 5.10 1.40 16 New Zealand 6.64 0.57 67 Gambia 5.06 1.85 17 Austria 6.59 0.86 68 Poland 5.04 1.52 18 United States 6.58 1.09 69 Sri Lanka 4.98 1.56 19 Belgium 6.50 0.75 70 Vietnam 4.86 1.57 19 Luxembourg 6.50 0.75 71 Philippines 4.78 1.62 21 Norway 6.48 0.98 72 Bulgaria 4.76 1.47 22 United Kingdom 6.48 1.11 73 Uganda 4.75 1.89 23 Korea 6.47 0.80 74 Russian Federation 4.64 1.46 262 24 Portugal 6.46 0.72 75 Romania 4.64 1.66 25 Uruguay 6.45 0.90 76 Tanzania 4.61 1.69 26 El Salvador 6.42 0.92 77 Botswana 4.59 1.64 27 Estonia 6.31 1.20 78 Mozambique 4.28 1.51 28 Taiwan 6.30 1.01 79 Trinidad and Tobago 4.15 1.65 Presentation 29 Jordan 6.29 0.87 80 Ukraine 4.12 1.27 Data 30 Slovenia 6.29 0.75 81 Indonesia 3.94 1.31 3 31 Dominican Republic 6.29 1.10 82 Zambia 3.71 1.55 artP 32 Malta 6.28 0.92 83 Nigeria 3.66 1.92 33 Morocco 6.26 1.16 84 Malawi 3.59 1.62 34 Brazil 6.25 0.93 85 Serbia 3.47 1.94 35 Slovak Republic 6.23 0.96 86 Paraguay 3.32 1.56 36 Spain 6.21 0.90 87 Ecuador 3.24 1.61 37 Peru 6.18 0.90 88 Nicaragua 3.23 1.93 38 Lithuania 6.16 0.85 89 Madagascar 3.20 1.66 39 Greece 6.11 1.01 90 Algeria 3.18 1.68 40 Hungary 6.08 1.16 91 Ghana 3.16 1.75 41 Thailand 6.07 0.81 92 Costa Rica 3.07 1.74 42 Croatia 6.06 1.18 93 Kenya 2.77 1.35 43 Ireland 6.03 1.31 94 Ethiopia 2.76 1.62 44 Malaysia 6.02 0.79 95 Chad 2.72 1.77 45 Czech Republic 6.00 1.21 96 Angola 2.63 1.51 45 India 6.00 0.95 97 Zimbabwe 2.61 1.41 47 Italy 5.90 1.26 98 Cameroon 2.27 1.71 48 Colombia 5.67 1.04 99 Mali 2.19 1.35 49 Tunisia 5.66 1.31 100 Bangladesh 2.00 1.12 50 Guatemala 5.66 1.15 101 Haiti 1.84 1.28 51 Argentina 5.65 1.22 102 Honduras 1.43 0.74 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 Source: World Economic Forum, Executive Opinion Survey 2003 II.2.02 Cost of business phone subscription, 2002 Cost of business telephone monthly subscription as percent of per capita GDP, 2002 RANK COUNTRY VALUE RANK COUNTRY VALUE 1 Korea 0.03 52 Mexico 0.34 2 Singapore 0.03 53 Guatemala 0.34 3 Luxembourg 0.04 54 Namibia 0.35 4 Denmark 0.04 55 Romania 0.38 5 Norway 0.04 56 Uruguay 0.38 6 Finland 0.04 57 Panama 0.39 7 Switzerland 0.04 58 Brazil 0.39 8 Germany 0.04 59 Zimbabwe 0.39 9 Slovenia 0.05 60 Paraguay 0.40 10 Ireland 0.05 61 Indonesia 0.40 11 Israel 0.05 62 Macedonia, FYR 0.40 12 Iceland 0.06 63 Trinidad and Tobago 0.40 13 Netherlands 0.06 64 South Africa 0.41 14 Spain 0.06 65 Cameroon 0.41 15 France 0.06 66 Russian Federation 0.42 16 Greece 0.06 67 Vietnam 0.43 17 Sweden 0.06 68 Dominican Republic 0.43 18 Austria 0.06 69 Serbia 0.44 19 Belgium 0.06 70 China 0.44 20 Japan 0.07 71 Sri Lanka 0.47 21 Taiwan 0.07 72 Jamaica 0.54 22 Hong Kong SAR 0.07 73 El Salvador 0.57 23 Italy 0.08 74 Venezuela 0.59 263 24 Australia 0.08 75 Jordan 0.63 25 Tunisia 0.08 76 Ecuador 0.64 26 United Kingdom 0.09 77 Honduras 0.66 27 Portugal 0.09 78 Nigeria 0.68 28 Czech Republic 0.09 79 Nicaragua 0.73 Presentation 29 Mauritius 0.09 80 Morocco 0.80 30 Malta 0.10 81 Zambia 0.81 Data 31 Botswana 0.10 82 Peru 0.82 3 32 Canada 0.11 83 Bangladesh 0.82 artP 33 Thailand 0.11 84 Senegal 0.83 34 Slovak Republic 0.12 85 Malawi 0.85 35 Ghana 0.12 86 Haiti 0.86 36 United States 0.12 87 Gambia 0.89 37 Malaysia 0.13 88 Pakistan 0.90 38 Egypt 0.13 89 Bolivia 0.92 39 Turkey 0.15 90 Argentina 1.00 40 Algeria 0.15 91 Ukraine 1.01 41 Costa Rica 0.15 92 Mali 1.02 42 Estonia 0.16 93 Angola 1.02 43 New Zealand 0.16 94 India 1.10 44 Poland 0.17 95 Kenya 1.22 45 Croatia 0.19 96 Tanzania 1.37 46 Lithuania 0.20 97 Chad 2.09 47 Hungary 0.21 98 Ethiopia 2.21 48 Colombia 0.22 99 Madagascar 2.39 49 Chile 0.23 100 Uganda 2.41 50 Bulgaria 0.26 101 Philippines 2.54 51 Latvia 0.27 102 Mozambique 4.06 0 1 2 3 4 5 0 1 2 3 4 5 Source: International Telecommunication Union, World Telecommunication Indicators Database, accessed July 2003 II.2.03 Extent of staff training, 2003 The general approach of companies in your country to human resources is (1 = to invest little in training and employee development, 7 = to invest heavily to attract, train, and retain employees) RANK COUNTRY SCORE SD RANK COUNTRY SCORE SD 1 Denmark 6.00 0.73 52 Colombia 3.70 1.00 2 Switzerland 5.97 0.90 53 Namibia 3.66 1.10 3 Sweden 5.89 0.92 54 Poland 3.64 1.18 4 Germany 5.86 0.91 55 China 3.64 1.17 5 United States 5.86 1.14 56 Portugal 3.61 0.98 6 Japan 5.83 0.97 57 Argentina 3.59 1.04 7 Finland 5.78 0.76 58 Turkey 3.59 1.18 8 Singapore 5.67 0.99 59 Panama 3.57 1.22 9 Netherlands 5.51 0.97 60 Sri Lanka 3.51 1.39 10 Belgium 5.46 1.00 61 Botswana 3.50 1.48 11 United Kingdom 5.37 1.14 62 Jordan 3.49 1.44 12 Australia 5.30 0.98 63 Kenya 3.46 1.38 13 Luxembourg 5.29 1.07 64 Vietnam 3.46 1.44 14 Iceland 5.26 1.13 65 Hungary 3.45 1.23 15 France 5.23 1.04 66 Egypt 3.45 1.53 16 Austria 5.22 1.13 67 Lithuania 3.38 1.38 17 Canada 5.15 1.13 68 Nigeria 3.38 1.59 18 Malaysia 5.11 1.20 69 Malawi 3.31 1.45 19 Taiwan 5.07 1.03 70 Macedonia, FYR 3.29 1.87 20 New Zealand 5.01 1.14 71 Venezuela 3.26 1.31 21 Korea 4.93 1.16 72 Ghana 3.24 1.55 22 Norway 4.93 1.04 73 Tanzania 3.14 1.43 23 Ireland 4.93 1.46 74 Croatia 3.10 1.43 264 24 Israel 4.55 1.23 75 Guatemala 3.07 1.22 25 South Africa 4.53 1.20 76 Pakistan 2.98 1.10 26 Tunisia 4.48 1.52 77 Uganda 2.97 1.71 27 Brazil 4.46 1.16 78 Peru 2.96 1.20 28 Hong Kong SAR 4.43 1.27 79 Russian Federation 2.95 1.36 Presentation 29 Slovenia 4.42 1.16 80 Senegal 2.92 1.32 Data 30 Costa Rica 4.37 1.38 81 Zambia 2.91 1.27 3 31 Mauritius 4.32 1.05 82 Gambia 2.88 1.78 artP 32 Spain 4.32 1.29 83 Mozambique 2.86 1.49 33 Italy 4.28 1.21 84 Uruguay 2.86 1.16 34 Thailand 4.27 1.32 85 Cameroon 2.81 1.45 35 Zimbabwe 4.24 1.28 86 Madagascar 2.77 1.30 36 Chile 4.21 1.18 87 Algeria 2.73 1.45 37 Latvia 4.18 1.28 88 Serbia 2.73 1.33 38 Malta 4.17 1.30 89 Romania 2.73 1.55 39 Slovak Republic 4.07 1.25 90 Ecuador 2.72 1.00 40 Estonia 4.02 1.40 91 Bulgaria 2.60 1.19 41 Philippines 3.91 1.15 92 Honduras 2.60 1.20 42 Mexico 3.87 1.33 93 Angola 2.52 1.36 43 Dominican Republic 3.85 1.37 94 Nicaragua 2.50 1.11 44 Trinidad and Tobago 3.82 1.16 95 Ukraine 2.49 1.21 45 India 3.80 1.26 96 Paraguay 2.42 0.88 46 Greece 3.80 1.20 97 Chad 2.37 1.60 47 Indonesia 3.74 1.48 98 Bangladesh 2.30 0.97 48 Jamaica 3.74 1.13 99 Haiti 2.28 1.17 49 El Salvador 3.73 1.32 100 Bolivia 2.25 0.91 50 Czech Republic 3.72 1.29 101 Ethiopia 2.15 1.07 51 Morocco 3.72 1.82 102 Mali 2.11 1.41 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 Source: World Economic Forum, Executive Opinion Survey 2003 II.2.04 Quality of business schools, 2003 Management or business schools in your country are (1 = limited or of poor quality, 7 = the best in the world) RANK COUNTRY SCORE SD RANK COUNTRY SCORE SD 1 United States 6.55 0.92 52 Sri Lanka 4.14 1.33 2 France 6.25 0.97 53 Japan 4.14 1.41 3 Canada 6.23 0.56 54 Senegal 4.12 1.37 4 Switzerland 6.03 0.76 55 Turkey 4.11 1.37 5 United Kingdom 5.94 0.75 56 Pakistan 4.10 1.15 6 Finland 5.81 0.62 57 Greece 4.09 1.28 7 Sweden 5.75 0.59 58 Malta 4.06 1.33 8 India 5.75 1.03 59 Ghana 4.01 1.52 9 Singapore 5.67 0.75 60 Jordan 3.94 1.52 10 Israel 5.65 0.75 61 Russian Federation 3.93 1.55 11 Spain 5.64 0.77 62 Romania 3.87 1.64 12 Norway 5.59 0.80 63 Dominican Republic 3.86 1.35 13 Australia 5.55 1.05 64 El Salvador 3.85 1.37 14 Netherlands 5.52 1.01 65 Ukraine 3.76 1.33 15 Belgium 5.49 0.89 66 Guatemala 3.66 1.21 16 Ireland 5.45 1.26 67 Panama 3.65 1.20 17 Chile 5.44 0.87 68 Malawi 3.65 1.50 18 South Africa 5.37 1.04 69 Mauritius 3.65 1.17 19 Germany 5.33 0.71 70 Uganda 3.60 1.34 20 New Zealand 5.30 0.99 71 Indonesia 3.58 1.58 21 Iceland 5.30 0.99 72 China 3.56 1.25 22 Austria 5.24 1.18 73 Kenya 3.56 1.34 23 Denmark 5.19 0.83 74 Madagascar 3.54 1.32 265 24 Tunisia 5.14 1.00 75 Egypt 3.52 1.46 25 Argentina 5.13 0.90 76 Cameroon 3.52 1.43 26 Costa Rica 5.06 0.92 77 Nigeria 3.51 1.43 27 Italy 5.00 1.17 78 Nicaragua 3.38 1.33 28 Estonia 4.92 0.96 79 Croatia 3.35 1.40 Presentation 29 Taiwan 4.91 1.00 80 Zambia 3.34 1.52 30 Hong Kong SAR 4.83 1.32 81 Tanzania 3.34 1.54 Data 31 Slovenia 4.83 1.06 82 Paraguay 3.32 1.20 3 32 Philippines 4.80 1.09 83 Botswana 3.27 1.45 artP 33 Latvia 4.74 1.08 84 Serbia 3.24 1.19 34 Brazil 4.73 1.10 85 Vietnam 3.21 1.26 35 Mexico 4.59 1.10 86 Algeria 3.20 1.22 36 Portugal 4.56 0.87 87 Bulgaria 3.19 1.21 36 Thailand 4.56 1.34 88 Gambia 3.13 1.56 38 Jamaica 4.55 1.29 89 Zimbabwe 3.09 1.21 39 Uruguay 4.49 0.99 90 Ecuador 3.08 1.10 40 Hungary 4.49 1.11 91 Macedonia, FYR 3.04 1.61 41 Colombia 4.48 1.00 92 Namibia 3.02 1.44 42 Morocco 4.38 1.92 93 Bangladesh 3.00 1.33 43 Trinidad and Tobago 4.31 1.22 93 Luxembourg 3.00 1.56 44 Czech Republic 4.28 1.26 95 Bolivia 2.90 1.10 45 Korea 4.25 1.09 96 Mali 2.84 1.30 46 Malaysia 4.23 1.22 97 Ethiopia 2.80 1.31 47 Peru 4.22 1.13 98 Honduras 2.79 1.23 48 Slovak Republic 4.21 1.15 99 Mozambique 2.63 1.18 49 Lithuania 4.17 1.15 100 Haiti 2.52 0.82 50 Venezuela 4.15 1.48 101 Chad 1.98 1.18 51 Poland 4.14 1.17 102 Angola 1.94 0.89 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 Source: World Economic Forum, Executive Opinion Survey 2003 II.2.05 Scientists and engineers in R&D, 2000 Scientists and engineers in R&D per 1,000 inhabitants, 2000 or most recent RANK COUNTRY VALUE RANK COUNTRY VALUE 1 Japan 5.10 52 Algeria *0.53 2 Finland 5.06 53 Costa Rica 0.53 3 Sweden 4.51 54 Dominican Republic *0.52 4 Singapore 4.14 55 Egypt 0.49 5 Norway 4.11 55 Paraguay *0.49 6 United States 4.10 57 Jamaica *0.47 7 Switzerland 3.59 58 Namibia *0.46 8 Russian Federation 3.48 59 Zambia *0.43 9 Denmark 3.48 60 Kenya *0.39 10 Australia 3.35 61 Macedonia, FYR 0.39 11 Germany 3.16 62 Chile 0.37 12 Canada 2.99 63 Mauritius 0.36 13 Belgium 2.95 64 Tunisia 0.34 14 France 2.72 65 Brazil 0.32 15 Luxembourg *2.69 66 Turkey 0.31 16 United Kingdom 2.67 67 Zimbabwe *0.30 17 Netherlands 2.57 68 Tanzania *0.29 18 Taiwan *2.36 69 Guatemala *0.29 19 Korea 2.32 70 Vietnam 0.27 20 Austria 2.31 71 Peru 0.23 21 Iceland *2.28 72 Mexico 0.23 22 New Zealand 2.20 73 Uruguay 0.22 23 Ireland 2.18 74 Cameroon *0.22 266 24 Slovenia 2.18 75 Gambia *0.20 25 Estonia 2.13 76 Venezuela 0.19 26 Ukraine 2.12 77 Sri Lanka 0.19 27 Lithuania 2.03 78 Nigeria *0.16 28 Jordan 1.95 79 Malaysia 0.16 Presentation 29 Spain 1.92 80 India 0.16 Data 30 Slovak Republic 1.84 81 Philippines 0.16 3 31 Portugal 1.58 82 Trinidad and Tobago 0.15 artP 32 Israel 1.56 83 Haiti *0.14 33 Indonesia *1.46 84 Panama 0.12 34 Hungary 1.45 85 Serbia *0.12 35 Poland 1.43 86 Colombia 0.10 36 Greece 1.40 87 Bolivia 0.10 37 Czech Republic 1.35 88 Hong Kong SAR 0.09 38 Bulgaria 1.32 89 Ecuador 0.08 39 Croatia 1.19 90 Thailand 0.07 40 Italy 1.13 91 Nicaragua 0.07 41 Latvia 1.08 92 Botswana *0.07 42 South Africa 0.99 93 Pakistan 0.07 43 Romania 0.91 94 Bangladesh 0.05 44 Ghana *0.81 95 El Salvador 0.05 45 Morocco *0.80 96 Ethiopia *0.02 46 Argentina 0.71 96 Mozambique *0.02 47 Malta *0.62 96 Uganda 0.02 48 Angola *0.62 99 Chad *0.02 48 Honduras *0.62 99 Mali *0.02 50 Malawi *0.61 101 Madagascar 0.01 51 China 0.55 102 Senegal 0.00 0 1 2 3 4 5 6 0 1 2 3 4 5 6 Note: *estimate Source: UNESCO Institute for Statistics Section II--Readiness Component Government Readiness 267 Presentation Data 3 artP II.3.01 Government prioritization of ICT, 2003 Information and communication technologies (ICT) are an overall priority for the government (1 = strongly disagree, 7 = strongly agree) RANK COUNTRY SCORE SD RANK COUNTRY SCORE SD 1 Singapore 6.37 0.79 52 Latvia 4.40 1.35 2 Malaysia 6.33 0.69 53 Portugal 4.40 1.25 3 Finland 5.94 0.97 54 Lithuania 4.38 1.61 4 Mauritius 5.84 1.25 55 Mozambique 4.36 1.81 5 Tunisia 5.80 1.10 56 Austria 4.34 1.53 6 Malta 5.65 1.18 57 Colombia 4.30 1.50 7 Taiwan 5.60 0.93 58 Israel 4.29 1.61 8 Korea 5.60 1.24 58 Slovenia 4.29 1.28 9 Japan 5.60 1.16 60 Belgium 4.27 1.56 10 Denmark 5.54 0.98 61 Philippines 4.26 1.85 11 Jordan 5.44 1.34 62 Czech Republic 4.25 1.54 12 India 5.37 1.32 63 Morocco 4.19 1.85 13 Gambia 5.35 1.83 64 Netherlands 4.18 1.51 14 Sweden 5.32 1.19 65 Italy 4.17 1.17 15 United States 5.32 1.28 66 Brazil 4.15 1.35 16 Thailand 5.29 1.32 67 Nigeria 4.10 1.83 17 Ghana 5.28 1.46 68 Greece 4.08 1.31 18 Estonia 5.22 1.31 69 Ukraine 4.06 1.68 19 Canada 5.16 1.41 70 Namibia 4.05 1.58 20 Iceland 5.11 1.28 71 Uruguay 3.98 1.53 21 Mali 5.11 1.56 72 El Salvador 3.98 1.45 22 Hong Kong SAR 5.05 1.26 73 Romania 3.95 1.69 23 Luxembourg 5.00 1.32 74 Dominican Republic 3.94 1.71 268 23 Senegal 5.00 1.72 75 Slovak Republic 3.93 1.52 25 United Kingdom 4.97 1.22 76 Trinidad and Tobago 3.85 1.48 26 France 4.91 1.15 77 Costa Rica 3.84 1.54 27 Jamaica 4.89 1.60 78 Russian Federation 3.78 1.68 28 Tanzania 4.88 1.38 79 Zambia 3.78 1.62 Presentation 29 Pakistan 4.88 1.36 80 Algeria 3.77 1.74 Data 30 Australia 4.85 1.18 81 Kenya 3.74 1.67 3 31 Ireland 4.83 1.58 82 Peru 3.72 1.51 artP 32 China 4.82 1.63 83 Indonesia 3.70 1.29 33 Chile 4.81 1.28 84 Poland 3.61 1.24 34 Vietnam 4.79 1.57 85 Macedonia, FYR 3.52 2.15 35 South Africa 4.79 1.42 86 Ethiopia 3.52 1.97 36 Botswana 4.76 1.40 87 Nicaragua 3.51 1.71 37 