NATIONAL ICT STRATEGY AND INFRASTRUCTURE Comparing Kenya with

NATIONAL ICT STRATEGY AND INFRASTRUCTURE Comparing Kenya with her Competitors DR. ERIC M. ALIGULA Infrastructure and Economic Services Division KIPPRA Wednesday 24 March 2004 DR. KATHERINE GETAO School of Computing and Informatics University of Nairobi Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya

Aligula, EM and Getao, Katherine OUTLINE OF THE PRESENTATION Introduction The Need for an ICT Strategy Comparative ICT Infrastructure Status Detailed Case Study – Malaysia Lessons from Case Studies The Way Forward for Kenya Wednesday 24 March 2004 Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya 2

Aligula, EM and Getao, Katherine THE NEED FOR AN ICT STRATEGY 7 Build coalitions for policy and institutional reforms. 6 Focus scarce resources on exploiting ICT for national priorities and sequence and phase complementary investments 6 Clarify roles, build public-private partnerships, facilitate participation by all stakeholders Wednesday 24 March 2004 1 Raise awareness, resources and commitment to action NEED FOR ICT STRATEGY 5 Address coordination failures, exploit network effects, and secure complementary investments Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya 2 Address needs of promising segments of the ICT industry and for export and economy-wide competitiveness 3 Complement market forces, promote societal applications, enable bottom up efforts, & ensure learning and scaling up 4 Re-orient the national innovation system to meet technological learning requirements of ICT 3

Aligula, EM and Getao, Katherine FOCUS OF ICT STRATEGY A Typology NATIONAL ICT STRATEGY ICT as a Sector EXPORT MARKET FOCUS (Costa Rica & India) Wednesday 24 March 2004 ICT as an Enabler NATIONAL CAPACITY/ DOMESTIC MARKET FOCUS (Brazil) GLOBAL POSITIONING FOCUS (Malaysia) Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya DEVELOPMENT GOALS FOCUS (Malaysia, South Africa and Estonia) 4

Aligula, EM and Getao, Katherine ICT STRATEGY Focus of Interventions Country Strategy Overview Key Interventions South Africa ICT targeted as an enabler of development Combines public sector vision and private sector development National Skills Development Initiative E-rate – subsidy for schools internet costs Egypt National ICT Plan focusing on human resource development, development of ICT infrastructure, and building local demand for ICT through effective PPPs Wednesday 24 March 2004 Some Challenges IT Brain Drain Poverty Enhancing IT Literacy Lack of a predictable legal framework around Smart Village consumer rights and Egypt Cyber Centre electronic transactions Education, intermittent instability and poverty Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya 5

Aligula, EM and Getao, Katherine ICT STRATEGY Focus of Interventions Key Interventions Some Challenges Multimedia Super Corridor Development hurdles of a highly rural developing economy Country Strategy Overview Malaysia Government led policies and initiatives aimed at attracting high-end foreign investment and leading a transition to a knowledge economy Singapore Inadequate supply of an ICT-skilled Master plan on workforce IT Education An industry led strategy, in Facilitating SME which the government acts as Liberalisation adoption of ea catalyst of the telecoms Commerce market Small Domestic Market Wednesday 24 March 2004 Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya 6

Aligula, EM and Getao, Katherine COMPARATIVE ICT STATUS Institutional Infrastructure COUNTRY MINISTRY RESPONSIBLE REGULATORY INDICATORS Independent Regulator National ICT Strategy Yes Communications Commission of Kenya No No Communications Kenya Converged Regulator Yes South Africa Telecommunications Regulatory Authority No Yes Communications and Information Technology Yes Telecommunications Regulatory Authority No Yes Energy, Telecommunications and Multimedia No Malaysian Communications and Multimedia Commission No Yes Information, Communications and the Arts Yes Telecommunications Authority of Singapore No Yes • Office of the President • Transport & Communications • Information and Broadcasting South Africa Egypt Malaysia Singapore Wednesday 24 March 2004 Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya 7

