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The The Global Global Information Information Technology Technology ReportReport 2005-2006 2005-2006Latin American Performance in an
International Perspective
Augusto Lopez-ClarosChief Economist and DirectorGlobal Competitiveness Network
World Economic Forum
Chile
April 2006
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Outline
1. The Global Competitiveness Network
2. The Global Information Technology Report
3. The Networked Readiness Index and 2005-2006 results
4. A closer look at the performance of Latin America
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Part I.The Global Competitiveness Network
Flagship products:
– Global Competitiveness Report, published annually
– Regional and sector-specific reports, focused on Africa, Latin America, the Arab World, the EU…
– The Global Information and Technology Report
Launched in 1979 covering 16 countries
Launched in September 2005, the 26th edition of the Report covers 117 countries
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I. The Global Competitiveness NetworkGeographic coverage
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I. The Global Competitiveness NetworkWhat are we trying to achieve?
Evolution of Real GDP per capita, 1960-2000 (1960 = 100)
Argentina
Brazil
Chile
Korea
Mexico
Thailand
0
200
400
600
800
1,000
1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000
Inde
x va
lue
(196
0 =
100)
Argentina
Brazil
Chile
Korea
Mexico
Thailand
Source: P enn World Table 6.1 , Center for International Comparisons (CIC), University of P ennsylvania, February 2006
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I. The Global Competitiveness NetworkWhat are we trying to achieve?
We would like to cast some light on the factors that help explain these differences and their relative importance.
Why is it that Argentina's and Korea’s GDP per capita have diverged to such an extent in the last 4 decades?
What variables are crucial to enhancing the capacity of an economy to achieve sustained growth over the medium term, controlling for the current level of development ?
The Global Competitiveness Index (GCI) attempts to identify several key factors which play a crucial role in safeguarding the health of a nation’s economy and its ability to grow on a sustained basis.
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Part II.The Global Information Technology Report
Besides the Global Competitiveness Report, the World Economic Forum produces regional and sector-specific reports, among which the Global Information Technology Report (GITR) series
2003-2004 2004-2005 2005-2006
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II. The Global Information Technology Report
Launched in 2001, at first, in collaboration with the Information Technologies Group of the Center for International Development at Harvard University and, from 2002, with INSEAD
Taking into account the crucial importance of information and communication technologies (ICT) for countries’ development and growth, the GITR is a powerful tool for business leaders and policy makers in understanding the enabling factors of ICT advancement
The Networked Readiness Index (NRI) measures the propensity for countries to exploit the opportunities offered by ICT and establishes a broad international framework mapping out the enabling factors of such capacity
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II. The Global Information Technology Report
Both “hard data” (publicly available information) and survey data (from the World Economic Forum’s Executive Opinion Survey) are used in calculating indices
Use most recent available:
Year Number of variables % of total
2001 1 1.5
2002 3 4.5
2003 12 18.2
2004 7 13.6
2005 41 62.1
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II. The Global Information Technology ReportWhy is the GITR important?
Need to move beyond anecdotes
Comprehensive scope
Longitudinal study
Identify trends, best practices
ICT is critical for development and competitiveness
Guidance for policy decisions
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Part III.The Networked Readiness IndexNetworked Readiness Framework
Environment
Individual
GovernmentBusiness
Readiness
Individual
GovernmentBusiness
Usage
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III. The Networked Readiness IndexNetworked Readiness Framework
Networked Readiness Index (NRI)
Environment Readiness Usage
Individual UsageIndividual Readiness
Business UsageBusiness Readiness
Government
ReadinessGovernment Usage
Individual
Environment
Political/Regulatory
Environment
Infrastructure
Environment
