ICT grows at scorching pace across the world

The worldwide information and communications technology (ICT) market is on the rebound and is outpacing the global economy. This is largely due to rapid growth in the emerging markets, according to data released by the World Information Technology and Services Alliance (WITSA).

WITSA has also said that the growth in the developing world is being spearheaded by India after its successful entry into the software development market.

According to WITSA's biennial study, "Digital Planet: The Global Information Economy", ICT spending is expected to grow faster than the global economy at approximately 8 per cent a year from 2003 through 2007.

The global economy at large is projected to grow 7.6 per cent annually over that time. WITSA projection follows a drop-off in the global ICT spending from 2000 to 2001, marking a significant rebound in the last two years.

The data projects Asia to be a powerhouse of global growth in ICT spending by 2007. Asia will grow at a compound annual rate of 9.3 per cent from $568.2 billion in 2003 to $811.1 billion in 2007. Eastern Europe will grow fastest among at 11.9 per cent annually, but will top out at just $68.8 billion in 2007.

North America is expected to see the slowest growth at 6.7 per cent, while Africa ranks third for an anticipated pace of growth at 8.8 per cent, ahead of Western Europe at 8.7 per cent, the Middle East at 8.3 per cent and Latin America at 6.8 per cent.

"Spending growth in the developing world is driving increased political participation by those countries in the global technology and communications policy debate.

As spending increases in the developing world, those nations are clamouring for a greater voice. The last two years have marked an emergence for these nations in the policies and politics of the Internet.

"Spearheaded by India and its successful entry into the software development market, other countries are following its lead in droves. The resulting competition has energised politicians at both ends of the spectrum as the developed countries fight to grow the jobs of their local constituents," WITSA president Harris N Miller, said.

ICT spending in the United States is expected to witness a compound annual growth rate of 6.8 per cent per year from 2003 through 2007, outpacing projected growth of the US economy over that time by 1.2 per cent. The data states that US will continue to spend the most on ICT, reaching approximately $1.3 trillion in 2007.

However, America is expected to relinquish its lead in per capita spending to second-place Switzerland in 2007, when the two nations are projected to spend $4,147 and $4,282 per capita, respectively.

"In many cases, calls from third-world governments for global regulation of the Internet are not reflecting the best interests of their nascent technology industries, nor, ultimately, their people. In order to fully benefit from the promise of IT, governments must implement regulation only where strictly necessary, solicit industry input and refrain from discriminatory taxes and regulations. The cost of doing e-business must remain low if developing nations are to enjoy their share of prosperity," Miller added.

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ICT on top of the world

• The United States was the largest ICT spender in 2004, weighing in at $1.06 trillion.
• China is projected to be the fastest growing among the top 10 ICT spenders, with a compound annual growth rate of 13.9 per cent during 2003 through 2007.
• Second place South Korea is the only other top 10 nation expected to grow at double digit, with a compound annual growth rate of 11.4 per cent.
• Bangladesh is expected to grow at the highest rate worldwide from 2003-2007, with an annual compound growth rate of 19.95 per cent from 2003-2007.
• Iran ranks third with a rate of 14.52 percent; China is sixth at 13.9 percent; and India rounds out the top 10 at 13.44 per cent.
• Bangladesh also spent the least on ICT per capita in 2004, just $11 per capita.
• Japan was the second biggest ICT spender in 2004, weighing in at $349 billion.
• Communications services and equipment has by far the largest share of global ICT spending around 53 per cent.
• The consumer market currently comprises 24 percent of total ICT spending with government and business accounting for the remaining 76 per cent.
• As a percentage of global GDP, it is clear the ICT build-up in the 2nd half of 1990s reached its pinnacle in 2000, when total ICT spending accounted for 7.4% of GDP. The study forecasts a 6.9% share in 2007.
• Global Insight, a leading economic analysis, forecasting and financial information company, was commissioned by WITSA to conduct the study.