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Explainer: Is data the new oil in the GCC?

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Gulf Business‘s article that as an Explainer: Is data the new oil in the GCC? is a good snapshot of the present situation of that part of MENA countries.

We all know that ‘Big Oils’ management and petrol countries alike have underscored scientific research showing the link between burning fossil fuels and a dangerously heating planet. They’ve lobbied and funded reports to either downplay or deny the risks to the climate—and humanity—of using their products. It went on unabated until the advent of clean and accessibility to all the latest technological hard and software for a broad spectrum of commercial activities. 

Explainer: Is data the new oil in the GCC?

Technology has now become a key driver of economic growth in the GCC, with data already defining the region’s future, opines Maurits Tichelman, VP – Sales, Marketing, and Communications and GM – Global Markets and Partners, EMEA at Intel

Is the term ‘data is the new oil’ still relevant?
Yes, data has practically become the ‘new oil’. Data is playing a significant role as a crucial source of wealth for oil-rich nations and territories such as the GCC, which has historically been particularly dependent on oil as the main contributor to the GDP.

We are witnessing a significant shift from oil to data in the region as governments embark on strategic initiatives to diversify towards more knowledge-based and tech-driven economies. Data is already playing a key role in this transformation. A concrete example of this process could be autonomous driving. Autonomous vehicles run on data in the same way that today’s cars run on gasoline. Therefore, undoubtedly, data will be the new oil.ADVERTISING

In the GCC, oil has been crucial to economic growth. Will technology/data be able to provide the same level of economic prosperity?
Countries in the region are heavily investing in diversified industries such as technology, manufacturing, education, and healthcare, among others. As the Gulf states transform and diversify, the importance and impact of technology will take on an even greater role. Data is already defining the region’s future, complemented by mega projects planned with greater focus on smart infrastructure (smart cities), advanced telecoms services, and somewhat
accelerated by the rapid rise of remote learning and working due to the Covid-19 pandemic.

Furthermore, technology has now become a key driver of economic growth, from providing goods and services efficiently, to optimising advanced technologies to help businesses and governments access natural resources that can benefit people. Additionally, increased efficiency of labour has improved productivity and profitability.

While we are producing ample amounts of data in the region, are we currently maximising its benefits?
We are surrounded by data and it continues to grow exponentially. According to estimates, in 2021 alone, there will be 74 zetabytes of generated data and it is expected to reach 149 zetabytes by 2024. As a result, the need to understand and optimise data has become even more significant as every business uses data to some extent. However, there is a lack of knowledge and skills in utilising the data to its full potential. With the rise of digitalisation, companies and governments across the region and worldwide are investing in digital transformation, a positive indication that more organisations are now realising the importance of data.

The Covid crisis has highlighted the importance of technology – but will it retain its relevance post-pandemic across industries? 
The pandemic has undeniably prompted companies to invest more in technology adoption across industries including healthcare, education, retail and real estate, among others. The use of innovation technology such as virtual medical/doctor consultation has helped people during lockdowns. The Covid crisis has forced organisations and governments to adapt and prepare better to tackle future calamities with the aid of technology.

Businesses have seen the advantages and have started deploying smart and intelligent technologies such as artificial intelligence (AI) to improve safety standards and increase productivity. Thus, it is clear that technology has become an absolute necessity rather than a mere option; its relevance has never been so crucial and without a doubt the use and benefits will play a bigger role post-pandemic across industries locally, regionally and internationally.

What are the biggest challenges hindering tech adoption/data-driven growth in the region? 
Although organisations are implementing advanced technologies, the vast majority still operate on outdated and traditional models, which prevent them from utilising the benefits of the latest available technologies. Secondly, reluctance and resistance from employees in adopting technology poses challenges for companies. Lastly, a lack of skilled professionals is a key factor that has restricted organisations in the region from completing their digital transformation.

Looking ahead, GCC states are seeking to become global knowledge hubs. How can that journey be accelerated?
GCC governments are accelerating their digital transformation journeys with progressive strategies and initiatives. Smart Dubai, Dubai Data Strategy, Saudi Arabia’s The National Strategy for Digital Transformation and the Qatar Smart Program (TASMU) are examples of the regional commitment and ambition to explore all possibilities of technology and its impact on daily life and business. These strategies, roadmaps and ambitions are the key drivers and accelerators of their technological transformation journey.

