Embed Size (px)
DESCRIPTION
This presentation was meant to be delivered at the Mauritius ICT Conference on December 7, 2013 by Equinox Advisory Ltd. CEO, Bernard Mallia. It dealt with the brief given for the plenary session in which this presentation was meant to be delivered: "Connectivity and Telecommunications remain at the forefront of any country’s development, and particularly for the ICT sector if it were to be viewed from the lens of inclusive development. While mobile platforms are available aplenty, focus on consumerism without adequate emphasis on increasing productive capacities of citizens’ results in spectacular failures as evidenced in many parts of the world. How should African nations come together to develop collaborative models where technical infrastructure is viewed as a shared model, and growth is pursued collectively across chosen economic sectors?" Ultimately, the chair decided not to go for a presentations approach but to structure the session in the form of a debate. Although the presentation was not delivered, parts of its content was through the debate that ensued. It is being made available on www.equinoxadvisory.com for reference purposes.
Citation preview
CREATING, LEVERAGING & ESTABLISHING INTEROPERABLE INFRASTRUCTURES
MAURITIUS 6 DECEMBER 2013
Bernard Mallia
A MODERN ECONOMY
Trade
Skills Transfers
Foreign Direct Investment
Diplomatic ties with other regions & nations
Increasing Interconnectivity & Digitisation
Distinguished by certain features:
A MODERN ECONOMY
Basic Requirements• Institutions
• Infrastructure
• Macroeconomic Stability
• Health And Primary Education
Efficiency Enhancers• Higher Education And Training
• Market Efficiency (Goods,
Labour, Financial)
• Technological Readiness
• Market Size
Innovation Factors• Business sophistication
• Innovation
Key for
Factor-DrivenEconomies
Key for
Efficiency-DrivenEconomies
Key for
Innovation-DrivenEconomies
Source: WEF
ECONOMIC PRINCIPLES OF DEVELOPMENT
A Taxonomy Of MarketsAnd Their RelationshipWith Regulation:
Basic Irrepressible & Self-enforcing Markets
Sophisticated Socially-contrived Markets
ICT IN DEVELOPMENT POLICY
Any Economy That Aspires To Be SuccessfulNeeds To Aspire To Integrate Itself Within TheGlobal Economy
ICT an end in itself only to a limited extent
ICT As An Enabler & An Enhancer
Helps Achieve Market Efficiency
Alone, Not Enough
Can Lead To Inclusive Development Only If It Is Widely Available
This Means That Prices Should Be Affordable
And Then Only If It Is Part Of A National Strategy That Goes Beyond ICT
SEEING THE BIGGER PICTURE
Industrial Policy
Economic Development Policy
National Competitiveness Policy
Electronic Communications Regulatory Policy
National Politics
Supranational Politics
INDUSTRIAL POLICY
• Strategic effort to encourage development and growth of specific sectors of the economy
• Governments take measures to improve competitiveness and capabilities of domestic firms while promoting structural transformation.
• Macro-level infrastructure (transportation, telecommunications, sanitation, health & energy) is key
• Regulatory Intervention (through market and cost analyses) canmake other sectors that depend on electronic communicationsas their input more competitive BUT it can also make the telecomsindustry itself less competitive
NATIONAL COMPETITIVENESS POLICY
• Macro-level effort to remain competitive in relation to other competing destinations
• Regulating to achieve a level of competitive electronic communications services can be the key to unleash the potential for services in a country
• However, this should not be done at the cost of disincentivisinginfrastructural investment unless Govt is willing to undertake such investment itself
ECONOMIC DEVELOPMENT POLICY
• Electronic Communications have already unleashed previously untapped economic potential even in underserved areas
• Example of farmer in rural Africa
• Having an efficient and affordable electronic communications backbone is going to be even more essential in the future than it has been thus far
• Important to get things right; failing to do so causes widespread harm
ELECTORNICCOMMUNICATIONS
REGULATORY POLICYWhy We Regulate Public Utilities
Operative Scale Involved Makes SMP Common
First-Mover Advantage Common (Network Economies)
Duplication Of Infrastructure Not Ideal Where Spare Capacity Exists Already
Ensure Benefits To End-Users
Ensure Technical Efficiency
Ensure Competitiveness Of A Jurisdiction Is Maintained
“Maximise Social Welfare”
BEST PRACTICES IN REGULATION
Incentive Mechanism Design
Institutional Design With Built-in Checks And Balances
Stability And Predictability
Regulator As A Standards Setter
Regulator As An Enabler
Regulator As An Impartial Watchdog
Regulator As A Mediator
Regulator As A Monitor Of Markets & Events
Regulator As A Remedy-Issuing Authority To Ensure Benefits
Rule Of Law
THE POLITICAL PROCESS
• Nothing takes place in a vacuum
• Regulation is no exception
• The political process (both on anational level and on aninternational level) can and willaffect regulation
• Operators are usually good atlobbying for their interests
• Consumers, on the other hand,are usually not organised anddespite their numbers, theirinterests will be under-represented
ADOPTING & ADAPTING SUCCESSFUL MODELS
• Not Only A Question Of Transposing Regulatory Models & Regimes
• Local Peculiarities Need To Be Taken Into Account
• Institutional Context (Not Only Public Institutions But Private As Well)
• Infrastructure
• HR Skills
• Available Funds
• Need Therefore To Give Regulation A Local Character
CONCLUSION
ICT Problems In Africa Are NOTInsurmountable
Surmounting Such Problems Is Not Only A Matter Of Building Infrastructure And Letting It Lie Idle
Requires Political Will And Championship As Well As A Stable Environment
Requires The Bridging Of The Digital Divide & Capacity-Building
In Facing These Problems: Africa Does Not Lie Alone & It Can Learn From The Successes & Mistakes Of Other Countries
