A challenge for Venezuela: to overcome the digital divide

We understand the "digital divide" as the difference in opportunities of access amongst countries to the information technologies as well as the little capacity for them to use the Internet in an wide range of activities specially trade, education and government. Although it is true that we are going through a globalization process that can offer us more opportunities than challenges, it is certain that the negative gap between nations and sectors can be widen instead of being reduced. The telecommunications sector, although allows us to verify the advantages of this expanded world in where we have advanced extraordinarily in the last years, also shows us the challenges ahead due to the great differences that still exist between some countries with plenty of access to new means and the great majority of the populations that are at the margin of these tools of the world of telecommunications. By the way the marginalizations can also be found within developed countries themselves.

950 million homes still exist in the world that do not have access to the basic telephony networks. In other words 65% of the population of the planet does yet not have access to telephones yet. Some alarming numbers indicate us that more than 85% of the world population that shares the 183 countries of the planet have access to only 38% of the telephone available lines in the world. According to the publication Understanding the Digital Divide of the OECD, the most fundamental indicator of the digital divide at the international level is the number of lines of telephone access for each 100 inhabitants. In this sense, in 1998, the number of lines for each 100 inhabitants in member countries of the OECD was 72.1; whereas this same index in non-member countries was 7.8; and in countries with the lowest GDP per capita it was 1.6. Likewise, according to this same source, the gap is even greater in relation to Internet access. As a matter of fact, in October 2000, in member countries of the OECD, there were 82 Internet hosts for each 1000 inhabitants; however, outside OECD countries this index reached the dismal number of 0.85. This is an abysmal difference as can easily be inferred. In the particularly case of Venezuela we notice that our average internet link is 0.8% while in South America in general it is already approx. 4% . The projection for 2005 is about 5.7%.

The reasons for such worldwide differences in connectivity are the same causes that produce the divergences between the developing world and a developed one. In the case of information technologies in general and the use of the Internet it is interesting to highlight that the obstacles for the developing countries are based fundamentally on three elements: access, know how and confidence. Let us see the impact of these three elements.

When we talk about access we mean the high costs of hardware for these countries which have high tariffs for the importation of products related to these technologies[1]. On the other hand, the low penetration of the infrastructure of telecommunications as well as the high costs of access to Internet is a barrier. As to "know how", we have other reasons that explain the difference, namely is the lack of knowledge of the opportunities and advantages of the I.T and the electronic commerce on the part of many governments, which is translated into the absence of public policies on the part of some developing countries. Likewise, ignorance on the part of the entrepreneurs of the advantages of the use of the network -because they maintain the traditional ways of doing business- brings as a consequence the loss of important opportunities. With respect to the impact of confidence, or rather, the lack of it in relation to the new means, it is translated into a discouragement to advance in the use of the electronic commerce. Many consider the telephone and the fax as safer means. Par example, Venezuela through the development of a series of governmental policies has contributed to the full participation in the development of IT. It has created a National center for I.T. Also, a new law of Telecommunications, a national plan of information technology, a Law of Science and Technology as well as a Law against "digital delinquency" .The Government through presidential mandate has also instructed the use of the Internet as a Public Police priority.

Another disadvantage for the developing countries is the one that refers to the still high cost of the services. For example, the cost of monthly access to Internet in developing countries continues to be especially high, including Venezuela. For example, whereas in Australia the monthly cost in access to Internet represents just 1,5 % of the income per capita; in Mexico this percentage reaches approximately 15%[3]. If we compare the United States to Venezuela we find a difference of almost 15 points. It is understood that, among other things, indeed the end of the monopoly in the telecommunications sector in Venezuela both , state and private, will allow for the reduction[4].

In the projections ahead, Latin America is definitively s one of the regions of the world with the highest potential for overcoming of the digital divide. Even though this latter region still participates very little in the e-business. Some experts have pointed out that amongst the visible reasons for which the electronic commerce is restricted to developing countries are lack of confidence in the modalities of payment, the legal insecurity, the preference " to see and touch ", and the most serious of all, the one that refers to the lack of access to the very means of the technologies or even lack of access to the computers. All these realities must be faced in a dynamic way with the purpose of being prepared to have the capacity to accept the accelerated changes that from day to day take place in the so called " new economy" [5], understanding it as new means to generate more information, more efficient production processes and the best prices for consumers.

