The meeting, held in Geneva, Switzerland, on 11 December 2000, commemorated the 40th anniversary of the International
Institute for Labour Studies. It brought together two panels of leading experts to discuss the implications of new
information and communications technologies (ICTs) on employment relationships in Europe and the developing world,
respectively. The academic discussion was enhanced by the contributions of practitioners presenting a trade union and an
employer perspective. The purpose was to exchange views on the labour and social policies that could best help meet the
new challenges faced by workers and employers.
Welcoming addresses
Mr. Padmanabha GOPINATH, Director of the Institute and Counsellor to the Director-General of the International Labour
Office (ILO), opened the meeting. He pointed out that, in times of rapid political change and economic transformation,
forty years were a respectable age for an institution and that the topic of the meeting showed how far the Institute had
travelled since its foundation in 1960.
Mr. Gopinath suggested that a review of the IILS' research history over the last 40 years would be revealing. It mirrored
the changes in the world, but it also showed the extent to which the Institute anticipated future ILO action. Institute
research paved the way, for example, from industrial relations and participation in the enterprise in the 1960s and early
1970s to discussions on the social implications of new industrial organization. Over a decade ago, the Institute began
work on globalization, its impact on labour markets and on society. It pioneered work on industrial districts, on the
delocalization of production and on global value chains; and it raised questions on the changing interface between
business and society and between labour and society.
The primary task of the Institute had been to identify the main trends and anticipate the social policies and labour
institutions which were demanded by the global transformations of the last 20 years: the restructuring of capitalism; the
integration of financial markets; the variable geometry of globalization; the decline of class; the rise of individualism; and
the social dynamics of the information society, which the meeting would discuss.
Mr. Gopinath went on by reminding the audience that the Institute had also played a role, in the recent past, in defining
the overall objective of the ILO, namely the promotion of decent work through the pursuit of the four strategic objectives
of rights, employment, social dialogue and social protection. In Mr. Gopinath's view, the meeting's topic of how one
could promote decent work in the digital age was symbolic of what the Institute had tried to do for nearly half a century,
to articulate the principles and values of the ILO in the light of the emerging reality of our time.
He was therefore particularly happy to welcome Mr. Juan Somavía, not only in his official capacities, but as "an architect
of the notion of decent work and as an affirmative voice for the freedom and responsibility which we all have to shape the
future in a world driven by technology and by financial markets."
Mr. Juan SOMAVIA, Director-General of the ILO and Chairman of the Board of the Institute, reminded that it was David
Morse who created the Institute in 1960: the ILO's first post-war Director-General, under whose stewardship the ILO was
awarded the Nobel Peace Prize. In a good part this was because the ILO was concerned with "breakthrough issues"; it was
dealing with the questions of the present and the future and was coming up with ideas, notions, solutions and the capacity
for tripartite action. The Institute was created to be a source of new ideas for the ILO and a space in the ILO to foster
informal dialogue between the ILO's tripartite constituents in a way not possible elsewhere in the Organization.
Mr. Somavía stated that the Institute permitted workers, employers and governments to come together with the academic
community and "thought-leaders" in society to explore new horizons in a shared spirit of free inquiry. For ILO
constituents and staff, the Institute was a place enriched by a diversity of perspectives and where the constraints of
negotiation would not impede the freedom of deliberation. In Mr. Somavía's view, the Institute was "about reaching out,
about understanding where the emerging issues are, about deepening knowledge, capturing what is in the air and what is
in the preoccupation of people; and transforming that into thought processes, research processes and eventually policy
proposals".
Mr. Somavía made it clear that such a facility was especially precious in times of innovation, change and unpredictability,
current times, as it would be able to undertake innovative research free from immediate programme demands. It could
prepare the ground for subsequent convergence of opinion in the ILO's bodies and stimulate and promote cross-sectoral
and interdisciplinary thinking within the Office. This would be crucial as he considered it an immense challenge to bring
together the wealth of knowledge and experience that exists within the ILO; and to avoid sectoral solutions to integrated
problems. Interdisciplinary and cross-sectoral work would highlight and reinforce ILO's capacity to be a knowledge-based institution. He believed that the Institute had a key role to play in helping to develop the ILO as a knowledge
organization and saw the Institute as a "potent agent for the ILO's outreach to tomorrow's knowledge economy and
information society".
Moreover, he stressed that the Institute had a special role in further developing the concept of decent work itself, so that
the relationships between its components and the cultural connections could be clearly identified and articulated; in
creating a framework for analysis for all parts of the Office; as well as in translating decent work into reality, now that the
ILO was moving form decent work as an organizing principle to develop it as an operational policy instrument.
Mr. Somavía underlined that the topic of the meeting - policies and institutions for the digital age - was particularly
appropriate to mark the anniversary of an institution whose primary responsibility was to explore new horizons. The
question of the digital divide was beginning to make its way to the top of the global agenda. The G8 would discuss this
subject in July 2001. There were several initiatives to foster e-commerce in developing countries. A world summit on the
information society would be held in Geneva in 2003. The ILO was fully engaged in this debate. The next European
Regional Conference, with the core theme "Globalizing Europe", would focus on decent work in the information
economy. The ILO's next World Employment Report, to be released in early 2001, would also be devoted to the subject.
The ILO aimed to cooperate within the international community to ensure international action to avoid the dangers of the
digital divide. There was a need to make certain that the creativity and innovation inherent in new technology would also
nourish human security and human societies.
Mr. Somavía concluded his remarks by saying that he looked forward to ideas and suggestions as to how, through the
Institute, one could move forward on this new frontier of knowledge; understand these new phenomena in society, which
would affect the ILO's mandate; and anticipate action. He thanked the participants for their presence at the meeting.
Panel 1: Changing Employment Relationships in Europe
Mr. Pascal PETIT, Director of Research at CNRS and CEPREMAP, France, was the first speaker of the panel discussion
on Changing Employment Relationships in Europe, which was chaired by Mr. Jean-Michel SERVAIS, Research
Coordinator, International Institute for Labour Studies.