Spain 4.75 1.35 88 Bulgaria 3.49 1.67 38 Germany 4.70 1.31 89 Malawi 3.48 1.60 39 Switzerland 4.62 1.25 90 Turkey 3.37 1.34 39 Uganda 4.62 1.81 91 Panama 3.34 1.52 41 Mexico 4.62 1.44 92 Honduras 3.01 1.52 42 Egypt 4.62 1.54 93 Venezuela 3.00 1.58 43 Bangladesh 4.61 1.74 94 Bolivia 2.96 1.46 44 Madagascar 4.61 1.67 95 Ecuador 2.95 1.54 45 Serbia 4.59 1.65 96 Chad 2.85 2.07 46 Cameroon 4.49 2.08 97 Angola 2.81 1.47 47 Sri Lanka 4.48 1.45 98 Argentina 2.81 1.43 48 Norway 4.48 1.12 99 Zimbabwe 2.52 1.33 49 Croatia 4.43 1.66 100 Haiti 2.48 1.29 50 Hungary 4.43 1.49 101 Paraguay 2.28 1.28 51 New Zealand 4.41 1.46 102 Guatemala 2.25 1.35 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 Source: World Economic Forum, Executive Opinion Survey 2003 II.3.02 Government procurement of ICT, 2003 Government purchase decisions for the procurement of advanced technology products are (1 = based solely on price, 7 = based on technology and encourage innovation) RANK COUNTRY SCORE SD RANK COUNTRY SCORE SD 1 Singapore 5.38 1.24 52 Algeria 3.62 1.51 2 Malaysia 5.20 1.04 53 Brazil 3.62 1.21 3 Taiwan 4.98 0.96 54 Malta 3.60 1.37 4 Finland 4.97 0.90 55 Chile 3.60 1.35 5 Tunisia 4.93 1.48 56 Belgium 3.60 1.33 6 France 4.82 1.13 57 El Salvador 3.49 1.42 7 Israel 4.78 1.11 58 Morocco 3.47 1.75 8 Luxembourg 4.77 1.03 59 Mexico 3.47 1.49 9 China 4.71 1.33 60 Poland 3.46 1.42 10 United States 4.69 1.12 61 Macedonia, FYR 3.45 1.94 11 Vietnam 4.53 1.57 62 Serbia 3.45 1.63 12 Korea 4.52 1.24 63 Dominican Republic 3.44 1.56 13 Denmark 4.45 1.28 64 Colombia 3.43 1.24 14 Germany 4.38 1.26 65 Sri Lanka 3.40 1.51 15 Japan 4.36 1.32 66 Mauritius 3.39 1.31 16 Canada 4.30 1.48 67 Kenya 3.38 1.56 17 Tanzania 4.21 1.50 67 Portugal 3.38 1.17 18 Ireland 4.20 1.05 69 Namibia 3.33 1.57 19 Ghana 4.17 1.60 70 Zambia 3.32 1.57 20 Switzerland 4.16 1.36 71 India 3.31 1.18 21 Iceland 4.07 1.49 72 Mali 3.30 1.88 22 Cameroon 4.06 1.78 73 Mozambique 3.30 1.41 23 Latvia 4.05 1.46 74 Croatia 3.29 1.60 269 24 Sweden 4.04 1.11 75 Madagascar 3.29 1.66 25 Botswana 4.02 1.66 76 Greece 3.20 1.16 26 Hong Kong SAR 4.02 1.38 77 Russian Federation 3.18 1.48 27 Australia 4.00 1.05 78 Pakistan 3.12 1.40 27 Indonesia 4.00 1.37 79 Bulgaria 3.10 1.48 Presentation 27 Norway 4.00 1.06 80 Malawi 3.10 1.54 27 Senegal 4.00 1.41 81 Gambia 3.06 1.94 Data 31 Spain 3.94 1.29 82 Ukraine 3.06 1.46 3 32 Nigeria 3.94 1.49 83 Turkey 3.04 1.21 artP 33 Estonia 3.93 1.35 84 Philippines 2.96 1.30 34 Hungary 3.88 1.37 85 Romania 2.91 1.54 35 Jamaica 3.88 1.39 86 Nicaragua 2.86 1.39 36 Thailand 3.86 1.32 87 Venezuela 2.86 1.09 37 Netherlands 3.82 1.34 88 Uruguay 2.85 1.21 38 South Africa 3.82 1.06 89 Argentina 2.80 1.12 39 Trinidad and Tobago 3.82 1.12 90 Zimbabwe 2.79 1.03 40 Italy 3.81 1.30 91 Panama 2.77 1.46 41 Uganda 3.81 1.86 92 Peru 2.76 1.35 42 United Kingdom 3.80 1.36 93 Haiti 2.73 1.24 43 Austria 3.78 1.46 94 Ecuador 2.66 1.29 44 Slovenia 3.77 1.33 95 Ethiopia 2.66 1.54 45 Jordan 3.77 1.51 96 Angola 2.61 1.59 46 Costa Rica 3.76 1.52 97 Bangladesh 2.60 1.50 47 Lithuania 3.72 1.28 98 Honduras 2.53 1.35 48 Egypt 3.69 1.80 99 Chad 2.51 1.68 49 Slovak Republic 3.69 1.44 100 Guatemala 2.48 1.27 50 New Zealand 3.68 1.07 101 Bolivia 2.28 1.08 51 Czech Republic 3.67 1.21 102 Paraguay 2.14 1.12 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 Source: World Economic Forum, Executive Opinion Survey 2003 II.3.03 Government online presence, 2003 Web presence of the various branches of government (1­7 scale), 2003 RANK COUNTRY SCORE SD RANK COUNTRY SCORE SD 1 Canada 7.00 1.24 52 Paraguay 4.56 1.51 2 Germany 6.99 1.04 53 Tanzania 4.42 1.21 3 France 6.96 0.96 54 South Africa 4.33 1.37 4 United States 6.84 0.90 55 Uruguay 4.25 1.35 5 United Kingdom 6.79 1.48 56 Bulgaria 4.24 1.33 6 Singapore 6.76 1.13 57 Nicaragua 4.20 1.42 7 Austria 6.73 1.11 58 Luxembourg 4.19 1.75 8 Netherlands 6.53 1.03 59 Latvia 4.12 1.49 9 Australia 6.42 1.33 60 Hungary 4.00 1.42 10 Ireland 6.40 1.12 61 Costa Rica 3.93 1.94 11 Brazil 6.32 1.57 62 Sri Lanka 3.92 1.63 12 Finland 6.25 1.24 63 Guatemala 3.91 1.56 13 Italy 6.18 1.28 64 Pakistan 3.87 1.24 14 Chile 6.17 1.26 65 Greece 3.86 1.51 15 Denmark 6.11 1.32 66 Ukraine 3.80 1.31 16 Argentina 6.09 1.48 67 Malawi 3.78 1.56 17 Sweden 5.94 1.50 68 Zambia 3.76 1.17 18 Estonia 5.85 1.05 69 Cameroon 3.65 1.57 19 New Zealand 5.85 1.60 70 Uganda 3.53 1.57 20 Venezuela 5.72 1.36 71 Namibia 3.52 1.18 21 Czech Republic 5.68 1.49 72 Bolivia 3.51 1.88 22 Poland 5.68 1.78 73 Indonesia 3.36 1.41 23 Korea 5.64 1.46 74 Haiti 3.35 1.60 270 24 Colombia 5.58 1.11 75 Botswana 3.23 1.66 25 Croatia 5.48 1.66 76 China 3.16 1.16 26 Slovak Republic 5.46 1.38 77 Kenya 3.13 1.48 27 Norway 5.45 1.05 78 Nigeria 3.10 1.40 28 Slovenia 5.45 1.37 79 Jamaica 3.09 1.48 Presentation 29 Spain 5.44 1.06 80 Algeria 3.04 1.54 Data 30 Portugal 5.38 1.41 81 Trinidad and Tobago 3.04 1.94 3 31 Belgium 5.37 1.29 82 Russian Federation 2.83 1.46 artP 32 Mauritius 5.24 1.49 83 Morocco 2.82 1.21 33 Lithuania 5.22 1.35 84 Vietnam 2.78 1.30 34 India 5.18 1.37 85 Tunisia 2.77 1.54 35 Israel 5.18 1.39 86 Serbia 2.53 1.39 36 Dominican Republic 5.10 1.32 87 Ecuador 2.46 1.09 37 Thailand 5.06 1.34 88 Ghana 2.41 1.21 38 Panama 5.02 1.06 89 Egypt 2.40 1.12 39 Hong Kong SAR 4.99 1.12 90 Macedonia, FYR 2.39 1.03 40 Malta 4.92 1.30 91 Mozambique 2.26 1.46 41 Peru 4.88 1.86 92 Gambia 2.20 1.35 42 Switzerland 4.86 1.36 93 Angola 2.04 1.24 43 Malaysia 4.86 1.46 94 Jordan 1.97 1.29 44 Japan 4.81 1.33 95 Madagascar 1.89 1.54 45 Turkey 4.81 1.51 96 Bangladesh 1.71 1.59 46 Romania 4.76 1.52 97 Honduras 1.46 1.50 47 Mexico 4.73 1.28 98 Zimbabwe 1.35 1.35 48 Taiwan 4.73 1.80 99 Senegal 1.29 1.68 49 Philippines 4.67 1.44 100 Ethiopia 1.16 1.27 50 Iceland 4.62 1.07 101 Mali 1.11 1.08 51 El Salvador 4.59 1.21 102 Chad 1.00 1.12 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 Source: World Economic Forum, 2003 Section III--Usage Component Individual Readiness 271 Presentation Data 3 artP III.1.01 Personal computers, 2001 Personal computers per 1,000 inhabitants, 2001 RANK COUNTRY VALUE RANK COUNTRY VALUE 1 Luxembourg * 694.9 52 Russian Federation 49.7 2 United States 625.0 53 Peru 47.9 3 Sweden 561.2 54 Bulgaria 44.3 4 Denmark 540.3 55 Colombia 42.1 5 Switzerland 540.2 56 Turkey 40.7 6 Australia 515.8 57 Macedonia, FYR * 40.6 7 Singapore 508.3 58 Botswana 38.7 8 Norway 508.0 59 Panama 37.9 9 Iceland * 467.6 60 Namibia 36.4 10 Canada 459.9 61 Romania 35.7 11 Netherlands 428.4 62 Jordan 32.8 12 Finland 423.5 63 Serbia * 32.2 13 New Zealand 392.6 64 Thailand 27.8 14 Ireland 390.7 65 Tunisia 23.7 15 Hong Kong SAR 386.6 66 Ecuador 23.3 16 Germany 382.2 67 El Salvador 21.9 17 United Kingdom 366.2 68 Philippines 21.7 18 Japan 348.8 69 Bolivia 20.5 19 France 337.0 70 Haiti * 20.1 20 Austria 335.4 71 China 19.0 21 Slovenia 275.7 72 Senegal 18.6 22 Korea 256.5 73 Ukraine 18.3 23 Israel 245.9 74 Egypt 15.5 272 24 Belgium 232.8 75 Paraguay 14.2 25 Taiwan * 199.2 76 Morocco 13.7 26 Italy 194.8 77 Guatemala 12.8 27 Estonia 174.8 78 Gambia 12.7 28 Costa Rica 170.2 79 Honduras 12.2 Presentation 29 Spain 168.2 80 Zimbabwe 12.1 Data 30 Malta * 161.5 81 Vietnam 11.7 3 31 Latvia 153.1 82 Indonesia 11.0 artP 32 Slovak Republic 148.1 83 Nicaragua 9.6 33 Czech Republic 145.7 84 Sri Lanka 9.3 34 Malaysia 126.1 85 Algeria 7.1 35 Portugal 117.4 86 Zambia 7.0 36 Uruguay 110.1 87 Nigeria 6.8 37 Mauritius 109.1 88 India 5.8 38 Chile 106.5 89 Kenya 5.6 39 Hungary 100.3 90 Pakistan 4.1 40 Argentina 91.1 91 Cameroon 3.9 41 Croatia 85.9 92 Mozambique 3.5 42 Poland 85.4 93 Ghana 3.3 43 Greece 81.2 93 Tanzania 3.3 44 Lithuania 70.6 95 Uganda 3.1 45 Trinidad and Tobago 69.2 96 Madagascar 2.4 46 Mexico 68.7 97 Bangladesh 1.9 47 South Africa 68.5 98 Chad 1.6 48 Brazil 62.9 99 Angola 1.3 49 Venezuela 52.8 99 Malawi 1.3 50 Dominican Republic * 51.4 101 Mali 1.2 51 Jamaica 50.0 102 Ethiopia 1.1 0 100 200 300 400 500 600 700 0 100 200 300 400 500 600 700 Note: *estimate Source: World Bank, World Development Indicators 2003 using International Telecommunication Union data III.1.02 ISDN subscribers, 2001 ISDN subscribers per 1,000 inhabitants, 2001 RANK COUNTRY VALUE RANK COUNTRY VALUE 1 Norway 170.81 52 Peru 0.85 2 Luxembourg 130.57 53 China 0.84 3 Switzerland 119.56 54 Russian Federation *0.78 4 Germany 111.22 55 Ecuador *0.76 5 Netherlands 88.50 56 Algeria *0.61 6 Japan 80.92 56 Macedonia, FYR *0.61 7 Denmark 76.75 58 Uruguay 0.56 8 Iceland 63.60 59 South Africa 0.55 9 Ireland * 58.66 60 Costa Rica 0.45 10 Finland 53.15 61 Jordan 0.35 11 Austria 50.25 62 Morocco 0.32 12 Belgium 43.47 63 Angola *0.24 13 Italy 39.72 63 Bolivia *0.24 14 Slovenia 38.69 63 Honduras *0.24 15 Sweden 32.53 63 Ukraine *0.24 16 Australia * 32.00 67 Senegal 0.17 17 France 30.15 68 El Salvador 0.14 18 Portugal 25.07 69 Thailand 0.13 19 Spain 20.70 70 Turkey 0.13 20 Greece 19.28 71 Romania 0.12 21 Hungary 17.56 72 Trinidad and Tobago 0.12 22 United Kingdom 14.32 73 Cameroon *0.10 23 New Zealand * 12.67 73 Nicaragua *0.10 273 24 Israel 9.02 75 Guatemala 0.10 25 Estonia 8.82 76 Serbia *0.10 26 Mexico *8.62 77 Sri Lanka 0.07 27 Chile *8.49 78 Tunisia 0.07 28 Czech Republic 8.19 79 Pakistan *0.05 Presentation 29 United States 7.04 80 Egypt 0.04 30 Slovak Republic 5.75 81 Dominican Republic 0.03 Data 31 Singapore 5.37 82 India 0.03 3 32 Croatia *4.08 83 Indonesia 0.02 artP 33 Latvia 4.04 84 Zimbabwe 0.02 34 Panama *3.97 85 Madagascar 0.02 34 Venezuela *3.97 86 Haiti *0.01 36 Canada 3.52 86 Vietnam *0.01 37 Korea 2.84 88 Philippines 0.01 38 Argentina *2.80 89 Chad *0.01 39 Poland 2.65 90 Gambia *0.01 40 Malta 2.20 90 Mali *0.01 41 Colombia 2.04 90 Tanzania *0.01 42 Brazil *1.90 93 Bangladesh *0.01 43 Hong Kong SAR 1.85 94 Ghana 0.01 44 Lithuania 1.77 95 Kenya *0.00 45 Taiwan 1.67 95 Zambia *0.00 46 Botswana *1.61 97 Ethiopia *0.00 46 Jamaica *1.61 97 Malawi *0.00 48 Malaysia 1.26 97 Mozambique *0.00 49 Namibia 1.24 97 Uganda 0.00 50 Bulgaria 1.21 101 Nigeria 0.00 51 Mauritius 1.18 102 Paraguay 0.00 0 50 100 150 200 0 50 100 150 200 Note: *estimate Source: International Telecommunication Union, World Telecommunication Indicators Database, accessed July 2003 III.1.03 Cable television subscribers, 2001 Cable television subscribers per 1,000 inhabitants, 2001 RANK COUNTRY VALUE RANK COUNTRY VALUE 1 Netherlands 392.40 52 Venezuela 40.20 2 Belgium 370.00 53 India 38.90 2 Switzerland 370.00 54 Croatia 38.00 4 Luxembourg 310.36 55 Guatemala *35.78 5 Canada 267.90 56 Ecuador 33.80 6 Germany 264.50 57 Algeria *28.30 7 United States 256.80 57 Macedonia, FYR *28.30 8 Malta 229.82 59 Mexico 24.80 9 Sweden 224.50 60 Paraguay 21.30 10 Denmark 200.90 60 Serbia *21.30 11 Iceland *198.38 62 Madagascar *19.35 12 Finland 192.50 63 Peru 16.70 13 Norway 185.20 64 Cameroon *16.58 14 Israel 185.00 65 Zimbabwe *15.17 15 Korea 182.50 66 Spain 14.20 16 Argentina 162.90 67 Egypt *14.03 17 Slovenia 160.80 67 Morocco *14.03 18 Hungary 159.70 69 Brazil 13.80 19 Ireland 159.40 70 Turkey 13.70 20 Austria 147.40 71 Colombia 13.60 20 Japan 147.40 72 Philippines 13.10 22 Greece *134.70 73 Vietnam *11.06 22 Taiwan *134.70 74 Nicaragua 10.80 274 24 Bulgaria 131.30 75 Namibia 10.60 25 Uruguay 125.90 76 Bolivia 9.70 26 Slovak Republic 122.90 77 Pakistan *7.96 27 Romania 120.60 78 Honduras 7.70 28 Latvia 116.10 79 Botswana 7.30 Presentation 29 Portugal 108.60 80 New Zealand 7.10 Data 30 Estonia 97.90 81 Haiti 4.80 3 31 Czech Republic 93.80 82 Thailand 2.50 artP 32 Poland 92.90 83 Italy 1.40 33 Trinidad and Tobago * 92.77 84 Angola 0.90 34 Lithuania 89.40 85 Malawi 0.50 35 Hong Kong SAR 83.80 86 Kenya 0.40 36 Costa Rica * 78.64 86 Nigeria 0.40 36 Malaysia *78.64 88 Bangladesh *0.37 38 Russian Federation 76.70 88 Zambia *0.37 39 Jamaica *75.73 90 Ghana 0.30 40 Mauritius *74.26 90 Indonesia 0.30 40 Panama *74.26 90 Jordan 0.30 42 Dominican Republic *73.84 90 Sri Lanka 0.30 43 Singapore 73.10 94 Gambia *0.23 44 Australia 72.20 94 Mali *0.23 45 China 68.60 96 Chad *0.20 46 United Kingdom 64.10 96 Mozambique *0.20 47 France 54.60 96 Tanzania 0.20 48 Tunisia *53.95 96 Uganda 0.20 49 Ukraine 52.30 100 Senegal 0.05 50 El Salvador 49.70 101 Ethiopia 0.00 51 Chile 46.00 101 South Africa 0.00 0 100 200 300 400 0 100 200 300 400 Note: *estimate Source: World Bank, World Development Indicators 2003 using International Telecommunication Union data III.1.04 Internet users, 2001 Internet users per 1,000 inhabitants, 2001 RANK COUNTRY VALUE RANK COUNTRY VALUE 1 Norway 600.00 52 Romania 44.84 2 Denmark 547.17 53 Tunisia 41.24 3 Sweden 522.73 54 Jordan 40.77 4 Korea 514.35 55 Jamaica 38.46 5 United States 495.05 56 Turkey 36.44 6 Netherlands 493.75 57 Mexico 35.72 7 Luxembourg * 467.93 58 Macedonia, FYR 33.33 8 Japan 438.67 59 Botswana 31.25 9 Canada 431.31 60 Panama 31.03 10 Iceland * 431.07 61 Russian Federation 29.90 11 Finland 429.81 62 Colombia 26.53 12 Malta * 407.17 63 China 26.04 13 United Kingdom 402.01 64 Philippines 25.45 14 Germany 375.61 65 Ecuador 25.04 15 Hong Kong SAR 371.57 66 Namibia 25.00 