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World
Economic Forum Press Release - Global Information Technology
Report 2004-2005
Geneva, Switzerland, Wednesday 9 March
Mark
Adams
Head of Media
Tel.: +41 (0)22 869 1212
Fax: +41 (0)22 869 1394
E-mail: mark.adams
http://www.weforum.org
SINGAPORE OVERTAKES
THE UNITED STATES IN THE WORLD ECONOMIC FORUM'S GLOBAL
INFORMATION TECHNOLOGY REPORT
Ranking Places Singapore as the World's
Most Successful Economy in Exploiting ICT Developments
- US Falls to Fifth Place
Geneva, Switzerland, Wednesday
9 March - The United States has dropped four places and
ceded top billing in the World Economic Forum's Global Information
Technology Report to Singapore. Released today, the Report
ranks Singapore as the top economy in exploiting global
ICT (information and communications technology) developments
for the first time. The report places Singapore as the best
performer worldwide in a number of categories - quality
of maths and science education, affordability of telephone
connection charges, and government prioritization and procurement
of ICT - and gets extremely high scores in other areas,
such as affordability of Internet access.
By contrast, the United
States drops to number 5 in the ranking. However, the
loss in rank is less due to actual erosion in performance
with respect to its past history and more to continuing
improvements by its competitors. The United States maintains
global leadership in the business readiness component
of the rankings as well as in variables such as the quality
of its scientific research institutions and business schools
- which have no peer in the world - and the availability
of training opportunities for the labour force as well
as the existence of a well-developed venture capital market,
which has spurred innovation.
With a total coverage of
104 economies worldwide and published for the fourth consecutive
year, The Global Information Technology Report has emerged
as the world's leading assessment of the impact of information
and communication technology (ICT) on the development
and competitiveness of nations. Under the theme "Efficiency
in an Increasingly Connected World", The Global Information
Technology Report 2004-2005 is released at a time of cautious
optimism about the short-term global economic outlook
and the emergence of a broad consensus about the central
role that ICT plays in boosting growth prospects of developed
and developing countries. In line with the World Economic
Forum's efforts to expand the geographical coverage of
the Report, five new countries from diverse regions of
the world (Bahrain, Bosnia and Herzegovina, Cyprus, Georgia
and United Arab Emirates) have been included this year.
"It is clear that
information and communication technologies will continue
to play a growing role in boosting the efficiency of the
increasingly integrated global economy, enabling countries
to improve resource allocation and boost growth prospects.
Singapore is an excellent example of a country that has
been able to make in a relatively short period of time
enormous progress in putting ICT at the service of improved
living standards. Together with a handful of other economies
(Taiwan, Israel, United Arab Emirates, Korea, Estonia,
among others), Singapore's experience highlights the increasingly
central role played by technology as an engine of growth
and competitiveness, even beyond the borders of the rich
industrial countries," said Report co-editor Augusto
Lopez-Claros, Director of the Global Competitiveness Programme
at the World Economic Forum.
The Global Information
Technology Report 2004-2005 consists of three main parts:
the first part presents several analytical studies related
to aspects of ICT development, including a case study
on Taiwan's impressive emergence over the last 20 years
as one of the world's leading manufacturers of ICT products;
the second part contains detailed country profiles providing
a snapshot of each country's level of ICT development;
and the third consists of data tables with country rankings
for each variable comprised by the Index. The overall
main index of the Report, 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.
"There is a strong
correlation between ICT spending and productivity, which
is demonstrated in this research as a strong correlation
between the rankings and global competitiveness,"
said John Chambers, President and CEO of Cisco Systems,
which sponsored the Report. "While ICT usage is a
measure of the present, ICT readiness is perhaps a measure
of the future. Proactive policies and investments by all
levels of government such as encouraging broadband network
infrastructures, the education and literacy of citizens
and ongoing skills training are all components of the
readiness measurement and play an important role in building
the foundations of a country's productivity," he
added.
Highlights
of the Results of the Networked Readiness Index Rankings
2004-2005
- Singapore tops the rankings
of the Networked Readiness Index 2004-2005 for the first
time. This is primarily due to its superior performance
in terms of the ability of individuals and government
to tap into the potential of ICT, as well as actual
government usage of ICT. Singapore's remarkable performance
is a consequence of the government's consistent and
continuous efforts in fostering ICT penetration and
usage, as well as the quality of the country's educational
system and its able use of foreign technology.
