Monday, January 19, 2009

JOURNAL ON POVERTY:THE ROLE OF INFORMATION AND COMMUNICATION TECHNOLOGIES (ICTs) ON POVERTY REDUCITION IN TANZANIA

1.0 INTRODUCTION
The importance of Information and Communications Technologies (ICTs) services to national socio-economic development do not need to be overemphasized. ICTs impacts cut across all sectors of the entire economy. ICTs services therefore, improve information exchange among the people, fight poverty and thus enhance economic growth, factors which are in line with the goals and objectives outlined in the National Development Vision 2025 and other sectoral development policies.

It is in this vein that this Journal explores the role of Information and Communications Technologies (ICTs) on Poverty reduction in Tanzania. The journal is organized in four parts. Part one is the Introduction highlighting important aspects of the paper. Part two is the theoretical literature review showing the meaning and historical background of ICT at global level and in Tanzania. The roles of information and communications technologies in reducing poverty are also explained in this part. Part three is the empirical literature review of ICT status in Tanzania. Part four is about Policy review of ICT at global and national levels where as Part five concludes the discussion.

The main argument of this paper is:- despite of the existing challenges in the field of ICTs still under proper management and strategic approach ICTs are vital as tools for poverty reduction. Evidences show that; ICTs support proper market development by enhancing access information about pricing of goods and services, weather condition and market opportunities; ICTs improve access to microfinance; ICTs lead to improving rural infrastructures for poor; ICTs are also used in natural disasters management like to monitor food security related issues and to inform government on impending food scarcities; and improving rural infrastructure for poor. ICTs also play a notable role in E-Government, E-Commerce and in the field of education and training.

2.0 THEORETICAL LITERATURE REVIEW
2. 1 Global historical background of ICT
Before World War II, engineering and scientific research and inventions were focused on extending man's physical powers, rather than the powers of the mind. After the war, the focus of scientific research and development turned to the “massive task of making our bewildering store of knowledge more accessible” (Bush, 1945). This led to an intellectual revolution –initially concentrated in the United States-which has been inaugurated by a growing sense, that existing paradigms had ceased to adequately meet the problems posed by an environment that they had in part created. A new paradigm emerged (Kuhn, 1962) and set the basic conditions for how things are perceived. Paradigms are like wearing “red glasses”. The entire world appears in red for the person who is wearing these glasses. Changes in paradigms are as if the color of these glasses is changing. The focus on knowledge and information systems and processes vis-à-vis other mechanic and motorized systems and processes, seem to be one of the major trends in scientific development in this period of paradigm shift. Based on the established paradigm of an industrial age, the new emerging paradigm created awareness and extensive discussions about the “Coming of Post-Industrial Society” (Bell, 1973), and eventually led to what is nowadays referred to as the “Information Society”. In the early 1950s it has numerously been argued that instruments would be at hand which-if properly developed-would For example “calculating” was once seen as pure tacit knowledge. Later on, mechanic and electronic calculators codified a large part of this formerly tacit knowledge and embodied it into technological systems.

2.2 Historical background of ICT in Tanzania
Information and Communications Technologies (ICT) advances since the end of the 20th Century and have led to multiple convergences of content, computing, telecommunications and broadcasting. They have brought about changes in other areas, particularly in knowledge management and human resources development. Increasing capacity of ICT has further been empowered by the growth of a global network of computer networks known as the Internet. It has impacted the way business is conducted, facilitated learning and knowledge sharing, generated global information flows, empowered citizens and communities in ways that have redefined governance, and have created significant wealth and economic growth resulting in a global information society.

The gap between those able, and those unable, to participate in the knowledge economy is currently termed as the “digital divide.” This digital divide is evident within nations, and between the developing and the developed world. The current Tanzania ICT situation requires urgent steps to enable Tanzanians to participate meaningfully in the knowledge economy, recognizing that Tanzania has low levels of human capital development, local content creation; ICT infrastructure and access, which together lead to high costs of participation.
The dangers posed by the digital divide, and the risk of being excluded further from the knowledge economy and social development, has propelled the Government to put in place a policy framework through which coordinating mechanisms and harmonized strategies might be nurtured. This policy framework makes it possible for “enabling sectors” (such as telecommunications, information, or broadcasting) to work together whereby “enabled sectors” (such as education, health, governance, or agriculture) can become further empowered through the appropriate development and application of ICT.

