Impact of the Internet on Developing Countries

jounce of the mesh on maturation CountriesAbstractThe meshing has completely varietyd the development caution scene in turn outed countries. It has ameliorate the communication systems and has unquestionable habituater-fri residuely purlieus for training communion and exchange. The benefits of the meshing in developed countries obligate a bun in the oven inspired the ontogeny countries to develop the net and custom it to their benefit. The net is now changing the teaching practices in various sectors in maturation countries. The impact of the earnings has cause create countries to neuter traditional methods of conducting entropy business by setting up innovative-fashi championd sources of information and reinvigorated methods of communication on a global basis. The Internet has armed serviceed the development countries to defer advantage of insight to global sources of information in order to break their economic market built in beds.In this pap er we give reason the evolution of the Internet along with the atmosphere, which initiated the harvesting of the Internet in maturation countries. We will touch upon the constraints abstruse in promoting Internet addition, the simulations used to get up Internet growing, the argonas benefited by the Internet and the future of Internet in developing countries. We apply focused our discussion on the impact of the Internet on the twain around populous developing countries, India and China.IntroductionIn todays orbit where globalization is inevitable if you want to succeed, the Internet is your but re infract. The Internet has revolutionized information applied science and made information opening across boundaries very easy. It has bedc everyplace in all in all spheres of life and you arsenot ring of life without the Internet. Come to think of it, how did the Internet evolve and how did it become such an essential part of our lives?The Internet has created compet itor by contracting many intertheme and native information technology vendors on to the equivalent platform and has raised the standards of quality of services. pull d give though the Internet has its advantages, the developing countries ar facing a mickle of issues in using it to fall upon maximum benefits. Some concerns be cogitate to the home costs, spoken language and cultural barriers, semipolitical barriers and economic costs. If the issues related to the growth of the Internet can be tackled, there would be phenomenal growth in the economy of the developing countries due to the benefits of the Internet.Statement of PurposeThe threesome major aspects involved in the overall development of a terra firma be economic, political and social. As it is evident from the success of the Internet in developed countries, and will be clear from the trialples stated in the paper, we can see that the Internet plays a very important role in all these aspects.It is evident fro m the extent of role of the Internet in our quotidian lives that it has and will continue to change the way we live. How it has changed, and how it will continue to change our lives, is the reason for discussion on the topic of Impact of the Internet in Developing Countries. We are discussing the impact of the Internet specifically on developing countries because the ken and number of users of the Internet is still growing. As compared to the number of users of the Internet, the violence of the benefits of the Internet has been phenomenal.Evolution of the InternetThe idea of the Internet originated about 25 years ago at the US Defense Department progress research Projects Agency (ARPA), to keep track of data through calculator hardware and software. The Internet is now a complex web of networks committed with last-speed cogitate cutting across countries. there are no set boundaries for the Internet in cyberspace. Recent statistics show 50,000 networks in more(prenominal) t han ampere-second countries with more than 50 million users (MIDS press release). It is estimated that the rate of growth in Internet use is around 20 per cent a month. Currently the Internet is not proprietary and is gettable to anyone with computer recover connected to the out-of-door world. Since the USA launched the information superhighway in 1994, the Internet has come to play an ever- change magnitude role in the vast information market in many countries.Malaysias Prime Minister, Mahathir Mohammed, once saidIt can be no accident that there is today no wealthy developed solid ground that is information lamentable, and no information rich country that is poor and chthoniandevelopedThis statement emphasizes the importance of the Internet for developing countries. From an international stance admission price to and use of the Internet is unbalanced there are unequivocal gaps between developed and developing countries in terms of the numbers of nets, hosts and users. tra ining Environment in Developing CountriesChina and India have the highest population among the developing countries. With the vast population, the market for the Internet in these countries is huge. Both India and China are information-rich countries with a long tradition of learning and applying their knowledge. Both countries have had phenomenal growth economically and are