Developing economies have been catching up with information and communications technology(ICT) due to stronger intra-regional business ties and rapid growth in mobile phone usage, according to SupachaiPanitchpakdi, the secretary-general of the United Nations Conference on Trade and Development (Unctad), the Bangkok Postreports.
Dr Supachai, speaking yesterday in Bangkok at the launch of Unctad's Information Economy Report 2007-08, saidthe global ICT industry had shifted focus to trade and investment among Asian economies.
Asian growth was driven by China, the largest exporter of ICT goods, and India, the largest exporter of services.Since 2006, ICT trade among Asia's developing economies has surpassed that of its industrialised countries.
''In the past, it was believed that access to ICT products to bridge the 'digital divide' wasconfined to North-North trade. Now cheaper goods, and the World Trade Organisation (WTO), which reduces tariffs, havehelped trade between South-South countries reach equal levels,'' Dr Supachai said.
Asia has seen foreign direct investment in ICT grow from firms based in the region. Mobile phone access inAsia's developing economies has also tripled over the past five years.
''Asia and Africa have the largest mobile telephony penetration rates in the world. The change in theparadigm would help support SMEs [small and medium-sized enterprises],'' Dr Supachai said.
''The internet access gap between industrialised and Asian developing economies has decreased to six times in 2006 from 10 times in 2002. The next challenge for Asian developing economies is to increase broadbanduse.'' A joint study by Unctad and the National Statistics Office showed 60% of local firms use computers.Many maintain websites that have helped sales.
''Internet access and the presence of a website strongly correlates to high sales per employee. There is a 10% increase in sales per employee in local firms that have websites and a 4.5% increase in labourproductivity,'' Dr Supachai said.
He said intellectual property protection was important for innovation. ''Asian countries should reinforceintellectual property protection so that research and development can take place. But they should not be excessivelytightened beyond the WTO until it stifles dissemination of IT,'' he said.
Still, Asian economies should not rush to accept intellectual property restrictions related to drugs when negotiatingbilateral trade pacts. Instead, countries should exercise the benefits permitted under the WTO and the existing Trips(trade-related aspects of intellectual property rights) agreement, said Dr Supachai, a former WTO director-general.
Taweesak Koanantakool, a vice-president of the National Science and Technology Development Agency, said 22.5% ofThailand's population had internet access, 40% of which was broadband.
About 80% of people had mobile phones, compared with 12-13% with access to fixed lines. Thailand's fiscal budgetfor promotion of R&D, at 2% of gross domestic product, was lower than the 2% to 3% spent by developed countries but outpaced China's 1%.
Meanwhile, Dr Supachai said Asian countries should allow their currencies to appreciate so they can more easilyimport goods for investment.
''Thailand should not think that the export outlook will be bleak if the baht strengthens. The yen used to stand at 300 to the dollar. It is now 100 and Japan has not collapsed,'' he said.
''Asian countries should not compete with one another in keeping currencies weak. The government mustspend. The Bank of Thailand's role is to ensure that the baht moves in an orderly manner.'' Dr Supachaialso said the housing crisis in the United States would have a limited impact on Asia.Thai Press Reports
