ICT has power to spark economy, say executives

Information and communications technology is bridging the yawning gap between developed and developing countries, and could be just the solution to jump-starting economic growth in both, executives say.
David Harmon, vice-president for global public affairs at Huawei Technologies, says tech innovation is already delivering returns in developing countries and believes the ICT sector could be used to boost exports in countries reliant on the commodities markets.
"The sector is playing a key role in modernizing industries such as agriculture, transport and energy sectors, areas that previously experienced slumps in productivity," he says.
Namibian President hage geingob (second left) participated in a 4.5G network test by Huawei Technology in Windhoek. Xinhua |
Emerging economies need only leverage their strengths by investing in research and development, he adds.
Harmon was speaking in late July on the sidelines of the United Nations Conference on Trade and Development in Nairobi, Kenya, during which Costa Rica announced that recent investments in the ICT sector had reduced its dependence on the commodities market.
According to the nation's government, 30 percent of its exports are now ICT-related products.
India's trade balance has been boosted by the same industry, which employs 10 million people and accounts for 67 percent of the $130 billion global outsourcing market.
However, Harmon says success in the industry hinges on partnerships among stakeholders.
"A country must engage with the best talent, regardless of geographical location," he says, explaining that Huawei has about 79,000 researchers focused on making information transfers quicker, reliable and secure.
"We can learn from one another to deliver a strong economic return and bridge inequality," in addition to achieving the UN's sustainable development goals, he adds.
Talal Abu-Ghazaleh, who runs an international holdings company based in Jordan, agrees that the ICT sector has transformed global trade.
"It accounted for 51 percent of global employment and 70 percent of global GDP growth in 2014," he says. "The world cannot continue to ignore the significant role played by the internet."
Shi Dongwei, vice-president of e-commerce giant Alibaba Holding Group, says his company has successfully developed an ecosystem suitable for global trading, especially for entrepreneurs.
"We have 8.5 million merchants and 423 million global users," he says, referring to the company's Taobao and Tmall platforms. The online shopping sites are popular among young people, he adds, and "our goal is to create 1 million jobs and gain 2 billion customers".
Shi has urged the World Trade Organization to hold roundtable talks on the ICT sector and design rules to harmonize tax and tariffs among member countries, lower company registration costs and simplify processes for gaining certifications in international labor, environment and quality standards.
"The organization should look at promoting the services industry by eliminating obstacles and hurdles that make the landscape unfriendly for e-commerce," he says.
Shi and Abu-Ghazaleh, whose organization has 80 offices in the Middle East and North Africa, agree that UNCTAD also needs to conduct research on consumer protection and have a board to advise on internet trading.
Alibaba Group, Shi says, has been instrumental in proposing the concept of the Electronic World Trade Platform to G20 leaders, who will meet in September in the eastern Chinese city of Hangzhou.
The concept is a private sector-led, multi-stakeholder initiative that promotes public-private dialogue to incubate internet trading rules. It also aims to create a more effective and efficient policy and business environment for cross-border electronic trade development.
"We need a new trading regime that promotes mutual flows of people and products, that fosters an open and conducive e-commerce market for all," Shi says.
lucymorangi@chinadaily.com.cn
(China Daily Africa Weekly 08/12/2016 page27)
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