16 Australia 369.23 67 Dominican Republic 21.63 17 Singapore 357.14 68 Indonesia 18.39 18 Austria 320.99 69 Bolivia 17.24 19 Belgium 310.68 70 Guatemala 16.67 20 Switzerland 308.75 71 Kenya 15.67 21 Estonia 307.14 72 Morocco 12.90 22 Slovenia 300.00 73 Gambia 12.86 23 New Zealand 287.37 74 Vietnam 12.59 275 24 Israel 285.71 75 Ukraine 12.32 24 Italy 285.71 76 Paraguay 10.34 26 Malaysia 282.61 77 Senegal 10.10 27 France 262.19 78 Serbia * 9.90 28 Portugal 250.00 79 Nicaragua 9.43 Presentation 29 Ireland 229.49 80 Egypt 8.53 30 Taiwan * 227.36 81 Tanzania 8.15 Data 31 Chile 198.85 82 Sri Lanka 7.77 3 32 Spain 185.16 83 El Salvador 7.69 artP 33 Hungary 149.49 84 Zimbabwe 7.63 34 Czech Republic 135.92 85 India 6.72 35 Greece 132.08 86 Honduras 5.97 36 Mauritius 131.67 87 Angola 4.32 37 Slovak Republic 124.81 88 Haiti 3.57 38 Uruguay 117.65 89 Pakistan 3.36 39 Peru 113.21 90 Cameroon 2.90 40 Poland 98.70 91 Mali 2.50 41 Trinidad and Tobago 92.31 92 Uganda 2.42 42 Costa Rica 91.43 93 Zambia 2.29 43 Argentina 87.07 94 Madagascar 2.07 44 Bulgaria 77.56 95 Ghana 2.03 45 Latvia 70.83 96 Algeria 1.91 46 South Africa 69.41 97 Bangladesh 1.74 47 Lithuania 67.57 98 Malawi 1.69 48 Thailand 54.99 99 Nigeria 0.96 49 Croatia 53.19 100 Mozambique 0.79 50 Venezuela 50.40 101 Chad 0.48 51 Brazil 45.79 102 Ethiopia 0.38 0 100 200 300 400 500 600 0 100 200 300 400 500 600 Note: *estimate Source: World Bank, World Development Indicators 2003 using International Telecommunication Union data Section III--Usage Component Business Readiness 277 Presentation Data 3 artP III.2.01 Computers installed in businesses, 2002 Computers installed in businesses per 1,000 inhabitants, 2002 RANK COUNTRY VALUE RANK COUNTRY VALUE 1 United States 306.34 52 Turkey 20.90 2 Australia 280.43 53 Colombia 18.71 3 Sweden 272.86 54 Lithuania *17.20 4 Norway 264.79 55 Peru *14.94 5 Switzerland 249.37 56 Mauritius *14.40 6 Singapore 244.89 57 Jamaica *13.77 7 Denmark 231.47 58 Dominican Republic *13.10 8 Canada 220.08 59 Botswana *12.46 9 New Zealand 204.87 60 Romania 12.33 10 Israel 201.72 61 Gambia *11.16 11 Iceland *200.22 62 El Salvador *11.02 12 Netherlands 180.68 63 Philippines 10.95 13 Finland 179.12 64 Paraguay *10.44 14 Japan 171.04 65 China 10.14 15 Hong Kong SAR 166.24 66 Guatemala *9.66 16 Ireland 160.64 67 Ecuador *8.95 17 United Kingdom 155.84 68 Tunisia *8.12 18 Austria 143.96 69 Namibia *7.76 19 Luxembourg *142.07 70 Egypt 7.74 20 Germany 128.61 71 Indonesia 7.52 21 France 124.91 72 Ukraine *6.15 22 Belgium 122.80 73 Serbia *6.08 23 Korea 103.01 74 Bolivia *5.91 278 24 Malta * 90.23 75 Vietnam 5.74 25 Italy 85.64 76 Algeria *5.43 26 South Africa 78.56 77 Jordan *4.92 27 Slovenia 77.46 78 Honduras *4.47 28 Taiwan 77.28 79 Morocco *4.20 Presentation 29 Czech Republic 75.34 80 India 3.87 Data 30 Portugal 75.00 81 Nigeria *2.93 3 31 Spain 70.71 82 Chad *2.83 artP 32 Chile 65.94 83 Nicaragua *2.83 33 Malaysia 65.60 84 Mali *2.58 34 Poland 57.94 85 Cameroon *2.36 35 Hungary 53.99 86 Haiti *2.02 36 Greece 49.30 87 Zimbabwe *1.95 37 Mexico 47.27 88 Senegal *1.95 38 Brazil 43.83 89 Angola *1.58 39 Uruguay * 41.17 90 Ghana *1.32 40 Croatia 37.40 91 Zambia *1.19 41 Argentina 35.61 92 Uganda *1.09 42 Russian Federation 32.97 93 Kenya *1.03 43 Trinidad and Tobago * 32.56 94 Macedonia, FYR *0.77 44 Venezuela 31.17 95 Madagascar *0.75 45 Estonia * 29.45 96 Mozambique *0.59 46 Slovak Republic 29.25 97 Tanzania *0.58 47 Costa Rica * 23.25 98 Malawi *0.51 48 Bulgaria 21.43 99 Ethiopia *0.34 49 Thailand 21.11 100 Sri Lanka *0.21 50 Panama * 21.11 101 Pakistan *0.11 51 Latvia * 20.92 102 Bangladesh *0.06 0 50 100 150 200 250 300 350 0 50 100 150 200 250 300 350 Note: *estimate Sources: IDC and the World Bank, 2003 III.2.02 Firm-level technology absorption, 2003 Companies in your country are (1 = not interested in absorbing new technology, 7 = aggressive in absorbing new technology) RANK COUNTRY SCORE SD RANK COUNTRY SCORE SD 1 Finland 6.42 0.60 52 El Salvador 4.83 1.36 2 Japan 6.28 0.61 53 Czech Republic 4.76 1.22 3 Sweden 6.26 0.66 54 Poland 4.76 1.08 4 Israel 6.19 0.81 54 Turkey 4.76 1.20 5 Singapore 6.10 0.79 56 Madagascar 4.75 1.40 6 United States 6.06 1.42 57 Ghana 4.74 1.56 7 Iceland 6.00 0.62 58 China 4.72 1.46 8 Taiwan 5.86 1.08 59 Colombia 4.70 1.21 9 Switzerland 5.78 1.10 60 Uganda 4.66 1.79 10 Korea 5.76 1.04 61 Italy 4.66 1.26 11 Germany 5.74 1.05 62 Sri Lanka 4.66 1.44 12 Senegal 5.70 1.27 63 Mauritius 4.66 0.87 13 Denmark 5.69 0.64 64 Mozambique 4.61 1.43 14 Malaysia 5.55 0.77 65 Romania 4.58 1.39 15 Vietnam 5.51 1.28 66 Russian Federation 4.58 1.41 16 Australia 5.45 0.60 67 Ukraine 4.57 1.26 17 Costa Rica 5.43 1.15 68 Hungary 4.57 0.94 18 Canada 5.43 1.00 69 Botswana 4.55 1.25 19 Estonia 5.42 1.03 70 Argentina 4.49 1.18 20 Luxembourg 5.38 0.95 71 Egypt 4.49 1.61 21 Norway 5.37 0.84 72 Philippines 4.49 1.12 22 New Zealand 5.34 0.88 73 Jamaica 4.48 1.25 23 Tunisia 5.34 1.17 74 Venezuela 4.47 1.31 279 24 Chile 5.34 0.99 75 Namibia 4.47 1.18 25 Lithuania 5.32 0.90 76 Algeria 4.46 1.65 26 Slovak Republic 5.30 1.12 77 Kenya 4.45 1.24 27 France 5.28 0.88 78 Greece 4.42 1.20 28 Hong Kong SAR 5.27 1.25 79 Peru 4.42 1.28 Presentation 29 Ireland 5.25 0.98 80 Zimbabwe 4.36 1.22 30 Thailand 5.22 0.97 81 Guatemala 4.33 1.30 Data 31 India 5.19 1.09 82 Pakistan 4.31 1.21 3 32 Panama 5.15 1.11 83 Bangladesh 4.29 1.46 artP 33 Dominican Republic 5.14 1.09 84 Cameroon 4.27 1.60 34 United Kingdom 5.14 1.04 85 Angola 4.26 1.85 35 Croatia 5.14 1.51 86 Serbia 4.25 1.30 36 Spain 5.13 1.06 87 Portugal 4.20 1.24 37 Austria 5.12 1.17 88 Zambia 4.19 1.38 38 Latvia 5.09 0.95 89 Haiti 4.16 1.40 39 South Africa 5.08 0.96 90 Ecuador 4.12 1.39 40 Brazil 5.06 1.06 91 Nicaragua 4.11 1.65 41 Belgium 5.04 1.07 92 Malawi 4.09 1.52 42 Gambia 5.01 1.55 93 Macedonia, FYR 4.04 1.76 43 Morocco 5.00 1.70 94 Mali 4.03 1.92 44 Mexico 4.99 1.13 95 Bulgaria 4.01 1.23 45 Malta 4.96 1.01 96 Indonesia 4.00 1.54 46 Slovenia 4.95 0.96 96 Uruguay 4.00 1.05 47 Trinidad and Tobago 4.92 1.00 98 Ethiopia 3.99 1.60 48 Jordan 4.86 1.25 99 Chad 3.98 2.13 49 Nigeria 4.85 1.35 100 Paraguay 3.85 1.35 50 Tanzania 4.85 1.28 101 Honduras 3.77 1.40 51 Netherlands 4.85 1.17 102 Bolivia 3.72 1.32 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 Source: World Economic Forum, Executive Opinion Survey 2003 III.2.03 Prevalence of foreign technology licensing, 2003 In your country, licensing foreign technology is (1 = uncommon, 7 = a common means of acquiring new technology) RANK COUNTRY SCORE SD RANK COUNTRY SCORE SD 1 Singapore 5.71 1.15 52 Canada 4.63 1.61 2 Malaysia 5.60 0.86 53 Belgium 4.62 1.66 3 Australia 5.60 1.05 54 Ireland 4.62 1.52 4 South Africa 5.59 0.81 55 France 4.62 1.22 5 Thailand 5.51 1.10 55 Spain 4.62 1.69 6 India 5.48 1.38 57 United Kingdom 4.62 1.71 7 Brazil 5.32 1.41 58 El Salvador 4.61 1.54 8 Mexico 5.24 1.41 58 Switzerland 4.61 1.59 9 Portugal 5.21 1.25 60 Slovenia 4.58 1.24 10 Greece 5.20 1.41 61 Pakistan 4.56 1.65 11 Costa Rica 5.16 1.39 62 Norway 4.56 1.19 12 Botswana 5.13 1.56 63 Sweden 4.52 1.61 13 Jordan 5.12 1.54 64 Egypt 4.52 1.68 14 Taiwan 5.12 1.58 65 Hungary 4.51 1.54 15 Italy 5.11 1.24 66 Lithuania 4.49 1.47 16 Denmark 5.10 1.16 67 Romania 4.48 1.62 17 Czech Republic 5.09 1.31 68 Vietnam 4.44 1.71 18 Latvia 5.08 1.15 69 Morocco 4.42 1.85 19 Korea 5.08 1.42 70 China 4.36 1.57 20 Israel 5.05 1.10 71 Ghana 4.29 1.73 21 Croatia 5.05 1.71 72 Peru 4.27 1.55 22 Iceland 5.04 1.22 73 Jamaica 4.21 1.58 23 Philippines 5.00 1.26 74 Austria 4.16 1.50 280 23 Turkey 5.00 1.45 75 Colombia 4.10 1.60 23 United States 5.00 1.31 76 Uruguay 4.02 1.46 26 Panama 4.99 1.43 77 Zambia 3.91 1.84 27 Japan 4.99 1.50 78 Macedonia, FYR 3.91 2.19 28 Kenya 4.96 1.66 79 Malawi 3.90 1.94 Presentation 29 Tunisia 4.92 1.34 80 Ecuador 3.84 1.53 Data 30 Chile 4.91 1.40 81 Indonesia 3.82 1.35 3 31 Dominican Republic 4.90 1.42 82 Senegal 3.81 2.08 artP 32 New Zealand 4.89 1.30 83 Bangladesh 3.80 1.90 33 Namibia 4.88 1.42 84 Mozambique 3.79 1.86 34 Nigeria 4.87 1.71 85 Nicaragua 3.78 1.54 35 Tanzania 4.86 1.63 86 Serbia 3.78 1.90 36 Netherlands 4.85 1.40 87 Guatemala 3.74 1.77 37 Hong Kong SAR 4.85 1.74 88 Cameroon 3.72 1.86 38 Germany 4.83 1.43 89 Honduras 3.72 1.59 39 Zimbabwe 4.82 1.47 90 Gambia 3.60 2.07 40 Uganda 4.82 2.01 91 Bulgaria 3.57 1.59 41 Estonia 4.78 1.34 92 Algeria 3.35 1.97 42 Trinidad and Tobago 4.77 1.58 93 Russian Federation 3.27 1.62 43 Poland 4.75 1.41 94 Ukraine 3.25 1.49 44 Sri Lanka 4.71 1.65 95 Bolivia 3.11 1.53 45 Malta 4.70 1.64 96 Angola 3.09 1.79 46 Luxembourg 4.69 1.49 97 Paraguay 2.94 1.31 47 Finland 4.68 1.45 98 Madagascar 2.79 1.72 48 Slovak Republic 4.67 1.57 99 Ethiopia 2.76 1.72 49 Argentina 4.65 1.54 100 Chad 2.73 1.90 50 Venezuela 4.65 1.41 101 Haiti 2.58 1.74 51 Mauritius 4.63 1.30 102 Mali 2.57 1.82 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 Source: World Economic Forum, Executive Opinion Survey 2003 Section III--Usage Component Government Readiness 281 Presentation Data 3 artP III.3.01 Government success in ICT promotion, 2003 Government programs promoting the use of information and communication technologies (ICT) are (1 = not very successful, 7 = highly successful) RANK COUNTRY SCORE SD RANK COUNTRY SCORE SD 1 Singapore 5.90 0.86 52 Lithuania 3.72 1.36 2 Malaysia 5.32 0.91 53 Mozambique 3.71 1.53 3 Tunisia 5.29 1.19 54 Netherlands 3.70 1.33 4 Korea 5.29 1.15 55 Slovenia 3.70 1.32 5 Finland 5.23 0.91 56 Colombia 3.70 1.32 6 Taiwan 5.19 1.18 57 Serbia 3.65 1.43 7 Malta 5.05 1.31 58 Italy 3.65 1.25 8 Jordan 4.94 1.26 59 New Zealand 3.65 1.27 9 Gambia 4.89 1.64 60 Jamaica 3.62 1.28 10 Denmark 4.83 1.11 61 Belgium 3.61 1.50 11 Iceland 4.81 1.27 62 El Salvador 3.59 1.22 12 Estonia 4.77 1.07 63 Costa Rica 3.59 1.40 13 Mauritius 4.77 0.97 64 Croatia 3.58 1.53 14 Thailand 4.64 1.19 65 Hungary 3.58 1.45 15 Vietnam 4.64 1.31 66 Namibia 3.57 1.35 16 India 4.59 1.28 67 Zambia 3.55 1.56 17 Canada 4.56 1.63 68 Philippines 3.55 1.53 18 United States 4.55 1.29 69 Indonesia 3.54 1.19 19 Sweden 4.43 1.40 70 Trinidad and Tobago 3.51 1.30 20 Ireland 4.41 1.48 71 Mali 3.49 1.56 21 Israel 4.38 1.59 72 Greece 3.47 1.26 22 Ghana 4.37 1.56 73 Cameroon 3.44 1.57 23 Luxembourg 4.33 1.19 74 Dominican Republic 3.39 1.50 282 24 China 4.30 1.39 75 Kenya 3.37 1.51 25 Uganda 4.26 1.90 76 Malawi 3.34 1.26 26 France 4.26 1.20 77 Czech Republic 3.27 1.40 27 Tanzania 4.22 1.59 78 Slovak Republic 3.25 1.31 28 Switzerland 4.15 1.39 79 Uruguay 3.25 1.34 Presentation 29 Botswana 4.15 1.23 80 Panama 3.21 1.44 Data 30 Japan 4.12 1.32 81 Poland 3.13 1.37 3 31 Hong Kong SAR 4.11 1.40 82 Peru 3.11 1.41 artP 32 Morocco 4.08 1.61 82 Ukraine 3.11 1.37 33 Pakistan 4.06 1.37 84 Ethiopia 3.06 1.52 34 South Africa 4.03 1.28 85 Bulgaria 2.95 1.31 35 Egypt 4.01 1.54 86 Russian Federation 2.94 1.31 36 Senegal 4.00 1.70 87 Turkey 2.87 1.07 37 Germany 3.99 1.33 88 Bangladesh 2.82 1.26 38 Brazil 3.98 1.31 89 Macedonia, FYR 2.79 1.65 39 Nigeria 3.91 1.76 90 Angola 2.78 1.29 40 Austria 3.90 1.36 91 Algeria 2.78 1.24 41 Chile 3.89 1.33 92 Nicaragua 2.78 1.31 42 Norway 3.89 1.19 93 Bolivia 2.65 1.35 43 Latvia 3.89 1.45 94 Ecuador 2.46 1.26 44 Sri Lanka 3.87 1.36 95 Honduras 2.44 1.21 45 Australia 3.85 0.93 96 Argentina 2.43 1.18 46 Spain 3.82 1.26 97 Zimbabwe 2.42 1.26 47 United Kingdom 3.80 1.30 98 Chad 2.33 1.64 48 Portugal 3.80 1.14 99 Venezuela 2.21 1.17 49 Romania 3.77 1.54 100 Haiti 1.96 1.00 50 Madagascar 3.77 1.51 101 Guatemala 1.95 1.01 51 Mexico 3.74 1.47 102 Paraguay 1.81 1.11 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 Source: World Economic Forum, Executive Opinion Survey 2003 III.3.02 Government online services, 2003 Sophistication of government online services (1­7 scale), 2003 RANK COUNTRY SCORE SD RANK COUNTRY SCORE SD 1 Singapore 7.00 0.86 49 Serbia 2.60 1.36 2 Hong Kong SAR 6.47 0.91 53 Indonesia 2.47 1.53 2 United States 6.47 1.19 54 Bulgaria 2.47 1.33 4 Canada 6.20 1.15 54 Luxembourg 2.47 1.32 5 Denmark 5.27 0.91 54 Morocco 2.47 1.32 6 Germany 4.87 1.18 54 Slovenia 2.47 1.43 7 Austria 4.73 1.31 58 Brazil 2.33 1.25 8 Israel 4.60 1.26 59 Jordan 2.33 1.27 8 Japan 4.60 1.64 59 Kenya 2.33 1.28 8 United Kingdom 4.60 1.11 59 Latvia 2.33 1.50 11 Australia 4.47 1.27 59 Uganda 2.33 1.22 11 Sweden 4.47 1.07 63 Croatia 2.20 1.40 11 Taiwan 4.47 0.97 63 Lithuania 2.20 1.53 14 France 4.33 1.19 63 Panama 2.20 1.45 15 New Zealand 4.20 1.31 63 Peru 2.20 1.35 16 Estonia 4.07 1.28 63 Poland 2.20 1.56 17 Argentina 4.07 1.63 68 Algeria 2.07 1.53 18 China 3.93 1.29 68 Macedonia, FYR 2.07 1.19 18 Ireland 3.93 1.40 68 Paraguay 2.07 1.30 20 Finland 3.80 1.48 68 Sri Lanka 2.07 1.56 20 Malaysia 3.80 1.59 68 Trinidad and Tobago 2.07 1.26 20 Philippines 3.80 1.56 73 Uruguay 1.93 1.57 20 Turkey 3.80 1.19 74 Bangladesh 1.93 1.50 283 24 Belgium 3.67 1.39 74 Botswana 1.93 1.51 24 Mexico 3.67 1.90 74 Colombia 1.93 1.26 26 Korea 3.67 1.20 74 El Salvador 1.93 1.40 27 Italy 3.53 1.59 74 Tanzania 1.93 1.31 27 Malta 3.53 1.39 74 Ukraine 1.93 1.34 Presentation 29 Jamaica 