Milan State University

Department of Economics, Management and Quantitative Methods (DEMM)

Business History and Management (BH&M) Program

PhD Research Project:

Developing an Ecosystem Framework to Explore ICT Contribution

to Socio-economic Development;
An Empirical Analysis in MENA Region

Supervisor:

Prof. Luciano Pilotti

Department of Economics, Management and Quantitative Methods (DEMM)

PhD Candidate:
Masoumeh Maddah

1
 ACKNOWLEDGMENTS
I would like to express my deep and sincere gratitude to Prof. Luciano Pilotti, as my PhD research
project supervisor, for his support during my research. I am thankful the way he provided
guidance by checking the chapters and suggesting necessary modifications. Apart from my
supervisors, my special gratitude is to the members of Economics, Management and Quantitative
Methods Department (DEMM) specially Prof. Mario Benassi as coordinator of the Business
History and Management (BH&M) program. I have learned many things from attending their
lectures.
I am gratefully acknowledging Prof. Julian May 1 , Prof. Geoffrey Walsham 2 , Prof. Chrisanthi
Avgerou3, Dr. Roger Harris4, Dr. Arul Chib5, Dr. Michaela Saisana6, and Dr. Kathleen Diga7 for their
invaluable recommendations and advice in analyzing qualitative data. In addition, I must
acknowledge Mr. Vahid Zarrabi for his remarkable assistance.
This dissertation was not possible without the kind support of many supporters in Iran, especially
members of ICT Research Institute of ACECR (Academic Center for Education, Culture and
research)
I want to express special gratitude to my family. My husband, Bahram. He comforted me when I
was worried about my research progress. His support enabled me to spend months of
hardworking on analyzing quantitative and qualitative data. My parents that provided me moral
support to continue my studies without worrying about anything. I am also thankful to my sister
Elahe, who has provided me a great support by taking care of my parents when they greatly
needed me. Also my brothers, Alireza and Amir who have been a source of great comfort and
happiness to me in times when I needed.

1 University of the Western Cape

2 Professor of management studies at the Judge Business School, Cambridge University, UK
3 Professor of Information Systems at the London School of Economics
4 Independent Consultation in ICT4D Field
5 Assistant Director of Singapore Internet Research Center, Nanyang Technological University
6 Senior Scientific Officer and Project Leader at theJoint Research Center of the European Commission
7 Research Project Manager/Lecturer, Howard College, University of KwaZulu-Natal, South Africa

2
 Abstract
ICT is often considered as one of the main drivers and enablers of development in both
developed & developing countries. Considering different aspects of ICT contribution to
development like social, economic, cultural and political impacts, all these aspects should be
noted simultaneously in exploring interactions between ICT and development. Furthermore,
existing literature on ICT development is so fragmented in developing countries especially
countries located in MENA region. To narrow this literature gap, there is a need for an integrated
and comprehensive ecosystem framework that would explain the contribution of ICT to socio-
economic development in MENA region by taking advantage of ecosystem perspective. The
ecosystem perspective is valuable in grasping all the contextual factors, interactions and ICT
entities which cause ICT-based socio-economic development.
In addition to need for a comprehensive model to understand the relations between ICT and
socio-economic development by ecosystem insight, on the other hand the scarce of relevant
researches which have been addressed to both disruptive and progressive transformation
impacts of ICT in MENA countries make this sort of study timely and worthwhile. Hence, the main
objective of this research is to explore ICT contribution to socio-economic development in MENA
countries through developing an ecosystem framework labeled as “ICT-based socio economic
development (ISED) ecosystem framework”.
To develop ISED ecosystem framework three research questions were defined. These
research questions are as follows:
1. What are the main elements of ISED ecosystem framework?
2. What are the appropriate indicators to measure sub-pillars of ISED ecosystem framework?
3. How do sub-pillars of ISED ecosystem framework vary in selected countries of MENA region?
Based on both qualitative and quantitative analyses, this study investigates ICT contribution
to socio-economic development across 17 selected MENA countries including: Algeria, Bahrain,
Egypt, Iran, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia, Syrian,
Tunisia, United Arab Emirates, and Yemen. To address first two research questions grounded
theory research method and Delphi research method are employed. For third research question,
guidelines of constructing composite index and correlation analysis are applied.

3
 In this way four sub-pillars concerning key ICT Entities which are interacting in a particular
context have been determined. Also, six sub-pillars considering contextual factors (Capital
Portfolio) which play key roles in obtaining particular level of ICT-based socio-economic
development (ISED) have been defined. Moreover, the appropriate indicators in each sub-pillars
were determined to measure these 10 sub-pillars in 17 MENA countries.
The empirical analyses unveil that there are a huge intra-regional gap in MENA region
considering various sub-pillars of ISED ecosystem framework. Moreover, the correlation analysis
shows that the 10 sub-pillars of ISED ecosystem framework are strongly and positively correlated
and affect each other. The sub-pillars of ICT entity (IE) alone are not enough to allow ICTs to show
fully their potential. It means that the six sub-pillars of capital portfolio (CP) that reflect the status
quo of a nation plays a significant role to allow ICTs to appear their full potential. In other words,
the serious weaknesses on 6 sub-pillars of contextual factors across MENA region hinder the
overall potential of this region to leverage ICT entities to improve the level of ICT-based socio-
economic development.

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Table of Contents
ACKNOWLEDGMENTS .........................................................................................2
Abstract ..............................................................................................................3
1 Research Proposal.......................................................................................13
1.1 Introduction......................................................................................................................13
1.2 Issue relevance..................................................................................................................14
1.3 Main Objective..................................................................................................................16
1.4 Sub-Objectives ..................................................................................................................16
1.5 Research questions ...........................................................................................................17
1.6 Research approach............................................................................................................18
1.7 The level of analysis ..........................................................................................................18
1.8 Research design ................................................................................................................19
1.8.1 Qualitative steps........................................................................................................19
1.8.2 Quantitative steps .....................................................................................................20
1.9 Data..................................................................................................................................22

2 Theoretical background ..............................................................................24

2.1 Theories of development...................................................................................................24
2.2 Definition of socio-economic development ........................................................................27
2.3 Dimensions of socio-economic development .....................................................................29
2.4 Definition and evolution of ICT ..........................................................................................31
2.5 ICT and development approaches ......................................................................................35
2.6 The interaction between ICT expansion and socio-economic development .........................37
2.7 Features of framework which are used by international organizations to model ICT
contribution to socio-economic development ...............................................................................39
2.7.1 Networked Readiness Index (NRI) ..............................................................................39
2.7.2 Digitization ................................................................................................................42
2.7.3 The Information Society Measure...............................................................................44
2.7.4 ICT Performance Measure ..........................................................................................47
2.8 Concrete evidence of ICT contribution to socio-economic development..............................48
2.8.1 Socio-economic impacts of mobile broadband ............................................................48

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 2.8.2 ICT contribution to GDP growth..................................................................................49
2.9 ICT and Hyper-connectivity phenomenon ..........................................................................51
2.10 Need for developing an Ecosystem Framework to investigate ICT contribution to socio-
economic development ................................................................................................................53
2.11 Theoretical background of ICT-based socio-economic development (ISED) ecosystem
framework ...................................................................................................................................56
2.11.1 Capability Approach...................................................................................................56
2.11.2 Choice Framework and sustainable livelihood framework...........................................57
2.11.3 ICT ecosystem............................................................................................................59

3 Research Design..........................................................................................63
3.1 Grounded theory research method ....................................................................................65
3.2 Delphi research method ....................................................................................................69
3.3 Research method in qualitative phase ...............................................................................71
3.3.1 The main elements of the ISED ecosystem framework (1st research question) .............74
3.3.2 Developing hierarchical structure ...............................................................................77
3.3.3 The appropriate indicators to measure elements of ISED ecosystem framework (2 nd
research question)....................................................................................................................78
3.4 Research method in the quantitative phase (3rd research question) ....................................80
3.4.1 Data of MENA region .................................................................................................82
3.4.2 Outlier detection and treatment: ...............................................................................83
3.4.3 Missing data Imputation: ...........................................................................................84
3.4.4 Normalization............................................................................................................86
3.4.5 Calculating Cronbach’s alpha test ...............................................................................87
3.4.6 Aggregation rule ........................................................................................................87
3.4.7 Correlation analysis to analyze the underlying structure .............................................88
3.5 Sum up .............................................................................................................................89

4 Qualitative Phase Analyses and Results ......................................................91

4.1 Features of ISED Ecosystem Framework .............................................................................94
4.2 ICT Entities (IE) and Their Positions ....................................................................................96
4.3 Dimensions of ICT Entities’ Interactions ...........................................................................102
4.4 Capital Portfolio in ISED Ecosystem Framework................................................................107
4.5 Dimensions of ICT-based socio-economic development....................................................110

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 4.6 ISED ecosystem framework .............................................................................................117
4.7 Hierarchical Structure of Pillars and Sub-pillars of ISED Ecosystem Framework..................119
4.8 Appropriate Indicators to Measure ISED Ecosystem Framework’s elements ......................122

5 Quantitative Phase Analyses and Results ..................................................132

5.1 Data Structure.................................................................................................................132
5.2 ICT entities’ sub-pillars ....................................................................................................135
5.2.1 ICT Infrastructure Entity (IIE) ....................................................................................136
5.2.2 Provide/Use Entity (PUE)..........................................................................................138
5.2.3 Rule/Procedure Entity (RPE).....................................................................................140
5.2.4 Fund/innovation Entity (FIE).....................................................................................144
5.3 ICT Entity pillar’s Score ....................................................................................................146
5.4 Capital Portfolio’s Sub-pillars...........................................................................................148
5.4.1 National Human Capital (NHC) .................................................................................149
5.4.2 National Process and structure Capital (NPSC) ..........................................................151
5.4.3 National Renewal Capital (NRC)................................................................................154
5.4.4 National Social Capital (NSC) ....................................................................................156
5.4.5 National Natural Resource (NNR) .............................................................................158
5.4.6 National Financial Capital (NFC)................................................................................159
5.5 Capital Portfolio (CP) pillar’s Score...................................................................................160
5.6 ICT-based socio-economic development (ISED) composite index ......................................163
5.7 The correlation Analysis ..................................................................................................166
5.8 ISED Gap in MENA region ................................................................................................169

6 Conclusion ................................................................................................175
7 References ................................................................................................180
8 Appendix ..................................................................................................190

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List of Tables
TABLE 1. THE LEVEL OF ANALYSIS FOR SOCIO-ECONOMIC DEVELOPMENT ......................................................................................19
TABLE 2. DIMENSIONS OF SOCIO-ECONOMIC DEVELOPMENT WITHIN THE CONTEXT OF INTERNET ......................................................30
TABLE3. THE OECD ICT SECTOR DEFINITION (BASED ON ISIC REV. 4, 2006-2007) .....................................................................33
TABLE 4. EVOLUTION OF ICT: FROM EARLY ERA TO HYPER-CONNECTED ERA ..................................................................................33
TABLE 5. THE ELEMENTS OF NETWORK READINESS INDEX (NRI) ................................................................................................41
TABLE6. THE DIGITIZATION SCORE WITH RESPECT TO DIGITIZATION ATTRIBUTES.............................................................................42
TABLE 7. IDI INDICATORS ...................................................................................................................................................46
TABLE 8. DIMENSIONS AND INDICATORS OF ICT PERFORMANCE MEASURE ...................................................................................48
TABLE 9. RESEARCH DESIGN IN QUALITATIVE PHASE.................................................................................................................73
TABLE 10. RESEARCH DESIGN FOR FIRST RESEARCH QUESTION ...................................................................................................77
TABLE 11. RESEARCH DESIGN FOR SECOND RESEARCH QUESTION ...............................................................................................80
TABLE 12. RESEARCH DESIGN FOR THIRD RESEARCH QUESTION ..................................................................................................81
TABLE 13. COUNTRY GROUPS IN MENA REGION ....................................................................................................................83
TABLE 14. OPEN CODING OF ICT ENTITIES .............................................................................................................................96
TABLE 15. POSITION OF ICT ENTITIES .................................................................................................................................102
TABLE 16. DIMENSIONS OF ICT ENTITIES’ INTERACTIONS ........................................................................................................104
TABLE 17. CORRESPONDENCE BETWEEN ICT ENTITIES AND DIMENSIONS OF INTERACTIONS ...........................................................106
TABLE 18. OPEN CODING OF ICT INTERACTING ENTITIES.........................................................................................................107
TABLE 19. THE INITIAL LIST OF ICT-BASED SOCIO-ECONOMIC DEVELOPMENT ..............................................................................110
TABLE 20. DIMENSIONS OF ICT-BASED SOCIO-ECONOMIC DEVELOPMENT .................................................................................113
TABLE 21. INDICATORS SELECTION STAGES...........................................................................................................................122
TABLE 22. PILLARS AND SUB-PILLARS OF ISED ECOSYSTEM FRAMEWORK...................................................................................123
TABLE 23. TEMPLATE USED TO ANALYZE FIRST AND SECOND ROUNDS OF DELPHI .........................................................................124
TABLE 24. INDICATORS OVER DIFFERENT ROUNDS OF DELPHI RESEARCH METHOD........................................................................127
TABLE 25. INDICATORS OF CAPITAL PORTFOLIO (CP) PILLAR IN DELPHI METHOD .........................................................................128
TABLE 26. INDICATORS OF ICT ENTITIES (IE) PILLAR IN DELPHI METHOD ....................................................................................130
TABLE 27. CRONBACH’S ALPHA TEST FOR SUB-PILLARS OF ICT ENTITIES ....................................................................................133
TABLE 28. CRONBACH’S ALPHA TEST FOR SUB-PILLARS OF CAPITAL PORTFOLIO ...........................................................................133
TABLE 29. FINAL INDICATORS OF ICT ENTITIES (IE) PILLAR ......................................................................................................134
TABLE 30. FINAL INDICATORS OF CAPITAL PORTFOLIO (CP) PILLAR ............................................................................................135
TABLE 31. COUNTRIES’ SCORES AND RANKS ON ICT ENTITIES (IE)............................................................................................136
TABLE 32. SCORES OF CAPITAL PORTFOLIO SUB-PILLARS AND RANKS OF MENA COUNTRIES ..........................................................148
TABLE 33. SPEARMAN COEFFICIENT CORRELATION ................................................................................................................169

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List of Figures
FIGURE 1. INTERNET AND SOCIO-ECONOMIC DEVELOPMENT; CONCEPTUALIZING THE INTERACTION ..................................................30
FIGURE 2. DISCOURSES ON ICT AND DEVELOPMENT ................................................................................................................37
FIGURE 3. ICT EXPANSION AND SOCIO-ECONOMIC DEVELOPMENT ..............................................................................................38
FIGURE 4. THE EVOLVED NRI FRAMEWORK............................................................................................................................40
FIGURE 5. THREE STAGES IN THE EVOLUTION TOWARDS AN INFORMATION SOCIETY .......................................................................45
FIGURE 6. THEORETICAL BACKGROUND OF ECOSYSTEM FRAMEWORK ..........................................................................................56
FIGURE 7. THE PROCESS OF EMPOWERMENT .........................................................................................................................58
FIGURE 8. STEPS OF DEVELOPING GROUNDED THEORY..............................................................................................................68
FIGURE 9. ROAD MAP FOR ANALYSIS IN QUALITATIVE AND QUANTITATIVE PHASE ..........................................................................89
FIGURE 10. THE INTERACTIONS AMONG VARIOUS ELEMENTS OF ISED ECOSYSTEM FRAMEWORK ......................................................93
FIGURE 11. ICT DEVELOPMENT PATH ..................................................................................................................................95
FIGURE 12. CURRENT RESEARCH PERSPECTIVE BASED ON ICT DEVELOPMENT PATH ........................................................................96
FIGURE 13. AXIAL CODING OF ICT ENTITIES ...........................................................................................................................97
FIGURE 14. AXIAL CODING OF CAPITAL PORTFOLIO ................................................................................................................108
FIGURE 15. ICT-BASED SOCIO-ECONOMIC DEVELOPMENT (ISED) ECOSYSTEM FRAMEWORK..........................................................118
FIGURE 16. ISED HIERARCHICAL STRUCTURE .......................................................................................................................121

List of charts
CHART 1. IMPORTANCE AND FEASIBILITY OF SELECTED INDICATORS ...........................................................................................126
CHART 2. MENA COUNTRIES RANKINGS BY ICT INFRASTRUCTURE ENTITY (IIE)...........................................................................137
CHART 3. COUNTRY GROUPS COMPARISION IN TERMS OF IIE INDICATORS ..................................................................................138
CHART 4. MENA COUNTRIES RANKINGS BY ICT PROVIDE/USE ENTITY (PUE) .............................................................................139
CHART 5. COUNTRY GROUPS COMPARISION IN TERMS OF PUE INDICATORS ...............................................................................140
CHART 6. MENA COUNTRIES RANKINGS BY ICT RULE / PROCEDURE ENTITY (RPE) ......................................................................141
CHART 7. COUNTRY GROUPS COMPARISION IN TERMS OF RPE INDICATORS ................................................................................143
CHART 8. MENA COUNTRIES RANKINGS BY ICT FUND / INNOVATION ENTITY (FIE) .....................................................................144
CHART 9. COUNTRY GROUPS COMPARISION IN TERMS OF FIE INDICATORS .................................................................................145
CHART 10. MENA COUNTRIES RANKINGS BY ICT ENTITY (IE) PILLAR ........................................................................................146
CHART 11. THE BEST AND WORST COUNTRIES IN TERMS OF SUB-PILLARS OF IE ...........................................................................147
CHART 12. MENA COUNTRIES RANKINGS BY NATIONAL HUMAN CAPITAL (NHC)........................................................................149
CHART 13. COUNTRY GROUPS COMPARISION IN TERMS OF NHC INDICATORS .............................................................................151
CHART 14. MENA COUNTRIES RANKINGS BY NATIONAL PROCESS&STRUCTURAL CAPITAL (NPSC)..................................................152
CHART 15. COUNTRY GROUPS COMPARISION IN TERMS OF NPSC INDICATORS ...........................................................................154
CHART 16. MENA COUNTRIES RANKINGS BY NATIONAL RENEWAL CAPITAL (NRC) ......................................................................155
CHART 17. COUNTRY GROUPS COMPARISION IN TERMS OF NRC INDICATORS .............................................................................156
CHART 18. MENA COUNTRIES RANKINGS BY NATIONAL SOCIAL CAPITAL (NSC) ..........................................................................157
CHART 19. COUNTRY GROUPS COMPARISION IN TERMS OF NSC INDICATORS .............................................................................158
CHART 20. MENA COUNTRIES RANKINGS BY NATIONAL NATURAL RESOURCE (NNR)...................................................................159
CHART 21. MENA COUNTRIES RANKINGS BY NATIONA FINANCIAL CAPITAL (NFC).......................................................................160
CHART 22.MENA COUNTRIES RANKINGS BY CAPITAL PORTFOLIO (CP) PILLAR ...........................................................................161

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CHART 23.THE BEST AND WORST COUNTRIES IN TERMS OF SUB-PILLARS OF CP...........................................................................163
CHART 24. MENA COUNTRIES RANKINGS BY THE ISED COMPOSITE INDEX ................................................................................164
CHART 25. CORRELATION BETWEEN CP AND IE PILLARS .........................................................................................................166
CHART 26. THE ISED GAP IN MENA REGION ......................................................................................................................170
CHART 27. MENA COUNTRIES’ CP AND IE AVERAGE SCORES..................................................................................................172

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List of Abbreviation
ICT Information Communication Technology CF Choice Framework
ISED ICT-based Socio-economic Development CA Capability Approach
IE ICT Entity SLF Sustainable Livelihood Framework
CP Capital Portfolio WDI World Development Indicator
MENA Middle East and North Africa GITR Global Information Technology Report
QAT Qatar TUN Tunisia
UAE United Arab Emirates MOR Morocco
KWT Kuwait EGY Egypt
BAH Bahrain SYR Syria
SAU Saudi Arabia ALG Algeria
OMN Oman LYB Libya
LBN Lebanon IRQ Iraq
IRN Iran YEM Yemen
JOR Jordan NRC National Renewal Capital
NSC National Social Capital NFC National Financial Capital
NPSC National Process &structural Capital NHC National Human Capital
NNR National Natural Resource IIE ICT Infrastructure Entity
PUE Provide/Use Entity FIE Fund/Innovation Entity
IDI ICT Development Index NRI Network Readiness Index
RPE Rule/Procedure Entity IMF International Monetary Fund
WGI Worldwide Governance Indicators HDR Human Development Report
ICPS International Centre For Prison Studies GEM Global Entrepreneurship Monitor
IPB ICT Price Basket UNFPA United Nations Population Fund
WB World Bank UNDP United Nation Development Program
UNESCO United Nations Educational, scientific WHO World Health Organization
and Cultural Organizations
ITU International Telecommunication Union OPEC Organization of the Petroleum Exporting
database Countries
WITSA World Information Technology and UNODC United Nations Office on Drugs and
Services Alliance Crime
UNCTAD United Nations Conference on Trade and IASP International Associations of Science
Development Parks
OECD Organization for Economic Co-operation
and Development

11
 Chapter 1
Research Proposal

12
1 Research Proposal

1.1 Introduction

Broadly speaking, information and communication technology (hereafter ICT) is often considered
as one of the main drivers and enablers of development in both developed & developing
countries. Particularly, the accelerated development of ICT over past two decades has had great
impact on countries' social and economic process across the globe. So, a large number of
economists, sociologists and policy-makers argue that the progress in ICT would significantly
empower human development indicators, increase the productivity of various economic sectors
and totally enhance the welfare level in a society theoretically and practically. They generally
conclude that not only ICT is a prerequisite but also does play crucial role in achieving social and
economic development goals.
The massive increase in computer processing power that is becoming available to hundreds of
millions of users, the development of powerful networks for linking individual computers, the
increase in the number of internet users and mobile phone subscriptions; are transforming the
knowledge, social and economic environment in many countries and , potentially, in all.
ICT sector has a crucial role in economic development, job creation, labor productivity, poverty
alleviation and providing an open public sphere (Kozma, 2005). ICT sector can also play a
significant role to enhance accountability and responsiveness of government agencies, increase
learning opportunities, cultural creativity, and support the development of a knowledge-based
and innovation.
So many scholars and researchers, concerning the importance of this issue, have generally tried
to examine the contribution of ICT to the development and to explore their interrelations in
particular. Existing literature shows us that most of these attempts have focused on investigating
the economic effects of ICT in developed and developing nations. Nevertheless, as ICT has great
contribution to the economic developments, other aspects of development such as social and
political aspects can be investigated from this perspective. This strand of literature indicates that
ICT could have some implicit and explicit social and political effects which could even marginalize
economic impacts. Therefore, different aspects of ICT contribution to the development like

13
social, economic, cultural and political aspects should be noted in exploring ICT contribution to
socio-economic development. In spite of the importance of this issue, existing literature is
fragmented so that there is a need for an integrated and comprehensive model that would
explain the contribution of ICT to socio-economic development.

1.2 Issue relevance

In light of the importance of ICT contribution to development lots of scholars and researchers
made many efforts to explore the interaction between ICT and development. But most of these
studies aim to investigate just the economic impacts of ICT in countries (both developed and
developing nations) in the past decades. Examining the contribution of ICT to GDP growth and
productivity was initiated by Ark et al (2002) and Daveri (2002) for most EU economies and
Jorgenson (2003) for G7 economies. There are other related studies, namely, DrikPilat (2004) for
OECD countries, khuong Vu (2004), KehbumaLangima (2005) for South Africa, European
Commission (2006), International Telecommunication Union (2006), InfoDev (2007), Tenzin
Norbhu (2009) for Bangladesh, Nicholas Bloom et al (2010) and Harold Gruber et al (2011).
On the other hand, concerning the expansion and progress of ICT, this technology completely
“hyperconnected” with its social and economic context as well as cultural and political
circumstances. So, present era has been called “hyper-connected era” (GITR, 2013). Hyper-
connectivity is a term invented by Canadian social scientists Anabel Quan-Hassa and Barry
Wellman, arising from their studies of person-to-person and person-to-machine communication
in networked organization and networked societies.
The main drivers of hyper-connectivity process are the rapid growth of mobile broadband
services and social media. In hyper-connected era the internet and its associated services are
accessible and instant (GITR, 2013). People and businesses link with each other immediately. This
phenomenon is changing interactions between players of socio-economic context such as
consumers and enterprises, citizens and government, clients and service providers. Besides new
opportunities to enhance the quality of life that resulted from hyper-connectivity phenomenon,
it can introduce new threats concerning individual rights and cybercrime.

14
To model this hyper-connectivity, developing an ecosystem framework can be so fruitful in
mapping interactions among all key players and main contextual factors.
However, the ecosystem perspective is valuable in grasping all contextual factors, interactions
and ICT key players which cause ICT-based socio-economic development, existing literature on
ICT shows that ecosystem perspective has been mostly neglected so far. Moreover, the
Interactions between ICT and development is often regarded from one specific aspect (social,
economic, cultural or political), so existing literature is fragmented. Indeed, addressing to
economic, infrastructural and social issues in ICT development literature are very common but
considering all interrelations, contextual factors, and ICT players in an integrated systematic
perspective have been so rare. Thus, it seems there is a gap in the literature that could be
narrowed by applying ecosystem perspective in exploring ICT-based socio-economic
development. The ecosystem perspective can aggregate and integrate parameters and factors in
ICT development form all aspects. It also helps us to envisage the effects of ICT sector on social
welfare and cultural evolution and reciprocally how social and cultural context influences ICT
development. This can be expanded to the political and legal environment relation with ICT
development and its effects on political and legal issues in practice. Summarily, by applying
ecosystem perspective help us to demonstrate systematically ICT contribution to socio-economic
development. With the help of ecosystem framework, the contribution of ICT to socio-economic
development would be analyzed in a systematic and holistic way.
As well, the lack of relevance research in Middle East and North Africa (MENA) countries and the
need to better understand the relationship between ICT and socio-economic development in
MENA region concerning its geographic and strategic position, makes this research timely and
worthwhile. Also comparing countries in MENA region will help us to draw lessons to empower
the level of ICT-based socio-economic development in countries with weak performance. Hence,
the main objective of this research is to investigate ICT contribution to socio-economic
development through developing an ecosystem framework. In this research the term “ICT-based
socio-economic development” refers to the transformation which ICT is understood to
contribute.

15
 1.3 Main Objective

Exploring the contribution of ICT not only in economic development but also in other aspects of
development such as social and political development is significant. Therefore need for a
comprehensive model to reveal the relations between ICT and socio-economic development
including all ICT players, contextual factors, and interactions among them that pay attention to
both disturbing and progressive transformation impacts of ICT call for an in-depth research.
Notwithstanding the importance of this issue, there is no existing comprehensive research that
both empirically and theoretically explores the contribution of ICT to socio-economic
development.
The main objective of this research is to explore ICT contribution to socio-economic development
through developing an ecosystem framework by taking advantages of Choice Framework (CF)
and Capability Approach (CA) concepts.
To explore ICT contribution to socio-economic development we will apply both qualitative and
quantitative examinations. Since ICT-based socio-economic development is a multi-dimensional
concept and there is no comprehensive framework that reflects all dimensions of this concept,
we are going to develop these multi-dimensional concept through an interpretive research
approach.

1.4 Sub-Objectives

Based on the main objective, following research sub-objectives are undertaken in this research;
- Developing an ICT-based socio-economic (ISED) ecosystem framework including all
interacting entities, rivalry/cooperative interactions, institutions, social structures and
components of socio-economic context in macro level.
- Determining the dimensions of ICT-based socio-economic development.
- Collecting a set of relevant indicators and data to measure the main elements of ISED
ecosystem framework concerning the international organizations reports and widely
accepted data sets.

16
 - A comparative analysis of MENA (Middle East and North Africa) region countries in terms
of the elements of ISED ecosystem framework.
- Exploring the interrelation among main elements of ISED ecosystem framework to
analyze ICT contribution to socio- economic development.

1.5 Research questions

The main objective of this research is developing an ecosystem framework in order to investigate
the ICT contribution to socio-economic development -considering ecosystem metaphor and
choice framework. We labeled this ecosystem framework: “ICT-based socio-economic
development (ISED) ecosystem framework”. This framework paves the road for the construction
of a meaningful composite index (CI) to measure ICT-based socio-economic development.
The research questions that we investigate to answer through this study are as follows:
1. What are the main elements of ICT-based socio-economic development (ISED)
ecosystem framework?
 What are the ICT key players/entities of ICT-based socio-economic
development ecosystem framework?
 How do ICT for development (ICTD) experts define interactions among ICT key
players?
 What are the main contextual factors of ISED ecosystem?
The degree to which an ISED ecosystem framework is effective and efficient
depends on components of its national capital portfolio. These factors play a key
role in determining particular development path. They work as the potential to
make desired ICT-based socio-economic development.
 What are the main dimensions of ICT-based socio-economic development as
the outcome/impacts (both progressive and disruptive) of ISED ecosystem
framework? (concerning to various aspects of development simultaneously
such as social aspects, economic aspects, political aspects and cultural aspects)
2. What are the appropriate indicators to measure elements of ISED ecosystem
framework?

17
  What are the appropriate indicators to measure ICT key players/entities?
 What are the appropriate indicators to measure main factors of pertinent
context?
3. What interrelations and associations are there among main elements of ISED
ecosystem framework?
 How do ICT-based socio-economic development indicators vary in various
countries of MENA region?
 How do indicators of contextual factors vary in various countries of MENA
region?
 How do ICT players/entities indicators of ISED ecosystem framework vary in
various countries of MENA region?

1.6 Research approach

ICT contribution to socio-economic development is associated to many internal and external

factors. As long as there is no pervasive theory, it is vital to apply “multi-method” and “mixed-
method” approaches to analyze ICT contribution to socio-economic development.
Both “multi-method” and “mixed method” approaches are used to respond to the three research
questions. It means to answer first two research questions we have employed two types of
qualitative inquiries (interpretive research method) such as grounded theory method and Delphi
research method. To investigate last research question we have applied quantitative research
approach.

1.7 The level of analysis

The term “level of analysis” points to the “location, size or scale of a research target” (Yurdusev,
A. Nuri, 1993). Subramaniam (2004) states three general levels of analyses may occur in each
research: micro-level, meso-level or middle-range, and macro-level with respect to both
geographical and institutional dimensions. These levels of analyses are not necessarily mutually
exclusive in that they can occur at the same time (Subramaniam, 2004). The research population

18
at the micro-level analyses is an individual or a small group of individuals in a particular social
context. In Macro-level analyses the outcomes of interactions are traced over a large population.
A meso-level analysis indicates a population size between the micro and macro levels, such as a
community or an organization. Moreover, meso-level may applied to analyses that are
particularly developed to unveil relation between micro level and macro level.

Table 1. The level of analysis for socio-economic development

Dimensions
Level of analysis
Geographical Institutional
Micro Local / Village Individuals / businesses / communities
Meso Province / Regional Supportive context / supportive organizations
Macro National National policies / the regulatory environment

In this research the level of analysis that has been selected to explore ICT contribution to socio-
economic development is macro level.

1.8 Research design

This section describes both qualitative and quantitative steps which will be used in this study to
answer the research questions.

1.8.1 Qualitative steps

The development of ICT has initiated a profound transformation of the world into a hyper-
connected society. It is obvious that people, business, and governments now have much better
access to information, knowledge and wisdom than before in terms of scale, scope, and speed.
Furthermore this wealth of information, knowledge and wisdom is endlessly growing through
unprecedented fast and robust communication and exchange.
With this premise, on theoretical front, an ecosystem framework of ICT-based socio-economic
development (ISED) will be developed to explore ICT contribution to socio-economic
development in this research. For This purpose, theoretical exploration will be directed in the
following steps:

19
 - Comparing the structures which are used by international organizations to model ICT
contribution to socio-economic development.
- Exploring various definition of ICT-based socio-economic development.
- Identifying the advancing and disturbing impacts of ICT-based socio-economic
development.
- Determining main elements of the ICT-based socio-economic development (ISED)
ecosystem framework including key ICT players and main contextual factors.
- Determining interactions among elements of ISED ecosystem framework
- Determining main dimensions of ICT-based socio-economic development as the outcome
of ISED ecosystem framework.
- Determining the appropriate indicators from official and widely accepted reports to
measure various elements of ISED ecosystem framework
- Defining main pillars and sub-pillars of the developed ISED ecosystem framework
regarding determined elements to map a hierarchical structure as the starting point of
quantitative phase.

1.8.2 Quantitative steps

In quantitative phase, this research conducts empirical examinations to investigate the

interrelations among the main elements of ICT-based socio-economic development (ISED)
ecosystem framework in Middle East and North Africa (MENA) region. Furthermore, the
association between ICT-based socio-economic development as the outcome of ISED ecosystem
framework and the elements of this ecosystem in MENA countries will be investigated.
The Middle East and North Africa includes Israel and Iran and all the members of the Arab League:
Algeria, Bahrain, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, West
Bank and Gaza, Qatar, Saudi Arabia, Syria, Tunisia, United Arab Emirates, and Yemen. This region
contains countries with various political, economic and cultural conditions. MENA region includes
various type of regimes like republican and monarchical regimes, nations with very high oil and

20
gas resources, non-oil countries, small and large states, and very rich nation like Qatar and poor
countries,
The quantitative examinations will be conducted in the following steps:
- Measuring various elements of ISED ecosystem framework for 17 countries of Middle East
and North Africa (MENA) region and comparing MENA countries position.
- Exploring the relations among proposed elements of ISED ecosystem framework through
computing Spearman Correlation Coefficient (Correlation Analysis)
- Constructing an ICT-based socio-economic development (ISED) composite index
regarding the proposed ISED ecosystem framework to measure and compare ICT-based
socio-economic development across 17 MENA countries. This composite index enables
both scholars and policy-makers to measure this multi-dimensional concept effectively,
without dropping the underlying information base.

These measures simplifies and make possible cross-country comparison of ICT-based socio-
economic development in different countries of MENA region and also would be fruitful in
benchmarking of best practices in order to draw policy lesson and initiatives for less developed
countries in this region.
According to “Economic Developments and Prospects” report (2013), the MENA region is divided
into three main groups:
1) The GCC oil exporters: The first group contains the Gulf Cooperation Council (GCC)
countries, namely, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab
Emirates;
2) Developing oil exporters: Algeria, the Islamic Republic of Iran, Iraq, Libya, the Syrian Arab
Republic, and the Republic of Yemen;
3) Oil importers: oil importers include countries with strong GCC links (Jordan, and Lebanon)
and those with strong EU links and located in North Africa (Morocco, Tunisia and the Arab
Republic of Egypt).

21
 1.9 Data

In this research empirical examinations will be carried out to test the developed ecosystem
framework. Considering proposed ISED ecosystem framework and selected indicators, the cross
section data will be collected for 17 countries of MENA region from official and widely accepted
international organizations for the most recent year (year 2013).
The data will be compiled from the following sources:
WDI, ITU, WGI, WB,WITSA, UNDP, Economist, OECD, UNCTAD, UNESCO, UNFPA, GEM, Doing
Business, MF, HDR, IASP, Gallup World Poll Database, UNODC, WHO, OPEC, Arab Social Media
Report, Freedom HOUSE, ICPS, Freedom House, Heritage.org, and GITR.

22
 Chapter 2
Theoretical Background

23
2 Theoretical background

2.1 Theories of development

Development is defined as a progressive process of growth (Oxford English Dictionary, 2008).

Development represents vertical advancement where society moves from lesser to greater level
of energy, efficiency, quality, complexity, comprehension, creativity, enjoyment and
accomplishment (Jacobs et.al, 1999). Therefore development would result in increased pace of
service use for social and economic well-being of society.
Development refers to improvements in literacy, life expectancy, rates of poverty, environmental
quality, freedom and social justice among other measures of social aspect of society (Abbot,
2003).
Baqir (2009) describes some of the famous development theories such as Modernization theory
(Rostow, 1990), Dependency theory (Amin, 1976), World System theory (Wallerstein, 2004),
State theory (Preston, 1996), Economic Development theory (Abbott, 2002), Social Development
(Szirmai, 2005) and discusses although a particular theory cann’t explain ICT-based development,
the economic theories of development are more helpful to explain ICT based development.
Concerning this fact, in the following lines some related studies about economic theories of
development will be discussed. Regarding these studies we could infer that economic
development is a situated and context-specific process. So ICT does not serve all societies equally
well as a tool for development.
Main focus in economic theories of development is to have an efficient market that the
production capacity for production, resources allocation, and market mechanisms for trade are
effective (Granovetter, M., 1985).
In neo-classical economic theory, economic growth relies on two fundamental assumptions
(Weintraub, 2007):
“- The rational behavior of economic agents including individuals and business
organizations”

24
 “- The capacity of market competition to eliminate inefficient producers and to create
equilibrium of production and consumption at optimal conditions of full employment
and the lowest consumer prices.”

Regarding this view, development could be defined all process, policies, procedures, and efforts
that help to transform the socio-economic regimes into such free markets. The policies to achieve
this kind of transformation are: removing existing barriers for trade and more reasonable
privatization. Avgerou argues governments following these implications need to play more
regulatory role of overseeing the legal framework that is required for the free market (Avgerou,
2002). Walsham and Avgerou (2000) discuss the lack of attention to this recent point has led to
an interpretation that the free market tends to ‘market failures’.
The most important questioning to the neo-classical economic viewpoint of development arises
from the New Institutional Economics (NIE) theory. The neo-classical theory is based on the
“rational individual choice”. NIE theory presumes the main idea of neo-classical theory in which
this theory is built, is unreal because individuals seldom have complete information about the
market (Toye, J. 1995). Accordingly, economic transactions demand the search for appropriate
information, and such a search necessarily involves costs. In addition, for minimizing risks,
economies need negotiations and formation of contracts and also mechanisms to implement
such contracts. Moreover, the rationality of individuals’ choices is more concerned with their
‘mental models’ (Douglass North 1995), that means individuals’ values about the world which are
formed culturally. As a whole, these items can lead to inefficient economies. NIE broadens the
analysis of rational behavior across cultural and political dimensions. It changes slightly attention
to the significance of institutions, that is, the formal rules and informal conventions that govern
the behavior of economic actors – whether individuals or firms. Institutions are significant
because they limit the scope of search of economic choices, thereby diminishing transaction
costs. They also lessen uncertainty by providing enforcement mechanisms. While market
competition prevail the core mechanism for enhancing efficiency, new institutional economies
shows non-economic and economic institutions play an important role in shaping the economy.
Avgerou (2009) argues that a network of organizations ise required to act in their own rights in
financial and capital markets, Also, independent regulatory authority play a crucial role in

25
providing rules and policies that influence the decisions of economic actors. As a matter of fact,
NIE concerns non-market institutions as mechanisms for controlling the costs and risks of the
market, thus serving the economic interests of rational individuals and firms.
In the specialized language of NIE, economic change is ‘path dependent’, in that it is constrained
by the historically developed institutions of a society (Douglass North, 1991).
Stiglitz (2002), criticize policies that aim to reduce the role of government in developing countries
as he argues that strong and effective government, rather than less government, is required for
the transition to effective markets. He contends some developing countries such as China and
Malaysia have done better in poverty alleviation and avoiding crises. Stiglitz (2002) argues that
governments in these countries have built the essential institutions regarding the particular
needs and concerns of their countries.
Other critics of neo-classical economic theory highlight the significance of politics in the
development process (Leftwich 2000). Leftwich (2000) states that the understanding of “market-
led development process” has been changed in two ways regarding to politics:
“First, it highlights the centrality of state government in shaping the course of
development. Second, it reinforces the contextual, historically contingent nature of a
society’s development process”.

Wade (1990) holds that the government in “developmental states” like South Korea, Singapore,
and China has interventionist role and use state power to manage market.
Studies of technology innovation in the “developmental states” have also unveiled the
significance of interventionist role of government in fostering high-tech industries, as well as in
steering technology innovation across industries (Freeman 1987; Hobday 1995; Archibugi and
Michie 1997).
Regarding above literature it is not surprising that efforts of different countries to benefit from
ICT as a development tool don’t have equal results. The contextual factors, the historically
developed institutions and social relations that embedded in a nation influence the scale, scope,
and speed of the desirable ICT-based socio-economic development impacts.

26
 2.2 Definition of socio-economic development

Contemporary approaches on development identify ICT as a requirement for economic growth

and the improvement of social conditions. Puri (2007) discussed the role of ICT in creating a
better world and referred to socio-economic development as a means to advance the less
developed countries. Hammed (2007) argues that ICT-based socio-economic development
considers number of areas that could gain by using ICT in each of these areas. In order to
understand the contribution of ICT to socio-economic development, it is important to first
understand the concept of socio-economic development.
A remarkable feature of the world at the beginning of the 21st century is the inequalities between
the socio-economic conditions of different countries. It seems appropriate to define socio-
economic development as a combination of socio and economic development. So first we define
social development and economic development separately.
The term social development is normally associated with changes in society that are considered
beneficial (Houtman, 2004). Social development may mean different things to different people
in different contexts. Social development refers to the opportunities for education, social
interactions and evolution of social customs, fashion and trends (Blakely, 2001).It is important to
find out what does social development specifically mean with in terms of the role of ICT in
bringing about social changes. Kozma (2005) explains social development as what follows:
“Social development is the set of broader social changes resulting from the convergence
of computers and communication technologies, their assimilation throughout society and
their use for communication, collaboration, and the sharing of knowledge. As ICTs become
more accessible and embedded in society they offer the potential to restructure
organizations, promote collaboration, increase democratic participation of citizens,
improve the transparency and responsiveness of governmental agencies, make education
and health care more widely available, foster cultural creativity, and enhance the social
integration of individuals with different abilities and groups of different cultural
backgrounds.”

27
On the other hand, Blakely (2001) states that economic development means job creation and
pervasive improvement in the quality of life and accelerated economic activities (Blakely, 2001).
World Bank (2008) defines economic development in terms of “qualitative change and
restructuring in a country's economy in connection with technological and social progress”.
Economic development refers to increase in economic wealth of regions or countries for the well-
being of their inhabitants (Abbott, 2002). The cornerstone of economic development efforts is
increased opportunities for economic activities including higher job availability and higher pay.
The literature shows a number of different measures for economic development in different
contexts. Some of these measures include quantitative numbers such as GDP growth, capacity of
market, employment, productivity. Baqir (2007) argues that the result of economic development
is improvement in social aspects of society like quality of life, poverty, learning opportunity,
healthcare opportunity, quality of pertinent, and democratization. The role of ICT and economic
development has been emphasized in the literature. There are several studies that examined ICT
based economic development in developing nations suggest that ICT growth has a close
relationship with economic development.
With respect to definition of social development and economic development the assertion that
“socio-economic development is a combination of socio and economic development” is
acceptable. However, Baqir (2009) believes that socio-economic development is a concept much
more than a mere combination of social and economic development. He states socio-economic
development is a multidisciplinary concept and is used in different academic discipline such as
sociology, psychology, economics, political science, geography, management and health sciences
to describe enhancement of quality of life for ordinary citizens.
From economics perspective, socio-economic development is considered as a “potpourri of
economic, social, cultural and political forces” (Lewis, 1954).
From sociology view, Socio-economic development refers literacy, information, freedom of
choice, social stability, autonomy, and social values (Ramos, 2006).
Moreover, Szirmai (2005) considers socio-economic development refers to income, learning
opportunity, human capabilities, politics, culture, ecology, health opportunity, life expectancy,

28
freedom (association and personal), personal safety, and the extent of participation in civil
society.
Blakeley (2000) argues that from political science view, socio-economic development considers
economic power, wealth, income, direct and indirect economic benefit such as job creation,
improvement in quality of life, and accelerated economic activities. In other world the concept
of socio-economic development is at the heart of political science.
Hsieh et.al. (2008) measures a concept as complex as socio-economic development in terms of
income and education. Even though Puri (2007) talks about socio-economic development as a
possible way of creating a better world. He does not give any further detail of what does creating
a better world entail? Hsieh, Rai and Keil (2008) analyzed behavior models of socio-economically
advantage and disadvantage to understand digital divide.

2.3 Dimensions of socio-economic development

The literature on dimensions of socio-economic development shows that there is no agreement

on the definition of this term and different academic fields such as political science, economics,
social science and sociology define this expression differently. Consequently the defined
dimensions for socio-economic development include various concepts. Concepts like
sustainability, living standards, well-being, empowerment and poverty alleviation have been
considered in existing literature (Choudhury, Zaman&Harahap, 2007).
Madon (2000) identifies four dimensions for socio-economic development within the context of
internet growth in developing countries. These four dimensions include:
“1) Social wellbeing, 2) economic growth, 3) political wellbeing, 4) physical environment”.
In addition, she distinguishes three application areas for internet within social wellbeing
dimension including: “health, 2) education and 3) poverty alleviation and empowerment.” One
internet application within economic growth dimension include: “economic productivity”, one
application of internet within political wellbeing dimension include: “democracy” and one
application area for internet within physical environment dimension include: “sustainable
development.”

29
 Table 2. Dimensions of socio-economic development within the context of internet

Socio-economic Dimensions Application Areas for Internet

Social wellbeing health, education, poverty alleviation and empowerment
economic growth Economic productivity
political wellbeing Democracy
physical environment Sustainable development

She represents the relationship among socio-economic development, internet growth and
dimensions of socio-economic development through figure 1.

Social wellbeing Economic growth

 Health  Economic productivity
 Education
 Poverty alleviation and empowerment

Political wellbeing
Physical environment
 Democracy
 Sustainable
development

Development

The Internet

Figure 1. Internet and socio-economic development; Conceptualizing the Interaction (Source: Madon, 2000)

In Baqir’s study (2009) five dimensions for socio-economic development have been identified.
These dimensions are based on qualitative data and have been defined by analyzing the citizens’
narratives in developing countries. These five dimensions include:
“1) Social contact, 2) economic transformation, 3) quality of life, 4) cultural evolution, 5) personal
security and criminal use.”
He represents these dimensions of socio-economic development through a model. Baqir (2009)
states the dimensions of socio-economic in his research extend the dimensions of socio-
economic that are defined by Madon (2000). He argue the “quality of life” dimension covers all

30
applications of internet which Madon (2000) was defined within “social wellbeing” and “political
wellbeing” dimensions. Also, Madon has not identified “personal security and criminal use” and
“cultural evolution” as dimensions of socio-economic development. Besides, “economic
transformation” demonstrates the impact of ICT on business whether it is positive or negative
while the “economic growth” with respect to economic productivity address to positive aspect
of ICT impacts on businesses.

