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Meeting Arab Socio-economic development through ICT “ Can …………… ..Growth Can … ..Waste ” UN-SC CONTENTS Introduction: ICT and Development Arab Adopted Regional Needs Ranked ICT Solutions Characteristics Adequate ICT Solutions for Region Assessment of Suitable ICT Solutions

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meeting arab socio economic development through ict

Meeting Arab Socio-economic development through ICT

“Can……………..Growth

Can…..Waste” UN-SC

Prof Fouad Mrad, American University of Beirut - Lebanon

contents
CONTENTS
  • Introduction: ICT and Development
  • Arab Adopted Regional Needs
  • Ranked ICT Solutions Characteristics
  • Adequate ICT Solutions for Region
  • Assessment of Suitable ICT Solutions
  • Selected Suitable ICT Solutions’ Models
    • Model A: Software Development Industry
    • Model B: e-Services
    • Model C: Electronics Mfg & Integration

Prof Fouad Mrad, American University of Beirut - Lebanon

ict and development
ICT and Development
  • Technological change is both: a cause and a consequence of economic & social development
  • Some effects are non-measurable: convenience
  • Turnkey acquisition of technology systems:
    • technological and economic dependency,
    • limiting employment opportunities,
    • raising the cost of that acquired technology solutions.
  • ICT double edge: Selective adoption of ICT tools, products viewed as loss-minimizing strategy

Prof Fouad Mrad, American University of Beirut - Lebanon

regional adopted needs un 02 05
Regional Adopted Needs [UN 02-05]
  • Productive/Integrated Resources Mgmt for Sustainable Development
  • Integrated Policies for Social Development
  • Economic Analysis and Forecasting for Regional Development
  • Regional Integration and Adapting to Globalization
  • ICT for Regional Development
  • Comparable Statistics for Improved Planning and Policy Decisions

Prof Fouad Mrad, American University of Beirut - Lebanon

regional status of ict
Regional Status of ICT

Prof Fouad Mrad, American University of Beirut - Lebanon

process for selecting ict priorities
Process for Selecting ICT Priorities

Quality Function Deployment (QFD) process

  • Start with Region Socio-economic Needs
  • Derive and Rank ICT solutions characteristics
  • Propose, assess, and Rank ICT solutions
  • Evaluate Solutions (country reference):
    • suggest Very Suitable and Suitable Arab Countries
  • QFD team: various levels of expertise in ICT infrastructure, contents, enablers, industrialization, and management.

Prof Fouad Mrad, American University of Beirut - Lebanon

region adequate ict solutions ranked characteristics
Region Adequate ICT Solutions Ranked Characteristics

Prof Fouad Mrad, American University of Beirut - Lebanon

ranked ict solutions characteristics
Ranked ICT Solutions Characteristics
  • Higher information exchange rate
  • Increases real-time reliable access and management of information
  • Facilitates data networking for social development
  • Increases awareness and knowledge of ICT tools
  • Facilitates national/regional integration of statistical data
  • Increases transparency and availability of information
  • Offers opportunities for regional integration into the knowledge society
  • Affordable & user friendly
  • Supports monitoring of comparable economic indicators
  • Enhances measurements and analysis/forecasting tools for economic performance
  • Enhances economic performance
  • Facilitates dissemination of Arabic information
  • Facilitates partnerships among development stakeholders
  • Facilitates standards adoption

Prof Fouad Mrad, American University of Beirut - Lebanon

ranked ict solutions characteristics9
Ranked ICT Solutions Characteristics
  • Supports quality and coverage of education
  • Higher workforce utilization of youth and women
  • Facilitates awareness and enforcement of women empowerment policies
  • Offers new opportunities for industrialization
  • Supports initiatives to create productive employment
  • Offers investments opportunities
  • Supports Resources Management
  • Enhances harmonization and standardization of trade procedures
  • Helps regulation and facilitation of capital flow
  • Increases export capabilities
  • Increases environmental monitoring capabilities
  • Facilitates accessibility and awareness of social and cultural values
  • Facilitates and simplifies procedures for regional travel
  • Enhances trust and lower risk of Foreign and Domestic Investments
  • Can be exported

