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Pacific Perspective

JAMES R. WILLS JR.


East Asia is diverse
in its approach to
the digital marketplace


The Pacific Research Institute for Information Systems and Management (PRIISM) of the University of Hawaii released this week its ranking of East Asian economies with regard to their readiness to compete in the digital economy. Funded by the Asia Pacific Economic Cooperation (APEC) headquartered in Singapore, the research is the first of it kind to have employed the most comprehensive set of economic, social and technological indicators to date to measure "e-readiness."

As suggested by the ranking table, East Asia as a whole remains as diverse as it has always been -- this time in the digital market place.

As expected, Singapore, Hong Kong, Taiwan and Korea lead the region in their ability to capitalize on the information revolution to sustain their economic engine. The rest of East Asia, however, while recording significant progress in deploying national information and telecommunications infrastructures, appears to lag behind due to its lack of resources, principally drained by the vast size of its economically disadvantageous populations.

As a regional entity, East Asia trails significantly behind the United States and the world Group of Seven top economic powers.

E-readiness Ratings

Countries are ranked from 1,
for poor, to 5, for excellent.

Singapore 4.23

Hong Kong 3.78

Taiwan 3.62

Korea 3.53

Malaysia 3.08

Thailand 2.84

Philippines 2.74

China 2.44

Vietnam 2.34

Indonesia 2.21

United States 4.32

G7 Countries 4.06

East Asia 2.94

Source: PRIISM



The data leading to the ranking confirm the inevitable economic legitimacy that for a country, there is a definite and positive correlation between its wealth and its readiness to use information technology to leverage competitiveness. As such, it appears that the digital divide phenomenon is real, and it will further deepen the gap between the "haves" and the "have nots."

Also, our data tend to substantiate the increasing role of information technology in promoting national wealth. East Asia has remarkably improved its national and communications infrastructures. There are reasons to believe the information revolution has been a crucial driver for improving economic, political and social conditions. In fact, improved and less costly use of information technology has facilitated information flow within and across national boundaries, accelerated participation in global trade and increased press freedom. Promoters of information technology use should claim credit on this trend.

Perhaps the most intriguing cue that emerges from the set of 48 e-commerce readiness indicators is that non-technology factors such as education, economic stability and attitude toward risk, are as important as their technology factors for any economy to fully reap the benefits of digital progress.


Tung Bui is the Matson Navigation Co. Distinguished Professor of Global Business for the University of Hawaii College of Business Administration. Reach him at Tbui@cba.hawaii.edu.



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