3.40 1.23 74 Zambia 1.93 1.44 29 Norway 3.40 1.32 81 Cameroon 1.80 1.37 Data 29 South Africa 3.40 1.40 81 Costa Rica 1.80 1.41 3 32 Chile 3.27 1.61 81 Mozambique 1.80 1.37 artP 33 Netherlands 3.13 1.37 81 Tunisia 1.80 1.52 33 Switzerland 3.13 1.28 81 Vietnam 1.80 1.31 35 Romania 3.13 1.54 86 Angola 1.67 1.31 36 Pakistan 3.00 1.70 86 Ethiopia 1.67 1.07 36 Portugal 3.00 1.33 86 Nigeria 1.67 1.26 36 Spain 3.00 1.31 89 Honduras 1.53 1.65 39 Iceland 2.87 1.76 89 Malawi 1.53 1.29 40 Hungary 2.87 1.36 89 Namibia 1.53 1.24 40 India 2.87 1.33 89 Senegal 1.53 1.31 40 Slovak Republic 2.87 1.19 93 Bolivia 1.40 1.35 40 Thailand 2.87 1.45 93 Dominican Republic 1.40 1.26 44 Egypt 2.73 1.36 93 Madagascar 1.40 1.21 44 Mauritius 2.73 0.93 96 Gambia 1.27 1.18 44 Russian Federation 2.73 1.26 96 Ghana 1.27 1.26 47 Czech Republic 2.73 1.30 96 Nicaragua 1.27 1.64 47 Venezuela 2.73 1.14 99 Chad 1.00 1.17 49 Ecuador 2.60 1.54 99 Haiti 1.00 1.00 49 Greece 2.60 1.51 99 Mali 1.00 1.01 49 Guatemala 2.60 1.47 99 Zimbabwe 1.00 1.11 0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 Source: World Economic Forum, 2003 Section 1 Environment Component Key Indicators 285 Presentations Data 3 artP 1. Total GDP, 2002 GROSS DOMESTIC PRODUCT GROSS DOMESTIC PRODUCT RANK COUNTRY IN BILLIONS OF US DOLLARS, 2002 RANK COUNTRY IN BILLIONS OF US DOLLARS, 2002 1 United States 10,445.6 52 Ukraine 41.4 2 Japan 3,992.2 53 Morocco 37.2 3 Germany 1,990.3 54 Vietnam 34.1 4 United Kingdom 1,557.2 55 Ecuador 24.5 5 France 1,422.9 56 Slovak Republic 23.7 6 China 1,237.2 57 Dominican Republic 21.8 7 Italy 1,188.0 58 Tunisia 21.3 8 Canada 727.8 59 Croatia 21.2 9 Spain 655.1 60 Slovenia 21.2 10 Mexico 641.5 61 Luxembourg 20.6 11 India 502.4 62 Guatemala 19.6 12 Korea 461.5 63 Zimbabwe 19.3 13 Brazil 448.7 64 Costa Rica 16.9 14 Netherlands 419.9 65 Sri Lanka 16.4 15 Australia 399.1 66 Bulgaria 16.2 16 Russian Federation 346.6 67 El Salvador 14.5 17 Taiwan 281.5 68 Serbia 13.0 18 Switzerland 267.5 69 Lithuania 12.7 19 Belgium 246.8 70 Kenya 11.8 20 Sweden 240.3 71 Angola 11.6 21 Austria 206.2 72 Panama 11.2 22 Norway 189.7 73 Uruguay 9.9 23 Poland 189.2 74 Tanzania 9.4 24 Turkey 182.8 75 Jordan 9.3 286 25 Indonesia 173.2 76 Cameroon 9.0 26 Denmark 172.4 77 Trinidad and Tobago 9.0 27 Hong Kong SAR 163.0 78 Iceland 8.7 28 Greece 133.2 79 Latvia 8.4 29 Finland 132.2 80 Bolivia 8.1 Presentations 30 Thailand 126.4 81 Jamaica 7.8 31 Portugal 122.1 82 Paraguay 7.1 Data 32 Ireland 121.8 83 Honduras 6.6 3 33 South Africa 104.8 84 Estonia 6.1 artP 34 Argentina 103.0 85 Ghana 6.1 35 Israel 102.7 86 Ethiopia 6.0 36 Malaysia 95.2 87 Uganda 5.9 37 Venezuela 94.3 88 Senegal 5.1 38 Singapore 90.2 89 Botswana 5.0 39 Egypt 85.5 90 Mauritius 4.5 40 Philippines 77.1 91 Madagascar 4.5 41 Colombia 71.2 92 Malta 3.9 42 Czech Republic 70.1 93 Mozambique 3.9 43 Pakistan 65.1 94 Macedonia, FYR 3.8 44 Chile 64.5 95 Zambia 3.7 45 Hungary 64.0 96 Haiti 3.6 46 New Zealand 58.4 97 Mali 3.1 47 Peru 54.8 98 Namibia 2.9 48 Algeria 54.1 99 Nicaragua 2.6 49 Bangladesh 46.9 100 Chad 1.9 50 Romania 42.8 101 Malawi 1.9 51 Nigeria 42.7 102 Gambia 0.4 Source: IMF World Economic Outlook Database, April 2002 2. GDP per capita, 2002 GROSS DOMESTIC PRODUCT GROSS DOMESTIC PRODUCT RANK COUNTRY PER CAPITA IN US DOLLARS, 2002 RANK COUNTRY PER CAPITA IN US DOLLARS, 2002 1 Luxembourg 45,975 52 Brazil 2,568 2 Norway 42,164 53 Dominican Republic 2,538 3 Switzerland 37,150 54 Russian Federation 2,410 4 United States 36,207 55 South Africa 2,370 5 Denmark 32,524 56 El Salvador 2,233 6 Japan 31,312 57 Tunisia 2,191 7 Ireland 31,231 58 Bulgaria 2,081 8 Iceland 30,633 59 Peru 2,069 9 Sweden 27,308 60 Thailand 1,966 10 Netherlands 26,241 61 Romania 1,920 11 United Kingdom 26,084 62 Ecuador 1,871 12 Austria 25,457 63 Macedonia, FYR 1,810 13 Finland 25,428 64 Jordan 1,789 14 Germany 24,272 65 Algeria 1,724 15 Belgium 23,960 66 Guatemala 1,637 16 France 23,835 67 Colombia 1,637 17 Hong Kong SAR 23,283 68 Namibia 1,594 18 Canada 23,252 69 Zimbabwe 1,473 19 Singapore 21,486 70 Serbia 1,238 20 Italy 20,696 71 Paraguay 1,231 21 Australia 20,466 72 Egypt 1,217 22 Spain 16,419 73 Morocco 1,198 23 Israel 16,303 74 Honduras 982 24 New Zealand 15,356 75 Philippines 980 25 Greece 12,570 76 China 956 287 26 Taiwan 12,512 77 Bolivia 927 27 Portugal 12,210 78 Sri Lanka 851 28 Slovenia 10,607 79 Ukraine 850 29 Malta 9,969 80 Angola 837 30 Korea 9,736 81 Indonesia 796 Presentations 31 Trinidad and Tobago 6,947 82 Cameroon 583 Data 32 Czech Republic 6,807 83 Senegal 516 3 33 Hungary 6,465 84 Nicaragua 485 34 Mexico 6,302 85 India 483 artP 35 Poland 4,913 86 Pakistan 438 36 Croatia 4,516 87 Haiti 427 37 Slovak Republic 4,386 88 Vietnam 425 38 Estonia 4,335 89 Kenya 369 39 Malaysia 4,137 90 Nigeria 356 40 Chile 4,132 91 Zambia 343 41 Costa Rica 4,029 92 Bangladesh 327 42 Panama 3,877 93 Ghana 300 43 Mauritius 3,778 94 Madagascar 265 44 Venezuela 3,759 95 Mali 257 45 Latvia 3,500 96 Tanzania 255 46 Lithuania 3,426 97 Gambia 251 47 Botswana 3,148 98 Uganda 236 48 Jamaica 2,991 99 Chad 231 49 Uruguay 2,907 100 Mozambique 206 50 Argentina 2,718 101 Malawi 163 51 Turkey 2,665 102 Ethiopia 91 Sources: Calculation based on GDP data from the IMF World Economic Outlook Database, April 2002 and Population data from the UNFPA State of the World Population 2002. 3. Population, 2002 RANK COUNTRY TOTAL POPULATION, 2002 RANK COUNTRY TOTAL POPULATION, 2002 1 China 1,284,530,000 52 Greece 11,018,000 2 India 1,041,846,000 53 Serbia 10,720,000 3 United States 288,368,700 54 Zambia 10,696,000 4 Indonesia 212,110,000 55 Mali 10,628,800 5 Brazil 173,879,000 56 Malawi 10,436,800 6 Pakistan 148,784,000 57 Portugal 10,409,000 7 Russian Federation 146,586,000 58 Belgium 10,346,000 8 Bangladesh 133,132,000 59 Hungary 10,152,000 9 Japan 127,530,000 60 Czech Republic 10,144,000 10 Nigeria 120,079,000 61 Tunisia 9,815,000 11 Mexico 101,877,000 62 Senegal 9,802,000 12 Germany 82,600,000 63 Sweden 8,943,000 13 Vietnam 81,248,500 64 Dominican Republic 8,707,500 14 Philippines 79,982,000 65 Bolivia 8,341,000 15 Ethiopia 67,347,000 66 Haiti 8,298,000 16 Turkey 67,272,000 67 Austria 8,159,000 17 Egypt 65,643,000 68 Chad 7,871,778 18 Thailand 61,887,000 69 Bulgaria 7,801,000 19 France 59,637,000 70 Switzerland 7,281,270 20 United Kingdom 59,088,000 71 Hong Kong SAR 6,773,000 21 Italy 56,464,000 72 Honduras 6,712,000 22 Ukraine 50,137,000 73 Israel 6,635,600 23 Korea 47,600,000 74 El Salvador 6,457,500 24 South Africa 45,454,000 75 Paraguay 5,782,000 288 25 Colombia 43,290,000 76 Slovak Republic 5,378,000 26 Spain 40,683,000 77 Denmark 5,374,255 27 Poland 38,609,000 78 Nicaragua 5,370,000 28 Argentina 36,600,000 79 Jordan 5,329,000 29 Tanzania 34,569,230 80 Finland 5,207,000 Presentations 30 Kenya 31,930,000 81 Croatia 4,844,000 31 Canada 31,414,000 82 Norway 4,556,000 Data 32 Algeria 31,293,000 83 Singapore 4,163,700 3 33 Morocco 29,643,000 84 Costa Rica 4,143,000 artP 34 Peru 26,748,970 85 New Zealand 3,939,100 35 Venezuela 25,300,000 86 Ireland 3,931,000 36 Uganda 24,700,000 87 Lithuania 3,460,000 37 Malaysia 24,370,000 88 Uruguay 3,385,000 38 Taiwan 22,457,000 89 Panama 2,960,000 39 Romania 22,330,000 90 Jamaica 2,618,000 40 Ghana 21,674,000 91 Latvia 2,329,000 41 Australia 19,662,780 92 Macedonia, FYR 2,064,000 42 Sri Lanka 18,947,000 93 Slovenia 1,996,000 43 Mozambique 18,234,000 94 Namibia 1,875,000 44 Netherlands 16,195,000 95 Botswana 1,720,000 45 Madagascar 15,910,600 96 Gambia 1,372,000 46 Cameroon 15,752,000 97 Estonia 1,355,000 47 Chile 15,050,340 98 Trinidad and Tobago 1,301,500 48 Angola 13,937,000 99 Mauritius 1,210,492 49 Ecuador 12,941,500 100 Luxembourg 449,000 50 Guatemala 11,997,000 101 Malta 396,000 51 Zimbabwe 11,634,660 102 Iceland 288,000 Source: International Telecommunication Union, World Telecommunication Indicators database, accessed July 2003 4. Households, 2002 RANK COUNTRY NUMBER OF HOUSEHOLDS, 2002 RANK COUNTRY NUMBER OF HOUSEHOLDS, 2002 1 China 347,663,000 52 Dominican Republic 3,448,000 b 2 India 192,816,000 53 Austria 3,311,000 a 3 United States 108,291,000 54 Madagascar 3,098,459 a 4 Indonesia 53,972,000 55 Switzerland 3,035,125 5 Russian Federation 52,000,000 b 56 Bulgaria 2,901,600 b 6 Japan 48,105,000 57 Ecuador 2,848,000 a 7 Brazil 46,103,000 58 Angola 2,787,400 8 Germany 38,456,000 a 59 Cameroon 2,765,000 a 9 Bangladesh 25,673,000 60 Zimbabwe 2,644,200 10 Pakistan 24,703,000 61 Guatemala 2,600,000 a 11 France 24,582,000 a 62 Denmark 2,466,693 12 Nigeria 24,554,000 63 Malawi 2,426,000 13 United Kingdom 24,410,000 a 64 Finland 2,400,000 a 14 Mexico 21,800,000 a 65 Serbia 2,350,000 a 15 Italy 21,176,000 b 66 Hong Kong SAR 2,133,700 16 Vietnam 16,386,000 67 Zambia 2,080,000 17 Ukraine 16,300,000 b 68 Tunisia 2,055,200 a 18 Philippines 15,967,000 69 Norway 1,955,000 a 19 Thailand 15,889,000 70 Bolivia 1,923,000 a 20 Korea 14,852,000 71 Israel 1,856,000 21 Turkey 14,820,000 72 Mali 1,756,826 22 Egypt 14,033,000 73 Slovak Republic 1,665,535 a 23 Spain 13,548,000 a 74 Croatia 1,623,732 b 24 Poland 13,130,100 b 75 Haiti 1,621,569 a 25 Ethiopia 12,874,000 76 Chad 1,574,355 289 26 Canada 12,105,000 77 Honduras 1,487,319 a 27 South Africa 10,200,000 78 El Salvador 1,467,000 a 28 Argentina 10,106,300 a 79 New Zealand 1,382,000 29 Colombia 8,679,000 a 80 Paraguay 1,368,204 a 30 Australia 7,393,000 a 81 Lithuania 1,350,335 b Presentations 31 Romania 7,392,131 a 82 Ireland 1,305,000 a Data 32 Netherlands 7,041,000 a 83 Senegal 1,125,660 a 3 33 Tanzania 6,996,036 84 Uruguay 1,000,000 a 34 Kenya 6,938,000 85 Latvia 998,000 a artP 35 Taiwan 6,818,000 86 Singapore 991,000 36 Peru 5,855,000 a 87 Nicaragua 937,000 a 37 Malaysia 5,389,000 88 Costa Rica 935,273 b 38 Morocco 5,354,000 a 89 Jordan 919,000 39 Venezuela 5,261,202 a 90 Jamaica 727,000 40 Uganda 5,255,319 91 Panama 691,600 a 41 Algeria 5,000,000 a 92 Slovenia 640,195 a 42 Sri Lanka 4,741,000 93 Estonia 580,000 a 43 Ghana 4,463,000 94 Macedonia, FYR 561,000 b 44 Sweden 4,300,000 a 95 Botswana 414,000 45 Belgium 4,277,670 a 96 Namibia 357,000 46 Mozambique 4,270,000 97 Trinidad and Tobago 347,000 47 Chile 4,250,000 a 98 Mauritius 310,000 48 Czech Republic 3,828,912 a 99 Gambia 175,000 49 Hungary 3,726,000 a 100 Luxembourg 174,775 50 Greece 3,600,000 a 101 Malta 131,341 a 51 Portugal 3,567,983 a 102 Iceland 102,000 a Note: a=2001 data, b=2000 data Source: International Telecommunication Union, World Telecommunication Indicators database, accessed July 2003 5. Telephone lines, 2002 NUMBER OF MAIN TELEPHONE NUMBER OF MAIN TELEPHONE RANK COUNTRY LINES IN OPERATION, 2002 RANK COUNTRY LINES IN OPERATION, 2002 1 China 214,420,000 52 Algeria 1,908,000 2 United States 190,000,000 53 Croatia 1,879,000 3 Japan 71,149,000 54 New Zealand 1,765,000 4 Germany 53,720,000 55 Ecuador 1,426,188 5 India 41,420,000 56 Slovak Republic 1,402,725 6 Brazil 38,810,000 57 Tunisia 1,148,000 7 Russian Federation 35,500,000 58 Morocco 1,127,447 8 United Kingdom 35,145,000 59 Costa Rica 1,037,986 9 France 33,928,740 60 Dominican Republic 955,145 a 10 Italy 27,451,950 61 Uruguay 946,533 11 Korea 23,257,000 62 Lithuania 935,899 12 Canada 19,962,070 63 Sri Lanka 883,108 13 Turkey 18,914,860 64 Guatemala 845,968 14 Spain 18,705,600 65 Slovenia 811,435 15 Mexico 14,941,630 66 Nigeria 702,000 16 Taiwan 13,099,420 67 Latvia 701,211 17 Poland 11,400,000 a 68 Jordan 687,598 18 Ukraine 10,669,600 a 69 Bangladesh 682,000 19 Australia 10,590,000 70 El Salvador 667,699 20 Netherlands 10,000,000 71 Bolivia 563,941 21 Argentina 8,009,446 72 Macedonia, FYR 538,507 a 22 Colombia 7,766,000 73 Estonia 475,000 23 Indonesia 7,750,035 74 Jamaica 450,000 24 Egypt 7,430,000 75 Panama 376,499 a 290 25 Thailand 6,499,842 76 Ethiopia 368,199 26 Sweden 6,441,000 77 Luxembourg 346,763 a 27 Greece 5,607,726 a 78 Kenya 328,104 28 Switzerland 5,335,000 79 Mauritius 327,225 29 Belgium 5,132,427 80 Trinidad and Tobago 325,054 Presentations 30 South Africa 4,895,000 81 Honduras 322,497 31 Malaysia 4,670,000 82 Zimbabwe 287,854 Data 32 Portugal 4,361,000 83 Paraguay 273,218 3 33 Romania 4,116,000 a 84 Ghana 242,122 a artP 34 Austria 3,988,000 85 Senegal 224,623 35 Czech Republic 3,860,843 a 86 Malta 207,269 36 Hong Kong SAR 3,842,943 87 Iceland 180,690 37 Denmark 3,739,247 88 Nicaragua 171,632 38 Pakistan 3,690,000 89 Tanzania 148,464 a 39 Hungary 3,666,443 90 Botswana 142,600 a 40 Vietnam 3,664,752 91 Haiti 130,000 41 Chile 3,467,202 92 Namibia 117,398 a 42 Philippines 3,338,926 93 Cameroon 101,442 a 43 Norway 3,325,000 94 Mozambique 89,488 a 44 Israel 3,100,000 95 Zambia 88,475 45 Bulgaria 2,922,028 96 Angola 85,000 46 Finland 2,850,000 97 Malawi 73,100 47 Venezuela 2,841,771 98 Madagascar 59,441 48 Serbia 2,492,963 99 Uganda 54,976 49 Peru 2,022,265 a 100 Mali 49,730 50 Ireland 1,975,000 101 Gambia 38,350 51 Singapore 1,930,200 102 Chad 11,835 Note: a=2001 data Source: International Telecommunication Union, World Telecommunication Indicators database, accessed July 2003 6. Cellular phones, 