MIS 648 Presentation Notes: Section X

MIS 648 Presentation Notes: Section X

MIS 648 Presentation Notes: Lecture 3 How does IT affect national development levels? MIS 648 Lecture 3 1 AGENDA Goals of the Lecture What is National Development

Economic Social Cultural/Technological Why Think IT has any effects? What makes IT influence national devt? How does development level influence IT use and deployment? MIS 648 Lecture 3 2 Goals of the Lecture

Define National Development Understand the rationale for examining IT and ND Chart the Influence of IT on ND Challenges and outcomes MIS 648 Lecture 3 3 National Development

Four (or more) components: economic, social, political, cultural Usually dominated by economic development A variety of league rankings, but generally GDP per capita is the measure of economic development However, social and political development are also important MIS 648 Lecture 3 4 Why Should IT influence ND?

IT promises efficiencies IT (ICT) promises increased activity and participation IT may be environmentally neutral IT is associated with desired economic outcomes IT is relatively cheap compared to dams MIS 648 Lecture 3 5 Some examples ICT aids farmers in getting best prices

ICT helped Singapore gain world-class port status ICT industry helps most third-world countries by providing employment MIS 648 Lecture 3 6 However With few exceptions, ICT penetration is greatest in countries that were already developed prior to 1950.

The exceptions are SE Asia, Finland, some oil-rich countries and to an extent the countries of Eastern Europe. There are some unintended effects in the social and political arena, too. MIS 648 Lecture 3 7 Some counterexamples ICT failures in telecenter ventures ICT cannot be separated from other forms of modernization in the Asian tigers

ICT advances even faster in first-world countries MIS 648 Lecture 3 8 Digital Divide The Gap between the informationhaves and the information have-nots Inter-country (North-South) and within country (cities-rural generally; rich-poor always) Evidence is that the digital divide is

increasing There is no good way to measure this. MIS 648 Lecture 3 9 Bagchi What are the factors contributing to the global digital divide? Factors Global Digital Divide (between countries)

MIS 648 Lecture 3 Measures 10 Caveats There is no such thing as a single global phenomenon: every event affects people differentially No country is homogeneous, even the poorest have their e-elites

Statistics change daily. Digital divide is posited to exist within countries, across countries MIS 648 Lecture 3 11 Defining Digital Divide Calculate IT Index from principal components analysis of telephone, PC, Cellphone, and Internet usage per 1000 population (contributions between 0.88 and 0.97: highly correlated) Digital Distance = IT IndexUS ITIndexCountry

MIS 648 Lecture 3 12 Model Model Affecting Factor Dimensions Economic Social Digital Divide GDP per capita; IT expenditure as % of GDP Income inequality; secondary education average; illiteracy;

interpersonal trust; urbanization Ethno-Linguistic Ethnolinguistic divisions within a nation Infrastructural MIS 648 Lecture 3 Level of electricity supply 13 Research Questions

Overall, what indicators contribute to DD? Are there differences in DD and their impact on DD for developing and industrialized nations How have relationships of indicators with DD changed over time for developing and industrialized nations. MIS 648 Lecture 3 14 Methodology

Secondary data sources (World Bank plus others) for 1995 and 2001 Electrification Level = TV sets per 1000 ELF index quantifies ethnolinguistic fractionalization Correlational studies with regression analysis. MIS 648 Lecture 3 15 Results Trust, GDP, EDU and TV are

significant reducers of digital divide Trust matters for OECD while EDU is most important for ECLAC. ECLAC: DD relationship with Trust, Urbanization, Illiteracy and IT/GDP decreased 1995-2002. OECD: DD-IT/GDP went down; with Urbanization went up MIS 648 Lecture 3 16 Direct Effects

How might ICT increase national purse economically and socially? Providing jobs, hence income Providing new industry, hence income Providing information, hence education, hence lowering social gaps Generally increasing modernization, urbanization, critical skills of citizenry MIS 648 Lecture 3 17 Licker, 2004 What is the relationship between ICT penetration and economic development? GITMA 2004

MIS 648 Lecture 3 18

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