Policies and Institutions for a Knowledge Economy
ICT-enabled development must be founded on policies and institutions that are appropriate for knowledge-based, innovation-driven, and networked economy. Development experience shows that the design and functioning of regulatory institutions strongly influence economic performance. Moreover, as experience has repeatedly shown, the long-term efficacy of the regulatory system in telecommunications as in all other areas depends on the avoidance of politicization and industry capture of the regulators, the acquisition and maintenance of high-quality management, and the continuous evolution of the institutions so as to accommodate fast-changing conditions and technological and market innovations (Kay, 2002). We touch only briefly on the regulatory institutions for the telecommunications and other information infrastructures in Chapter 9. We devote this chapter to crosscutting e-development policies and institutions.