ICT is both cross-sectoral and a sector in its own right. An ICT policy has to relate to other relevant sectoral policies, whether they are infrastructural (such as telecommunications or e-commerce), or vertical (such as education, tourism, manufacturing or health), or horizontal (such as information, or governance). Consequently, in addition to developing and implementing an
ICT policy, other relevant sectoral policies and their related institutions and regulations must accommodate ICT and its multiple convergences. It is also necessary to review existing legislation, thereby enacting requisite changes while introducing new legislation to create the appropriate legal framework within which this policy will be implemented.
Tanzania achieved notable progress in deploying ICT notwithstanding the 1974 Prohibition Order on Electronic Computers and Television Sets. The achievements were a result of various adjustments since the early nineties in policy, regulatory and commercial facets, both macroeconomic and within ICT’s converging sectors. The private sector has actively contributed to these achievements by investing in among others, support facilities, training centres and sales outlets. These efforts have enabled government departments, institutions of learning, Non-Governmental Organisations (NGOs), as well as other entrepreneurs; acquire ICT solutions that address their individual problems most appropriately.
2.3 What is the meaning of Information and Communication Technology?
According to Cecchin, et al (2003), ICT can be defined as the set of activities that facilitates the capturing, storage, processing, transmission and display of information by electronic means which can be utilized to support poverty reduction strategies. Organization for Economic Co-operation and Development (2005), defines ICTs as the newer technologies of phone and internet it includes technology and communication media such as radio, television, video cameras and telephones. Gerster and Zimmermann (2003), explain that, Information and Communication Technologies (ICTs) facilitate the creation, storage, management and dissemination of information by electronic means. This definition includes radio, television, telephone, fax, computer and the Internet. According to Mayanja (2005) define ICT as tools used in creation, processing, transfer and sharing of information which includes traditional ICT( eg, Drum, Phone, Radio) and modern ICT( eg, Video, TV, Computer, Internet/E-mail, Fax, cell phone, Video conferencing)

2.4 The role of Information and Communication Technology (ICT) in poverty reduction in Tanzania
2.4.1 ICT supporting pro-poor market development
Since small farmers in rural areas lack access to information about prices, data on crops, weather conditions, credit facilities, and market opportunities, therefore, ICT can remedy such information asymmetries and stimulate poor people’s entrepreneurship by better connecting them to markets Cecchin, et al (2003).
Gerster and Zimmermann (2003) argued that, “poor people need among other things affordable access to information that is vital to their livelihoods”. The use of ICT applications can enhance poor people’s opportunities by improving their access to markets, health, and education. ICT can empower the poor by expanding the use of government services, and reduce risks by widening access to microfinance. Rural households can earn higher incomes from the production of agricultural goods for non-local markets, and ICTs can play a role, along with trade liberalization and improved transport infrastructure, in opening up new markets. Higher incomes will in turn increase demand for consumer goods. This leads to the creation of non-farm jobs and employment diversification, especially in small

2.4.2 ICTs improving access to microfinance
Microfinance is an important tool for poor people to reduce, mitigate and cope with risk. Computerization, electronic bank system, and software systems providing loan tracking, financial projections and branch management information can reduce costs and help microfinance institutions reach clients more efficiently.
Cecchin, et al (2003).

2.4.3 ICTs in management of natural disaster
ICTs can also play a major role in relation to the natural disasters that are common in low-income countries. For example, between June and December 1996, a total of 1,689 people died in Andhra Pradesh (AP) in India, in heavy rains, floods, and cyclones. The total economic loss caused by the 1996 disasters in AP was estimated at US$2 billion. The following year, a World Bank backed project was implemented, designed to help set up a hazard management program in high- risk areas and improve warning capacity. Both elements invoked a significant ICT component—especially in cyclone warning, communication and response, awareness raising, education and community involvement in hazard reduction activities. (World Bank, 2001). ICT can also play a major role in helping to monitor food security related issues (weather, droughts, crop failures, pests etc.), and to inform government on impending food scarcities and famines. According to Amartya Sen (1981) and Jean Dréze (1999) information plays a key role in preventing food scarcities from turning into famines.

