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HomeMy WebLinkAboutBroadband EconomyThe Broadband Economy The rise of the Intelligent Community is a response to one of the greatest economic transformations in history. "Globalization" is the commonly accepted term for it. At the Intelligent Community Forum, we don't feel that the word does justice to the scop e of this transformation, and to the way it is reshaping the economic lives of people around the planet. Nor does it explain why this transformation is taking place. Instead, we call it the Broadband Economy – an economy in which for all intents and purp oses the hard - working people of Bangalore and Beijing live right next door to the hard - working people of Boston, Brussels and Buenos Aires. Origin and Impact The Broadband Economy is the product of the build - out of low - cost, high - speed communications and information technology on both the global and local levels. It began in the 1970s, when the carriers began linking the world's economic centers with fiber optic networks. These made possible collaboration and cooperation across time zones and cultures t hat opened markets, boosted productivity, created employment and improved living standards. A simple set of numbers captures the power of this transformation. During the hundred years from 1870 to 1970, the number of people living on more than US$1 per day, adjusted for inflation, grew by 157 million. At the same time, however, the number living on less than 1 dollar a day also grew by 45 million. That's not bad: a net gain of over 100 million people who moved out of the most abject poverty. But compa re that to the decade from 1990 to 2000. The number of people living on more than 1 dollar a day grew by 890 million , while the number living on less shrank by 139 million . What made the difference? The explosive growth of global networks that reduced c osts, boosted trade volumes and made us all more productive. Global and Local Impact Using the broadband infrastructure, companies began to look for opportunities to locate their facilities where they could gain the greatest advantage in terms of costs, skills and access to markets. The deployment of global broadband also made capital investment highly mobile. Trillions of US dollars move around the globe weekly in pursuit of a competitive return, and when trouble strikes a nation's economy, that mobil e capital can also flee at devastating speed. For communities, local economic success has come to depend on the global economy in ways never before imagined. But while global business may be mobile, communities are not. Communities everywhere have the same goal: to be a place where people can raise their children and give those young people enough economic opportunity to allow them to stay and raise children of their own. In the Broadband Economy, that task is more challenging than ever. The Broadban d Paradox Geographic location and natural resources were once the key determiners of a community's economic potential. In one person's lifetime, they changed seldom if at all. But in the Broadband Economy, it is increasingly the skills of the labor force , and the ability of business and government to adapt and innovate, that power job creation. And these are assets that must be continually replenished. Why has this change occurred? As economic centers are connected, it becomes possible to manage distan t facilities as though they were across the street. That means, in the Broadband Economy that every worker is exposed to wage and skill competition from every other worker in similar industries around the world. This has shifted demand for low - skilled la bor – the kind used in extracting resources from the Earth and basic manufacturing – to low - cost countries in the developing world. When you visit those booming countries, however, the business press is full of worry about lack of skills and innovation. Even nations in the early stages of industrial growth are feeling the same competitive pressures that have become acute in industrialized ones. Employment insecurity has risen and will continue to increase worldwide as businesses face global competition and go global in search of talent. The only jobs that are immune to the pressures of the Broadband Economy – local retailing and services from plumbing and heating to real estate – do not bring new money into a community; they merely move it around from p ocket to pocket within the community. A sustainable community must have inputs and outputs, which means external markets for the skills, services and products it provides. About Intelligent Communities Intelligent Communities are those which have – wh ether through crisis or foresight – come to understand the enormous challenges of the Broadband Economy, and have taken conscious steps to create an economy capable of prospering in it. They are not necessarily big cities or famous technology hubs. They are located in developing nations as well as industrialized ones, suburbs as well as cities, the hinterland as well as the coast. The good news is that, while the Broadband Economy presents an epic challenge to communities, it also hands them a powerful ne w competitive tool. Beginning in the 1990s, carriers deployed the local networks that most of us think of as "broadband" – DSL, cable, satellite and wireless – within neighborhoods, towns and cities. At the same time, the costs of computer software and h ardware – especially data storage – plummeted in obedience to Gordon Moore's famous law that the storage capacity of microchips doubles every 18 months. Through local broadband, individuals, small businesses, institutions and local governments have gained access to worldwide information resources and a broad range of tools to connect both globally and locally. Global Reach, Local Gain Today, broadband offers every community the opportunity to move from the periphery to the center in economic terms. It c reates new kinds of companies like Yahoo and Google, even whole new industries. It enables small companies to be global exporters – including the export of skills and knowledge which were never before transportable across time zones or national borders. It can ensure that schools in remote regions and inner cities have access to the latest information tools and reference sources. It can link rural healthcare providers to leading medical centers and local law enforcement to national information grids. I ndividuals and businesses can go global in search of low - cost, quality vendors, and Web - based tools can increase community involvement. By boosting the economic and social well - being of communities, broadband can reduce the incentives for their young peo ple to move away in search of opportunity and a better quality of life. Paradoxically, it can play a key role in giving communities a sustainable future in our ever - more - connected world. Adapting to the Challenge But broadband alone, technology alone, ar e not enough to create a prosperous and inclusive economy, which is the foundation for everything else that makes