Mr. Petit explained that the "new economy" had prompted three interdependent structural changes: the dissemination of
new Information and Communications Technologies (ICTs); a sophisticated and expanding grid of international
transactions due to internationalisation or globalization; and a rising level of formal and informal education. In his
opinion, these changes were unavoidable and their impact on European countries would be fairly similar.
The dissemination of a new technological system centred on ICTs was central to the new regime of growth. Its major
characteristic was its pervasiveness - i.e., its capacity to affect all kinds of operations and parts of machinery thanks to
both the ongoing miniaturisation of microprocessors and the possibility to interconnect and therefore monitor different
operations. A crucial dimension in the development of telecommunications was also the capacity of new equipment to be
interconnected (e.g. the use of mobile phones to connect to the Internet).
The level and quality of education was another important component of the contemporary structural transformation.
Education had become an important element of self-realization for men and women and, especially for the latter, a means
of emancipation. Current education and vocational training were obsolete. The years of schooling were not as
fundamental a factor as the quality of the education received. The value of education these days also was derived from its
synergy with the above technological changes. The personal qualities now required were reactivity, openness, and
capacity to innovate as well as to collaborate.
Mr. Petit identified new forms of internationalization - most evident in the liberalization of trade and investment flows -
as the third structural change. The number of countries, persons and firms involved, the complexity of the transactions,
and the networks and logistics required made of this an unprecedented phenomenon. The economic agents' new scope to
operate at the international level, often bypassing national jurisdiction, exerted pressure on regulation at the national level
and constrained the traditional power of governments in economic policy-making. However, in spite of the higher degree
of internationalization, it was still up to national governments to decide on international issues. No international body had
managed to acquire a similar degree of legitimacy so far.
In the "new economy", there were new forms of market competition marked by an unprecedented mass of information
and knowledge available for economic agents to treat, store and communicate. They were the consequence of a number of
institutional, regulatory and ideological changes that commenced in the 1980s to liberalize market mechanisms. A great
process of deregulation had been taking place, especially in intermediation activities such as banking, transport, and
communications.
The financial sector had become one of the heaviest users of ICTs. The preponderance of financial capital over industrial
capital translated in new modes of governance of the firm in which full priority was given to the interest of shareholders
over the interest of the other stakeholders of the firms, and chiefly over the workers' interests.
Information and knowledge helped to expand markets: buyers were more aware of product characteristics and their own
needs while producers were more aware of market niches and relative levels of competition. This would lead to more
differentiated markets with a larger number of products on offer as well as to greater competition in more specifically
defined markets. The user-producer relationship had been more or less directly intensified thanks to the development of
distribution and marketing services. A new, less predictable type of consumer was setting foot on the market. Consumer
groups from now on had to be ranked not only by income levels, but also by cultural preferences and personal tastes.
A process of incremental innovation was also taking off, according to Mr. Petit. More information and knowledge on
what the consumer wants pushed producers to adjust their behaviour to satisfy consumers, innovate, extend their
productions and reorganize their production line accordingly, including work organization, without needing the direct
stimulation of market expansion. A major question arising from this was whether or not the present wave of technological
innovations would lead to sufficient expansion of markets to boost economic growth in the long-term.
Moreover, increased information flows had changed the multidimensional structure of competitiveness. In general,
producers were concentrating more on their core competencies. Knowing what they can do best and what others can do,
producers had a tendency to resort to subcontracting parts of their work, once rules had been established to ensure the
desired quality. The expansion of normalisation and certification procedures was part of this process. Peripheral tasks
were more likely to be externalized leading to a greater development of business services. This would require more
complex business services with new expertise and a new division of labour.
Greater information flows together with the availability of a more educated labour force, a new technological system and
the fact that developed countries were more open to external competition, mostly from low wage countries were all
factors contributing to an increase in the demand for more qualified workers. Formal education, however, was not the
only criteria that employers used to hire staff: life experience, contacts and personality were also important. For example,
there was a greater emphasis nowadays on the individual's ability to react to changes in markets, technology or internal
governance than on the capability to follow a fixed procedure to carry out a given task. This would eventually lead to an
increase in the length of the transition period to access a standard job, in some countries, while it would increase the turn
over in entry jobs and, therefore, the number of precarious jobs, in other countries. A consequence of this more
competitive job market was a more dispersed wage distribution with a relative decrease in wages at the lower end jobs and
a sharp rise in high-ranking jobs.
For Mr. Petit, there were three main areas of concern related to productivity growth, dualism and national trajectories. To
start with, the dissemination of ICT equipment did not result in an increase in productivity. Two complementary lines of
arguments would explain this. First, ICT equipment represented only a small share of investment. Second, reorganization
of production and consumption required time to reach a mature stage and deliver all its potential.
The second question related to the rise in precarious or poor jobs despite the general push in favour of a more qualified
labour force. In countries with high unemployment and in countries with increasing numbers of poor jobs, the changes in
the labour market fuelled a rise in the share of poor households. The challenge presented by the two tier society where
poverty, lack of education, and lack of good jobs. This hampered the social integration of a third of society and strongly
limited the correlation between the dissemination of the "new economy" mechanisms and economic growth and welfare.
The third question had to do with national trajectories and "models of new economies". Mr. Petit remarked that the United
States was a "highly specific" case - unique in its capacity to sustain imbalances in trade, financial markets, incomes, and
social inequalities while a leader in major new technologies. Models would have to be found in a few small and medium
size OECD countries that had been experiencing a growth rate of output and employment above average throughout the
1990s, such as Ireland, The Netherlands, and Finland among others.
Mr. Petit concluded that the tendency of the "new economy" to fuel a certain dualism, at least in the first phase of
dissemination, combined with certain inertia to reduce this split afterwards, might confine it to slow growth. Thus, the
"new economy" could result in double failure: It could fail ethically since it could consolidate a severe social division. It
could also fail economically if it reduced the potential for growth by being unable to connect the two separate worlds.
