A Case Discussion written and used in the Harvard GCC Summer 2010 Conference Series. 35 talented Chinese and international college students used this case and worked together to tackle this real world problem.
Summer 2010 The Digital Divide Introduction China is among the world’s fastest and largest developing nations. With a high rate of growth, tremendous economic vitality, and a dynamic culture, there is much to be optimistic about. However, as in any nation, there are always chances to increase efficiency and seize new opportunities. Between the urban and rural areas within China’s borders, there is a growing “digital divide” of population access to the Internet and other communication technologies. Socio-economic differences within communities seem to give rise to this disparity; however, research within the past few years has shown that rural regions with less access to digital information tend to fall further behind in human resource development and economic progress. (Furuholt and Kristiansen, 2007). Greater access to the Internet and digital information can give rise to increased opportunities for individuals in the nation of China, and the nation as a whole. Contrary to belief, this divide does not result completely from a lack of access to digital technology, but perhaps is caused to a greater extent by a lack of understanding. According to the 25th Survey Report on the Internet Development in China, “Among the current rural Internet non-users, 38.8% do not use (the) Internet due to a lack of understanding of the computer…, 19.7% due to not having… Internet access devices, (and) 3.5% due to a lack of Internet service in their region” (China Internet Network Information Center, 2010). An increase in computer and Internet usage may not only be life-changing to the individuals who sign on, but also may be beneficial to individuals who help cut down on this divide in rural areas. It has been shown that areas in China with the lowest Internet penetration rates have Internet usage growth rates that are among the highest in all of China, and anywhere there is growth, there is opportunity. A new generation of eager young thinkers (you) will today step forward to try to address the challenges and seize upon the opportunities of this digital divide. This is not just any opportunity, but a chance to enrich the lives and opportunities of people throughout the country. These young thinkers have figured that a self-sustaining social enterprise would be a good way to ensure the continuity of funding for any programs that they want to set up. The government wants to monitor (and possibly work with) the activities of this social enterprise to ensure that its programs are law-abiding and effective. A group of representatives from rural China have also agreed to share their perspectives and hence shape the type of programs that the social enterprise will set up for them. Your Task You will be split into FIVE groups: I. One Group Representing National and Regional Government II. One Group Representing Rural Chinese (Farmers, Workers, Professionals, and Students) III. Three Groups of Social Entrepreneurs In this role playing discussion, your task is to develop a plan for a Social Enterprise that will address the pertinent needs of the beneficiaries (those living in Rural China), and that receives support from the government. The data given to you below on pages 2 through 7 contains information that will help your group develop your ideas and shape your discussion. Pages 8 through 9 will explain the rules. Global China Connection Case Discussion Global China Connection Case Discussion - Summer 2010 1
Transcript
Summer 2010
The Digital DivideIntroductionChina is among the world’s fastest and largest developing nations. With a high rate of growth, tremendous economic vitality, and a dynamic culture, there is much to be optimistic about. However, as in any nation, there are always chances to increase efficiency and seize new opportunities.
Between the urban and rural areas within China’s borders, there is a growing “digital divide” of population access to the Internet and other communication technologies. Socio-economic differences within communities seem to give rise to this disparity; however, research within the past few years has shown that rural regions with less access to digital information tend to fall further behind in human resource development and economic progress. (Furuholt and Kristiansen, 2007). Greater access to the Internet and digital information can give rise to increased opportunities for individuals in the nation of China, and the nation as a whole.
Contrary to belief, this divide does not result completely from a lack of access to digital technology, but perhaps is caused to a greater extent by a lack of understanding. According to the 25th Survey Report on the Internet Development in China, “Among the current rural Internet non-users, 38.8% do not use (the) Internet due to a lack of understanding of the computer…, 19.7% due to not having…Internet access devices, (and) 3.5% due to a lack of Internet service in their region” (China Internet Network Information Center, 2010).