While you are reading this article, for example, 50.000 new users of computers will add themselves to the market. At the moment that you arrive to these lines 900 thousand voiced mails are circulating in the cyberspace jointly with 148.000 new users of Internet. Also, the number of Internet hosts by each 1000 inhabitants worldwide turned from 80 in October 1997 to 253 in October 2000 [6]. This means that the electronic commerce grows in an very accelerated way, and the demand for the new technologies is a vital necessity for any nation that does not want to be left behind. The expectations ahead indicate to us that amongst the different agents who are connected by electronic means, it will be particularly the relationships between consumers and businesses and/or businesses-businesses (b2b) that definitively will definitively generate wealth in the development of business tools that information technologies stimulate.

In order for developing countries to take maximum advantage of the opportunities of growth and wealth generation that is provided by information technologies of information and communication, governments should develop public policies defined not only by the central government, but by all the levels of government as well as the private sector and social groups interested in this process. Such policy must be directed to correct the obstacles to the use of the information and communication technologies in those countries. To fulfill these some requirements are necessary such as: an open and competitive telecommunications sector, a framework of rules that stimulate the access to infrastructure, a society educated in the sector and with a capacity to take advantage of the opportunities that it offers, transparency in the legal regimes and appropriate systems of security to generate confidence among others.

Among the specific actions that the governments could undertake to create the appropriate climate for the development of the I.T sector are: to stimulate the freedom of private investment in the sector; regulation of the latter by means of norms that stimulate competition; monitoring of the conduct and performance of the participant agents in the sector through the national competition authorities; establishment of policies of loans and subsidies of support to the sector [7]; to impel the teledensity; to improve the access to these technologies in public institutions (libraries, post offices, schools, etc); to reinforce the computer science culture and training; development of capacity building programs at all levels; aid programs for small businesses; programs to increase the access in remote and low income areas; to take the leadership in providing on line services, transference of information and governmental purchases; to take advantage of the programs of international cooperation in these area; stimulus to the creation of national web sites; to promote an internationally legal framework; establish certification authorities; stimulus to the creation of necessary banking mechanisms for electronics transactions; etc [8].

In the case of Venezuela the government has develop some plans through the Ministry of Science and Technology that hopes to develop and consolidate the national infrastructure in Information technologies toward contributing to development of human capacities and a better quality of life. The Venezuelan Government hopes to create an adequate base of human resources capable in I.T with the development of culture in this technology among the population. Also it has as a goal to modernize the state through the use of I.T to guarantee a more efficient bureaucracy and to promote I.T in the private and public sector toward stimulating productivity and competitiveness. Venezuela through programs such as the "Information Centers", public portals and special programs has contributed to the process of taking advantage of the opportunities that this technology offers to the society. .

Finally, it is clear to say that all the objectives of public policy, as well as the concrete actions that stem from them, must take into account the framework of multilateral rules of the WTO that impinge on these new instruments, so that the fulfillment of these objectives serve truly as a means for the developing countries to succeed in reducing the digital divide.

Notes

1. In relation to this aspect, the adherence of our countries to the Information Technology Agreement (ITA) would be very helpful since the signatory countries of this agreement may import hardware originating from the other signatory countries at zero tariff. [Back].

2. In the case of Venezuela, the knowledge on the part of the government of the importance of these new technologies, is evidenced by the passing of the “Law of Digital Signature” and the decree about the access and use of Internet. [Back].

3. Source: ITU 1999, Challenges to he Network Internet for Development. Geneva. [Back].

4. The end of the monopoly granted by the government to the CANTV as well as the recent passing of the “Telecommunications Law,” are examples of what Venezuela has done in his sense. [Back].

5. Óscar Hernández, La nueva economía y los retos para Venezuela. [Back].

6. Source: OECD 2001, Understanding The Digital Divide. Paris. [Back].

7. Spain is a good example of the implementation of this type of policies to support this sector; the Spanish government, through various decentralized organisms and ministries, loans soft credits for diverse projects related to I.T. [Back].

8. See the publication Understanding the Digital Divide of the year 2001 of the OECD for more details regarding the underlying rationale of these policies. [Back].