information technology: propelling economic growth
DESCRIPTION
Information Technology: Propelling Economic Growth. By U Thein Oo Patron, Myanmar Computer Federation Chairman, Myanmar ICT Development Cooperation Chairman, Steering Committee for Yangon & Mandalay Computer Universities ( CoE ). MESSAGE 1. - PowerPoint PPT PresentationTRANSCRIPT
Information Technology:Propelling Economic Growth
By
U Thein OoPatron, Myanmar Computer Federation
Chairman, Myanmar ICT Development CooperationChairman, Steering Committee for Yangon & Mandalay Computer Universities
(CoE)
MESSAGE 1• It is widely accepted (also in Myanmar) that ICT is at
the centre of an economic and social transformation.
• Advances in ICTs have dramatically changed the World economy over the last few decades.
• The fact that ICT can propelled economic development is proven.
• The intrinsic value of ICT lies not in its ease for communications and information but rather as an enabler for growth and development. ICT is considered as a powerful tool for economic growth and poverty eradication.
IDI and GNI Per Capital
ICT Development is a major factor for well being
Source : ITU
ICT Sector contribution to GDP
• ICT has significant impact to socio economic performance of the country
• This trend also has positive impact to the economic growth
• ICT sector contribution to GDP in Korea was 17.2% in 2007
ICT Sector contribution to GDP, 2005
MESSAGE 2
• Myanmar had plan but no implementation
• Myanmar leaders, business communities and even general public recognize that ICT is a key enabler for socio-economic development.
• There are efforts in preparing ICT development plans.– 2001-2005 Master plan– 2006-2010 Master plan and Action plan– 2011-2015 Follow up plan
• But there is still not much concrete implementation efforts for ICT development.
Framework: ICT for Development
ICT Industry Development
Human CapitalTechnology & Telecommunication InfrastructureOrganizationLegal InfrastructureFinancial Capital
Capital
AccessLiteracyUse
ICT Index
Good GovernanceClean GovernmentTransparencyFair CompetitionInclusiveness
Fundamentals
AgricultureTradeManufacturingTransportationServiceHealthEducation
Sector Development
Economic DevelopmentFoodClothingShelterTransportation
Social DevelopmentEducationHealthEntertainment (Leisure)
Political DevelopmentParticipation
Impact (Values)
Millennium Development Goals
Access to KnowledgeAccess to MarketAccess to TechnologyBetter Communication
Reduce CostImprove ProductivityGain Competitive Advantage
1. Eliminate Poverty and Hunger
2. Ensure primary education for all
3. Promote gender equality4. Reduce juvenile mortality5. Better maternal care6. Combat diseases 7. Ensure sustainable
environment8. Build global partnership
for development
Vision: 2011-2015 ICT Master Plan
Focused Areas
Action Plan
Action Plan (continued)
MESSAGE 3
• Just developing and talking about vision, mission and reform and not putting concrete efforts leave Myanmar at the bottom of IDI
ranking and consequently economic development.
IDI Index 2010 and 2011
Economy Rank 2011 Rank 2010 IDI 2011 IDI 2010
Korea 1 1 8.56 8.45
Singapore 12 10 7.66 7.47
Brunei Darussalam 57 52 4.95 4.85
Malaysia 58 57 4.82 4.63
Viet Nam 81 86 3.68 3.41
Thailand 92 89 3.41 3.29
Philippines 94 94 3.19 3.04
Indonesia 95 97 3.19 3.01
Lao P.D.R 120 120 1.99 1.84
Cambodia 121 119 1.96 1.88
Myanmar 131 129 1.67 1.65
Source : ITU
IDI Access Sub-Index 2010 and 2011
Economy Rank2011 IDI 2011 Rank 2010 IDI 2010
Hong Kong 1 9.21 1 9.09
Singapore 8 8.38 12 8.12Brunei Darussalam 44 6.46 41 6.33
Malaysia 54 5.85 51 5.66
Viet Nam 85 4 84 3.81
Thailand 91 3.78 89 3.6
Philippines 99 3.37 98 3.28
Indonesia 101 3.32 105 3.09
Cambodia 113 2.53 111 2.43
Lao P.D.R 120 2.45 124 2.18
Myanmar149 1.52 148 1.49
Eritrea 155 0.85 155 0.85
Source : ITU
Myanmar teledensity will reach 50% by end of 2015 (MOST). It is a challenging job. If fulfilled, Myanmar’s ranking may go up.
ICT Access Key Indicator in Myanmar
Source : MOST
ICT Skill Sub-Index 2010 and 2011
Economy Rank 2011 IDI 2011 Rank 20010 IDI 2010
Korea (Rep.) 1 9.86 1 9.86
Thailand 62 7.34 64 7.22
Singapore 71 7.08 71 7.08
Brunei Darussalam 72 7.08 72 7.08
Philippines 77 6.96 78 6.96
Malaysia 90 6.69 90 6.69
Indonesia 100 6.41 100 6.41
Viet Nam 101 6.4 101 6.4
Myanmar 111 5.24 111 5.24
Cambodia 120 4.38 120 4.38
Lao PDR 121 4.35 121 4.35
Niger 155 1.45 155 1.45
Source : ITU
Myanmar’s ICT Skill Index is not so bad. We may be able to improveconsiderably if we give priority to e-Education and ICT HRD.Skill may be deciding factor in the future.
