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HUMAN DEVELOPMENT REPORT 2001 Making new technologies work for human development Published for the United Nations Development Programme (UNDP) New York Oxford Oxford University Press 2001 Oxford University Press Oxford New York Athens Auckland Bangkok Calcutta Cape Town Chennai Dar es Salaam Delhi Florence Hong Kong Istanbul Karachi Kuala Lumpur Madrid Melbourne Mexico City Mumbai Nairobi Paris Singapore Taipei Tokyo Toronto and associated companies in Berlin Ibadan Copyright ©2001 by the United Nations Development Programme 1 UN Plaza, New York, New York, 10017, USA Published by Oxford University Press, Inc. 198 Madison Avenue, New York, New York, 10016 Oxford is a registered trademark of Oxford University Press All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission of Oxford University Press. ISBN 0-19-521836-1 (cloth) ISBN 0-19-521835-3 (paper) 987654321 Printed in the United States of America on acid-free, recycled paper, using soy-based ink. Cover and design: Gerald Quinn, Quinn Information Design, Cabin John, Maryland Editing, desktop composition and production management: Communications Development Incorporated, Washington, DC Foreword Development and technology enjoy an uneasy that technology is used to empower people, al- relationship: within development circles there lowing them to harness technology to expand is a suspicion of technology-boosters as too the choices in their daily lives. often people promoting expensive, inappro- In India, for example, there are two de- priate fixes that take no account of development velopment faces to harnessing information realities. Indeed, the belief that there is a tech- technology. One is the beginning of Internet nological silver bullet that can “solve” illiteracy, connectivity in isolated rural villages— ill health or economic failure reflects scant un- allowing critical meteorological, health and derstanding of real poverty. crop information to be accessed and shared. Yet if the development community turns its But the second is growing regional informa- back on the explosion of technological innova- tion technology–based economic clusters, as tion in food, medicine and information, it risks skills demand by successful start-ups drives the marginalizing itself and denying developing opening of new universities and the rapid ex- countries opportunities that, if harnessed ef- pansion of an extensive ancillary service sec- fectively, could transform the lives of poor peo- tor. In other words, technology itself has ple and offer breakthrough development become a source of economic growth. opportunities to poor countries. While it is undeniable that many of the Often those with the least have least to fear high-tech marvels that dazzle the rich North from the future, and certainly their governments are inappropriate for the poor South, it is also are less encumbered by special interests com- true that research and development address- mitted to yesterday’s technology. These coun- ing specific problems facing poor people—from tries are more willing to embrace innovations: for combating disease to developing distance edu- example, shifting from traditional fixed line phone cation—have proved time and again how tech- systems to cellular or even Internet-based voice, nology can be not just a reward of successful image and data systems. Or to jump to new crops, development but a critical tool for achieving it. without an entrenched, subsidized agricultural sys- That has never been more true than today. We tem holding them back. live at a time of new discovery, with the mapping So with the Internet, agricultural biotech- of the human genome, enormous structural shifts nology advances and new generations of phar- in the way science is carried out and unprece- maceuticals reaching the market, it is time for dented networking and knowledge-sharing op- a new partnership between technology and de- portunities brought about by the falling costs of velopment. Human Development Report 2001 communications. But it is also a time of growing is intended as the manifesto for that partnership. public controversy on issues ranging from the pos- But it is also intended as a source of cautionary sible risks of transgenic crops to providing access public policy advice to ensure that technology to lifesaving drugs for all who need them. does not sweep development off its feet, but in- Our challenge now is to map a path across this stead that the potential benefits of technology fast-changing terrain. Not just to put to rest the are rooted in a pro-poor development strategy. debate over whether technological advances can And that in turn means, as the Human Devel- help development but to help identify the global opment Reports have argued over 11 editions, and national policies and institutions that can iii best accelerate the benefits of technological ad- countries. Needs, priorities and constraints in- vances while carefully safeguarding against the evitably vary widely by region and country—hence new risks that inevitably accompany them. the importance of a strategy for every country. As the Report details, emerging centres of ex- Nevertheless, a critical foundation for suc- cellence throughout the developing world are cess includes, at a minimum, some combination already providing hard evidence of the potential of unshackled communications systems, sustained for harnessing cutting-edge science and technol- support for research and development in both the ogy to tackle centuries-old problems of human private and public sectors, education policies and poverty. Many countries are making huge strides investments that can help nurture a sufficiently in building the capacity to innovate, adapt and reg- strong skills base to meet local needs and sufficient ulate technology for their needs. They are nego- regulatory capacity to sustain and manage all these tiating for their interests in international activities. And these domestic initiatives need to agreements, drawing up comprehensive science be supported by far-sighted global initiatives and and technology policies that reflect local needs and institutions that help provide resources and lend tapping the new opportunities of the network age support to the capacity of developing countries— to help create a critical mass of entrepreneurial and that pay more attention to neglected areas, activity that can generate its own momentum. from treating tropical diseases to helping devel- But the Report also shows how many other oping countries better participate in and benefit countries are failing to keep pace. And with lim- from global intellectual property regimes. ited resources, their governments have to be in- In short, the challenge the world faces is to creasingly strategic and selective if they are to have match the pace of technological innovation with any hope of bridging the technology divide and be- real policy innovation both nationally and glob- coming full participants in the modern world. ally. And if we can do that successfully, we can Worse, there is no simple blueprint. Technologi- dramatically improve the prospects for develop- cal progress is not a simple hand-me-down in an ing countries of meeting the key development appropriate form and cost to developing country goals set out in last year’s historic United Nations users. Rather, it must also be a process of knowl- Millennium Declaration. I believe this Report edge creation and capacity building in developing helps set us firmly in the right direction. Mark Malloch Brown Administrator, UNDP The analysis and policy recommendations of this Report do not necessarily reflect the views of the United Nations Development Pro- gramme, its Executive Board or its Member States. The Report is an independent publication commissioned by UNDP. It is the fruit of a collaborative effort by a team of eminent consultants and advisers and the Human Development Report team. Sakiko Fukuda-Parr, Director of the Human Development Report Office, led the effort, with extensive advice and collaboration from Nancy Birdsall, Spe- cial Adviser to the Administrator. Team for the preparation of Human Development Report 2001 Director and Lead Author Special Adviser Sakiko Fukuda-Parr Nancy Birdsall Core team Principal consultants Selim Jahan (Deputy Director), Haishan Fu (Chief of Sta- C. P. Chandrasekhar, Joel Cohen, Meghnad Desai, tistics), Omar Noman and Kate Raworth with Ruth Hill, Claes Calestous Juma, Devesh Kapur, Geoffrey Kirkman, San- Johansson, Petra Mezzetti, Laura Mourino-Casas, Andreas jaya Lall, Jong-Wha Lee, Michael Lipton, Peter Matlon, Pfeil, Richard Ponzio, David Stewart and Emily White. Susan McDade, Francisco Sagasti. Statistical advisor: Tom Griffin Editors: Bruce Ross-Larson, Justin Leites Design: Gerald Quinn iv Acknowledgements The preparation of this Report would not have tute, United Nations Children’s Fund, United been possible without the support and valu- Nations Conference on Trade and Develop- able contributions of a large number of indi- ment, United Nations Department of Economic viduals and organizations. and Social Affairs, United Nations Educational, Scientific and Cultural Organization, United CONTRIBUTORS Nations High Commissioner for Refugees, United Nations Interregional Crime and Justice Many background studies, papers and notes Research Institute, United Nations Population were prepared on thematic issues