Youth and Social Exclusion in the Information Society

By: Azeem Sajjad
Project Manager - ICT R&D Fund, Ministry of IT & Telecom

In today’s world the concepts of social interaction are redefining with development of new ideas and technologies. Young people are the future work force and earliest adopters of ICTs as well as having a powerful force for change. Youth is in fact the recipient of the policies so their voice should be properly propagated to people involved in the design and evaluation of youth related programs, strategies or policies. Youth every where are faced with the challenges of attempting to broaden their horizons and become global citizens, yet their infrastructure in not accommodating their desire and need. This is necessary to value the input of juvenile and communities in creating and implementing plans for tailored change in an atmosphere of consensus. There must be some framework, building upon existing good practices to identify where changes are required and helping young people to identify strengths and weaknesses in service provisions. The ICT vision and strategy should also focus on young people and not only just technology. For this to happen, it is important to develop both the ICT vision and strategy with the involvement of youth. The information age has modified the working, learning and social conditions for young people. Barriers once evident through time and space are now blurred and new networks of interaction have been came into account. More often it is the younger generations who feel more comfortable using ICTs to further expand their knowledge and information. The new wave of Information Society has provided young people with the tools to explore world otherwise unknown to them.

Social Exclusion occurs when some groups or individuals of society are left vulnerable and are unable to achieve their privileges among other citizens. ICTs make remote and underdeveloped areas of the world globally accessible. Information Society allow for a specialized education and possible employment for those who are under privileged groups. The influence of information age on education, culture, business, government, law, any many more issues is not a trend that is going unnoticed. In developing countries the knowledge and digital chasm exist not only between ethnic communities, but also between rural and urban areas, men and women, the educated and illiterate, rich and poor, high and low income groups, young and old, able bodied and handicapped. It is important to take measures to assist disadvantaged groups in order to get rid of socio-economic inequities. Education, age, gender, poverty, and politics are some of the factors that can lead or decrease social exclusion. In fact, this is caused by imbalance of power and resources and to mitigate it there needs organization against its causes such as corruption, political oppression, ignorance and racism. Information society have powerful platform for organizing against social exclusion and having potential for defending the collective social interest, reducing poverty, promoting social justice and to prevent or reverse the negative impacts of globalization processes on socio-economic development. People all over the globe are beginning to realize that in order to effectively participate in the global marketplace; they need access to the global communications network. Global information society is evolving at faster speed and there is a need to encourage all stakeholders to do their part to connect young people and to create a truly open, inclusive and development oriented information society.

The new ferociously competitive knowledge-based society offers great possibilities for reducing social exclusion, both by creating the economic conditions for greater prosperity and by opening up new ways of participating in society. The emergence of new information and communication technologies constitutes an exceptional opportunity, provided that the risk of creating an ever-widening gap between those who are Information rich and who are Information poor. Knowledge and Information has been more vital factors of our society while emergence of Information Society. Emergence of ICTs in daily life will change our economic, social and culture lives. No doubt ICTs can be used to break-up monopolies of knowledge, by creating new methodologies and connecting with new communities, in fact neo-communities. The vital thing in this regard is to control the reach, in-fact to spread the spectrum of reach to different vulnerable groups. ICTs can provide key resources while accessing news, entertainment, jobs hunting, distance learning or e-learning, virtual teamwork, telework and in different government services like telecenters etc. In developing countries the factor of affordability, lack of local content, lack of technical training, lack of relevant tools, lack of knowledge, rural poverty, lack of regulatory and legal framework are the range of factors involved. Economic growth and social cohesion are mutually reinforcing. It is a precondition for better economic performance that we create a society with greater social cohesion and less exclusion. This technological revolution has made some waves, and even has the largest international body, the United Nations studying and analyzing its impact. ICT’s have led to an Information Society in which the possibilities are endless, but not necessarily without complications or consequences.

Youth in rural areas are mostly neglected in the ICT policy reform process in many countries including Pakistan. Rural areas are considered less viable areas for becoming a part of information society. There are approximately 3 billion people who don’t have access to any form of connectivity, while talking about rural population in Asia. The majority of rural Asians today do not have access to basic telephony (let alone the Internet). Moreover, South Asia, home to 50% of the world’s poor, has more people who do not have access to the Internet or telephony than the rest of the world combined. According to World Bank’s report on the issue of poverty, rural development and economic growth, Nonetheless, Pakistan has made important strides in the last several years to promote rural economic growth and poverty reduction. There is still need to empower the poor and protecting the most vulnerable through social mobilization, safety nets and facilitating access to productive assets for income generating activities.

Some forms of exclusion are systematic exclusions that need to be overcome. In many areas girls and women are excluded from access to education, access to Internet like modern means of communication. This sort of exclusion sub consciously controls the behaviors of women for the opportunities keep them from preparing proactively for coming era. Government can play a role in this vein while adopting ICT policy and using media to create awareness of their rights and future opportunities. Traditional media for communication like radio can also be used along converging media for communication like Internet etc to empower disadvantaged communities like women, who are outside the labor force. There is a need to design effective strategies for paradigm shifts in many dimensions of life while empowering the marginalized communities, which is very necessary to prevent social exclusion. Women outside the labor force and rural agricultural women should have technological skills and access to their respective stock of information, health and education information on continuous basis. The application of ICT to existing community will enhance their social capital base utilizing the various opportunities offered by the information society.

Youth with physical disability is also an important group, as being lesser in strata they are usually neglected by policy makers. There is a need to design strategies and mechanism to meet the special needs of youth with disability. Due to physical constraints like blindness or inability to type, there are many people unable to use ICTs effectively. Such children and young people can be taught with the help of different software and adaptive technologies to provide necessary accessibility. It should be made available to those who are handicapped by some physical or sensory disability. It is also considerable issue that such applications, being developed for disable people are costly and not in easy access in markets. Efforts are required to extend the benefits of ICT to marginalized communities like visually impaired youth. Strategies to empower disabled groups need to be more specialized and should include vocational and other skills training. ICTs centers for the disabled run by the disabled themselves would be ideal for this purpose.

Internet has grown from a research network but now used for email, information, voice over internet protocol etc. Opportunities for debate, discussion and support have been the important usage of Internet. But lack of local content is to redress, because cultural content sustains and explains communities, individuals and groups, as they do not have access to the means to make them heard. There are about 6800 living languages across the world, but Internet content is available mostly in English, being the most prominent. Basic computer literacy is also necessary as young users are needed to be able to negotiate different software platforms. This will guarantee that everyone has the resources necessary to live in accordance with human dignity; so to empower by giving ability to tell about one’s world view is a big opportunity and help them open up new possibilities for participation, collaboration, partnerships and decision-making process.

In many areas different cultural and political group are discriminated against restricting the access to education, employment, property and political power. Such exclusion let them in an entrenched cycle of poverty and joblessness. In many cases people are kept away from accessing information and knowledge, or granted limited resources for some political or economic gains, to keep them from accessing their rights and from organizing. Characterized by increased access to computers and other electronic devices, and rapid growth in mobile technology, ICTs show the potential to be truly transformed in addressing development challenges in this highly diverse region. Although Pakistan is in its infancy stages towards adapting ICTs and is eager to participate in the burgeoning knowledge society, having substantial technological bases, strong and proven institutions, and well-developed human resources.

