The Internet and socio-economic development: exploring the interaction

In this paper, we attempt to gain an understanding of the current and potential impact of the Internet on the four-fifths of the world’s population living in developing countries, two-thirds of them poor. First, we attempt to put today’s rapid advances in information and communication technology in a broader debate about development and the role of information. Next, we explore the interaction between the Internet and key dimensions of development using empirical data to support the argument that the Internet can only become a tool for socio-economic development if it is applied in a way that will benefit society at large and vulnerable groups in particular. Finally, we discuss some key policy implications of Internet diffusion and usage which governments of developing countries will have to address. These include enabling the creation of relevant knowledge on the Internet and the acquisition of the necessary skills and capabilities to use the technology in a way that is compatible with the local culture.