North America and Western Europe's positions as digital leaders are being challenged by the Central European markets according to research carried out by computer giant IBM and the British-based Economist Intelligence Unit. Star performers? Hungary, the Czech Republic, Estonia, and Slovenia.
Reuters has reported that Central European nations have closed in fastest among the emerging economies on the digital elites of North America and Western Europe. Reuters drew their information from the annual study published by US computer company IBM and the Intelligence Unit of British magazine The Economist. This research seeks to rank web-savvy nations on a scorecard based on several factors which determine how ?e-ready? countries are. They include the number of broadband Internet connections and the level of online access to public services.
The Central European region, which includes Hungary, the Czech Republic, Estonia, and Slovenia, scored 6.1 out of a possible 10 in the 2007 rankings, up from 5.8 in the previous year.
Central Europe has improved most, which is related to countries joining the EU, said Peter Korsten, European director at IBM?s Institute for Business Value. In fact, the gap with North America and Western Europe remains large, with these regions scoring 8.6 and 8 respectively, but the difference is narrowing. ?It's encouraging to see how countries which invest deeply in their digital capabilities are being rewarded,? Peter Korsten continued.
Mixed messages from Asia
?Some Asian countries, the report states, also experienced significant boosts in the 2007 rankings, thanks in no small part to the vision and commitment demonstrated by their governments in pushing digital development.
And yet there is still a divide within the Asian Region. South Korea, Japan and Taiwan all moved up solidly in the top 20. Singapore climbed seven notches to 6th position and Hong Kong moved to 4th from 10th.
For all that, Asia overall still fails to make the grade, because it is slowed down by countries like Pakistan, which at 63rd place scored 3.8, and, almost incredibly considering its economic power, 56th-placed China, with 4.4 points out of 10.
India, the other new giant economy, which hosts software hubs like Bangalore, still scores only 4.7 for the entire country due to its poorer regions and despite new and important legislation which provides precise definitions of hacking and punishments for offenders.
Broadband is cheap - in the rich countries
Connectivity, which measures how many citizens access the Web and at what price, carries the biggest weight in the IBM/EIU ranking. This year's study stopped counting dial-in Internet lines because they are regarded as too slow. Only always-on broadband Internet connections are included.
Citizens in North America, Europe, and advanced Asian countries have much better opportunities to access the Web at affordable cost, at less than 1% of average monthly salary. In developing countries consumers typically pay between 3% and 10% of household income. Deregulation of telecom markets in developed countries has in addition helped to lower the costs of broadband access.
Behind leader Denmark, the United States ranked No 2 and Sweden No 3. Iran took over the closing spot from Azerbaijan with a 3.1 score.* The compilers of the study regularly take into consideration factors such as a good legal framework for digital behaviour, identity creation and transactions, this factor bringing a 10% weighting to the ranking. Government policy and vision account in turn for 15% of the weighting, which is why Singapore and Hong Kong have advanced strongly.