Like many governments, Government of Pakistan has also made substantial efforts to spread the spectrum of reach, access and use of ICTs. Privatization and the opening of markets have been the prime focus for attracting investment in infrastructure to build networks. Debate on ICT policies, open content and Free and Open Source Software policies and practices are ways forward for open Information Society. Human resource development is the backbone of knowledge based economy. Pakistan is a developing country with a population of approximately 150 million and ranks at as low as 144th position on the Human Development Index. During the last five years, ICTs have been one of the major focus areas of development for the Government of Pakistan. Huge investment has been made in ICT infrastructure and education in the country. Pakistan has improved its telecom structure and further improvements are on their way. Ministry of IT has been conscious of the potential role of Information Society in the country, due to which present Government is enthusiastically engaged in expanding ICT infrastructure in country. National ICT R&D Fund of the country is milestone to improve the human resource capacity building through developing intellectual human resource, the main goal of this fund is for socially or economically deprived youth so that they might be able to entertain the same opportunities and options which others can and the main goal is to access. Universal Service Fund has been established to facilitate building the telecom infrastructure in remote areas and would enhance telephone density in the country. It will also promote much needed investment. LDI licenses will have the rights to acquire, share or lease infrastructure. They will also pay to LLO access promotion contribution. USF will be used to provide connectivity to unserved and under served areas. Govt. is aiming to strengthen the process of socio-economic development and empowerment of the disadvantaged section of the society at the grassroots level through transfer of knowledge without ethnic political religious or any other biases.

Source: http://www.tigweb.org/youth-media/panorama/article.html?ContentID=13417

National ICT R&D Fund - Policy Framework

National ICT R&D Fund
Policy Framework




Ministry of Information Technology
IT & Telecom Division
Government of Pakistan




June 10, 2006


Prepared By:
NU-Consulting (FAST)
FAST House, AK Brohi Road
H-11/4, Islamabad
( 92-51-111-128-128
Fax: 92-51-4100619
http://www.nu.edu.pk/

In collaboration with
MIMOS Berhad
Technology Park, Malaysia57000-Kuala Lumpur, Malaysia. ( 603-8996-5000 Fax: 603-8996-4658 http://www.mimos.my/
Table of Contents
CHAPTER ONE.. 4
R&D FUND POLICY VISION & OBJECTIVES.. 4
1.1 The Vision.. 4
1.2 Broad Policy Objectives. 4
CHAPTER TWO... 5
POLICY BACKGROUND... 5
2.1 Historical Perspective. 5
2.2 International Best Practices. 5
2.3 Inferences drawn from comparison of Historical R&D Efforts with International Best Practices. 8
2.3.1 Lack of Monitoring Systems. 9
2.3.2 Highly Centralized Organizational Setups. 9
2.3.3 Absence of an Updating Mechanism for Research Objectives. 9
2.3.4 The Need to Install Effective Evaluation Mechanism.. 10
2.3.5 Creating an Environment that Stresses on Accountability. 10
2.3.6 Inability of Local Research to Close the “Innovation Chasm”. 10
2.4 Conclusion. 10
CHAPTER THREE.. 11
POLICY THRUST & BUILDING BLOCKS.. 11
3.1 Policy Thrust. 11
3.1.1 Globalization Forces. 11
3.2 Building Blocks of the Policy. 11
Building Block 1: Enabling Government directives comprising the supportive policies. 11
Building Block 2: Creation of a Legal System that supports a globally connected knowledge based economy and secures intellectual property rights. 11
Building Block 3: A well trained and efficient young manpower. 11
Building Block 4: Efficient and cost effective infrastructure. 11
3.3 Policy Challenges. 11
CHAPTER FOUR.. 13
POLICY ENVIRONMENT.. 13
4.1 The Innovation Value Chain.. 13
4.2 Integrated Thematic Approach.. 14
4.3 Interactive Approach.. 14
4.3.1 Provision of Infrastructure. 14
4.3.2 Establish a vertical and horizontal communication grid. 15
4.3.3 Establish an Integrated Development Framework. 15
4.3.4 Use ICT to develop Private Sector, and healthy triangular partnership between Government, Private Sector, and Civil Society. 15
4.3.5 Create Gender Oriented ICT Policy. 15
CHAPTER FIVE.. 16
STRATEGIC FOCUS OF THE POLICY.. 16
5.1 Strategic Direction.. 16
5.2 The interaction of industry driven R&D and the ICT industry eco systems (fig.2) 17
CHAPTER SIX.. 18
ROADMAP FOR IMPLEMENTATION OF POLICY PRIORITIES.. 18
6.1 The Objective. 18
6.2 Roll Out Plan for Exercising the Provision of the Policy. 18
6.2.1 Gantt chart for Roll out Plan. 19
6.3 Objectives and Strategies to be pursued within Key Areas. 22
6.3.1 Human Resource Capacity Building. 22
6.3.2 National Productivity Enhancement 24
6.3.3 ICT Product Development 25
6.3.4 ICT Market Development 26
6.3.5 Multi-Sectoral Support Program.. 28
CHAPTER SEVEN... 30
THEMES PROPOSED FOR IMMEDIATE FUNDING... 30
7.1 Create awareness amongst potential stakeholders. 31
7.2 Research to Identify Areas of Comparative Advantage for Pakistan.. 31
7.3 Integrated GIS Based National information platform.. 31
7.4 Research, development and operational support for web-enabled services. 31
7.5 ICT support for textile industry. 31
7.6 Provision of physical infrastructure (information technology parks) to facilitate collocation of ICT industry and academic institutions. 32
7.7 Focused Human Resource Development. 32
7.7.1 Support industrial training activities to decrease the cost of Telecom infrastructure deployment 32
7.7.2 Implant industrial training activities in academic institutions. 32
7.7.3 Evolve industrial training centers implanted in academic institutions to centers of excellence. 32
7.7.4 Provide needs based scholarships to students for ICT education. 32
7.7.5 Foreign graduate degree programs offered in Pakistan. 32
CHAPTER EIGHT.. 33
PROCESSES TO ACHIEVE POLICY OBJECTIVES.. 33
CHAPTER NINE.. 34
CONCLUSION... 34











CHAPTER ONE
R&D FUND POLICY VISION & OBJECTIVES


1.1 The Vision
To help transform Pakistan’s economy into a knowledge based economy by promoting efficient, sustainable and effective ICT initiatives through synergic development of industrial and academic resources.

Developing countries are recognizing the need to rapidly develop their knowledge base through massive investments in human resource development. Also, the need to invest in Research and Development efforts to create new products and services; as a way of gaining competitive advantage in an increasingly competitive global economic environment has been given a priority by most nations as part of their efforts to develop their information economy and society. It is also being stressed in the policies of world-wide research activities that research should be commercially driven through its linkages with the industry. Collaborative efforts between academia, research institutions and industry are being emphasized to ensure that local economy can reap the monetary benefits of investment in research.

The knowledge and information economy has emerged as a new source for the creation of quality jobs, wealth generation and redistribution, rapid economic development and prosperity as well as a means for facilitating competitiveness. With the emerging information age, ICTs are seen by a number of countries as critical for achieving progress in economic and social development. These technologies are offering developing countries like Pakistan a window of opportunity to leap-frog the key stages of industrialization and transform their agriculture dominated economies into service-sector driven, high value-added information and knowledge economies that can successfully compete in the international market.