2.4.4 ICT supported by poverty reduction policies
It is argued by Gerster and Zimmermann (2003) that the ICT, if supported with the right policies and with cross-cutting and holistic approaches, will complement and strengthen other multisectoral efforts that are required for poverty reduction, including those meeting basic needs. Experts concur that ICT can contribute to poverty reduction if it is specifically tailored to the needs of the poor. It can also boost economic growth but is unlikely to alleviate poverty in countries where there are persistent socio-economic inequalities

2.4.5 ICT in improving rural infrastructure for poor
Although investment in rural infrastructure (roads, electricity, and telecommunications) has an impact on reducing poverty (mainly due to improved opportunities for non-farm employment, and increased rural wages), it has been shown that investment in education, agricultural research and rural livelihoods development can achieve more impact. ICTs have a role to play in supporting the delivery of such services in rural communities. For example, radio has long been a tool for mass extension of research, and studies (in Tanzania among other places) show that improvements in the yields of crops from households with a radio are often equal to those of households who have regular visits from extension workers. ICTs offer opportunities for data analysis, enhancing planning, for training and dissemination of research, enhancing uptake of new methods and techniques, and for reducing vulnerabilities (World Bank, 2001)
Access to ICTs by the poor through investment in infrastructure must, therefore, be accompanied by the development of content (or services) which facilitate relations and the exchange of market information.

2.5 Main challenges in ICTs application for poverty reduction
ICT applications are technologies and as such cannot solve political or social problems that are often at the roots of poverty e.g. political will, democracy, good governance etc
Due to the requirement of “connectedness” (roads, power, telephone) most of the ICTs have an urban bias and discriminate against rural areas;
The potential poor beneficiaries of ICTs are often unskilled, illiterate people, mainly women, who may also speak a minority group language (Organization for Economic Co-operation and Development, 2005)

ICT availability (connectivity constraints, e.g; cost):-
Access (money to spend, skills)
Language (Internet: 80% in English)
Content (Not everything there is useful, i.e; pornography)
Dominance of western culture (Internet, TV/video etc.) (Mayanja, 2005)
Old electronic equipments are imported and may cause problems of radiation when damped
Users do not use properly
There is a problem of stealing using ICT eg ATMs in banks
The government is not in control of ICT

3.0 EMPERICAL LITERATURE REVIEW
In Tanzania, the government has embarked upon improving the business environment through revision of regulatory and tax regimes to stimulate private sector-led growth, and developing entrepreneurial business management skills of small business associations. Tanzania has placed a short-term emphasis on the urgent need to develop ICT skills, rather than just enhance the primary education system. (UNDP 2001 b). According to Tanzania Government, 2003, Tanzania has made remarkable progress in deploying ICT. This progress has been well received by citizens and service providers who are striving to address unmet demand and competition in newly liberalized markets. According to the National Information and Communications Technologies Policy of 2003 the following are the status of ICT in Tanzania

3.1 Access
3.1.1 Infrastructure
Tanzania’s tele-density is low, with the number of fixed and mobile cellular lines currently standing at 12 telephone lines per 1000 people (i.e. a teledensity of 1.2) and the number of mobile phone subscribers currently stands at 81 per 10,000 inhabitants. In contrast, the City of Dar es Salaam has 5 fixed lines and 10 mobile phone subscribers per 100 people.

Tanzania’s Public Switched Telephone Network (PSTN), using fibre optic, microwave and satellite-based links, is now over 95% digital. This paves the way for allowing the provision of new services enabled by ICT. The coverage of the network infrastructure is limited to urban areas and thus lack of telecommunications and other infrastructures in the rural areas remains a basic impediment to the provision of such new ICT services.

Tanzania has a liberalized broadcasting sector with some broadcasting operators spread over a vast area nationally and even regionally while others cover a local geographical area. Although at present the programme content of the television services falls short of the sentiments expressed in the Broadcasting Services Act, 1993 and consists mainly of imported material and sports coverage, this imbalance is being addressed by both the regulatory authority, and the providers of those services.

3.1.2 Internet availability
The Tanzania Communications Commission (TCC) has licensed nine companies (example TTCL mobile, Tanzania postal bank, mobile operators like celtel, Vodacom, tigo, radios like radio Tanzania, radio one, TVs like TVT, ITV, star TV and internet cafes) to provide public data communication services including Internet bandwidth. These data operators have isolated initiatives of connecting their Points-of-Presence (PoPs) to the global Internet backbone. As a result, Tanzania lacks cheaper and high capacity connections to the global Internet. All connections, regardless of the data service provider, are small capacity international links that connect to the global Internet backbone in different countries such as Norway and the United States. Therefore, the limited international Internet bandwidth is scarce and extremely expensive. The lack of a national Internet Exchange Point (IXP) also means that much of Tanzania’s local traffic is routed via international routes. There are presently sixteen licensed ISPs in Tanzania providing between 10,000 and 15,000 dial-up accounts in the country with many more users via Company and Government LANS and Internet cafés. Available e-readiness studies suggest that there is a large unsatisfied demand in the country for Internet access.

