UN-OHRLLS
Enhancing ICT development and connectivity
for the Landlocked Developing Countries
Issues Note and Chair’s Summary Adopted at the Thematic
Meeting held as part of the preparatory process for the
Comprehensive 10 Year Review of the Implementation of the
Almaty Programme of Action on 31st October 2013, in Nairobi,
Kenya.
Note
This publication contains an issues note on Enhancing ICT Development and
connectivity for Landlocked Developing Countries and the Chair’s Summary Adopted at
the Thematic Meeting on Enhancing ICT development and connectivity for the
Landlocked Developing Countries Held on 31st October 2013, at the United Nations
Conference Centre, Nairobi, Kenya.
The views expressed therein do not necessarily reflect the views of the United Nations.
ii
CONTENTS
1
Issues Note on Enhancing ICT Development and connectivity for Landlocked
Developing Countries ……………………….…………..…………………………....
Chair’s Summary Adopted at the Thematic Meeting on Enhancing ICT
development and connectivity for the Landlocked Developing Countries Held on
38
31st October 2013, at the United Nations Conference Centre, Nairobi,
Kenya………..………………………………………………………….........................
iii
Issues Note on Enhancing ICT Development and connectivity
for Landlocked Developing Countries
I.
Introduction
Geographical factors put Landlocked Developing Countries (LLDCs) at a distinct
disadvantage in the development process as they incur substantially higher transport and
other trade transaction costs when compared to coastal countries. The higher trading costs
for LLDCs emanate from factors associated with the status of the physical infrastructure
of the major transit routes for transporting their traded goods such as poor and inadequate
transport infrastructure and long distance from the sea port; and costs associated with the
soft infrastructure which comprises of the administrative border crossing procedures,
transit procedures, logistics and regulatory and legal systems for permitting passage of
traded goods across borders.
There are studies which have shown that landlockedness reduces GDP growth in these
countries by about 1.5 to 2 percent annually (for example see MacKellar et. Al 2000).
According to the World Bank 2014 estimates, LLDCs spent, on average, $3,203 to export
a standardized container of cargo, against $1,287 for the transit countries; and $3,884 to
import a similar container of merchandise compared to $1,602 incurred by their coastal
neighbours. That means it is 2.5 times costly to import and export for LLDCs. These high
transport and trade transaction costs, diminish export profits, inflate the prices of
imported inputs for manufacturing and discourage investment thereby negatively
affecting overall sustainable development in LLDCs. A recent study conducted by UNOHRLLS shows that the LLDCs as a group only exported 61% of the trade volume of the
representative coastal economy in 2010. The study also shows that the cost of trade and
transport services in LLDCs have increased over time. The study indicates that because
of landlockedness, the level of development in the LLDCs is, on average, 20% lower than
what it would be if the countries were not landlocked.
The First International Ministerial Conference of LLDCs, Transit Developing Countries
and Development Partners held in Almaty, Kazakhstan in 2003 adopted the Almaty
Programme of Action (APoA) which is a partnership framework to address the special
needs and challenges faced by the LLDCs. The priorities of the APoA include:
Fundamental transit policy issues, Infrastructure development and maintenance;
International trade and trade facilitation; International support measures, and
Implementation and review.
Some considerable progress has been made in the implementation of the priority areas of
the APoA, however, much more needs to be done to achieve the aim of the APoA and
better integrate LLDCs into the global trading system. Some of the achievements
accomplished since 2003 include development and modernization of infrastructure,
construction of dry ports, telecommunications and energy infrastructure along transit
routes; elimination of physical barriers to trade; introduction of one-stop border points
1
and single window systems; trade facilitation; joining regional and sub-regional
infrastructure programmes; signing of bilateral port and road agreements; and
streamlining of customs and border services. Economic and social development
indicators have improved during the implementation of the APoA despite large
differences among individual LLDCs. According to the 2013 report of the Secretary
General on the implementation of the APoA, LLDCs as a group experienced an
improvement in annual growth of GDP from about 5 per cent to about 6.5 percent
between 2003 and 2011. However, this growth decreased to 4.9% in 2012. Although the
group of LLDCs have improved their trade, they only account for 1.2% of total world
trade showing that they are still marginalized from the global markets.
On the social front, although significant gains have been recorded in several MDGs,
including primary education, gender equality, combating the spread of HIV/AIDS and
increasing the proportion of people with access to improved water source, many LLDCs
are lagging behind other groups in achieving food security, eradicating poverty and
reducing child and maternal mortality. Nearly two-thirds of the LLDCs have a GDP per
capita that is below $1,000.
The LLDCs continue to face combined adverse effects of landlockedness, structural
constraints and newly emerging challenges such as the global economic and financial
crisis, compounded by the negative impacts of climate change, desertification, land
degradation, drought and food crises. Persistent challenges faced by LLDCs include
limited productive capacities, declining value addition in manufacturing and agriculture,
and heavy reliance on undiversified primary commodities. These challenges render the
development process more difficult, impede integration of LLDCs into the global trading
system and into value chains and negatively affect their economic development. Thus
much more needs to be done to significantly reduce the trade transaction costs incurred
by LLDCs, enhance their productive capacities, improve their competitiveness, and
generate higher levels of economic growth needed to promote inclusive and sustainable
development.
Information and communications technologies (ICTs)1 can contribute towards addressing
these challenges and increased economic growth in LLDCs by improving trade
facilitation, increasing productivity across all the other sectors and lowering costs and
facilitating access to services, notably in administration, education, health and banking.
However, in order to enhance the role of ICTs in accelerating the development of LLDCs
it is important to critically analyze the status and performance of ICT development in
LLDCs, identify the challenges and suggest some recommendations. This issues paper
reviews the status of ICTs and identifies important issues and recommendations for
consideration in the development of the new development agenda for LLDCs. Following
1
ICT comprises a complex and diverse set of equipment, infrastructure, applications and
services, used to produce, process, distribute and transform information. It includes
mobile telephony, fixed telephony, personal computers, internet, broadband, tv, radio,
etc.
2
this introduction, the next section highlights the areas where ICTs can help address the
special needs of LLDCs. Section 3 presents the status of ICT development in LLDCs and
major challenges. Section 4 suggests recommendations to enhance the role of ICT in
fostering development in LLDCs.
II.
Key areas in which ICT can address the special development
needs of LLDCs
ICT can play a major role to address the challenges facing LLDCs. An attempt has been
made to visually show the challenges faced by LLDCs and how ICT can address these
constraints in figure 1.
ICT can help to achieve fast, reliable and efficient transit transport systems in LLDCs
which are necessary to reduce the high trade transaction costs that they face and improve
their competitiveness. While the average number of documents and time for LLDCs to
export and import has decreased between 2006 and 2014 – it is still much higher for
LLDCs when compared to transit countries. According to the World Bank’s Doing
Business 2013 Report, the average number of documents that LLDCs take to export have
decreased from 9 in 2006 to 8 in 2014 whilst for importing from 11 to 10. The average
time taken by LLDCs to complete export formalities has decreased from 48 days to 42
and to import from 57 to 47 days. However when compared to transit developing
countries where the average days to export is 22 days and 27 days to import, the LLDCs
need to do more to reduce delays in exporting and importing.
The broad application of ICT in reducing paperwork, customs clearance, border crossing,
tracking of shipment that is in transit would have a major role to play to reduce delays in
border and transit procedures and formalities, reduce trade transaction costs, and promote
further international trade. The use of ICT in terms of e-payments would assist in trade
facilitation by eliminating the need to use cash in payments of customs duties, taxes and
fees and reduce time at borders and unnecessary costs. Use of the Single Window
Concept and the Automated System for Customs Data (ASYCUDA) which use ICTs
have greatly improved customs clearance and procedures. This result in improvement in
efficiency and competitiveness of LLDCs’ exports which is crucial for enhancing their
export performance and thereby improved economic growth.
In industry and other business activities, ICT can increase competitiveness and
productivity through more efficient production of goods and services, logistics and new
business processes resulting in higher outputs. ICT can stimulate upstream capacities
(research and development, product design, application development) as well as
downstream services (logistics, transportation, etc). Thus increased ICT use in industry in
LLDCs can improve efficiency and boost GDP growth. According to analysis by the
ITU, improved affordable broadband access to the internet to both households and the
private sector could increase GDP by 1.5% per year. Fuss et. al estimated that when
internet penetration rises by 10 per cent in developing economies, it correlates with an
incremental GDP increase of between one and two per cent.
3
Figure 1: Conceptual links between landlockedness, sustainable development and
the role of ICT
LANDLOCKEDNESS
IMPROVED TRADE FACILITATION
CHALLENGES







Long distances to sea ports
Dependency on transit countries
Remoteness from markets
Inadequate physical/hard infrastructure
Additional border crossings
Logistical and institutional bottlenecks
High trade costs
DIRECT AND INDIRECT IMPACT






ICT AS AN ENABLER FOR
DEVELOPMENT IN LLDCs

Low trade potential
Poor economic growth
Poor productive capacities
Lack of diversification and high
commodity dependence
Lack of resources to invest in social and
environmental pillars of development
High vulnerability to shocks





Reduce documentation at border crossings
Paperless and quicker transactions and
payments
Improved customs procedures
Reduces risks and uncertainties
Cargo tracking


Reduced trade costs
Increased competitiveness
INCREASED TRADE IN SERVICES

Facilitates trade in services, esp.
information-intensive services
INCREASED TRADE IN IT COMPONENTS

