IT can be Bangladesh's
Super Highway to Prosperity
Muhammad Yunus
Grameen Bank
Key-note Address Delivered at the
Tech-Transfer 2000 -- North America Conference
Held in Atlantic City, U.S.A. on April 28-30, 2000
IT can be Bangladesh's
Super Highway to Prosperity
Size of Bangladesh economy is very small. Size of the population of the
country is very big. In the past nobody in the world noticed us because of the
tiny economy. We do not show up in the world map because we do not feature as a
serious market for buying or selling.
All these can change now. Bangladesh can become a familiar name in the world
market if we take advantage of the new technologies, particularly Information
Technology, which are changing the world dramatically. Stage is already set. In
the previous decade the world has just seen the tip of these changes. Next
decade will unfold scenarios which will redefine the lives of people around the
world.
Technologies are all interrelated. If there is a dramatic change in one
technology, immediately impact of it is felt in many other directions. At this
moment Information Technology (IT) is the most dynamic sector. It is leading the
way. Other technologies are getting reshaped because of fast changes in IT.
New Economies
IT is helping the rich countries to expand their economies at a sustained and
fast speed. These economies are assuming features which are so distinct from
their previous structures that it has become necessary to call these economies
as "New Economies". It is obvious that the rich economies are the ones
which are benefitting the most from the IT. Except for some small spill-over
effects here and there, there is very little that IT has offered to the people
in the poor countries. But this does not have to be so in future.
IT eliminates middlemen. It eliminates middlemen in the value-chain when it
comes to production and marketing. IT eliminates middlemen in the
knowledge-chain when it comes to understanding the economy and the society. In
the process it creates not only a New Economy, but it can also create a New
Society.
It is not the big size of the annual addition to the GDP which characterizes
the New Economies. It is not about the quantum of wealth that people are
accumulating by using this technology. IT's unique contribution comes from one
fundamental fact : it is creating a new relationship among people, and between
the producer and the consumer. In the economic sphere, this new relationship is
leading to significant reduction in cost. Having demonstrated this in
unmistakable terms, IT has set the process in motion to dismantle the old
economic relationships and the institutions which were based on those
relationships. Nobody can escape from this change because the emerging new
relationship means reduction in personnel cost, reduction in processing and
production time, better appreciation of market needs, more options for
producers, more opportunities, and more choices for the consumers and producers
alike.
Digital Divide
What happens to the poor economies which did not show much of a progress in
the past half a century ? Two things can happen :
1.0 In the face of the emergence of New Economies and their ever increasing
strength in the world economy, weak and small old economies will get further
marginalised, making it more difficult for them to compete in the world economy
and survive. IT will obviously make globalisation fast and unstoppable. Global
companies will dictate the terms for the weak economies.
2.0 Or it be just the opposite. IT will spread into the sleepy economies so
fast that they can longer remain sleepy. In the interest of the fast expanding
economies IT will come to the shores of the poor economies. If IT can make a
full blown entry into a poor economy it would be difficult for the poor
economies to remain poor and stagnant. If the national leaders are wise, and the
people are eager and energetic IT can be turned into a magic wand. After that
anything it touches, it will turn into gold. Best aspect of IT is that it cannot
be controlled by a single owner or authority. It is an empowering tool which
enhances options and brings all the knowledge at your disposal. When IT can
enter into a poor economy the people will benefit from the wider choices and new
relationships within and with the world at large. This will no longer limited to
traditional uni-directional relationship. IT stands for multi-dimensional and
global relationship. IT does not recognise borders. It cannot be contained
within any kind of borders and limits. Getting in touch by one person to any
other person, from any where to any where, in almost costless way, is the
hall-mark of IT.
Consider the above two options and make YOUR own choice --- and make that
choice come true.
In order to achieve the desirable outcome, obviously, our leaders have to be
wise, our people have to mobilise all their energy and organisational skills,
and we as individuals must feel strongly committed to make that happen.
If we just lie on our backs under the prosperity-tree for the juicy fruit of
development to fall right into our mouth, we'll need lots of prayers, lots of
luck and a very long wait before we succeed in our mission. To get to the fruit
faster, alternative strategy would be to climb the tall, difficult tree and get
to the fruit.
Which among the Third World countries will get ahead and transform its
economy dramatically to become a global player will depend on how quickly a
country decides to get up and starts making arduous efforts to the get to the
fruit.