1.2 Broad Policy Objectives
To realize the key aspirations of R&D Fund Policy Vision, the following goals shall be pursued:
· Provide an enabling environment that facilitates deployment, exploitation and utilization of ICT for enhanced national productivity

· Enhance the national ICT related human resource development capacity manifolds by facilitating industrial demand focused human resource capacity building and R&D capabilities in the country and promoting ICT related educational programs and activities

· Help develop a knowledge based ICT industry for delivery of value-added ICT products and services

· Facilitate the development of comparative advantage in the ICT industry

· Make Pakistan an attractive destination for service oriented and research and development related outsourced jobs

· Enhance use of ICT in nationally important segments of economy like agriculture

· Promote indigenous development in Telecom Sector that would support ICT

· Contribute towards the growth of other sectors of economy through deployment of superior ICT products and services

· Cultivate Industry-Academia Partnership

· Provide support to national information and communication infrastructure through indigenous development of ICT products and services

· Spread the ICT activities on a true National Level

· Help develop standards, practices, guidelines and models for the sustainable promotion and growth of ICT

· Use ICT as a tool for poverty alleviation and upward mobility for economically challenged groups of citizens

· Facilitate research and development in those sections of ICT that enhance quality of life for citizens.

CHAPTER TWO
POLICY BACKGROUND

2.1 Historical Perspective

Despite the fact that scores of research activities have been initiated by government agencies, the research and development carried through them has not borne the desired results. After the creation of Pakistan, the initial efforts for starting indigenous research lacked a future perspective. They were planned only to meet the momentary needs. The result is that many of them do not have any effective functioning today. They have been inflexible to change and late in adapting new technologies, mainly because continuous evaluation and improvement has not been a part of their mandate.

2.2 International Best Practices

The important role that industrial and scientific research as well as Research and Development can play in developing a nation’s capacity and capabilities to develop advanced products and services has been acknowledged. For most countries, investments in R&D have been identified as a precondition for a sustained socio-economic development.

In both the developed and developing nations, the driving force behind the development of high-tech industries and services has been huge investments in R&D efforts. In fact, various studies have established a link between economic development and the level of investment in R&D as well as basic and applied scientific and industrial research. For example, evidence drawn from a number of countries, has established strong link between the number of scientists and engineers involved in R&D(per million persons) and the high tech exports (in millions of dollars) of countries.
Keeping these international trends in view, the R&D Fund Policy has been built upon experiences of major research and development activities of advanced economies. The following key elements are derived from the study of International best practices:
Thematic Strategic Research Programs
The thematic approach aims to foster collaborations and greater linkages within the research community and between institutions. It also aims to achieve prioritization of strategic areas for funding. The Thematic Strategic Research Program supports proposals that satisfy one or more of the following objectives:
Creation of high impact
Research that leads to significant benefit to the economy over the medium to long term.

Development of enabling capabilities
Research that leads to the creation of enabling technology platform(s) and technologies that will benefit one or more industry clusters in terms of breadth in the diversity of applications and depth in the value chain.

Support for national priorities
Research that solves specific problems which may compromise nation's stability or impede her economic or social progress.

e. Project Categories


i. Product Technology Development Projects

This category concentrates on research and development of technologies for specific high-tech products that may have a substantial share in the world market. The objective of this category is to promote applied research and technical development based on national and international co-operation creating new, up-to-date, valuable, marketable products, procedures and services as a result.
Such projects will be financed under these categories that contribute towards making the nation a Premier Infocomm Hub. Emphasis will be laid on creation of a conducive pro-business and pro-consumer environment. Formation of the world’s most advanced information and telecommunications networks, next Generation Computers, Sophisticated Service Robots are some examples of preferred investment areas.

ii. Fundamental Technology Development Projects

This category concerns core technologies that are absolutely necessary to advance the economy, society, and human life. This category supports proposals that satisfy one or more of the following objectives:
§ Maximize the ability of citizens to utilize ICT to actively participate in the information society;
§ Strengthen global competitiveness of the economy by promoting informatization in all industries;
§ Realize a smart government structure with high transparency and productivity through informatization efforts;
§ Facilitate continued economic growth by promoting the IT industry & advancing the information infrastructure; and
§ Become a leader in the global information society by playing a major role in int’l cooperation.



iii. Support to the establishment of Co-operative Research Centers (CRCs)

The support is aimed at the establishment of research centers and to support their operation, in which close relations could be developed between higher education institutions, other non-profit research facilities and members of the corporate and business innovation sector, and in which the education, research & development and knowledge and technology transfer can be integrated for strategic purposes.


iv. Projects in application of Information and Communication Technologies

The objective of this category is development and test of marketable, new information and communication procedures, tools and services; establishment of large, information infrastructure with a large band width, based on experimental and modern technology, in the computer network of higher education and research institutions; in addition, promotion of the establishment and dissemination of new digital information systems and services based on image technology, as well as other technologies and skills related to those.
v. Activation for innovation
This is meant to encourage companies to improve their capabilities to develop and apply new technologies. Activities are targeted at new technology based firms and SMEs in particular, as well as new businesses and international cooperation. Large companies are encouraged to participate in long term research projects, which address major technological challenges and involve significant networking with research institutes or SMEs. Activation also promotes regional development.
vi. Technology programs
Technology programs are launched in areas vital to the future of ICT industry. The programs strengthen the national knowledge base, promote the renewal of businesses and industry, competitiveness, research, and enhance cooperation between companies, research organizations and the public sector. Programs emphasize the versatile development and utilization of international and regional technological cooperation.
vii. Selective project funding
This is targeted at projects which produce new knowledge, bear high technological and commercial risks and in which the impact of Tekes’ funding is substantial. The selected technology focus areas are technologies and competences that will continue to develop and will be invested in to create new application potential. Development in these areas will enable new technology leaps. The focus areas chosen are selected strategic development areas within ICT.
Funding is allocated to projects which are assessed to generate the greatest long term benefits to the national economy and society, either directly or indirectly, in relation to the public investments made. Both SMEs and large companies are eligible for receiving funding, however, large companies must propose projects in cooperation with universities or SMEs. Also, the projects proposed by large companies are expected to be more challenging than those proposed by SMEs to receive the same amount of funding.
viii. Development of the innovation environment
Innovation services are developed and provided in cooperation with other financiers and expert organizations. The funding organization contributes to the development of an internationally, nationally and regionally networked innovation environment. The innovation environment is also developed through activities within selective project funding, technology programs and activation for innovation.

2.3 Inferences drawn from comparison of Historical R&D Efforts with International Best Practices

Vast diversity can be observed in the objectives and achievements of R&D projects of the government. Research has been done in many areas and a lot of that research produced result oriented outcomes. A positive sign has been the continuous growth and emergence of such organizations to carry out research in industrial and agricultural regime. Though success and failure is a relative term and we must understand the limitations faced by many such organizations, yet it has been the fact that the aim and objectives could not be met with full potential. This R&D fund in more than ways would be a continuation of the previous efforts in the ICT regime. Most of those efforts yield some productive results but never materialized their full potential. The shortcomings include:

2.3.1 Lack of Monitoring Systems

Most R&D initiatives in Pakistan have defined and very definite monitoring mechanisms yet at most instances it could not be enforced properly. For facilitating the linking of goals and achievements, R&D funds should adopt a technique used by many organizations today, i.e. Management by Objectives. The achievements made by staff members should be praised and recognized regularly to increase their motivations. The jobs of the researchers must not be restricted to mere following of standard operating procedures; instead they should be involved in the broader goals of their activities.

