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Executive Summary
Two simultaneous shifts in technology and economics – the technological revolution andglobalization – are combining to create a network age to facilitate the emergence of the globalknowledge society. The truth is that information and communication technologies (ICT) are akey enabler of the globalization phenomenon. In turn globalization has spurred the greaterpursuit for innovations which consolidate and strengthen the linkages of the network age. Thedangers of ICT becoming a force of exclusion, rather than a tool of progress, arise because newtechnologies are created in response to market pressures, and not the needs of poor people. SinceICT is a feature of globalization, so like globalization it has come under scrutiny as an engine of creating disparities (a “digital divide”) between and within countries, which could cause thefurther exclusion of the weakest groups in society.Bulgaria has a tremendous
potential to exploit ICT as a vehicle for escaping the problems of thetransition period. However translating the promise of Bulgaria as a leading country in ICT, withbenefits for its people and also for the region of South East Europe, into a reality requires apublic policy portfolio, which places the issues as a strategic national priority. In this respectseveral important questions can be asked: What is the future of ICT in Bulgaria? What kind of legal and regulatory framework is needed for it to become a major driver of growth for thenational economy? What is the role of different actors - public and private, national andinternational - for the progress of ICT? How can ICT be used for the benefit of the entirepopulation of the country and for achieving adequate human development?
Making the Case of ICT as an enabler of Development
Although ICT should not be seen as the panacea for all of Bulgaria’s problems, empiricalevidence from other parts of the world shows that at both the micro and macro levels, ICT canbe a key driver for development. This is done mainly through the function of increasing theeffectiveness and reach of development interventions, enhancing good governance and loweringthe costs of service delivery. Although not an exhaustive list, the following items do representthe main characteristics of ICT’s power as a vehicle for development through improvingcommunication, exchanging communication and strengthening and creating new economic andsocial networks:
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ICT fosters the
dissemination of information and knowledge
by separating content fromits physical location. This flow of information is largely impervious to geographicboundaries—allowing remote communities to become integrated into global networks andmaking information, knowledge and culture accessible, in theory, to anyone.
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ICT allows people to access world wide knowledge networks and through this promotes newways of education, new ways of working and new ways of enjoying leisure activities. Moretime will be gained for education and life-long learning.
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The "digital" and "virtual" nature of many ICT products such as software, digital music orinformation in general allows for zero
or declining marginal costs. Replication of content isvirtually free regardless of its volume, (except for copyright issues), and marginal costs fordistribution and communication are near zero. As a result, ICT can radically reduce
transaction costs
.
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ICT's power to store, retrieve, sort, filter, distribute and share information seamlessly canlead to substantial
efficiency gains
in production, distribution and markets. ICT streamlinessupply and production chains and makes many business processes and transactions leanerand more effective
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