Connecting South East Asia: a Blueprint for ASEAN Connectivity

The Association of Southeast Asian Nations (ASEAN) was established on August 8, 1967, when foreign ministers of five countries, consisting of Indonesia, Malaysia, the Philippines, Singapore, and Thailand, met in Bangkok and signed the ASEAN Declaration. The regional grouping has made the most progress in economic integration, aiming to create an ASEAN Community by 2015. Recently, the Member Countries of the ASEAN have accepted the concept of ASEAN Connectivity, which emphasized on the three pillars regional cooperation of security, socio-cultural, and economic integration. In particular, ASEAN Connectivity is expected: (1) to enhance trade, investment, tourism, and development, (2) to narrow development gaps, and (3) to facilitate people-to-people contacts. As a preparation to adapt with a new system, Indonesia is geared to improve its domestic connectivity as a prerequisite of regional connectivity. In Indonesia's view, regional connectivity should help empower and develop the local economies, as an effort to narrow the development gaps within ASEAN. To fulfill these goals, Indonesia needs to strengthen its physical connectivity through better transportation infrastructure. However, to support trade facilitation, good transportation infrastructure alone is not sufficient. It needs to be enhanced with ICT infrastructure, which is crucial in supporting trade facilitation through its ability to facilitate information exchange and to reduce the cost of doing business. This paper aims to explore how Indonesia's domestic connectivity coops with the concept of ASEAN connectivity. Some data and various existing policies in their effort to accomplish ASEAN connectivity will be explored. With the new legal framework in ICT and transportation, the performance of the ICT and transportation system in Indonesia is expected to ameliorate, hence supporting the development of other sectors, and this will ultimately lead to the realization of ASEAN Connectivity

Do Information and Communication Technologies Empower Female Workers? Firm-Level Evidence from Viet Nam

This paper studies the effects of firms’ investments in information and communication technologies (ICT) on their demand for female and skilled workers. Using the gradual liberalization of the broadband Internet sector across provinces from 2006 to 2009 as a source of exogenous variation to identify the causal impacts of ICT, we find evidence from the country’s comprehensive enterprise survey data that firms’ adoption of broadband Internet and other related ICT increased their relative demand for female and college-educated workers. The effect of ICT on firms’ female employment is particularly strong among the college-educated workers, and is stronger in industries that are more dependent on highly manual and physical tasks. These results suggest that ICT can lower gender inequality in the labor market by shifting the labor demand from highly manual, routine tasks in which men have a comparative advantage toward more nonroutine, interactive tasks in which women hold a comparative advantage. However, the effect of ICT is weaker in industries relying more on complex and interactive tasks, suggesting that gender differences in education may have limited female labor supply for the most innovative industries that require highly technical skills to complement ICT

The Determinants of the Global Digital Divide: A Cross-Country Analysis of Computer and Internet Penetration

To identify the determinants of cross-country disparities in personal computer and Internet penetration, we examine a panel of 161 countries over the 1999-2001 period. Our candidate variables include economic variables (income per capita, years of schooling, illiteracy, trade openness), demographic variables (youth and aged dependency ratios, urbanization rate), infrastructure indicators (telephone density, electricity consumption), telecommunications pricing measures, and regulatory quality. With the exception of trade openness and the telecom pricing measures, these variables enter in as statistically significant in most specifications for computer use. A similar pattern holds true for Internet use, except that telephone density and aged dependency matter less. The global digital divide is mainly but by no means entirely accounted for by income differentials. For computers, telephone density and regulatory quality are of second and third importance, while for the Internet, this ordering is reversed. The region-specific explanations for large disparities in computer and Internet penetration are generally very similar. Our results suggest that public investment in human capital, telecommunications infrastructure, and the regulatory infrastructure can mitigate the gap in PC and Internet use.