2.3.2 Highly Centralized Organizational Setups

Many research bodies in Pakistan have been functioning according to the centralized rules of management. There has been excessive focus on following the chain of command and most of the power and authority are retained at the top of the hierarchy. This causes unnecessary delays in large research organizations, since top level managers do not have the time to make all the major decisions. Decentralization means delegation of power and authority to lower levels in the hierarchy of an organization. It leads to faster decision making at the lower levels, since most decisions do not have to be referred to the top managers. The executives of the research funds will then have more time to focus on broader goals. Also, decentralization enriches the jobs of lower-level employees by offering the challenge associated with making significant decisions that affect their work. Hence decentralization can be used as a capacity building tool for the employees of research organizations. Finally, decentralization often leads to the establishment of relatively independent units, such as divisions, whose output is easier to measure as compared to that of the entire organization.

2.3.3 Absence of an Updating Mechanism for Research Objectives

With rapidly changing market demands, research activities of the institutes and centers should be regularly reviewed to assess the appropriateness of the goals and to change them or add new ones as necessary. The purpose of the goal-setting and planning processes in MBO is essentially to coordinate efforts towards important organizational goals. Given the rapid pace of technological advancement in the present era, revisions in research objectives are necessary to accommodate major changes in circumstances.

The Research Funds in technologically advanced economies provide some direction to bidders through defining focus areas. However, the focus is not too narrowly drawn to leave room for the researcher’s creativity. It may not be possible for the fund to tap on some of the most current or relevant themes on its own and it is only prudent to allow inflow of innovative ideas from various stakeholders. Public workshops may prove to be a useful exercise in gathering input of the stakeholders for reviewing focus areas for research within a sector. Another important step could be complete separation of the operational and policy mechanism.

2.3.4 The Need to Install Effective Evaluation Mechanism

The performance results and accountability of all R&D programs must be carefully reviewed and evaluated by expert groups in the relevant field. The criterion for evaluation of research programs are validity of program contents, efficiency of program management and effectiveness of program results.

2.3.5 Creating an Environment that Stresses on Accountability

The results provided by the evaluation committee should be used by policy makers in anticipating prospective areas to invest in and to shape a future R&D policy. Furthermore, grants should be redirected from the funds that fail to achieve their objectives. This will create an environment of accountability for R&D to citizens of the country.


2.3.6 Inability of Local Research to Close the “Innovation Chasm”

While evaluating solicited proposals, additional merit should be given to programs that collaborate with a greater variety of stakeholders, i.e. from industry, academia and research institutions.


2.4 Conclusion
R&D must be made a mainstream activity of the government. Priority areas should be defined keeping in view the latest developments in science and technology in the world and R&D budget allocated to different sectors accordingly. The research bodies should function as individual entities operating according to modern management techniques. There should be increased decentralization in research institutes. Performance based evaluation mechanisms need to be installed in each project to increase their efficiency.


CHAPTER THREE
POLICY THRUST & BUILDING BLOCKS

3.1 Policy Thrust

With the world becoming a true global village, the concept of benchmarking and relative measurement has become more complex than ever. It must have always been imprudent to decide on policy issues in isolation but in toady’s world, the relative yardsticks have become more important than ever. The formulation of this policy is in the backdrop of strong forces of globalization that at the same time shape the threats as well as opportunities present in our environment.

3.1.1 Globalization Forces
Following four forces caused by globalization have shaped the policy:

Migration of millions of service oriented jobs from the 1st world to the 3rd world
Level playing field created by ubiquitous availability of all sorts of information through out the globe

Removal of protection given to industry by political entities leading to intense competition.

Increasing role and use of knowledge to enhance productivity.
3.2 Building Blocks of the Policy

The policy will be founded on pillars that would strengthen its claim to be a change agent for the future. These are as follows:

Building Block 1: Enabling Government directives comprising the supportive policies
Building Block 2: Creation of a Legal System that supports a globally connected knowledge based economy and secures intellectual property rights
Building Block 3: A well trained and efficient young manpower
Building Block 4: Efficient and cost effective infrastructure
3.3 Policy Challenges

The policy design facilitates the processes to cope with key challenges faced by the ICT industry in Pakistan in particular and the economy of Pakistan in general. A careful evaluation of the economic forces reveals the following challenges.

· The effects of globalization exposing the local industry inefficiencies and underperformance

· Weak scientific research and development base coupled with the historic failure of most of the R&D organizations

· ICT education that is not aligned with national industrial needs and shortage of practically trained professional human resource support for the industry

· Lack of effective liaison between academia and industry resulting in absence of a strong link between academic research and economic productivity

· Absence of a cohesive and synergic approach characterized by optimal private-public sector partnership and a common vision for immediate term and long term goals

· The rising trends of unemployment despite the positive industrial growth and stability

· The pace with which technology in today’s world is changing and causing constant adjustments in the production processes and economic value of products

· The challenge of turning the youth of the country into a dynamic workforce for future

· The provision of a conducive environment for gender equality and participation of womenfolk in the overall development of the economy

· Increase in the reach of industrial growth to the less developed and marginalized communities and geographical regions

· The effect of rising population causing the decline in per capita income and negative pressure on the indicators for economic performance

· The low job creation capacity of the economy with slow change in focus from conventional and traditional sectors to high tech sectors

· Huge debt burden of the economy hindering the effective allocation of resources to the productive sectors of the economy



CHAPTER FOUR
POLICY ENVIRONMENT

4.1 The Innovation Value Chain


The Innovation Value Chain is a cyclic process. The commercialization of newly developed technologies will result in increasing the industrial revenue which will in turn add to the National R&D Fund in the form of 0.5% - 1% contribution of annual gross revenue by all players of the ICT sector. This process will stimulate the industry to participate in local R&D.
• Legal & Regulatory infrastructure ensures that marketplace rewards innovation & investments
Figure 1: The Innovation Value Chain
Research
Marketing &
Manufacturing
Development
ROI on
Commercialization
Commercialization
Development of new Technologies
Basic Research at
Academic Institutions
Education & Training
• Intellectual Property
Protection

• Funding
• International
Science-based
Standards
• Need legal &
Regulatory Issues
• Supply Chain
Trials
Research
Factories

The Innovation Value Chain ensures that the research carried out via funding by the R&D Fund is well connected to the industry. Additional merit will be given to those research programs that collaborate with a greater variety of stakeholders, i.e. from industry, academia and research institutions. This provides the only way to break the ‘innovation chasm’ that currently exists in Pakistan. The R&D Fund will ensure that the local research proves fruitful for the development of the local industry and that all basic research eventually transforms into applied research for developing new technologies in the local ICT sector.

