Information technology
...f revenue to which GT&T is entitled, the true nature of the rights and obligations of both the government and ATN under the terms and conditions of the agreement, and the payment of management fees to ATN by GT&T. If these problems are not solved expeditiously, the citizens of Guyana will derive little or no advantage from the tremendous advances which have been made, and are still being made, in Information Technology. If these issues are not resolved, Guyana will be obliged to continue to utilise outdated and obsolescent information mechanisms at a time when the country’s development cries out for the employment of modern processes. 6.II.1.3 It is not the intention of the NDS even to attempt to resolve the contretemps between the Government and ATN. These are essentially of a legal nature, and ought therefore to be settled either by the PUC or by the courts. It is our opinion, however, that a word on the nature of "telecommunications monopolies", in this day and age, might not be remiss. First, GT&T’s licence does not appear to embrace a great number of the new services that are becoming available through the rapid changes which are occurring. It is more than probable that if there was competition in Guyana, many of these new facilities would have been marketed. Second, competition in telecommunications is now occurring to a rapidly increasing degree throughout the world in both developed and developing countries. This almost universal trend towards the curtailment of telecommunications monopolies is obviously of great importance to Guyana. We must not be left behind, again, in this matter. We must, therefore, explore every possibility of modernising this sector, if only because it is so basic to our development. Third, it is becoming more and more evident that the telecommunications industry in some developing countries has been able continuously to meet the demands of their consumers, and to provide universal service. In others however, it has been unable to do so. Why is this so? The simple answer appears to be that those countries which have been successful in satisfying the telephonic needs of its citizens have encouraged competition, while those which have failed to do so have tended to be monopolistic. And fourth, it is now becoming generally accepted that there are few, if any, economies of scale in the modern telecommunications industry. This was the contention that was made in the past to justify telecommunications monopolies. This argument does not now appear to be relevant. This is so because there is a range of technological advances which currently enables telecommunications companies to make profits even when competing with others in relatively small markets. 6.II.1.4 It therefore seems that in order to be sure that the basic telecommunications infrastructure which is required for the country’s development is established, the nation’s objective should be the liberalisation of its national telecommunications system. In doing so the strategy should be first to provide a non-contentious environment in which a framework for the modernisation of telecommunications can be negotiated; second, to take advantage of those escape clauses, in the existing GT&T agreement and licence, which already permit competition in some areas; third, the government should seek to renegotiate the GT&T agreement and licence with ATN; and to develop new partnerships among the regulating authorities, entrepreneurs, consumers and itself; and finally, failing all else, it should resort to the courts. 6.II.2 Trade 6.II.2.1 As has been strongly emphasised in the Chapter on Macro-economic Strategies, Guyana’s economic future is to a great extent dependent upon trade, and upon its capacity to be competitive in a globalised world. Indeed, our capacity to export will determine the degree to which investments and economic growth are expanded without the encountering of balance of payments deficits and debt repayment problems. Trade is, therefore, of the most crucial importance to our social and economic development. 6.II.2.2 Information technology can assist our trade prospects in several ways. First, it can enable us to discover new markets not only for our traditional exports, but also for those new products that would result from our diversification programmes. 6.II.2.3 Second, we can improve our trade performance and our efforts at trade promotion by quickly and regularly accessing, through the internet and other means, relevant information on prices, the demand and supply of particular products and services, their specifications, potential buyers, and the periods in which they are frequently required. The inadequate exchange of such data is one of the main reasons for the low-level of commercial trade between Guyana and, for example, the rest of CARICOM. Trade thrives best when producers, exporters and consumers know about each other’s products, product quality, and supply and demand capabilities. 6.II.2.4 Third, the use of computer technology for data processing could speed up delivery time, and reduce transaction costs. 6.II.2.5 Fourth, the application of information technology could help producers to deal directly with exporters thus circumventing the middle-man and, thereby, increasing their profit. 6.II.2.6 Fifth, small-scale producers, in various areas of the country, could, through the use of computers and the internet, combine with each other to obtain and supply export orders which they might not have been able to service on an individual basis. 