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5.5 Economical framework:
Beside the institutional and technical issues considered
earlier, and in connection with these, justifying the
development of a Geoinformation Utility is the economic
component of the process. This is particularly important
given the extent of the problem space in terms of status and
number of organizations involved, range and spread of
potential users, domains susceptible to be affected by its
use, and geographic zone of influence.
Decision making is in economic thinking a matter of costs
and benefits, which assumes that in decision making we are
guided by the perceived costs and benefits of our actions.
However, research on the topic reveals that in practice it is
rather difficult to apply the common technique of Cost-
Benefit Analysis (CBA) to justify geoinformation projects,
comparatively to other economic activity areas like industry,
agriculture, or trading. In addition, the development of a
Geoinformation Utility induces opportunity cost for the
society, and association of public or social-oriented
objectives with commercial objectives.
A model combining the prediction and aspiration concepts
for providing an economic shape to the problem of
developing a Geoinformation Utility has been developed.
The method is an extension of the CBA that takes into
account the long-range characteristic of the Geoinformation
Utility investment and provides, in addition to the content of
the CBA asset, a way of integrating the eventual post
horizon growth of the system. A decision model is provided
using two decision rules based respectively on the present
worth of the project, taking into account the cash flows
during the post-horizon time, and the minimum growth rate
of the return in the post-horizon time [A. Bassolé, 1995].
This proposal is made mainly because the problem to solve
is a long-range investment problem, that in addition is to be
considered as a public investment, despite the private
sector involvement. Indeed, the main goal of the Utility is
not purely commercial; it is also social in the sense that it
aims at generating in the long run optimal use of
geoinformation by avoiding redundant data collection
throughout the country, thus leading to savings in both the
public and the private sector, and also at reducing
uncertainty in decision making. Its services, at maturity
should reflect the character of public utility the same way
telephone or electricity services do. As such, it is better
treated as a long-range public investment.
6. CONCLUSION
The reported research efforts and implementation of the
results in countries like Argentina, Burkina Faso and
Colombia, to name but a few, have demonstrated that there
is no single solution for the development and maintenance
of a Geoinformation Utility, will it be at a national, regional
or local decision making level. However, a generic approach
to the problem can be considered as shortly outlined
hereafter.
Country's related socio-economic constraints are
deterministic; combined with locally determined information
needs and requirements (from a business management
perspective), they permit to determine the Critical Success
Factors for the development and maintenance of
639
Geoinformation Utility in the specific context; the
challenges and the need for change. A subsequent
analysis of the existing information supply (based upon
eg. a S.W.O.T. analysis), of the information
requirements, and of the Critical Success Factors in
terms of activities to be undertaken, will lead to the
definiton of a planning framework, including
institutional, technical, and economical strategies, and
the definition of priorities for development. This will in
turn lead to a workplan for the development of a
Geoinformation Utility [M. Radwan, 1995].
7. REFERENCES
P.A. Addai, 1995; Selection of an optimum methodology for the
development and maintenance of a Geoinformation Utility; ITC
M.Sc. thesis.
A. Al-Ansari, 1994; Guidelines to establish a National Land
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M. Bangemann, 1994; Europe and the global information
society; recommendations to the European Council.
A. Bassolé, 1995; Towards the development of a National
Geoinformation Infrastructure in Burkina Faso: the "Réseau
d'information urbaine" as a strategic starting point; ITC M.Sc.
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Y. Bishr, 1996; A hierarchical spatial canonical data model;
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C.M. Paresi, M.M. Radwan, 1995; Development and
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M.M. Radwan, 1995; Information System Design; Internal report
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M.M. Radwan, Y. Bishr, E. de J. Espinoza, T. Mabote, 1996;
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M. Sarpoulaki, 1994; Quality assurance system for the
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International Archives of Photogrammetry and Remote Sensing. Vol. XXXI, Part B4. Vienna 1996