Human Resource Capability building is one of the building blocks of this policy. The Innovation Value Chain remains incomplete without taking into account the development relevant IT skills in the country for using the newly developed technologies and for improving upon them. Pakistan like many developing countries suffers from a shortfall in critical ICT skills and expertise required for the development and support of ICT applications and systems in both public and private sectors. Without a sustained effort to train workers in key ICT skills, the limited availability of skilled ICT personnel may place an upper limit on development and deployment of ICT within the economy and society. Hence R&D Fund will continue to promote, both directly and indirectly, the updating of skills of the human resource of the country.

4.2 Integrated Thematic Approach

The key to achieving the policy objectives is the Integrated-Thematic approach. It is extremely desirable that the ICT fund give tangible benefits in as short a period of time as possible, therefore, it would make sense to choose a few key nationally important themes in which to invest funds, so that significant progress can be made in solving problems pertaining to these themes.

While selecting a theme for funding, it is necessary to identify all participants of the entire supply chain. This policy stresses on focusing on a complete value chain instead of isolated projects, to ensure economic gains as a result of research and development. In the context of this policy, a theme is a process through which a product or service is developed and marketed. A Theme encompasses activities of all possible stakeholders that participate in creation and marketing of an end-product.

The “integrated” part of the Integrated-Thematic approach implies that a concerted effort is made to find solutions to all problems related to the supply chain of a theme, even if the problems do not fall in the ICT domain. For non ICT related problems relevant funding organizations are identified and a coordinated effort is made to solve these problems.

4.3 Interactive Approach
In countries like Pakistan with a predominant rural setting, the information infrastructure establishment is quite complex and must be complemented by developing the technological installations that in a pure R&D perspective must be driven through an indigenous development program. The overall strategy must be complemented by a development action plan to guide an optimal outcome for the masses.

This policy advocates a comprehensive national framework for ICT policy formulation and implementation. The main objective is to create and use ICT to bridge the digital divide in the country in its entirety. To this effect, the policy suggests the following components to be translated into policy implementation programs.

4.3.1 Provision of Infrastructure

A region specific infrastructural development approach has to be designed. This approach should include projects aimed at providing infrastructural support in terms of backbone ICT facility to various segments of the society and establishment of a national broadband satellite infrastructure.

4.3.2 Establish a vertical and horizontal communication grid

It is necessary to connect major cities, regional cities, urban centers, and rural towns through vertical and horizontal communication grids to deliver effective and efficient services and provide citizens with wider public access through national network systems. Congested Cities should be transformed into Cyber Cities and connected to the vertical and horizontal network centers. This provides a framework for technological transformation, which will increase national consciousness originating from the grass roots.
4.3.3 Establish an Integrated Development Framework

This policy advocates the establishment of an environment that is conducive for the creation and diffusion of information technology. Regulatory policies must be dictated to facilitate the transfer of technology. The legal, institutional and logistical framework has to be created, well organized and coordinated in order to guarantee the growth and development of information infrastructure in the country.

4.3.4 Use ICT to develop Private Sector, and healthy triangular partnership between Government, Private Sector, and Civil Society
The policy advocates that innovative public-private-civil society partnership is necessary to install regional broadband satellite infrastructure, enhance physical network construction and service provision. The policy also encourages promotion of private sector development by creating a conducive legal framework for private sector investments in the industry. The objective is to strengthen the private sector in an active way to ensure that it is capable of acting effectively as an engine for growth and poverty reduction. The development of private sector is an important strategic priority of the government for increasing the economy’s job creation capability.

4.3.5 Create Gender Oriented ICT Policy

This policy must rest on the understanding that technology must be adapted to fit the needs of both rural and urban poor women in order to have an impact on their economic status and improve their living conditions. Rural agricultural women and urban informal sector women should have technological skills and access to their respective stock of information (agricultural and market information), and health and educational information on a constant basis. This information access must be built by taking into account their daily community interaction network. Application of ICT to the existing community interaction network will enhance their social capital base utilizing the various opportunities offered by the information society.
CHAPTER FIVE
STRATEGIC FOCUS OF THE POLICY


5.1 Strategic Direction

The strategic direction will set the roadmap for the future. The strategic focus must be multidimensional and each dimension must be addressed by milestones and action plans. The following strategic direction statements must lead the way:

Establishing an environment where the national and international private sector, based on market forces, can exert its full potential and make Pakistan achieve the comparative advantage in its core strength areas in near future

Invest in human resource development on a sustained basis so that Pakistan’s economy remains competitive as technology progresses globally at an astounding pace.

Making ICT products, services and international quality education accessible to the general public and increase employment through this means

Increasing the use of ICT products and services in nationally important sector of the economy

Creating and establishing knowledge-based industries and using ICT to increase global competitiveness by focusing on industrial processes, product development and innovation

Enhancing ICT’s role as key enabler and thus unleashing the potential of individuals, organizations and businesses to become more productive and efficient, and to create new ideas that enrich lives and produce new value thus improving national productivity and individual quality of life through development of information rich economy

Providing a structured path to the orderly development of the country into an information and knowledge-based society within next 10 years

Turning Pakistan into an e-enabled society where empowered citizens have access to technologies that will provide quality education, efficient government service, greater source of livelihood, and a better way of life

Taking the dividends of ICT to next tier of cities and villages and to marginalized communities

Use ICT to provide good governance to citizens of Pakistan

· Creating a vibrant, safe, efficient, livable society with the active use of ICT products and services

5.2 The interaction of industry driven R&D and the ICT industry eco systems (fig.2)

Figure 2: The interaction of industry driven R&D and the ICT industry eco systems
Industry-Market
Driven R&D
Focused and Strategic
HR Talent
Development
Programs
Strengthen
National R&D Programs
In ICT
Orchestrate National
Innovation System
for ICT
Enhance
ICT Industry
(ICT as industry)
Enhance National
Competitiveness
(Attract Foreign Investment)
Stimulate Value-Added
ICT programs/services
(ICT as enabler)

The research and development activities will to a large extent be aligned with industry and market demand. The human resource development funding will also be aligned with the industrial needs. As this alignment in R&D and HRD funding is achieved we will by policy design strengthen ICT production and the innovation eco system in the country. This innovation eco system will in turn strengthen the development and consumption of value added ICT products and services. These ICT services will positively impact the national productivity and we will have two eco systems positively interact with each other.

CHAPTER SIX
ROADMAP FOR IMPLEMENTATION OF POLICY PRIORITIES


6.1 The Objective

The National R&D Fund Policy sets out Pakistan’s road map in terms of the vision, objectives and policy priorities for developing Pakistan’s information society and economy. The ultimate objective is to: accelerate Pakistan’s socio-economic development process towards the realization of the vision to transform Pakistan into a high income economy and society that is predominantly information-rich and knowledge-based within the next two decades or less.

This Policy will have an operational life of 5 years. It provides a roll out plan to exercise the provisions of the policy extending over a period of five years, which shall be implemented within the life of the Policy. This roadmap addresses the specific aspects of the broad policy issues and commitments of the policy statement.

As a working and living document, it is anticipated that, necessary periodic revisions will be made in relation to its key elements to meet changing developmental objectives and priorities as well as changes in the global economy and advances in the technological environment.

All the subsequent sections in this chapter have a recommendatory status and they are under no circumstances binding on the R&D Fund. Only the Board has the discretion to implement these roll out plans after having it reviewed and modified if needed.

