Goal 8: Develop a Global Partnership for Development

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1 113 The load of debt service has been getting lighter since 1990 in most economies. Cellular phone subscriptions have grown rapidly in most economies and are much more common than fixed line telephones throughout Asia (in ten economies in the region there are more cellular phones than people). The digital divide as measured by internet users per 100 population is still wide. In six economies there are 58 or more users per 100 persons, but in 27 economies there are 17 or fewer internet users per 100 persons. Introduction Goal 8 has six targets but the first three are directed at developed donor countries and are not considered here. The other three targets that are relevant to developing economies (and developed countries in some instances) are: 8.D: Deal comprehensively with the debt problems of developing countries through national and international measures in order to make debt sustainable in the long term. 8.E: In cooperation with pharmaceutical companies, provide access to affordable essential drugs in developing countries. 8.F: In cooperation with the private sector, make available the benefits of new technologies, especially information and communications. None of these targets are quantifiable but there are comments below on progress with targets 8D and 8F. Key Trends Most economies have much a lower debt service load compared with 1990 levels. Table 8.1 shows debt service as a percentage of exports of goods and services and factor incomes excluding workers remittances. Together, these comprise a nationally generated fund from which foreign debt can be serviced without incurring additional foreign liabilities. Debt service includes both interest and principal repayments due on loans from nonresidents. Figure 8.1 covers the years 1990, 2000, and If countries are achieving sustainable levels of debt in the long term as required by the MDG goal, the ideal situation would be for the bars to become shorter for each of the years after This is in fact the case for 13 of the 15 economies with debt service ratios over 10% in The two exceptions were and where debt service ratios were a little higher in 2008 than in 2000, although still well below their 1990 levels. Figure 8.1 Debt Service as a Percentage of Exports of Goods and Services, 1990, 2000, and 2008 or Nearest Years Vanuatu Source: Table

2 114 In the past years, various initiatives have been undertaken by international agencies to help developing economies reduce their public debt. These include the Heavily Indebted Poor Countries program of the IMF and World Bank, and debt-relief initiatives of the Club de Paris. Figure 8.1 reflects the debt reduction that has come about through internationally negotiated programs as well as through the rapid growth of Asian exports during this period. Higher exports automatically reduce the ratios shown in Figure 8.1 because they enter into the denominator. At the same time higher export earnings provide the means to repay foreign debt and reduce the burden of debt service. Cellular phones versus fixed phones? No contest. Figure 8.2 shows that throughout the region cellular phones are much more widely used than fixed line phones. The only exceptions are the Cook Islands where fixed lines and cellular phones are about equally common; and Kiribati, Marshall Islands, and where fixed lines are much more common than cellular phones. Hong Kong, China is the clear leader in cellular phone subscriptions per 100 population, followed by ; Singapore; ; and Taipei,China. All five have more cellular phone subscriptions than the three developed economies shown at the bottom of Figure 8.2. Among the five most populous economies, is on top with 69 cellular phone subscriptions for every hundred persons, followed by, 57; People s Republic of China (PRC), 55;, 44; and, 31. In 10 economies in the region there are more cellular phone subscriptions than people: Australia; Brunei Darussalam; Hong Kong, China; ; ; New Zealand; Singapore; Taipei,China; ; and. Figure 8.2 Telephone Lines and Cellular Phone Subscriptions, Hong Kong, China Singapore Taipei,China Brunei Darussalam Korea, Rep. of Tajikistan Palau Uzbekistan Bhutan Afghanistan Cook Islands Micronesia, Fed. States of Turkmenistan Tuvalu Timor-Leste Marshall Islands Kiribati 2009 or Latest Year (per 100 population) Australia New Zealand Cellular Phone Subscriptions Telephone Lines Source: Table 8.2.

