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Introduction Nowadays, economic survivability of every nation depends so much on security; security of resources – information, personnel, physical as- sets, transport networks and of national borders. The systems that drive economies in today’s world are being taken over by digitization and cyber- communication. This means that economies and communities that trail behind the pace of digiti- zation and cyber-communication are likely to be excluded from vital information resources, com- mercial societies, international trade and more at risk of economic downturn. This is because stron- ger economies conduct business and trade by em- ploying electronic business systems and new tech- nologies as tools that facilitate business processes. In the paper bridging the digital divide “Linking and closing the gap between advanced and devel- HOW SECURED ARE ADVANCED ECONOMIES IF ADVANCING ECONOMIES ARE LESS SECURED? Johnnes ARREYMBI School of Computing & Technology University of East London, UK E-mail: [email protected] Abstract. The modern world economies are today threatened with insecurity throughout every aspect of busi- ness, technology, health care, public resources and more increasingly governments and policies structures. The philosophy that a secure premise can be adequately protected and give maximum security to the ringed-occupants can no longer hold. Borders have become porous; the ring of steel and castle-style high walls can no longer protect any economy. The environment under which they operate can be influenced so much by other factors such as neighbours, economics of existence, technologies and relationships to name a few. This paper analysis ICT issues in relation to economics of security and development, and highlights the adage that, ‘No man is an Island’, i.e. no system can exist in isolation. And with the world becoming a global village, (in)security of any nation must be the concern of one and every nation in the global equation. Can ICT ‘balance the act’ and provide solutions to the many global questions? JEL Classification P470, P510. Keywords: economics of security, development and sustainability, ICT, economies (developed and developing). Reikðminiai þodþiai: saugumo ekonomika, plëtra ir tolydumas, informacinës technologijos, iðvystyta ir besivystanti ekonomika. oping economies”, D. Anderson (2005) presents a historical analysis of how a “bridge” literally links communities together to drive trade and com- merce. ICT, digitization and cyber-communication are the frontiers that form this bridge in this era. In the paper assessing the economics of electronic security Arreymbi and Williams (2005) assert the need to evaluate non-technological factors which they believe influence economies of developing countries. Some of their views contrast findings of OECD with regards to technological studies. This paper applies some analysis in exploiting eco- nomic survivability of emerging economies and attempt to link it with some of the issues of inse- curity that exists both within advancing and ad- vanced economies. The paper is organised as follows: Section one provides the background to this work, Section 2 is an overview of ICT activities that drive the digi- ISSN 1822-8011 (print) ISSN 1822-8038 (online) INTELEKTINË EKONOMIKA INTELLECTUAL ECONOMICS 2007, No. 1, p. 7–18 VE RI TIA TAS IVS TI

Transcript of HOW SECURED ARE ADVANCED ECONOMIES IF ADVANCING …

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Introduction

Nowadays, economic survivability of everynation depends so much on security; security ofresources – information, personnel, physical as-sets, transport networks and of national borders.The systems that drive economies in today’s worldare being taken over by digitization and cyber-communication. This means that economies andcommunities that trail behind the pace of digiti-zation and cyber-communication are likely to beexcluded from vital information resources, com-mercial societies, international trade and more atrisk of economic downturn. This is because stron-ger economies conduct business and trade by em-ploying electronic business systems and new tech-nologies as tools that facilitate business processes.In the paper bridging the digital divide “Linkingand closing the gap between advanced and devel-

HOW SECURED ARE ADVANCED ECONOMIESIF ADVANCING ECONOMIES ARE LESS SECURED?

Johnnes ARREYMBI

School of Computing & TechnologyUniversity of East London, UKE-mail: [email protected]

Abstract. The modern world economies are today threatened with insecurity throughout every aspect of busi-ness, technology, health care, public resources and more increasingly governments and policies structures. Thephilosophy that a secure premise can be adequately protected and give maximum security to the ringed-occupants canno longer hold. Borders have become porous; the ring of steel and castle-style high walls can no longer protect anyeconomy. The environment under which they operate can be influenced so much by other factors such as neighbours,economics of existence, technologies and relationships to name a few. This paper analysis ICT issues in relation toeconomics of security and development, and highlights the adage that, ‘No man is an Island’, i.e. no system can existin isolation. And with the world becoming a global village, (in)security of any nation must be the concern of one andevery nation in the global equation. Can ICT ‘balance the act’ and provide solutions to the many global questions?

