OVERCOMING THE REAL "DIVIDE"

While there is currently much debate about the "digital divide", if it is to be addressed effectively, it must be understood as reflective of a more fundamental phenomenon.

The real "divide" between people, organizations and countries, is the freedom and the capacity to innovate: to experiment and risk, perhaps to fail, but always learn to try again another day. To harness technology and overcome the real "divide", development policy must ensure that expansion of a fair, open and competitive information marketplace - with appropriate safeguards to ensure access - to provide incentive for innovation throughout the information sector.

IDB recognizes that the concept of "digital divide" is complex and consequently must be addressed in a multidimensional and multilevel manner. At the same time, the Bank recognizes that the need for information permeates all aspects of society and economy. Consequently, development approaches to information technology for development require interseThe absence of a knowledge-based development strategy as part of efforts to overcome social equity contributes to exacerbating the differences between rich and poor. This assertion does not mean that technology is the solution. The challenge is political, not technical.ctoral approaches and inter-institutional cooperation. IDB has unique capabilities and experience in these areas that are being extended to harnessing information technology for development.

Increasingly, the IDB is working intersectorially/horizontally among departments to address issues such as the new economy and development, creating human capital in the knowledge economy and the evolution of digital democracy.

The absence of a knowledge-based development strategy as part of efforts to overcome social equity contributes to exacerbating the differences between rich and poor. This assertion does not mean that technology is the solution. The challenge is political, not technical.

"Political will" is the difference between a "digital divide" and a "digital opportunity" in development. Information technology, without the political will to use it to achieve development objectives, can increase the likelihood for an expanding digital "divide." The political will to use information and communication technology to achieve development objectives can be a digital "opportunity."

As President Iglesias has pointed out with increasing frequency, the "divide" has two aspects directly linked to growth of a knowledge economy in the Region: overcoming poverty and reducing the brain drain.

First, the structural roots of poverty and inequalities in Latin America and the Caribbean must be addressed. As President Iglesias states, the rate of economic growth will need to double from the current rate of 3.5% to approximately 7%. It is within this context that IDB is focusing its efforts involving information technology for development. Specifically, an increase in economic growth is possible by expanding the Region's efforts to participate in and benefit from the emerging knowledge-based global economy. The second aspect of the "divide" is that conditions must be created in each country to make it attractive for the "best and brightest" to remain in their countries and the Region rather than accept offers from outside. The demand in developed countries for skilled employees to work in high technology industries has reached a point where immigration laws are being amended to make it easier for citizens from other countries to enter. Since restricting the movement of citizens from Latin America and the Caribbean is not an option, countries in the Region, now more than ever, must create working and living conditions that enable its best educated to stay home to contribute to development efforts.

The threat of a real "digital divide" is one of the factors motivating the 21st century leaders from public, private, civil society organizations in the Region to be pro-active. In the absence of sufficient political will to formulate and carry out comprehensive information technology for development strategies, they know that differences within and between countries will be exacerbated and the potential for domestic prosperity undermined. At the same time, these leaders know that competitiveness and productivity will suffer and, thus, make the Region more vulnerable to crises that occur elsewhere in the world.

The Information Technology for Development Division represents the Bank in the World Economic Forum Global Digital Divide Task Force and in various other forums in which ICT for development issues are considered.

America XXI