Digital
Divide and Pakistan Agriculture sector
IT REVOLUTION & THE DIGITAL DIVIDE
Dr. Ijaz H. Khawaja
The 21st century has brought science and technology,
especially information technology, to the forefront of the
advancement. An incredibly vast amount of wealth is being
created in the world market by industry, services and
agriculture. Unprecedented opportunities have been created for
all nations. The developing nations can also benefit from this
opportunity provided they adopt right policies and implement
them. Globalization brings forth its own inequalities, both
internal and external. The information revolution makes it
possible for all to industrialse and develop quickly. With
Governments providing a thrust without trying to control, the
deprived sections of the society can also become part of this
economic activity.
2. Its’ almost 35 years since the computers first came to
Pakistan when certain banks PIA and WAPDA installed computers
at their head offices. During 1970’s and early 80’s import of
computers was banned and one could not import a computer
without the special import license of the Ministry of
Commerce. The restriction was eased in mid 80’s when the
import of computer was put on free list. The import duties
were also reduced and subsequently removed. In the 90’s the
market was flooded with low cost user friendly PC’s that did
not require rigid operating environments. This resulted in
sharp increase in the number of computers imported and
installed. As a result of the government’s liberal policies,
this increase became exponential both in the government as
well as private sector. In March last year, the government
decided to set up the IT & Telecom Division to provide a focal
point for IT at federal level and Prof. Dr. Atta ur Rehman was
appointed the Minister for Science & Technology. Since then as
we all know tremendous development activity has taken place in
the IT Sector in Pakistan.
3. Tracing the history of human development through ages,
first we had the time when all development was agriculture
based. The important inputs for development were land and
labor. The major emphasis then was on increased production of
food and other agricultural crops to achieve prosperity. The
economy was totally agriculture based. Next we had the age
when the industrial development became important. The inputs
required were money (capital), manpower (both management and
labor) and machinery & equipment. The focus was on higher
production, and productivity, reduced cost and better quality
control. And now we are passing through the information
revolution which has been brought about by developments in
information and communication technology. The major input
required for being part of this revolution is manpower,
possessing requisite skills and expertise. This has provided
an opportunity to developing countries to move on the fast
track for economic development and catch up with developed
countries employing IT as the tool to achieve this objective.
4. The greatest emphasis in the National IT Policy approved by
the Government is thus on human resource development including
formal education at school, college and university level as
well as professional training programmes in technical
institutes. Together with a sharp increase in number of IT
graduates, measures are also being taken to improve the
quality of output through establishment of national testing
agency and accreditation council. Other focus areas are
infrastructure development, setting up software parks,
measures for development of IT industry, universal access to
Internet, use of IT in government and e-commerce and
legislative and regulatory measures. The IT policy was
finalized after intensive brain storming, discussions and a
general consensus between IT professionals and users, academia
and industry from all over Pakistan. The measures taken
already include substantial financial allocation for IT in the
budget, drastic reduction in the cost of bandwidth, universal
Internet access, training programme for data entry, medical
transcription personnel and government employees, incentives
and tax holiday for software export and a plan of action for
e=government. Most activities concerning manpower, software
development and IT services shall be in the private sector
while the government will ensure enabling environment and act
as facilitator.
5. There are an estimated 300 million users of Internet
worldwide currently and the number of Web Pages are in access
of 2 billion. The figure has been multiplied several thousand
times during the last few years and is expected to further
rise exponentially in the future. In Pakistan, the number of
Web users presently are estimated to be no more than 1.5
million. In order to provide universal access to Internet, the
Internet facility has been extended to over 425 cities, towns
and villages compared to only 29 about a year ago. This covers
a large segment of population of Pakistan. As a result the
number of Internet users has risen very sharply. The
Government has also drastically reduced the rates of bandwidth
to as low as US $3000 per mega bit per month which is the
lowest in this part of the world. This is meant to provide the
much-needed boost to IT and software industry and lead to
increased foreign exchange earning through export of software
and I.T. services.
6. With all the positive development during the past year at
government level the major emphasis is still on the supply
side. The focus on human resource development, the increased
production of trained manpower in appropriate skills, the
establishment of software parks, reduction in the cost of
connectivity, the universal internet access, the tariff
reduction on imports of hardware/software, the 15 years tax
holiday and fiscal incentives for I.T. industry, training
institutions and software/IT services exporters are the
measures aimed at facilitating the development of I.T.
industry and providing it a framework for growth under a
friendly environment. The plan for e-commerce and cyber laws
will further ensure an enabling framework to our I.T. industry
to develop and grow rapidly.
7. The two issues that require more government attention as
these have not received due emphasis are the demand side of
the I.T. industry and the digital divide which is further
aggravating the wide gulf between have and have nots in our
society. First few words on the demand side of I.T. The
government have set up incubators in Singapore, Sydney and San
Francisco for the software companies. The Singapore incubator,
after its initial success is now lying unutilized. The San
Francisco facility is still not fully functional after six
months in spite of government announcements regarding this.