What Is the Internet of Taxes?

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What Is the Internet of Taxes? A question answered by Toby Bargar in his article dated May 13, 2021, explains how in this day and age, the Internet generally is gradually spreading wider and wider to cover most daily life. But to this extent, who would have thought so?

So, let us see what it is all about.

What Is the Internet of Taxes?

According to a McKinsey Global Institute report, IoT could have an annual economic impact of $3.9 trillion to $11.1 trillion by 2025. Adoption is accelerating across several settings, including factories, retailers, and even the human body. In fact, smart cities will reportedly create business opportunities worth $2.46 trillion by 2025, and by 2030 more than 70% of global smart city, spending will be from the United States, Western Europe, and China. With AI and the rollout of 5G facilitating faster speeds and scalability, we will see even greater demand across sectors for IoT solutions.

The ability to tax IoT may require changing laws and regulations. As we continue to adopt smart solutions, companies have to get smart about the nuances and risks of IoT taxability.

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An oft-repeated phrase says that nothing is certain but death and taxes; however, in the case of IoT, we can say that nothing is certain but growth and taxes – we don’t yet know how it’s all going to shake out. The demand for IoT is going to tempt federal, state, and local jurisdictions to tax it. With voice communications taxable revenues declining, taxing IoT is an attractive option to replenish their coffers.

In 1998, Congress passed a moratorium banning state and local governments from taxing internet access. This ban was extended several times. The Permanent Internet Tax Freedom Act (PITFA) converted the moratorium to a permanent ban and was fully implemented nationwide on July 1, 2020. Since the initial moratorium, the internet has risen to be a critical communication tool over other more highly taxed wireless and landline voice options, which continue a steady decline.

The ability to tax IoT may require changing laws and regulations. This process could take some time, but there is a complicated web of laws, regulations, and tax liabilities surrounding IoT in the interim. As we continue to adopt smart solutions, companies have to get smart about the nuances and risks of IoT taxability.

There are two easy questions that will help you to begin to understand your IoT taxability risk.

1) Is your company selling internet access?
2) Is your connectivity embedded or over-the-top?

Over-the-Top or Embedded Connectivity

If your device is networked over a user-supplied connection, then access is over-the-top or bring-your-own Internet connectivity. The over-the-top connection can be wired, Wi-Fi, or purchased separately from a wireless service. For example, if you sell a wireless printer, users connect through their home or office network. You are not supplying the internet, but the device. In these cases, as an IoT device maker, you likely have no responsibility for the customer’s internet connection.

Different than over-the-top, an embedded connection is part of the device. If you sell a device that comes with its own data connection as a component of the sale or service plan, it is embedded. Smartphones are a great example of an embedded connection. The relationships between device makers and network operators can feature widely variable structures. The device provider may need to account for any taxes that need to be collected related to the connection.

The World Wide Web of Gray

Defining internet access may appear intuitive, but not all connectivity is considered internet access. If you are selling a service that meets the statutory definitions of ISP service, the federal law provides a moratorium against state and local taxes.

Private connectivity, however, is often taxable. Unlike the public internet, private connectivity occurs via a Local Area Network (LAN) or Wide Area Network (WAN). This type of access is considered a taxable communication service in most states. If the network is interstate, this will also subject you to the Federal Universal Service Fund fee (FUSF), which is currently 33.4%, an all-time high for this fee and growing higher every quarter.

However, there are questions about whether connections to devices that do not enable a WWW experience – you connect to the internet, but the end-user can’t log onto Facebook or perform a Google search – meet the federal definitions of ISP service. If you do not meet those definitions, then your likely tax destination could be LAN/WAN.

Avoid the Dead Zone

IoT is here to stay. As you develop and deploy IoT solutions, it will be critical to stay informed on the web of tax rules that may or may not apply to your business. Monitor federal and state agencies that have jurisdiction over internet taxation and stay abreast of any changes on the horizon.

With so much uncertainty, it can be tempting to push the envelope, but a conservative interpretation of tax guidance can proactively protect you from being caught off guard.