6.II.2.7 And finally, information technology could extend the scope of our tradeables in the service sector. Through the adoption of electronic commerce we could be in a position to provide or receive, for example, a range of legal, accounting, medical, educational, financial, data processing, retailing and tourism services. Indeed, new types of jobs and new fields of endeavour could become available through access to the information economies of the world: software development, translation services, data entry and data housing services, and data conversion, to mention only a few of the already available opportunities. 6.II.3 Macro-economic and Public Sector Management 6.II.3.1 Although a most significant amount of progress has been made since 1989 in the management both of the country’s economy and its public sector, very much still remains to be done. As we have seen, the country’s economy has not yet been placed on a path of self-sustaining growth, and the incidence of poverty, though reduced, is still disturbingly high. There is also strong evidence that there are inefficiencies both in the mobilisation of resources, and in their utilisation once mobilised. Efforts in stabilising the macro-economic environment, and in improving the efficiency, transparency and accountability of our governance can be greatly assisted by the application of information technology. Such systems can also help us to design, implement and monitor the performance and the effects of the various policy reforms which have been initiated. 6.II.3.2 Moreover, we can use information technology to (i) follow-up on tax collection and validate revenue collection against expenditure; (ii) apply simulation techniques simultaneously to maximise revenue and minimise the tax burden in selected income groups and (iii) help to simplify purchasing procedures. In short, information technology systems, and computer-based modeling, should be used in as wide a range as possible of our governmental transactions. 6.II.4 The Small and Medium Scale Entrepreneur 6.II.4.1 One of the main thrusts of our economic development strategy between 2001 ad 2010 will be, as has been described elsewhere, the upgrading of the capabilities of small and micro-enterprises (SMEs) in Guyana. In this regard, we have emphasised that particular attention will be paid to the provision of credit, the liberalisation and reform of our land tenure system, and the training of small-scale entrepreneurs. In addition to all this, however, because the members of this group operate in an information-starved environment, it will be necessary to provide them with the most basic types of data. Moreover, the means of delivering technical learning to these budding Guyanese entrepreneurs are, as yet, poorly developed. Indeed, they often do not exist. We must therefore utilise information technology effectively to increase the flow of information to these fledgling business-persons and to increase their capacity to "learn-by-copying." 6.II.4.2 Information technology can also help small and medium scale enterprises to form networks and to build alliances. In many developing countries, the building of alliances and networks has led to the formation of clusters of SMEs which reinforce each other, improve their international competitiveness, and expose them to technological change. 6.II.5 Agriculture 6.II.5.1 Although one of the main objectives of this National Development Strategy is the diversification of our economy, Guyana, for a significant time to come, will have to rely on agriculture, in both its traditional and non-traditional guises, for much of its development. Consequently, specific strategies have been put forward in the sectoral chapters that are devoted to various aspects of agriculture, with a view to improving the sector’s productivity and efficiency. The implementation of these strategies would, however, be much enhanced through the adoption of information technology. For example, information systems could be developed to monitor our draining and irrigation systems, the utilisation of our land resources, and the control of crop diseases. Moreover, through information technology, access to new techniques and technologies for improving agricultural production would be considerably increased. Extension officers would then be able to advise growers on ways to step up their productivity. Indeed, the type of knowledge now being disseminated by information technology systems include advances in genetic engineering which could offer opportunities for Guyanese to use seeds and plants that are adaptable to areas of relatively low water availability and sub-optimal soil conditions, and would therefore be of infinite assistance in our utilisation of such locations as the Intermediate and Rupununi Savannas. 6.II.5.2 If Guyana is to emerge quickly from the morass which now seems to hinder its social and economic development, it cannot afford to follow time-worn and beaten paths. We must piggy-back on the new knowledge bases that are being established. We must leap-frog our development. Agriculture is one of the areas in which this process can best occur. Indeed, this is already taking place in many developing countries. For example, in Nigeria and Indonesia the utilisation of information technology has helped immensely in developing agricultural research databases; in Kenya, microcomputers are being used to improve crop forecasting; and, in Thailand, they are assisting in the regulation of irrigation systems in accordance with environmental parameters. The opportunities for the utllisation of information technology to develop Guyana’s agriculture appear to be limitless. 