Information Technology:
Propelling Economic Growth
By
U Thein Oo
Patron, Myanmar Computer Federation
Chairman, Myanmar ICT Development Cooperation
Chairman, Steering Committee for Yangon & Mandalay Computer Universities (CoE)
MESSAGE 1
• It is widely accepted (also in Myanmar) that ICT is at
the centre of an economic and social transformation.
• Advances in ICTs have dramatically changed the World
economy over the last few decades.
• The fact that ICT can propelled economic development
is proven.
• The intrinsic value of ICT lies not in its ease for
communications and information but rather as an
enabler for growth and development. ICT is
considered as a powerful tool for economic growth
and poverty eradication.
IDI and GNI Per Capital
ICT Development is a major factor for well being
Source : ITU
ICT Sector contribution to GDP
ICT Sector contribution to GDP, 2005
6.0%
5.0%
4.8%
4.3%
4.0%
•
ICT has significant impact to socio
economic performance of the country
•
This trend also has positive impact to
the economic growth
•
ICT sector contribution to GDP in Korea
was 17.2% in 2007
4.1%
3.4%
3.0%
2.7%
2.0%
1.6%
1.0%
0.0%
Ethiopia
Rwanda
Uganda
Tanzania
Sudan
Kenya
MESSAGE 2
• Myanmar had plan but no implementation
• Myanmar leaders, business communities and even general
public recognize that ICT is a key enabler for socioeconomic development.
• There are efforts in preparing ICT development plans.
– 2001-2005 Master plan
– 2006-2010 Master plan and Action plan
– 2011-2015 Follow up plan
• But there is still not much concrete implementation efforts
for ICT development.
Framework: ICT for Development
Fundamentals
Good Governance
Clean Government
Transparency
Fair Competition
Inclusiveness
Capital
Human Capital
Technology &
Telecommunication
Infrastructure
Organization
Legal Infrastructure
Financial Capital
ICT Index
Access
Literacy
Use
ICT Industry
Development
Millennium
Development Goals
Sector Development
Access to Knowledge
Access to Market
Access to Technology
Better Communication
Impact (Values)
Economic Development
Food
Clothing
Shelter
Transportation
Social Development
Education
Health
Entertainment
(Leisure)
Political Development
Participation
Agriculture
Trade
Manufacturing
Transportation
Service
Health
Education
Reduce Cost
Improve Productivity
Gain Competitive
Advantage
1. Eliminate Poverty and
Hunger
2. Ensure primary education
for all
3. Promote gender equality
4. Reduce juvenile mortality
5. Better maternal care
6. Combat diseases
7. Ensure sustainable
environment
8. Build global partnership
for development
Vision: 2011-2015 ICT Master Plan
Focused Areas
Action Plan
Action Plan (continued)
MESSAGE 3
• Just developing and talking about vision,
mission and reform and not putting concrete
efforts leave Myanmar at the bottom of IDI
ranking and consequently economic
development.
IDI Index 2010 and 2011
9
Economy
Rank 2011 Rank 2010 IDI 2011
IDI 2010
8
Korea
1
1
8.56
8.45
Singapore
12
10
7.66
7.47
6
Brunei Darussalam
57
52
4.95
4.85
5
Malaysia
58
57
4.82
4.63
Viet Nam
81
86
3.68
3.41
Thailand
92
89
3.41
3.29
Philippines
94
94
3.19
3.04
Indonesia
95
97
3.19
3.01
Lao P.D.R
120
120
1.99
1.84
Cambodia
121
119
1.96
1.88
Myanmar
131
129
1.67
1.65
7
4
3
2
IDI 2011
IDI 2010
1
0
Source : ITU
IDI Access Sub-Index 2010 and 2011
10
9
Economy
Rank
2011
IDI 2011 Rank 2010 IDI 2010
8
Hong Kong
1
9.21
1
9.09
7
Singapore
8
8.38
12
8.12
Brunei Darussalam
44
6.46
41
6.33
Malaysia
54
5.85
51
5.66
Viet Nam
85
4
84
3.81
Thailand
91
3.78
89
3.6
Philippines
99
3.37
98
3.28
Indonesia
101
3.32
105
3.09
Cambodia
113
2.53
111
2.43
Lao P.D.R
120
2.45
124
2.18
149
1.52
148
1.49
155
0.85
155
0.85
6
5
4
IDI 2011
IDI 2010
3
2
1
0
Myanmar
Eritrea
Myanmar teledensity will reach 50% by end of 2015 (MOST).