JEL Classification P470, P510.Keywords: economics of security, development and sustainability, ICT, economies (developed and

developing).Reikðminiai þodþiai: saugumo ekonomika, plëtra ir tolydumas, informacinës technologijos, iðvystyta

ir besivystanti ekonomika.

oping economies”, D. Anderson (2005) presentsa historical analysis of how a “bridge” literally linkscommunities together to drive trade and com-merce. ICT, digitization and cyber-communicationare the frontiers that form this bridge in this era.In the paper assessing the economics of electronicsecurity Arreymbi and Williams (2005) assert theneed to evaluate non-technological factors whichthey believe influence economies of developingcountries. Some of their views contrast findingsof OECD with regards to technological studies.This paper applies some analysis in exploiting eco-nomic survivability of emerging economies andattempt to link it with some of the issues of inse-curity that exists both within advancing and ad-vanced economies.

The paper is organised as follows: Section oneprovides the background to this work, Section 2is an overview of ICT activities that drive the digi-

ISSN 1822-8011 (print)ISSN 1822-8038 (online)

INTELEKTINË EKONOMIKAINTELLECTUAL ECONOMICS

2007, No. 1, p. 7–18

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RI

TIATAS

IVS

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tal economy, Section 3 is an evaluation of thefindings drawn from the application of the SWOTframework, Section 4 discussions and conclusions.

1.1. Background

Economies thrive on availability of resourcesand how these resources are managed (Anderson,2005). Many political land borders are fast becom-ing eroded, more especially in Europe than any-where else in the world. This also leaves room for(in)security debates. Historically economies havebeen driven by factors, such as resource availabil-ity, political environment and sometimes culturein societies. The latter is least exploited as anengine for propelling an economy to success. Inthis era we face the challenge of managing tech-nology as a catalyst to economic development andtransformation. It can also determine the successor failure of any business in modern society. Ac-cording to Delong and Froomkin (2000), non ri-valry and absence of excludability among servicesand products makes Adams Smith’s principle of“invisible hand” at the market place unstable. Thisis because the nature of services and productsavailable to consumers on the market has radi-cally changed as a result of the systems that sup-port commercial activities. In other words systemsthat support e-commerce and e-business activi-ties suppress the concept of excludability as ameans of protecting the value a service provider,seller and product manufacturer place on prod-ucts and services at the market place.Organisations in both private and governmentsectors historically played important roles. Wehave passed through a metamorphosis oforganisational structures and management styles.This permeates from the ancient hierarchical struc-ture style of organisation, the human relations inthe 1950’s to 1960’s driven by management gurussuch as Rosemary Stewart of Ford Motors and theInformation age which has now evolved to thedigital and cyber-communication age.Organisational culture within private and publicsectors also drive economies. Section two exploreselectronic commerce and business activities whichhave become central to economic activities in de-veloping and advanced economies.

1.2. The effect of ICT in emergingeconomies

Globalization has drastically improved accessof advanced technologies to most deprivedeconomies of the world. Technological upgrad-ing is important for development, to an extentthat it provides a unique opportunity for advanc-

ing economies to raise per capita income, and alsoimproves the demand for skilled labour. Nagy(1991) reported the Malaysian Prime MinisterMahathir Mohammed as saying: “It can be noaccident that there is today no wealthy developedcountry that is information poor, and no infor-mation rich country that is poor and underdevel-oped”. This statement emphasizes the importanceof the Internet for emerging economies. From aninternational perspective access to and use of theInternet is unbalanced due to factors which willbe highlighted later in this paper. There are obvi-ous gaps between developed and developingeconomies in terms of the numbers of nets, hostsand users. John (1995) agrees and quotes a studyfrom the Panos Institute which indicated that,there is a danger of a new information elitismwhich excludes the majority of the world’s popu-lation.

Many see the ICT as an opportunity to gainaccess to knowledge and services from around theworld in a way that would have been unimagin-able previously. For example, Internet kiosks, Tele-phone call boxes (phone booths) mostly facilitat-ing email and phone calls to overseas relatives,are springing up in many parts of Europe, Africa,Asia and Middle East. Meanwhile poor land linetelephone systems in most of Africa and Asia arerapidly being bypassed by mobile phones, some ofwhich have internet access or Internet Cafes withVoice Over Internet Protocol (VOIP) enabled tech-nologies.