Finally, to avoid hitting a dead zone, don’t try to navigate the changes on your own. Consult with your tax and legal advisors to ensure that you are aware of the latest developments and plan your course of action accordingly.

E-governance for sustainable development in MENA countries

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The Forum ERF elaborated on how E-governance for sustainable development in MENA countries by  Iyad Dhaoui are typically perceived as technical support activities and not as a core strategic component of public sector activities.

March 23, 2021

Efforts to create digital government in the Middle East and North Africa are typically perceived as technical support activities and not as a core strategic component of public sector activities. As this column explains, the alternative would be that e-governance is value-driven instead of technology-driven: it should become an enabler of sustainable development.

In a nutshell

While digital technologies have spread rapidly in MENA countries, the broader development benefits from using them – the ‘digital dividends’ – have lagged behind: the opportunities offered by e-government are much wider than current usage.

Digital technologies are no shortcut to sustainable development: the digital economy also requires strong analogue components consisting of regulations, skills and institutions. Not undertaking necessary reforms in terms of digital complements will raise the opportunity cost.

The full benefits of the digital revolution will not be realised unless MENA countries continue to improve their business climate, invest in education and health, and promote good governance through strong institutions.

Both electronic governance (e-gov) and good governance have been widely discussed in the national and international arena. Digital technologies are some of the most transformational factors of our time, including their impact on effective governance and the process of sustainable development.

Public digital transformation has considerable potential for modernising public administration, improving public service delivery and promoting good governance. It may contribute to achievement of the 2030 Sustainable Development Goals (SDGs) set by the United Nations. In that regard, e-government initiatives remain an important driving force for realising this transition (EGOV4SD). It is becoming a viable alternative to the traditional bureaucratic means of public service delivery as it promotes open governance.

Digitalisation underpins every aspect of our daily life. Digital technologies – the internet, mobile phones and all the other tools to collect, store, analyse and share information digitally – have spread quickly and we find ourselves in the middle of the greatest information and communications revolution in human history (WDR, 2016).

The Covid-19 pandemic, which requires social distancing and quarantine measures such as lockdowns, has accelerated the role of digital government both in conventional delivery of digital services as well as new innovative efforts in managing the crisis. Digital solutions have become vital to address isolation and keep people informed and engaged (UN, 2020). E-governance ensures the delivery of services remotely, thereby reducing the economic, social and environmental costs associated with service delivery to the public.

Developing countries, including in the Middle East and North Africa (MENA), have made efforts to leverage information and communications technologies (ICTs) over the past decade. Concerted efforts have been made to digitalise (fully or potentially) government services to the public.

But digital government efforts in the MENA region are still perceived as technical support activities and not as a core strategic component of public sector activities (OECD, 2017). The alternative would be that e-governance is value-driven instead of technology-driven.

Some stylised facts

In the MENA region, the level of achievement of SDGs, governance system performance and investment in advanced technologies are different from one country to another, including sometimes within the same state.

In terms of achievement of the SDGS, the region is facing many challenges in creating decent jobs, building constructive social dialogue and improving social justice. The uprisings in half a dozen countries in the region brought to light key challenges that had existed for some time such as low job creation, pervasive corruption and lack of accountability and transparency. The uprisings and their truncated aftermath raise many important questions about political reforms, especially in terms of institutional structures. Individuals are seeking to become active citizens.

Recently, the pandemic has exposed serious vulnerabilities in MENA societies, institutions and economies. The consequences of the pandemic are likely to be deep and long lasting and the region’s economy is expected to contract by 5.7% (UN, 2020).

In terms, of governance system performance, adequate governance for innovation, and specifically ICTs, is severely lacking in most MENA countries (Göll and Zwiers (2018). There is a substantial cross-country variance in the related indicators, as well as variance in the responses to each of the indicators for individual countries.

Figure 1: Worldwide Governance Indicators (percentile rank*)

*Percentile rank (0-100) indicates rank of country among all countries in the world. 0 corresponds to lowest rank and 100 corresponds to highest rank.

Source: Worldwide Governance Indicators (WGI).

