In our ICT (Information and Communication Technologies) world, I want to share my article about ICT's impact on society,economy and also on the last economic crisis.I want and wait your comments:
Introduction:
The world has been experiencing breathtaking proliferation of
information over the past few decades. This information age , came with
Information and Communication Technologies(ICT) , made tremendous
effect on socio economic life , economy of society and how it is
governed. Even we can compare these effects with Industrial
Revolution’s. These effects changes the structure of Global System ,
how democracy is understood and managed , relative importance of
components of democracy (healthy information , conscious electorate ,
importance of ethics etc.)
Analysis
Before analyzing ICT by regarding its impact and benefits on
society , economy and last economic crisis and its benefits , first of
all should we define what is a benefit and what conditions it satisfy?
In terms of areas that we examine , the criterion of benefit must be
what the subject brings to human development , human and social capital
, security , economic and social development and efficiency in public
and private management. Also , these benefits have effects not in the
short-term but in the medium-to-long term. (we will discuss impacts of
ICT on short term views and how it promotes long term decisions)
Optimization of world , making a better world needs deliberately
understanding of following matters:
- Social and human development
- National and
specific concerns of national states (we can’t just think globally
impacts of ICT , because there are national institutions in reality ,
their own problems and concerns should be addressed in every
beneficiary concepts to make them applicable.)
- Developing technology , education , health , culture
- Making its own power sustainable
ICT and Governance
How a society is governed is profoundly related with information ,
because decision makers need a sufficient flow of information to solve
problems and challenges they face. Even , we can say that entire
decision making process depends on information. However , as I said ,
information proliferates at exponential rates so that a decision maker
faces infinite amount of information but of course not all information
is relevant to any given problem and associated with it. Therefore , a
mechanism to filter these huge heap information and extract finite set
of data is needed. Also these infinite amount of information (means a
man or a system cannot itself process it) is much more prone to errors
and deterioration also intended deterioration. To satisfy requirements
of decision makers and decision making structures we need more reliable
, more efficient , faster , more selected and better information
models. Also ICT should make available access to transdisciplinary
information by decision makers. This eventually leads to need to
advanced and sophisticated algorithms and information technology.
The relation between decision makers , decision making structures and
information is two-way. Information systems with needed advanced
technologies should give qualified information to decision makers
whereas decision maker structure should convey its responsibility to
address economical needs of info-systems. This mutual responsibility
accentuates the power of ICT.However , this relationship that is
between decision makers , decision making structures and ICT is not a
simple one and requires very sophisticated analysis. Since everything
that includes society and economy also includes human behavior and this
leads eventually requirement of dealing with very high complex ,
mathematically chaotic and low predictable social problems. To make
these problems easier , more technological developments (better
algorithms , advanced technological systems) and also more profound
investments are needed. Although ICT tries to solve this problem , it
needs first of all to define the problem and find cons , this , as I
said , is a very difficult process. This problem make us think another
big role of ICT , that it is the main determinant in the evolution of
social sciences and decision making structures besides just affecting
them. After improvement of more advances systems and algorithms ,
people will need the reconsideration of existing theories and methods
and forming new methodologies.
The other big importance of ICT is the connection of overspreading
of information and democracy. Since what makes democracy viable are
mainly a transparent and functioning market system , solving social and
civic problems , a powerful structure of culture and civilization.
Besides these main requirements , there are other contributions that
ICT makes to society and healthy decision making process:
- Transparent situation on markets and prices
- Production of new ideas and also accessing them
- A
conscious and informed electorate (electorate is the main component of
the system and is very important for health of democracy)
- Keeping
scientific integrity and independence (is important not only for
improvement of science but also keep science from biased information)
- A responsible government that knows it is observed always
- Constructing a global connection that makes further improvement for information health and ICT
- Increased social and human capital
- Connection and competition between ideas that leads to better , refined , more effective and applicable ideas and opinions
- Eliminating targeted-biased reality and replacing it with observable reality with a minimum margin error
ICT and Media
In our information era , as I said , world has been experiencing
proliferation of information at exponential rates. In this era , media
is the main channel of transmitting information. People have used
books , magazines , tapes , radio , TV to access information. After
use of PC in almost everybody in developed countries and internet ,
this transition reached an enormous amount.
The effect that comes with media’s main role in transmitting
information is seen in political participation in democracies. The
media is the main response channel to national as well as international
challenges. The benefits that we mentioned above (new , better ,
refined ideas , more discussion on problems , more open society etc. )
are mainly achieved by media. Today all problems can be discussed in
pluralistic and participatory manner. This gives one more dimension to
democracy and makes it better. (solves some basic problems of
representative form of democracy that modern countries adopt now)
This is achieved by participation of citizens in discussions and
interpretations of events and decisions that are made in states
institutions.
Unfortunately , besides all these benefits for democracy , media
plays sometimes a bad and dangerous role in society because of the fact
that it has tremendous power and authority in society and effect to
change the decisions of society , it has also immaturity. We see ,
although the media , especially television and internet keeps channels
open between institutions and society , it have not yet reached the
maturity and responsibility which exercise of such a big power would
require.