utilizing information technology and information management for the same. The reduction in the price of personal computers and the multimedia influx alone accelerated the growth in Internet usage.For countries with vast information centers, the Internet proves to be the almost valuable resource.Chinese habitual information systems are divided into six categories(1) data centers associate with the National Scientific and proficient Commission(2) selective information centers belonging to central brass ministries(3) Information centers of a provincial nature(4) Information centers of a specialized nature a ffiliated to regional governments(5) Information centers affiliated with state enterprises, universities and otherwise research institutions(6) Information centers of non-governmental, regional, professional and similar bodiesIn India, at the national level the briny sources of information include(1) Various line ministries(2) The Central Statistical governing body (CSO)(3) The National Sample Survey Organization(4) The Registrar-General of India (RGI)(5) The National Information join (NIC)(6) The Center for Monitoring Indian Economy (CMIE)(7) The Federation of India Chamber of duty and Industries (FICCI)(8) Tata Energy Research Institution(9) The Center for Science and Environment wedded such huge information centers in some(prenominal) countries, the earth indispensableness for the Internet and its potential are vast.Areas of concern in Developing Countries deuce-ace major areas of concern about the Internet in developing countries are(1) National information indemnity(2) regulatory framework and information infrastructure(3) Proper raising and trainingNational information policy sentiency of various information sources in developing countries is limited to oral form. sense in print is negligible. The national information policies in developing countries trim back on trade, international relations, national security and technology, but they barely boil down on electronic entranceway of information through the Internet to achieve maximum benefits. For rapid economic growth, official documents of developing countries should include high priority plans to implement electronic information delivery systems. National policy documents, alike five-year plans, should contain policy statements and should be implemented on time. competent funding should be available during planning and implementation phases of electronic information access models.Regulatory framework and information infrastructureDeveloping countries have a regulatory framework in place , which discombobulates protection of investing, intellectual piazza and undivided privacy compulsory in the information market. Developing countries have legal frameworks in place, which deals with occult sector involvement, skilled human resources, standards and implementation. Regulatory frameworks for information do not exist.Even though information technology and telecommunications have made a way into all the markets in a developed country, in developing countries, information technology is still seen only(prenominal) as a means to support information management systems, pay and accounting facilities and data processing.As compared to the population numbers, the per capita perceptivity of computers in both India and China in the area of small status/home office (SOHO) is very insignificant. Telecommunications has in like manner not yet picked up in India and China. If the information infrastructure were to cover the wide Indian and Chinese markets, and if technology was used for global access to information through the Internet, there would be a phenomenal economic growth in these countries. Both the countries demand to urgently address the awareness of the Internet and its importance for policy makers at the political level.Proper procreation and trainingAs in developed countries, workforces in developing countries are also adopting knowledge-based methodologies rather than labor intensive ones. Surveys have shown that Internet use is associated with higher education in developed countries. The same applies to developing countries. Literacy rates in developing countries needs to be improve to a great extent. The governments, central, state and local and learning institutions and civic associations should take responsibility and should work together to raise the literacy levels in developing countries. Information professionals should be trained on priority. Trained information professionals can make better use of the Internet and will be mo re cost-efficient in acquiring, organizing and propagating information. Developing countries are often concerned about preserving language and culture heritage and supporting political systems. They are weary of abroad economic formats. Thus, proper trainings and seminars for information professionals is a must. These trained professionals can help educate the masses and can take advantage of the benefits of the Internet. This would help in sharing of knowledge through cyberspace and would help in change magnitude the value of the global information sector.The Internet will support development in the following ways* Assess the information capacity of the country and determine the needs of users, organize and synthesize information and provide