Aligula, EM and Getao, Katherine COMPARATIVE ICT STATUS Teledensity and Traffic Flows Wednesday 24 March 2004 Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya 8

Aligula, EM and Getao, Katherine COMPARATIVE ICT STATUS Teledensity and Traffic Flows Wednesday 24 March 2004 Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya 9

Aligula, EM and Getao, Katherine COMPARATIVE ICT STATUS Information Technology, Gateway Capacity and E-Readiness CATEGORY Kenya South Africa Egypt Malaysia Singapore Internet Users per 10, 000 persons 125. 27 682. 01 282. 26 3, 196. 89 5, 043. 59 Internet Hosts per 10, 000 persons 0. 93 43. 75 0. 45 35. 18 812. 62 PCs per 100 persons 0. 64 7. 26 1. 66 14. 68 62. 2 Wednesday 24 March 2004 Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya 10

Aligula, EM and Getao, Katherine COMPARATIVE ICT STATUS Information Technology, Gateway Capacity and E-Readiness Wednesday 24 March 2004 Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya 11

Aligula, EM and Getao, Katherine COMPARATIVE ICT STATUS Information Technology, Gateway Capacity and E-Government Wednesday 24 March 2004 Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya 12

Aligula, EM and Getao, Katherine THE MALAYSIAN ICT STRATEGY Malaysia and ICTs – Why? Recognition that Malaysia was losing its comparative advantage in its traditional economic sectors; Need to drive the economy towards higher productivity through technology and high value-added economic activities; Information Age and converging technologies presented the best opportunities for socio-economic transformation. ICTs AS A TOOL TO ACHIEVE DEVELOPMENT GOALS ICTS AS STRATEGIC ENABLERS IN MOVING MALAYSIA TOWARDS KNOWLEDGE SOCIETY AND KNOWLEDGE ECONOMY Wednesday 24 March 2004 Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya 13

Aligula, EM and Getao, Katherine THE MALAYSIAN ICT STRATEGY Create a mutually supportive feedback loop between demand supply aimed at laying the foundation for the knowledge economy and society Initiate the process through policy intervention National IT Agenda (NITA) formulated in 1996 with the specific aim of transforming Malaysia into a knowledge economy by 2020 NITA implemented through the National Information Technology Council (NITC) Wednesday 24 March 2004 Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya 14

Aligula, EM and Getao, Katherine NATIONAL INFORMATION TECHNOLOGY COUNCIL (NITC) Chaired by the Prime Minister of Malaysia Established in 1994 with the vision of creating a values-based Knowledge Society in line with the aspirations of Vision 2020 Aims to enhance the development and utilization of ICT as a strategic technology for national development Acts as a think-tank at the highest level and advises the government on matters pertaining to the development of ICT in Malaysia Wednesday 24 March 2004 Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya 15

Aligula, EM and Getao, Katherine NITC’S MODEL FOR POLICY INTERVENTION NITC Strategic Initiatives Inter- and Intra Agency Sectoral Policy Organizational Operational Activities Feedback loop for policy review Wednesday 24 March 2004 Policy Framework National level Strategic function Policy coordination and integration Programs & Initiatives National level Tactical function Institutional programme coordination ICT Based Activities Organizational level Operational function Execution Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya 16

Aligula, EM and Getao, Katherine • • THE NATIONAL INFORMATION TECHNOLOGY AGENDA (NITA) Connectivity Equitable access to info Culture of learning Info literacy PEOPLE D N A S Y S T CE QUI AC E INFOSTRUCTURE Info. Age Development Foundation Wednesday 24 March 2004 Sustainable societal innovation for better Quality of Life comprehensive human development VISION 2020 Values-based Knowledge Society TR QU AN AL SF ITA OR TI MA VE TI ON CREATING VALUE • Innovation systems, creativity, Presented at the entrepreneurship through R&D The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya • Life long learning CONTENT & APPLICATIONS Solutions for Info. Age work and life 17

