63rd IFLA General Conference - Conference Programme and Proceedings - August 31- September 5, 1997
Internet and Its Impact on Developing Countries: Examples from China and India.
Draft: work in progress, January 28, 1997
Dr. Kanti Srikantaiah
Department of Information Management
In the new information climate, developments in access and delivery of information through electronic means have posed challenges for many countries, especially in the developing world. The main vehicle for such electronic access and delivery is the Internet, through which, it is now possible to access rapidly and inexpensively, large volumes of data and information, created throughout the world. The Internet, although only a few years old, has significantly changed information management in developed countries through creating pressures to further improve communication systems and develop more user friendly environment for the sharing of information. Now, Internet has began penetrating developing countries, changing information practices in various sectors. The impact of Internet in developing countries is several fold: Internet is changing traditional ways of conducting information business by establishing new sources of information and new methods of communication on a global basis. It has created pressure to update the information/technology infrastructure. It has created healthy competition by bringing many international and indigenous vendors of IT on the same platform and has helped policy makers take advantage of access to global sources of information. In this background, the paper discusses the role of Internet and its impact on developing countries, including some major issues associated with electronic information access and delivery. The discussion of the paper, however, is focused on the two most populous countries in the world, China and India, which are also information rich countries in the East Asia region and the South Asia region, respectively.
- In the new information climate, many countries all over the world are relying on the electronic access to information through the Internet. The Internet, which is now sweeping many countries globally, revolutionizing the areas of information management and information technology. With the introduction of Internet, developed countries have improved their communication systems, have the ability to share information in a user-friendly environment, and have shown significant growth in economic terms.
- These advanced countries have utilized the Internet in various sectors: agriculture, health, public sector management, industry, environment, telecommunication trade, etc.. After demonstrating the results on the ground in developed countries, the Internet has now penetrated into the developing countries. In this background, the paper discusses the role of Internet in developing countries with specific examples from China and India.
2. The Internet
- The idea of Internet originated about 25 years ago at the Defense Department Advanced Research Projects Agency (ARPA) to keep track of data through computer hardware and software. In reality, the Internet is a complex web of networks connected with high speed links cutting across countries. Therefore, there are no set boundaries for the Internet in cyberspace. According to the latest worldwide statistics  there were 50,000 networks in more than 100 countries with more than 50 million users. It is estimated that the rate of growth in the Internet usage is around 20% a month. At this point in time, the Internet is not proprietary and is available to anyone with computer access connected to the external world. After the U.S. launched Information Superhighway in 1994, the Internet is playing an ever increasing role in the vast information market in many countries.
3. The Context of Developing Countries
- The Prime Minister of Malaysia (Mahathir Mohammed) once said that: "it can be no accident that there is today no wealthy developed country that is information poor, and no information rich country that is poor and underdeveloped."  This statement emphasizes the importance of Internet for developing countries. From an international perspective, the access to and utilization of Internet in the world is unbalanced. There are obvious gaps between developed countries and developing countries in terms of the numbers of nets, hosts and users. As a study from the Panos Institute indicated: "there is a danger of a new information elitism which excludes the majority of the world's population."  Analysis of data for total notes and connection dates for selected countries in Africa, Latin America, Asia and Pacific, along with G-7 (G-7 countries include Canada, France, Germany, Great Britain, Italy, Japan and the United States) countries (for comparison) is provided in Table 1. Analytically, 56% of the connections were in the United States, 26% were in Europe, 16% were in Canada and Latin America countries, and 12% were in Asia, Middle East and the remaining 1 % were in African countries. The G-7 countries took about 80% of total nets connected with Internet, and the number of nets in 55 developing countries in Asia, Africa and Latin America amounted to only 5%.
- There is another study based on the data from the World Bank economic and social indicators. According to this study, the correlation of Internet nodes with GNP per capita is 0.88. When adjusted for population size, the country with the highest density of nodes for its population was Switzerland. The United States ranked sixth, and India was one of the lowest. So the revolution of electronic publishing and accessing is really not global. 
