Sunday, October 9, 2011
Growth and technology
At a time when high-frequency computerized trading is under scrutiny due to its implications on ordinary traders, introduction of technology seems to be doing wonders for poverty-struck Africa. This article talks about how mobile phones have become useful financial instruments which compensate for the lack of roads that hinder trade and commerce in Africa. While studying growth, it would be very interesting to explore how technology boosts the capacity of capital and labor alike, which in turn pushes up the GDP. The World Bank's claim that an increase of ten mobile phones for every 100 people in a developing nation can boost GDP by 0.8 percent only reiterates the important of technology in development.
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It is great to hear that struggling people in developing countries are being able to acquire new technlogies that are so common in our country. For so long they have struggled to stay updated with the times and with technology now being introduced, life has finally become much easier for them.
ReplyDeleteI can speak from personal experience about computerized trading with regards to the self-employed individual (my father has been an options and futures trader his entire life, and once it became computerized and less interpersonal, his profits suffered as a result).
ReplyDeleteThis is fascinating. It's obvious that very poor countries lack the intricately organized and well-oiled structure of most of the leading nations' economies. While none of these poor countries saw a technology boom like in the 1980's, or an internet/.com boom in the late '90's, cell-phones (which are mainly a post-2000 phenomenon) are clearly more valuable than any advancement that had come before it.
I agree with the previous post in that it is quite interesting to see how cellular phones seem to be one of our more valuable forms of technology in history. Breaking down GDP increases in relation to the number of cell phone owners is quite a thought provoking way of better understanding the role that technology plays in the economy.
ReplyDeleteIm glad that underdeveloped countries in Africa found new alternatives to grow.Technology is a an important part of growth it will help increase consumption rate.
ReplyDeleteThis a good and enlightening article.
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