2.4 Definition and evolution of ICT

ICT is a very diverse and heterogonous complex sector. Blurton (2002) defined ICT as a “diverse
set of technological tools and resources used to communicate, and to create, disseminate, store,
and manage information.”(Blurton, c., 2002). These technologies include computers, the
Internet, wireless networks, mobile broadband, broadcasting technologies (radio and television),
and telephony. Mansel (1994) states that ICT refers to “a myriad of stand-alone media as well as
computer-mediated networks that link a personal computer to the Internet. ICT is an integrated
system that incorporates the technology and infrastructure required to store, manipulate, deliver
and transmit information”. Jovanovic/Rousseau (2005) define ICT as a technology with special
and far-reaching characteristics. They state three main characteristic for ICT: (1)ICT is pervasive
and spreads to all sectors, (2) ICT improves over time and hence keeps lowering the costs for
users, and (3) ICT spawns innovation and facilitates research, development and market
introduction of new products, services or processes.
Information and communication technologies have provided new communication capabilities for
nations such as instant messaging, voice over internet protocol (VoIP), and video-conferencing.
Social networking websites provide facilities for their users to stay in contact and communicate
from all over the world on a regular basis.
The European information Technology Observatory (2009) categorized the ICT market into three
segments including: information technology (IT), telecommunications (TC), and consumer
electronics

31
Shapiro and Mathur (2011) have divided ICTs into two groups of activities. First, ICT producing
activities and second, ICT using activities. The first group activities will be categorized into two
sub groups including:
“- ICT producing manufacturing activities: are those which manufacture products intended
to fulfill the function of information processing and communication or must use electronic
processing to detect, measure or record physical phenomena or control of physical
process.
- ICT producing service activities: are those activities that produce service which are meant
to enable the function of information processing and communication by electronic
means.”
.
For a number of years, researcher and policy makers have made many efforts to measure the
importance of the "ICT sector". The lack of a standard definition for the ICT sector, made
impossible monitoring its impacts.
For the first time in 1997, at the OECD the Committee for Information, Computer and
Communications Policy (ICCP) established a research group to develop a standard definition for
the ICT sector. This group determined a definition for ICT sector on the basis of a list of industries
drawn from the third revision of the International Standard Industrial Classification (ISIC. rev.3).
The definition of ICT sector was revised in 2002, reflecting the release of ISIC Rev. 3.1 (United
Nations Statistics Division, 2002). After that this group made periodic reviews on ICT sector
definitions. In 2006 the revisions to ISIC Rev. 4 were completed and a good opportunity to review
the ICT sector definition was presented (UNSD, 2008). The OECD was an active participant in the
ISIC revision process and the classification includes improvements to ICT-related categories.
Shapiro and Mathur (2011) have stated ICT sector comprise four sub-industries: (1) computer
and electronic products; (2) publishing (including software); (3) information and data processing
services; and (4) computer systems design and related services.

32
 Table3. The OECD ICT sector definition (based on ISIC Rev. 4, 2006-2007)

Industry groupings ISIC Industry titles

2610 Manufacture of electronic components and boards
2620 Manufacture of computers and peripheral equipment
ICT manufacturing Manufacture of communication equipment
2630
industries 2640 Manufacture of consumer electronics
3230 Manufacture of magnetic and optical media
4651 Wholesale of computers, computer peripheral equipment and software
ICT trade industries 4652 Wholesale of electronic and telecommunications equipment and parts
5820 Software publishing
6110 6110 Wired telecommunications activities
6120 6120 Wireless telecommunications activities
6130 6130 Satellite telecommunications activities
6190 6190 Other telecommunications activities
6201 6201 Computer programming activities
ICT services industries 6202 6202 Computer consultancy and computer facilities management activities
6209 6209 Other information technology and computer service activities
6311 6311 Data processing, hosting and related activities
6312 6312 Web portals
9511 9511 Repair of computers and peripheral equipment
9512 9512 Repair of communication equipment
Source: From OECD (2006a). The codes and titles were checked against the final (November 2008) version of ISIC Rev. 4.

In the table 4 the evolution of ICT from early era to hyper-connected era has been shown. Hyper-
connectivity is redefining interactions among different factors of pertinent context. However this
phenomenon provide new opportunities to improve living standards, it can introduce new
threats concerning individual rights, privacy, the flow of personal data, cultural evolution and
cybercrime.
Table 4. evolution of ICT: from early era to hyper-connected era

1950 First commercial computer was announced

1953 Magnetic core memory first used
1954 First mass-produced computer (IBM 650)
Early Era 1957 First commercial FORTRAN program
or 1962 First interactive computer game
Mainframe Computing First networked computer
1964
Era BASIC programming language was created
Internet was invented
1969 First UNIX operating system
First computer controlled robot
1971 Email was invented
1972 First modern video game
First email client
1975
Mini Computing Era Microsoft Corporation was founded
1976 Apple computers were announced
Home gaming was born
1977
Stores begin to sell PCs

33
 First PC Modem was developed
1980 First Hard Disk Drive(HDD)
Electronic Data Exchange(EDI) VAN(Value Added Network) services
1981 started
MS-DOS released
1982 Commodore 64 released
Domain Name System was created
Client/Server 1984
Apple Macintosh was launched
Computing
Internet newsgroups were born(using internet-standard TCP/IP
Era 1986 connections)
Pixar is founded
1987 Internet growth
First computer virus
1988 Open Source Initiative(OSI) was founded (OSI is an organization dedicated
to promoting Open Source Software)
The World Wide Web was launched to the public
1991
Windows 3.0 was launched
1992 Linux was Launched ( the first open source operating system)
First Graphical Internet Browser
1993
Browsers such as Netscape launched
Development of common protocols for the evolution of World Wide Web
1994
Yahoo was created
World Wide Web
1995 Amazon, eBay were introduced(Internet shopping)
Era
Hotmail become first web-based email service
1996
Web TV was introduced
1997 The cable Modem was introduced
Google search engine was launched
1998
Windows 98 released
Salesforce.com launched as a company specializing in software as a service
1999
Napster was launched
Dot com bubble bursts
2000 Amazon played a key role in the development cloud computing by
modernizing their data centers
Use of broadband begin rising
2001
Wikipedia was launched(collective Web content generation)
Take part in the internet, blogging, chatting and social networking(Web
2004 2.0 became a mainstream concept)
Facebook was launched
Cloud Computing, YouTube was launched (bringing free online video hosting and sharing to
2005
Social Networking the masses
and Twitter was created
Mobile Internet Amazon launched Amazon Web Service(AWS)
2006
Era Java officially went 'open'. It was the largest source code released under
Open Source till date
2007 Mobile internet access or mobile web
First iPhone announced
Eucalyptus became the first open-source software for deploying private
2008
and hybrids clouds.
Salesforce launched Force.com(it is a cloud computing platform as a
2009 service system from salesforce.com
Mobile broadband access

34
 Microsoft launched windows 7
Cloud service got much needed boost with the launch of i-services for iPad
2010
and iPhones customers
Hyper-connected Era 2011 Several start-ups were founded that leverage the cloud services.
exponential growth of mobile broadband and social media are drivers of
2012
hyper-connectivity
Source: Author based on www.timetoast.com , www.internetsociety.com, www.darrenstraight.com , www.history-
timelines.org , www.timerime.com, www.library.thinkquest.org , www.ictlounge.com

2.5 ICT and development approaches

ICT and development research is based on the belief that ICT has, potentially, the capacity to
contribute towards the improvement of various aspects of life. Most of the ICT researches focus
just on the progressive impacts of ICT. In these type of literature ICT is considered merely as an
advancing tool that transform the socio-economic condition positively.
Eggleston (2002) believes the ICT technology improve the markets’ functions. He believes ICT
helps to reduce transaction cost and make efficient choices by providing information for both
producers and consumers (Eggleston et al. 2002). Porter et al. (2002b) in Global Competitiveness
Report 2001-2002 provide an analysis that differentiates the role of ICT for development in three
different groups of countries with specific socio-economic conditions including: low, medium,
and high income nations.
“At the low-income level, economic growth is determined mainly by the mobilization of
land, primary commodities and unskilled labor. At middle-income level, national
economies get integrated into the international production system and economic growth
is increasingly achieved by adopting foreign technologies in local production. Economies
at the high-income level achieve global competitiveness through rapid technology
innovation and high rates of learning, especially science-based learning.”

According to this report, the transformation impacts of ICT completely depend on to the capacity
and level of development of a country’s market economy. Indeed, the results of the report unveil
that
“The hardest transition along their three-stage model of development is from a
technology-importing, efficiency-based ‘middle’ level economy to the innovation-based,

35
 high-income knowledge economy. They point out that the challenge for policy lies in the
process of adaptation to new institutional conditions at the transition points of the
model.”

Most of the ICT and development studies are based on the premise that ICT can transform the
socio-economic conditions of a nation in a positive manner. (Mann 2004; Sahay 2001; Walsham
et al. 2007).
For instance in Kraemer et al. (2009) study and Ma et al. (2005) the development potential of ICT
is a taken-for-granted, however each of these studies have made particular assumptions about
the meaning and nature of the development process that ICTs are intended to contribute.
Among ICT and development studies, Heek (2002) and Avgerou (2009) have made notable efforts
to shed light on the some disturbing impacts of ICT.
Heeks (2002) categorizes related impacts of ICTs to the framework of two vectors. He determines
three perspectives regarding to the “ICTs impacts” (impacts continuum) from “optimism” to
“pessimism” on the vertical vector. At the beginning of this continuum are people which connect
ICTs with principally negative impacts (Pessimists) such as unemployment or criminal use. At the
midpoint of this continuum there are some people that believe ICTs have both positive and
negative impacts (neutrals) and at the end of this continuum are people who link ICTs with mostly
positive impacts (optimism). As well as he determines three perspectives with respect to “causes
of ICT impacts” (impact causes continuum) on the horizontal vector. At the beginning of this
horizontal continuum are “technological determinists” that believe it is principally innate
characteristics of technology that determine ICTs impacts. At the end of this continuum are
people that believe substantially human preferences within social context determine ICTs
impacts (social determinists). At the midpoint of this continuum are people who believe the
causes of impacts are either technological or social and it is contingent.
By combination of three point of views regarding to the ICT impacts and three viewpoints
concerning the causes of ICTs impacts, Heeks (2002) defines a framework consist of nine
distinguishing positions on ICTs and development. This framework could help us to better
conception of various positions on ICT-based socio-economic development.

36
Avgerou (2010) identifies two perspectives with concern to the nature of the ICT innovation
process and also two perspectives on the development transformation which ICT is understood
to contribute (ICT-enabled development). The perspectives regarding the nature of ICT
innovation process including “transfer and diffusion” and “socially embedded action”. The
perspectives related to the development transformation including “progressive transformation”
and “disruptive transformation”.

Progressive
transformation

ICT and development as ICT and development as

socio-economic socio-economic
improvements through improvements through
the transfer and diffusion locally situated action Socially
Innovation by
transfer and embedded
ICT does not necessarily ICT does not necessarily innovation
diffusion
result in development for result in development for
all: the transfer and all: it is subject to the
diffusion of ICT leads to power dynamics of IS
uneven development innovation action

Disruptive
transformation

Figure 2. Discourses on ICT and development (Source: Avgerou, Information technologies and
international development 2010)

By combination of four perspectives regarding the nature of the ICT innovation process and the
nature of the development transformation process, Avgerou (2010) defines four distinguishing
discourses on ICT and development. Regarding the results of this research she concludes that
studies on ICT-enabled socio-economic development remain weak.

2.6 The interaction between ICT expansion and socio-economic development

The UNDP report (2001) discusses how technological innovation enhances human capabilities.
On the other hand, human capabilities are an important means for achieving technological
innovation. Therefore, technology innovation and development are “mutually reinforcing,
creating a virtuous circle” (UNDP, 2001).

37
Gruber and Koutroumpis state that the relationship between ICT expansion and socio-economic
development should be addressed from two different aspects: first, the increase of socio-
economic development due to the increase in ICT infrastructure and its externalities; second, the
increase in the demand for ICT services due to higher socio-economic development (Gruber, H.,
Koutroumpis, P., 2011)
Walsham&Sahey (2006) argue that the potential of ICT in transforming the socio-economic
condition of a nation can be investigated in the form of several dimensions.
Baqir’s study (2009) reveals that the nature of ICT expansion and socio-economic development
interaction could be explained by five major concepts. These five concepts are “policy
development”, “enabling legislations”, “planning”, “affordability”, and “availability”.
Stages of Socio-Economic Development

Success Stories
Actualization
Socio-Economic Development
Growth Affordability Availability

Shaping Policy Development Enabling Legislation Planning

Stakeholder

Policy Makers and Enforcers, Service Providers, Hardware Industry, Electronic and Print Media,
Citizens, Activists and NGOs, Educational Institutions, Healthcare institutions, Law Enforcement

Awareness Globalization Regional Competition Success Stories

Figure 3. ICT expansion and socio-economic development (Source: Baqir, 2009)

A framework of the stages of socio-economic development is developed by Baqir (2009). These

stages are “awareness”, “shaping”, “growth”, and “actualization” respectively. The first stage is
reached by increasing the awareness of stakeholder about the benefits of ICT based socio-
economic development around the world (global development), in neighboring countries
(regional competition) and success stories. Awareness regarding success practices of the ICT
based socio-economic development, stimulate stakeholder to shaping the environment through
developing policy, enabling legislation and drawing plan. Shaping stage make appropriate
environment for the next stage, growth. These shaping efforts create an environment for ICT
growth (affordable and available services). The growth stage leads to actualization of socio-

38
economic development that is the last stage. Finally the success stories resulting from
actualization of socio-economic development, besides global development in ICT sector and
regional competition create a condition for the next repetition of socio-economic development
stages.

2.7 Features of framework which are used by international organizations to

model ICT contribution to socio-economic development

Over the past years, many international organizations such as International telecommunication
Union (ITU), World Bank and World economic Forum attempt to monitor and measure the level
of ICT development in developed and developing nations. The attention of international
organization to measuring ICT development and ranking economies with regards to ICT indices
shows the importance of ICT in social and economic transformation. So, exploring some of these
measures and finding their association with socio-economic situation of economies could allow
us to understand the interrelations among various viewpoints of ICT development and also the
development impacts of ICTs. Furthermore, we aim to find out which of these measures focus
not only on output indicators, but also on impact metrics such as the impacts of ICT development
on social and economic development.

2.7.1 Networked Readiness Index (NRI)

The Networked Readiness Index (NRI) framework was launched in 2002 to assess ICT for
competitiveness and development in different nations. The NRI became the most exhaustive
framework for estimating nations in the use of ICT with respect to main interest groups namely,
individuals, businesses, governments.
Due to ICT has become global and “ubiquitous” the policy attention has been focused on making
the best use of this technology to enhancing social and economic aspects of nations rather than
just providing access. Consequently, the framework and definition of some indices such as NRI
have been modified in line with these changes. In the global information technology report
(World Economic Forum, 2012) has been introduced a new edition of NRI framework. This
modified framework is based on five main ideas including:

39
1) In evolving NRI framework, aspects related to ICT readiness and ICT usage are key
precedents to acquire any other impacts. It means ICT impacts will appear if this
technology is used by individuals, businesses and governments.
2) This framework includes features to find out whether the social and economic
environment of a nation (market condition, regulatory framework) has enough capacity
to benefit from ICT. It means enabling environment is another precedent to obtaining
more economic and social benefits.
3) Evolving NRI framework contains features to measure both social and economic impacts
of ICT. This framework is introducing an ICT impact sub-index separating from usage.
4) The interaction among all factors within an ICT ecosystem and consequently, starting a
“virtuous cycle” is another feature of new NRI framework. High rate of ICT use and more
positive impacts result in driving various actors to continue improving NRI framework
conditions and consequently, improving more impacts and benefits.
5) The NRI new framework must comprise features to identify policy orientations. Since the
development of ICT associates with the capability of a nation to provide an “institutional
framework” with effective regulations and ICT-friendly government policy so, this feature
is so important.

DRIVERS IMPACTS

Environme
Infrastructu Individual Economic
re

Affordabili Skill Business Governme

ty s nt
Social
Readines Usage
s

Figure 4. The evolved NRI framework (Source: the global information technology report, 2012)

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As you see the evolving NRI, include 4 sub-indices. These are 1) environment, 2) readiness, 3)
actual usage of all key actors and 4) social/economic impacts. The three former are considered
as condition drivers for latter sub-index. These sub-indices are categorized to 10 pillars and 53
variables. The NRI score is calculated through a simple average of the four composing sun-index
scores.

Table 5. The elements of Network Readiness Index (NRI)

Sub-index Pillars Variables

Effectiveness of law-making bodies, Laws relating to
ICT, Judicial independence, Efficiency of legal
framework in settling disputes, Efficiency of legal
Political and regulatory environment framework in challenging regulations, Intellectual
property protection, Software piracy rate, Number of
procedures to enforce a contract, Time to enforce a
contract
Environment Availability of latest technologies, Venture capital
availability, Total tax rate, Time required to start a
business, Number of procedures required to start a
Business and innovation environment business, Intensity of local competition, Tertiary
education enrollment rate, Quality of management
schools, Government procurement of advanced
technology products
Electricity production, Mobile network coverage rate,
Infrastructure and digital content International Internet bandwidth per Internet user,
Secure Internet servers, Accessibility of digital content
Mobile cellular tariffs, Fixed broadband Internet tariffs,
Readiness Affordability Internet and telephony sectors competition index,
Quality of the educational system, Quality of math and
Skills science education, Secondary enrollment rate, Adult
literacy rate,
Mobile telephone subscriptions, Internet users,
Households with a personal computer, Households
Individual usage with Internet access, Fixed broadband Internet
subscriptions, Mobile broadband Internet
subscriptions, Use of virtual social networks,
Usage Firm-level technology absorption, Capacity for
Business usage innovation, PCT patent applications, Extent of business
Internet use, Extent of staff training,
Government prioritization of ICT, Importance of ICT to
Government usage government vision of the future, Government Online
Service Index,
Impact of ICT on new services and products, PCT ICT
patent applications, Impact of ICT on new
Economic impacts organizational models, Employment in knowledge-
Impact intensive activities,
Impact of ICT on access to basic services, Internet
Social impacts access in schools, ICT use and government efficiency, E-
Participation Index

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 2.7.2 Digitization

Digitization means “the mass adoption of connected digital technologies and application by
consumers, enterprises, and governments”. Friedrich and et al. (2012) believe that digitization
provide economic social and political benefits.
In the Global Information Technology report (2012) the amount of a nation’s digitization is
determined through six components and 24 indicators. Also four separate phases is defined with
respect to the digitization score which a country is obtained on a scale of 0 to 100. These four
development phase that shows the level of digitization are called: a) “constrained economies”
with digitization score less than 25, b) “emerging economies” with digitization score between 25
and 30, c) “transitional economies” with digitization score between 30 and 40 and d) “advanced
economies” with digitization score more than 40.
These six components and 24 variables are according the following table:

Table6. The digitization score with respect to digitization attributes

Attributes Definition of attributes Variables The stage of digitization

Fixed broadband penetration
Extent to which consumers
Mobile phone penetration
and enterprises have
Ubiquity Mobile broadband penetration
universal access to digital constrained economies: face
PC population penetration
services and applications 3G mobile connection penetration challenges in basic digitization
Extent to which digital Fixed-line installation cost building blocks such as access and
Fixed cost per minute affordability
services are priced in a range
Affordability Mobile connection fee
that makes them available to
Mobile prepaid tariff
as many people as possible Fixed broadband Internet access tariff
Quality of available digital Investment per subscriber (mobile, broadband, and Emerging economies: face
Reliability
services fixed) challenges in reliability
International Internet bandwidth (bits/second/
Extent to which digital
Internet user)
Speed services can be accessed in
Broadband speeds (peak Mb/s, average Mb/s): %
real time above 2 Mb/s
Internet retail as % of total retail
E-government web measure index Transitional economies: show
Ease of use for digital services % of individuals using the Internet minor advances in the speed,
Data as % of wireless ARPU (average revenue per usability and skill indexes
and the ability of local
Usability user)
ecosystems to boost adoption Domains by country per 100 inhabitants
of these services IP addresses per 100 inhabitants
Social Network Unique Visitors per month
Average SMS usage per customer
Engineers per 100 inhabitants

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Skill Ability of users to incorporate Advanced economies: These
digital services into their lives countries have made significant strides
and businesses % of labor force with more than secondary in addressing ICT usability and
developing a talent base to take
education
advantage of available technologies,
products, and services while improving
the speed and quality of digital services

Source: Global Information Technology report(2012), data from ITU, Ovum, Euromonitor, Akamai, ILO (Laborsta), Global Insight, UN, WCDM,
Webometrics, Bgexpert, Internet World Stats, UNESCO, Wireless Intelligence, and Telecom Advisory Services; Booz & Company analysis.

The digitization attributes are as the following line:

1) “Ubiquity: the extent to which consumers and enterprises have universal access to digital
services and applications” (ITU’s World Telecommunication/ ICT Indicators, Hartley and
Mackenzie 2009, and Wireless Intelligence.)
2) “Affordability: the extent to which digital services are priced in a range that makes them
available to as many people as possible”( ITU’s World Telecommunication/ ICT Indicators
and the World data Bank World Development Indicators )
3) “Reliability: the quality of available digital services” (ITU’s World Telecommunication/ICT
Indicators.)
4) “Speed: the extent to which digital services can be accessed in real time” (ITU’s World
Telecommunication/ICT Indicators and Akamai State of the Internet report, 2010)
5) “Usability: the ease of use of digital services and the ability of local ecosystems to boost
adoption of these services” (Euro monitor World Retail Data and Statistics, the UNPAN’s
“E-government Web measure index,” ITU’s World Telecommunication/ ICT Indicators,
Webometrics, Bgexpert, and Internet World Stats, Wireless Intelligence. )
6) “Skill: the ability of users to incorporate digital services into their lives and businesses” (
The UNESCO Institutes for Statistics)

Also this composite index -digitization- has contribution to social, political and economic aspects
of an economies and its effect will differ regarding the digitization’s level of this nation. It means
that economic impacts of digitization speed up as nations move from “constrained” economies

43
to “emerging” economies or from “emerging” to “transitional” economies or finally, from
transitional economies to advanced economies (Sabbagh and et al., 2012).
However many studies often apply the level of inequality in a society to measure the social
impacts (as measured by GINI coefficient), Sabbagh and et al. (2012) have analyzed social impact
of digitization with respect to two areas;
1) The level of quality of life in a society
2) The quality of access to basic services that a society requires

The indices are used to estimate first area are “Wellbeing Thriving” index (The Gallup Wellbeing
Thriving Index) and “Better Life” index (Organization for Economic Co-operation and
Development, the OECD Better Life Index).
The index is used to estimate the second area is “Human Development Index” (The UNDP Human
Development Index (HDI), 2010).
The result of analysis shows that these three indices are correlated with the level of digitization
and as nations mature in to greater digitization, the degree of these indices will increase. Sabbagh
and et al. (2012) also analyzed the impact of digitization on government effectiveness in three
areas: 1) the transparency of governmental activities through Corruption Perception index
(Corruption Perception Index), 2) the delivery of e-government services through E-government
Development index (UNPAN E-government Surveys), 3) provisioning of public education through
Inequality-Adjusted Education index (UNDP Human Development Index, 2010). The result of
analyzes on government effectiveness shows that as nations transform into more digitization,
effectiveness of e-government services, transparency of society and delivery of basic government
services such as public education will improve.

2.7.3 The Information Society Measure

International Telecommunication Union (ITU) publishes annually the Information Society reports.
These reports trace information society development through two composite indices including:
the ICT Development Index (IDI) and the ICT Price Basket (IPB). This report reveals valuable

44
information concerning the trend of ICT development in both developed and developing
countries and its impact on social and economic aspects of nations.
The ICT development Index (IDI) measures the level of ICT development in both developed and
developing countries. Through this index the advance in ICT development in nations and also the
extent to which these nations can make use of ICTs to enhance growth and development could
be monitored. (ITU. 2012)

ICT Readiness ICT Use ICT Impact

(infrastructure (intensity) (outcomes)
access)

ICT Development ICT Capability

Index ( skills)

Figure 5. Three stages in the evolution towards an information society (Source: ITU)

It is necessary for countries are transiting toward knowledge-based society or information society
to be aware that ICTs can be development enabler if applied properly. So, IDI’s conceptual
framework defines three key steps to passing ICT development process and becoming an
information society. These three steps are ICT readiness, ICT intensity and ICT impacts. To pass
these steps a combination of three factors are crucial. These factors are the availability of ICT
infrastructure and access, a high level of ICT usage, and the capability to use ICTs effectively. All
these factors correspond to sub-indices of IDI including: ICT access, ICT use and ICT skills.

 ICT Development Index (IDI)

The IDI is a composite index combining 11 indices into one benchmark value (scale of 0 to 10)
and is divided into three sub-indices including: 1) Access indices, 2) Use indices and 3) Skill indices.
The indicators included in these three sub-indices are as following table:

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 Table 7. IDI indicators

Steps to become an Crucial factors to IDI Indicators in each

information society passing information sub-index IDI sub-index
society steps (corresponds factors)
Fixed telephone line penetration
Step1:
Mobile cellular penetration
ICT readiness: reflecting the the availability of ICT
International internet bandwidth per
level of networked infrastructure and ICT Access
internet user
infrastructure and access to access
Proportion of households with computer
ICTs
Proportion of households with internet
Internet user per 100 inhabitants
Step2:
Fixed broadband subscribers per 100
ICT intensity: reflecting the a high level of ICT
ICT Use inhabitants
level of use of ICTs in the usage
Mobile broad subscriptions per 100
society
inhabitants
Step3: ICT skills Adult literacy rate
ICT impact : reflecting the the capability to use (Maximizing the impact Secondary gross enrolment ratio
result/outcome of efficient ICTs effectively of ICTs depends on) Tertiary gross enrolment ratio
and effective ICT use
Source: ITU, the information society report, 2012

The result of IDI measure in 2011 demonstrates that the Republic Korea stands at first and
Sweden follows it. The other top ten countries are Denmark, Iceland, Finland, the Netherland,
Luxembourg, japan, the United Kingdom and Switzerland. The global average score of IDI is 4.15
and that regional average score of the Arab States region and the African countries are below the
global average score of IDI. The increase of IDI values of all 155 countries included in the research
shows the incremental growth of ICT in all over the world. The values of IDI in developed country
are approximately twice greater than IDI values in developing country. It means that digital divide
between developed and developing nations is considerable. The greatest change rates in IDI
value over 2010 and 2011 related to developing countries that it shows quick growth of ICT
infrastructures and ICT services (ITU, 2012).

 ICT Price Basket(IPB):

The demand and spread of ICT services associate with the price of these services. Prices strongly
influence willingness to subscribe to a service. So, in measuring the information society not only

46
the IDI that consider availability, usage and capability are important, but also addressing the price
and affordability of ICT services are imperative.
The ICT Price Basket (IPB) follows the affordability of ICT services in countries. This tool provides
helpful information on the cost of ICT services such as fixed-telephone, mobile-cellular and fixed-
broadband services. For this aim, it synthesizes the tariff of fixed-telephone, mobile-cellular and
fixed-broadband internet into one measure and set in order nations based on the its tariff, in
relation to gross national income (% of GNI per capita).
The last edition of IPB value in 2011 shows that the affordability of these ICT services are
increased in both developed and developing countries. But in the least developed countries
(LDCs) - much low income- these ICT services are less affordable. The IPB also shows that most
of the countries with highest income levels have the most affordable ICT services. The result of
IPB values in 2011 demonstrate that the Macao (china) stands at first and Norway follows it. The
other top ten countries are Singapore, Qatar, Luxembourg, the United Arab Emirates, Denmark,
Hong Kong(China), Sweden and the United States. The greatest reduction in mobile-cellular price
in developed nations reveals that notable competition and high liberalization have remarkable
effect on decreasing price of services. Also, in developed countries the mobile broadband service
is more affordable than developing countries, but in developing countries the mobile broadband
is more affordable than fixed-broadband because the latter require much larger infrastructure
investments.

2.7.4 ICT Performance Measure

Information communication technology for Development (IC4D) is a regular publication of the

World Bank on the critical role of information and communication technology (ICT) in
socioeconomic development. The IC4D 2009 introduces a new performance measures (scored
among 1 to 10) in terms of access to ICT, affordability of ICT and ICT adoption in government and
business. Through ICT performance measures, policy makers could compare their own ICT
performance in opposition to other nations and also monitor the ICT progress path. The
populations of all 150 countries which are included in the calculation of ICT performance
measures are more than one million.

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 Table 8. Dimensions and indicators of ICT performance measure

Dimensions Indicators
 Telephone lines (per 100 people)
 Mobile cellular subscriptions (per 100 people)
Access to ICT  Internet users (per 100 people)
 Personal computers (per 100 people)
 Households with a television set (%)
 Price basket for residential fixed line (% of monthly GNI per capita)
Affordability of ICT  Price basket for mobile call (% of monthly GNI per capita)
 Price basket for Internet (% of monthly GNI per capita)
 United Nations Web Measure Index
Adoption of ICT application
 Secure Internet servers (per 1 million people)
Source: World Bank, world development indicators (WDI) database.

The result of ICT performance measures of different nations shows that there is a strong
association between level of countries income and the ICT performance measures. It means that
the average values of all three dimensions of ICT performance measure for high income countries
are between 9 and 9.06. These measures for countries with low income are between 2.14 and
2.50. While low ICT performance of latter countries is to some extent the consequence of low
average level, it is to a large extent because of restricted competition, weak regulation and
absence of both private investment and foreign direct investment (FDI). On the other hand,
countries with strong ICT performance measures have effectual regulation, strong institutions to
enforce fair competition, liberalized ICT industries and supportive government.

2.8 Concrete evidence of ICT contribution to socio-economic development

2.8.1 Socio-economic impacts of mobile broadband

Mobile broadband is defined as “any mobile or cellular technology that delivers minimum data
rates in the hundreds of kilobits per second(kb/s) to end users and peak rates in the Megabits per
second (Mb/s)”(Bold and et al. 2012).
Mobile broadband term is the marketing term for wireless internet access through a portable
modem, mobile phone, USB wireless modem, or other mobile services. Although broadband has
a technical meaning, wireless-carrier marketing uses the phrase “mobile broadband” as a
synonym for internet access. In Wireless Intelligent database (2012) is predicted more than

48
eighty percent of broadband connections will be mobile by 2016. Data services over mobile
networks or high-speed access to the internet, deliver transformative impact and has great
potential to improve societies and empower individuals.
For instance, In Taiwan, China mobile broadband technologies are predicted to contribute
US$11.6 billion to the economy by 2016, an equivalent of 1.8 percent of GDP (Analysys Mason
2011b).
The quick expansion of mobile broadband is establishing smartphones as the most extensive
internet access device. Gartner (2011) reported that total downloads of mobile applications
reached 8 billion in 2010 and should surpass 100 billion by 2016 (Gartner, 2011c). In South Africa
smartphones and mobile broadband technologies are used by nurses to improve access to
healthcare within communities (Qualcomm, 2011).
Mobile broadband has the potential to affect different aspects of people’s life in societies like
employment, healthcare, and education.
In the healthcare sector, mobile healthcare applications enable governments to provide access
to quick and cost effective healthcare services for their people. China’s Wireless “Heart Health
project” is deploying a “3G-enabled cardiovascular screening and monitoring system” among
resource-scarce community health clinics (Qualcomm, 2010). This project demonstrates how 3G
mobile broadband can provide healthcare services for removed and underserved areas.
A study (Juniper Research, 2011) on the market of remote screening of patients which using
mobile networks shows that this market will increase to US$1.9 billion by 2015.
Also there is more evidence that in low and medium income countries, women with access to
mobile broadband take advantage of more educational and healthcare opportunities (Hood, L.
2011).
Accordingly, mobile broadband can enable individuals participate in managing their own health
and thus make better their quality of life.

2.8.2 ICT contribution to GDP growth

During the 1990’s ICT Technologies have contributed to acceleration in GDP and labor
productivity growth rates in a number of developed countries, in particular in the US. This has

49
been evidenced by numerous research results on the impact of ICT on macro, industry and micro-
level. For instance, Jorgenson (2001), Jorgenson and Stiroh (2000), Oliner and Sichel (2002),
Stiroh (2002a) focused on Macro level on USA; Colecchiaand Schreyer (2001), van Ark et al.
(2002), Daveri (2002), Jalava and Pohjola (2002) explored the impacts of ICT on the EU-15
countries; Stiroh (2002b), Timmer et. al. (2003) and OECD (2003) examined the impacts of ICT on
the industry level in the US and the EU and finally, OECD (2004, 2003) addressed on micro level
in the US and the EU.
The methodology of measuring the contribution of ICT to growth and productivity is based on
original work by Solow (1957) and Jorgenson and Griliches (1968) and later extended by inter alia
Oliner and Sichel (2000) and Jorgenson and Stiroh (2000).
ICT enterprises have direct contributions in GDP growth from their own operations and also have
indirect contributions through the benefits other sectors derived from the use of ICT. The studies
of the impacts of ICT on the firm-level suggest factors that under these conditions/factors the ICT
use is gainful for firms. For instance Gretton et al. (2004) reported that positive effects of ICT use
on multifactor productivity correlated to the level of human capital’s skills. Arvanitis (2004) found
out that if ICT investment is accompanied with organizational changes, firms could gain more
advantages. Also, numbers of studies propose a strong association between the use of ICT and
firms’ capability in innovation. Baldwin, et al. (2004) shows this factor effects firms’ adoption in
term of advanced technologies. Moreover, several evidence suggests the effect of ICT is different
across firms with respect to size and age of firm (Maliranta and Rouvinen, 2004).
Piatkowski (2004) believes that ICT sector can impact economic growth through four channels in
order to ICT products and services are both outputs from the ICT industries and inputs into ICT-
using industries.
These four channels are as what follows:
“1. Production of ICT goods and services, which directly contributes to the aggregate value
added generated in an economy. The direct contribution of ICT production can be
estimated through multiplication of the nominal share of ICT production in GDP by a real
growth rate of the value of ICT production.

50
 2. Increase in total factor productivity (TFP) of production in ICT sector, which contributes
to aggregate TFP growth in an economy;
3. Use of ICT capital as in input in the production of other goods and services; ICT capital
has higher marginal rates of return than non-ICT capital. Hence, ICT investment enhances
the quality of growth as any increase in the share of ICT capital in the overall capital stock
results in higher growth of output (Jorgenson 2001).
4. Contribution to economy-wide TFP from increase in productivity in non-ICT producing
sectors induced by the production and use of ICT (spillover effects); ICT can add to growth
also through the so-called spillover effects of ICT production and use. Spillover effects can
be defined as acceleration in TFP growth on macro, industry or micro level due to indirect
productivity-stimulating effects of ICT production and/or use.”

2.9 ICT and Hyper-connectivity phenomenon

Over the past decade, the world has become increasingly “hyper-connected”. So in analyzing ICT
contribution to socio-economic development, the “hyper-connectivity” phenomenon must be
taken into account.
The term refers to several means of communication and ICT impact on personal social and
organizational behavior. Fredette et al. argue six key attributes of hyper-connectivity
phenomenon in Global Information Technology Report (2012).
These attributes are: 1) “always on”, 2) “readily accessible”, 3) “information rich”, 4)
“interactive”, 5) “not just about people”, and 6) “always recording”.
With respect to these attributes “hyper-connectivity” is driving great changes in variety fields
such as education, healthcare, labor force, political sphere, sustainable environment and climate
changes.
“Hyper-connectivity” provide noticeable advantages in “neo-urbanization”, like upgrading
standards of living in remote area and quick development of smaller cities that would be able to
bring a lot of facilities that characterize metropolitan regions. (followwill et al. 2010).
On the political sphere, due to the availability of connectivity anywhere and at any time,
governments and political institutions are under pressure to revise their functions and process.

51
So the smart government is becoming an integral part in most governmental model (Bittinger,
2011).
As a key component of smart governance, “mobile government” or “m-government” provide a
rapid and simple way to communicating with people (Eskandar et al. 2011).
In the field of education, hyper-connectivity provide more opportunities of online leaning and
“virtual education”. This trend has been described as “ed-YOU-cation” 8 which indicates the
potential of technology to provide anytime and anywhere learning plans.
“Hyper-connectivity” is influencing healthcare too. The “Machine-to-machine-to-human”
(M2M2H) solution can enhance remote care and support patient care (Media Lab Asia, 2005).
Consequently, the healthcare costs will be reduced surprisingly.
Due to the “hyper-connectivity”, new business models are emerging and business environment
is changing a lot. “Hyper-connectivity” phenomenon will transform the supply chain and facilitate
interactions among manufacturers, suppliers, customers and remote distribution points in a well-
organized process. (European commission, 2008). By the same token, enterprise managers
should be able to respond in an active procedure to what clients and customers are saying to
each other. In a nutshell, the hyper-connectivity phenomenon require 24/7 interaction with
clients through various ways, mainly web (Cole and Brillhart, 2011).
“Hyper-connectivity” has a great effect on the workforce and organizing the labor force. Part and
parcel of today’s workforce is using different technologies to keep connection with business
networks to enhance productivity. Emerging the “non-linear career paths” stem from hyper-
connectivity phenomenon. People have “multi-careers” and “multi-occupational” working lives
(Verdon, 2010). The global information technology report (GITR report, 2012) puts forth 10 forces
that identify the future of working world in 2020. These forces include: 1) “globalization”, 2) “the
millennial generation”, 3) “culture of connectivity”, 4) “the knowledge economy”, 5) “social
learning”, 6) “corporate social responsibility”, 7) “participation”, 8) “the digital workplace”, 9)
“mobile technology”, and 10) “demographics”.
In the sustainability field, since many activities such as government-related, education,
healthcare and business can come to pass in virtual environment so it will decrease carbon

8 . http://edyoucation.wordpress.com

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emissions (Robert, 2011). The climate Group (2008), argue that proper application of ICT result
in “the reduction of carbon footprint of other sectors by nearly five times the consumption of the
ICT sectors themselves.” By and large, the appearance of hyper-connectivity could drive
considerable effects on climate change by enabling the intelligent transport system, encouraging
“eco-driving” and optimizing journey management like “pay-as-you-go” pricing for road usage
(Ferreira, 2011).
The technologies that enable hyper-connectivity can be either have promising or disturbing
impacts. Their impact absolutely depend on the context these technologies are used.
Events in MENA region (Middle East and North Africa) the political changes that are called “Arab
Spring” show how “hyper-connectivity” has become the accelerator of political movement and
socio-economic changes. So the main issue regarding the related hyper-connected tools is
deploying these tools to gain the most advantages and never make them go away. On this basis
the vital matter that government leaders, policy makers and business managers must take into
consideration is how they prepare users about possible security vulnerabilities and functional
solutions (Pedley 2011).

2.10 Need for developing an Ecosystem Framework to investigate ICT contribution

to socio-economic development

In previous sections some theories, approaches and evidence were proposed that unveils the ICT
has a great capacity to contribute towards the improvement of various aspects of life (Kraemer
et al. 2009, Walsham et al. 2007, Mann 2004, and Sahay 2001).
Regarding socio-economic view of development as the main concern of this research, perhaps it
would be so difficult to explain ICT-based socio-economic development through a specific theory
per se, although taking advantage of the theories of development may be fruitful in this way. For
instance, North (1991) from neo-institutionalism point of view believes that economic change is
“path dependent”, so that it is constrained by the historically developed institutions in a society.
This argument implies that development is a “context-specific” process that is intertwined with
autochthonous politics and historically-formed institutions. So it is not amazing that ICT as an
instrument for development does not benefit all societies to the same extent. Therefore the

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social relations embedded within nations may extremely change the scope, scale and speed of
desirable impacts of ICT based development.
Moreover, taking a look at different structures that were employed by international organization,
show us that one of the main approach to improve ICT contribution to development is providing
access to ICT services and networks in order to enhance ICT usage by people. On the basis of this
approach, investment in ICT infrastructures and networks are regarded as a national initiative
with the high priority for the countries. Subsequently, some composite indices were launched
which directly and indirectly impose this view to ICT sector enhancement such as “ICT
performance measure”, “information society measure”, “ICT development index”, “digitization
index”, and “network readiness index”. Then, countries are divided in terms of their ICT
infrastructure development which this has resulted in a new expression named “digital divide”
as a new form of inequality in the world.
Nevertheless, some new views have been gradually evolved that form a new approach to
investigate the ICT impacts on social and economic status of the countries. In line with this
approach, some studies have addressed to ICT as a tool for social and economic advancements
within a market regime and have clarified the conditions under which ICT plays this kind of
developmental role. For instance, the report of UNDP (2001) tries to find a plain relation between
ICT technology and admirable development affects particularly the internet. UNDP report
attempts to qualify how technology, especially ICT, is ‘enabling’ development effects. Although
the authors of the report explicitly recognize that technology may well be “a reward of
development”, rather than being a tool for development, they are eager to abandon this
interpretation and convince readers that “technology is a tool for, not just a reward of
development”.
However, the framework and definition of some these composite indices have been modified in
line with ICT evolution and emerging the hyper-connectivity phenomenon, existing view of “stage
by stage development” influence ICT indices. It means countries are being classified with respect
to their position on the stages of ICT development path. This stage by stage development are
illustrated by S-curve

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All in all, main literature gaps regarding existing literature particularly when it comes to the ICT
contribution to socio-economic development are as what follows:
• Interactions between ICT and development is often regarded from one specific aspect
(social, economic, cultural or political), so existing literature is fragmented;
• The lack of research which pays attention to both Disturbing and Promising impacts of
ICT;
• The lack of framework which pays attention to all contextual factors and ICT key players,
simultaneously due to explore ICT contribution to socio-economic development.
• The lack of practical and comprehensive definition for ICT-based socio-economic
development
• Paying less attention to characteristics of hyper-connectivity phenomenon in studies
related to ICT contribution to socio-economic development.

To narrow mentioned literature gaps, there is a need for an integrated and comprehensive
framework that would explain the contribution of ICT to socio-economic development by taking
advantage of ecosystem perspective.
To sum up, the existing literature concerning ICT-based socio-economic development is not
integrated and well-structured and this gap indicates that there is no general agreement on the
definition and main elements of this term and various academic disciplines and fields define
elements of this phenomenon differently. Consequently, there is a wide range of various and
dispersed definition and elements for ICT-based socio-economic development.
This research considering all aforementioned literatures put forth a new integrated ecosystem
framework that contains all interacting entities of ICT-based socio-economic development,
interactions among these entities, main components of pertinent context, and finally dimensions
of ICT-based socio-economic development (as the outcomes of ecosystem framework) that helps
us to conceptualize and explore ICT contribution to socio-economic development.

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 2.11 Theoretical background of ICT-based socio-economic development (ISED)
ecosystem framework

As explained in section 2.10 the main objective of this research is developing an ICT-based socio-
economic development (ISED) ecosystem framework to narrow mentioned literature gaps. To
elaborate such ecosystem framework guiding us to conceptualize ICT contribution to socio-
economic development, I have got a lot of benefit from the Sen’s capability approach (1999) as
an analytical framework, the choice framework (klein, 2010) and sustainable livelihood
framework (DFID,1999). Also I have largely taken advantage of the Fransman’s ecosystem
perspective (2010) to visualize ISED ecosystem framework.

Capability Approach Choice Framework & Sustainable Ecosystem perspective

Livelihood Framework (SLF)
Freedoms that suggested by Is applied to conceptualize and
Sen are applied as dimensions Capital portfolio of SLF is applied as visualize the main ICT
of ICT-based socio-economic initial input to elaborate the capital interacting entities and
development portfolio of ISED ecosystem interactions’ dimensions of ISED
framework ecosystem framework

Above concepts formed the initial structure of

ICT-based socio-economic development
Ecosystem Framework

Figure 6. Theoretical background of ecosystem framework

In the following lines these concepts have been explained briefly.

2.11.1 Capability Approach

Several scholars have applied the capability approach (CA) for ICT for development (ICT4D)
studies, e.g. in terms of using the CA as an analytical framework, including (Grunfeld et al., 2011;
Walsham, 2010; Zheng & Walsham, 2008; Barja & Gigler, 2007; De, 2007; Zheng, 2007; Walsham
& Sahay, 2006). The attention in much of these literature was given to users’ capabilities to
benefit from ICT technologies to obtain desired functioning.

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However the increasing understanding that various aspects of ICT4D could be analyzed trough
the CA, a few number of published researches has applied the CA to clarify the mechanisms
through which ICT can contribute to capabilities, particularly from the perspective of the
freedoms identified by Sen as being helpful “to the overall freedom people have to live the way
they would like to live” (Sen, 2001). Researchers who concentrated on the freedoms in Sen’s
capability approach such as De (2007) was not done from the users’ overview, but rather as a
perspective of intended and unintended consequences of a land records system.
Moreover, Walsham (2010) in exploring ICT contribution to the broader development of India,
applied Sen’s freedoms not as an interpretive research approach. He employed these concept
just as literature.
In this research the capability approach has been used to determine the main dimensions of ICT-
based socio-economic development. In applying the CA to identify dimensions and sub-
dimensions of ICT-based socio-economic development, we have focused on capabilities of people
which are increased by ICT deployment to achieve freedoms at the country level. To do this, we
focus on five freedoms that suggested by Sen that are 1) political freedom, 2) economic facilities,
3) social opportunities, 4) transparency guarantees and 5) protective security. He believes that
these five freedoms would contribute to the general capabilities of people to live more freely.

2.11.2 Choice Framework and sustainable livelihood framework

Most of the development approaches mainly focus just on economic growth that is not enough
broad to grasp the multi-lateral impacts of ICT with respect to individuals’ choices. The most
significant questioning to the growth-focused perspective of development has attained from
Amartya Sen’s capability approach. Sen defined development as
“A process of expanding the real freedoms that people enjoy to lead the lives they have
reason to value”

Kleine (2010) states:

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 “In Sen’s approach, functionings are the various things a person may value doing or being
… and person’s “capability” refers to the alternative combinations of the functionings that
are feasible for her/him to achieve. The focus of development thus becomes increasing a
person’s capability set, or her/his substantive freedom to lead the life she/he values.”

In spite the conceptual strength of capability approach, researchers have made every effort in
order to operationalize this approach. Alsop and Heinsohn (2005) set up a framework that
associate “individual agency” with “opportunity structure” in order to achieve “degrees of
development” that capacitate development outcomes. The “degrees of empowerment”
encompass “existence of choice”, “use of choice” and “achievement of choice”.

