The Dominican Republic Readiness for the Networked World1 Information Technologies Group Center for International Development at Harvard University Geoffrey Kirkman Eric Driggs González Mark Lopes Michael Putnam Andy Ragatz October 2002 The Dominican Republic: Readiness for the Networked World Introduction Page 1 The Dominican Republic: Readiness for the Networked World Introduction to Dominican Networked Readiness Unsurprisingly, the Networked Readiness of the Dominican Republic in many ways mirrors the country’s current state of political and economic development. The Dominican Republic is a country marked by high economic growth over the past decade, a vibrant private sector, and a national propensity toward resourcefulness, creativity and pragmatism, all of which have been tempered and affected by wide income variation, urban-rural discrepancies, extremely polarized political rhetoric, and institutional and bureaucratic dysfunction. Each of these aspects of the Dominican Republic has shaped the country’s adoption and use of information and communication technologies (ICTs). While wealthier and urban segments of the population and leading Dominican companies have shown rapid adoption and active use of new technologies, much of the country still is not reaping the benefits of computers, the Internet or even basic telephony. The government has begun to tackle ICT issues in fits and starts, but is generally perceived to have yet to provide comprehensive or effective leadership in Dominican Networked Readiness is most technological matters. Formal affected and slowed by the larger backdrop of political, economic and initiatives (either public or private) to institutional challenges in the country. In extend the Internet and ICT networks to particular, low incomes, institutional the rural and poor segments of the weakness, weak governance structures, Dominican Republic are still in relatively and infrastructure deficiencies (especially incipient stages, and while there is by now electricity) all have hampered more a fairly substantial track record of hundreds widespread benefits from computers and of individual projects, their success has the Internet. been mixed. Dominican Networked Readiness is affected and slowed by the larger backdrop of political, economic and institutional challenges in the country. In particular, low incomes, institutional weakness, weak governance structures, and infrastructure deficiencies (especially electricity) all have hampered more widespread benefits from computers and the Internet. Our Approach In the past several decades, ICTs have reshaped the ways in which we communicate, and have realigned the processes through which we carry out economic activity and transactions globally. This is the Networked World, in which electronic means have become essential to the ways that we communicate with our families, the ways that businesses interact, the ways that government communicates with its constituents, and the ways that nations gain and maintain their competitiveness. Much of our work in the Information Technologies Group at the Center for International Development at Harvard University has focused on better understanding Networked Readiness, which we define as “the degree to which a community is prepared to participate in the Networked World.” In the pages that follow, we examine Dominican Networked Readiness, but we focus in particular on one major Readiness area – Network Use – how the technologies are being used in the country. Within Network Use, we sought to better understand how ICTs were being deployed in three segments of the Dominican population: • in schools and communities; • in businesses; and • in society overall. Page 2 The Dominican Republic: Readiness for the Networked World To achieve these goals, we carried out hundreds of interviews, traveled throughout the country, and deployed several quantitative surveys, most notably the Harvard Dominican Information Technology and Education Survey (HDITES) and a business survey in conjunction with the American Chamber of Commerce of the Dominican Republic. The overall strategy of our work in the Dominican Republic vis-à-vis Networked Readiness has been to complement and augment existing initiatives, in the acknowledgement that there are a number of ongoing efforts relating to overall economic competitiveness and to the more specific Our goal is to fill an important gap examination of the role of information and of understanding how ICTs are communication technologies (ICTs) in the being deployed within the Dominican economic development process. Our Dominican Republic, in the hopes goal is to fill an important gap of understanding that better diffusion mechanisms how ICTs are being deployed within the and more coherent programs and Dominican Republic, in the hopes that better projects will result in the country. diffusion mechanisms and more coherent In the end, it is how technology is programs and projects will result in the country. In being used that really matters. An the end, it is how technology is being used that understanding of that use can really matters. An understanding of that use can better inform the creation of policy and productive dialogue. better inform the creation of policy and productive dialogue. This report proceeds in three main sections, followed by supplementary background materials. In Chapter One we examine the experience thus far of planned efforts to introduce ICTs into secondary schools and communities within the Dominican Republic. In Chapter Two we present our findings regarding ICT attitudes and use in Dominican businesses. Chapter Three describes the more general phenomenon of ICT adoption in Dominican society-at-large. In the appendices, we provide background materials relating to the telecommunications sector and overall policy environment, as well as technical addenda related to specific focal areas of the project. Throughout the report, we focus on our overall goal of teasing out important lessons and strategic recommendations to enhance Dominican Networked Readiness. Overview Generally speaking, the Dominican Republic is in a crucial, and perhaps fragile, period in terms of its Networked Readiness. The country is now indelibly committed to the Networked World, and an effort needs to be made to make important changes in order not to lose momentum, waste investments or risk fomenting extreme disillusionment with ICTs. There is sufficient ICT use within the private sector for one to now consider computers, cell phones and the Internet to be essential tools of Dominican business. The government has spent millions of dollars on implementing telecenter and school ICT programs. And e-mail and cell phones have altered the ways that Dominicans communicate with each other both within the country and with the large Diaspora population living in the United States and elsewhere. What is most notable about Dominican Readiness is the leadership vacuum that currently exists. Throughout our research we found a tangible desire in the population, but especially in the business community, for greater dialogue and a national vision Page 3 The Dominican Republic: Readiness for the Networked World around ICTs for the country’s future. There is real excitement about technology in the country, but a sense of frustration that the government has not been more proactive in elaborating a strategy for how ICTs can improve competitiveness or address the fundamental development challenges that the Dominican Republic faces. While there is a lot of activity in the area of ICTs, as is made clear throughout the report, the overall approach has been fragmented and lacks a feedback loop or coordinating mechanism (formal or informal) that can let the country learn the lessons from existing projects. There are certain areas in which the government needs to take the lead in implementing a national vision. Obviously in public education and in policy, the government is the de facto actor in instituting reform. But in lieu of government leadership in the area of ICTs, there is a clear role for the private sector to be the The private sector should take driver of change. The private sector should take the the initiative to carve out a initiative to carve out a space in public discourse space in public discourse around the importance of ICTs for the future of the around the importance of ICTs country and to create a collaborative, forward- for the future of the country thinking dialogue that explores how the Dominican and to create a collaborative, Republic can better take advantage of the benefits forward-thinking dialogue that that ICTs offer as a tool for economic development explores how the Dominican and competitiveness. Just as the Dominican private Republic can better take sector has played a major role in reshaping debate advantage of the benefits that over education (by recognizing the importance of ICTs offer as a tool for economic development and quality education for the economy and taking a competitiveness. more active role in supporting schools) or urban planning (as can be seen in Santiago), this is an opportune time to channel the vibrancy and energy of the private sector to issues of Networked Readiness. Mechanisms such as national and local level Working Groups, workshops, brainstorming sessions, and collaborative forums that focus on incorporating the views of a wide range of stakeholders can do much to create the networks of institutions and individuals that are sorely needed in the Dominican Republic around issues of