access to internal and foreign information* Disseminate information to meet the earth needs and personal sectors and the quotidian information needs of the general publicThe governments role in utilizing the Internet is very critical. It influences the appropriate use of the Internet for social and economic change in the shift from labor-intensive merchandise to knowledge based information industries. Also, it reveals the market to a strong private information sector by defining public and private sector relationships. In order to destroy monopolies and encourage competition among international and indigenous vendors, it redefines telecommunication policies.Internet Growth in IndiaInternet service in India strikeed in 1994 with government being the monopoly provider. Service was costly and unreliable and by 1996 there were only 4,000 lecturers nationwide. In 1998, the ISP market was deregulated. By 2000, there were 225 ISPs (India Infoline 2001) and prices had dropped 60%. PC prices also dropped significantly owing to lowering of import duties. The subscriber base then grew rapidly, reaching 1.8 million in January 2001. E-mail and remonstrate are the most popular applications (Natarajan 1999). E-commerce is yet to find wide credence but is expected to touch $2.3 billion by 2002 (Pai 2000a). PC penetration in ur criminalize middle class households has increased in new times (Dataquest 2000 Pai 2000b), and has led to an increase in the Internet subscribers. The popularity of the Internet has also had a feedback effect on PC sales (Dataquest 2000).The demand for bandwidth outstrips allow thirty-fold (Desai 2001). As of December 2000, there were only 28 million prognosticate lines equal to a tele-density of 3.5/100 persons. Alternatives to analog modems, such as ISDN lines or cable modems, are limited. Regulations have also stifled Internet growth. The ban on Internet telephony and the requirement to obtain security headroom before setting up an international gateway are two examples. In short, Internet diffusion in India started very recently and is characterized by high telephone charges, limited customer acceptance of E-commerce applications, limited telecommunications infrastructure, and constrictive regulations. These characteristics are prevalent in many other developing countries as well.The VSNL, is still by far the dominant player in the ISP market, and maintains the backbones that most private firms will have to use to provide access to consumers. There is currently one Level 1 gateway owned by VNSL, as well as a Level 2, through which most private companies will have to connect.1995/961996/971997/981998/991999/20002000/20012001/2002StatesPopn CAGR (81-91)EstdPopnCAGR of LinesActualLines 000Lines/100EstdLinesLines/100EstdLinesLines/100EstdLinesLines/100EstdLinesLines/100Estd LinesLines/100Estd LinesAP2.19696.9820.447971.359591.5911551.8713912.2016752.6020172.582044Assam1.20227.3721.591070.561300.681580.811920.982331.172831.16284Bihar2.14903.3019.972800.363350.434010.504810.595770.696920.68694Gujarat1.94428.6516.529162.4410672.7912433.1914483.6416874.1619654.182012Haryana2.45174.5221.312952.003572.364332.805253.316363.917713.90786Himachal1.9153.6028.27110 2.581413.231804.062305.102956.423786.45387JK2.5782.2913.61530.71600.79680.87770.96871.05981.0298Karnataka1.93466.5220.327841.989432.3411342.7613643.2616413.8519743.852013Kerala1.35307.7422.246812.678323.2210173.8812434.6815195.6418565.711905MP2.41700.2522.476231.067621.279331.5211421.8213982.1717122.141730Maharashtra2.32831.8618.7024253.3828783.9234164.5540545.2848126.1257116.195904Orissa1.85327.4419.681660.591980.692360.822820.963371.124031.11405Punjab1.91210.2225.235713.347154.18955.0311206.1814027.6017557.701813Rajasthan2.53468.7028.144941.326331.658112.0610392.5713313.2117053.171727TN1.44570.1722.0110142.1412372.5715093.0918413.7222464.4727404.502798UP2.301464.7125.538100.6810160.8312751.0216001.2520081.5425201.512537WB2.23714.4415.566100.967041.098131.239391.3910851.5712531.551265The to a higher place table represents an extrapolation based on the s available at the end of the 1995-96 fiscal year. The s show that the penetration of phone lines is in situation growing faster t han the population. In addition, the s represent only the penetration of public services, whereas the latest telecom policy calls for added investment in the private sector. Nevertheless, it is clear that the current trends in growth will not expiry in the planned telephony penetration into India (7% by 2005 and 15% by 2010). In addition, in many cases the s are skewed towards the urban regions within the states, and mask a poorly developed rural sector. Thus, the general indication at this juncture is that there is a clear need for dedicated infrastructure developed throughout india.The Impact of the internet in developing countries http//cse.stanford.edu/classes/cs201/projects-00-01/third-world/india-overview.htmlModeling Internet GrowthTo get a native fellow feeling of the technicalities of Internet diffusion in developing countries, we will discuss a model, which combines transmittance effects and their action with external factors.There are a variety of methodologies avai lable in the market to represent moral force processes. We will be discussing the SD (Sterman 2000) model. Some