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The Economics of ICTs and Global Inequality: Convergence or Divergence for Developing Countries?

Citation:

Heeks, R. & Kenny, C.J. (2002). The Economics of ICTs and Global Inequality: Convergence or Divergence for Developing Countries?. Development Informatics Working Paper Series, No.10a/2002. Manchester: Institute for Development Policy and Management. Retrieved May 08, 2008 from http://www.sed.manchester.ac.uk/idpm/research/publications/wp/di/di_wp10a.htm

Work data:

ISBN: 1 904143 76 8

Type of work: Working Paper

Categories:

ICT Infrastructure | ICT4D

Abstract:

If debate on ICTs and development has drawn from any discipline, it has tended to be sociology. This paper attempts to broaden the debate by drawing on economic evidence to ask: will ICTs support economic convergence or divergence between developing and industrialised countries?

In an overall sense, technology is fundamental to development. However, ICTs – while having an uncertain impact on growth – are currently a force for global economic divergence rather than convergence. They diffuse more slowly in developing countries than industrialised countries, and they bring fewer benefits and greater costs to developing countries than industrialised countries.

This does not present an argument against adoption of ICTs by developing countries. Rather, it presents an argument for focus on particular applications and investment priorities.