1. MIS 648 Lecture 31 MIS 648 Presentation Notes: Lecture 3 How does IT affect national development levels?

2. MIS 648 Lecture 32 AGENDA  Goals of the Lecture  What is National Development  Economic  Social  Cultural/Technological  Why Think IT has any effects?  What makes IT influence national dev’t?  How does development level influence IT use and deployment?

3. MIS 648 Lecture 33 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

4. MIS 648 Lecture 34 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

5. MIS 648 Lecture 35 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

6. MIS 648 Lecture 36 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

7. MIS 648 Lecture 37 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.

8. MIS 648 Lecture 38 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

9. MIS 648 Lecture 39 Digital Divide  The “Gap” between the information- haves 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.

10. MIS 648 Lecture 310 Bagchi  What are the factors contributing to the global digital divide? Factors Measures Global Digital Divide (between countries)

11. MIS 648 Lecture 311 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

12. MIS 648 Lecture 312 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 Index US - ITIndex Country

13. MIS 648 Lecture 313 Affecting Factor Dimensions Model “Digital Divide” Economic GDP per capita; IT expenditure as % of GDP Social Income inequality; secondary education average; illiteracy; interpersonal trust; urbanization Ethno-Linguistic Ethnolinguistic divisions within a nation Infrastructural Level of electricity supply

14. MIS 648 Lecture 314 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.

15. MIS 648 Lecture 315 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.

16. MIS 648 Lecture 316 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

17. MIS 648 Lecture 317 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

18. MIS 648 Lecture 318 Licker, 2004  What is the relationship between ICT penetration and economic development?  GITMA 2004 GITMA 2004