TABLE NOT AVAILABLE
Table 1. Distribution of networks connected with Internet (1995): G-7 countries, Africa, Asia, Middle East and Latin America
source: NSFNET Networks by Country, 1 May 1995, http://nic.merit.edu/statistics/nsfnet/nets.by.country
- The timing of connection to the Internet in these countries is also significant. For instance, while most developed countries obtained their connection to Internet during 1988 through 1990, developing countries begun their Internet connections recently, around 1994/1995. Even now, many developing countries do not have Internet facilities. An approximate date of Internet connectivity for selected countries is also given in Table 1.
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Table 2. Basic indicators of selected developing countries and and G-7 countries
Source: The World Bank Atlas: 1996. The World Bank, Washington, D.C. 1996.
- The World Bank has published data on various economic and social indicators for 133 countries. For the usage of electronic information through the Internet, we have decided to include data on population, literacy rate and GNP for selected developing countries, along with the G-7 countries. The data is provided in Table-2.
- Referring to Table 1 and Table 2, we can observe a definite correlation between GNP per capita, population, illiteracy and the number of networks connected with the Internet. The data shows that the higher of GNP per capita, the lower the illiteracy rate, there was an increasing number of networks to Internet. On the contrary, indicators such as higher population, higher illiteracy rate and the lower GNP per capita, will result in fewer connections to Internet. For most developing countries, Internet connections brought the golden opportunity of "leapfrog" development through participating and competing in global trade, sharing information globally in education, research and manufacturing/productivity sectors, alleviating poverty contributing to social and economic indicators.
4. Information Environment in China and India
- China and India are the two most populous countries in the world. With more than 2 billion people in these two countries, the market for Internet is tremendous. In addition, both China and India are information rich countries with a long tradition of learning, publishing and with media activities. These two countries have experienced recently a phenomenal growth in economic terms. According to a World Bank report, the annual average growth of GNP during the ten period covering 1985-1994 in China and in India was around 7% and 3% respectively.  Compared to other developing countries of the same scale, both China and India have shown significant growth in the development cycle and in the utilization of information technologies and in managing information. The steep decrease in PC price, the proliferating software in Asia with indigenous approaches, and the multimedia influx have contributed to the growing market and the utilization of Internet in China and India. According to a study, the sales of PC in the regions have expanded more than 20% each year. 
- A rating scale given by the Gartner Group predicts a long term potential for information technology in Asia and Pacific region.  The rating is centered around population, education, GDP, economic growth, government support to IT, popularity of IT, IT industry and (its competitiveness), the industry type and international perspective. The details are given in Table 3 for China and India, along with selected countries for comparison. As the Table 3 points out, the total rating score for China was 75 and for India the score was 58.
- In the context of China, population of 1.2 billion people live on 9.6 million square kilometer territory. With its long civilization and tradition of learning, and with the rapidly growing economy since 1980, China has become one of the most powerful information resources and has become an integral part of the world information community. In 1993, there were 96,761 titles of new books, 7011 kinds of magazines and 987 newspapers published by more than 3,000 publishers nationwide. There are 1080 universities located in 29 provinces and graduates more than one million students each year. There are 350,000 libraries of different types, such as public libraries, university and school libraries, research libraries, military libraries and labor union libraries. By the year 2000, China plans to cover all villages and urban areas to have at least one library in each place.
- Government has always been the biggest information producer and at the same time the consumer of information. A total of 34 information centers belonging to different central government departments, China Statistical Bureau, China Economic Information Center and National Scientific and Technical Commission (NSTC) distribute and collect information from the central government to provincial, city and at county levels. For the general information services, Chinese information systems are divided into five categories: (a) information centers affiliated with the National Scientific and Technical Commission; (b) information centers belonging to the central government ministries; (c) information centers of provincial nature; (d) information centers of specialized nature affiliated to regional governments; (e) information centers affiliated with state enterprise, universities and other research institutions; (f) information centers of non-governmental, regional, professional and other similar bodies.  Since 1994, the global upsurge of information highway has also influenced the Chinese decision-makers, China's Information Superhighway, consisting of "Eight Golden Projects" covers networks among universities, industry and state own enterprises. The public need for the Internet and its potential is also tremendous.
