Plug and play: classrooms across the region go digital as governments plow money into schools.

Talk to any politician in an election year and, sooner or later, they'll pitch their education platform. They've all got surefire ways to ensure a brighter future for the children. As high global prices for exports fill public coffers, that means more technology in the classroom, music to the ears of computer hardware and software companies looking for new business.

Desktop and laptop computer sales bound for Latin America's education sector grew 14% in 2005 to US$281 million according to industry consultant IDC, a reflection of the region's priority for education. Budgets for the region's schools are rising. In Chile, the government has earmarked US$4.76 billion in its budget for education in 2006, a 6.1% increase from the year before, and four times more than in 1990. Mexico spending rose a modest 3% to $12.47 billion during a two-year period ending in 2004, but the government's Enciclomedia program, which allocates technology to the country's education systems, has brought new business for tech companies.

One of Enciclomedia's chief suppliers has been Dell, the U.S. personal-computer giant. Although the company does not provide details on its business with Latin American governments, Dell executives note that the public sector, and education in particular, has been good for hardware sales. "For Dell, it's a strategic sector. It not only represents a important sales volume, but it also allows us to show and educate students on the technology that we offer," says Simbad Ceballos, general manager of the Andean region for Dell.

Colombia is another case in point. According to IDC, government spending in desktops and laptops for educational purposes rose there by 48% to $24.2 million. For Dell, the country became the top education market in the Andean region, which includes Peru, Ecuador and Venezuela. "In Colombia, revenue in the sector grows at a good pace year after year. It grew 35% in 2005 from 2004 in terms of units sold," Ceballos says.

Whether this business trend continues or not, Dell remains optimistic. To illustrate, Ceballos points to Peru, a country where computer sales to schools rose 46% to $26.9 million in 2005, according to the IDC. "The increase was due to the special incentives Peru has made available to spur technology purchases at universities and schools," he says. "The initiative shows the way for the rest of Latin American governments to reduce the digital divide."

Dell competitor Hewlett-Packard is busy reaching out to schools, too. "Certainly education is a very important area for us due to the volume of machines sold and due to the fact that technology continues to become obsolete faster and faster," says Axel Heilenkotter, head of marketing for HP in Chile. Although he wouldn't provide sales figures, Heilenkotter says HP is one of the largest suppliers for the government's Enlaces procurement platform, which is similar to Mexico's Enciclomedia, although it has been around for 14 years (Enciclomedia is three years old). Heilenkotter says that there are not too many big or even medium-sized companies that have more than 4,000 personal computers. "But universities really do need such numbers," he says.

Blending business and research and development is catching on with other technology companies, such as SAS, a U.S. business-intelligence software company. "About 20% of the company's employees focus on education, which for us, is just as important as the financial sector, government or manufacturing," says Francisco Olivera, director of business strategy at SAS for Mexico and Central America.

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EDUARDO CORONADO * SANTIAGO