6.II.6 Education and Training 6.II.6.1 Rapid human capital development is essential for sustained economic growth and poverty alleviation in Guyana. As shall be demonstrated later in this National Development Strategy, our country does not currently possess critical masses of trained personnel in almost any of the main areas of our developmental thrust. The inadequacy of our manpower base is therefore one of the main obstacles to our future progress. 6.II.6.2 Serious problems pervade the entire educational system. We need inter alia, to improve both its quality and its relevance; to increase teacher-student ratios; to overcome the limited availability of instructional material; to provide more exposure to science and technology in our schools; and to enhance the access of our University students to international journals and adequate research facilities. 6.II.6.3 Most of the problems of our educational system are caused by inadequate funding and the inefficient use of available resources. Information technology offers a wide range of low-cost solutions. For example, distance education systems which are economic, flexible, and adaptable may be utilised to pursue conventional and unconventional educational ends. Information technology can be employed to establish linkages between the University of Guyana and the University of the West Indies and indeed, with universities further afield, in order to exchange ideas, facilitate research, and to supplement the fragile knowledge base of our country. In addition, new technologies can be utilised to teach classes in a range of schools from one central position, thus requiring a significantly reduced amount of teachers. This can be of particular importance in the country’s thrust to expand the scope of its training and its coverage of technology. 6.II.6.4 The wide potential of information technology in education can be illustrated by the operations of the African Virtual University (AVU). This is a satellite-based distance-education project that was initiated by the World Bank in 1995. Its objectives are to educate and train world-class scientists, technicians, engineers, business managers, health care providers, and the other professionals that are needed to support economic development in Sub-Saharan Africa. Such a scheme might, with imagination, be adapted to Guyana’s conditions. It might help, for example, to solve the persistent problems of low budgets, too few lecturers and professors, obsolescent and obsolete equipment, and limited facilities at the University of Guyana. 6.II.7 Health 6.II.7.1 From what has already been written in respect to the importance of information technology to other sectors, it should be evident that, given the relatively parlous state of our health sector, the new technology can also assist Guyana in several ways. For example, it could help in the establishment of a decentralised decision support system, which seems a necessity in the remote parts of our country; it could provide information on heath profiles; it could enhance our health administration and management through the establishment of medical information systems; and, of the greatest importance to Guyana, it could link our health centres and delivery systems, and help to co-ordinate the medical transportation of patients, especially those who are referred from a lower echelon of the health structure to a higher, in our interior and rural areas. 6.1I.7.2 Moreover, with moderate investments in software and hardware, hospitals can create on-call tele-radiology systems or consult on remote cases over the Internet. There is little doubt, also, that the use of the Internet could also considerably improve the quality of training that is available to our medical students. 6.II.8 The Environment 6.II.8.1 Internet technology could be used in the formulation of environmental strategies by providing data for co-ordinated environmental management in monitoring the implementation of environmental decisions, and by disseminating environmental information. It should become an integral part of the mechanisms that are utilised by the Environmental Protection Agency. 6.II.9 Costs 6.II.9.1 Apart from the inadequacy of our telecommunications services, the high cost of computers and software is perhaps the most serious obstacle to our easy access to the world of information technology. Indeed, the cost of a computer can be higher than Guyana’s annual per capita income. 6.II.9.2 One way of reducing costs, though not perhaps significantly, could be through the waiving of duty on computer software, in addition to that already waived on its hardware. 6.II.9.3 Another way, could be to purchase in bulk. It may well be that suppliers would be willing drastically to reduce prices if there is a commitment to purchase relatively large amounts over time. Using a planning framework, which details the quantities and qualities of the required computers, and spells out how many will be required and at what times, the government might be able to bargain with wholesalers to purchase the necessary amounts at wholesale prices over the time horizon of the plan or strategy. 6.II.9.4 It has also been suggested that, because the design capacity of computers and software is invariably not utilised by the majority of their users, buyers pay for features and qualities which they do not really require. Indeed, it has been put forward that a computer that is perfectly serviceable for Internet connections, word-processing and graphics can be built for less than one-fifth of the cost of the ‘average’ computer. It has also been argued that a modest colour display, with a 13-inch window into the Internet, is better than no window at all. Our researchers have indicated, however, that it is more than probable that Guyana, on its own, can do little to create a market for this type of product. Nor is it likely, it is claimed, that our country on its own would be in a position to persuade suppliers to produce such "minimalist" types. It is therefore recommended that Guyana should discuss this matter with manufacturers, potential donors, the Caribbean Community, and with other developing countries that are even farther afield, in order, possibly, to arrive at an arrangement which might significantly assist in our development. 