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Road Maps towards an information society in Latin America and the Caribbean Road Maps towards an information society in Latin America and the Caribbean Economic Commission for Latin America and the Caribbean (ECLAC) Santiago, Chile, July 2003 Libros de la CEPAL 72 This document was prepared by Jorge Katz, former Director and Martin Hilbert, Researcher, of the ECLAC Division of Production, Productivity and Management, for presentation at the Regional Preparatory Ministerial Conference of Latin America and the Caribbean for the World Summit on the Information Society (Bávaro, Punta Cana, Dominican Republic, 29-31 January 2003) and was circulated under symbol LC/G.2195(CONF.91/3). Cover design: Pablo Breton United Nations Publication ISBN: 92-1-121389-4 LC/G.2195/Rev.1-P Sales No. E.03.II.G.9 Copyright © United Nations, July 2003. All rights reserved Printed in United Nations, Santiago, Chile Applications for the right to reproduce this work are welcomed and should be sent to the Secretary of the Publications Board, United Nations Headquarters, New York, N.Y. 10017, United States. Member States and the governmental institutions may reproduce this work without prior authorization, but are requested to mention the source and inform the United Nations of such reproduction. Road Maps towards an information society in Latin America and the Caribbean 5 Contents Preface .....................................................................................................9 I. Definitions and guiding principles of an information society ...... 11 II. Latin America and the Caribbean in transition to an information society ..............................................................................19 A. The general economic context ................................................... 19 B. Horizontal layers: access to ICTs .............................................. 21 1. The digital divide .................................................................. 22 2. The implications of ICT convergence ................................. 31 3. Generic services ...................................................................... 34 C. The diagonal areas: removing obstacles and accelerating the transition ................................................................................37 1. Regulatory frameworks......................................................... 38 2. Financing ................................................................................43 3. Human capital ........................................................................46 D. The vertical sectors: the digitization process ........................... 50 1. ICT for development.............................................................. 51 2. Cosmopolitanism and trans-localism .................................. 55 3. The digitization process ........................................................ 59 6 ECLAC III. A public policy agenda in Latin America and the Caribbean ....... 75 A. National information-society strategies ................................... 76 B. Infrastructure and generic services ........................................... 80 C. The diagonal areas .......................................................................83 1. Regulatory frameworks......................................................... 83 2. Financing ................................................................................84 3. Human capital ........................................................................86 D. The “e-sectors” ............................................................................. 88 E. International information-society strategies .......................................................................................94 Bibliography ................................................................................................... 99 Annex - Bávaro Declaration ..........................................................................109 Figures, tables and boxes Figures I.1 ICT convergence ................................................................................... 13 I.2 Horizontal layers, vertical sectors and diagonal areas of the information society .............................................................................. 15 II.1 ICT infrastructure in Latin America (1995-2000).............................. 21 II.2 Internet user penetration compared with per capita income ......... 23 II.3 The Latin American income/connectivity divide............................ 25 II.4 ICT penetration by age group, 2002................................................... 26 II.5 Internet use by gender, 2002 ............................................................... 27 II.6 Percentage of population with computer/television by ethnic origin, 2000................................................................................. 29 II.7 2G mobile telephony standard dilemma in Latin America ............ 33 II.8 Widespread, inexpensive information access................................... 51 II.9 International peak-hour Internet traffic flows to and from Latin America in 2001................................................................. 57 Road Maps towards an information society in Latin America and the Caribbean 7 Tables II.1 Geographic concentration ................................................................... 28 II.2 The use of romance languages is growing rapidly in cyberspace ......................................................................................... 56 II.3 Share of consumers shopping at domestic and foreign web sites in Latin America, the United States and Europe, 2000.................... 58 Boxes II.1 Access, not ownership ........................................................................30 II.2 Providing computers to the people: the idea of a “volks-computer” ................................................................................. 31 II.3 OECD guidelines for consumer protection in the context of electronic commerce ........................................................................ 42 II.4 Enabling digital transactions across the region................................ 43 II.5 Return immigration of ICT professionals in the Caribbean ........... 49 II.6 The information overload and the knowledge process in the information society.................................................................... 53 II.7 Leapfrogging institutional development .......................................... 54 II.8 The digital opportunity for small and medium-sized enterprises (SMEs)................................................................................ 63 II.9 e-Democracy in Mexico: the national development plan experience ..................................................................................... 64 III.1 Information-society programmes....................................................... 77 III.2 Regional cooperation for ICT infrastructure: the Meso-American information highway of the Puebla-Panama Plan ........................... 81 III.3 Multilateral policy and programme development........................... 96 Road Maps towards an information society in Latin America and the Caribbean 9 Preface The concept of an “information society” refers to a paradigm which is profoundly changing the world in which we live at the beginning of this new millennium. This transformation is being driven primarily by new ways of creating and disseminating information using digital technologies. Information flows, communications and coordination mechanisms are being digitized in many different sectors of society, and this process is gradually giving rise to new ways of organizing society and production. While this form of “digital conduct” is becoming an increasingly global phenomenon, it has its origins in what are, for the most part, mature industrial societies. Indeed, the adoption of this technology-based paradigm is strongly correlated with a society’s degree of development. However, technology is not only the child of development (as it derives from the development process), but is also, to a large extent, its parent (since it is also a tool for development). Viewed from the perspective of Latin America and the Caribbean, the question of how to employ this emerging paradigm to achieve broader development goals and to integrate the region more fully into the global information society is an issue of paramount importance. In order to tackle the challenging task of integrating the paradigm of the information society into the development agenda, ECLAC is seeking to address three key questions: First of all, what kind of “information society” is desired? Based on an analytical framework developed by ECLAC for the consideration of the many complex issues involved in the construction and operation of an 10 ECLAC information society, it is of vital importance to determine the purpose and aims of all lines of action oriented towards the transition to an information society. The first chapter of this study lays the groundwork for such an analysis. Secondly, what are the basic characteristics and specific traits of the transition towards an information society in Latin America and the Caribbean? In order to understand what current and future paths the region can choose to follow in making the transition to an information society, the second chapter reviews some of the specifically regional features of the current process. Thirdly, what policies can be used to support the transition towards an information society?

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