ICTs Enterprise and Development is a draft chapter for ICT4D edited by Tim Unwin. It was written with Mike Best. There is no doubting that ICTs have had a significant development impact. Micro- and macroeconomic approaches alike suggest that the rollout of ICTs has improved livelihoods and increased the productivity of businesses. At the same time, the ICT industry itself has been a significant source of profitable investment and employment. This is not to suggest that ICTs are a silver bullet for underdevelopment, however. Successful utilization of communications technologies –and perhaps in particular the Internet—takes a broader economic environment that is conducive to their exploitation. Similarly, ICT industries and ICT-enabled businesses need an investment climate that includes an educated workforce with appropriate technical skills, access to entrepreneurial finance and business talent, reliable infrastructure, a robust but reasonable regulatory environment, and so on. Information and Communications Technologies have a role to play in the development process, but they are one player in a large ensemble cast.
I wrote an earlier collaborative paper on the impact of ICTs on development with Richard Heeks. The Economics of ICTs and Global Inequality: Convergence or Divergence for Developing Countries? was published as an IDPM Working Paper. 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.
