Tau institute overview feb 2014

Emerging ICT RegionsRoger StrukhoffFebruary 2014

Developing Nation Groupings

Developing nations no longer seen as “Third World”Two major groupings in common use today are:

BRIC (Brazil, Russia, India, China)• coined by Jim O'Neill at Goldman Sachs

MINT (Mexico, Indonesia, Nigeria, Turkey)• coined by Merrill Lynch, now taken up by O'Neill

Traditional View

BRIC, MINT, Next Eleven, Frontier Markets focus on population size of selected nations and determine absolute economic environments.

Our ViewThe Tau Institute focuses on 102 nations of all sizes and

determines relative, not absolute, socio-economic & ICT environments.

Our Approach

Technology factors (sources in parentheses)

Average bandwidth (Ookla, Inc.)

Internet access (Intl Telecommunications Union)

Broadband access (Intl Telecommunications Union)

Dataservers (World Bank)

Socioeconomic factors

Income Parity (United Nations, CIA)

Perception of Corruption (Transparency Intl)

Human Development Index (United Nations)

Local cost of living (International Monetary Fund)

Overall Tau IndexMeasures Current ICT Development

Scores Can Be Plotted on a Relatively Smooth Curve

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Raw Tau IndexMeasures Potential ICT Development

Scores Show Dramatic Differences

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Goldilocks TemperatureMeasures Relative Pace of ICT Development

The Tau Institute measures the relative dynamism and torque of global ICT environments.

In our research, we've found that economies can be over-torqued, or “too hot.” Other economies can be under-torqued, or “too cold.”

We've also found wide regional variances in dynamism, ie, some entire regions may be over-torqued or under-torqued.

We've thus developed “Goldilocks Categories” that integrates our algorithms against a formula based on the Golden Ratio.

This allows us to categorize the overall ICT environment of individual countries as too hot, too cold, or just right, relative to their regions.

Developing Regions

1. Eastern Europe

2. Middle East

3. Africa

4. South Asia

5. Latin America

Note: The BRIC nations – Brazil, Russia, India, China – are so large they can distort regional results. They are thus excluded from this particular analysis.

Our goal is to go “Beyond the BRICs.”

1. Eastern Europeexcluding Russia

Nations Surveyed 15

Total Population 160 million– Largest: Ukraine, Poland, Romania

Total GDP $1.6 trillion– Largest: Poland, Czech Republic, Ukraine

Overall Index: Current Leaders– Estonia, Lithuania, Poland

Raw Index: Potential Leaders– Latvia, Czech Republic, Slovakia

Country ExampleLatvia

Capital Riga

Population 2.1 million

Per Capita Income 42nd of 102

Cost of Living Benefit 57/102

Bandwidth 6th out of 102

Internet Access 27/102

Broadband Access 30/102

Income Parity 42/102

Corruption Perception 42/102

Overall Tau Index Ranking– Global 12th out of 102

– Regional 2/15

Raw Tau Index Ranking

– Global 15/102

– Regional 2/15

– Goldilocks Temp Just Right

2. Middle Eastincluding Egypt

Nations Surveyed 11

Total Population 330 million– Largest: Egypt, Turkey, Iran

Total GDP $2.9 trillion– Largest: Turkey, Saudi Arabia, United Arab Emirates

Overall Index: Current Leaders– Jordan, Israel, United Arab Emirates

Raw Index: Potential Laders– Egypt, Yemen, Saudi Arabia

Country ExampleJordan

Capital Amman

Population 6.3 million

Per Capita Income 66th of 102


Bandwidth 73/102





Overall Tau Index Ranking– Global 31st out of 102

– Regional 1/11


– Global 36/102

– Regional 2/11


3. Africaexcluding Egypt

Nations Surveyed 22

Total Population 700 million– Largest: Nigeria, Ethiopia, South Africa

Total GDP $1.4 trillion– Largest: South Africa, Nigeria, Algeria

Overall Index: Current Leaders– Uganda, Morocco, Ghana

Raw Index: Potential Leaders– Tanzania, Ethiopia, Senegal

Country ExampleGhana

Capital Accra

Population 25 million



Bandwidth 63/102





Overall Tau Index Ranking– Global 48th of 102

– Regional 4/22


– Global 24/102

– Regional 12/22


4. Asiaexcluding China, India, Japan, South Korea

Nations Surveyed 14

Total Population 930 million– Largest: Indonesia, Pakistan, Bangladesh

Total GDP $3.1 trillion– Largest: Indonesia, Taiwan, Thailand

Overall Index: Current Leaders– Vietnam, Taiwan, Mongolia

Raw Index: Potential Leaders– Philippines, Pakistan, Laos

Country ExamplePhilippines

Capital Manila


Per Capita Income 80th of 102


Bandwidth 85/102





Overall Tau Index Ranking– Global 53rd of 102

– Regional 6/14


– Global 22/102

– Regional 3/14


5. Latin Americaexcluding Brazil

Nations Surveyed 13

Population 325 million– Largest: Mexico, Colombia, Argentina

Total GDP $2.9 trillion– Largest: Mexico, Argentina, Colombia

Overall Index: Current Leaders– Chile, Uruguay, Costa Rica

Raw Index: Potential Leaders– Honduras, Ecuador, Panama

Country ExampleEcuador

Capital Quito




Bandwidth 67/102





Overall Tau Index Ranking– Global 71st of 102

– Regional 10/13


– Global 55/102

– Regional 3/13


Goals/Capabilities

Our main goal is to start conversations Our predictability is meant to be long-term We can dig deeper into individual countries,

groups, regions, etc. We can integrate additional factors We can adjust curves to emphasize factors that

are important to our clients

Contact

Roger StrukhoffExecutive DirectorTel: +1-815-757-7534

[email protected] @TauDirSkype strukhoff

205 E. Seminary St. Mount Carroll IL 61053 USA

105 Elizalde St. Paranaque Metro Manila 1720 Philippines

mailto:[email protected]

http://Www.TauInstitute.org/

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Tau institute overview feb 2014