TABLE NOT AVAILABLE
Table 3. Long-term potential of information technology in Asia and Pacific countries
Source: Gartner Group Latest Report, China Infoworld, July, 29, 1996, Edition 41
- In the Indian context, since its independence in 1947, covering a vast area of over 3.2 million square kilometers, and a population of more than 900 million, India has made substantial progress in the field. In the area information, India is relatively rich, being the seventh largest publisher in the world. It also boasts as supporting the 500 crore (US $162 million) book industry. For example, it publishes more than 18,000 monographic titles by 11,000 publishers each year. There are over 30,000 periodicals currently being published, of which 5,000 are in English. There are thousands of book sellers, over 196 universities and 8,100 colleges and research institutions. The student population in higher education alone exceeds 5 million. In Delhi alone, the capital of India, there are 360 booksellers, 6 universities, 80 colleges, roughly 40 research institutions , and over 100 government agencies.
- Internally, the government offices and quasi-government offices at the central, state, district, sub-district and village levels consume a vast amount of information and produce a large volume of information. At the national level, the main sources of information include: various line ministries; the Central statistical organization (CSO); the National Sample Survey Organization (NSSO); the Registrar General of India (RGI); the National Information Center (NIC); the Center for Monitoring Indian Economy (CMIE); INSDOC; DELNET; Tata Energy Research Institution; The Center for Science and Environment; and the Federation of India Chamber of Commerce and Industries (FICCI). Similarly, there are hundreds of governmental bodies at the state and local levels. The information output from these offices in the various sectors is phenomenal. In addition, there is plenty of information created, acquired and disseminated in all manufacturing and servicing sectors. These sectors indicate the scope for the Internet in India.
5. Internet connections
- In China, the first TCP/IP link to Internet was established in 1994 in the Institute of Higher Physics, Chinese Academy of Science (IHEP). The other networks connected with Internet are: (1) Chinanet (Chinese Public Internet) established and run by the Ministry of Post and Telecommunication, the backbone of Internet connection in Beijing. It is available through local post office for subscription. (2) CERNET (China Education and Research Network) is owned by the State Education Commission. In 1996, CERNET connected 100 universities nationwide. Eventually, it will connect to all universities and will become the basis for the booming educational and research development. (3) NCFC (National Computing & Networking Facilities of China) started in 1989 and is the first high speed network funded by the State Planning Commission and the World Bank. In 1994, its international route was opened. (4) GBNET (Gi Tong Company Network) was established in 1994 supported by the Ministry of Electricity and has more than 1000 users.
- In a two year period, China has shown a big improvement in the number of computers and the number of users on Internet. For instance, in 1995, there were 400 computers and 3000 Internet users, and in 1996 it increased to 6000 computers and 40,000 users. ChinaNet, already mentioned above, plans to cover 30 provinces and the users from nationwide will exceed one million.  The users of Intenet are generally scientists, social scientists, academicians, university students, researchers and technical experts with higher educational background and proficient in the English language. Access to Internet is gained primarily through universities, scientific and technical institutions and corporations.
- In India, the Internet was initiated in November 1986 through Education and Research Network (ERNET) with the assistance of the Government of India and the United Nations Development Programme (UNDP) involving eight institutions in the country as participating agencies; the five Indian Institute of Technology (IIT) institutions, the Indian Institute of Science (IISC) in Bangalore, the National Center for Software Technology (CST) in Bombay and the Department of Electronics (DOE) in Delhi. With this collaborative effort, its multi-dimensional objectives covered: a) setting up a nationwide computer network for academic and research community promoting research and development in the country and their counterparts abroad; b) strengthening the national capabilities in information infrastructure; c) building specialized human resource through education and training to increase awareness of information resources available through the Internet; and d) opening up India-US technology gateway to provide a wide information base with other servers . Three other internal service providers became involved at a later date. They were SOFTNET by STP, National Information Center (NICNET) and Gateway Internet Access Services (GIAS) .
- As of September 1996, India had more than 100,000 Internet users of which 70,000 for ERNET, 15,000 for SOFTNET; 2,000 for NICNET and 8,000 for GIAS. The users are expected to grow to 1 million in the next three years and by then the computer penetration in India will be around 10 million PCs. The education and research community has maximum penetration with 65% followed by business users of 25% and other users of 10% in the government and private household. A dramatic growth is expected once the entry of private sectors enter into the Internet market. The city of Bangalore is expected to dominate the internal market because of its "electronic city" image .
6. Current issues and recommendations
- In terms of the Internet, there are three major areas of concern that are significant in developing countries: a) national information policy; b) regulatory framework and information infrastructure; and c) education and training.
