As a rider to Richard Heeks' comments, it is worth restating that ICT
revolution has been driven by the convergence in communication and computing
technologies, the rapid growth in network computing, and the sharp decline
in the cost and price of information processing. Underpinning the ICT-led
new economy is the speed with which information and finance can be
transported, and complemented by the speed with which new technology is
introduced, diffused and mastered.
ICTs by themselves, however, should not be seen as instant salvation to the
cause of development. As Donald Johnston, the Secretary-General of the OECD
recently pointed out that even in the high-tech US, between 1990 and 1996,
investment in ICT accounted for about only 0.4% of overall 2.8 growth in
output. Further, the success of ICT implementation in the developed
economies has been due to favourable supporting structures (i.e. just
regulatory frameworks, low administrative barriers to start-ups, efficient
capital markets) and policies (macroeconomic policies keeping interest rates
low). In the developing and transition economies, where such supporting
structures and policies cannot be taken for granted, evidence suggests that
government-sponsored ICT strategies usually stand a greater chance of
succeeding. For example, Estonia had a very low level of ICT technology and
activity when independence was restored in 1991. Per capita income at the
time was U$600. Today the country has one of the highest degrees of
connectivity in Europe and ranks among the top 20 nations worldwide. All
schools have been connected to the Internet: 80% of bank transfers are made
over the Internet; 28% of the population is connected to the Internet either
at home or at work compared to just 7% in 1997; and annual per capita income
is U$5000.
Arvind Chudasama
Consultant
147 Green Ridges
Oxford
OX3 8LX
UK
tel:+44 (1865) 751123
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