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The role of ICTs in the EC Development Policy

The role of ICTs in the EC Development Policy. ITU Workshop Kampala, November 1, 2004 Harry De Backer. Contents. The General EU policy for development The EU policy for ICTs The Pipeline or the EDF9 The way forward Research and Development Conclusion. Contents.

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The role of ICTs in the EC Development Policy

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  1. The role of ICTs in the EC Development Policy ITU Workshop Kampala, November 1, 2004Harry De Backer

  2. Contents • The General EU policy for development • The EU policy for ICTs • The Pipeline or the EDF9 • The way forward • Research and Development • Conclusion

  3. Contents • The General EU policy for development

  4. Overall objective The overall objective of EC development policy is the reduction and eventual eradication of poverty. This does not only include material poverty, but entails a broad interpretation of poverty as vulnerability. As means to achieve the overall objective, efforts will focus on supporting sustainable economic, social and environmental development, promoting the gradual integration of the developing countries in the world economy, and combating inequality.

  5. Focal sectors Six focal sectors were selected as priority areas for better efficiency of EC assistance. The sectors were identified as areas in which Community action has added value, and also as having a significant impact on poverty reduction. Ideally complementarity would be enhanced by a similar prioritisation by the MS • Link between trade and development • Regional integration and co-operation • Support for macro-economic policies and the promotion of equitable access to social services (health and education) • Transport • Food security and sustainable rural development • Institutional capacity building, good governance and the rule of law

  6. Cross-cutting themes Three main cross-cutting themes were identified for consideration and inclusion in all sectors and in all countries: • Human rights, including children’s rights • Environmental issues • Equality between men and women

  7. ‘The three Cs’ • Coordination – between the Community and the Member States on development policy and implementation of aid programmes • Complementarity – ensuring a better division of labour between the Community and the Member States to ensure harmonization of poverty reduction efforts in line with each donor’s comparative advantages in different sectors or countries. • Coherence – between different internal and external Community policies having an impact on development, ensuring that development policy objectives are taken into account in the formulation and implementation of other policies as well.

  8. Principles • Ownership – should rest with the partner countries, crucial to ensure the success of development policies. • Participation – All segments of society, including non-state actors and poor people, should be encouraged to participate in the definition of development and cooperation strategies, extending the approach agreed with the ACP states in the Cotonou Agreement to all countries and regions. • Allocation of resources: Least developed and low-income countries should be given priority, although middle-income countries with a high proportion of poor people will also receive support in line with their poverty reduction strategies. Allocation of resources will be based on needs, efforts to reduce poverty and aid absorption capacity.

  9. Financial resources (1.9.2001) • Financial resources of the 9th EDF: 13.5 B€ • Long term allowance 10 B€ • Regional allowance: 1.3 B€ • Investment Facility: 2.2 B€ • Remaining balance of 8th EDF: 9.9 B€ • EIB own resources: 1.7 B€ Grand Total: 25.1 B€

  10. Contents • The General EU policy for development • The EU policy for ICTs

  11. ICTs • ICTs is about efficiency and about forward thinking. • ICTs have the potential • to enable new and more efficient methods of production • to open new markets • to improve delivery of government services • to increase access to basic social goods and services. • ICTs is not about computerisation of inefficient processes

  12. Prologue 1: Globalisation • Information and Communication Technologies are the essential components of the Globalisation. • Without ICTs there would never have been talk about Globalisation. ICTs abolish frontiers and reduce distances to milliseconds. • Considering the four freedoms of movement: Goods, Persons, Services and Capital. • Transport is the principal carrier for Goods and Persons. • ICTs move Services and Capital.

  13. Prologue 2: MDGs and ICTs • The Internet is a tremendous knowledge base where teenagers in the North get most of their information from. How can we make available that source of information to the youngsters, to the new generations in the South?

  14. Prologue 3: The challenges! • Not everybody understands the need for the use of new technologies! • Hierarchy has to cut between different economic sectors! • Minimal knowledge inside the house and in the Delegations • Liberalisation of the Telecom Market in 1998 has stopped all grants to the telecom sector! • In the EDF6-7-8, only 110 M€ for the ICT sector.

  15. ICT as a sector on its own Almost 10% of the GDP in the North Long learning curve Logical skills required In India 3.2% of the GDP and 20% of the export is ICT related. Therefore, the Indian model ought to be copied in ACP countries ICTs in support of other sectors ICTs in support of the traditional sectors: e-learning, electronic commerce, telemedicine, e-government, etc. Almost no skills in the ACP countries Braindrain The Dual role of ICTs, three different EU institutions Centre for the Development of EnterpriseEuropean Investment Bank EDF: NIPs, RIPS and Intra-ACPEuropean Investment Bank

  16. Two roles, one Policy • ICTs are a tool, an enabler and not a priority on their own. ICTs are integrated and mainstreamed in the EU development priorities. • Stimulating the ICT sector itself is the role of the CDE.

