ICT Indicators and Capacity building for ICT measurement in the Arab Region Amman, September 2010 Torbjörn Fredriksson, UNCTAD UNCTAD’s work on Measuring the Information Economy

UNCTAD and ICT statistics UNCTAD Partnership revised core list of ICT indicators Infrastructure (9) Household and individuals (13) Businesses (12) ICT sector and ICT trade (4) ICT in education (9)

UNCTAD and ICT statistics UNCTAD International ICT business data collection OECD: ICT business data for OECD member countries Eurostat: ICT business data for EU UNCTAD: ICT business data for all member countries Others (World Bank, regional bodies, private providers)

UNCTAD and ICT statistics UNCTAD 4 Building blocks of the Information Economy Building blocks of the Information Economy

UNCTAD and ICT statistics UNCTAD 12 core indicators on ICT use by business 12 core indicators on ICT use by business Proportion of… Proportion of… B1 … businesses using computersB7… businesses receiving orders over the Internet B2 … persons employed routinely using computers B8 … businesses placing orders over the Internet B3 …businesses using the InternetB9 … businesses using the Internet by type of access B4 … persons employed routinely using the Internet B10 … businesses with a local area network (LAN) B5 … businesses with a web presence B11 … businesses with an extranet B6 … with an intranetB12 … businesses using the Internet by type of activities

UNCTAD and ICT statistics UNCTAD 6 B1. Proportion of businesses using computers Number of businesses* using computers (t) B1 (t)= x 100 Total number of businesses*(t) B2. Proportion of persons employed routinely using computers Number of persons employed routinely using computers (t) B2 (t)= x 100 Total number of persons employed*(t) t: reference period (*in-scope businesses) Definition and calculation of the core indicators B1 and B2

UNCTAD and ICT statistics UNCTAD Core indicators on ICT sector and trade in ICT goods ICT1: Proportion of total business sector workforce involved in the ICT sector ICT 2: Value added in the ICT sector (as a percentage of total business sector value added) ICT 3: ICT goods imports as a percentage of total imports ICT 4 : ICT goods exports as a percentage of total goods exports

UNCTAD and ICT statistics UNCTAD 8 Definition and calculation of the core indicators ICT1 and ICT2 ICT1. Proportion of total business sector workforce involved in the ICT sector Number of persons employed in the ICT sector ICT1 = x 100 Total number of persons employed in the business sector ICT2. Value added in the ICT sector Estimated value added of the ICT sector ICT2 = x 100 Total value added of the business sector Value added at factor costs + other taxes, minus subsidies, on production (1) = Value added at basic prices + Taxes, minus subsidies on products (2) (not including imports and VAT (value added tax)) = Value added at producers’ price + Taxes minus subsidies on imports + Trade and transport costs + Non-deductible VAT = Value added at market prices (3) Valuation of value added

UNCTAD and ICT statistics UNCTAD 9 ICT3. ICT goods imports as a percentage of total imports Value of imports of all ICT goods ICT3 = x 100 Total value of imports ICT4. ICT goods exports as a percentage of total exports Value of exports of all ICT goods ICT4 = x 100 Total value of exports ICT goods classification according to OECD, based on the WCO’s Harmonized System (HS) for trade statistics (1996 and 2002 versions). Guiding principle: ICT goods must either be intended to fulfill the function of information processing and communication by electronic means, including transmission and display, or use electronic processing to detect, measure and/or record physical phenomena, or to control a physical process. Obtained from foreign trade data. Cooperation between the NSO and the customs authority is essential for data transmission and the classifications of goods. Definition and calculation of the core indicators ICT1 to ICT4

UNCTAD and ICT statistics UNCTAD 10 Other non core ICT demand (use) indicators Use of mobile phones for business-related activities (receiving and placing orders, other activities) Current and capital expenditure on ICT IT security measures and experiences Type and value of goods purchased and sold via e-commerce Barriers to ICT

UNCTAD and ICT statistics UNCTAD UNCTAD data collection Annual survey with NSOs 2004 – 2006: selected developing countries As of 2007: all UNCTAD members countries (except EUROSTAT members) Database online by end 2010 Results published in the Information Economy Report (IER) The IER is available at edition launched on 14 October 2010

UNCTAD and ICT statistics UNCTAD UNCTAD data collection Comparability: Data often not comparable or representative Lack of continuity in data collection (one-off surveys) Differences in types of surveys, sampling units, frames, sizes, denominator Differences in response categories (e.g. modes of access and activities the Internet is used for) Metadata as important as statistical dataAvailability: Lack of c Lack of coordination between Government entities Lessons learned