Join relevant global value chains
ICT SUPPORTING BROADER
SUSTAINABLE DEVELOPMENT



Use of ICT in all sectors: commerce,
agriculture, industry, health, education,
environment etc
Enhancing entrepreneurship – SMEs
Attraction of foreign direct investment
NATIONAL LEVEL OUTCOMES
 Increased trade and income
 Increased productivity
 Increased human development (education, health)
 Increased productive capacities
 Poverty reduction and increased sustainable development
 Increased resilience to shocks including climate change
ICT can also improve the LLDCs’ capacity to participate in international trade through
increased trade in services, particularly information-intensive services. Examples of such
4
services include various customer services, education, medical transcriptions, tax returns,
web design etc. Production and sale of IT components can also contribute to increased
trade capacity of LLDCs since production of these components are less or not sensitive to
transport costs. Thus LLDCs could join global value chains through their ICT-producing
industries. E-commerce presents an unparalleled opportunity for LLDCs as it lowers the
entry point to emerging global and regional markets by connecting buyers and sellers
mainly through the Internet. However, an effective and predictable trade and transport
system, together with an efficient ICT infrastructure, is a prerequisite to successful ecommerce development.
ICTs can also play a major role in the broader development of LLDCs since they are well
known to be powerful instruments for advancing economic and social development
through the creation of new types of online and offline activities, economic activities,
employment opportunities, education and training, improvements in delivery of healthcare, education and other services, and the enhancement of networking, participation and
advocacy within society. With 3G devices, doctors are remotely monitoring cardiac
patients in rural villages and children everywhere can access educational content in and
out of the classroom, 24 hours a day.
The use of ICT provides positive externalities, enhancing creativity, learning and
problem-solving skills. For many people, their first and only access to the Internet will be
via a mobile device. Such connectivity, combined with low-cost but advanced devices,
provides unprecedented opportunities to empower individuals across society. According
to the UNCTAD, The Information Economy Report 2010, micro-entrepreneurs in many
developing countries including LLDCs are quickly adopting mobile phones to access, for
example, market price information and weather forecasts, transfer funds, pay bills and
save money as well as to stay in touch with suppliers, customers, friends and family and
this greatly improves work productivity.
5
III.
Overview of the trends in ICT development in LLDCs
Significant progress has been made in the last decade in the development of the ICT
sector in LLDCs. However despite the progress, a significant digital divide still exists
between the LLDCs and the other groups of countries (the developed and transit
developing countries). Much more needs to be done to fully harness the potential of ICT
to support development in LLDCs.
National ICT and Broadband policies
All of the LLDCs have formulated national policies on ICT development as shown in
table 1. National ICT and Broadband policies 2 provide the necessary policies and a
framework for their implementation with clear goals. Effective ICT plans are the result of
consultation with all stakeholders including academia, business sector, industry and
NGOs. The ICT plan is essential to clearly indicate development of the ICT sector itself
and its role in fulfilling the larger development needs of the country through its
application in other sectors such as education, health, government, business, and industry.
Since the ICT plan is vital for unleashing the full potential of ICT for development, it is
important for countries to review and update their national ICT plans that so that they can
take into account the changes in the industry and ensure that the plan clearly support the
development of the necessary infrastructure, institutions and regulatory framework.
Effective implementation of national ICT and Broadband policies by the LLDCs is
affected by several challenges including: lack of adequate resources to implement;
limited coordination; lack of supportive infrastructure (ie. electricity), and limited skilled
personnel. It is important for that the international community supports the LLDCs to
address these challenges.
Table 1. Status of National ICT and Broadband policies in LLDCs
Policy
available
Year
Adopted
Afghanistan
Yes
2008
Armenia
Yes
2008
Azerbaijan
Yes
2003
Bhutan
Bolivia
Botswana
Burkina Faso
Burundi
Yes
Yes
Yes
Yes
Yes
2008
2007
2004
2006
2011
Central
African Rep
Chad
Yes
2006
Yes
2007
Country
2
Title
Afghanistan National Development Strategy: 1387 – 1391
(2008 – 2013)
Government of Republic of Armenia Decree No. 35 on
Approving the Information Technology Sector
Development Concept Paper
National Strategy for ICT development of the Republic of
Azerbaijan (2003-2012)
National Broadband Master Plan Implementation Project
National Plan for Digital Inclusion 2007– 2010
Botswana’s National ICT Policy
Lettre de politique sectorielle 2006-2010
Burundi/ ICT : National Projects for Broadband
Connectivity Burundi Community Telecentre Network
Politique, Stratégies et plan d'actions de l'édification de la
Société de l'Information en République Centrafricaine
Plan de développement des technologies de l’Information et
Can also be referred to as national e-strategy and national ICT strategy.
6
Ethiopia
Kazakhstan
Kyrgyzstan
Yes
Yes
Yes
2005
2010
2003
Lao P.D.R.
Lesotho
Malawi
Yes
Yes
Yes
2009
2005
2003
Mali
Moldova
Yes
Yes
2005
2010
Mongolia
Nepal
Niger
Yes
Yes
Yes
2011
2000
2005
Paraguay
Yes
2011
Rwanda
Swaziland
Tajikistan
Yes
Yes
Yes
2006
2007
2003
TFYR
Macedonia
Turkmenistan
Yes
2005
Yes
2003
Uganda
Yes
2009
Uzbekistan
Zambia
Yes
Yes
2002
2006
Zimbabwe
Yes
2005
ICT Policy
Program of ICT Development
The National Strategy on Information and Communication
Technologies for Development of the Kyrgyz Republic
National ICT Policy
ICT Policy for Lesotho
An Integrated ICT-led Socio-Economic Development
Policy for Malawi
National ICT Policy and Plan
Hotărâre cu privire la aprobarea Programului de dezvoltare
a accesului la Internet în bandă largă pe anii 2010-2013
National program on Broadband Network up to 2015
Nepal Information Technology Policy
Plan de développement des Technologies de l’Information
et de la Communication au Niger / Plan NICI du Niger
Paraguay 2013 Conectado y Plan Nacional de
Telecomunicaciones - PNT
Regional Connectivity Infrastructure Program (RCIP)
National ICT Policy.
State Strategy on Information and Communications
Technologies for Development of the Republic of
Tajikistan.
National Strategy for the development of Electronic
Communications with Information Technologies
Strategy of economic, political and cultural development of
Turkmenistan for the period till 2020
Uganda Broadband Infrastructure Strategy National
Position Paper
ICT development programme for the period 2002-2010
National Information and Communication Technology
Policy
National Information and Communication Technology
Policy Framework Connection to the undersea cable
initiatives promotes broadband usage
The Broadband Commission for Digital Development, 2013, Planning for progress: Why
national Broadband Plans Matter, and Various Government reports from internet.
Structure of the ICT sector
The ICT regulatory framework should foster investment and widespread diffusion. ITU
analysis3 shows that there is extensive evidence of a strong correlation between opening
markets to competition and the increase in the number of subscriptions to ICT services.
The exponential increase in the growth of mobile subscriptions and broadband services
was a direct result of opening up the markets to competition.
Table 2 shows that the mobile and broadband internet services have been opened up for
competition in most of the LLDCs. However, foreign ownership of services is restricted
in 12 of the LLDCs and in 60% of the countries, the government is still the operator for
the telephone fixed line.
3
ITU, 2010, Regulatory News, May 2010.
7
A World Bank policy research paper by Borchert et. Al. 2012, stressed that it is important
for the LLDCs to be less restrictive in the ICT sector but instead they should encourage
increased private sector investment and access to telecommunication services.
Table 2. Structure of the ICT Sector in LLDCs
Main
Mobile
Telephone
Telephone
Fixed Line
Service
Operator
Afghanistan
Armenia
Azerbaijan
Bhutan
Bolivia
Botswana
Burkina Faso
Burundi
Central African
Republic
Chad
Ethiopia
Kazakhstan
Kyrgyz
Republic
Lao PDR
Lesotho
Macedonia
FYR
Malawi
Mali
Moldova
Mongolia
Nepal
Niger
Paraguay
Rwanda
Swaziland
Tajikistan
Turkmenistan
Uganda
Uzbekistan
Zambia
Zimbabwe
Internet
Service
Foreign
Ownership
2005
2011
2005
2011
2005
2011
2005
2011
Public
Mixed
Public
Public
Private
Public
Public
Public
Mixed
Public
Mixed
Public
Public
Public
Public
Mixed
Public
Mixed
PC
PC
PC
M
C
C
C
C
C
PC
PC
PC
C
C
C
PC
C
C
PC
C
C
PC
C
C
C
C
C
PC
C
C
C
C
C
PC
C
-
A
A
R
R
R
A
R
A
-
A
A
R
R
No
A
R
A
-
Public
Public
Mixed
Mixed
Public
Public
Mixed
Mixed
C
M
C
C
M
PC
C
C
M
C
C
M
C
C
A
No
R
R
R
R
R
Public
Mixed
Mixed
Mixed
Mixed
Mixed
PC
C
C
PC
C
C
PC
C
C
PC
C
C
R
A
A
R
A
-
Public
Mixed
PC
PC
PC
PC
R
R
Public
Mixed
P
P
C
C
A
Public
Public
C
C
C
C
A
A
Mixed
Mixed
P
P
C
C
R
R
Public
Mixed
P
C
C
C
R
A
Mixed
Mixed
C
C
M
M
R
R
Public
Public
C
C
C
C
R
A
Mixed
Mixed
C
C
C
C
A
Public
Public
M
M
C
PC
No
No
Mixed
Mixed
Public
Public
C
C
Mixed
Mixed
PC
C
C
C
A
A
Public
Public
C
C
Public
Mixed
PC
C
PC
C
R
R
Public
Public
C
PC
C
C
R
R
Source: World Bank and ITU, 2013, “The Little Data Book on Information and Communication
Technology”
Notes: (a). Level of competition: C – competition; PC – partial competition; M – monopoly.
8
(b). Foreign Ownership: No – not allowed; R – restricted; A – allowed.
Fixed-telephone subscription
The growth in traditional telecommunications – fixed-telephone users has been relatively
low in LLDCs. LLDCs have a significantly lower level of subscriptions per 100
inhabitants when compared to both developed, and developing countries and the world
average as shown in Figure 2. In the past decade however, while the other groups have
started to decrease the number of subscriptions, the LLDCs as a group has witnessed
some increase.
Figure 2. Fixed-Telephone subscriptions (per 100 inhabitants)
50.0
45.0
40.0
35.0
Developed
30.0
Developing
25.0
World
20.0
LLDCs
15.0
10.0
5.0
2005 2006 2007 2008 2009 2010 2011 2012
Source: ITU World Telecommunication/ICT Indicators Database
Mobile-cellular subscriptions
The LLDCs have made remarkable progress in increased use of cellular telephony which
has overtaken use of fixed-line telephones. The cellular subscriptions per 100 inhabitants
in LLDCs increased from 6.4 in 2003 to 59.4 in 2012. However, as illustrated by figure 3,
the LLDCs as a group still lag behind all the other groups of countries.
9
Figure 3. Mobile cellular subscriptions (per 100 inhabitants)
140.0
120.0
100.0
Developed
80.0
Developing
60.0
World
LLDCs
40.0
20.0
2005 2006 2007 2008 2009 2010 2011 2012
Source: ITU World Telecommunication/ICT Indicators Database
Internet Users
The number of internet users is growing in the LLDCs. The average percentage of
individuals using the internet for LLDCs improved from 2.2% in 2003 to 13.3% in 2012.
However, they lag far behind the developed countries and other groups of countries.
Figure 4. Percentage of individuals using the Internet
80.0
70.0
60.0
Developed
50.0
Developing
40.0
LLDCs
30.0
Transit
World
20.0
10.0
0.0
2005 2006 2007 2008 2009 2010 2011 2012
Source: ITU World Telecommunication/ICT Indicators Database
10
Fixed (wired) broadband subscriptions
There has been increased use of fixed broadband access which refers to high-speed fixed
(wired) access to the public internet at downstream speeds equal to, or greater than, 256
kbit/s. This includes DSL, Cable, Fibre and other fixed (wired) broadband subscriptions.
Fixed wired broadband subscriptions in LLDCs grew from 0.01 per 100 inhabitants in
2003 to 1.1 in 2012. However LLDCs lag way behind the other groups when compared
with the 2012 average of 5 in developing countries, 26 in developed countries and 6.2 in
transit countries (Figure 5). The trend reflects the increasing proportion of mobile data
traffic offloaded on fixed (wired) networks, for example through Wifi connections. This
takes some of the pressure off mobile networks, but at the same time requires improved
infrastructure which might explain why LLDCs are performing less efficiently.
Figure 5. Fixed (wired) broadband subscriptions (per 100 inhabitants)
30
25
Developed
20
Developing
15
LLDCs
Transit
10
World
5
0
2005 2006 2007 2008 2009 2010 2011 2012
Source: ITU World Telecommunication/ICT Indicators Database
Although fixed (wired) broadband uptake is growing and reflects the significant
investments made in optical fibre infrastructure in many LLDCs, the strong link between
broadband uptake and broadband affordability makes it very difficult for these countries
to develop their ICT infrastructure since broadband prices are higher in LLDCs.
Furthermore not many people in LLDCs own ICT equipment such as computers and
televisions. Data on ownership of ICTs is not available for all LLDCs as shown in annex
1. Based on data from available countries, in 10 LLDCs less than 20% of households own