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III. The Networked Readiness Index Examples of variables used in the calculation
Environment (20)
Ease to start a new business
Administrative burden
Availability of scientists and engineers
Sophistication of financial markets
Effectiveness of Judiciary
Telephone mainlines
Secure Internet servers
Internet hosts
University/industry collaboration
Readiness (16)
Quality of math and science education
Internet access in schools
Residential telephone connection charges
Quality of business schools
Business telephone connection charges
Government procurement of ICT
Usage (15)
Cellular mobile subscribers
Telephone subscribers
Broadband/DSL Internet subscribers
Government online services
Firm-level technology absorption
Internet users
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III. Unveiling the 2005-2006 resultsTop 20 performers(ranks out of 115 countries)
NRI vs 2004 Environment Readiness Usage
United States 1 UP 4 2 2 6
Singapore 2 DOWN 1 3 1 2
Denmark 3 UP 1 5 4 1
Iceland 4 DOWN 2 1 23 4
Finland 5 DOWN 2 4 3 8
Canada 6 UP 4 6 6 11
Taiwan 7 UP 8 10 8 5
Sweden 8 DOWN 2 14 12 3
Switzerland 9 = 8 11 10
United Kingdom 10 UP 2 13 5 14
Hong Kong SAR 11 DOWN 4 11 13 9
Netherlands 12 UP 4 12 9 12
Norway 13 = 7 22 13
Korea, Rep. 14 UP 10 25 7 7
Australia 15 DOWN 4 9 18 20
Japan 16 DOWN 8 18 14 16
Germany 17 DOWN 3 20 10 21
Austria 18 UP 1 19 19 17
Israel 19 DOWN 1 21 16 15
Ireland 20 UP 2 16 21 22
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III. Unveiling the 2005-2006 resultsTop 10 evolution (ranks out of 115 countries)
Editions 2001-2002 2002-03 2003-04 2004-05 2005-06
Country coverage 75 82 102 104 115
United States 1 2 1 5 1
Singapore 8 3 2 1 2
Denmark 7 8 5 4 3
Iceland 2 5 10 2 4
Finland 3 1 3 3 5
Canada 12 6 6 10 6
Taiwan 15 9 17 15 7
Sweden 4 4 4 6 8
Switzerland 16 13 7 9 9
United Kingdom 10 7 15 12 10
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III. Unveiling the 2005-2006 resultsSelected variables(ranks out of 115 countries)
United States India China Switzerland Israel Chile
1.07 Utility patents 1 56 58 4 6 41
5.08 Scientific and technical journal articles 12 75 69 2 3 41
7.01 Cellular telephones 40 107 69 19 8 43
7.06 DSL Internet subscribers 22 80 47 10 11 41
7.08 Internet users 6 95 70 23 33 34
1.12 Ease of new business registration 10 67 84 17 10 39
1.09 Burden of government regulation 20 74 30 13 38 18
2.03 Judicial independence 17 23 65 3 14 46
4.02 Quality of the educational system 18 25 62 6 17 73
2.06 Property rights 2 32 70 4 26 31
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III. Unveiling the 2005-2006 results Asia and the Pacific(ranks out of 115 countries)
NRI vs 2004 Environment Readiness Usage
Singapore 2 DOWN 1 3 1 2
Taiwan 7 UP 8 10 8 5
Hong Kong SAR 11 DOWN 4 11 13 9
Korea, Rep. 14 UP 10 25 7 7
Australia 15 DOWN 4 9 18 20
Japan 16 DOWN 8 18 14 16
New Zealand 21 = 15 20 23
Malaysia 24 UP 3 22 24 24
Thailand 34 UP 2 38 32 34
India 40 DOWN 1 40 29 46
Mauritius 45 UP 2 51 40 45
China 50 DOWN 9 52 50 49
Pakistan 67 DOWN 4 76 67 61
Indonesia 68 DOWN 17 63 61 75
Philippines 70 DOWN 3 73 75 59
Vietnam 75 DOWN 7 81 76 68
Sri Lanka 83 DOWN 12 75 88 89
Mongolia 92 NEW 103 82 94
Cambodia 104 NEW 98 103 107
Bangladesh 110 DOWN 10 93 113 109
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III. Unveiling the 2005-2006 results Europe(ranks out of 115 countries)
NRI vs 2004 Environment Readiness Usage
Denmark 3 UP 1 5 4 1
Iceland 4 DOWN 2 1 23 4
Finland 5 DOWN 2 4 3 8
Sweden 8 DOWN 2 14 12 3
Switzerland 9 = 8 11 10
United Kingdom 10 UP 2 13 5 14
Netherlands 12 UP 4 12 9 12
Norway 13 = 7 22 13
Germany 17 DOWN 3 20 10 21
Ireland 20 UP 2 16 21 22
France 22 DOWN 2 23 15 19
Estonia 23 UP 2 24 25 18
Spain 31 DOWN 2 31 33 31
Slovenia 35 DOWN 3 45 31 33
Italy 42 UP 3 49 38 36
Turkey 48 UP 4 55 47 44
Latvia 51 UP 5 48 51 52
Poland 53 UP 19 53 44 60
Romania 58 DOWN 5 72 52 57
Russian Federation 72 DOWN 10 78 55 73
Albania 106 NEW 101 104 108
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III. Unveiling the 2005-2006 results Sub-Saharan Africa(ranks out of 115 countries)
NRI vs 2004 Environment Readiness Usage
South Africa 37 DOWN 3 35 34 42
Botswana 56 DOWN 6 43 58 71
Ghana 61 UP 4 47 70 72
Namibia 78 DOWN 23 57 85 82
Uganda 79 DOWN 2 79 86 76
Tanzania 84 DOWN 1 62 105 81
Gambia, The 88 DOWN 14 77 99 86
Nigeria 90 DOWN 4 69 93 100
Kenya 91 DOWN 16 85 91 92
Mali 95 DOWN 3 74 110 74
Cameroon 99 NEW 102 92 99
Mozambique 101 DOWN 5 96 106 95
Madagascar 102 DOWN 15 92 114 93
Zimbabwe 105 DOWN 11 99 97 111
Benin 108 NEW 106 109 102
Chad 114 DOWN 10 115 108 115
Ethiopia 115 DOWN 13 111 115 114
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III. Unveiling the 2005-2006 results Latin America(ranks out of 115 countries)
