Economic Development Gap By Internet

TABLE OF CONTENTS I. Abstract

3

II. Introduction

3

III. Advantages of Internet

4

IV. Disadvantages of Internet

5

V. Impact of Internet in Developed Nations

6

VI. Economic Development Gap

8

VII. Internet for the Developing Nations

10

VIII. Conclusion

12

IX. References

12

Economic Development Gap by Internet I. Abstract: This assignment is made to explain to explain about the impacts the Internet is having on the Business and Culture of various countries and whether this technology is building any economic gap between the developed countries and the developing countries (where the internet is not available). Also the availability of Internet in all countries is also discussed. The term Digital divide is used to explain the economic development gap by the Internet. The term Internet plays a major role in Globalization and it is necessary to discuss whether it can be used as a technology tool in the development process of an organization. Some methods are viewed which can be helpful to the developing countries in using these type of technology tools for their economic development. Key words: Internet, Technology, Globalization, Organization, Digital Divide.

II. Introduction: Internet can be defined as a world-wide system (or) network of PC’s and laptops that can be admitted through the TPL (The Promised LAN) PC network. It allows local PC and Laptop users to discover and utilize the information resources of any research (or) academic institutions, corporations (private), management agencies and also the individuals. These days Internet is the main source for ICT (Information and Communication Technology), which is the cause and drive force for globalization. ICT is accessed by many organizations for 1. Employment Opportunities 2. Reducing Poverty 3. Information access 4. Well-organized Public Services 5. Stakeholder Involvement 6. Assessing Growth

Various countries use Internet for various goals such as U.S (ICT) for Financial Growth, Canada for Worldwide Access, Malaysia using Multimedia for Development, China for Infrastructure Progress, India for electronic services (eservices), etc.

III. Advantages of Internet: Communication: The primary objective of Internet is always Communication and it has shine well beyond the prospects. Still the innovations are carried out in this technology to make it more reliable and rapid. By the introduction of P.C’s and laptop Internet, our world has been abridged and has achieved the structure of a global community. Now-a-days we are able to communicate in second’s fraction with those who are on other side of the world. These days for improved communication we can use the e-mail facilities where we can chat for a long time. There are ample messenger services for contribution. With the assistance of these services it is convenient to create a sort of global friendship where we can share our contemplations and can explore different customs and cultures of diverse civilization. Information: Information is perhaps the major benefit offered by Internet. Internet is a effective treasure trove for any kind of information. Lots of search engines like MSN, Yahoo, Google and more are at service to provide precise information for us. The information ranges to about every issue like market information, technical supports, government services, new ideas and the list continues. Mostly students and broods rank in the top users for browsing and surfing Internet for study. These days almost every student uses Internet for collecting resources to make a research, assignments or projects. Even research on medical concerns is relatively simple to locate. Various web sites are accessible on the net which provide lots of information for people to delve about diseases and can take treatment online like America’s doctor site. In the period of 1990’s about 20 million people have been recorded for using online services for their retrieval health information.

Entertainment: Entertainment is an extra popular reason most people choose the Internet for. Indeed the Internet media has been very effective in confining the versatile entertainment factor. Web surfing, chat rooms, online games, downloading games are a few potentials accessible through Internet. The online gaming industry has experienced some exceptional and dramatic interest from the games freaks. Chat rooms are admired by many people where we can interface with new people. Through surfing on net, various aspects can be explored such as music, news and more. Employment Services: Internet is meant for various services such as career seeking, online banking, purchasing movie and live match tickets, hotel reservations and guidance services in all aspects of life. These type of services are rarely available offline and expensive. E-Commerce: E-commerce is a common perception used for any type of commercial management or commerce deals which involve information transfer through out the globe using the Internet. It has developed into a fact linked with all varieties of shopping. E-Commerce has a wide variety of products in its numerous branches which ensures the availability and safe delivery of all the goods and services according to the customers demand

IV. Disadvantages of Internet: Theft of Private Information: On using the internet, we may face the critical risk of losing private information like credit card details, phone numbers, etc which can be used by some hackers or culprits who can result in a huge loss. Virus Threat: This is a program which interrupts the normal performance of P.C’s and laptops. This may even lead to hard disk crash.

Spamming: Spamming means transferring numerous unnecessary e-mails of no use and is just an obstacle in our work. Pornography: This is the major problem regarding the children’s psychological behaviour and the most severe issue not favouring the children to utilize the Internet Although the Internet has some disadvantages and its mishandling can be fatal, the advantages of the Internet overshadow its disadvantages.