3.1.3 Hardware and software
There is no local manufacturer of ICT equipments in Tanzania; all local dealers or agents import these products. There are no standards guiding the import of both hardware and software. Few local companies are developing computer application packages. Most of the software used by both public and private sectors is imported at considerable cost. The use of open-source software is on the lower side. Overall, Tanzania has a small emerging skilled capacity to support the ICT industry in terms of developing, selling or supporting hardware and software.

3.2 Learning
3.2.1 Educational access to ICT
Currently very few educational institutions have computer laboratories and other multi-media facilities. These facilities are more in private schools than in public schools. Even fewer of these facilities are linked to the Internet. At universities and other institutions of higher learning, few computers are available for use by students and academic staff.
However, they are not enough to meet the demand. Internet access bandwidth at these institutions is limited ranging from 32 kbps – 512 kbps. Though numerous, cyber cafes do not currently offer a conducive environment or pricing structure to make them viable as e-learning centres.

3.2.2 Enhancing education using ICT
There is an official Secondary School Computer Studies Syllabus for Forms I – IV developed in 1996 and issued in 1997. It is out of date with respect to the evolution of technology since the early 90`s. However, only a few students have taken these courses so far. The lack of a programme for training teachers on computers and other multi-media utilization has been identified as a major reason for slow take up of computer studies in primary and secondary schools. In this respect, private schools are far better than public schools. Generally, the use of ICT enhances effective delivery of education. Currently, this benefit is only evident in some schools and colleges in urban areas.

3.2.3 Developing the ICT workforce
In general, there is a shortage of well-qualified professionals of ICT in Tanzania. There is also no well-established ICT professional profiles, and a standardized process of evaluation or certification of the different courses offered by various training centres is lacking. Access to Online and distance learning for ICT is also still limited. Furthermore, opportunities for training are mostly limited to few urban centres.

3.3 Society
3.3.1 ICT in Everyday Life
Many ICT users in Tanzania access the Internet through Internet Cafés. There is therefore a need to reduce barriers in deploying ICT and in developing the required human capital for sustainable participation of Tanzanian Society in the ICT industry. On the other hand, there is already a significant improvement in the penetration of fixed and mobile telephone lines and public pay-phones in urban centres. However, the available e-readiness evidence shows that there is a need to increase the availability of ICT as a result of the high current demand and burgeoning awareness.

3.3.2 Locally relevant content
While there are many Tanzanian websites, most of these are in English and are not updated regularly. Many appear to be merely an advertising presence on the Web. There are a number of vibrant websites with the majority publishing local news on the Web, while others demonstrate some convergence by giving access to local radio programmes on the Internet. Despite the innovation of relatively few websites, the Web has yet to become a dominant medium for society to communicate, particularly because of the few websites that are in Kiswahili. However, an encouraging phenomenon is that Kiswahili is recognized as being the African language with the greatest Web presence.

3.3.3 ICT in the workplace
There is sufficient evidence that several large organizations and companies make extensive use of networked computers, some with Internet access. The banking sector makes heavy use of ICT to provide improved customer service with some banks using Very Small Aperture Terminals (VSATs) or public leased lines to interconnect their branches and cash dispensing Automatic Teller Machines (ATMs).
However, anecdotal evidence suggests that smaller companies, and many institutions outside Dar es Salaam, make marginal use of ICT in their daily operations. The greatest obstacle to effective use of ICT in the workplace according to the SIDA Survey and the e-Readiness Report is the low capacity of human capital in the use and maintenance of ICT.

3.4 The economy
3.4.1 ICT employment opportunities
The supply of IT professionals is considerably less than current demand, especially in the areas of higher skills and experience. Furthermore, job mobility in the ICT sector is very high. Therefore, there is a need for increased emphasis on the human capital development aspects to address this situation.

3.4.2 E-Commerce
Only few local websites recently began offering limited e-business services. However these services are constrained by the lack of a national payment system, local credit cards, and a legislative framework appropriate for e-business. These are constraints that need to be addressed urgently. Most significantly, the legal framework does not provide adequate safeguards to create an environment of trust for e-business transactions to take place. Consequently, financial institutions are not able to set up provisions for supporting e-transactions for their own, and each other’s clients.

