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Egypt’s Position in Technology and Information Led GlobalizationConsequently, data on PC density is hard tocollect at the national level. The EgyptianPC industry is not well organized andcompletely controlled by the private sector,with the informal sector playing a key role.Based on available data (Table 5.1), thenumber of sold PCs, both imported and locallyassembled during the period 1994-2000 canbe estimated at 947,000 units.Table (5-1)Egypt: Number of PC’s sold (in thousands)1994 1995 1996 1997 1998 1999 2000*4564* Forrecasted90120160208260Assuming that only one person uses eachcomputer, only 1.4 per cent of Egypt’s totalpopulation is using computers. This percentageis considered low compared with internationalstandards, or even with the figuresavailable for the United Arab Emirates (almost11 per cent).While data about PC density at the governoratelevel is not available, it is estimated that80 per cent of the computer base is locatedin greater Cairo and Alexandria, leavingonly 20 per cent for the rest of the country.1600140012001000800600400200050403020100Figure 5.3 : Number of Mobile Users (1997-2000)58.240119.4473.913541997 1998 1999 2000Figure 5.4 : Egypt: Distribution of the ISPs By Region(July 2000)13Urban Gov's Lower Egypt Upper Egypt Frontier gov's105Percentage of Internet users. Internet usageis the most crucial element in determiningthe potential of a region to participate in thisnew information world. The Internet wasintroduced in Egypt by the IDSC and theSupreme Council of Universities (SCU) in1993. IDSC controls government andcommercial domains, while SCU managesthe educational domain. Yo begin with,IDSC provided Internet services free ofcharge for three years to increase awareness.In 1997, it started to privatize the servicethrough Internet Service Providers (ISPs).More than sixty-six ISPs are now operatingin Egypt. They cover twenty-four governorates.Figure (5.4) shows the distribution of ISPsby regions.IDSC subsidizes the service outside GreaterCairo and Alexandria by providing otherareas to Service Providers at a reduced rate,costs ranging from 50 per cent to a low 90per cent, which applies to the most deprivedgovernorates.6005004003002001000Figure 5.5 : Number of Internet Users in Thousands45180Figure (5.5) indicates that there has been aconsiderable increase in the number ofInternet users over the last three years dueto efforts aimed at achieving a breakthroughin this area. The number of Internet usersgrew from 45,000 in 1997 to around 330,000in 1999. Currently, the number is estimated3005001997 1998 1999 2000Egypt Human Development Report 2000/2001 - 81
Egypt’s Position in Technology and Information Led GlobalizationArea45at around 500,000 users. This is a relativelysmall number compared with othercountries, but reflects a high growth ratecompared to previous years. In terms ofabsolute number of users, Egypt is leadingthe Arab countries, but the United ArabEmirates take the lead in terms of thepercentage of Internet users in total countrypopulation.Data related to the distribution of Internetusers between governorates has to date notbeen gathered in a formal way. A sample of5,000 users using IDSC services shows thatdistribution is biased towards Greater Cairo andAlexandria. Table (5.2) shows the discrepancybetween the major five regions of thecountry.Table (5-2)Egypt: Distribution of Internet Users by RegionCreat Cairo64Developing countriesalready suffer fromeconomic and socialdivides.Alexandria90Upper. Egypt120Lower Egypt160Frontier Govern.208Volume of E-Commerce. The Internet hasrecently become a powerful tool forcommunication, education, entertainment,and of course, commerce. E-commercetransactions are now used by businesses tocut costs in many areas includingpurchasing, sales and pursuing new salesopportunities, and providing more efficient andeffective customer services. E-commerce isattracting an increasing share of the worldeconomy, its volume growing by hundredsof billions of US$. It is estimated to havereached US$ 223.1 billion by the end of2001 with the United States holding amarket share of 70 per cent.E-Commerce was introduced to Egypt in1998, but it is still very difficult to measureits volume. This is due to the large numberof parties who only partially carry outprocedures. However, despite the legal andfinancial problems associated with itsgrowth in Egypt, it appears to be growing ata reasonable rate. The basic form it takes inEgypt is business to customer (B2C), withbusinesses focusing on fast food, recruitment,and real estate. ‘Dot com’ companies arestarting to operate locally, and have becomea ‘hot’ issue as big business moves in tobecome part of the new economy. Six new‘dot com’ companies alone have beenestablished in the last six months, currentlyonly in greater Cairo, and these appearlimited to the younger generation.The E-Government ProgramAlthough