a computer whilst in the developed and developing countries the averages are 76% and
28% respectively. It is important for LLDCs to systematically collect ICT statistics and
indicators and report regularly.
ICT Development Index
The ITU calculates the ICT Development Index (IDI) which is a composite index
combining 11 indicators into one benchmark measure that serves to monitor and compare
11
developments in ICT across countries4. The IDI is divided into three sub-indices: (a)
Access sub-index, which captures ICT readiness and includes five infrastructure and
access indicators; (b) Use sub-index, which captures ICT intensity and includes three ICT
intensity and usage indicators; and (c) Skills sub-index, that captures ICT capability or
skills as indispensable input indicators5. The IDI is presented on a scale of 1 to 10.
When compared to transit and developed countries, LLDCs have lower values of the
aggregate IDI (see table 3). LLDCs have the lowest IDI in the access sub-index, which
measures ICT infrastructure and readiness – a basic requirement for using and benefiting
from ICTs. This indicates that they have limited access to ICT infrastructure, including
fixed and mobile telephony, internet and broadband when compared to the other
countries and are not capable of fully exploiting ICT to support their development. Seven
out of the 15 countries with the lowest IDI ranking in 2012 are LLDCs. It is important
that continued work be done to improve ICT development in LLDCs.
Table 3. ICT Development Index LLDCs Compared to other groups of countries
LLDC
2.66
Overall IDI
Access sub-index
Use sub-index
Skills sub-index
2.99
1.21
4.9
2012
Transit
2.94
3.18
1.24
5.1
Developed
6.8
7.1
5.5
8.7
Source: ITU Measuring the Information Society Report 2013
Within the LLDCs, great diversity in IDI performance among the countries exists. As
shown in figure 6, some countries such as Kazakhstan, Macedonia and Azerbaijan, have
higher levels of IDI.
4
5
ITU, 2013, “Measuring the Information Society”.
ITU, 2013, “Measuring the Information Society”.
12
Figure 6. ICT Development Index (IDI) for some LLDCs in 2012
Kazakhstan
5.74
TFYR Macedonia
5.19
5.01
Azerbaijan
Moldova
4.74
Armenia
4.45
3.92
Mongolia
Bolivia
3.28
Paraguay
3.21
Uzbekistan
3.12
Botsw ana
3
2.52
Zimbabw e
Sw aziland
2.44
Bhutan
2.4
2.1
Lao PDR
Lesotho
1.95
Uganda
1.81
Zambia
1.77
Rw anda
1.66
1.54
Mali
Malaw i
1.43
Ethiopia
1.24
1.18
Burkina Faso
Chad
1.01
1
Central African Republic
Niger
0.99
0
2
4
6
8
Source: ITU Measuring the Information Society Report 2013
Dynamic countries case examples
Each year the ITU’s Measuring the Information Society report identifies the most
dynamic countries, which have recorded above-average improvements in their IDI rank
or value over the past 12 months. In 2012, some of the LLDCs that were featured include
Mongolia and Zimbabwe and in 2011 Armenia was featured. Kazakhstan was the LLDC
with the highest IDI in 2012. Excerpts of the features are included as case studies in this
issues note. Boxes 1, 2, 3, and 4 feature the dynamic case examples.
Box 1. Armenia’s surge in Internet use
The country that improved most in 2011 was Armenia, which moved up 14 places to 72nd, while
increasing its IDI score by 31 per cent. Mobile penetration increased from 75 to 125 per cent, and
household access to computers and the Internet also rose significantly. These factors plus the
available fixed- and mobile-broadband services led to growth in use. An increase in international
bandwidth from 1 083 Mbit/s to 10 547 Mbit/s and growth in mobile-phone subscriptions have
contributed to greater access.
Fixed-broadband penetration was around 3 per cent with signs of growth. The Ministry of Economy
of Armenia plans to expand the country’s high-speed broadband network through a mixture of fibre-
13
optic, WiMAX and satellite technologies. The country’s main operator ArmenTel extended its 3G
footprint, deploying additional 3G base stations in new regions so as to improve coverage.
According to Pearce 2011, the Armenian Government’s programme “Computers for All” may have
influenced the sharp increase in internet use in 2011. The programme was launched in September
2009 and it allows Armenian citizens to rent desktop and laptop computers at a low price. The
programme met its goal of providing 30% of Armenian residents with a portable computer and also
met its goal of expanding computers to rural Armenians. Furthermore, most Armenians began using
smartphones to access internet in 2009 and 2010.
Source: ITU Measuring the Information Society 2011 report, Katy Pearce, 2011, Internet Penetration
in Armenia Tripled in the past 2 Years: Caucus barometer, Epress news, 4 December 2011.
Box 2. A relatively strong ICT framework: the case of Kazakhstan
Kazakhstan has been performing better than the rest of the LLDCs, with an IDI level of 5.74 in 2012.
In terms of fixed-line, Kazakhstan has a relatively strong telecom sector with a penetration of 20%.
The national operator, Kazakh Telecom, launched a programme to modernize the country’s
telecommunication system. The plan includes the modernization of the company’s rural telecom
network by introducing the use of digital telephone exchange. Moreover, satellite facilities have been
installed in Kazakhstan’s rural areas. The mobile market soared from 3.2 million subscribers in 2005
to 14.9 million subscribers by 2009. Internet use seems to be still lacking, as the quantity of Internet
users in 2009 merely exceeded 3,15 million users that corresponds to density of 19,8 users per 100
inhabitants.
An interesting project is the one initiated in 2003 by the Customs Control Agency of Kazakhstan
called the “Programme of Modernization of Customs Services” with the objectives of the
simplification of customs procedures and the facilitation of transit trade of neighbouring countries.
The long-term goal however is the establishment of an electronic customs information system, or ecustoms, to create a uniform customs information environment for custom services, provide webbased services and enable electronic declaration of goods.
The President of the Republic of Kazakhstan gave instruction to establish the Integration Information
System «Single Window on Export-Import Operations», the Governmental Order of 3.30.2011,
№288. The Concept of Creation of the Single Window and Plan of Measures for Implementation
thereof in 2011-2013 were developed and approved by the Enactment of the Government of the
Republic of Kazakhstan of July 3, 2011 No.771.
This initiative would be substantial in helping ease the challenges associated with the geography of
Kazakhstan and it shows how the development of ICT infrastructure is essential for the particular
situation of Landlocked Developing Countries.
Source: UNESCAP, 2006, “Guidelines on ICT Application for Trade and Transport Facilitation”;
EECA, 2011, “Policy Dialogue in ICT to an Upper Level for Reinforced EU-EECA Cooperation”.
Asia Pacific Trade Facilitation Forum 2011
Box 3. Mongolia Case
According to the ITU Report of 2013, Mongolia significantly improved its IDI levels in 2012. Both
the access and the use sub-index values increased by more than the global average. In terms of ICT
14
household connectivity, the progress was remarkable: the percentage of households with a computer
increased from 24% in 2011 to 30% in 2012, and the proportion of households with Internet access
augmented in equal measure, from 9% in 2011 to 14% in 2012.
These improvements rely on the fact that in the last decade the Government of Mongolia has been
giving ICT a high priority as a catalyst and an engine for socio-economic development. Among the
various initiatives, Mongolia introduced a new customs ICT system for trade facilitation in June
2003, a Window-based replacement known as the Mongolian Customs Automated Data Processing
System (GAMAS). The goal of the GAMAS was to create a unified information system that covers
all data within the customs system, interfacing other government agencies, banks, freight forwarders
and customs brokers, and that computerizes the tasks of estimation, calculation and duty assessment
among others. Subsequently, in October 2004, the Information and Communications Technology
Authority was established with the mission of “creating a knowledge-based information society in
Mongolia” (Resolution 207, Government of Mongolia). The Authority is responsible for all ICT
policies, their coordination and their implementation under the direct auspices of the Prime Minister.
In the same period, the Government’s adoption of “ICT Vision 2010” drafted the E-Mongolia
Programme, which strengthened the legal environment for e-commerce. The National Broadband
Programme, to be implemented by 2015, is aimed at providing affordable broadband access. All
these initiatives allowed Mongolia to be one of the most advanced in the adoption of ICT for trade
facilitation among LLDCs of the Asian region.
Sources: UNESCAP, 2006, “Guidelines on ICT Application for Trade and Transport Facilitation”; ITU, 2013,
“Measuring the Information Society”.
Box 4. Zimbabwe case study
Zimbabwe is one of the most dynamic countries in the IDI of 2012, having made significant progress
on both the access and the use sub-indices of the IDI. In both sub-indices, it is the mobile/wireless
indicators where the most progress was made: while mobile-cellular penetration increased from 72%
in 2011 to 97% in 2012, the wireless-broadband penetration doubled from 15% to 30% over the
same period.
The use and diffusion of ICT for national development has been reflected in various government
instruments such as the Science and Technology Policy of 2002. The Postal and
Telecommunications services were provided and regulated under the then Ministry of Transport and
Communication which culminated in the establishment of the sector regulator, the Postal and
Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) in 2000 (Postal &
Telecommunications Act, Chapter 12.05). This bill effectively ended the monopoly of the Post and
Telecommunications Corporation. In September 2007, the Government launched the National ICT
Policy Framework which led to the establishment of the Ministry of ICT (MICT) that resolved a
number of the issues related to divided responsibilities. At the present time, regulation of the ICT
sector is divided between the Broadcasting Authority of Zimbabwe (BAZ), POTRAZ, and the Media
and Information Commission (MIC). In 2012, POTRAZ has started to set up base stations in the
country’s underserved areas, funded through the Universal Services Fund (USF). Statistics from
POTRAZ show that the highest share of investments in the telecommunication and postal sector was
in data and Internet services (78% of total investments at the end of 2012).
These initiatives among others allowed Zimbabwe to have the second-highest penetration rate in
Africa, just after Ghana (34%).
Sources: ITU, 2012, “Measuring the Information Society”; Zimbabwe Ministry of Information Communication
15
Technology, “Strategic Plan 2010-2014”; African Development
Communications Technology Report”, Chapter 12 – Zimbabwe.
Bank,
2012,
“Information
and
Trends in ICT and GDP per capita
ICT has the potential to increase economic growth through improved efficiency and
productivity growth as discussed in section 2. Figure 7a shows the relationship between
GDP per capita and percentage of Internet users in LLDCs in 2003 and in 2011 and
figure 7b shows the same for transit countries. All the figures show a positive relationship
between Internet use and per capita GDP. They also show that over time some countries
have increased their GDP per capita and ICT use. In spite of the clear developments
achieved since 2003, the divide between the LLDCs and transit countries still remains
substantial: while transit countries have reached GDP per capita levels above $14 000
with a corresponding percentage of more than 50% of internet users in 2011, apart from a
few outliers most LLDCs remained at a level of GDP per capita below $5000 and have a
low percentage of internet users.
Thus it is important for the LLDCs to improve the amount of use of the internet, as it
could enhance their ability to accelerate their economic development.
Figure 7a. GDP per capita and Percentage of Internet users in LLDCs
LLDCs in 2003
16000
GDP per capita
14000
12000
10000
8000
6000
4000
2000
0
0
10
20
30
40
50
60
% Internet users
LLDCs in 2011
16,000
GDP per capita
14,000
12,000
10,000
8,000
6,000
4,000
2,000
-
0
10
20
30
40
50
60
% Internet users
Source: ITU World Telecommunication/ICT Indicators Database and World Bank Development Indicators
16
Figure 7b. GDP per capita and Percentage of Internet users in Transit countries
Transit countries in 2003
16,000
GDP per capita
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
0
10
20
30
40
50
60
% Internet users
Transit countries in 2011
16,000
GDP per capita
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
0
10
20
30
40
50
60
% Internet users
Source: ITU World Telecommunication/ICT Indicators Database and World Bank Development Indicators
IV.
The challenges faced by LLDCs in improving access and use of
ICTs for development
Despite some encouraging developments in the use of ICT in LLDCs, there is growing
concern that LLDCs are not progressing rapidly enough in terms of overcoming the
digital divide. The digital divide is at its most pronounced between the LLDCs and the
developed world, the developing countries and the transit countries. The foregoing
analysis also shows that there is also a digital divide within the LLDCs themselves.
