A business unit of Cisco Systems, according to a recent report in the Financial Times, has revealed an ambitious goal: networking entire cities. City-wide Internet Protocol (IP) networks would not only give Web access to residents but also enable the Web-based management of government services and infrastructure (traffic lights, ports, etc.).
Don’t be surprised if, in 2008, we find Gulf cities competing to be the first to attain “fully networked” status. Besides the PR splash, are there real benefits to such a move?
Depending on how the network is utilized, the answer could be yes. Becoming fully networked could nicely complement the economic development and e-government strategies of several the Gulf states, and suits the highly urbanized nature of Qatar, Kuwait, Bahrain and the UAE. As technology evolves, Qatar or Kuwait could – theoretically – even aspire to becoming the world’s first full country to be entirely networked.
One pillar of Gulf countries’ economic diversification strategies is to rapidly become “knowledge economies” and to promote knowledge-based sectors. Bahrain has long been the “Wall Street of the Gulf” (focused on financial services) and in recent years both Qatar and Dubai have invested heavily in attracting world-class educational institutions. Qatar’s Education City has drawn the likes of Cornell and Georgetown, with rigorous degree-granting institutions on the ground. Investing in internet technology is consistent with this push towards knowledge sectors – especially as today’s (home-user) broadband penetration rates across the Gulf reportedly top out around 35% (comparable to major EU countries but far behind the US).
(For more on the region’s investment in education, see Chapter 7 – Building Your Team: Human Capital Strategies for the GCC – of Dubai & Co.)
In the realm of e-government, the UAE – especially Dubai – has set a remarkable standard. Permanent residents and frequent flyers clear airport immigration with the swipe of an electronic card. Public spaces – including the shopping mall in the Dubai’s Emirates Towers – have kiosks where people can pay parking tickets and undertake other core transactions. Such facilities are far more sophisticated that the e-government initiatives of many OECD countries, and city-wide IP networks could help e-government initiatives develop even greater sophistication.
That Cisco could conceive of fully networking a city in the developing world (far from its US home market) reflects an important reality: the realm of what is possible expands when multinationals study global markets closely. To truly lead, global firms cannot simply replicate the business model of used in their home country – they must understand the unique opportunities and challenges available abroad. Nowhere is this truer than in the Gulf – where goals considered audacious elsewhere may sometimes be within grasp.
A “fully networked” city should not, of course, be a goal in itself. Web access and e-government must be understood as means to an end: the goal being more competitive, diversified economies. The hardest work is not building the network; it’s developing the human capital, knowledge, systems, and institutions needed for long-term success. If being “fully networked” helps, then seriously considering the idea is sensible.