- The United States drops
to number 5, following a three-year reign at the top.
However, the loss in rank is less due to actual erosion
in performance with respect to its past history and
more the result of other countries scaling up positions.
The United States maintains global leadership in the
business readiness component of the Networked Readiness
Index as well as in variables such as the quality of
its scientific research institutions and business schools
- which have no peer in the world - and the availability
of training opportunities for the labour force as well
as the existence of a well-developed venture capital
market, which has spurred innovation.
- Nordic countries continue
to build up an impressive track record in the ICT area,
with Iceland, Finland, Denmark and Sweden in the second,
third, fourth and sixth places respectively (and Norway
a respectable 13th). Iceland, in particular, achieved
the greatest improvement among the top performers, climbing
from number 10 the previous year to 2 overall in 2004.
Nordic countries have registered consistently high ICT
penetration rates and the top ten positions over the
last four years. Governments, the business communities
and households are enthusiastic users of new technologies
and the countries have a distinguished record in technological
innovation. Sweden, Finland and Denmark, in particular,
consistently outrank some of the larger European economies
in terms of the number of US patents registered per
million population, a frequently used indicator of a
nation's innovation record. They also enjoy an enviable
regulatory and institutional environment that has nurtured
the growth of the ICT sector.
- Asia and the Pacific
do extremely well this year with Singapore at number
1, Hong Kong and Japan entering for the first time in
the top ten, at 7 and 8 respectively, and Australia,
Taiwan, New Zealand, Korea and Malaysia quite well positioned
at 11, 15, 21, 24 and 27 respectively. India and China
significantly improve their positions climbing to number
39 and 41, compared to 45 and 51 in 2003, respectively.
Japan's top ten performance is noteworthy, given the
country's impressive track record in the area of technological
innovation, second only to the United States in terms
of US patents registered.
- Estonia leads the central
and eastern European countries with a rank of 25 out
of 104, thanks to its excellent regulatory framework
for ICT. The formerly centrally planned economies in
this region tend to rank higher than some of the larger
countries in Latin America, with Estonia, Slovenia,
Hungary, the Czech Republic and Lithuania, scoring higher
than Brazil, Mexico and Argentina, the three largest
Latin American economies. Impressive levels of foreign
direct investment to central and eastern Europe during
the past decade, reflecting comprehensive reforms adopted
ahead of EU accession, have played a central role in
this process.
- The highest ranking
Latin American country is Chile (35), well ahead of
Brazil (46), Mexico (60) and Argentina (76). With the
exception of Chile, the region as a whole suffers from
a poor legal framework for the development of the ICT
sector, heavy administrative burdens, low levels of
government prioritization for ICT development, low Internet
penetration rates and pervasive brain drain, which undermines
the potential for faster growth of the economies' ICT
sectors. Most countries have thus seen an erosion in
their relative ranks within the 104 economies covered.
- South Africa and Tunisia
strengthen their dominant positions among the 23 African
countries covered by the Index, positioning themselves
in 34th and 31st place overall, up from 37th and 40th
position last year respectively. Mauritius ranks 47
and Botswana ranks 50. Botswana has improved its position
by 5 places.
- Among the other markets,
Israel's performance remains noteworthy, posting a rank
of 18 overall showing excellent scores in variables
such as levels of technological sophistication, the
quality of scientific research institutions, the availability
of venture capital and mobile phone penetration. Israel
and Taiwan have scientific establishments that have
built up impressive track records for technological
innovation. Both Israel and Taiwan have an annual number
of US patents registered per million population that
is second only to the United States and Japan. Also
worth mentioning are the cases of the United Arab Emirates
(UAE) and Bahrain, both included in the Index for the
first time and entering the rankings at 23 and 33 respectively.
Notably, the UAE's first-rate performance seems to be
led by a successful government strategy in promoting
ICT penetration and usage.
- A comparison of the
Networked Readiness Index scores over the last four
years confirms last year's trend of a narrowing digital
divide between the most developed and least developed
economies.