2002 NUMBER OF CELLULAR MOBILE NUMBER OF CELLULAR MOBILE RANK COUNTRY TELEPHONE SUBSCRIBERS, 2002 RANK COUNTRY TELEPHONE SUBSCRIBERS, 2002 1 China 206,620,000 52 Ukraine 2,224,600 2 United States 140,766,800 53 Vietnam 1,902,388 3 Japan 81,118,000 54 Paraguay 1,667,018 4 Germany 59,200,000 55 Slovenia 1,667,000 5 Italy 52,316,000 56 Nigeria 1,633,060 6 United Kingdom 49,921,000 57 Lithuania 1,631,573 7 France 38,585,300 58 Guatemala 1,577,085 8 Brazil 34,881,000 59 Ecuador 1,560,861 9 Spain 33,475,000 60 Bulgaria 1,550,000 10 Korea 32,342,000 61 Jamaica 1,400,000 11 Mexico 25,928,260 62 Kenya 1,325,222 12 Taiwan 23,905,410 63 Dominican Republic 1,270,082 13 Turkey 23,374,360 64 Jordan 1,219,597 14 Russian Federation 17,668,130 65 Pakistan 1,219,000 15 Thailand 16,117,000 66 Bangladesh 1,075,000 16 Philippines 14,216,230 67 Sri Lanka 931,580 17 Poland 14,000,000 68 Latvia 917,196 18 India 12,687,640 69 El Salvador 888,818 19 Australia 12,579,000 70 Estonia 881,000 20 Netherlands 12,100,000 71 Bolivia 872,676 21 South Africa 12,081,000 72 Uruguay 652,000 22 Canada 11,849,020 73 Cameroon 563,000 23 Indonesia 11,700,000 74 Senegal 553,427 24 Greece 9,314,260 75 Costa Rica 528,047 25 Malaysia 9,245,000 76 Tunisia 503,911 291 26 Czech Republic 8,610,177 77 Panama 475,354 27 Portugal 8,528,900 78 Luxembourg 455,000 28 Belgium 8,135,512 79 Tanzania 426,964 29 Sweden 7,915,000 80 Botswana 415,000 30 Hungary 6,561,998 81 Ghana 405,000 Presentations 31 Argentina 6,500,000 82 Algeria 400,000 Data 32 Venezuela 6,463,561 83 Uganda 393,310 3 33 Chile 6,445,698 84 Trinidad and Tobago 361,911 34 Austria 6,415,000 85 Zimbabwe 353,000 artP 35 Israel 6,334,000 86 Mauritius 350,000 36 Hong Kong SAR 6,297,541 87 Honduras 326,508 37 Morocco 6,198,670 88 Mozambique 297,000 38 Switzerland 5,734,000 89 Malta 276,859 39 Colombia 4,597,000 90 Iceland 256,000 40 Egypt 4,494,700 91 Nicaragua 239,927 41 Denmark 4,478,145 92 Macedonia, FYR 223,275 42 Finland 4,400,000 93 Madagascar 163,010 43 Romania 3,845,116 94 Namibia 150,000 44 Norway 3,842,000 95 Haiti 140,000 45 Singapore 3,295,100 96 Zambia 139,092 46 Ireland 2,969,000 97 Angola 130,000 47 Slovak Republic 2,923,383 98 Gambia 100,000 48 Serbia 2,750,397 99 Malawi 86,047 49 New Zealand 2,436,000 100 Mali 52,639 50 Peru 2,300,000 101 Ethiopia 50,369 51 Croatia 2,278,000 102 Chad 34,200 Source: International Telecommunication Union, World Telecommunication Indicators database, accessed July 2003 7. Personal computers, 2002 RANK COUNTRY NUMBER OF PERSONAL COMPUTERS, 2002 RANK COUNTRY NUMBER OF PERSONAL COMPUTERS, 2002 1 United States 178,000,000 a 52 Croatia 760,000 2 Japan 48,700,000 53 Costa Rica 700,000 a 3 Germany 35,920,940 54 Pakistan 600,000 a 4 Korea 26,458,000 54 Slovenia 600,000 5 China 25,000,000 a 54 Zimbabwe 600,000 6 United Kingdom 22,000,000 a 57 Bangladesh 450,000 7 France 20,700,000 58 Bulgaria 405,000 8 Canada 15,300,000 59 Ecuador 402,652 9 Italy 13,025,000 60 Latvia 400,000 10 Brazil 13,000,000 60 Morocco 400,000 a 10 Russian Federation 13,000,000 62 Lithuania 380,000 12 Australia 10,000,000 a 63 Uruguay 370,000 a 13 Taiwan 8,887,100 64 Tunisia 300,000 14 Mexico 6,900,000 a 65 Serbia 290,000 14 Netherlands 6,900,000 a 66 Estonia 285,000 16 Spain 6,800,000 a 67 Sri Lanka 250,000 17 India 6,000,000 a 68 Luxembourg 230,000 a 18 Sweden 5,000,000 a 69 Algeria 220,000 a 19 Switzerland 3,900,000 a 70 Jordan 200,000 20 Malaysia 3,600,000 70 Paraguay 200,000 21 Poland 3,300,000 a 70 Senegal 200,000 21 South Africa 3,300,000 73 Bolivia 190,000 23 Denmark 3,100,000 74 Kenya 175,000 a 24 Austria 3,013,000 75 Guatemala 150,000 a 292 25 Argentina 3,000,000 75 Nicaragua 150,000 26 Turkey 2,700,000 a 77 El Salvador 140,000 a 27 Hong Kong SAR 2,600,000 a 78 Iceland 130,000 28 Belgium 2,500,000 78 Jamaica 130,000 a 29 Thailand 2,461,000 78 Mauritius 130,000 a Presentations 30 Finland 2,300,000 81 Tanzania 120,000 a 30 Indonesia 2,300,000 a 82 Panama 110,000 a Data 30 Norway 2,300,000 a 83 Trinidad and Tobago 103,500 3 33 Philippines 2,200,000 84 Ethiopia 100,000 artP 34 Colombia 2,133,000 84 Namibia 100,000 a 35 Singapore 2,100,000 a 86 Malta 90,000 a 36 Chile 1,795,814 87 Honduras 80,000 a 37 Israel 1,600,000 a 87 Zambia 80,000 38 Czech Republic 1,500,000 a 89 Ghana 70,000 a 38 Ireland 1,500,000 a 89 Mozambique 70,000 a 38 New Zealand 1,500,000 a 89 Uganda 70,000 a 41 Venezuela 1,300,000 a 92 Botswana 65,000 a 42 Peru 1,250,000 a 93 Cameroon 60,000 a 43 Portugal 1,210,000 a 94 Madagascar 40,000 a 44 Egypt 1,120,000 95 Angola 27,000 45 Hungary 1,100,000 96 Gambia 17,000 a 46 Slovak Republic 970,000 97 Mali 14,000 a 47 Ukraine 920,000 a 98 Malawi 13,000 a 48 Greece 860,000 a 99 Chad 12,000 a 49 Nigeria 800,000 a 49 Romania 800,000 a 49 Vietnam 800,000 Note: a=2001 data Source: International Telecommunication Union, World Telecommunication Indicators database, accessed July 2003 8. Internet users, 2001 NUMBER OF INTERNET USERS NUMBER OF INTERNET USERS RANK COUNTRY (ESTIMATED), 2001 RANK COUNTRY (ESTIMATED), 2001 1 United States 155,000,000 52 Croatia 789,000 2 China 59,100,000 53 Bulgaria 700,000 3 Japan 57,200,000 54 Serbia 640,000 4 Germany 35,000,000 55 Ukraine 600,000 a 5 Korea 26,270,000 56 Estonia 560,000 6 United Kingdom 24,000,000 57 Tunisia 505,500 7 France 18,716,000 58 Ecuador 503,315 8 Italy 17,000,000 59 Algeria 500,000 9 India 16,580,000 59 Kenya 500,000 a 10 Canada 15,200,000 59 Lithuania 500,000 11 Brazil 14,300,000 59 Morocco 500,000 12 Netherlands 8,590,000 59 Zimbabwe 500,000 12 Taiwan 8,590,000 64 Guatemala 400,000 14 Australia 8,400,000 64 Uruguay 400,000 a 15 Indonesia 8,000,000 66 Costa Rica 384,000 a 16 Spain 7,856,000 67 Latvia 310,000 17 Malaysia 7,500,000 68 Jordan 307,000 18 Russian Federation 6,000,000 69 El Salvador 300,000 19 Sweden 5,125,000 70 Bolivia 270,000 20 Turkey 4,900,000 71 Bangladesh 204,000 21 Thailand 4,800,000 72 Honduras 200,000 22 Mexico 4,663,364 72 Nigeria 200,000 23 Argentina 4,100,000 72 Sri Lanka 200,000 24 Poland 3,800,000 a 75 Dominican Republic 186,000 a 25 Portugal 3,700,000 76 Mauritius 180,000 293 26 Chile 3,575,000 77 Iceland 175,000 27 Philippines 3,500,000 78 Luxembourg 165,000 28 Belgium 3,400,000 79 Trinidad and Tobago 138,000 29 Austria 3,340,000 80 Panama 120,000 a 30 South Africa 3,100,000 81 Senegal 105,000 Presentations 31 Hong Kong SAR 2,918,800 82 Jamaica 100,000 a Data 32 Finland 2,650,000 82 Paraguay 100,000 3 33 Czech Republic 2,500,000 82 Tanzania 100,000 a 33 Denmark 2,500,000 85 Malta 99,000 a artP 35 Switzerland 2,375,000 86 Nicaragua 90,000 36 Norway 2,300,000 87 Haiti 80,000 37 Singapore 2,247,000 88 Macedonia, FYR 70,000 a 38 Israel 2,000,000 89 Uganda 60,000 a 38 Peru 2,000,000 a 90 Madagascar 55,000 40 Colombia 1,982,000 91 Zambia 52,420 41 New Zealand 1,908,000 92 Botswana 50,000 a 42 Romania 1,800,000 92 Ethiopia 50,000 43 Greece 1,704,936 94 Cameroon 45,000 a 44 Hungary 1,600,000 94 Namibia 45,000 a 45 Egypt 1,500,000 96 Angola 41,000 45 Pakistan 1,500,000 97 Ghana 40,520 a 45 Vietnam 1,500,000 98 Mali 32,000 48 Venezuela 1,274,429 99 Mozambique 30,000 a 49 Ireland 1,065,000 100 Malawi 27,000 50 Slovak Republic 862,833 101 Gambia 18,000 a 51 Slovenia 800,000 102 Chad 15,000 Note: a=2001 data Source: International Telecommunication Union, World Telecommunication Indicators database, accessed July 2003 9. Television, 2002 NUMBER OF TELEVISION NUMBER OF TELEVISION RANK COUNTRY RECEIVERS, 2002 RANK COUNTRY RECEIVERS, 2002 1 China 410,000,000 a 52 Ecuador 3,064,633 2 United States 267,000,000 a 53 Serbia 3,000,000 b 3 Japan 100,000,000 54 Slovak Republic 2,200,000 a 4 India 85,000,000 a 54 Sri Lanka 2,200,000 a 5 Russian Federation 79,000,000 b 56 Israel 2,150,000 a 6 Brazil 60,000,000 a 57 New Zealand 2,130,000 a 7 United Kingdom 57,100,000 a 58 Tunisia 2,000,000 a 8 Germany 48,300,000 a 59 Latvia 1,980,000 9 France 37,500,000 a 60 Uruguay 1,770,000 b 10 Indonesia 32,000,000 a 61 Guatemala 1,700,000 a 11 Turkey 28,461,090 62 Lithuania 1,685,000 12 Italy 28,300,000 b 63 Ireland 1,515,000 a 12 Mexico 28,300,000 a 64 Tanzania 1,500,000 a 14 Ukraine 23,000,000 b 65 El Salvador 1,490,000 a 15 Spain 22,800,000 a 66 Croatia 1,310,000 b 16 Canada 21,486,000 a 67 Singapore 1,260,000 17 Pakistan 21,390,000 a 68 Paraguay 1,200,000 b 18 Thailand 18,400,000 a 69 Cameroon 1,150,000 a 19 Korea 17,000,000 a 70 Ghana 1,100,000 a 20 Poland 16,298,000 a 71 Bolivia 990,000 b 21 Egypt 15,400,000 72 Jamaica 971,000 a 22 Vietnam 15,109,000 a 73 Jordan 944,000 23 Philippines 14,500,000 74 Costa Rica 930,000 b 24 Australia 14,168,000 a 75 Kenya 812,928 a 294 25 Colombia 13,111,980 76 Honduras 800,000 26 Nigeria 12,000,000 a 77 Senegal 760,000 a 27 Argentina 11,800,000 a 78 Slovenia 730,000 28 Netherlands 10,500,000 79 Angola 710,000 a 29 Taiwan 9,960,000 80 Estonia 680,000 Presentations 30 Sweden 8,600,000 a 81 Nicaragua 640,000 a 31 Romania 8,500,000 b 81 Zimbabwe 640,000 a Data 32 South Africa 8,053,000 83 Panama 574,466 3 33 Chile 7,868,711 84 Macedonia, FYR 570,000 b artP 34 Bangladesh 7,850,200 85 Zambia 540,000 a 35 Belgium 5,600,000 a 86 Namibia 504,480 36 Czech Republic 5,500,000 a 87 Trinidad and Tobago 449,000 a 36 Greece 5,500,000 a 88 Madagascar 390,000 a 38 Austria 5,200,000 89 Ethiopia 370,000 a 39 Morocco 4,861,667 a 90 Mauritius 359,000 a 40 Malaysia 4,773,000 a 91 Mali 350,000 41 Denmark 4,600,000 a 92 Luxembourg 295,000 a 41 Venezuela 4,600,000 a 93 Uganda 275,000 a 43 Hungary 4,451,000 b 94 Mozambique 250,000 44 Portugal 4,273,000 a 95 Malta 221,945 a 45 Norway 4,000,000 a 96 Iceland 143,000 b 45 Switzerland 4,000,000 a 97 Botswana 74,000 a 47 Peru 3,900,000 a 98 Haiti 50,000 a 48 Bulgaria 3,691,600 b 99 Malawi 40,000 a 49 Finland 3,520,000 a 100 Gambia 20,000 a 50 Algeria 3,500,000 a 101 Chad 15,000 51 Hong Kong SAR 3,390,000 a Note: a=2001 data, b=2000 data Source: International Telecommunication Union, World Telecommunication Indicators database, accessed July 2003 10. Cable television, 2002 NUMBER OF CABLE TELEVISION NUMBER OF CABLE TELEVISION RANK COUNTRY SUBSCRIBERS, 2002 RANK COUNTRY SUBSCRIBERS, 2002 1 China 96,380,000 52 Estonia 145,000 2 United States 73,147,600 a 53 Luxembourg 138,000 a 3 India 40,000,000 a 54 Paraguay 120,000 a 4 Japan 23,332,220 55 Malta 90,091 a 5 Germany 21,800,000 a 56 Bolivia 80,000 b 6 Russian Federation 11,274,570 b 56 Italy 80,000 a 7 Korea 8,392,000 b 58 Indonesia 70,000 a 8 Canada 7,868,000 a 59 Nigeria 59,000 a 9 Netherlands 6,500,000 60 Nicaragua 55,000 b 10 Argentina 5,900,000 a 61 Honduras 50,000 b 11 Taiwan 4,642,000 62 Haiti 40,000 a 12 United Kingdom 3,850,000 a 63 Namibia 30,000 13 Belgium 3,814,949 a 64 New Zealand 27,300 a 14 Bangladesh 3,600,000 65 Pakistan 25,000 b 15 Poland 3,529,448 66 Zimbabwe 24,001 b 16 France 3,239,411 a 67 Kenya 15,000 a 17 Philippines 2,940,000 68 Zambia 13,000 a 18 Romania 2,700,000 a 69 Angola 12,085 b 19 Switzerland 2,671,330 a 70 Tanzania 8,000 a 20 Ukraine 2,640,000 b 71 Sri Lanka 6,500 a 21 Mexico 2,487,000 a 72 Ghana 6,000 a 22 Brazil 2,368,000 a 72 Uganda 6,000 a 23 Sweden 2,200,000 74 Jordan 1,400 b 24 Hungary 1,592,866 a 75 Iceland 1,300 b 25 Australia 1,400,000 a 76 Senegal 500 a 295 26 Israel 1,221,000 77 Ethiopia 0 b 27 Portugal 1,119,342 a 77 Greece 0 a 28 Bulgaria 1,100,000 a 77 Malawi 0 a 29 Denmark 1,078,483 a 77 Malaysia 0 a 30 Austria 1,076,750 77 Egypt 0 Presentations 31 Finland 1,000,000 a 77 South Africa 0 Data 32 Venezuela 977,375 a 3 33 Czech Republic 965,000 a 34 Turkey 954,612 artP 35 Chile 864,024 36 Norway 838,707 a 37 Thailand 800,000 38 Slovak Republic 684,492 39 Ireland 615,000 a 40 Spain 587,829 a 41 Colombia 577,112 b 42 Hong Kong SAR 563,512 a 43 Ecuador 437,638 44 Peru 429,778 b 45 Uruguay 420,000 b 46 Slovenia 320,000 47 El Salvador 312,000 b 48 Latvia 308,000 49 Singapore 302,000 a 50 Lithuania 260,000 51 Croatia 170,000 b Note: a=2001 data, b=2000 data Source: International Telecommunication Union, World Telecommunication Indicators database, accessed July 2003 11. Public pay telephones, 2002 NUMBER OF PUBLIC NUMBER OF PUBLIC RANK COUNTRY PAY PHONES, 2002 RANK COUNTRY PAY PHONES, 2002 1 China 3,462,000 a 52 Bolivia 12,465 a 2 United States 1,384,935 a 53 Sri Lanka 12,281 a 3 Brazil 1,378,000 a 54 Dominican Republic 12,161 b 4 India 1,092,000 a 55 Panama 11,439 a 5 Japan 714,772 b 56 Norway 10,640 b 6 Mexico 708,000 a 57 Hong Kong SAR 9,683 a 7 Korea 499,566 a 58 Kenya 9,604 8 Indonesia 402,869 59 Ireland 9,575 a 9 Italy 300,000 a 60 Finland 8,851 a 10 France 213,965 a 61 Paraguay 8,049 a 11 Thailand 207,606 a 62 Jordan 7,851 a 12 Argentina 204,329 a 63 Lithuania 7,223 a 13 South Africa 195,399 a 64 Cameroon 6,555 c 14 Russian Federation 192,800 b 65 Vietnam 6,500 a 15 Canada 169,626 a 66 Denmark 5,930 a 16 Malaysia 163,528 a 67 Namibia 5,300 b 17 United Kingdom 145,000 a 68 Algeria 5,000 a 18 Taiwan 138,629 a 69 Nigeria 4,866 a 19 Germany 112,000 a 70 Serbia 4,673 a 20 Poland 96,061 a 71 Slovenia 4,410 a 21 Peru 94,596 a 72 Ghana 