It is a challenging job. If fulfilled, Myanmar’s ranking may go up.
Source : ITU
ICT Access Key Indicator in Myanmar
Source : MOST
ICT Skill Sub-Index 2010 and 2011
12
Economy
10
8
6
2
2010
IDI 2010
1
9.86
1
9.86
Thailand
62
7.34
64
7.22
Singapore
71
7.08
71
7.08
Brunei Darussalam
72
7.08
72
7.08
Philippines
77
6.96
78
6.96
Malaysia
90
6.69
90
6.69
Indonesia
100
6.41
100
6.41
Viet Nam
101
6.4
101
6.4
Myanmar
111
5.24
111
5.24
Cambodia
120
4.38
120
4.38
Lao PDR
121
4.35
121
4.35
Niger
155
1.45
155
1.45
0
Source : ITU
Rank
20010
Korea (Rep.)
2011
4
Rank 2011 IDI 2011
Myanmar’s ICT Skill Index is not so bad. We may be able to improve
considerably if we give priority to e-Education and ICT HRD.
Skill may be deciding factor in the future.
ICT Use Sub-Index 2010 and 2011
9
8
Economy
Luxembourg
7
Singapore
6
Brunei Darussalam
5
Malaysia
4
3
2
2011
Viet Nam
2010
Thailand
Philippines
Indonesia
1
Lao P.D.R
0
Cambodia
Myanmar
Source : ITU
Rank
2011
IDI 2011
Rank
2010
IDI 2010
1
8.17
1
8.04
6
7.24
6
7.02
56
2.85
48
2.57
62
2.38
56
2.25
76
2.01
79
1.52
92
1.4
93
1.04
98
1.18
94
1.01
100
1.09
95
1
125
0.36
129
0.26
135
0.19
143
0.08
155
0.04
155
0.01
We may still need to increase awareness that ICT is key for
development and systematic efforts are needed.
IMF Estimates: 2011 ASEAN GDP
(nominal)
Country
GDP
(USD Millions)
GDP (PPP)
(USD Millions)
1
Indonesia
845,680
1,124,000
2
Thailand
345,649
616,783
3
Malaysia
278,680
447,279
4
Singapore
259,849
314,911
5
Philippines
213,129
390,408
6
Vietnam
122,722
299,985
7
Myanmar
51,925
82,679
8
Brunei
15,333
20,969
9
Cambodia
12,861
33,463
10
Laos
7,891
17,433
Source : IMF
IMF Estimates: 2011 ASEAN GDP
(per capital)
Country
Source : IMF
GDP per capital
(USD)
1
Singapore
60,500
2
Brunei
50,000
3
Malaysia
15,800
4
Thailand
9,500
5
Indonesia
4,700
6
Philippines
4,100
7
Vietnam
3,400
8
Laos
2,700
9
Cambodia
2,200
10
Myanmar
1,300
MESSAGE 4
• Myanmar is really changing
• ICT Developmentin Myanmar is at the early
stage
• There are many opportunities for cooperation
with countries like United States
Opportunities in Myanmar
Myanmar Attractiveness
• Strategically Located between China,
India & ASEAN
• Significant Market of 60 Million People
Changes in Strategic Elements
• New Democratic Government
• Dedicated, Open Minded and People
Oriented Head of State & Influential
Public Leaders working together
• Young and Dynamic Work Force
• Untouched Natural Environment and
Historical Significance for Tourism
• Agricultural Fertile Lands
• Natural Resources
• Significant Improvements in Rule of
Law and National Reconciliation
• Significant Improvement s in
International Legitimacy
Cooperation for mutual benefits
Myanmar
Problems & Weakness
•Weak Infrastructure
•ICT HRD quality
• Awareness
•Cyber Law
•Technological know-how
•Job Creation
•Entering international Market
•Financial resources
Advantages
•Technology Transfer
•Know-How and Experiences
• ICT use
•Job Creation
• High Income
•Growth in ICT industry
•Increase Competitiveness of Myanmar
• Technical assistance
• Technical Transfer
• Financial Assistant
• Consultation
• Outsourcing
• Investment
• Outsource Human
Resource
• Link to ASEAN
• Globalization
Investors Advantage
• Cost Saving
•Extension of Working Hours
•Overcome Manpower shortage
•Investment Opportunities
•New Market
Involvement in ICT HRD in
Myanmar?