Prof Fouad Mrad, American University of Beirut - Lebanon

assessment of suitable ict solutions
Assessment of Suitable ICT Solutions

Prof Fouad Mrad, American University of Beirut - Lebanon

assessment of suitable ict solutions 22
1 Arabized Software Development

1 Digitized Language Intensive Industry & Services

1 ICT Based Education &Training Institutions

1 Digital Publishing

2 ISP / Hosting / Data centers

3 Community Telecenters

4 Digital Public Transactions Processing

5 e-banking Transactions

5 Virtual Shopping Centers

5 B2B e-Transactions

6 Broadband Infrastructure

7 Smart Public ID Card

8 System Design & Integration

9 Computer Peripherals Mfg

9 Manufacturing of Fiber-optics

9 Printed Circuit Boards (PCB) Fabrication

9 Telecom Equipment Switches Mfg

9 Telecom Equipment Units Mfg

9 Telecom PABX Manufacturing

9 Industrial Process Equipment Design & Assembly

10 Customized Software Subcontracting

11 Call/Contact Centers

Assessment of Suitable ICT Solutions (22)

Prof Fouad Mrad, American University of Beirut - Lebanon

model a software development
Model A: Software Development

New players differentiable capabilities

Attractive especially for developing countries:

  • High growth: industrial turnover, output, employment
  • Low entry barriers: financial and capital requirements
  • Opportunity to participate in knowledge based industry
  • Facilitating role for other parts of the economy
  • Opportunities for exports and foreign investments
  • Offers the full range of skill demand

Prof Fouad Mrad, American University of Beirut - Lebanon

model a software development industry
Model A: Software Development Industry

The software marketplace categories are:

  • Tools (databases, application tools)
  • Packaged (accounting, healthcare, shipping)
  • Tailored applications (government, manufacturing, e-commerce, etc)
  • Multi-media and Localization (Arabization, CDs, education, tourism, etc)

Prof Fouad Mrad, American University of Beirut - Lebanon

arabization arabic contents for ict solutions
Arabization & Arabic Contents for ICT Solutions

Arabic users forced to choose: foreign language, or poor Arabic support

Web pages contents (estimate)

  • Korean 4.4% (pop 45 Millions)
  • Arabic 0.1% (pop 300 Millions)

POTENIAL APPLICATIONS

  • Arabic educational contents for e-learning
  • Arabic multimedia, web applications
  • Arabic games
  • Arabic financial software
  • Arabic voice, language, and character recognition
  • Arabic interface for existing international packages

Prof Fouad Mrad, American University of Beirut - Lebanon

arabization arabic contents for ict
Supporting items

Low telecom cost (domestic)

Low telecom cost (inter)

Telecom infrastructure

Low employment cost

Technically skilled labor

Multilingual labor

R&D capability and support

University graduates

Arabic literacy

Proxy variables

Local rate (USD per 3 min.)

Call from US (USD per min.)

Percent digitalized exchanges

Average industrial wage (USD)

Prop of natural science major

Average score of TOEFL

R&D expenditure as % of GDP

Gross ratio tertiary education

Daily newspaper circulation per 1000

Arabization & Arabic contents for ICT

Prof Fouad Mrad, American University of Beirut - Lebanon

arabization and arabic ict content development selection
Arabization and Arabic ICT Content Development: Selection

Prof Fouad Mrad, American University of Beirut - Lebanon

slide17
VERY SUITABLE TECHNOLOGIES

Jordan

Kuwait

Egypt

Syria

Tunisia

Bahrain

SUITABLE TECHNOLOGIES

Lebanon

United Arab Emirates

Algeria

Morocco

Ref Country: Japan

Arabized Software DevelopmentDigitized Language Intensive Industry & ServicesICT Based Education &Training InstitutionsDigital Publishing

Prof Fouad Mrad, American University of Beirut - Lebanon

model b e services
Model B: e-Services
  • Developed countries experiences cannot be mapped directly to the region: social, economic, cultural, infrastructural,legal business practices.
  • NO benefit from globalization of outsourcing
  • Inter-Arab trade is so low (6% of Arab trade)
  • Need access to the increasingly ICT-dependent strong markets of developed-countries.
  • Inadequate infrastructure, relatively expensive ICT tools and access, services requiring foreign languages, almost inexistent local contents, and unsuitable legislations.