Mr. Roger BLAINPAIN, Professor of Labour Law, Universities of Leuven (Belgium) and Tilburg (The Netherlands),
considered that ICTs were the most important factor fostering globalization. Technological development was affecting
societies in general and labour markets in particular. Many job schemes failed because decision makers did not realize
that the developed world had been catapulted out of the industrial society into what could be called the "information
society". This transition was as brutal and fundamental as the transition from the agricultural society to the industrial
society in the 19th century. Today the services sector accounted for more than 50 per cent of the economically active
population. In this context, a simultaneous tertiarization of agriculture and manufacturing and a partial industrialization of
services were taking place. The introduction of ICTs had prompted a shift in the source of economic value from the
material to the non-material. The new wealth had to do with the "invisible" - knowledge, inventions and intellectual
property. New technologies were replacing traditional raw materials. Although industry remained the motor of the
economy, it was de facto "service-driven".
Due to the tertiarization of the industry, enterprises were engaging in outsourcing, entrusting tasks they used to do
themselves to enterprises that would be able to carry them out better and cheaper. An increasing number of enterprises
concentrated on their core business. Small and medium size enterprises, legally independent but economically linked by
agreements, delivered services and/or sub-products to one or more co-ordinating centres where larger enterprises would
turn whenever they needed to outsource work.
In Mr. Blainpain's view, the consequences of these developments for the labour market were manifold, affecting the
nature of enterprises; the kind and number of jobs; labour laws; industrial relations systems; and human resource
management.
In order to be successful, enterprises would have to develop three core capabilities: First, the ability to inspire individual
creativity and initiative in its staff, built on fundamental faith in individuals; second, the ability to link entrepreneurial
activity and individual expertise by building an integrated process of organizational learning; and third, the ability to
continuously renew itself. "Networking" was the key word in the "new" enterprises.
The worker of the "new economy" would perform in one or more networks, as part of a team in time-framed projects.
Less hierarchical structures, where employees work more as equals on the basis of capability and the value they can add
to their teams, were becoming more common. Labour relations would be less collective, less uniform, freer, less
controllable and controlled. Collective arrangements would become mere frameworks or simply fade away. Enterprises
would be comprised of a small core of permanent staff and a larger number of peripheral workers who would deliver
specific services.
There were three emerging types of work: "routine production and services", "in-person services" and "creative inputs".
"Routine production and services" covered manual work and activities performed by middle or senior management
responsible for routine tasks of supervision and the application of specified rules, and certain computer activities such as
the processing of financial transactions, hospital invoices, and social operations. "In-person services" comprised routine
activities that involved direct contact with customers. "Creative inputs" related to the work carried out by certain
engineers, public relations experts, lawyers, managers, designers and planners, authors, artists, and journalists who
performed non-routine activities and through their capacity for abstract thought could make creative contributions to solve
problems more effectively. These contributions were generally effected via increasingly internationalized networks, on
the basis of non-hierarchical team-based work, in meetings through formal and informal channels, via the use of
telecommunications. For this specific type of work, young people needed to be trained and educated so that they would be
able to develop their capacity for abstract and systemic thought, experimentation, and communication skills through
languages and technologies.
Creative work was flourishing while routine workers were under threat because of automation and competition from low-wage countries. In-person service workers were also suffering from the consequences of automation and growing
competition from workers who had lost their routine jobs, or immigrant workers.
There was an increasing demand for creative workers and this resulted in a "battle for brains". For example, Western
Europe faced a potential shortage of 1.6 million workers in the information technology sector in the next four years. To
attract skilled workers, some countries, like the United States, were trying to attract foreign students to their universities
and research centres; others were relaxing their immigration policies.
According to Mr. Blainpain, the "hey-days" of the social partners were over. The changes he elaborated on had resulted in
more decentralized and atomised labour relations. The position of trade unions in developed countries was becoming
weaker. They had to bear the brunt of the technological revolution and its impact on the labour market. While workers in
the new activities were difficult to organize, members in the traditional sectors were fading away and with them
traditional trade union strength. In addition, trade unions were still fighting for stable jobs that were no longer there. The
unionisation rate had dropped by over 20 per cent in over 66 countries. Moreover, in 48 developing countries, the
unionisation rate had fallen or remained under 20 per cent of the formal labour force. The role of employers' associations
was losing much of its economic rationale as companies were fighting their own economic wars at the international level,
taking their own specific strengths and weaknesses into account.
Flexibility was a major trend in the current employment system. For workers this implied to face greater job instability
due to the nature of contracts; more inconvenient work organization and working hours, including night work, weekend
work and long shifts; as well as lesser pay. In Mr. Blainpain's mind, these major trends indicated the emergence of dual
societies. The European Union had more than 54 million poor and 3 million homeless. Only 7 per cent of the unemployed
in the EU had the chance to learn new skills, 50 per cent of workers over the age of 55 were no longer in the labour
market and 20 per cent of young people reaching the labour market had no recognized skills. In 1998, the ILO had
indicated that there were 66 million people between the age of 15 and 24 worldwide who were seeking employment and
could not find a job.
The ILO also observed that there was a growing informalization of the labour force and employment relations as well as
falling income levels, lower living standards, and less access to collective representation. Informalization was linked to
mainly three factors: rapid growth of the urban population and labour force; the impact of the economic stabilisation and
restructuring programmes introduced in the 1980s in African and Latin American countries that caused a contraction of
the public sector, retrenchment for many industrial workers and a fall in real wages; and, finally, the quest for increased
flexibility and deregulation required on account of the growing competitiveness in global markets that resulted in
enhanced capital intensity and reduced labour costs. The distinction between formal and informal employment became
increasingly blurred and more global corporations operated through both. In Europe, between 10 and 15 per cent of
workers were employed in the informal sector.
