An Innovative Index to Measuring the Digital Divide

Abstract:

The development of the Information and Communications Technologies (ICTs) is shaping a new panorama worldwide. Not only are they transforming sectors such as  government,  education  or  health  but  also,  they  are  favoring  the economic growth and the social inclusion of the different social strata. There is a crucial element that explains the ICTs today and that is Broadband, the true catalyzer for social and economic development. Broadband and ICTs are therefore concepts  that  gain  their  meaning  when  considered  together. Unfortunately,  the  degree  of  Broadband  development in  the  world  is  not  equal and there exists, in many economies, a Digital Divide in terms of access (supply), adoption and usage (demand). Nonetheless,  most  of  the  governments  around  the  world  are  aware  of  the importance  of bridging  The  Digital  Divide  for  their  population  thanks  to  the benefits  that  Broadband  brings.  According  to  a study  conducted  by  the  Inter-American  Development  Bank,  countries  in  Latin-America  and  the  Caribbean (LAC) where  the  Broadband  penetration  has  increased  by  10%  have experienced  an  average  increase  of  3.2%  in  their GDP,  and  2.6  percentage points increase in their productivityi. Similarly, the World Bankii concluded that a 10% increase  in  basic  Broadband  penetration  enlarged  GDP  growth  by  an additional 1.21% when looking at 66 high-income countries; and by 1.38% in the remaining 120 low- and middle-income countries. In  this  challenging  effort, the  complexity  of  the  Broadband  requires  it  to  be conceived  as  an  ecosystem  that  goes  beyond  pure connectivity.  Four  key elements  are  necessary  to  be  considered  when  analyzing  Broadband:  (1) infrastructure (access), (2) applications and digital training (usage), (3) regulatory frameworks (access and adoption), and (4) strategic public policies (access and adoption)