We are living in a time where the phenomenon exists of the digital divide. The fact that not everyone has access to and is not benefiting from digital technologies creates problems in the face of globalization. Therefore, solutions have to be thought of to narrow the gap between the people who have access to new technologies and those who have not. IGADD, the Investor Group against Digital Divide, collaborates with governments to share costs and risks of bringing broadband to everyone. This is an important initiative, which recognizes that action has to be taken now, before it’s too late.
So here’s what the world looks like today in terms of world internet penetration rates. As of December 2007, 71.1% of North America is connected to the internet, with Oceania/Australia coming in second with 57.1% and Europe third with 43.4%. On the opposite end there’s the Middle East with 17.4%, Asia with 13.7% and Africa with a mere 4.7%[1]. These are huge differences that not only show how big the digital divide is, but also that we have a lot of work to do!
So why is it important that we do something? First and foremost, globally we are driven by new technologies. Almost everything we do today is related somehow to the internet. We are being informed online about issues on our economy, legislation, and events across the world. Many of us are being educated online, and communicate online daily with clients, vendors, customers, colleagues, peers, friends, and family. Then there’s e-commerce, too, that plays a large part in our lives. Our world is getting smaller through new technologies, and if you’re not participating in this, you’re basically left out.
Luckily, statistics show that over the last several years, internet penetration has seen a large increase, even in the areas where penetration is low. In fact, of the three regions where penetration is the lowest, two of them show the largest growth globally; Africa with 882.7% and the Middle East with 920.2%! However, considering that these rates reflect the growth between 2000 and 2007, and that the penetration rates mentioned earlier reflect the situation as of December 2007, it still means that we are nowhere close to being done.
IGADD found that the digital divide is widening, rather than narrowing. So even if some regions in the world show an incredible growth with regard to access to the internet, if it’s widening it means that other regions have a continuous growth, as well, and it is hard to keep up with this growth for those places where internet is still scarce. Speaking of scarcity, IGADD believes that the best staging ground for the innovations needed to close the digital divide is in Indonesia, the fourth largest country in the world. It, for some reason, was excluded in Asia from the surge in technology, but actually has great potential due to its democratic society, its openness to foreign investment, and its source of intergovernmental investors that can help generate subsidies[2]. In Indonesia they plan to close the digital divide through a model that formulates business models, policies, and the like, needed to achieve a reduction of preexisting pricing structures and to commercialize a new line of products geared to low-income consumers in emerging markets. With this, investors are shown how to get a good return on their investments supporting ICT’s that serve the poor, and how alliances between them and governments and NGO’s benefit poverty-alleviation and market development agendas. This model was implemented in Thailand, which proved very successful and later led to other project including One Laptop per Child.
The digital divide is a problem, but luckily governments collaborate with investors and NGO’s to jointly work on this. Though it may take years for the effects to show, it is important that we do something now. Globalization affects everyone, and no one should be left out.