New IT Paradox: The Great Divide

Even as information technology and its associated benefits sweep the planet,
a term that is increasingly coming into focus is ‘digital divide’.
Ironically, a technology that has often been touted as the great equalizer is
also turning out to be a great divider. This is not an entirely unexpected
development, as riches become contentious only when they are substantial.
Sharing nothing is simple.

What is this Great Divide? Conceptually, it is the difference in economic
powers being created between the IT haves and the IT have-nots. And it exists–or
is even increasing–in a number of ways; between countries, within societies,
among organizations, even within families…

For instance, the number of PCs per 1,000 people is 555 in the US, 5 in India
and 3 in African countries. The number of mobile connections is 70 million in
China and 3 million in India. The number of Internet-users is 100 million-plus
in the US and 3 million in India. Behind the bland numbers lies the fact that
such huge differences will, in the near future, cause economic differentials to
increase at faster rates.

The reasons are most often economic. In the US, where the per capita annual
income is almost $30,000 per annum, the PC costs less than $1,000. In India, by
contrast, a PC costs Rs 30,000 with a per capita annual income of almost the
same in the capital city of New Delhi, which has one of the highest income
levels in the country. The rest of the country shows far lower numbers, with the
state of Bihar having a per capita income of just Rs 6,328. No wonder then that
the relevance of the IT revolution is losing its sharpness–five years of
income in Bihar, a year’s income in Delhi and 12 days’ income in the US go
into a PC purchase…there’s the birth of the digital divide.

While hardware numbers are instructive, the usage of associated software is
the real determinant of the level to which information technology is harnessed.
As hardware prices plummet, software and services become more expensive. This is
yet another facet of the digital divide. For instance, India exported software
and services worth Rs 28,350 crore in fiscal 2000-01. This is just a fraction of
the total software and services procured in the world. In the same period,
domestic software usage was a paltry Rs 9,410 crore, as per Nasscom data–that
makes up a ratio of 3:1. No wonder then that information technology in India has
become synonymous with software exports. And yet–from the viewpoint of India’s
vast population, the impact of growing software exports is indirect. They would
be far better of if information technology provided more direct and measurable
benefits to them.

It is not that there are no applications for the non-IT citizens of the
world. There are examples from the developing world of how technology has helped
the common man. In Morocco, women play a vital role in earning livelihood for
the families. One of them, Fadma, a weaver by profession, sells wares in the
global marketplace, earning enough money to take care of herself and her two
daughters. She sells these rugs through Virtual Souk–a Website. This project,
which employs 775 artisans in Morocco, Tunisia and Lebanon, works with NGOs to
avoid middlemen and delivers 65-80% of the money earned back to the artisans. In
India, a large majority of rural women have not seen a telephone or television,
and with pitifully low literacy rates of between 8% and 10%, the Internet
revolution is yet to touch their lives. Yet there is an embroideress, Maniben,
from Kutch in Gujarat. A non-profit organization, with help from the National
Institute of Fashion Technology, featured Maniben’s mirror-work embroidered
tie on its Website–peoplelink.org. Maniben received orders from the UK to make
"Millennium" ties! That’s the power of the Net.

The Gujarat-based National Dairy Development Board has been helping
cooperative unions across the country set up a computerized milk collection and
distribution system. A relatively more successful application, this helps the
local populace get better value for their products. At the milk production
center, women take milk to a weigh-bridge, where the milk is weighed, the fat
quantity assessed, and the payment immediately calculated by computer. Earlier,
middlemen could cheat the innocent women, fudging the fat content figures.
Records–right from quantities sold to payrolls–are automatically maintained
and are tamper-proof compared to the time-consuming ledger-work of the past.

A veterinarian in Tiruchirapalli, Tamil Nadu is computerizing all details of
animal and poultry diseases. This will be made available in special booths and
kiosks. People will then know what should be done for prevention and cure. In
Andhra Pradesh, a professor is working on the prototype of software on animal
healthcare to dispel misinformation and provide data about animal diseases.
Information dissemination would become simple and speedy.

While examples of the non-corporate use of informaton technology exist, they
are precisely that–examples. A disproportionate part of the development of IT
has revolved around corporate use. This, in turn, is expected to accrue greater
operating benefits to large organizations, which are expected to filter to all
strata of society in many indirect ways. The link is often tenuous and
time-consuming. A drug laboratory can bring out a cheaper-version drug using IT
but as far the user is concerned, the drug should also be available when
required at affordable rates. The latter needs a computerized healthcare system
that IT can provide–if implemented.

Mass applications suffer from all the known problems of spreading the fruits
of development. Funds are scarce and know-how migrates to richer pastures. While
the business world gets new versions of software with exotic features–which
are often seen only by product reviewers–there is lack of good, robust
software for non-corporate applications. And even if software is available, the
hardware costs are prohibitive, meaning that hardware cannot be installed fast
enough. If hardware costs are sought to be minimized by running software from
common servers through the Internet, unreliable access costs are Rs 20-30 per
hour. That amounts to Rs 200 a day. Most people run entire families and lives on
amounts lower than that. And if everything does somehow fall into place, the
software works in an alien language!

There is enough research and development effort around us to find the
answers. The know-how is available. The problem is one of deployment and
commercial viability. While a large part of that initiative rests with
government organizations and NGOs, the IT industry can also participate in the
push by the creation of products and services suitable for mass usage–at cheap
rates. And remember, if this is not achieved, the benefits of information
technology might create yet another class–of info-brahmins.

The IT revolution took almost 20 years to move from the highly central and
limited usage of computers to their widespread use in business and corporate
applications. It will take another 20 years to move from here to education,
health and other applications of concern to the larger India. If that pace is
acceptable, there is nothing to be done. If it is not, there is a lot that can
be done.

Shyam Malhotra is
Editor-in-Chief of Cyber Media