Mr. Blainpain concluded that the new world of work required a mental revolution, especially in the area of vocational
training. The world was entering a new social era in which there should be a "social roof" containing social rights and a
"social floor" containing minimum standards of protection. In between, there should be the free market. To achieve this,
more emphasis should be given to the 1998 ILO Declaration on Fundamental Principles and Rights at Work and the EU
should include a list of fundamental social rights in the Treaty of the European Community. New policy avenues to
explore were the establishment of corporate codes of conduct and social labelling; "one labour market"; one basic
category of workers, i.e. no difference between public and private; payment according to added value; the end of age
limits; vocational training vs. job security; and a free labour market. The question was how to radically reorganize the
labour market to best suit the needs of the information society and, at the same time, to see that enough wealth would be
created to be able to establish and guarantee an adequate system of social protection.
Mr. Ken MAYHEW, Director, ESRC Research Centre on Skills, Knowledge and Organizational Performance,
Universities of Oxford and Warwick, United Kingdom, challenged the idea that computers had led people to necessarily
improve their educational levels and skills in order to find a job. Another common idea that should be discarded was that
computers gave people better opportunities: There were still lots of unpleasant jobs that were now done with computers
rather than shovels.
Although the introduction of ICTs brought greater education requirements for workers, ICTs could sometimes even de-skill a job. For example, the complex computer systems at supermarkets that combine stock control, checkout and
accounting operations only required low skilled workers who could scan the products. The average shop assistant 25 years
ago was more skilled than his/her counterpart today.
Employers were now demanding higher qualifications. However, as compared to 1986 data, a smaller percentage of
university graduates believed in 1997 that their degree was necessary for their job. In Mr. Mayhew's opinion, most
countries and international agencies had fantastic policies for boosting the supply of skilled workers at various levels. But
there had to be a demand for these skilled workers; and the structure of the demand would have to change.
Where a company's product strategy was the manufacture of basic, low quality standardized products, made repeatedly
year after year following the same process, the demand for skills would be low. If a company offered higher quality
products or services, with characteristics that changed more frequently to customize the different segments of the markets
at any point in time, possibly their demand for skills, capability and adaptability of workers would be higher. In
consequence, skills and their use were a third order matter. The first priority should be to establish the product
specification. The second priority should be to consider the production process.
If in any given country too many producers were producing low quality products, then the demand for skills would be
relatively low. To boost the supply side might give opportunities to people who did not have them before, but it did not
solve the problem of the knowledge economy. The return from boosting the supply side would be limited, unless policy
makers looked directly at what producers were demanding. If they failed to do so, they would possibly encounter
unacceptable distributional consequences since low-spec production, or a non-knowledge economy, could be very
successful macro-economically but with a wide dispersion of earnings. If a narrower dispersion of earnings and, in
consequence, a wider distribution of opportunities, was desired, a knowledge economy would be needed; and this should
be approached from the demand side.
Mr. Mayhew ended his contribution by warning that educational policies should be aware of this. A more holistic and
realistic approach to thinking about the "new economy" was needed. The "new economy" was not about computers or a-typical employment. It was not even about education and training skills. It was about what one produced and how.
Panel 2: Information and Knowledge for Development
The second round of discussions, on Information and Knowledge for Development, was chaired by Mr. Duncan
CAMPBELL, Senior Economist, ILO. Ms. Heather E. HUDSON, Telecommunications Programme Director and
Professor of Telecommunications Policy and Management at the MacLaren School of Business Administration,
University of San Francisco, United States, was the first speaker of this panel. In her view, ICTs were tools that, if used
properly, could help to narrow the digital divide. Crucial to the success of this was how people utilized these tools in their
actual work as catalysts to development.
Ms. Hudson pronounced herself on the potential benefits of ICTs for a developing region, focusing on how these ICTs
would possibly complement the development process. The benefits of ICTs were accessible to a wide array of people, not
just the rich, and with the proper initiative and information, ICTs could positively affect the world's developing regions.
She highlighted four major benefits of telecommunications: (1) Efficiency was improved by the use of
telecommunications, as time and money were saved with a quick phone call. (2) In addition, improvements in
effectiveness could be seen coupled with improvements in the quality of services. (3) Telecommunications were a very
equitable tool in that they enabled the disadvantaged, including the poor, isolate rural people, and the disabled, to obtain
information that would otherwise be very difficult or impossible to access. (4) Finally, they rendered possible the access
to larger markets. This was beneficial for those supplying goods and services as well as for those on the demand side. It
had been demonstrated that the larger the networks, the greater the potential benefits to each member.
Despite the evidence of the benefits of telecommunications and other ICTs, the digital divide was increasing. Access to
ICTs in developing countries was still relatively low. This was due, in part, to the large percentage of people inhabiting
rural areas, where access to communication networks was limited; there was even a chance that these areas were devoid of
any communications infrastructure. However, with the capacities of new ICTs, it was becoming easier to incorporate
developing regions into the ICT network.
New technologies offered the possibility of leapfrogging over earlier generations of equipment to close the information
gap. Wireless terrestrial and satellite technologies were advantageous because it was not necessary to install a wireline
network. These were particularly effective in giving people who were lacking communication infrastructure access to the
benefits of technology in remote regions and in developing countries. For example, developing countries such as Bolivia,
Indonesia, and Sri Lanka were using wireless local loop systems to extend local telephone services to those in more rural
areas. In other countries, where sufficient wireline structure did not exist, cellular technology was being used as the
primary service. Recent innovations in the wireless technology had extended from telephony communications to Internet
as well. It was now possible to transmit web pages and other data to cellular phones. Satellite technologies were equally
effective in reaching remote areas. Some of the satellite technology could be used for interactive voice and data, as well as
for broadcast reception. Internet gateways could be accessed via some satellites, but as this was a relatively new
innovation, it was still quite expensive.