Prof Fouad Mrad, American University of Beirut - Lebanon

suitable e services solutions
Suitable e-services Solutions

ISP / Hosting / Data centers

Community Tele-centers

Digital Public Transactions Processing

e-banking Transactions

Virtual Shopping Centers

B2B e-Transactions

Smart Public ID Card

Call/Contact Center

Prof Fouad Mrad, American University of Beirut - Lebanon

isp hosting data centers
Supporting items

Low telecom cost (domestic)

Telecom infrastructure

Accessibility to internet

Domestic market size

Regional market size

Broadband infrastructure

IT literacy

Proxy variables

Local rate (USD per 3 min.)

Percent digitalized exchanges

User per 10,000 inhabitants

Domestic population

Regional population

Availability of ADSL

Number of PCs per 1000 inhabitants

ISP / Hosting / Data Centers

Prof Fouad Mrad, American University of Beirut - Lebanon

isp hosting data centers evaluation
ISP/Hosting/Data Centers: Evaluation

Prof Fouad Mrad, American University of Beirut - Lebanon

isp hosting data centers22
VERY SUITABLE TECHNOLOGIES

Saudi Arabia

Kuwait

United Arab Emirates

SUITABLE TECHNOLOGIES

Bahrain

Qatar

Ref Country: Iceland

ISP / Hosting / Data Centers

Prof Fouad Mrad, American University of Beirut - Lebanon

contact call centers
Supporting items

Low telecom cost (domestic)

Low telecom cost (inter)

Telecom infrastructure

Low employment cost

Availability of skilled labor

Multilingual labor

Domestic Market size

Regional Market size

Proxy variables

Local rate (USD per 3 min.)

Call from US (USD per min.)

Main Phone lines per 100

Average industrial wage (USD)

Mean years of schooling

Average score of TOEFL

Domestic Population

Regional Population

Contact / Call Centers

Prof Fouad Mrad, American University of Beirut - Lebanon

contact call centers evaluation
Contact/Call Centers: Evaluation

Prof Fouad Mrad, American University of Beirut - Lebanon

contact call centers25
VERY SUITABLE TECHNOLOGIES

Egypt

Jordan

Saudi Arabia

Syria

Algeria

SUITABLE TECHNOLOGIES

United Arab Emirates

Kuwait

Lebanon

Bahrain

Tunisia

Morocco

Ref Country: Ireland

Contact / Call Centers

Prof Fouad Mrad, American University of Beirut - Lebanon

model c electronics mfg integration
Model C: Electronics Mfg & Integration
  • Foundation of knowledge-economy
  • Fast economic growth
  • High value added
  • Multiplier effect
  • High employment (spectrum of skills)
  • Contributes to the competitiveness and productivity of other economic sectors.
  • ICT is the first sector of electronics.

Prof Fouad Mrad, American University of Beirut - Lebanon

arab electronics industry
Arab Electronics Industry

Arab Electronics Industry is small, service oriented, branches of MNC with very little local assembly activities

Meets 17% of total electronic Arab market

Little yearly export of $ 150 millions:

  • Tunis $ 55 millions
  • Morocco $ 50 millions

Prof Fouad Mrad, American University of Beirut - Lebanon

principles for arab electronics
Principles for Arab Electronics
  • Not competing with established giants of expertise (like Japan and Singapore), or ocean of labor and material (like China).
  • Focus on the niches that capture local resources (multi-lingual workforce, petroleum based material, creative human resources, etc),
  • Size of the market
  • Local R&D support capability for sustainable growth
  • Selective products that cannot be imported
  • Strategic needs for basic national industries
  • Strategic defense needs
  • Strategic diversification of economies
  • Job creation
  • Belonging to the knowledge society

