EDUCATIONAL SPENDING, IT LITERACY AND ECONOMIC RECOVERY

By.Abdullah Al Suleimany*
Recession has a negative impact on spending. With recession, consumers often expect a fall in future prices and extend their purchase decisions. So there are shop closures, enterprises find themselves with less businesses and job losses.
One way to offset this possible negative impact would be to invest heavily in IT education. As is well known, economic activities are driven by information and communications technology (ICT). Hence it makes sense if efforts can be made to promote IT and IT related training programs and increase IT literacy in Oman. Because they would boost economic activities, generate more jobs and income. In addition this would help in having a solid foundation for information and knowledge economy, this being the power house for tomorrow’s economic expansion. The source of economic development, opulence and sustainability of growth in the knowledge economy comes at the strength of knowledge and intellectual property holding.
This involves spending at different layers of the economy, primarily by harnessing extremely IT friendly policies by the State and a strong ICT infrastructure. Today we can have mobile broadband internet access as fast as 7.2 to 8 mbps speed, thanks to Nawras and Omanmobile. A Broadband revolution is happening in Oman at an increasingly rapid pace, which is particularly important in the context of economic slowdown.
Dot.com revolution of the 1990s resulted in the sprouting of cyber/virtual or dot.com companies around the world. Many of them could not generate profit as expected and went redundant. As dot.com bubbles finally bursts imposing a recession at the end years of 20th century, which could be reversed when emphasis was laid on infrastructure development with a focus on housing and building sector, leading to a magnificent economic boom and then today’s recession.
Aspects like low IT literacy, low level of internet penetration and the cost of hardware and software were not taken into consideration by dot.com companies when they embarked on their cyber dreams in the second part of 1990s. Today, the scenario has changed and internet penetration has increased substantially. However, IT literacy has only increased marginally.
Recession is a time for learning and skill enhancement both for individuals and enterprises alike. As said earlier, economic activities are increasingly driven by ICT, more so broadband internet. ‘The rollout of mobile broadband networks would create thousands of jobs, encourage new businesses across the value chain, improve productivity and boost consumer spending’ says a report presented at the Mobile Leadership Summit, organized by GSM Association in Barcelona recently. Broadband penetration would make education cheaper with web live sessions, online teaching assistance and virtual learning. Thus, educational programs and courses in diverse streams like technology and management can be offered via the virtual medium.
Benefits of broadband internet expansion for the nation could be very crucial at this juncture because it generates employment; reduces cost; promotes efficiency; link Oman to the rest of the world; knowledge based businesses would take root and enhanced educational opportunities. Thus broadband band internet is a good means for promoting economic activities, enhancing GDP and job creation. Further, it is, so much connected to education.
The challenge here is to make more people start using internet or in other words, raise the number of broadband internet customers. This is not a challenge so simple to overcome. It is a challenge that needs to be dealt at different layers that call for comprehensive approach. First comes the challenge of awareness. Our people across the spectrum must be aware of the benefits of internet. Then they should gain some amount of IT literacy. There has to be the availability of computers, the challenge of investment in hardware & software comes here. And then we need more technical hands to service the issues of software and hardware. Also, along with it number business opportunities would come along like content development, both in Arabic and English, E-learning centers etc.
There are more than 130, 000 Small and Medium Enterprises (SMEs) in the Sultanate, plus a 3.2 million strong population. Just for instance, if we target to make our population cent percent IT literate and strengthen SMEs with a web portal, internet etc. During this time of recession that would make the economy vibrant. Money, manpower, technology, hardware all involved in this effort would be massive. That would boost non-oil sector of the Sultanate. But will our people just acquire IT literacy just for the sake of it? Do SMEs go and invest in a website, PCs and software? State intervention along with private collaboration might help realize this dream.
But for sure IT skill development and enhanced emphasis on IT and IT based education would generate growth, income & job opportunities and place the Sultanate prominently as a knowledge power house MENA region and beyond.

*Abdullah Al Suleimany, B.Sc, (Hons) University of London; MBA, University of Strathclyde. He is the CEO, East Horizon LLC.


March 31, 2009, Oman Daily Observer. P.26
SPOTLIGHT( guest column)