UNCTAD and ICT statistics UNCTAD UNCTAD data collection  Coordination among national statistical systems  Long-term process: start early (start small)  Use core list as a starting point (add questions to existing surveys as appropriate)  Use agreed-upon definitions and indicators – need to harmonize results  Ultimate goal: sustainable data collection, integrate in national statistical plan Considerations at the national level

UNCTAD and ICT statistics UNCTAD Data availability in Arab countries Source: UNCTAD Information Economy Database

UNCTAD and ICT statistics UNCTAD Business use of computers Source: UNCTAD Information Economy Database

UNCTAD and ICT statistics UNCTAD Business use of the Internet Source: UNCTAD Information Economy Database

UNCTAD and ICT statistics UNCTAD Business use of computers by industry, Egypt, 2008 Air transport Computer-related activities Water transport 96.7 Financial intermediation 96.0 Construction 86.0 Sale, maintenance, repair of motor vehicles; retail sale of automotive fuel 66.7 Real estate activities 66.7 Agriculture, hunting and forestry 60.0 Post and telecommunications 60.0 Wholesale trade and commission trade, except of motor vehicles 55.6 Mining and quarrying 50.0 Land transport; transport via pipelines 50.0 Hotels and restaurants 44.9 Supporting and auxiliary transport activities; activities of travel agencies 35.1 Manufacturing 32.7 Retail trade, except of motor vehicles; repair of personal and household goods 27.3 Other community, social and personal service activities 18.3 Source: UNCTAD Information Economy Database

UNCTAD and ICT statistics UNCTAD Why enterprises use the Internet UAE, 2008 Source: UNCTAD Information Economy Database

UNCTAD and ICT statistics UNCTAD The Rural-Urban divide Source: UNCTAD Information Economy Database

UNCTAD and ICT statistics UNCTAD ICT sector data Source: UNCTAD Information Economy Database

UNCTAD and ICT statistics UNCTAD ICT exports as a share (%) of total exports, 2008 Source: UNCTAD, based on Comtrade data

UNCTAD and ICT statistics UNCTAD UNCTAD Manual Main objective: Target audience: Content: Reference document for producers of official statistics on ICT in business Statisticians Concepts Indicators Data collection methodologies Model questions and questionnaires Available in English, French and Spanish ESCWA assisting with Arabic translation. Will be available for ITU's 8th World Telecommunication/ICT Indicators Meeting (November 24-26).

UNCTAD and ICT statistics UNCTAD UNCTAD Manual Promotes methodology that should ensure internationally comparable ICT statistics Takes users through all the concrete steps of ICT data collection: 1.Conceptual framework 2.Standards for indicators on ICT use by business, the ICT sector and trade in ICT goods 3.Data sources and data collection methods 4.Model questions and questionnaires 5.Designing surveys and processing data 6.Dissemination (metadata) 7.Institutional cooperation and coordination

UNCTAD and ICT statistics UNCTAD UNCTAD Manual Practical tool for the production of ICT statistics: Step by step approach Includes many country examples and best practices Technical points further developed into details in separate boxes Presents existing survey questionnaires (OECD, Eurostat as well as model tables for presentation, model questions, etc.)

UNCTAD and ICT statistics UNCTAD UNCTAD Manual revised through global consultations Global consultations Presented at the 40 th session UNSC in NY, Feb 09 Revision integrates feedback from users and experts, new core indicators Revision process: written feedback from NSO and international experts, Expert group meeting in Geneva, Online discussion forum Support of UNSD, contributions by Partnership.

UNCTAD and ICT statistics UNCTAD UNCTAD training course Course delivered five times (Colombia 2007, Rep. of Korea 2008, and Trinidad in 2009, Addis Ababa and Rabat, 2009), next course for French-speaking Africa in October Based on Manual. Uses UNCTAD’s pedagogical methodology: TRAINFORTRADE. Targets statisticians from NSOs or other national entities in charge of the collection and dissemination of ICT use in business data at the national level. Technical content: Relatively small groups (25 max) to encourage maximum interaction among specialists. Arab countries a priority, awaiting Arabic translation of Manual.

UNCTAD and ICT statistics UNCTAD UNCTAD country-level technical assistance UNCTAD follows up with countries that request TA in the area of ICT business/ICT sector statistics (advisory services, training) In particular, countries that plan an ICT business survey for current and next year Example: assistance provided to NSOs (Nepal, Tunisia) involved in the designing or processing of an ICT business survey Extra-budgetary funding is required Requests should be made to

UNCTAD and ICT statistics UNCTAD Measuring-ict.unctad.org

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