ICT in Developing Countries - Latin America -

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1 ICT in Developing Countries - Latin America - -The importance of e-gov- Vanda Scartezini ICANN Board Member

2 The ideas.. Latin America ICT Overview E- gov in LA Understanding the results What comes next?

3 Source - weforum LATIN AMERICA & CARIBBEAN I T C F ACT S d e c POPUL AT I ON 5 5 3, 9 0 8, i n h. 8, 3 % wo r l d p o p u l a t i o n GNP USD , 3 % Wo r l d I n t e r n e t Pe n e t r a t i o n 7, 8 % Wo r l d I n t e r n e t Us a g e

4 The World Economic forum ICT Readiness ITC Nations Readiness Capability of main agents of an economy Citizens Business Governments Combinations of factors as Relevant individual skills Access and affordability for individuals & corporations Government use for its own services & processes. Source - WEforum

5 key Index - Environment - Measure the degree of conduciveness of country s ambience to promote ICT Right policies to help expand ICT Education computers, internet and content in schools Training people to reach relevant individual skills Public access to digital inclusion & education Public/ free internet centers Affordability to tools & services Competitive environment to keep prices low. Production, services & maintenance Legal framework that encourage ICT investments

6 Key item - Infrastructure Availability & quality of key access infrastructure for ICT within a country Telecommunication wired and wireless penetration Wideband penetration Internet providers around the country Numbers of Hosts IP addresses, use and availability PC access / penetration Power & electricity access / penetration

7 READINESS ITC - LA&C Rank + CHINA, INDIA, RUSSIA HAI T I NI CARAGUA P ARAGUAY BOLI V I A E CUADOR GUAT E M ALA V E NE ZUE LA P E RU RUSSI A E L SALV ADOR COLOM BI A P ANAM A RE P. DOM I NI CANA URUGUAY T RI NI NAD T OBAGO CHI NA 87º 100º ARGE NT I NA COST A RI CA I NDI A M E X I CO BRAZI L CHI LE 31º 34º IN F R A ST R UC T UR E EN VIR ON M EN T GEN ER A L BES S;

8 Latin America Telecom penetrations X GNP /capita

9 Source ITU + local operators 70% 60% 50% 40% 30% 20% 10% 0% BRAZIL CHILE Latin America M & F Telecom MEXICO COSTA RICA ARGENTINA URUGUAY PANAMA Penetrations REP.DOMINICANA M OBILE PENETRATION MOBILE >> Fixed COLOMBIA TRININAD TOBAGO EL SALVADOR PERU VENEZUELA BOLIVIA PARAGUAY ECUADOR GUATEMALA NICARAGUA HAITI WIRED PHONES PENETRATION

10 Latin America Internet Penetration + 47,3% USERS 84,9% 35,7% 26,4% 22,7% 20,8% Source : internet world stats % Population % Users

11 Latin America Internet - % Users Growth 8,233% Source : internet world stats ARGENTINA BOLIVIA BRAZIL CHILE COLOMBIA COSTA RICA ECUADOR EL SALVADOR GUATEMALA GUYANA MEXICO NICARAGUA PANAMA PARAGUAY PERU REP.DOMINICANA TRINIDAD TOBAGO URUGUAY VENEZUELA HAITI

12 Latin America - IP distribution AR 7% VE 4% CO CR 2% 3% PE 1% PA 1% Other 4% BR 43% CL 7% MX 28% Source :LACNIC

13 E- gov in LA

14 What e - gov is about? e- Gov Source : e -strategia

15 Challenges when starting E-gov in developing countries Government s capacity to do the evolution Finances & Human Resources Political time People s capacity to use that evolution easy and free access understanding skill to deal with

16 Latin America experiences Mostly programs started middle of 90 s beginning of 00 s The most developed countries launched Information Society Programs -Brazil Argentina, Mexico, Chile,Uruguay Central America 2003 Task force launch IS program for that region

17 The model Based on Information Society Program Announcement & public promotion Involvement of whole society - Document Groups to evaluate Infrastructure and suggest Improvements Public policies for widespread application of ICT and training the society Computers & Internet in Schools Internet free in public centers Academic networks Computers in all government agencies

18 The model Information available organization & priority Digital Production of as many online services as possible Partnership with private companies Interchange knowledge with other governments Full interoperability as a main goal

19 Which are countries goals? - Huge cost reduction - short pay back and continuous cost reduction - Improve competitiveness and productivity inside & outside governments - Strong base for e- commerce development - Corruption reduction - Improve general knowledge among society

20 Understanding the results

21 Source : e -strategia BINPS = Benefit its on Investments in Public S Government Procurement State Benefits + Supplier Benefits 2003 R$ 74 million lion BINPS : = 4,774 74% Investment Depreciated in n 5 years R$ million lion PayBack: 2 days

22 Source : e -strategia BINPS = Benefit its on Investments in Public Vehicle Property Tax Benefits for the State + Benefits for Society R$ 570 milions BINPS = Inicial Investment depreciated in 5 years + annual maintenance R$ 315,000 = 180,852% Payback: 1,15 hours

23 Best Practices - e-democracy Award - BRAZIL SAO PAUL O SAVI NGS CL OCK Go v e r n me n t Sa v i n g s Ci v i l So c i e t y Sa v i n g s

24 Savings with a few e-gov innovations BRAZIL R$ 35 billions R$ 17 billions VAT Pr o c u r e me n t TOTAL Savings: R$ 57.5 billions = 3.3% GNP R$ 2 billions R$ 3 billions R$ 150 millions R$ 140 millions R$ 55 millions Ve h i c l e Pr o p e r t y T a x Pr i n t i n g r e f o r mu l a t i o n Pe r s o n a l I d e n t i f i c a t i o n An n u a l Ve h i c l e l i c e n s e I n c o me T a x R$ 30 millions Op e n So u r c e So f t wa r e Source : e - strategia publica External Debt annual interest payment: Social Security for public servants TOTAL R$ 18 billion R$ 38 billion R$ 56 billion

25 Social Cost for people get identification ( by year in 1996 ) R$ 15 millions R$ 8 millions R$ 13 millions R$ 44 millions R$ 270 thousand R$ 8,5 millions

26

27

28

29

30 Source : e - strategia publica BINPS = Benefits on Investments in Public Identification BINPS : So c i a l Co s t Re d u c t i o n i n R$ 7 1 mi l l i o n s i n v e s t me n t De p r e c i a t e d - 5 y e a r s + a n n u a l c u r r e n t i n c r e me n t e d c o s t R$ 2 1 mi l l i o n s = 238% Pa y b a c k : 7 7 d a y s

31 2004 América Latina GNP US$2.5 trillions Total Annual Government Expenditures US $ 350 bilion Total annual procurement expenditure US$ 97 bilions Cost reduction with e-procurement: US $ 25 billions External Debt - Annual interest payment Source : e -strategia

32 e e gov promotes e commerce Training Gov services using IT People with less fear to face technology > demand Trusting People start to use e commerce Brazil B2B growing 37% / y - US$ 121 bilions in 2005

33 LA - Resume mostly countries with full information about government process to the public. many have adopted ITCs in almost all internal processes ( ex: e- procurement) Few with real services to the community taxes payment, documents, health appointments, justice processes, children Vaccines & Pregnancy tutoring etc

34 What comes next?

35 Next in LA Mobile government Brazil - > 80 millions active mobiles > 30 millions downloads ( infos) month > 900 millions of messages SMS/ month > 2 millions downloads services/ month Interoperability among systems Huge ASP services + outsourcing.? Source numbers: teletime2005

36 Thank you!

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