One of the key by-products of this period of
rapid technological development and on-going information revolution is incessant change.
Change is occurring in nearly every area of human existence and affecting the underlying
structure of most types of organizations, including non-governmental and specialized
organizations. Many organizations are wrestling with their particular direction in this
period of Globalization.
There are some key limitations to research in
this area. The first is that its approach is broad in scope and highly interdisciplinary.
It covers a lot of material and includes work in the disciplines of economics, history,
sociology, political science, education and international relations. The second major
limitation - one engendered by its broad interdisciplinary approach - is that it is
addressed more to a general audience than a specific academic community.
Despite these limitations, the findings in this
paper should make a contribution to understanding of the opportunities and challenges for
Africa in an era shaped by Globalization and the information economy.
1.1
Globalization and the Information Economy
These two terms - Globalization and the
information economy - have become prevalent in academia, business circles, and even in the
popular media. However, they are often ill defined and may evoke quite different images.
Thus, it is important to start by discussing definitions of both Globalization and the
information economy, to help clarify understanding of the issues and use of the terms.
1.2 The Context: Globalization
The term "Globalization" has become one
of the most contested of recent times. It means very different things to different people.
Many people have a narrow definition that focuses primarily on financial integration, or
perhaps, going further, see it as a synonym for "Americanization." Drawing upon
theorists in numerous fields, the paper adopts a much more expansive and inclusive
definition to assist people in seeing the opportunities that emerge within Globalization
as well as the challenges. Following this argument, Globalization is defined as:
 |
An
on-going global phenomenon characterized by the intersection of presence and
absence, the interlacing of social events and social relations 'at a distance’, all
conditioned by local contextualities.
|
|
It
is identified through a globally interdependent set of social, economic,
political and cultural processes through which events, decisions, and activities in
different parts of the world combine to have significant consequences for individuals,
communities, enterprises and political structures in distant parts of the globe.
|
|
It
is facilitated by a multiplicity of linkages and interconnections that are
represented by disembedded institutions linking local practices with globalized
social relations that continue to transcend the nation-states (and by implication
societies) which make up the modern world-system.
|
Thus, Globalization is not just about the
deepening of financial markets, but includes a whole range of social, political, economic,
and cultural phenomena as well. The process is simultaneously driven and facilitated by
radical new developments in information and communications technologies (ICTs). It is not
technologically determined. The new technologies are not being developed coincidentally at
this particular period in history. In fact, they are the result of a significant increase
in investment in research and development of new information and communications
technologies and in the sciences that support them. Many companies are exploring a global
option for their processes of development, production, distribution, management, marketing
and finance.
In addition, the development of a Global
Information Infrastructure is even more important because of digitalization and
convergence. Convergence can be defined as the continued integration, inter alia,
of communications, computing and content which is now capable of being delivered using the
same medium of the Global Information Infrastructure (GII). Thus, it becomes possible for
us to look at what might be called "spheres and spaces" of Globalization, which
includes the Globalization of production, distribution, finance and culture.
1.3
Spheres and Spaces of Globalization
The Globalization of production is illustrated by
network enterprises and global strategic webs. These are networks of knowledge-based
enterprises that can collaborate with team members around the world in research and
development, management information systems, and global computer-aided manufacturing. One
result of this practice is the emergence of what some call the "world factory
phenomenon."
Closely related to the Globalization of
production is the Globalization of distribution. By seeing the world as a source of
potential niche markets, electronic commerce can support the global distribution of both
tangible and intangible products, but this is especially easy with knowledge-based
products and services. Intangible goods, such as e-books, software, and music can easily
be transported using the Internet and other global communications networks. Global
marketing is another by-product of the Globalization of distribution. A major advance in
physical transportation systems has facilitated a global system of transportation as well.
Both of these spheres of Globalization would
hardly be possible without the addition of the
Globalization of finance. New currency
instruments are emerging, and trading takes place on a global level at the speed of light.
The impact of this rapid-fire "casino economy" is the movement of finances
around the world.
Finally, the Globalization of culture is
represented by some the most famous cultural icons and superstars imaginable. The
widespread distribution of cultural commodities leads to the production of global dreams.
The Globalization of culture is promoting a certain perception of reality and the
"dream" of participating actively in a global consumerist society. While it is
critical for countries around the world to begin to confront the challenge of creating
content for global audiences, there is the on-going challenge of the simple
commodification of culture, without any real indigenous content development to contribute
to sustainable, socio-economic development.
While these four areas represent the spheres of
Globalization and appear to be overly theoretically determined, the processes of
Globalization must touch ground somewhere in "spaces of Globalization."
Nearly any place can become a "space of
Globalization," with the proper strategic direction and support. Some
cities/countries are already fully integrated into the spaces of flows (Castells, 1998),
while, for others, the potential exists for currently isolated spaces to become spaces of
Globalization.
Globalization spurs technology by intensifying
competition and speeding up technological diffusion through foreign direct investment.
Inexpensive and efficient communications networks allow companies to locate different
parts of their production process in different countries whilst maintaining close contact.
For example, with a World Bank loan, the Mauritian government set up a ‘Technology
Diffusion Scheme’ to encourage enterprises to locate in Mauritius and an informatics
park with the appropriate physical infrastructure facilities and high-speed satellite link
for international data transmission. Currently several foreign firms operate from the park
offering a major call center, data entry and transmission.
A similar example exists in Malaysia, where the
government has established a Multimedia Super Corridor (MSC) project to "help
companies of the world test the limits of technology and prepare themselves for the
future." Thus economic agents come to view interconnected regions in their totality:
ultimately a whole world market as a single, unified information system which some call
"the Global Option." This global option is spatially disarticulated; each of its
components can easily occur within a different geographical space. All of the components
of the production and distribution process (including R&D, testing, manufacturing,
advertising, and management information systems) can take place on multiple continents
simultaneously.
One of the reasons that the Information Economy
offers such promise to Africa is that each of these areas of Globalization is supported by
the application of electronic commerce. To illustrate this, we have introduced the concept
of the "spheres and spaces of Globalization. The spheres of Globalization include the
Globalization of production (global workplace), distribution (global shopping mall),
finance (global financial network) and culture (global cultural bazaar). Each of these
"spheres of Globalization" represents a different aspect of Globalization, and
each of them represents an aspect of electronic commerce.
[Go to top]
1.4
New Development Models: Increased polarization
One of the most important areas of impact
in this globalizing environment is the impact that this transformation is having on
national development objectives and paradigms. Many development agencies and donor
countries are reassessing what it means to pursue development during this particular
period. Trade is being seen increasingly as a more critical component of development than
aid. This means that the corresponding importance of the private sector in African
countries, especially of Small, Medium and Micro-Sized Enterprises (SMMEs), is increasing.
This also means the potential for radical new
developments in equality and in-equality (Wilson 1999; NTIA; UNDP). Jacques Attali has
asserted that the world is perhaps moving to a division, not between the "North"
and the "South", but between the "fast" and the "slow."
Those who are able to take advantage of these new technologies - the fast - exist in
nearly every country. The reverse is also true, those who are not able to take advantage
of these new technologies - the slow - exist in nearly every country in the world as well,
both developed and developing. Thus, as the "fast" begin to work more closely
together in global strategic webs and harness the potential of trading in these new
knowledge-based services, they will be drawn closer together. There is tremendous
potential for inequality within and between countries, the so-called "digital
divide" (NITA 1999). In terms of identity, many persons are developing life patterns
that render their identity as global nomads, elite knowledge workers constantly moving
around the world and spending most of their lives on airplanes, in hotel rooms and in
temporary offices (Wired 1998).
