Economic Development ICT and Poverty Term Paper

  • Length: 5 pages
  • Subject: Economics
  • Type: Term Paper
  • Paper: #8614404

Excerpt from Term Paper :


France 1.6-0.25

Germany 2.1-0.19

Italy 1.9-0.24

Japan 1.9-0.19

UK 1.4-0.40

US 1.0-0.41

Source Kodakanchi et al. (2006) citing Schreyer (1999), Table, page 19

Further reported by Kodakanchi et. al, is the fact that one of the African countries, and there are many, that faces poverty and inequality disaster is the country of Ghana. Advances in technology in Ghana are stated to be "meager since its independence in 1957." (2006) the economic development model based on it for developing countries takes into account the major concerns to it advent into these countries which are those of the: (1) Inability to invest in the it field due to poor financial infrastructure; and (2) inadequate human power with the knowledge of it." (Ibid) the economic model, which has been proposed, is one that has larger foreign investment and government policies in support of it development as well as an awareness on the social level of the importance of it. Higher productivity in the model leads to faster economic growth, which in turn leads to investment in it. The work of Raji, Ayoade and Usoro (2006) entitled: "The Prospects and Problems of Adopting ICT for Poverty Eradication in Nigeria" states that there are gaps in per capital income that have increased between countries who are developed and those who are not developed and that there are in fact, approximately 1.2 billion individuals who live in 'dollar poverty' (those who consume less than one dollar per day). It is also related that the economy in Nigeria is over-dependent on crude oil which is the countries' one and only resource. Another developing country is India. The country of India has "positioned itself to take advantage of the booming global it generated economic marketplace" through systematic investment in education of individuals in the country for production of "high quality software to support the it-driven global economy." (Ibid) Resulting from the investment India is predicted to have a software export worth "approximately 100 billion U.S. dollars" (UNDP Choices - the Human Development Magazine, June, 2000 in Raji, Ayoade and Usoro, 2006) Ajayi (200) is cited in the statement of: "Government and people around the world have started appreciating the ability of Information and Communications Technology (ICT) to stimulate rapid development in all sectors of the economy. Related as well is the fact that in Nigeria there are presently 21.5 million GSM subscribers across four providers of services and 1.3 million through other networks. As compared to only 475,000 phone lines in May 2005 in a country with a population of 120 million. Education is promoted via the Internet in Nigeria and this "facilitates scientific advancement through sharing of research as well as resulting in expansion of healthcare's reach via telemedicine. (Gross, 2005 as cited in Raji, Ayoade and Usoro, 2006) ICT is stated to have the potential for Nigeria and other countries, specifically in this study the country of Ethiopia in the following: (1) provision of employment opportunities (this will require proper training); (2) promotion of freedom's course through strengthening democracy by access to knowledge; (3) spark economic growth if approach is "well-planned and systematic"; (4) act as the mechanism for access of and sharing of information and knowledge "in a manner that redefines space and time" (5) Increase participation in government through "governance capacity building, e-learning, e-government, environmental management, enhancing advocacy programmes and empowerment of communities and persons as results of appropriate use of ICT." (Raji, Ayoade and Usoro, 2006) Other countries that have witnessed economic transformation due to ICT include the countries of Bangladesh and Jamaica. Constraints experienced include government policies either lacking or restraining ICT development; the high cost of bandwidth, poor infrastructure, Lack of local content or language barriers, high rate of illiteracy in rural areas, gender insensitivity, inadequate human resources, and the ability of projects to be sustained. Africa is reported as the country having the "most serious constraint to Internet adoption" due to the factors of "thin bandwidth, non-existing intra-regional connectivity and the low level and inefficient fixed lines that is equally constrained by inter-exchange congestion (Oyeyhinka an Adeya, 2004 as cited in Raji, Ayoade and Usoro, 2006) the roles that government play in the facilitation of appropriate use of ICT include: (1) approval of policies for the major sectors of the industry [National Telecommunications Policy, National Information

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