Prof Fouad Mrad, American University of Beirut - Lebanon

suitable electronics industries
Suitable Electronics Industries

System Design & Integration

Computer Peripherals Manufacturing

Manufacturing of Fiber-optics

Printed Circuit Boards (PCB) Fabrication

Telecom Equipment Switches Manufacturing

Telecom Equipment Units Manufacturing

Telecom PABX Manufacturing

Industrial Process Eqpt Design & Assembly

Prof Fouad Mrad, American University of Beirut - Lebanon

electronics system mfg and integration
Supporting items

Low employment cost

Technically skilled labor

R&D capability and support

Domestic market size

Regional market size

Plastic processing industry

Casting/Molding

Packaging/Labeling

Multilingual labor

Telecom infrastructure

Global network of emigrants

Professional population

Proxy variables

Average industrial wage

Proportion of natural science major

R&D expenditure in Eng./Basic Science

Domestic population

Regional population

Number of plastic processing firms

Number of molding shops

Number of paper/printing firms

Average score of TOEFL

Main phone line per 100 inhabitants

Number of emigrants

Number of engineers/scientists

Electronics System Mfg and Integration

Prof Fouad Mrad, American University of Beirut - Lebanon

electronics mfg integration
Electronics Mfg & Integration

The more relevant indicators are not available for most of the Arab countries.

From existing studies, comparative and competitive advantages, electronics design and manufacturing more suitable

  • Tunis
  • Morocco
  • Egypt
  • Saudi Arabia

Prof Fouad Mrad, American University of Beirut - Lebanon

summary of ict initiatives for regional development needs
Summary of ICT Initiatives for Regional Development Needs
  • Each country is unique
  • Differences create a suitable environment for productive complementary strategy
  • Team Process results suggest:
    • ICT Infrastructure Upgrading
    • Arabization and Arabic ICT contents development
    • e-Services localization
    • Electronics design, manufacturing, and integration

Prof Fouad Mrad, American University of Beirut - Lebanon

conclusion
Conclusion
  • ICT support activities and decision-making for economic and social development
  • ICT as industrial sector for sustainable development
  • True ICT impact on development indicators are not universal and sometimes not measurable
  • Is not the answer to all needs and problems
  • Misleading ICT statistics yields wrong perception
  • More than 50% of ICT traffic unproductive -USA

Prof Fouad Mrad, American University of Beirut - Lebanon

conclusion cont
Conclusion (cont)
  • Suitability selection results and rankings were biased by team members, and UN_ESCWA defined regional needs.
  • Only guide before any investment and policy making
  • Choice of the supporting items and corresponding equally weighted proxy variables affected the process results
  • Unknown ICT plans and activities in the Arab countries.
  • Validity of findings conditioned by the documented data

Business opportunities in answering the regional needs with ICT services and industry $$$$

USA-Arab Development Partnerships

  • OIL for Development
  • Peace on Earth “IN SAME GOD WE TRUST”

Prof Fouad Mrad, American University of Beirut - Lebanon

follow up recommendations stakeholders
FOLLOW UP RECOMMENDATIONS - STAKEHOLDERS

Prof Fouad Mrad, American University of Beirut - Lebanon

references
References

[1]“New technologies for Enhancing Competitiveness and Productivity in Selected sectors,” UN – ESCWA, New York 2001.

[2]“Information and Communication Technologies for Development in the Arab States: Overview, considerations, and parallels with Asia,” UNDP regional Bureau for Arab States, June 2002.

[3]“Information and Communications Technologies for Development,” ESCWA presentation in the Sectoral meeting between the UN and the League of Arab States, Cairo, June 2002.

[4]“Issues of Concern to the Telecom sector in the ESCWA (Arab) region,” presentation by A. Dewachi, Arab and Africa Broadband and Internet Forum, Sharm El Sheikh, May 2002.

[5]“Telecommunications and Information Highways: Middle East,” Paul Budde Communication Pty Ltd, Australia, 2002.

[6]“Development and International cooperation in the twenty-first century: the role of information technology in the context of a knowledge-based global economy,” Report of the Secretary-General.” UN-New York, July 2000.

[7]“Information and Communications Technology and Development,” UN-ESCWA, Beirut, 2001.