NRI vs 2004 Environment Readiness Usage
Chile 29 UP 6 33 27 29
Brazil 52 DOWN 6 80 46 38
Jamaica 54 DOWN 5 54 64 48
Mexico 55 UP 5 71 43 54
El Salvador 59 UP 11 65 65 55
Colombia 62 UP 4 70 45 70
Uruguay 65 DOWN 1 56 73 64
Panama 66 UP 3 64 69 67
Costa Rica 69 DOWN 8 60 62 79
Argentina 71 UP 5 83 57 69
Trinidad and Tobago 74 DOWN 15 61 68 87
Venezuela 81 UP 3 100 74 83
Peru 85 UP 5 104 84 77
Dominican Republic 89 DOWN 11 91 95 78
Guatemala 98 DOWN 10 108 96 91
Honduras 100 DOWN 3 95 94 103
Ecuador 107 DOWN 12 114 102 105
Bolivia 109 DOWN 10 112 107 104
Guyana 111 NEW 113 100 112
Nicaragua 112 DOWN 9 110 111 106
Paraguay 113 DOWN 15 105 112 113
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III. Unveiling the 2005-2006 results Middle-East and Northern Africa(ranks out of 115 countries)
NRI vs 2004 Environment Readiness Usage
Israel 19 DOWN 1 21 16 15
United Arab Emirates 28 DOWN 5 27 39 28
Tunisia 36 DOWN 5 36 30 41
Qatar 39 NEW 28 53 39
Kuwait 46 NEW 32 66 53
Jordan 47 DOWN 3 39 54 51
Bahrain 49 DOWN 16 37 71 50
Egypt 63 DOWN 6 59 72 58
Morocco 77 DOWN 23 82 83 66
Algeria 87 DOWN 7 97 81 88
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III. Unveiling the 2005-2006 resultsCase studies
This year, the GITR contains a number of country-specific studies:
– Chile: How did Chile take the lead in Latin America?
– Israel: Identifying factors critical for success in development of ICT
– Taiwan: Assessing the impact of ICT on economic and social development
– Mexico and Korea: A comparative analysis of competitiveness-enhancing ICT strategies
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III. Unveiling the 2005-2006 resultsChile (1)
Despite its small size, Chile has achieved outstanding success in the ICT area, ranking 29th in WEF Technology Index (27th in WEF Global Competitiveness Index)
Chile’s public sector stands out through its exceptional performance in fostering ICT development:
– Government ranks 16th worldwide for ICT Readiness and 16th for ICT Usage in WEF Technology Index
– Chile now acknowledged as amongst most modern tax administrations in world
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III. Unveiling the 2005-2006 resultsChile (2): its path to success in ICT development
Chile pursued a coherent integration of ICT into national strategy for economic growth and social development
Joint public and private sector initiatives on ICT development and its country-wide adoption played a key role
During past decade, public sector has been leading driver of technology adoption
– Developed impressive e-government system,
– Implemented initiatives to bridge digital divide
– Introduced legislation to enhance use of ICTs, covering e-signatures and electronic invoicing
– Deregulated and privatized telecoms sector
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III. Unveiling the 2005-2006 resultsChile (3): major initiatives in ICT development
A number of major initiatives, involving both the public and the private sectors, were key to improving readiness and take-up of ICTs.
e-government system for online tax statements, e-invoicing and fee billing that facilitated and raised tax compliance
ChileCompra, a public platform for purchasing and hiring, recording 270,000 business operations in 2004, totalling US$1.9bn, now largest national e-market
Trámite Fácil, a government site that co-ordinates 39 ministries and public services, offering 227 processes online, incl. official documents, housing subsidies, university credits, etc.
National network of Infocenters to improve IT access for low-income sectors of population
Educational programs to help achieve strategic ICT objectives, such as:
– Enlaces Program providing schools with computers
– EducarChile, a portal offering digital content and tools to spread use of ICT for educational purposes, aimed at decreasing digital income divide
– Digital Literacy campaign aimed at housewives, workers, seniors
– Study of English language
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III. Unveiling the 2005-2006 resultsChile (4): remaining challenges ahead
Despite its success, a number of challenges still remain
Individual Usage and Individual Readiness show up as relative weaknesses in Chile’s WEF Technology Index scores (underscoring that:)
ICT penetration in remote and rural areas remains weak
SMEs need to be more fully integrated into the country’s ICT take-off
Due to the unequal income distribution, there is still a digital divide that needs to be bridged
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III. Unveiling the 2005-2006 results Case studies: Israel (1)
Government’s role is crucial in the emergence of Israel as an “ICT powerhouse”.