  17. The political pillars • Monterrey Consensus • COM(2001)770 Communication on Information and Communication Technologies in Development. The role of ICTs in EC development policy • ACP-EU Joint Position on the Information Society for Development (10.12.2003) • WSIS Declaration of Principles and Action Plan (12.12.2003)

  18. Contents • The General EU policy for development • The EU policy for ICTs • The Pipeline or the EDF9

  19. Geographical projects • COMESA: 21M€ e-commerce project • CARIFORUM: 3M€ ICT project • SADC: 17M€ Knowledge Economy Program • Pacific Forum: 8M€ Basic Education Program • Intra-ACP: 20 M€ ICT Capacity Building program • All these projects have a common denominator: • Policy definition • Regulatory Affairs • Capacity Building • Seed funding for e-applications

  20. Horizontal projects complementing the regional programmes • e-Parliament – UNDP • ICTs in support of the MDGs – infoDev • ICT in education for the Fast Track Initiative – infoDev • Feasibility study for a 20M€ ICT programme for the ACP – infoDev • Support to the establishment of an integrated ICT market in West Africa – ITU • Regulatory Reform Capacity Building Program for West Africa – ITU • Enhancement of government services through the use of secure and trusted Internet infrastructures and application Kyrgistan, Cameroon, Rwanda and Tanzania – ITU • Establishment of Internet Training Centers – ITU • AMESD: 23M€ Earth Observation programme • NICI plans: 1.2M€ with UN-ECA

  21. Other facilities in the framework of Cotonou • Pro€Invest • an EU-ACP programme financed by the EDF and managed by the Centre for the Development of Entreprise (CDE) • budget of 110M€ over a period of 7 years • in line with the policies of Cotonou Agreement envisaging an increased private sector role in the development process. • promote investment and technology flows to enterprises operating within key sectors in the ACP States. One of these key sectors is ICTs. • EIB Investment Facility • In 2003-2008, the EIB is expected to channel 3.9B€ to ACP projects, which promote the business sector or to public sector projects if they are operated on a private sector footing. • 1.7B€ will be lent from the EIB’s own resources, and 2.2B€ will be provided under a new Investment Facility, funded by EU Member States for private sector support • The INVESTMENT FACILITY provides various forms of risk sharing financing instruments to most sectors of the economy for projects which are economically, financially, technically and environmentally viable.

  22. Other programmes • ALIS (Latin America) • budget of 77.5M€ • 63.5M€ will be financed by the European Commission • Asia IT&C • budget of 30M€ • The Programme can supply up to 80% co-financing to Information Technology • EUMEDIS • Budget of 65 M€ • New Approaches to Telecommunications policy 2.5 M€ • Budget line B7-623: ICT for development • 2002: sub-contracted to ITU (300k€ for organisation of WSIS) 3M€ • 2003: sub-contracted to Worldbank and UNDP: 1.57M€ • 6th R&D FP • A budget of 285M€ was earmarked to cover participation of INCO target countries in the FP6 thematic programmes. Demand from ACP is however weak.

  23. Conclusion EC • Disbursed or being disbursed 287.3M€ • Asia 30.5M€ • Latin America 63.5M€ • Mediterranean 67.5M€ • EDF 122.5M€ • Budget line B7-623 4.5M€ • EIB loans 270.7M€ • New funding 97M€ + • EDF 97.0M€ • Pro€Invest PM • Investment Facility PM • 6th R&D FP PM

  24. Contents • The General EU policy for development • The EU policy for ICTs • The Pipeline or the EDF9 • The way forward

  25. Requirements for the introduction of the IS in the ACP • Facts • Most ACP countries have an e-strategy, but lack the funds to implement it. • No single donor can bring sufficient funds • EC ODA is country-based with concentration on two priority sectors Requirements • PRSPs or general development programs should remain the guiding principle • ICT should not become an ideology • e- applications when it can be proven that technology will lead to better results

  26. Present thinking • Matching the e-strategies to the PRSPs • Determine what has been done • Determine what still needs to be done • Put a price tag to the missing elements 2. Matching between the donors 3. Organization of a co-ordination conference

  27. Contents • The General EU policy for development • The EU policy for ICTs • The Pipeline or the EDF9 • The way forward • Research and Development

  28. R&D • The outcomes of the World Summit on Sustainable Development (WSSD) have amply demonstrated the importance of science and technology. • Developing countries should increase funding for R&D in order to strengthen indigenous scientific and technological capabilities. Failing to do so will multiply the already existing brain drain. • An ACP Science and Technology Capacity Building programme (50M€) is in the making which should act in a similar way as the EU R&D Framework Programme.

  29. Contents • The General EU policy for development • The EU policy for ICTs • The Pipeline or the EDF9 • The way forward • Research and Development • Conclusion

  30. Conclusion It has been a long road with many winding turns • Anything is possible for as long as a demand comes from a developing country. • Unfortunately for the ICT sector, no real demand has originated from the developing countries themselves. • ICTs are in a constant fight against lack of awareness. • A lot of the present work is in preparation of a future EDF.

  31. Closing moments: The three stages of truth According to Arthur Schopenhauer (1788-1860) all truth passes through three stages. • Ridicule • Violent opposition • Truth is accepted as being self-evident. The ICT sector is on the verge of stage three.

  32. The Websites • europa.eu.int/comm/dgs/development/index_en.htm • www.eib.org • www.cde.int • harry.de-backer@cec.eu.int

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