6.2 Roll Out Plan for Exercising the Provision of the Policy

To facilitate the process of transforming Pakistan into a predominantly information rich and knowledge based society and economy, the Policy defines the five priority areas. The policy implementation in these priority areas will be a phased process, i.e. the implementation will gradually phase from the basic priorities to advanced themes. In each successive year, funding will decline in the former category and will be replaced by the latter.


Funding Priorities
Implementation Category
1.
HR Capacity Building
Immediate Term or Basic Category
2.
National Productivity Enhancement
Short term
3.
ICT Product Development
Medium Term
4.
ICT Market Development
Long Term or Advanced Category
5.
Multi-Sectoral Support Program
Long Term or Advanced Category

In the initial phase of its functioning, the Fund will concentrate the major portion of its resources in Human Resource Development. This investment will be expected to give returns to the industry in the immediate or short term time frame. Second Priority will be given to National Productivity Enhancement for identification of comparative advantage and capitalizing on this advantage through development of indigenous industry. Simultaneously, investment will also be made in Product and Market Development and Multi-Sectoral Development via ICT proliferation, however, initially a very small portion of the funds will be dedicated to these areas.

6.2.1 Gantt chart for Roll out Plan

The Gantt Chart for Roadmap for the Implementation of Priority Areas shows the time frames within which objectives for various key areas will be pursued and strategies implemented. The fund will start functioning from mid-fall 2006. (The year dimensions mentioned in the roadmap correspond to the financial years). In the first three years of its functioning, the Fund’s extensive focus will be on Human Resource Capacity Building and National Productivity Enhancement. In the last two years of its operation the focus will shift towards ICT Product Development, ICT Market Development and Multi-Sectoral Support Program.

After three years of functioning, this policy statement may be reexamined by the Board for required adjustments in its priority areas. A revision in the policy objectives would then take place to accommodate these changes. However, after five years of its functioning, the Board must reexamine the priority areas. As shown in the Gantt Chart- Road Map for Implementation of Priority Areas, the policy aims at a five year roll out plan and there is a mandatory revision of policy that must take place in the last quarter of the fifth year of functioning. However, this policy also envisages the possible areas for investment after the policy revision. The Board may continue to fund these areas (represented by shaded portions in Gantt Chart) as per its discretion after the policy revision.

The recommendations are made till year 2010. From that point onwards the themes must be redefined.
Chart 2: Years of Implementation vs. Magnitude of Funding for Priority Areas

6.3 Objectives and Strategies to be pursued within Key Areas

In the following pages is presented the rationale behind each funding priority and the time dimensions in which it will be pursued by the National R&D Fund. Projects on all the priority areas will be pursued simultaneously; however, more objectives of immediate and short term categories will be pursued in the first three years of functioning of the Fund. In the subsequent two years, a greater number of objectives of the medium term and advanced term will be pursued.

6.3.1 Human Resource Capacity Building

Policy Context

The Government acknowledges that the young population of Pakistan can be transformed into an asset by adding value to human resources and providing the environment for utilizing those resources for socio-economic development process. The development of people to support the process of moving Pakistan into an information society and economy is therefore top priority of the Government and the critical role that ICTs can play in this area is fully recognized and shall be promoted by Government.

As part of the objective aimed at producing the right types of skills and human resources required for developing and driving Pakistan’s information and knowledge-based economy and society, the Government will put in place and facilitate the implementation of a comprehensive human resource development program targeting critical skill areas across key sectors of the economy for supporting the development of Pakistan’s information society and economy.

Policy Objectives and Strategies

The objectives and respective strategies to be pursued through the Fund and the time dimension in which they should be achieved are as follows:

Objective A: Promotion of education to all segments of the society

The Fund will invest in
§ Modernization of Pakistan’s educational system using ICTs to improve and expand access to educational, training and research resources and facilities;
§ Improve the quality of education and training and make the educational system responsive to the needs and requirements of the economy and society with specific reference to the development of the information knowledge-based economy and society
§ Promote ICT skills in all schools and tertiary institutions.
§ Direct special efforts at promoting the use of these technologies in rural, urban and underserved communities.
§ Run a comprehensive awareness campaign to promote R&D vision and culture amongst potential participants.
Objective B: To create and develop, through ICT, formal and informal learning networks for communities, with the goal of cultivating an ethos of life-long, continuous learning for individual, organizational and social advancement

The Fund will invest in:
§ Facilitation and promotion for implementing community based ICT initiatives as well as national ICT applications with human resource development components; including multipurpose community tele-center projects; tele-education and School-Net projects; electronic government and governance initiatives.
§ Programs and initiatives aimed at professional skill development in work places in public and private sector institutions, through in-service training, distance education and training and life-long learning
§ Initiatives targeted at the disadvantaged sections of the Pakistani population including the visually, mentally and physically impaired and disadvantaged.
§ Commit to building capacity of rural population and to encourage more participation of women and children in ICT initiatives and industry by addressing gender based inequalities

Objective C: Develop an IT-trained workforce

The Fund will promote
§ Initiatives targeted at re-training and re-skilling of workers within the Civil and Public Service as well as workers in the private sector to provide them with requisite professional skills and expertise to enable them to fully and effectively participate in the development of the information and knowledge economy.
§ Investment will be made initiatives to improve and upgrade computer skills of workforce in both public and private sector though in-service training and skill update programs.
§ Life long learning within the working population to promote on the job training ad continuing education.
§ Training programs in ICTs in key industries for their workforce.
§ Training of women in key skills required by information and knowledge economies.



Objective D: Creation of industry driven HRD

The Fund will invest in
§ Creating linkages between educational and training systems and industry thereby supporting the development of the requisite pool of highly skilled human resources, knowledge workers and expertise capable of facilitating the process of developing a technology-based knowledge driven industrial sector.
§ Development of a comprehensive human resource base in critical skill areas required for a vibrant, value-added ICT services industry
§ Encouraging internships and work-study programs

6.3.2 National Productivity Enhancement

Policy Context

The Pakistani ICT sector is underdeveloped. Majority of the companies in this sector are involved in distributive activities like retailing and the distribution of computer products and services, mainly computers and their peripherals and standard application software and packages. It is acknowledged that the development of Pakistan’s information and knowledge economy will require a vibrant ICT industry that focuses on export-oriented ICT products development.

Policy Objectives and Strategies

The objectives and respective strategies to be pursued through the Fund in the field of National Productivity Enhancement are:


Objective A: Telecom and Internet Infrastructure Development

The Fund will invest in
Promoting and facilitating initiatives targeted at the development of a reliable, fast adaptive and robust national ICT backbone and infrastructure
Ensuring that as far as possible development is not constrained by inadequate transport, communications and energy infrastructures and networks
Modernize and expand Pakistan’s information and communications infrastructure and services to improve universal access and quality of service
Promote the development and deployment of broadband and multi-platform communications infrastructure to facilitate public access to information and services



Objective B: Indigenous Development of ICT Products and Services

The Fund will invest in development of local content and applications in the area of information and communication technologies to meet the needs and requirements of the nation. Development of a broad engineering base will be financed, especially in the maintenance, repair and fabrication of machinery and equipment.
The Fund will invest in development of world class software products targeting both the domestic and export market.