IT and the poor
Can IT get to the poor countries and to the poor people ?
Even if we leave it to the market forces alone it is very likely that IT will
get to the poor countries sooner or later. Whether it will be sooner or it will
later will depend primarily on the mood of the respective governments in those
countries. Governments in poor countries will generally be inclined to block the
entry and spread of IT in their countries. Except for the blockade created by
government policies and its bureaucracy. I see no problem for IT to come to a
poor country. What I suspect, market mechanism alone cannot ensure fast speed of
spread of IT in the poor countries. Something else is needed. I feel that
international organisations are needed to be created, with a mandate to bring IT
to the poor and the poor countries. I have been advocating for the creation of
an "International Center for Information Technology to End Global
Poverty" to achieve this objective. NGO's, businesses, academic
institutions, UN agencies, foundations, civil society organisations, etc. can
link themselves with each other to find ways and means to bring IT to the poor
and poor countries.
Can IT really get to the poor people ? Market forces do not take poor people
with any seriousness because they are neither producers nor consumers of any
consequence. I have no doubt that IT can be reached by the poor people, but they
would have to be reached by creating new variety of business organisations which
will help the poor people in engaging in business activities. I have been
calling this type of business enterprises as "social-consciousness driven
enterprises" which may have high profit, low profit, or no profit, but must
have clearly defined social goals.
Many of the Grameen enterprises, such as, Grameen Bank, Grameen Telecom,
Grameen Phone, Grameen Communications, Grameen Software Ltd, Grameen IT Park,
Grameen Securities and Management Company, Grameen Shakti (Energy), Grameen
Uddog (Enterprise), Grameen Shamogree (Products), Grameen Fund (venture capital
fund), Grameen Agriculture, Grameen Kalyan, Grameen Education etc. falls into
this category. Conventional economic theory ignored the poor because it has
conceptualised the world as a wage-employment-based world. If you are not a
wage-labour you are not in the market. Idea of self-employment never crossed the
minds of economists. If we bring in the self-employment as an option for the
people to make a living, the poor immediately draws attention of the market.
IT is the greatest technology the world has ever known to promote
self-employment. Self-employment alone will be a great reason to bring IT to the
poor people.
It is silly to ask the question : "How can a poor person own a computer
to have access to internet ?" This question can be posed in another way :
"How can a poor woman in a Bangladeshi village own a mobile phone ?"
Through Grameen Bank and Grameen Telecom we have given the answer to this
question in a clear loud voice. Grameen Communications has given the answer to
the first question by creating village internet kiosks.
Remember, Grameen is using the IT designed for better-off people in rich
countries and businesses in those countries. Grameen do not have the capacity to
design appropriate IT devices and appliances for the poor. If it had, it would
have designed completely different kind of IT devices and appliances which would
act as a friend, a philosopher, a guide, a business consultant, a business
executive, a teacher, an accountant, a doctor and an entertainer for a poor
person.
Business with social goals can be much better than business for making
personal gain only, even in strictly business terms. IT is a sector where it can
be demonstrated much more clearly.
Someday IT will become part of our lives in Bangladesh even if we stay lying
on our back and wait for the juicy fruit to drop right into our mouth. But this
conference is not about lying on our back. This is about getting up the tree and
get to the fruit NOW .
Bangladesh
What prospect does Bangladesh have in entering into the IT age fast ? I feel
very optimistic about Bangladesh getting to the frontline of IT revolution. To
begin with, we have a very young population. That is a very big help. Younger a
person is, quicker is the speed in getting into IT mode. Half the population of
Bangladesh is under twenty. They are very creative too. With little or no help,
some of these young people are coming up with great success stories in IT.
Bangladesh has led the world in micro-credit --- a home-grown technology
which has been adopted world over. Micro-credit and IT have one big thing in
common, they both empower individuals. This makes them mutually reinforcing.
Bangladesh is the only country in the world which could take mobile telephone to
the poor women in the villages in a very successful commercial way because of
micro-credit. That has laid the foundation of future inroad of IT services like
e-commerce, e-healthcare, e-literacy, e-education, e-jobs etc to the villages in
general, and to the poor women in particular. With IT we can put the whole world
in the hands of the poor people to rush out of poverty in their individual
creative ways. We already have fibre-optic backbone running along the railway
tracks of our country. If we can quickly connect it to the fibre-optic submarine
cable, almost the whole country will be fully connected to the world
immediately. With this backdrop, I strongly feel that Bangladesh can be a
world-class player in IT very soon.