4,295 a 22 Venezuela 90,211 73 Jamaica 3,979 b 23 Pakistan 83,000 74 Ecuador 3,976 a 24 Australia 80,000 75 Latvia 3,845 a 296 25 Turkey 71,149 a 76 Uganda 3,700 a 26 Greece 69,296 a 77 Zimbabwe 3,234 b 27 Ukraine 64,400 b 78 Nicaragua 3,208 a 28 Spain 63,866 a 79 Mozambique 3,105 a 29 Colombia 61,309 a 80 Mauritius 2,981 a Presentations 30 Chile 57,465 a 81 Botswana 2,964 a 31 Morocco 46,843 b 82 Trinidad and Tobago 2,595 a Data 32 Romania 46,838 a 83 Ethiopia 2,554 a 3 33 Egypt 45,786 84 Estonia 2,531 a artP 34 Portugal 45,467 a 85 Honduras 2,509 a 35 Hungary 44,490 a 86 Mali 2,365 b 36 Switzerland 40,215 a 87 Bangladesh 2,128 b 37 Guatemala 37,487 a 88 Angola 2,110 a 38 Czech Republic 34,458 a 89 Macedonia, FYR 2,034 b 39 Tunisia 31,613 a 90 Malta 1,874 a 40 Austria 25,300 a 91 Tanzania 1,592 a 41 Israel 22,000 c 92 Zambia 875 a 41 Singapore 22,000 c 93 Madagascar 767 a 43 Bulgaria 21,512 a 94 Iceland 600 a 44 El Salvador 18,670 a 95 Gambia 595 a 45 Costa Rica 17,659 a 96 Malawi 571 a 46 Netherlands 17,300 a 97 Luxembourg 441 a 47 Belgium 16,736 a 98 Chad 64 a 48 Senegal 15,727 a 49 Philippines 15,200 a 50 Slovak Republic 15,060 a 51 Uruguay 12,578 a Note: a=2001 data, b=2000 data, c=1999 data Source: International Telecommunication Union, World Telecommunication Indicators database, accessed July 2003 12. Household Internet penetration, 2001 13. Business Internet penetration, 2001 INTERNET ACCOUNTS AS % INTERNET ACCOUNTS AS % OF TOTAL RANK COUNTRY OF TOTAL HOUSEHOLDS, 2001 RANK COUNTRY NUMBER OF BUSINESSES, 2001 1 Singapore 140.74 1 Singapore 905.4 2 Hong Kong SAR 84.08 2 Israel 381.8 3 Korea 79.15 3 Austria 227.0 4 Taiwan 74.54 4 Netherlands 218.3 5 Switzerland 53.63 5 Hong Kong SAR 164.2 6 Israel 52.49 6 Taiwan 150.9 7 Netherlands 52.41 7 United Kingdom 137.6 8 United States 49.90 8 Switzerland 137.1 9 Austria 43.14 9 Korea 118.2 10 United Kingdom 39.52 10 Uruguay 105.4 11 Malaysia 37.79 11 Germany 97.4 12 Japan 37.25 12 France 96.5 13 Spain 34.65 13 Italy 87.2 14 Italy 31.43 14 Thailand 86.6 15 Belgium 30.79 15 Spain 85.8 16 Germany 27.49 16 Malaysia 80.6 17 France 26.93 17 United States 69.9 18 Portugal 26.36 18 Portugal 65.8 19 Chile 17.06 19 China 65.4 20 Poland 11.26 20 Nigeria 47.6 21 Czech Republic 11.07 21 Panama 41.7 22 Uruguay 10.63 22 Morocco 39.3 23 Turkey 9.61 23 Belgium 37.4 24 Slovak Republic 8.62 24 Argentina 35.5 25 Thailand 7.99 25 South Africa 35.0 26 Hungary 7.85 26 Slovak Republic 34.2 27 Mexico 7.68 27 Chile 29.9 297 28 South Africa 7.10 28 Guatemala 28.7 29 Argentina 6.67 29 Brazil 25.5 30 Brazil 6.66 30 Costa Rica 25.5 31 Venezuela 6.01 31 Romania 22.8 32 Colombia 6.00 32 Philippines 21.9 Presentations 33 Panama 5.20 33 Paraguay 19.5 Data 34 Peru 3.89 34 Russian Federation 19.0 3 35 Costa Rica 3.81 35 Bolivia 15.5 36 Guatemala 3.80 36 Poland 14.6 artP 37 China 3.75 37 Colombia 13.4 38 Honduras 2.60 38 Bulgaria 12.4 39 Philippines 2.53 39 Japan 11.6 40 Ecuador 2.40 40 India 11.1 41 Romania 2.20 41 Turkey 11.1 42 Bulgaria 2.15 42 Mexico 9.9 43 Bolivia 1.74 43 Czech Republic 9.7 44 India 1.38 44 El Salvador 8.9 45 Paraguay 1.23 45 Honduras 7.6 46 Egypt 1.18 46 Vietnam 7.1 47 Nicaragua 1.11 47 Ecuador 6.1 48 Ukraine 1.06 48 Nicaragua 5.1 49 Indonesia 1.00 49 Ukraine 4.5 50 Russian Federation 0.94 50 Peru 4.3 51 Vietnam 0.81 51 Venezuela 4.1 52 El Salvador 0.65 52 Hungary 3.5 53 Morocco 0.53 53 Indonesia 1.7 54 Nigeria 0.03 54 Egypt 1.6 Source: Pyramid, 2003 Source: Pyramid, 2003 14. Broadband subscriber lines, 2001 15. Broadband penetration, 2001 NUMBER OF BROADBAND BROADBAND SUBSCRIBERS AS % RANK COUNTRY SUBSCRIBERS, 2001 RANK COUNTRY OF TOTAL POPULATION, 2001 1 United States 12,298,613 1 Korea 17.19 2 Korea 8,197,290 2 Hong Kong SAR 9.42 3 United Kingdom 5,221,400 3 United Kingdom 8.71 4 China 2,711,107 4 Belgium 6.45 5 Japan 2,702,987 5 Netherlands 5.94 6 Germany 1,920,050 6 Austria 5.20 7 Taiwan 1,139,248 7 Taiwan 5.09 8 Netherlands 948,630 8 United States 4.32 9 France 776,217 9 Singapore 4.05 10 Belgium 661,398 10 Germany 2.34 11 Hong Kong SAR 633,765 11 Japan 2.13 12 Spain 481,977 12 Switzerland 1.70 13 Italy 442,418 13 France 1.30 14 Austria 425,145 14 Spain 1.20 15 Brazil 335,831 15 Portugal 0.97 16 Singapore 166,121 16 Italy 0.77 17 Mexico 127,926 17 Israel 0.75 18 Switzerland 123,750 18 Chile 0.42 19 Portugal 97,452 19 Czech Republic 0.35 20 Argentina 96,509 20 Hungary 0.31 21 Chile 64,455 21 Argentina 0.26 22 Malaysia 60,452 22 Malaysia 0.25 23 India 55,353 23 Slovak Republic 0.22 24 Israel 47,629 24 China 0.21 25 Czech Republic 35,450 25 Brazil 0.19 26 Poland 34,000 26 Panama 0.18 298 27 Hungary 30,884 27 Mexico 0.13 28 Venezuela 30,459 28 Venezuela 0.12 29 Russian Federation 23,376 29 Bulgaria 0.12 30 Colombia 23,245 30 Uruguay 0.12 31 Turkey 17,902 31 Poland 0.09 Presentations 32 Ukraine 15,032 32 El Salvador 0.08 33 Indonesia 12,804 33 Colombia 0.05 Data 34 Philippines 12,716 34 Costa Rica 0.05 3 35 Slovak Republic 11,777 35 Guatemala 0.05 artP 36 South Africa 10,550 36 Bolivia 0.05 37 Peru 0.04 37 Thailand 10,332 38 Paraguay 0.03 38 Peru 9,661 39 Ukraine 0.03 39 Bulgaria 9,582 40 Nicaragua 0.03 40 Nigeria 7,028 41 Turkey 0.03 41 Guatemala 5,772 42 South Africa 0.02 42 Panama 5,100 43 Thailand 0.02 43 El Salvador 5,031 44 Russian Federation 0.02 44 Uruguay 4,000 45 Philippines 0.02 45 Bolivia 3,951 46 Ecuador 0.01 46 Romania 2,200 47 Romania 0.01 47 Costa Rica 1,950 48 Indonesia 0.01 48 Paraguay 1,800 49 Nigeria 0.01 49 Nicaragua 1,600 50 India 0.01 50 Ecuador 1,269 51 Vietnam 393 52 Morocco 266 53 Egypt 189 Source: Pyramid, 2003 Source: Pyramid, 2003 16. B2C e-commerce, 2002 17. B2B e-commerce, 2002 RANK COUNTRY VALUE IN US DOLLARS, 2002 RANK COUNTRY VALUE IN US DOLLARS, 2002 1 United States 79,856,747,389 1 United States 305,034,013,703 2 Japan 12,773,329,698 2 Japan 121,926,898,348 3 United Kingdom 8,696,991,265 3 Germany 69,912,466,926 4 Germany 8,458,448,757 4 United Kingdom 43,536,006,463 5 Canada 6,936,429,552 5 France 30,482,073,010 6 Korea 6,597,874,674 6 Canada 29,184,780,122 7 Australia 4,390,914,799 7 Italy 25,782,401,963 8 France 4,076,098,578 8 Korea 14,840,146,368 9 Italy 3,084,490,569 9 Taiwan 12,035,665,167 10 China 2,693,375,225 10 Australia 11,859,950,670 11 Taiwan 1,726,237,028 11 Spain 10,999,047,414 12 Spain 1,645,216,624 12 Netherlands 10,603,173,493 13 Netherlands 1,560,213,683 13 China 9,657,030,855 14 Sweden 1,416,580,215 14 Sweden 9,060,663,515 15 Switzerland 1,125,506,078 15 Switzerland 8,786,150,296 16 Hong Kong SAR 855,115,917 16 Denmark 6,479,890,365 17 Norway 822,906,787 17 Belgium 5,839,729,758 18 Austria 805,550,289 18 Austria 5,522,590,911 19 Brazil 752,639,814 19 Brazil 5,424,351,687 20 Singapore 733,665,345 20 Norway 5,343,710,083 21 Denmark 699,398,211 21 Mexico 5,321,678,830 22 Finland 680,121,522 22 Singapore 3,844,242,866 23 South Africa 626,600,000 23 Finland 3,724,608,336 24 Belgium 540,503,390 24 Hong Kong SAR 2,531,445,039 25 New Zealand 422,046,377 25 South Africa 2,506,400,000 299 26 Malaysia 417,031,955 26 India 2,092,621,166 27 Ireland 327,465,234 27 Greece 1,854,600,742 28 Philippines 285,386,222 28 Poland 1,788,379,341 29 Portugal 254,952,880 29 Ireland 1,763,625,958 30 Greece 250,832,758 30 New Zealand 1,726,047,125 Presentations 31 Indonesia 233,322,891 31 Portugal 1,669,069,274 Data 32 Thailand 200,201,727 32 Chile 1,595,999,623 3 33 Argentina 189,594,191 33 Venezuela 1,190,839,594 34 Mexico 179,252,419 34 Russian Federation 1,001,864,931 artP 35 Poland 135,945,676 35 Malaysia 982,122,190 36 Israel 118,000,000 36 Colombia 894,392,145 37 Czech Republic 80,849,900 37 Indonesia 767,891,570 38 Chile 52,632,099 38 Czech Republic 745,504,789 39 India 48,572,065 39 Argentina 715,108,305 40 Russian Federation 40,491,030 40 Thailand 700,075,733 41 Hungary 40,236,576 41 Philippines 614,015,544 42 Venezuela 37,993,873 42 Israel 603,200,000 43 Turkey 35,000,000 43 Hungary 528,628,347 44 Colombia 25,223,282 44 Turkey 85,000,000 45 Slovenia 16,169,912 45 Romania 36,791,779 46 Bulgaria 16,010,515 46 Egypt 34,696,000 47 Romania 11,730,419 47 Croatia 23,087,309 48 Egypt 8,674,000 48 Slovak Republic 21,601,191 49 Slovak Republic 4,211,257 49 Vietnam 10,033,218 50 Vietnam 3,720,186 50 Slovenia 8,950,765 51 Croatia 1,887,675 51 Bulgaria 2,517,782 Source: IDC and the World Bank, 2003 Source: IDC and the World Bank, 2003 18. ICT spending, 2001 19. PC units in business/government, 2001 INSTALLED BASE OF PC UNITS IN THE RANK COUNTRY VALUE IN US DOLLARS, 2001 RANK COUNTRY BUSINESS & GOVERNMENT MARKETS, 2001 1 United States 546,680,536,828 1 United States 129,868,818 2 Japan 188,011,945,077 2 Japan 22,791,000 3 Germany 98,260,222,945 3 China 17,295,521 4 United Kingdom 91,355,793,169 4 Germany 12,762,242 5 France 81,221,001,801 5 Canada 9,091,436 6 Canada 39,629,720,308 6 United Kingdom 8,906,587 7 Italy 32,450,297,469 7 Brazil 7,947,801 8 Netherlands 23,987,974,805 8 France 7,683,140 9 China 22,591,207,608 9 Australia 7,586,512 10 Australia 19,288,806,323 10 Korea 5,366,079 11 Brazil 18,328,205,806 11 Mexico 5,118,089 12 Sweden 17,487,485,935 12 Russian Federation 4,387,181 13 Switzerland 17,025,204,573 13 India 3,874,232 14 Korea 16,173,613,981 14 Italy 3,574,889 15 Spain 15,180,153,055 15 South Africa 3,395,295 16 Belgium 11,956,000,408 16 Spain 2,748,709 17 Denmark 10,258,428,196 17 Taiwan 2,427,501 18 Austria 8,891,974,702 18 Poland 2,352,578 19 Mexico 8,404,813,899 19 Netherlands 2,284,885 20 Norway 7,626,404,143 20 Malaysia 2,196,175 21 India 7,130,865,891 21 Argentina 1,958,817 22 South Africa 6,975,398,787 22 Sweden 1,943,956 23 Taiwan 6,633,776,395 23 Indonesia 1,906,775 24 Finland 6,630,368,648 24 Switzerland 1,757,033 300 25 Russian Federation 5,256,654,462 25 Thailand 1,610,326 26 Singapore 4,898,681,945 26 Hong Kong SAR 1,446,841 27 Hong Kong SAR 4,234,935,557 27 Norway 1,284,970 28 Israel 4,191,513,674 28 Singapore 1,274,419 29 Poland 4,031,168,573 29 Denmark 1,178,162 Presentations 30 Argentina 4,012,026,326 30 Turkey 1,153,483 Data 31 New Zealand 3,380,548,405 31 Belgium 1,126,853 3 32 Ireland 3,365,305,486 32 Philippines 1,119,634 artP 33 Portugal 3,269,653,564 33 Israel 1,118,077 34 Malaysia 2,809,403,841 34 Austria 1,045,132 35 Czech Republic 2,722,340,910 35 Czech Republic 926,787 36 Greece 2,381,169,789 36 New Zealand 901,419 37 Colombia 2,188,861,581 37 Chile 890,099 38 Venezuela 2,071,936,370 38 Finland 887,838 39 Hungary 1,957,806,502 39 Venezuela 822,201 40 Turkey 1,955,093,729 40 Colombia 787,960 41 Thailand 1,941,127,682 41 Portugal 780,419 42 Chile 1,704,155,336 42 Hungary 714,312 43 Philippines 1,467,778,807 43 Vietnam 664,517 44 Indonesia 1,228,494,005 44 Greece 586,178 45 Egypt 1,045,994,855 45 Ireland 568,905 46 Slovak Republic 683,955,356 46 Egypt 454,441 47 Slovenia 490,030,601 47 Romania 342,149 48 Romania 416,292,685 48 Slovenia 268,499 49 Vietnam 414,778,471 49 Slovak Republic 258,134 50 Bulgaria 269,064,533 50 Bulgaria 205,527 Source: IDC and the World Bank, 2003 Source: IDC and the World Bank, 2003 List of Authors Scott Beardsley Dr Dutta's research and consulting have focused on the Scott Beardsley is a director in McKinsey & Company's interrelationships between innovation, technology strategy, Brussels office. He is a global leader of McKinsey's and organizational design. His most recent book is entitled, telecommunications practice, has led the European wireline The Global Information Technology Report: Readiness for practice for five years, and is currently leading a special the Networked World (Oxford University Press, January initiative on broadband. Prior to joining McKinsey, Mr 2003). Previous works include, The Bright Stuff: How Beardsley was an editor and marketing manager at the Sloan Innovative People and Technology Can Make the Old Economy Management Review; he has also worked in strategic sales and New (Financial Times/Prentice Hall 2002), Embracing product marketing for the semiconductor industry's Advanced the Net: Get.Competitive (Financial Times/Prentice Hall Micro Devices and Analog Devices. Mr Beardsley was recently 2001), and Process Reengineering, Organizational Change honored as a Fellow at the Institut d'Administration et de and Performance Improvement (Mc-Graw Hill 1999). In Gestion at the Université Catholique de Louvain in Belgium addition, he has published more than 50 articles in leading for outstanding contributions to management, and is a guest international journals. lecturer at the Business School. He was a Henry S. Dupont III Scholar (highest honors) at the Massachusetts Institute of A Fellow of the World Economic Forum, Dr Dutta has won Technology (MIT) Sloan School of Management where he several awards for research and pedagogy. His research has graduated with an MBA in corporate strategy and marketing, been showcased in prominent international media and he has and he holds a BSc in electrical engineering, magna cum laude, also been the project leader in a number of high-impact global from