INTERNET DEVELOPMENT AND GOVERNANCE IN THE UNECE REGION Larissa KAPITSA Ph.D. in Economics Moscow State Institute of International Relations, Russian Federation The Current State of Affairs • The region as a whole is one of the world leaders in terms of: Capacity Capability Usage Trends WHERE DOES THE UNECE REGION STAND? INTERNET PENETRATION BY WORLD REGION, 2007, PENTRATION RATE (% population) 4% Africa 12% Asia 10% Middle East 20% Latin America 40% Europe 54% Australia/Oceania 69% North America 18% World average 0 10 20 30 40 50 60 70 INTERNET USAGE BY WORLD REGION, 2007 (in million) Australia/Oceania 19 Middle East 20 34 Africa 110 Latin America 233 North America 322 Europe 437 Asia 0 50 100 150 200 250 300 350 400 450 WORLD INTERNET USERS, % of total 3% 2% 2% 9% 37% Asia Europe North America Latin America 20% Africa Middle East Australia/Oceania 27% E-GOVERNMENT RATINGS BY REGION (Brown University Report) 2001 2006 North America 51.0% 43.1% Western Europe 34.1% 35.2% - 29.2% Asia 34.0% 35.9% Middle East 31.1% 29.4% CIS 30.9% 30.6% South America 30.7% 28.0% Central America 27.7% 25.0% Africa 23.5% 24.3% Eastern Europe CAPACITY • ITT infrastructure • ITT production and services • ITT-related research • Networks Figure 40. Selected Central and Eastern European countries: broadband (DSL) connection to Internet, 2005 9 1400 8 1200 7 1000 6 800 5 600 4 3 400 2 200 1 S lo ve ni a S lo va ki a P ol an d Li th ua ni a La tv ia H un ga ry 0 E st on ia C ze ch R ep . 0 DSL subscribers (Thousands) DSL penetration rate (% of the population) m e A u nia Az s e r tr i a Bo ba ija sn B ia el n an a Be rus d He lg iu rz e m go Bvuin l ga a C r r ia o Cz a C y tia ec h p R e ru s p De ubl i nm c E s ar k to Fi nia nl a Fr nd a G e nc rm e G r a ny e H u e ce ng Ice ar y la Ire nd la nd Ka I t a ly za Ky k hs rg ta n yz st Li ec La a n h t tv i en a Li s te Lu th u in xe an m ia b Mo o u Ne ld rg th o v er a la No nds rw Po ay P o land r R o tu ga m l an ia R S u Sl o v an M s s ia ak a Re rino pu S l bl o v ic en S p ia S ai T. S w n F. Y. wit e d e R. z n Ma er la ce nd do Un ite Tunia d K rk e Uz ingd y be om k is ta Ma n lta Ar Figure 42. Total broadband Internet connection (all wired & wireless networks): total number of subscribers (in thousands) 12000 10000 8000 6000 4000 2000 0 2002 2005 Lithuania Poland Latvia Hungary Greece Slovakia Portugal Estonia Slovenia Cyprus Spain Italy Ireland France Finland UK Luxembourg Germany Norway Iceland Belgium Austria Netherlands Denmark Sweden EU25: Proportion of Households with Internet Access, 2006 100 80 60 40 20 0 Turkey Switzerland Sweden Spain Slovenia Slovak Republic San Marino Portugal Norway Moldova Luxem bourg Lithuania Latvia Italy Ireland Iceland Hungary Greece Germany France Finland Estonia Denmark Czech Republic Cyprus Belgium Belarus Azerbaijan Austria % of homes with a Personal Computer 100 90 80 70 60 50 2000 2005 40 30 20 10 0 CAPABILITIES • Level of education of population • Awareness of ITT benefits • ITT-related research and innovation USAGE ¾Individual Internet users ¾ITT usage by businesses ¾ITT usage by Governments ¾ITT usage by civil society groups Internet usage in the UNECE region, 2007 100 60000 80 50000 90 70 40000 60 50 30000 30 20000 40 20 10000 10 0 0 gd om d Kin U n it e in e U kr a ey T u rk l a n d z er Swit de n Swe n S pa i e nia S lo v a aki S lo v ia S e rb no M a ri San ia R u s s ia an R om u g al P ort nd P ola ay N orw a nd s er l N eth ac o M on ov a M old a M a lt a do ni M a c e b o u rg m L u xe a nia L i t h u n s t e in h te L i ec ia L a tv It a ly nd Ir e la nd Ic e la ar y H ung ce Gree y an Germ ce Fra n nd F i n la nia E s to ark D e n m R e p u b li c h C z ec us C yp r ti a C ro a a r ia v in a B u lg H e r z e g o ia B os n iu m B el g rus B el a ri a A us t rr a A ndo nia A lb a Internet usage penetration rate (% of population) Internet users (thousands) EU25: Proportion of Individuals Using Internet at Least Once a Week, 2006 Lithuania; 38 Poland; 34 Sw eden; 80 Denmark; 78 Latv ia; 46 Hungary; 42 Greece; 23 Netherlands; 76 Slov akia; 43 Portugal; 31 Austria; 