Aligula, EM and Getao, Katherine STRATEGIC THRUST AREAS e-Economy Covered all areas of the economy with the aim of creating value and wealth through successful participation in the emerging knowledge driven economy e-Public Services Focused on the provision of people oriented, customer focused services electronically e-Community Facilitated interaction and communication among communities to improve the quality of life e-Learning Focused on cultivating a life-long learning culture e-Sovereignity Focused on building a resilient national identity in the face of challenges to the nation Wednesday 24 March 2004 Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya 18

Aligula, EM and Getao, Katherine STRATEGIC THRUST AREAS Conferences and Expositions Demonstrator Application Grants (DAGS) Multimedia Super Corridor Wednesday 24 March 2004 Provided a framework and platform for dialogue and exchange of national and international experiences on ICT, as well as to raise the awareness of the Malaysian public about Information Age developments Promoting the use of ICT and multimedia for socioeconomic development through developing communities enabled by electronic networks e. g. Nutri. Web, Cyber. Care, Neighbourhood Centres Provide a comprehensive world-class ICT enabled working and living environment to catalyse development of a knowledge economy. Acted as a global test bed for innovative solutions as well as a hub for development of both local and foreign SMEs Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya 19

Aligula, EM and Getao, Katherine MULTIMEDIA SUPER CORRIDOR STRATEGY Go Global Create the ideal multimedia environment to attract world-class companies to use MSC as a hub Enhance domestic productivity Leapfrog into success in the Information Age Create value from Information Age businesses Catalyze a highly competitive cluster of Malaysian multimedia/IT companies that become world-class over time Wednesday 24 March 2004 Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya Lead Regional 20

THE MULTIMEDIA SUPER CORRIDOR VISION (MSC): FROM 1996 TO 2020 Aligula, EM and Getao, Katherine Phase 1 Link the MSC to other cyber cities in Malaysia and worldwide Successfully create the Multimedia Super Corridor 1996 Phase 3 Phase 2 2003 Transform Malaysia into a knowledge society 2020 2010 ü 1 Corridor • Web of corridors ü 50 world-class companies • 250 world-class companies Leapfrog into leadership in the Information Age ü Launch 7 flagship applications ü World-leading framework of cyber laws • Cyberjaya as worldleading intelligent city Wednesday 24 March 2004 • All of Malaysia • 500 world-class companies • Set global standards in flagship applications • Global test-bed for new multimedia applications • Harmonized global framework of cyber laws • International Cyber Court of Justice in MSC • 4 -5 intelligent cities linked to other global cyber cities • 12 intelligent cities linked to global information highway Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya 21

Aligula, EM and Getao, Katherine CYBERLAWS AND INCENTIVES Malaysian ICT Legal Framework The Telemedicine Act 1997 The Copyright (Amendment) Act 1997 The Electronic Transactions legislation (ETA) Wednesday 24 March 2004 The Computer Crimes Act 1997 MALAYSIAN CYBERLAWS The Electronic Government Activities legislation (EGA) Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya The Communication and Multimedia Act (1998) Digital Signature Act 1997 Personal Data Protection Legislation 22

Aligula, EM and Getao, Katherine CYBERLAWS AND INCENTIVES Bill of Guarantees FINANCIAL NON-FINANCIAL 2. 100 -percent Investment Tax Allowance (ITA) 4. Unrestricted employment of foreign knowledge workers 5. Freedom of ownership 6. 1. Five-year exemption from Malaysian income tax renewable to 10 years, Freedom to source capital globally World-class physical & IT infrastructure 7. 8. Globally competitive tariffs 9. 3. Duty-free importation of multimedia equipment. Wednesday 24 March 2004 High-quality urban development 10. Excellent education facilities & human resource talent pool Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya 23

Aligula, EM and Getao, Katherine FIRST WAVE MSC FLAGSHIP APPLICATIONS Smart Schools Multipurpose Card Electronic Government E-Business R&D Cluster Telehealth Borderless Marketing Center Wednesday 24 March 2004 Technopreneur Development Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya Worldwide Manufacturing Web 24