6.II.10 Institutions 6.II.10.1 It is important to appreciate that no strategy for the development of information technology in Guyana can be realised unless there is established an appropriate institutional, legislative, and regulatory framework which clearly describes, as a minimum, the role of private enterprise, the role of the market in telecommunications development, and the degree and extent of public regulation to which the sector would be subjected. 6.II.11 Constraints 6.II.11.1 Some of the constraints to the efficient operation of the information technology sector are again emphasized below:- - the apparent existing prohibitions on the creation of private telecommunications networks (whether based on user-owned or leased facilities) and the difficulty in obtaining the required interconnections with the public networks; - the difficulty in obtaining licences to access international communication carriers; - the absence of an appropriate legal framework for the creation of enterprises or associations which provide value-added services; - the difficulty in obtaining capital for the start-up and expansion of information technology businesses; - the high cost of leased lines; - the underdeveloped nature of our laws on intellectual property rights, particularly in regard to software; - the high cost of software; - the lack of human resources to develop, manage and maintain information technology infrastructure, and services; - the lack of awareness of the true potential of information technology at the policy-making level in both the private and public sectors; - the contract between the government and GT&T which, if unaltered, could stifle the long-term development of information technology in Guyana; - the existence of a regulatory body that does not appear to possess the functional capacity effectively to regulate the telecommunications provider; - the fact that electricity, the main supporting information technology infrastructure, is too costly and unreliable. Computer equipment is sensitive to blackouts, voltage fluctuations, brownouts and spikes. Unfortunately, the Guyana Power and Light Company is by no means free of these problems. As a result, information technology equipment is either frequently damaged or the cost of its use is increased because of the necessity of installing anti-current fluctuation mechanisms; and - the inadequacy of the training of many local information technology "professionals". 6.III OBJECTIVES 6.III.1 The overall objective of the sector is to assist in the modernisation of Guyana through the application of information technology to all aspects of the country’s development, including especially macro-economic and public sector management, the production and export of agricultural and industrial goods, and the provision of the basic social services of education and health. In all these areas the utilisation of information technology would enhance the country’s knowledge base, and improve its efficiency in the formulation and implementation of public and private sectoral policies, plans and strategies. 6.III.2 The specific objectives are:- (i) to rationalise the telecommunications sector by clearly defining the role of competition in its operations, and by establishing a legal and operational framework for its regulation; (ii) to develop an information infrastructure which would comprise inter alia adequate data bases and other management services, as well as a comprehensive, integrated, management system; (iii) to assist in the reform of the public service by utilising a technology-oriented approach which would include a much greater degree of automation; (iv) to provide universal access by the Guyanese population and its private and public institutions to the Internet at affordable rates, through the encouragement of the development of systems that allow for the widest dissemination; (v) to foster a new generation of citizens, with the capability to utilise information technologies with facility in order to help in Guyana’s and their own development; (vi) to establish a strong, reliable local information technology industry, able to service the needs of the country, to introduce new technologies, and to compete regionally; and (vii) to establish adequate standards for information technology goods and services, including hardware, software, and training. 6.IV THE STRATEGY 6.IV.1 Telecommunications 6.IV.1.1 The telecommunications agreement between the government will be revisited with a view to liberalising the sector, enhancing its internal competitiveness, conforming with the relevant regulations of the World Trade Organisation and, in general, bringing it into line with the prevailing telecommunications contractual arrangements which now obtain in many CARICOM and other developing countries. 6.IV.1.2 In order to implement this basic plank in our strategy, negotiations will begin immediately with ATN to ascertain whether there is the possibility of a meeting of minds on this matter. If new terms and conditions cannot be realised through negotiations, the government will take the matter to the Courts for their decision. 6.IV.1.3 It cannot be too strongly emphasised that both the licence issued to the incumbent telecommunications pr...