[8]“Report of the Expert Panel on Information Technology and Development Priorities: Competing in a Knowledge-Based Global Economy,” UN-ESCWA, Beirut, May 2000.

[9]“Arab Book,”www.ituarabic.org

[10]“International and Regional Information and Communications Technology,” a report by A. Dewachi, Regional Advisor on Communications and Networking, ESCWA, Beirut, July 2001.

[11]“World Telecommunication Indicators,” ITU, 2000-2001.

[12]“Feasibility: Software Programming for Lebanon,” Presented to the Ministry of Industry – Lebanon, September 2001, by Monitor Group, Boston – USA.

[13]“Changing Dynamics of Global Computer Software and Services Industry: Implications for Developing Countries.” UN Conference on Trade and Development, 2002.

[14]“Impact of S&T system on Electronics Industries,” by M. Mrayati – ESCWA Regional Advisor, Presented at the Conference of Scientific research and Technological development in the Arab countries, Sharja-UAE, 2002.

[15]“Arab Human Development Report – 2002,” UNDP.

[16]“ICT Industry in the Arab Countries,” A. Dewachi, ESCWA Regional Advisor, 2001.

[17]“Challenges of Globalization, Innovation, and Competitiveness for Developing Countries,” S. Lall, Proceedings of the ESCWA-ILO Forum on Technology, Employment and Poverty Alleviation in the Arab Countries, Beirut, July 2002.

[18]“Partnerships and Networking in Science and Technology fro Development.” UN Conference on Trade and Development, 2002.

[19]“E-Services:What? How? Challenges ahead,” N. Rochdi, ICTD Policy Advisor-UNDP, Proceedings of the ESCWA-ILO Forum on Technology, Employment and Poverty Alleviation in the Arab Countries, Beirut, July 2002.

[20]“Findings from the World Employment Report 2001: Life at Work in the Information Economy,” Proceedings of the ESCWA-ILO Forum on Technology, Employment and Poverty Alleviation in the Arab Countries, Beirut, July 2002.

[21]“Electronic Commerce in the Arab World: Present Status and the Future Horizons,” Proceedings of the ESCWA-ILO Forum on Technology, Employment and Poverty Alleviation in the Arab Countries, Beirut, July 2002.

[22]“Proposed medium-term plan for the period 2002-2005: Programme 18–ESCWA,” UN General Assembly.

[23]www.qfdi.org

[24]“Software Development in Egypt: New Technology and Career Trends,” by A. Chalabi, Chief of Software Development, Sakhr Software, Cairo, www.sakhrsoft.com

[25]“Integrating ICTs in Education: A Long term strategy for Poverty Alleviation,” Proceedings of the ESCWA-ILO Forum on Technology, Employment and Poverty Alleviation in the Arab Countries, Beirut, July 2002.

[26]“Possible ESCWA direct initiatives to promote ICT fro employment and poverty alleviation,” M. Mrayati, ESCWA Regional Advisor, 2002.

[27]“Status of Electronics industry in the Arab region and investment opportunities,” M. Hawari, Proceedings of the 3rd Arab Conference on Electronics and ICT, Tunis, May 2000.

[28]“Status of Electronics industry in Tunis,” Tunisian Technical Center for Electrical and Mechanical Industry, Proceedings of the 3rd Arab Conference on Electronics and ICT, Tunis, May 2000.

[29]“Wireless broadband ina box,” Brad Schrick, IEEE Spectrum, June 2002.

[30]“Trends on mobile satellite communications,” A Abuqayyas, Arab Centre of Excellence - ITU Workshop, Damascus, July 2002.

[31]“New Trends in fixed networks: Egypt case study,” A. Elsherbini, O. Mohsen, Egyptian National Communication Institute - ITU Workshop, Damascus, July 2002.

[32]“Technology Trends in communications,” M. Wreikat, Jordanian Telecom Regulatory Commission - ITU Workshop, Damascus, July 2002.

[33]“Industry Analysis – Infrastructure Issues,” Paul Budde, www.budde.com.au

“Unified Network Infrastructure,” Xavier Voisin, Alcatel - ITU Workshop, Damascus, July 2002.

Prof Fouad Mrad, American University of Beirut - Lebanon