Objective C: Development of Advanced Information and telecommunication Networks

The Fund will invest in formation of the world’s most advanced information and telecommunications networks. Funds will be allocated to
Building ultra-high speed internet network providing constant Internet access the country;
Creation of Broadband Convergence Network that will increase data transmission rate manifold and fuel the nation’s growth;
Building high-capacity and high-speed optical transmission backbone networks ;
Upgrading Internet speed in homes; introducing new technologies including cable modem and satellite data communication will be funded.
The R&D Fund Policy envisions and integrated network linking wireless LAN, mobile telephony, broadband Internet that will bring Pakistanis closer to “anywhere, anytime” communications and computing. The policy also targets rural connectivity and fiber wiring of commercial centers, business cluster and key industrial areas in Pakistan.

6.3.3 ICT Product Development

Policy Context

There is very little activity in Pakistan in the area of the production and development of ICT products. The majority of the ICT related companies and service providers trade in products and services with very little locally developed content. Companies retailing computer hardware import them as complete systems which they retail to public. Most of the application software (mostly standard off-the-shelf products) on the Pakistani market is also not developed locally.

Policy Objectives and Strategies

The objectives and respective strategies to be pursued through the Fund in the field of ICT product development are:

Objective A: Ensure ICT Infrastructure Support

The Fund will invest in
Development of a secure broadband information and communications infrastructure to support the development and provision of world-class off-shore ICT service in the areas like software development, financial services and other ICT services targeted at the export market
Ensuring that as far as possible, development is not constrained by inadequate transport, communications and energy infrastructures and networks


Objective B: Promote ICT Innovations

The Fund will invest in
Promoting the development of a world-class software development industry targeting both the domestic and export market
Development of local industry for the manufacture, assembling, repair and maintenance of computer and communication equipments and products
Development of innovative local content and applications in the area of information and communications technologies to meet the needs and requirements of the nation

Objective C: Identifying and developing architectures and standards for the local ICT Market

Objective D: Re-engineering the local industry

The Fund will invest in
Stimulating innovation within the ICT industry and sector as a basis for promoting growth within the industry, provision of quality of services and the development of advanced and reliable communications infrastructure
Initiatives targeted at organizational system renewal aimed at improvement on organizational structures, procedures and processes through the deployment and exploitation of ICTs
Modernizing the banking system and promote the use of electronic banking instruments in business transactions and de-emphasize cash transactions

Objective E: Facilitating initiatives in security and privacy requirements including service provision, transaction processing and systems.

The Fund will invest in
§ Ensuring that the development, deployment and exploitation of ICTs within the economy and society and related legal and regulatory provisions will balance and protect community and individual interests, including privacy and data protection issues.
Creating and enacting the necessary cyber-laws including those relating to: intellectual property and copy rights; data protection and security, freedom of access to information; computer and cyber crime and other cyber-laws, necessary for facilitating their country’s participation in the information age and economy.
Support the development of the necessary legal and regulatory framework that is consistent with international and national laws, regulations, technical standards, and obligations

6.3.4 ICT Market Development

Policy Context

The Government acknowledges that ICTs can serve as the engine for developing the services sector of the economy into a competitive regional business services hub and ICT hub to provide world class ICT services, in targeted off-shore, banking and financial services to business communities in the region and beyond. The Government is committed to putting in place the necessary policy measures and provides to facilitate this process.

Policy Objectives and Strategies

The objectives and respective strategies to be pursued through the Fund in the field of ICT market development are:

Objective A: Digitization of the administration and application of IT in other public areas

Acknowledging the crucial role that ICTs can play in the service delivery of Government services; bringing government closer to the people, this policy makes a commitment to deploy and exploit ICTs to modernize the operations and activities of the Civil and Public Services to facilitate administrative cost reduction and the promotion of effectiveness and efficiency in the delivery of government services to the people of Pakistan. To achieve this objective, the Fund will invest in:
Facilitating the delivery of modernized public services in the area of provision of government information and social services through the deployment and the exploitation of information and communications technologies within the society and economy
Promote the exploitation of information and communication technologies within the civil and public services to make public services more efficient, productive and accessible to the public at large
Implementation of relevant e-government programs and projects at the local and rural community level as a part of village information and communications infrastructure development


Objective B: Provide government services to stakeholders online

The Fund will invest in
Developing and promoting standards, guidelines and procedures to facilitate the acquisition, installations and maintenance of ICT equipment and systems within Government Ministries and other Public Sector institutions and establishments
Developing an e-government interoperability framework to facilitate cross-departmental operations of ICT systems and services
Implementation of e-government initiatives including: government to government (G2G), government to business (G2B) and government to citizens (G2C) types of government initiatives
Promoting the deployment and the use of ICTs to facilitate universal access to public and government information and services to support the promotion of the principle and practice of good governance
Encouraging information sharing, transparency and accountability and facilitate the process that will lead to reduction in bureaucracy within and between organizations within the civil and public service

Objective C: Promotion of web-enabled services

The fund will invest in
Locally developing web-based marketing services and data base management services including Email Marketing Campaigns, rapid response email, web surveys and search engine optimization, which contribute to generating revenue, increase customer satisfaction, and creation of a closed-loop information system for the enterprise by using integrated services and technology.
Locally developing a range of web-enabled services including transactions processing services (order processing, claims processing and loan processing etc), financial processing services (including invoice processing, billing services etc) and HR payroll services (employee record management, payroll outsourcing etc.)


Objective D: Facilitation of E-Commerce

The fund will invest in
Encouraging and facilitating the use of open electronic marketplaces, secure e-business solutions, electronic signatures, electronic public procurement and electronic payment services to support the development of electronic commerce in the country
Modernizing the banking system and promote the use of electronic banking instruments in business transactions and de-emphasize cash transactions
Implementation of relevant e-government programs and projects at the local and rural community level as a part of village information and communications infrastructure development

6.3.5 Multi-Sectoral Support Program

Policy Context

This policy statement makes a commitment to establish a globally competitive, diversified and balanced economy that is driven by information, knowledge and skills ----an economy with a modern, efficient and competitive agricultural sector; an ICT-intensive biomedical research and pharmaceutical sector; and a vibrant ICT-driven, value added services sector.

Policy Objectives and Strategies

The objectives and respective strategies to be pursued through the Fund in the field of ICT market development are:

Objective A: Agriculture Sector Development via ICTs and Effective Use of ICTs in Agro-based industries in making them globally competitive

The Fund will invest in promoting the deployment and exploitation of ICTs to support the activities of the agriculture sector including; the production, processing, marketing and distribution of agriculture products.
Facilitating the commercialization of the key sub-sectors of the agricultural sector an industry to improve their competitiveness
Developing Geographical Information Systems (GIS) applications to monitor and support sustainable environment usage in areas like land and water management, yield assessment and livestock management
Encouraging market research through the use of ICTs to improve access to established foreign markets and to break into new markets for both traditional and non-traditional exports
Utilization of ICTs to link farmers and farmers’ groups and associations to resources ad services that they need to improve their livelihoods through agricultural productivity, profitability and food security
Deliverance of real time information and customized knowledge to improve farmers’ decision making ability to align farm outputs with market demands, and to improve productivity

Objective B: Effective Use of ICTs in biotechnological research, pharmaceutical and health sectors

The Fund will invest in
Improving research competence and promoting the application and transfer of new technologies such as biotechnology, to support improved pharmaceutical production
Networking all healthcare institutions to collate information, share data and communication online
Restructuring the health care system by providing a national databank to support on-line national healthcare information, administration and management at primary, regional and tertiary levels
Promoting the use of Wireless Connectivity in Healthcare: Using satellite technology in making high quality healthcare available to the under privileged that are separated by large distances from quality health care.

