Thursday, November 7, 2013

LXV - Taking the Pulse of Brazil`s ICT Sector

               This post is a summary of three articles. The first with the title above, published at  http://www.zdnet.com/taking-the-pulse-of-brazils-ict-sector. The second, with the title of, "Malaysia turns to technology in bid to reach high-income status by 2020." Published at http://www.theguardian.com/uk on June,27, 2013. And the third with the title of, "Global Information Technology Report 2013." Published at  http://www.weforum.org/reports/global-information-technology-report-2013.

              A huge driver behind the country`s global economy growth is ICT (information and communications technologies). Brazil`s ICT sector is the fifth largest of the world, enough to make it 8.5% of the Brazil GDP. The industry folks of the country sees IT as an engine of economic growth and a competitive advantage on the global stage. Sergio Pessoa, marketing director at Brasscom, industry association of ICT companies in Brazil said, " Brazil is the fifth largest market in ICT, but if you look at IT, without communications, we are the seventh largest, behind also France and Germany. We have lots of cases of success of utilization of tech. We are one of the largest manufacturers of airplanes. We have the third largest market for PCs and the fifth for mobile phones. Because markets are growing rapidly, we have a lot of pressure in human capital. You have to develop that, so we are working with universities and tech colleges to better align curricula with what the market demands. Language is also a challenge. It is an issue we are working on to continue to promote English education. From a domestic market perspective, there is a huge potential still untapped. Two examples: education and health, so there are significant opportunities to grow in those areas. There are two pillars you have to have: human capital and infrastructure. The risks for us are is ensure that we are delivering quality human capital, technical and language skills to be globally competitive. Education is a key component of that. It has been a big barrier for success here. But also growing quickly has put a lot of stress on existing infrastructure. It can become a barrier also. We have to compete with China, India, Korea, and those countries are putting a great emphasis on education. We have to keep pace with that."         
            Malaysia is pinning its hopes on high-end engineering research and development in a bid to cement its economic transformation. Having established itself as an Asian tiger, Malaysia is now banking on technology to achieve its ambitious goal of attaining high-income status by 2020. The struggle lies in overcoming the "middle-income trap," as countries move up the economic ladder, they lose their comparative advantage of cheap labor, labor-intensive manufacture. At the same time, they lack the skill levels and infrastructure to compete with higher-level countries. "High tech is a priority in Malaysia`s economic transformation," explain Datuk Ghazali , chief of the government`s multimedia development corporation. Set up in 1996, the corporation oversees Malaysia`s ICT development initiative. He said, " we can not compete with China and we do not want to compete with India on call centers. We are more interested in high-end engineering research and development." (R&D). Information and communication technology ( ICT ) constitutes 10.5% of GDP in Malaysia, and the goal is to boost it to 17% by 2020. The focus on technology starts on schools. Primary and secondary schools are being equipped with wireless connection and netbooks devices, the government wants one devices for every five students by next year. In higher education, the government is strengthening ties with international universities.
            The WEF Global IT Report shows that digitization has a measurable effect on economic growth and job creation. In emerging markets, a digital boost could help lift over half a billion people out of poverty over the next decade. New tech have already transformed sectors from healthcare to farming, studies in the report show.  The assessment is based on a broad range of indicators from internet access and adult literacy to mobile phone subscriptions and the availability of venture capital, In addition, indicators such as patent applications and e-government services gauge the social and economic impact of digitization. The BRICS economies, led by Russia (55th) continue to lag behind in the rankings. The report suggests that their rapid economic growth may be in jeopardy unless the right investments are made in ICT, skills and innovation. China ranks in 58th, followed by Brazil in 60th, India in 68th and South Africa 70th. Broadband could revitalize economic growth. Government play a crucial role in supporting this digital development, from funding broadband to addressing issues such as privacy and security. ICT could improve healthcare, reduce medical errors, cut administrative costs and keep patients better informed. ICT could also improve coordination of care for patients with chronic diseases and increase the uptake of preventive services. Colombia, Uruguay and Panama(46th) have become champions of e-government and connectivity. In Colombia(66th), internet connections have tripled in the last two and half years. In Uruguay(52th), small and medium-sized enterprises helped lift tech exports to US$ 225 million in 2010. But several challenges remain, funds to build infrastructure are limited and many people can not afford internet access.