of the reasons for choosing this model are listed below* The feedback iteration, which is the main morphological element in an SD model, makes the model well suited for capturing the interaction among different drivers of diffusion over time* The SD model not only represents quantifiable variables, but also soft variables, which help in understanding because the diffusion context has both social as well as technical aspects* System conduct in SD models resolvents from interaction among its feedback loopsWhen you build an SD model, you start with the development of a causal loop graph that consists of a assemblage of causal links. Each of these causal links has a certain polarity. A positive (negative) link is associated with a reinforcing (balancing) relation. A positive (negative) change in the cause in this scenario leads to a positive (negative) change in the effect . subtile lines intersecting causal links represent the delays in an effect. A causal loop is the result of a closed sequence of causal links and the loop polarity can be easily understood from the individual link polarities. The causal loop graph results in a numeric model in which relationships are illustrated by means of time alter difference equations. A what-if analysis is conducted by simulating the mathematical model under different parametric and structural alternatives.The given supra depicts the causal loop diagram for our diffusion model. The first of validation is the verification of each of the structural components involved. We will be discussing the foundation for the core component, followed by the selected components that capture external factors that are typical of developing countries. At the heart of the diagram lies the contagion based Internet Adoption, which helps PC owners become Internet subscribers. Innovation Coefficient and put on Coefficient drive Co ntagion in the same manner as in Bass 1969. The causal loop structure consisting of the above five variables would result in the familiar S-shaped diffusion curve, if it did not have any other structural components. The basic contagion mechanism is augmented by external factors typical of developing countries. In the above , this is accomplished by private road the contagion parameters by external factors like PC price, tele-density and the level of competition allowed by regulation.Model validation Replicating ascertained behaviorReplicating the observed behavior is the second stage involved in validating an SD model. The given above was transformed into the corresponding difference equations and was then implemented using the iThink package.The s given below provide a comparison of the simulated and observed behavior of subscriber base and growth rates respectively, using quarterly data for India from 1996 to January 2001(Dutta. A, Roy. R, 2001)(Dutta. A, Roy. R, 2001)Conclusio ns from this modelThe validated model offers a synthetic environment that helps us in analyzing the effect of different external factors. Loop effectiveness analysis (LDA) was used in SD parlance in order to snap the external factors. A dominant loop is one, which is mainly responsible for model behavior over a particular time interval. The relevance of LDA is that it helps in identifying which loops need to be strengthened and/or weakened, through policy actions, so that we can achieve maximum desirable behavior.Two conclusions analyzed from our model, using LDA, are listed below* Low infrastructure facility, high hourly usage costs and low geographic dispersion are dominant in the diffusion process. Regulatory policies would help in weakening these variables and therefore would die hard the future diffusion processes.* as well as the industrial countries, security concerns have not spread intensely in developing countries. One explanation for this could be that e-commerce has not yet got a hold in developing countries. semipolitical barriers hindering the growth of the InternetThe political atmosphere in India is to bill for the slow growth of both, the Internet access and the telecom infrastructure. In spite of the liberalization of Indian economy in 1991, the telecommunication sector remained in tight control of the government. This resulted in a number of problems for both, private firms as well as consumers.Even though the government has increased its vex in promoting the growth of the Internet throughout India, there is still a need for the review and/or removal of regulations still in place if we want the telecom industry to flourish.The government should rethink its current policies on telecommunications, take into account the global changes brought the about by the advent of new technology, and work to create a market environment that is favorable for investment by both local and international IT firms. Impact of the Internet on various secto rs in developing countriesThe Internet has considerable potential in various sectors in developing countries Education Banking and Finance trade governance Telecommunications Travel and TourismWe will discuss the impact of Internet on some sectors in detail.a) Impact on EducationThe world of education is undergoing some major changes, the most important of which is the use of the Internet in teaching and learning. Before the advent of the Internet the main