Term Paper: Phd Proposal Economic Development ICT and Poverty Reduction

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¶ … Economic Development, ICT and Poverty Reduction in Ethiopia

The objective of this work is to propose a research study on the link between economic development, information and communication technology (ICT) and poverty reduction, and specifically in the country of Ethiopia.

Every nation has embarked on economic development and usages of information and communication technology in socio-economic, health, education, and many other areas as well. This work seeks to research the existing indications that countries such as Ethiopia might not have an effective ICT policy thereby barring or hindering the development hoped for through ICT. India has effectively set out policy framework that supports the development of ICT. Specifically the country of Ethiopia is stated to have ranked "...158 out of 12 in the UNDP's 2001 Human Development Index, Index." (International Telecommunication Union, Geneva, Switzerland - July 2002) Furthermore, the telecommunications network in Ethiopia is stated to be "among the least developed in the world..." (Ibid) Less than 3% of the population in Ethiopia has a telephone line in the country of Ethiopia. Finally, telecommunication services in Ethiopia are greatly limited and restricted. (Ibid; paraphrased)


The questions this research study will seek to answer are those of: (1) What is the level of ICT usage in Ethopia?; (2) How can Ethiopia learn from developed countries? (3) Is there a link between economic development and the usage of ICT?; (4) Is there a link between poverty and digital gaps in countries? (5) How can Ethiopia best narrow the digital divide? (6) How does ICT help to reduce poverty?


The work of Ziadi and Kuofie (2006) entitled: "Impact of ICT on Organization in Tunsia" States the fact that in the face of changes that are economic and technological in nature companies become "more conscious of the importance of their structure, technologies and intellectual capital." These authors cite Zack (1999) in the statement of "This capital is considered as a not easily imitable competing weapon." Nonaka (1991) is cited in the statement of: "This is why the competitiveness of these companies is dependent on acquisition, creation, the localization and the renewal of the organizational knowledge." (Ziadi and Kuofie, 2006) Ziadi and Kuofie address ICT in relation to its potential agents of 'organizational change' pointing out that this was the "subject of great theoretical debates...in the fifties and sixties." (Ibid) the work of Kodakanchi, et al. (2006) entitled: "An Economic Development Model for it in Developing Countries" states that the world's economy has been "revolutionized" by information technology. According to Kodakanchi et al. (2006) Given the applicability of information, technology "has significantly affected the economy by providing information and development content on products and processes." In fact, this is proven by the "substantial growth in both the Labor Productivity (LP) and the Multi-Factor Productivity (MFP) in the United States following the year 1995 in that proof has been provided that "IT definitely steered the economical advancement of industrialized nations such as the U.S. And the United Kingdom (UK)." (Ibid) Kodakanchi et al. (2006) proposes "An Economic Development Model Based on it for Developing Countries (EDM-BITDC)." This model as has its' main components those of (1) Large Foreign Investments (LFIs); (2) Government policies and support for it, Social awareness of it importance, and Efficient use of it." (Kodakanchi, et al. 2006) it is related in the work of Kodakanchi et al. that information technology (it) has brought a great change to economics on a worldwide basis due to the globalization of the economy impact the productivity rates in the U.S.A. over the past twenty years. It is stated that "this can be attributed to the accelerating productivity growth and large investment in the it field." (Ibid) Ernst (2001a) is cited by Kodakanchi et. al. In the statement of: "The rapid development and diffusion of it has changed the dynamics of global competition." (Ibid) During the later part of the 90s decade labor and productivity growth for the G7 countries of Canada, France, Germany, Italy, Japan, UK, and the U.S. were analyzed and it was shown that these countries experienced economic growth of a considerably large nature as it was introduced in the economic policies. The following table lists the growth in labor in each of these countries and the contribution of it toward this growth.

Labor Productivity Growth and it Contribution

G7 Countries… [END OF PREVIEW]

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