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Policy Challenges and Responses Confronting the Digital Divide

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Policy Challenges and Responses Confronting the Digital Divide Confronting the Digital Divide: Policy Challenges and Responses OECD Emerging Market Economies Forum Richard Simpson Director General Electronic Commerce Branch Industry Canada Industrie Canada -DQÃÃ Global Change ✔ The Internet driving the Network Economy ✔ Globalization of Markets and Trade ✔ Convergence of technologies, services & markets ✔ Shift from monopolies to competition ✔ Mergers & acquisitions restructuring industry ✔ Wireless expanding mobile communications ✔ Rate of change accelerating (Moore’s Law) Why Is It Important? Business Government Trade Health Care Education Transforming all areas of life The Digital Divide Takes Various Forms • Individuals: Age, Gender, Income, Education, household size and type, language, racial and ethnic divides. • Businesses: Gap growing between large businesses (on high-speed on-ramps) and small and mid-sized firms, particularly in small towns & rural areas. • Regions: Geographic divides / Rural vs Urban, Remote regions, Small Urban Centers vs Major Urban centers • Nations: Uneven Levels and Rates of Development … Dividing Individual CitizensCitizens InternetInternet UseUse fromfrom AnyAny LocationLocation By Education By Income Percent of households Percent of households 70.1 71.2 1998 68.1 1998 65.1 1999 1999 48.1 44.4 41.8 41.5 37.4 35.9 29.2 23.6 18.8 16.1 12.6 13.2 Less than High School University Total <$20 000 $20 001- $36 000- >$60 000 High School or College Degree $35 999 $59 999 Usage rates are nearly four times higher for higher income and university educated households. Source: Statistics Canada, Household Internet Use Survey, 1998 and 1999. … Businesses InternetInternet UseUse byby SizeSize ofof BusinessBusiness Percent of Firms using the Internet 91.3 1997 Q4 83.9 82.6 78.8 1998 Q4 72.7 1999 Q4 68.3 66.2 65.9 65.1 55.2 54.0 54.9 51.1 52.1 42.5 38.1 37.6 28.3 0 - 4 5 - 19 20 - 49 50 - 99 100 - 499 Total Number of employees Source: Canadian Federation of Independent Business, Members’ Opinions Survey # 4 1 (July to Dec. 1997) #43 (July to Dec. 1998) and #45 (July to Dec. 1999) … CommunitiesCommunities andand RegionsRegions InternetInternet AccessAccess AmongAmong RuralRural andand UrbanUrban HouseholdsHouseholds 50 2000 1999 1998 1997 42.3 38.9 40 32.6 30 28.7 23.7 22.7 20 17.7 13.5 10 0 Rural Urban Rural Urban Rural Urban Rural Urban Canada Japan Netherlands United States Source: OECD, based on national statistical sources. … andand Countries InternetInternet HostsHosts perper 10001000 InhabitantsInhabitants Oct. 1997 Oct. 1998 Oct. 1999 Oct. 2000 North America 46.28 69.74 116.41 168.68 Oceania 26.81 34.76 43.84 59.16 Europe 6.13 9.45 13.41 20.22 Central and South 0.48 0.91 1.67 2.53 America Asia 0.53 0.87 1.28 1.96 Africa 0.17 0.21 0.28 0.31 Source:Netsizer (www.netsizer.com), in OECD “Understanding the Digital Divide” Jan. 2001 Moving Towards Digital Opportunity AsAs we we see see globalization globalization develop develop and and we we admire admire thethe magical magical advances advances that that we we have have made…theremade…there is is [still] [still] a a deep deep mistrust mistrust and and the the dangerdanger is…that is…that we we can can reverse reverse one one of of the the most most importantimportant developments developments in in our our civilization civilization becausebecause people people mistrust mistrust the the technology technology or or mistrustmistrust the the intention intention behind behind the the technology. technology. SoSo what what we we require require today today is is new new leadership leadership for for aa new new thousand thousand years years that that lie lie ahead ahead and and a a visionvision that that is is able able to to take take that that world world that that is is excludedexcluded in in the the mainstream... mainstream... Mr. Jay Naidoo, Former South African Minister for Posts, Telecommunications and Broadcasting (OECD Ministerial on E-Commerce, Ottawa, October 1998) Expanding Digital Opportunity Policy responses to the digital divide Individual Business Societal/Civic Network Pricing Bandwidth Public Readiness Strategies Strategies Access Points Skills, Digital E-Government Entrepreneurship Education Literacy E-Democracy School Use/ Sectoral/Regional Government Diffusion Networks Deployment Information/ Strategies Teacher Services (Use) Training Online Awareness Priority Areas for Action… Nationally • Policy and regulatory initiatives to increase network availability • Increasing access for individuals in public institutions and schools • Education and training in schools and vocational training institutions • Support and training for SMEs and government on-line Priority Areas for Action… InternationallyInternationally • Fostering policy, regulatory and network readiness • Improving connectivity, increasing access and lowering cost • Building human capacity • Encouraging participation in global e-commerce networks Mandate for G-8 dot force, Okinawa Charter Global Mobilization Underway • OECD • Summit of the Americas • APEC • UN System • G-8 dot.force • World Bank • Commonwealth • GBDe (Digital Bridges Task Force), WEF(Global Digital Divide Task Force), Role and Contribution of OECD • Document the Digital Divide through its data base: - What is the extent of the digital divide measured across different social, business and spatial characteristics? • Inventory of policy responses and programs to reduce the digital divide in order to inform international strategies: - Policies to lower network infrastructure access costs and increase competition - Policies and programs to improve access to technologies in schools and other public institutions - Support and training for entrepreneurs and SMEs - Government information and services on-line - Content development Conflicting Scenarios for the Global Information Society DIGITAL DIVIDE • Where technology deepens and intensifies the socio- economic divisions among people and nations OR... DIGITAL OPPORTUNITY • Where the means exist to broaden participation in the network-based economy and to share in its benefits Confronting the Digital Divide: Policy Challenges and Responses OECD Emerging Market Economies Forum Richard Simpson Director General Electronic Commerce Branch Industry Canada Industrie Canada -DQÃÃ.
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