ICT Use Sub-Index 2010 and 2011
Economy Rank 2011 IDI 2011 Rank
2010 IDI 2010
Luxembourg 1 8.17 1 8.04
Singapore 6 7.24 6 7.02
Brunei Darussalam 56 2.85 48 2.57
Malaysia 62 2.38 56 2.25
Viet Nam 76 2.01 79 1.52
Thailand 92 1.4 93 1.04
Philippines 98 1.18 94 1.01
Indonesia 100 1.09 95 1
Lao P.D.R 125 0.36 129 0.26
Cambodia 135 0.19 143 0.08
Myanmar 155 0.04 155 0.01
We may still need to increase awareness that ICT is key for development and systematic efforts are needed.
Source : ITU
IMF Estimates: 2011 ASEAN GDP (nominal)
Country GDP(USD Millions)
GDP (PPP)(USD Millions)
1 Indonesia 845,680 1,124,000
2 Thailand 345,649 616,783
3 Malaysia 278,680 447,279
4 Singapore 259,849 314,911
5 Philippines 213,129 390,408
6 Vietnam 122,722 299,985
7 Myanmar 51,925 82,679
8 Brunei 15,333 20,969
9 Cambodia 12,861 33,463
10 Laos 7,891 17,433
Source : IMF
IMF Estimates: 2011 ASEAN GDP (per capital)
Country GDP per capital(USD)
1 Singapore 60,500
2 Brunei 50,000
3 Malaysia 15,800
4 Thailand 9,500
5 Indonesia 4,700
6 Philippines 4,100
7 Vietnam 3,400
8 Laos 2,700
9 Cambodia 2,200
10 Myanmar 1,300
Source : IMF
MESSAGE 4
• Myanmar is really changing
• ICT Developmentin Myanmar is at the early stage
• There are many opportunities for cooperation with countries like United States
Opportunities in Myanmar
Cooperation for mutual benefits
MyanmarProblems & Weakness
•Weak Infrastructure•ICT HRD quality • Awareness•Cyber Law•Technological know-how•Job Creation•Entering international Market•Financial resources
Investors Advantage
• Technical assistance • Technical Transfer• Financial Assistant• Consultation• Outsourcing• Investment
• Outsource Human Resource• Link to ASEAN• Globalization
•Technology Transfer•Know-How and Experiences• ICT use•Job Creation• High Income •Growth in ICT industry•Increase Competitiveness of Myanmar
Advantages
• Cost Saving•Extension of Working Hours •Overcome Manpower shortage•Investment Opportunities•New Market
Involvement in ICT HRD in Myanmar?
• Assistance in HRD Projects• Establishment of IT educational Institutes• Internship programs• Technical transfer
Productivity Quality Products Good ServiceNecessary Outcome
Manufacturing
Trade
Finance & Service
Life Stock & FisheriesForestryMining
Oil/GASAgriculturePotential Sectors
Capital InvestmentElectricityTelecom
InfraLogisticHRDLegal Framework
Enabling Environment
Inclusive Social Economic Development & Poverty Reduction
InclusivenessFair CompetitionTransparencyClean
GovernanceGood
GovernanceHuman RightsBasic Elements
Investment in ICT Infrastructure development?
• Assistance in Infrastructure Building• Any Companies should find opportunities to invest in Infrastructure Projects.• Technological assistance and transfer.
Productivity Quality Products Good ServiceNecessary Outcome
Manufacturing
Trade
Finance & Service
Life Stock & FisheriesForestryMining
Oil/GASAgriculturePotential Sectors
Capital InvestmentElectricityTelecom
InfraLogisticHRDLegal Framework
Enabling Environment
Inclusive Social Economic Development & Poverty Reduction
InclusivenessFair CompetitionTransparencyClean
GovernanceGood
GovernanceHuman RightsBasic Elements
Capital Investment in ICT Sector?
• Direct Investment• Creation of Investment Funds for Investment in ICT sector in Myanmar• Form JV with Myanmar Company
Productivity Quality Products Good ServiceNecessary Outcome
Manufacturing
Trade
Finance & Service
Life Stock & FisheriesForestryMining
Oil/GASAgriculturePotential Sectors
Capital InvestmentElectricityTelecom
InfraLogisticHRDLegal Framework
Enabling Environment
Inclusive Social Economic Development & Poverty Reduction
InclusivenessFair CompetitionTransparencyClean
GovernanceGood
GovernanceHuman RightsBasic Elements
Involvement in development of economic sectors?
• Find opportunities in interested Sectors and conduct feasibility studies quickly• Find good business partners and build good relationship in interested Sectors
quickly
Productivity Quality Products Good ServiceNecessary Outcome
Manufacturing
Trade
Finance & Service
Life Stock & FisheriesForestryMining
Oil/GASAgriculturePotential Sectors
Capital InvestmentElectricityTelecom
InfraLogisticHRDLegal Framework
Enabling Environment
Inclusive Social Economic Development & Poverty Reduction
InclusivenessFair CompetitionTransparencyClean
GovernanceGood
GovernanceHuman RightsBasic Elements
Conclusion
• We need to recognize that ICT4D is a program aimed at bridging the digital-divide and bolstering economic development by ensuring equal access to up-to-date Information and Communication Technologies.
• Myanmar is really changing and reversal is impossible
• Development in Myanmar presents enormous Investment Opportunities in IT Sector. However, Investment will only be fruitful only with assistance and technology transfer contributing to capacity building.
• Government commitment and involvement in ICT4D is very important at the initial stage where private sector cooperation is insufficient. There must be cooperation and coordination between the two governments.
• Helping Myanmar in development will be mutually beneficial to America. We can become political, social and economic partners.
Thank You!