Asia Moves Up E-Readiness Rankings

by Jason Gorringe, Tax-News.com, London

03 May 2007

While the development and implementation of ICT networks continues to improve globally, Asian countries have made the most significant advances in 'e-readiness' according to the Economist Intelligence Unit's e-readiness rankings.

The EIU said in a report last week that while e-readiness continues to improve around the world in 2007, achieving it is becoming more complex. To reflect this, the EIU has "raised the bar" of e-readiness by modifying its ranking methodology.

This change in methodology, along with underlying improvements in individual countries, has led to changes in the league table. Several countries, particularly in Asia, have seen their positions improve, while others have experienced (mostly slight) declines. At the same time, the fundamental tenets of e-readiness remain unchanged, and the leaders in 2006 are still leaders today — nine of last year’s top ten countries remain in that bracket.

Denmark and the US retain their number one and two spots in the rankings (with Sweden also tied for 2nd), but Hong Kong (4th), Singapore (6th), South Korea (16th), Taiwan (17th) and Japan (18th) have experienced a boost in 2007 in both scores and ranks. This is due in no small part to their governments' vision and commitment in pushing digital development, and to continued progress in adoption of broadband and other advanced infrastructure, the EIU said.

Several top-tier countries, meanwhile, experienced a shift in their overall e-readiness performance as a result of the methodology changes. This is mainly due to a sharpened focus on the policy environment and e-government, as well as education and innovation. Among the countries affected were Switzerland (5th), Canada (13th), Germany (19th) and Ireland (21st). Their e-readiness has not declined, but the model refinements have uncovered areas where they and other countries need to improve to maintain progress.

"Technology leadership in the world is becoming a fast-moving target," observed Robin Bew, Editorial Director of the Economist Intelligence Unit. "Those at the top of today's league table cannot be complacent—changing technologies, and attitudes to technology usage, mean that hard-won advantages can be quickly eroded by nimble-footed rivals."

Since 2000, the Economist Intelligence Unit has published an annual e-readiness ranking of the world’s largest economies, using a model developed together with the IBM Institute for Business Value. A country’s “e-readiness” is a measure of its e-business environment, a collection of factors that indicate how amenable a market is to Internet-based opportunities. Increasingly, it is also about how individuals and businesses consume digital goods and services.

"The role of governments in laying the structural and policy groundwork for an Internet-ready economy is essential today as business and society adapt to ongoing globalisation," observed George Pohle, Global Leader, IBM Institute for Business Value. "This groundwork, as reflected in this year's rankings, provides a critical path for individuals and businesses to apply these new digital channels in innovative applications — spurring further economic development.”

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