Tufts University where he was a Kodak Scholar, elected a research projects. He has taught in and consulted with leading member of Tau Beta Pi, and was president of Eta Kappa Nu. international corporations across the world. His personal URL e-mail: scott_beardsley@mckinsey.com is: http://www.insead.edu/facultyresearch/tm/dutta/. e-mail: Soumitra.Dutta@insead.edu 301 Ingo Beyer von Morgenstern Dr Ingo Beyer von Morgenstern holds a PhD in process Luis Enriquez Authors engineering from the Technical University in Munich and an Luis Enriquez is an associate principal in McKinsey & of MBA from INSEAD, Fontainebleau. After working in North Company's London office. He has extensive experience List America, he later joined McKinsey Munich in 1985. He leads serving cable, mobile, and fixed operators in the McKinsey's European High Tech Practice and co-leads its telecommunications industry in the United States, Europe, Global High Tech Practice; in these positions he serves clients and Latin America. He is one of the practice's global in computer and data communications, industrial electronics, regulatory experts, and has led McKinsey's regulatory and aerospace and defense on strategic, operational, and knowledge initiative. Prior to McKinsey, Mr Enriquez worked organizational projects. The main focus of his work is value extensively in regulation both in the United States and Latin creation, profit improvement, governance, and growth. He America, and assisted Eastern European governments with lectures regularly at the physics department of the Technical liberalization and European Union accession issues. Mr University in Munich. Enriquez holds a BA in economics magna cum laude from e-mail: Ingo_Beyer_von_Morgenstern@mckinsey.com Harvard University and has done doctoral work in economics at the University of California at Berkeley. e-mail: Luis_Enriques@mckinsey.com Soumitra Dutta Dr Soumitra Dutta is the Roland Berger Professor of Business and Technology and Dean for Executive Education at José María Figueres-Olsen INSEAD. He is also the faculty director of eLab, INSEAD's José María Figueres-Olsen is the Co-Chief Executive Officer initiative in building a center of excellence in teaching and of the World Economic Forum. Under his leadership, the research in the digital economy (http://elab.insead.edu/). World Economic Forum has greatly expanded its offerings for Prior to joining the faculty of INSEAD, he was employed with its members and communities, actively engaging actors from Schlumberger in Japan and General Electric in the United business, politics, academia, and civil society in examining, States. Professor Dutta obtained his PhD in computer science understanding, and addressing many of the key issues that and his MS in business administration from the University of affect the world. California at Berkeley. During his political career he served in positions of Bruno Lanvin leadership, including that of president of Costa Rica from At the World Bank, Bruno Lanvin is the manager of the 1994 until 1998. During his presidency, he ushered the Information for Development Programme (infoDev), incorporation of the principles of sustainable development a multidonor program focusing on extending digital into Costa Rica's development platform, while stressing opportunities for all (see http://www.infodev.org). So the importance of maintaining and enhancing sound far, infoDev has financed more than 170 projects in some macroeconomic and human development policies. In the 85 countries around the world. In 2000, Mr Lanvin was international arena, he was the proponent of the Central appointed Executive Secretary of DOT Force, the G-8 initiative American Alliance for Sustainable Development, signed launched by the Okinawa Summit of July 2000 to bridge the by regional heads of state in late 1994. Prior to becoming digital divide (see http://www.dotforce.org). The World Bank president, he served as director of the Costa Rican Railways, recruited him in September 2000 to be senior advisor for as well as Minister of Trade and Minister of Agriculture for e-commerce and e-government. Prior to these appointments, Costa Rica. Former President Figueres has a keen interest he was Head of Electronic Commerce in the United Nations in issues pertaining to the environment and access to Conference on Trade and Development (UNCTAD) in information technology in the developing world. Outside of Geneva. Mr Lanvin has spent 20 years in the United Nations his official duties at the World Economic Forum, he currently system and has occupied various senior positions, including holds leadership roles in major international organizations management from 1999­2000 of UNCTAD's component and initiatives. Among his multiple appointments, he serves of the United Nations "Development Account," which was as the personal representative of the United Nations Secretary devoted to e-commerce and development. In this position he General on issues pertaining to technology and the digital organized a series of regional and interregional workshops on divide, as well as senior advisor of the Global Environment e-commerce, allowing more than 2,000 representatives from 302 Facility of The World Bank. Additionally, he chairs the United governments and enterprises to exchange experiences and Nations Information and Communication Technologies best practices in the area of e-commerce. A frequent keynote Task Force and is a board member of the Digital Nations speaker and participant in international conferences on the Authors of Consortium, a project launched by the Media Lab at MIT. "new economy," he has published a large number of articles and books on ICT and development. He was the main drafter, List A recipient of numerous major awards and distinctions, he team leader, and editor of Building Confidence: Electronic is a graduate of the United States Military Academy at West Commerce and Development, published in January 2000 (http: Point and the John F. Kennedy School of Government at // www.unctad.org/ecommerce). Bruno Lanvin has worked Harvard University, where he was a Mason Fellow. in more than 60 countries. He holds a BA in mathematics e-mail: Jose-Maria_Figueres@weforum.org. and physics from the University of Valenciennes (France), an MBA from Ecole des Hautes Etudes Commerciales (HEC) in Amit Jain Paris, and a PhD in economics from the Université of Paris I Amit Jain is the research program manager for the Global (La Sorbonne) in France. His mother tongue is French, and he Information Technology Project with the World Economic speaks and writes English and Spanish; he also has a working Forum at INSEAD. He has worked at INSEAD on various knowledge of Italian, Portuguese, and Russian. research projects in information and communication e-mail: blanvin@worldbank.org. technology and knowledge management, and has been the technical director of INSEAD Online, INSEAD's Fiona Paua e-learning effort. Prior to joining INSEAD, he worked Fiona Paua is an economist with the Global Competitiveness with Schlumberger in the Middle East and pursued several Programme at the World Economic Forum and the co- entrepreneurial opportunities in information technology. editor of the Global Information Technology Report series. Mr Jain obtained his MBA from INSEAD, and a bachelor of Previously, she was Vice President and the Country Head technology degree in mechanical engineering from the Indian of Research for Citibank Philippines and a financial analyst Institute of Technology. at Goldman Sachs in the United States, Hong Kong, and e-mail: Amit.Jain@insead.edu Singapore. She has also served in various capacities at several institutions including the World Bank and the United States Agency for International Development, and worked on ICT policy-related projects at Harvard University. She is Walter Verbeke the co-founder of b2bpricenow.com, winner of the 2001 Walter Verbeke is an engagement manager in McKinsey & Development Marketplace Award of the World Bank. Ms Paua Company's Brussels office, and is affiliated to the McKinsey is a graduate of Dartmouth College and Harvard University. Telecom and Media Practice. He has extensive experience e-mail: Fiona.Paua@weforum.org. serving telecommunications, media, and cable clients. He is one of the practice's global regulatory experts and has been Petri Rouvinen involved in several knowledge initiatives. Prior to joining Petri Rouvinen is a research director at ETLA, The Research McKinsey, Mr Verbeke worked in the telecom industry, where Institute of the Finnish Economy. He holds a PhD in he served telecommunications and cable operators during the economics from Vanderbilt University as well as several other liberalization of the markets in Europe. Mr Verbeke holds a degrees. His research interests include ICT and technology in master in law and complementary studies in economics at the general, innovation, R&D, globalization, competitiveness, and University of Antwerp (Belgium). economic policy. He has recently participated in international e-mail: Walter_Verbeke@mckinsey.com. ICT-related projects at OECD and UNU/WIDER has served as a referee for several scholarly journals, such as Economics Pekka Ylä-Anttila of Innovation and New Technology and Journal of Economic Pekka Ylä-Anttila is research director at ETLA (The Research Behavior and Organization. Mr Rouvinen has also been a Institute of the Finnish Economy) and managing director of consultant for The Ministry of Trade and Industry in Finland Etlatieto Ltd (a project research and information services unit (Business Environment Policy in the New Economy), DG of ETLA). He has authored and co-authored some 25 books Enterprise (Competitiveness Report 2003: ICT and and dozens of articles in the fields of competitiveness analysis, Reorganization) and World Bank (Knowledge Economies industrial and technology policies, industrial economics, 303 in EU Accession Countries). He has published many books technological change, and internationalization of business. A and contributed to several collective volumes by well- participant in international ICT-related projects at OECD and known publishers. His academic work has been published in UNU/WIDER, Mr Ylä-Anttila is also a team leader of ETLA­ Authors Applied Economics Letters, Economics of Innovation and New BRIE (Berkeley Roundtable on the International Economy of Technology, Information Economics and Policy, and Journal at the University of California, Berkeley), a collaborative List of Applied Economics, among others. Mr Rouvinen currently research program on wireless economy. From 1984­1992, he heads a major national project on entrepreneurship. served as Executive Committee member of EARIE (European e-mail: pro@etla.fi Association for Research in Industrial Economics) and from 1996­2002 was a member of the Scientific Advisory Christine Zhen-Wei Qiang Board of Statistics Finland (Central Statistical Office). Mr Christine Zhen-Wei Qiang is an economist at the Global ICT Ylä-Anttila was also the director of the major cluster study Department at the World Bank. Her main responsibilities program, Advantage Finland: the Future of Finnish Industries include ICT policy and strategy development, design and conducted between 1992 and 1995. He was the main advisor preparation, and supervision of information infrastructure for the Ministry of Trade and Industry in preparing National projects. She has written and published a number of articles Industrial Strategy for Finland in 1992 and 1993 and a on ICT and development, with a focus on policy. She was consultant in industrial and innovation policy guidelines in the author of the ICT chapter in China and the Knowledge 2001. Mr Ylä-Anttila earned his BSc degree in 1970, MSc in Economy: Seizing the 21st Century (World Bank 2001) and economics in 1973, and LicSc in economics in 1987, all from co-authored the chapter "Liberalization, Investment and the Helsinki School of Economics. Beyond--An ICT Reform Agenda for Universal Access and e-mail: Pekka.Yla-Anttila@etla.fi the Networked Economy" in Issues in Telecommunications Development III (ITU, forthcoming) and Investment and Growth of the Information Infrastructure: Summary Results of a Global Survey (Telecom Policy 2000). Ms Qiang holds a PhD in economics and an MSE in computer science and engineering from the Johns Hopkins University. e-mail: cqiang@worldbank.org List of Partner Institutes Algeria Brazil Croatia Centre de Recherche en Economie Fundação Dom Cabral National Competitiveness Council Appliquée pour le Développement Professor Carlos Arruda, Associate Mira Lenardic, Secretary General (CREAD) Dean for Development Ivana Cesljas, Advisor Professor Yassine Ferfera Fabiana Santos Czech Republic Angola Bulgaria CMC--Graduate School of Business SOF--Serviços de Organização e Finanças Center for Economic Development Peter Loewenguth, President Marcolino Meireles, Manager Anelia