Individual Agency

Degree of Development
empowermnet Outcomes

Opportunity Structure

Figure 7. The process of empowerment (Source: Alsop and Heinsohn 2005)

The extent to which an individual is empowered related to his “individual agency” and the
present “opportunity structure”. Alsop and Heinsohn (2005) define individual agency as
“The capacity to make meaningful choices and is measured by an individual’s asset
endowment, consisting of psychological, informational, organizational, material, social,
financial and human assets”. As well as Alsop and Heinsohn (2005) state that “an actor’s
opportunity structure is shaped by the presence and operation of the formal and informal
institutions and measured by the presence and operation of laws, social norms and
customs”.

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Another attempt to operationalize capability approach is the sustainable livelihood framework
(SLF) that is applied by the UK Department for international Development (DFID, 1999). Based on
the sustainable livelihood framework;
“People perform an operation inside a vulnerable context in which they own livelihood assets
(capital portfolio) and negotiate policies, institutions and processes to develop livelihood
strategies to achieve a set of livelihood outcomes”.
One of the advantages of SLF is introducing a “capital portfolio” as the livelihood assets. The
capital portfolio of SLF includes human capital, natural capital, financial capital, social capital and
physical capital.
Choice Framework (Klein, 2010) is another endeavor to operationalize the capability approach.
Choice framework (CF) was extracted based on the Alsop and Heisohn (2005) and SLF (1999).
Respecting to choice framework that was represented by Klein (2010), individuals can, by taking
advantaged of their capital portfolio, reach an agreement with “social structure” in order to attain
“degrees of empowerment”, like “existence of choice”, “sense of choice”, “use of choice”, and
“achievement of choice” which then result in development outcomes. Klein (2010) states that
there are some limitation to the application of the choice framework that it is necessary more
theoretical work to narrow the limitations. Some of these limitations are as follows:
 Choice framework is applied largely on the micro level of the individual. How could
choice framework be applied on the macro/country level?
 The complex relationships between different elements of choice framework are
connected to the depth of theorization of each element. How could elements of
choice framework be theorized more precisely?

2.11.3 ICT ecosystem

We have used ecosystem metaphor to emphasize that current research explores ICT contribution
to socio-economic development entirely and holistically. Open epolicy Group (2005) defines ICT
ecosystem as well:

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 “An ICT ecosystem encompasses the policies, strategies, processes, information,
technologies, applications and stakeholders that together make up a technology
environment for a country, government or an enterprise”
According to above definition an ICT ecosystem is more than just a technological system. Smith
and Elder (2010) believe that “ICT ecosystem is a social system within which ICTs are embedded”.
Benkler (2006) and Shirky (2008) believe the increasing expansion of new generation of
information and communication technologies which are “participatory” and “collaborative” such
as mobile phones and the emergence of the social networks are reshaping how individual access
and share information. Also, these technologies are rapidly changing how they collaborate and
organize.
Open epolicy groups (2005) explain when these new technologies constitute part of an ICT
ecosystem, they provide a space for new social activities that bring gains like innovation,
productivity, growth and eventually sustainable development.
Heeks (2008) States these new technologies “decentralize innovation models” and enhance
development.
Benkler (2006) argues that if knowledge is a driver of development, more democratic access to
information is one dimension of more equal development.
In this context, Khalil and Kenny (2008) state a very substantial question, “How can we catalyze
the impact of ICTs on development?”
Smith and Elder (2010) answer to this question and believe
“Open ICT ecosystems provide the space for the transformation of social activities that can
help to catalyze the development impacts of ICTs”.
They mentioned the term “open is a range of openness that shows degree of openness, from less
to more open”.
The ecosystem metaphor is helpful in understanding the forces that cause movement in the
socio-economic context. Fransman (2010) argues “the ecosystem metaphor refers to a number
of organisms that interact within an environment”. He believes the ecosystem metaphor is
helpful in understanding the forces that cause movement in the socio-economy. He states when

60
we decide to employ the ecosystem metaphor, three basic questions must be answered. These
questions are;
1) What are the “organisms” which are interacting in an environment/context?
2) What are the “symbiotic9 interactions” between organisms?
3) What are the living forces in which cause this system settling into movement?

9. The term symbiosis comes from the Greek meaning living together

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 Chapter 3
Research Design

62
3 Research Design

In this chapter the research method in qualitative phase and quantitative phase regarding the
three major research questions has been explained. Moreover, the method that has been used
to gather qualitative and quantitative data, details of interview protocols and participants of
study have been addressed
ICT contribution to socio-economic development is associated to many internal and external
factors. In order to grasp all these factors, it is vital to apply “multi-method” and “mixed-method”
approaches to analyze ICT contribution to socio-economic development.
“Multi-method” and “mixed method” research are the most commonly used labels. In the
Handbook of Mixed Methods research, distinctions were made between these two terms (Morse,
2003). Multi-method research involves multiple types of qualitative inquiry (e.g. interviews and
observations) or multiple types of quantitative inquiry (e.g. surveys and experiments) and mixed
methods which involve the mixing of the two types of data. “Mixed-method” research has
become the most popular term for mixing qualitative and quantitative data in a single study
(Johnson, Onwuegbuzie, & Turner, 2007). Mixed methods research is the type of research in
which a researcher or team of researchers combines elements of qualitative and quantitative
research approaches (e.g., use of qualitative and quantitative viewpoints, data collection,
analysis, inference techniques) for the broad purpose of depth of understanding and providing
much evidence to support results. (Johnson et al., 2007, pp. 123)
Both “multi-method” and “mixed method” approach were used to respond to the following three
research questions. It means to answer first two research questions we have employed two types
of qualitative inquiries (interpretive research method) such as grounded theory method and
Delphi research method. To investigate last research question we have applied quantitative
research approach.
Mason (1998) discusses that paying attention to make balance between “tightness of control”
and “richness in reality” in research methods are vital. Applying “multi-method” and “mixed
method” in this research were increased the balance between “tightness of control” and
“richness in reality”.

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1. What are the main elements included of ICT-based socio-economic development (ISED)
ecosystem framework?
 What are the interacting entities of ISED ecosystem framework?
 How do ICT for development (ICTD) experts define interactions among
entities of ISED ecosystem framework?
 What are the main components of capital portfolio of ISED ecosystem?
The degree to which an ISED ecosystem framework is effective and
efficient depends on components of its national capital portfolio. These
components of capital portfolio play a key role in determining particular
development path. They work as the potential to make desired ICT-based
socio-economic development.
 What are the main dimensions and sub-dimensions of ICT-based socio-
economic development as the outcome/impacts (both progressive and
disruptive) of ISED ecosystem framework? (concerning to various aspects
of development simultaneously such as social aspects, economic aspects,
political aspects and cultural aspects)
2. What are the appropriate indicators to measure elements of ISED ecosystem
framework?
 What are the appropriate indicators to measure interacting entities?
 What are the appropriate indicators to measure components of capital
portfolio?
3. What interrelations and associations are there among main elements of ISED ecosystem
framework?
 How do ICT-based socio-economic development indicators vary in various
countries of MENA region?
 How do indicators of capital portfolio vary in various countries of MENA
region?
 How do interacting entities indicators of ISED ecosystem framework vary
in various countries of MENA region?

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 3.1 Grounded theory research method

In this research in order to answer the first research question a process of theorization was used
rather than merely describing the concepts. The differences between theory and description are
explained by Strauss and Corbin (1990) as the following lines:
“First, theory uses concepts. Similar data are grouped and given conceptual labels.
This means placing interpretations on the data. Second, the concepts are related
by means of statements of relationships. In description, data may be organized
according to themes. These themes may be conceptualizations of data, but are
more likely to be precise summaries of words taken directly from the data. There
is little, if any, interpretation of data. Nor is there any attempt to relate the themes
to form a conceptual scheme.”

Grounded theory (GT) research method was emerged in the 1960s by Barney Glaser and Anselm
Strauss. Though, a ramification of grounded theory developed and two researchers were
separated (Glaser, 1992; Strauss & Corbin, 1990). The consequence of this ramification is two
basal schools for grounded theory: “the Glaserian School and the Straussian School “(Stern,
1994). The differences between these two schools could have major effects in the running of
research. For example, Strauss (1990) believes researcher should have a general opinion of the
subject, while Glaser (1992) states researcher should start with an empty mind of area under
research. Keith Ng and Stewart Hase (2008) state the main differences between these two
schools of grounded theory relate mainly to the coding paradigms. Also they argue the
differences between Strauss and Glaser as follow:
“Strauss, as he analyses the data, stops at each word to ask ‘What if?’ Glaser
maintains attention on the data and asks, ‘What do we have here?’ (Stern 1994).
Strauss brings to bear each likely incident that could relate to the data, whether it
emerges from the data or not (Strauss & Corbin 1998, p. 77). Glaser focuses his
attention on the data to allow the data to tell their own story. Glaser argues his
approach is interpretive, contextual and emergent, while Strauss and Corbin is
more likely to lead to the forcing of perceived notions on the data.”

65
This interpretive research method is one of the most popular qualitative research methods in the
world and in various area have been employed. Jones and Alony (2011) argued the benefits of
using grounded theory for IS research from various point of views. Since the information system
(IS) area or information communication technology (ICT) sector are multi-dimensional and
complex (Skyrius & Bujauskas, 2010), a perfect perception of these subjects requires extracting
all their intertwined concepts and interactions (Fernández & Lehmann, 2005). An IS /ICT research
which follows the guidelines of grounded theory method presented by Strauss and Corbin (1998)
could exceed wide theme to provide a substantive theory (Fernández, Martin, Gregor, Stern, &
Vitale, 2006).
Grounded theory has a bearing on theory that is developed inductively from analysis of a
collection of data (Strauss & Corbin, 1990). To apply grounded theory approach a set of stages
should be executed by researcher. Pursuing these steps help researcher to develop a theory as
outcomes. The type of sampling that is applied in grounded theory method is purposive sampling
or theoretical sampling. In this type of sampling, researchers select participants based on
incipient finding or some criteria. Also the sampling process and data analyses occurred in
“alternating sequence” or in “iterative cycle of induction and deduction”. It means that early
analyses of collected data lead to new findings that give researchers tips to more data collections.
(Strauss and Corbin, 1990; Miles and Huberman, 1994). In next step, the researcher will
conceptualize all the concepts are generated by the participants or interviewees until no new
concepts, categories or relations among these categories are generated. Strauss and Corbin
nominated this situation “theoretical saturation” (Strauss and Corbin, 1998). So the main
procedures in this interpretive research method are reading textual databases and extracting key
themes and the relations among these themes and then grouping these themes to develop a
theory. The developed theory can be illustrated in the form of conceptual model or framework.
Strauss and Corbin (1998) suggest extracting main concepts and phenomena over interviews and
translate them as several codes. These codes will be categorized into more precise groups that
will ultimately form the basis for developing theory.
Charmaz (2006) believes coding is the starting step of data analysis. Coding is useful to transform
the collected data through interview to more precise interpretations.

66
As explained, The important process in grounded theory reserach method is to extract key
concepts of a textual database and then categorize these concepts to codes in order to develop
a theory. There are three major coding techniques for qualitative data analysis that will be used
during the analysis of data.
Open coding, provides a suitable starting point to recognize initial phenomena and generate a
list of categories about the concept being studied by segmenting the information. Within each
group researcher finds several properties or subgroups. The next coding technique is more
precise than open coding and known as focused coding or selective coding. In focused coding
one category are chosen as the core category, and other categories are related to this selected
category (Cresswell, 2006). The other coding method is axial coding. Strauss and Corbin (1998)
defined axial coding as
"the act of relating categories to subcategories along the lines of their properties and
dimensions"

The aim of axial coding is to add depness and structure to initial categories. Charmaz (2006) states
that axial coding re-constructs data that has been broken up into separate codes by open coding
method. Strauss and Corbin (1998) use axial coding to investigate conditions of situations
described in the interview, their actions and consequences.
The general process of how to code an interview and develop a theory according to Strauss and
Corbin (1998) is illustrated in figure 8.
Coding interview transcripts help researcher to determine main phenomena which are
considerable for interviwees. To convert these phenomena to codes , researcher allocates
conceptual label to them. The codes with similar characteristics are cooperated to make up more
precise categories. Strauss and Corbin (1998) state:
“Categories can carry so-called properties and dimensions. A property is a general or
specific characteristic of a category, whereas a dimension denotes the location of a
property along a continuum or range”. By interconnecting these categories the basis for
a theory will be originated.

67
 Figure 8. Steps of developing grounded theory

Source: Gorra, A., Kornilaki, M. (2010) Grounded theory: experiences of two studies with a focus on axial) coding and
the use of the NVivo qualitative analysis software. Methodology: Innovative approaches to research, 1 (spring),
pp.30-32.

In qualitative phase of this study, guidelines of Straussian School and Cresswell’s (2006 edition)
suggestions about grounded theory procedure have been pursued. These suggestions are as
followes:
 the first suggestion is about the research question design in interviwe protocol. the
researcher is suggested to design questions that help him/her to understand the
interviewees’ opinion about the main process. After determining the main processes,
researcher could ask more detail questions to unveil other aspects of intended issue.
 The next suggestion related to data gathering phase in grounded theory research method.
The researcher is suggested to continue gathering information to saturate the model.
 The last suggestion is about data analysis. The researcher is suggested to follow “open
coding”, “axial coding”, or “selective coding” to proceed data analysis phase.

The result of these data gathering and data analyses process is evolving a theory with respect to
research objectives.

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 3.2 Delphi research method

The Delphi method was developed by Norman Dalkey and Helmer (1963) at the RAND
Corporation. Delphi method commonly is used for achieving convergence about a certain
phenomenon from experts within this area (Dalkey, 1972). Also, this method is suitable to
improve our understanding about an issue when there are not perfect knowledge about this issue
(Adler & Ziglio, 1996; Delbeq et al., 1975). Delphi method is known as a means for “consensus-
building” by employing a series of questionnaires to collect data (Young & Jamieson, 2001). It
means that in this method several iterations are designed to achieve a consensus of opinions
regarding a particular issue. Some scholars such as Ludwig (1994, 1997), and Custer, Scarcella,
and Stewart (1999) believe that 3 iterations are sufficient in most cases to collect the needed
information and to reach a consensus, however, others like Chia-Chien Hus and Brian (2007)
suggested four iteration to achieve a consensus.
Skulmoski, Hartman, and Krahn (2007) stated that:

“The Delphi method is a flexible, effective and efficient research method that can be
successful used by IS graduate students to answer research questions in information
systems and to rigorously advance the IS body of knowledge.”

Skulmoski, Hartman, and Krahn (2007) have explored most of the graduate research which were
applied Delphi technique and they compared the process that were employed in each of graduate
research to develop Delphi method. Concerning these comparisons and explorations they
suggested the following steps to apply Delphi research method:
1) Defining an accurate and precise research question is the beginning step in conducting
Delphi research method. An exact research question motivate participant to spend
enough time in completing questionnaire. Researchers could benefit from literate
review’s findings and theoretical gaps that exist in literatures to define the research
question.
2) Selecting the research participants is the next and the most important step in conducting
Delphi research method, because the research output in this method completely is based

69
 on the participants’ expertise. Participants could be selected homogeneous or
heterogeneous and it completely related to the research question.
3) Conducting the first round of Delphi analysis; the first round usually begins with open-
ended questionnaire.in this step the prepared questionnaires were distributed to the
participants. After receiving responses, researcher analyzes questionnares according to
the research objectives. Then researcher develops a well-structured questionnare based
on the participants’ responds for the second round of delphi method. To analyze the
completed questionnares either qualitative coding or statistical method may be used.
Sometimes, the purpose of the first round of Delphi technique is to brainstorm (R.
Schmidt, 1997)
4) Conducting the second round of Delphi analysis; in this step the revised questionnaires
will be distributed to the participants. Since the revised questionnaire shares the other
participants’ opinions, each participant has opportunity to make a comment on the
opinions of other participants. This kind of verification increases the reliability of the
results (Adler & Ziglio, 1996; Delbeq et al., 1975; Linstone & Turloff, 1975). Jacobs (1996)
believes that consensus begins forming in this round. Again, after receiving the completed
questionnaires, Researcher starts to analyze the completed questionnaires and then
based on the new results begins to modify questions or define additional questions to
verify these results. As a result of round two, “areas of disagreement and agreement”
are identified in second round of Delphi analysis (Ludwig, 1997)
5) Conducting the third round of Delphi analysis; in this step similar procedures of round two
are pursued. The result of this round of Delphi analysis (often final round) is more
clarifications of participants’ judgments that lead to more increase in the degree of
consensus.
6) In the last step results of the Delphi analysis are generalized and documented. Skulmoski,
Hartman, and Krahn (2007) stated that generalization of Delphi result are undertaken
with a succeeding research phase like interviews or surveys.

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Ludwig (1997) believes that the number of Delphi iterations depends largely on the degree of
consensus sought by the investigators and can vary from two to five

3.3 Research method in qualitative phase

The main objectives in the qualitative phase of this study is elaborating an ICT-based socio-
economic development (ISED) ecosystem framework, determining major dimensions of ICT-
based socio-economic development as the outcomes of ISED ecosystem framework, and
identifying the appropriate indicators to measure elements of ISED ecosystem framework.
To improve the research quality we applied “principles for interpretive research” which were
introduced by Klein and Myers (1999) to conduct and evaluation of interpretive research in
information systems (IS).
To do this, the Charmaz (2006) advice was followed in this study and an in-depth review of the
literature was undertaken before starting data collection. We have benefited from relevant
scientific papers, official records, published reports and statistics associated to international
organization to identify basic entities of ISED ecosystem framework, intertwined interactions’
dimensions of ICT entities, contextual factors of ISED ecosystem framework, initial list of
dimensions of ICT-based socio-economic development, and initial list of appropriate indicators
to measure these elements. Then we improved the initial findings over the following steps:
In start, by applying various data collection techniques the appropriate data was gathered for
first and second research questions. Techniques were used for data gathering were semi-
structured interviews, focus group discussions (FGD), and questionnaires.
Then we pursued guidelines of an interpretive approach (grounded theory) and Delphi research
method for analyzing collected data.
Data collection and data analysis in qualitative phase of this study occurred in an alternating
sequence or an iterative cycle, including using early findings in order to shape more data
collection to develop new findings. Consequently, data collection and analysis occurred
simultaneously and research process is iterative rather than sequential.
The participants / respondents included experts in ICT for development (ICT4D) area and ICT
sector representatives. We employed a purposive sampling procedure to choose participants and

71
respondents. It means that certain participants were selected because they were considered to
be the best source for answering research questions. The sample size was not pre-determined
and we used a respondent-driven sampling technique to identify interviewees among ICT
experts. We prepared a pilot list, then asked from first interviewee to recommend potential.
Our approach to analyze data was inductive. We explored interviews systematically, and then
compare and contrast data across interviews in terms of the diversity of participants’ perspective.
The main challenges about the qualitative phase of this research were assessing the validity and
generalizability of findings. Patton (2002) believes:
“Statistical analysis follows formulas while, at the core, qualitative analysis is a creative
process, depending on the insights and perceptual capabilities of the analyst.”

Creswell (2006) and Dixon-Wood (2004) note that methodological rigor and research experience
and skill, and relevance are appropriate criteria for assessing the validity of qualitative findings.
About generalization issue, Cresswell (2006) states that:
“Although qualitative findings cannot be generalized in the same way as quantitative
findings, they can be generalized across similar contexts.”

Mason (2002) believes that:

“Qualitative results can provide details about the settings studied and explanations of how
and why things worked the way they did in each of those settings”.

To enhance the validity and reliability we employed diverse data gathering method and data
sources (Triangulation) such as in-depth interviews, focus group discussions, and document
reviews which lessened the bias risk by taking advantages of a wide range of participants’
viewpoints.
In conclusion the extent to which a setting outside a study is similar to the study settings depends
on how they match key factors. Patton (2002) relegate “transferability” to this kind of
generalizability.

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 The discussions over the semi-structured interviews and focus group discussion were
concentrated on the elements of ISED ecosystem framework. Also axial coding was used to
analyze collected data in this section. For determining dimensions of ICT-based socio-economic
development and indicators to measure elements of ISED ecosystem framework, suitable
questionnaires were designed.
Based on Cresswell (2006) suggestions, 25 in-depth semi-structured interviews and 1 focus group
discussions (FGD) with 12 participants were undertaken to explore first three sub-questions of
first research question. By using early findings based on analyzing first phase of data gathering,
more interviews were undertaken in second phase of data collection.
To answer forth sub-question of first research question a two-round Delphi research method was
carried out with 15 research participants. To answer second research question a focus group
discussions (FGD) with 12 participants and a three-round Delphi method with 12 participants
were conducted.
More details about research design for this research question are shown in table 9

Table 9. Research design in qualitative Phase

Sampling Techniques of data Approach to data

Research questions Research process
procedure gathering analyze

-Semi-structured
interviews and Focus
grounded theory
1. What are the main elements Group Discussion
- Iterative rather than method
included in the ICT-based socio- meeting (FGD) for
sequential and
economic development (ISED) the first three sub-
- Discovery process - Purposeful two-round Delphi
ecosystem framework? questions
- respondent-driven research method
- Questionnaire for
forth sub-question

2. What are the appropriate - Questionnaires

Three-round Delphi
indicators to measure elements of Three-round Delphi - Focus group
research method
ISED ecosystem framework? discussion meeting

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3.3.1 The main elements of the ISED ecosystem framework (1st research question)

The first research question encompasses four sub-questions. The method of data analysis which
was used to answer first three sub-questions was grounded theory method. The decision to use
grounded theory methodology was supported by the scarce of existing theory regarding
elements of ICT-based socio-economic development ecosystem. The method of data analysis for
answering last (forth) sub-question was a two-round Delphi research method.
To develop different parts of the intended ICT-based socio-economic development Ecosystem
framework within this research project a sound literature evaluation was conducted and relevant
literature were applied. These literature are literature related to Ecosystem metaphor, the capital
portfolio of sustainable livelihood framework (SLF, 1999), the resource portfolio of choice
framework (Klein, 2010) and dimensions of socio-economic development (Madon, 2000 and
Baqir, 2009). All These resources together helped us to determine the semi-structured interview
protocol, focus group discussions (FGDs), and questionnaire as three important sorts of data
gathering techniques.

 The first three sub-questions:

For first three sub-questions we improved interview protocol (Appendix 1) through guidelines of
the grounded theory method. Also data collecting process was managed in two phases
1) In December 2013 through 14 semi-structured interviews and 1 focus group discussion
with 12 participants as techniques of data gathering.
2) During July 2014 by the September 2014 through 11 semi-structured interviews as
technique of data gathering.

The semi-structured interviews and FGDs in December 2013 were conducted during the Sixth
International Conference on Information and Communication Technologies and Development
(ICTD2013) hosted at the Cape Town University, South Africa. All the interviewee were ICT sector
representatives and ICTD experts which have attended in this conference. We employed a
purposive sampling procedure to choose participants and respondents which cover all
geographical regions from Canada, USA, Australia, Africa, Europe and Asia. Initial findings of

74
literature review that formed the questions of interview protocol, besides these phase of
interviews (December 2013) were applied for determining elements of ISED ecosystem
framework. The questions of FGDs and semi-structured interviews with ICTD experts and ICT
sector representatives got ahead regarding interviewees’ answers. Each interview lasted more
or less 30 minutes and the focus group discussion lasted about 3 hours.
For analyzing these semi-structured interviews the Cresswell (2006) suggestions were followed.
Firstly, all interviews were transcribed. Then all transcribed interviews were read and annotated
(memo writing) to extract main and more frequent concepts as codes. This step certified that the
all extracted codes are grounded in collected data. The content analysis to extract codes from
transcribed interviews was mainly manual. It means that we did not apply NVIVO software. After
extracting initial findings as codes, these findings were described to clarify various aspects of
these codes. In next step, categories were defined based on codes and their descriptions. All
these steps enabled us to generalize findings in order to convert them in to a pattern. Lastly,
based on the initial analysis of coding and relations among them an ISED ecosystem framework
was developed. This ISED ecosystem framework as the basis of an integrated theory was
improved in next phase of data collection.
As mentioned in section 3.1, the data gathering and data analysis were conducted in an iterative
cycle. So in the next phase of data gathering, 11 ICTD experts were interviewed during July 2014
to September 2014. Since in the quantitative part (3 rd research question) of this study Middle
East and North Africa (MENA) region was aimed, all interviewees were selected from ICTD experts
in MENA region. Eight interviews were done on Skype and three interviews with Iranian ICTD
experts were done in their offices. Then all the previous stages that explained in first phase of
data gathering were followed to analyze collected data in this phase. The consequences of these
two phase of analyses are the presented ISED ecosystem framework.

 The forth sub-question:

To answer the forth sub-question a two-round Delphi research method was used. Through this
method I applied an iterative process for achieving consensus from experts in ICT for

75
development (ICTD) area in MENA region about dimensions of ICT-based socio-economic
development as the outcomes of ISED ecosystem framework.
To increase the degree of consensus on dimensions of ICT-based socio-economic development,
the following steps were pursued.
At first, by reviewing literature related to dimensions of ICT-based socio-economic development
especially, proposed dimensions by Baqir (2009) and Madon (2000), a questionnaire (Appendix
2) including initial list of ICT-based socio-economic development dimensions was designed.
Then I achieved consensus by conducting series of surveys using this questionnaire over the two
rounds of Delphi research method. 15 experts were selected to answer the designed
questionnaire from Middle East and North Africa (MENA) region.
In first round, the prepared questionnaire was distributed to the participants. In this round,
experts also had opportunity to add new dimensions that they considered important to fill
possible gap in the initial list of socio-economic development dimensions. Moreover, the
perception of participants about progressive and disturbing (Avgerou, 2010) impacts of socio-
economic dimensions was asked in this round of Delphi research method. Consensus began
forming in this round. After receiving the completed questionnaire, Researcher started to analyze
the completed questionnaire and then based on the new results began to modify questions or
define additional questions to verify these results. The revised questionnaire based on the
participants’ responds was distributed to the participants to start second round of Delphi
method. In second round similar procedures of first round were pursued.
As a result of conducting a two-round Delphi research method a set of ICT-based socio-economic
development dimensions has been finalized as the outcome of proposed ISED ecosystem
framework which explains both progressive and disturbing impacts of ICT. Then we categorized
the modified list of ICT-based socio-economic development dimensions on the basis of five areas
of freedoms that have been suggested in Sen’s capability approach (1999).

76
 What are the main elements included in the ICT-based socio-economic development (ISED) ecosystem
framework?

Table 10. Research design for first research question

Method of
Types of data Research Schedule of
Sub-Questions Theoretical background data
sources participants data gathering
analysis
- Semi-structure
What are the interacting
interview
entities of ISED - 14 interviews in
- Secondary
ecosystem framework? December 2013
Sources
Ecosystem metaphor (Fransman, and one FGD
How do experts define 2010) -Focus Group with 12 Interpretive
interactions among Discussion (FGD) ICT sector participants in research
entities of ISED - Secondary representative December 2013 method
ecosystem framework? Sources , ICTD experts (Grounded
- 11 interviews theory)
What are the main the capital portfolio of From July 2014
-Semi-structure
components of Capital sustainable livelihood framework by the
interview
portfolio of pertinent (SLF,1999) September 2014
- Secondary
context (contextual the resource portfolio of choice
Sources
factors) framework (Klein,2010)
What are the main
- Development theories
dimensions and sub-
Socio-economic development
dimensions of ICT-based
literature
socio-economic
- ICT for development(ICTD) - Secondary
development as the
literature Sources
outcome (both
- Discourses on ICT and encompass:
progressive and Two-round
development published reports 15 ICTD From July 2014
disruptive) of ISED Delphi
- Capability approach (Sen, 1999) related to experts from by the
ecosystem framework? research
- Progressive and disruptive international MENA region September 2014
(concerning to various method
transformation aspects of ICT- organization and
aspects of development
based socio-economic relevant scientific
simultaneously such as
development (Avgerou, 2010) papers,
social aspects, economic
- concrete evidence of ICT
aspects, political aspects
contribution to socio-economic
and cultural aspects)
development

3.3.2 Developing hierarchical structure

The next step after developing the ISED ecosystem framework was developing a hierarchical
structure accordance to different parts of this framework.

77
This hierarchical structure includes pillars and sub-pillars considering various parts of elaborated
ecosystem framework. The pillars and sub-pillars of hierarchical structure are correspondent to
various parts of proposed ecosystem framework.
Such a hierarchical design helps us to have better and clustered image of the driving factors
behind the phenomenon.
This structure paves the road for the construction of a meaningful composite index (CI) to
measure ICT-based socio-economic development as the outcome of proposed ecosystem
framework. This composite index would make possible cross-country comparison of ICT-based
socio-economic development in different countries of MENA region.
Then we determined associated indicators in each sub-pillar of this hierarchical structure by
applying Delphi method (in second research question).

3.3.3 The appropriate indicators to measure elements of ISED ecosystem

framework (2nd research question)

To answer the second research question Delphi research method was used. Through this method
I applied an iterative process for achieving convergence from experts within ICT for development
(socio-economic development) area about individual indicators associated to each sub-pillars of
hierarchical structure (as explained, these sub-pillars are correspondent to various parts of ISED
ecosystem framework).
In what follows, steps for achieving consensus about individual indicators will be addressed.
At first we prepared an initial list of indicators regarding various parts of ISED ecosystem
framework by reviewing literature related to indicators which are used by international
organizations in ICT performance, socio-economic development and capital portfolio. The initial
list of indicators that has been introduced in this step was based on this premise that any given
country has an ICT-development S-curve. So in selecting related indicators all stages of
development path including “ICT-readiness”, “intensity” and “ICT impacts” have been taken into
account.

78
Two different types of data gathering were used in second research question. Firstly, I conducted
a focus group discussion (FGD) meeting to improve conceptual consistency of gathered indicators
and their compatibility to literature. Secondly, I carried out a three-round Delphi method to
achieve consensus and assess the importance and feasibility of selected indicators. I achieved
consensus by conducting a series of surveys using questionnaires (Appendix 3) over the three
rounds of Delphi research method. The main participants in FGD and panelists who participated
in the Delphi rounds were number of specialists in the areas of “ICT for development (ICTD)” that
attended the Sixth International Conference on Information and Communication Technologies
and Development (ICTD2013) hosted at the Cape Town University, South Africa. Two
requirements were considered to select these experts.
- Professional knowledge and experience in at least one of the two pillars of ISED ecosystem
framework including the ICT entity pillar or capital portfolio pillar.
- Willingness and agree in participating over the survey.

The expert panelists were composed of 12 participants from different geographical region. In
focus group discussion meeting, they received general overview on the categorized indicators
and contextual information about the work they had to do. Then the initial list of categorized
individual indicators into dimensions was modified on the basis of participants’ opinions. For first
round two various types of questionnaires -accordance to the two pillars considered in the ISED
ecosystem framework- were designed to achieve consensus on the best indicators to use in
describing and measuring the elements of ISED ecosystem framework. The prepared
questionnaires were distributed to the participants. In the first round, experts also had an
opportunity to add new indicators that they considered important to bridge possible gap in the
initial list of indicators. Consensus began forming in this round.
After receiving the completed questionnaires, Researcher started to analyze the completed
questionnaires and then based on the new results began to modify questions or define additional
questions to verify these results. Since another two type of questionnaires for second round
(revised questionnaires) shared the other participants’ opinions, each participant had
opportunity to make a comment on the opinions of other participants. This kind of verification
increased the reliability of the results. The revised questionnaires based on the participants’

79
 responds were distributed to the participants to start second round of Delphi method. In second
round similar procedures of first round were pursued. The results of this round of Delphi analysis
were more clarifications of participants’ judgments that led to more increase in the degree of
consensus. In third round, experts were requested to assess the importance and feasibility of
every indicator through a unique general questionnaire that included both two pillars of ISED
ecosystem framework.
These final indicators as the results of conducting a three-round Delphi method enable us to
measure each sub-pillars and pillars of ecosystem framework.

What are the appropriate indicators to measure elements of ISED ecosystem framework?
Table 11. Research design for second research question

Types of Research Schedule of data Method of

Sub Questions Theoretical background
data sources participants gathering data analysis
- Network Readiness Index(NRI)
1. What are the
- Digitization measure
appropriate indicators
- ICT Development Index (IDI) questionnaires from
to measure interacting
- ICT Price Basket (IPB) Index - Focus group December 2013 to
entities? Delphi
- ICT performance measure discussion 12 ICTD March 2014
research
2. What are the - Capital portfolio of sustainable - experts - One FGD with 12
method
appropriate indicators livelihood framework (SLF,1999) Questionnaire participants in
to measure - Resource portfolio of choice December 2013
components of capital framework (Klein, 2010)
portfolio? - National intellectual capital

3.4 Research method in the quantitative phase (3rd research question)

The main objectives in the quantitative phase of this study are to measure various elements of
ISED ecosystem framework in 17 MENA countries, comparing selected countries in terms of these
elements, and then constructing a composite index to measure degrees of ICT-based socio-
economic development as the outcome of this ecosystem framework. Furthermore, we are going
to check internal consistency and statistical coherency of proposed ecosystem framework that
has been developed in the qualitative phase of this research.
Considering selected indicators in second research question, I collected data for 17 countries of
MENA region (Middle East & North Africa) from official and widely accepted reports and data

80
 base. Then I explored interrelations and associations among main elements of ISED ecosystem
framework in MENA countries with respect to the following sub-questions:
 How do contextual factors indicators of ISED ecosystem framework vary in various
countries of MENA region?
 How do interacting entities indicators of ISED ecosystem framework vary in various
countries of MENA region?
 How do ICT-based socio-economic development composite index varies in various
countries of MENA region?

Furthermore, I have explored and investigated the reciprocal interactions within and between
these sub-pillars and pillars to check internal consistency and statistical coherency of proposed
ecosystem framework by applying correlation analysis. It also directed us to envisage how social,
political, cultural and legal context influences ICT technology usage and socio-economic
development.
Finally, to measure ICT-based socio-economic development as the outcome of this ecosystem
framework we constructed a composite index to compare MENA countries respecting to this
composite index. This composite index is the combination of different aspects all related to the
ISED ecosystem framework. Each aspect by and large can be measured by means of a set of
selected indicators.

What interrelations and associations are there among main elements of ISED ecosystem
framework?

Table 12. Research design for third research question

Technique of selecting final indicators in Method of data analysis

Sub-Questions
each sub-pillars
How do components of capital portfolio
vary in various countries of MENA region?
Cronbach’s Alpha test to Evaluate reliability
How do interacting entities indicators of
of determined indicators. Techniques to construct
ISED ecosystem framework vary in
Spearman correlation coefficient to check composite index
various countries of MENA region?
inter-consistency of Indicators, sub-pillars and Correlation analysis
How do ICT-based socio-economic
pillars.
development composite index varies in
various countries of MENA region?

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3.4.1 Data of MENA region

Considering proposed ISED ecosystem framework and selected indicators, we collected data for
17 countries of MENA (Middle East & North Africa) region from official and widely accepted
reports such as HDR, WDI, ITU, GEM, UNDP, WGI, UN, WCR, etc. and also MENA region statistical
reports.
The population of The Middle East and North Africa (MENA) are 355 million and a large majority
of the population live in middle-income countries. This region is a diverse region that includes
both the oil-rich countries and countries with scarcity in natural resources.
According to World Bank (2013) in MENA region the benefits of growth were not shared equally
and the vulnerability is high. The word bank (2013) reported that
“This region came into the Arab Spring with multiple strengths, which included a young
and educated population…”

The process of political change and transition continued into 2014 with a great degree of
heterogeneity across countries across the MENA region. The success of political changes in
transition period will depend in large part on the capability of new governments to deliver
notable improvements in the citizens’ quality of life.
In 2013, growth in MENA decreased to 2.8 percent from 5.6 percent in 2012, but in 2014
increased to 3.5 percent and will strengthen to around average 4.2 percent in 2015.
In the long-term, MENA countries face the structural problems that predate the ‘Arab Spring.’
The region’s main challenge is to create sustainable growth that delivers the quantity and quality
of jobs needed. An inclusive and competitive private sector has proven to be one of the most
effective and long-term solutions for unemployment, and will be critical in tackling the scale of
the problem in MENA. An improvement in the political environment will help too by encouraging
much needed investments in the labor–intensive tradable sectors like ICT sector.
The Middle East and North Africa includes Israel and Iran and all the members of the Arab League:
Algeria, Bahrain, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, West
Bank and Gaza, Qatar, Saudi Arabia, Syria, Tunisia, United Arab Emirates, and Yemen. “This region
contains countries with various political, economic and cultural conditions. MENA region includes

82
various type of regimes like monarchical and republican regimes, different colonial legacies, oil
and non-oil states, rich and poor states, small and large states, and Western and non-Western
allies etc.”. (Shirazi. F., 2008).
The countries in the region that are not included in this research are Israel, Djibouti, West Bank
and Gaza. Israel, was not included because its socio-political situation is completely different
from other MENA countries. Djibouti, West Bank and Gaza were not included due to a lack of
sufficient data.
According to “Economic Developments and Prospects” report (2013), the MENA region is divided
into three main groups. This report sometimes refers to a fourth group of countries, called
countries in transition (This cluster includes countries that engaged in Arab Spring.) In this
research we analyze ICT contribution to socio-economic development with respect to
determined groups in the “Economic Developments and Prospects” report.
Countries in each cluster are as following table:

Table 13. Country groups in MENA region

GCC oil exporters The first group contains the Gulf Cooperation Council (GCC) countries,
namely, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United
Arab Emirates;
Developing oil exporters Algeria, the Islamic Republic of Iran, Iraq, Libya, the Syrian Arab
Republic, and the Republic of Yemen;
Oil importers oil importers include countries with strong GCC links (Djibouti, Jordan,
and Lebanon) and those with strong EU links and located in North Africa
(Morocco, Tunisia and the Arab Republic of Egypt)
Countries in transition Arab Republic of Egypt, Jordan, Lebanon, Libya, Syrian Arab Republic,
Tunisia, Republic of Yemen.

3.4.2 Outlier detection and treatment:

Outlier is an observed value that is so extreme, either large or small- and stand apart from the
rest of the distribution. Outliers generally spoil basic descriptive statistics like MEAN, STANDARD
DEVIATION, CORRELATION COEFFICIENT, and cause misinterpretation. Therefore it is necessary
to detect and treat outliers before it is too late. In this research to detect the problematic
indicators we calculate SKEWNESS and KURTOSIS for all indicators;

83
 IF |Skewness | > 2 AND kurtosis > 3.5 THEN

The indicators under this condition were a problematic indicators and were treated. We could
treat potentially problematic indicators (those with skewness>2 AND kurtosis>3.5) either by
winsorisation method (if few outlier values, roughly 5 percent of countries) or by box-cox
transformation method.
In this study there were a few outlier values. So we treat them by assigning the next best values
of problematic indicators to countries that made this problem (winsorisation method)

3.4.3 Missing data Imputation:

A limitation for this study was missing data for some countries in some selected indices. There
are several imputation techniques that can be applied to estimate missing data. Three common
methods for dealing with missing data are: (1) case deletion, (2) single imputation or (3) multiple
imputation. Case deletion method, simply leaves out the missing records from the analysis. The
other two approaches consider the missing data as part of the analysis and try to impute values
through either single imputation such as mean/median/mode substitution, regression
imputation, hot-and cold-deck imputation, expectation-maximization imputation, or multiple
imputation like Markov Chain Monte Carlo algorithm. Each of the imputation techniques, like any
other method employed in the process, has their own strengths and weaknesses. Single
imputation is known to underestimate the variance, because it partially reflects the imputation
uncertainty. The multiple imputation method that presents several values for each missing value
can more successfully depict the uncertainty because of the imputation. The most important
consideration is to ensure that the data imputed will reflect or estimate a country’s actual level
of variables. In this research two methods of data imputation were used. Because of the large
numbers of missing data, the datasets for Djibouti, West Bank and Gaza were excluded (case
deletion imputation method). For others, given that country characteristics is correlated with
national income, hot-deck imputation was chosen as the method for estimating the missing data.
Hot deck imputation uses data from countries with “similar” characteristics where observed units

84
in the sample are used to substitute values. Based on mathematical “similarities”: Manhattan
distance:

The missing value for unit j is the observed value for the same indicator on the most similar unit.

Or Euclidean distance:

In this research GDP per capita and the classification of MENA region in the World Bank report
were used as the main criterions in identifying countries with similar characteristics. According
to “Economic Developments and Prospects” report (World Bank, 2013), the MENA countries is
divided into three main clusters. This report sometimes refers to fourth clusters of countries,
called countries in transition.
For example, missing data for country X were estimated for a certain indicator by first identifying
the countries that have similar levels of GDP per capita and that are from the same cluster. Then
the indicator that has a known relationship to the indicator to be estimated was considered. For
instance, inflation rate data of country X was estimated by using average inflation data of country
B, C, D, and etc. from the same cluster, with similar level of GDP per capita and similar level of

85
inflation rate. The same logic was applied to estimate missing data for all indices included in the
study.

3.4.4 Normalization

Another challenge for this study was different quantitative and qualitative indicators with various
scales and units. So, it was essential to normalize data to have the same unit of measurement
before aggregating data.
To select the appropriate normalization method, we should take into account:
 Whether we want to keep extreme values (i.e. reward for exceptional behavior),
 Whether the aggregate index, included different indicators, is time dependent.
 Whether we want to benchmark against a reference country,

In this research for a meaningful integration of the quantitative score and qualitative rating, all
values were rescaled by Min-Max normalization method. In this method each indicator Xqc for a
generic country C is transformed in:

Where minc (xq) and maxc (xq) are the minimum and the maximum value of Xqc across all countries
C. In this way the normalized indicators Iqc have the same range of variation [0, 1], lying between
0 and 1, but not necessarily the same variance. More generalized formula in any cases which
lower scores is better, is:

New Value = (old value-Min)/ (Max-Min) * direction + 0.5 (1-direction)

This data rescaling procedure was repeated for all numerical indicators to reach to a value score
between [0, 1].

86
3.4.5 Calculating Cronbach’s alpha test

In this stage “Cronbach’s alpha” test was used to evaluate the reliability of the measures. This
test which is one of the most common estimate of internal consistency of items in a model,
Measures the internal consistency in the set of indicators, i.e., how well they describe a one-
dimensional construct. Cronbach’s Alpha measure were used to check:
 Whether indicators belonging to one sub-pillar can work together?
 If the set of indicators belonging to one sub-pillars are appropriate to describe the
phenomenon
This calculation was the first measure used to assess the quality of the metrics. So Cronbach’s
alpha is considered an adequate index of the inter-item consistency and reliability of
independent and dependent variables. Nunnally (1978) suggests that constructs have reliability
values of 0.7 or greater.

3.4.6 Aggregation rule

In literature several aggregation methods are discussed. Aggregation methods are divided into
three main types including (1) aggregation based on scores, (2) aggregation based on rank and
(3) aggregation based on the outranking matrix. The techniques in each type may be
“compensatory” or “non-compensatory”.
One of compensatory aggregation method based on scores is arithmetic mean. Although this
technique is the most widespread method to aggregate indicators, sub-pillars and pillars, it
imposes restrictions on the nature of individual indicators. For example this method requires
normalized indicators and also implies perfect and constant substitutability. Perfect
substitutability means that how much you care about one dimension has nothing to do with its
initial value. To calculate this measure we use this formula:

87
Another aggregation method based on scores which is partially compensatory is geometric
average. In this method we try to give sort of more importance to the pillars that were doing not
well and it is the main advantages of this aggregation method to arithmetic aggregation method.
Because in some issues we would like that a country makes more efforts on more weak pillars. A
key statistical feature with this method is that if decline 1% in an indicator lead to the same
impact on the aggregated index. This method requires normalized and positive values and also
implies imperfect substitutability. The main features of geometric aggregation method are as
follows:
 Implies only partial compensability; it means poor performance in one pillars cannot be
fully compensated by good performance in another.
 Rewards balance by penalizing uneven performance between pillars
 Encourages improvement in the weak pillars. For instance the lower the performance in
a particular pillars, the more urgent it becomes to improve in that pillars.
To calculate this measure we use this formula:

In this study to create aggregated index, more than one aggregation method were applied at
different levels of aggregation. In sub-pillars level we used arithmetic aggregation method and in
pillars level we employed geometric aggregation methods.

3.4.7 Correlation analysis to analyze the underlying structure

The major goal of this step is to verify whether the nested structure of our intended phenomenon
is well-defined. In the other words we want to check if the proposed 10 sub-pillars that constitute
the ISED ecosystem framework are statistically well-balanced. So to analyze the underlying
structure of intended phenomenon and to describe the associations among these 10 sub-pillars
correlation matrix analysis has been used.
In this research to explore the relations and internal consistency among 10 sub-pillars of ISED
ecosystem framework the Spearman correlation coefficients matrix was computed.

88
 Michaela Saisana (2008) states the following suggestions about corrrelatin measure:
 0.4 – 0.8 correlation coefficients between the pillars and the aggregated index
 All correlation coefficients should have the expected (desired) sign (correlation of
indicators with pillars and and agrregated index)

3.5 Sum up

In this chapter, research design regarding the three main research questions was discussed in
depth. The grounded theory research method and two-round Delphi research have been applied
for first research question that result in an ISED ecosystem framework. For second research
question a three-round Delphi research method has been carried on to obtain consensus about
appropriate indicators to measure various parts of proposed ecosystem framework. For empirical
part (addressing third research question) correlation analysis and composite index guidelines
have been used to unveil how different parts of ISED ecosystem framework vary across selected
countries in MENA region. In next two chapters, the results of qualitative phase and quantitative
phase will be discussed in details. The figure 10 presents the road map for conducting qualitative
and quantitative analyses in following chapters.