a community healthy and vital. Not in an environment in which broadband has put your community into direct competition with every similar com munity on earth, as well as opening up new opportunities for trade and collaboration. Intelligent Communities work long and hard to adapt to the challenges of the Broadband Economy. Some are recovering from economic crisis and have more plans and hopes t han tangible results to show. Others are well on the way toward ambitious goals and have a record of achievement to display. Some far - sighted communities never let crisis overtake them in the first place, but made the right choices and investments in tim e to benefit from the emergence of the Broadband Economy. Community Accelerator Accelerate Your Community Into the Broadband Economy The Community Accelerator program provides your community with a set of development tools to improve competitiveness, deepen social inclusion and enhance your ability to adapt in today's fast - moving Broadband Economy. Based on years of research by the Forum, the Community Accelerator: Educates your community on the factors that will determine its  economic future Helps e ngage and energize the key stakeholders in the  community development process Provides metric analysis that identifies where you stand today and offer specific  guidance on where to focus efforts in the future The Community Accelerator is not a consulting se rvice. It does not assess feasibility, provide community organizing or develop requests for proposal. Instead, it empowers your community to seize control of its destiny. It delivers education and analysis that you can use to plan and execute your futur e as an Intelligent Community, and a global context for action based on the actual practices of communities around the globe. Accelerator Services The Community Accelerator offers three different services to promote community development: Community Traini ng A focused day - long workshop for the governmental, institutional and business leaders of your community to prepare them for development of an Intelligent Community. The workshop mixes a half - day tutorial and case studies with interactive discussion and initial planning sessions. It is preceded by a social ice - breaker on the previous evening that brings the participants into a comfortable relationship before the focused work of the following day. Interviews with local press help leverage the value with the public. The goal of the Training is to educate and solidify the team that will carry forward the changes your community needs to make. Community Mentoring A customizable program of onsite meetings in your community led by an ICF executive, which mi x presentations by ICF on community development with in - depth discussion of the challenges and opportunities facing different sectors of your community. ICF prepares each Mentoring engagement to focus on your specific issues, provides presentations and tu torials, leads discussion sessions with leaders and constituents, participates in ice - breaking social events to build community commitment and provides interviews with local media. The goal of Mentoring is to introduce the Intelligent Community movement t o your community, then build momentum for change and consensus about the challenges to address. The Mentoring engagement may take the form of a single multi - day site visit or repeat visits over 6 to 24 months. Community Metrics A qualitative and quantit ative analysis of your community’s current performance compared with an average of ICF’s Top Seven Intelligent Communities of the past four years. Your staff completes a detailed questionnaire employing the same methods used to select ICF’s Intelligent Co mmunity of the Year. ICF researchers analyze the data and provide a written report containing a quantitative ranking of your community on 12 factors against a composite of Intelligent Communities around the world, and a qualitative interpretation of the r esults that lets you see where to focus your efforts in the future. Why Communities Choose an Accelerator Program  Local empowerment. The Community Accelerator provides facts, analysis and best practices, not a consultant’s “cookie cutter” formula for development. Creating a strategy, executing it and managing the challenges of change within your local culture remain your responsibility and within your control.  Global perspective. The Community Accelerator is based on domestic and international data. With your community in economic competition with companies and workers around the globe, the ICF analysis measures your performance against an international benchmark.  Proven methodology. ICF’s best practices and metric analysis are based on methodol ogy developed over the past decade in the evaluation of Intelligent Communities and selection of the Intelligent Community of the Year.  Convenience and fast turnaround. The Community Accelerator requires weeks or months - not years - to develop and put i nto action for your community. Pricing For pricing and additional information, contact ICF by email or by telephone at +1 646 - 291 - 6166 x102. Health in the Intelligent Community June 1 - 3, 2011 - New York City ♦ Building the Broadband Economy is an international summit attracting attendees from North America, Latin America, Europe, Asia and Africa. Produced in partnership with the Polytechni c Institute of New York University , it is a unique opportunity to learn from the world’s most dynamic communities how to use information and communications technology to build prosperous, inclusive and sustainable communities. Who Will You Meet at BBE 2011? The annual BBE summit attracts mayors, state and provincial leaders, city managers, the CIOs of cities, counties and states from around the world, as well as their ICT partners in the private sector. Recent summits have been honored by the presence of these public and private - sector leaders. What Will You Learn at BBE 2011? BBE2011 will feature keynote speeches, interactive discussions and community case studies through three intensive days. Social, networking and award events create an intimate atmosphere where relationships are forged and new ideas arise. Health in the Intelligent Community In 2011, our theme is " Health in the Intelligent Community ." With health services consuming an ever - larger percentage of public and private spending in m uch of the world, nations are challenged to improve the delivery and management of healthcare using information and communications technology. At the community level, ICT investment in healthcare not only can reduce costs, it can play an important role in enhancing the health of residents and create fast - growth business clusters and strong employment opportunities for both low and high - skilled citizens. You will hear from Smart21 and Top Seven Intelligent Communities that are innovating in both the public and private sectors in this critial area, and how they have translated ideas into achievement. Click here to download a copy of our white paper, " Healt h in the Intelligent Community ."