Open Access 2007 – Tanzania Can Tanzania participate better in the Knowledge Economy?

1. Open Access 2007 – TanzaniaCan Tanzania participate better in the Knowledge Economy? Presented on 14th November, 2007 Paradise Resort Hotel, Bagamoyo Simbo Ntiro – ICT Advisor, COSTECH

2. We shall cover: • The opportunities ICT offers • Tanzania’s Vision 2025 • What is the knowledge economy? • Tanzania’s policy context in this regard • Alternative approaches to policy formulation • Who leads change? • What are the big questions for Tanzania?

3. The opportunities ICT offers • Opportunities to “leap-frog” traditional technology stages taken by developed countries (e.g. mobiles, Wi-Max, free-to-air satellite radio/TV) • Be world-class – some of our companies compete with the best in the world (e.g. DStv, Thawte & VeriSign, Celtel, Kenya Airways, First National) • Enhance our national development efforts (e.g. MoEVT, e-Government, TGDLC) • Open Source can set us free (e.g. MobiPawa, Baobab Health Partnership, Ubuntu)

4. Tanzania’s Vision 2025 • Vision 2025 envisages that Tanzania is a country imbued with the following attributes: • High quality livelihood • Peace, stability and unity • Good governance • A well educated and learning society • A strong and competitive economy

5. Tanzania’s Vision 2025 • But what is “a strong and competitive economy?” • And what was in the minds of those who crafted our National Vision 2025? • An industrialised economy • A middle-income country • Exploiting our natural resources better • Turning our backs on our largely agrarian society • But are we aiming at the correct target?

6. What is the knowledge economy?Overview • Some describe today's global economy as one in transition to a “knowledge-based economy”, as an extension of the “information society” • The transition requires that the rules and practices that determined success in the industrial economy need rewriting in an interconnected, globalised economy where knowledge resources such as know-how, expertise, and intellectual property are more critical than other economic resources such as land, natural resources, or even manpower • There is also the “web” economy in which Google, Skype and eBay have created wealth based more on services that depend on mass interconnectivity rather than knowledge-based skills ICT is fundamental to knowledge-based economies

7. What is the knowledge economy?Key Concepts • A key concept of this sector of economic activity is that knowledge and education (often referred to as "human capital") can be treated as: • A business product, as educational and innovative intellectual products and services can be exported for a high value return. • A productive asset • In 1966 in his book The Effective Executive Peter Drucker differentiated workers thus: • A manual worker works with his hands and produces “stuff” • A knowledge worker works with his/her head not hands, and produces ideas, knowledge, and information

8. What is the knowledge economy?Prerequisites • Clusters of excellence • Universities • Research centres • Knowledge parks • Business support services • Business formation • Entrepreneurship support • Business advisory services • Access to finance • A level playing field • Progressive policies • Consumer rights • Good governance & rule of law • Proactive regulation • Human capital • Education • Incentives • Knowledge The Knowledge Economy requires fundamentally different approaches from policy makers and regulators

9. Tanzania’s policy context • Tanzania’s National ICT Policy was promulgated in 2003, but remains largely unimplemented (institutional arrangements, sector-specific ICT policies) • The National Strategy for Growth and Reduction of Poverty of 2005(also known as MKUKUTA) tackles the three key development enemies ignorance, disease and poverty, but does not specifically take ICT into account

10. Tanzania’s policy formulation methodology • ICT is a sector in itself, but is also inherently cross-cutting • Vision 2025 and MKUKUTA are the umbrellas • But policy formulation is largely sector-specific in its outlook • Implementation of policy is equally sector specific And is largely aiming at the wrong target!

11. Vision 2025 MKUKUTA Vertical & unrelated policy planks Planning, Economy & Empowerment Trade and industry Infrastructure Development Research & development Education Finance Health Tanzania’s policy formulation methodology At the national policy level we are not taking ICT into account Nor are we specifically addressing the requirements characteristics and challenges of the knowledge economy

12. Vision 2025 MKUKUTA Revise sector-specific Policies taking KE & ICT into account Planning, Economy & Empowerment Trade and industry Infrastructure Development Research & development Education Finance Health An alternative approach (others exist) Knowledge economy span Revised National ICT Policy Take an holistic view and implement

13. The big questions for Tanzania • What can be done to prepare Tanzania for the transition to a knowledge economy in an information society? • Who should lead this process? • Who should drive this change? We know what needs to be done. The issue is LEADERSHIP

14. Systemic change Political Leaders and Technocrats Implementers/ Actors Non– systemic change Networks/ Interest Groups Who leads change? • Top-down • Bottom-up • Clusters We can all be leaders of change

15. Systemic & non-systemic change • Systemic change (top-down) takes a long time and requires “political will” • Policy, regulatory, legal frameworks • Whole country/sector benefits • “Big change” • Non-systemic change (bottom-up & cluster) can be lead by anybody, can be difficult, but can eventually spur systemic change • Action-oriented • Driven by immediate perceived benefits • Can be scaled up to “big change” as benefits are clear once implemented

16. To recap • ICT affords incredible opportunities • Our development Vision and sectoral policies do not aim at the Knowledge Economy • Alternative policy formulation methods exist for ICT and the KE • Leadership is key • Top-down change can be driven from the bottom or by clusters What will YOU do after this Conference?

17. Thank you for your attentionAny questions? Simbo Ntiro ICT Advisor 075 678 0665 sntiro@costech.or.tz