Step1- ICT Entities and their

Positions

Step2- Dimensions of
Interactions

Step3- Capital portfolio  RQ1Ecosystem

Components Framework

Step4- Dimensions of ICT- Chapter 4

based Socio-economic
Qualitative Result
Development

 RQ2 Indicators Chapter 6

Conclusion

Chapter 5
 RQ3 Comparative
Analyses of MENA countries
Quantitative Result

Figure 9. Road map for analysis in qualitative and quantitative phase

89
 Chapter 4
Qualitative Phase
Analyses and Results

90
4 Qualitative Phase Analyses and Results

By applying grounded theory and two-round Delphi research method and then relating ICT
entities, contextual factors of pertinent environment, dimensions of interactions among these
elements, and eventually ICT-based socio-economic development dimensions, “the ICT-based
socio-economic development (ISED) ecosystem framework” is established. To this end, one focus
group discussion meeting plus 25 semi-structured interviews with ICTD experts and ICT industry
representatives have been conducted.
In focus group discussion meeting main findings concerning to literature have been presented
and on the basis of participants’ opinions small alterations were made in interview protocol. The
interviewees for the first phase of semi-structured interviews were selected through a purposive
sampling procedure among ICTD experts and ICT industry representatives which attended in 6 th
international conference on information and communication technologies development
(ICTD2013). The interviews for first phase of data gathering were arranged over the ICTD
conference 2013 by requesting meeting in advance. These semi-structured interviews started
with an initial interview protocol (Appendix 1) but further questions were introduced if needed.
To analyze data from first phase of semi-structures interviews of 14 participants each of these
interviews were transcribed and then the transcribed interviews were explored to identify codes
and concepts within them. These codes are units of information which were considered saturated
when no further information can be found by running more semi-structured interviews. Since
the NVIVO software has just the ability to count existence of dissimilar words that might be
repeated in transcript, extracting codes were done manual. All these codes are supported with
rich descriptive quotes from the data. To increase the reliability of results, the data gathering and
analysis were conducted in two phases. As Cresswell (2006) suggests, the data gathering phase
in this research is carried out in a “Zigzag” manner and iterative way. It means that I move
backward and forward between gathering and analyzing data. The numbers of iterations for
gathering data and analyzing collected data are related to codes which have been saturated.
Over the second phase of data gathering 11 interviewees were selected among ICTD experts from
Middle East and North Africa (MENA) region and all interviews started with an interview protocol

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(Appendix 1). To analyze collected data in second phase all the previous stages that explained in
the first phase of data gathering were followed.
Based on these two phases of data gathering dimensions of interactions and two axial coding
patterns were created. The axial coding patterns were used to identify sub-pillars of ICT entities
(IE) and capital portfolio (CP) by categorizing similar codes (These sub-pillars corresponded to
codes which were extracted over the grounded theory analysis.)
Besides conducting focus group discussion meeting and semi-structures interviews as data
gathering techniques, several in-depth document reviews were applied to improve validity and
lessen bias risk in this research. Moreover, the findings which result from exploring these
literature provided a starting point for designing interview protocol. I have used Sen’s capability
approach to determine initial dimensions and sub-dimensions of ICT-based socio-economic
development. The choice framework (CF) -as a scheme of operationalizing the capability
approach (CA) – and capital portfolio of sustainable livelihood framework (DFID, 1999) were
applied as initial input to determine the capital portfolio of pertinent context in which other
elements of intended framework perform inside it. Finally, the ecosystem perspective in ICT
context (Fransman, 2010), was utilized to conceptualize and visualize the main ICT entities and
interactions of ICT-based socio-economic development. (These concepts have been described in
detail in section 2.11).
Main parts of ISED ecosystem framework which resulted from conducting grounded theory
research method and two-round Delphi method are as follows:
 ICT Entities (IE) and their positions: encompass all ICT players are interacting in an
environment/context that ICT development take place with contributing these entities.
Each ICT entity has particular position in the ecosystem framework. It means that ICT
interacting entities place at least in one of these positions with respect to their roles and
interactions.
 Dimensions of Interactions: The interactions among various entities of ISED ecosystem
framework are multi-dimensional. These interactions as continually advancing processes
initiate knowledge flow all over this ISED ecosystem framework and generate dynamic
changes.

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  Capital Portfolio (CP) components: All ICT entities and interactions are defined in a
broader context with specific economic and social conditions as well as cultural and
political circumstances that are formed particular contextual factors. The overall
condition of contextual factors would be suitable for obtaining ICT-based socio-economic
development and cause this system settling into dynamically changing/movement.

ICT Entities (IE) and Capital Portfolio (CP), besides interactions among them form an ICT-based
socio-economic development (ISED) ecosystem framework (hereafter ISED ecosystem
framework). The consequences of the reciprocal interactions within this ecosystem framework,
can be converted into:

 ICT-based Socio-economic Development: Based upon the interactions among ICT entities
of ecosystem framework, by taking advantages of suitable capital portfolio the direct and
indirect impacts of ICT development could be stimulated in the form of ICT-based socio-
economic development in various dimensions. (Outcome of ISED ecosystem framework)

Step1: ICT Entities and their

Positions

Step4: Dimensions of ICT-based

Step2: Dimensions of Socio-economic Development
Interactions

Step3: Capital Portfolio

Components

Figure 10. The interactions among various elements of ISED ecosystem framework

Regarding the Klein’s framework there are primary and secondary outcomes/impacts. Except of
the Choice (choice in ICTs) as primary outcome/impact which is both aim and axiom means of
development (Sen, 1999), other ISED ecosystem outcomes are not necessarily progressive. It

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means that in addition to advancing outcomes of ICT-based socio-economic development, the
disturbing impacts have been paid attention.

4.1 Feature of ISED Ecosystem Framework

To determine appropriate structure to develop ISED ecosystem framework, the features of

frameworks which are used by international organization to model ICT contribution to socio-
economic were investigated. Then by taking advantages of the main strengths and weaknesses
of each framework with respect to s-curved development path, the features of ISED ecosystem
framework were determined. In section 2.7, we explored and compared various features of
frameworks which are used by international organizations to model ICT contribution to socio-
economic development. These comparisons not only helped us to unfold strengths and
weaknesses of previous frameworks, but also helped us to reveal gaps regarding frameworks
which were defined to conceptualize ICT contribution to socio-economic development. In this
section besides explaining main findings respecting to this comparison, we explain the features
of ISED ecosystem in this research have been defined.
Whatever ICT has become global and ubiquitous the policy attention has been focused on making
the best use of this technology to improve social and economic status of nations rather than just
providing access. Consequently, the framework and definition of some indices such as "ICT
performance measure" (IC4D, 2009), "human development index" (UNDP, 2010), "information
society measure" (ITU, 2012) and "network readiness index" (World Economic Forum, 2012) have
been modified in line with these changes.
Despite these evolutions, existing view of "stage by stage development" influence ICT indices so
that countries are being classified with respect to their position on the stages of ICT development
path. This stage by stage development are illustrated by S-curve (Figure 11) which depicts three
stages of ICT development path including: ICT readiness, intensity and ICT impact. In this regard,
the lower income countries with lower level of ICT development are corresponded to readiness
stage of ICT development path. Developing countries with medium level of ICT development are
corresponded to intensity stage of ICT development path and developed countries with higher
level of ICT development are corresponded to the impacts stage of ICT development path.

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 Figure 11. ICT Development path (Source: E-commerce and Development Report,
UNCTAD, 2004)

It seems that in a “hyper-connected era” that ICT has become ubiquitous each country still
follows the S-curved development but the level of ICT development is different with respect to
the quality and quantity of ICT sector infrastructures and networks.
It means that as soon as an ICT infrastructure or technology is set up then its impacts or outcomes
would start to influence the socio-economic dimensions of the people life and country status.
But the intensity of this influence is dependent to the degree of the ICT infrastructure and
networks enhancement for access and usage by inhabitants, businesses and government. It
means that each country has an ICT development S-curved but the level of S-curved varies with
the quality and quantity of infrastructures and networks in ICT sector.
Regarding this, the ISED ecosystem framework that was introduced in current research is based
on this premise that any given country has its own ICT development S-curved (Figure 12) while
the level of S-curved varies in different countries.
So in developing ISED ecosystem framework (defining elements and related indicators) all stages
of development path encompassing ICT readiness, intensity and ICT impact have been taken into
account, simultaneously.

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 General Perspective Research Perspective

Figure 12. Current research perspective based on ICT development path

4.2 ICT Entities (IE) and Their Positions

The first sub-question that was answered dealt with the ICT Entities of ISED ecosystem
framework. ICT Entities of ecosystem framework provide vision into the main key players of ISED
ecosystem framework. A list of ICT Entities (IE) was developed from grounded theory analyses of
25 semi-structured interviews with ICTD experts and ICT sector representatives. About 18
separate codes were determined on the basis of transcribed interviews. Table (14) shows the
extracted open codes. The frequency of a code means that code was saturated and more data
gathering doesn’t lead to more codes.
Table 14. Open coding of ICT entities

Frequency
ICT industry
Open Codes ICTD experts
representatives
(16 interviewees)
(9 interviewees)
affordable and high quality ICT infrastructures 16 9
Individuals, Households 15 9
Government 16 9
First phase and
Entrepreneurs 11 5
second phase of
Businesses 16 9
semi-structure
Operators 16 9
interviews ICT Service Providers 14 8
ICT Product Providers 14 9
Competing ICT enterprises 16 8

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 Regulation authority 16 9
Universities 12 8
ICT incubators & technology parks 10 7
ICT R&D institutions, Innovation centers 11 6
Financial institutions 15 8
Legal institutions 16 9
Standard setting institutions 11 9
ICT Enterprises’ Suppliers 13 9
ICT Enterprises’ Partners 8 7
Cooperating ICT enterprises 10 5

The open coding pattern for ICT interacting entities reveals that main key ICT players are co-
operating ICT enterprises, competing ICT enterprises, institutions, final consumer-users,
operators, regulation authority and entrepreneurs that cooperatively or rivalry interact with
each other to achieve the development outcomes they desire to, by taking advantages of their
contextual factors.
The next step in the analysis was grouping these open codes into categories. In this stage the
codes which were similar to each other were categorized into the similar groups. Based on the
grouping similar codes into categories and Cresswell’s suggestions (2006) for developing axial
coding, an axial coding of the ICT interacting entities was developed. (Figure 13)

- ICT Service Providers

- Access - ICT Enterprises’ Suppliers
- Quality - ICT Enterprises’ Partners
- Affordability - ICT Product Providers
ICT ICT Providers - Operators
Infrastructure

- Individuals ICT
- Households Policy and - Regulatory
- Government ICT Users Entities Rule Authority
- Businesses Makers
- Institutions
- - Governments
Entrepreneur
Supportive & Innovative
- Universities Institutions - Financial Institutions
- Innovation Centers - Standard setting Institutions
- Legal Institutions - ICT incubators & Technology Parks
- ICT R&D Institutions

Figure 13. Axial coding of ICT Entities

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In the following line I will explain the ICT Entities of ISED ecosystem framework which are the
result of the interpretive research method analyses.

 ICT infrastructure entity:

ICT infrastructure entities contain various ICT services and products and ICT equipment. For
instance, mobile phones and internet-based applications such as email, blogs, forums, social
networking sites (SNS) such as Facebook and Twitter, Voice Over Internet Protocol (VOIP)
programs such as Skype, equipment like computers, servers, platforms which Internet
providers use to deliver content and applications. All these ICT products, application and
equipment make up a dynamic system that cause ICT-based socio-economic development
regarding its contextual factors.

 ICT enterprises:
The other ICT interacting entities of the ICT-based socio-economic ecosystem framework are
ICT enterprises. ICT enterprises consist of operators, ICT service providers and ICT producers
that provide ICT infrastructure, ICT services and ICT product as ICT technologies with given
quality and affordability characteristics in the exchanging market. These ICT enterprises that
are on the supply side, are fragmented into a) co-operating ICT enterprises and b) competing
ICT enterprises. Co-operating ICT enterprises consist of ICT enterprises’ suppliers, ICT
enterprises’ partners and finally intermediate users of ICT enterprises that use the output of
other ICT enterprises. Competing ICT enterprises compete with each other in both ICT
product markets and ICT factor markets such as the ICT labor markets, the capital markets,
the market for management or entrepreneurial resources.

 Final consumer-users:
The second group of interacting entities are final consumer-users of ICT enterprises - on the
demand side. They are divided into Households and individuals, Businesses and government.
These group of interacting entities -with various requirement and priorities- apply various ICT
services and products. They use and benefit from usage of ICT technology with respect to

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their budget constraints, leisure time, cultural and social background, job status and duty
priorities.

 Government:
Not only government as a big user demands a large amount of ICT services and products but
also in relation to the ICT technology has a policy making position. The main role of
government in position of policy making is to develop enabling legislation and regulatory
framework for market formation and beneficiary of ICT private sector potential in the market.
Government also designs plans, policies and strategies to incentive local and foreign
investors, encourage software development for export, support research&development
potential in ICT sector, set up affordable and secure ICT infrastructure, provide access to
national database, and develop e-services and ICT applications in government, in trade, in
health and education.
But it does not mean that government is almighty. Government tries to deal with a greatly
complicated ICT-based socio-economic ecosystem so it’s ability to centrally and rationally
plan should always be doubted in such a complex system. Therefore, government should
systematically record and monitor the performance of national ICT-based socio-economic
ecosystem and compares performance with the best or with the other comparable ICT-based
socio-economic ecosystem. Intervention can be as prioritization of ICT area, highlighting both
ICT opportunities and ICT weaknesses and establishing an appropriate economic incentive
Regime. However universal service obligation (USO) in remote areas requires direct
intervention of government because of the market failure to deliver this kind of services.

 Regulatory Authority:
In all countries, there is usually a regulatory authority of ICT sector to regulate specially the
ICT sector and activities. The regulatory institution not only determine what ICT enterprises
can and cannot do but also manages and controls affordability and quality of ICT supply to
the final consumer-users (individuals/households and businesses). The regulatory institution
regulate activities of pertinent ICT enterprises like operators, ICT producers and ICT service

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providers who provide and sell ICT technologies and foster the long-term development of the
ICT. Summarily effective regulation has resulted in many benefits, such as greater economic
and technological growth, increased investment in the ICT sector, better quality of service,
lower prices and higher penetration rates. The level of regulatory intervention will vary from
country to country, and will depend on various factors, including the level of market maturity,
the legal and regulatory framework, and the regulatory issues arising from new technologies
and services.

 Entrepreneurs:
The entrepreneurs convert innovative ideas to new ICT products and services through
innovative technological processes on the supply side. The entrepreneurs’ activities could be
conducted within technology parks and ICT incubators or ICT research centers or through
universities. Activities of entrepreneurs are affected by the regulatory institutions. In other
words, regulatory functions directly or indirectly influence entrepreneurs’ activities from new
idea formation to the product commercialization.

 Universities:
The main role of universities in the ISED ecosystem framework is providing skilled-person-
power and promoting high quality human resources. Universities also back up research and
development process in ICT technology. World Bank report (2002) identified two main
functions of universities in supporting knowledge-driven economic growth:
“The capacity to train a qualifies and adaptable labor force including high level
scientists, professionals, technicians, teachers for basic and secondary education,
as well as future government.”
The capacity to generate new knowledge”

 ICT incubators and technology parks:

Technology parks and ICT incubators prepare the ground and the necessary infrastructure for
nurturing entrepreneurs and promoting the activities of ICT enterprises in the private sector

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and also increase competitiveness and growth of knowledge-based activities. As well, they
encourage public-private partnership, to secure a better role for the ICT private sector in the
national economy, and to boost local economy.
 Institutions: The ICT-based socio-economic ecosystem consists of more than co-
operating ICT enterprises, competing ICT enterprises and final consumer-users of ICT
enterprises. Institutions are the next group of interacting entities in an ICT-based socio-
economic ecosystem that shape aforementioned entities and also form innovative
capabilities. The determined institutions for ISED ecosystem framework are regulatory
institution, universities, ICT incubators and technology parks, ICT research institutes,
standard setting institutions and financial institutions. These institutions have been
explained in the following line;
a. ICT Research institutes: both governmental and non-governmental research
institutes play significant role in development, design and implementation of
successful operational projects in ICT sector. Also they develop usage of suitable
theories adapted to country needs in ICT sector.
b. Standard setting institutions: in a greatly complicated ecosystem like ICT-based
socio-economic ecosystem, standards yield a pivotal collaborative method that
helps to develop knowledge. Generally, standards are set within standard setting
organizations (SSOs), which can be both purely private or involve varying degrees
of government oversight. The development of standards results in many benefits,
which vary depending on the purpose of the standard and the product or service
they cover.
c. Legal institutions: in ICT sector institutions relating to intellectual property (IP)
rights and patenting have a crucial role in enhancing the ICT enterprises ability to
produce vying ICT service/products. To sum up, these institutions improve the
innovative capabilities of entrepreneurs and ICT enterprises.
d. Financial institutions: financial institutions encompass public or private investors
such as public or private banks or venture capitalist.

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Each of the ICT Entities of ISED ecosystem framework has particular position in the framework.
These positions have been depicted in table 15

Table 15. Position of ICT entities

Position of ICT Entities

D Demand-side
S Supply-side
I Intermediary
N Nurture
P Policy/rule making

It means that interacting entities place at least in one of these positions with respect to their role
and their interactions. Some entities are placed in more than one position regarding their various
roles in this ecosystem framework. Demand-side position (position “D”) encompasses entities
that use ICT services and buy ICT based technology products throughout their price and quality.
Supply-side Position (position “S”) includes entities that provide and sell ICT infrastructures, ICT
services and ICT products as ICT technologies. In intermediary position (position “I”), there are
ICT infrastructure entities consist of services, products and infrastructure with given quality and
affordability characteristics. The intermediary position is a bridge between demand-side, supply-
side and other entities who have a role in the ISED ecosystem framework. Nurture position
(position “N”) includes entities that not only nurture human capital in ICT sector but also invest,
support, facilitate and accelerate research and development activities on new technologies in ICT
sector. Furthermore institutions such as standard setting institutions and legal institutions that
have been located in “N” position guide the ICT market to operate better and enhance the ICT
enterprises procedures. Finally, in Policy-making position (position “P”) there are entities such as
government and regulatory authority that mange, design policies and regulate the ICT sector and
activities for market formation and beneficiary of all entities in the market.

4.3 Dimensions of ICT Entities’ Interactions

As explained in previous section ICT enterprises are divided into two main groups, co-operating
ICT enterprises and competing ICT enterprises. The interactions between and within these two

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groups, can be divided into two main types; cooperative interactions and competitive rivalry
interactions.
The interactions type between competing ICT enterprises such as different active operators,
various ICT service providers and ICT producers are both competitive and co-operative. It means
that not only they compete with each other in their products and factor markets in terms of
quality and affordability characteristics, but also they learn from their competitors, imitate them
and reap benefit from the flow of knowledge. However, from the viewpoint of enterprises that
lose their potential to gain from their knowledge, these knowledge flow act as an externalities.
Consequently, the interactions between this groups of ICT enterprises not only are competitive
type, but also are co-operative type.
Moreover, ICT enterprises interact with their suppliers and partners to supply their factor market
requirements. These interactions increase their power to remain, succeed and make progress in
the ISED ecosystem framework. Therefore the interactions between ICT enterprises and their
suppliers and partners are cooperative.
The interactions between final/intermediate users such as government as the biggest users of
ICT services and productions, individuals and households with their suppliers -could be an
operator, an ICT service providers or an ICT producers- are another co-operative symbiotic
interaction. Final/intermediate consumers through using the ICT technologies obtain applicable
knowledge and reflect this knowledge to the suppliers of ICT service or ICT producer. In other
words, these interactions are formed in a market with advantages for users and also profit for
suppliers.
The main feature of co-operative interactions is originating new knowledge between ICT
technology users and ICT technology creators through learning, imitating, exploring or adapting.
These knowledge flows, as the most important force, cause dynamically changing in over the ICT-
based socio-economic ecosystem. The crucial point in ICT-based socio-economic ecosystem is
that all the symbiotic interactions as continually advancing processes initiate knowledge flow all
over this ISED ecosystem framework and generate dynamic changes.
All these entities and interactions are formed and accomplished within a given context with
specific economic and social conditions as well as cultural and political circumstances. At the

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national level and with respect to sustainable livelihood framework (SLF, 1999) we could
interpret these economic, social, cultural and political circumstances as a portfolio of national
capitals -each country has its own capital portfolio. These capitals could, depending on ICT
enterprises conversion factors, institutional settings and interactions between them, be
converted into ICT-based socio-economic outcomes/impacts.
The interactions among various ICT Entities of ISED ecosystem framework are multi-dimensional.
Not only the nature of these interactions are either co-operative or competitive, but also there
are five dimensions for these interactions.

Table 16. Dimensions of ICT entities’ interactions

Dimension of Interactions
D1 Information flow
D2 Provide/sell - Use/buy
D3 Fund/nurture
D4.1 Operational/procedure flow
D4.2 Policy/rule flow
D5 Innovation flow

Each interaction involves dimension “D1” that is information flow. This dimension is a two-way
flow that provides each entity in the ecosystem framework with information about other entities
to make an interaction. For instance, the final consumer/user gets information about the ICT
service or product and also about the ICT enterprise that is seller. Simultaneously, the ICT
enterprises by selling to the final/intermediate users gets information about the consumer/user.
Also, final/intermediate consumers through using the ICT technologies obtain applicable
knowledge and reflect this knowledge to the suppliers of ICT service or ICT producer. This
dimension of interaction could be generalized to all interactions that embedded in this ecosystem
framework. Dimension D1 causes dynamically changing in over the ISED ecosystem framework
through obtaining applicable information and reflecting this information.
Some interactions involve dimension “D2” such as interactions between entities in supply-side
Position (position S) with other entities in the ISED ecosystem framework. For example an
operator sells or provide its ICT service or ICT infrastructure to final users, intermediate users or
institutions. The main point in dimension “D2” is that although an ICT service or ICT infrastructure

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are provided by the operator to other entities, some entities may not directly pay for these ICT
services or ICT infrastructures. Payment will be made by a third party. It means that this
dimension of interaction does not necessarily result in a financial flow. For instance, final users
in remote regions don’t pay for universal service obligation (USO).
Dimension “D3” of interactions is a fund/nurture interaction between and within entities in
nurture position (position N) and entities in intermediate position (position I). For example,
technology parks and research institutes empower and nurture each other through high-skilled
labor force and innovative idea (within position N). Furthermore entrepreneur convert innovative
ideas to new ICT product and services (between position N and position I).
Dimension “D4” of interactions includes either policy/rule flow (dimension “D4.1”) or
operational/procedure flow (dimension “D4.2”) flow between entities in policy/rule making
position (position p) and some entities in Nurture position (Position N). The policy/rule flow or
operational/procedure flow not only determine rules under which the ICT entities of ISED
ecosystem framework operate but also cause more efficient provision and production of ICT
technologies tailored to the diversity of ICT entities. For example ICT standard setting institutions
and intellectual property laws affect the operations and procedures of some entities of ISED
ecosystem framework.
The last but not the least dimension of interactions is an innovation flow (dimension “D5”)
interaction. This dimension employs the results of other four dimensions to innovate. It means
that innovation emerges from this recent dimension of interactions in this framework. This
dimension of interactions is the fuel of the ISED ecosystem framework.

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 Table 17. Correspondence between ICT entities and dimensions of interactions

ICT enterprises

incubators and
ICT technology

Entrepreneur

ICT Research

ICT Standard
Government
Position of

Universities
households
Individual /

institutions

institutions

institutions
Regulatory
Businesses

tech-parks
institutes
Financial
entity

setting

Legal
Entity

D1,D2, D1,D2, D1, D2, D1, D3, D1, D3, D1, D3, D1, D2, D1, D2,
S ICT enterprises D1 D1,D2 D1,D2 D1,D2 D1, D3
D4 D5 D4 D5 D5 D5 D4 D4
Individuals and
D D1,D2 D1 D1 D1, D4 D1,D2 D1 D1, D4 D1 D1 D1 D1 D1 D1
households

D Businesses D1,D2 D1, D1, D1, D4 D1,D2 D1 D1, D4 D1 D1 D1 D1 D1 D1

D1,D2, D1, D3, D1, D3, D1, D3,

D,P Government D1, D4 D1, D4 D1, D1,D2 D1, D4 D1, D4 D1,D4 D1, D4 D1, D4
D4 D4 D4 D4

D1,D2, D1, D2, D1, D3, D1, D3, D1, D3, D1, D2, D1, D2,
I ICT technology D1, D1, D1, D1, D1, D1, D3
D5 D4 D5 D5 D5 D4 D4

D1,D2, D1, D1, D3, D1, D1,D3,

D,N Entrepreneur D1, D4 D1, D1, D4 D1, D1, D1,D3 D1 D1
D5 D4,D5 D5 D3,D5 D5
D1, D2, D1,
P Regulatory
D4
D1, D1, D4 D1, D4 D1,
D4,D5
D1, D1, D4 D1, D4 D1, D4 D1, D4 D1,D4 D1, D4

Financial
N,D D1, D3 D1, D1, D1, D4 D1, D1,D3 D1, D4 D1, D1, D3 D1, D3 D1, D3 D1 D1
institutions

D1,D2, D1, D3, D1, D1, D3, D1, D3,

N,D Universities D1, D1, D1, D1, D4 D1, D3 D1, D1,D4 D1
D5 D4 D3,D5 D5 D5

ICT Research D1,D2, D1, D3, D1, D1, D3, D1, D3,
N,D D1, D1, D1, D1, D4 D1, D3 D1, D1, D4 D1,D4
institutes D5 D4 D3,D5 D5 D5

ICT incubators D1,D2, D1, D3, D1,D3, D1, D3, D1, D3,
N,D D1, D1, D1, D1, D4 D1, D3 D1, D1,D4 D1,D4
and tech-parks D5 D4 D5 D5 D5
ICT Standard
D1, D2,
N,D setting D1, D1, D1,D4 D1, D1, D1,D4 D1, D1,D4 D1, D4 D1,D4 D1, D1, D4
D4
institutions
D1, D2,
N,D,P Legal institutions D1, D1, D1, D4 D1, D1, D1, D4 D1 D1 D1,D4 D1,D4 D1, D4 D1,
D4

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 4.4 Capital Portfolio in ISED Ecosystem Framework

All ICT interacting entities and interactions among them which explained in previous parts, take
place within an environment with particular contextual factors that which altogether form an
ICT-based socio-economic development ecosystem framework.
The third sub-question that was answered dealt with the capital portfolio of the ISED ecosystem
framework. In this research the capital portfolio of pertinent context have been defined the
capacity of a nation to fully leverage ICTs to obtain socio-economic development and were
measured by a set of assets. The extent to which a country benefit from ICTs to obtain meaningful
level of ICT-based socio-economic development related to its ICT entities (IE) and the present set
of assets that might be considered as weaknesses or strengths of a nation. This set of assets which
have been introduced as the contextual factors of nations were labeled “Capital Portfolio” of ISED
ecosystem framework. The presented ISED ecosystem framework in this research, associate “ICT
entities” with “capital portfolio” in order to achieve “degrees of ICT-based socio-economic
development”. In the following line I will explain the components of capital portfolio of ISED
ecosystem framework which are the result of conducting grounded theory research method to
answer third sub-question.
To do this, a list of main contextual factors was developed from analyzing 25 semi-structured
interviews with ICTD experts and ICT industry representatives. About 21 separate codes were
determined on the basis of transcribed interviews. Table (18) shows the extracted open codes.
The frequency of a code means that code was saturated and more data gathering doesn’t lead
to more codes.
Table 18. Open coding of ICT interacting entities

Frequency
ICT industry
Open Codes ICTD experts
representatives
(16 interviewees)
(9 interviewees)
Social Safety 16 7
Gas Resources 15 4
First phase and
Economy Structure 16 9
second phase of
Perception of happiness 11 3
semi-structure
Government Structure 16 9
interviews Literacy 16 9
National Income 14 9

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 Civil Lliberties 14 6
Population 16 5
Business Structure 12 9
Entrepreneurial Activities 10 9
Environmental structure 11 3
Research and Development Structure 15 7
Oil Resources 16 5
Life expectancy 5 3
Human Rirhts 13 6
Health expenditures 10 5
Entrepreneurial Intention 11 8
Women Rights 13 7
Labor Force 15 9
Fear of Failure of a business 11 -

The next step in the analysis phase was grouping these open codes into categories. In this stage
the codes which were similar to each other were categorized into the similar groups. Based on
the Cresswell’s suggestions (2006), an axial coding (Figure 14) of the capital portfolio components
was developed.

Oil and Gas Resources Happiness

Health
Women Rights

Literacy National
Civil liberties
Natural
Labor Force Capital
National National Human Rights
Human Social
Population Capital Social Safety
Capital
Capital
National Portfolio National
Process& Renewal
Economy Structure Structural Capital
Capital National Entrepreneurship
Government Structure
Financial
Environmental Structure Capital Research and
Development (R&D)
Business Structure
National Income

Figure 14. Axial coding of capital portfolio

Totally, this research propounds an ecosystem framework that encompasses not only the
interactions and ICT entities of ICT-based socio-economic ecosystem but also the components of
capital portfolio of the pertinent context (contextual factors). The reciprocal interactions of these

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interacting entities plus taking advantages of capital portfolio components of pertinent context
might lead to achieve the socio-economic development outcomes which these entities desire to.
In this way, the proposed ecosystem framework defines and locates six components of capital
portfolio (CP). In following line, these components have been defined.

 National Human Capital (NHC)

National human capital refers to a countries’ capability in labor force, literacy, young people
and other competencies that result in realizing and implementing tasks.

 National Process and Structural Capital (NPSC)

National process and structure capital refers to all business, government, and economy
structures that enhance the countries’ capability to benefit from tangible and intangible
assets to create value.

 National Renewal Capital (NRC)

National renewal capital reflects a country’s innovation system and Entrepreneurial activities
to improve and renew itself to make progress.

 National Social Capital (NSC)

National social capital refers to a country’s capabilities in political rights, women rights, civil
liberties, happiness, and social safety that provide an attractive atmosphere.

 National Financial Capital (NFC)

In this study national financial capital is defined as financial wealth of a nation as a result of
past national economic activities which measured by gross domestic product (GDP) at
purchasing power parity (PPP) per capita

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  National Natural Resources (NNR)
Here in this study, national natural resources refer as:" A country’s natural wealth and
resources which potentially have economic value for country and also can provide and
support other value creative processes".

4.5 Dimensions of ICT-based socio-economic development

The literature review on dimensions of ICT-based socio-economic development revealed that

different scholars like Baqir (2009) and Madon (2001) have defined this phenomenon differently
and there is not complete consensus on the dimensions of ICT-based socio-economic
development. Moreover, scarce research has been done to expand and modify the socio-
economic development dimensions that they have defined. To increase the degree of consensus
on dimensions of ICT-based socio-economic development, the following steps were pursued.
Accordance to literature on dimensions of ICT-based socio-economic development especially,
determined dimensions by Baqir (2009) and Madon (2001), a questionnaire (Appendix 2)
including initial list of ICT-based socio-economic development dimensions was designed.

Table 19. The initial list of ICT-based socio-economic development

Baqir’s perspective (2009) Madon’s perspective (2001)

- Quality of life consist of opportunities for - Social wellbeing contains health, education,
education and healthcare, participation in the poverty alleviation and empowerment
political process, self-efficacy, self-fulfillment - Economic growth includes economic productivity
- Economic transformation includes new business - Political wellbeing consist of democracy
opportunities, effective management of current - Physical environment contains sustainable
business development
- Cultural evolution includes changes in social
behavior, westernization, addiction of ICT use,
waste of time, pornography
- Personal security and criminal use
- Social contact contains staying in touch with
family, develop new friendship

The prepared questionnaire was distributed to the participants. Through this questionnaire the
“Relevance” of each dimension of ICT-based socio-economic development was determined by

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participants. The participants also had an opportunity to add new dimensions that they
considered important to complete the initial list of dimensions. Moreover, the perception of
participants about progressive and disruptive aspects of these dimensions were asked with
respect to discourses on ICT transformation (Avgerou, 2010). It means that in determining the
relevance of each dimensions to ICT-based socio-economic development as outcome of ISED
ecosystem framework in addition to advancing factors, disturbing factors (dark side of ICT) have
been taken into account. The results of this questionnaire led to more increase in the degree of
consensus.
The expert panelists that participated in this part of research were ICTD experts in Middle East
and North Africa (MENA) region.
To obtain consensus about initial list of dimensions of ICT-based socio-economic development, a
two-round Delphi research method was carried out.

In designed questionnaire, the “Relevance” characteristic of each dimension was asked in a Likert
scale of four points, from “unimportant” to “very important”.

During analysis of the results of the first round of Delphi, the dimensions were classified into
three groups based on the answers of the expert panelists to “Relevance” characteristic. In
designed questionnaire (Appendix 2), the “Relevance” characteristic of each dimension was
asked in a rating scale of four points from “unimportant” to “very important”. To analyze the
results we calculated the percentage in which the determined dimensions in “Relevance”
characteristic were labeled as “important” or “very important”. If a dimension in the “Relevance”
characteristic had been answered “important” or “very important” by at least 66% of experts,
this dimension was maintained either without changes or with some changes. Otherwise, the
dimension was removed from the list of dimensions and was not assessed in the next round. On
the basis these criteria to maintain or remove the dimension, three groups of dimensions were
proposed:

Group 1- maintained dimensions were those in which were maintained either without
changes or with some changes
Group 2- Added dimensions were those dimensions in which were proposed by Expert
panelists

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 Group 3- Deleted dimensions were those in which have been removed from initial list

In second round more assessments were carried out regarding those dimensions in which had
been added by participants. (Dimensions in group 2). Moreover, the perception of participants
about progressive and disturbing impacts of maintained dimensions (dimensions in group 1) and
added dimensions (dimensions in group 2) were asked. The results have been obtained in second
round enjoy high degree of consensus.
As a result of conducting a two-round Delphi research method a set of ICT-based socio-economic
development dimensions has been finalized as the outcome of proposed ISED ecosystem
framework which explains both progressive and disturbing impacts of ICT.
Then we categorized the modified list of ICT-based socio-economic development dimensions on
the basis of five areas of freedoms that have been suggested in Sen Sen’s capability approach
(1999). These five areas cover simultaneously all various aspects of development such as social
aspects, economic aspects, political aspects and cultural aspects.
Amartya Sen (1999) defined development as “A process of expanding the real freedoms that
people enjoy to lead the lives they have reason to value”. Five freedoms that suggested by Sen
are 1) “political freedom”, 2) “economic facilities”, 3) “social opportunities”, 4) “transparency
guarantees” and 5) “protective security”.
We merged more similar areas into one area. For example we merged “Political Freedom” and
“Transparency Guarantees” as one area. Also, “Social Opportunities” and “Protective Security” as
one area. Since all these areas focus on progressive impacts of ICT, we determined one more area
regarding disturbing impacts of ICT.
The dimensions of ICT-based socio-economic development, especially disturbing dimensions
have been determined within the context of ICT development in MENA region with its particular
cultural, religious and social conditions. It means that one might expect different dimensions in
other context.
Table 20 illustrates the final dimensions of ICT-based socio-economic development during a two-
round Delphi research method. These dimensions have been explained in more detailed in the
following lines:

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 Table 20. Dimensions of ICT-based Socio-economic development

Main aspects of ICT-based

Dimensions of ICT-based socio-economic development
socio-economic development
Democratic participation of citizens
Political mobilization
Transparency of governmental agencies
Enhance accountability
Accelerating the political changes
Political Freedom &
Participation in the political process
Transparency Guarantees
Freedom of association
Freedom of expression
Social movements
Awareness of political issues through public access to political web sites,
social networks and internet blogs
More competitive SMEs
High-paying jobs
New business opportunities
Advancing impacts

Effective management of current business

Labor productivity
Economic Facilities
Poverty alleviation
Network externalitie (direct or indirect)
Faster and more efficient interactions with other businesses
Lower transaction cost
Knowledge spillover or learning effects
Health care opportunities
Education and learning opportunities
Empowerment
Changes in limitative customs
Evolution of social behavior
Develop new friendship
Social Opportunities &
Staying in touch with family and friends
Protective Security
Social interactions
self-efficacy
self-fulfillment
Environmental quality (ecology)
Sense of security
Leisure time
Pornography / Child pornography
Trickery activities
online fraudulence
Software piracy rate
Disturbing
impactss

Cyber-terrorism
Criminal/Illegal use of ICT &
e-terrorism
Cultural Changes
Addiction of ICT use
Changes of socio-cultural norms
Changes of ideological values
Westernization
Personal privacy

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  Political Freedom & Transparency Guarantees
Internet-based applications, social networking sites (SNS), Voice over Internet Protocol (VOIP)
programs and mobile phone play an important role in accelerating the political changes and
enhancing accountability.
The e-government applications/facilities would reduce ambiguities in government and business
transactions and enhance accountability and impede corruption related issues considering some
government officials.
On the political aspect, ICT technologies are seen as a catalyst for civil democratic changes. ICTs
can stimulate fast democratization in the countries of the world where democracy has not been
embedded. ICTs can help the actors by stimulating important parts of population and making
alternative discourses to non-democratic (authoritarian or monarchical) regimes. Moreover, ICTs
can support democratic consolidation by contributing to the development of an “open public
sphere” and helping pro-democracy actors to remain engage in transition phase. The role of
information communication technologies could be discussed with respect to their importance in
strengthening transitions to democracy.
The Arab Spring is the most important and top example of the use of ICTs for political changes.
There is a broad agreement that new communication tools enabled citizens in Egypt and Tunisia
to share information which played an important role as accelerators of the social protests that
ended the previous regimes. People employed these tools to express their dissatisfaction with
economic and political situation and also contact others who were unhappy. Mobile phones
(particularly smart-phones), video-sharing platforms, and social networks, were applied
increasingly by Arab activists to gather and spread information that result in weakening the
regimes’ control. The main point is that ICTs should be considered as a facilitator and accelerator
factor that just helped Arab activists to conduct and organize protests over the democratic
changes, rather than decisive factor in triggering the Arab spring.

 Social Opportunities & Protective Security

There are many areas of ICT that could increase social opportunities and enhance quality of
people’s life. The role of ICT in poverty alleviation by underlining the extended opportunities for

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vulnerable people and poor people especially in deprived region is noticeable. The use of ICT can
empower individuals through more learning opportunities. The learning opportunities has been
wide spread from access to free educational contents to “virtual learnings”. Moreover, the use
of ICT is considerable in providing rural healthcare facilities due to most of the rural areas in
MENA countries suffer from the shortage of qualified health service.
Also, role of ICT in increasing entrepreneurial opportunities is considerable. ICT can transform
interactions and lead to free and open interactions.
In MENA region there are several countries with high rate of highly-skilled emigrants due to
unstable political condition. So ability to stay connected with family is a very important dimension
of ICT-based socio-economic development.
Increased opportunities for entertainment is another dimension of ICT development that are
appropriate for spending leisure time. Another dimension of ICT-based socio-economic
development is awareness of the social issues.
In some less developed countries in MENA region, ICT devices have sometimes safety
mechanism. These devices play an accompanying role for citizen especially women that take care
of them through staying in touch with family if they found their self in an unusual situation.

 Economic Facilities
Economic facilities refers to effective management of business, increase in the size of existing
business, new business opportunities, developing new business ideas, changing the nature of
competition. This dimension of ICT-based socio-economic development result in creating high-
skilled and high-paying jobs, making advantages in many industries through spillover effect, and
accelerating the creation of more competitive SMEs. Information and communication
technologies also enable firms to interact with other businesses faster and more efficiently,
facilitate communication and decrease the transaction costs. Also, ICT development could
generate notable direct and indirect “network externalities10” and “knowledge spillovers11” or

10. Network externalities, which occur when the efficiency or value of a product or service increases as the product or service is
adopted by more users.
11 . The knowledge that enables a firm or industry to successfully adopt ICT technologies tends to naturally spread or spill over
to other firms and industries.

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learning effects. Furthermore, ICT development can improve “total factor productivity” and
“labor productivity”.

 Criminal/Illegal use of ICT & Cultural Changes

In addition to positive and progressive dimensions of ICT development, the disturbing dimensions
of ICT-based socio-economic have been taken into account in this research.
ICT development plays critical role in the evolution of cultural values, Trickery activities, online
fraudulence, e-terrorism12, cyber-terrorism13, child pornography, software piracy rate, addition
of ICT use that cause a lot of waste of time, changes of social and cultural norms are some
disturbing dimensions of ICT-based socio-economic development.
The particular cultural and religious conditions of MENA countries region carry implications for
areas of ICT applications. Notwithstanding, many efforts to restrict the use of internet contents
that are considered socially and religiously inappropriate, ICT-based cultural changes are
inevitable in this region. Some participants considered it a threat for traditional customs and
religious values (socio-cultural norms). ICT may cause cultural evolution that is not approved by
many citizens in MENA region. Moreover, access to the internet facilitate access to contents that
are considered “sexually inappropriate”.

12 . An internet based terrorism or an online war triggered by e-mails or sms or mms instigating political or religious or regional
sentiments of the people across the world.
13 . Premeditated, politically motivated attack against information, computer systems, computer programs, and data which
results in violence against non-combatant targets by sub-national groups or clandestine agent

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 4.6 ISED ecosystem framework

Consequently, ICT entities, interactions between entities and national capital portfolio, all
together, accomplish the ICT-based socio-economic development (ISED) ecosystem framework
(figure 15).

The interactions among ICT entities by taking advantages of specific capital portfolio of pertinent
context lead to degrees of ICT-based socio-economic development for each country with specific
development path.

Based on the result of qualitative phase of this research, The ICT-based socio-economic
development as the outcome of intended framework has both progressive and disruptive
transformations. Three progressive dimensions including economic facilities, social
opportunities and protective security, political freedoms and transparency guarantees, and one
disturbing dimensions including Criminal/Illegal use of ICT & Cultural Changes were determined
for ICT-based socio-economic development in this research.

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 Pertinent Context

National Capital Portfolio

National Human Capital National Financial Capital National Social Capital

National Process&Structural Capital National Renewal Capital National Natural Resources

Supply-side Position Demand-side Position

Cooperative/competing Cooperative/competing
Intermediary Position

Progressive Impacts
Disruptive Impacts

ICT Technologty
ICT Enterprises Final Consumers-Users
Qualit Affordability
Development Outcomes: ICT-based socio-economic Development

Development Outcomes: ICT-based socio-economic Development

ICT Producers y Individuals / Households
Content, Applications,
Services*
Operators
Businesses
Search and Innovation
ICT Service Providers
Platforms*
Government
ICT enterprises’ suppliers Connectivity (TCP/IP
interface)*
Intermediate Consumers-
Network Operating* users (using ICT suppliers’
ICT enterprises’ partners
output as their input to
Information Flow
Innovation Flow

produce)

Nurture Position
Entrepreneurs Financial Institutions

Universities ICT Reasearch ICT Incubators and Technology

Institutions Parks
Progressive Impacts

Disruptive Impacts
Standard Setting Institutions Legal Institutions

Information
Flow

Policy-Making Position
Regulatory Authority

Government

National Capital Portfolio

National Human Capital National Financial Capital National Social Capital

National Process&Structural Capital National Renewal Capital National Natural Resources

Figure 15. ICT-based socio-economic development (ISED) ecosystem framework

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 4.7 Hierarchical Structure of Pillars and Sub-pillars of ISED Ecosystem Framework

In this section a hierarchical structure on the basis of different parts of ISED ecosystem
framework was formed. This hierarchical structure includes two main pillars and ten sub-pillars.
All these pillars and sub-pillars correspond to different elements of ISED ecosystem framework.
As explained in previous sub-sections, ICT entities and capital portfolio are two main elements of
the ISED ecosystem framework. These two elements construct pillars of hierarchical structure.
The interacting entities (IE) pillar and capital portfolio (CP) pillar contain 4 sub-pillars and 6 sub-
pillars, respectively. In what follows, all these sub-pillars are explained.
The interacting entities (IE) pillar consists of four sub-pillars:
 ICT infrastructure entity (IIE): ICT-based socio-economic development as a process
requires technological capacity that in this research is reffered by ICT infrastructure entity
with three main characteristics including access, quality, and affordability. In other words,
ICT sectors could have enabling role only if these three features be present and ready;
 Provide/use entity (PUE): this entity includes all players that located in “Demand –side”
and “Supply-side” positions of ISED ecosystem framework. These players use, buy,
provide, and sell ICT services and products with given quality and affordable
characteristics;
 Rule/procedure entity (RPE): all entities located in “Policy-making” position of ISED
ecosystem framework.
 Fund/innovation entity (FIE): all entities located in “Nurture” position of ISED ecosystem
framework.

The national capital portfolio (CP) pillar is consist of six sub-pillars which all correspond to the
components of national capital portfolio. These 6 sub-pillars are as follows:
 National Human Capital (NHC): people’s capability such as knowledge, education and
other competencies in realizing national tasks and implementing national value creation;
 National Process and Structure Capital (NPSC): all systems and structures that enhance
the countries’ capability to benefit from national tangible and intangible assets to create
value;

119
  National Renewal Capital (NRC): a country’s innovation capabilities to improve and renew
itself to make progress;
 National Social Capital (NSC): a country’s capabilities in providing an attractive and
competitive atmosphere;
 National Natural Resources (NNR): a country’s natural wealth and resources which
potentially have economic value for country;
 National Financial Capital (NFC): financial wealth of a nation as a result of past national
economic activities.
The figure (16) shows the hierarchical structure of pillars and sub-pillars of ISED ecosystem
framework.

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 ICT-based socio-economic
development ecosystem framework

Capital Portfolio (CP) ICT Entities (IE)

National Human Capital (NHC) ICT Infrastructures Entity (IIE)

National Social Capital (NSC) Provide/Use Entity (PUE)

National National Resource (NNR) Rule/Procedure Entity (RPE)

National Process&Structure Capital Fund/Innovation Entity (FIE)

(NPSC)

National Renewal Capital (NRC)

National Financial Capital (NFC)

Figure 16. ISED Hierarchical Structure

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 4.8 Appropriate Indicators to Measure ISED Ecosystem Framework’s elements

The quality and accuracy of the quantitative phase depends on the quality of basic data,
improvements in data collection and indicator development. In other words, the quality of final
results will be mainly influenced by the appropriate and relevant indicators. Ideally, indicators
must be selected on the basis of the pertinent theoretical framework and relevant concepts.
Drawing on OECD Quality Framework (2011), in selecting data and indicators these four
dimensions should be taken into account: 1) “relevance”, 2) “validity”, 3) “reliability”, and 4)
“comparability”. In this research we considered an iterative process to select indicators for ICT
entities and capital portfolio of the ISED ecosystem framework. Various indicators considering
main elements of this framework were selected in three stages.

Table 21. Indicators selection stages

Stage Types of data source Objective

Reviewing literatures related to capital portfolio 110 indicators and indices
of sustainable livelihood framework, resource extracted by reviewing
1st stage: providing
portfolio of choice framework, network related literatures
initial list of
readiness index, digitization measure, ICT
indicators
development index, ICT price basket, ICT
performance measure
The expert panelists
(composed of 12
participants) received
2nd stage: conceptual
Focus group discussion (FGD) general overview on the
consistency
categorized indicators and
contextual information about
the work they had to do
Verifying the accuracy and
3rd stage: achieving
Questionnaires appropriateness of the
consensus
selected indicators

In the first stage, by reviewing capital portfolio of sustainable livelihood framework, resource
portfolio of choice framework, network readiness index, digitization measure, ICT development
index, ICT price basket, and ICT performance measure, 110 indicators were extracted. In the
second stage, a focus group discussion meeting was carried out. The expert panelists were
composed of 12 participants received general overview on the categorized indicators and
contextual information about the work they had to do. Then the appropriateness of defined

122
hierarchical structure regarding pillars and sub-pillars of ISED ecosystem framework were
determined.