For existing telephony infrastructure, it had become possible to provide high-speed Internet access over the telephone
lines, rather than having to upgrade the existing networks. With the discovery of compression algorithms, digital voice
signals and motion video could be compressed and transmitted at lower costs. Eight or more conversations could be
carried on one voice channel; digital videos could be transmitted over as few as two telephone lines, offering the
possibility of low cost videoconferencing.
The services provided thanks to the new technology were quite innovative, with more and more people benefiting. For
example, in some countries, there were wireless payphones, allowing people to pay a modest price to communicate via
phone. As a great number of people were lacking fixed phones, this was indeed a positive initiative. Another was to have
virtual telephone services where small businesses rented voice mailboxes to check while using pay phones. With access to
the Internet, people were now capable of having access to e-mail, and this was even more cost effective and time efficient
than phone calls or regular mail. People could send and receive messages from public call centres equipped with
computers with Internet access. There was also Internet telephony that allowed phone calls to be made quite cheaply via
the Internet. With the technological innovations involving satellite technology and telephony, it had become very
inexpensive to make phone calls. Prepaid calling cards, using satellites, allowed people to make long distance phone calls
without having to sign up for a long distance operator.
Ms. Hudson stressed that ICTs could be significant contributors to socio-economic development, but investments in them
alone were not sufficient for development to occur: they complemented development; they did not create development.
Numerous studies had been undertaken to establish concretely the effects of ICTs on rural development. Results had been
recorded, but probably more importantly was the observation that without a minimum investment in infrastructure for
transport, education, health and social and cultural facilities, investments in ICTs would not enable rural areas to become
prosperous.
The availability of ICTs was necessary to contribute to socio-economic development, but there were other important
factors as well: context, content and capacity. Understanding the cultural, economic and political context and realizing
what obstacles might result from these was extremely important. Where women's status was lower than men's, perhaps
special ICT skill-building outreach programmes geared towards women should be offered. The Internet had great
potential for knowledge and information, but much of this came in the form of written words. For developing regions, the
Internet would be more useful only if the content became available in more languages and more content relevant to these
regions was incorporated. Additionally, the capacity to use the ICT equipment adequately was very important. Users
required training and knowledgeable resource people who could instruct them on how to properly use the tools. It was not
necessary for someone to be literate to get information from the Internet, if there was a capable person acting as his or her
intermediate to obtain the necessary information.
The prices of using these new technologies were rapidly decreasing, as technological advancements were reducing the
costs. However, the prices to users of these technologies and services in developing regions were still sometimes higher
than in other parts of the world, and simply beyond the means of large segments of the population. This was especially the
case in lower income developing countries.
In order to decrease the cost of the ICTs and make them affordable for those in the developing world, some elements
should be examined. The communities and their traffic patterns would need to be understood when designing the
networks. A design that allows capacity to be added as demand increases incrementally was something which should be
examined, in addition to one which is culturally sensitive, acknowledging the lifestyles, cultures and sources of income of
the communities. When designing the system, minimizing transportation, operations and maintenance costs would be
important, such as: using reliable equipment; having accessible equipment; training and employing local people instead of
having to pay costly foreign technicians; contracting with local entrepreneurs who will have a stake in the facilities, thus
giving incentives to protect the equipment; and, finally, eliminating coin collection by using prepaid stored-value cards.
Forecasting demand and understanding the possible trends was necessary for the revenues to increase. It was difficult to
estimate demand for telecommunications, especially for people who never had prior access, but there were several
approaches that had been formulated to compile these estimates. What was interesting to note was that rural use of
telecommunications was often higher than expected, despite a low per capita income. This could be attributed to the costly
alternatives to communication, usually involving lengthy travel. Thus, sometimes, models using traditional indicators
resulted in inaccurate estimations. In Ms. Hudson's opinion better indicators were: teledensity vs. TV density, indicating a
potential pent-up demand for telecommunications services if telephone service was available; and indicators of
communications entrepreneurship, such as video shops, cable TV systems and kiosks and copy shops.
An innovative pricing scheme to attract customers to use under-utilized networks was a tactic that aimed to increase
traffic volumes. For example, constructing discounts for off peak use provided more affordable personal communications;
therefore families were more inclined to subscribe to this. A discount plan for public services and the government had a
high social value, as this ensured that public emergency and social services would have access to reliable
telecommunications. Flat rate pricing and pricing based on communities of interest were both issues that should be
examined based on the community in question. For example, flat rate pricing was beneficial in that it eliminated the
distance penalty, benefiting rural and remote users, and pricing based on communities of interest was beneficial for those
within a community who made the majority of phone calls within a certain zone.
Several approaches had been adopted in various countries to achieve goals of providing universal access to
telecommunications services throughout the society, including to rural, remote and disadvantaged residents. These
included incentives through competition, and subsidies. Competition offered the most stimulation for innovation in
technologies, services and prices. Thus an environment that fostered competitive spirit was one in which innovation
would prosper.
ICTs had a potential contribution to development, and could facilitate many development activities. Reduced travel costs
and the presence of telecommunications fostered growth and efficiency of industries by providing access to wider
markets, including in agriculture: farmers would be able to receive better prices for their crops. In education, distance
learning was an alternative that provided a virtual forum for students to be taught by qualified instructors. In health care,
data collection was more efficiently handled through ICTs and there were new possibilities of consultation to give advice
to health workers or isolated patients. Tourism also benefited.
Ms. Hudson pointed to studies by the International Telecommunication Union and the World Bank, which had indicated
that telecommunications could contribute to economic growth of developing nations, including their rural areas. In
addition, numerous studies had demonstrated a correlation between telephone density and economic development, and
studies had been undertaken to examine which factor caused the other. Generally, researchers had found high benefit-to-cost ratios of telecommunications use in developing countries. Usage and benefits obviously depended on the economy
and migration patterns; additionally, research had shown that economic benefits of telecommunications were related to
distance and density.
