Topic > ICT will increase the divergence between rich and poor...

Information and communication technologies (ICT) offer developing countries unprecedented potential to start a process of catching up with developed countries. It provides effective means to increase productivity, helps integrate economies into the world market, offers better education opportunities and improves health services. ICTs account for half of productivity growth in modern economies (Reding, 2005). Rich countries are decidedly more capable of exploiting ICTs than poor countries; “inequalities in access to ICT are still approximately double the average levels of income inequality” (UNCTAD, 2005). This is partly due to a more favorable starting economic position, but other factors also come into play. However, there is potential to reduce the gap through smart ICT adoption, along with successful examples. Policies and how they are implemented by governments are the key factors in achieving this ambitious goal. In the mid-1990s, under the Clinton administration, the term “digital divide” came into regular use. The term refers to the gap between those who have regular and effective access to digital and information technology and those who do not (Warschauer, 2003). The adoption of new technologies requires investments; a quick look at GDP data allows us to draw a line separating countries that can afford ICT from those that cannot: diffusion is clearly influenced by economic factors. However, despite this evidence, wealth distribution alone cannot explain the entire digital divide. The consideration that countries with similar economic conditions show significant differences in ICT adoption rates has drawn scholars' attention to other factors such as cultural and social aspects. It is important to consider these factors when designing policies to bridge the digital divide. The digital divide can be divided into three main components: Economic gap Socio-cultural gap Educational gap Economic gap The current distribution of ICT products (devices and applications to consumers) is openly unequal. Considering for example the Index of Technological Progress (Rodriguez and Wilson, 1999) which includes televisions, mobile phones, personal computers, internet hosts, fax machines, R&D as a percentage of GDP, technicians, scientists and main telephone lines, it is evident that the rich Countries are much better off than poor ones: the top ten economies in the ITP global ranking are all members of the OECD, while the bottom ten economies are all in sub-Saharan Africa. This distribution is confirmed by the most recent data on Internet penetration, broadband subscribers, mobile networks and 3G services: Europe and the Americas still account for the lion's share of geographical distribution (ITU, 2006). Furthermore, more than 80% of the world's internet users are located in OECD countries, which are home to approximately 20% of the world's population ( OECD, 2006).