sources of information for students were the teachers and the books available in the libraries. Now, thanks to the Internet, teachers are fair one of the sources of information. Global access to information has widened their horizons to gain maximum knowledge.In this Information age, the Internet has helped involve students in active learning. They are more interested in hands-on learning, which presents them with practical, real-life experience. Studies have revealed that this style of learning results in better computer memor y and understanding of topics. Also, learning is now not confined to the walls of the institutions. The easy and degenerate access to infinite resources of information has encouraged out of the box thinking.Besides these benefits, the Internet has helped in personal development of students. Social interaction over the Internet has helped students who are shy to interact and improve their communication skills.With the advent of the Internet, the concept of online exams has also evolved. It has become easier to appear for exams like GRE, GMAT, TOEFL, technical franchise like SCJP etcetera These exams are now conducted online, which has helped people in developing countries to enhance their knowledge. It has reduced the overheads and hassles involved in personally going to exam centers.One of the best examples would be CISCO human network which has promoted education in remote areas of almost all developing countries like India, Africa etc. by using the Internet for teaching through virtual classrooms which use video conferencing.b) Impact on Banking and FinanceAround the clock banking is one of the biggest advantages of Internet use in banking. With the help of the Internet, we have remote access to the banks, which helps in transfer of money overseas with concepts like RTGS from RBI, India. It has reduced daily visits to the banks because we can get regular updates about our bank details online. disbursement on administration services, paper, stationery etc. has been reduced which has helped in increasing the profit margins of banks besides being environment friendly. Internet has eliminated the tedious paperwork involved in banks, and has provided easy and fast access, making life much easier for bankers as well as customers.The concept of digital signatures has also picked up and it will only enhance the benefits of Internet banking.Tedious and monotonous process of transaction with brokers has been eliminated with the help of Online Trading. Demat account s have eliminated the concept of physical shares.c) Impact on BusinessThe Internet has provided a global source of information, which helps in developing new strategies and methodologies to enhance businesses. Even for the smallest of traders, constant updates of the prices of commodities are available online.Some companies use the Internet to build direct associations with their customers. Others are using the Internet to bring together buyers and sellers in the new tremendously efficient marketplaces. The Internet has taken the concept of e-Commerce to e-Business. The growth of the Internet has promoted inter-company trade of goods over the Internet. The best examples would be of online websites like e-Bay and other companies promoting online gifting systems. Airline industries have also benefited a throne from the Internet. Tickets can be booked online at any time of the day.d) Impact on AdvertisingThe companies attract customers by building brand awareness and by providing mar ket information over the Internet. This can be seen in the recent IPO (Initial Public Offerings) releases like those of Reliance Petronet. In e-business, the meshwork are generated not only by speeding up and automating the companys own internal processes but also by recognizing its baron to spread the efficiency benefits to the business systems of its suppliers and customers. The capability to team up with others may be just as much of a competitive advantage as the ability to deploy the technology.e) Impact on e-GovernanceWith the growth of the Internet, people have complete that the use of information and communication technology to provide and improve the government services can be highly beneficial. Using the Internet for e-Governance is a convenient and cost effective method to provide people access to current information. Internet can promote greater citizen participation in the nations capital. It will encourage people all over the country to interact with politicians to make their voices heard so that the political situation can improve and the countries can progress.E-Governance would make the political system more efficient, provide improved services, better accessibility of public services and would make the processes more liquid and accountable. Nowadays, online counseling for entrance exams has reduced the overhead for the government institutions. Developing countries are now using the Internet to manage the biggest networks like railways. All traveling transactions can now be done online on websites like www.irctc.co.in (India).f) Impact on TelecommunicationsInternet has helped the developing countries in reducing the national as well as international call rates. The BRIC (Brazil, Russia, India and China) nations have all taken up the concept of VOIP (Voi