Objective C: Using ICT for International Transactions Processing

The fund will invest in development of transaction processing systems with the capabilities of efficient data capture, high accuracy levels and on schedule delivery. The services in the transaction-processing segment which will be supported by the Fund, include
§ Finance/ Accounting Services: These include Invoice processing Services, Finance Outsourcing Services, Accounts Receivables/ Payables Services and Billing Services
§ Transaction Processing: These include Credit / Debit card applications processing, Account openings / amendments and audit checks, Claims Processing, Loans processing and Cheque processing
§ HR Payroll Services: These include Payroll Outsourcing Services and Employee Record Management



CHAPTER SEVEN
THEMES PROPOSED FOR IMMEDIATE FUNDING


This policy has defined broad objectives within each priority area to be pursued over the 5 years of life of the policy (Chapter 6: Roadmap for Implementation) and the strategies to achieve these objectives. The specific areas that will be invested in a certain time frame will be decided by the R&D Fund Board. This process of selecting new themes will be repeated each year in which the funding priorities will be determined in the light of Policy Roadmap. The policy also defines “Themes for Immediate Funding” that will be considered by the Board while selecting themes in the initial phases of Fund’s functioning. These are as follows:

1. Create awareness amongst potential stakeholders
2. Research to identify areas of comparative advantage for Pakistan
3. Research, development and support of an integrated GIS based national information platform
4. Operational support for web-enabled services
5. ICT support for textile industry
6. Provision of physical infrastructure (information technology parks) to facilitate collaboration of ICT industry and academic institutions
7. Human Resource development
a. Support industrial training activities to decrease the cost of Telecom infrastructure deployment
b. Implant industrial training activities in academic institutions
c. Evolve industrial training centers implanted in academic institutions to centers of excellence.
d. Provide needs based scholarships to students for ICT education.
e. Foreign graduate degree programs offered in Pakistan

7.1 Create awareness amongst potential stakeholders
The success of the ICT R&D fund depends upon participation by a large segment of the potential stakeholders. This is a very large and diverse group of people. A concerted effort should be made to proactively reach out all these segments by holding industry and interest group specific seminars, workshops, advertisements etc. The effort must primarily be aimed at the most promising participants; the academic community. The effort must be made not only to give a general awareness but also training in making effective and potentially successful proposals.

7.2 Research to Identify Areas of Comparative Advantage for Pakistan
In today’s global competitive environment each political entity has to find its niche. There are certain geographic, demographic, geological, climatic and other strengths each country has. On top of these natural attributes each nation has its own prevalent political, social and human development state. We need to actively fund research on identifying the areas where Pakistan has an edge in global competition. Ideally the thematic integrated approach must operate in the space identified by this research effort.

7.3 Integrated GIS Based National information platform
It is proposed that an integrated GIS based information platform be created and operationally supported by the ICT fund. This platform will contain detailed GIS information for the whole country. The quality, quantity and accuracy of the information should be such that applications like Map quest can be created for Pakistan. This information will be freely available to all.

7.4 Research, development and operational support for web-enabled services
Due to rapidly decreasing cost and increasing quality of telecommunications and networking services, millions of highly paid service oriented jobs are migrating from the first world to the third world. At the low end are the typical data entry, call center operator jobs and the high end jobs include financial analysts, legal advisors, technical support personal etc. These jobs add significant benefits to the economy including increase in the demand for ICT services, financial support for HRD infrastructure, induction of state of the art domain knowledge to name a few.

7.5 ICT support for textile industry
Approximately 75% of exports from Pakistan are related to production of cotton and value added products from textile industry. A thorough study of ICT needs of the whole textile industry value chain should be performed. The study should evaluate the current usage of ICT in Pakistan in each of the segments. This usage level should be compared with the use of ICT in textile industry internationally. Opportunities for improving the productivity of textile industry by more effective use of ICT should be identified and project should be initiated to avail these opportunities. This effort should be complemented by ICT research and development in Pakistan to produce software and systems to be used by the textile industry.

7.6 Provision of physical infrastructure (information technology parks) to facilitate collocation of ICT industry and academic institutions

The ICT industry is experiencing a significant rise in outsourcing of research and development activities to the 3rd world. Pakistan should position its self to receive a significant share of this out sourced research and development activities. We need to provide information technology parks at a subsidized cost to help make Pakistan an attractive destination for these jobs. Our academic institutions are facing a significant shortage of faculty with industrial experience. Similarly our industry needs a large number of senior technical experts. We also need to enhance the industry academia cooperation. It would be very useful to establish these new information technology parks physically near our academic institutions so that critically short resources can be effectively shared between industry and academia. This collocation is likely to lead to a fusion of ideas generated by academia and industry.

7.7 Focused Human Resource Development

7.7.1 Support industrial training activities to decrease the cost of Telecom infrastructure deployment
7.7.2 Implant industrial training activities in academic institutions
7.7.3 Evolve industrial training centers implanted in academic institutions to centers of excellence.
7.7.4 Provide needs based scholarships to students for ICT education.
7.7.5 Foreign graduate degree programs offered in Pakistan
CHAPTER EIGHT
PROCESSES TO ACHIEVE POLICY OBJECTIVES

The policy document sets priorities for implementation from short to long term. However in the face of rapid technological changes, new technologies may emerge and old technologies become obsolete in a very short space of time. This whole spectrum of uncertainty about the future preferences in the ICT sector urges the need to have an ecosystem that could align the policy roadmap accordingly. The shift in priorities, change in direction, recognition of new technologies and obsolescence could only be catered through an interrelated chain of processes. This policy recognizes that chain to be as follows:

1. Process to determine themes/areas for the R&D initiatives that would be industry driven
• The proposed initiatives are thematic and non-thematic
• Within the thematic initiatives, we will have short term, medium term and long term initiatives
2. Process to solicit proposals for R&D projects
3. Process to evaluate submitted proposals
4. Processes to allocate relative funds to R&D projects
5. Process to monitor funded projects
6. Process to make results of R&D projects available to stake holders

The process system will form a continuous cycle and the core objective is to create an environment that would have a proactive check on the policy direction in the face of diffusion of changing technology and business practices.

CHAPTER NINE
CONCLUSION


This policy document makes an attempt to draft the priorities and processes of the National R&D Fund in such a way that this new endeavor improves upon the previous research experiences in Pakistan and also takes into account international best practices of the present era.

The policy regards following four steps as catalysts that would enable the policy to achieve above mentioned vision: Enabling Government directives comprising of the supportive policies; Creation of a Legal System or regulatory framework that supports a globally connected knowledge based economy; Creation of a well trained and efficient young manpower and efficient and cost effective infrastructure.

In order to attain its vision of making Pakistan a knowledge-based economy and society, this policy lays down five key areas for investment; these are: HR Capacity Building, National Productivity Enhancement, ICT Product Development, ICT Market Development and Multi-Sectoral Support. For each of these areas, broad objectives and strategies have been defined in the policy to be achieved in certain time frames.

The policy also describes the necessary processes to be enacted by the National R&D Fund during its functioning.