3.4.3 E-Government
Various arms of government have made significant progress in deploying ICT in e-government solutions. These solutions can be categorised into both e-government and e-governance solutions. In the category of e-government, several departments are transforming their operations by deploying ICT. However, no mechanisms exist for ensuring that these major initiatives are coordinated or developed within a holistic strategic government plan. To make further progress and reap additional rewards, government needs to develop a comprehensive and holistic e-government strategy for urgent implementation. Not only will this enhance government productivity, but it will also enable the government, as a “model user” of ICT, to become a driving force for sustainable progress in the national ICT arena. The possibility of providing e-governance services depends upon the existence of an effective e-government infrastructure through which the public service can communicate internally and with the intended beneficiaries of its services.

4.0 POLICY REVIEW
Though issues of ICT have emerged largely since the beginning of the 21 century Tanzania have had some national policies in some of ICTs fields. The national telecommunication policy of 1997 provided national guidelines in the area of telecommunications which is an important aspect of ICT sector. The vision for the sector was to have accelerated development of an efficient telecommunication network that can provide a national info communication infrastructure and access to present day telecommunication technologies by all sectors of the economy and all segments of the population including universal access.

With the emergency of the importance of the field of ICT in Tanzania in the beginning of the 21st century Tanzania divided the development process of ICTs into three phases for smooth and speedy implementation. Phase I is associated with Development of an ICTs National Policy, Phase II is on Development and preparation of an ICTs National Implementation Strategy, and Phase III involves Implementation of ICTs National Program. On that understanding the Government felt it very important for those efforts (ICTs initiatives) to be coordinated nationally and in April, 2001, the Ministry of Communication and Transport (MCT) was appointed as a National Coordinator and a Focal Point on all ICTs related activities. However, this government decision was not intended to stop any ICTs activity from being implemented, but the objective, as a country, was to have a single national institution (MCT) that is mainly responsible, amongst other tasks, for coordinating the national ICTs development process for improved national socio-economic performance. MCT as a National Coordinator for all ICTs related activities is expected to ensure that there is effective and efficient system for information exchange among all sections of the population for enhanced socio-economic performance.

Tanzania have developed an ICT policy in 2003 to guide the national on issues of ICTs, the Policy’s vision for Tanzania is to become a hub of ICT infrastructure and ICT solutions that enhance sustainable social economic development and accelerate poverty reduction both nationally and globally. This went hand in hand with enacting the Tanzania Communication Regulatory Act.2003 as a move to implement ICTs related policies and strategies Tanzania established an Authority Tanzania Communication Regulatory Authority (TCRA) in 2003 for the purposes of regulation of telecommunication, broadcasting postal services; to provide for allocation and management of radio spectrum covers electronic technologies and other ICTs applications and to provide for its operation in place of former authorities and for related matters. This gives evidence that the government puts emphasize on ICTs issues. There are also issues of ICTs in MKUKUTA and the Tanzania Development Vision 2025


5.0 CONCLUSION
It has been found that, Information and Communication Technology (ICT) plays a major role in all aspects of national life: in politics, in economic life, as well as in social and cultural development. It is rapidly transforming our lives, the way we do business, access information and services communicate with each other and entertain ourselves. It fuels the global economy. It also relates to human rights, helping, at best, to support freedom of expression and right to information according to the Article 19 of the Universal Declaration of Human Rights. Information and Communications Technology (ICT) can reduce poverty by improving poor people’s access to education, health, government and financial services. ICT can also help small farmers and artisans by connecting them to markets.

Therefore, “ICTs are not just about technologies, but more about information transfer and communication”. First of all they provide access to information; the technology employed is of secondary importance. This information has the potential to be used in changing the living standards of poor people and communities. In practice this may mean the creation of earning opportunities or improvement of access to basic services, for example in health or education.

This paper suggests that, it is important that women, who in many countries work as farmers, are targeted by the ICT services. It has been known, for long, that women are particularly disadvantaged, when it comes to access for rural extension services, and technical, agricultural and market information. Firstly, their low educational status and high illiteracy incapacitates them form benefiting from and tapping new information and improved practices. Secondly, they lack a socially accepted decision-making in production. Thirdly, agricultural and other field-based extension officers, who are usually men, mainly consult other men. Fourthly, women are less mobile, more culturally constrained and often too overburdened with various chores to be able to participate in technical trainings.

No comments:

Post a Comment