Analysis: National ICT Strengths and Weaknesses

Assessment in Brief:

To give a brief assessment, I have used six headings that were used by McConnel International in a report titled "The National E-Readiness of the Hashemite Kingdom of Jordan," these headings are in the table below with a brief description of the readiness of each category: [24]

Connectivity e-Leadership Information Security Human Capital e-Business Climate
low-medium medium-high low-medium medium low

Detailed Analysis:

        Several categories were devised in order to fully assess the national ICT strengths and weakness in Jordan, the categories can be seen on the menu to the right.  Each Category includes statistical data in regards to the category as well as a narrative. On this page, a complete assessment will be made on each category identifying the strong and weak areas.

        The ICT Policy in Jordan is outlined in the REACH initiative, it is a complete and dynamic document that outlines the current situation in the Kingdom as well as outlining the goals for the Kingdom in regards to Information Technology and Communications.  REACH created a marriage between the private and public sector that was rarely seen in Jordan.  It is important for the government to stay in touch with its private sector if it wants to improve the country's industries and economy.  The document is constantly being updated to accommodate changes in the country as well as to keep track of the goals that were achieved and the ones not achieved.  The goals achieved can be seen in the ICT Policy section of this website.  This document has created the vision for a Jordan that is better equipped to handle growth in ICT industry.  It is important for a country to create a policy and to continually monitor progress and changes.  The only true test for the validity of this document will be how well the ICT industry performs in the future and how well the policy is maintained.

        The telecommunications infrastructure is still inaccessible to all parts of Kingdom.  However, the government communications infrastructure is advanced and is connected to the FLAG network.  Telephone and other communications services are still not available everywhere.  There needs to be better coverage of the Kingdom in order to advance the ICT sector and projects such as E-Governments.

        Internet diffusion is still low due to the fact that local phone calls are expensive (7 cents per minute) and the fact the PC's are expensive.  The cost of local phone calls must be decreased in order to improve the internet diffusion rate.  The cost of local calls is likely to go down at the end of 2004 when Jordan Telecom (which enjoys preferred status and has a monopoly over land lines) is no longer a monopoly and other companies start providing local service.  The average cost of a PC is almost equivalent to 80% of an average Jordanian's annual salary.  The computer assembly market is taking off and will greatly reduce the cost of PC's which will also increase Internet diffusion.

        E-Commerce is almost nonexistent to Jordan.  There are no statistics on the industry and it is still at its very early stages of development.  There are some websites that offer merchandize than can be bought online with the use of credit cards.  However, the cost of shipping would be a disadvantage since the average Jordanian can drive to any store in his/her city in under twenty minutes.  There is potential for an international market for e-commerce websites offering antiques only found in Jordan and other merchandize unique to Jordan.

        Domestic production of software and hardware yields below average returns to the country.  The software industry is effected by a lack of computer expertise as well as demand.  Most companies would rather buy Commercial Off the Shelf products (COTS) than to design their own systems.  COTS are usually less expensive and require less time to implement.  Some businesses are even willing to change business practices in order to accommodate a COTS product.  A good way to mitigate this problem is to start developing modules and ready made products available rather than customizable products since COTS products are in demand.  The hardware industry is booming and there is a significant market for locally assembled PC's due to their lower price.  Investors should invest in establishing computer assembly factories to provide people with a cheaper PC.  There is also high demand for PC's by the government and potential investors should seek the government as a potential customer.

        The workforce is average in skill.  The literate and English-speaking population accounts for a large number of the workforce.  However, the Gulf countries offer better salaries and jobs and are attracting many Jordanian professionals.  Other professionals are also seeking jobs in Europe and the US.  Jordanian companies need to pay attention to the local workforce and offer competitive salaries to give potential immigrants an incentive to stay in the country.  The current unemployment rate is high and the population is young so this poses a problem for the future of Jordan.

        Financing in Jordan is largely dependent on foreign direct investments and joint ventures set up by foreign organizations and corporations.  Due to the current situation in the region, there is a lack of foreign direct investment coming into the country because people are afraid to invest in the country.  The Israeli-Palestinian conflict as well as a potential war on Iraq greatly hinder any future investments in the country.  There is a great deal of interest in the country because of its potential, but its location gives the misperception of it being vulnerable and unstable.

        The E-Government program is underway and is on the right track.  Many government organizations are computerized and some are on the web.  Companies can find registration procedures online and can partially register online (discussed in more detail in the E-Government section).  However, the major underlying problem to E-Government is the digital and economic divide in Jordan.  In order to fully implement E-Government, a majority of citizens have be online as well as government organizations.  The project is still largely in its planning phase and not yet a reality.

        Lastly, the legal framework.  Jordan has passed many laws that will encourage foreign direct investment as well as domestic investment in ICT.  Laws that protect the copyright of software, promote investment, and regulate electronic transactions and signatures have been passed.  Enforcing the laws will be a challenge in a country that has a large piracy rate.  Furthermore, the majority of the laws passed related to ICT like the electronic transactions and signatures laws are still temporary laws and will need to be approved by parliament later on this year after the elections.  The new laws passed show a great deal of commitment to the REACH document because the document suggested the legal reform in the first place.  The country is certainly headed in the right direction when it comes to its legal framework.

        Jordan's largest asset is it's leadership.  King Abdullah II is greatly committed to improving the ICT sector in Jordan.  His majesty was the one to call on the first Dead Sea summit which started initiatives such as REACH and a realistic collaboration between the public and private sector.  Commitment from the top is important  in order to keep the country going in the right direction and this is certainly the case in Jordan.  The truest form of ICT assesment in Jordan will be the test of time and how well the plans are implemented.