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OECD sees future of developing countries in open telecoms

Developing countries must free up telecommunications and encourage foreign investment if they want to catch up in the internet race, according to the Organisation for Economic Cooperation and Development (OECD).

By Sally Watson

Published: 29 November 2000 11:30 GMT

The OECD is planning to drum its message home at a special conference in Dubai next year. In an exclusive interview, Risaburo Nezu, director of science, technology and industry, told silicon.com that business and government delegates from over 30 developing countries will be advised that handouts from rich nations will not solve the problem.

Nezu said: "Our message will be that there is a need for an open, predictable and transparent telecommunications market and also a need to have open, free foreign investment regimes. If those two things are ensured, I think the business follows."

The OECD aims to provide governments with a setting in which to discuss, develop economic and social policy. Over the last few years it has pushed hard to free up the telecoms sector in its members states, which include Australia, Japan, the US and most European countries.

But despite the progress, Nezu admitted deregulation hasn't gone far enough. "There's still a long way to go - there's a lot more for governments, telecoms companies and internet service providers to do in order to diversify and improve their services."

According to Nezu, the role of the government is to create an environment for businesses to use information technology with freedom. This involves open trade systems, clear and less burdensome tax regimes and competitive, open telecoms, he said.

And despite the OECD's less-than-global membership, Nezu is convinced it can still play a significant role in ecommerce development. "Ninety nine per cent of ecommerce takes place in OECD countries," he claimed. "We've never felt we are constrained by having only 30 member countries."

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