ICT and Economy
The countries and some big companies that started their Industrial
Revolution earlier and became powerful economically , politically and
militarily also some big companies have become progressively
concentrated on production , distribution and use of information. (IBM
recently sold its computer production factories to its emerging Chinese
rival Lenovo and become specialized on software on climate change ,
environment and information process(like in the transfer or textile
factories to Far East rising markets) ) This specialization (the
post-modern production) guaranteed sustainable affluence gains.
The impact of ICT on economy is seen firstly on its effect on
efficient resource allocation and marketing techniques since this gives
the ability making better market plans and more optimized selling and
transportation strategies.
Economic activities are much related with good information.
Therefore , widely spreading of information makes national states and
companies more competitive and efficient. Information on several
variables which are key to market strategies technology , marketing
strategies and decision making process and quality helps markets to
intensify their economic activity. However , information gaps between
states and companies makes difficult cooperation and lessen the
profits. We see this effect when we compare developed and undeveloped
countries and big networked companies and small ones. Also this
information results in unemployment , misallocation of credit and big
policy mistakes that damage all markets and sectors by decreasing
overall competitivity but also companies directly.
Information-based companies are better competitors in global
markets. This advantage comes from mainly their experience and
experiment in knowledge creation. They produce information , refine it
to make better and use it practically. Also , this gain them
sustainable and more profits.
Besides this development and growth in information , the structure
of companies undergoing significant change , as I said in IBM example.
Because the information system grows with information technology –
software , media , consulting services ,communication technology and
services and overall information services. The information related
market is now estimated about $1.2 trillion. Also not only information
systems but all sectors becomes more related with information and
communication technologies. This makes structural changes and
reconsidering strategies again (as I mentioned above). After all these
development information became main input to company’s strategies and
also their spending. In OECD countries , 50% of workforce’s task is to
collect , process or transmit information.
All these progression , make information and information
technologies as a component of economy that has a very big strategic
role. Because decision making process is related with all sectors and
national states themselves , people give a very high importance to this
structure. And as I mentioned above decision making is very related
with information. To make better anticipations , less wrong decisions
and reduce
the risk decision makers take , healthy information is needed much.
All developed countries , their economies and industrial
restructuring relies heavily on information technology. In last few
decades many national states made their own IT programs.
All importance of ICT in economy make us think about solving
problems that the world is facing now : environment , global warming ,
climate change , terrorism , poor people , famine etc. Because ICT is
the main component of prosperity and development , developed countries
should share their information and information structure with
underdeveloped countries.
ICT (specifically Internet) and Last Economic Crisis
Information and communication technologies gives very big
opportunities to companies , people who works with investment banks to
observe everything in financial markets , selling and buying easily
with just one click. Especially Internet has done many important things
for financial markets and world financial system. All people not just
analysts started to access information on all level of markets. However
they bring us a very dangerous things also : now the amount of money in
derivative markets is $trillion 660 although total of gdp’s of
countries in the world is $trillion60 that means it is ten times bigger
than real money.
Like 2000 dotcom bubble , in our current economic crisis ,
brilliant staff in banks made very brave selling and buying process
without considering what they are doing. In our power and power of
money driven systems , banks are just focused on money. They made
billions of dollars with just clicks. They got loans and with this made
investments that are much more than these loans. Also they gave
billions of dollars of credit to customers and other companies in
mortgages and other staff by not considering how these clients and
companies can pay up these mount of money.
Not only loaners and banks but also customers didn’t things
that their responsibility requires. They always get , but not think how
to pay up that. All these thing are related with internet and easiness
of buying and selling with just clicks. Because internet made it
possible to be online brokerage because accessing to information is so
easy.
Because of complex structures of financial systems with many sphere
made it almost impossible track the flow of money in markets. You can
easily get the money with loans and buy a product or borrow to another
man.
Concluding Remarks
The world has been entering a new era that national states ,
companies and all institutions become more and more interdependent. All
trends , economic , political , sociological and technological
transcend regional and national boundaries although obstacles to
protect them.
This globalization is occurring very rapidly because ICT
technologies and Internet make it possible the proliferation of
information at exponential rates. Therefore , society , economy ,
governance , governments and decision makers are facing new challenges.
Very powerful relationship between information , ICT and democracy
is shaping the world. With the help of media , people can access
information easily and affect the decisions that decision makers make.
ICT and Internet also affects economy in many aspects. We see the
results : an unprecedented growth and margin rates over past few
decades (about since 1970) and also crisis: 2000 dotcom bubble and now
, in 2008-2009 , very big collapse and potential economic slowdown.
References
1. www.psychology.iastate.edu/faculty/caa/abstracts/2000-2004/02AB2.PDF
2. Guvenen , O .The Emerging Information Society : A Political Challenge
3. http://www.newsweek.com/id/164588
4. http://en.wikipedia.org/wiki/Financial_crisis_of_2007-2008