Table 22. Pillars and Sub-pillars of ISED ecosystem framework

Capital Portfolio (CP) pillar ICT Entity (IE) pillar

Title of Sub-pillars Dimensions Title of sub-pillar Dimensions
Happiness Access
Social Safety ICT infrastructure
IIE Affordability
NSC National social capital Human Rights entities
Civil liberties Quality
Women Rights
Supply-side entities
Population
PUE ICT Provide/use entities
Literacy
NHC National human capital Demand-side entities
Labor Force
Health
NNR National natural resources Oil and Gas resources ICT Rule/procedure ICT policy-making
RPE
Business Structure entities entities
Government Structure
National process and
NPSC Economy Structure
structural capital
Environmental
Structure ICT Fund/innovation
R&D
FIE Nurturing entities
NRC National Renewal Capital entities
Entrepreneurship
NFC National Financial Capital National Income

To obtain consensus about initial list of indicators that could precisely describe the 10 sun-pillars
of ISED ecosystem framework, a three-round Delphi method was carried out. To analyze the
questionnaires in each round we pursued the procedures which had been applied in Third
Mission Project (Carrión, 2012)

The objective of the first and second rounds of Delphi research method was to identify the most
relevant indicators belong to the ICT interacting entities (IE) and capital portfolio (CP) pillar.
During analysis of the results of the first round of Delphi, the indicators were classified into four
categories based on the answers of the expert panelists to “Relevance”, “Validity”, “Reliability”,
and “comparability” characteristics. These characteristics were described in a Likert scale of four
points, from “unimportant” to “very important”.

To analyze the results we calculated the percentage in which the determined characteristics were
labeled as “important” or “very important”. If an indicator in the “Relevance” characteristic have
been answered “important” or “very important” by at least 66% of experts, this indicator was

123
maintained. Otherwise, the answers to the rest characteristics were considered in order to
decide if the indicator was maintained or not. In the case that the indicator was maintained, all
its characteristics were reconsidered to determine whether the indicator could be maintained
either without modifications or with more modifications through next round of Delphi method.
On the basis of these criteria to maintain the indicator with modifications or without
modifications, five groups of indicators were proposed.
Group 1- Unchanged indicators are those in which are maintained without changes
Group 2- Modified indicators are those in which are maintained with some changes
Group3- Doubtful indicators are those in which are undecided
Group 4- Added indicators are those indicators in which are proposed by Expert panelists
Group 5- Deleted indicators are those in which have been removed from initial list

The indicators were categorized in groups 2, 3, and 4 need more assessments to know if these
indicators will be maintained or not in the final set of indicators. Indicators in group 5 were
removed from initial list of indicators and not appraised in the next round.

Table 23. Template used to analyze first and second rounds of Delphi

Group 1- Unchanged indicators are those in which are maintained without changes
Group 2- Modified indicators are those in which are maintained with some changes
Group3- Doubtful indicators are those in which are undecided
Group 4- Added indicators are those indicators in which are proposed by Expert panelists
Group 5- Deleted indicators are those in which have been removed from initial list
Note: Those indicators which belong to group 5 will be removed from the survey and are not shown in
next Delphi round
Code of
Title of indicators Group
indicators

In second round an assessment was carried out regarding those indicators that a consensus was
not reached during the first round (indicators in group 2 and 3). Furthermore, the new indicators
that proposed in first round by expert panelists were asked to be apprised in second round. The
results achieved in second round enjoyed a very high degree consensus.
In third round of Delphi method the expert panelists were requested to evaluate the
“importance” and “feasibility” of indicators for both IE and CP pillars of ISED ecosystem

124
framework. They were asked to use a rating scale of 1 to 7, from the least to the most important
and feasible. To analyze the results of third round, the values for each indicators regarding
experts’ opinions were calculated. On the basis of each indicator’s importance score, the relative
significance of this indicator could be identified. The degree of feasibility implied whether further
study phases should be defined or not.

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 7 7
IIE7 IIE1 PUE8
PUE9
6
IIE3 6
PUE3
IIE8 IIE5 PUE4 PUE2
IIE4 PUE6 PUE5
5 IIE10 5 PUE7
IIE2
IIE9 IIE6 PUE1

Feasibility
Feasibility

4 4

3 3

2 2

1 1
1 2 3 4 5 6 7 1 2 3 4 5 6 7
Importance Importance

7 7
PRE1 FIE1 FIE2
6 6 FIE5
5
PRE6 5 FIE8
FIE3
PRE2

Feasibility
Feasibility

4 4
FIE6
PRE4 PRE3 FIE4
3 3
PRE5 FIE7
2 2

1 1
1 2 3 4 5 6 7 1 2 3 4 5 6 7
Importance Importance

HC3 HC7 HC13

7 7
SC1 HC1
SC5 HC12HC4 HC8
6
SC2 SC6 6
HC5
SC8 SC4
5 5 HC10 HC11
SC7 SC3 HC9 HC2
Feasibility

HC6
Feasibility

4 4

3 3

2 2

1 1
1 2 3 4 5 6 7 1 2 3 4 5 6 7
Importance Importance
7 7
NR8 PSC8 PSC5
PSC4
6 NR6 NR2 NR3 6 PSC7 PSC2
NR4 PSC6
5 NR1 NR5 5
NR7 PSC10 PSC9 PSC3
Feasibility

Feasibility

4 4
PSC1
3 3

2 2

1 1
1 2 3 4 5 6 7 1 2 3 4 5 6 7
Importance Importance
7
RC3 RC6 RC1
RC9
6 RC2
RC7
5 RC4 RC8 RC11
4 RC5
Feasibility

RC10
3

1
1 2 3 4 5 6 7

Chart 1. Importance and feasibility of selected indicators

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As a result of conducting the three-round Delphi research method a collection of appropriate
indicators have been finalized which explain the sub-pillars of ISED ecosystem framework. The
results of first two rounds of Delphi method reflect the opinion of expert panelists for refinement
of the initial set of indicators. The results of third Delphi round show that all final indicators have
been rated above the average score concerning the “importance”. It verifies the “robustness” of
the final results. Furthermore, third round’s results shed light on the fact that all indicators in
various sub-pillars of capital portfolio pillar are feasible. However, there are some uncertainty
about the feasibility of some indicators on sub-pillars of IE pillar.
The table 24 illustrates the initial and final number of indicators during the first, second, and third
rounds of Delphi research method.

Table 24. Indicators over different rounds of Delphi research method

Number of indicators
Delphi Round Questionnaire
Initial Final
Q1: Accordance to capital portfolio (CP) pillar 64 56
First round
Q2: Accordance to ICT interacting entities (IE) pillar 46 39
Q3 (Revised Q1): Accordance to CP pillar 56 49
Second round
Q4 (Revised Q2): Accordance to IE pillar 39 33
Third round Q5: Accordance to both CP and IE pillars 49+33 49+33

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 Table 25. Indicators of capital portfolio (CP) pillar in Delphi method

Sub-pillars
Time Name of
of capital Dimensions Indicators Measurement / formula
references data source
portfolio
happiness SC1- Happiness index 2013 HDR
SC2- Homicide rate 2008–2011 WDI %, per 100,000 people
SC3- Assault victims 2010 Gallup %, per 100,000 people
National Social Safety SC4- Crime 2007 ICPS %, per 100,000 people
social capital SC5- Perception of safety 2012 Gallup
%, Refers to people answering "yes" to the question: "Do you feel safe
(NSC) walking alone at night?"
Political Rights SC6- Political Rights Index 2013 Freedom house measured on a 1-to-7 (worst) scale
Civil liberties SC7- Civil liberties Index 2013 Freedom house measured on a 1-to-7 (worst) scale
Women Right SC8- Women Right Index 2011 Freedom house measured on a 1-to-7 (best) scale
HC1- Total population 2013 UNFPA Numerical, million
Population
HC2-Share of Young People to total population 2012 WDI Percentage
HC3-Number of tertiary teachers Thousands
HC4-Public expenditure on education 2011 UNESCO %, as a share of GNP
Literacy
HC5-Adult Literacy Rate 2008-2012 WDI %, per 100,000 people
National HC6-Enrolment in Tertiary total 2011-2012 UNESCO Numerical, per 100,000 inhabitants
human capital HC7-Labor force participation 2012 WDI % , as a ratio of total population age 15-64
(NHC) HC8-Employment to population 2012 WDI % of 15+ population
Labor Force HC9-Female labor force 2012 WDI %, as share of total labor force
HC10-Science & engineering Enrolment 2007 UNESCO %, as share of total enrolment
HC11-Brain drain 2011 World bank %, as a share of tertiary-educated population
HC12-Health Expenditure 2012 WDI %, as a share of GDP
Health
HC13-Life expectancy 2012 WDI Numerical
National NR1-Crude Oil Exports 2012 OPEC 1000 billion barrels per day (b/d)
natural NR2-Crude Oil Production 2012 OPEC 1000 barrels per day (b/d)
resources NR3-Natural gas marketed production 2012 OPEC million standard cubic meter (cu m)
Oil and Gas
(NNR) NR4-Natural Gas Exports 2012 OPEC billion standard cubic meter (cu m)
resources
NR5-Exports of Petroleum Products 2012 OPEC 1000 barrels per day (b/d)
NR6-Value of petroleum exports 2012 OPEC Million $
NR7-Output of Petroleum Products 2012 OPEC 1000 barrels per day (b/d)
A nation's ranking on the index is based on the average of 10 sub-
indices: starting a Business, Getting Electricity, Dealing with
Business Structure PSC1-Doing Business 2013 Doing Business Construction Permits, Registering Property, Getting Credit, Protecting
Investors, Paying Taxes, Trading Across Borders, Enforcing Contracts,
Resolving in Solvency
National A nation's ranking on the index is based on the average of 6 sub-indices:
process and Voice and Accountability, Political Stability & Absence of
PSC2-Governance Indicator 2012 WGI
structural Violence/Terrorism, Government Effectiveness, Regulatory Quality,
Government
capital (NPSC) Rule of Law, Control of Corruption
Structure
It is a comparative ranking of the countries of the world according to
PSC3-E-government Readiness 2012 UN two sub-indices: the state of e-government readiness and the extent of
e-participation
Economy PSC4-Economic Freedom Index 2014 Heritage.org Is measured on a 0 (repressed) to 100 (mostly free) value
Structure PSC5-Inflation Rate 2010-2013 WDI (%)

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 A Gini coefficient is measured on a 0-1 value. zero expresses perfect
PSC6-GINI index 2007-2011 WDI equality, where all values are the same and a Gini coefficient of one
expresses maximal inequality
PSC7-FDI (foreign direct investment) inflows 2010-2012 WDI % of GDP
PSC8-Capital goods gross imports 2003-2007 WDI Million $
PSC9-Current account balance 2008 WDI Million $
Environmental
PSC10-Carbon dioxide emissions 2010 WDI Per capita metric tons
Structure
RC1-full-time equivalent (FTE) Researchers 2008-2011 UNESCO %, per million inhabitants
RC2-Gross Domestic Expenditure on R&D ( 2008-2011 KAM %, GERD as a share of GDP
RC3-PCT (patent cooperation treaty)Patents 2013 GCR applications/million pop
RC4-Ventura capital 2013 GCR on a 1-to-7 (best) scale, survay data
R&D RC5-Science and technology parks and
2010 IASP
incubators
RC6-High tech exports 2010 WDI (% of manufactures)
RC7-Technology absorption 2013 GCR on a 1-to-7 (best) scale, survay data
National RC8-Capital goods export 2008-2011 KAM Million $
Renewal A nation's ranking on the index is based on the average of 7 sub-indices:
Capital (NRC) Perceived Opportunities, Perceived Capabilities, Fear of Failure Rate,
RC9-Entrepreneurial Attitudes 2012-2013 GEM Entrepreneurship as Desirable Career Choice, Media Attention for
Entrepreneurship, High Status Successful Entrepreneurship,
Entrepreneurial Intention
Entrepreneurship
A nation's ranking on the index is based on the average of 6 sub-indices:
Nascent Entrepreneurship Rate, New Business Ownership Rate,Early-
RC10-Entrepreneurial Activity 2012-2013 GEM Stage Entrepreneurial Activity (TEA), Established Business Ownership
Rate, Business Discontinuation Rate, Necessity-Driven Entrepreneurial
Activity (% of TEA)
National
Financial National Income GDP per capita ($) 2012 World Bank Numerical, Purchasing Power Parity (PPP)
Capital (NFC)

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 Table 26. Indicators of ICT entities (IE) pillar in Delphi method

Sub-pillars of ICT Dimensions Time

Indicators Name of data source Measurement / formula
interacting entities / position references
IIE1- Fixed telephone subscriptions 2012 IDI %, per 100 inhabitants
IIE2- Households with computer 2012 IDI %, proportion of households with computer
Access
IIE3- Mobile Cellular subscriptions 2011-2012 Information society report %, per 100 inhabitants
IIE4- Households with internet access 2011-2012 IDI %, proportion of households with internet access
ICT infrastructure IIE5- Secure Internet servers 2012 IDI Per 1 million people
Quality
entities (IIE) IIE6- International Internet bandwidth 2012 IDI Bit/s per internet user
IIE7- Price basket for residential fixed line 2011-2012 ICT price basket % of monthly GNI per capita
IIE8- Price basket for mobile call 2011-2012 ICT price basket % of monthly GNI per capita
Affordability
IIE9- Cost of fixed-broadband 2011-2012 ICT price basket % of monthly GNI per capita
IIE10- Cost of Mobile -broadband 2011-2012 ICT price basket % of monthly GNI per capita
PUE1- Individuals using the internet 2012 Internet World Stats percentage
PUE2- Mobile broadband penetration 2012 IDI 100, per 100 inhabitants
PUE3- Fixed broadband penetration 2012 IDI 100, per 100 inhabitants
Proxy: Government online service index, is measured on
PUE4- Use of online public services by citizens 2012 GITR
Supply-side and a 0-1(best) scale
ICT provide/use
demand-side PUE5- Business-to-consumer internet use 2012 NRI Is measured on a 1-to-7 (best) scale
entities (PUE) positions PUE6- Business-to-business internet use 2012 NRI Is measured on a 1-to-7 (best) scale
PUE7- Social Network Unique Visitors per Proxy: Facebook penetration rate
2013 Arab Social Media Report
month
PUE8- ICT Export 2012 WDI %, as a share of total export
PUE9- ICT Import 2012 WDI %, as a share of total import
RPE1- Laws relating to ICT 2012 GITR Is measured on a 1-to-7 (best) scale
RPE2- Freedom on the Web 2013 freedom house Is measured on a 0 (mostly free) to 100 value
Proxy: Intellectual Property Protection, Is measured on
RPE3- Existence of Software Copyright Law 2012 GITR
ICT rule/procedure policy-making a 1-to-7 (best) scale
entities (RPE) position RPE4- Importance of ICTs to government vision 2012 NRI Is measured on a 1-to-7 (best) scale
Proxy: effectiveness of law-making bodies, Is measured
RPE5- Existence of USO Policy 2012 GITR
on a 1-to-7 (best) scale
RPE6- Independence of Regulatory 2012 NRI Is measured on a 1-to-7 (best) scale
FIE1- ICT Expenditure 2011 Digital Planet as % of GDP
FIE2- Telecom Investment ($) 2009-2011 ITU Million $
facilitating
FIE3- Level of e-participation development 2012 GITR Is measured as a 0–1 (best) scale
position
Proxy: availability of latest Tech, Is measured on a 1-to-
FIE4- Availability of latest ICT technology 2012 NRI
7 (best) scale
ICT fund/innovation
FIE5- ICT PCT(Patent Cooperation Treaty) application /million pop
entities (FIE) 2012 GITR
patents,
Innovate FIE6- Knowledge-intensive jobs % workforce 2012 NRI Is measured on a 1-to-7 (best) scale
FIE7- Existence of new organization model 2012 NRI Is measured on a 1-to-7 (best) scale
FIE8- Intensity of competition among ICT Proxy: Intensity of local competition, Is measured on a
2012 GITR
enterprises 1-to-7 (best) scale

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 Chapter 5
Quantitative Phase

Analyses and Results

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5 Quantitative Phase Analyses and Results

The main objectives of the quantitative phase in this research are investigating the interrelations
among the main elements of proposed ISED ecosystem framework and constructing an ICT-based
socio-economic development (ISED) composite index to measure and to compare ICT-based
socio-economic development (as the outcome of intended framework) across 17 MENA
countries.
Firstly, regarding the hierarchical structure a dataset was prepared and then, the 10 sub-pillars
of ISED ecosystem framework were computed by aggregating finalized indicators in each sub-
pillar. It helps to unveil how different sub-pillars vary across 17 MENA countries. Then capital
portfolio and ICT entity pillars are calculated separately by integrating their sub-pillars. Finally,
by aggregating main elements of ISED ecosystem framework a composite index is constructed.
This composite index shows the degree of ICT-based socio-economic development across 17
selected countries in MENA region.
Then the Spearman correlation coefficients matrix is computed to explore the relations among
main elements of proposed ecosystem framework. This matrix contributes to verify whether the
sub-pillars and pillars of ISED ecosystem framework are statistically justified by the selected
indicators.

5.1 Data Structure

As the starting step, a dataset of all sub-pillars’ indicators (on the basis of already selected
indicators in section 4.8) for 17 MENA countries is formed. Collected data relates to each
country’s situation in year 2013. For those unavailable data of this year, corresponding available
data from year 2012 or the most recent years have been applied. Then problematic indicators
(those with skewness>2 and kurtosis >3.5) were treated through assigning the next best values.
To impute missing data two methods of data imputation were applied. The case deletion
imputation method was applied because of large number of missing data for Djibouti, Palestine,
Sudan and Malta datasets. For others, given that country characteristics were correlated with
national income, hot-deck imputation method was used. The other criterion applied to identify

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countries with similar characteristics was the classification of MENA region in World Bank report
based on natural resources. Furthermore, for a meaningful integration of indicators with various
scales and units, all values were rescaled by applying min-max normalization method. Thanks to
min-max normalization method, I obtained indicators range from 0 and 1 that are comparable.
The variance of normalized indicators depends on the variance of original indicators.
The next step of dataset preparation was the verification of the reliability and validity of sub-
pillars’ indicators by applying “Cronbach’s Alpha test”. Table (27) and table (28) respectively
shows the result of Cronbach’s Alpha test for IE and CP sub-pillars.

Table 27. Cronbach’s Alpha test for sub-pillars of ICT entities

ICT Infrastructure Entity (IIE) Provide/Use Entity (PUE)

Reliability Statistics Reliability Statistics
Cronbach's Alpha Cronbach's Alpha N of Items Cronbach's Alpha Cronbach's Alpha N of Items
Based on Based on
Standardized Standardized
Items Items
.915 .915 10 .880 .889 9

Rule/Procedure Entity (RPU) Fund/Innovation Entity (FIE)

Reliability Statistics Reliability Statistics
Cronbach's Alpha Cronbach's Alpha N of Items Cronbach's Alpha Cronbach's Alpha N of Items
Based on Based on
Standardized Standardized
Items Items
.914 .908 6 .831 .864 8

Table 28. Cronbach’s Alpha test for sub-pillars of capital portfolio

National Social Capital (NSC) National Human Capital (NHC) National Natural Resources (NNR)
Reliability Statistics Reliability Statistics
Cronbach's Cronbach's N of Items Reliability Statistics Cronbac Cronbach's Alpha N of
Alpha Alpha Based on Cronbach's Cronbach's N of h's Alpha Based on Items
Standardized Alpha Alpha Based on Items Standardized
Items Standardized Items
.673 .684 5 Items .884 .884 7
.709 .805 10

National Process & Structural Capital (NPSC) National Renewal Capital (NRC)
Reliability Statistics Reliability Statistics
Cronbach's Alpha Cronbach's Alpha N of Items Cronbach's Alpha Cronbach's Alpha N of Items
Based on Based on
Standardized Standardized
Items Items
.700 .666 10 .753 .678 10

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To increase reliability, six indicators were removed from national social capital (NSC) and national
human capital (NHC) sub-pillars. This leads to the increase of Cronbach’s Alpha from 0.589 to
0.673 and 0.459 to 0.709 for NSC and NHC respectively. Also to increase Cronbach’s Alpha from
0.530 to 0.7 level, three indicators of national process and structural capital (NPSC) sub-pillar
were removed. The other sub-pillars were not changed. It means that the amounts of Cronbach’s
Alpha test for them were greater than 0.7 as the threshold level. Regarding Cronbach’s Alpha test
results, 33 and 40 indicators were confirmed to measure sub-pillars of ICT entity (IE) and capital
portfolio (CP), respectively. The final lists of indicators have been shown in table (29) and table
(30).
Table 29. Final indicators of ICT entities (IE) pillar

Sub-indices Definition Sub-indices Definition

ICT Infrastructure Entity sub-indices
Fixed telephone subscribtions per 100 international Internet bandwidth bit/s per internet
IIE1 IIE6
inhabitants user
IIE2 households with computer IIE7 price basket for residential fixed line
Mobile Cellular subscriptions per 100
IIE3 IIE8 price basket for mobile cellular
inhabitants
Percentage of households with internet
IIE4 IIE9 cost of fixed broadband
access
IIE5 secure internet servers/ million pop IIE10 cost of mobile-broadband
Reliability (IIE Cronbach’s Alpha = 0.915)
Provide/Use Entity sub-indices
PUE1 percentage of individuals using the internet PUE6 business-to-business internet use
mobile broadband subscriptions per 100
PUE2 PUE7 facebook penetration rate
inhabitants
fixed broadband subscriptions per 100
PUE3 PUE8 ICT Service Export (% of total service export)
inhabitants
PUE4 business-to-consumer internet use PUE9 ICT good import (% of total good import)
PUE5 use of online public services by citizens
Reliability (PUE Cronbach’s Alpha = 0.880)
Rule/Procedure Entity sub-indices
Government prioritization of ICT
RPE1 laws relating to ICT RPE4
Proxy: Importance of ICTs to gov. Vision*
Existence of USO policy
RPE2 Freedom on the web RPE5
Proxy: effectiveness of Law-making bodies*
Existence of software copyright law Independence of regulatory (private share in ICT
RPE3 RPE6
Proxy:Intellectual Property Protection* section)
Reliability (RPE Cronbach’s Alpha = 0.914)
Fund/Innovation Entity sub-indices
ICT Expenditure
FIE1 FIE5 ICT PCT patents, applications/million pop.
As % of GDP
ICT R&D labor force
FIE2 Telecom Investment FIE6
Proxy:knowlrdge-intensive jobs % workforce
Intencity of competition among ICT interprise
FIE3 Level of e-participation development FIE7
Proxy: intensity of local competition*
Availability of latest ICT technology
FIE4 FIE8 Existance of new organization model
Proxy: Availability of latest technology*
Reliability (FIE Cronbach’s Alpha = 0.831)
(*) Indicators followed by an asterisk (*) are measured on a 1 to 7 scale

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 Table 30. Final indicators of capital portfolio (CP) pillar

Sub-indices Definition Sub-indices Definition

National Social Capital sub-indices
SC1 Perception of Happiness SC7 Civil liberties
SC4 Crime SC8 Women Rights
SC6 Political Rights
Reliability (NSC Cronbach’s Alpha = 0.673)
SC2, SC3, SC5 sub-indices was removed to achieve reliability
National Human Capital sub-indices
HC2 Share of young people to population HC9 Female labor force
HC4 Public expenditure on education HC10 Science and Engineering enrolment
HC5 Adult literacy rate HC11 Brain Drain
HC7 Labor force participation rate HC12 Health Expenditure
HC8 Employment to population HC13 Life Expectency
Reliability (NHC Cronbach’s Alpha = 0.709)
HC1, HC3, HC6 sub-indices were removed to achieve reliability
National Natural Resources sub-indices
NNR1 Crude Oil exports NNR5 Exports of petroleum products
NNR2 Crude Oil Production NNR6 Value of petroleum exports
NNR3 Natural gas marketed production NNR7 Output of Petroleum Products
NNR4 Natural gas exports
Reliability (NNR Cronbach’s Alpha = 0.884)
National Process & Structural Capital sub-indices
PSC1 Doing Bbusiness index PSC5 Inflation Rate (%)
PSC2 Governance Indicators PSC8 Capital goods gross imports(US$ mil)
PSC3 E-government Readiness index PSC9 Current Account Balance
PSC4 Economic Freedom Index
Reliability (NPSC Cronbach’s Alpha = 0.700)
PSC6, PSC7, PSC10 sub-indices were removed to achieve reliability
National Renewal Capital sub-indices
RC1 Full-time equivalent (FTE) Researchers RC6 High Techs exports
RC2 R&D expenditure RC7 Technology absorption
RC3 PCT (Patent Cooperation Treaty) patents RC8 Capital goods export
RC4 Venture capital RC9 Entrepreneurial Attitudes
RC5 S&T parks and Incubators RC10 Entrepreneurial Activity
Reliability (NRC Cronbach’s Alpha = 0.753)
National Financial Capital index
FNC1 GDP (PPP) per capita

5.2 ICT entities’ sub-pillars

The first main element of ISED ecosystem framework is the ICT entity (IE) pillar that has been
composed from four sub-pillars namely, ICT infrastructure entity (IIE), provide/use entity (PUE),
rule/procedure entity (RPE), and fund/innovation entity (FIE). So the main aim of this section is
to get a sense of the broad picture of the ICT entity’s sub-pillars across MENA countries. To this
end, firstly the countries’ scores in each sub-pillar of ICT entity are calculated and then MENA
countries are ranked based on their scores. Table 31 depicts the scores and rankings of the 17
selected countries.

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 Table 31. Countries’ scores and ranks on ICT Entities (IE)

ICT Infrastructure Entity Provide/Use Entity Rule/Procedure Entity Fund/Innovation Entity

country (IIE) (PUE) (RPE) (FIE)
Score Rank Score Rank Score Rank Score Rank
ALG 0.185 14 0.367 13 0.44 16 0.29 16
BAH 0.566 4 0.680 4 0.82 5 0.59 5
EGY 0.221 12 0.467 10 0.61 11 0.62 4
IRN 0.369 8 0.444 11 0.61 10 0.50 11
IRQ 0.136 16 0.245 14 0.50 13 0.34 14
JOR 0.270 9 0.488 9 0.76 6 0.54 8
KWT 0.622 3 0.706 3 0.64 9 0.44 12
LBN 0.394 7 0.644 6 0.71 7 0.58 7
LYB 0.142 15 0.239 16 0.59 12 0.40 13
MOR 0.250 11 0.431 12 0.49 14 0.50 10
OMN 0.436 6 0.583 7 0.87 3 0.59 6
QAT 0.812 1 0.771 2 0.95 1 0.65 3
SAU 0.484 5 0.674 5 0.85 4 0.82 2
SYR 0.198 13 0.225 17 0.44 15 0.29 17
TUN 0.257 10 0.514 8 0.65 8 0.51 9
UAE 0.803 2 0.826 1 0.89 2 0.84 1
YEM 0.081 17 0.242 15 0.40 17 0.33 15

In the following, each sub-pillar is defined and countries scores and rankings are discussed in
greater detail. Moreover, on the basis of World Bank (2013) classification placing MENA countries
into three main groups, each group’s average scores in four sub-pillars of ICT entity are
compared. According to “Economic Developments and Prospects” report the first group includes
the Gulf Cooperation Council (GCC) countries which are United Arab Emirates, Bahrain, Kuwait,
Oman, Qatar, and Saudi Arabia. The second group encompasses Algeria, Islamic Republic of Iran,
Iraq, Libya, Syrian Arab Republic, and Republic of Yemen which are developing oil exporters. The
last group contains oil importers countries which are Jordan, Lebanon, Morocco, Tunisia, and
Arab Republic of Egypt.

5.2.1 ICT Infrastructure Entity (IIE)

The ICT-based socio-economic development as a process requires a technological capacity in

each country which is referred by ICT infrastructure. In practice, ICT infrastructure acts as an
enabler. In this regard, there are three main features of ICT infrastructure which none of them
can guarantee this function by itself. In other words, ICT infrastructure could play enabling role
for “socio-economic development” only if all three features be present and ready. These features
are access, quality and affordability of ICT infrastructures. These three features are measured
through 10 indicators which were finalized in previous section to calculate ICT infrastructure

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entity (IIE) of ISED ecosystem framework. MENA countries’ total scores for IIE (ICT Infrastructure
Entity) are measured through aggregating 10 indicators by arithmetic average method (Table 31).
Then, MENA countries ranked by their ICT infrastructure entity score (Chart 2).
Considering the countries’ IIE scores, there is a point that these scores don’t show the real value
of this sub-pillar in each country. These scores are just signals that show how well a country
performs compared with other countries. So these scores reveal one country’s position relatively
(not exact position) to the others. Qatar ranks as the best country in IIE sub-pillar (table 31 and
chart 2). With a small difference, United Arab Emirates (UAE) ranks second with 0.803 score. It
means that these two countries perform relatively better than other MENA countries on this
specific sub-pillar. Iraq and Yemen hold the lowest ranks with 0.136 and 0.081 scores,
respectively. Iraq is suffering from violent conflict and the other is one of the Arab-spring
countries that is in the midst of challenging political transitions. As you see the countries’ scores
at the bottom of ICT-infrastructure entity sub-pillar differ considerably with the countries’ scores
at the top of the IIE sub-pillar list. The other findings are as follows:
- All the top five nations in IIE sub-pillar are among the GCC states;
- All the bottom five nations in IEE sub-pillar are among developing oil exporter countries;
- Iran has the highest rank (8th place) among all developing oil exporter countries in IEE sub-
pillar;
- Among oil importer nations, Lebanon (7th place) has the highest rank in IEE sub-pillar.

ICT Infrastructure Entity

QAT 0.812
UAE 0.803
KWT 0.622
BAH 0.566
SAU 0.484
OMN 0.436
LBN 0.394
IRN 0.369
JOR 0.270
TUN 0.257
MOR 0.250
EGY 0.221
SYR 0.198
ALG 0.185
LYB 0.142
IRQ 0.136
YEM 0.081

GCC countries Developing oil exporters Oil importers

Chart 2. MENA countries rankings by ICT infrastructure entity (IIE)

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The chart 3 shows that there is a considerable gap between GCC countries and the rest countries
in MENA region on average scores of access, quality, and affordability characteristics of ICT
infrastructures entity. Furthermore, the oil importers countries have more access to ICT
infrastructures with better quality than the developing oil exporters.
Also, both the oil importer countries and the developing oil exporters enjoy ICT infrastructures
with more or less the same affordable characteristics. The developing oil exporter group includes
countries such as Syria, Iraq, Yemen, and Libya which suffer from social unrest, political
instability, and security incidents with negative spillover effects on other countries in MENA
region and geopolitical tensions.

Access
1.0

0.8

0.6

0.4

0.2

0.0

Affordability Quality

GCC Countries Developing Oil Exporters Oil Importers

Chart 3. Country groups comparision in terms of IIE indicators

5.2.2 Provide/Use Entity (PUE)

The provide/use sub-pillar refers to entities located in demand-side position and supply-side
position of ISED ecosystem framework. These entities use, buy, provide and sell ICT
services/technologies with given quality and affordability characteristics.
As shown in table 29, there are 9 finalized indicators to measure this sub-pillar. Accordingly, by
applying arithmetic average method the normalized values of these nine indicators are
aggregated to calculate MENA countries’ scores for this sub-pillar and then to rank them (Table
31 and Chart 4).

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Similar to the ICT infrastructure entity, United Arab Emirates and Qatar take the top two positions
but in reverse order. As shown, United Arab Emirates ranks first place with a score of 0.826 and
then Qatar is ranked the second position with 0.771 score. Libya and Syria have the lowest
rankings with 0.239 and 0.225 scores, respectively. These two countries are suffering from violent
conflict that has ruined people’s life. The other findings are as follows:
- All the top five nations in PUE sub-pillar are among the GCC countries;
- All the bottom five nations in PUE sub-pillar are among developing oil exporters states;
- Lebanon is ranked highest among the oil importers nations, (6 th place) in PUE sub-pillar;
- Among developing oil exporters, Iran achieves the best position (11 th place) in PUE sub-
pillar.

ICT Provide/Use Entity

UAE 0.826
QAT 0.771
KWT 0.706
BAH 0.680
SAU 0.674
LBN 0.644
OMN 0.583
TUN 0.514
JOR 0.488
EGY 0.467
IRN 0.444
MOR 0.431
ALG 0.367
IRQ 0.245
YEM 0.242
LYB 0.239
SYR 0.225

GCC countries Developing oil exporters Oil importers

Chart 4. MENA countries rankings by ICT provide/use entity (PUE)

In chart 5, some indicators of provide/use sub-pillar have been compared across three country
groups in MENA region. Among these six indicators, the “mobile broadband subscriptions” index
indicating high speed access to the internet and other data services over mobile network delivers
transformative impacts. It has great capacity to affect different aspects of societies such as
healthcare, education and different socio-economic groups. Notwithstanding much evidence
that countries with access to mobile broadband take advantages of more social and individual
opportunities, the level of mobile broadband subscription indicator is so low in both developing

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oil exporters countries and oil importers countries compare with GCC countries. This
considerable difference results from the noticeable gap between GCC countries and the rest
countries in MENA region on average scores of access, quality, and affordability characteristics
of ICT infrastructures. Also, the same condition can be expected in “use of online public services”
indicator in MENA region. The high level of mobile broadband and fixed broadband in GCC
countries boost the online public services that result in high level of ICT usage in business-to-
business and business-to-consumer. Considering the six indicators of provide/used sub-pillar, the
GCC nations overtake both developing oil exporters and oil importers nations.

GCC Countries Developing Oil Exporters Oil Importers

mobile broadband
subscriptions
1.0

0.8

facebook 0.6 fixed broadband

penetration rate 0.4 subscriptions
0.2

0.0

business-to-
business-to-business
consumer internet
internet use
use

use of online public

services

Chart 5. Country groups comparision in terms of PUE indicators

5.2.3 Rule/Procedure Entity (RPE)

The rule/procedure sub-pillar is consist of entities such as governmental, legal and regulatory
institutions and authorities that manage and regulate the ICT sector activities for market
formation and beneficiary of other entities in the ISED ecosystem framework. Indeed, ICT policy
setting and implementation of these policies play crucial role in ICT-based socio-economic
development process.

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Regarding table 29, six indicators were finalized to calculate rule/procedure entity (RPE). Again,
composite rule/procedure entity scores of MENA countries are calculated through aggregating
these six indicators by arithmetic average method (Table31). Afterwards, MENA countries are
ranked on the basis of their rule/procedure entity scores (chart 6).
As chart 6 depicts, Qatar ranks first place and with a small difference United Arab Emirates
achieves second position with 0.0.95 and 0.89 scores respectively. It means that like two previous
sub-pillars these two countries perform relatively better than other countries on this specific sub-
pillar. Algeria and Yemen (an Arab-spring country) have lowest ranks with 0.44 and 0.40 scores
respectively. The other findings are as follows:
- All the top five nations in RPE sub-pillar are among the GCC states;
- Iran has the highest rank (10th place) among all developing oil exporters’ countries in RPE
sub-pillar.
- Among oil importers nations, Jordan has the highest rank (6 th place) in RPE sub-pillar.

Rule/Procedure Entity

QAT 0.9472
UAE 0.8886
OMN 0.8727
SAU 0.8467
BAH 0.8155
JOR 0.7629
LBN 0.7130
TUN 0.6451
KWT 0.6385
IRN 0.6141
EGY 0.6068
LYB 0.5928
IRQ 0.4960
MOR 0.4917
SYR 0.4405
ALG 0.4401
YEM 0.4013

GCC countries Developing oil exporters Oil importers

Chart 6. MENA countries rankings by ICT rule / procedure entity (RPE)

The chart 7 depicts the main indicators of rule/procedure entity (RPE) sub-pillar. The
“government prioritization of ICT” is one of main and crucial indicators of RPE sub-pillar. The use
of ICT would not lead to socio-economic development unless ICTs become part and parcel of
government prioritizations. The other indicator of rule/procedure sub-pillar is “laws relating to

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ICT” that plays an important role in benefiting from ICT potential. Occasionally, some laws related
to ICT are tainted by some governments’ officials as a way to limit access to media or web-site
which report government misuse or opposition. It means that governments’ authority is
employed on passing legislations that restrict electronic media’s ability.
The most challenging issue towards MENA countries’ citizens is “freedom on the web”. The
diffusion of ICTs are breaking state information monopolies throughout the region, so
governments in developing oil exporter countries and GCC nations employ censorship schemes
for the internet and apply advanced technology to block public access to the websites that are
considered politically, religiously or socially inappropriate. On the basis of Open Net Initiative
(ONI) and Reporters Without Borders (RWB), the level of internet censorship and surveillance in
a country is grouped in one of the five categories including; “pervasive, substantial, selective,
changing situation, and little or no censorship”. Notwithstanding the GCC countries are the most
connected countries in MENA region regarding “mobile broadband” and “use of online public
servers”, they all are listed as pervasive category. Also Iran, Syria and Yemen from developing oil
countries group stand in this category. Oil importer countries enjoy better condition compared
to GCC nations and developing oil exporters when it comes to “freedom on the web” indicator.
Central governments play remarkable roles in managing activities on the web in this region when
is compared with much of the rest of the world. Filtering targets content critical of the
government, pornographic Websites, gay and lesbian content, content that is critical of Islam,
political blogs, and women's rights. According to Wheeler (2006) “any use of the Internet to
openly oppose the state is often punished by imprisonment”. In other words, any activity that
alters the status quo is considered a target for filtering. Wheeler (2006) argues that in the MENA
region, the internet has the potential to “create the conditions for free association” while some
leaders in the MENA region maintain that preventing pornography and the protection of Islamic
values are the main reasons for filtering online content.
As Guillen and Suarez (2005) argue, governmental efforts to control the internet may include: 1)
restricting access by controlling networks and instituting registration requirements; 2) restricting
the content by filtering information, blocking forbidden sites, taking disciplinary actions and even
virus attacks on banned sites; and 3) threatening to arrest or imprison those who access

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unauthorized information or use the Internet to organize and mobilize politically. Filtering and
censorship are also applied on other ICTs such as satellite dishes and mobile SMS messages.
Summarily, MENA countries’ governments claim that the imposed filtering of internet content is
to protect national security, defend Islamic religious values, and protect the country from the
harmful material distributed on the Internet. However, some research works on internet filtering
show that the censorship imposed is mostly politically motivated.
The “existence of USO policy” indicator refers to reasonable access of all people, regardless of
where they live or conduct business, to standard communication services. The universal service
obligation (USO) takes on greater importance in rural and remote areas of nations, due to the
higher cost of providing telecommunication services to these areas. As one can guess, the
average score of this indicator in GCC countries is higher than the rest. The other indicators of
RPE sub-pillar including “independence of regulatory” and “ existance of software copyright law”
reveal the extent to which ICT policies strengthen the capabilities of countries in capacity-building
in the areas of ICT for development. As shown in chart 7, GCC nations benefit from higher level
of capabilities in capacity-building in the area of ICT for development relative to two other
groups.

GCC Countries Developing Oil Exporters Oil Importers

laws relating to ICT

1.0
0.8
Independence of 0.6
Freedom on the web
regulatory 0.4
0.2
0.0

Existence of
Existence of USO
software copyright
policy
law

Government
prioritization of ICT

Chart 7. Country groups comparision in terms of RPE indicators

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5.2.4 Fund/innovation Entity (FIE)

Fund/innovation sub-pillar includes types of entities of ISED ecosystem frameworks which not
only nurture ICT sector human capital but also invest, support, facilitate and accelerate research
and development activities of new technologies in ICT sectors.
To get studied countries scores for 8 indicators of this sub-pillar, the same routine has been
followed (i.e. aggregation of the normalized values of indicators by applying arithmetic average
method for each country). Accordingly, MENA countries scores (Table 31) and their rankings
(Chart 8) for fund/innovation entity sub-pillar have shown.
United Arab Emirates and Saudi Arabia are ranked as the top two countries on fund/innovation
entity sub-pillar with 0.84 and 0.82 scores. As it is obvious, there is no considerable difference
between their scores. However, with rather big difference Qatar holds third position with the
score of 0.65. Algeria and Syria are the two lowest-performing countries with 0.29 score. Also
Yemen has the second-worst place with 0.33 score on this sub-pillar. The other findings are as
follows:
- All the bottom five nations in FIE sub-pillar are among developing oil exporters states;
- Egypt is the best performer among the oil importers nations, (4 th place) in FIE sub-pillar.
- Among developing oil Exporters, Iran occupies the highest position (11th place) in FIE sub-
pillar.

Fund/Innovation Entity

UAE 0.8426
SAU 0.8185
QAT 0.6507
EGY 0.6167
BAH 0.5900
OMN 0.5883
LBN 0.5780
JOR 0.5413
TUN 0.5084
MOR 0.4995
IRN 0.4959
KWT 0.4437
LYB 0.4014
IRQ 0.3366
YEM 0.3261
ALG 0.2947
SYR 0.2897

GCC countries Developing oil exporters Oil importers

Chart 8. MENA countries rankings by ICT fund / innovation entity (FIE)

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The chart 9 shows the main indicators of fund/innovation (FIE) sub-pillar. The GCC countries have
focused on more efficient “ICT investments” to improve ICT infrastructures compare with
developing oil exporters and oil importer countries. The “ICT investment” indicator comprises
computer hardware (computers, storage devices, printers, and other peripherals); computer
software (operating systems, programming tools, utilities, applications, and internal software
development); computer services (information technology consulting, computer and network
systems integration, web hosting, data processing services, and other services); communication
services (voice and data communications services) and wired and wireless communications
equipment (WITSA 2011). Furthermore, GCC countries benefit from a slightly higher level of “ICT
R&D labor force” compare with oil importers and developing oil exporters countries, which result
in the greater number of “ICT PCT patents”. The GCC nations have focused on providing access
to latest ICT technology.

GCC Countries Developing Oil Exporters Oil Importers

ICT
Investment
1.0

0.8

0.6

0.4

0.2
Availability of
ICT PCT
latest ICT 0.0
patents
technology

ICT R&D labor-

force

Chart 9. Country groups comparision in terms of FIE indicators

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 5.3 ICT Entity pillar’s Score

The developed ISED ecosystem framework consists two fundamental pillars namely ICT entity (IE)
pillar and capital portfolio (CP) pillar. The IE pillar itself encompasses four sub-pillars that were
measured in previous section. To construct the IE pillar, the calculated scores of these four sub-
pillars are aggregated by applying geometric average method. The geometric aggregation
method Implies only partial compensability; it means poor performance in one of these four sub-
pillars cannot be fully compensated by good performance in another. In this method, more
importance is given to the sub-pillars that are doing not well and it is the main advantage of this
aggregation method to arithmetic aggregation method. A key statistical feature with this method
is that 1% increase in an indicator leads to the same impact on the aggregated index. So, if a
country wants to improve its ICT entity (IE) pillar condition, it should make more efforts on the
weakest sub-pillars. As depicted in chart (10), MENA countries ranked respecting to scores of IE
pillar.
Interacting Entity Index(IEI) Pillar
country IICT Entity (IE) pillar
Score Rank
ALG 0.3064 13
BAH 0.6558 4
EGY 0.4435 11 UAE 0.839
QAT 0.788
IRN 0.4726 9 SAU 0.690
IRQ 0.2732 16 BAH 0.656
JOR 0.4827 8 OMN 0.601
KWT 0.594
KWT 0.5939 6 LBN 0.518
LBN 0.5184 7 JOR 0.483
LYB 0.2995 14 IRN 0.473
MOR 0.4428 12 TUN 0.456
EGY 0.444
OMN 0.6010 5 MOR 0.443
QAT 0.7881 2 ALG 0.306
SAU 0.6896 3 LYB 0.299
SYR 0.275
SYR 0.2745 15 IRQ 0.273
TUN 0.4563 10 YEM 0.225
UAE 0.8393 1
YEM 0.2249 17

GCC countries Developing oil exporters Oil importers

Chart 10. MENA countries rankings by ICT entity (IE) pillar

Six Gulf Cooperation Council (GCC) economies—United Arab Emirates, Qatar, Saudi Arabia,
Bahrain, Oman, Kuwait —lead the rankings and hold the top six among 17 MENA countries. The
four lowest-performing countries are Libya, Syria, Iraq and Yemen with 0.2995, 0.2745, 0.2732
and 0.2249 scores respectively. These four countries either are suffering from violent conflict or

146
are in the midst of challenging political transitions as an Arab-spring nation. Among the oil
importer nations, Lebanon has the highest (7th place) score in ICT Entity pillar. Also, among
developing oil exporters, Iran holds the highest position (9th place) in IE pillar.
The MENA region countries illustrate a large diversity and considerably differences in terms of
the sub-pillars of ICT entity pillar. On the one hand, GCC nations have made more efforts to better
performance on IE pillar in order to gain higher ICT-based socio-economic development. On the
other hand, some nations in the MENA region depict very poor performance on IE pillar of ISED
ecosystem framework. However, most of these countries are in unstable political situation
preventing them from improving IE’s sub-pillars.
The chart (11) shows IE pillar in terms of its 4 sub-pillars for the two best and the two worst
countries in IE score. According to this comparison, there are considerable differences between
IE sub-pillars’ scores of the two-best performing and the two-worst performing countries. United
Arab Emirates is leading the IE rankings (among 17 MENA countries, Israel excluded) because of
the high performance in its sub-pillars. UAE enjoys an adequately affordable ICT infrastructure
sub-pillar (2nd place), that results in a high level of provide/use sub-pillar (1st place). The UAE’s
regulatory authority has also made significant efforts to obtain a fairly supportive rule-making
situation (1st place on the rule/procedure sub-pillar). It could lead to quite high technological
capacity in ICT-related fields as evidenced by the absolutely well-performance fund/innovation
sub-pillar (1st place).
QAT UAE YEM IRQ
ICT
1.0

0.8

0.6

0.4

0.2

FIE 0.0 PUE

RPE
Chart 11. The best and worst countries in terms of sub-pillars of IE

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The position of the Qatar as second best nation on IE pillar can be justified by its government’s
huge efforts to develop supportive ICT regulation (1st place). These efforts result in improving and
upgrading ICT infrastructures sub-pillar (1st place).

