Program :: Edward M. Malloy /Plenary Session I, Telecommunications Policy as a Development Instrument

Abstract

Telecommunications Policy and Development: A USAID Strategy
By Edward M. Malloy, USAID

ICT advances are creating new opportunities to apply ICT for development. Technological innovations, especially wireless telecommunications and the web-based Internet, supported by policy reform, are rapidly making ICT affordable and accessible in all nations. "Ten years ago, those countries that had mobile cellular networks or were connected to the Internet were in the minority. Today, almost all nations have both."

Globally the ICT sector not only is the second largest economic sector and a major generator of new jobs and businesses worldwide, but also forms the basis of the emerging global "knowledge economy", seen as the main driver of economic growth in the twenty-first century. Just since 1995, coinciding with the global take-off in Internet use , commerce over the Internet has grown from near zero to a trillion dollars; mostly among businesses of industrialized nations. U.S. non-farm productivity growth jumped from its sluggish average of 1.4 percent from 1975 through 1994 to 2.5 percent from 1995 to 2000; and since remained near two percent, even through the recent U.S. recession.

Through country and regional programs, USAID assists developing nations develop and use telecommunications and information technology sector by:
- Promoting pro-competitive legal, policy and regulatory reform in telecommunications and electronic commerce to enable the private sector to take the lead in expanding and using ICT for development;
- Expanding ICT access for under-served populations; e.g. by demonstrating sustainable community ICT centers and providing Internet access for schools and other public service institutions;
- Demonstrating innovative applications across all developmental objectives; e.g.; e-commerce and e-agriculture, telemedicine and health information, distance education, e-government and environmental surveillance; and
- Developing the capacity of government and non-government institutions to achieve regulatory reform, conform to international trade norms, and use ICT for development.

In achieving these ends, USAID promotes gender equity and seeks to collaborate with U.S. industry and other private sector entities as well as with other donor agencies and international organizations. In allocating scarce developmental resources, USAID accords priority to developing nations committed to pro-competitive policies or in special need.

Key to the rapid development and developmental use of ICT is reform of the telecommunications policy and regulatory environment. To foster liberalization of telecommunications, Internet and electronic commerce policy and regulation, USAID promotes competition, private investment, independent regulation, innovation, and universal access. USAID also promotes adherence to international agreements on basic telecom services, information technology, intellectual property protection (IPR), tariff moratorium on electronic transmissions, and cybercrime. Among our priority programs are:
- Promoting telecommunications liberalization,
- Strengthening the Regulator,
- Promoting rural access policy,
- Promoting e-commerce policies, and
- Maintaining an open and secure global Internet.