Support From NRB's
This needs a very strong support from the non-resident Bangladeshis (NRB's).
NRB's can be strategic bridge-head in bringing IT businesses in Bangladesh.
Bangladesh has to prove its worth in international IT market. NRB's can ease
Bangladesh into this market by helping her with expertise, information, links
and, above all, credibility. Bangladesh does not have to start big, or at the
top. It is always safe and rewarding to work from the bottom and move up. Let us
not expect miracles. If we work hard, miracles will happen at the end.
NRB's can help Bangladesh in designing IT related training programmes and
collaborating in the areas of producing high quality human resources through
right kind of training. Training itself can be an entry point to international
market place by placing trained man-power at the disposal of the market.
NRB's can provide information, ideas and guidance to the IT businesses in
Bangladesh. They can act as representatives of the Bangladesh based businesses
and participate as partners in these businesses.
NRB's can influence government policies in direct and indirect ways. Many of
them are closely linked with the top policy-makers. Many are respected for their
personal achievements abroad. Many NRB's have influence with the leading
Bangladeshi political parties. They can use their connections and influences to
achieve policy changes in the IT sector. The following policy changes are
immediately needed :
i. Telecommunication sector should be totally opened up for private
investment. Every bit of restriction on private investment should be removed.
The sooner the restrictions go, the better chance we'll have in changing our
economy and the quality of life of our people.
ii. Bangladesh should invite offers from private investors to connect
Bangladesh with the Information Super Highway. Government should not get
involved in owning and managing this submarine cable. Government should stay out
of all telecommunication businesses.
iii. T&T Board should soon be converted into a company and government
should hand over the shares to the private sector --- if we want to get out of
the present sad state of affairs in the telecommunication sector. If we cannot
change this situation, forget about having IT as our launching pad for economic
boom.
iv. All restrictions on using national fibre-optic backbone for IT purposes
should be immediately removed.
v. We must open up international telecommunications for private sector
investments.
vi. Bangladesh should have a truly independent regulatory body outside the
control of the government ministries. Telecom is the highway we must take to
build our future. Don't allow this to be a narrow dirt-road with pot-holes where
corrupt officials are waiting around for their next catch at every step of the
way. With such a road Bangladesh will continue to remain where it is right now.
Big talks will not change the road condition, and hence the condition of the
economy. We must make the telecom a truly superhighway to take us to the future
without any stop-lights or sharp turns. Of course, there should be traffic
police, but not to slow us down, but to help us achieve safe high-speed driving.
IT is about speed and efficiency. Any compromise on any one of them will push
us out of the way. We just cannot afford to compromise.
NRB's Can Inspire IT Activities in Bangladesh
Besides influencing government policies on IT sector individual NRB's from
all disciplines can help in several other ways :
i) Share any information, or any tip you may get on IT matters with
Bangladeshi IT activists. Prepare a list of such people in Bangladesh and
regularly brief them on IT matters. Nothing special. Just the kind of
information that comes to you in the normal course of your work or interest.
Don't expect anything in return. Just hope that it will be of some use to
somebody out there. If you don't want to correspond to a whole lot of people,
you can choose an individual or an organization who will copy this to many other
people in Bangladesh. We in Grameen will be happy to take this responsibility.
ii) You can think of sparing one-hour a week to think about something for IT
industry in Bangladesh and let that thought grow as an action or as an idea.
When it is properly formulated you can share it with a contact person in
Bangladesh where it will be shared with other IT activists. We can even print it
in our newspapers if you wish to. Please do let us know what you think will be
the right course of our action. It'll be of tremendous help if you lend your
hand in giving a boost to IT industry in Bangladesh.
I congratulate the sponsors of Tech-Transfer 2000 for taking this initiative
to bring US businesses, well-wishers of Bangladesh, NRB's and technology
activists in Bangladesh to get together to pool their energy, and strategise for
future action. I am sure great things will come out of this conference, not
because we said profound things, but because we'll be making very important
contacts here. These may change our lives, and may change the lives of the 130
million people of Bangladesh.
The greatest opportunity ever for Bangladesh is knocking at our door. Let's
not blow it by being slow in opening the door, or not opening it wide enough. If
you blow it, history will not forgive us.
I wish this conference all the success.
Thank you. | 