Latin America
misses online revolution
as its leaders focus on political revolution
By Andres
Oppenheimer
Article
Launched: 04/05/2007
Judging from a new
ranking of the world's most Internet-advanced
countries, many Latin American leaders should spend
less time talking about political revolutions, and
focus more of their energies in joining the 21st
century's technological revolution.
While growing numbers of Latin
American leaders are trying to change their
countries' constitutions, or are pushing other
political changes that they claim will bring about
prosperity, many countries in other parts of the
world are focused on modernizing their information
technologies. And they are becoming increasingly
competitive, and richer, in the new knowledge-based
global economy.
If you look at the newly
released Global Information Technology Report put
out by the Switzerland-based World Economic Forum
last week, Latin America - while faring better than
last year - is doing rather poorly. There is
not one single Latin American or Caribbean country
among the world's 30 most advanced nations in
information and communication technologies, even
though Brazil and Mexico are among the world's 12
biggest economies.
The report's index of network
readiness, which ranks 122 nations, is led by
Denmark, followed by Sweden, Singapore, Finland,
Switzerland, the Netherlands and the United States.
A few spots below you can find Hong Kong (12),
Taiwan (13), Israel (18), South Korea (19), Estonia
(20), Ireland (21), Malaysia (26), United Arab
Emirates (29) and Slovenia (30).
The best-ranked Latin
American country is Chile, at 31. Several
spots below are Barbados (40), Jamaica (45), Mexico
(49), Brazil (53), Costa Rica (56), Uruguay (60), El
Salvador (61), Argentina (63), Colombia (64), Peru
(78), Venezuela (83), Ecuador (97) and Bolivia
(104).
Granted, the report says that
most Latin American and Caribbean countries showed a
"consistent upward trend" last year, which "draws a
heartening picture for the region as a whole,
pointing to a reduction in the digital divide with
respect to other, more successful regions at similar
levels of development, such as Asia or Eastern
Europe."
But Irene Mia, the WEF
report's main author, told me in a telephone
interview from Geneva that Latin America is still
"scoring quite poorly" on several fronts in the
survey, which makes it lag behind other parts of the
world. Among the region's shortcomings:
Excessive government
regulation: While it takes only three
bureaucratic steps to open a technology firm - or
any other firm - in Denmark, it takes 17
bureaucratic steps to do so in Brazil and 16 steps
in Venezuela, according to the World Bank. That
alone discourages a lot of investments.
Poor education
systems: Latin America lags far behind
Northern European and Asian countries in basic
education, as well as in graduation rates of
scientists and engineers. Argentina's state-run
University of Buenos Aires, for instance, currently
has nearly five times more psychology students than
engineering students.
Very little research
and development: Latin American countries
invest an average of 0.5 percent of their gross
domestic product in research and development,
compared to about 2 percent invested by South Korea,
Japan and the United States, according to U.N.
estimates.
Lack of venture capital,
excessive taxation and poorly enforced intellectual
property laws, which make it difficult for
entrepreneurs to start high-tech companies.
Little private-sector
involvement in research: While most
research and development in the United States,
Europe and Asia is done by private-sector companies,
in Latin America it is done by governments. "The
private sector is more efficient in creating links
between universities and private firms for the
actual production of goods," Mia said.
My conclusion: In
Latin America, there is too much political debate,
and too little technological debate.
Changing their constitutions -
like Venezuela has done, or like Ecuador and Bolivia
are trying to do now - may help their leaders
perpetuate themselves in power, but will do little
to speed up growth and reduce poverty. (Venezuela
has had 28 constitutions in its history, and remains
a rich country full of poor people.) And having
presidents focusing on ambitious political goals
while leaving technology to vice ministers, which
happens in other countries, will not suffice,
either.
It was a sad
reflection of the region's priorities that most
front-page headlines in Latin America last week were
devoted to the political scandals of the day, while
the newly released information technology ranking
went almost unnoticed. It should have been the other
way around.