Corruption remains a central challenge despite the work of many governments across the region to focus their national priorities on fighting corruption and increasing transparency. The corruption perceptions index, which ranks countries by their perceived levels of public sector corruption according to experts and business people, uses a scale of 0 to 100, where 0 is highly corrupt and 100 is very clean. With an average score of 39, the MENA region falls behind both the Americas and Asia Pacific regions (score: 44) and does only slightly better than Eastern Europe and Central Asia (score: 35) and sub-Saharan Africa (score: 32).

In terms of e-governance, the MENA countries are characterised by large public sectors and complex regulatory structures. The implementation of ICTs to modernise public institutions has emerged and is growing. But dividends seem to be limited. Digital and data skills are also still scarce and unevenly disrupted across territories. The budgetary constraint is another challenge for the implementation of digital government strategies (OECD, 2017).

The difference in levels of digital development in the MENA region is significant (Thunert 2009, UNDP 2012, ESCWA 2015, Chambers 2015). Indeed, the region encompasses a wide variety of trajectories within the economy (general preconditions, differences between oil-exporting countries and oil-importing countries, outsourcing, start-up cultures, etc.). Factors such as the distribution of basic infrastructure, enabling business culture, and supportive economic and education policies are very different between as well as within most countries (Göll and Zwiers, 2018).

According to the International Telecommunications Union (ITU), internet use ranges from 30% to 80% across the region, and there is a gender gap in favour of men in many countries. The gap is also between rural and urban areas in almost all countries of the region.

High-speed internet penetration is low compared with emerging regions in Europe and Asia. With the exception of Gulf countries, where internet access is available to broad segments of the population, in many countries of the Arab world fewer than a quarter of households have access to this essential tool. Millions of people cannot afford internet services and are therefore excluded from the ICT revolution that is shaping the modern world (Gelvanovska et al, 2014). Table 1 highlights the state of e-governance development by geographical region.

Table 1: Breakdown of EDGI* per geographical region (2020)

Europe continues to lead e-governance development as indicated by the highest EGDI (0.817) it enjoys, followed by the Americas (0.634), MENA countries (0.616), Oceania (0.511) and sub-Saharan African countries (0.376) respectively.

The Human Capital Index (HCI) is the highest contributing sub-index in MENA countries while the Telecommunication Infrastructure Index (TII) and online service (OSI) are the lowest. This suggests that the main hindrances to the further growth of e-government in the region are still the lack of infrastructure and the digital divide.

The question now is which of the three sub-indices the rise in EDGI in MENA countries comes from?

Figure 2: Contributors to the EDGI improvements

Source: Compiled by author.

Figure 2 indicates that the largest component of the rise in EDGI in the region comes from the improvement in TII. This implies that investment in telecommunication infrastructure is the fastest means of improving a country’s EGDI rankings. It is worth noticing also the importance of online services and human capital in the long run. Indeed, although improvements in both infrastructure and human capital have been slower, they are equally important for a healthy and functioning e-government system.

E-governance as an enabler of sustainable development

The issue now is how e-government initiatives can help MENA countries to achieve better results in their governance and therefore their development policy goals (EGOV4SD)?

EGOV4SD has been defined as the ‘use of ICT to support public services, public administration, and the interaction between government and the public, while making possible public participation in government decision-making, promoting social equity and socio-economic development, and protecting natural resources for future generations’ (Estevez and Janowski, 2013).

Policy-makers have two options: apply this strategy with or without implementation of good governance.

Figure 3: E-government, good governance and sustainable development nexus

Source: developed by the researcher.

The huge public investment in ICTs, in the absence of a good governance framework that embodies accountable institutions, enlarges the voice of the elite, which in turn can result in policy capture and greater state control. This situation can hinder the business climate by raising natural monopolies and therefore creating more concentrated markets.

In the absence of institutional reform, technology will fail to deliver the expected benefits in the region. E-government reforms face the risk of failure to be adequately embedded in public sector reform. As a result, progress on tacking social and environmental divides may be limited. E-government will exert an adverse effect on various aspects of sustainable development instead of being a catalyst for progress.

The digital governance framework in MENA countries still faces institutional difficulties despite the great achievements accomplished to date. Digital transformation also faces complex challenges from economic issues, social and political matters, to technology innovation and its diffusion patterns. These challenges remain heavily dependent on the development stage of each organisation and each country.