V. Impact of Internet in Developed Nations: The information deliverance capability and the communications of Internet have penetrated many effective aspects in all the sectors of business and culture in the developed countries. Following are some sectors where the Internet technology has made a revolution in the developed countries. Agriculture: Internet technology has the potential in reducing the limitations of the farmer’s capability to obtain and handle the information not considering the location of farm (or) time of usage of the information. According to the survey of NASS (Statistics Service of National Agriculture) on the agriculture finances and land rights has revealed that 31 % of U.S farmers own the computers in which 13 % are coped with the Internet (2001 NASS) which raised to 50 % of farmers owning the computers with 43 % having the internet service. This statistics illustrates that Farmers have begin to clinch e-business and productively deal online. These services provided by the internet are usually cheaper compared to the conventional technologies. In addition to these Internet offers farmers with the latest ways to put up business enterprises including the prospects for purchasing inputs, selling farm goods and products and gaining new techniques required for agriculture development. Most of the agricultural groups, explorers and farm organizations are promoting the use of Internet for agriculture.

Health: Internet provides many opportunities in Health concerned practices in the developed countries. The patients (or) health associations can utilize the Internet for acquiring any medical information and also to intermingle with other patients, health concerned associations, organization, etc. Through Internet the access to information will authorize the patients and other health associations to execute improved decisions regarding health-linked issues and partake actively in health concerned practices (Ford, 2000; Berland et al., 2001). Further the Internet also chips in to the progress of latest ways regarding the health support, disease anticipation and curing the medical problems (Diepgen and Eysenbach, 1999). Internet Banking: The United States Federal Deposit Insurance Commission (FDIC) (2005) specified the uses of Internet in expanding more banks and economy by offering more services and products and also in developing communication with customers. U.S based Fargo is the leader in the enhancement of online banking services which started in 1990 and created a phenomenal development and was adopted by many countries. Internet banking according to FDIC (2005) has been a conventional industry and even some banks can provide online services devoid of customary bricks and mortar organizations. Internet banking offers customers with lots of benefits like Transaction speed, Ease of access, Customization of services, Any-Time availability, etc. Internet even provides the bankers with a prospect to stretch out to a new generation of clients and also in market expansion (Cipparone 2005). Online Education: Internet has significantly transformed the way to learn. Online education has created the opportunity for the students to learn online, to become masters in subjects, to enhance business skills, meditation, etc any where and any time. Collaboration, Availability, Efficiency, Interactivity are the prominent features of new media technology that the internet evolves (Inglis, Ling &Joosten, 2002). Due to Internet the courses are not time (or) place based which provides much better expediency for the people who work (or) involved in family commitments and spare a specific time for study. This facility allows a wide range of people to take on higher education courses. Internet has even got the phenomenal ability to create the similar Interactive learning

environment for both the students and the teacher who can communicate regarding the subject. This online method of communication provides deeper engagement, more reflection time and less inhibition and equal contribution (or) response from participants. Internet’s immense wealth of information adds depth to the researches and projects by allowing much better inclusion of diverse perspectives and also provides brilliant speed and countless resources to the students work. These are some of the sectors which have improved in the developed countries where the utilization of Internet is familiar these days.

VI. Economic Development Gap between Internet users and nonusers: The following are the world-wide stats of Internet users:

WORLD INTERNET USAGE AND POPULATION STATISTICS World Regions Africa

Population (2008 Est.)

Internet Users Internet Usage, % Population Usage Dec/31, 2000 Latest Data ( Penetration ) % of World

Usage Growth 2000-2008

955,206,348

4,514,400

51,065,630

5.3 %

3.5 %

1,031.2 %

3,776,181,949

114,304,000

578,538,257

15.3 %

39.5 %

406.1 %

Europe

800,401,065

105,096,093

384,633,765

48.1 %

26.3 %

266.0 %

Middle East

197,090,443

3,284,800

41,939,200

21.3 %

2.9 %

1,176.8 %

North America

337,167,248

108,096,800

248,241,969

73.6 %

17.0 %

129.6 %

Latin America/Caribbean

576,091,673

18,068,919

139,009,209

24.1 %

9.5 %

669.3 %

Asia

Oceania / Australia WORLD TOTAL

33,981,562

7,620,480

20,204,331

59.5 %

1.4 %

165.1 %

6,676,120,288

360,985,492

1,463,632,361

21.9 %

100.0 %

305.5 %

This Information state that vastly populated continents like Asia and Africa contribute to only 43% of the total Internet users where as Europe and Other Continents are significant in using the Internet sources. Only 5% of Africans and 15% Asians access the Internet for their users which is much less compared to the other continents. That implies that in most of the countries of Asia and Africa Internet is either not available (or) accessed which may reflect in the economic development gap between those countries and the other countries where Internet access in common. The main motives behind the development in any organization are Information,