Actions include:
– Heavy investment in education along with policies encouraging immigration
– Heavy investment in R&D
– Incentives to attract FDI
– Incubator and venture capital programs to fill the funding gap between R&D and viable business
Also: macroeconomic stability, public sector downscaling
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III. Unveiling the 2005-2006 results Case studies: Israel (2)
Israel's Exports of Software and Citrus (in million US$)
81135
3,000
0
500
1,000
1,500
2,000
2,500
3,000
3,500
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Citrus
Softw are
Source: MATIMOP , Israeli Industry Center for R&D
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III. Unveiling the 2005-2006 results Case studies: Taiwan (1)
Taiwanese Global Share of ICT Products, 2003
0%
20%
40%
60%
80%
100%
Wafe
r Fou
ndry
IC P
KG/Tes
ting
Noteb
ook P
C
Mot
herbo
ard
LCD M
onito
r
TFT-LC
D Pan
el
ODD
NIC
Route
r
Hub/S
witch
WLAN
xDSL
Mod
em
Cable
Mod
em
Analog
Mod
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III. Unveiling the 2005-2006 results Case studies: Taiwan (2)
Taiwan represents one of the most compelling development stories of past half century, rising from a resource-poor agricultural society to a high-tech powerhouse in half a century
Today, it is ranked 3rd in the world in WEF Technology Index and 5th in WEF Global Competitiveness Index
Exceptional strengths include:
– Capacity for innovation,
– Firm-level technology absorption
– University/industry collaboration
– Use of latest technologies (mobile, PCs, Internet)
Can serve as an important role model for other countries
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III. Unveiling the 2005-2006 results Case studies: Taiwan (3)
Taiwan’s success attributed to…
– Government’s key role in pursuing and funding long-term ICT strategic vision as public-private partnership
– Good government, sound macro management, outward-looking orientation, enabling tax environment and supporting infrastructure
– Emphasis on high quality science & tech education
– Reversal of brain drain of 1960/70s through incentives
– Successful incubation and venture capital support for high-tech SMEs
– High-tech science parks based on Silicon Valley model
– Access to large mainland Chinese market
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Part IV. A closer look at the performance of Latin America
NRI vs 2004 Environment Readiness Usage
Chile 29 UP 6 33 27 29
Brazil 52 DOWN 6 80 46 38
Jamaica 54 DOWN 5 54 64 48
Mexico 55 UP 5 71 43 54
El Salvador 59 UP 11 65 65 55
Colombia 62 UP 4 70 45 70
Uruguay 65 DOWN 1 56 73 64
Panama 66 UP 3 64 69 67
Costa Rica 69 DOWN 8 60 62 79
Argentina 71 UP 5 83 57 69
Trinidad and Tobago 74 DOWN 15 61 68 87
Venezuela 81 UP 3 100 74 83
Peru 85 UP 5 104 84 77
Dominican Republic 89 DOWN 11 91 95 78
Guatemala 98 DOWN 10 108 96 91
Honduras 100 DOWN 3 95 94 103
Ecuador 107 DOWN 12 114 102 105
Bolivia 109 DOWN 10 112 107 104
Guyana 111 NEW 113 100 112
Nicaragua 112 DOWN 9 110 111 106
Paraguay 113 DOWN 15 105 112 113
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IV. A closer look at the performance of Latin AmericaArgentina: Profile
Key IndicatorsPopulation (mn), 2003 38.9GDP per capita (PPP US$), 2004 12,468Internet users per 100 inhabitants, 2003 11.2
Networked Readiness Index Rank Rank/115
2005-06 (115) 712004-05 (104) 762003-04 (102) 50
Environment Component Index 83
Market Environment 89Political and Regulatory Environment 87Infrastructure Environment 53
Readiness Component Index 57
Individual Readiness 63Business Readiness 43Government Readiness 74
Usage Component Index 69
Individual Usage 64Business Usage 55Government Usage 85
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IV. A closer look at the performance of Latin AmericaArgentina: Balance sheet
SOME OF ARGENTINA'S COMPETITIVE ADVANTAGES /115 SOME OF ARGENTINA'S COMPETITIVE DISADVANTAGES /115
Environment Component Environment ComponentAvailability of scientists and engineers 47 Burden of government regulation, 2005 99Technological readiness, 2005 45 Extent and effect of taxation, 2005 100Quality of scientific research institutions 44 Number of procedures required to start a business, 2005 107Utility patents, 2004 40 Intensity of local competition, 2005 80Tertiary Education, 2003 22 Effectiveness of law-making bodies, 2005 103Time required to start a business, 2005 41 Laws relating to ICT, 2005 71Quality of competition in the ISP sector, 2005 35 Judicial independence, 2005 104Internet hosts, 2003 34 Intellectual property protection, 2005 71Readiness Component Efficiency of legal framework, 2005 96Local availability of specialized research and training services, 2005 33 Property rights, 2005 109Quality of management schools, 2005 22 Telephone lines, 2003 54Local supplier quality, 2005 46 Readiness ComponentScientific and technical journal articles, 2001 39 Quality of math and science education, 2005 73E-participation index, 2004 36 Quality of the educational system, 2005 77Web-meaure index, 2004 24 Quality of public schools, 2005 70Usage Component Internet access in schools, 2005 63Internet bandwidth, 2002 43 Company spending on research and development, 2005 58Extent of business Internet use, 2005 32 University/Industry research collaborationm 2005 52