However, investment in technology alone would not likely result in major social, economic or cultural benefits. ICTs were
a complement to the development process. Many ongoing issues would need to be addressed, including the need for
training and budgeting for equipment. The constraints to development were no longer technical but economic, legal or
political. Governments were slow to act in any country, oftentimes inhibiting people from getting access to information
technologies and services. An independent regulator to set the rules and to enforce them would create a more progressive
environment, enabling wider access to these ICTs. Protectionist policies were not practical or beneficial in the case of
these new technologies, because the industry was so fast-paced and rapidly changing. Additionally, banning services that
were not approved yet, was a counterproductive protectionist strategy. However, protecting intellectual property to create
incentives for innovation would lead to more jobs and more creative jobs in producing new content in the long run.
In concluding, Ms. Hudson underlined once more that the benefits of implementing ICTs in developing countries were
great indeed. However, it was unrealistic to think that these regions would transform overnight. The process towards ICT
development was one that was defined by phases. For the first phase, to get the best results, one would have to start with
those who were thirsty to use the ICTs and to incorporate them into their lives.
In her presentation, Ms. Catherine ADEYA, Researcher at the United Nations University/Institute for Technologies
(UNU/INTECH), Maastricht, The Netherlands, painted a sceptical picture concerning the application of ICTs in Africa.
For African nations, there were some clear obstacles that had to be overcome before they could fully benefit from the
technologies of the digital age.
There were some common underlying misconceptions and fears on the part of the African people and policy makers
concerning the ICT industry and keeping up with it. Firstly, it was feared that the African countries had to make the
transition to the new ICTs, in order to prevent further marginalization: without this transition, their abilities to procure
external resources would be inhibited. Secondly, ICTs had been heralded as a key for empowerment and development, yet
this had not been effectively put into practice, thus it was more theoretical than anything. Additionally, in order to
participate in the "knowledge economy," the countries had to be able to support a global information infrastructure. These
constraints and fears led many African countries to question whether it was feasible to participate in the digital economy.
There were many different approaches that governments took, some having more or less merit than others. A flawed
underlying belief was that basic policy prescription was better than public education; instead, there was still a need for
African policy makers to assess the nature of the changes that were underway internationally and decide how to integrate
these into the African approach and examine the policy issues at stake in their own countries.
Ms. Adeya stressed that African countries were lacking the social infrastructure necessary to support the constant
innovations of the digital age. The information infrastructure would be rendered useless without an adequate social
infrastructure in place to promote education and technological know-how. At the moment, there was a lack of human
capital - knowledge and skills as to how to effectively use the technology. This could be solved if there was an investment
in the educational system.
It would clearly not be enough to buy books and computers; there needed to be educators who had the knowledge to assist
and teach students to use the tools properly. Relevant education was needed for the success of African countries in the
digital economy and to provide networks with adequate business contacts for the students. This education had to be
practice-oriented. Only then would the information infrastructure begin to be utilized.
Access to the digital world was more than just computers, but it included infrastructures - affordable hardware and
software, and the knowledge and motivation to effectively use them. When dealing with many African countries, it was
too much to expect the market to address all of these issues, such as motivation and knowledge. Thus, other mechanisms
had to be found to overcome these barriers.
Another crucial actor in the ICT development was the government. Facilitation of private investment was most effective
when the government worked to control the legal and regulatory environment. Appropriate legal and regulatory
infrastructure would enhance a country's ability to attract investment and could help to stimulate local participation in the
information economy. An inappropriate legal and regulatory framework could be disempowering for the local
entrepreneurs; it could also push international investors to look towards other countries.
South Africa's IT policy development provided a good example of the legal and regulatory importance of the role of the
state, Ms. Adeya went on to explain. It had three major functions which were: (1) to encourage the domestic and global
private sector investment in the ICT sector; (2) to provide users with the highest level of advanced ICTs and quality
services at the lowest price and; (3) to extend public network and advanced information infrastructure to the many without
access. South Africa was in a unique situation, being the most developed country on the continent, and the one to which
other countries looked up and gauged their development strategies. It was obvious that South Africa and its policy
decisions had strong implications, both within and outside the country. If a policy was successful, it would most likely be
replicated in other places. One such innovative ICT policy was the inclusion of civil society in the policy formulation
process, in addition to business and labour, creating substantial linkages, although the state was still quite autonomous.
This had been quite successful in minimizing conflict.
Continuous improvement in ICT to bridge the divide between Africa and the others had some fundamental flaws.
Assisting African countries' work to close the ever-widening "digital divide" was not going to improve the economies,
especially because it was not always beneficial. Focusing on the applications and capabilities would drive technological
advancements, but first, it was necessary to clearly understand the users' interests and needs: What are the development
priorities and how can IT help to achieve these? How can you educate workers to use the ICT tools to achieve these
technologies? Currently, in Africa, there was an information overload, without enough people to process and understand
how to effectively utilize it. African policy makers would have to reject prevailing attitudes of a technological
determinism and assess how they could adapt to what might be a painful transition to a new global economy. The areas of
priority included: human resource development, private sector development, promotion of intra-African trade and
cooperation and information infrastructure.
Ms. Adeya ended her statement by pointing to the fact that in almost every case of industrial "catch-up" the invisible hand
of the state had been very much in evidence. Thus, to overcome the constraints that impinge upon Africa's ability to
benefit from the structural changes in the global economy, one would have to apply effective and consistent public policy.
According to Mr. Alex CORENTHIN, Professor of Information Technology, Cheik Anta Diop University, Dakar, and
President of the Internet Society, Dakar, Senegal, leaving the definition of development criteria entirely to policy makers
was wrong. It was also up to the population to define what they saw as development. Focusing on the Senegalese case of
adopting the usage of the Internet and information technologies, Mr. Corenthin gave examples of problems and innovative
solutions.
In Senegal, the Internet and e-mail existed since about 1990. But it was only in the last few years that there had been a
proper understanding and use of the potentials offered by technologies. The involvement of the Internet in the world of
work and in the business world could be attributed to spurring Internet growth in developed and developing nations.
In the Senegalese case, it had been local initiative that had allowed for the development of Internet capabilities.