5.4 Capital Portfolio’s Sub-pillars

The second main element of ISED ecosystem framework is the capital portfolio (CP) pillar that
has been composed from six sub-pillars namely, national human capital (NHC), national process
and structure capital (NPSC), national renewal capital (NRC), national social capital (NSC),
national natural resources (NNR) and national financial capital (NFC). So the main aim of this
section is to get a sense of the broad picture of the capital portfolio’s sub-pillars across MENA
countries. To this end, firstly the countries’ scores are calculated through aggregating confirmed
indicators in each sub-pillar by applying arithmetic average method. Then MENA countries are
ranked based of their scores. Then MENA countries are ranked based of their scores. Table 32
demonstrates the average scores and rankings of the 17 studied countries. In the following, each
sub-pillar is defined and countries scores and rankings are discussed in greater detail. Moreover,
on the basis of World Bank (2013) classification placing MENA countries into three main groups,
each group’s average scores in some sub-pillars of capital portfolio are compared.

Table 32. Scores of capital portfolio sub-pillars and ranks of MENA countries

National National National Natural National Natural National

Social Capital Human Resource Process&structure Renewal Capital Financial Capital
country
(NSC) Capital (NHC) (NNR) Capital (NPSC) (NRC) (NFC)
Score Rank Score Rank Score Rank Score Rank Score Rank Score Rank
ALG 0.507 10 0.444 14 0.351 3 0.435 10 0.3039 12 0.057 11
BAH 0.559 6 0.527 6 0.096 8 0.574 6 0.2874 14 0.246 6
EGY 0.448 12 0.566 3 0.043 11 0.420 11 0.5335 2 0.035 14
IRN 0.417 13 0.634 2 0.293 5 0.282 14 0.7079 1 0.077 9
IRQ 0.316 16 0.422 15 0.289 6 0.281 15 0.2619 17 0.071 10
JOR 0.562 5 0.486 12 0.000 14 0.464 9 0.4202 5 0.052 12
KWT 0.555 7 0.532 5 0.347 4 0.651 4 0.3185 11 0.601 2
LBN 0.553 8 0.519 7 0.000 14 0.402 12 0.4027 8 0.103 8
LYB 0.364 15 0.492 11 0.074 9 0.327 13 0.2827 15 0.111 7
MOR 0.620 3 0.507 9 0.000 14 0.507 7 0.5278 4 0.031 15
OMN 0.582 4 0.496 10 0.062 10 0.626 5 0.3504 10 0.251 5
QAT 0.683 2 0.679 1 0.539 2 0.716 3 0.4122 6 1.000 1
SAU 0.472 11 0.482 13 0.667 1 0.797 2 0.4115 7 0.268 4
SYR 0.313 17 0.421 16 0.005 13 0.187 17 0.2875 13 0.022 16
TUN 0.523 9 0.511 8 0.000 14 0.493 8 0.5313 3 0.045 13
UAE 0.759 1 0.561 4 0.245 7 0.837 1 0.3915 9 0.444 3
YEM 0.384 14 0.409 17 0.018 12 0.273 16 0.2821 16 0.016 17

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5.4.1 National Human Capital (NHC)

This sub-pillar refers to a countries’ capability in labor force, literacy, young people and other
competencies that results in realizing and implementing task. As shown in former chapter, in
total 10 indicators were finalized to calculate national human capital (NHC). All these selected
indicators represent capabilities of a nation in education, experience, knowledge intuition and
expertise which can be used in ICT-based socio-economic development.
Chart 12 shows national human capital (NHC) rankings across MENA countries. As can be seen,
Qatar is ranked first in the NHC with a score of 0.679 and followed by Iran at the second place
with 0.637score. In other words, it indicates that these two countries perform relatively better
than other countries on this sub-pillar. Yemen as one of the Arab-spring countries occupies the
lowest position, with a score of 0.409 in MENA region. Syria suffering from violent conflict holds
the second worst ranking in terms of NHC sub-pillar with a score of 0.421 in the region. The other
rankings are listed as follows:
- Saudi Arabia (13th place) is the only member of GCC nations amongst bottom five
countries in NHC sub-pillar.
- The only developing oil exporter country among top five is Iran (2 nd position).
- Egypt is the only oil importer among the top five nations (3 rd place).

National Human Capital

QAT 0.679
IRN 0.634
EGY 0.566
UAE 0.561
KWT 0.532
BAH 0.527
LBN 0.519
TUN 0.511
MOR 0.507
OMN 0.496
LYB 0.492
JOR 0.486
SAU 0.482
ALG 0.444
IRQ 0.422
SYR 0.421
YEM 0.409

GCC countries Developing oil exporters Oil importers

Chart 12. MENA countries rankings by national human capital (NHC)

149
The chart 13 represents average scores of main indicators of national human capital (NHC)
including “health”, “literacy”, “labor force”, and “young people” for three groups of MENA
countries.
The “literacy” indicator which can be considered as a proxy reflecting how capable potentially
people are to benefit from the opportunities provided by ICT services and ICT products. In other
words, the more literacy rate, the more likely people can use ICT services. Oil importers and
developing oil exporters, having almost same average scores of “literacy” indicator, are in a
better position compared with GCC nations.
The indicators regarding the share of young people and labor force in the total population
present national capacities to drive economic development and increase gross domestic product
(GDP). Although labor force is regarded as a precious asset for countries, unattractive labor
markets and unsafe working conditions such as high unemployment rates, low wages and
benefits and poor health and safety standards would increase the risk of brain drain
phenomenon and losing skilled labor force because higher paid jobs or better working conditions
may exist elsewhere. In this research the “labor force” indicator incorporates five sub-indicators
to measure the extent to which a country could benefit from its labor force capacity. As chart 13
indicates, GCC countries surpass oil importer and developing oil exporter countries in terms of
both “labor force” and “young people” indicators. Moreover, the GGC countries’ worse literacy
rate condition compared with two former groups impedes they could fully benefit from their
“labor force” capacity to improve their innovation system. This is supported by the evidence
(shown in chart 17) which implies to the lower level of “R&D and innovation system” indicator of
GCC countries compared to the other countries
In sum, national human capital as a capacity can play a key role in ICT-based socio-economic
development process. Hence, as shown here, the country groups suffering from low level of
average scores of human capital’s indicators might have more difficulties to benefit from the ICT
for their socio-economic development.

150
 GCC Countries Developing Oil Exporters Oil Importers

Young
People to
Population
1.0

0.8

0.6

0.4

0.2

Health 0.0 Literacy

Labor Force

Chart 13. Country groups comparision in terms of NHC indicators

5.4.2 National Process and structure Capital (NPSC)

The national process and structure capital refers to all systems and structures that exploit
countries’ tangible and intangible assets to create value. So, for instance, the high national
human capital would lead to the high national financial capital in a country if it benefits from
strong structures and applies efficient processes. From ICT-based socio-economic development
perspective, countries’ process and structural capital have major effects on how they manage to
leverage the ICT for their growth.
To calculate and compare NPSC condition across MENA countries, nine individual indicators have
been used. As can be seen in the chart 14, there is a huge difference between the top and the
low ranked countries. The United Arab Emirate holds highest ranking on NPSC among selected
17 countries in the MENA region. Saudi Arabia is ranked as the second-best country with a score
of 0.797 while Yemen and Syria are the two worst countries with 0.273 and 0.187 scores
respectively. Very surprisingly, Iran ranks third-worst country on NPSC while it has second best
position on national human capital (chart 12) and the best position on renewal capital (chart 16).
The other findings are listed as follows:

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 - All the top five nations in NPSC sub-pillar are among the GCC countries.
- All developing oil exporter states rank as the bottom five nations in NPSC sub-pillar.
- Morocco holds highest ranking among the oil Importers nations(7th place)
- Among developing oil exporter countries, Algeria occupies the highest position (10 th
ranking) in NPSC sub-pillar.

National Process&Structural Capital

UAE 0.8369
SAU 0.7974
QAT 0.7164
KWT 0.6511
OMN 0.6258
BAH 0.5739
MOR 0.5068
TUN 0.4932
JOR 0.4641
ALG 0.4347
EGY 0.4201
LBN 0.4020
LYB 0.3273
IRN 0.2817
IRQ 0.2812
YEM 0.2727
SYR 0.1874

GCC countries Developing oil exporters Oil importers

Chart 14. MENA countries rankings by national process&structural capital (NPSC)

Among others, “business structure”, “government structure”, and “economy structure” as three
main indicators of countries’ process and structural capital play crucial role to improve their
capability to fully leverage the ICT for socio-economic development. In other words, the
competent “business”, “government” and “economy” structures enable the countries to benefit
from their potentials in other sub-pillars of ISED ecosystem framework like human capital, ICT
infrastructure entity, renewal capital, and provide/use entity to create value and promote the
level of ICT-based socio-economic development.
Accordingly, chart 15 compares the average scores of these three indicators (business,
government and economy structures) across three groups of MENA countries. As it can be seen,
there is noteworthy difference among GCC, developing oil exporter and oil importer countries.
The average scores of GCC countries in these indicators are far higher than both oil importer and
developing oil exporters. Moreover, developing oil exporters fallowed by oil importers in all three
indicator countries.

152
A cursory glance at political regimes within the MENA region countries shows that there is a
variety of systems in this region such as monarchical, republican regimes, autocratic
council/committee based system in which made up of theocratic constitution. Nevertheless,
government structures highly centralized across MENA countries and most of the decisions, in
several parts especially service delivery decisions, are made by the central government and
subnationa authorities role is largely confined to carry out these decisions. Evidence from MENA
countries reveals that the governance structure is really a key factor for sustainable
development. Most importantly, political stability as one of the sub-indicators of government
structure plays a critical role in preparing supportive environment of ICT growth. Besides, there
are other main aspects of governance structure like “voice and accountability”, “government
effectiveness”, “regulatory quality”, “rule of Law”, “control of corruption” which have
considerable effects on ICT-based socio-economic development process.
The “economy structure” indicator refers to the intensity of government regulation on wealth-
creating activities, government-controlled factors, government-incentive factors, and several
macro-economic factors.
The “Doing Business Index”, used here as the proxy for the “business structure”, implies to how
friendly the business environment of countries are in terms of starting new business; obtaining
business license and credit, recruiting suitable workers; trade across borders; enforce contracts
and protect investments; register property and pay taxes. Guillen et al. (2005) and Lundstrom
(2005) argue that countries enjoying a high level of freedom and democracy also have a higher
level of economic freedom. According to “Economic Freedom Index” (2006), the economic
development process in most Middle Eastern countries suffer from government interventions
and imposed regulations on the economy. Intervention here is mostly meant as the process of
controlling resources through ownership while regulations are the enforced restrictions on
businesses in the private sector through taxation, licensing, and/or bureaucratic corruption. The
ICT sector might be affected by these kinds of interventions and regulations in different ways.
For instance, the main activities in ICT sector such as telecommunication systems are either fully
owned or controlled by governments in MENA region countries. Also free and fair competition is
almost impossible for businesses considering the type of licensing applied on them.

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 business
structure
1.0

0.8

0.6

0.4

0.2

0.0

Economy government
Structure Structure

GCC Countries Developing Oil Exporters Oil Importers

Chart 15. Country groups comparision in terms of NPSC indicators

5.4.3 National Renewal Capital (NRC)

As stated before, the national renewal capital (NRC) as a sub-pillar of capital portfolio of ISED
ecosystem framework refers to a country’s capabilities and innovative system to make progress.
It is consist of 10 indicators on which MENA countries are ranked (Chart 16).
As can be seen, Iran with a score of 0.707 holds the highest and with a sizeable difference Egypt
follows. Tunisia and Morocco are in the next places with 0.531 and 0.528 scores respectively.
These four countries are relatively more enable than other MENA countries to improve and
renew their innovative system to make progress. At the bottom, Iraq suffering from violent
conflict is ranked in the lowest position with a score of 0.282. The next worst country in the region
is Yemen. The other findings are as follows:
- The top five nations in NRC sub-pillar are a combination of four oil Importers –Egypt (2nd),
Tunisia (3rd), Morocco (4th), Jordan (5th) – and one developing oil exporter nation – Iran
(1st)
- There are no GCC nations among top five states in NRC sub-pillar.
- Qatar has the highest position (6th) among GCC nations.

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 National Renewal Capital
IRN 0.7079
EGY 0.5335
TUN 0.5313
MOR 0.5278
JOR 0.4202
QAT 0.4122
SAU 0.4115
LBN 0.4027
UAE 0.3915
OMN 0.3504
KWT 0.3185
ALG 0.3039
SYR 0.2875
BAH 0.2874
LYB 0.2827
YEM 0.2821
IRQ 0.2619

GCC countries Developing oil exporters Oil importers

Chart 16. MENA countries rankings by national renewal capital (NRC)

Chart 17 depicts the comparison across MENA countries in terms of average scores of
“entrepreneurial attitudes”, “entrepreneurial activities” and “R&D and innovation system” as
three selected indicators of national renewal capital (NRC) sub-pillar.
Entrepreneurship is one of the most important dynamic forces which shapes and drives the
economies of nations in the 21st century. The entrepreneurial attitude refers to how people
perceive their skills as regards to entrepreneurship and how they perceive the opportunities in
their countries to start a business. In other words, it implies whether individuals find themselves
qualified for entrepreneurship and see opportunities in their region for setting up a business. The
entrepreneurial activity indicator refers to the average score of six sub-indices including “nascent
entrepreneurship rate”, “new business ownership rate”, “early-stage entrepreneurial activity”,
“established business ownership rate”, “business discontinuation rate”, and “necessity-driven
entrepreneurial activity”. The “R&D and innovation system” indicator is represented by actual
investments in research and development, level of innovation, and adoption of innovation.
The “R&D and innovation system” average score for oil importer group of countries is higher than
score of GCC countries and that of developing oil exporter group of countries. While the latter
two have almost the same average score in “R&D and innovation” indicator. The average score
of “entrepreneurial activity” in developing oil exporters is slightly higher than that of oil importers

155
and the score of GCC countries which both have more or less the same level of entrepreneurial
activity. Considering “entrepreneurial attitudes” indicator, all three groups of countries are
rather at the same level; however the GCC countries perform better.
As shown in the chart 17, the overall level of MENA countries’ capabilities to improve and to
renew is unfavorable. This low level of renewal capital, as a growth-impeding weakness, restrains
ICT-based development process in MENA countries.

R&D and Innovation

System
1.0

0.8

0.6

0.4

0.2

0.0

Entrepreneurial Entrepreneurial
Activity Attitudes

GCC Countries Developing Oil Exporters Oil Importers

Chart 17. Country groups comparision in terms of NRC indicators

5.4.4 National Social Capital (NSC)

National social capital (NSC)refers to a country’s capabilities in political rights, women rights, civil
liberties, happiness, and social safety that provide an attractive atmosphere. The NSC sub-pillar
is composed of five individual indicators to rank MENA countries (Chart 18).
As illustrated in chart 18, United Arab Emirates has the highest score (0.859) on NSC in the MENA
region. Qatar is ranked as the second-best country with a score of 0.783 on NSC sub-pillar. Iraq
and Syria are the two lowest countries with 0.416 and 0.413 scores respectively. Both these
countries are suffering from violent conflict that has devastated people’s life. The other findings
are as follows:

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 - Three out of top five nations in NSC sub-pillar belong to the GCC group of countries –
United Arab Emirate (1st), Qatar (2nd), Oman (4th) - and the other two are oil Importer
nations – Morocco (3rd), Jordan (5th).
- All the bottom five nations in NSC sub-pillar are among developing oil exporter states.
- Among developing oil exporters, Algeria places the highest position (10th) in NSC

National Social Capital

UAE 0.759
QAT 0.683
MOR 0.620
OMN 0.582
JOR 0.562
BAH 0.559
KWT 0.555
LBN 0.553
TUN 0.523
ALG 0.507
SAU 0.472
EGY 0.448
IRN 0.417
YEM 0.384
LYB 0.364
IRQ 0.316
SYR 0.313

GCC countries Developing oil exporters Oil importers

Chart 18. MENA countries rankings by national social capital (NSC)

In following, average scores for a number of national social capital (NSC) indicators, namely
“women rights”, “social safety”, “political rights”, “civil liberties” and “happiness” have been
compared across MENA countries. (Chart 19)
Generally, there are numerous barriers against the complete awareness of women rights in
nearly all MENA countries and women face systematic discriminations both in the laws and in the
social customs. The GCC countries are the worst performers in “women rights” indicator and the
gap between men and women rights are clearly substantial. In GCC countries, deeply unshakable
societal norms, combined with conservative interpretations of Islamic laws, give women lesser
position and throw them in a subordinate status. Moreover, progress in “women rights” is
impeded by the lack of democratic institutions, independent judiciary, and freedom of
association. However the average scores of “social safety”, “political rights”, and “civil liberties”
indicators in oil importers countries are higher than the two other groups, while the Middle East

157
and North Africa region registered low “civil liberties” scores. The authoritarian regimes in the
region have strictly constrained the potential of “civil society” and “political rights” and have
restricted expression in the media and communities. The women and men who protested in the
Egypt, Bahrain, Libya, Syria, Yemen, Jordan, and Algeria (as Arab Spring nations) were driven by
domestic concerns, particularly against the violations of their “political rights”, “civil liberties”,
and “women rights” by the domestic regimes, demanding new social contract based on “political
rights”, “civil liberties”, and “women rights” and providing structural opportunities to human
rights in the MENA region. Moreover, a combination of domestic, regional and international
factors influences the violation or protection of human rights in the MENA region.

GCC Countries Developing Oil Exporters Oil Importers

Happiness
1.0

0.8

0.6

0.4
Women Rights Social Safety
0.2

0.0

Civil Liberties Political Rights

Chart 19. Country groups comparision in terms of NSC indicators

5.4.5 National Natural Resource (NNR)

National natural resources (NNR) refer to a country’s natural wealth and resources which
potentially have economic value for the country. The NNR sub-pillar is composed of seven
individual indicators which are applied to rank MENA countries (Chart 20).
As shown in the chart 20, Saudi Arabia is ranked the first position with a score of 0.667, followed
by Qatar, Algeria, Kuwait and Iran with 0.539, 0.351, 0.342 and 0.293 respectively. It means that
these five countries enjoy more natural resources which potentially could lead to considerable

158
economic gains for these countries. All these five countries are either GCC oil exporters or
developing oil exporters. The countries ranked in the lowest positions are Tunisia, Lebanon,
Jordon and morocco are totally oil importer. The oil and gas industry are largely ICT-dependent,
as ICTs are used in different phases of oil and gas production, from searching for new reserves to
refinery and transportation. ICTs provide possibilities for expanding proven crude oil reserves,
improve the rate of crude oil extraction from existing wells, and provide additional means to
discover new wells (UNCTAD, 2006).

National Natural Resource

SAU 0.667
QAT 0.539
ALG 0.351
KWT 0.347
IRN 0.293
IRQ 0.289
UAE 0.245
BAH 0.096
LYB 0.074
OMN 0.062
EGY 0.043
YEM 0.018
SYR 0.005
TUN 0.005
MOR 0.004
LBN 0.003
JOR 0.002

GCC countries Developing oil exporters Oil importers

Chart 20. MENA countries rankings by national natural resource (NNR)

5.4.6 National Financial Capital (NFC)

In this study national financial capital (NFC) is primarily defined as financial wealth of a nation as
a result of past national economic activities which represented and measured by gross domestic
product (GDP) at purchasing power parity (PPP) per capita. This measure takes into account the
relative cost of living and the inflation rates of countries, rather than using only exchange rates,
which may distort the real differences in income. MENA countries are ranked with respect to
their GDP (Chart 21). As shown, the top five countries are Qatar, Kuwait, United Arab Emirates,
Saudi Arabia and Oman respectively. Not only these five countries are ranked as the top 5 best
countries out of MENA region countries, but also based on other international comparisons like

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World Bank (2013), these five countries are ranked among world’s top 20 countries on GDP PPP
per capita.

National Financial Capital

(GDP per capita)
QAT 1.000
KWT 0.601
UAE 0.444
SAU 0.268
OMN 0.251
BAH 0.246
LYB 0.111
LBN 0.103
IRN 0.077
IRQ 0.071
ALG 0.057
JOR 0.052
TUN 0.045
EGY 0.035
MOR 0.031
SYR 0.022
YEM 0.016

GCC countries Developing oil exporters Oil importers

Chart 21. MENA countries rankings by nationa financial capital (NFC)

5.5 Capital Portfolio (CP) pillar’s Score

Hitherto, the capital portfolio’s sub-pillars have been measured and accordingly MENA countries
ranked in the previous section. Here to construct the capital portfolio pillar, the calculated scores
of its six sub-pillars are aggregated by applying geometric average method. This method implies
only partial compensability which means poor performance in each of these six sub-pillars cannot
be fully compensated by good performance in another. Through this method it is tried to give
sort of more importance to the sub-pillars that are doing not well and in this regard, it is the main
advantage of the geometric method over arithmetic aggregation method. A key statistical feature
with this method is that 1% increase in an indicator leads to the same impact on the aggregated
index. So, if a country wants to improve its capital portfolio condition, it should make more efforts
on the weakest sub-pillars. In capital portfolio pillar we would like that a country makes more
efforts on more weak sub-pillars.
Chart 22 depicts capital portfolio pillar’s scores and rankings for MENA countries. Here besides 4
Cooperation Council (GCC) economies (Qatar, United Arab Emirates, Saudi Arabia and Kuwait),
Iran as a developing oil exporter country is among the top five countries in capital portfolio pillar,

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whereas all GCC economies dominate top six countries in the ICT entities pillar. The four lowest-
performing countries are Jordan, Morocco, Yemen, and Syria with 0.138, 0.135, 0.131 and 0.106
scores, respectively. All these countries except Morocco have been suffering from ongoing
political instability, social unrest, security incidents and geopolitical tensions.
Chart 22 depicts capital portfolio pillar’s scores and rankings for MENA countries. Here besides 4
Cooperation Council (GCC) economies (Qatar, United Arab Emirates, Saudi Arabia and Kuwait),
Iran as a developing oil exporter country is among the top five countries in capital portfolio pillar,
whereas all GCC economies dominate top six countries in the ICT entities pillar. The four lowest-
performing countries are Jordan, Morocco, Yemen, and Syria with 0.138, 0.135, 0.131 and 0.106
scores, respectively. All these countries except Morocco have been suffering from ongoing
political instability, social unrest, security incidents and geopolitical tensions.

Capital Portfolio (CP) Pillar

country
Score Rank Capital Portfolio (CP)
ALG 0.302 8 QAT 0.659
BAH 0.333 6 UAE 0.504
EGY 0.221 11 SAU 0.500
IRN 0.348 5 KWT 0.496
IRN 0.348
IRQ 0.268 9
BAH 0.333
JOR 0.138 14 OMN 0.324
KWT 0.496 4 ALG 0.302
LBN 0.153 12 IRQ 0.268
LYB 0.241 10 LYB 0.241
MOR 0.135 15 EGY 0.221
OMN 0.324 7 LBN 0.153
TUN 0.141
QAT 0.659 1
JOR 0.138
SAU 0.500 3 MOR 0.135
SYR 0.106 17 YEM 0.131
TUN 0.141 13 SYR 0.106
UAE 0.504 2
YEM 0.131 16

GCC countries Developing oil exporters Oil importers

Chart 22.MENA countries rankings by Capital Portfolio (CP) pillar

Considering the sub-pillars of capital portfolio (CP), alike ICT entity (IE) pillar, there are huge
diverse and remarkable differences across MENA region countries. On the one hand, GCC nations
have made lots of efforts to improve their structures and infrastructures especially process and
structural capital towards ICT-based socio-economic development. On the other hand, we see
some nations in the MENA region which seriously suffer from very poor situation in several sub-

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pillars of capital portfolio of ISED ecosystem framework. Chart 23 depicts a comparison between
the two best (Qatar and United Arab Emirates) and the two worst countries (Yemen and Syria) in
terms of their scores in capital portfolio sub-pillars. As it can be seen, there are sizeable
differences across four countries especially in social capital, process & structural capital, and
human capital sub-pillars.
Qatar is leading the capital portfolio rankings among 17 MENA countries because of its high
performance in all sub-pillars of capital portfolio except for national renewal capital (6 th place).
Qatar enjoys an adequately supportive process and structural capital (3rd place), considerable
human capital (1st place) and social capital (2nd place). These scores coupled with absolutely rich
oil and gas resources results in a strong financial capital (1 st place). The Qatar’s regulatory
authority has also made significant efforts to obtain a fairly supportive rule-making situation (1st
place on the rule/procedure sub-pillar) that lead to in quite high technological capacity in ICT-
related fields as evidenced by the absolutely well-performance ICT infrastructure sub-pillar (1st
place).
Absolutely efficient process and structural capital (1 st place) and strong social capital (1st place)
account for the second best position of United Arab Emirates (UAE) among MENA countries in
capital portfolio pillar of ISED ecosystem framework. Although UAE doesn’t enjoy from huge
national resources (7th place) in compare with other MENA countries, strong supportive process
& structural capital with fairly rich national human capital (4 th) strengthened the UAE economy
and result in high national financial capital (3 rd). Relatively poor national renewal capital in Qatar
(6th) and UAE (9th) leads to weak national innovation system in these two nations.

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 NSC
1.0

0.8

0.6
NFC NHC
0.4

0.2

0.0

NRC NNR
QAT
UAE
YEM

NPSC SYR

Chart 23.The best and worst Countries in terms of sub-pillars of CP

5.6 ICT-based socio-economic development (ISED) composite index

Since the ICT-based socio-economic development concept is influenced by many interrelated

factors. So to estimate this multi-dimensional concept on the basis of presented ISED ecosystem
framework, a composite indicator is suggested by compiling the pillars and sub-pillars of ISED
ecosystem framework into a single index labeled ICT-based socio-economic development (ISED)
Index. Such aggregate statistic summarizes more than sixty individual indicators into few
dimensions to interpret them more easily. The ISED composite index would be regarded as a
country’s relative regional ranking. So, the resultant ranking from ISED composite index acts as a
signal or alarm that indicates whether the position of a nation is suitable or not, relative to other
nations in that region. This composite index attempts to highlight main weaknesses that impede
MENA countries to fully leverage their ICT potential to obtain proper level of ICT-based socio-
economic development. As already explained, ISED ecosystem framework comprises two main
pillars. The capital portfolio (CP) pillar consist of six sub-pillars reflects the social, economic,

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cultural and political circumstances of a nation and ICT entity (IE) pillar via its four sub-pillars
refers to ICT development state in a nation. Furthermore, the reciprocal interactions within and
between these two pillars might lead to achieve ICT-based socio-economic development impacts.
Here, the development impacts have been defined as the outcomes of ISED ecosystem
framework. Testing the cause and effect relationships among all elements of ISED ecosystem
framework and providing an accurate estimate of outcomes of this framework require to run an
econometric model that is not in the scope of this research.
Nevertheless, interactions among sub-pillars of ISED ecosystem framework are complex and are
influenced with many internal and external factors, the ISED composite index aimed at revealing
these relationships with the adoption of the proposed ISED ecosystem framework. Therefore,
the ISED composite index can unveil how different countries in MENA region are reaping benefits
from various level of ICT-based socio-economic development. The analysis of ISED index would
shed light on intra-regional differences and heterogeneities across MENA region countries.
As depicted in chart 24, the Gulf Cooperation Council (GCC) countries show better outcomes in
terms of ISED composite index compared to other groups of countries.

ISED composite Index

country
Scores Rank MENA countries Ranking By
ALG 0.304 11 ISED Index
BAH 0.494 5
EGY 0.332 9 QAT 0.723
UAE 0.672
IRN 0.410 7 SAU 0.595
IRQ 0.271 14 KWT 0.545
JOR 0.310 10 BAH 0.494
KWT 0.545 4 OMN 0.463
IRN 0.410
LBN 0.335 8 LBN 0.335
LYB 0.270 15 EGY 0.332
MOR 0.289 13 JOR 0.310
ALG
OMN 0.463 6 0.304
TUN 0.299
QAT 0.723 1 MOR 0.289
SAU 0.595 3 IRQ 0.271
SYR 0.190 16 LYB 0.270
SYR 0.190
TUN 0.299 12 YEM 0.178
UAE 0.672 2
YEM 0.178 17
GCC countries Developing oil exporters Oil importers

Chart 24. MENA countries rankings by the ISED composite index

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Qatar holds the highest position based on the ISED composite index. Benefiting from rich human
capital (1st place), favorable social capital (2nd place) in addition to the government’s efforts to
create an effective ICT regulation authority (1st place) to expand the ICT infrastructures (1st place),
all have brought this position for Qatar in the ISED index ranking. However, this country needs to
take some actions to improve the level of renewal capital (6th place) and process & structural
capital (3rd place) to strengthen its national innovation system. A well-functioning national
innovation system could result in higher level of ICT fund/innovation sub-pillar (3rd). Moreover,
the gainful national natural resources (2 st place) and consequently high level of financial capital
(1st place), provide suitable condition for obtaining significant positive ICT-based socio-economic
development outcomes.
The United Arab Emirates, as the second top country in term of ISED index among 17 MENA
countries without large natural resource reserves (7th place) regarding other GCC nations, has
gained a proper level of national financial capital (3 rd place) by improving the efficiency of its
process and structural capital (1st place). Moreover, government investments in ICT
infrastructures (2nd place) in addition to the proper ICT rule/procedure entities (2 nd place) and
availability of latest ICT technologies (2 nd place) have prepared the desirable conditions for
business-to-business internet use (2nd place), business-to-consumer internet use (1st place) and
use of online public services by citizens (2 nd place). However, improving the renewal capital (9 th
place) and enriching national human capital (4th place) particularly at tertiary level should become
a priority for this country if it intends to move towards a less resource-dependent and more
knowledge-intensive economy.
Saudi Arabia, holding 3rd place on ISED index, possesses the most gainful natural resources (1st
place) among selected MENA countries. Despite low social capital score (11th place) and poor
human capital score (13th place) as well as unfavorable renewal capital score (7th place), this
country benefits from high level of process & structural capital (2nd place) and telecom
investment (1st place) that might result in fairly level of ICT infrastructure entity (5th place) and
ICT provide/use entity (5th place). All these provide suitable condition for leveraging ICT and
obtaining positive ICT-based socio-economic development outcomes. However, this level of ISED
outcome doesn’t necessarily contribute to the transition toward a less resource-dependent

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 economy, because of the level of human capital (13th place) and renewal capital (7th) in this
nation.

5.7 The correlation Analysis

Here the main aim of the correlation analysis is to shed light on the relationships that exist
between capital portfolio pillar –reflecting the social, economic, cultural, and political
circumstances of a nation- and ICT entity pillar –reflecting the level of ICT development of a
nation (as two main pillars of ISED composite index). So, chart 25 depicts the relationships
between the scores in the capital portfolio (CP) pillar and the ICT interacting entity (IE) pillar
showings of ISED composite index.
As it is shown in the chart 25, a positive and linear association exists between the scores of two
pillars i.e. the higher capital portfolio of a country is, the higher ICT entity is. The correlation
analysis suggests that a threshold in social, economic, cultural, and political circumstances may
also exist for a country to start benefiting from the ICT development impacts. It means that a
minimum set of circumstances are needed in order to obtain ICT-based socio-economic
development outcomes.

Correlations

NCP IEI

Spearman’s rho
1 .755**
Correlation
NCP
Sig. (2-tailed) .000

N 17 17
Spearman’s rho
.755** 1
Correlation
IEI
Sig. (2-tailed) .000

N 17 17

**. Correlation is significant at the 0.01 level (2-

tailed).

Chart 25. Correlation between CP and IE pillars

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To explore the relations among sub-pillars of ISED ecosystem framework the Spearman
coefficient correlation have been applied. Accordingly Spearman correlation coefficients for 10
sub-pillars of ISED ecosystem framework with confidence interval of 95% and 99% (2-tailed) have
been computed (Table 33). Commonly used procedure, based on the Pearson's correlation
coefficient, for making inferences about the correlation coefficient the implicit assumption is that
the two variables are normally distributed. When this assumption is not justified or the
relationship between two variables is non-linear, a non-parametric measure such as the
Spearman correlation coefficient might be more appropriate.
As the table 33 indicates, there are positive, high and significant correlations among all sub-pillars
of ISED ecosystem framework at 0.05 or 0.01 level (2-tailed) except for “national renewal capital”
and “national natural resource”. There are very strong correlations among “process & structural
capital”, “ICT infrastructure entity”, “provide/use entity”, and “rule/procedure entity”. In fact this
high correlation largely supports defined role for “process & structural capital”. In other words,
in presented ISED ecosytem framework, “process & structural capital” is considered as a key
factor to enhance the nation’s capability using the other sub-pillars of capital portfolio to create
value. Moreover, the correlations among “renewal capital”, “social capital”, and “human capital”
are considerable.
The weakest correlation is between “natural resource” and the other sub-pillars of ISED
ecosystem framework (except national financial capital). It means that subjects with higher
values of “national natural resources” don’t tend necessirly to have higher values of other sub-
pillars of ISED ecosystem framework.
By tracing the countries’ positions in various sub-pillars of ISED ecosytem framework, the
aforementioned findings would become more clear. For instance a country like Iran despite the
best position in “renewal capital”, second position in ‘human capital”, and fifth position in
“national natural resource” among MENA countries, stands in the lower half of the rankings in
sub-pillars of ICT entity of ISED ecosystem framework because of its poor position in “process &
structural capital”. Totally, the laggers in terms of the level of “process & structure capital” are
the worst in terms of sub-pillars of “ICT entity” pillar. On the other hand, the leaders in terms of

167
the level of “process & structure capital” are the best in terms of sub-pillars of “ICT interacting
entity” pillar.
According to table 33, the “rule/procedure entity” is highly correlated with “ICT infrastructure
entity” and “provide/use entities”, 0.809 and 0.767 respectively. Also, “process & structural
capital” is highly correlated with “ICT infrastructure entity” and “provide/use entities”, 0.814 and
0.880 respectively. These results corresponded with defined role for “rule/procedure entity” and
“process & structural capital” in ISED ecosystem framework. It means that subjects with higher
values of “rule/procedure entity” and “process & structural capital” tend to have higher values
of “ICT infrastructure entity” and “provide/use entity”. In other words, considering
“rule/procedure entity” and “process & structural capital” conditions allow policy makers and
decion makers to predict the situation of “ICT infrastructure entity” and “provide/use entity” with
considerably greater accuracy.
Also, “rule /procedure entity” and “process & structural capital” are highly correlated with “social
capital” (0.770, 0.784). It means that subjects with higher values of “rule/procedure entity” and
“process & structural capital” tend to have higher values of “social capital”. In other words,
knowing “rule/procedure entity” and “process & structural capital” allow countries to predict the
situation of “social capital” with considerably greater accuracy than if they didn’t know them.
Natural resources and financial capital are correlated (0.658). This correlation was predictable
especially in MENA region with highly natural resource based economies.
Based on proposed ISED ecosystem framework (figure 15), we defined nurture and supportive
role for “fund/innovation entity” to facilitate “ICT infrastructure entity” and “provide/use entity”
improvement. The correlation between “fund/innovation entity” and these two sub-pillars
(0.750, 0.811) support this role for “fund/innovation entity” in proposed ISED ecosystem
framework.
As discussed above, the correlation analyses contribute to clarify the interactions among various
sub-pillars of ISED ecosystem framework that eventually these interactions lead to ICT-based
socio-economic development, however still remains a long way to fully explore their cause and
effects interactions.

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 Table 33. Spearman coefficient correlation

NSC NHC NNR NPSC NRC NFC ICT PUE RPE FIE
NSC 1.000
NHC .527* 1.000
NNR -.011 .192 1.000
NPSC .784** .463 .358 1.000
NRC .365 .605* -.168 .272 1.000
NFC .485* .512* .658** .708** -.032 1.000
ICT .743** .691** .344 .814** .353 .797** 1.000
PUE .767** .667** .317 .880** .316 .770** .941** 1.000
RPE .770** .537* .236 .860** .392 .650** .809** .767** 1.000
FIE .652** .615** .153 .779** .475 .561* .750** .811** .816** 1.000

Correlation is significant at the 0.05 level (2-tailed).*

Correlation is significant at the 0.01 level (2-tailed). **

5.8 ISED Gap in MENA region

So far, the ISED ecosystem framework, its main pillars and sub-pillars and comparative analysis
across MENA region countries on the basis of their scores on aforementioned pillars and sub-
pillars have been discussed in detail. In this section as the final part of the quantitative chapter,
it is attempted to provide a broad and summary picture on ISED scores and positions of the
countries and consequently the ISED gap across the MENA region.
The analysis of sup-pillars’ scores of ISED ecosystem framework shows that there is a significant
variation across the MENA region countries. Although it is difficult to create relatively
homogeneous country groups in MENA region in terms of the level of their sub-pillars of ISED
ecosystem framework, Chart 26 depicts the Gulf Cooperation Council (GCC) economies’ scores
of the 10 sub-pillars of ISED ecosystem framework compared to the other countries. While all the
GCC economies are leading in the rankings, the rest of MENA countries are lagging behind. In
this regard, the GCC economies are much stronger than other MENA countries and there is a
significant gap within the MENA region countries.

169
 GCC economies Other MENA economies

ICT
1.0

NFC 0.8
PUE

0.6

0.4
NRC RPE
0.2

0.0

NPSC FIE

NNR NSC

NHC

Chart 26. The ISED gap in MENA region

Accordingly, a number of key findings can be highlighted:

- The gap between GCC economies and the rest of MENA countries is reflected in nine sub-
pillars of ISED ecosystem framework.
- Regarding access to affordable ICT infrastructures with a high quality, there is a huge gap
between GCC nations and the rest of countries. Actually, GCC countries depict fairly well-
developed “ICT infrastructures” sub-pillar, whereas other nations should start to
strengthen the quality and variety of affordable “ICT infrastructure” sub-pillar.
- Among sub-pillars of ISED composite index, the gap in the “ICT provide/use” sub-pillar is
one of the biggest gaps. Indeed, the “ICT Provide/use” sub-pillar indicates how different
interest groups in demand-side and supply-side of ISED ecosystem framework benefit
from ICT sector. The effective use of ICTs to enhance innovation and competitiveness
greatly depends not only on developing ICT infrastructures but also on creating the right
ICT regulation condition. So there are strong association between the level of

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 “rule/procedure” and “provide/use” sub-pillars. This association justifies the gap on the
“rule/procedure” sub-pillar.
- The gap in terms of “national process and structural capital” sub-pillar depicts that GCC
countries enjoy from a better situation of business, government, and economy structures,
in compare with the rest of MENA nations. It means that GCC economies could potentially
create more values from theirs tangible and intangible assets. This assertion could be
confirmed regarding the gap between GCC countries and the others on the “national
financial capital” sub-pillar.
- Most countries depict an undesirable level of national renewal capital (NRC). It means
that all MENA countries should improve and boost their entrepreneurial activities,
entrepreneurial attitudes, and their national innovation system.

To sum up, I try to classify the MENA countries based on both their capital portfolio (CP) scores
and their ICT entity (IE) score compared with the MENA average scores. In fact, the position of
each country is then determined according to whether it locates above or below the MENA region
CP average and the IE average score. As depicted in chart 27, each country’s position reflects its
situation in relation to pillars of ISED ecosystem framework. Each country’s position also indicates
whether it is catching up or lagging behind the MENA countries’ trend of leveraging ICT-based
socio-economic development. The relative position of the countries to the MENA average scores
paves the road for a classification. Based on this classification, four country groups can be
identified:
Group 1: those countries whose both IE and CP scores are above average. Bahrain, Kuwait, Oman,
Qatar, Saudi Arabia, and United Arab Emirates belong to this group.
Group 2: those countries whose CP scores are above average, but the IE scores are below
average. Iran is the only country belongs to this group.
Group 3: those countries whose IE scores are above average, but CP scores are below average.
Lebanon belongs to this group.
Group 4: those countries whose both IE and CP scores are below average. Tunisia, Jordan, Egypt,
Morocco, Algeria, Libya, Iraq, Yemen, and Syria belong to this group.

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 MENA Average

Chart 27. MENA countries’ CP and IE average scores

In what fallows, the main findings based on this classification are addressed:
All the Gulf Cooperation Council (GCC) economies belong to group 1. It means the government
in these economies have recognized the importance of investing in ICTs as a way to enhance
socio-economic development. So these nations attempt to develop ICT entities of ISED ecosystem
framework by taking advantages of the proper level of their capital portfolio.
All countries which belong to group 4, either are suffering from violent conflicts that have
influenced all components of capital portfolio (such as Syria, Iraq, Libya), with spillovers to
neighboring countries such as Jordan or are Aras-spring countries like Tunisia, Egypt, and Yemen
which are in the midst of challenging political transitions that have worsened the component of
capital portfolio. As a result of lower level of capital portfolio, the level of ICT interacting entities
of ISED ecosystem would be dropped. Consequently, the lower level of pillars of ISED ecosystem
lead to the lower level of ICT-based socio economic development as the outcome of ISED
ecosystem framework.
However, CP score of Iran as the only country which belongs to group2, is greater than some
countries in group 1, the score of ICT entity in Iran is lower than average level. Several different

172
reasons may explain this pattern for Iran. It would be because of the considerable weakness in
the “process and structural capital” and “social capital” conditions that hampered Iran’s potential
to enhance the level of ICT entity of ISED ecosystem framework. Furthermore, it would be
because of some external factors like strong economic sanctions against Iran. These sanctions
have targeted investments in oil, gas, petrochemicals, and exports of refined petroleum products
as the main source of Iran’s financial capital. These sanctions also include web-hosting services
for commercial endeavors, and domain name registration services. The consequence of the
strong and positive correlation between capital portfolio pillar and ICT ientity pillar (as the main
elements of ISED ecosystem framework) causes lower level of ICT-based socio-economic
development (as the outcome of ISED ecosystem framework) in this country compare with GCC
economies.
The only country in group 3 is the Lebanon. However, this nation is particularly lagging behind
two-third of selected MENA countries on CP pillar, it’s IE pillar is slightly above average. It would
be because of the fairly level of RPE sub-pillar (specially government prioritization of ICT).

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Chapter 6
Conclusion

174
6 Conclusion

In this research project through developing an ISED ecosystem framework, ICT contribution to
socio-economic development across selected MENA countries was investigated in great detail. In
other words, an ISED ecosystem framework has been developed to determine all the contextual
factors and ICT entities that cause ICT-based socio-economic development. Then to test the
interrelations among the main elements of proposed ISED ecosystem framework, a comparative
analysis across 17 MENA countries was carried out. The empirical findings show that there are
positive and linear associations between the scores of two pillars of ISED ecosystem framework.
It means that the higher capital portfolio (CP) of a country is, the higher ICT entity (IE) is.
The correlation analysis between CP and IE suggests that a threshold in social, economic, cultural
and political circumstances may also exist for a country to start benefiting the ICT development
impacts. It means that a minimum set of circumstances are needed in order to obtain ICT-based
socio-economic development outcomes. The correlation analysis among 10 sub-pillars of ISED
ecosystem framework sheds light on intertwined interactions among various sub-pillars of this
framework that lead to ICT-based socio-economic development.
The main conlusions regarding qualitative and quantitative parts have been summarized as the
following points:
 Conducting grounded theory research method helped us to determine main ICT Players,
dimensions of interactions, and contextual factors of ISED ecosystem framework.
 The consequences of the interactions within and between the 10 sub-pillars of this
ecosystem framework, can be converted into ICT-based socio-economic development
impacts as the outcome of ISED ecosystem framework.
 The outcome of ISED ecosystem framework divided into three advancing impacts
including: 1) political freedom and transparency guarantees, 2) social opportunities and
protective security, 3) economic facilities and one disturbing impact contains
criminal/illegal used of ICT & cultural changes.
 The elaborated ISED ecosystem framework unveils that however, ICTs have the potential
to transform socio-economic conditions, the technological aspects of ICT alone are not
enough to allow ICTs to show their fully potential. The capital portfolio of pertinent

175
 context that reflects the status quo of a nation plays a significant role to allow ICTs to
appear their full potential.
 Improvement of capital portfolio and raise more demands for ICT services/product are
dependent upon each other.
 MENA countries suffer from undesirable process and structural capital and also
weaknesses on social capital and human capital that impede their capacity to fully
leverage the ICT growth that causes lower innovation and competitiveness potential.
 The serious weaknesses on renewal capital that refer to the ability of a nation to improve
its national innovation system hinder the overall potential of this region to leverage ICT
interacting entities to improve the level of ICT-based socio-economic development
throughout the MENA region.
 The severe weaknesses in some components of capital portfolio like “human capital” and
“renewal capital” of ISED ecosystem framework lead to highlighting the rise of the new
digital divide that is the gap between nations which are attaining progressive social,
economic, cultural, and political impacts related to the ICTs use and those that are not.
 Since there are significant differences on various sub-pillars of ISED ecosystem framework
across MENA countries, it is necessary to maximize the positive impacts of ICT entities all
through the MENA region and create synergies and positive spillover effects.
 Although some significant exceptions exist, the MENA region suffer from a relative poor
ICT interacting entities, which are not affordable to access.
 The quantitative results show that GCC economies have made notably attempts to
develop all sub-pillars of ICT interacting entities such as the ICT infrastructure entity
especially mobile broadband infrastructure that has resulted in new electronic services.
 There are a huge intra-regional gap in MENA region on various sub-pillars of ISED
ecosystem framework.
 The correlation analysis reveals strong positive relationship among “national human
capital” and “national renewal capital”. It means subjects with higher level of national
human capital in a nation tends to has higher level of national renewal capital.

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  There is a strong correlation between “human capital” sub-pillar including literacy
indicator and “Provide/Use” entity sub-pillar (0.668). The usage of ICT tools and services
requires users to have access as well as the capability to learn and acquire a certain level
of skills in order to use them effectively. People who possess this knowledge (the
educated populace) will be able to use, create and disseminate information.
 The results of quantitative analysis displays that enjoying the higher level of renewal
capital and human capital without paying attention to process and structural capital could
not necessarily lead to higher level ICT-based socio-economic development.
 There are high positive correlations among “process & structural capital”, “financial
capital” and 4 sub-pillars of ICT entities. It means that “process & structural capital” could
play a crucial role to improve an economy’s capabilities to create value from ICT
development.
 This study also indicates that there is a positive linear correlation between “provide/use
entity” sub-pillar (including “mobile broadband penetration” and “social network visitors”
sub-indicators) with “social capital” sub-pillar (including “civil liberties”, “political rights’,
and “women rights” sub-indicators). It means that citizens subject with increased number
of Internet users and social network users, tend to have higher level of civil liberties.
 Considering the interrelations among 10 sub-pillars of ISED ecosystem framework, a new
composite index has been constructed in this research work labeled “ICT-based socio-
economic development”. Constructing such composite index which is comprised of sub-
pillars of ICT interacting entities and capital portfolio could likely reflect more accurate
picture about the level of ICT-based socio-economic throughout MENA countries.