Government prioritization of ICT, 2005 107Government procurement of advanced technology products, 2005 85Government R&D subsidies, 2004 103Usage ComponentCellular telephones, 2003 70Personal computers, 2003 53Telephone lines, 2003 54Television sets, 2002 77Internet users, 2003 54Government success in ICT promotion, 2005 102ICT productivity, 2005 80Presence of ICT in government offices, 2005 95
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IV. A closer look at the performance of Latin AmericaBolivia
Key IndicatorsPopulation (mn), 2003 9GDP per capita (PPP US$), 2004 2,902Internet users per 100 inhabitants, 2003 3.7
Networked Readiness Index Rank Rank/115
2005-06 (115) 1092004-05 (104) 992003-04 (102) 90
Environment Component Index 112
Market Environment 106Political and Regulatory Environment 109Infrastructure Environment 90
Readiness Component Index 107
Individual Readiness 102Business Readiness 107Government Readiness 111
Usage Component Index 104
Individual Usage 87Business Usage 100Government Usage 107
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IV. A closer look at the performance of Latin AmericaBrazil: Profile
Key IndicatorsPopulation (mn), 2003 180.7GDP per capita (PPP US$), 2004 8,328Internet users per 100 inhabitants, 2003 10.2
Networked Readiness Index Rank Rank/115
2005-06 (115) 522004-05 (104) 462003-04 (102) 39
Environment Component Index 80
Market Environment 112Political and Regulatory Environment 61Infrastructure Environment 55
Readiness Component Index 46
Individual Readiness 70Business Readiness 34Government Readiness 42
Usage Component Index 38
Individual Usage 52Business Usage 35Government Usage 33
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IV. A closer look at the performance of Latin AmericaBrazil: Balance sheet
SOME OF BRAZIL'S COMPETITIVE ADVANTAGES /115 SOME OF BRAZIL'S COMPETITIVE DISADVANTAGES /115
Environment Component Environment ComponentQuality of scientific research institutions 39 Availability of scientists and engineers 72Utility patents, 2004 50 Venture capital availability, 2005 90Laws relating to ICT, 2005 44 Technological readiness, 2005 56Quality of competition in the ISP sector, 2005 27 Tertiary Education, 2003 74Readiness Component Burden of government regulation, 2005 113Buyer dynamism, 2004 31 Extent and effect of taxation, 2005 115Residential telephone connection charge, 2003 36 Time required to start a business, 2005 114Extent of staff training, 2005 34 Number of procedures required to start a business, 2005 112Local availability of specialized research and training services, 2005 24 Intensity of local competition, 2005 56Quality of management schools, 2005 41 Effectiveness of law-making bodies, 2005 91Company spending on research and development, 2005 29 Judicial independence, 2005 72Local supplier quality, 2005 36 Intellectual property protection, 2005 65University/Industry research collaborationm 2005 40 Efficiency of legal framework, 2005 73Government R&D subsidies, 2004 40 Property rights, 2005 60E-participation index, 2004 36 Telephone lines, 2003 55Web-meaure index, 2004 26 Readiness ComponentUsage Component Quality of math and science education, 2005 100PC households online, 2005 44 Quality of the educational system, 2005 94Foreign technology licensing usage, 2005 37 Quality of public schools, 2005 100Firm-level technology absorption, 2005 46 Scientific and technical journal articles, 2001 55Capacity for innovation, 2005 32 Government prioritization of ICT, 2005 75Telephone/fax infrastructure quality, 2005 40 Usage ComponentAvailability of mobile or cellular telephones, 2005 48 Cellular telephones, 2003 64Extent of business Internet use, 2005 28 Telephone subscribers, 2003 57Availability of online government services, 2005 27 Personal computers, 2003 57ICT productivity, 2005 21 Telephone lines, 2003 55
Internet users, 2003 57Internet bandwidth, 2002 54Government success in ICT promotion, 2005 58Presence of ICT in government offices, 2005 52
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IV. A closer look at the performance of Latin AmericaChile: Profile
Key IndicatorsPopulation (mn), 2003 16GDP per capita (PPP US$), 2004 10,869Internet users per 100 inhabitants, 2003 27.2
Networked Readiness Index Rank Rank/115
2005-06 (115) 292004-05 (104) 352003-04 (102) 32
Environment Component Index 33
Market Environment 30Political and Regulatory Environment 32Infrastructure Environment 52
Readiness Component Index 27
Individual Readiness 54Business Readiness 31Government Readiness 16
Usage Component Index 29