3 115 Internet users the great digital divide. The number of internet users per 100 population in 47 economies are shown in Figure 8.3. These numbers are more reliable when taken from household surveys, but when survey data are not available, they are based on the numbers of internet subscriptions that are then adjusted to include estimates of persons who are not subscribers but who access the internet at their place of work, in cybercafés, or by other means. In the Asia and Pacific region, the digital divide is a three-way split as indicated in Figure 8.3. Six relatively rich economies have between 58 and 82 internet users per 100 population. This is on par with the three developed member countries shown at the bottom of the figure. Eleven economies in the middle group have between 26 and 43, while the majority (27 economies) have 17 or less. Among the five most populous economies, the PRC had 29 internet users per 100 persons in 2009, up from 22 in Next was with 11, with 9, and with 5. had only four users per 1,000 persons. Korea, Rep. of Brunei Darussalam Singapore Taipei,China Hong Kong, China Tuvalu Cook Islands Palau Uzbekistan Micronesia, Fed. States of Tajikistan Bhutan Vanuatu Marshall Islands Afghanistan Kiribati Turkmenistan Timor-Leste Figure 8.3 Internet Users, 2009 (per 100 population) Source: Table 8.2. New Zealand Australia Data Issues and Comparability Data on debt service are compiled by the World Bank according to international standards based on loan-by-loan information, or external debt reported to the World Bank s debt exporting system by country authorities, which are broadly comparable. Data on cellular phone subscriptions and internet access are obtained by the International Telecommunication Union through annual questionnaires sent to government telecommunication authorities and operating companies. These data are supplemented by annual reports and statistical yearbooks of telecommunication ministries, regulators, operators, and industry associations. Common definitions are used and the data are considered to be reasonably accurate and comparable. Data on internet users are less reliable when these are based on number of subscribers.

4 116 Goal 8 Targets and Indicators Table 8.1 Target 8.D: Deal comprehensively with the debt problems of developing countries through national and international measures in order to make debt sustainable in the long term 8.12 Debt Service as a Percentage of Exports of Goods and Services Developing Member Countries Central and West Asia Afghanistan 3.8 (2005) 1.1 (1993) (1995) (1997) (1995) (1993) Tajikistan 9.0 (2002) 6.6 Turkmenistan 9.6 (1996) 20.3 (1997) Uzbekistan East Asia China, People s Rep. of Hong Kong, China Korea, Rep. of 17.1 (1992) (2006) Taipei,China South Asia Bhutan Southeast Asia Brunei Darussalam a 3.8 (1992) (2007) (2006) Singapore (1996) The Pacific Cook Islands Kiribati Marshall Islands Micronesia, Fed. States of Nauru Palau (2005) (1999) 7.7 (2007) (2006) Timor-Leste (2001) 8.8 (2007) Tuvalu Vanuatu (2007) Developed Member Countries Australia New Zealand a Brunei Darussalam is a regional member of ADB, but it is not classified as a developing member country. Source: Millennium Indicators Database Online (UNSD 2010).

5 117 Table 8.2 Target 8.F: In cooperation with the private sector, make available the benefits of new technologies, especially information and communications Goal 8 Targets and Indicators 8.14 Telephone Lines 8.15 Cellular Subscriptions 8.16 Internet Users (per 100 population) (per 100 population) (per 100 population) Developing Member Countries Central and West Asia Afghanistan (2002) (2003) (1996) (1998) (1997) Tajikistan (1999) Turkmenistan (1999) 1.57 Uzbekistan (1997) East Asia China, People s Rep. of (1996) Hong Kong, China Korea, Rep. of Taipei,China (1995) (2000) South Asia (1999) 0.38 Bhutan (2003) (1999) (1996) (1997) Southeast Asia Brunei Darussalam a (1997) (1998) (2003) Singapore (1998) The Pacific Cook Islands Kiribati (1998) 2.04 Marshall Islands (1996) 3.55 Micronesia, Fed. States of (2002) (1996) Nauru (2001)... Palau (2002) (2002) (2002) (2004) (1997) (1997) Timor-Leste 0.22 (2003) (2003) (2005) Tuvalu (2004) (2000) Vanuatu (1996) 7.09 Developed Member Countries Australia New Zealand a Brunei Darussalam is a regional member of ADB, but it is not classified as a developing member country. Sources: Millennium Indicators Database Online (UNSD 2010); International Telecommunication Union World Telecommunication/ICT Indicators Database (International Telecommunication Union 2010).

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