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OECD work on Information Society Issues

IT&T Riga, 7 April, 2003

Pekka Lindroos

Head of ICCP Division

DSTI/OECD Secretariat, Paris

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30 member countries economic policy organisation multi-disciplinary approach think-tank and network of policy-makers in capitals policy analysis and advice, not field or investment projects

About the OECD

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Committee analytical reports, policy recommendations

Broadband policies, local loop unbundling,

or Ministerial report Seizing the Benefits of ICT Guidelines and other soft law on information security, privacy, consumer protection or the trust agenda Market reviews e.g. Communication Outlook 2005, IT Outlook 2004 or Digital Delivery of Music Indicators and statistics (Measuring the Information Economy 2002, Handbook The Economic Impact of ICT: Measurement, Evidence and Implications

OECD methods, IS policy outputs

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OECD and the global digital divide

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Broadband

Internet

Mobile

Fixed

Population

Non-OECD OECDGlobal telecommunication subscriber and population ratios, 2003

OECD represents 18% of the world’s population but a majority of the world’s broadband, Internet and mobile subscribers

www.oecd.org/sti

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Policy framework for growth; a wide array of approaches: ICT policies +

– Trade policy– Tax policy– Human resource development– Entrepreneurship– Innovation– e-government –Digital divide and policies for inclusion

OECD multidisciplinary IS work

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ICT as a driver of growth

ICT is a major driver of growth Recent studies attribute a substantial part of productivity growth pick-up to ICT-using sectors, notably services

ICTs drive economic restructuring, changing the dynamics of sectors and value chains

Policy foresight is crucial: New and emerging issues

• Platform convergence and competition

• Digital delivery and outsourcing

• Digital content policies

• Trust in the digital economy – security, spam, privacy, consumer protection

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Economic environmentGlobalisation

Innova

tion

ICT

Human

capita

lEntre

preneu

rs

Smal

l & la

rge

firm

dyn

amic

s

Information economy/ Knowledge based economy

Policy focus

ICT R&D VC

Internet ICT skills

ICT use applications

Policyframework

Productivity & Growth of

External factors

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WSIS I: OECD submitted a document listing all its work on ICT; outcome unclear

WSIS II: OECD inputs: Measuring the Information Society

ICT and social development spam Internet governance

OECD inputs to global policy/WSIS

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OECD on Internet Governance

Input paper to the UN WGIG, by mid-April 2005– Economic benefits of the Internet and ICTs to both OECD and

non-OECD countries – From analysis of the Internet’s evolution, the factors the OECD

believes were key to the success of the Internet:1. Open and decentralised nature: of Internet architecture, of

underlying technological development and of core resource management, non-proprietary nature of the core Internet standards

2. Private sector competition and innovation, enabled by liberalising markets

3. Lightweight governmental and intergovernmental oversight in public policy areas

OECD online resource for UN WGIG http://www.oecd.org/internetgovernance:

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Measuring the Information Economy

• International comparable statistics basis for policy

• Methodology: definitions, model surveys, price baskets etc

• Collection: Statistical Offices, OECD Secretariat

• Annual Key ICT indicators

• Constant evolution of policy relevant technologies

• www.oecd.org/sti/measuringinformationeconomy

•www.oecd.org/sti/telecom

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ICT investment contribution to GDP growth increased in all countries - high in Northern Europe, Australia, US, UK

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

90-95

95-2002*

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High Internet use in Baltic StatesInternet users per 100 inhabitants, 2003

0

10

20

30

40

50

60

70

80

Icela

nd

Sweden

(est)

Korea

United

Sta

tes (

est)

Austra

lia

Denm

ark (

est)

Canad

a (e

st)

Finlan

d

New Z

ealan

d

Nethe

rland

s

United

King

dom

(est)

Japa

n

Germ

any

Austri

a

Estonia

Latvi

a

Belgium

Switzer

land

(est)

Luxe

mbo

urg

Franc

e

Norway

Italy

Irelan

d

Czech

Rep

ublic

Slovak

Rep

ublic

Spain

Poland

Hunga

ry

Lithu

ania

Portu

gal (

2002

)

Greec

e

Mex

ico

Turke

y

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Future perspectives for the digital economy

• the positive development and the promise is confirmed – we are at the end of the beginning

• trust and confidence in the digital economy needs strengthening – we could be at the beginning of the end with spam, viruses,

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Renewed Information Security Guidelines (2002) towards a global culture of security

Cryptography, Authentication Guidelines

Privacy Protection since 1980 Guidelines

Guidelines for Consumers Protection in the Context of Electronic Commerce 1999

Guidelines on Cross-Border Fraud (2003)

OECD SOFTLAW

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OECD work on spam Task Force on spam has to deliver the toolkit in 16 months Form of toolkit to be determined but it will contain practical elements for all stakeholders’ use,

– legislative guidance– cross-border enforcement co-operation– industry lead initiatives and technology solutions– education and awareness– metrics to monitor development

Spam is global, a spamming server can relocate in minutes to another jurisdiction, enforcement co-operation is key National coordination > OECD toolkit > outreach e.g. ITU “22 competent agencies participated in national coordination meeting for OECD toolkit work launch” www.oecd.org/spam

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How to promote ICT use for growth; a look at the enterprise sector ?

Results of ICT diffusion policy peer reviews in 7 countries

• countries studied: Finland, Switzerland, Italy,Korea, Norway, Netherlands, Denmark• sharing experience on what role forrole of government, what seems to work ?• how to assess the results of policy measures?

• peer review method: colleagues with same background discuss and give recommendationsbasing on country reports by OECD secretariat

• www.oecd.org/sti/informationeconomy

Ict for growth

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Common policy themes in reviews

Expand and integrate ICT and business education and training:

– Improve ICT education and incentives to upgrade teaching skills

– Expand workplace training where government support needed

– Develop integrated business and ICT skills – Upgrade recognition systems to make ICT-related skills

transportable

Ict for growth

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Common policy themes in reviews

Focus on restructuring business organisation:

– Organisational structures and capabilities crucial, essentially internal business priority

– Simple policy solutions not clear

– Improve analysis, develop information and demonstration programmes and platforms often with ICT training for micro-enterprises

Ict for growth

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Common policy themes in reviews

ICT small business policies mainstreamed:

– Expand programme reach e.g. e-government and e-procurementmarket-led programmes through business and industry associations

– Awareness of consulting services, lower entry threshold, improve quality

– Training programmes for specific ICT applications

Ict for growth

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Emerging themes

Increase attention to digital content creation and diffusion: – public sector information (maps, meteorological data),

archives (libraries, film and video), public content (museums, cultural content), education and health content

– e-government and public service content including business information

– government development role (Italy) access, pricing, payment mechanisms (Norway)

Ict for growth

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Emerging themes

Evaluate pull-through effects of e-government and e-procurement:

– E-government, government e-procurement and e-invoicing at various stages of uptake

– Potential to induce common e-business processes and standards

– Evidence fragmented requiring more analysis

Ict for growth

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Emerging themes

Expand policy evaluation:

– Considerable room to improve quantitative goal setting and evaluation

– Clearer enunciation of policy rationale in open pro-competitive economic settings

– Getting the competitive business policy framework right, and fostering activities where there may be market failures (R&D) or large social benefits (education)

Ict for growth

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Pekka.lindroos@oecd.org

www.oecd.org/sti/

Paldies!