the GOE believes that it is theprivate sector that should take the lead,within a legal and regulatory framework thatis conducive to IT, it is in fact thegovernment which took the initiative toprovide services on the Internet in order topromote Internet usage in Egypt. TheE-Government project encompasses threephases:The first phase was inaugurated on 4October 2000. This phase is limited to theprovision of information about governmentservices to the public. A web site has beenlaunched on which all governmentprocedures and fees required to conduct aservice have been posted. One can also dial131 on the telephone to get informationabout government services. Moreover,privately operated kiosks are slated toprovide this data to the public at minimumcost. The second phase covers transactionswith selected government units, and thethird phase will cover the full integration ofservices in different government units.ThreatsBox (5.2)Digital Divide versus DigitalOpportunityDeveloping countries already suffer fromeconomic and social divides, given anaccumulation of development problems,so it is legitimate to ask why they shouldcare about the digital divide. However,governments are aware of the threatsarising from the widening digital divide,which can dramatically increase theexisting economic and social divides.● Widening Productivity Gap. The latestsix major economic studies in the USAconfirmed that the intensive use of ITproducts contributed by half or more tothe acceleration of the USA economy inthe last five years. Given the existing gapin productivity between North and South,one can conclude that the increase of thisgap comes as a result of the extensive use82 -Egypt Human Development Report 2000/2001
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The Digital Divide is a problem tha
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This report is the major output of
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AcknowledgementsThe Team of the Rep
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Table of ContentsExecutive Summary
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Energy Consumption 68Agriculture 69
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2.4 Health and Education 332.5 Poli
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AbbreviationsADNAADPAIAPRARCB2CBABC
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Executive SummaryI - Globalization
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Executive Summarythe main source of
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Executive Summaryfertilizers, pesti
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Executive Summarythe Egyptian labor
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Chapter OneGlobalization and Human
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Globalization and Human Development
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Chapter TwoThe Economic Well Being
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The Economic Well Being of Egyptian
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The Economic Well Being of Egyptian
Page 46 and 47: The Economic Well Being of Egyptian
Page 58 and 59: Globalization Challenges to Egypt
Page 80 and 81: The Environment and Sustainable Dev
Page 88: The Environment and Sustainable Dev
Page 93 and 94: Chapter FiveEgypt’s Position inTe
Page 95: Egypt’s Position in Technology an
Page 99 and 100: Egypt’s Position in Technology an
Page 109 and 110: Chapter SixGlobalization and Human
Page 111 and 112: Globalization and Human CapitalOf t
Page 113 and 114: Globalization and Human CapitalOne
Page 115 and 116: Globalization and Human CapitalThe
Page 117 and 118: Globalization and Human CapitalEmpl
Page 119 and 120: Chapter SevenEgypt’s Social Capit
Page 121 and 122: Egypt’s Social Capital and Arab E
Page 131 and 132: Technical Notesand Sources of DataH
Page 133 and 134: Technical Notes and Sources of Data
Page 139 and 140: Bibliography◆ Abdallah, H. (1996)
Page 141 and 142: BibliographyOECD Development Centre
Page 143 and 144: BibliographyNational policies in a
Page 145 and 146: Bibliography◆ Springborg,Robert (
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Governorate IndicatorsG.4 Trends in
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Governorate IndicatorsG.6 Status of
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Governorate IndicatorsG.8 Rural-urb
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Governorate IndicatorsG.10 Health p
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Governorate IndicatorsG.12 Educatio
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Governorate IndicatorsG.14 Labor fo
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Governorate IndicatorsG.16 Income d
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Governorate IndicatorsG.18 Demograp
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