Individual Usage 40Business Usage 29Government Usage 16
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IV. A closer look at the performance of Latin AmericaChile: Balance sheet
SOME OF CHILE'S COMPETITIVE ADVANTAGES /115 SOME OF CHILE'S COMPETITIVE DISADVANTAGES /115
Environment Component Environment ComponentBurden of government regulation, 2005 18 Availability of scientists and engineers 52Intensity of local competition, 2005 7 Venture capital availability, 2005 43Readiness Component State of cluster development, 2004 62Quality of management schools, 2005 15 Quality of scientific research institutions 48Importance of ICT to government's vision of future, 2005 24 Utility patents, 2004 41E-participation index, 2004 13 Political and Regulatory EnvironmentWeb-meaure index, 2004 6 Effectiveness of law-making bodies, 2005 44Usage Component Judicial independence, 2005 46Cable modem Internet subscribers, 2003 26 Intellectual property protection, 2005 45Telephone/fax infrastructure quality, 2005 14 Telephone lines, 2003 56Availability of mobile or cellular telephones, 2005 8 Electricity production, 2002 54Extent of business Internet use, 2005 23 Readiness ComponentAvailability of online government services, 2005 5 Quality of math and science education, 2005 88ICT productivity, 2005 12 Quality of the educational system, 2005 73
Quality of public schools, 2005 82Buyer dynamism, 2004 42Residential telephone connection charge, 2003 49Residential monthly telephone subscription, 2003 66Local availability of specialized research and training services, 2005 39Company spending on research and development, 2005 47Business monthly telephone subscription, 2003 52Local supplier quality, 2005 29University/Industry research collaborationm 2005 45Scientific and technical journal articles, 2001 41Government R&D subsidies, 2004 78Usage ComponentCellular telephones, 2003 43Telephone subscribers, 2003 46Personal computers, 2003 42Telephone lines, 2003 56Internet users, 2003 34Foreign technology licensing usage, 2005 47Firm-level technology absorption, 2005 40Capacity for innovation, 2005 40
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IV. A closer look at the performance of Latin AmericaColombia
Key IndicatorsPopulation (mn), 2003 44.9GDP per capita (PPP US$), 2004 6,959Internet users per 100 inhabitants, 2003 5.3
Networked Readiness Index Rank Rank/115
2005-06 (115) 622004-05 (104) 662003-04 (102) 60
Environment Component Index 70
Market Environment 88Political and Regulatory Environment 60Infrastructure Environment 69
Readiness Component Index 45
Individual Readiness 61Business Readiness 45Government Readiness 37
Usage Component Index 70
Individual Usage 67Business Usage 66Government Usage 80
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IV. A closer look at the performance of Latin AmericaCosta Rica
Key IndicatorsPopulation (mn), 2003 4.3GDP per capita (PPP US$), 2004 9,887Internet users per 100 inhabitants, 2003 21.6
Networked Readiness Index Rank Rank/115
2005-06 (115) 692004-05 (104) 612003-04 (102) 49
Environment Component Index 60
Market Environment 63Political and Regulatory Environment 66Infrastructure Environment 49
Readiness Component Index 62
Individual Readiness 49Business Readiness 33Government Readiness 105
Usage Component Index 79
Individual Usage 56Business Usage 93Government Usage 82
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IV. A closer look at the performance of Latin AmericaDominican Republic
Key IndicatorsPopulation (mn), 2003 8.9GDP per capita (PPP US$), 2004 6,761Internet users per 100 inhabitants, 2003 8.3
Networked Readiness Index Rank Rank/115
2005-06 (115) 892004-05 (104) 782003-04 (102) 57
Environment Component Index 91
Market Environment 86Political and Regulatory Environment 98Infrastructure Environment 74
Readiness Component Index 95
Individual Readiness 104Business Readiness 92Government Readiness 78
Usage Component Index 78
Individual Usage 70Business Usage 61Government Usage 102
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IV. A closer look at the performance of Latin AmericaEcuador
Key IndicatorsPopulation (mn), 2003 13.2GDP per capita (PPP US$), 2004 3,819Internet users per 100 inhabitants, 2003 4.5
Networked Readiness Index Rank Rank/115
2005-06 (115) 1072004-05 (104) 952003-04 (102) 89
Environment Component Index 114
Market Environment 111Political and Regulatory Environment 113Infrastructure Environment 81
Readiness Component Index 102
Individual Readiness 92Business Readiness 99Government Readiness 114
Usage Component Index 105
Individual Usage 71Business Usage 96Government Usage 113
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IV. A closer look at the performance of Latin AmericaEl Salvador
Key IndicatorsPopulation (mn), 2003 6.6GDP per capita (PPP US$), 2004 4,379Internet users per 100 inhabitants, 2003 8.3
Networked Readiness Index Rank Rank/115
2005-06 (115) 592004-05 (104) 702003-04 (102) 62