An increase in computer and Internet usage may not only be life-changing to the individuals who sign on, but also may be beneficial to individuals who help cut down on this divide in rural areas. It has been shown that areas in China with the lowest Internet penetration rates have Internet usage growth rates that are among the highest in all of China, and anywhere there is growth, there is opportunity.
A new generation of eager young thinkers (you) will today step forward to try to address the challenges and seize upon the opportunities of this digital divide. This is not just any opportunity, but a chance to enrich the lives and opportunities of people throughout the country. These young thinkers have figured that a self-sustaining social enterprise would be a good way to ensure the continuity of funding for any programs that they want to set up. The government wants to monitor (and possibly work with) the activities of this social enterprise to ensure that its programs are law-abiding and effective. A group of representatives from rural China have also agreed to share their perspectives and hence shape the type of programs that the social enterprise will set up for them.
Your TaskYou will be split into FIVE groups:
I. One Group Representing National and Regional Government
II. One Group Representing Rural Chinese (Farmers, Workers, Professionals, and Students)
III. Three Groups of Social Entrepreneurs
In this role playing discussion, your task is to develop a plan for a Social Enterprise that will address the pertinent needs of the beneficiaries (those living in Rural China), and that receives support from the government. The data given to you below on pages 2 through 7 contains information that will help your group develop your ideas and shape your discussion. Pages 8 through 9 will explain the rules.
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Report Summary of the 25th Survey Report on the Internet Development in China
• By December 31, 2009, the number of Chinese Internet users reached 384 millions and the Internet penetration rate reached 28.9%. Compared to the end of 2008, Internet users increased 86 millions and the annual growth rate was 28.9%. The Internet user growth rate in China had slowed down slightly.
• The number of broadband users reached 346 millions, a 76 millions increase compared to 2008. In spite of the high penetration rate of broadband, China’s broadband access speed is far behind the Internet developed countries
• The number of Chinese mobile Internet users increased 120 millions, reached 233 millions, accounting for 60.8% of all Internet users. Among them, the number of mobile-phone-only Internet users was 30.7 millions, accounting for 8%, mobile Internet had become a new growing point of Internet users.
• The number of rural Internet users reached 106.81 millions, accounting for 27.8% of all Internet users. The annual growth rate was 26.3%.
• By the end of 2009, the number of IPv4 addresses in China reached 232 millions, an 28.2% increase compared to 2008. In the past two years, the number of IPv4 addresses per Internet user declined continuously. Meanwhile, Global IP addresses are facing depletion. To promote the transition to IPv6-based next-generation Internet has become the current top priority.
• By the end of 2009, the total number of domain name was 16.82 millions, 80% of those were .CN domain name. The number of domain names remained stable.
• The rate for accessing Internet at home and at work increased significantly. In 2009, 83.2% Internet users accessed Internet at home and 30.2% Internet users accessed Internet at work. The value of the Internet as a utility for life and work had been further enhanced.
• The rate for accessing Internet with mobile phones and laptops were increasing rapidly. The growth rate for using mobile phone was 98.5%, and using laptops was 42.4%; while the growth rate for using desktop was only 5.8%. Portability is a distinctive trend of Internet access.
• The online time per week of the Internet users continued to increase, 2.1 hours increase per capita. The rate for using Internet at their spare time is higher. 68.1% of the working population access Internet only at their spare time.
• In 2009, the top three Internet applications were Online music (83.5%), Online news (80.1%), and search engine (73.3%).
• The user population of business transaction applications sustained the fastest growth; the average annual growth rate was 68%. Among them, online payment users increased 80.9% annually, ranking first in all applications. Travel reservation, online stock trading, online banking and online shopping users increased by 77.9%, 67.0%, 62.3% and 45.9%, respectively. China's Internet application shows the trend of the transformation to consumer business.