The results of quantitative phase not only shed light on the weaknesses and strengths of MENA
region regarding proposed ISED ecosystem framework’s pillars and sub-pillars, but also could
have some policy implications such as drawing ICT-related industrial policies and initiatives for
less developed countries in this region.
In the following lines some specific ICT-related industrial policies have been suggested for MENA
region countries that largely based on this research theoretical and empirical results.

177
As discussed in theoretical background chapter, ICT is regarded as a key factor in achieving
dynamic and competitive knowledge-based economy. So, a strong ICT sector may support the
development of a knowledge-based economy. Consequently an advanced knowledge-based
economy will benefit from the ICT sector and in return it stimulates demand and innovation of
ICT product/services. In this regard, the proposed ICT-related industrial policies would provide a
platform to improve competitiveness and growth in ICT sector to facilitate achieving knowledge-
based economy in MENA region. From an ICT4D expert’s point of view one may argue that there
are other findings or theories which may lead to other ICT-related industrial policies. This
argument is fairly true. In generating these industrial policies the main elements of ISED
ecosystem framework have been taken into account. The suggested industrial policies involve
particularly two areas namely, “policies for ICT entity innovation” and “policies for capital
portfolio’s adaptability”. Policies for ICT entity innovation are targeted towards both ICT supply-
side and demand-side and capital portfolio adaptability policies are targeted towards improving
the contextual factors adaptability. The suggested industrial policies are:
- Provide sectorial incentives in ICT research, development, and innovation ( hereafter
R&D&I) activities in ICT small and medium size enterprises (SMEs), universities and ICT
research institute;
Due to low incentives in R&D&I activities, the ICT SMEs and universities usually underinvest
in service/product innovation which lead to lose their competitiveness in long run. So, these
incentives could be financial or legal as well as direct or indirect. For instance direct subsidies
to costs of technical facilities to conduct ICT R&D&I, marketing activities such as participation
in trade exhibition. Indirect incentives may include tax reduction, public consulting services,
resource sharing in public-private partnerships.
- Support to create “ICT standard setting institutions” and “ICT legal institutions”;
The lack of suitable standard setting and neutral legal institutions in MENA countries, impede
ICT sector development. These institutions not only create a favorable environment for e-
business but also, help to improve ICT and e-business practices’ adaption in SMEs and large
enterprises.

178
- ICT infrastructure enhancement;
Establishing essential infrastructure to provide affordable and ubiquitous access to advanced
telecom services, is vital to benefit from ICT. Moreover, Infrastructure policy related to ICT
and e-business may also include the provision of ICT incubators and ICT technology parks and
the provision of ICT and e-business-related information.
- Develop an independent ICT regulatory authority;
The ICT regulatory authority is a public authority that is independent from arms of the
government, exert autonomous authority over ICT sector activities. The regulator main
activities consist definition of obligatory ICT standards or public support of standards
developed by industry, public certification of electronic goods and processes, ICT professional
codes, definition of entry rules to ICT markets, price interventions in the ICT market, tariffs or
non-tariff barriers in foreign trade of ICT goods. Regulation policy may also include
deregulation of industries such as telecommunications and the reduction of administrative
burdens to e-business.
- Support to enhance ICT and e-business skills (e-skills);
The optimization of ICT-based systems requires ICT user skills, e-business management skills,
and ICT practitioner skills.
- Reengineering and improvement of government, business and economy structure;
The process & structural capital which include all business, economy and government
structures plays a crucial role to improve an economy’s capabilities to reach ICT-based
development which may help it to create value from non-renewable natural resource. So, if
GCC countries and developing oil exporters’ nations in MENA region want to diversify their
economies that make them less dependent on international energy prices, they should
change their strategy toward achieving a strong ICT sector. Such changes entail improvement
and reengineering of business, government, and economy processes and structures.
- Improve cooperative ICTD activities;
Due to the huge intra-regional ISED gap across MENA region, there is a critical need for ICT-
related policies and initiatives on both national and regional levels to increase cooperation
and to share best practices of MENA countries in ICT sector to close intra-regional gap.

179
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188
 Appendix
Appendix 1. Interview protocol
Appendix2. Two-round Delphi questionnaire
Appendix 3.Three-round Delphi questionnaire
Appendix 4. Countries profile

189
8 Appendix

Appendix 1
Elements of ICT-based socio-economic development (ISED) ecosystem framework

Interview Protocol

Regarding the concept and feature of ICT-based socio-economic ecosystem framework which is explained
by researcher in focus group discussion meeting, please answer to the following questions:

- How do you interpret the relationship between socio-economic development and ICT
development?
- In your opinion, what is the overall conditions of ICT-based socio-economic development in
developing countries?
- What are the key players/entities which are interacting in an ISED ecosystem framework?
- What positions could be identified for interacting entities with similar functions?
- What kind of interactions do you define among various entities of ISED ecosystem framework?
- In your opinion, how are entities’ positions and interactions’ dimensions corresponded?
- What are contextual factors which play key roles in determining particular ICT-based socio-
economic development path?
- Are these contextual factors corresponded with capital portfolio of choice framework and
sustainable livelihood framework?
- What bearing do capital portfolio of pertinent context have on the interacting entities of ISED
ecosystem framework?
- What dimensions do you suggest for ICT-based socio-economic development?
- Regarding concept of Sen’s capability approach how do you define dimensions of ICT-based
socio-economic development?
- What is your interpretation about political and social aspect of ICT-based socio-economic
development?
- What is your interpretation about cultural transform is derived from ICT development?
- What interrelations are there among different elements of ISED ecosystem framework?

190
 Appendix 2
Dimensions of ICT-based socio-economic development

Relevance of Dimensions
Title of Dimensions
Slightly
Unimportant Important Very important
important
Participation in the political process ☐ ☐ ☐ ☐
Opportunities for education ☐ ☐ ☐ ☐
Opportunities for healthcare ☐ ☐ ☐ ☐
Self-fulfillment ☐ ☐ ☐ ☐
New business opportunities ☐ ☐ ☐ ☐
Effective management of current business ☐ ☐ ☐ ☐
Changes in social behavior ☐ ☐ ☐ ☐
Westernization ☐ ☐ ☐ ☐
Addiction of ICT use ☐ ☐ ☐ ☐
Pornography ☐ ☐ ☐ ☐
Personal security ☐ ☐ ☐ ☐
criminal use ☐ ☐ ☐ ☐
staying in touch with family ☐ ☐ ☐ ☐
develop new friendship ☐ ☐ ☐ ☐
sustainable development ☐ ☐ ☐ ☐
economic productivity ☐ ☐ ☐ ☐
poverty alleviation and empowerment ☐ ☐ ☐ ☐
democracy ☐ ☐ ☐ ☐

Template used to analyze the questionnaires

Groups of Dimensions
Title of Dimensions
Unchanged or
Deleted Added
Modified
☐ ☐ ☐
☐ ☐ ☐
☐ ☐ ☐
☐ ☐ ☐
☐ ☐ ☐
☐ ☐ ☐
☐ ☐ ☐
☐ ☐ ☐
☐ ☐ ☐
☐ ☐ ☐
☐ ☐ ☐
☐ ☐ ☐
☐ ☐ ☐
☐ ☐ ☐

191
 Appendix 3
Template used for questionnaires in first and second rounds of Delphi method

Indicator’s code Indicator’s title

Category* ☐ Unchanged ☐ Modified ☐ Doubtful ☐Added

Measurement ☐Numerical ☐Percentage ☐Nominal ☐Ordinal

Type of data source ☐Survey ☐Public data set

Time references ☐The most recent data ☐n years’ average

Indicator characteristics Unimportant Slightly important Important Very important

Relevance: importance of indicator for
measurement of related pillar of ISED ecosystem ☐ ☐ ☐ ☐
framework
Validity: ability of the indicator to measure what
☐ ☐ ☐ ☐
really has to be measured
Reliability: a measure of the absence of random
☐ ☐ ☐ ☐
error associated with the indicator
Comparability: possibility of making adequate
☐ ☐ ☐ ☐
comparisons between different nations
Note: the item fallowed by (*) will be filled for second round questionnaires on the basis of first round results.

Template used for questionnaire in third round of Delphi method

Indicator’s code Indicator’s title

Category* ☐ Unchanged ☐ Modified ☐ Doubtful ☐Added

Selection criteria 1** 2 3 4 5 6 7***

Importance: a measure to
identify relative significance of
each indicators
Feasibility: expected facility of
obtaining the information

Note: the item fallowed by (*) will be filled for third round questionnaire on the basis of second round results.
The scale fallowed by (**) means the least important or the least feasible
The scale fallowed by (***) means the most important or the most feasible

192
 Appendix 4

Countries Profile

193
Algeria
IE Pillar1: ICT Entities 13
ISEDI ICT-based socio-economic development Index 11 CP Pillar 2: Capital Portfolio 8

The ICT-based socio-economic development (ISED) Composite Index in detail

Code Individual indicators Rank Code Individual indicators Rank
Sub-pillar 1.1: ICT Infrastructure Entity 14 Sub-pillar 2.2: National Process & Structural Capital 10
IIE1 Fixed telephone subscribtions per 100 inhabitants 15 PSC1 Doing B business index 15
IIE2 households with computer 12 PSC2 Governance Indicators 12
IIE3 Mobile Cellular subscriptions per 100 inhabitants 11 PSC3 Economic Freedom Index 13
IIE4 Percentage of households with internet access 16 PSC4 Inflation Rate (%) 7
IIE5 secure internet servers/ million pop 15 PSC5 GINI index 12
IIE6 international Internet bandwidth 9 PSC7 Current Account Balance 8
IIE7 price basket for residential fixed line 15 PSC8 Economic growth 9
IIE8 price basket for mobile cellular 12 PSC9 Capital goods gross imports(US$ mil) 4
IIE9 cost of fixed broadband 10 PSC10 E-government index 14
IIE10 cost of mobile-broadband 12 Sub-pillar 2.3: National Renewal Capital 12
Sub-pillar 1.2: Provide/Use Entity 13 RC1 Researchers 11
PUE1 percentage of individuals using the internet 15 RC2 R&D expenditure 12
PUE2 mobile broadband subscriptions per 100 inhabitants 17 RC3 scientific & technical journal articles 5
PUE3 fixed broadband subscriptions per 100 inhabitants 9 RC4 Patents 6
PUE4 business-to-consumer internet use 17 RC5 Venture capital 15
PUE5 use of online public services by citizens 12 RC6 S&T parks and Incubators 15
PUE6 business-to-business internet use 16 RC7 High Techs exports 14
PUE7 facebook penetration rate 14 RC8 Technology absorption 16
PUE8 ICT Service Export (% of total service export) 1 RC9 Capital goods export 7
PUE9 ICT good import (% of total good import) 8 RC10 Entrepreneurial Attitudes 7
Sub-pillar 1.3: Rule/Procedure Entity 16 RC11 Entrepreneurial Activity 3
RPE1 laws relating to ICT 14 Sub-pillar 2.4: National Social Capital 10
RPE2 Freedom on the web 12 SC1 Perception of Happiness 6
RPE3 Existence of software copyright law 17 SC4 Crime 12
RPE4 Government prioritization of ICT 14 SC6 Political Rights* 6
RPE5 Existence of USO policy 16 SC7 Civil liberties* 5
RPE6 Independence of regulatory 15 SC8 Women Rights 2
Sub-pillar 1.4: Fund/Innovation Entity 16 Sub-pillar 2.5: National Natural Resource 3
FIE1 ICT Expenditure As % of GDP 14 NNR1 Total freshwater withdrawal 7
FIE2 Telecom Investment 13 NNR2 Crude Oil Production 7
FIE3 Level of e-participation development 14 NNR3 Crude Oil exports 7
FIE4 Availability of latest ICT technology 16 NNR4 Natural gas marketed production 4
FIE5 ICT PCT patents, applications/million pop. 14 NNR5 Natural gas exports 2
FIE6 ICT R&D labor force 10 NNR6 Exports of petroleum products 6
FIE7 Intencity of competition among ICT interprise 17 NNR7 Value of petroleum exports 8
FIE8 Existance of new organization model 17 NNR8 Output of Petroleum Products 7
Sub-pillar 2.1: National Human Capital 14 Sub-pillar 2.1: National Financial Capital 11
HC2 Share of Young People to population 9 NFC1 GDP at PPP per capita 11
HC4 Public expenditure on education 2
HC5 Adult Literacy Rate 15 Algeria is an authoritarian regime. The head of state is the president. A
HC7 Labor force participation rate, total (% ages 15-64) 14 constitutional amendment passed by the Parliament in 2008 removed the two
HC8 Employment to population ratio,+15,total(%) 14 five-year terms limitation. The President is the head of the army, the Council
HC9 Labor force, Female(% of total labor force) 11 of Ministers and the High Security Council. He appoints the Prime
HC10 Science and Engineering Enrolment Ratio (%) 15 Minister who is also the head of government. Sunni Islam is the predominant
religion. The Algerian government passed new laws in 2012 that revised
HC11 Brain Drain 16
regulations on political parties, associations, the media, access to information,
HC12 Life Expectency 14
and electoral list quotas for female candidates. The new laws on associations
HC13 Health Expenditure % of GDP 7
and the media, in particular, were criticized for continuing to restrict the
activities of civil society, freedom of the press, and access to information.

Note: Indicators fallowed by (*) are employed the value rather than rank
Indicators fallowed by (**) are measured on a 1-to- 7 (worst) scale

194
 Bahrain
IE Pillar1: ICT Entities 4
ISEDI ICT-based socio-economic development Index 5
CP Pillar 2: Capital Portfolio 6

The ICT-based socio-economic development (ISED) Composite Index in detail

Code Individual indicators Rank Code Individual indicators Rank
Sub-pillar 1.1: ICT Infrastructure Entity 4 Sub-pillar 2.2: National Process & Structural Capital 6
IIE1 Fixed telephone subscribtions per 100 inhabitants 3 PSC1 Doing B business index 4
IIE2 households with computer 1 PSC2 Governance Indicators 5
IIE3 Mobile Cellular subscriptions per 100 inhabitants 5 PSC3 Economic Freedom Index 1
IIE4 Percentage of households with internet access 2 PSC4 Inflation Rate (%) 6
IIE5 secure internet servers/ million pop 4 PSC5 GINI index 5
IIE6 international Internet bandwidth 6 PSC7 Current Account Balance 7
IIE7 price basket for residential fixed line 4 PSC8 Economic growth 8
IIE8 price basket for mobile cellular 6 PSC9 Capital goods gross imports(US$ mil) 15
IIE9 cost of fixed broadband 5 PSC10 E-government index 2
IIE10 cost of mobile-broadband 3 Sub-pillar 2.3: National Renewal Capital 14
Sub-pillar 1.2: Provide/Use Entity 4 RC1 Researchers 14
PUE1 percentage of individuals using the internet 1 RC2 R&D expenditure 14
PUE2 mobile broadband subscriptions per 100 inhabitants 6 RC3 scientific & technical journal articles 15
PUE3 fixed broadband subscriptions per 100 inhabitants 1 RC4 Patents 14
PUE4 business-to-consumer internet use 10 RC5 Venture capital 4
PUE5 use of online public services by citizens 1 RC6 S&T parks and Incubators 12
PUE6 business-to-business internet use 4 RC7 High Techs exports 12
PUE7 facebook penetration rate 7 RC8 Technology absorption 7
PUE8 ICT Service Export (% of total service export) 16 RC9 Capital goods export 11
PUE9 ICT good import (% of total good import) 12 RC10 Entrepreneurial Attitudes 8
Sub-pillar 1.3: Rule/Procedure Entity 5 RC11 Entrepreneurial Activity 15
RPE1 laws relating to ICT 4 Sub-pillar 2.4: National Social Capital 6
RPE2 Freedom on the web 13 SC1 Perception of Happiness 8
RPE3 Existence of software copyright law 4 SC4 Crime 4
RPE4 Government prioritization of ICT 3 SC6 Political Rights** 6
RPE5 Existence of USO policy 5 SC7 Civil liberties** 6
RPE6 Independence of regulatory 4 SC8 Women Rights 9
Sub-pillar 1.4: Fund/Innovation Entity 5 Sub-pillar 2.5: National Natural Resource 8
FIE1 ICT Expenditure As % of GDP 7 NNR1 Total freshwater withdrawal 16
FIE2 Telecom Investment 14 NNR2 Crude Oil Production 12
FIE3 Level of e-participation development 3 NNR3 Crude Oil exports -
FIE4 Availability of latest ICT technology 1 NNR4 Natural gas marketed production 10
FIE5 ICT PCT patents, applications/million pop. 9 NNR5 Natural gas exports -
FIE6 ICT R&D labor force 8 NNR6 Exports of petroleum products 7
FIE7 Intencity of competition among ICT interprise 4 NNR7 Value of petroleum exports -
FIE8 Existance of new organization model 4 NNR8 Output of Petroleum Products -
Sub-pillar 2.1: National Human Capital 6 Sub-pillar 2.6: National Financial Capital 6
HC2 Share of Young People to population (%) 3 NFC1 GDP at PPP per capita 6
HC3 Number of Tertiary Teachers 12
HC5 Adult Literacy Rate 3 Bahrain is a constitutional hereditary monarchy. Its leadership consists
HC7 Labor force participation rate, total (% ages 15-64) 3 of a Prime Minister as head of government and a King as head of state.
HC8 Employment to population ratio,+15,total(%) 4 In 1999, a National Charter was instituted which allows for freedom of
HC9 Labor force, Female(% of total labor force) 8 assembly whereby political parties and organizations are allowed to
HC10 Total nobel prizes* 0 operate and organize activities. Formal political parties, however, are
HC11 Science and Engineering Enrolment Ratio (%) 14 considered illegal. The government owns all broadcast media;
HC12 Sum of Olampyc Medals* 1 therefore, while there is limited freedom of expression in broadcast
HC13 Brain Drain 4 media, there is a greater degree of freedom of the press in the print
HC14 Life Expectency 5
media. Internet access and emails are generally unrestricted, although
HC15 Health Expenditure % of GDP 10
there have been reports of government monitoring of email
HC16 Physisians per 1000 people 10
HC17 Nurses and midwievs 7
communication.

Note: Indicators fallowed by (*) are employed the value rather than rank 195
Indicators fallowed by (**) are measured on a 1-to- 7 (worst) scale
 Egypt
IE Pillar1: ICT Entities 11
ISEDI ICT-based socio-economic development Index 9
CP Pillar 2: Capital Portfolio 11

The ICT-based socio-economic development (ISED) Composite Index in detail

Code Individual indicators Rank Code Individual indicators Rank
Sub-pillar 1.1: ICT Infrastructure Entity 12 Sub-pillar 2.2: National Process & Structural Capital 11
IIE1 Fixed telephone subscribtions per 100 inhabitants 12 PSC1 Doing B business index 10
IIE2 households with computer 11 PSC2 Governance Indicators 11
IIE3 Mobile Cellular subscriptions per 100 inhabitants 10 PSC3 Economic Freedom Index 12
IIE4 Percentage of households with internet access 11 PSC4 Inflation Rate (%) 14
IIE5 secure internet servers/ million pop 11 PSC5 GINI index 14
IIE6 international Internet bandwidth 11 PSC7 Current Account Balance 15
IIE7 price basket for residential fixed line 13 PSC8 Economic growth 12
IIE8 price basket for mobile cellular 10 PSC9 Capital goods gross imports(US$ mil) 3
IIE9 cost of fixed broadband 9 PSC10 E-government index 11
IIE10 cost of mobile-broadband 9 Sub-pillar 2.3: National Renewal Capital 2
Sub-pillar 1.2: Provide/Use Entity 10 RC1 Researchers 2
PUE1 percentage of individuals using the internet 10 RC2 R&D expenditure 5
PUE2 mobile broadband subscriptions per 100 inhabitants 7 RC3 scientific & technical journal articles 2
PUE3 fixed broadband subscriptions per 100 inhabitants 11 RC4 Patents 2
PUE4 business-to-consumer internet use 7 RC5 Venture capital 9
PUE5 use of online public services by citizens 6 RC6 S&T parks and Incubators 9
PUE6 business-to-business internet use 11 RC7 High Techs exports 9
PUE7 facebook penetration rate 13 RC8 Technology absorption 9
PUE8 ICT Service Export (% of total service export) 12 RC9 Capital goods export 3
PUE9 ICT good import (% of total good import) 11 RC10 Entrepreneurial Attitudes 4
Sub-pillar 1.3: Rule/Procedure Entity 11 RC11 Entrepreneurial Activity 7
RPE1 laws relating to ICT 7 Sub-pillar 2.4: National Social Capital 12
RPE2 Freedom on the web 7 SC1 Perception of Happiness 14
RPE3 Existence of software copyright law 10 SC4 Crime 14
RPE4 Government prioritization of ICT 11 SC6 Political Rights** 6
RPE5 Existence of USO policy 14 SC7 Civil liberties** 5
RPE6 Independence of regulatory 8 SC8 Women Rights 5
Sub-pillar 1.4: Fund/Innovation Entity 4 Sub-pillar 2.5: National Natural Resource 11
FIE1 ICT Expenditure As % of GDP 4 NNR1 Total freshwater withdrawal 2
FIE2 Telecom Investment 3 NNR2 Crude Oil Production 10
FIE3 Level of e-participation development 2 NNR3 Crude Oil exports 11
FIE4 Availability of latest ICT technology 11 NNR4 Natural gas marketed production 5
FIE5 ICT PCT patents, applications/million pop. 6 NNR5 Natural gas exports 6
FIE6 ICT R&D labor force 3 NNR6 Exports of petroleum products 9
FIE7 Intencity of competition among ICT interprise 15 NNR7 Value of petroleum exports -
FIE8 Existance of new organization model 7 NNR8 Output of Petroleum Products 5
Sub-pillar 2.1: National Human Capital 3 Sub-pillar 2.6: National Financial Capital 11
HC2 Share of Young People to population (%) 13 NFC1 GDP at PPP per capita 11
HC3 Number of Tertiary Teachers 7
HC5 Adult Literacy Rate 14 Egypt’s political status declined from Partly Free to Not Free due to the
HC7 Labor force participation rate, total (% ages 15-64) 8 overthrow of elected president Mohamed Morsi in July 2013, and the
HC8 Employment to population ratio,+15,total(%) 9 increased role of the military in the political process. Islam is the state
HC9 Labor force, Female(% of total labor force) 5 religion, and most Egyptians are Sunni Muslims. Censorship, both
HC10 Total nobel prizes* 4 official and self-imposed, is widespread. Freedoms of assembly and
HC11 Science and Engineering Enrolment Ratio (%) 10 association are restricted, but protests have been a key forum for
HC12 Sum of Olampyc Medals* 8
political expression since the 2011 uprising. The 2013 draft constitution
HC13 Brain Drain 13
represents a modest improvement in women’s rights, as it clearly
HC14 Life Expectency 13
HC15 Health Expenditure % of GDP 8
affirms the equality of the sexes. The extent to which this results in
HC16 Physisians per 1000 people 3 practical improvements for women is not yet clear
HC17 Nurses and midwievs 8

Note: Indicators fallowed by (*) are employed the value rather than rank 196
Indicators fallowed by (**) are measured on a 1-to- 7 (worst) scale
 Iran
IE Pillar1: ICT Entities 9
ISEDI ICT-based socio-economic development Index 7
CP Pillar 2: Capital Portfolio 5

The ICT-based socio-economic development (ISED) Composite Index in detail

Code Individual indicators Rank Code Individual indicators Rank
Sub-pillar 1.1: ICT Infrastructure Entity 8 Sub-pillar 2.2: National Process & Structural Capital 14
IIE1 Fixed telephone subscribtions per 100 inhabitants 1 PSC1 Doing B business index 14
IIE2 households with computer 10 PSC2 Governance Indicators 13
IIE3 Mobile Cellular subscriptions per 100 inhabitants 13 PSC3 Economic Freedom Index 14
IIE4 Percentage of households with internet access 12 PSC4 Inflation Rate (%) 17
IIE5 secure internet servers/ million pop 13 PSC5 GINI index 11
IIE6 international Internet bandwidth 13 PSC7 Current Account Balance 4
IIE7 price basket for residential fixed line 1 PSC8 Economic growth 16
IIE8 price basket for mobile cellular 7 PSC9 Capital goods gross imports(US$ mil) 17
IIE9 cost of fixed broadband 12 PSC10 E-government index 9
IIE10 cost of mobile-broadband 14 Sub-pillar 2.3: National Renewal Capital 1
Sub-pillar 1.2: Provide/Use Entity 11 RC1 Researchers 1
PUE1 percentage of individuals using the internet 9 RC2 R&D expenditure 2
PUE2 mobile broadband subscriptions per 100 inhabitants 13 RC3 scientific & technical journal articles 1
PUE3 fixed broadband subscriptions per 100 inhabitants 8 RC4 Patents 3
PUE4 business-to-consumer internet use 11 RC5 Venture capital 17
PUE5 use of online public services by citizens 8 RC6 S&T parks and Incubators 1
PUE6 business-to-business internet use 13 RC7 High Techs exports 3
PUE7 facebook penetration rate 8 RC8 Technology absorption 14
PUE8 ICT Service Export (% of total service export) 11 RC9 Capital goods export 13
PUE9 ICT good import (% of total good import) 4 RC10 Entrepreneurial Attitudes 5
Sub-pillar 1.3: Rule/Procedure Entity 10 RC11 Entrepreneurial Activity 1
RPE1 laws relating to ICT 9 Sub-pillar 2.4: National Social Capital 13
RPE2 Freedom on the web 16 SC1 Perception of Happiness 12
RPE3 Existence of software copyright law 11 SC4 Crime 8
RPE4 Government prioritization of ICT 8 SC6 Political Rights** 6
RPE5 Existence of USO policy 6 SC7 Civil liberties** 6
RPE6 Independence of regulatory 9 SC8 Women Rights 14
Sub-pillar 1.4: Fund/Innovation Entity 11 Sub-pillar 2.5: National Natural Resource 5
FIE1 ICT Expenditure As % of GDP 9 NNR1 Total freshwater withdrawal 1
FIE2 Telecom Investment 2 NNR2 Crude Oil Production 2
FIE3 Level of e-participation development 9 NNR3 Crude Oil exports 4
FIE4 Availability of latest ICT technology 12 NNR4 Natural gas marketed production 2
FIE5 ICT PCT patents, applications/million pop. 15 NNR5 Natural gas exports 5
FIE6 ICT R&D labor force 16 NNR6 Exports of petroleum products 5
FIE7 Intencity of competition among ICT interprise 12 NNR7 Value of petroleum exports 5
FIE8 Existance of new organization model 10 NNR8 Output of Petroleum Products 2
Sub-pillar 2.1: National Human Capital 2 Sub-pillar 2.6: National Financial Capital 9
HC2 Share of Young People to population (%) 6 NFC1 GDP at PPP per capita 9
HC3 Number of Tertiary Teachers 1
HC5 Adult Literacy Rate 10 Iran is a Theocratic Republic consisting of several interconnected governing
HC7 Labor force participation rate, total (% ages 15-64) 13 bodies, with an Islamic Sharia Law constitution. The chief of state is the
HC8 Employment to population ratio,+15,total(%) 15 Supreme Leader, who is appointed for life by the Assembly of Experts. The
HC9 Labor force, Female(% of total labor force) 9 Supreme Leader has the final word in all major political, cultural, religious,
HC10 Total nobel prizes* 1 judiciary, foreign policy and economic decisions. Since 1987, Iran has seen
HC11 Science and Engineering Enrolment Ratio (%) 1 a steady rise of political activism through an increase in the number of
HC12 Sum of Olampyc Medals* 24 political parties and activist groups; however, the country still does not
HC13 Brain Drain 12 have a free press. The government represses both individual and organized
HC14 Life Expectency 11 freedom of speech by directly controlling television and radio broadcasting.
HC15 Health Expenditure % of GDP 4 It has issued gag orders on media coverage of specified events or topics and
HC16 Physisians per 1000 people 14 has successfully blocked broadcasts. The government censors websites by
HC17 Nurses and midwievs 14 filtering Internet content, based on the assumption that uncensored
content contains information of social immorality and defamatory
statements about Iran’s religious and/or political leadership.

Note: Indicators fallowed by (*) are employed the value rather than rank
197
Indicators fallowed by (**) are measured on a 1-to- 7 (worst) scale
Iraq
IE Pillar1: ICT Entities 16
ISEDI ICT-based socio-economic development Index 14
CP Pillar 2: Capital Portfolio 9

The ICT-based socio-economic development (ISED) Composite Index in detail

Code Individual indicators Rank Code Individual indicators Rank
Sub-pillar 1.1: ICT Infrastructure Entity 16 Sub-pillar 2.2: National Process & Structural Capital 15
IIE1 Fixed telephone subscribtions per 100 inhabitants 9 PSC1 Doing B business index 17
IIE2 households with computer 16 PSC2 Governance Indicators 15
IIE3 Mobile Cellular subscriptions per 100 inhabitants 17 PSC3 Economic Freedom Index 15
IIE4 Percentage of households with internet access 15 PSC4 Inflation Rate (%) 11
IIE5 secure internet servers/ million pop 14 PSC5 GINI index 16
IIE6 international Internet bandwidth 14 PSC7 Current Account Balance 17
IIE7 price basket for residential fixed line 7 PSC8 Economic growth 10
IIE8 price basket for mobile cellular 14 PSC9 Capital goods gross imports(US$ mil) 13
IIE9 cost of fixed broadband 16 PSC10 E-government index 15
IIE10 cost of mobile-broadband 15 Sub-pillar 2.3: National Renewal Capital 17
Sub-pillar 1.2: Provide/Use Entity 14 RC1 Researchers 6
PUE1 percentage of individuals using the internet 17 RC2 R&D expenditure 16
PUE2 mobile broadband subscriptions per 100 inhabitants 14 RC3 scientific & technical journal articles 14
PUE3 fixed broadband subscriptions per 100 inhabitants 13 RC4 Patents 15
PUE4 business-to-consumer internet use 12 RC5 Venture capital 11
PUE5 use of online public services by citizens 15 RC6 S&T parks and Incubators 16
PUE6 business-to-business internet use 14 RC7 High Techs exports 15
PUE7 facebook penetration rate 15 RC8 Technology absorption 15
PUE8 ICT Service Export (% of total service export) 8 RC9 Capital goods export 12
PUE9 ICT good import (% of total good import) 13 RC10 Entrepreneurial Attitudes 17
Sub-pillar 1.3: Rule/Procedure Entity 13 RC11 Entrepreneurial Activity 10
RPE1 laws relating to ICT 12 Sub-pillar 2.4: National Social Capital 16
RPE2 Freedom on the web 14 SC1 Perception of Happiness 17
RPE3 Existence of software copyright law 14 SC4 Crime 16
RPE4 Government prioritization of ICT 12 SC6 Political Rights** 7
RPE5 Existence of USO policy 11 SC7 Civil liberties** 7
RPE6 Independence of regulatory 13 SC8 Women Rights 15
Sub-pillar 1.4: Fund/Innovation Entity 14 Sub-pillar 2.5: National Natural Resource 6
FIE1 ICT Expenditure As % of GDP 16 NNR1 Total freshwater withdrawal 3
FIE2 Telecom Investment 16 NNR2 Crude Oil Production 4
FIE3 Level of e-participation development 12 NNR3 Crude Oil exports 3
FIE4 Availability of latest ICT technology 14 NNR4 Natural gas marketed production 13
FIE5 ICT PCT patents, applications/million pop. 13 NNR5 Natural gas exports -
FIE6 ICT R&D labor force 13 NNR6 Exports of petroleum products 3
FIE7 Intencity of competition among ICT interprise 14 NNR7 Value of petroleum exports 6
FIE8 Existance of new organization model 13 NNR8 Output of Petroleum Products 4
Sub-pillar 2.1: National Human Capital 15 Sub-pillar 2.6: National Financial Capital 10
HC2 Share of Young People to population (%) 17 NFC1 GDP at PPP per capita 10
HC3 Number of Tertiary Teachers 9 Although Iraq conducts meaningful elections, the operation of democracy in
HC5 Adult Literacy Rate 13 Iraq remains seriously impaired by sectarian and insurgent violence, widespread
HC7 Labor force participation rate, total (% ages 15-64) 16 corruption, and the state’s limited administrative capacity. Political violence in
HC8 Employment to population ratio,+15,total(%) 17 Iraq increased sharply during 2013. The vast majority of attacks were attributed
HC9 Labor force, Female(% of total labor force) 12 to the Islamic State in Iraq (formerly Al Qaeda in Iraq), which in July announced
HC10 Total nobel prizes* 0 a merger with jihadist groups in Syria and rebranded itself the Islamic State in
Iraq and Greater Syria (ISIS). Freedom of the media is limited in practice by the
HC11 Science and Engineering Enrolment Ratio (%) 9
threat of violence. As a result, self-censorship is widespread. Media freedom has
HC12 Sum of Olampyc Medals* 0
also been eroded by the state’s ability to justify silencing dissenting views in the
HC13 Brain Drain 3
media. Despite Iraq's turmoil, successive governments have been able to
HC14 Life Expectency 16 improve the telecom sector and the information society, as well as involve the
HC15 Health Expenditure % of GDP 11 private sector through the creation of the regulatory environment which is
HC16 Physisians per 1000 people 16 represented by the Communications and Media Commission, which resulted in
HC17 Nurses and midwievs 15 a boom in the mobile services.

Note: Indicators fallowed by (*) are employed the value rather than rank
Indicators fallowed by (**) are measured on a 1-to- 7 (worst) scale
198
 Jordan
IE Pillar1: ICT Entities 8
ISEDI ICT-based socio-economic development Index 10
CP Pillar 2: Capital Portfolio 14

The ICT-based socio-economic development (ISED) Composite Index in detail

Code Individual indicators Rank Code Individual indicators Rank
Sub-pillar 1.1: ICT Infrastructure Entity 9 Sub-pillar 2.2: National Process & Structural Capital 9
IIE1 Fixed telephone subscribtions per 100 inhabitants 16 PSC1 Doing B business index 9
IIE2 households with computer 8 PSC2 Governance Indicators 6
IIE3 Mobile Cellular subscriptions per 100 inhabitants 6 PSC3 Economic Freedom Index 4
IIE4 Percentage of households with internet access 7 PSC4 Inflation Rate (%) 10
IIE5 secure internet servers/ million pop 7 PSC5 GINI index 7
IIE6 international Internet bandwidth 10 PSC7 Current Account Balance 11
IIE7 price basket for residential fixed line 17 PSC8 Economic growth 11
IIE8 price basket for mobile cellular 8 PSC9 Capital goods gross imports(US$ mil) 10
IIE9 cost of fixed broadband 14 PSC10 E-government index 8
IIE10 cost of mobile-broadband 10 Sub-pillar 2.3: National Renewal Capital 5
Sub-pillar 1.2: Provide/Use Entity 9 RC1 Researchers 8
PUE1 percentage of individuals using the internet 11 RC2 R&D expenditure 6
PUE2 mobile broadband subscriptions per 100 inhabitants 9 RC3 scientific & technical journal articles 7
PUE3 fixed broadband subscriptions per 100 inhabitants 10 RC4 Patents 10
PUE4 business-to-consumer internet use 3 RC5 Venture capital 12
PUE5 use of online public services by citizens 11 RC6 S&T parks and Incubators 5
PUE6 business-to-business internet use 5 RC7 High Techs exports 5
PUE7 facebook penetration rate 3 RC8 Technology absorption 4
PUE8 ICT Service Export (% of total service export) 17 RC9 Capital goods export 2
PUE9 ICT good import (% of total good import) 7 RC10 Entrepreneurial Attitudes 13
Sub-pillar 1.3: Rule/Procedure Entity 6 RC11 Entrepreneurial Activity 13
RPE1 laws relating to ICT 6 Sub-pillar 2.4: National Social Capital 5
RPE2 Freedom on the web 5 SC1 Perception of Happiness 7
RPE3 Existence of software copyright law 6 SC4 Crime 3
RPE4 Government prioritization of ICT 6 SC6 Political Rights** 6
RPE5 Existence of USO policy 8 SC7 Civil liberties** 5
RPE6 Independence of regulatory 7 SC8 Women Rights 6
Sub-pillar 1.4: Fund/Innovation Entity 8 Sub-pillar 2.5: National Natural Resource 14
FIE1 ICT Expenditure As % of GDP 3 NNR1 Total freshwater withdrawal 14
FIE2 Telecom Investment 12 NNR2 Crude Oil Production -
FIE3 Level of e-participation development 11 NNR3 Crude Oil exports -
FIE4 Availability of latest ICT technology 5 NNR4 Natural gas marketed production -
FIE5 ICT PCT patents, applications/million pop. 7 NNR5 Natural gas exports -
FIE6 ICT R&D labor force 6 NNR6 Exports of petroleum products -
FIE7 Intencity of competition among ICT interprise 5 NNR7 Value of petroleum exports -
FIE8 Existance of new organization model 5 NNR8 Output of Petroleum Products -
Sub-pillar 2.1: National Human Capital 12 Sub-pillar 2.6: National Financial Capital 12
HC2 Share of Young People to population (%) 14 NFC1 GDP at PPP per capita 12
HC3 Number of Tertiary Teachers 10
HC5 Adult Literacy Rate 2 Jordan is a constitutional monarchy. Since gaining independence from
HC7 Labor force participation rate, total (% ages 15-64) 17 British rule in 1946, Jordan was primarily ruled by King Hussein (1953-
HC8 Employment to population ratio,+15,total(%) 16 99). In 1989, parliamentary elections were reinstated and since then a
HC9 Labor force, Female(% of total labor force) 10 gradual economic and political liberalization has developed. Jordan is
HC10 Total nobel prizes* 0 not classified as an oil producing country, and much of its ICT
HC11 Science and Engineering Enrolment Ratio (%) 17 infrastructure development was developed due to the Foreign Direct
HC12 Sum of Olampyc Medals* 0 Investment (FDI). It holds no exceptional economic weaknesses or
HC13 Brain Drain 9
strengths, but does have relative strengths in terms of a very low rate
HC14 Life Expectency 12
of corruption, strong property rights, and low tax rates on individual
HC15 Health Expenditure % of GDP 1
HC16 Physisians per 1000 people 4
and corporate income
HC17 Nurses and midwievs 6

Note: Indicators fallowed by (*) are employed the value rather than rank 199
Indicators fallowed by (**) are measured on a 1-to- 7 (worst) scale
 Kuwait
IE Pillar1: ICT Entities 6
ISEDI ICT-based socio-economic development Index 4
CP Pillar 2: Capital Portfolio 4

The ICT-based socio-economic development (ISED) Composite Index in detail

Code Individual indicators Rank Code Individual indicators Rank
Sub-pillar 1.1: ICT Infrastructure Entity 3 Sub-pillar 2.2: National Process & Structural Capital 4
IIE1 Fixed telephone subscribtions per 100 inhabitants 6 PSC1 Doing B business index 7
IIE2 households with computer 4 PSC2 Governance Indicators 4
IIE3 Mobile Cellular subscriptions per 100 inhabitants 4 PSC3 Economic Freedom Index 6
IIE4 Percentage of households with internet access 4 PSC4 Inflation Rate (%) 4
IIE5 secure internet servers/ million pop 2 PSC5 GINI index 4
IIE6 international Internet bandwidth 16 PSC7 Current Account Balance 1
IIE7 price basket for residential fixed line 5 PSC8 Economic growth 2
IIE8 price basket for mobile cellular 4 PSC9 Capital goods gross imports(US$ mil) 7
IIE9 cost of fixed broadband 1 PSC10 E-government index 5
IIE10 cost of mobile-broadband 2 Sub-pillar 2.3: National Renewal Capital 11
Sub-pillar 1.2: Provide/Use Entity 3 RC1 Researchers 12
PUE1 percentage of individuals using the internet 4 RC2 R&D expenditure 10
PUE2 mobile broadband subscriptions per 100 inhabitants 3 RC3 scientific & technical journal articles 10
PUE3 fixed broadband subscriptions per 100 inhabitants 5 RC4 Patents 8
PUE4 business-to-consumer internet use 4 RC5 Venture capital 7
PUE5 use of online public services by citizens 7 RC6 S&T parks and Incubators 17
PUE6 business-to-business internet use 6 RC7 High Techs exports 11
PUE7 facebook penetration rate 2 RC8 Technology absorption 6
PUE8 ICT Service Export (% of total service export) 3 RC9 Capital goods export 5
PUE9 ICT good import (% of total good import) 6 RC10 Entrepreneurial Attitudes 2
Sub-pillar 1.3: Rule/Procedure Entity 9 RC11 Entrepreneurial Activity 4
RPE1 laws relating to ICT 10 Sub-pillar 2.4: National Social Capital 7
RPE2 Freedom on the web 10 SC1 Perception of Happiness 4
RPE3 Existence of software copyright law 7 SC4 Crime 11
RPE4 Government prioritization of ICT 10 SC6 Political Rights** 5
RPE5 Existence of USO policy 9 SC7 Civil liberties** 5
RPE6 Independence of regulatory 6 SC8 Women Rights 7
Sub-pillar 1.4: Fund/Innovation Entity 12 Sub-pillar 2.5: National Natural Resource 4
FIE1 ICT Expenditure As % of GDP 12 NNR1 Total freshwater withdrawal 15
FIE2 Telecom Investment 8 NNR2 Crude Oil Production 3
FIE3 Level of e-participation development 10 NNR3 Crude Oil exports 5
FIE4 Availability of latest ICT technology 9 NNR4 Natural gas marketed production 9
FIE5 ICT PCT patents, applications/million pop. 10 NNR5 Natural gas exports -
FIE6 ICT R&D labor force 12 NNR6 Exports of petroleum products 2
FIE7 Intencity of competition among ICT interprise 10 NNR7 Value of petroleum exports 4
FIE8 Existance of new organization model 11 NNR8 Output of Petroleum Products 3
Sub-pillar 2.1: National Human Capital 5 Sub-pillar 2.6: National Financial Capital 2
HC2 Share of Young People to population (%) 5 NFC1 GDP at PPP per capita 2
HC3 Number of Tertiary Teachers 15
HC5 Adult Literacy Rate 4 Kuwait is a constitutional monarchy with an Amir as chief of state and
HC7 Labor force participation rate, total (% ages 15-64) 4 Prime Minister as head of government. Even though formal political
HC8 Employment to population ratio,+15,total(%) 3 parties are forbidden, political gatherings are not considered unlawful.
HC9 Labor force, Female(% of total labor force) 7 The government of Kuwait allows for some open debate on politics in
HC10 Total nobel prizes* 0 the press but because it restricts freedom of assembly, public
HC11 Science and Engineering Enrolment Ratio (%) 6 gatherings require approval. Major newspapers are privately owned,
HC12 Sum of Olampyc Medals* 2
foreign broadcasts are available, and Kuwait has allowed private
HC13 Brain Drain 7
television channels to be transmitted. There is a civil law system for
HC14 Life Expectency 10
HC15 Health Expenditure % of GDP 16 public matters, but Islamic Law dominates family and personal matters.
HC16 Physisians per 1000 people 8
HC17 Nurses and midwievs 3

Note: Indicators fallowed by (*) are employed the value rather than rank
Indicators fallowed by (**) are measured on a 1-to- 7 (worst) scale

200
Lebanon
IE Pillar1: ICT Entities 7
ISEDI ICT-based socio-economic development Index 8
CP Pillar 2: Capital Portfolio 12

The ICT-based socio-economic development (ISED) Composite Index in detail

Code Individual indicators Rank Code Individual indicators Rank
Sub-pillar 1.1: ICT Infrastructure Entity 7 Sub-pillar 2.2: National Process & Structural Capital 12
IIE1 Fixed telephone subscribtions per 100 inhabitants 5 PSC1 Doing B business index 11
IIE2 households with computer 5 PSC2 Governance Indicators 10
IIE3 Mobile Cellular subscriptions per 100 inhabitants 12 PSC3 Economic Freedom Index 8
IIE4 Percentage of households with internet access 6 PSC4 Inflation Rate (%) 9
IIE5 secure internet servers/ million pop 6 PSC5 GINI index 10
IIE6 international Internet bandwidth 4 PSC7 Current Account Balance 14
IIE7 price basket for residential fixed line 14 PSC8 Economic growth 14
IIE8 price basket for mobile cellular 9 PSC9 Capital goods gross imports(US$ mil) 16
IIE9 cost of fixed broadband 7 PSC10 E-government index 7
IIE10 cost of mobile-broadband 13 Sub-pillar 2.3: National Renewal Capital 8
Sub-pillar 1.2: Provide/Use Entity 6 RC1 Researchers 10
PUE1 percentage of individuals using the internet 5 RC2 R&D expenditure 8
PUE2 mobile broadband subscriptions per 100 inhabitants 8 RC3 scientific & technical journal articles 9
PUE3 fixed broadband subscriptions per 100 inhabitants 2 RC4 Patents 13
PUE4 business-to-consumer internet use 14 RC5 Venture capital 14
PUE5 use of online public services by citizens 9 RC6 S&T parks and Incubators 13
PUE6 business-to-business internet use 12 RC7 High Techs exports 6
PUE7 facebook penetration rate 5 RC8 Technology absorption 10
PUE8 ICT Service Export (% of total service export) 2 RC9 Capital goods export 1
PUE9 ICT good import (% of total good import) 15 RC10 Entrepreneurial Attitudes 12
Sub-pillar 1.3: Rule/Procedure Entity 14 RC11 Entrepreneurial Activity 8
RPE1 laws relating to ICT 16 Sub-pillar 2.4: National Social Capital 8
RPE2 Freedom on the web 3 SC1 Perception of Happiness 2
RPE3 Existence of software copyright law 13 SC4 Crime 2
RPE4 Government prioritization of ICT 17 SC6 Political Rights** 5
RPE5 Existence of USO policy 17 SC7 Civil liberties** 4
RPE6 Independence of regulatory 16 SC8 Women Rights 4
Sub-pillar 1.4: Fund/Innovation Entity 7 Sub-pillar 2.5: National Natural Resource 14
FIE1 ICT Expenditure As % of GDP 13 NNR1 Total freshwater withdrawal 12
FIE2 Telecom Investment 4 NNR2 Crude Oil Production -
FIE3 Level of e-participation development 7 NNR3 Crude Oil exports -
FIE4 Availability of latest ICT technology 10 NNR4 Natural gas marketed production -
FIE5 ICT PCT patents, applications/million pop. 3 NNR5 Natural gas exports -
FIE6 ICT R&D labor force 2 NNR6 Exports of petroleum products -
FIE7 Intencity of competition among ICT interprise 6 NNR7 Value of petroleum exports -
FIE8 Existance of new organization model 14 NNR8 Output of Petroleum Products -
Sub-pillar 2.1: National Human Capital 7 Sub-pillar 2.6: National Financial Capital 8
HC2 Share of Young People to population (%) 7 NFC1 GDP at PPP per capita 8
HC3 Number of Tertiary Teachers 4 Lebanon is a secular republic governed by a unicameral National Assembly or
HC5 Adult Literacy Rate 6 Majlis Alnuwab. The chief of state is the President and the head of government
HC7 Labor force participation rate, total (% ages 15-64) 10 is the Prime Minister, who are elected and serve four-year terms. The legal
HC8 Employment to population ratio,+15,total(%) 10 system in Lebanon is independent of the government and is a mixture of
HC9 Labor force, Female(% of total labor force) 6 Ottoman law, Canon law, Napoleonic code, and Civil law. There is no judicial
HC10 Total nobel prizes* 0 review of legislative acts. The government of Lebanon does not officially
acknowledge Islamic Law. Political parties are legal and there are many active
HC11 Science and Engineering Enrolment Ratio (%) 8
political parties, including socialist parties, democratic parties and religious
HC12 Sum of Olampyc Medals* 0
parties such as Hezbollah. There is a partly free press in Lebanon and freedom
HC13 Brain Drain 14
of association and assembly is allowed, with some restriction on freedom of
HC14 Life Expectency 3 expression concerning political criticism. Most of the media are owned by
HC15 Health Expenditure % of GDP 2 political elites; however, independently operated television and radio stations
HC16 Physisians per 1000 people 2 do exist. Several conflicts contributed to the destruction of Lebanon’s
HC17 Nurses and midwievs 10 infrastructure, including the 15-year civil war in Lebanon (1976-1991), the
involvement of Syria in Lebanon’s internal affairs and the Israeli and Lebanese
war (2006).
Note: Indicators fallowed by (*) are employed the value rather than rank
Indicators fallowed by (**) are measured on a 1-to- 7 (worst) scale
201
 Libya
IE Pillar1: ICT Entities 14
ISEDI ICT-based socio-economic development Index 15
CP Pillar 2: Capital Portfolio 10