Though empirical evidence is slight,
informational activities have only begun to impact significantly on national accounts
within a relatively small coterie of industrialized nations. However, the lack of
empirical evidence must not blind us to the transformative power of this new economic
paradigm. Available evidence reveals that most leading industrialized nations are seeing
the rapid rise of the information sector as a contributor to national income. According to
the 1999 IDC/World Times Information Society Index, which tracks 55 countries that account
for 97% of the global GNP and 99% of IT expenditure, the info-gap between rich and poor
countries continues to widen. The 150 or so countries not included in the index, only
account for 3% of global GNP and less than half a per cent of all information technology
expenditures.
The diversity of applications used by the GII is
growing exponentially. Many of the leading conferences attempting to analyze the emergence
of the information society have identified numerous broad areas for content and
applications development. Table 1 below illustrates major Information Society-related
applications and their holistic nature.
Table 1. Global Information Society Applications Developed from Major
Conference Debates |
|
| Application |
Conference |
Application |
Conference |
| Education, Research and
Training |
G7, ISAD, GK, AISI |
Debt Management |
G7, ISAD, GK, AISI |
| Digital Libraries |
G7, ISAD, GK, AISI |
Tourism |
G7, ISAD, GK, AISI |
| Electronic Museums and
Galleries |
G7, ISAD, GK, AISI |
Health Care |
G7, ISAD, GK, AISI |
| Environment Management |
G7, ISAD, GK, AISI |
Legislation and Legal Services |
G7, ISAD, GK, AISI |
| Emergency Management |
G7, ISAD, GK, AISI |
Transportation of Goods and
People |
G7, ISAD, GK, AISI |
| SMMEs, Employment and
E-Commerce |
G7, ISAD, GK, AISI |
Business Development and Trade |
G7, ISAD, GK, AISI |
| Maritime Information |
G7, ISAD, GK, AISI |
Universal Access |
G7, ISAD, GK, AISI |
| Electronic Government Services |
G7, ISAD, GK, AISI |
Entertainment and Leisure |
G7, ISAD, GK, AISI |
|
Source: Author's database
By "Information Society," we mean a
specific form of social organization, where information generation, processing and
transmission are the fundamental sources of productivity and power. This term was perhaps
first coined in 1980 by Yoneji Masuda, who identified the information society as
"Post-Industrial Society." It has been expanded on subsequently by many
theorists who have helped to flesh out the contours of the concept substantially.
In a knowledge-based global information society,
it is possible that new aspects of equality and inequality may emerge. Several conferences
have recently been held which raise the issue of inequality in the Information Society
(Wilson, UNDP, NTIA). These perspectives raise important questions about the impact of the
Information Society on world order, identity, gender, and youth.
1.5
The Information and Knowledge Economy: Towards a Definition
This brief discussion of globalization has
helped to shape the overall context within which we will examine the information and
knowledge economy. These two terms have initiated a tremendous intellectual debate
focusing on the specific meaning of the terms and their value in explaining our particular
historical period. The terms 'information economy’ and ‘knowledge economy’
are often used interchangeably. In a very strict sense, the information economy concept
could refer to "the economic contributions of a limited number of industries"
while the knowledge economy could be seen as including "the entire industrial fabric
of the economy."
The authors acknowledge this rich debate, and
have decided to use the terms as nearly synonymous. We argue that the term information
economy refers to a new global economic structure, wherein the production of information
goods and services dominates wealth and job creation, and is underpinned by the use of
information and communications technologies (ICTs) and a global information
infrastructure. Defining information very broadly, we follow Shapiro and Varian in arguing
that "anything that can be digitized - encoded as a stream of bits - is information.
Using this approach, we argue that baseball scores, books, databases, magazines, movies,
music, stock quotes, and Web pages are all information goods. However, when we wish
to refer to the specific aggregation of economic enterprises engaged primarily in
producing and distributing information goods, we will use the term Information
Industries.
As a result, this paper encompasses both the
narrow definitional concerns of economists, but also takes into account the panoply of
technological innovations and structural economic changes that are increasingly affecting
Africa in the global economy. While this approach gives some clarity in definition, in
order to explore fully the challenges and opportunities presented by this new economy, we
must begin with a brief analysis of the underlying structural changes occurring in the
techno-economic paradigm of the global economy.
[Go to top]
1.6 Fundamental Transformation in the Global Economy
A "techno-economic paradigm" can be
understood as the generally accepted and applied framework of principles and agreements
(both formal and informal) about how technology is to be employed in support the
development objectives of the economy. The old techno-economic paradigm that supported the
global economy was called Fordism/Taylorism, and based on the principles articulated by
Henry Ford (moving assembly-line) and Frederick Taylor (scientific management). This
system reached its peak in the 1950s (the so-called "golden age" of capitalism)
and became dominated by the United States. The Fordist-Talorist development model was
based on three pillars.
Mass-production within a factory system was the
first pillar. Mass production increased productivity, but it did not offer a great deal of
diversity or choice to the consumer. The second pillar was the strict application of
Taylor’s management principles, which have become known as scientific management.
Within scientific management, there is a strict division in the workforce between mental
and physical labour (management and employees). Finally, the third pillar was the moving
assembly line, which led to increased alienation within the actual workforce. People who
were once craftspersons and able to work on a product from start to finish, were forced to
learn one component of a production process - to become human parts in a factory machine.
This techno-economic paradigm characterized
industrial economies as they rose to dominate the global economy in the 19th
and 20th centuries. During this period, African economies were primarily
relegated to the periphery of the world-system (through slavery, colonialism and other
mechanisms) and were forced to orient their economies towards the production of mostly
commodity products.
However, this current period of globalization has
witnessed the emergence of a new techno-economic paradigm. One that is, in fact, still
unfolding. This new techno-economic paradigm is characterized by a new mode of production,
one that Richard Kenney and Martin Florida call Innovation-Mediated Production (IMP).
Innovation-mediated production is knowledge intensive. Knowledge is increasingly embedded
within the production process itself. New technologies and manufacturing techniques, such
as computer Integrated Manufacturing (CIM) and Numerically Controlled Machines (NCMs),
help to create and strengthen this kind of networked economy environment. This new economy
thrives on knowledge and continuous innovation. It enhances the role of information within
the economic enterprise. It focuses on the manipulation of knowledge and symbolic
information that can be incorporated into both tangible and intangible goods and services.
Information is a non-rival good. This means that
it can be distributed infinitely without diminishing in any way the original value. An
information good is by definition intangible, immaterial. Information goods are not
inherently limited by geographical or national boundaries. In an information economy,
markets are no longer local or national, but instantaneously global. In terms of
employment, sustained growth relies on a continuous shift in resources from declining
industries in a process famously described by the Austrian economist Joseph Schumpeter as
'creative destruction'.
Table 2 is a summary depicting the
characteristics of the industrial economy versus the information economy. Within the
information economy, informational goods and services become one of the most dynamic and
profitable areas of the world economy.
Table 2.
Characteristics |
Industrial
Economy |
Information
Economy |
| Source of competitive
advantage |
Land, labour and capital |
Knowledge |
| Production mode |
Command and control
hierarchies |
Innovation-Mediated through
Services and networks |
| Scope |
Local/regional |
Global |
| Industry classification |
Distinct; multiple |
Diffused; architectures |
One major issue that contrasts the
knowledge economy from the industrial economy is that in many cases, the barriers to entry
are much lower. In the industrial economy, the most important factors of production were
land, labour and capital. Significant capital investment was required in order to acquire
land, build factories, employ expensive labour (mostly organized/unionized), build-up
inventories of industrial products, and transport them to their final destination. In the
new economy, information and knowledge become the most important factors of production.
This is not to assert that the other factors of production are not important; only that
they have been displaced as the most important by the primary factor of knowledge.
In addition, the increasing pace of technological
innovation has shortened product life cycles and made speed a crucial competitive weapon.
The widespread use of ICTs has extended the global reach of international economic agents
and led to a compression of time and space. Thus, an Internet year is widely regarded as
six months.
