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Sunday, December 13, 2009

Developing countries must boost broadband: U.N.

Jonathan Lynn

GENEVA
Mon Oct 26, 2009 8:06am EDT
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GENEVA (Reuters) - Developing countries risk missing out on the benefits of information technology because of their lack of broadband infrastructure, a U.N. agency said.
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Lack of broadband Internet access deprives countries of the possibility of building up offshoring industries, the United Nations Conference on Trade and Development (UNCTAD) said in a report late on Thursday.
It also prevents people from tapping into all the advantages of mobile phones, whose use is exploding in poor countries.
"The narrowing of the digital divide remains a key development challenge," UNCTAD Deputy Secretary-General Petko Draganov said.
"What is known as the broadband gap for example is becoming a serious handicap for companies in many poor countries," he told a briefing to launch UNCTAD's Information Economy Report.
Companies and consumers are 200 times more likely to have access to broadband in developed countries than in the poorest Least Developed Countries (LDCs), the report shows.
And the cost of broadband access varies widely -- over $1,300 a month in Burkina Faso, the Central African Republic and Swaziland against less than $13 in Egypt or Tunisia.
Broadband is essential for offshoring industries such as call centers and back offices, which many developing countries in Africa, the Caribbean and Asia want to develop and expand.
Such industries are likely to expand despite the economic crisis because they enable companies in rich countries to cut costs, UNCTAD notes.
Broadband allows consumers to make better use of their mobile phones -- rapidly overtaking computers as the information and communications technology (ICT) tool of choice in developing countries.
People in poor countries are using mobile phones for banking, to check markets and monitor the weather -- reducing the need for travel and boosting productivity, UNCTAD noted.
As a result mobile phone usage is growing. In Africa there are already 20 times more mobile subscribers than fixed lines, and India added almost 100 million new mobile subscribers in the first seven months of this year, it said.
However, the economic crisis has hit sales of ICT goods such as phones and computers and trade in them declined dramatically last year, according to figures from the top six exporters -- China, Singapore, Japan, Hong Kong, United States and Germany.
Exports have recovered this year, especially from China, now by far the biggest ICT goods exporter.
This is part of a continuing shift to dominance of the sector by Asia, which already accounted for more than half of ICT goods exports by 2007, UNCTAD said.
ICT exports are not only growing faster in China than elsewhere, but are also the fastest growing sector in China.
(Editing by Jon Boyle)

Developing countries urge WTO trade pact

Monday November 30, 07:40 PM

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Over 100 developing countries called on Sunday for an "urgent" conclusion of negotiations for a world trade liberalisation pact, a day before a key World Trade Organisation ministerial conference.

"The ministers of the G20 called for urgent action on the Doha Round," according to a statement issued by G20 major developing countries led by India and Brazil, and endorsed by the African, Caribbean and Pacific countries, the African group as well as the Least Developed Countries.

Launched in the Qatari capital in 2001, the Doha Round aims at lifting developing countries out of poverty by striking an accord that will cut agriculture subsidies and tariffs on industrial goods.

However, negotiations have been dogged by disagreements on how much major trading blocs such as the United States and the European Union should reduce aid to their farmers and the extent to which developing countries such as India, China and South Africa should lower tariffs on industrial products.

"There is urgent need to translate political statements into concrete engagements in Geneva in order to accomplish the shared objective of concluding the Round in 2010," said the statement issued after a meeting between G20 ministers.

Without naming names, Brazil's Foreign Minister Celso Amorim pointed in particular to "one country which is stopping us from moving forward."

However, another Latin American diplomat was more explicit, saying: "We clearly lack an explicit position from one of the most important members of the negotiations. We are of course talking about the United States."

He added that the WTO ministerial meeting "should pressure" Barack Obama's administration to take a deeper engagement on trade talks.

World leaders have pledged at several occasions to conclude trade talks but deadlines have been repeatedly missed.

The latest deadline sees negotiations concluding in 2010.

But analysts say that the United States, occupied by domestic problems such as health care and the war in Afghanistan as well as a Democratic-led Congress largely hostile to trade liberalisation, is dragging its feet on putting concrete trade reforms on the table.

G20 countries, including China and Indonesia, on Sunday agreed that "in order to achieve convergence, there is a need for a process that would lead to a narrowing of differences on remaining issues within the next few months.

"The ministers also agreed that there should be a multilateral opportunity early next year to evaluate the progress made, identify remaining obstacles and explore ways to successfully conclude the DDA (Doha Development Agenda) before the end of 2010."

The latest financial crisis which wreaked havoc across the world had also "highlighted the importance and value of a development-oriented and rules-based multilateral trading system," they said.

Saturday, December 12, 2009

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