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Synopsis This Information Economy Report 2005 is being published by the United Nations Conference on Trade and Development to coincide with the second phase of the World Summit on the Information Society, at which the international community is expected to agree on further steps to realize the full potential of ICTs. The Report highlights the extent to which developing countries are striving to close the gap that separates the “information haves and have-nots”. It also describes the enormous challenges the world still faces in key areas such as increasing access to the Internet and strengthening the security of the online environment. Most important, it shows that when there is awareness, political well and stakeholder involvement in national “e-strategies”, progress in the use of ICTs for development is already an exciting reality. The Information Economy Report 2005 was prepared under the overall direction of Peter Frohler, Officer-in-Charge of UNCTAD’s Division for Services Infrastructure for Development and Trade Efficiency.