The ICT-based socio-economic development (ISED) Composite Index in detail

Code Individual indicators Rank Code Individual indicators Rank
Sub-pillar 1.1: ICT Infrastructure Entity 15 Sub-pillar 2.2: National Process & Structural Capital 13
IIE1 Fixed telephone subscribtions per 100 inhabitants 13 PSC1 Doing B business index 16
IIE2 households with computer 15 PSC2 Governance Indicators 16
IIE3 Mobile Cellular subscriptions per 100 inhabitants 15 PSC3 Economic Freedom Index 16
IIE4 Percentage of households with internet access 13 PSC4 Inflation Rate (%) 12
IIE5 secure internet servers/ million pop 12 PSC5 GINI index 15
IIE6 international Internet bandwidth 17 PSC7 Current Account Balance 5
IIE7 price basket for residential fixed line 8 PSC8 Economic growth 13
IIE8 price basket for mobile cellular 13 PSC9 Capital goods gross imports(US$ mil) 12
IIE9 cost of fixed broadband 11 PSC10 E-government index 16
IIE10 cost of mobile-broadband 8 Sub-pillar 2.3: National Renewal Capital 15
Sub-pillar 1.2: Provide/Use Entity 16 RC1 Researchers 16
PUE1 percentage of individuals using the internet 16 RC2 R&D expenditure 13
PUE2 mobile broadband subscriptions per 100 inhabitants 15 RC3 scientific & technical journal articles 17
PUE3 fixed broadband subscriptions per 100 inhabitants 15 RC4 Patents 17
PUE4 business-to-consumer internet use 15 RC5 Venture capital 13
PUE5 use of online public services by citizens 16 RC6 S&T parks and Incubators 14
PUE6 business-to-business internet use 15 RC7 High Techs exports 16
PUE7 facebook penetration rate 16 RC8 Technology absorption 13
PUE8 ICT Service Export (% of total service export) 13 RC9 Capital goods export 10
PUE9 ICT good import (% of total good import) 9 RC10 Entrepreneurial Attitudes 16
Sub-pillar 1.3: Rule/Procedure Entity 12 RC11 Entrepreneurial Activity 16
RPE1 laws relating to ICT 13 Sub-pillar 2.4: National Social Capital 15
RPE2 Freedom on the web 4 SC1 Perception of Happiness 13
RPE3 Existence of software copyright law 12 SC4 Crime 15
RPE4 Government prioritization of ICT 13 SC6 Political Rights** 7
RPE5 Existence of USO policy 10 SC7 Civil liberties** 6
RPE6 Independence of regulatory 12 SC8 Women Rights 10
Sub-pillar 1.4: Fund/Innovation Entity 13 Sub-pillar 2.5: National Natural Resource 9
FIE1 ICT Expenditure As % of GDP 11 NNR1 Total freshwater withdrawal 8
FIE2 Telecom Investment 6 NNR2 Crude Oil Production 6
FIE3 Level of e-participation development 15 NNR3 Crude Oil exports 6
FIE4 Availability of latest ICT technology 13 NNR4 Natural gas marketed production 8
FIE5 ICT PCT patents, applications/million pop. 11 NNR5 Natural gas exports 8
FIE6 ICT R&D labor force 11 NNR6 Exports of petroleum products 10
FIE7 Intencity of competition among ICT interprise 13 NNR7 Value of petroleum exports 7
FIE8 Existance of new organization model 12 NNR8 Output of Petroleum Products 8
Sub-pillar 2.1: National Human Capital 11 Sub-pillar 2.6: National Financial Capital 7
HC2 Share of Young People to population (%) 12 NFC1 GDP at PPP per capita 7
HC3 Number of Tertiary Teachers 17
HC5 Adult Literacy Rate 7 Libya has a Unitary provisional parliamentary republic (in dispute). The
HC7 Labor force participation rate, total (% ages 15-64) 6 new Libyan government—composed of the legislative assembly, or
HC8 Employment to population ratio,+15,total(%) 7 General National Congress (GNC), and a cabinet headed by Prime
HC9 Labor force, Female(% of total labor force) 1 Minister- failed to establish security and the rule of law. About 97% of
HC10 Total nobel prizes* 0 the population in Libya are Muslims, most of whom belong to the Sunni
HC11 Science and Engineering Enrolment Ratio (%) 13 branch. Although the overthrow of longtime leader Mu’ammar al-
HC12 Sum of Olampyc Medals* 0 Qadhafi led to a dramatic opening in the political and media
HC13 Brain Drain 17 environments in 2011, conditions for press freedom in Libya
HC14 Life Expectency 7
deteriorated in 2013. The telecommunications infrastructure inherited
HC15 Health Expenditure % of GDP 9
from the previous regime has yet to be refurbished, and internet users
HC16 Physisians per 1000 people 7
HC17 Nurses and midwievs 2
struggle to secure a reliable, high-speed connection.

Note: Indicators fallowed by (*) are employed the value rather than rank
Indicators fallowed by (**) are measured on a 1-to- 7 (worst) scale 202
 Morocco
IE Pillar1: ICT Entities 12
ISEDI ICT-based socio-economic development Index 13
CP Pillar 2: Capital Portfolio 15

The ICT-based socio-economic development (ISED) Composite Index in detail

Code Individual indicators Rank Code Individual indicators Rank
Sub-pillar 1.1: ICT Infrastructure Entity 11 Sub-pillar 2.2: National Process & Structural Capital 7
IIE1 Fixed telephone subscribtions per 100 inhabitants 14 PSC1 Doing B business index 8
IIE2 households with computer 9 PSC2 Governance Indicators 9
IIE3 Mobile Cellular subscriptions per 100 inhabitants 9 PSC3 Economic Freedom Index 9
IIE4 Percentage of households with internet access 9 PSC4 Inflation Rate (%) 3
IIE5 secure internet servers/ million pop 10 PSC5 GINI index 3
IIE6 international Internet bandwidth 7 PSC7 Current Account Balance 16
IIE7 price basket for residential fixed line 10 PSC8 Economic growth 6
IIE8 price basket for mobile cellular 16 PSC9 Capital goods gross imports(US$ mil) 6
IIE9 cost of fixed broadband 13 PSC10 E-government index 12
IIE10 cost of mobile-broadband 17 Sub-pillar 2.3: National Renewal Capital 4
Sub-pillar 1.2: Provide/Use Entity 12 RC1 Researchers 3
PUE1 percentage of individuals using the internet 8 RC2 R&D expenditure 3
PUE2 mobile broadband subscriptions per 100 inhabitants 10 RC3 scientific & technical journal articles 6
PUE3 fixed broadband subscriptions per 100 inhabitants 14 RC4 Patents 5
PUE4 business-to-consumer internet use 8 RC5 Venture capital 10
PUE5 use of online public services by citizens 13 RC6 S&T parks and Incubators 4
PUE6 business-to-business internet use 8 RC7 High Techs exports 1
PUE7 facebook penetration rate 12 RC8 Technology absorption 11
PUE8 ICT Service Export (% of total service export) 5 RC9 Capital goods export 15
PUE9 ICT good import (% of total good import) 10 RC10 Entrepreneurial Attitudes 6
Sub-pillar 1.3: Rule/Procedure Entity 7 RC11 Entrepreneurial Activity 2
RPE1 laws relating to ICT 8 Sub-pillar 2.4: National Social Capital 3
RPE2 Freedom on the web 2 SC1 Perception of Happiness 10
RPE3 Existence of software copyright law 9 SC4 Crime 1
RPE4 Government prioritization of ICT 7 SC6 Political Rights* 5
RPE5 Existence of USO policy 7 SC7 Civil liberties* 4
RPE6 Independence of regulatory 11 SC8 Women Rights 3
Sub-pillar 1.4: Fund/Innovation Entity 10 Sub-pillar 2.5: National Natural Resource 14
FIE1 ICT Expenditure As % of GDP 1 NNR1 Total freshwater withdrawal 6
FIE2 Telecom Investment 7 NNR2 Crude Oil Production -
FIE3 Level of e-participation development 16 NNR3 Crude Oil exports -
FIE4 Availability of latest ICT technology 7 NNR4 Natural gas marketed production -
FIE5 ICT PCT patents, applications/million pop. 12 NNR5 Natural gas exports -
FIE6 ICT R&D labor force 17 NNR6 Exports of petroleum products -
FIE7 Intencity of competition among ICT interprise 8 NNR7 Value of petroleum exports -
FIE8 Existance of new organization model 8 NNR8 Output of Petroleum Products -
Sub-pillar 2.1: National Human Capital 9 Sub-pillar 2.6: National Financial Capital 15
HC2 Share of Young People to population (%) 11 NFC1 GDP at PPP per capita 15
HC3 Number of Tertiary Teachers 5
HC5 Adult Literacy Rate 16 Morocco is a constitutional Monarchy with an elected parliament.
HC7 Labor force participation rate, total (% ages 15-64) 9 Morocco's predominant religion is Islam. The state dominates the
HC8 Employment to population ratio,+15,total(%) 8 broadcast media, but people have access to foreign satellite television
HC9 Labor force, Female(% of total labor force) 2 channels. The authorities occasionally disrupt websites and internet
HC10 Total nobel prizes* 0 platforms, while bloggers and other internet users are sometimes
HC11 Science and Engineering Enrolment Ratio (%) 3 arrested for posting content that offends the monarchy.
HC12 Sum of Olampyc Medals* 11
HC13 Brain Drain 11
HC14 Life Expectency 15
HC15 Health Expenditure % of GDP 5
HC16 Physisians per 1000 people 15
HC17 Nurses and midwievs 16

Note: Indicators fallowed by (*) are employed the value rather than rank
Indicators fallowed by (**) are measured on a 1-to- 7 (worst) scale

203
 Oman
IE Pillar1: ICT Entities 5
ISEDI ICT-based socio-economic development Index 6
CP Pillar 2: Capital Portfolio 7

The ICT-based socio-economic development (ISED) Composite Index in detail

Code Individual indicators Rank Code Individual indicators Rank
Sub-pillar 1.1: ICT Infrastructure Entity 6 Sub-pillar 2.2: National Process & Structural Capital 5
IIE1 Fixed telephone subscribtions per 100 inhabitants 10 PSC1 Doing B business index 5
IIE2 households with computer 7 PSC2 Governance Indicators 3
IIE3 Mobile Cellular subscriptions per 100 inhabitants 2 PSC3 Economic Freedom Index 5
IIE4 Percentage of households with internet access 8 PSC4 Inflation Rate (%) 2
IIE5 secure internet servers/ million pop 5 PSC5 GINI index 8
IIE6 international Internet bandwidth 8 PSC7 Current Account Balance 9
IIE7 price basket for residential fixed line 9 PSC8 Economic growth 4
IIE8 price basket for mobile cellular 3 PSC9 Capital goods gross imports(US$ mil) 9
IIE9 cost of fixed broadband 4 PSC10 E-government index 6
IIE10 cost of mobile-broadband 4 Sub-pillar 2.3: National Renewal Capital 10
Sub-pillar 1.2: Provide/Use Entity 7 RC1 Researchers 9
PUE1 percentage of individuals using the internet 6 RC2 R&D expenditure 9
PUE2 mobile broadband subscriptions per 100 inhabitants 2 RC3 scientific & technical journal articles 11
PUE3 fixed broadband subscriptions per 100 inhabitants 12 RC4 Patents 16
PUE4 business-to-consumer internet use 9 RC5 Venture capital 2
PUE5 use of online public services by citizens 5 RC6 S&T parks and Incubators 10
PUE6 business-to-business internet use 7 RC7 High Techs exports 4
PUE7 facebook penetration rate 10 RC8 Technology absorption 8
PUE8 ICT Service Export (% of total service export) 4 RC9 Capital goods export 9
PUE9 ICT good import (% of total good import) 14 RC10 Entrepreneurial Attitudes 10
Sub-pillar 1.3: Rule/Procedure Entity 3 RC11 Entrepreneurial Activity 12
RPE1 laws relating to ICT 5 Sub-pillar 2.4: National Social Capital 4
RPE2 Freedom on the web 6 SC1 Perception of Happiness 2
RPE3 Existence of software copyright law 2 SC4 Crime 7
RPE4 Government prioritization of ICT 5 SC6 Political Rights** 6
RPE5 Existence of USO policy 1 SC7 Civil liberties** 5
RPE6 Independence of regulatory 5 SC8 Women Rights 13
Sub-pillar 1.4: Fund/Innovation Entity 6 Sub-pillar 2.5: National Natural Resource 10
FIE1 ICT Expenditure As % of GDP 10 NNR1 Total freshwater withdrawal 13
FIE2 Telecom Investment 5 NNR2 Crude Oil Production 8
FIE3 Level of e-participation development 6 NNR3 Crude Oil exports 8
FIE4 Availability of latest ICT technology 6 NNR4 Natural gas marketed production 7
FIE5 ICT PCT patents, applications/million pop. 8 NNR5 Natural gas exports 4
FIE6 ICT R&D labor force 4 NNR6 Exports of petroleum products -
FIE7 Intencity of competition among ICT interprise 7 NNR7 Value of petroleum exports -
FIE8 Existance of new organization model 6 NNR8 Output of Petroleum Products -
Sub-pillar 2.1: National Human Capital 10 Sub-pillar 2.6: National Financial Capital 5
HC2 Share of Young People to population (%) 4 NFC1 GDP at PPP per capita 5
HC3 Number of Tertiary Teachers 13
HC5 Adult Literacy Rate 9 Oman is an absolute monarchy. Formal political parties are not allowed
HC7 Labor force participation rate, total (% ages 15-64) 5 in Oman. The legal system is based on both English common law and
HC8 Employment to population ratio,+15,total(%) 5 Islamic law. Freedom of expression is allowed but there are laws
HC9 Labor force, Female(% of total labor force) 14 prohibiting criticism of the Sultan. Omanis have access to the Internet,
HC10 Total nobel prizes* 0 but it is censored by the government for political and pornographic
HC11 Science and Engineering Enrolment Ratio (%) 11 content.
HC12 Sum of Olampyc Medals* 0
HC13 Brain Drain 6
HC14 Life Expectency 4
HC15 Health Expenditure % of GDP 15
HC16 Physisians per 1000 people 5
HC17 Nurses and midwievs 4

Note: Indicators fallowed by (*) are employed the value rather than rank 204
Indicators fallowed by (**) are measured on a 1-to- 7 (worst) scale
 Qatar
IE Pillar1: ICT Entities 2
ISEDI ICT-based socio-economic development Index 1
CP Pillar 2: Capital Portfolio 1

The ICT-based socio-economic development (ISED) Composite Index in detail

Code Individual indicators Rank Code Individual indicators Rank
Sub-pillar 1.1: ICT Infrastructure Entity 1 Sub-pillar 2.2: National Process & Structural Capital 3
IIE1 Fixed telephone subscribtions per 100 inhabitants 7 PSC1 Doing B business index 3
IIE2 households with computer 2 PSC2 Governance Indicators 1
IIE3 Mobile Cellular subscriptions per 100 inhabitants 7 PSC3 Economic Freedom Index 3
IIE4 Percentage of households with internet access 1 PSC4 Inflation Rate (%) 5
IIE5 secure internet servers/ million pop 3 PSC5 GINI index 2
IIE6 international Internet bandwidth 3 PSC7 Current Account Balance 3
IIE7 price basket for residential fixed line 2 PSC8 Economic growth 1
IIE8 price basket for mobile cellular 1 PSC9 Capital goods gross imports(US$ mil) 5
IIE9 cost of fixed broadband 2 PSC10 E-government index 4
IIE10 cost of mobile-broadband 1 Sub-pillar 2.3: National Renewal Capital 6
Sub-pillar 1.2: Provide/Use Entity 2 RC1 Researchers 5
PUE1 percentage of individuals using the internet 3 RC2 R&D expenditure 7
PUE2 mobile broadband subscriptions per 100 inhabitants 1 RC3 scientific & technical journal articles 12
PUE3 fixed broadband subscriptions per 100 inhabitants 4 RC4 Patents 11
PUE4 business-to-consumer internet use 2 RC5 Venture capital 1
PUE5 use of online public services by citizens 4 RC6 S&T parks and Incubators 8
PUE6 business-to-business internet use 1 RC7 High Techs exports 17
PUE7 facebook penetration rate 4 RC8 Technology absorption 2
PUE8 ICT Service Export (% of total service export) 7 RC9 Capital goods export 4
PUE9 ICT good import (% of total good import) 5 RC10 Entrepreneurial Attitudes 1
Sub-pillar 1.3: Rule/Procedure Entity 1 RC11 Entrepreneurial Activity 5
RPE1 laws relating to ICT 1 Sub-pillar 2.4: National Social Capital 2
RPE2 Freedom on the web 8 SC1 Perception of Happiness 3
RPE3 Existence of software copyright law 1 SC4 Crime 6
RPE4 Government prioritization of ICT 1 SC6 Political Rights** 6
RPE5 Existence of USO policy 2 SC7 Civil liberties** 5
RPE6 Independence of regulatory 1 SC8 Women Rights 12
Sub-pillar 1.4: Fund/Innovation Entity 3 Sub-pillar 2.5: National Natural Resource 2
FIE1 ICT Expenditure As % of GDP 8 NNR1 Total freshwater withdrawal 17
FIE2 Telecom Investment 11 NNR2 Crude Oil Production 9
FIE3 Level of e-participation development 4 NNR3 Crude Oil exports 9
FIE4 Availability of latest ICT technology 3 NNR4 Natural gas marketed production 1
FIE5 ICT PCT patents, applications/million pop. 4 NNR5 Natural gas exports 1
FIE6 ICT R&D labor force 5 NNR6 Exports of petroleum products 4
FIE7 Intencity of competition among ICT interprise 2 NNR7 Value of petroleum exports 3
FIE8 Existance of new organization model 1 NNR8 Output of Petroleum Products 9
Sub-pillar 2.1: National Human Capital 1 Sub-pillar 2.6: National Financial Capital 1
HC2 Share of Young People to population (%) 1 NFC1 GDP at PPP per capita 1
HC3 Number of Tertiary Teachers 16
HC5 Adult Literacy Rate 1 Qatar is a hereditary monarchy ruled by an Amir, the Chief of State in
HC7 Labor force participation rate, total (% ages 15-64) 1 conjunction with a unicameral Advisory Council or Majlis al-Shura
HC8 Employment to population ratio,+15,total(%) 1 composed of a Prime Minister and 35 appointed members. Although there
HC9 Labor force, Female(% of total labor force) 17 is a system of legislative election, none has been held since 1970. The legal
HC10 Total nobel prizes* 0 system is controlled by the Amir under a recently established civil law.
HC11 Science and Engineering Enrolment Ratio (%) 2 Islamic law dominates family and personal matters. There are no political
HC12 Sum of Olampyc Medals* 3 parties but Qatar is home to various press agencies including the
HC13 Brain Drain 1 controversial Al-Jazeera News Network. Al-Jazeera hosts a web site that
HC14 Life Expectency 1 generates more than a million hits per day (Alterman, 2005). In 2005, Qatar
HC15 Health Expenditure % of GDP 17 adopted a new constitution, which allows for freedom of expression. The
HC16 Physisians per 1000 people 1 government has refrained from overt censorship; however, print and
HC17 Nurses and midwievs 1 broadcast media content is influenced by the state. Internet content is
censored for pornographic or politically sensitive material.

Note: Indicators fallowed by (*) are employed the value rather than rank
Indicators fallowed by (**) are measured on a 1-to- 7 (worst) scale 205
 Saudi Arabia
IE Pillar1: ICT Entities 3
ISEDI ICT-based socio-economic development Index 3
CP Pillar 2: Capital Portfolio 3

The ICT-based socio-economic development (ISED) Composite Index in detail

Code Individual indicators Rank Code Individual indicators Rank
Sub-pillar 1.1: ICT Infrastructure Entity 5 Sub-pillar 2.2: National Process & Structural Capital 2
IIE1 Fixed telephone subscribtions per 100 inhabitants 8 PSC1 Doing B business index 1
IIE2 households with computer 6 PSC2 Governance Indicators 8
IIE3 Mobile Cellular subscriptions per 100 inhabitants 1 PSC3 Economic Freedom Index 7
IIE4 Percentage of households with internet access 5 PSC4 Inflation Rate (%) 8
IIE5 secure internet servers/ million pop 8 PSC5 GINI index 6
IIE6 international Internet bandwidth 2 PSC7 Current Account Balance 2
IIE7 price basket for residential fixed line 11 PSC8 Economic growth 3
IIE8 price basket for mobile cellular 5 PSC9 Capital goods gross imports(US$ mil) 1
IIE9 cost of fixed broadband 8 PSC10 E-government index 3
IIE10 cost of mobile-broadband 6 Sub-pillar 2.3: National Renewal Capital 7
Sub-pillar 1.2: Provide/Use Entity 5 RC1 Researchers 17
PUE1 percentage of individuals using the internet 7 RC2 R&D expenditure 11
PUE2 mobile broadband subscriptions per 100 inhabitants 5 RC3 scientific & technical journal articles 3
PUE3 fixed broadband subscriptions per 100 inhabitants 6 RC4 Patents 1
PUE4 business-to-consumer internet use 5 RC5 Venture capital 3
PUE5 use of online public services by citizens 3 RC6 S&T parks and Incubators 3
PUE6 business-to-business internet use 3 RC7 High Techs exports 10
PUE7 facebook penetration rate 9 RC8 Technology absorption 3
PUE8 ICT Service Export (% of total service export) 14 RC9 Capital goods export 6
PUE9 ICT good import (% of total good import) 1 RC10 Entrepreneurial Attitudes 3
Sub-pillar 1.3: Rule/Procedure Entity 4 RC11 Entrepreneurial Activity 17
RPE1 laws relating to ICT 3 Sub-pillar 2.4: National Social Capital 11
RPE2 Freedom on the web 11 SC1 Perception of Happiness 5
RPE3 Existence of software copyright law 5 SC4 Crime 10
RPE4 Government prioritization of ICT 4 SC6 Political Rights** 7
RPE5 Existence of USO policy 4 SC7 Civil liberties** 7
RPE6 Independence of regulatory 3 SC8 Women Rights 17
Sub-pillar 1.4: Fund/Innovation Entity 2 Sub-pillar 2.5: National Natural Resource 1
FIE1 ICT Expenditure As % of GDP 6 NNR1 Total freshwater withdrawal 4
FIE2 Telecom Investment 1 NNR2 Crude Oil Production 1
FIE3 Level of e-participation development 5 NNR3 Crude Oil exports 1
FIE4 Availability of latest ICT technology 4 NNR4 Natural gas marketed production 3
FIE5 ICT PCT patents, applications/million pop. 2 NNR5 Natural gas exports 7
FIE6 ICT R&D labor force 7 NNR6 Exports of petroleum products 1
FIE7 Intencity of competition among ICT interprise 3 NNR7 Value of petroleum exports 1
FIE8 Existance of new organization model 3 NNR8 Output of Petroleum Products 1
Sub-pillar 2.1: National Human Capital 13 Sub-pillar 2.6: National Financial Capital 4
HC2 Share of Young People to population (%) 10 NFC1 GDP at PPP per capita 4
HC3 Number of Tertiary Teachers 3
HC5 Adult Literacy Rate 8 Saudi Arabia is a constitutional monarchy governed according to
HC7 Labor force participation rate, total (% ages 15-64) 7 Islamic Shari'a law. The chief of state is the King while the head of
HC8 Employment to population ratio,+15,total(%) 6 government is the Prime Minister. The government exercises tight
HC9 Labor force, Female(% of total labor force) 16 control over state media content and has taken stringent measures
HC10 Total nobel prizes* 0 against the media for publishing information considered morally or
HC11 Science and Engineering Enrolment Ratio (%) 4 politically offensive. It has been reported that camera cell phones are
HC12 Sum of Olampyc Medals* 3
banned (Shihri, 2004). Although there are no political parties or free
HC13 Brain Drain 5
press in Saudi Arabia, there is much political activity by Islamic groups.
HC14 Life Expectency 6
HC15 Health Expenditure % of GDP 13
HC16 Physisians per 1000 people 13
HC17 Nurses and midwievs 11

206

Note: Indicators fallowed by (*) are employed the value rather than rank
Indicators fallowed by (**) are measured on a 1-to- 7 (worst) scale
 Syria
IE Pillar1: ICT Entities 15
ISEDI ICT-based socio-economic development Index 16
CP Pillar 2: Capital Portfolio 17

The ICT-based socio-economic development (ISED) Composite Index in detail

Code Individual indicators Rank Code Individual indicators Rank
Sub-pillar 1.1: ICT Infrastructure Entity 13 Sub-pillar 2.2: National Process & Structural Capital 17
IIE1 Fixed telephone subscribtions per 100 inhabitants 4 PSC1 Doing B business index 13
IIE2 households with computer 14 PSC2 Governance Indicators 17
IIE3 Mobile Cellular subscriptions per 100 inhabitants 14 PSC3 Economic Freedom Index 17
IIE4 Percentage of households with internet access 10 PSC4 Inflation Rate (%) 16
IIE5 secure internet servers/ million pop 16 PSC5 GINI index 17
IIE6 international Internet bandwidth 12 PSC7 Current Account Balance 12
IIE7 price basket for residential fixed line 6 PSC8 Economic growth 17
IIE8 price basket for mobile cellular 15 PSC9 Capital goods gross imports(US$ mil) 11
IIE9 cost of fixed broadband 15 PSC10 E-government index 13
IIE10 cost of mobile-broadband 16 Sub-pillar 2.3: National Renewal Capital 13
Sub-pillar 1.2: Provide/Use Entity 17 RC1 Researchers 13
PUE1 percentage of individuals using the internet 13 RC2 R&D expenditure 15
PUE2 mobile broadband subscriptions per 100 inhabitants 12 RC3 scientific & technical journal articles 13
PUE3 fixed broadband subscriptions per 100 inhabitants 16 RC4 Patents 7
PUE4 business-to-consumer internet use 16 RC5 Venture capital 16
PUE5 use of online public services by citizens 17 RC6 S&T parks and Incubators 7
PUE6 business-to-business internet use 17 RC7 High Techs exports 7
PUE7 facebook penetration rate 11 RC8 Technology absorption 12
PUE8 ICT Service Export (% of total service export) 15 RC9 Capital goods export 17
PUE9 ICT good import (% of total good import) 16 RC10 Entrepreneurial Attitudes 9
Sub-pillar 1.3: Rule/Procedure Entity 15 RC11 Entrepreneurial Activity 9
RPE1 laws relating to ICT 17 Sub-pillar 2.4: National Social Capital 17
RPE2 Freedom on the web 15 SC1 Perception of Happiness 16
RPE3 Existence of software copyright law 15 SC4 Crime 17
RPE4 Government prioritization of ICT 15 SC6 Political Rights** 7
RPE5 Existence of USO policy 13 SC7 Civil liberties** 7
RPE6 Independence of regulatory 14 SC8 Women Rights 8
Sub-pillar 1.4: Fund/Innovation Entity 17 Sub-pillar 2.5: National Natural Resource 12
FIE1 ICT Expenditure As % of GDP 15 NNR1 Total freshwater withdrawal 5
FIE2 Telecom Investment 15 NNR2 Crude Oil Production 11
FIE3 Level of e-participation development 13 NNR3 Crude Oil exports 10
FIE4 Availability of latest ICT technology 17 NNR4 Natural gas marketed production 11
FIE5 ICT PCT patents, applications/million pop. 16 NNR5 Natural gas exports -
FIE6 ICT R&D labor force 15 NNR6 Exports of petroleum products -
FIE7 Intencity of competition among ICT interprise 16 NNR7 Value of petroleum exports -
FIE8 Existance of new organization model 16 NNR8 Output of Petroleum Products -
Sub-pillar 2.1: National Human Capital 16 Sub-pillar 2.6: National Financial Capital 16
HC2 Share of Young People to population (%) 15 NFC1 GDP at PPP per capita 16
HC3 Number of Tertiary Teachers 8
HC5 Adult Literacy Rate 11 Syria is a semi-presidential republic under an authoritarian military-dominated
HC7 Labor force participation rate, total (% ages 15-64) 15 regime. Their legal system is based on a combination of French and Ottoman
HC8 Employment to population ratio,+15,total(%) 13 civil law and religious law is used in the family court system. The president
HC9 Labor force, Female(% of total labor force) 15 appoints the vice presidents, prime minister, and deputy prime ministers. The
HC10 Total nobel prizes* 0 civil war that started in the wake of a peaceful 2011 uprising continued
HC11 Science and Engineering Enrolment Ratio (%) 7 unabated in 2013. By year’s end it had produced more than 2 million refugees,
5 million internally displaced persons, and nearly 130,000 fatalities. There are
HC12 Sum of Olampyc Medals* 1
two groups affiliated with Al-Qaeda in Syria: Jabhat al-Nusra (JN) and the Islamic
HC13 Brain Drain 15
State in Iraq and Greater Syria (ISIS) Freedom of expression is heavily restricted
HC14 Life Expectency 9
in Syria. Most domestic news outlets are either state controlled or aligned with
HC15 Health Expenditure % of GDP 12 rebel factions, and access to information is made difficult by both the opposition
HC16 Physisians per 1000 people 9 and regime forces. Freedom of assembly is harshly restricted.
HC17 Nurses and midwievs 13

207

Note: Indicators fallowed by (*) are employed the value rather than rank
Indicators fallowed by (**) are measured on a 1-to- 7 (worst) scale
 Tunisia
IE Pillar1: ICT Entities 10
ISEDI ICT-based socio-economic development Index 12
CP Pillar 2: Capital Portfolio 13

The ICT-based socio-economic development (ISED) Composite Index in detail

Code Individual indicators Rank Code Individual indicators Rank
Sub-pillar 1.1: ICT Infrastructure Entity 10 Sub-pillar 2.2: National Process & Structural Capital 8
IIE1 Fixed telephone subscribtions per 100 inhabitants 11 PSC1 Doing B business index 6
IIE2 households with computer 13 PSC2 Governance Indicators 7
IIE3 Mobile Cellular subscriptions per 100 inhabitants 8 PSC3 Economic Freedom Index 10
IIE4 Percentage of households with internet access 14 PSC4 Inflation Rate (%) 13
IIE5 secure internet servers/ million pop 9 PSC5 GINI index 9
IIE6 international Internet bandwidth 5 PSC7 Current Account Balance 10
IIE7 price basket for residential fixed line 16 PSC8 Economic growth 7
IIE8 price basket for mobile cellular 11 PSC9 Capital goods gross imports(US$ mil) 8
IIE9 cost of fixed broadband 6 PSC10 E-government index 10
IIE10 cost of mobile-broadband 7 Sub-pillar 2.3: National Renewal Capital 3
Sub-pillar 1.2: Provide/Use Entity 8 RC1 Researchers 4
PUE1 percentage of individuals using the internet 12 RC2 R&D expenditure 1
PUE2 mobile broadband subscriptions per 100 inhabitants 11 RC3 scientific & technical journal articles 4
PUE3 fixed broadband subscriptions per 100 inhabitants 7 RC4 Patents 9
PUE4 business-to-consumer internet use 6 RC5 Venture capital 6
PUE5 use of online public services by citizens 10 RC6 S&T parks and Incubators 6
PUE6 business-to-business internet use 10 RC7 High Techs exports 2
PUE7 facebook penetration rate 6 RC8 Technology absorption 5
PUE8 ICT Service Export (% of total service export) 9 RC9 Capital goods export 14
PUE9 ICT good import (% of total good import) 2 RC10 Entrepreneurial Attitudes 15
Sub-pillar 1.3: Rule/Procedure Entity 8 RC11 Entrepreneurial Activity 11
RPE1 laws relating to ICT 11 Sub-pillar 2.4: National Social Capital 9
RPE2 Freedom on the web 1 SC1 Perception of Happiness 11
RPE3 Existence of software copyright law 8 SC4 Crime 9
RPE4 Government prioritization of ICT 9 SC6 Political Rights** 6
RPE5 Existence of USO policy 12 SC7 Civil liberties** 5
RPE6 Independence of regulatory 10 SC8 Women Rights 1
Sub-pillar 1.4: Fund/Innovation Entity 9 Sub-pillar 2.5: National Natural Resource 14
FIE1 ICT Expenditure As % of GDP 5 NNR1 Total freshwater withdrawal 11
FIE2 Telecom Investment 10 NNR2 Crude Oil Production -
FIE3 Level of e-participation development 8 NNR3 Crude Oil exports -
FIE4 Availability of latest ICT technology 8 NNR4 Natural gas marketed production 12
FIE5 ICT PCT patents, applications/million pop. 5 NNR5 Natural gas exports -
FIE6 ICT R&D labor force 9 NNR6 Exports of petroleum products -
FIE7 Intencity of competition among ICT interprise 9 NNR7 Value of petroleum exports -
FIE8 Existance of new organization model 9 NNR8 Output of Petroleum Products -
Sub-pillar 2.1: National Human Capital 8 Sub-pillar 2.6: National Financial Capital 13
HC2 Share of Young People to population (%) 8 NFC1 GDP at PPP per capita 13
HC3 Number of Tertiary Teachers 6
HC5 Adult Literacy Rate 12 Tunisia is a constitutional republic, with a president serving as head of
HC7 Labor force participation rate, total (% ages 15-64) 11 state, prime minister as head of government, a unicameral parliament
HC8 Employment to population ratio,+15,total(%) 11 and a civil law court system. The majority of Tunisia's population are
HC9 Labor force, Female(% of total labor force) 3 Muslims. The Tunisian Revolution was an intensive campaign of civil
HC10 Total nobel prizes* 0 resistance that ultimately leading longtime President Ben Ali to step
HC11 Science and Engineering Enrolment Ratio (%) 5 down in January 2011, after 23 years in power. The Ben Ali regime used
HC12 Sum of Olampyc Medals* 0
an array of legal, penal, and economic measures to silence dissenting
HC13 Brain Drain 8
voices in the media, and the transitional government in 2011 almost
HC14 Life Expectency 8
HC15 Health Expenditure % of GDP 3
immediately proclaimed freedom of information and expression as a
HC16 Physisians per 1000 people 11 foundational principle for the country. However, the media continued
HC17 Nurses and midwievs 9 to face a number of obstacles during 2013.

208
Note: Indicators fallowed by (*) are employed the value rather than rank
Indicators fallowed by (**) are measured on a 1-to- 7 (worst) scale
 United Arab Emirates
IE Pillar1: ICT Entities 1
ISEDI ICT-based socio-economic development Index 2
CP Pillar 2: Capital Portfolio 2
The ICT-based socio-economic development (ISED) Composite Index in detail
Code Individual indicators Rank Code Individual indicators Rank
Sub-pillar 1.1: ICT Infrastructure Entity 2 Sub-pillar 2.2: National Process & Structural Capital 1
IIE1 Fixed telephone subscribtions per 100 inhabitants 2 PSC1 Doing B business index 2
IIE2 households with computer 3 PSC2 Governance Indicators 2
IIE3 Mobile Cellular subscriptions per 100 inhabitants 3 PSC3 Economic Freedom Index 2
IIE4 Percentage of households with internet access 3 PSC4 Inflation Rate (%) 1
IIE5 secure internet servers/ million pop 1 PSC5 GINI index 1
IIE6 international Internet bandwidth 1 PSC7 Current Account Balance 6
IIE7 price basket for residential fixed line 3 PSC8 Economic growth 5
IIE8 price basket for mobile cellular 2 PSC9 Capital goods gross imports(US$ mil) 2
IIE9 cost of fixed broadband 3 PSC10 E-government index 1
IIE10 cost of mobile-broadband 5 Sub-pillar 2.3: National Renewal Capital 9
Sub-pillar 1.2: Provide/Use Entity 1 RC1 Researchers 7
PUE1 percentage of individuals using the internet 2 RC2 R&D expenditure 4
PUE2 mobile broadband subscriptions per 100 inhabitants 4 RC3 scientific & technical journal articles 8
PUE3 fixed broadband subscriptions per 100 inhabitants 3 RC4 Patents 4
PUE4 business-to-consumer internet use 1 RC5 Venture capital 5
PUE5 use of online public services by citizens 2 RC6 S&T parks and Incubators 2
PUE6 business-to-business internet use 2 RC7 High Techs exports 8
PUE7 facebook penetration rate 1 RC8 Technology absorption 1
PUE8 ICT Service Export (% of total service export) 6 RC9 Capital goods export 8
PUE9 ICT good import (% of total good import) 3 RC10 Entrepreneurial Attitudes 11
Sub-pillar 1.3: Rule/Procedure Entity 2 RC11 Entrepreneurial Activity 14
RPE1 laws relating to ICT 2 Sub-pillar 2.4: National Social Capital 1
RPE2 Freedom on the web 9 SC1 Perception of Happiness 1
RPE3 Existence of software copyright law 3 SC4 Crime 5
RPE4 Government prioritization of ICT 2 SC6 Political Rights* 6
RPE5 Existence of USO policy 3 SC7 Civil liberties* 5
RPE6 Independence of regulatory 2 SC8 Women Rights 11
Sub-pillar 1.4: Fund/Innovation Entity 1 Sub-pillar 2.5: National Natural Resource 7
FIE1 ICT Expenditure As % of GDP 2 NNR1 Total freshwater withdrawal 9
FIE2 Telecom Investment 91 NNR2 Crude Oil Production 5
FIE3 Level of e-participation development 91 NNR3 Crude Oil exports 2
FIE4 Availability of latest ICT technology 2 NNR4 Natural gas marketed production 6
FIE5 ICT PCT patents, applications/million pop. 1 NNR5 Natural gas exports 3
FIE6 ICT R&D labor force 1 NNR6 Exports of petroleum products 8
FIE7 Intencity of competition among ICT interprise 1 NNR7 Value of petroleum exports 2
FIE8 Existance of new organization model 2 NNR8 Output of Petroleum Products 6
Sub-pillar 2.1: National Human Capital 4 Sub-pillar 2.6: National Financial Capital 3
HC2 Share of Young People to population (%) 2 NFC1 GDP at PPP per capita 3
HC3 Number of Tertiary Teachers 14
HC5 Adult Literacy Rate 5 The United Arab Emirates is a federal republic comprised of seven
HC7 Labor force participation rate, total (% ages 15-64) 2 emirates, with an elected President as chief of state and a Prime
HC8 Employment to population ratio,+15,total(%) 2 Minister and Vice President as head of government. The Supreme
HC9 Labor force, Female(% of total labor force) 13 Council is the highest federal authority of the rulers of the seven
HC10 Total nobel prizes* 0 emirates. The UAE has a federal court system that includes both secular
HC11 Science and Engineering Enrolment Ratio (%) 12 and Islamic law for civil, criminal, and high courts. There are no political
HC12 Sum of Olampyc Medals* 4
parties in the UAE. The constitution allows freedom of expression;
HC13 Brain Drain 2
however, there is a proviso law that prohibits pornography as well as
HC14 Life Expectency 2
HC15 Health Expenditure % of GDP 14
criticism and defamation of the state, leadership, and religious issues.
HC16 Physisians per 1000 people 6
HC17 Nurses and midwievs 5

Note: Indicators fallowed by (*) are employed the value rather than rank
Indicators fallowed by (**) are measured on a 1-to- 7 (worst) scale

209
 Yemen
IE Pillar1: ICT Entities 17
ISEDI ICT-based socio-economic development Index 17
CP Pillar 2: Capital Portfolio 16

The ICT-based socio-economic development (ISED) Composite Index in detail

Code Individual indicators Rank Code Individual indicators Rank
Sub-pillar 1.1: ICT Infrastructure Entity 17 Sub-pillar 2.2: National Process & Structural Capital 16
IIE1 Fixed telephone subscribtions per 100 inhabitants 17 PSC1 Doing B business index 12
IIE2 households with computer 17 PSC2 Governance Indicators 14
IIE3 Mobile Cellular subscriptions per 100 inhabitants 16 PSC3 Economic Freedom Index 11
IIE4 Percentage of households with internet access 17 PSC4 Inflation Rate (%) 15
IIE5 secure internet servers/ million pop 17 PSC5 GINI index 13
IIE6 international Internet bandwidth 15 PSC7 Current Account Balance 13
IIE7 price basket for residential fixed line 12 PSC8 Economic growth 15
IIE8 price basket for mobile cellular 17 PSC9 Capital goods gross imports(US$ mil) 14
IIE9 cost of fixed broadband 17 PSC10 E-government index 17
IIE10 cost of mobile-broadband 11 Sub-pillar 2.3: National Renewal Capital 16
Sub-pillar 1.2: Provide/Use Entity 15 RC1 Researchers 15
PUE1 percentage of individuals using the internet 14 RC2 R&D expenditure 17
PUE2 mobile broadband subscriptions per 100 inhabitants 16 RC3 scientific & technical journal articles 16
PUE3 fixed broadband subscriptions per 100 inhabitants 17 RC4 Patents 12
PUE4 business-to-consumer internet use 13 RC5 Venture capital 8
PUE5 use of online public services by citizens 14 RC6 S&T parks and Incubators 11
PUE6 business-to-business internet use 9 RC7 High Techs exports 13
PUE7 facebook penetration rate 17 RC8 Technology absorption 17
PUE8 ICT Service Export (% of total service export) 10 RC9 Capital goods export 16
PUE9 ICT good import (% of total good import) 17 RC10 Entrepreneurial Attitudes 14
Sub-pillar 1.3: Rule/Procedure Entity 17 RC11 Entrepreneurial Activity 6
RPE1 laws relating to ICT 15 Sub-pillar 2.4: National Social Capital 14
RPE2 Freedom on the web 17 SC1 Perception of Happiness 15
RPE3 Existence of software copyright law 16 SC4 Crime 13
RPE4 Government prioritization of ICT 16 SC6 Political Rights* 6
RPE5 Existence of USO policy 15 SC7 Civil liberties* 6
RPE6 Independence of regulatory 17 SC8 Women Rights 16
Sub-pillar 1.4: Fund/Innovation Entity 15 Sub-pillar 2.5: National Natural Resource 13
FIE1 ICT Expenditure As % of GDP 17 NNR1 Total freshwater withdrawal 10
FIE2 Telecom Investment 17 NNR2 Crude Oil Production 13
FIE3 Level of e-participation development 17 NNR3 Crude Oil exports -
FIE4 Availability of latest ICT technology 15 NNR4 Natural gas marketed production -
FIE5 ICT PCT patents, applications/million pop. 17 NNR5 Natural gas exports -
FIE6 ICT R&D labor force 14 NNR6 Exports of petroleum products -
FIE7 Intencity of competition among ICT interprise 11 NNR7 Value of petroleum exports -
FIE8 Existance of new organization model 15 NNR8 Output of Petroleum Products -
Sub-pillar 2.1: National Human Capital 17 Sub-pillar 2.6: National financial Capital 17
HC2 Share of Young People to population (%) 16 NFC1 GDP at PPP per capita 17
HC3 Number of Tertiary Teachers 11
HC5 Adult Literacy Rate 17 Yemen is a republic with a bicameral legislature. The 2011 Yemeni
HC7 Labor force participation rate, total (% ages 15-64) 12 revolution followed other Arab Spring mass protests in early 2011. As a
HC8 Employment to population ratio,+15,total(%) 12 result of the Yemeni revolution, the constitution of Yemen is expected
HC9 Labor force, Female(% of total labor force) 4 to be rewritten, and then new elections held in 2014. Yemen finalized
HC10 Total nobel prizes* 0 a freedom of information law in 2012, becoming just the second Arab
HC11 Science and Engineering Enrolment Ratio (%) 16 country, after Jordan, to enact such legislation. Religion in Yemen
HC12 Sum of Olampyc Medals* 0 consists primarily of two principal Islamic religious groups: 60%–65% of
HC13 Brain Drain 10
the Muslim population is Sunni and over 35%–40% is Shia. Freedom of
HC14 Life Expectency 17
information advocacy groups praised the law, although the quality of
HC15 Health Expenditure % of GDP 6
HC16 Physisians per 1000 people 17
implementation remains unclear.
HC2 Share of Young People to population (%) 16

Note: Indicators fallowed by (*) are employed the value rather than rank
210
Indicators fallowed by (**) are measured on a 1-to- 7 (worst) scale