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IT disparity between developed and developnig economies, the factors

  • Subject: IT disparity between developed and developnig economies, the factors
  • From: openeconomies(at)cyber.law.harvard.edu (GERSHON ADZADI)
  • Date: Fri, 06 Jul 2001 09:02:24
Hello,

Kindly find a report on the subject for publication:
Many thanks

Gershon
*******************************************************************

Title: Critical Analysis of  the impact  of  Socio-economic and Political 
Factors on Information Technology (IT)  Disparity between Developed and 
Developing Countries.

By

Gershon Kofi Adzadi, Accra - Ghana


Abstract

This report highlights the impact of  various factors relating to some
impediments which are associated with the rapid proliferation of  IT
infrastructure in the developing countries which account for the
technological disparity between developed and developing economies. Not only 
that but would also attempt to address how such impediments could be 
surmounted so that the gap between the two divides could be minimized.

The 21st century brings with it truly a fundamental change, which is
altering all aspects of business, government and society as a whole (AC & 
C)1. Information Technology (IT) has taken central stage in all forms of 
business activities. In line with that, various software and applications 
are being rapidly developed to bring about efficiencies in business and 
organizational practices so as to enhance economic growth and development.
There is therefore the need for developing countries to take advantage of 
innovations offered by IT to leap frog the ailing economies of the
developing countries.

IT changes such as continual performance improvements, expanded storage
capacity; expanded capabilities of software and the Internet affect all
aspects of  management and society. (D.L. Anderson, 1997).
Increased competition forces organizations to cut cost and operate with
fewer human resources.  The growth of small businesses encourages
entrepreneurs to run their own business and consulting firms and the
continued innovations in IT is encouraging even more changes to business and 
society.

Unlike the early days of information technology when the industry focused on 
centralized host-architectures, in recent years we found the PC with 
decentralised computing and storage capacity being the hub for progress in 
the majority of information systems.  Today and for the future, this 
industry will circle around the network and the database.  Network computing 
therefore is emerging as a business strategy, enabling society to 
collaborate, to share information on products and services without regard 
for physical distance.  The moving
force in the development of the new-economy and e-society however is not
just the new technology.  The real catalyst is a powerful set of emerging 
society needs and priorities, increased speed to market, flexibility, global 
expansion and a closer integration of customers and suppliers.  To meet 
these priorities, highly effective information and communication tools are 
required.  These tools constitute the new wave of Information Technology, 
and its associated impact on society.  This new wave is redefining value and 
competitiveness and changing the nature of commercial transactions.  IT is 
changing the way people work, communicate, receive products and services, 
get educated and enjoy entertainment. In the midst of the global benefits of 
IT, there are both good news and bad news for the developing economies.

The bad is that with an estimated 300 million computers in the world, barely 
one per cent of them are found in the developing countries and in Africa in 
particular (AC&C, 2000)1.
Furthermore while the number of Internet users in Europe and U.S.A. is
estimated at about one in six,   the figure is one in a thousand in Africa. 
Take South Africa out of the equation, and it is one in five thousand 
(AC&C).

Other specific problems are briefly discussed as follows:

The astronomical cost of Internet facilities is a disincentive to users in 
the developing countries. For instance it has been observed at an
international forum that the high cost of internet subscription in Nigeria 
could put the country in the back seat of the emerging
e-commerce (www.cnnia.com)

Another factor, which impacts negatively on IT development in the developing 
countries, is the inadequate infrastructure base existing in the developing 
countries. It is for this reason that the Federal Government of Nigeria was 
recently advised to provide uninterrupted power supply and telecommunication 
facilities for the effective functioning of computers and internet services 
(www.cnnia.com)

The issue of political instability, poverty, ignorance and of late, disease 
such as HIV/AIDS and lack of the political-will on the part of governments 
to integrate computerization into their national budgets and economic 
development programmes are other factors which impact adversely on the 
progress of computerization in the developing countries.

Cultural issues also play a role in running multinational computer networks 
in developing countries. Added to that, the  work habits of employees also 
vary in different countries. It has been observed through a survey that it 
is difficult to obtain qualified service personnel at some times of the day 
or night. These issues can be critical for computer networks that need to 
remain in operation 24  hours a day. In some countries it is still 
considered inappropriate to have  female managers where there are male 
subordinates.
Collecting reliable information on marketing and data on age and income
could be exceedingly difficult or even culturally forbidden in some of these 
developing (G. V. Post, 1997).

The good news however is that, as prices and barriers go down and awareness 
and computer literacy is making progress, IT imports are streaming into the 
developing countries at unprecedented rate.  India and Malaysia are leading 
the way with their burgeoning software industry and innovative version of 
Silicon Valley respectively. In the face of the challenges that face us, 
Information Technology is not just our big chance. It is our last chance 
(Computer
Network News In Africa (CNNI)).

Some of the specific solutions can be found in the brief discussion as
follows:

The governments in developing countries should adopt bold political
programmes that would resolve all bottlenecks associated with
computerization in their respective countries.  For instance, Thabo Mbeki, 
the South African president recently appointed IT advisory panel to advise 
the government on IT strategy and how to surmount the digital divide (CNNI)

It has also been reported that the Nigerian government is currently
producing a bill to establish a legal framework for the emerging
e-economy (A. Anderson, 2000).

Another solution rests in raising the level of awareness of computer
education in the developing countries (Adedeji, 2000).  Furthermore,
companies should be encouraged to invest in the IT sector in the developing 
economies.  The initiative taken by Saudi Ben Mahfouz Investment Group to 
announce it is to invest $100 million in IT projects in Egypt (CNNI) is 
therefore in the right direction.

There is the need to do further research on the subject. Some of the issues 
which must be addressed in detail are as follows: -

* How does socio-economic factors impact on computerization in developing 
countries?.
* The effect of political decisions on IT proliferation in the developing 
countries.
* How does diverse cultural practices pose impediments on the subject or
otherwise?.
* Can the improvement of ill-equipped educational institutions reverse this 
trend.
* What are some of the  legal hurdles to surmount in the attempt to close 
the digital divide
* Is the technical support adequate for the technology as exists in the
developed economies?
* How can the security of the systems ensure confidence of users in these 
countries.
* What kind of steps to be taken to reverse the growing technology gap
between developed and developing  economies.
* Other related factors that need to be investigated.
* What are the benefits of these findings to society?

1 (African Computing and Communication Year Book, 2000)


Gershon Adzadi
IT Manager
Ghana Civil Aviation Authority
gershona@hotmail.com



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