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Internet Yields Uneven Dividends and May Widen Inequality, Report Says Internet Yields Uneven Dividends and May Widen Inequality, Report Says
(35 minutes later)
UNITED NATIONS — Can the Internet save the world?UNITED NATIONS — Can the Internet save the world?
In some places, it has helped curb corruption, encouraged more girls to go to school and enabled citizens to monitor election violence.In some places, it has helped curb corruption, encouraged more girls to go to school and enabled citizens to monitor election violence.
But according to a report issued Wednesday by the World Bank, the vast changes wrought by technology have not expanded economic opportunities or improved access to basic public services in ways that many had expected. Rather, the report warned darkly, Internet innovations stand to widen inequalities and even hasten the hollowing out of middle-class employment.But according to a report issued Wednesday by the World Bank, the vast changes wrought by technology have not expanded economic opportunities or improved access to basic public services in ways that many had expected. Rather, the report warned darkly, Internet innovations stand to widen inequalities and even hasten the hollowing out of middle-class employment.
“Digital technologies are spreading rapidly, but digital dividends — growth, jobs, and services — have lagged behind,” the bank said in a news release announcing the report. “Digital technologies are spreading rapidly, but digital dividends — growth, jobs and services — have lagged behind,” the bank said in a news release announcing the report.
Those who are already well-off and well-educated have been able to take advantage of the Internet economy, the report concluded pointedly, and despite the expansion of Internet access, 60 percent of humanity remains offline.Those who are already well-off and well-educated have been able to take advantage of the Internet economy, the report concluded pointedly, and despite the expansion of Internet access, 60 percent of humanity remains offline.
China has the largest number of Internet users, followed by the United States and India, according to the report.China has the largest number of Internet users, followed by the United States and India, according to the report.
The bank’s findings come at a time when the technology industry — which sometimes tends to see itself as the solver of the world’s greatest problems — has been rushing to expand Internet access through a variety of new means. Google, through its Project Loon, aims to use a constellation of balloons to beam down wireless signals to places that lack connectivity. Facebook has offered a limited sphere of the World Wide Web for users in some developing countries — and in turn, has come under intense criticism, especially in India.The bank’s findings come at a time when the technology industry — which sometimes tends to see itself as the solver of the world’s greatest problems — has been rushing to expand Internet access through a variety of new means. Google, through its Project Loon, aims to use a constellation of balloons to beam down wireless signals to places that lack connectivity. Facebook has offered a limited sphere of the World Wide Web for users in some developing countries — and in turn, has come under intense criticism, especially in India.
“Countries that are investing in both digital technology and its analog complements will reap significant dividends, while others are likely to fall behind” the report added. “Technology without a strong foundation risks creating divergent economic fortunes, higher inequality and an intrusive state.”“Countries that are investing in both digital technology and its analog complements will reap significant dividends, while others are likely to fall behind” the report added. “Technology without a strong foundation risks creating divergent economic fortunes, higher inequality and an intrusive state.”
How a society takes advantage of information technology depends on what kind of a society it is, the report concluded.How a society takes advantage of information technology depends on what kind of a society it is, the report concluded.
Women are discouraged from going online in some countries, the report found, and across the countries of South Asia, they were far less likely to own a mobile phone. Those who are illiterate — still 20 percent of the world’s population — cannot take advantage of the Internet at all; and in the developing world, the technology industry employs barely 1 percent of the work force. In rich countries, technology employs 3 to 5 percent of the work force, still a small fraction of total employment.Women are discouraged from going online in some countries, the report found, and across the countries of South Asia, they were far less likely to own a mobile phone. Those who are illiterate — still 20 percent of the world’s population — cannot take advantage of the Internet at all; and in the developing world, the technology industry employs barely 1 percent of the work force. In rich countries, technology employs 3 to 5 percent of the work force, still a small fraction of total employment.
According to the bank’s survey, more than half of all countries had privacy laws on the books, but only 51 of them were in the developing world.According to the bank’s survey, more than half of all countries had privacy laws on the books, but only 51 of them were in the developing world.
The bank, which says it has itself invested $12.6 billion in information technology projects, calls on countries to make the Internet “universal, affordable, open, and safe.” Yet it also takes pains to say that expanding access will not be enough for citizens to take advantage of the benefits. It also recommends enabling companies to compete, strengthening the skills of workers so they can compete for the new jobs, and making government institutions accountable. The bank, which says it has itself invested $12.6 billion in information technology projects, calls on countries to make the Internet “universal, affordable, open and safe.” Yet it also takes pains to say that expanding access will not be enough for citizens to take advantage of the benefits. It also recommends enabling companies to compete, strengthening the skills of workers so they can obtain the new jobs and making government institutions accountable.
“The triple complements — a favorable business climate, strong human capital, and good governance — will sound familiar — and they should because they are the foundation of economic development,” the report concluded. “The triple complements — a favorable business climate, strong human capital and good governance — will sound familiar — and they should because they are the foundation of economic development,” the report concluded.