A conclusion that may emerge here is the inadequate impact of e-government on sustainable development in MENA countries (Dhaoui, 2020). Digital government efforts in the MENA countries are still perceived as technical support activities and not as a core strategic component for development corpus. As result, the impact of e-government initiatives on sustainable development will be limited in the region.

According to many studies and reports, and although ICTs have spread rapidly in much of MENA countries, digital dividends – that is, the broader development benefits from using digital technologies – have lagged behind. In many countries, the full potential of digital technologies is not being used. In many cases, e-government projects have enlarged opportunities and get better service delivery. But their aggregate impact has fallen short and is unevenly distributed. This proves the deficits in the adoption of new technologies in the MENA region vis-à-vis the major factors for success (Göll and Zwiers, 2018).

Adequate governance for e-government projects is severely lacking in most of the MENA countries. The region IS still unable to complement technology investments with appropriate economic reforms that reap digital dividends in the form of faster growth, better public services and adequate environmental management. These challenges are preventing the digital revolution from fulfilling its transformative potential in the region.

Access to ICTs and greater digital adoption is critical, but not sufficient. Thus, digital technologies are no shortcut to sustainable development; they can be an enabler by raising the necessary reforms. The digital economy also requires what the WDR (2016) calls ‘strong analog components’ which consisting of regulations that create vibrant businesses and let firms leverage digital technologies to compete and innovate, skills that allow workers to adapt to the demands of the new economy, and institutions that are accountable and that uses the internet to empower citizens.

Overcoming these challenges will require special awareness, commitment and a particular focus on ambitious and action-oriented strategies that contribute to bypassing e-government constraints and enhancing good governance, which in turn improves sustainable development and more inclusive societies.

Figure 4: Digital governance components

Source: developed by the researcher.

The role of governments is not only to act as facilitators and leaders; but also as enablers and regulators. Given the limited resources of governments, the involvement of stakeholders through transparent cooperation is crucial. Governments are consistently interacting with diverse interest groups across society such as citizens (G2C), employees (G2E), businesses (G2B) and various state agencies (G2G), cohesively.

Figure 5: The various interactions in E-government

Source: Alhassan, 2020. E-governance for sustainable development in Ghana: Issues and prospects.

Roadmap for successful e-government initiatives

In order to achieve economic, social and environmental sustainability for MENA countries, it is crucial to establish good governance by forming an institutional environment capable to enabling the government with more effective and efficient tools for more successful development plans. But the region suffers from a lack of adequate training and knowledge about the technology, access to it, and knowledge of how to best apply it.

Policies on the use of digital technologies need to be adequately embedded in public sector reform. MENA countries should promote competitive business environments, enhance accountability, and upgrade education and skills development systems to prepare people for the jobs of the future. The race is between skills and technology, while the outcome will settle on whether the dividends from ICTs are realised and the benefits widely shared.

Bringing digital technology and governance practices together at the forefront of sustainable development strategies and providing new and innovative technological options leading to improve governance strategies may contribute to achieving sustainable development in all dimensions.

A particular emphasis on building a digitally inclusive society is needed. The increase in access to digital technologies should bring more choice and greater convenience in the region. This can be done through inclusion, efficiency and innovation that are capable to provide opportunities that were previously out of reach to the poor and disadvantaged.

The full benefits of the ICT revolution will not be realised unless MENA countries continue to improve their business climate, invest in education and health, and promote good governance through strong institutions.

Figure 6: Pre-requisites for maximising digital dividends

Source: developed by the researcher.

The challenge is to start adequate reforms to maximise digital dividends and to prepare for any disruptions. The digital economy is changing rapidly. Not undertaking the necessary reforms in terms of digital complements such as regulation, skills and institutions will raise the opportunity cost. Any failure to reform will lead to a situation of falling farther behind those who do reform. Strengthening the interaction between technology and its complements is more urgent than ever before.

If data are new gold, governance can safeguard society

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China Daily Global in an article titled ‘If data are new gold, governance can safeguard society’, perhaps domestically, but says it all about what to expect in the future relationship of China with say countries of the MENA region.

If data are new gold, governance can safeguard society

By Liu Xiaochun | China Daily Global | Updated: 2021-01-18

The Central Economic Work Conference held in December outlined certain key tasks in eight major aspects for this year. These include strengthening efforts in antitrust and preventing the disorderly expansion of capital.

