Broadband: A Fundamental Technology to Achieve Sustainable Development

Photo Credit: Costas Troulos

In a joint statement issued today ahead of the Rio+20 Conference on Sustainable Development, the Broadband Commission noted that “We believe broadband is a fundamental technology to achieve sustainable development that should also be recognized in future Sustainable Development Goals (SDGs)”.

The statement came as a follow-up to its April call to action to the delegates at the United Nations Conference on Sustainable Development who gathered in New York at the time to continue their negotiations ahead of the Rio+20 conference. In this April call, the Broadband Commission asked the delegates to recognize ICT and broadband connectivity as catalysts to achieve the three pillars of sustainable development – economic growth, social inclusion and environmental sustainability.

In renewing their call, the Secretary-General of ITU, Hamadoun Touré stated that “ICTs have created a watershed moment in human evolution and are poised to make a catalytic impact on the sustainable development of our planet and the roadmap being negotiated at Rio+20 must therefore explicitly recognize the potential of ICTs and broadband connectivity.” Dr Touré added that ‘Broadband Inclusion 4 All’ must be fully integrated into shaping strategies in the post-2015 international development framework.

The statement concluded that broadband connectivity has the potential to provide solutions to sustainable development challenges, while simultaneously increasing socio-economic development and quality of life as well as facilitating transformative change in a wide range of key sectors from power, transportation, buildings, education, health and agriculture.

For more information on the press release, see ITU Newsroom and on the Broadband Commission for Digital Development.

June 20, 2012/by actualize

Economic Growth & Trade, Economic Policy and Governance, Originally posted on the GBI Portal

The Debated Economic Impacts of the Internet

Photo: chrisharrison.net

Many international development projects promote national Internet infrastructure with the assumption that increased connectivity will lead to economic growth which will in turn increase the quality of life for citizens in the recipient nations. However, what is the measured impact of Internet penetration on economic growth?

The World Bank
- 10% increase in Internet penetration leads to a 1% increase in GDP
ITU Broadband Commission
- 10% increase in broadband penetration in China contributes to a 2.5% growth in GDP
- 10% increase in broadband penetration in low and middle-income countries contributes to a 1.4% increase in economic growth
- Access to broadband in Brazil has added approximately 1.4% to employment
- Broadband will create 2 million jobs by 2015 in Europe
Kenyan Economic Update
- Person to person mobile money transfers equated to about 20% of national GDP, with about two-thirds of adults engaging in transfers
- ICTs are responsible for 0.9% of the 3.7% annual economic growth in Kenya over the past ten years. In other words, ICTs accounted for one-fourth of the GDP growth in Kenya the past decade.

In addition to these statistics, the Broadband Commission released the following table on the impact of broadband on employment:

Table: Broadband Commission - A Platform for Progress

Despite these promising statistics, there are critics of broadband’s correlation with economic growth. Charles Kenny from the Center for Global Development recently attacked the World Bank’s claim that 10% increase in Internet penetration leads to a 1% increase in national GDP. Kenny argued that the study was not peer-reviewed or ultimately published (both of these claims are correct).

Overall, however, studies on national economies and Internet penetration seem to demonstrate a positive correlation between the two. Hopefully, the ITU’s Broadband Commission will be able to produce more definitive studies in the future, though given their political stance in favor of broadband adoption, it may be more difficult for the ITU to be objective.

July 28, 2011/by actualize

Connectivity, Legal & Regulatory, Originally posted on the GBI Portal

The Broadband Commission’s New Report and an Interview with Mr. Charles Kenny

The ITU’s newly formed Broadband Commission released its first full report Monday, June 6, 2011, entitled A Platform for Progress. The report highlights the need for governments to adopt national Internet strategies in order to compete in the global market. Broadband Internet access, the report states, should be universally available through the public sphere. Others such as Charles Kenny, researcher at the Center for Global Development, argue that Internet access should be leveraged through the private sector, dictated by market needs.

The report reads, “To optimize the benefits to society, broadband should be coordinated on a countrywide basis, promoting facilities-based competition and with policies encouraging service providers to offer access on fair market terms… Developing isolated projects or piecemeal, duplicated networks is not only inefficient, it delays provision of infrastructure that is becoming as crucial in the modern world as roads or electricity supplies.”

Photo Credit: ITU, Dr Hamadoun Touré, ITU Secretary-General, Vice-Chair, speaks at the Broadband Commission for digital development meeting, Geneva

Some ICT4D experts, however, are not so quick to believe the report’s broad-reaching claims. Charles Kenny, from the Center for Global Development, explains in Foreign Policy that the evidence showing Broadband access increases growth is weak. Looking at data from 1980 to 2006, one unpublished World Bank study estimates that for every 10% increase in Broadband penetration a 1.3% increase in national GDP can be expected. This is a sandy foundation, argues Kenny, for the Broadband Commission’s recommendation that countries develop, invest in and subsidize national Broadband plans. Other studies, not cited by the Broadband Commission, show limited if any growth as a result of increased Broadband access.

I personally corresponded with Mr. Kenny via email last week regarding the role of governments and private companies in National Broadband Networks. His responses are listed here:

1. In your opinion, what is the role of the Internet in fulfilling the MDGs?

The Internet is definitely a factor in speeding progress towards poverty reduction, lower mortality and more widespread educational opportunities. At the same time, the Internet is neither necessary nor sufficient for such progress. Take health: the interventions necessary to dramatically reduce child mortality are things like widespread vaccination, the use of bed nets, breast feeding, and sugar-salt solutions to counter diarrhea. The Internet may be able to help in rolling out these approaches, but that role is decidedly secondary.

2. Where can Broadband have its greatest impact – health, education, governance, economy, or agriculture?

To date, the biggest impact of broadband in developing and developed countries alike has been in entertainment—allowing widespread access to interactive gaming and streaming video. Looking forward, there are surely applications across all of the areas you list, but it is far too early to suggest where the biggest impact will be.

3. Should Broadband services be provided by governments, private companies, or a combination?

Private companies. It is too early to say that there is a big justification for public financing of Broadband networks; we just don’t know if there is a considerable public good impact. Regardless, if the telecoms industry has taught us anything it is that private competitive provision of information infrastructure has lowered prices and extended access far more rapidly than government provision. So even if the government wants to finance broadband network rollout, it should work through the private sector.

4. Should countries pursue a National Broadband Network or leave the market to organically construct networks?

Leave it to the market. Command and control has sometimes, but rarely, worked as a development strategy. But the fast-moving area of ICTs isn’t a good place to try it. Given how little we know about Broadband’s economic and social impact, this isn’t an area where governments should be throwing money regardless.

Despite Mr. Kenny and others’ doubts, the Broadband Commission recommends governments develop their own National Broadband Networks. Their report can be downloaded here.

Photo Credit: CGDev.org

Charles Kenny is a senior fellow at the Center for Global Development. His current work covers topics including the demand side of development, the role of technology in quality of life improvements, and governance and anticorruption in aid. He has published articles, chapters and books on issues including progress towards the Millennium Development Goals, what we know about the causes of economic growth, the link between economic growth and broader development, the causes of improvements in global health, the link between economic growth and happiness, the end of the Malthusian trap, the role of communications technologies in development, the ‘digital divide,’ and corruption.

June 9, 2011/by actualize