information technology: propelling economic growth

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


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


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.


Manufacturing

Trade

Finance & Service








GovernanceGood


Capital Investment in ICT Sector?

• Direct Investment• Creation of Investment Funds for Investment in ICT sector in Myanmar• Form JV with Myanmar Company


Manufacturing

Trade

Finance & Service








GovernanceGood


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


Manufacturing

Trade

Finance & Service








GovernanceGood


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!

information technology: propelling economic growth

Documents

ict development plans

intrinsic value of ict

ict access key indicator

capitalict development

socioeconomic development

idi index

implementation myanmar

socio economic performance