Within the LLDCs there is digital divide between the urban and rural areas and between
various economic and social sectors (including gender). The bulk of telecommunications
infrastructure does not extend beyond the largest cities and therefore does not reach the
majority of the population. This section explores some of the reasons for the lack of rapid
development of ICT in LLDCs and its limited use in addressing the challenges associated
with landlockedness.
Infrastructure and equipment gaps
ICT is a dynamic sector that is continually changing and requires updating. Most of the
fixed telephone networks in LLDCs are plagued with inadequate capacities, utilize old
and obsolete technology and in many instances suffer from network failures. Under these
conditions, operation and maintenance of the networks become difficult and this results
in poor quality of service. Mobile technology while it has grown rapidly has
infrastructure challenges such as lack of adequate transmission infrastructure to increase
17
coverage and in some cases duplication or parallel infrastructures by different operators.
Thus both fixed and mobile telephone networks have infrastructure gaps that need
addressing if service provision is to be increased in LLDCs.
There are also infrastructure gaps for broadband services that need to be addressed and
intraregional connectivity and sufficient undersea cables for connecting LLDCs to other
areas of the world and to the rich information resources of the global internet are
required. Since LLDCs are not near the coast, their biggest challenge is to invest in ICT
infrastructure that passes through neighbouring and coastal countries in order to access
international network. Work has been going on in Africa to complete the network of
submarine cables surrounding the continent. For example the Eastern African Submarine
Cable System (EASSy) an undersea fibre optic cable system connects countries
in Eastern Africa to the rest of the world from South Africa to Sudan, with landing points
in nine countries and is connected to at least ten landlocked countries which no longer
have to rely on satellite internet access to carry voice and data services. EASSy is the
highest capacity system serving sub-Saharan Africa, with a 4.72 terabit per second
(Tbit/s), 2 fibre-pair configuration. The cable entered service on 16 July 2010, with
commercial service starting on 30 July 2010.
There is also lack of strategy on infrastructure sharing – there are many instances where
operators build parallel infrastructure on same routes thus making it more expensive for
the end users who have to ultimately pay for these investments through the end user
pricing.
Inadequate availability of investment capital. There is low international interest to invest
in ICT infrastructure in LLDCs because the infrastructure development costs are high.
Pricing and affordability
One of the main barriers faced by LLDCs is the higher costs of ICT. The costs for
LLDCs to access high speed international internet bandwidth and their fixed (wired) broadband monthly subscription charges are very much higher than coastal countries that
are located close to the submarine communications cable that are laid on the seabed. The
ITU calculates the ICT Price Basket (IPB) which combines the average cost of fixed
telephone, mobile cellular and fixed broadband internet services and computed as a
percentage of average Gross National Income (GNI) per capita. The trends in the IPB in
LLDCs shows that there has been a decrease in the prices of the services, however, the
IPB level of LLDCs is still much higher than transit countries and developed countries
(see figure 8). While developed countries and transit countries had a IPB of 1.5 and 17.19
in 2012 respectively, the LLDCs were still facing an average of 23.8 which is about 30%
more than the transit countries.
18
Figure 8. ICT Price Basket (IPB), 2008 and 2012
40
35
30
34.8
25
20
23.8
2008
25.2
2011
15
17.19
10
5
2
1.5
0
LLDCs
Transit
Developed countries
Source: ITU Measuring the Information Society Report, 2013. Note: The IPB is a composite basket that
includes three tariffs sets, referred to as sub-baskets: fixed telephone, mobile cellular and fixed broadband
Internet services. The IPB is the value derived from the sum of the price of each sub-basket as a percentage of a
country’s monthly GNI per capita, divided by three.
The IPB is also divided into 3 sub-indexes: (a) fixed-telephone sub-basket as a % of GNI
per capita; (b) mobile-cellular sub-basket as a % of GNI per capita; (c) and fixedbroadband sub-basket as a % of GNI per capita. The difference between the LLDCs and
transit countries is significant. Apart from the fixed-telephone costs, where the difference
between the two groups is of about 3 percentage points, mobile-cellular and fixedbroadband costs are almost as twice as expensive in LLDCs compared to transit countries
(Figure 9), with the former reaching a level of almost 46% of GNI per capita in 2012 for
the fixed-broadband sub-basket.
19
Figure 9. IPB Sub-baskets as a percentage of GNI per capita, 2012
50
45
40
35
30
25
LLDCs
20
Transit
15
10
5
0
Fixed-telephone
Mobile-cellular
Fixed-broadband
Source: ITU Measuring the Information Society Report, 2013
There is need to find ways of reducing the cost of broadband for LLDCs. The LLDCs
have an option of connecting directly to satellite since it is not restricted to the sea.
However the costs of utilizing satellite communication are very high and most of the
LLDCs cannot afford.
Azerbaijan is one of the LLDCs that has the lowest IPB in 2012 and box 5 features the
country’s case example.
Box 5. Competitive ICT Price Basket in a Landlocked Developing Country: the case of
Azerbaijan
According to ITU Statistics, Azerbaijan has the lowest IPB among all other LLDCs, with a
level of 1.8 in 2012. Azerbaijan’s ICT sector in particular the internet market has doubled in
every three years recording a 20%-25% increase in the last 10 years, the Ministry of
Communication and Information Technologies has said in its annual report.
The government has indeed adopted several initiatives in order to reach the goal of
developing the ICT sector:
 In 2004, the Ministry of Communications and IT with new leadership gets
established
 In 2005, a State Programme on development of communication and IT is adopted for
the period of 2005-2008
 In 2006, ICT is announced as the second priority after Oil by President of Azerbaijan
The Republic of Azerbaijan is moreover following several projects such as the “National
ICT Strategy for development of Azerbaijan” (2003-2012) and the “State Program on
provision of secondary and primary schools with the information and communications
20
technologies” (2005-2007).
The government acknowledged that the development of ICT infrastructure is addressed in
order to provide and sustain a fair, transparent and competitive marketplace, achievements
that can enhance and ease the particular situation of Landlocked Developing countries.
According to the report of the World Economic Forum ‘Global information technologies
2013’, Azerbaijan holds 56th place among 144 countries for ‘Networked Readiness Index’.
Source: Ministry of Communications and Information Technologies of Republic of
Azerbaijan, 2007, Presentation by Dr. Rufat Gulmammadov, Head of Information Society
Development Department.
Policy and regulatory challenges
 As noted earlier some LLDCs do not have updated national ICT and broadband
policies and this is a major obstacle in enhancing ICT development.
 Increasingly there is need for convergence policy for the IT, broadcasting and
telecommunications sectors that some LLDCs still need to work on.
 Lack of a conducive legal environment to support ICT development and encourage
private sector participation.
 Conflicting mandate/overlap of regulatory bodies e.g. telecom and broadcasting
commissions, telecom and competition commissions.
 Capacity constraints in policy formulation and of regulatory institutions. The full
complement of skills – technical, economic, legal and others are required.
 Lack of adequate data and information: It is difficult to develop and effectively
implement, monitor and evaluate comprehensive policies on ICT due to lack of data.
Regional or sub-regional level challenges
 Some regions with LLDCs still lack a common and harmonized policy and
regulatory framework.
 Lack of an established mechanism for countries to share information and
experiences.
21
V.
Conclusions and Recommendations
LLDCs have disadvantages related to their geography which make them incur high trade
costs thereby restricting their competitiveness and trade activity on the international
markets. They also have structural constraints related to their limited ability to trade and
integrate into the international markets and generate adequate resources to invest in their
sustainable development. These constraints include high trading costs, limited productive
capacities, declining value addition in manufacturing and agriculture, and heavy reliance
on undiversified primary commodities. ICT can act as a multiplier for economic growth
in LLDCs by improving trade facilitation, making supply chains more efficient, financial
transactions faster, accelerate the flow of goods and services across national borders, and
increase productivity in all sectors resulting in higher output.
The following recommendations are put forward to support the LLDCs to fully harness
ICT for their development.
National ICT and Broadband Policies
LLDCs should develop or update their national ICT and broadband plan or strategy and
ensure allocation of adequate resources for its implementation. The plan should include
how to develop a modern ICT infrastructure and internet access that can provide
universal access. Such a strategy should be anchored in strong regulatory frameworks and
domestic ICT laws that conform to international and regional standards, including the
Global ICT policy.
The national ICT plan should fully reflect the cross-cutting nature of ICTs and their
pivotal role in national development. LLDCs should include in their national ICT plan a
strategy of how ICT can be used to promote trade facilitation and address the major
challenges associated with landlockedness.
There is need to forge partnerships between the governments, inter-governmental
organizations and the private sector in developing and implementing ICT plans.
ICT governance
Create and support enabling environments that promotes sound economic and political
governance. In particular, improve ICT governance and affordability by ensuring
freedom of expression, providing a competitive framework for the application of ICT,
ensuring compliance through independent regulation and favoring low-cost, technologyneutral and open source solutions; Link the creation of an enabling ICT environment to
national planning and strategic frame-works, including performance monitoring and
dialogue processes. Speed up the process of reforms and implementing the provisions of
Acts already adopted into law.
Increased investments from the private sector
ICT infrastructure needs are significant in all regions with LLDCs. Investments in ICT
have traditionally been the domain of the public sector. It has however become very
22
obvious in the last decade that public investments will not be sufficient to meet the
demand for growth.
When market players make investments in new infrastructure and technology it is
principally the demand from customers, their willingness to pay and the competitive
situation that will influence when and where the investments are made. The challenge is
to bring about functioning competition and to provide market players with the conditions
they need to invest, so that the investments are made broadly and across the whole
country. Thus policy makers in LLDCs should promote investment in the ICT sector by
creating an enabling environment with investment-friendly policy frameworks, regulatory
certainty and fair competition.
Encourage public private partnerships through providing technical assistance.
Rapid development of the ICT infrastructure in LLDCs
Improve the access of LLDCs to international high-capacity submarine fibre-optic cables,
low-price international voice services, higher-speed internet access, and high-bandwidth
backbone networks to connect towns and cities within countries, across borders. More
efficient technology is required to meet market demand and requirements for access to
high-quality broadband. International community and regional cooperation should
support the LLDCs to be able to access international broadband networks at lower prices.
LLDCs and their neighbours should promote implementation of infrastructure sharing
between transport, energy and ICT sectors.
Improved data collection
Collect ICT statistics and indicators, based on internationally agreed methodologies, and
report regularly at all levels – national, regional and global so as to guide policy decisions
and monitor the effectiveness of past policies.
Improved ICT use to promote trade facilitation
LLDCs and transit countries should increase the utilization of ICT to facilitate trade and
transport, in conjunction with harmonization of customs systems and documentation.
Using ICT to spur economic growth in manufacturing and industry
LLDCs should utilize ICT to improve efficiency and increase productivity in all
production sectors especially industry, agriculture and mining and enhance processing
and value addition in order to reduce commodity dependence.
Promote the use of ICT to support productivity and competitiveness of the services sector
