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ZEF Discussion Papers on Devlopment Policy 7Bog'liq zef dp07ZEF Discussion Papers on Devlopment Policy 7
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Information and Communication
Technologies – A Characterization
As discussed above, the spread of ICTs has generated unbridled optimism in some
quarters. In this section, these technologies are characterized in order to convey an
understanding of their unique qualities.
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To fully appreciate the potential of these technologies, it should be noted that there is
increasing recognition of the importance of ideas, knowledge and information in the
development process (Stiglitz, 1989; Romer, 1993; World Bank, 1998). The assertion that a a
knowledge gap is an important determinant of persistent poverty, combined with the notion that
developed countries already possess the knowledge required to assure a universally adequate
standard of living, suggest the need for policies which encourage greater communication and
information flows both within and between countries. One of the best possible ways to achieve
this greater interaction is through the use of information and communication technologies.
ICTs are able to serve as information channels due to their ability to support the
decoupling of information from its physical repository. It is argued that this separation or
decoupling property is the truly revolutionary aspect of these technologies (Evans and Wurster,
1997; Pohjola, 1998). This property allows the immediate transmission of large volumes of
information and permits communication independent of the physical movement of individuals.
The capability to support information separation is the key attribute underlying the wide range of
activities and services offered through ICTs.
This decoupling property allows users access to a body of information and ideas which
are non-rival in use and potentially generate large
content-related externalities
.
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Access to new
ideas and knowledge may have far-reaching effects (which are discussed in the next section).
Apart from the content-related benefits, there are externalities related to the size of ICT
networks. The use of ICT networks is also non-rival in nature, and an increase in network size
generates
network externalities
. For example, consider a project that permits e-mail access to
additional subscribers.
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This survey concentrates largely on the information processing and communicating capabilities of ICTs, rather
than on their role in automating production processes. Also, it focuses more on the role of ICTs as an intermediate
input or facilitator, rather than on their direct contribution to economic development through the development of the
software and/or hardware industries.
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While the possibility of decoupling permits access to a body of knowledge, many insights and ideas that generate
economic value are of a proprietary nature. In such cases, the role of ICTs in enabling access is limited, and other
measures such as trade and foreign direct investment may be the appropriate conduits for disseminating information
and knowledge.
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