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Development Gateway's Special Coverage on ICT for Poverty Reduction & Economic Growth



From: 	opetrov@worldbank.org 
Subject: 	[DG ICT for Development] Special Coverage on ICT for 
Poverty Reduction & Economic Growth 
Date: 	Fri, 11 Apr 2003 20:57:36 -0400 
       
 


Dear Members of the ICT for Development community on the Gateway!
We have prepared for you a special coverage on the role of ICT for 
Poverty Reduction & Economic Growth.

This year Spring Meetings of the World Bank and IMF are taking place 
on April 12-13. They focus on the Millennium Development Goals, such 
as poverty reduction. According to World Bank President James 
Wolfensohn, "the purpose of these meetings is to retain attention on 
the other war which is going on, the war against poverty." The 
Meetings thus provide an opportune moment for us to highlight the 
role of information and communication technologies (ICT) in reducing 
poverty and promoting economic growth. Concern for that topic is, of 
course, the most important common denominator for the community we 
are building around this topic page.  

We, the 3276 members of this community (as of 11 April 2003), have 
jointly contributed over 4,000 resources to the meta-data base 
serving our community. A large number of these provide either micro- 
or macro-analyses relevant to this topic. Some are linked on this 
page. We have also added several new essays on the topic, as Features 
to this highlight.  

This Highlight is the first in our special series on the role of ICTs 
for Achieving Millennium Development Goals.  

Can ICTs fuel economic growth? Can ICTs help directly and 
significantly reduce poverty? Is there a conclusive evidence? Which 
specific projects or studies can provide a definitive answer? There 
are different opinions on this issue. Read and discuss the various 
perspectives that we are presenting to you in this special coverage:  


http://www.developmentgateway.org/ict/poverty  

John Daly, one of our editors, has provided an essay that places ICTs 
within the more general topic of technology innovation and its effect 
on economic growth. The essay seeks to provide an overview of macro-
economic approaches to the role of ICT in development, and micro-
analytic approaches to the issues of poverty reduction. The essay 
concludes that ICTs can contribute to economic growth when a 
country's policies and institutions are conducive to such growth and 
to technological innovation. The essay recognizes that the most wired 
nations have generally seen income distribution become more unequal, 
and suggests that ICTs will reduce poverty only in the presence of 
pro-poor policies and institutions.  

+ Read John's essay at: 
http://www.developmentgateway.org/node/133831/sdm/docview?docid=495495
  

A contrarian view, provided by Charles Kenny (World Bank) from a 
macro perspective, suggests potentially negative implications for the 
impact of the Internet on developing countries. Any particular, 
invented, technology is likely to have little impact, a view 
supported by empirical evidence of the effects of past information 
revolutions on least developed countries (LDCs). LDCs also appear ill-
prepared to benefit from the Internet related opportunities.  

+ Read Charles's paper at: 
http://www.developmentgateway.org/node/133831/sdm/blob?pid=3951  

Maria Fernanda Trujillo (Tulane University) looks at poverty and 
indicators of ICT infrastructure from the macro-level. She 
demonstrates the strong correlation between an index measuring the 
overall electrical, telecommunications, computer, and Internet 
infrastructure and the human development index (HDI). She further 
demonstrates the correlation between the rate of improvement of the 
HDI and a Core Information Technology Penetration Index. Hers is 
perhaps a more optimistic view.  

+ Read Maria's paper at: 
http://www.developmentgateway.org/node/133831/sdm/docview?docid=261236
  

Simone Cecchini (UN ECLAC)together with Christopher Scott focuses on 
poverty reduction. His concern is the concentration of ICT benefits 
among the urban, educated, and affluent, to the detriment of the 
rural poor. Using India as an example, he examines the access to 
communications technology, emphasizing the importance of radio, and 
the almost complete absence of the Internet in rural areas. Examples 
of Indian ICT projects illustrate economic and health service 
opportunities provided through technology, technology-based 
empowerment to deal better with government, and added security 
through technologically enhanced access to micro-finance. He goes on 
to consider how affordable, available telecommunications can be 
provided in rural areas. He concludes that successful ICT projects 
are characterized by local ownership and participation.  

+ Read Simone and Christopher's paper at: 
http://www.developmentgateway.org/node/133831/redir?item_id=307733&url
=%2 fdownload%2f181634%2fcecchini_scott_ICT%2epdf  

An essay by Cornelio Hopmann (Nicaragua DG) on ICT and poverty 
complements the others. His is a cautionary view. Analysis at the 
organizational level, based on his work in Nicaragua, casts doubts on 
some of the rosy predictions for e-commerce as a means of alleviating 
poverty. Emphasizing the fundamental differences between societies 
based on the written word and those based on the spoken word, Hopmann 
finds that radio and local TV are not only more affordable 
alternatives to the Internet, but often more culturally appropriate 
in developing countries. He tags "empowerment" as too often a 
buzzword. Only by major reengineering will businesses in developing 
countries really be able to benefit from ICTs.  

+ Read Cornelio's essay at: 
http://www.developmentgateway.org/node/133831/sdm/docview?docid=504285
  

We hope these "five easy pieces" will stimulate you to explore more 
fully the wealth of resources on ICT, social and economic 
development, and poverty reduction. Let us know what you think about 
the subject!  

+ Share your OPINION about the issues discussed in this Special! 
http://www.developmentgateway.org/node/133831/bboard/message?message_i
d=5 05292&forum_id=225450&mode=t  

+ Please contribute more knowledge resources on ICT, Poverty and 
Growth to our community's knowledge base: 
http://www.developmentgateway.org/ict/browser/?keyword_list=505328  

+ Credits: This special coverage was prepared by John Daly and other 
members of DG ICT for Development editorial and advisory team and 
edited by Pat Daly. Thanks to all who contributed! But special thanks 
go to John Daly who did the lion's share of work!  

+ To learn more about how to participate in our ICT for Development 
community click here: 
http://www.developmentgateway.org/node/133831/sdm/docview?docid=309249
  

Thank you!  

Oleg Petrov, Editor, ICT for Development, Development Gateway Tel.: 
202 473 8861 Fax: 202 614 1169 1818 H Street NW Washington DC 20433 
USA Email: opetrov@worldbank.org 
http://www.developmentgateway.org/ict  

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