55 Estonia; 56 Belgium; 58 Slov enia; 47 Iceland; 84 Cyprus; 29 Spain; 39 Italy; 31 Norw ay; 77 Ireland; 44 Germany; 59 France; 39 Luxembourg; 65 Finland; 71 UK; 57 The UNECE Economies in Transition: Total Internet Users (000s) R u s s ia P o la n d 10000 R o m an ia A z e rb a ija n G e o rg ia T u r k m e n i s ta n T a j i k i s ta n K y r g y z s ta n K a z a k h s ta n U z b e k i s ta n A lb a n ia B e la ru s B o s n ia & H e rz e g o v in a B u lg a ria C r o a ti a Czech Rep. H u n g ary E s to n i a L i th u a n i a L a tv i a M o ld o v a S lo v a k ia U k ra in e M a c e d o n ia S lo v e n ia S e r b i a & M o n te n e g r o 5000 A rm e n ia 2001 2005 25000 20000 15000 0 The UNECE Economies in Transition: Internet Hosts per 10,000 Inhabitants, 2001 and 2005 500 450 400 350 300 250 200 150 100 50 0 Ar 2005 2001 m A z G Ka Ky Ta Tu Uz Al Be Bo Bu Cr C z E s Hu La Li M P o Ro Ru S l S l M Uk S e th o a b o t j e e o s o l r e n rba org zak gyz i k is rk m be k a ni l aru s nia lga r a ti e ch oni n ga tv ia ua n l do and m a n s ia va k ve n ce d rai n rbi a v a a s ry &M s t ta n en is t a i j a i a hs i R i ia & i i a i a a a oni e a a ep a He ta is a n n on a n n tan . rz te go ne vi n gr a o E-Government on-line availability (online availability of 20 basic public services), 2007 100 90 80 70 60 50 40 30 20 10 0 Switzerland Iceland UK Finland Slovenia Portugal Austria Malta Luxembourg Latvia Italy Spain Ireland Germany Czech R. Belgium DIGITAL DISPARITIES DISPARITIES BETWEEN THE COUNTRIES IN: • Physical ITT infrastructure • Internet infrastructure • Level of Internet awareness • E-skills and literacy • Access (and availability of) to the Internet • PC availability and accessibility THE DIGITAL GAP IN THE UNECE REGION 400 350 300 250 200 150 100 50 0 2001 ICT OI 2005 ICT OI The Digital Gap in the CIS Sub-region Russia 140 Tajikistan 120 Belarus, Rep. of 100 Turkmenistan 80 Ukraine 60 40 20 0 Uzbekistan Kyrgyzstan Georgia Moldova Azerbaijan Kazakhstan Armenia 2001 ICT OI 2005 ICT OI Central and Eastern Europe: The Digital Gap in the Sub-region Albania Slovenia 250 Estonia 200 Bosnia Czech Rep. 150 100 TFYR Macedonia Slovakia 50 0 Romania Hungary Serbia and Montenegro Croatia Bulgaria Lithuania Latvia Poland 2001 ICT OI 2005 ICT OI CIS: PCs per 100 inhabitants Armenia Azerbaijan Georgia Kyrgyzstan Tajikistan Turkmenistan Uzbekistan Belarus Moldova Russia Ukraine 2005 9.85 3.31 4.7 1.9 1.3 7.2 2.82 0.81 8.28 12.1 3.89 Internet users per 100 inhabitants Armenia Azerbaijan Georgia Kyrgyzstan Tajikistan Turkmenistan Uzbekistan Belarus Moldova Russia Ukraine Kazakhstan 2005 5.34 8.07 6.07 5.32 0.3 1.0 3.31 34.8 13.02 15.19 9.81 4.11 The CIS: Internet Users per 100 Inhabitants, 2005 Kazakhstan; 4,11 Ukraine; 9,81 Armenia; 5,34 Azerbaijan; 8,07 Georgia; 6,07 Russia; 15,19 Kyrgyzstan; 5,32 Tajikistan; 0,3 Turkmenistan; 1 Uzbekistan; 3,31 Moldova; 13,02 Belarus; 34,8 Disparities within countries • Geographic (territorial) • Economic (income level) • Social (urban-rural, age, gender, education-level) EU25: Internet Use by Individuals, 2006 (proportion of Internet users among each gender) 90 80 70 60 50 40 20 10 0 Male Female 30 en ed S w a rk nm ds D e rl a n e th N e ia r st Au um i lg Be d n la Ic e a y rw N o an y g rm u r G e m bo xe Lu UK d an nl Fi e c an Fr d n la I re ly It a a in Sp s u pr C y n ia e ov S l ia n to Es g al rt u P o k ia a ov Sl e c ee G r ar y ng Hu ia tv La d la n P o a n ia u th Li Constraining factors: • Deficit of ITT physical infrastructure • Prohibitive costs of ITT equipment and Internet services • Shortage of funds • Lack of trust towards online transaction • Absent and/or inefficient ITT market regulation • Lack of competition MAJOR TRENDS Fixed broadband versus Mobile Access to the Internet Technology convergence (voice + image + data) Internationalized domain expansion Number of Public Internet Access BROADBAND FIXED WIRELESS SUBSCRIBER LINES FORECAST (‘000) 800 600 400 200 0 2002 2003 2004 2005 2006 2007 2008 Russia Bolgary Czechia Hungary Poland Romania Slovakia Ukraine MAIN FORCES OF DIGITAL CONVERGENCE