Whilst the macroeconomic impact of this powerful
wave of technology continues to be disputed, it is sensed intuitively as being more
important than generally suspected and to have major multiplier effects on economic
activity. So much so that it is argued that success in the global economy is predicated on
access to ICTs. Underpinning the importance of ICTs is digitalization. This has enabled
the convergence of different media leading to rapid, cost-effective and distortion-free
transmission of information. The defining trend is a shift in the perception of technology
from an enabler to an engine of change in its own right.
The multiplier and network characteristics of
ICTs mean that they are increasingly becoming a foundational technology; more and more
they represent the indispensable infrastructure for a whole range of industrial production
processes. They enable a multitude of activities to be carried out in different, cheaper
and more efficient ways and, thus, represent a new factor of production that is
underpinning the emergence of the information economy. This factor of production is seen
as a ‘chronic disturber of comparative advantage’ that lies at the center of the
emergence of a new techno-economic paradigm.
The preceding argument does not assert that it is
inexpensive to produce information. In fact, Shapiro and Varian argue that
"information is costly to produce but cheap to reproduce." Examples of
such economic reasoning abound. A report that is commissioned for hundreds of thousands of
dollars and requires months of research, writing, and editing, can be put onto the
Internet and distributed around the world basically for free. However, the primary
argument is that, while not free, the barriers to entry in this economy are lower than
entry into the information economy.
Regardless of the academic debates, one thing
that is reasonably clear is that both information and knowledge, in the widest sense, are
becoming fundamental components of socio-economic development. Globally, investment in
intangible goods and services is growing much more rapidly than investment in physical
good and services. Also, nations endowed with greater information and knowledge resources
are becoming more competitive.
[Go to top]
1.7
Governing the Information Economy: Policy and Regulatory Frameworks
The information economy is disciplinarian. Its
interdependent nature ensures that "bad" decisions are punished immediately; and
"good" decisions are rewarded with the same speed. With such a global,
interdependent economy, it is critical that appropriate mechanisms be developed at a
global level to "govern" the global information economy - a new global trading
regime.
As with the underlying techno-economic paradigm
shift, there were old and new components of the global trade regime. The old global trade
regime was based upon the General Agreement on Tariffs and Trade (GATT). Promoting
multilateral trade was one of the key principles of the GATT, with a focus on tangible
(physical) goods. The GATT was not an international organization in the proper sense of
the word. In fact, it was mostly an international secretariat charged with monitoring and
implementing the Agreement. It had fairly limited enforcement mechanisms, which allowed
"free-riders" to reap many of the benefits of the agreement, without bearing the
costs.
The new global trading regime is based upon the
GATT’s successor, the World Trade Organization (WTO). Market-access is one of the key
principles that defines the new trading regime. While the GATT was focused on tangible
goods, the WTO addresses both tangible goods and the intangible trade in services. The WTO
has been established as a formal international organization. This new organization has the
same international status as the World Bank and the other Bretton Woods institutions. Two
key differences between the old global trade regime, and the new one are the issues of
binding agreements and of dispute resolution (IIE 1998).
International harmonization of policy and
regulatory frameworks is an important objective to be pursued at global and regional
levels. Numerous policy issues have been identified as perhaps the most important to the
development of a global information economy and electronic commerce. These issues include:
(1) Information and Communications Infrastructure Development; (2) Customs and Taxation;
(3) Global Uniform Commercial Code; (4) Privacy and Consumer Protection; (5) Security and
Encryption; (6) Content Development and Regulation; (7) Technical Standards and
Interoperability; (8) Education and Employment; (9) Electronic Payment Systems and
Financial Institutions; and (10) Intellectual Property Protection. National and regional
strategies designed to promote opportunities within the information economy should include
policy analysis and reform in each of these areas.
[Go to top]
PART II
2.0 Exploring the Challenges and Opportunities for Africa in the Information
Economy
Part one of this paper attempted to
describe the current context of Globalization and to contribute to a processing of
defining the information economy. With the preceding discussion conditioning our
understanding, we will now explore some of the specific challenges and opportunities for
the African region presented by Globalization and the information economy. This discussion
of challenges and opportunities unfolds in two sections. Section one presents several key
challenges, which may hinder or prevent the region from reaching its full potential in the
information economy. Section two looks at some of the key strategic opportunities for
Africa in the era of Globalization and the information economy.
Globalization and the information economy present
unique opportunities for Africa. However, in order to capitalize on these opportunities,
tremendous challenges must first be overcome: (1) the development of information and
communications infrastructure; (2) human resources development and employment creation;
(3) the current African position in the world economy; and (4) insufficient legal and
regulatory frameworks and government strategy.
2.1 The Imperative for Information and Communications Infrastructure
Many analysts lament the problems of the
inequality being generated by the Internet, Globalization and the information society
(Wilson 1999; UNDP 1999). While many of the solutions to this challenge may differ, the
empirical realities are startling. According to the ITU, in 1997, teledensity (which
measures the number of telephones per 100 population) was 34.38 for Europe, and 30.38 for
the Americas; while it was only 6.02 for Asia, and a chilling 1.85 for Africa. Cellular
density (as a percentage of total telephone lines) is troubling as well. Celldensity for
the Americas is 6.92 (18.6); in Europe it is 4.57 (11.7%); while in Asia it is 1.35 (but
surprisingly 18.3%) and Africa sits at 0.17 (8.4%).
Numerous studies have shown that the benefits of
an information age will not accrue to countries with an inadequate National
Information and Communications Infrastructure (NICI). This NICI must be connected to and
inter-operable with the emerging Global Information Infrastructure (GII). The African
information and communications environment can be characterized by low telephone
penetration rates, slow network growth, antiquated systems, sub-optimal reinvestment of
profits, high pricing of private facilities, poor inter-city telephone links, and widely
varying national network infrastructures. There are various, and sometimes competing,
approaches to developing the NICI. Given that the access to information and communications
infrastructure is so abysmal in the region, achieving "universal access" to
information infrastructure is seen as the, sine qua non of widespread
socio-economic development in an era of Globalization and an information economy.
Since universal access is so critical, numerous
scholars, activists and development agencies have embraced the potential of Multi-Purpose
Community Information Centers (MPCICs or telecenters) to help achieve those goals.
Community information centers can serve as development vehicles in both developing and
developed countries and can contribute to closing the infrastructure gap within developing
countries. While still not completely defined, MPCICs may be defined as facilities in
urban, peri-urban, and rural areas which utilize shared information infrastructure to
provide access to a wide variety of public and private information and communication-based
goods and services, and which support local economic and social development objectives.
These facilities have a range of ownership and business models that may stimulate the
growth of the local telecommunications market. In these facilities, a focus on
replicability, sustainability and community ownership is critical.
In addition to the potential of MPCICs, a wide
variety of new and alternative infrastructure possibilities exists. Some of these forms of
alternative infrastructure include the following: (1) the new generation of Global Mobile
Personal Communications by Satellite (GMPCS) systems; (2) floating and flying platforms;
and (3) a multiplicity of local wireless solutions. These forms of infrastructure can
facilitate the proverbial technological "leapfrogging" and are perhaps the best
example of that often used and sometimes derided term. For example, developing countries,
in most cases, do not have the same fixed investment in copper cable and thus can skip
laying more of it in favour of going directly to fibre or another broadband solution.
Table 3.
The
Universal Service Obligations/Approaches of Selected Countries |
Developed
Countries |
Developing Countries |
Australia
"The USO is a legislative
requirement designed to ensure that every Australian citizen has access, on an equitable
basis, to a standard telephone service, pay-phone and carriage services" |
Ghana "…defined as a telephone in every locality of more than 500
people." |
Canada
"… to render reliable and affordable
telecommunications services of high quality accessible to Canadians in both
urban and rural areas in all regions of Canada…" |
Burkina Faso "… defined as a telephone within every 20
kilometers…." |
France
"Universal service for
telecommunications is the supply to all of a quality telephone service on all the
territory at an affordable price." |
South Africa "…defined as a telephone within a 30
minute traveling time…" |
United
States
"…to make available, so far as
possible, to all the people of the United States without discrimination on
the basis of race, colour, religion, national origin, or sex a rapid, efficient,
nation-wide, and world-wide wire and radio communication service with adequate facilities
at reasonable charges…" |
Funding Strategies
§ Cross Subsidization
§ Access Charge
§ Universal Service Fund
§ Financial Assistance
|
Even worse than indicated by the
statistics of teledensity and cell density discussed above, is that the infrastructure gap
goes beyond telecommunications into other areas critical for the Information Economy, in
particular, access to the Internet.