since it is of strategic importance to overcome landlockedness through its potential
contribution to trade and development.
Given that informal and formal small and medium enterprises (SMEs) are the backbone
of broad-based economic growth, it is crucial to mainstream the use of ICT for micro,
small and medium enterprises.
23
Enhanced use of ICT to support broader sustainable development
Promote the use of ICT in disaster preparedness, early warning, rescue, mitigation, relief
and response. Intensify ICT use in all sectors – ie. Promote E-Business, e-Government, eBanking, e-Trading, e-Commerce; cyber security and in delivery of social services such
as health, and education.
Capacity-building
Benefiting from ICTs requires substantial complementary investments in learning, and
reorganisation by all stakeholders. Implement capacity-building programmes to increase
ICT literacy in LLDCs, including women, children, the elderly and people with
disabilities. Encourage the introduction of ICT at all levels of education. Develop a
workforce and manpower with high levels of ICT proficiency and expertise.
Enhanced regional ICT connectivity
 Build or strengthen sub-regional and regional broadband infrastructure.
 Ensure and support regional co-ordination in the planning of new infrastructure and in
assuring maintenance of existing infrastructure.
 Encourage harmonization of ICT policy and regulatory frameworks at sub-regional
level as a catalyst towards establishment of regional markets. It will also ease
implementation of cross-border projects and attract further investment in the sector.
 Promote harmonized regional customs and border crossing procedures to provide for
faster transit and border crossing of goods from LLDCs.
 Support creation/strengthening of regional funds to encourage private public
partnership.
 Knowledge and experience sharing amongst the LLDCs themselves is very valuable
and allow cooperating partners to benefit from each other’s experiences. It is
important that efficient mechanisms to document, disseminate and share best
practices are set up at regional and global levels.
Support from Bilateral and multilateral development partners
Bilateral and multilateral development partners should increase their technical and
financial assistance to support ICT development in LLDCs. In particular the following
areas:
 Support LLDCs to access international optical fibre networks by funding the
deployment of a terrestrial information superhighway to boost access and
affordability regarding fixed broadband Internet services;
 Improve the ability of LLDCs to use satellite by lowering acquisition costs
through space segment consolidation efforts;
 Facilitate access to technologies and transfer of know-how on ICTs.
 Support the Aid for Trade initiative, giving special consideration to the
requirements of LLDCs.
24
South-South cooperation and triangular cooperation is important as a means for
diversified trade opportunities, additional foreign direct investment flows that contribute
to improved ICT infrastructure and the achievement of sustainable development of
LLDCs, as well as cooperation in the transfer of appropriate technology is important.
United Nations, International, Regional and Sub-regional organizations
Organizations of the United Nations system, and other international organizations, the
Regional Development Banks, and Regional Economic Communities, are invited to
provide more and better targeted technical assistance to support accelerated ICT
development in LLDCs.
International and regional organizations in particular OHRLLS, ITU, UNCTAD, World
Bank, the International Think Tank for LLDCs, Regional Banks and others should
provide LLDCs with technical assistance on how to utilize ICT to lower trading costs,
boost trade, and stimulate structural transformation. They should also promote sharing of
best practices and advising on new technologies.
25
References
Borchert Ingo, Batshur Gootiiz, Arti Grover Goswami, Aaditya Mattoo, 2012,
Landlocked or policy-locked? How Services Trade Protection Deepens Economic
Isolation, World Bank Policy Research Working Paper 5942, Washington DC.
The Broadband Commission for Digital Development, 2013, Planning for progress: Why
national Broadband Plans Matter, Joint Publication of ITU and CISCO.
EECA, 2011, Policy Dialogue in ICT to an Upper Level for Reinforced EU-EECA
Cooperation.
Fuss Melvyn, Meloria Meschi and Leonard Waverman, 2005, The Impact of Telecoms
on Economic Growth in Developing Countries in Africa: The Impact of Mobile Phones,
Vodafone Policy Paper Series 2, 2005.
Jorgenson, D.W., Stiroh, K.J. 2000b, Raising the speed limit: U.S. economic growth in
the information age. Brookings Papers on Economic Activity 1,
ITU, 2013, Measuring the Information Society 2013 Report, Geneva.
MacKellar L., A. Wörgötter and J. Wörz, 2000, Economic Development Problems of
Landlocked Countries, Transition Economics Series No. 14
ITU, 2011, Measuring the Information Society 2011 Report, Geneva.
UNESCAP, 2006, Guidelines on ICT Application for Trade and Transport Facilitation,
Bangkok.
UN-OHRLLS, 2013a, The Development Economics of Landlockedness: Understanding
the development costs of being landlocked, New York.
UN-OHRLLS, 2013b, Report of the Secretary General to the 68th session of the General
Assembly: Implementation of the Almaty Programme of Action, New York.
World Bank, 2013a, Doing Business 2013 Report, Washington DC.
World Bank, 2013b, The Little Data Book on Information and Communication
Technology, Washington DC.
26
Annex 1: Core indicators on access to, and use of, ICT by households and individuals, latest available
data (2008-2012)
Percentage of households with
Radio
Year
of
latest
data
TV
Year
of
latest
data
Computer
Year
of
latest
data
Internet
access
at home
1
Afghanistan
...
...
2
Armenia
...
98.7
2011
28.7
2011
22.2
2011
...
3
Azerbaijan
99.6
2011
100.0
2011
39.0
2011
42.0
2011
48.0
4
Bhutan
62.0
2008
37.7
2008
16.4
2012
11.6
2012
...
5
Bolivia
77.3
2009
76.7
2009
24.0
2011
7.4
2011
35.6
6
Botswana
76.4
2008
56.8
2008
...
7
Burkina Faso
...
18.4
2009
8
Burundi
...
...
0.1
9
...
...
...
10
Central
African Rep.
Chad
...
...
...
11
Ethiopia
...
...
12
Kazakhstan
...
86.8
13
Kyrgyzstan
...
...
...
14
Lao P.D.R.
...
...
15
Lesotho
...
...
16
Malawi
53.2
17
Mali
18
Moldova
73.0
2009
19
Mongolia
9.2
20
Nepal
21
Niger
22
2010
...
Year
of
latest
data
...
Percentage of individuals who used
ICTs
Comp
Year
Mobile Year of
-uter
of
latest
latest
data
data
...
...
...
2011
83.3
2009
58.6
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
2009
46.0
0.1
2009
...
2010
4.0
2012
2009
6.2
2009
37.0
89.3
2010
2008
38.6
2008
9.9
82.0
2010
62.6
2010
49.4
2011
8.7
2011
31.3
93.0
2010
57.9
43.0
Paraguay
23
Rwanda
24
Swaziland
...
...
...
25
Tajikistan
...
...
...
26
...
...
53.6
27
TFYR
Macedonia
Turkmenistan
...
...
...
...
...
...
28
Uganda
...
...
...
...
29
Uzbekistan
...
...
...
...
...
...
30
Zambia
...
27.0
2009
...
...
...
...
31
Zimbabwe
36.3
2011
5.9
...
...
...
62.8
37.9
2008
2011
5.5
2012
2011
2.0
2011
...
2010
27.0
2009
42.0
30.3
2012
14.0
2012
...
2010
7.3
2011
3.3
2011
...
2008
1.5
2011
0.1
2008
0.9
87.7
2010
19.3
2010
13.8
2010
...
...
5.3
2010
2.0
2011
...
...
...
...
...
...
...
...
6.4
2009
2010
2011
46.1
4.0
2010
2010
57.7
2011
...
...
...
2009
...
2009
...
2009
78.0
2009
...
...
2008
...
...
2010
78.7
Source: ITU World Telecommunication/ICT Indicators Database. ... Data not available
27
2008
Annex 2: Examples of initiatives by The Econet Wireless Zimbabwe
A. EcoCash
Ecocash is an innovative mobile payment solution that enables Econet customers to
complete simple financial transactions such as sending money to loved ones, buying
prepaid airtime for yourself or other Econet subscribers and paying for goods and
services.
With the EcoCash account one can do the following: Deposit money/Cash-In;
Withdraw money/ Cash-Out; Transfer (send) money to registered EcoCash customers
only; Buy Econet prepaid airtime, text, data bundles or pay a direct connect account
for yourself and other Econet subscribers; Pay bills; Pay merchants for goods and
services; and Link your EcoCash to your bank account.
B. Econet Disease Surveillance Network
Our research and development team, working with partners in America, have developed a
test kit, which we can install at any rural clinic, or hospital. A blood sample, through a
simple finger prick, is taken, and placed on a cartridge containing a strip of absorbent
paper impregnated with antibodies. If the person has an infection, the paper changes
colour. The paper is then photographed using a simple cell phone camera, supplied as
part of the kit. The picture of the sample is beamed over our network, to a special
computer, which processes it, and provides a diagnosis, which is sent back to the remote
clinic, in a matter of seconds, by SMS. The computer also collates the data, to enable
public health officials, to know the spread of diseases, in the country. So, far we have the
capacity to test for 5 diseases: malaria, HIV, dengue, influenza and hepatitis B. The test
kit, not only enables thousands of people to be tested, and treated, but it also allows
governments, to be able to monitor the movement real time of any of these diseases,
enabling them to react quickly to major outbreaks. We are currently testing this system,
and it is our hope to eventually get such systems installed in every African country. Our
vision is that within 10 years, people will be testing themselves for diseases, using their
cell phones... Just add a little innovation, to what you do best.
C. Energize the Chain Program
Project seeks to improve the efficiency of vaccine storage and delivery systems in
Zimbabwe by supplying energy efficient vaccine-storage refrigerators to rural clinics
with limited access to reliable power supply, and leveraging electricity generated at
cellphone towers to power vaccine-storage refrigerators. Econet Wireless Zimbabwe in
partnership with the National Healthcare Trust of Zimbabwe, kicked off the initiative in
June 2011 with a series of development activities including stakeholder engagement, site
design, vaccine-storage refrigerator evaluation, and site selection. The first 10 sites were
delivered by early 2012 in six Provinces of Zimbabwe. An additional 100 sites are in
different stages of progress, with 100 more budgeted for the next financial year.
This pioneering approach dramatically increases efficiency within the vaccine delivery
system while simultaneously contributing to a greener environment through the
installation of energy efficient, ozone-friendly refrigerators at peripheral points in the
28
vaccine cold chain. The refrigerators are powered by renewable energy, in large part
solar, and are designed to seamlessly integrate with the public vaccine delivery system in
Zimbabwe, thus ensuring long-term sustainability of the solution.
Health System Benefits
The electricity grid in rural Zimbabwe might not be able to ensure continuous, reliable
power supply, especially in remote parts of the country. In such regions, vaccines may be
stored at a central point and moved over large distances by road for each vaccination
session, greatly increasing transportation time, logistical hurdles, and operational costs.
Meanwhile, the reliance on motor vehicles to ferry vaccines across large distances for
each planned session reduces efficiency and leaves vaccine supply at the mercy of local
weather and fuel supply conditions.
Econet Wireless Zimbabwe innovative solution shifts the last point of storage
significantly closer to the point of vaccine delivery by deploying highly energy efficient
vaccine-storage refrigerators to rural clinics and/or co-locating such refrigerators with
Econet Wireless Zimbabwe cellphone tower sites (in dedicated, fenced off areas), which
are ubiquitous throughout Zimbabwe. This simple, but revolutionary approach reduces
vaccine transportation time and increases health system efficiency.
Environmental Benefits
Econet Wireless Zimbabwe delivers direct environmental benefits ranging from ozone
conservation to reduction in ambient noise. The refrigeration units used in this initiative
do not use ozone-depleting gases, are highly energy efficient, and are powered by solar or
other renewable sources wherever possible. By utilizing a vaccine refrigerator with a 10day holdover capability, this program also dramatically reduces the need for generator
usage and the associated noise.
Benefits for Other Stakeholders
Other key stakeholders in the ecosystem also derive several benefits from involvement in
our work. For communities that are part of the program, in addition to having vaccines
administered at a location in closer proximity, there is also the potential for future
integration into the health records directly from the point of vaccination. For the
sponsoring mobile operator, this program offers a novel way to engage with the
communities it serves, and demonstrate its commitment to the greater public interest by
supporting local health services.
Source: Econet Wireless Zimbabwe
https://www.econet.co.zw
29
Annex 3.
LLDC
Afghanistan
ICT Funding Sources
 Public:
 Ministry of Communications and Information Technology (MCIT) and Afghan
Telecom Regulatory Authority (ATRA)
 2008 – establishment of state-owned Afghan Telecom’s satellite-based Village
Communications Network
 MCIT is developing a high-capacity fibre optic backbone: the National Optical
Ring Network that will link all of the provinces within the country, as well as
connecting Afghanistan with its six neighbors (Pakistan, China, Tajikistan,
Uzbekistan, Turkmenistan, and Iran).