- a) National information policy. Developing countries have a long tradition of oral culture. Therefore, the awareness of information sources in written form within the country is minimal. While national information policy in developing countries concentrate on trade, international relations, national security and technology, unfortunately, very little attention has been paid towards accessing information electronically through the Internet and to derive benefits. The developing countries, to achieve faster economic growth, should include in their official documents plans and implementation of electronic information delivery systems as priorities. The policy statements should be integrated into the national planning documents such as "five year plans" and should be implemented on schedule. Sufficient funding should also be allocated at the planning stage and should be made available quickly for implementation.
- b) Regulatory framework and information infrastructure. The regulatory framework in developed countries enforces to protect investment, intellectual property and individual privacy in the information market. The legal framework addresses the private sector involvement, skilled human resources, standards, and implementation. In most developing countries, regulatory framework hardly exists for the information work in the country. Although the rapid growth of information technology is changing the way of doing business today at home, work and in organizations in both developed and developing countries, the regulatory framework has very little impact on developing countries. While the information technology including telecommunication have penetrated every market in the developed world, the developing countries still view information technology as only a means to support MIS, finance and accounting facilities, and data processing. The computer penetration per capita both in China and India in the area of small office/home office (soho) is still not significant compared to the population of those two countries. Telecommunication still remains as a major issue in both China and India. If information infrastructure has covered the wide population over China and India, technology should be made available to access global information through the Internet, and then the entire economic scene will be revitalized. In both China and India, the sensitization of Internet and its importance for policy makers exists only at the executive level, and unfortunately not at the political level. This needs to be addressed urgently.
- c) Education and training. The work force in developing countries, like developed countries, are changing from the labor-intensive to knowledge-based work. In developed countries, surveys have shown that the usage of Internet is associated with the higher education. The same principle applies in developing countries. For this, attention needs to be paid to improve the literacy rate. It is the responsibility of the government, central, state and local, learning institutions and civic associations to work together to increase literacy in developing countries. Only through this, everyone in the country can better themselves and compete globally to access and disseminate information using the Internet. In this context, the training of information professionals should be given priority and should be taken seriously. The trained information professionals will be able to utilize Internet more efficiently and will be more effective in acquiring, organizing and disseminating information within country and abroad. Often, the developing countries are overly concerned about safeguarding the heritage of language and culture and for support on the political systems. They are weary of economic formats that are alien to them. Proper training of information professionals is immediately requirement. The trained professionals can educate the masses and to take advantage of the Internet.
Thus the national culture and heritage can also be preserved through "cyberspace" disseminating country's rich information all over the global.
- The developing countries need to have more access to information for economic development. The Internet will assist in development as follows: a) assessing the information capacity of the country and in determining user needs, organizing information, synthesizing information and providing an open access to internal information as well as external information; b) disseminating information to meet the needs of the public sector and private sectors and for daily information needs of the general public. The two are almost inseparable and in a sense have a symbiotic relationship. In developing countries, there is an urgency to train information professionals to support information infrastructure and information management.
- The role of government in the appropriate utilization of Internet is vital. First, it influences the appropriate utilization of the Internet for social changes and economic patterns transforming from labor-intensive to knowledge base information industry. Second, it defines public and private sector relationships and opens up the market for creation and strengthening of private information sector. Third, it redefines telecommunication policies to brake monopoly and to encourage a healthy competition among international vendors and indigenous vendors.
- In developing countries, the Internet has taken the information revolutions to a higher level. This has created need for major information adjustment at the policy level in order to achieve macroeconomics and political balance in an environment of proper information flows, global competition, trade and investment.
- There is no single solution that can be uniformly applied to all situations in developing countries. Each business case needs to be evaluated and customized to meet individual needs of a country. Priorities are to be sorted out depending upon the available resources. Indigenous resources are to be harnessed and resources including funding from international organizations are to be tapped. The current varying levels of government to support the Internet in developing countries are linked "effectively", supplemented with additional funding and resources.
- The Internet has a formidable task in developing countries: in lobbying for more government support and budget allocation; in taking advantage of Internet delivery modes to collect and disseminate information; in mobilizing support among the specialized ministries, universities, and industries for producing information and managing information utilizing Internet, and to place a stronger emphasis on "institutional arrangement" to influence policy makers and information purveyors to promote Internet for the country's development.
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