Massive investment is required – in
telecommunications alone, for example, investment totalling at least $50 billion would be
required to achieve a minimum teledensity of 5% or 5 lines per 100 inhabitants – in
SSA (ITU, 1998). This by far exceeds public sector financing capacity, making large-scale
private investment a necessity. Governments will therefore find it increasingly difficult
to continue to monopolize ICTs.
A natural consequence of the poor
telecommunications networks in the majority of African countries is the low level of
Internet usage. According to the ITU (1998), "an inhabitant of a high-income country
is four times more likely to have access to a television set than an inhabitant of a
low-income country; 25 times more likely to have access to a telephone; but almost 8,000
times more likely to have access to an Internet host computer".
Although individual countries exhibit differing
levels of computerization, the general shortcomings include:
|
Poor physical
facilities and human resources;
|
|
No well-established
centers dedicated to developing software;
|
|
Poor or
non-existent procedures for equipment procurement;
|
|
Inadequate
maintenance of hardware;
|
|
Limited IT
industrial base.
|
These problems are compounded by the high price
of equipment relative to the available resources. Many local suppliers are over-priced,
which increases the incentive for importing equipment, but obtaining local support often
then becomes the outstanding issue. As for the private computer market, it is dominated by
multinationals that generally ensure that they carry out the maintenance. The low level of
computer literacy evidenced in the majority of African countries means that even though
access may be available to users, their lack of experience can tie up the facility for
inordinate lengths of time. In addition, as users of the ‘end products of the
technology’, developing countries are not in a position either to establish
technological control or to engage in competitive R&D. The industrialized nations have
developed technologies that accord with the special characteristics of their societies.
Many of these information technology applications presuppose an advanced infrastructure,
and a highly skilled labour force.
[Go to top]
2.2 Human Resources Development: Education and Employment in a New Economy
The rapid development of human resources and
employment opportunities are also critical challenges facing Africa in the information
age.
The educational requirements for the information
economy are increasing in complexity. However, some national development programs are
still attempting to base their employment creation strategies on the perceived comparative
advantage that comes from access to large numbers of cheap unskilled labour. The reality
is that national and regional strategies should focus on enhancing and attracting a core
of knowledge workers operating within the Africa region. This should be accomplished
through both national and regional education and training and through incentives to
attract the Africa Diaspora and other skilled knowledge workers into the region. However,
process must also develop strategies to minimize the impact on the components of the
population whose educational level and technical skills do not fit (and may never fit) the
requirements of the new techno-economic paradigm of the information economy.
Low levels of education and literacy are
crippling the ability of Africans to exploit the new generation of ICTs. Limited use of
English has been cited by many as a constraint. Although increasingly multilingual, the
Internet is still largely an English-language medium. It may be that the long-term
deployment and exploitation of the Internet by developing countries will depend less on
technology and costs and more on their capacities to educate their young populations in
basic literacy, a prerequisite for using text-based content.
The impact of the information economy on
employment is still unclear. Some economists, such as Schumpeter and Kondratieff, argue
that technological change drives economic growth through a process of creative
destruction, with new technologies inducing novel, more productive investments, but at the
same time destroying the economic feasibility of earlier ones. Thus any impact on
employment is dependent on the nature of the jobs created, and the extent to which jobs
are replaced.
In e-commerce, for example, employment has mostly
been created in Internet service providers. Service industries such as airlines and
insurance that involve labour-intensive tasks are taking advantage of the fact that modern
telecommunication networks allow them to locate those activities in lower wage regions.
Software is the most dynamic industry in terms of employment growth. Miller & Mitter
(1998) note that there are opportunities for growth in developing countries if they
participate in the global software market. The current economics of software production,
especially its low capital and high labour intensity is particularly attractive from the
point of view of low wage, labour surplus economies. Migration towards higher-value
software professional work can be achieved through capitalizing on the opportunities for
knowledge sharing and learning in existing trading relationships between firms in
developing and developed countries.
However employment generation is predicated on
Africa's need to create a comparative advantage of cheap skilled labour. Even if this is
achieved regions and firms are increasingly attracting talent from around the world, while
leaving aside a significant fraction of their own population whose educational level and
cultural/technical skills do not fit the requirements of the new production system. Africa
is already suffering from a severe brain drain that begins with inadequate national
universities. In a recent ECA conference on ‘The Challenges of Financing Development
in Africa’ in Addis Ababa (May 6-8, 1998), Africa finance and economic development
ministers expressed their concern about the brain drain. More than 30,000 Africans with
PhDs now live outside the continent. If there is no employment for them, then the
governments may not see the need for increasing enrolments at the higher education
institutions. African scholars have the capability to contribute to the global knowledge
base. If they are provided with the necessary tools, they will make their contribution
from Africa and enhance the quality of life within the continent. For example, Mauritius
has a highly skilled and educated workforce, and liberalization of various sectors has
been given priority. So even if the clothing industry is on the decline, Mauritius is able
to contribute in the new niche markets enabled by the information economy, for example, in
e-commerce.
The key to Mauritius success has been the
collaboration between the government and the private sector in IT application. For
example, they set up a trade facilitation environment in order to
replace manual processes and physical handling of
paper by electronic submission of trade related documents. Secondly, they developed and
implemented a depository, clearing and settlement system for their stock exchange,
ensuring that their operational procedures could match up to international standards (Lim
Fat, 1998). Mauritian firms now export skills to the rest of Africa.
The only asset of the poorest parts of the world
is the cheapness of their labour in an era in which there is a demand for cheap and skilled
labour. But to leverage Africa’s comparative advantage in labour there is an urgent
need to upgrade the skill sets of its workers. At the same time in order to benefit from
such lucrative industries as outsourcing, the existence of world class information
infrastructures is critical. Brain drain could be viewed positively because it indicates
the value of the local human capital. According to Kim (1999), a liberal policy is needed
that allows the local graduates to seek employment overseas. This will enable them to
sharpen their skills and keep up-to-date with developments in their areas of interest
until their local economies are ready to reabsorb them. This is what happened in Korea,
when at one time 96.7% of their scientists and 87.7% of their engineers were based abroad.
When the economy improved and with full government support and incentives they were able
to reverse this brain drain (since the mid-1980s), which has now become a major source of
new knowledge in the country.
2.3 The African Economic Environment and the Global Economy
Africa has witnessed a substantial deterioration
in its position within the global economy. Moreover the exports on which Africa is so
dependent are confined to primary commodities, which account for over 90% of all exports.
Africa's traditional exports have been increasingly displaced by new and relatively
efficient producers from other regions. The dependence on agriculture, for example, is
part of a larger historical phenomenon engineered after the partition of Africa. Ikeme
(1999) writes that "a luxury beverage and cocktail economy was thus created",
with Kenya producing coffee and tropical fruit, Ghana cocoa, Senegal groundnuts, Ivory
Coast bananas, and Sudan cotton for the European markets. Over the last 25 years the
region's world market share in cocoa beans fell from 80% to 67%; in coffee from 26% to 15%
and in cotton from 30% to 16%. The loss of Africa's markets in cocoa beans and coffee was
mainly to Asian countries and in cotton to Eastern European countries (African Development
Report, 1995). Nor has the fall in the revenues traditionally garnered from agriculture
been offset by gains in other sectors. In fact the reverse is true. The ratio of
manufactured goods to total exports for SSA, fell from 7.8% to 5.9% from 1965 to1985,
while it rose from 28.3% to 58.5% in South Asia.
