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World Bank (WB) has urged the developing country governments to work across ministries and in partnership with the private sector to extend the reach and use of Information and Communications Technology (ICT).
"Although there has been global progress in improving access to ICT, poor countries still lag behind in making ICT applications commonplace in governments, schools and businesses," the WB said in a report Thursday.
The report-Information and Communications for Development 2006: Global Trends and Policies-takes stock of the progress that has been achieved worldwide in rolling out access to affordable ICT and provides evidence on what makes for success in adopting ICT to meet the development challenges.
The report, which includes a series of ICT indicators for nearly 150 countries, is based on experiences, drawn from the WB's own involvement in the sector.
The WB is the largest international donor in the field of ICT for development. It has ICT projects in over 80 countries with a portfolio amounting to more than US$3 billion (300 crore).
Over the past 25 years, developing countries have considerably increased ICT access, especially for telephone services. Between 1980 and 2005, the number of telephone subscribers in developing countries rose by over 30 times. In 1980, developing countries accounted for only 20 percent of the world's telephone lines, but in 2005, 60 percent of the world's phones were in developing countries.
According to the report, such expansion has been driven by the technological revolution of mobile telephony as well as private competition. By 2003, 130 countries had at least three competing providers of mobile services.
Opening up to private competition has also led to huge inflows of investment from overseas.
Between 1990 and 2003, 122 of 154 developing countries received foreign investment in telecommunications, and annual FDI in this sector in developing countries have increased from US$2 billion in 1990 to approximately US$35 billion. In coming years, the level of annual investment, going into the ICT sector in emerging market, could reach US$100 billion.
Besides, the use of ICT, including the internet, is increasingly important for the developing countries' productivity and employment. A survey, carried out in 56 developing countries, found that ICT-using firms grow faster, invest more and are more productive and profitable than those that do not.
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