The Impact of ICT on Economic Growth: A Review - Assignment Example

The Impact of ICT on Economic Growth: A Review The Impact of ICT on Economic Growth: A Review Introduction Information and Communications Technology (ICT) is a comprehensive subject that refers to the development and usage of technology in processing of information and support communication. These technologies include among others, mobile phones, wireless network, use of the internet, radio, television, satellite systems, computer hardware and software. Economic development can be termed as improvement or qualitative measures of economic well-being through adoption of technology, job creation, changes in production patterns and improvement of general human welfare. (Grabowski, Self, Shields, 2013; 6) This paper seeks to establish the effects that ICT has on the lives of people in developing nations and whether they are favorable or unfavorable. Over the recent years, improved technology has widely been celebrated and impacts on economic levels felt. Economic changes attributable to factors such as adoption of alternative methods of production, growing incomes, employment opportunities, growth in GDPs, improved standards of living have been entirely witnessed. There is a need therefore, to establish a link between ICT and economic development and explain why. It’s prudent to assess the dependability and compatibility of economic improvement to information communication technology. (Grabowski, Self, Shields, 2013; 6) Economic development is on a wider scale beyond the economic growth that looks at income levels and individuals’ jobs. It focuses on general well-being, attainment of economic goals and general improvement in economic activities within the community. The paper seeks to explain the interdependence of ICT and economic development, impacts on socio-economic life, the role of ICT in poverty alleviation in the developing world, distribution of resources, impacts on political and social institutional modernization and other revolutionary changes in the individuals’ well-being in the community. (Konadu-Agyemang, M. K, 2006;374) It is important to establish the changes to economic levels with relation to new communication devices, greater availability of information, and access to internet research facilities among other aspects of ICT the outcome of such facilities on the general living standards of people living in developing nations. The papers also seeks to identify different viewpoints as far as ICT and economic development affect individuals residing in developing nations. (Konadu-Agyemang, M. K, 2006;374) ICT and Economic Development in Developing Countries. Transition through the Stone Age period to industrial revolution to the modern information age period has had significant impacts to man as far as ideas are concerned. So it is said, ‘knowledge is power.’ Throughout all these periods, man has been able to be transformed and improvement of technologies has seen changes in ways of life. Information and power have been the secret of success even in this information age. (Akpan-Obong, P. I. 2009, xv). Prof Akpan-Obong, questions about the inpact of ICT on Nigeria’s economic indices and to the socio-economic life. Over the recent past, there has been a growth in ICT infrastucture such as use of telecommuniaction towers, base stations, use of cellphones e.t.c that has played a vital role in economic development.Such developments present developing nations with opportunities. Developemnt of ICT policies could mean fast growth to economic levels, steady growth and attainment of economic goals. (Akpan-Obong, P. I. 2009, xv). According to (UNDP,1999), information and communication technology has been a successful driving force both in economic and political world. It has been a key issue in globalization and has permited sharing of information and knowledge around the globe. Its is therefore by this reason that it has played a key role in improving the economies of developing nations. It is noted, however, that this realisation is still under evolution and there is a need to use ICT as a reliable pillar for attaining of economic goals. (Konadu-Agyemang, M. K, 2006;374) The impacts of ICT on economic development. Technological enthiusiats believe that ICT has positively impacted in several ways; Firstly, ICT has provided the needed infrastructure in terms of equipment as well as softwares to various business entities. For instance, ICT investments have increased in OECD nations from far below 15% in 1980s to 30% in 2001. This has seen signifiant productivity in labourforce. Technological progress such as in production of computers has led to the continuous fall in their prices. This has made them affordable to enterprenuers motivating further productvity growth. Consequently, there has been growth of industries and better social services. ( The Economic and social benefits of ICT policies in Nigeria; ISSN 1522-0222) Secondly, economic benefits of ICT can be realised by having an efficient sector that produces ICT goods and services. Since ICT goods and services have great demand, such a sector can be an efficient wheel in facilitating technological progress and enabling fast industrial growth. Interest in ICT tools and equipment is ideal for social-economic development and could help nature ICT revolution for wellbeing of the community in developing nations. (Akpan-Obong, P. I. 2009, xvii). Thirdly, the capability to thrive economically calls for the need to set effective ICT policies. If governments set out ICT objectives in line with economic development, the result will be favourable to lives of citizens. Countries like singapore and indonesia have incorporated application of computer products and services in fields of health, management, education, manufacturing among others. This has led to a stable well-performing economy. ( The Economic and social benefits of ICT policies in Nigeria; ISSN 1522-0222) However, less enthiusiasts of ICT point out that ICT has led to negative effects such as having widened digital gap existing between the rich and the poor. This has also been associated with damaging of traditional cultures and exploitaion to developing countries. These proponents have pointed out the costs involved in setting up of ICT infrastructures, social polarization and widening of the information gap between the rich and the poor. (Konadu-Agyemang, M. K, 2006;376) Conclusion ICT has brought many benefits to the development of economy. Policy makers should set ICT objectives that fall in line with the economic goals to realise the benefits. Efficient ICT sector does not work in isolation but could blend with the various economic sectors to achieve productivity in developing countries. Since technology is the propelling power in this information age, its prudent to incorporate it in the economic policies for the purposes of alleviating poverty, job creation and equaitable ditribution of wealth. References Akpan-Obong, P. I. 2009, Information and Communication Technologies in Nigeria: Prospects and Challenges for Development. New York: Peter Lang. Kwadwo Konadu-Agyemang, M. K. 2006, Africas Development in the Twenty-first Century: Pertinent Socio-economic and Development Issues. Ashgate PublishingLtd. Richard Grabowski, S. S. 2013, Economic Development: A Regional, Institutional, and Historical Approach. ME Sharpe. The Economic and social benefits of ICT policies in Nigeria , ISSN 1522-0222) http://www.webpages.uidaho.edu (2009) Read More