One of the major repercussions of endemic
macreconomic and political instability on the continent has been to worsen the competitive
environment for the African private sector. The cause of the poor export performance of
African countries are multidimensional and largely attributed to non-price factors on the
demand side. Factors include lack of information on markets and prices, poor delivery
mechanisms, the extent and efficiency of distribution network, quality of customer
service, and the quality and level of product sophistication and reliability. The
structural weaknesses of African economies, combined with economic mismanagement and
irresponsible lending on the part of industrialized nations has now resulted in a
situation where total external debt as a percentage of the value of exports has risen from
97% to 324% from 1980 to 1990 (IBRD, 1996).
With the emergence of Globalization and the
movement towards an information economy heavily dependent on knowledge-based products and
services, Africa has witnessed its already tenuous position in the global economy
deteriorate even further. By almost any measure, Africa's current position in the world
economy is near the bottom. Moreover the exports, on which Africa is so dependent, are
confined mostly to primary commodities. These commodities account for over 90% of all
African exports. Traditional exports from Africa are being displaced increasingly by new
and relatively efficient products from other regions.
However, in 1996-97 this position began to
change. According to the World Economic and Social Survey, 1997, African economies
experienced a rising GDP per capita, with at least 22 countries reaching a GDP growth rate
of 5 percent or higher, and 11 countries reaching a rate of 6 per cent or higher in 1996.
Also, inflation has been declining in many countries in the region since 1995.
Unfortunately, the global financial crises of 1998-99 produced a global economic slowdown
that also affected African economies. Furthermore, even with such impressive growth, even
higher rates are required to begin to adequately address the overwhelming poverty and
unemployment found in the region.
Policy and strategy networks for the African
private sector are mostly weak and ineffective in influencing the important debates on
world trade. These networks will have to be strengthened in order for the African private
sector to enhance its competitiveness and place in the world economy.
Existing and new markets are opening up as
countries liberalize their trade in goods and services under the auspices of the WTO, and
other forms of regional trading blocks and business become globalized. While offering
better exporting opportunities, these developments have changed the requirements and rules
of competition. It is imperative that African SMMEs adopt a global outlook and form
strategic partnerships, both domestically and in foreign markets.
Foreign investment has been, and continues to be
the lifeblood of many a developing country and remains an important mechanism for
technology transfer and employment generation. Despite a plethora of investment
opportunities, African countries continue to have difficulties in attracting foreign
investment from more than a handful of countries. The continent is also facing intense
competition from a host of developing and transitional economies that, with more reliable
information infrastructures and electronic commerce capabilities, are more attractive to
potential investors. As firms strive to create strategic alliances and
business-to-business electronic commerce becomes the norm, trading outside such
hermetically sealed relationships will be viewed as uneconomical.
Advances in biotechnology, the next major
revolution, and material science are leading to synthetic substitutes for primary products
such as vanilla and sugar. Products such as cocoa and palm oil are also under attack as
Western firms undertake genetic research to develop outright synthetic substitutes or
varieties that can be produced in their laboratories or non-traditional environments. The
concern, therefore, should be how African farmers and firms can take advantage of global
opportunities and develop the necessary skills to compete. As new technologies, new
production systems, and the organization of international trade eliminate traditional
agriculture, are rural people destined to be painfully absorbed into the informal economy
of already overcrowded urban centers?
In addition to the substitution effect,
technological innovation is also leading to efficiency improvements in the use of raw
materials. The result is a long-term trend of dematerialization in industrial production.
This declining material intensity in production represents a new barrier to Africa's full
participation in the world economy, as most African countries are exporters of primary
commodities. In the current era of Globalization and international trade agreements, the
policy space has been severely limited, as African countries must comply with new rules.
Unlike the East Asian tigers in the 1970s and 1980s, African countries cannot implement
strategic trade policy, which promotes export while protecting domestic firms from intense
foreign competition in the local market.
[Go to top]
2.4 National and Regional Legal and Regulatory Frameworks
With no real national boundaries, the legal
implications of the Internet and the World Wide Web are immense. Thorny issues such as
intellectual property protection, privacy, security, data protection, electronic payments
and currency, and wide-ranging consumer protection issues have to be addressed in national
legislation and regional strategies; each with tremendous social and economic
implications. On one hand, appropriate legal and regulatory infrastructure will enhance a
country's ability to attract investment and can help to stimulate local participation in
the information economy. On the other hand, an inappropriate legal and regulatory
environment can disempower local entrepreneurs and cause international investors to look
to other countries.
Africa can not afford wasted efforts. It must
work as collaboratively as possible with a multiplicity of actors at national, regional
and global levels. NICI plans, as promoted by the Economic Commission for Africa, can
serve as vehicles for integrating the efforts of these disparate actors. Obviously, where
possible, these NICI plans should be integrated into sub-regional and regional strategic
planning.
The ability of government to develop effective
policies depends on their capacity to interpret information relevant to the economic,
social, cultural and political environment. A strong information infrastructure would
allow access to information, planning and decision-making. However such infrastructures
are vestigial in SSA. The state in the majority of SSA countries has witnessed an
unprecedented reduction in its ability to act. Most infrastructure expenditures in
developing countries are publicly financed. But several factors, namely macroeconomic
instability and growing investment requirements, have shown that public finance is
volatile at best, and in many countries, rarely meets the minimum required to maintain
adequate infrastructure provision. Undermined by the conditionality of structural
adjustment programmes, exploited through debt peonage, and weakened by political conflict,
the majority of governments are in crisis management mode, prioritizing short-term
economic and political survival over long-term dynamics. This is especially true of the
education sector which is crucial for the human resources needed in the information
economy.
In the case of the information infrastructure,
international actors and structures play an important role throughout the process. Key
players, such as lending institutions, are pressing governments to reform their
telecommunications sectors (Moussa and Schware, 1992; Newsum, 1994; Roche and Blaine,
1996). In more advanced stages of the process, the external actors are influencing the
sector’s final regulatory framework and determining the degree of openness of
domestic markets. However this raises a number of questions. What is the balance between
ownership and control of information infrastructure, and access and impact? Is having a
telecommunications infrastructure owned by a foreign company better than having none at
all? How does a country with little domestic expertise in software acquire appropriate
software?
There is no indication that the current
restrictive business practices, constraints on the ownership of knowledge, and rules on
intellectual property rights that are adverse to developing country interests, are
radically changing. And in this case, there are no realistic prospects that the relations
between ICT-rich and ICT-poor countries will change in the near future. Thus, it is an
illusion to think that ICT-poor countries can ‘catch up’ or keep pace with
advances in the most technologically advanced societies. In the advanced industrialized
countries the rate of technological development is very high and is supported by enormous
R&D resources. This is certainly not to say that poor countries should not try to
upgrade their ICT systems. But they should not do so in the unrealistic expectation that
those who are ahead will wait for them.
If the trend for government indifference and
inaction on the issue of Africa in the information economy continues, the constraints
mentioned above represent unassailable barriers. In as much as the new information driven
global economy presents tremendous opportunities for African countries, in the absence of
an effective and consistent public policy, it also poses major challenges.
The Industrial Revolution brought great economic
and social benefit, but it also brought about massive dislocations of people, increased
industrial pollution, child labour and unsafe work environments. Societies were often slow
in responding to these negative side effects. Similarly, the information economy may bring
potential invasions of privacy, easier access by children to pornographic and violent
materials, more sophisticated and far-reaching criminal activity and a host of other as
yet unknown problems.
Governments must conform to a narrow set of
criteria that are adjudged to increase the likelihood of healthy returns for international
investors. Thus countries are discouraged from investing in social programmes as these are
seen as being inflationary. Unfortunately these neoliberal economic principles are often
discordant with the achievement of national development objectives and the straightjacket
of international finance criteria reduces the economic manoeuvrability of the
developmental state.