The ITCN at Karachi was a big show and a number of MOUs were
also signed on the occasion however, it is not known how much
of these MOUs have resulted in real investments or actual
business. The government’s own mega projects like electronic
government and Virtual University have yet to take off.
8. The recent recession in the U.S. in the IT & Telecom sector
has also aggravated the situation. Several companies have laid
off their I.T. staff, the demand of I.T. professionals have
been significantly reduced and orders have been cancelled.
This calls for a very aggressive marketing approach for an
upcoming industry like Pakistan. Simply improving the supply
side and hoping that business will pick up shall not work.
There is need first of all to shed the image of a decadent
society and project Pakistan as a vibrant modern technology
conscious nation. Then we have to establish credibility for
stable long-term policies, an investor friendly regime, a
disciplined educated workforce and an efficient
infrastructure. We also need to focus on skills such as
project management, quality control and financial discipline
which are very important for service delivery in the
international market.
9. The issue of digital divide is even more serious. No matter
how we develop the socio-economic imbalance remains a major
challenge. According to a study conducted by International
Data Corporation in Nov. 2000, the top ten (10) information
economies represent 80% of the global ICT market while the
bottom ten (10) represent collective share of less than 1%.
The gap between nations that can and those that cannot afford
technology investment, known as the digital divide, is a
reality. The top ten countries spending on ICT per capita are
Switzerland, Japan, U.S., Denmark, Singapore, Sweden, Norway,
Netherlands, U.K. and Australia. However, countries like China
and Brazil make the ‘divide’ look like an opportunity. China’s
share of ICT spending has increased more than any other
country during the 90’s. The extent of the digital divide is
also illustrated by the fact that while 70 per cent of EU
labour force is engaged in technology intensive work, while
more than half of world’s population have yet to place a
telephone call.
10. Although computer usage and Internet access are growing
spectacularly in many parts of the world yet today little more
than 5% of world’s population are internet users and about 88%
of these are in the industrialized countries. The U.S. and
Canada alone account for 57% whereas Africa and Middle East
together account for only 1%. It is estimated that over 75% of
all internet information is produced in English. Nearly all
the world’s ICT is produced by approx. 15% of the population
in the developed countries while half of world’s population
has no access to electricity, telephone and other
infrastructure.
11. The digital divide does not exist only between societies
but also within societies. The internet usage is much more
common among younger rather than older people, men rather than
women, urban rather than rural dwellers and people with higher
level of income and education. Even in USA, the typical
Internet user is a 36 years old college educated high income
urban Caucasian. In developing countries less than 5%
computers are attached to the internet and the digital divide
is still wider. Another important factor determining the
extent of internet usage is the cost and availability of
telecommunication facilities. Only countries in East Asia
appear to be keeping up with developed countries in the
diffusion of technological progress.
12. According to ILO’s World Employment Report 2001, as the
ICT grows in many parts of the world, so does the gap between
the digital haves and have nots. The ability of the ICT to
reduce poverty and spur development will be determined by its
impact on employment. The ICT can have a far reaching impact
on the quality of life of marginalized segments of population
by providing more responsive and transparent governance as
well as improving the reach and delivery of health, education
and other social services. In the industrialized world the
impact of ICT on economies is already becoming apparent but in
the rest of the world knowledge production, distribution and
use requires more than mere access to new technologies. In any
new development paradigm countries could seriously risk losing
out, in the short and medium term, to countries that are more
adept in handling new ICTs.
13. There is a consensus that to realize the full potential of
ICT countries must develop software capacity. The software
industry in India which grew at an annual rate of over 50%
during the last decade has created thousands of jobs and
brings in US $4 billion in foreign exchange. But countries
with relatively modest software skills find it difficult to
catch up in terms of capital outlays, labor, skills and the
importance of technology changes, organization and management
in software production. Literacy and education also play
crucial role in the emerging digital era. Two third of world
illiterates are girls and women. While ICT offers hopes for
accelerating development and poverty reduction, it also raises
the specter of further widening the gender as well as the
digital divide.
14. A number of measures have been announced in Pakistan to
provide access to information technology to the deprived
section of the population. Since the total number of PCs and
the number of Internet connections is rather low, these
measures are aimed to let the poorer section of society take
advantage of the Internet and I.T. However, many of the
measures announced still wait for implementation. For example,
Internet Kiosks have been set up at airports but have not been
established so far at gas/petrol stations, railway stations
and post offices. The scholarship schemes for students of I.T.
started last year have not been extended nor the supply of low
cost computers to the schools has so far been done. The cost
of using Internet at Cyber Cafes is still beyond reach of most
people. The provision of free connectivity for universities
has only been done at few locations. The cost of I.T. training
at most institutes continues to remain prohibiting high.
15. Thus the facilities provided have mainly benefited the
elite and the fruits of I.T. revolution are still not
available to vast majority of people. It is hoped that
measures will be taken and such programmes will be implemented
on urgent basis to correct this imbalance which is further
widening the gap between our highly educated urban elite and
the less fortunate sections of the society particularly those
living in rural areas with no or little infrastructure
facilities. If left unchecked, this could increase the
tensions among various sections of the society and alienate
the masses from our programme of economic development and
growth through promotion and usage of information technology.
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