Armenia
Azerbaijan

Private:
 National  Middle-income entrepreneurs from diaspora communities set up
Internet facilities (ISPs), software and web development firms
 2004 – Roshan Cellular Telecommunication Project – Loan US$ 35,000
 2006 – Roshan Phase II Expansion – Telecom Development Company Afghanistan
Limited – Loan US$ 85,000
International Donors
 World Bank, USAID, SIDA and KOICA have contributed directly to ICT sector
development
 2003-2006 IDA and IBRD  US$ 6.130 million credit for Afghanistan
Reconstruction Fund – Telecommunications Project
Public:
 2001 – Presidential Order No. 896: IT Development Supporting Council (ITDSC)
created to establish permanent communication between government, IT industry
and interested civil society groups.
 Government with technical assistance of World Bank and USAID  in 2001 ICT
Master Strategy

Private:
 National  The Union of Information Technology Enterprises
 International  Synopsis Armenia (USA) joint stock company specialising in
Electronic Design Automation (EDA) software for semiconductor design
 International  WEB-ISI (France) French SME works joint-venture with E-works
LLC in Armenia

International Donors
 2003 – USAID support  Central Bank and ten commercial banks established a
national e-payment system ArCa

Public
 2003/2004 – Establishment of Ministry of Communication and Information
Technologies (MCIT)
 2003-2012 – National Information and Communication and Technologies Strategy
for the Development of the Republic of Azerbaijan
 2011-2012 – Government adopted a special action program to support Egovernment development
 2012 - $414 million (2% of total) were invested in ICT sector

PPP
 2011 – MCIT signed a formal agreement with Micorsoft to help ensure that all
government offices will run legally licensed software
30


Private
 National/International  by 2011, ICT-related investments reached US$2.0billion:
25% of which is FDI
 2007 – public shares of two mobile operators (Azercell and Bakcell) were privatized
 2009 – Azerfon mobile operator signed a partner market agreement with Vodafone
 2010-2012  exports of IT products made by national companies have increased
four times
 2013 – Science Development Fund under the President of Azerbaijan has allocated
more than US$1 million to finance ICT projects
PPP
 US-Azerbaijan Chamber of Commerce  December 2-5, 2013 ICT Trade Mission
to Azerbaijan

Bhutan
Bolivia
International Donors
 UNDP - 2013-2020  “Modernization of Sustainability and Efficiency of ICT
infrastructure and ICT services in the Republic of Azerbaijan”
 Public
 2004 – Ministry of Information and Communication (MoIC): ICT Policy and
Strategy (BIPS)
 2012 – Second international ICT gateway – 50km Optical Ground Wire fibre
network between Gelephu and Bagaigon
 2008 - UN-ESCAP and Bhutan Ministry of Information and Communication
(MoIC) have partnered with the Royal Institute of Management (RIM) to launch an
ICT Capacity Development Programme
 2010 – Capital expenditure (in 100,000 US$)  81

PPP
 2011 – “Thimphu TechPark”: IT Park promoted by the Department of Information
Technology & Telecom, the Ministry of Information & Communications, Royal
Government of Bhutan, supported by the World Bank and developed jointly by
Assetz Property Group of Singapore and Druk Holdings & Investments  5 year
investment of US$ 8 million from 2008 to 2013

International Donors
 2006 – “Digital Signature Project”: initiated by the Department of Information
Technology (DIT), with technical and funding support from the International
Telecommunication Union (ITU) and the United Nations Development Programme
(UNDP)
Public
 2003-2006 – National Strategy and Information Technology Communication
(ETIC): coordinated by ADSIB, Alternative Energy and SITTEL with support from
UNDP
 2006 – National ICT Programme for Education Sector, created by the Ministry of
Education in collaboration with IICD
 2008 – Renationalisation of ENTEL – Government reinvested BOB 400 million
(over US$ 56.5 million)
 2010 – Capital expenditure (in 100,000 US$)  2,613


Private
 1995 – ENTEL Privatisation: ETI Euro Telecom bought 50% of ENTEL shares
from the state
31

Botswana
Burkina Faso
Burundi

International Donors
 Since 2000 – “TiCBolivia”: multi-stakeholder network of national actors working
with ICT for development, supported by the Dutch development partner IICD
Public
 Government investment in infrastructure  18% for ICT
 2001-2007 Average spending US$ millions per year  US$ 80 for operations &
maintenance and US$ 56 of capital expenditure
 2000-2005 Annual investment in telecommunications  US$ 19.0 millions

Private
 2001-2007 Average spending US$ millions per year  US$ 19 of private
participation in ICT infrastructure capital expenditure

PPP
 Committed nominal investment in ICT projects with private participation ($
millions) 2000-2005  19.0

International Donors
 2001-2007 Average spending US$ millions per year  US$ 0 from ODA
 DAC Donors total gross ODA disbursement for ICT in 2011  US$ 379,001.00
Public
 2001-2006 Average spending US$ millions per year  US$ 10 for operations and
maintenance and US$ 2 of capital expenditure
 2000-2005 Annual investment in telecommunications  US$ 61.2 millions
 2000-2005 Annual investment in mobile communication  US$ 23.2 millions