The best placed to reap the benefits of the
information economy are invariably those multinational corporations that can invest in
high cost research and who have access to global distribution channels. This has serious
implications for government control over their economic behaviour. One of Africa’s
continuing problems is that it does not know what it does not know. Ignorance over the
continent’s natural resource endowments combined with the increasing sophistication
of such technologies as remote sensing mean that better informed players are patenting
Africa’s resources and profiting from Africa’s ignorance.
The global intellectual property rights
regime is at the behest of such corporations and only serves to undermine the efforts of
developing countries to safeguard their heritage. In the information economy, Intellectual
Property Rights (IPR), such as patents and copyrights are the primary unit of value
(Brown, 1998). There is a need to balance strong protection for IPR holders with low cost,
certain and ready access to protected materials for potential users and content developers
(ITT, 1997). The high cost of intellectual property works render African countries unable
to afford access.
With no national boundaries, the legal
implications of the Internet are immense. Copyright, privacy and accountability have to be
weighed against the speed, access and freedom of expression; monitoring and enforcement
have proved difficult. There are many examples of copyright infringement on the Internet,
especially evident in the economies where e-commerce has taken root. Africa may not have
reached this stage but it is important to highlight the problems so they can be addressed
by developers and policymakers, who may make decisions out of ignorance or under the
guidance of archaic laws. WIPO is concerned that knowledge of copyright and intellectual
property law is built into policies of the developing world, so that the concept and
utilization of intellectual property is entrenched in their economies and the inequalities
that have been manifested in the international knowledge system may either be reduced or
addressed.
[Go to top]
2.5 Opportunities for Africa in the Information Economy
Without a doubt, the challenges facing Africa in
the information economy are daunting. However, given the fundamental shift in the nature
of the global economy, it is critical that strategies for African development be shaped
within this reality of Globalization and the information economy. Perez (1985) suggests
that the shift to the information economy opens new 'windows of opportunity' for
latecomers. The transition of the global economy to one based on knowledge and information
presents numerous opportunities for developing countries that are willing to address them
strategically. African and other developing countries can move to strategically develop
competitive advantages within this new economy, based on their own specific histories and
material conditions.
This is partly because the new technologies allow
‘leapfrogging’ for some countries that do not carry the inertia of the previous
industrial structure. It is argued that African countries are uniquely placed to benefit
from the falling costs and increasing utility of cutting edge technologies without having
to bear the high costs of discarding older legacy systems.
In order for these opportunities to be realized,
it is clear that parts of Africa must move quickly to become what Saskia Sassen and Keven
Cox call "spaces" of Globalization. To become spaces of Globalization, specific
geographic areas must be re-oriented to be able to more fully take advantage of the
information economy through the development of information infrastructure and knowledge
workers in their countries. This re-orientation includes developing a comprehensive
strategic vision that harnesses the potential of Globalization and the information economy
within that geographic space. Of the numerous potential applications emerging from the
global information economy, some have greater strategic importance for Africa than others,
and may have more significant impact on socio-economic development. Applications of
potential strategic importance include the following: (1) content development; (2)
electronic commerce and SMMEs (3) education, learning and research; (4) rural development.
In each of these areas, very specific opportunities and niche markets exist for Africa and
the developing countries. Each of these areas will now be reviewed in turn.
2.6
Creating Content: The Strategic Importance of Information Industries
The information economy is first and foremost
about information. A wide range of new technologies and new techniques engendered by the
information revolution allow for the production and distribution of new knowledge and the
dissemination of data, information and knowledge. Some of these technologies include the
Internet, the World Wide Web, CD-ROM, digital audio, video and other forms of new media.
The information economy provides African
countries with an historic opportunity to create new information industries and to
participate in global strategic partnerships of other information enterprises. Given the
richness and diversity of African culture, specific information industries built around
strategies to harness these technologies and capitalize on this cultural richness could
prove to be quite economically beneficial.
2.7
New Industries
As an enabler, the information economy offers
African countries opportunities in new information industries such as software
development, services and information processing. Generally in Africa, increased demand
for local software appropriate to local needs and their production happens on a low scale.
In South Africa, the market share in locally developed software is growing (Hodge and
Miller, 1996) but the packaged software (systems software and generic application
software) industry is dominated by imports as users prefer to stick to international
standards. The same applies to Tanzania and Burkina Faso where all software is imported
and where there has been no attempt to do otherwise (Wangwe et.al., 1996; Bamogo et.al.
1996). In Mauritius, concerted government efforts resulted in a planning unit and state
owned organizations for software development and training (Lim Fat, 1998). The country now
exports software services such as Oracle software development and implementation services.
2.8 Content development
Another area in which Africa can excel is the
commercial exploitation of its rich traditional or tacit knowledge. "Africans need to
have the confidence to recognize and build upon the fact that they are the world's experts
in a wide variety of knowledge domains" (Wilson, 1998). The fact that in most cases
this knowledge has not been codified, and is largely informal and regional in its
application has undermined its perceived value and legitimacy. Aspects include ecology,
wildlife behaviour and traditional healing methods.
Competitive distribution of content will require
technical and creative staff and direct marketing positions. Africans must participate in
the production of information because their contribution is critical to maintaining the
quality and relevance of information from the region. For example, Ghanaians world-wide
have established marketable websites selling a variety of products and promoting their
culture in the process. This has indirectly contributed to their tourist industry and
opened up opportunities for investment and partnerships from world-wide sources.
Therefore, the information economy will enable Africans to use their knowledge-based
skills and culture to create new employment opportunities and ultimately to rely less on a
development model based on resource exploitation. Information that could be useful in
Africa can be divided in three general areas:
|
Supply: availability of sources
of finance, labour, raw materials and technology; |
|
Demand: market opportunities,
prices, size of the markets, quality |
|
Environmental factors:
Competitors, legislation etc. |
[adapted from Heeks, 1999:6]
[Go to top]
2.9
Electronic Commerce and SMMEs
One of the most important aspects of the
information economy is the rise and incredible growth of electronic commerce (e-commerce).
E-commerce is transforming the global marketplace, and its impact is being felt in diverse
areas such as production, distribution, finance, culture and the reengineering of
government. These forms of "business-to-consumer" e-commerce will be perhaps
more critical to the developing economies than in the developed world. Very small
entrepreneurs, particularly in the cultural industries, will be able to take advantage of
global niche markets of much greater size than their local markets.
Through the development of the complex mix of
skills required for e-commerce, African entrepreneurs and businesses will be better
positioned to participate in global value chains for knowledge-based enterprises. These
forms of "business-to-business" e-commerce will provide opportunities for
competent African businesses to increase their markets as well, far beyond their national
borders.
The African private sector, which consists in
large part of small, medium, and micro-sized (SMMEs) and the informal sector, is widely
regarded as a possible engine of growth in the information economy. SMMEs usually have a
tremendous flexibility and are able to produce new products quite quickly. SMMEs can
broaden their markets through co-operative arrangements that disseminate information on
local or regional products and services. The success of these efforts depends on the
ability of locally based trade and professional associations, chambers of commerce and
grass roots organizations to develop demand-driven mechanisms for delivering these
services. Potential opportunities within the information economy include the formation of
strategic alliances with strong foreign distributors as a way of accessing new markets,
while at the same time improving the quality of their products.
The transition of the global economy to one based
on knowledge and information presents numerous opportunities for developing countries that
are willing to address them strategically. African and other developing countries can move
to strategically develop competitive advantages within this new economy, based on their
own specific histories and material conditions.
Given the richness and diversity of African
culture, specific information industries built around strategies to capitalize on this
culture could prove to be quite economically beneficial. Content development is critical,
especially as the issue of bandwidth availability becomes less of an issue. Very small
entrepreneurs, particularly in the cultural industries, will be able to take advantage of
much larger niche markets globally by using e-commerce to communicate with consumers.
