EU overseas development funding has been increasing since 2000 and in May 2005 the EU made a commitment to double its aid budget by 2010. An increasing proportion of aid goes to developing country governments directly to support their own development plans and budgets. They choose how much to allocate to ICT. Priorities are set locally and EU donors respond to these priorities. ICT (new and old technologies telephones and broadcasting as well as the internet) are an important element of development in many areas such as education, health, economic growth and governance. Most countries seek support for ICT as an integral part of development plans in these areas, while fewer seek support specifically for ICT. Most EU members support this approach, and ICT forms a significant part of many EU funded projects.
ICT infrastructure has largely been funded by the private sector, since the 1990s. The private sector has proved itself more efficient than governments in telecommunications service provision: private providers are more flexible and able to keep up with technological change, and competition keeps costs and prices lower. One role of governments, with donor support, is therefore to attract private investment. This sometimes requires financial support such
as low-interest loans or risk guarantees; and always requires creation of the right conditions of regulation, competition, and start-up costs. It is not enough for governments and aid donors simply to say Leave it to the private sector.
Areas in which government action is still needed, often with donor support, include: creating an enabling legal and regulatory environment to attract investors; ensuring that the communication needs of the poorest and marginalised people are met, often through innovative public-private partnerships; and introducing ICT into government functions and services. Donors also play a role in encouraging private operators to enter risky or less profitable areas, by supplying financial assistance and risk mitigation; and in
international collaborations.
Read the complete documenthere
|
