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Digital Divide: Old vs. New Economy

The document discusses the digital divide and the transition from the old to the new economy. The digital divide refers to the gap between those who have access to technology like computers and the internet versus those who do not. There are global, social, and democratic divides. The old economy was industrial and mechanized, while the new economy is digital, knowledge-based, and less constrained by time and distance. The new economy provides benefits like lower business costs, more jobs, and greater technological literacy.

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119 views3 pages

Digital Divide: Old vs. New Economy

The document discusses the digital divide and the transition from the old to the new economy. The digital divide refers to the gap between those who have access to technology like computers and the internet versus those who do not. There are global, social, and democratic divides. The old economy was industrial and mechanized, while the new economy is digital, knowledge-based, and less constrained by time and distance. The new economy provides benefits like lower business costs, more jobs, and greater technological literacy.

Uploaded by

Maria Elizabeth
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Information Technology

Digital divide

Digital divide is a major concern of many citizens around the world. The digital divide is the idea that you
can separate people of the world into two distinct groups:

i. Those who have access to technology and


ii. Those who do not have access to technology.

In the definition, technology includes items such as telephones, television, computers and the internet.

Examples of situations where digital divide are evident include:

 People living in cities having access to more information than those living in rural areas.
 Countries which are developed and countries which are developing.
 The educated and the uneducated people.
 Socio-economic classes, i.e. the rich and poor.

Some people refer to the digital divide as the gap between the haves and the have-nots. Based on this,
we can have a grouping as shown in the table below:

Haves (have access to technology) Have-nots (do not have access to technology)
cities Rural areas
Educated people Uneducated people
More industrially developed nations Less industrially developed nations
Upper-income families Lower-income families

There are three aspects of the digital divide. These are:

i. Global Divide: This is the digital divide between industrialized and developing societies in
terms of internet and technological access, e.g. USA and Nigeria.
ii. Social Divide: This is the digital divide between those who have access to information and
those who do not within a given society, e.g. those in cities have more access to information
than those in the rural areas.
iii. Democratic Divide: This is the divide between those who do and those who do not use
internet resources to engage in political issues.

In order words, digital divide is considered as the disparity between the information-rich and
information-poor people. This disparity is due to several barriers such as: availability of technology,
socio-economic status, physical region, age, language and education.

The problem of digital divide is related in part to the availability of technology and therefore,
education must be provided to solve this problem. Digital divide is a gap that will not close unless
there is an initiative to seal the gap. To help narrow the gap, governments need to provide universal
access to information and communication technologies, initiate programs to educate people and
create community centres to help rural people.

Features of Old and New Economy

Our society has changed from an industrial to information society because of advances in
technology. The economy for every nation is changing rapidly from one based upon the production
of goods to one based on the provision of services. These services are related to various aspects of
information, i.e. its creation, manipulation, transfer and protection. The growth in the number of
computers and in their capacity for higher performance has led to the information age.

Old economy

During the industrial era, increases in productivity were achieved by investing large amounts of
capital in physical plant facilities. The investment in the office and I business information systems
was relatively small, this was the old economy.

Limitations

The old economy has to do with manual data processing. Based on this, the old economy had the
following characteristics:

1. Its processes were time consuming.


2. It requires a lot of labour.
3. It was mechanically driven.
4. It was constrained by space, time and distance.

The New Economy

Towards the end of the old era, the investment in computers increased, particularly as the transition
from manual data processing systems to computer data processing system took place. The transition
can be regarded as a shift from the old to the new economy.

The new economy is the era of computing. It is the period of electronic data processing. The
features of the new economy include:

1. It is digital.
2. It is not constrained by time, space and distance.
3. It is a knowledge-based system because it provides information-related occupations.

Benefits of the New Economy

In the new economy, computer technology has been advanced and computers have therefore
become smaller, cheaper and faster. Benefits of this advanced technology include:
a. As individual, we may acquire and use personal computers, mobile phones or multimedia game
machines.
b. As members of the society, our social existence have made us become more technologically-
literate. The simple activity of living requires us to use a greater number of information
technology devices. For example, we can shop online, request telephone banking services, etc.
c. Computers have become more portable and more reliable. Communications between these
computers have become faster, cheaper and less restrictive.

Benefits of the new economy therefore, include:

1. Low capital requirement to start businesses: the period of investing huge amount of capital on
large warehouses, big plant-facilities and machineries is gone.
2. Creation of new jobs.

Common questions

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The transition to an information society restructures global economies by prioritizing knowledge-based industries over traditional manufacturing. This shift results in increased demand for information services and reduces the emphasis on heavy capital investment in physical production facilities. Consequently, it spurs innovation, alters labor market dynamics towards technology-intensive jobs, and influences global trade patterns by emphasizing digital goods and services .

Governments can assist in closing the digital divide by providing universal access to information and communication technologies, initiating educational programs to improve digital literacy, and creating community centers to support rural populations. These steps help ensure that all citizens have equal opportunities to benefit from technology and access critical information .

The information age has transformed work by shifting from manual and mechanical labor to digital and information-based tasks. It has created new types of occupations and reduced the constraints of space, time, and distance on work. Additionally, increased computing capabilities have allowed for more remote work and diverse employment opportunities, reflecting a move towards a more flexible and technologically driven job market .

Education is crucial in addressing the digital divide as it helps individuals develop digital literacy and critical skills needed to utilize technology effectively. By incorporating technology-focused curricula and training, educational institutions can empower students from diverse backgrounds to bridge gaps in access and information literacy, leading to more equitable technology use across socio-economic classes .

The new economy offers significant benefits such as lower capital requirements for starting businesses, eliminating the need for large physical investments. It has also created new job opportunities in the information-related sectors. Society benefits from increased technological literacy as people integrate more IT devices into daily life, enhancing digital competency. Moreover, communication technologies have become faster, cheaper, and less restrictive .

The digital divide exacerbates socio-economic inequalities by creating disparities in information access between urban and rural areas, developed and developing countries, and among various socio-economic classes. This divide results in the 'haves' who can benefit from technology and information access, and the 'have-nots' who remain excluded. For instance, people in urban areas or developed countries have more opportunities for education and economic growth due to better access to technology, while those in rural or developing regions face limitations .

The old economy is characterized by manual data processing, being constrained by time, space, and distance, and a reliance on labor with mechanical drives. Conversely, the new economy is defined by digital and electronic data processing, not being constrained by time, space, and distance, and offers a knowledge-based system with information-related occupations .

The democratic divide refers to the gap between individuals who actively use internet resources to engage in political issues and those who do not. This divide has significant implications for political engagement, as it can lead to unequal representation and influence in democratic processes. Limited access or use of digital platforms may result in underrepresentation of certain demographics in political discourse and decision-making .

Communication advancements in the new economy significantly enhance individual productivity by allowing faster and more efficient information exchange, thus improving decision-making and workflow efficiency. Socially, these advancements facilitate global connectivity, breaking down barriers of distance and time, fostering more dynamic interactions and collaborations among individuals across the world, reshaping personal and professional relationships .

Barriers to overcoming the global digital divide include limited availability of technology, socio-economic disparities, geographical challenges, varying levels of education, and language differences. Addressing these barriers requires coordinated efforts to enhance technology infrastructure, provide affordable access, implement inclusive educational programs, and develop multilingual digital content. Such strategies can help bridge information gaps between industrialized and developing nations .

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