It was clearly pointed out in the meeting statement that the collection, usage and management of data shall be improved.

With robust growth of the “new infrastructure” sector, particularly the application of 5G and the internet of things, digital technology will find applications in all walks of society and will bring significant change to people’s way of living.

While appreciating the positive effect that digital society may bring, it is important to fully acknowledge and evaluate the risks that interconnectivity of data may bring and pay attention to data governance.

As digital technology is highly penetrative and spreads widely, the risk of digital technology can be widely disruptive and can go beyond personal privacy. It thus requires precautionary regulatory measures to manage or pre-empt such risks.

There are key issues and risks in data connectivity, and it is important to strike a proper balance between breaking the information silo and data security.

On the one hand, it is important to clarify which part of the society will guide the connectivity of data, be it the government, technology firms or other institutions. For example, the building of smart cities will require data collection from a great number of sectors and departments. It is crucial to make clear who will be responsible for collecting and managing them.

On the other hand, how data can be categorized and managed is another emerging issue. In governing smart cities, new data of all kinds emerge every second. The idea of smart city construction, building industrial internet and digital China cannot be realized without data from all departments and organizations going online.

Yet, with all these key data openly accessible online, inadequate or improper management of these data may pose a possible threat to public security, the police, or even to social and national security.

Both governance and the internet of things across all industries should take the management of public data into account. At the same time, the arithmetic model, a key technology in artificial intelligence, may amplify potential risks in information spreading with no targeted audiences.

There is also the risk of giant internet and technology companies adopting a winner-takes-all approach in data collection. Conventional monopoly usually means taking monopoly of one particular type of products or at most, a certain industry. The new winner-takes-all approach would mean exclusive owning of all data on one particular platform by a certain enterprise.

Online platforms in fields such as e-commerce, digital payments, and delivery services may even gain access to huge amount of social data in the name of innovation or breaking up information silo. Such data may be related to personal, business or even government information.

Should such platforms or online behemoths land in major trouble, or face some unforeseen risks, massive systemic disruptions could unsettle or destabilize society. And with the growth of 5G, the number of such businesses is expected to grow.

A number of steps will likely be taken to strengthen data governance. Control of data risks should be raised as part of State governance efforts. Any arbitrary collection of personal information and data should be prohibited.

The issue of data categorization needs to be resolved through legislative efforts in this field. A number of suggestions have been made in legislation regarding personal information protection, which is very necessary.

Categorization should be made for data under digital economy.

First, special attention should be given to managing data regarding public security, finance and people’s livelihood, and how they can be made accessible on internet platforms and how such data can be used.

Second, the responsibility of data management should be specified, and ownership and usage rights to data clarified.

Third, legal liability in data use and transaction must be made clear.

Fourth, as data management is a new and emerging sector yet closely related to national security, social stability and a steady running of economic activities, a special regulatory department or mechanism should be set up with powers of oversight.

At the same time, a category-specific, more proper oversight on artificial intelligence is also needed, particularly a more targeted regulatory model for algorithms developed by various businesses.

An overhaul of personal data already collected once all the aforementioned systems are in place would be in order.

Mechanism for the oversight and management of super-giant data platforms should be set up. On the one hand, objective views are needed about the monopolies taken by super-giant digital platforms.

These platforms also bear public service functions, differentiating them from industrial or commercial monopolies. Concentration of platforms may also help add on commercial competitiveness and social efficiency.

Take third-party payments as an example. To ensure unimpeded payments, various market participants tend to gather on one payment platform. If communications across different telecom companies cannot be realized, only one telecom platform will eventually survive.

Such logic also applies to third-party transactions, which explains why even though the regulators concerned issued a number of licenses, only a few survived. And there are reasons behind why only those few did manage to survive.

First, the survivors are those that are supported by the banks’ unified payment services. Second, the companies specialized in integrated payment services has become a solution for third-party payment platforms banning one another.

Super-giant platforms will likely continue to increase as digital society grows. Concentration of multiple services in a single platform may make business sense for market share-minded companies. But it is debatable if this is the right path to digital transformation of society.

So, proper regulatory measures and oversights are needed in helping such platforms to grow with society in a responsible manner. This is why, oversight mechanisms are needed, as platform enterprises can’t achieve this on their own through self-regulation.

