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Home > Special Topics > Colloquium Last Updated: 15:15 03/09/2007
Colloquium #8: November 29, 2001

The Blueprint of the Digital Divide

Izumi HARADA
(GLOCOM Fellow, and Senior Fellow, Institute for International Socio-Economic Studies)


The IT Revolution is, as the name implies, the most radical turnabout in the way society exists since the Industrial Revolution. The Japanese government defines the IT Revolutions as a "Change in our industrial and social structure brought about by the use of advanced information and communications technology and occurring on a worldwide scale." Its role is seen as the "initiating factor to bring about a new economy and change the way society exists on a substantial scale and in a short time" and efforts are made to "achieve a Japanese-style IT order of society in which all members of that society, both young and old, will be able to benefit from it."*1

In fact, IT constitutes the new material infrastructure base for the knowledge-intensive and service sectors that will form the core of our future economic order (the "new economy"). It will not only generate a large variety of businesses and services that cannot be regulated in the existing legal system and that have not existed until now. Rather, it will usher in profound changes reaching out far wider to revolutionize the familiar order that has shaped our economic and industrial activities so far (old economy). The hallmark of this new order is the free interchange of information and capital crisscrossing distances and national borders as if they did not exist. IT will also revolutionize our distribution flow. It will mark a dramatic increase in our production efficiency and usher in a more flexible and speedier management capability.

On the reverse side of the coin, however, it will also give rise to a range of problems that will appear because of its sheer scale as a major social transformation. One of the major problems in this context is the digital divide that is being talked about.

The word "divide" in this context means "splitting," "drawing a line (demarcation)," or a "watershed," rather than a mere "differential." The line that is drawn here is whether to be part of the IT Revolution or not, whether to make effective and advantageous use of IT or not. "Divide" in this sense is a segregation that draw a sharp line and thereby creates all kinds of differentials.

The market principle will ensure that the differentials that are generated as a result of the digital divide will be the moving force that stimulates competition. It would therefore not be appropriate to demand that these differentials should be ironed out in a sweeping manner. However, we must not allow these differentials to grow to excessive proportions. Because, if they do, it will generate social inequalities and bring to an edge social unrest and international tensions. In this sense, the digital divide can be seen as a problem in need of redress.

The IT Revolution is occurring in every part of society and that makes the Digital Divide a society-wide issue. In this article, we want to shed light on the Digital Divide problem in its broadest sense in an attempt to avoid confusion in the debate and thereby assist in the process of formulating policies for the future.

1. The Nature of the Digital Divide

It is believed that the Digital Divide as a term came into common use in the United States in the mid-1990s. As the IT Revolution progressed and the INTERNET spread to the general public, young people, people with a higher education and people in the higher income brackets availed themselves of IT as a way of achieving a high income and making a career. On the other hand, those who were unable to come into the possession of information processing equipment because they were too old and poor to try using a computer, the situation was often that they were driven into an even worse economically difficult position. The differences in the extent to which information technology is used created new socioeconomic differentials and also widened the existing gaps. This led to the realization that the IT Revolution was socially divisive and was thus seen as a kind problem pertaining to the structure of society.*2

The IT Revolution, however, did not stop short in the United States but rapidly advanced to all industrialized countries and also diffused to the developing world. The INTERNET began to expand into a worldwide phenomenon. Due to this spread it was no longer a structural social problem existing within any one country but grew to being a differential that divided one country from another. It came to be recognized as a watershed inherent in the world's structure. The Digital Divide was already raised as an issue related to worldwide regional development and highlighted in the World Development Report 1998/1999 of the World Bank and the Human Development Report 1999 of the United Nations Development Plan (UNDP). It was also considered as a new form in which the north-south problem appeared. The issue of the Digital Divide among nations was taken up in the debates at the Kyushu - Okinawa Summit in the summer of 2000 and attracted attention as a new discriminatory problem on a global scale.

The industrialized countries, especially the United States, are speeding up the pace of their development by using IT whereas the developing countries in Asia and Africa are unable to make use of IT for a variety of reasons, including the lack of funding and human resources and the inadequacy of their poorly developed infrastructure. They are thus "left behind" once more, only is a different form and the existing gaps between countries are widened as a result.

As we have seen, the process in which the Digital Divide emerged as a structural social problem within individual nations and developed to an international problem that widened the gaps between countries was in response to the spread of the IT Revolution since the mid-1990s and the diffusion of the Internet.

Let us define the IT revolution as a social revolution that has occurred against the backdrop of the market economy system following the collapse of the Cold War structure and the worldwide globalization trend and that has been brought about through the use of the "autonomously diffused" computer network system, in other words, the use of a technical system centering around the Internet, on the principle that the individual, company, organization or nation must accept individual responsibility and autonomy, in an attempt to create an environment (system, material infrastructure, priority structure, value-set, etc.) providing a more convenient and comfortable personal lifestyle and permitting greater efficiency in the conduct of economic activities and administrative operations. Once we have accepted this definition, it follows that those who do not catch up with the tide of the IT revolution will not benefit from the "digital opportunities" as the merits arising from this. This, in turn, leads to new differentials with the result that the existing gaps will be widened and consolidated still further. This is what we mean by Digital Divide in this context. We must not forget that the Digital Divide and the Digital Opportunities are the front and reverse sides of the same coin.

Put another way we can say, that amidst the spread of the IT Revolution, a clear dividing line can be drawn between individuals or groups capable of making use of IT to collect a large volume of information and individuals and groups that do not have this capability. This distinction generates various differentials or widens and reinforces the many differentials that already exist.

The word "group" we have used here should be understood to mean any "social group" (community), company or organization, regional (urban or local) community, or nation. The various differentials and the existing gaps we have referred to are mainly "economic differences" and relative advantages and disadvantages in terms of differentials in education and culture and military and security gaps. Naturally, the Digital Divide is also determined by the way in which the IT Revolution progresses among the individuals and groups and by the various differences that do already exist.

When we refer to the "way in which the IT Revolution progresses" the problem we come up against is the problem of information literacy. This implies the problem as to whether individuals or groups have the ability to use networks, that is, to make effective use of the Internet and the computer. Information literacy is the basic ability to "read and write" in the IT world, to have mastered the ABC of information technology. The spread of the IT Revolution also comes shoulder to shoulder with the problem of how well the network infrastructure has been developed in both quantitative and qualitative terms.

The "quantitative" level of the network infrastructure can be defined, in an extreme manner of speaking, the carrying or transmission capacity of the Internet and the level of its diffusion. The quantitative aspects of the network infrastructure are determined by factors such as whether communications takes place merely on a text basis or whether it also uses audio and visual means, whether it has a broad-band capability with smooth animation image transmission and to what extent each of these capabilities are available. The "qualitative level" of the network infrastructure refers primarily to the contents of the information flowing through the infrastructure and its mode. The quantity and quality the network infrastructure can be seen as a major factor determining the quantitative and qualitative dimension of the differentials.

2. The Digital Divide at the Individual Level

The digital divide appears on the individual level as an economic differential, a difference in the way individuals derive benefits from the service. The individual as the user and stakeholder of the IT services derives benefits from the use of IT, and the extent to which he or she can make use of the services and potentialities associated with the IT Revolution determines the level of economic advantage and benefit (service) he or she can enjoy from IT. The greater the level of the individual's information literacy is, the greater will thus be the economic benefit he or she can derive from the IT services.

Thus, for example, the Internet offers a diverse range of services involving information exchange relating, among other things, to auctions, share trading and community involvement activities. If the individual is able to make effective use of these services he or she will also enjoy the service benefits in terms of his or her ability to come into the possession of the various economic advantages of the service offering which may include savings on consumer purchases or the realization of employment opportunities. In recent years, IT literacy has in many cases become a part of the conditions of employment and is reflected in the salary. Many companies advertise job vacancies on the Internet and require the use of e-mail for applications and communication. There are also companies offering services at reduced rates for reservations and purchases made on the Internet. People without a personal computer and information terminal or people without the ability to use these devices are therefore at a clear disadvantage in that they cannot avail themselves of these economic benefits. This differential in the extent to which individuals can enjoy the benefits of government services will widen still further once the electronic government and electronic local government infrastructure has been completed.

The differential also shows in the education and cultural domain. Let us supposed, for example, that children in the United States with a personal computer and Internet access in their homes have to do their homework. Having Internet access gives them the advantage that they can prepare their reports by using these IT facilities to search for the information they need and make the necessary investigations in a very simple manner. The availability of a PC and the Internet is therefore an important factor that has a great impact on the educational success and results of school children as opposed to children who do not have these facilities.

In terms of security, it is true that those with a high level of information technology are exposed to a high risk of having their privacy intruded upon and of becoming victims of network crimes on a scale not experienced before. Admittedly, these risks would not be encountered without the use of the Internet. Yet, there is a way of minimizing this risk: The individual can best protect himself or herself by honing and enhancing his or her information literacy through the continued use the network so as to avoid the danger of ever suffering damage.

3. The Digital Divide at the Level of Social Groups (Community Level)

Each nation or region comprises a variety of groups or communities (in terms of race, ethnic groups, age, sex, handicapped, or same university or school). It does appear that the extent of information technology availability also makes a big difference in that it is apt to widen the differentials that do exist.

In the United States, for example, there are communities based on racial identities, and the extent to which these different communities have access to information reportedly*3 tends to make a considerable difference in terms of the economic and educational differentials among them, with the gap between those with and those without access to information widening.

If we think of the community of the handicapped, it is cleat that they are exposed to various new barriers in the process of the spread of IT. Thus, they might have difficulty in using the keyboard or reading the letters on the display screen or might be left out because there is no software available that suits their particular circumstances. In this sense, they are often left behind. Conversely, IT can give new hope and indeed a new lease of life to the handicapped, the elderly and all those who cannot easily go outside on their own. In terms of the availability of information, access to opportunities in the work area, and thus greater independence and social participation, IT provides an enormous potential making things possible that were impossible without IT. Thus, the use of IT also has the very positive aspect of offering Digital Opportunities for social integration and normalization that gives people, including the handicapped, a new sense of a fulfilled life. It is therefore in everybody's interest to have a universal design that is easy to use for all, including the handicapped and the elderly.

A particular example of a problem that exists among individual and among communities is the emergence of the "geek"*4 as symbolized by the new technocrat hierarchy. The young who are particularly outstanding in their computer, Internet and software know-how play the most important role at the very center of their organization regardless of their past educational background and achievements and also regardless of their own ideas and value perception. In this sense, the new technocrat known as the "geek" comes into his own as an authority in his own right, whether or not he fits into the existing order of things.

4. The Digital Divide among Companies and Organizations

In the competitive situation in which companies are facing each other, differences in the level of information capability are a critical factor determining their competitiveness. The IT Revolution has generated a completely new kind of commerce: Electronic Commerce (EC). The globalization that has come about as the world fuses together through the Internet has led to a profound change in the way business is done on the international market. The Internet has created a variety of new industries (types of business). Its revolutionary impact has gone as far as to affect the way we work and our methods of company management and administration. In the management and administration area, we have seen the emergence of methods integrating such information techniques as CRM (Customer Relationship Management), SCM (Supply Chain Management) and Knowledge Management, and the introduction of these techniques creates differentials among companies. The differentials that are generated in this context are of course mainly "economic differentials." However, these differentials also appear in the way companies are capable of training their staff and engaging in development. Here, the extent to which companies can use IT makes a substantial difference. Similarly, IT also generates a significant difference between the large and the smaller companies in terms of security.

5. The Digital Divide among Regions (Cities and Regions)

The rapid expansion of the Internet has created major changes in the relation ship between local government and the local communities. In the local government service area, new services are looked for in an attempt to overcome the limitations and constraints of time and distance (space). Local governments have to meet the diversifying needs and the new value perceptions of their communities. In Japan, in particular, the development of IT services on a regional level is welcomed with great expectation as a way to meet the new challenges of a demographic process marked by a decreasing child and increasing old-age population and to breathe fresh life into the local communities and economies.

One of the merits of IT is the equality with which our cities and regions as well as the depopulated localities can benefit from the information services regardless of any geographic constraints. Nevertheless, regional differences in terms of the user environment and fees for communications services are bound to arise as a result of the level of development of the communications infrastructure (communications lines) and the population density. This is the inevitable consequence of the market principle that comes into play as the infrastructure is subject to private-sector profitability criteria. Interregional differentials are also created as a result of the differences that exist in the way individual local governments react to the challenge of developing information services.

6. The Digital Divide among Nations

In terms of economic differentials, the evolution of the computer and Internet has been dominated by the central role the US has played in the IT industry area. Not only has the US an overwhelming share in the main software and hardware areas, including operating systems (OS) and servers, it also commands an unshakable lead in terms of patents in this area and on business patents. In the Internet related field, in particular, the US has a virtual monopoly position. In view of this overwhelming advantage of the US in the information technology area, there is anxiety that the developing countries might be reduced to an economical disadvantageous position.

With the spread of the IT Revolution as a global phenomenon, however, Asia is gradually gaining ground as a market not only in the sense of being a manufacturing base as has been the case until now but also in terms of the spread of the cellular phone and the Internet. Under these conditions, we can see the gradual emergence of a Digital Divide in Asia among the various countries: One the one hand we have the so-called Net Tiger countries of South Korea, Taiwan, Singapore and Hong Kong that pursue aggressive IT promotion policies on a national scale to attract a highly concentrated IT industry and build their own IT infrastructure, and Malaysia which is in the process of putting its Multi-Media Super Corridor program into practice, while, on the other hand, there are also countries such as Indonesia and the Philippines that still depend on the so-called Old Economy. As a result, the even-drawn model of economic growth as it existed before the Asian Financial Crisis has seen a dramatic change. In the future, we will see a great gap between the group of countries that can achieve continued growth and those that cannot, depending on whether or not they are able to swim with the current of the IR Revolution. And, this gap is bound to widen as the economic differentials become greater.

Table 1 Main Problem-Areas of the Digital Divide
Types of problem


Problem level
Economic-Beneficiary Differential Cultural-Educational Differential Military-Security Differential
Individuals
* Income (wage) differential
* Differential in employment opportunities
* Differential in service access
* Differential in educational background
* Differential in admission rate to schools/universities
* Differential in educational standards
* Differential in network security
* Privacy problem
Social groups
(Communities)
* Differential in average earnings
* Differential in service access
* Differential in educational background
* Differential in admission rate to schools/universities
* Loss of own cultural identity
* Differential in educational standards
* Differential in network security
Companies and Organization
* Differences in profitability
* Differences in efficiency of work
* Differential in social contribution
* Differential in education level
* Differential in network security
* Problem of code numbers
Regions (Cities and the Regions)
* Differential in communications charges
* Differential in communications line capacity
* Differential in educational standars
* Differential in network security
Nations
* new north-south problem
* Differential in foreign currency earnings
* Differentila in educational standards
* RMA differential
* Differential in Information Warfare
* Problem of code nembers

Some of the most advanced cities in the development of IT (Singapore, Bangalore, Xinzhu, Shanghai, and Seoul) are making progress in developing a broad band network within their own cities. The IT industry also adds strength to industrial development, so much so that on a mere city scale, these leading cities may become even more advanced than the leading industrial countries themselves. On the other hand, however, the countries concerned do have a very large Digital Divide between their leading-edge cities and their regions.

In terms of the differential in military power, we have seen the so-called RMA (Military Revolution) come to the fore in the Gulf War. Not only has this revolution changed military strategy and the organizational structure of the troops, the weapons system and their accuracy in a fundamental manner but it has done far more in creating a new battlefield, the "Cyberspace," and given birth to a new type of conducting wars, "information warfare."*5

The specific implications of this are the use of long-distance precision-guided weapons and the application of all types of sensors to revolutionize the level of target-hitting accuracy in many areas. And more important still, we are seen a rhythmic division of the military organization on the so-called principle of Knowledge Management that links the commanders with the soldiers on the battle front through a computer network to ensure the effective transmission of information and commands. In this manner, the middle tier of the service is reduced and eroded in exactly the same manner as middle management is being whittled down in the present-day company organization.

The essence of information warfare lies in the enormous damage caused to the national interest if the nation's financial system that is the backbone of a country's economic activity has been caused to grind to a halt in a matter of hours through an "attack" launched on the Internet. In the present situation in which many of our companies are dependent on IT, an attack staged through the IT infrastructure on their computer systems would have such a devastating effect that it would directly impact on the country as a whole.

Information Warfare can occasionally also take the form of physical destruction inflicted by way of remote control.

In this context, US military superiority will remain unshaken at least for the time being as it developed the RMA concept in the mid-1990s and has consolidated its absolute predominance in all areas, including actual research, weapons development and troop deployment. Although the nuclear deterrent system will continue in Asia we will see a development in America's military strategy for East Asia from the so-called "nuclear umbrella" to the "information umbrella." This has to be seen as a major problem in that it has to be taken into consideration in the security approach for the East Asian region as a whole. And the fact that America opens its "information umbrella" over East Asia is itself a manifestation of the Digital Divide that exists in the military field.*6

Moreover, IT can also be used by terrorist and criminal organizations that transcend national boundaries. When these groupings make use of the formidable potential of IT to launch an attack on society the terror they might be able to unleash could be greater than any war between nations. In the past, the National Home Defense Agencies have been able to maintain their superiority over terrorist activities in terms of their equipment and power. When it comes to Cyber-Terror, however, these advantages no longer apply and they forces of law and order of each nation have to fight against terrorism on equal terms. In this fight, it will also be essential to enlist international cooperation and coordination. The situation now calls for very urgent action in a commitment to specific measures.*7

As we have seen, the economic and military differentials are two important components of the Digital Divide that exists among nations, and the fact that the United States stands at the very apex in both these domains signifies that a new world order has been created, an international system that has brought to the fore the north-south problem in a new guise.

The Digital Divide that exists among the different nations in other fields includes the educational and cultural differentials. As in the whole process of the creation of the Internet, the English-speaking world has a definite advantage also in the linguistic sense as English is the language of the Internet. Amidst the globalization of the Internet it would be totally inadmissible to have any particular culture dominate and coerce any other country, and by the same token, it would be equally unacceptable to assent to the perpetuation of the present status (of English as the predominant culture of the Internet) on the mere grounds of convenience.

Table 2 Main Policies to Resolve the Problems of the Digital Divide
Types of problem


Problem level
Economic-Beneficiary Differential Cultural-Educational Differential Military-Security Differential
Individuals
* Development of information infrastructure
* Improvement in information literacy
* Improvement in information literacy
* Development of information infrastructure
* Improvement in information literacy
* Improvement in morale
* Establishment of relevant laws
Social groups
(Communities)
* Development of information infrastructure
* Improvement in information literacy
* Improvement in information literacy
* Establishment of specific cultural contents
* Development of information infrastructure
* Improvement in information literacy
* Establishment of relevant laws
Companies and Organization
* Promotion of investments in IT
* Improvement in information literacy
* Improvement in information literacy
* Establishmento of relevant laws
Regions (Cities and the Regions)
* Promotion of investments in IT
* Improvement in information literacy
* Improvement in information literacy
* Development of information infrastructure
* Improvement in information literacy
* Establishment of relevant laws
Nations
* Creationof a fair international organization
* Development of information infrastructure
* Improvement in information literacy
* Improvement in information literacy
* Establishment of specific cultural contents
* Development of a multi-language automatic translation system
* Improvement in information literacy
* International treaties
* Creation of a fair international organization
* Establishment of relevant laws

7. Conclusion

As we have seen above, in analyzing the Digital Divide we can identify the following unique problems as shown in Table 1.

To resolve these problems we may resort to various answers of the kind shown in Table 2. In terms of such measures as can be taken on a domestic level, we need to take actions to establish our domestic information infrastructures and enhance the level of information literacy for the nation as a whole and for the local communities. In terms of solving the international Digital Divide problems we need a comprehensive range of actions from signing international agreements to creating international standards and providing international assistance.

Apart from policy measures, we also need to upgrade basic morals in Cyber Space and actively promote a Cyber culture.

As we have indicated earlier, it would not be a good idea to eradicate all "Digital Divides." In the government administration area, in particular, it is vital to create a system that guarantees an equality of opportunity and our acceptance to a certain extent of the differentials that arise as a result may help us create a more vigorous society.

The Digital Divide on the one hand and the Digital Opportunities on the other are the two sides of the same coin. The task of national policy should thus be to create an environment in which everybody can easily seize the Digital Opportunities at an affordable cost and in this way guarantee fairness and equality of opportunity. The essential requirement is to provide a service that is universally available in a fair and equal manner in any part of the country, that is, a universal service offering access to the Internet to everybody. It is equally essential in this context to raise the level of information literacy.

To redress the problem of the Digital Divide that exists between countries, the least that should be done is to have each country promote its own IT revolution on the principle of the market economy and for the leading industrialized nations to take the initiative in creating an environment that will enable the developing countries to avail themselves of the Digital Opportunities. Similarly to the telephone service, it will also be necessary to establish an international organization under the aegis of the United Nations and as a sub-organization thereof to draw up fair international rules and standards. Japan for her part should make constructive policy efforts in this direction in concert with China and other Asian countries with a clear view to the future to make a positive international contribution to this end.


References

*1 Personal statement of (former) Prime Minister Mori (at the 149th Session of the Diet on July 28, 2000). See http://www.kantei.go.jp/foreign/it_e.html.
*2 The debate was opened in the US in the mid-1990s and the Secretary of Commerce Report of July 1999 under the title Falling Through the Net: Defining the Digital Divide did point out that households with an annual income of 75,000 dollars or more had at least a 20 times greater chance of accessing the Internet than the nation's households in the minimum income bracket and at least a 9 times higher level of PC ownership. The document also reports that the differential in INTERNET access between the strata with the highest and the lowest level of education was rising at a rate of 25% a year.
Moreover, the Clinton administration, proposed in his State of the Union address in January 2000 that opportunities for using the Internet should be provides at schools and libraries and at the total of one thousand newly established Technology Centers in the whole of the United States and that facilities should be created for retraining teachers.
The fourth October 2000 serial report titled Falling Through the Net: Toward Digital Inclusion stated that the level of penetration of the Internet in the American households had exceeded 58% and that the sharp differentials were shrinking, with the access points provided at public facilities for people unable to access the Internet in their homes making a contribution. Despite this progress, the differentials that exist for the physically handicapped and for ethnic groups still remained unchanged while the access to the broadband service was creating new differentials.
Similarly, in Japan, the 2000 edition of "the Communications White Book" mentioned that the level of Internet access increased according as to how big the city is in which a person lived, the younger the breadwinner of the household is in years, and the greater the income of the household is. The document pointed to the need to redress the Digital Divide.
According to "the 1999 Nationwide Consumer Status Study" made public by the General Affairs Agency, the level of computer ownership per 1,000 general household with two or more persons is 195 for households on an annual income of 4.11 million yen or less but 4.1 times as much, namely, 800, for households in excess of 10.36 million yen. Furthermore, in the income bracket of up to 7.66 million yen, the number of word processors owned was greater that the number of personal computers.
*3 According to the results obtained from an interview at the Univ. of CA, Santa Cruz Professor of Latin American and Latino Studies (September 20, 2001), Mr. Manuel Pastor, jr.
*4 See: GEEKS by John Guts, translated by K. Matsuda , HICHO Shinsha Pub. Co. (2001); "The Linux Revolution" by Pecker Himanen, translated by K. Yasuhara and I. Yamagata, Kawade Shobo Shinsha Pub. Co. (2001)
*5 The concept of Information Warfare is used for information-using conflicts of any kind and its definition varies considerably according to the many researchers, military experts and military organizations. Information Warfare itself is not a new concept. However, the conventional forms of conflict using information have been termed Information War whereas the post-IT Revolution, that is, New Information War is called Information Warfare. Thus, the concept of information war itself has changed as a result of the IT Revolution.
*6 See: America's Information Edge by Joseph S. Nigh and William A. Owen, Foreign Affairs, Mar./Apr., 1996.
*7 To combat Cyber Terror it is essential to have a network tracking capability. Network tracking technology essentially implies an intrusion of privacy. Since the way in which the balance between the IT security system using such tracking technology and the protection of privacy is struck varies from country to country it is difficult to make progress in this debate.
However, international cooperation will be an essential component in any security measures for a global network. There is real concern that those countries that are behind in their security measures may be the targets of Cyber Attacks and be used as cracking bases. In order to meet the threat of computer virus attacks and cracking it is vital to ensure and improve security on the basis of international cooperation and coordination. For this purpose, a fair, impartial international organization has an important role to play. In this context, it will be of great importance for an improvement in the level of international security to provide information, harmonize the technologies and rules on an international scale, and prepare standards and guidelines.

(The original article appeared in the November 1, 2001, issue of "Chijo – Intelplace," GLOCOM)

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