Environment Component Index 65
Market Environment 52Political and Regulatory Environment 65Infrastructure Environment 82
Readiness Component Index 65
Individual Readiness 59Business Readiness 65Government Readiness 69
Usage Component Index 55
Individual Usage 76Business Usage 43Government Usage 56
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IV. A closer look at the performance of Latin AmericaGuatemala
Key IndicatorsPopulation (mn), 2003 12.7GDP per capita (PPP US$), 2004 4,009Internet users per 100 inhabitants, 2003 3.3
Networked Readiness Index Rank Rank/115
2005-06 (115) 982004-05 (104) 882003-04 (102) 86
Environment Component Index 108
Market Environment 103Political and Regulatory Environment 106Infrastructure Environment 86
Readiness Component Index 96
Individual Readiness 95Business Readiness 88Government Readiness 106
Usage Component Index 91
Individual Usage 89Business Usage 76Government Usage 98
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IV. A closer look at the performance of Latin AmericaGuyana
Key IndicatorsPopulation (mn), 2003 0.8GDP per capita (PPP US$), 2004 4,579Internet users per 100 inhabitants, 2003 14.2
Networked Readiness Index Rank Rank/115
2005-06 (115) 1112004-05 (104) -2003-04 (102) -
Environment Component Index 113
Market Environment 110Political and Regulatory Environment 112Infrastructure Environment 80
Readiness Component Index 100
Individual Readiness 86Business Readiness 108Government Readiness 107
Usage Component Index 112
Individual Usage 85Business Usage 112Government Usage 112
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IV. A closer look at the performance of Latin AmericaHonduras
Key IndicatorsPopulation (mn), 2003 7.1GDP per capita (PPP US$), 2004 2,682Internet users per 100 inhabitants, 2003 4.0
Networked Readiness Index Rank Rank/115
2005-06 (115) 1002004-05 (104) 972003-04 (102) 98
Environment Component Index 95
Market Environment 93Political and Regulatory Environment 89Infrastructure Environment 91
Readiness Component Index 94
Individual Readiness 93Business Readiness 97Government Readiness 98
Usage Component Index 103
Individual Usage 94Business Usage 99Government Usage 99
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IV. A closer look at the performance of Latin AmericaJamaica
Key IndicatorsPopulation (mn), 2003 2.7GDP per capita (PPP US$), 2004 4,327Internet users per 100 inhabitants, 2003 22.8
Networked Readiness Index Rank Rank/115
2005-06 (115) 542004-05 (104) 492003-04 (102) 53
Environment Component Index 54
Market Environment 65Political and Regulatory Environment 45Infrastructure Environment 64
Readiness Component Index 64
Individual Readiness 66Business Readiness 56Government Readiness 63
Usage Component Index 48
Individual Usage 46Business Usage 54Government Usage 41
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IV. A closer look at the performance of Latin AmericaMexico: Profile
Key IndicatorsPopulation (mn), 2003 104.9GDP per capita (PPP US$), 2004 9,666Internet users per 100 inhabitants, 2003 12.0
Networked Readiness Index Rank Rank/115
2005-06 (115) 552004-05 (104) 602003-04 (102) 44
Environment Component Index 71
Market Environment 81Political and Regulatory Environment 68Infrastructure Environment 63
Readiness Component Index 43
Individual Readiness 72Business Readiness 51Government Readiness 26
Usage Component Index 54
Individual Usage 51Business Usage 58Government Usage 51
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IV. A closer look at the performance of Latin AmericaMexico: Balance sheet
SOME OF MEXICO'S COMPETITIVE ADVANTAGES /115 SOME OF MEXICO'S COMPETITIVE DISADVANTAGES /115
Environment Component Environment ComponentFinancial market sophistication, 2005 40 Availability of scientists and engineers 92State of cluster development, 2004 50 Venture capital availability, 2005 92Utility patents, 2004 44 Quality of scientific research institutions 57Number of procedures required to start a business, 2005 29 Tertiary Education, 2003 71Laws relating to ICT, 2005 49 Burden of government regulation, 2005 94Internet hosts, 2003 42 Extent and effect of taxation, 2005 79Readiness Component Time required to start a business, 2005 89Quality of management schools, 2005 36 Effectiveness of law-making bodies, 2005 106University/Industry research collaborationm 2005 50 Judicial independence, 2005 60E-participation index, 2004 6 Intellectual property protection, 2005 60Web-meaure index, 2004 11 Property rights, 2005 66Usage Component Telephone lines, 2003 64Personal computers, 2003 50 Readiness ComponentTelevision sets, 2002 34 Quality of math and science education, 2005 92DSL Internet Subscribers, 2003 46 Quality of the educational system, 2005 79Cable modem Internet subscribers, 2003 34 Quality of public schools, 2005 81PC households online, 2005 31 Company spending on research and development, 2005 63Extent of business Internet use, 2005 49 Scientific and technical journal articles, 2001 58Availability of online government services, 2005 28 Government prioritization of ICT, 2005 80ICT productivity, 2005 42 Government procurement of advanced technology products, 2005 73
