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Open Economies - IT disparity between developed and developnig economies, the factors
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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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