8 Situational Analysis Dimension Economic Issues and/or developments that are likely to impact on the ministry’s capacity to achieve its objectives. What effect do the changes present in terms of opportunities and threats to the ministry? Globally Regionally Locally Opportunities Threats Global village phenomenon in information sharing Harmonisation of ICT policies Development of national ICT policy Knowledge-based economy Fraud Liberalisation and tendency New operators leading to increased competition to lessen government involvement in business ICT sector in Kenya liberalised Better and affordable Unhealthy competition quality services Global information flows Formation of information favouring the industrialised flows in regional trading economies blocks, custom unions Formation of information flow in local content Global village Weakening of nationalism Formation of Free Trade Area Agreements & WTO Formation of regional trading blocs with developed countries Increased international trade Larger markets Domination by economies of developed countries Food insecurity Formation of common food related policies at regional level Development of national food policy Global support in the wake of hunger and starvation Dumping of contaminated food Growth of outsourcing Enhancement of intraAfrican trade Enhancement of EAC/COMESA trade Enhancement of local production capacity and market Imported inflation and economic crisis Global financial crisis. Issues and/or developments that are likely to impact on the Dimen- ministry’s capacity to achieve its objectives sion Social What effect do the changes present in terms of opportunities and threats to the ministry? Globally Regionally Locally Opportunities Threats Increased movement of skilled human resources worldwide Increased cross-border movements and interactions Rapidly growing labour force Increased appreciation of the cultural and geographical diversities of the region leading to increased regional tourism and trade. Growing unemployment due to lack of competitive skills Increased permanent migration to some countries, e.g. USA Loss of expertise Exodus of skilled labour Remittances from abroad Brain drain Spread of HIV in all parts of the country Global support to Combat HIV/AIDS and other diseases Increased HIV/ AIDS infections Increased proliferation of undesirable material among women, children and other vulnerable groups Spread of ideas and divergent views Cultural degradation due to global cultural influences Interactions have increased spread of HIV/AIDS and other diseases Proliferation of undesirable audio-visual material Spread of HIV and AIDS across borders Increasing undesirable social contacts across ethnic, regional and other facets