Meanwhile, all data collected by platform businesses are related to society’s various publics and therefore should not be treated as commercial assets.

The article is a translation of a comment from the Bund Summit by Liu Xiaochun, the deputy dean of the Shanghai Finance Institute.

Smart cities, e-governance help urban resilience

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Posted on January 15, 2021 by Manila Standard is about how Smart cities, e-governance help urban resilience and how this latter is visualised as from the Philippines.

Smart Cities are fast becoming one of the world’s most critical industries as more countries invest in technologies to improve the delivery of government service. 

Smart cities, e-governance help urban resilience By 2025, smart city development worldwide is estimated to create business opportunities worth $2.46 trillion.

In its simplest essence, a smart city is all about providing people a better quality of life by using different types of electronic methods and sensors to collect data. The insights gained from that data are utilized to manage assets, resources, and even services efficiently, helping governments to improve their operations across the city. It also enables e-governance or the integration of Information and Communication Technology (ICT) in all the processes to enhance the government’s ability to address the needs of the public. 

By 2025, smart city development worldwide is estimated to create business opportunities worth $2.46 trillion, as revealed by a report released by tech research firm Frost and Sullivan. This trend is driven by the uncertainties of the post-pandemic work, which will compel cities to focus more on developing collaborative, data-driven infrastructure to provide healthcare and public security, as well as resilience to natural disasters.  

Laying the Groundwork 

In the Philippines, the national government has been pushing the adoption of smart city technologies. For instance, the Department of Information and Communications Technology (DICT), being the country’s primary agency promoting the adoption of eGovernment Services (ICT-ES), has developed the E-Government Masterplan (EGMP) 2022.  

This plan outlines DICT’s intent of developing the country’s e-government systems through the digital transformation of services, such as public health, education, and other programs that cut across the whole of government. By doing so, DICT aims to create a networked and collaborative environment for improved public service delivery. 

Additionally, as the ongoing pandemic accelerates innovation, some local governments have laid their plans for their smart city initiatives, especially on e-governance. Baguio City, for instance, has recently announced its investments to transform into e-government using Information and Communication Technologies (ICTs) and other web-based telecommunication technologies, such as crowd density monitoring and real-time weather prediction, to improve the delivery of public service. 

Aside from Baguio, the New Clark City in Pampanga, Davao, Cebu, and Manila have also previously laid the groundwork to make their areas smarter through the adoption of e-governance technologies.  

The need for the adoption 

For Vertiv, a global provider of critical digital infrastructure and continuity solutions, the digital transformation and e-governance initiatives of all the cities in the country, just like the other smart cities across the globe, provide an opportunity to make the entire Philippines more resilient challenges like the current public health crisis or natural calamities.  

Last year, the country was identified as one of the most vulnerable to climate change by the Global Peace Index of the Institute of Economics and Peace (IEP) due to its high exposure to natural hazards, such as typhoons, landslides, floods, and droughts, as well as its heavy reliance to its climate-sensitive natural resources. 

The Philippine Atmospheric Geophysical and Astronomical Services Administration (PAG-ASA) also noted that more tropical cyclones are entering the Philippine Area of Responsibility (PAR) than anywhere else in the world. Recently, the Philippines experienced five typhoons in a row—Quinta, Rolly, Siony, Tonyo, and Ulysses—which all made landfall in the country within at least a month. All these typhoons left trails of devastation, which include physical injuries, casualties, and damages to agriculture and other properties.  

“Following this devastation, preparedness for typhoons and other calamities has never been more important, for instance, in getting necessary data where they can draw insights to efficiently conduct pre-evacuation of residents in flood-prone and vulnerable areas. And as IT becomes integral, government agencies must have a ready infrastructure in place to ensure that services go on unhampered and citizens have access to services they need,” said Jason Lim, country manager of Vertiv Philippines. 

To help local governments in tackling these IT infrastructure challenges, Vertiv brings together cutting-edge E-Governance Solutions to ensure uninterrupted operations, optimal performance, and scalability of data centers, communication networks, and other critical IT facilities needed in creating smarter and more resilient cities.  

To learn more about how Vertiv supports the continuity of today’s vital business and government applications, visit Vertiv.com.