Private
 2001-2006 Average spending US$ millions per year  US$ 64 of private
participation in ICT infrastructure capital expenditure

PPP
 Committed nominal investment in ICT projects with private participation ($
millions) 2000-2005  5.3

International Donors
 2001-2006 Average spending US$ millions per year  US$ 6 from ODA and US$ 1
from Non-OECD financiers
 DAC Donors total gross ODA disbursement for ICT in 2011  US$ 4,160,408.00
Public
 2012 Total Government Expenditure for ICT Development US$ 1.5 million


Private
 2006 – Five Telecommunications companies in Burundi signed a Memorandum of
Understanding (MOU) with the objective of coming together to build a shared
national fibre optic backbone connecting the main populated centers
 2012 – Total Private Investment for ICT Development US$ 3.0 millions

PPP
 Committed nominal investment in ICT projects with private participation ($
millions) 2000-2005  6.0

International Donors
 2007 – IDA approved a financing package of US$20.1 millions for Burundi  as a
first tranche of the US$ 424 million Regional Communications Infrastructure
32
Central
African
Republic


Chad
Ethiopia

International Donors
o DAC Donors total gross ODA disbursement for ICT in 2011  US$ 640,607.00
Private
 2010 – Millicom Tchad S.A. investment commitment US$ 21.2 millions

PPP
 Committed nominal investment in ICT projects with private participation ($
millions) 2000-2005  1.4

International Donors
 DAC Donors total gross ODA disbursement for ICT in 2011  US$ 358,269.00
Public
 2000-2005 Annual investment in telecommunications  US$ 35.3 millions
 2000-2005 Annual investment in mobile communication  US$ 5.2 millions
 2000-2005 Annual investment in telephone service  US$ 14.5 millions


Kazakhstan
Program (RCIP)
 DAC Donors total gross ODA disbursement for ICT in 2011  US$ 641,539.00
Public
 2002 – Government set up the National Plan for Information and Communication
Infrastructure (NICI)
 2000-2005 Annual investment in telecommunications  US$ 0.1 millions
 2010 – Capital expenditure (in 100,000 US$)  271

International Donors
 DAC Donors total gross ODA disbursement for ICT in 2011  US$ 4,583,398.00
Public
 2006 – KazPost Financial Strengthening and Modernization Project – Technical
assistance US$ 1,000
 Development of Kaznet
 Digitization process  switch to digital broadcasting by 2015

Kyrgyz
Republic
International Donors
 IREX administered Internet Access and Training Program (IATP)
 Soros Foundation  Kazakhstan has institutionalized to Information Initiative
 OSCE, UN and other international organizations provide access to internet
 Public
 2002 – National Strategy “Information and Communication Technologies for
Development in the Kyrgyz Republic”

Lao PDR
International Donors
 UNDP, USAID and Soros Foundation supported the formulation of national ICT
policies
 2001 Telecommunications project funded by the World Bank and EBRD  Kyrgyz
telecom was granted exclusive control of long-distance and international telephone
service
 Public
 2006 – Asian Development Community Broadcasting Initiative – Technical
assistance

Private
 2005 – Millicom Lao Company Limited – Investment commitment US$ 4 millions
33

Lesotho
Macedonia
FYR


PPP
 Committed nominal investment in ICT projects with private participation ($
millions) 2000-2005  3.0

International Donors
 DAC Donors total gross ODA disbursement for ICT in 2011  US$ 19,531.00
Public
 National Strategy for Information Society
 E-Declaration
 Program of the Government of Republic of Macedonia for 2006-2010


Malawi
Mali
Moldova
International Donors
 2009 – Asia Development Bank funded US$ 500,000 for “E-Health Center Project”
Public
 2000-2005 Annual investment in telecommunications  US$ 7.1 millions
 2010 – Capital expenditure (in 100,000 US$)  112

International Donors
 2006-2011 FDI in ICT Sector  86.8% in Telecommunications (174 million
euros); 6.9% Computer Activities; 4.5% Software; 1.8% ICT Hardware.
 2007 – EC funded project SCORE “Strengthening the Strategic Cooperation
between the EU and Western Balkan Region in the field of ICT research”
Private
 2010 – “Zain Malawi Dist” Project by Stanbic Malawi  investment commitment
US$ 5.8 millions

PPP
 Committed nominal investment in ICT projects with private participation ($
millions) 2000-2005  0.9

International Donors
 DAC Donors total gross ODA disbursement for ICT in 2011  US$ 2,611,719.00
Public
 2000-2005 Annual investment in telecommunications  US$ 17.7 millions
 2010 – Capital expenditure (in 100,000 US$)  1,930


PPP
 Committed nominal investment in ICT projects with private participation ($
millions) 2000-2005  82.6

International Donors
 Since 1996 – Washington-based “Africa Leland Initiative” team in cooperation with
USAID mission in Bamako  created a Communication for Development team
with the aim of accelerating development by making information accessible
 DAC Donors total gross ODA disbursement for ICT in 2011  US$ 12,258,402.00
Public
 2010 – Capital expenditure (in 100,000 US$)  1,395


Private
 ICT Sector in Moldova Policy White Book  developed by Moldovan Association
of ICT Private Companies with the support of the Competitiveness Enhancement
and Enterprise Development (CEED), funded by USAID

International Donors
34

Mongolia


Nepal

Niger

International Donors
 UNDP – 1998 support to attend Internet Policy Seminar; support and assistance to
CISCO academy
 Mongolian Foundation for Open Society – Soros Foundation  full support for the
“ICT Vision-2010 in Mongolia”
 Asian Development Bank  project focused on educational sector and ICT
 TACIS, European Union Agency – 1996-2001 allocated total sum of 26,5 million
euro
 World Bank 2001 – Mongolian Development Gateway
Public
 1999 – National pilot programme to develop 15 telecentres in 9 districts within the
country: started by His Majesty’s Government of Nepal (HMG/N) with the support
of UNDP
 2007 – Information and Communication Technology Development Project – Public
sector US$ 6,200 + Asian Development Fund Grant US$ 25,000
Public
 2010 – Capital expenditure (in 100,000 US$)  1,329

PPP
 Committed nominal investment in ICT projects with private participation ($
millions) 2000-2005  47.2

International Donors
 DAC Donors total gross ODA disbursement for ICT in 2011  US$ 444,553.00
Private
 2005 – Millicom Paraguay invested US$ 15.0 millions
Public
 2010 – Capital expenditure (in 100,000 US$)  1,815
Paraguay

Rwanda

Swaziland
Since 2005 – USAID supported Regional Competitiveness Initiative (RCI) for IT
development in Macedonia and in the region
 2010 – World Bank “Governance E-Transformation Project”  Moldova was the
first to join the initiative  commitment of US$ 23 million
Public
 2010 – Regional Logistics development project – Public sector US$ 26,640 + Asian
Development Fund Loan US$ 45,000

PPP
 Committed nominal investment in ICT projects with private participation ($
millions) 2000-2005  33.0

International Donors
 2000 - UK Department for International Development (DFID) in cooperation with a
number of private-sector companies  “Imfundo Project” (£800 million education
programme) aims to find ways to use ICTs to improve education
 “E-Rwanda Project”  US$ 10 million IDA grant supports the government’s
efforts to use ICT for improving service delivery
 DAC Donors total gross ODA disbursement for ICT in 2011  US$ 5,722,397.00
Public
 2000-2005 Annual investment in telecommunications  US$ 27.6 millions


PPP
 Committed nominal investment in ICT projects with private participation ($
35
millions) 2000-2005  3.0

Tajikistan

Turkmenistan

Uganda
Uzbekistan
International Donors
 DAC Donors total gross ODA disbursement for ICT in 2011  US$ 10,028.00
Public
 2006 – over 94.5% of the total amount of investment in ICT were given from
local/governmental budget (US$ 133,700)
Public
 2008 – ICT expenditure as a % of GDP  5.5%

Private
 2008 - Business investment  US$ 23,996,923

International Donors
 2003 – NATO Science committee project “Virtual Silk Highway”
Public
o 2000-2005 Annual investment in telecommunications  US$ 68 millions
o 2010 – Capital expenditure (in 100,000 US$)  1,006


PPP
 Committed nominal investment in ICT projects with private participation ($
millions) 2000-2005  77

International Donors
 Rural Communications Development FUND (RCDF) – funded from a 1% levy on
operators’ gross annual revenues but also benefited from contributions from the
government and the World Bank
 DAC Donors total gross ODA disbursement for ICT in 2011  US$ 1,132,033.00
Public
 National Program of Reconstruction and Development of Telecommunication
network until 2010 – implemented by Uzbektelecom jointly with China
Development Bank (CDB)
 2002-2010 – Program of Computerization and Information and Communication
technologies Development


Private
 2008 – Business investment as a % of GDP – 26.7%
 2008 – Swedish-Finnish TeliaSonera invested up to US$160 million in Ucell

Zambia
Zimbabwe
International Donors
 2000 – UNDP started UzSciNet: “Capacity Building for Internet Technologies
Development and Promotion in Uzbekistan” ‘
 2008 – Foreign investment about US$ 289 millions
 Public
 2000-2005 Annual investment in telecommunications  US$ 42.5 millions
 2000-2005 Annual investment in mobile communication  US$ 36.9 millions

PPP
 Committed nominal investment in ICT projects with private participation ($
millions) 2000-2005  74.0

International Donors
 DAC Donors total gross ODA disbursement for ICT in 2011  US$ 1,936,522.00
Public

36



2000-2005 Annual investment in telecommunications  US$ 21.7 millions
2000-2005 Annual investment in mobile communication  US$ 20.3 millions
PPP
 Committed nominal investment in ICT projects with private participation ($
millions) 2000-2005  13.0