Soumitra Dutta, Professor
of Business and Technology and Dean of Executive Education
at INSEAD, co-editor of the Report, explained: "The
Networked Readiness Index (NRI) has evolved into an accepted
global benchmark of an economy's preparation to participate
in and benefit from information and communication technology
developments. Beyond the mere provision of an annual international
cross-section of networked readiness, the publication of
the Report may also be seen as a vehicle whereby governments,
businesses and individuals can assess progress on a regular
basis."
| Country
|
Networked Readiness
Index 2004-2005 |
Networked Readiness
Index 2003-2004 |
|
Country
|
Networked Readiness
Index 2004-2005 |
Networked Readiness
Index 2003-2004 |
| Singapore |
1 |
2 |
|
Romania |
53 |
61 |
| Iceland |
2 |
10 |
|
Morocco |
54 |
64 |
| Finland |
3 |
3 |
|
Namibia |
55 |
59 |
| Denmark |
4 |
5 |
|
Latvia |
56 |
35 |
| United States |
5 |
1 |
|
Egypt |
57 |
65 |
| Sweden |
6 |
4 |
|
Croatia |
58 |
48 |
| Hong Kong |
7 |
18 |
|
Trinidad and Tobago
|
59 |
52 |
| Japan |
8 |
12 |
|
Mexico |
60 |
44 |
| Switzerland |
9 |
7 |
|
Costa Rica |
61 |
49 |
| Canada |
10 |
6 |
|
Russian Federation
|
62 |
63 |
| Australia |
11 |
9 |
|
Pakistan |
63 |
76 |
| United Kingdom |
12 |
15 |
|
Uruguay |
64 |
54 |
| Norway |
13 |
8 |
|
Ghana |
65 |
74 |
| Germany |
14 |
11 |
|
Colombia |
66 |
60 |
| Taiwan |
15 |
17 |
|
Philippines |
67 |
69 |
| Netherlands |
16 |
13 |
|
Vietnam |
68 |
68 |
| Luxembourg |
17 |
14 |
|
Panama |
69 |
58 |
| Israel |
18 |
16 |
|
El Salvador |
70 |
62 |
| Austria |
19 |
21 |
|
Sri Lanka |
71 |
66 |
| France |
20 |
19 |
|
Poland |
72 |
47 |
| New Zealand |
21 |
23 |
|
Bulgaria |
73 |
67 |
| Ireland |
22 |
22 |
|
Gambia |
74 |
82 |
| United Arab Emirates
|
23 |
- |
|
Kenya |
75 |
84 |
| Korea |
24 |
20 |
|
Argentina |
76 |
50 |
| Estonia |
25 |
25 |
|
Uganda |
77 |
80 |
| Belgium |
26 |
24 |
|
Dominican Republic
|
78 |
57 |
| Malaysia |
27 |
26 |
|
Serbia and Montenegro
|
79 |
77 |
| Malta |
28 |
27 |
|
Algeria |
80 |
87 |
| Spain |
29 |
29 |
|
Zambia |
81 |
85 |
| Portugal |
30 |
31 |
|
Ukraine |
82 |
78 |
| Tunisia |
31 |
40 |
|
Tanzania |
83 |
71 |
| Slovenia |
32 |
30 |
|
Venezuela |
84 |
72 |
| Bahrain |
33 |
- |
|
Macedonia |
85 |
75 |
| South Africa |
34 |
37 |
|
Nigeria |
86 |
79 |
| Chile |
35 |
32 |
|
Madagascar |
87 |
92 |
| Thailand |
36 |
38 |
|
Guatemala |
88 |
86 |
| Cyprus |
37 |
- |
|
Bosnia and Herzegovina
|
89 |
- |
| Hungary |
38 |
36 |
|
Peru |
90 |
70 |
| India |
39 |
45 |
|
Georgia |
91 |
- |
| Czech Republic |
40 |
33 |
|
Mali |
92 |
96 |
| China |
41 |
51 |
|
Malawi |
93 |
88 |
| Greece |
42 |
34 |
|
Zimbabwe |
94 |
95 |
| Lithuania |
43 |
42 |
|
Ecuador |
95 |
89 |
| Jordan |
44 |
46 |
|
Mozambique |
96 |
97 |
| Italy |
45 |
28 |
|
Honduras |
97 |
98 |
| Brazil |
46 |
39 |
|
Paraguay |
98 |
91 |
| Mauritius |
47 |
43 |
|
Bolivia |
99 |
90 |
| Slovak Republic |
48 |
41 |
|
Bangladesh |
100 |
93 |
| Jamaica |
49 |
53 |
|
Angola |
101 |
99 |
| Botswana |
50 |
55 |
|
Ethiopia |
102 |
101 |
| Indonesia |
51 |
73 |
|
Nicaragua |
103 |
94 |
| Turkey |
52 |
56 |
|
Chad |
104 |
102 |
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