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Old vs New Economy in Digital Divide

The document discusses the concept of the Digital Divide, which refers to the gap between those with effective access to digital technology and those without. It contrasts the old economy, characterized by industrialization and manual labor, with the new economy, which is driven by digital technology and knowledge-based services. The document also outlines steps to bridge the digital divide and highlights the benefits of the new economy.

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David Oloruntola
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128 views4 pages

Old vs New Economy in Digital Divide

The document discusses the concept of the Digital Divide, which refers to the gap between those with effective access to digital technology and those without. It contrasts the old economy, characterized by industrialization and manual labor, with the new economy, which is driven by digital technology and knowledge-based services. The document also outlines steps to bridge the digital divide and highlights the benefits of the new economy.

Uploaded by

David Oloruntola
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

WEEK ONE

CLASS: YEAR 9
TOPIC: DIGITAL DIVINE

The Concept of Digital Divide


The present age is referred to as the digital age. It is called a digital age because
the current global economy is driven by a digital device known as the computer.
The computer represents data and instructions in 0s and 1s called binary codes,
hence, it is a digital device. One of the reasons for inventing the computer is to
reduce the world to a global village. To achieve this, everyone must have access
to a computer (mobile phone, laptop, etc.) and internet connectivity. But this is
not the case. Some classes of people have effective access and coverage to
information and communication technologies and others have little or no access
at all. Hence, there is a digital gap or split between these two groups. This gap or
split is called Digital Divide

Definition of Digital Divide


The Digital divide refers to the gap between people with effective access to
digital and information technology and those with very limited or no access at all.
Digital Divide, or digital split, is a social issue referring to the differing amount of
information between those who have access to the Internet and those who do
not.
The term became popular among concerned parties, such as scholars,
policymakers, and advocacy groups, in the late 1990s.

Bridging the Digital Divide


Digital divide can be bridged. The basic steps would be to:
i. Provide digital access to those in the community who do not have it.
ii. Reduce the base price of ICT gadgets or subsidize them.
iii. Enlighten the masses on the importance of ICT in our current global economy.
iv. The government should lower or remove import duties on ICT goods and
services.

The Old Economy versus the New Economy


Economy is the system by which the wealth of a nation or country is made.
The Old Economy
The old economy is an economy that is centred on industrialization.
Industrialization is the development of industries in a country or region on a wide
scale. The wealth of the global economy was achieved by investing a large
amount of capital in physical plant facilities. Investments in information systems
were relatively small.

Features of the Old Economy

The old economy had the following characteristics.


 TIME CONSUMING: Operations were time consuming because of limited technology

 LABOUR BASE: Man power was much required because work was done manually
 MECHANICAL: The transport system was mechanical in old time because of the process it
passes through from stream engine to work

 CONSTRAINT OF TIME, SPACE AND DISTANCE: These occur because business


owners established their industries far from the city in order to avoid pollution of the atmosphere.
Sometimes these machines are large and require lots of space.
WEEK TWO AND THREE
CLASS: YEAR 9
TOPIC: DIGITAL DIVIDE II
The New Economy
The new economy, is also called the digital or knowledge economy. It is
characterized by a shift from traditional industries based on manufacturing and
physical resources to industries centred on information, technology, and
knowledge-based services.

Features of the New Economy

1. DIGITAL: Digital technology in the new economy is very fast and it


requires less time and man power.
2. TIME, DISTANCE AND SPACE IS IRRELEVANT: All because of the use of
latest digital equipment, like mobile phone, internet, laptop, e.t.c which
enables information go fast from one place to another, time and
distance have become quite irrelevant.
3. TECHNOLOGY DRIVEN: In the world today, technology plays a major
role in life of humanity. The brilliance of these technologies is that
communication is not limited. Hence it is in continuous revolution.
4. KNOWLEDGE BASED: In recent times labour is not too efficient in day
to day activities because digital technology is visible in almost every
field of our lives and it will continue to bring to light the areas of
limitation of the old economy. In the old economy, method of operation
was slow and time consuming

Limitations of Old Economy


The limitations of the old economy to the new economy are:

S/N OLD ECONOMY NEW ECONOMY


1. Slower and linear Fast and unpredictable
2. Local competition Global hyper competition
3. Automation and mechanization Information and communication technology
4. Limited learning skills required Continuous learning skills required
5. Capital intensive Knowledge and people capabilities
6. Covers small area Covers large area

Benefits of the New Economy


1. The size of the pieces of equipment was reduced.
2. Businesses can start with small capital.
3. Creates new jobs
4. Attract new investment and encourage export
5. Greater competition.

Common questions

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In the old economy, investment was primarily concentrated in large-scale physical plant facilities and capital-intensive operations . Contrastingly, the new economy emphasizes investments in information and communication technology and human capital, fostering businesses that can start with smaller capital and encourage knowledge and technological capabilities .

In the old economy, labor was heavily manual and unskilled due to the reliance on industrial and mechanical processes which were slow and labor-intensive . The new economy, however, prioritizes skilled labor that can adapt to continuous learning and the use of advanced digital technologies, reflecting a necessity for competencies in ICT and knowledge-based services .

Failing to address the digital divide can lead to increasing socio-economic disparities as those without access to digital tools and information are disadvantaged in education, job opportunities, and overall participation in the digital economy. This can widen the gap between different socio-economic groups and limit the potential for inclusive economic growth .

Strategies to bridge the digital divide include providing digital access to underserved communities, reducing or subsidizing the cost of ICT devices, raising awareness about the importance of ICT in the current economy, and lowering or eliminating import duties on ICT goods and services . These approaches can help make digital technologies more accessible to all socio-economic groups, thus narrowing the digital divide .

Digital technologies have transformed the old economy, characterized by industrialization and physical resources, into the new economy, focused on information, technology, and knowledge-based services . This shift has led to faster and more unpredictable business environments, global competition rather than local, an emphasis on ICT over mechanization, and continuous learning requirements due to rapid technological advancement .

In the new economy, businesses benefit from opportunities such as starting with small capital thanks to reduced equipment sizes, attracting new investments and encouraging exports, creating new jobs, and engaging in greater global competition. These opportunities were less feasible in the old economy due to its reliance on physical resources and localized, capital-intensive ventures .

The shift to a knowledge-based economy requires a workforce that is adaptable, skilled in ICT, and prepared for continuous learning, reducing the reliance on manual labor . This transformation enhances productivity and innovation but also necessitates significant investment in education and training to equip individuals with the required skills, potentially leading to challenges in re-skilled workers .

The limitations of the old economy, such as slower processes, local competition, and a mechanized focus, are addressed by the new economy through the implementation of fast and unpredictable digital technologies, global competition, and ICT . These advancements allow for continuous learning, reduced initial investments, and large coverage areas, significantly increasing efficiency and potential growth .

The digital divide refers to the gap between individuals or groups who have effective access to digital and information technology and those with very limited or no access at all . This divide impacts society by creating disparities in access to information, education, and digital services, which can exacerbate socio-economic inequalities and limit opportunities for those without access to these technologies .

In the new economy, advancements in digital equipment such as mobile phones, internet, and laptops have made time, distance, and space irrelevant by enabling rapid information exchange across the globe . This allows businesses to operate on a global scale, foster greater competitiveness, and offer services that were previously constrained by geographical limitations .

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