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Global digital divide is narrowing, says study
But it's still a long way from Denmark to Azerbaijan...

By Reuters

Published: Thursday 27 April 2006

The digital divide is narrowing as citizens in emerging markets get online via computers and mobile phones, with some regions now on a par with developed nations, a ranking of web-savvy countries showed on Wednesday.

The annual "e-readiness" study, published by IBM and the intelligence unit of The Economist, noted: "Encouraging is the apparent narrowing of the digital divide."

The study found: "This is particularly evident in basic connectivity: emerging markets are providing the vast majority of the world's new phone and internet connections."

Within China and India, regions such as Bangalore and Shanghai have almost the same level of internet and mobile-phone connections as developed nations, said Peter Korsten, European director at IBM's Institute for Business Value.

He said: "This is the first time we see a level playing-field between developed and developing nations, in terms of connectivity. It's up to governments to take advantage with education and other initiatives."

The survey looks beyond basic connections and also studies how the internet is being used to improve productivity and reduce costs, including online access to public services.

The study said: "Virtually all countries have improved their scores over the past year. The improvement is greater in the lower tiers of the rankings than at the top. As a result, the distance separating the best from the rest has declined."

The difference between the world's web-savviest nation, Denmark, and the least e-ready country, according to the study - Azerbaijan - remains nevertheless huge, with respective scores of nine and 2.9 out of a possible 10.

India and China, including their less-developed provinces, scored 4.25 and 4.02, ranking 53 and 57, respectively.

Switzerland entered the top three, replacing Sweden, which dropped to fourth place, while the US held on to its number two spot.

Denmark remained number one in taking advantage of the internet, both in connecting citizens securely over broadband and wireless networks, as well as in using its near-ubiquitous hook-ups for internet banking and government services such as tax returns.

The study said: "E-procurement (for public services) is saving Danish businesses €50m and taxpayers as much as €150m per year. The rest of Europe is expected to follow Denmark's lead."

Six nations in the top 10 are European, taking advantage of cheaply available broadband offerings and good education. The US, Australia, Canada and Hong Kong complete the top 10.

In central and eastern Europe, the new European Union member states formed an upper tier, while other nations lag far behind. Mobile-phone penetration is ubiquitous but fixed-line internet connections are not widely available, while the business and legal environment is weak.

Overall, the region remains well behind the EU, North America and developed markets in the Asia-Pacific region, according to the study.