TECH4GOOD
Monchito Ibrahim
The Portulans Institute and the Said Business School at the University of Oxford recently released the Network Readiness Index (NRI) 2022 Report. The annual NRI Report is a global report that looks at the application and impact of ICT in economies around the world. This year, a total of 131 economies were examined and ranked based on their performances in four pillars: Technology, people, governance, and impact.
The good news is that, among its ASEAN counterparts, the Philippines achieved the highest jump in terms of ranking. It improved to 71st this year compared to 83rd last year. However, it has some catching up to do, having ranked lowest among the ASEAN 6 after Vietnam, which is at 62nd place. Overall, the ASEAN 6 did well in the rankings, with Singapore ranking 2nd among all 131 economies.
If we do a deep dive into the Philippine results based on the sub-pillars, it did well in economy having ranked 17th overall. The economy sub-pillar, under the impact pillar, looks at the economic impact of citizen participation in the network economy including the size of the market. The network economy, usually seen as identical to the digital economy, is defined as the emerging economic order that was enabled by the arrival of the internet, mobile phones, social networks, etc. The Philippines also ranked 34th in the sub-pillar of individuals, under the people pillar, which considers how individuals use technology and their digital skills to participate in the network economy. It also achieved a decent ranking of 62nd in the sub-pillar of future technologies under the pillar of technology. Future technologies view the extent to which countries have prepared for the future of the network economy and its application of emerging technology trends.
Major areas of improvement for the Philippines are in the sub-pillars businesses, inclusion and SDG contribution. It ranked 99th in the sub-pillar businesses which is part of the people pillar. The sub-pillar investigates how businesses use digital technologies to participate in the network economy including their R&D spending. The Philippines also ranked 99th in inclusion, one of the sub-pillars under the governance pillar. Inclusion looks at the digital divides within the economy that can be addressed by governance such as inequality based on gender, disabilities, and socio-economic status. Lastly, the country achieved its lowest rank of 105th in SDG contribution, a sub-pillar of impact. This sub-pillar views the impact the use of ICT has in areas such as health, education, gender equality, and the environment.
Looking at the specific indicators of each sub-pillar, we can see bright spots for the Philippines. For example, it ranked No. 1 overall in terms of e-commerce legislation, No. 2 for its high-tech exports, 13th in ICT services exports, 16th in Mobile broadband internet traffic within the country, and 19th in freedom to make life choices.
More could be done, though, to improve the economy's performance in the indicators related to the use of ICT to promote SDG 3: Good health and well-being, mobile app development, handset prices, cost of mobile telephony, and the inclusive use of digital payment platforms. The Philippines ranked in the lowest quartile of the NRI 2022 ranking in all these indicators.
The report highlighted its findings that the post-pandemic digital-led recovery is emerging to be unequal, further worsening the digital divides among economic groups. It echoed the ITU findings last year that says more than half of the developing world remains digitally unconnected, with consumers and businesses lacking access to high-quality, affordable, safe, and reliable internet, and adequate digital skills. It can also be applied to describe the Philippine situation. It also mentioned how geopolitical tensions and self-propelling interests are contributing to the fragmentation of the internet as shown by the proliferation of fake news on one end and the exigency of well-meaning initiatives on the other. There is no question about the role of digital transformation and its potential to create more value for the economy and society at large. The report says, however, that in the context of all these uncertainties, digital transformation runs the risk of being relegated as a non-priority. We should all be glad that the current administration has articulated that digital transformation is a top priority of the government.
The NRI 2022 report is putting the focus on the Digital Natives: Millennials and Gen Z generations and the role they play in shaping the world order including the future of work. These are the people who have never experienced life without internet connectivity and digital devices. These are the generations who have made collaboration and information sharing inherent parts of their culture and lifestyle. They will soon also dominate the workforce.
The Philippines can put all the figures in the report to good use by making them as guide posts as it moves forward in its digital transformation journey. It is not just a job to be left with DICT. Not even a whole-of-government approach would be enough. It must be a national strategy that will be built on a whole-of-nation platform. And the digital natives will have to play a very important role in the development of that strategy.
The author is the lead convenor of the Alliance for Technology Innovators for the Nation (ATIN), vice president of the Analytics Association of the Philippines, and vice president, UP System Information Technology Foundation.