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Internet, Telecommunications Reform And Economic Development In Haiti


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Introduction
Telecommunications and information technologies have in the past decade or so brought enormous economic benefits to the economies of countries willing to make the needed investment, adopt pro-competitive policies and change the way they do business. Most, if not all, industrialized nations recognize the need for the private sector to take the lead in furthering the IT revolution, unimpeded by unnecessary trade barriers, taxes, tariffs and content restrictions. The United States, where the IT revolution is most in evidence, is witnessing in less than a decade a restructuring of stock brokerage, banking and other financial services, travel, retail sales and business-to-business transactions to take advantage of the efficiencies of the Internet. Global electronic commerce is expected to exceed a trillion dollars a year in value by 2002.

However, many developing nations lag in making the necessary policy adaptations to attract private investment, foster competition and establish a fair and non-discriminatory regulatory authority. If, as economists increasingly assert, the societal incorporation of telecommunications and information technologies stimulates economic growth, will then the poorer developing nations fall further behind the industrialized world? Can developing nations be assisted in making the policy changes needed to apply IT for development?

The following report contains the findings and recommendations of a three-person team of experts sent to Haiti 1/3/99 to 1/8/99 under the State/USAID Telecommunications Leadership Program. The purpose of this mission was to examine the state of Internet and telecommunications development in Haiti, assess the current state of telecom policy, including pricing, evaluate its actual and potential impact on the growth of the Internet and other information industries, and make recommendations on policy and regulatory reforms. Team members were Edward M. Malloy of the Center for Science and Technology Policy of George Washington University, Roxanne McElvane of the Federal Communications Commission, Richard Kerby of the U.N. Development Program.

The report is divided into three parts. The first describes the major players in Internet and telecommunications; the second provides a broad telecommunications policy perspective and makes policy recommendations for consideration by the Haitian government; and the third provides recommendations for action by USAID in cooperation with other USG agencies and the World Bank.

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