Through this form of content development, as well
as other knowledge-based skills development, African entrepreneurs and businesses will
also be more likely to be able to participate in global value chains.
"Business-to-business" e-commerce will provide opportunities for competent
African businesses to increase their markets as well, beyond their national borders.
Employment creation in most developing countries
is seen as a critical development issue. For example, in South Africa, unemployment
amongst young people is around 40%. Through promoting the development of e-businesses and
supporting the requisite educational and information infrastructure, governments will be
making significant strides towards addressing this pressing issue.
E-commerce opens up opportunities for involvement
in global, virtual communities of interest which can range from R&D teams to academic
courses (see Cogburn 1999). In order for these opportunities to be realized, it is clear
that parts of Africa must more quickly become spaces of Globalization (Sassen 1998,
Cogburn 1999). They must orient themselves to take advantage of the information economy
through the development of information infrastructure and knowledge in their countries.
It is also imperative that the realignment of the
country's strategy occurs from the highest political and strategic levels (AISI 1996;
Wilson 1999). Countries should be developing National Information and Communications
Infrastructure (NICI) policy plans and frameworks. These NICI plans must include a
reassessment of the countries legal and regulatory regime, not only to ensure that it is
in line with the countries global commitments (e.g. to the WTO), but that they also
encourage the investment of private resources in to NII development. Issues that have to
be address within a NICI plan include the following: information and communications
infrastructure development; customs and taxation; global uniform commercial code; privacy
and consumer protection; security and encryption; content development and regulation;
technical standards and interoperability; education and employment; electronic payment
systems and financial institutions; and intellectual property protection.
Electronic commerce also provides other
opportunities which African countries can exploit. Electronic commerce is forecast to grow
significantly, offering huge potential to small and micro enterprises (SMMEs) in Africa
willing to sell their goods internationally. The application of ICTs can also make a
significant contribution to the improvement of customs revenues in context of tariff
reduction; helping to reduce corruption and to simplify trade.
The African private sector, comprising of mostly
SMMEs and the informal sector, is widely regarded as the engine of the economy. SMMEs
usually have a greater ability to produce new products, while large firms tend only to
diversify the existing range of products. SMMEs can broaden their markets through
co-operative arrangements that disseminate information on local or regional products and
services. The success of these efforts depends on the ability of locally based trade and
professional associations, chambers of commerce and grass roots organizations to develop
demand-driven mechanisms for delivering these services. A number of factors make it
imperative for African SMEs to harness information technologies for the purpose of
establishing networks and alliances. Potential opportunities within the information
economy include the formation of strategic alliances with strong foreign distributors as a
way of accessing new markets, while at the same time improving the quality of their
products.
The Internet levels the playing field and in
competition with larger firms, smaller companies/businesses can access and secure new
customers, something they could not easily achieve with traditional commerce. African
crafts are now sold through the Internet, although most of the websites are developed and
based in the West. Their existence is a useful starting point but it would be equally
useful and beneficial if more of these websites/homepages were maintained in the home
countries. On the other hand, this could be and is a significant role for the African
Diaspora. Examples include the ITC Virtual Handcraft exhibition center, where some African
countries are marketing their products. Although, e-commerce opens up niche markets,
market power of well-known brands could pose barriers to entry that might impede SME
development. As Dutton (1996) rightly advises, companies planning ITC production for the
consumer market should not focus on media ‘hype’ but must try to analyze what
the technology promises and what in reality it has the capability to provide.
[Go to top]
2.10
Knowledge, Education and Learning
Given the increasing Globalization and
restructuring in the world's social, political and economic systems, the requirements for
knowledge, education and learning have changed dramatically. A new educational paradigm
for the information age is required (in terms of structure, function, curriculum, and
approach) at all levels.
In the age of Globalization and an information
economy, the objective of education is no longer simply to convey a recognized body of
knowledge, but to enhance the ability of each learner to generate, access, assess, adopt,
and apply knowledge and information to complex problems. Information age learners should
not be presented with "ready-made" problems, but should be required to make
major contributions to problem identification. A new educational paradigm should teach
students how to think critically and independently, exercise appropriate judgement;
collaborate with others; adapt to new and uncertain situations; identify problems and then
solve them; and to synthesize old information with new.
These educational requirements for the
information economy workforce are critical. However, the systems developed for informal
learning, specifically for adult learners to engage in life-long learning, are equally
important. Using new information and communications technologies, there is the potential
for expansion of educational opportunities through the use of technology-enhanced learning
and other distance learning techniques. These approaches increase the learning
opportunities for students, and are suitable for widely scattered student bodies common in
Africa. In many African countries, students are already benefiting from online courses and
technology-enhanced learning approaches.
Many academic libraries have stopped their
subscriptions to international journals due to budgetary constraints. Some of these
journals are very expensive and only one or two articles may be relevant to the users.
Considering that access to academic journals has become a stumbling block for many
scholars in Africa, there is great potential for digital libraries and electronic
publishing. For instance, if the table of contents and abstracts are provided freely then
subscribers/buyers can pay for specific full-text copies. Libraries can therefore
subscribe on behalf of clients at a lower fee than full-text traditional print journals.
There are significant contrasts between
knowledge, education and learning. ‘Education is generally seen as a formal process
of instruction, based on a theory of teaching, to impart formal knowledge (to one or more
students).’ However, the process of learning can occur with or without formal
institutional education. Knowledge accumulation and the accumulation of skills for using
ICTs will occur increasingly outside the traditional institutions of formal education.
Learning in the workplace, and through collaborations that sometimes span the globe and at
other times involve tightly knit local communities with similar interests, will become
more commonplace.
However, knowledge should not be limited to a
select few. As the store of knowledge expands throughout the world, all of the
world’s people should have as much access as possible. However, the ‘formal
institutions of education that exist today, and even many of these in the planning stages
in developing countries, are becoming less relevant to the requirements of emergent
"knowledge societies"’ (Mansell and When, 1998: 67). Mansell and Wehn argue
that these countries must actively reshape their educational systems in ways that are
‘consistent with their [national] development priorities’ (Mansell and When,
1998: 67). However, these national priorities must now take into consideration the
fundamental changes occurring in the underlying structures of the global economy and new
strategies for achieving competitive national advantage.
[Go to top]
2.11
Components of the new framework
The increased role of knowledge within the
economy and the rise in the trade in global services is leading to a whole range of new
industries and economic development opportunities in areas as diverse as biotechnology,
new materials science, informatics, and computer science. To take advantage of these new
opportunities, countries must embrace a new framework for knowledge, education and
learning. Within this new framework, there are at least ten components that should be
included and or enhanced.
i) A focus on abstract concepts: Some of the challenges for knowledge, education and
learning will hinge on learners’ greater familiarity with abstract concepts and
uncertain situations. Much of the academic environment today presents students with
ready-made problems and then asks them to solve them. The reality of the rapid-fire global
economy, based on information and knowledge, is that problems are rarely that clearly
defined. This requires those seeking valuable employment to seek out problems, gather the
necessary information, and make decisions and choices based on complex uncertain
realities.
ii) A holistic, as opposed to discrete, approach: Much of the education and learning environment today is divided
into very rigid academic disciplines, focused on discrete units of research. However, the
emerging Information Society and global economy requires a holistic understanding of
systems thinking, including the world system and business eco-systems. Thus
inter-disciplinary research approaches are seen as critical to achieving a more
comprehensive understanding of the complex reality currently facing the world system.
iii) The student’s ability to manipulate symbols: Symbols are highly abstracted manifestations of some concrete form
of reality. Highly productive employment in new economy will require the learner to
constantly manipulate symbols, such as political, legal and business terms and concepts
(such as intellectual property rights), and digital money (in financial systems and
accounting concepts). Former US Secretary of Labour calls these persons ‘symbolic
analysts’, and includes "all the problem-solving, problem-identifying, and
strategic-brokering activities," which are in high demand in the information economy
(Reich, 1992: 177).
iv) The student’s ability to acquire and utilize
knowledge: In the past, academic practitioners
often saw themselves as wise ‘sages on the stage’, delivering data, information,
knowledge and wisdom to the eagerly awaiting students, whose minds were empty vessels
waiting to be filled. However, if that reality were ever true, the world’s store of
knowledge is increasing at such a monumental rate that no single person can hope to
adequately convey as comprehensive an understanding of a subject as is possible, or as
could be absorbed by most students.