Government R&D subsidies, 2004 68Usage ComponentCellular telephones, 2003 58Telephone subscribers, 2003 60Telephone lines, 2003 64Firm-level technology absorption, 2005 75Telephone/fax infrastructure quality, 2005 61Government success in ICT promotion, 2005 79Presence of ICT in government offices, 2005 75
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IV. A closer look at the performance of Latin AmericaNicaragua
Key IndicatorsPopulation (mn), 2003 5.6GDP per capita (PPP US$), 2004 2,677Internet users per 100 inhabitants, 2003 1.7
Networked Readiness Index Rank Rank/115
2005-06 (115) 1122004-05 (104) 1032003-04 (102) 94
Environment Component Index 110
Market Environment 100Political and Regulatory Environment 111Infrastructure Environment 96
Readiness Component Index 111
Individual Readiness 109Business Readiness 104Government Readiness 103
Usage Component Index 106
Individual Usage 95Business Usage 101Government Usage 105
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IV. A closer look at the performance of Latin AmericaPanama
Key IndicatorsPopulation (mn), 2003 3.2GDP per capita (PPP US$), 2004 6,997Internet users per 100 inhabitants, 2003 8.3
Networked Readiness Index Rank Rank/115
2005-06 (115) 662004-05 (104) 692003-04 (102) 58
Environment Component Index 64
Market Environment 57Political and Regulatory Environment 70Infrastructure Environment 65
Readiness Component Index 69
Individual Readiness 73Business Readiness 58Government Readiness 67
Usage Component Index 67
Individual Usage 66Business Usage 53Government Usage 78
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IV. A closer look at the performance of Latin AmericaParaguay
Key IndicatorsPopulation (mn), 2003 6GDP per capita (PPP US$), 2004 4,553Internet users per 100 inhabitants, 2003 2.0
Networked Readiness Index Rank Rank/115
2005-06 (115) 1132004-05 (104) 982003-04 (102) 91
Environment Component Index 105
Market Environment 99Political and Regulatory Environment 114Infrastructure Environment 50
Readiness Component Index 112
Individual Readiness 96Business Readiness 111Government Readiness 115
Usage Component Index 113
Individual Usage 86Business Usage 108Government Usage 115
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IV. A closer look at the performance of Latin AmericaPeru
Key IndicatorsPopulation (mn), 2003 27.6GDP per capita (PPP US$), 2004 5,298Internet users per 100 inhabitants, 2003 10.4
Networked Readiness Index Rank Rank/115
2005-06 (115) 852004-05 (104) 902003-04 (102) 70
Environment Component Index 104
Market Environment 104Political and Regulatory Environment 99Infrastructure Environment 85
Readiness Component Index 84
Individual Readiness 89Business Readiness 78Government Readiness 89
Usage Component Index 77
Individual Usage 81Business Usage 63Government Usage 93
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IV. A closer look at the performance of Latin AmericaTrinidad and Tobago
Key IndicatorsPopulation (mn), 2003 1.3GDP per capita (PPP US$), 2004 12,794Internet users per 100 inhabitants, 2003 10.6
Networked Readiness Index Rank Rank/115
2005-06 (115) 742004-05 (104) 592003-04 (102) 52
Environment Component Index 61
Market Environment 54Political and Regulatory Environment 77Infrastructure Environment 47
Readiness Component Index 68
Individual Readiness 57Business Readiness 61Government Readiness 80
Usage Component Index 87
Individual Usage 47Business Usage 85Government Usage 104
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IV. A closer look at the performance of Latin AmericaUruguay
Key IndicatorsPopulation (mn), 2003 3.4GDP per capita (PPP US$), 2004 9,107Internet users per 100 inhabitants, 2003 16.4
Networked Readiness Index Rank Rank/115
2005-06 (115) 652004-05 (104) 642003-04 (102) 54
Environment Component Index 56
Market Environment 84Political and Regulatory Environment 48Infrastructure Environment 43
Readiness Component Index 73
Individual Readiness 64Business Readiness 67Government Readiness 90
Usage Component Index 64
Individual Usage 57Business Usage 68Government Usage 76
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IV. A closer look at the performance of Latin AmericaVenezuela
Key IndicatorsPopulation (mn), 2003 26.2GDP per capita (PPP US$), 2004 5,571Internet users per 100 inhabitants, 2003 6.0
Networked Readiness Index Rank Rank/115
2005-06 (115) 812004-05 (104) 842003-04 (102) 72
Environment Component Index 100
Market Environment 94Political and Regulatory Environment 107Infrastructure Environment 66
Readiness Component Index 74
Individual Readiness 75Business Readiness 83Government Readiness 70
Usage Component Index 83
Individual Usage 65Business Usage 65Government Usage 109
