2011 Networked Readiness Index by World Economic Forum: How Networked is Asia?

By on April 13, 2011

World Economic Forum (WEF) on Tuesday released the latest edition of The Global Information Technology Report 2010 – 2011: Transformation 2.0 report. The annual report ranks a total of 138 countries worldwide, using its Networked Readiness Index (NRI).

Some observations:

  • A total of 19 Asian countries in the 2010-2011 NRI list, out of 138 countries worldwide.
  • 5 Asian countries are in the top 20 of this year’s NRI list – Singapore (2nd), Taiwan (5), South Korea (10), Hong Kong (12), and Japan (19).
  • Singapore is the most networked nation in Asia. The Southeast Asian city-state ranked second in the world, behind Sweden.
  • Singapore is also the only Asian country ranked higher than the United States (no. 5 worldwide).
  • Malaysia ranked first among Upper-middle Income group of countries. Malaysia is also the only upper-middle income country in the top 30 overall. The country’s score increased from 4.65 in 2010 to 4.74 in 2011.
  • According to the report, Malaysia “places 10th for ICT readiness of the society as a whole. Among the main stakeholders, the government is showing the way. ICT plays a critical role in its Wawasan 2020 (Vision 2020) plan for Malaysia to become high-income economy by 2020″ (p. 24; WEF, 2011).
  • Indonesia leaped 14 places to 53 this year, with improvements across the three NRI components.
2010-2011 Networked Readiness Index for Asian Countries
Rank in Asia Country / Economy Score 2011 Score 2010 Global Rank 2011
1 Singapore 5.59 5.64 2
  United States 5.33 5.46 5
2 Taiwan 5.30 5.20 6
3 South Korea 5.19 5.14 10
4 Hong Kong SAR 5.19 5.33 12
5 Japan 4.95 4.89 19
6 Malaysia 4.74 4.65 28
7 China 4.35 4.31 36
8 India 4.03 4.09 48
9 Indonesia 3.92 3.72 53
10 Vietnam 3.90 3.87 55
11 Brunei Darussalam 3.89 3.77 57
12 Thailand 3.89 3.97 59
13 Sri Lanka 3.81 3.65 66
14 Mongolia 3.57 3.36 83
15 Philippines 3.57 3.51 86
16 Pakistan 3.54 3.44 88
17 Cambodia 3.23 3.03 111
18 Bangladesh 3.19 3.01 115
19 Nepal 2.97 2.95 131

According to the WEF report, the underlying principles of the Networked Readiness Index are:

  • An ICT-conducive environment is a key precondition of network readiness.
  • Networked readiness requires a society-wide effort.
  • ICT readiness leads to ICT usage and increased impact.

The Index comprises to three subindexes, namely:

  1. Environment subindex:
    • Market environment
    • Political & regulatory environment
    • Infrastructure environment
  2. Readiness subindex:
    • Individual readiness
    • Business readiness
    • Government readiness
  3. Usage subindex:
    • Individual usage
    • Business usage
    • Government usage

The final NRI score is a simple average of the three composing subindex scores, while each subindex’s score is a simple average of those of the composing pillars. In doing this, we assume that all Index components give a similar contribution to national networked readiness. (p. 6, WEF, 2011)

The Global Information Technology Report 2010 – 2011: Transformation 2.0 (Full report)






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