Aligula, EM and Getao, Katherine RESEARCH & FUNDING FOR ICT MSC Development Grant Scheme Demonstrator Application Grant scheme (DAGS) Industrial Research & Development Grant Schemes Malaysia-MIT Biotechnology Partnership Programme Technology Development for SMI Technology Acquisition Fund (TAF) S&T Infrastructure and Development and Commercialization of Research and Development Intensification of Research in Priority Areas (IRPA) Wednesday 24 March 2004 Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya 25

Aligula, EM and Getao, Katherine ICT ROLES, OPTIONS, OBJECTIVES FOR DEVELOPMENT RECOGNISE INTERVENE DEVELOP ICT Intervention Options ICT Roles Objectives of e -Development GROW Synergies ACCELERATING GROWTH Networking, empowering Wednesday 24 March 2004 – ICT Service/Production Industries ENHANCING PRODUCTIVITY AND COMPETITIVENESS ICT Effective Data Capture, Processing and Communication – ICT-Business Process Reengineering – ICT Enabled Manufacturing and Marketing REDUCING POVERTY –ICT-Empowered Public Services (health, education, & other public services) – ICT Enabled Governance (public accountability, social learning and public Presented at the participation) The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya –ICT Enabled Employment Opportunities ICT Infrastructure for networking and service delivery DIGITAL MULTIPLIER EFFECTS – ICT Enabled Business and Industry ICT Empowerment Accelerating transactions & reducing costs ICT/Knowledge/ Multimedia Industries ICT Friendly Environment Information and Knowledge Delivery 26

Aligula, EM and Getao, Katherine THE STATUS QUO IN KENYA Lack of a single vision that harmonizes the efforts of public and private sector and communities; Some of the key issues have been poorly addressed, namely; – – – infrastructure development, human resource capacity building and dealing with the digital divide. Insufficient consideration as to how ICT initiatives will be funded Wednesday 24 March 2004 Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya 27

Aligula, EM and Getao, Katherine LESSONS FOR KENYA Roles of Government PRODUCERS OF ICT – through the development and deployment of ICT goods and services and ICT infrastructure FACILITATORS OF ICT – through the creation of an enabling environment, including a conducive macroeconomic environment; a fiscal, legal and regulatory framework; and education policies LEADERS OF ICT – – – by implementing e-government (i. e. becoming users of ICT), addressing digital divides in the country, and making ICT a national priority (e. g. through projects) Wednesday 24 March 2004 Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya 28

Aligula, EM and Getao, Katherine LESSONS FOR KENYA Critical Success Factors Strong Political and Administrative Leadership Detailed Project Management with clearly identified goals and benefits Business Process Reengineering Required Focused Change Management Initiatives Adopt established standards and protocols Training Expenses should not be minimized Wednesday 24 March 2004 Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya 29

Aligula, EM and Getao, Katherine LESSONS FOR KENYA The Vision and Mission with regard to ICTs must be in place Enabling ICT Infrastructure and Infostructure must be developed Human resources to support ICT development and application must be nurtured An enabling legal and funding framework Proactive measures to deal with issues of the digital divide Wednesday 24 March 2004 Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya 30

Aligula, EM and Getao, Katherine THE WAY FORWARD FOR KENYA What does Kenya want to do with ICTs? – Vision and Mission – Priority areas What institutional structures must it have in place? – Main partners and stakeholders – Implementation strategy and process – Organisation and coordination How does it fund ICT development? How does it deal with shocks from ICT application? Wednesday 24 March 2004 Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya 31

Aligula, EM and Getao, Katherine “The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it” Michelangelo Wednesday 24 March 2004 Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya 32

Aligula, EM and Getao, Katherine REFERENCES ITU (2003) World Telecommunications Indicators. http: //www. itu. int/ITU-D/ict/statistics/ The World Bank (n. d. ) Information Infrastructure Indicators, 1990 -2010 http: //www. infodev. org/projects/internet/375 pyramid/fi n 375. htm http: //www. nitc. org. my http: //www. mimos. my Wednesday 24 March 2004 Presented at the The National ICT Convention of 23 -25 March 2004 Safari Park Hotel, Nairobi, Kenya 33