Researchers and academics joined together to lobby the government to improve the information technologies capabilities.
This resulted in a public decision, put forth by the President, to provide Internet for the education and research sectors. In
1997, the university and research institutes had been connected, followed by the non-governmental organizations, and
finally, the service providers for Internet access also became connected, allowing anyone to utilize the Internet through
the use of cyber cafés.
Mr. Corenthin pointed out that, when laying the groundwork for the widespread introduction of the Internet, Senegal had
been quite lucky to already possess an established strong telecommunications infrastructure, upon which the Internet
infrastructure was dependant, thus making it relatively easy to have widespread access to the Internet. In the past five
years, for example, the cyber café niche had grown by four hundred percent, from five establishments to at least twenty.
What had been noted however was that there was a need for the creation of training programs. A problem had arisen in
that there were few who possessed the skills needed to effectively use the opportunities offered. Senegal lacked adequate
structures to train people, with only one polytechnic level training institute in all of French-speaking West Africa and only
two informatics-training centres. In consequence, the absence of the necessary educational infrastructure inhibited the
implementation of the tools provided through the Internet.
Another barrier for the creation of more widespread Internet access could be found in the legal and regulatory
environment. The question of taxation was of great concern as well as the absence of a regulatory framework, which
caused some enterprises to cease operating. In order to deal with this lack of framework and guidelines, Senegal had set
up a sort of an intellectual free zone. This enabled businesses to operate, but it did not solve the framework issue.
Finally, attracting and retaining key skilled people had been difficult, especially because of the abundance of opportunities
in Europe and North America for people with computer skills. Senegal was facing a serious brain drain problem, much
like other countries in regards to their IT sectors.
Mr. Corenthin explained that the Senegalese had to look for solutions for their IT problems outside of the framework of
the state administration. Lobbyists were present to encourage the authorities in Senegal to look at possible solutions.
Three associations had been set up with the purpose of consolidating the information concerning the Internet in Senegal.
The Observatory of Information, Assistance and Metrics in Senegal (OIAMIS) was responsible for monitoring the
national and international initiatives concerning IT and more importantly, it provided a framework for the development of
technology domestically and internationally. The Internet Society (IS) of Senegal had been established in 1999. It was
responsible for examining the technical tools that had to be introduced in order to ensure the most efficient use of the
Internet in the best conditions possible. And finally, the GRCC was a think tank established on competitiveness and
growth. It had a particular unit responsible for drawing up a national system for the provision of teleservices. In addition,
IS had also examined strategies for the future.
These associations had been effective in facilitating IT development. Regional workshops had been organized, and
Senegal was hoping to host a worldwide meeting on "cyber citizenship", which would involve local initiatives and discuss
and reflect upon problems of governance. Additionally, the promotion of "cyber citizenship" had occurred, with beneficial
results. For the Senegalese, "cyber citizenship" had manifested itself in the 2000 Presidential Elections: with the use of
cellular phones and Internet access, it had been possible for people to see the results on the Internet almost
instantaneously. This method engaged citizens and brought them closer to the government institutions.
Not only was the government using ICTs. Many non-governmental organizations and civil society organizations were
active and had already achieved useful results, especially in fostering community awareness in the cases of women's
associations and farmers' associations.
Mr. Corenthin concluded in saying that the positive effects of the Information technologies were proven, and the potential
to expand these capacities was evident. Nonetheless, there needed to be some kind of a partnership between the state and
civil society. The State was responsible for establishing the technical and technological infrastructures along with the
access to the system for its citizens and the necessary training opportunities. Civil society had a crucial role in supporting
the State by drawing both the authorities' and society's attention to the positive and negative aspects of these new
technologies. With the joint cooperation, societies would be able to progress and develop in step with the "new economy",
allowing the full potential of information technologies to be realized.
The practitioners' perspectives
Lord William BRETT, Member of TUC General Council and Vice-Chairperson of the ILO's Governing Body, was first to
give the practitioner's views. He considered the topic selected for the meeting excellent and timely. While information
communication technologies could provide new opportunities and open a fast track to a knowledge-based growth, they
could also clearly become a source of economic and social exclusion for a very large number of people. One therefore
needed a more developed policy to respond to resulting labour and social implications and in particular to ensure that the
digital divide would not contribute further to a social divide. New forms of work arrangements would need to be balanced
with job security; respect for fundamental worker rights; equal access to work; training and career development. All that
should be cast in the context of family friendly policies.
Lord Brett saw a lot of similarity between the old economy and the new, between current developments and the first
industrial revolution. To prevent hardship and inhumane working conditions, it was therefore crucial that new policies
adopted at national level should promote investment in affordable and inclusive ICT infrastructures and services which
would combine the goals of promoting economic growth and competitiveness with social inclusion, wide participation
and reducing inequalities.
The trade union movement would have a major part to play and would be a "willing partner in this challenge". An option
would be the negotiation of collective agreements that focused on some key issues such as the development of a life-long
learning environment in the workplace and the provision of opportunities for those with inadequate educational levels or
skills to access quality learning opportunities, especially for workers facing the change of industrial restructuring and
rapid technological change.
To illustrate this point, Lord Brett cited some examples from the United Kingdom. His own union, TUC, had sponsored
an MBA in Technology Management targeted to workers in the middle of their career paths who possessed obsolete skills
and had to deal with an involuntary career change. In the British civil service, unions collectively created a foundation
called Learning through Life, and together with the government, they were working on the up-grade of skills of public
sector workers.
TUC had also tried to encourage the development of family-friendly work arrangements. In Lord Brett's view, one of the
advantages of the world of ICT was that it would provide for those, as well as a great opportunity to promote general
equality and access to training and learning opportunities for women workers. However, ICT only provided the
opportunities, nothing would happen automatically. On the ground, it needed employers and trade unions to understand
that these developments were of mutual value and not just of value to workers. At the international level, the work of the
ILO was required.
