World Export Development Forum (WEDF)








 

e-Brief for the Export Strategy-Maker

Debunking Some Digital Economy Myths (2)

India has been extremely successful in participating in the new digital economy. And all indications suggest that it will become even more so. The following are some of the preconceptions about the ICT (information and communications technology) industry and the acquisition of e-competency, that the Indian experience proved to be incorrect.


The myth


The reality

1. The developing country needs to have total country-wide Internet access before the benefits can accrue. In fact, for most developing countries, resources will determine that intermediate, partial and focused strategies are required. Such initiatives have been at the centre of India's success (the STPI scheme).
2. Privatization is the key to telecom growth. Competition, not privatization is the key to better service and growth.
3. The latest telecom system technology is needed. Technology changes so fast that in any case this may not be feasible. Adapting existing infrastructure can be more practical, as confirmed by what is being done in India.
4. Computer literacy is essential to use the Internet effectively. Computer literacy is useful, but it is not essential. IT services on government networks, like land records, licences, weather and agricultural information, etc., can be effectively utilized even by illiterate people. These types of e-government programmes are being successfully conducted in India (e.g. the Hyderabad example).
5. Software engineering graduates are essential to beginning web-based services. True for web-designing and network management. But not true for web-enabled services, like call centres and, medical transcription.
6. Proficiency in the local language is required before offering e-commerce and IT services in that country. Whereas web-sites and other web-services may have their front-end designed in the local language, the back-end services, such as maintenance, software, and technical support, do not need to be. These are in fact, in computer language or English-based medium. Indian engineers are, consequently, in demand in Europe despite their lack of local language knowledge.
7. For promoting and spreading e-commerce capability at the national level, the choice in developing countries is between either the market or a government-controlled initiative. In fact, there is no choice between the two. For its success in deeloping countries, both the government and the private sector need proactive involvement, as happened in India.

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