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MIS 648 Presentation Notes: Lecture 3

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

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MIS 648 Presentation Notes: Lecture 3

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

  2. 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? MIS 648 Lecture 3

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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. MIS 648 Lecture 3

  10. Factors Global Digital Divide (between countries) Measures Bagchi • What are the factors contributing to the global digital divide? MIS 648 Lecture 3

  11. 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

  12. 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

  13. Affecting Factor Dimensions GDP per capita; IT expenditure as % of GDP Economic Income inequality; secondary education average; illiteracy; interpersonal trust; urbanization Social Ethno-Linguistic Ethnolinguistic divisions within a nation Infrastructural Level of electricity supply Model Model “Digital Divide” MIS 648 Lecture 3

  14. 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

  15. 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

  16. 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

  17. 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

  18. Licker, 2004 • What is the relationship between ICT penetration and economic development? • GITMA 2004 MIS 648 Lecture 3

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