The ILO had an important part to play in ensuring a socially balanced approach to the introduction and development of
information technology. It had some of the instruments at hand to fulfil this role. ILO Conventions No. 156 on workers
with family responsibilities, No. 162 on older workers, No. 175 on part-time work, No. 140 on paid educational leave, No.
181 on private employment agencies and No. 177 on homework would serve in this context.
In closing, Lord Brett reiterated that the trade union movement was willing to be a partner in taking up the challenges, and
stated that he looked for enlightenment in the employers and assistance from the ILO.
Mr. Michel BARDE, Secretary General of the Swiss Employers' Federation and Member of the ILO's Governing Body,
presented the concerns of employers and entrepreneurs.
According to him, several distinctions had to be made. One was between the management of the product or the service;
the management of marketing or sales; and the administrative management of the enterprise itself. Another important one
was that between major enterprises, the very large ones, and small and medium-sized enterprises.
ICTs created new opportunities for reaching new markets but had also spurred competition, which implied increased
vigilance on the part of the employer. Companies were faced with greater vulnerabilities and had to adapt daily. Larger
enterprises were better apt to deal with accelerated change. Smaller ones, which made up a large part of the economic
fabric, tended to have problems with financing and recruiting skilled personnel as well as with bureaucratic directives,
often of a complex nature.
In Mr. Barde's view, the use of new information technology put the employer in a series of dilemmas. Should one
outsource computer support activities or manage them by one's own devices when this might not be possible in the long
term? Should one rely on the markets in one's proximity or try to conquer markets far away with the new information
technology tools? There were also legal uncertainties and uncertainties about safety which the new information
technology brought. Denoting the burden of proof in court cases involving employers who used information technology
was still a grey area, for example. At the level of the management of the enterprise, another dilemma was to decide on
where to draw the line on the use and/or misuse of company computers for personal access.
Mr. Barde ended his contribution in pointing to a paradox. Competition tended to drive employers to be more
individualistic but at the same time there was also a need to find support with professional organizations, which could
help to manage organizational problems that were not limited to one single enterprise. Possibly, ICTs and increased
competition could be seen as agents of a new professional solidarity.
Summary conclusions
The meeting's discussions pointed to the need for a holistic approach to the knowledge economy in order to exploit its
potential for growth and employment and minimize the inequalities and insecurities it creates. Policies and institutions
should not simply focus on technology and training. They should also address broader issues such as how to reorganize
work and family lives and create new systems for learning for all workers. In the developing world, communication
networks were a complement to integrated investments in education and capital and social infrastructures.
There seemed to be consensus among the meeting's participants on a number of preoccupying issues, and the concern was
shared that prompt action was required if one wanted to prevent the exacerbation of inequalities and a broadening of the
digital divide.
Human Resource Development was seen as a key element in the "new economy". Appropriate educational and training
policies were necessary to provide the social capital required by a market with increased information flows, fast-paced
technological advances and greater competition. Education was not only a matter of years of schooling, but of quality and
relevance to market needs. Today, "ideal" workers were people who possessed creativity, networking skills and capacity
for abstract thought besides their formal education. However, one should recall that high qualifications were not necessary
for all jobs. Also, computer use could have de-skilling effects where computers simplified tasks to the point of minimal
worker's intervention. Educational policies should take into account the demands of the producer in relation to the product
specification and the production process.
In developing countries, in particular, the poor social infrastructure was one of the main obstacles encountered for ICT
development. These countries needed human capital with the knowledge and skills to effectively use the new
technologies. Educators able to provide this knowledge and transform ICTs in tools for development were in short supply.
A related concern was the serious brain drain problem that the South is facing where the few skilled IT workers leave
their homeland attracted by better opportunities in developed countries.
Physical infrastructure was also lacking. Investment in ICTs was crucial since it had the potential for facilitating socio-economic development, but it needed to be coupled with investment in health, education, social and cultural facilities.
There was also consensus that market conditions had been affected by the constant technological innovations. It was
pointed out that the level of information and knowledge available to economic agents was unprecedented, leading to more
specifically defined markets and greater competition. The consumer-producer relationship had been intensified as a result
of this. Consumers were more demanding and less predictable; producers were more aware of consumers' needs, market
niches and relative levels of competition. This had prompted companies to concentrate in their core business and
outsource their peripheral tasks to other companies. In the labour market, flexibility and new forms of work organization
had resulted in a rise in precarious jobs and greater instability. The growth in the number of good jobs, where individual
competencies, autonomy and creativity were given a premium, was coupled with a growing mass of minor jobs, uncertain
career prospects and poor content.
The panellists expressed from their different perspectives the need for adequate policies and institutions to channel the
changes brought about by ICTs and globalization. Some considered that the real constraints lied not in technological
development but in the economic, legal and political framework in which it took place. Government intervention to create
the enabling environment to take full advantage of ICTs was perceived as fundamental. Policy-makers should look at
ways to stimulate private initiative and investment as well as innovation; broaden the access to technology through the
development of infrastructure and educational policies; formulate a regulatory framework to attract investment as well as
favour local participation in the economy; and promote economic growth and competitiveness with social inclusion, wide
participation and reduced inequalities. If the poor and the non-educated were not taken care of with the adequate policy
measures, the emergence of a dual society would be inevitable. To provide access to education, relevant vocational
training and "good" jobs, especially for young people, should be a priority for policy makers.
The meeting's participants agreed that it was still premature to assess whether this dualism would be temporary or durable
and which policies and institutions could help overcoming it without hampering the new dynamics of growth engendered
by the information and knowledge revolution. The ILO should focus its efforts in assessing whether the Decent Work
approach, with its emphasis on inclusion and security as well as job creation, could make a difference and be used as a
tool to encourage both inclusion and flexibility, i.e. preparing the workers to accept the risks and pursue the benefits of
change.
Endnote 1:
These proceedings are based on a report prepared by Mariana Mozdzer with the assistance of Katelin Maher.