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Key Tables, Charts, and Figures
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Primary Purposes for Internet Use
Comparison of Occupation of Traditional Internet Users versus Mobile Internet Users
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Comparison of Income of Traditional Internet Users versus Mobile Internet Users
Comparison of Income of Traditional Internet Users in 2009 versus 2008
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Internet Penetration Rate by Monthly Household Income
Geographical Overview of Internet Penetration in China
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Primary Sources Used:
The 25th Survey Report on the Internet Development in China, China Internet Network Information Center (CNNIC), January 2010.http://www.cnnic.net.cn/uploadfiles/pdf/2010/3/15/142705.pdf
Proceedings of the 9th International Conference on Social Implications of Computers in Developing Countries, São Paulo, Brazil, May 2007http://www.ifipwg94.org.br/fullpapers/R0090-1.pdf
Harvard College in Asia Program 2010 Case Discussion Designed by students at the National University of Singapore, March 2010.
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STRUCTURE AND RULES FOR THE DISCUSSIONTime Frame: 150 Minutes (2.5 Hours)
Total Number of Discussants: 35 Students
Number of Teams: 5
Students Per Team: 7
Each team will have 5 Chinese University Students, and 2 International Students
Social Enterprises must craft and gain support for their business plans from the government and representatives of rural China within the time limit. Each SE team can meet with representatives of rural China up to two times, and each meeting can last no more than 6 minutes. The government will call up the SE teams at their discretion to check on their progress -- punctuality at these meetings is very important. These meetings can also last no more than 6 minutes. These discussions will be very important for each team, as it will allow SEs to better understand the needs of those they are trying to serve (and see the best opportunities to create win-win development), let representatives have their voices heard, and allow the government to express its policy views, thereby shaping positive activities on behalf of the SEs.
QUESTIONS TO PONDER BEFORE THE PRESENTATION
Government
1. What type of enterprise would you support? Would you be willing to provide funding for these enterprises? If so, under what conditions?
2. How would you direct the activities of the social enterprise?
3. What are the key performance indicators that you would want the social enterprise to accomplish?
4. What are your key concerns with this type of activity -- namely SE to address the digital divide?
Representatives of Rural China
1. What are your main concerns preventing you from pursuing Internet access - income, education, lack of understanding of technology , something else?
2. What do you, in your profession seek to gain from Internet use?
3. What type of Social Entrepreneurial or business activities would you be willing to participate in? What may most help convince or enable you to make the digital leap?
Social Enterprise
1. Which of the concerns of your target beneficiaries are you focusing on?
2. What programs are you setting up to meet their concerns?
3. What sources of support do you need before you can run the social enterprise?
4. How do you plan to develop your sustainable, profit-earning venture? What will your SE look like?
5. How do you plan to sell your idea to those in rural China and to the government to gain support?
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END OF SESSION SHARING
Government/Representatives of Rural China
1. What is your stance/What are your main needs?
2. How did you regulate/shape the activities of the SEs?
Social Enterprise
1. What is your business idea?
2.What problems did you encounter in crafting your social enterprise; how did you solve them?
EACH GROUP MUST BE READY WITH A PRESENTATION AT THE END OF THE ACTIVITY
Time Breakdown of Discussion:
Time Activity Description
Minutes 0-10
Minutes 10-20
Minutes 20-30
Minutes 30-85
Minutes 85-100
Minutes 100-150
Introduction and Description of Case Study
Separation of groups into different rooms and allowing each team time to meet each other personally
Group Discussion on Individual Group Stance (For example, Social Entrepreneurs will decide what kind of enterprise they will create to address the digital divide)
Discussion Among Groups - SE groups will have 6 minutes per meeting
Final Preparations for Group Presentations
Each Groups Gives up to a 7 Minute Presentation and sharing of thoughts, so that each group will have 10 minutes total of presentation and Q&A time
Total Time = 150 minutesTotal Time = 150 minutes
NOTES FOR ORGANIZERS:Rooms Required:
One Large Room that can hold roughly 50 people. (For Topic Introduction and Presentations)
Four Small Rooms (that can hold at least 10 people) in which each team can meet privately
Materials Required:
40-50 Printouts of this information packet (One for each discussant)
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Harvard College Global China Connection Summer Conference Organizers:
