The Role of ICT in Economic Growth and Poverty Reduction

Abstract

Information technology has a great impact in all aspects of life and the global economy is currently undergoing fundamental transformation. Information technology has very real impact in most of Industries and in all aspects of economy, while businesses and enterprises continue to undergo considerable changes. Usage of these technologies is revolutionizing the rules of business, resulting in structural transformation of enterprises. Modern businesses are not possible without the help of information technology, which is having a significant impact on the operations of Small and Medium Sized Enterprises (SME) and it is claimed to be essential for the survival and growth of economies in general. This paper aims at giving an overview of what is currently know about the applications of Information and Communication Technology (ICT) in developing economies and stimulate economic growth and poverty reduction. It draws attention to the cross-cutting applications of ICT, to its role as a tool, not a goal, and links its use to development co-operation. The paper presents two key objectives. The first Objective is to study the application of ICT in economic growth. The second objective is to study the role of ICT as a poverty reduction strategy. The paper will clarify the debate on the role of ICT, and give a framework for extending the discussion so that ICT may find their rightful place in development co-operation.

Keywords:  ICTs, Economic Growth, Poverty Reduction Strategy.