Inclusive Social Economic Development & Poverty Reduction
Necessary
Outcome
Productivity
Quality Products
Good Service
Potential
Sectors
Agriculture
Mining
Oil/GAS
Forestry
Life Stock &
Fisheries
Finance &
Service
Manufacturing
Trade
Enabling
Environment
Legal
Framework
HRD
Logistic
Telecom
Infra
Electricity
Capital
Investment
Basic Elements
Human Rights
Good
Governance
Clean
Governance
Transparency
Fair
Competition
Inclusiveness
•
•
•
•
Assistance in HRD Projects
Establishment of IT educational Institutes
Internship programs
Technical transfer
Investment in ICT Infrastructure
development?
Inclusive Social Economic Development & Poverty Reduction
Necessary
Outcome
Productivity
Quality Products
Good Service
Potential
Sectors
Agriculture
Mining
Oil/GAS
Forestry
Life Stock &
Fisheries
Finance &
Service
Manufacturing
Trade
Enabling
Environment
Legal
Framework
HRD
Logistic
Telecom
Infra
Electricity
Capital
Investment
Basic Elements
Human Rights
Good
Governance
Clean
Governance
Transparency
Fair
Competition
Inclusiveness
•
•
•
Assistance in Infrastructure Building
Any Companies should find opportunities to invest in Infrastructure Projects.
Technological assistance and transfer.
Capital Investment in ICT Sector?
Inclusive Social Economic Development & Poverty Reduction
Necessary
Outcome
Productivity
Quality Products
Good Service
Potential
Sectors
Agriculture
Mining
Oil/GAS
Forestry
Life Stock &
Fisheries
Finance &
Service
Manufacturing
Trade
Enabling
Environment
Legal
Framework
HRD
Logistic
Telecom
Infra
Electricity
Capital
Investment
Basic Elements
Human Rights
Good
Governance
Clean
Governance
Transparency
Fair
Competition
Inclusiveness
•
•
•
Direct Investment
Creation of Investment Funds for Investment in ICT sector in Myanmar
Form JV with Myanmar Company
Involvement in development of
economic sectors?
Inclusive Social Economic Development & Poverty Reduction
Necessary
Outcome
Productivity
Quality Products
Good Service
Potential
Sectors
Agriculture
Mining
Oil/GAS
Forestry
Life Stock &
Fisheries
Finance &
Service
Manufacturing
Trade
Enabling
Environment
Legal
Framework
HRD
Logistic
Telecom
Infra
Electricity
Capital
Investment
Basic Elements
Human Rights
Good
Governance
Clean
Governance
Transparency
Fair
Competition
Inclusiveness
•
•
Find opportunities in interested Sectors and conduct feasibility studies quickly
Find good business partners and build good relationship in interested Sectors
quickly
Conclusion
• We need to recognize that ICT4D is a program aimed at bridging the
digital-divide and bolstering economic development by ensuring equal
access to up-to-date Information and Communication Technologies.
• Myanmar is really changing and reversal is impossible
• Development in Myanmar presents enormous Investment Opportunities
in IT Sector. However, Investment will only be fruitful only with assistance
and technology transfer contributing to capacity building.
• Government commitment and involvement in ICT4D is very important at
the initial stage where private sector cooperation is insufficient. There
must be cooperation and coordination between the two governments.
• Helping Myanmar in development will be mutually beneficial to America.
We can become political, social and economic partners.
Thank You!