International Donors
 DAC Donors total gross ODA disbursement for ICT in 2011  US$ 414,314.00
Source: Various Government reports from internet
37
Chair’s Summary Adopted at the Thematic Meeting on
Enhancing ICT development and connectivity for the
Landlocked Developing Countries (LLDCs)
Held on 31st October 2013, at the United Nations Conference Center,
Nairobi, Kenya
I.
Introduction
The General Assembly, in its resolution 66/214, decided to hold a comprehensive tenyear review conference of the Almaty Programme of Action in 2014 to be preceded, by
regional and global as well as thematic preparations. It is in this context that the ITU and
OHRLLS organized a pre-conference event on Enhancing ICT development and
connectivity for the LLDCs as one of the mini partnership forum of the 2013 Global
South-South Development Expo to review major achievements in ICT development in
LLDCs, showcase the best practices; discuss how partnerships in particular South-South
and Triangular cooperation at regional and international levels can help enhance
development of ICTs in LLDCs, and suggest concrete recommendations that can be
included in the preparation of the outcome document of the 10 Year Review Conference
on the Almaty Programme of Action.
The meeting brought together about 40 participants including senior officials from
landlocked and transit developing countries, representatives of donor countries, regional
development banks, UN system organizations, regional and sub-regional organizations
and civil society.
II.
Summary of the Panels and Main Issues Raised
The meeting began with an opening session where remarks were delivered by Mr. Gyan
Chandra Acharya, Under-Secretary-General and High Representative, Dr Hamadoun
Touré, Secretary-General, International Telecommunication Union (via video) and Ms.
Sahle-Work Zewde, Director-General of United Nations Organization Nairobi. The
opening session was followed by two panel discussions on (a) key issues on ICTs and
Broadband, LLDCs challenges, best practices, country experiences and solutions, and (b)
initiatives on partnerships and solutions that can work to improve ICTs development for
LLDCs. This section presents a summary of the panels and the key issues that were
raised.
The meeting noted that the LLDCs had special needs for ICT development as noted in the
resolution on “special measures for landlocked developing countries and small island
developing states for access to international fiber optic network” unanimously passed by
the ITU World Conference on International Telecommunications (WCIT-12) held in
Dubai in 2012. The meeting noted that significant progress has been made in the last
decade in the development of the ICT sector in LLDCs. However despite the progress, a
38
significant digital divide still exists between the LLDCs and the other groups of
countries.
The meeting identified some of the achievements made by LLDCs, which include the
following:
 Some LLDCs had developed national policies, laws and the institutional
framework to support the development of the ICT sector. For example Uganda
has: National Telecommunications Policy, National ICT Policy, National
Broadband Strategy and Policy, National Data Protection and Privacy Bill,
National Information Security Framework, National Postcode and Addressing
Bill, and National Broadcasting Policy and a Ministry of ICT and National
Information Technology Authority.
 Some LLDCs had introduced liberalization in the ICT and telecommunication
sector and this has boosted the role of the private sector particularly in providing
mobile telephone services. However the meeting stressed that the government still
had to play a major role in areas where the private sector has not addressed – such
as development of the broadband infrastructure network.
 There has been remarkable increase in ICT penetration especially of mobile
telephony and internet use.
 The regional and sub-regional level efforts are being made to enhance the
development of ICTs and Broadband in LLDCs. For example: in Asia through the
South Asian Association for Regional Cooperation (SAARC) development fund,
the South Asia Sub-regional Economic Cooperation (SASEC) Information
Highway Project is establishing a regional fiber optic-based network to provide
high speed Internet services in Bangladesh, Bhutan, Nepal, and parts of Northern
India, Regional Training Networks in each country and in each country, and also
to develop website portals that would provide information on distance education,
telemedicine, e-commerce, and social networking.
 In Africa some sub marine cable operators have established Point of Presence at
coastal landing points and in the LLDCs (inland) in order to offer access to
broadband at lower cost. NEPAD is addressing the inland fibre at the policy level
and a telecom private sector company is championing its implementation.
The meeting noted some best practices that have been achieved in some LLDCs. These
include:
 Some LLDCs have integrated ICT into national socio-economic development
agenda, by mainstreaming it into key socio-economic sectors such as Education,
Healthcare, Business, Agriculture and other sectors thereby ensuring that optimal
benefits are realized from use of ICT.
 Liberalization of the ICT sector.
 Some LLDCs had successfully developed capacity building initiatives for
communities including community e-centers, public information kiosks and
community information centers.
 Some LLDCs had launched e-services for utility payments such as water and
electricity. Efforts were also being made to use e-Tax systems by some revenue
authorities.
39



Some LLDCs have implemented Single Window electronic system and the
Automated System for Customs Data (ASYCUDA) which have greatly improved
customs clearance and procedures.
Set up and effective use of a universal fund for expansion of ICT into the rural
areas.
Establishment of e-learning to increase the knowledge and use of ICT by the
public.
The meeting indicated that the LLDCs still confronted challenges on the development of
ICTs/Broadband. Some of the key challenges include:
 Lack of expertise to formulate custom designed policy, legal and regulatory
framework suitable for the specific needs of the country;
 Lack of consistency in the policy, legal and regulatory regime, which gives rise to
lower confidence in the private sector for investment;
 The unnecessary delays in the process of decision making on important issues like
licensing and spectrum have been obstacles to stiff competition, diversification
and introduction of the state of the art technologies;
 Limited broadband penetration in LLDCs and limited access to international
Internet Bandwidth is a major challenge for service providers.
 Limited funds for developing broadband infrastructure;
 High cost of connectivity to the international broadband infrastructure and the
resulting higher costs of ICT and broadband services in LLDCs. For example A
study carried out in ECOWAS region on access to submarine cables by the
LLDCs in 2011 revealed that the wholesale price of international fibre
connectivity for a purchasing level of capacity on E1 (2MB) in Niger is about
US$ 900 per MB per month whereas in a coastal country remain two to five times
lower than the LLDCs. The higher price paid by landlocked countries for
international capacity is linked to the transit costs that they have to pay to coastal
countries to route their traffic across the terrestrial network of the coastal country;
 Low affordability of ICT services and products by the general public in LLDCs;
 Low levels of ICT awareness and inadequate complementary services such as
national electricity grid;
 Many of the governments and the regulators have not been able to adopt a unified
licensing regime, have not addressed the policy, legal, regulatory and institutional
arrangements to cater to convergence brought about by the development of
devices, networks and technologies. The service providers are ready to provide
multimedia services but governments and regulators are not ready;
 Many governments have realized the importance of e-governance for its obvious
advantages. But the traditional bureaucracy is not ready for assimilating such
changes. The IT and the telecom infrastructure for the implementation of egovernment programs remains a great challenge;
 Local contents have not been developed to the extent that broadband services
become essential for the users.
 Cybersecurity remains critical to enhance public confidence in the use of ICTs.
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III.
Recommendations
Discussions in the meeting suggested the following recommendations to support the
LLDCs to fully harness ICT for their development.
National ICT and Broadband policies
LLDCs should develop a national broadband policy and strategic plans ensuring
allocation of adequate resources for its implementation. The policy and strategic plan
should include how to develop a modern ICT infrastructure and Internet access that can
provide universal access. Such a strategy should be anchored in strong regulatory
frameworks and domestic ICT laws that conform to international standards, including the
Global ICT policy. The national ICT plan should fully reflect the cross-cutting nature of
ICTs and their pivotal role in national development. LLDCs should include in their
national ICT plan a strategy of how ICT can be used to promote trade facilitation and
address the major challenge of landlockedness.
Rapid development of the ICT infrastructure in LLDCs
Expand ICT infrastructure in order to improve the access of LLDCs to international highcapacity submarine fiber-optic cables, low-price international voice services, higherspeed internet access, and high-bandwidth backbone networks to connect towns and cities
within countries, across borders. The Government should develop National broadband
infrastructure to supplement the private sector broadband infrastructure
Increased use of the established infrastructure
Participants recommended the need for intensified use of the established infrastructure in
order to optimize the returns to infrastructure.
Increased investments from the private sector
Policy makers in LLDCs should promote investment in the ICT sector by creating an
enabling environment with investment-friendly policy frameworks, regulatory certainty
and fair competition in order to promote the role of the private sector. Encourage public
private partnerships through providing technical assistance.
Enhanced regional ICT connectivity and cooperation
Strengthen sub-regional and regional broadband infrastructure, promote harmonization of
ICT policies and regulatory frameworks and customs and border crossing procedures at
sub-regional or regional levels so as to provide for faster transit and border crossing of
goods from LLDCs. Foster knowledge and experience sharing amongst the LLDCs
themselves to allow partners to benefit from each other’s experiences.
Improved ICT use to promote trade facilitation
LLDCs and transit countries should increase the utilization of ICT to simplify, facilitate
trade and transport, in conjunction with harmonization of customs systems and
documentation. ICT is especially effective in applying the concepts of pre-clearing goods
before they actually arrive at a customs post, of pre-clearing vehicles and drivers and of
risk management and selectivity processes.
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Increased use of ICT to spur economic growth in the production and industrial
sectors and to support broader sustainable development.
LLDCs should scale up utilization of ICT to improve efficiency and increase productivity
in all production sectors especially industry, agriculture and mining, thereby enhancing
process and value addition in order to reduce commodity dependence. They should
mainstream the use of ICT for SMEs and in the delivery of social services such as health,
and education, as well as in disaster preparedness, early warning, rescue, mitigation,
relief and response.
Capacity-building
Benefiting from ICTs requires substantial complementary investments in learning, and
reorganisation by all stakeholders. Increased capacity-building programmes to increase
ICT literacy in LLDCs, including women, children, the elderly, people with disabilities a
workforce and manpower with high levels of ICT proficiency and expertise. Encourage
the introduction of ICT at all levels of education. The use of social networking such as
facebook has contributed to people’s interest in the use of internet. Such interest should
be generated for e-health, e-education, e-governance etc. as well. Carry out public
awareness and sensitization on ICT and help them to have better understanding of the
new technologies.
Increase local and relevant content in ICTs
It is important to encourage increased local and relevant content for in order to boost use
of ICTs. For example in Uganda a requirement of 75% local content for broadcasters is
being promoted.
Improved data collection
Strengthen collection of ICT statistics and indicators and regular reporting at all levels –
national, regional and global to facilitate policy decisions and monitoring the
effectiveness of past policies.
Establishment and interconnection of research and education networks
Increase in research cooperation and regional computing capacity, generate scientific
excellence, bridge the digital divide, reduce 'brain drain', contribute to economic and
social well-being.
Support from Bilateral and multilateral development partners
Bilateral and multilateral development partners should increase their technical and
financial assistance to support ICT development in LLDCs. In particular the following
areas: Support LLDCs to develop the necessary infrastructure to access international
optical fibre networks; Improve the ability of LLDCs to use satellite by lowering
acquisition costs; Facilitate access to technologies and transfer of know-how on ICTs;
and Support the Aid for Trade initiative, giving special consideration to the requirements
of LLDCs.
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South-South cooperation and triangular cooperation
South-South cooperation should foster and scale up partnership in the transfer of relevant
technologies and innovations, capacity building and financial assistance to LLDCs.
United Nations, International, Regional and Sub-regional organizations
Organizations of the United Nations system, and other international organizations, the
Regional Development Banks, and Regional Economic Communities, are invited to
provide more and better targeted technical assistance to support an accelerated ICT
development in LLDCs in particular technical assistance on how to utilize ICT to lower
trading costs, boost trade, and stimulate structural transformation. They should also
promote sharing of best practices and advise on new technologies.
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