New technologies and new techniques engendered by
the Information Revolution allow for the production of new knowledge and the dissemination
of data, information and knowledge. Some of these technologies include the Internet, the
Web, CD-ROM, and printed, audio, video and other electronic media forms. These new
technologies allow academic practitioners to move into the role of guide, assisting
students to gain the skills required to acquire and utilize knowledge contained in various
forms from around the world.
v) An increased quantity of scientifically and technically
trained persons. As discussed above, the emerging economy
is based on knowledge as a key factor of production, perhaps a factor more important than
any other traditional factors of production. The kinds of industries emerging in the age
of Globalization, such as biotechnology, new materials science, human genetics, advanced
computing, artificial intelligence, and human/computer interfaces, demand that employees
remain highly trained in science and technology. Research and development is a critical
component, and many countries are trying to develop NSIs that attempt to harness the
combined resources of national academic institutions with the research enterprises within
the public and private sectors. In these countries, universities will have to quickly
adapt to the needs and provide a key component of such national systems.
vi) Blurring of the distinction between mental and physical
labour. As discussed above, the Fordist-Taylorist
development model made strict separations between mental and physical labour. However, the
new Innovation-Mediated paradigm requires a much more holistic approach to the business
enterprise and places value on the intellectual contributions of all employees. In fact,
most observers would find it very difficult to make concrete distinctions between many
Information Age-oriented manufacturing facilities and computer laboratories.
vii) Encouraging students to work in teams: Closely related to the last point, is the need for employees in
globalized enterprises to be able to work closely in teams. Working in teams requires
students to develop skills in group dynamics, compromise, debate, persuasion, organization
leadership and management skills. Most academic institutions and programmes are set up to
do the opposite, to force students to think only of themselves and their own personal
development, perhaps with some very limited group work.
viii) Virtual teams around the world: Again, closely related to the last point, is the need for enhanced
virtual and networked activity. Not only should students learn to work in teams; but they
should also learn to work in globally networked, virtual teams. These global virtual teams
are being used increasingly in industry and international organizations for R&D
activities. Chris Dede argues that ‘Computer-supported collaborative learning (CSCL)
enhances team performance through tools for communicating each person’s ideas,
structuring group dialogue and decision making, recording the rationales for choices, and
facilitating collective activities.’
ix) An agile and flexible system: As command and control systems disintegrate around the world,
academic institutions must become less rigid and more flexible in their attempt to meet
the varied needs of learners and the global economy. This includes variety in time, place,
approach and curriculum offerings. As new issues and industries emerge within the global
economy, academic course offerings should be adapted to reflect these new knowledge,
education and learning requirements.
x) A new
system of education and learning: Using advanced ICTs, a new system of
knowledge, education and learning should apply a wide range of synchronous and
asynchronous activities that aid the professor and student in breaking the boundaries of
space and time. Synchronous activities can include real-time lectures (featuring audio,
presentations, websites, and even video), quizzes and group discussions; all of which can
occur with the instructor being at the same location or even at a different location from
the learner. Asynchronous activities can include archived lectures (in audio and video),
and other archived course material that can be accessed at nearly any time, anywhere. To
meet the knowledge, education and learning challenges and opportunities of the Information
Age, the GIIC argues:
‘It is not, however,
sufficient anymore to raise the efficiency of the existing systems of education and
improve the quality of their components. Even the best of them have served another set of
demands for another age. Graduates of these systems, to varying degrees, now find
themselves deficient in knowledge as well as cognitive skills that are necessary for the
increasingly sophisticated living environment and for the ever-evolving labour market.
More importantly, knowledge-based businesses often complain that graduates lack the
capacity to learn new skills and assimilate new knowledge.’
To meet these challenges and to reap the benefits
of the opportunities presented by Globalization, active responses should occur within the
public and private sectors at national, regional and international levels.
[Go to top]
2.12 National level
At a national level, these requirements for
knowledge, education and learning should be addressed with policy approaches that: (1)
allow as many people as possible to engage in productive healthy forms of employment that
enhance their quality of life; and (2) meet the increasing demands of global enterprises
operating within the global economy.
Developing countries are behind significantly in
the information infrastructure required to generate and disseminate knowledge. One concept
that could address these concerns is the emerging vehicle of Multimedia, Multipurpose
Community Information Centers (MPCICs or Telecenters). Current research indicates that
these centers could serve as effective vehicles for enhancing the knowledge, education and
learning opportunities for communities in emerging economies.
2.13 Rural development
Given that the majority of people in African
countries live in rural areas, any attempt to meet the challenges of Globalization and the
information age must include rural development strategies. By setting up access points to
its in rural locations, information on micro finance, marketing, practical tips on
business formation, agricultural expertise, health and sanitation knowledge-based
development, can be disseminated at low cost. These centers can serve as incubators for
the development of SMMEs and help to stem the tide of migration from rural to urban areas
(and the concomitant overcrowding and other socio-economic problems) that plagues nearly
every major city in Africa.
The widespread adoption of information technology
holds considerable promise for African countries in their quest to improve their
agricultural production and marketing practices. African economies continue to be heavily
dependent on agricultural production and the export of natural resources. Thus approaches
to leveraging economic value from the information economy must target this area. It
provides opportunities for the development of information systems to monitor water and
land resources, food transportation and storage and crop-diseases control.
There are many new and exciting opportunities for
Africa in the Information Age. However, in order for Africa to reap the benefits discussed
above, strategic planning and collaborative approaches are required at national,
sub-region, regional and global levels. This final section presents recommendations that
should enhance Africa's ability to confront the challenges of Globalization and the
Information Economy.
[Go to top]
PART
III
3.0 The way forward for the region
Recommendations and a Way Forward: National, Sub-Regional, Region
and Global
During one of the preparatory meetings for the
ADF'99, Professor Clement Dzidonou asked an important question: "What must Africa do
to move from its current orientation towards PACE (Predominately Agricultural and
Commodity Economies) to PIKE (Predominately Information and Knowledge Economies)
orientation?" Providing answers to that question should be one of the primary
objectives of the ADF'99. However, as a partial response, this section presents some
recommendations and a way forward for the region. It argues that the best approach to
meeting the challenges to Africa of Globalization and the information economy is strategic
planning and implementation that involves public, private and voluntary sector
participation and partnerships, at national, sub-regional, regional and global levels.
3.1 National Planning and Implementation
Strategic planning and implementation to confront
these challenges has to begin at the national levels. There are critical roles for every
societal actor to play in this process. Leaving key stakeholders out of this process will
hinder the development of an effective vision and national plan that will meet the needs
and objectives of all relevant parties.
The African Information Society Initiative (AISI)
advocates the creation of National Information and Communications Infrastructure (NICI)
plans, and many countries in the region have initiated such a process. In most countries,
the NICI plans are being designed to work in conjunction with regional and global
frameworks, such as the AISI. These NICI plans can also enhance educational initiatives,
giving them the national imperative needed, and work to create an enabling environment for
the private sector. It is important for these NICI plans to provide support for - and be
supported by - existing sub-regional, regional and global partnerships and collaborative
frameworks (e.g. AISI and PICTA). In addition, the NICI plans should include the active
involvement of the private sector in creating a predictable, market-driven legal and
regulatory framework to facilitate global electronic commerce. Some of the issues that
this framework should address are as follows:
African Development Forum 1999
