Egypt’s Position in Technology and Information Led Globalizationin such a way to maximize its gains andminimize its losses? It is to these and relatedquestions that this chapter is devoted.The Digital DivideInformation and communication tools, suchas personal computers and the Internet, arebecoming increasingly critical for economicprogress and the growth of humancapabilities. New information andcommunication technologies are transformingthe ways we live, learn, and work. <strong>Nations</strong>that succeed in harnessing the potential ofthese technologies can look forward togreatly expanded economic growth,dramatically improved welfare, and strongerforms of democratic government. Peoplewithout ready and reliable access to thetools of the information age willincreasingly become second-class globalcitizens.The technology gap is a reflection of greatersocial issues. With an uneven spread of informationand communication tools, disadvantagedcountries and societies could becomemarginalized. Whether in education orincome, health or politics, the digital dividemust be addressed, since there is a risk ofrelegating a portion of the world, or of a societyto an underclass.The ‘digital divide’ refers to the gap betweenthose who have access to, and can effectivelyuse, new information and communicationtools and those who cannot. Formany groups, the digital divide has beenwidening as the information ‘haves’ outpacethe ‘have-nots’ in gaining access to electronicresources.Internationally, penetration levels differsubstantially according to income, educationallevel, gender, household type, andgeographical location. The differences inconnectivity are most pronounced withrespect to computers and Internet access.Nevertheless, it is apparent that more andmore people are becoming increasinglyconnected whether by telephone, computer,or the Internet.The Digital Divide in EgyptThe gap in technology between South andNorth is undeniably large. Moreover, thesignificant digital divide, separating the globalinformation ‘haves’ and ‘have-nots’, iswidening due to many factors. In Egypt, thefactors affecting the digital divide can becategorized into common and local factors.The common factors include infrastructure,income levels and literacy rates. The localfactors go beyond to include language andcultural barriers as well as business infrastructureand the digital trust .Dependence on information technology isquite limited within the Egyptian economy.Limited local demand, absence of a unifiedIT legislation, limited per capita incomelevels, low literacy rates, lack of basic computerskills, and non-adherence to intellectualproperty law, have all contributed to aweak IT industry. Moreover, four fifths ofweb sites are in the <strong>English</strong> language,whereas only a limited number of Egyptianscan communicate in this language.Despite these weaknesses, Egypt has a verylarge educated workforce, comparativelylow labor cost, a fairly developed infrastructureand proximity to the European market.All these strengths put Egypt in an advantageousposition and create better opportunityfor investment in, and development of, theinformation and communication industries.Recognizing the impact of the digitaldivide, Egypt has been implementingseveral projects in order to improve its ITstatus. These projects aim at helpingchildren, as well as adults, to familiarizethemselves with the new technologicaltransformation spreading all over the world.The digital divide in Egypt might seemdifficult to bridge in the short run, butserious efforts are being made to provideInternet access and other telecommunicationmeans for each citizen in the long run. TheCabinet Information and Decision SupportCenter (IDSC), and other governmentalbodies are developing a number of schemesto provide easy access to the Internet and toincrease the Internet literacy rate inEgyptian society. While significant, theseefforts remain insufficient and risk beingconstrained by the scarcity and cost of hardcurrencies unless a parallel developmenttakes place in the domestic production ofthe means of information andInformation andcommunication tools,such as personalcomputers and theInternet, are becomingincreasingly criticalfor economic progressand the growth ofhuman capabilities.The digital divide hasbeen widening as theinformation ‘haves’outpace the‘have-nots’ in gainingaccess to electronicresources.Egypt <strong>Human</strong> <strong>Development</strong> Report 2000/2001 - 79
Egypt’s Position in Technology and Information Led GlobalizationEfforts are beingmade to encouragemore people to owntelephone lines byreducing installationcosts, the price ofcalls and the‘wait-time’ to getconnected.Figure 5.1 : Number of Telephone Lines in Egypt (1982-2000)864200.541.52.12.51982 1986 1990 1992 1996 1998 2000South SinaiNorth SinaiMatrouhNew ValleyluxorRed SeaAswanQuenaSuhagAssyoutMeniaFayoumBani-SuefIsmailiaBeheraMenoufiaGharbiaKafr El-SheikhKalyoubiaSharkiaDakahliaDamiettaGizaSuezPort SaidAlexandriaCairocommunication, notably in computers, software,mobile telephone posts and the necessaryinfrastructure needed.Is the Digital Gap Narrowing inEgypt?Different indicators have been adopted todescribe the status of the digital divide.Among these are the following:Telephone density. This is calculated bydividing the number of telephone lines bythe number of people. The commonly usedfigure is the number of telephone lines per1,000 inhabitants.Since 1981, telephone lines in Egypt havegrown dramatically, from 510,000 lines inservice in 1981 to over six million lines in2000. Figure (5.1) shows this increaseduring the period 1982-2000. This jumprepresents more than a 1000 per centFigure 5.2 : Egypt: Telephone Density by Governorate (2000)(Telephone Line per 1000 Persons)4.2118.5195.1172.6192.1235.271.534.345.546.137.535.844.6108.343.8 65.77151.7 7756.164.1141 168174.9156.4208.2280.270 120 170 220 270 32020 370 4205.86.6428.2increase. Efforts are being made toencourage more people to own telephonelines by reducing installation costs, the priceof calls and the ‘wait-time’ to get connected.The increase in the number of telephonelines is an indication that the digital dividegap in Egypt is narrowing. Nonetheless,national distribution of lines is uneven.Figure (5.2) shows that the highest densityis in urban areas and South Sinai. However,figures for Luxor and Aswan, which aretourism governorates, could be quite misleadingas telephone density in these areas does notreflect local use. The number of telephonelines also differs from location to location.For example, Giza has more telephone lines(867,096) than Port Said (126,800),although Port Said’s telephone density(256.4) is greater than that of Giza (168).At present, there are more than 6.6 milliontelephone lines distributed across Egypt.This means that there are 104.2 lines forevery 1000 persons. However, data from1998 indicates that the relative position ofEgypt (60 lines) is low when compared tothe Middle East and North Africa (MENA)Region (80 lines), or to the Arab countries(140 lines).Mobile Phones: Other telecommunicationservices have been introduced in Egypt overthe last four years. The Global System forMobiles (GSM) was launched in 1996.Telecom Egypt established the first mobilenetwork, which was later privatized. Asecond mobile concession has been awardedto Misr-Phone to enable competition in thisarea. Since the introduction of the mobilephone, there has been a considerable increasein the number of users. In 1997, the numberof mobile phone users was a little over58,000 users. Following privatization, thenumber had exceeded 1.3 million users bythe year 2000, as shown in Figure (5.3).PC Density. Since having access to a PC is aprerequisite for Internet users, PC densitybecomes another important indicator of thedigital divide. This is measured by dividingthe number of PCs-in-use in a region by thenumber of citizens, although it is somewhatdifficult to calculate the exact number ofPCs in use, given frequent upgrades anddisposal of old computers.80 -Egypt <strong>Human</strong> <strong>Development</strong> Report 2000/2001