Damianova, PhD, Senior Expert Professor Jaroslav A. Jirasek, Honorary Manuel José Alves Da Rocha, Consultant Dean Emil Moreso Grion, Consultant Cameroon Denmark Centre d'Etudes et de Recherches en Argentina Economie et Gestion Copenhagen Business School IAE--Universidad Austral Professor Seraphin Magloire Fouda, Heather Alison Hazard, Associate Professor, Marcelo Paladino, Research Director Director Program Director, Vice President for Alberto Willi, Research Assistant International Affairs Mette Reerbirk, Programme Administrator Canada Australia Institute for Competitiveness and Ecuador Business Council of Australia Prosperity Katie Lahey, Chief Executive Roger Martin, Dean of the Rotman Escuela Superior Politecnica del Litoral School of Management, University of (ESPOL) Melinda Cilento, Chief Economist Toronto and Chairman of the Institute Escuela de Postgrado en Administracion de for Competitiveness and Prosperity Empresas (ESPAE) Austria James Milway, Executive Director of Virginia Lasio, Acting Director WIFO--Austrian Institute of Economic the Institute for Competitiveness and 305 Karina Astudillo, Project Assistant Research Prosperity Professor Karl Aiginger, Deputy Director Chad Egypt Egyptian Center for Economic Studies Bangladesh Groupe de Recherches Alternatives Institutes et de Monitoring du Projet Pétrole- Dr Ahmed Galal, Executive Director Centre for Policy Dialogue (CPD) Tchad-Cameroun (GRAMP-TC) Dr Debapriya Bhattacharya, Executive artnerP Professor Gilbert Maoundonodji, Estonia Director Director of Dr Uttam Kumar Deb, Research Fellow Estonian Chamber of Commerce and Industry List Kazi Mahmudur Rahman, Research Chile Associate Siim Raie, Director General Universidad Adolfo Ibañez Andres Allamand Zavala, Dean of the Belgium Ethiopia School of Government Vlerick Leuven Gent Management School Ethiopian Economic Association/Ethiopian Victoria Hurtado Larrain, Academic Economic Policy Research Institute Professor Dr Lutgart Van den Berghe, Coordinator of the School of Executive Director, Chairman Competence Berhanu Nega, Director Government Centre--Entrepreneurship, Governance & Kibre Moges, Senior Researcher Strategy Worku Gebeyehu, Assistant Researcher China Harry Bowen, Professor, Economics and International Business Institute of Economics Systems and Management Finland Lucy Amez, Research Assistant State Council Office for Restructuring ETLA--The Research Institute of the Finnish Economic Systems Economy Bolivia Chen Li, Executive Deputy Director Pentti Vartia, President Universidad Catolica Boliviana Dr Gao Shi-Ji, Deputy Director for Pekka Ylä-Anttila, Managing Director Lic. Marcela A. De Guzman, Directora, Research Petri Rouvinen, Research Director Depto. Economia Zhou Mei, Assistant Fellow France Botswana Colombia HEC School of Management--Paris Botswana Institute for Development National Planning Department Policy Analysis (BIDPA) Bernard Ramanantsoa, Professor, Dean of María Isabel Agudelo HEC School of Management Dr N.H. Fidzani, Executive Director Fernando J. Estupiñan V. Bertrand Moingeon, Professor, Associate Kedikilwe P. Maroba, Programme Dean for Executive Education Coordinator Gambia Indonesia Gambia Economic and Social Development LP3E-Kadin Indonesia Latvia Research Institute (GESDRI) Dr Tulus Tambunan Institute of Economics, Latvian Academy of Makaireh A. Njie, Director Sciences, Riga Dr Raite Karnite, Director Ireland Germany Department of Economics, University Wissenschaftliche Hochschule für College of Cork Lithuania Unternehmensführung Koblenz Dr Eleanor Doyle Statistikos Tyrimai--Statistical Surveys, WHU--Otto Beisheim Graduate School of Vilnius Rosemary Kelleher Management Benonas Miksas, Director Niall O'Sullivan Professor Michael Frenkel Bernadette Power Luxembourg Ghana Israel Chamber of Commerce of the Grand Duchy The International Institute for IT (INIIT) of Luxembourg Manufacturers Association of Israel, Professor Clement Dzidonu, President and Carlo Thelen, Member of the Management Foreign Trade and International Relations Senior Research Fellow Committee Division Eliza Sam, Projects Officer Moshe Nahum, Director Macedonia, FYR Greece Italy National Entrepreneurship and Competitiveness Council Federation of Greek Industries SDA Bocconi Ilija Filipovski, Minister of Economy, Antonis Tortopidis, Co-ordinator, Research Claudio Dematté, Full Professor of Strategic Co-Chairman of the Council and Analysis Management and Entrepreneurship Svetozar Janevski, CEO, "Pivara," Skopje, Theodora Aivazoglou, Economist, Research Bocconi University--SDA Bocconi Co-Chairman of the Council and Analysis Paola Dubini, Associate Professor Strategic 306 Management and Entrepreneurship Madagascar Haiti Bocconi University--SDA Bocconi University of Antananarivo SOGEBANK--Société Général Haïtienne de Elena Grassi, Research Assistant, SDA Banque S.A. Bocconi Pépé Andrianomanana, Director, Centre of Institutes Economic Studies Claude Pierre-Louis, General Manager Jamaica Pierre-Marie Boisson, Chief Economist artnerP Malawi Reginald Saint-Fleur, Economist Private Sector Organisation of Jamaica of (PSOJ) Malawi Investment Promotion Agency Greta Bogues, Chief Executive Officer Alick C.E. Sukasuka, Director of Operations List Hong Kong SAR Mona School of Business at the University The Hong Kong General Chamber of the West Indies (MSB) of Commerce Malaysia Gordon Shirley, Professor David O'Rear, Chief Economist Institute of Strategic and International Studies (ISIS) Japan Tan Sri Dato' Federation of Hong Kong Industries Hitotsubashi University Graduate School of Dr Mohamed Noordin Sopiee, Chairman Alexandra Poon, Director International Corporate Strategy (ICS) and Chief Executive Officer Hirotaka Takeuchi, Dean Hungary Mali Kopint-Datorg, Economic Research Jordan Groupe de Recherche en Economie Dr Éva Palócz, Deputy General Director Ministry of Planning, Competitiveness Unit Appliquée et Théorique (GREAT) Ágnes Nagy, Project Manager Naseem Al-Rahahleh, Director Massa Coulibaly, Coordinator Iceland Kenya Malta ICETEC Institute of Policy Analysis and Research Foundation for National Competitiveness Hallgrimur Jonasson, General Director (IPAR) Dr John C. Grech, President Dr T. Nzioki Kibua, Executive Director Adrian Said, Chief Coordinator India John Omiti, Senior Research Fellow and Wilfred Kenely, Policy and Programs Coordinator, Real Sector Confederation of Indian Industry Coordinator R. Njeri Chacha, Resource Centre Manager Tarun Das, Director General Dr Jennifer Cassingena Harper, International Relations Coordinator Korea Korea Development Institute Dr Cho Byung-Koo, Chief of Information and Computing Center Mauritius Nigeria Romania Joint Economic Council of Mauritius Nigerian Economic Summit Group (NESG) Romanian Economics Society (SOREC) Raj Makoond, Director Chris Onyemenam, Director, Operations Professor Daniel Daianu; President SOREC, and Administration Professor of Economics, Academy of Economic Studies Bucharest Mexico Dr Felix Ogbera, Associate Director, Research Dr Liviu Voinea, Senior Lecturer, Romanian- Ministry of the Economy Mayowa Obilade, Research Consultant American University Dr Eduardo J. Solis Sanchez, Chief of Dragos N. Pislaru, Research Fellow, the Office for the Co-ordination of Romanian Center for Economic Policies International Trade and Investment Norway Promotion Norwegian School of Management BI, Russian Federation Lic. Veronica Orendain De Los Santos, Centre for Value Creation Assistant in the Office for the Dr Erik W. Jakobsen, Associate Professor Bauman Technical University (BMSTU) Co-ordination of International Dr Alexei Prazdnitchnyk, Project Trade and Investment Promotion Dr Torger Reve, Professor Coordinator, BMSTU Russian Regional Anne Fossum, Analyst Competitiveness Survey Project Center for Intellectual Capital and Competitiveness Pakistan Institute for Private Sector Development Dr Rene Villarreal, President Pakistan Institute of Development and Socio-Economic Analysis (IPSSA) Dra Rocio Ramos de Villarreal, Economics Irina Evseyeva Vice-President Dr A.R. Kemal Stockholm School of Economics in Saint Mexican Institute of Competitiveness Petersburg Paraguay (IMCO) Professor Carl F. Fey, Associate Dean of Valentín Díez Morodo, Chairman of the Centro de Analisis y Difusion de Economia Research Board and President Paraguaya (CADEP) Dr Igor Dukeov, Research Fellow Emilio Carrillo Gamboa, Secretary Fernando Masi, Director 307 Dionisio Borda, Research Member Senegal Morocco Nelson Aguilera Alfred, Research Member Centre de Recherches Economiques Université Hassan II Appliquées (CREA) Peru Fouzi Mourji, Professor of Economics Abdoulaye Diagne, Director Institutes Centro de Desarrollo Industrial (CDI)-- Dr Gaye Daffé, Scientific Coordinator Sociedad Nacional de Industrias Mozambique Luis Tenorio, Executive Director artnerP EconPolicy Research Group, Lda Serbia of Néstor Asto, Project Director Dr Peter Coughlin, Partner Serbia National Competitiveness Council List Professor Dr Paulo N. Mole, Partner Dragoljub Vukadinovic, Chairman Philippines Goran Pitic, Member of the Executive Makati Business Club Namibia Committee Guillermo M. Luz, Executive Director Namibian Economic Policy Research Unit Professor Boris Begovic, Member of the Marc P. Opulencia, Deputy Director Executive Committee Dr Christoph Stork, Senior Researcher Michael B. Mundo, Chief Economist Antony N. Masarakufa, Researcher Singapore Poland Economic Development Board Netherlands Warsaw School of Economics Shirley Chen, Assistant Managing Director, Erasmus Strategic Renewal Center, Erasmus Corporate Services University Rotterdam Professor Bogdan Radomski, Associate Professor Professor Frans A. J. van den Bosch Slovak Republic Professor Henk W. Volberda Portugal Business Alliance of Slovakia (PAS) PROFORUM, Associação Para o Robert Kicina, Project Manager New Zealand Desenvolvimento da Engenharia Institute for Economic and Social Reforms Business New Zealand Ilídio António de Ayala Serôdio, Member (INEKO) Anne Knowles, Executive Director of the Board of Directors Eugen Jurzyca, Director Slovenia Trinidad and Tobago Zambia Institute for Economic Research University of the West Indies: Institute INESOR: Institute of Economic and Social Dr Peter Stanovnik, Director of Business Research, University of Zambia Dr Mateja Drnovsek, Faculty of Economics Dr Rolph Balgobin, Executive Director Chileshe L. Mulenga, Director Professor Ales Vahcic, Faculty of Economics Vashti G. Guyadeen, Senior Research Associate Zimbabwe Sasha Rampersad, Research Analyst South Africa University of Zimbabwe Business South Africa Professor A.M. Hawkins, Director, Graduate Tunisia School of Management Ben Van Der Ross, Chief Executive Officer Institut Arabe des Chefs d'Entreprises Friede Dowie, Secretary General Faycal Lakhoua, Conseiller Bolivia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Spain Guatemala, Honduras, Nicaragua, Turkey Panama IESE Business School-Anselmo Rubiralta Center for Globalization and Strategy Turkish Economic and Social Studies Latin American Center for Competitiveness Foundation (TESEV) Professor Eduardo Ballarín and Sustainable Development (INCAE) Can Paker, Chairman María Luisa Blázquez, Research Associate Roberto Artavia, Rector Arturo Condo, Associate Dean Uganda Sri Lanka Marlene de Estrella, Administrative Makarere Institute for Social Research Director Institute of Policy Studies Professor J.C. Munene Indika Siriwardena, Database Manager Estonia, Latvia, Lithuania Ukraine Stockholm School of Economics in Riga Sweden CASE--Ukraine, Center for Social and Dr Anders Paalzow, Rector Stockholm School of Economics, Institute Economic Research 308 of International Business Dr Karlis Kreslins, Associate Professor Vladimir Dubrovskiy, Project Manager Professor Örjan Sölvell United Kingdom Switzerland Institutes Interdisciplinary Institute of University of St. Gallen Management, London School of Professor Dr Franz Jaeger, Director, Economics and Political Science artnerP Research Institute for Empirical Economics Sir Geoffrey Owen, Senior Fellow of and Economic Policy List United States Taiwan Council on Competitiveness Council for Economic Planning and Development Deborah Wince-Smith, President Economic Research Department Chad Evans, Vice President, Research and Analysis Dr C.Y. Hu, Director Chung-Chung Shieh, Researcher Uruguay Universidad ORT Tanzania Professor Isidoro Hodara Economic and Social Research Foundation Professor Haidari Amani, Executive Director Venezuela John Ulanga, Coordinator, Commissioned Studies Department CONAPRI, National Council for Investment Promotion Moses Msuya, Research Assistant, Commissioned Studies Department María Eugenia Labrador, Special Projects Manager Camilo Daza, Investor Service Thailand Kitys Gil, Communication Assistant National Economic and Social Development Board Vietnam Arkhom Termpittayapaisith, Senior Advisor in Policy and Planning Institute for Economic Research Nguyen Xuan Thanh, Research Fellow