Communication, etc which are possible in a convenient and easy way through Internet. While the countries like U.S, U.K, and many more is utilising Internet for development in many sectors of their organization like Education, Agriculture, Health, Banking, etc through information and communication which is a significant process. Many countries in Asia and Africa like India, Peru, Pakistan, etc don’t have this prospect. Innovations are essential in any field to get advancement. Digital Divide: “It deals with the economic gap between the digital and effective users and the non-users” (Wilson, 2004). This term epitomized by irregular access to ICT ( Information and Communication Technology) inputs and outputs such as IT specialists, scientists and mobile phones could result in a widening economic divide between Industrially organized (or) developed nations and the developing nations (Campbell, 2001). These outputs result in superior flow of information, ensuing high economic growth. Many Statistical data reveal that the durable productivity profits have been greatest in the ventures where ICT utilization is supreme (Bresnahan, 1999). On an average, Nations in which ICT usage is more extensive have accounted for the higher development in multi-factor productivity in late 90’s. Theoretically, ICT’s guides optimistic economic outcomes by making markets more evident through high access to information and more proficient through resulting decline in the operation costs. Thus the economic growth of a nation is precisely influenced by the Infrastructure of the Internet in that nation. Rich nations who are capable to afford for improved telecommunications can perform business globally thus contributing to nation’s GDP. A World Bank study states that about 50% of the difference between Africa’s built-up exports and about more than 50% of East Asia’s share is supposed to be caused due to poor telecommunications (World Bank, 2000). Also the facts for Zimbabwe and Botswana illustrate that the areas without telephone (or) Internet accessing has significantly less industrial activities. Similar report affirms that the areas with Better-quality resources and expert labour but with low telecommunication levels have fewer ‘Productive Ventures’ (Robinson, 2001).

These reports suggest that it is probable that nations with poor ICT accessing are resulting poorer in turn. A fine telecommunications infrastructure is both the input and outcome of the economic growth. The global achievement of the Internet also contributes to the assimilation of the concerns regarding the development of the society in the International arena. By relating the distinct social movements, new combinations can be formed by organizing the global civic society like those who are anxious about the World Trade Organization meetings like oppositions in Burma, connecting native groups in progressing societies with German greens, EU human rights organizations and to Australian trade unionists. This assurance in building global agencies more liable to recommended NGO’s which has raised the influence and networking capacity of human right activities, environmentalists, etc.

VII. Internet for the Developing Nations: Bill Clinton confidently challenged the associates of the APEC (Economic Cooperation of Asia-Pacific) forum to “revolve the digital division among the nations into digital opportunities”. His views summarized the perception of the Internet (according to the view of the various Global leaders) both as a growing problem and a growing source for the developing countries. Regrettably, the assortments of the developing countries intensified the digital division. Problems that range from the expenses of Infrastructures to the cultural and communication barriers infect the Internet development efforts. Similarly while various companies see the Internet as a rising economic and social opportunity, relatively its benefit is not clear to some local leaders whose more important concerns include food, electricity and vaccination. A survey of the students of Stanford University illustrates the benefits of Internet on the developing nations. On considering the diverging needs of every region and also the financial, cultural and the political feasibility of the Internet access they have made an analysis of activities for making the Internet accessible in Peru, Mozambique, India and some other developing nations. Almost all developing countries face the common challenges influencing their local political, economic and cultural conditions and they use similar strategies for their nation’s development such as some community based Internet access for ruling out the problem of rural communications.

India: Contemporary telecommunication technology has been in India in form of Telegraph. But today many Indian cities are sensibly above the technical standpoint though the development of IT is severely obstructed by some impractical tariff structures and deficiency in expansion of telecom system especially in rural areas. A good e.g. of broad development in selected cities is Mumbai which is the position for VSNL (Videsh Sanchar Nigam Ltd) where the national administration accounts for all the global communications. The Internet is also entrenched in Mumbai by setting up the first e-mail network in 1986, which under VSNL, grew into total viable Internet access. Today Mumbai holds the place for the most number of standard Internet connections. Peru: The nationwide telecommunications network of Peru was one of the least developed network in South America and an average time for the installation of a telephone line is around 3 years in the period of 1990’s. How ever the no-income organization RCP (Red Cientifica Peruana) has established about 27 public computers services (or) cabinas publicas all over Peru were the people can use this technology for email, browsing sites, developing web pages and also attending a variety of RCP technical classes. The RCP is maintained by about 90,000 paying associates and users and it is attempt to “accomplish some type of economic and social justice”. Currently there are 400,000 internet users throughout the nation. Internet provides the developing nations with a prospect to link the global “digital division”. However these countries face some important barriers such as political, infrastructural and social barriers to the victorious Internet development.

VIII. Conclusion: Internet plays a major role in global standards and is one of the significant innovations we have seen. This technology can result in widening the economic development gap between the developed nations (regular internet users) and the developing nations (rare or non users). However this technology can be used as a tool for economic development in the developing nations too by utilising its resources in many organizational sectors such as Education, Agriculture, Health, Medical, etc in a

significant procedure (methods were discussed above). Also it can be used as a tool for political, social and economic participation. So the nations should consider ICT as their development tool and make necessary adjustments such that every people come to know about this technology and its uses.

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