Human Development Report 2013 - UNDP

FIGURE 2.3Between 2000 and 2010, Internet use grew more than 30% a year in around 60 developing countriesInternet users, 2000 (per 100 people)4.03.5Dominican Republic3.02.52.0PeruTunisiaColombiaBelarusBrazilSaudi ArabiaRussianFederation1.51.0PakistanUkraineEcuadorBosnia andHerzegovinaSri LankaMorocco0.5Egypt KazakhstanIndia UzbekistanMalawiLibyaTanzaniaSyrianArab0AngolaViet Nam AzerbaijanYemenRepublic0 10 20 30 40 50 60ChinaInternet users, 2010 (per 100 people)Note: Bubble size is proportional to total Internet subscriptions in 2010 (320,000 in Angola and 6.7 million in Viet Nam, for reference). Only developing countriesexceeding the 75th percentile of compound annual growth in Internet users are shown.Source: ITU 2012; World Bank 2012a.Human development isvital for participating inglobal supply chains;an abundance oflow-wage and low-skilllabour is not enoughresource-poor Ethiopia and Tanzania arenoteworthy for their large increase in nonincomeHDI value between 2000 and 2010 andfor their above-average FDI over the sameperiod.Human development is also vital for participatingin global supply chains. Contrary topopular perception, an abundance of low-wageand low-skill labour is not enough. Even assemblingcomponents made elsewhere can becomplex, requiring individual skills and socialcompetencies to coordinate and organize ona large scale. People can learn such skills withappropriate education, training and policysupport. Basic human capabilities are alsocrucial. 40 China, Malaysia, the Philippines andThailand in East Asia; Brazil, Costa Rica andMexico in Latin America and the Caribbean;and Morocco and Tunisia in the Arab Stateshave some of the highest trade shares in partsand components. Widespread benefits accrueonly when activities are scaled up (box 2.6).However, it should also be noted that in tradeof parts and components, the share of valueadded by any one country is generally low. Incountries where production takes place almostentirely in enclaves connected to overseas supplychains, with limited ties to the domesticeconomy, the benefits to the rest of the economyare limited. 41Helping other countries catch upAll developing countries are not yet participatingfully in the rise of the South. The pace ofchange is slower, for instance, in the majorityof the 49 least developed countries, especiallythose that are landlocked or far from worldmarkets. Nevertheless, many of these countrieshave also begun to benefit from South–South50 | HUMAN DEVELOPMENT REPORT 2013