Issues of the Digital Divide

Digital Divide Defined

In 1970’s NGO’s warned of growing gap between haves and have-nots

Universal Service and Universal Access in the telecommunications tradition

Digital Divide Defined

“. . .an inequality in access, distribution, and use of information and communication technologies between two or more populations.” (p. 300)

Can be within one nation-state or among many (Intranational vs. International)

The Global Divide: Access

Physical Access--Where are the ICTs? Financial Access--Who can afford them? Cognitive Access--What can they utilize? Design Access--How well can they interpret? Content Access--What is relevant? Production Access--What can they contribute? Institutional Access--What bodies help or hinder

them? Political Access--Who participates in the decisions?

Global Divide: Beyond Access

Distinction between Formal and Informal Access

Participation and Engagement more key to the issues– Average citizens vs. Information champions– The more active the information champions, the

more evolved the “knowledge society”

Demographic Issues

Access is correlated with – Income– Education– Urban proximity– Age– Gender– Ethnicity– Occupation

Applications

Software

Hard Infrastructure

Soft Infrastructure

Training

Awareness

Basic Education

The Costs of ICT Applications

Perspectives on the Divide

Optimists, Pessimists, Structuralists– The state of the current ICT gap– Predictive Trends in ICT and economic trends– Relationship between patterns of ICT inequality

and economic inequality– Impact of ICT’s on economic growth– Domestic Shifts brought on by ICT diffusion– Causes of successful diffusion in LCD’s

Widening the Divide--Findings

Access Gaps Primarily – Physical– Financial – Content– Cognitive

Widening the Divide--Findings

R&D/Intellectual Property—”Haves” control 97% of world’s patents

GDP closely associated with ICT access Growth rates are as divergent as current

comparative statistics – 23 % for the Haves– 18% for the Have-nots

Widening the Divide-Findings

Wilson concludes that ICT’s are a major factor in widening income disparity over the past decade

Yet he also asserts there is no link between level of ICT usage and level of economic growth. Why?

Widening the Divide

Optimists: might be correct on domestic diffusion, but internationally the findings show the gap widening

Pessimists: Findings seem to support their claims

Structuralists: Supported in that ICT trends follow general global trends

Widening the Divide: Corrupt Elites

(Would you do business with this man?)

Askar Akayev, former President of Kyrgyzstan

(Rule of Law and Protection for civil liberties is critical to ensure equal access. )

Laws of ICT’s

Moore’s Law– Cost of technology platforms go down the longer they are

on the market and as production stays constant Metcalfe’s Law

– “Power of the network increases exponentially by the number of computers connected to it”

Wilson’s Law– “The actual and opportunity costs of exclusion from an

interactive community are multidimensional, increase over time, and are borne by both the excluded and society as a whole.”

Costs of Exclusion

Consumption/Investment opportunities– Higher costs for goods and services

Lack of access to knowledge as the ICT’s become increasingly complex

– Less information re: employment, investments, consumer goods

Decline in social cohesion and connectedness– Less active participation in government and society

Costs of Exclusion

Exclusion costs will increase over time as some citizens join the network and others stay put.

How to Narrow the Divide?

Encourage investment in human capital Low levels of government distortion and

corruption Respect for the rule of law and property

rights Sustain an enabling environment for

democratic rights and civil liberties

Digital Divide Issues-Brazil

• Despite increasing ICT development within Brazil, poor Brazilians fall behind due to• Lack of equipment• Education and Training• Illiteracy

“This was not a first world problem-we were not going to find a Swedish or Swiss company to solve it for us” –Moura Campos

“What Divide?” The Case of China

Wilson attributes the lack of official recognition of divide issues to the following:– Rise of middle class in China put the poor in the

shadows– Increase in education/training communicate

perception of access and equity– “Politically incorrect” subject due to security

concerns.

Strategic Restructuring

Restructuring the Global System

We know why *they* care……… But why does *she*???

Why Does the Private Sector Care?

Assessing short/medium term priorities and calculating material, ideological, and political interests lead to private companies wanting to open new markets and protect creative interests.

The Thatcher/Reagan Revolution

Comrades-in-Arms?

Strategic restructuring of

Property Rights

Governance rules

Efficiency rules

Distributional norms

The Clinton Administration

Political support from the private sector Al Gore champions challenge to

public/monopolist telecommunications to expand access and partner with private sector

Why would public leadership advocate giving up their own power?

Core Principles of Restructuring

Opening national ICT/Telecom Markets to foreign investment

Permitting Telecom to be a traded service

Ensuring promarket regulatory structures

Influences of the Private Sector

When in conflict, private sector companies choose to prioritize rule-making over distribution.

New rules concerning IP, efficiency & private sector leadership constrain any efforts to divide equitably.

Above influence is exacerbated by the shift from state power to private control with ICT’s.

Influences of the Private Sector

Power shift Handling new policy issues Achieving common business positions Private-public methods of forming global

policy networks Individual leaders shaping policy (Bill Gates)

Continuing Issues

Internet Governance (ICANN) E-Commerce as a regulated industry Intellectual Property Rights (TRIPS)

Distributional Issues Addressed

Private business organizations conclude: – Divide is a result of bad government policy– Private sector best solves inequities– Digital divides are really Digital opportunities– Partnership are important, but Governments

should play supporting roles to private interests Global Information Infrastructure Commission (GIIC) Global Business Dialogue (GBD(e))

Distributional Issues Addressed

The Group of Eight Summits (G8)– 2000 Meeting: Japan selecting digital divide– Prompts Clinton Administration to produce policy

and include non-profit and NGO actors in process– Representatives from Developing nations invited

for the first time

Distributional Issues Addressed

Group of Eight 2000 Summit Results– Government set up task forces– Mobilized high-level interest worldwide– Included NGO’s and previously excluded actors– Brought legitimacy to advocacy concerns of

developing countries, but also revealed lack of expertise.

Distributional Issues Addressed

Private Firms– Commercial Activities (export and marketing of

goods and services) – Philanthropic Activities (“community

development”)– Mixed Activities (training to build a population’s

cognitive base)

Distributional Issues Addressed

Grassroots Activities– Companies and NGO’s driven by social concerns

Peoplink.Org

Greenstar

Distributional Issues-Microfinance

Fatima Sarwoni of Namunsi, Uganda

The Village “Phone Lady”

Grameen Bank: http://www.gfusa.org

Questions in Lieu of Conclusions

Why Does the Private Sector Care? How Important is the Digital Divide? Is the Digital Divide Narrowing? What Does the Digital Divide Mean? Who Should Take Action? What are the Obstacles?