ICT has also significantly changed informa-tion management in developed economies throughcreating pressures to improve communication sys-tems and develop more user friendly environmentsfor information sharing. Now the Internet is pen-etrating developing economies, and changing in-formation practices in various sectors. The webfor example, is also changing traditional ways ofconducting information business in developingeconomies by establishing new sources of infor-mation and new modes of communication. It hascreated pressure to update information/technol-ogy infrastructures and has similarly created com-petition by bringing many international and in-digenous information technology vendors on tothe same platform, and providing policy makersin these economies, the opportunity to take ad-vantage of access to global information resources.

2. Overview of ICT activities that drivethe digital economy

In Europe, the USA, Japan and most ad-vanced economies, the Internet and World WideWeb drives these economies at very high speeds.

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The Internet is now a complex Web of networksconnected with high-speed links cutting acrosscountries. There are no set boundaries for theInternet in cyberspace. It is estimated that the rateof growth in Internet use is around 20 per cent amonth and with over 50 million users (MIDSPress). Presently the Internet is not proprietaryand is available to anyone with computer accessconnecting to the vast information market in manycountries. Internet allows information to flowthrough many different interconnected computernetworks worldwide.

Aguolu (1997) defines “developing” or“emerging” economies as the less industrializedand economically developing nations of the world,usually with less than $500 per capita income. Inessence, such economies have a great desire forrapid growth and industrialization and are striv-ing to provide adequate basic infrastructures thatfoster development and promote information ac-cessibility, such as health, education and libraryservices, steady supply of electricity, good roadsand transportation, and postal and telecommu-nication networks, etc. The relevance of Internetaccess to such economies is the degree to whichthe lives of those who do not have access couldbe improved by having it. Clearly, in such calcula-tions, the role of the nation is very important,because the result of lack of ICT or Internet ac-cess affects the entire country (Sadowsky, 1996).

2.1. Developing Economies and ICT-web

Many applications exist on the Internet. How-ever, it is the web which has the most significantcapability and momentum in the commercial useof the Internet (Berners-Lee et al., 1993;Cockburn and Wilson, 1996; Semich, 1995). Therapid expansion of the worldwide web holds sub-stantial promise for developing economies, oftenreferred to as “information have-nots”(Arunachalam, 1998) and are considered as “the“lost continent” of information technology”(Odedra et al., 1993), and which can benefitgreatly from it’s communication and informationdelivery capabilities. The accelerating transitionof information to electronic media is making in-formation resources of the world available to anincreasingly global audience through the ICT-web.Developing economies have much to gain fromthat revolution in communication and informa-tion access. In contrast to the situation in thedeveloped world, where transport and communi-cations infrastructures for delivery of both physi-cal goods and information services are well estab-lished, the alternatives available within develop-ing countries are generally slow, expensive, ornonexistent.

Increasingly, many analysts agree that, theimpact of the ICT-Web and its resources in emerg-ing economies (Bhatnagar, 2000; Jimba andAtinmo, 2000; Madon, 2000; Morales-Gomez andMelesse, 1998; Talero and Gaudette, 1996), havegenerally provided avenues supportive of the de-velopment process by making information andknowledge more accessible, and more directly use-ful in applications such as distance learning,telemedicine and geographic information systems.Its role is considered crucial to the provision ofpeople’s basic needs, such as healthcare, food, andshelter, both in emergency situations and in thelonger term, directly in social economic terms andindirectly by enabling research activities (Avgerou,1998; OECD, 2000). The resources of the web areincreasingly playing a crucial role in developingeconomies’ capacities to produce access and ap-ply information, and thereby to enhance the pro-cess of acquisition and sharing of knowledge (Mo-rales-Gomez and Melesse, 1998).

The correlation between information, com-munication, and economic growth is well-known,making the usefulness of the Internet nearly self-evident. Electronic networking is a powerful,rapid, and inexpensive way to communicate andto exchange information. When networks areavailable, previously unanticipated collaborationseems to come into being almost spontaneously.The underlying cause seems to involve a latentdemand that remains latent as long as joint workrequires either the disruption of waiting for themail, the continual retyping of texts transmittedby mail or fax, or the need to secure large bud-gets and approvals for extensive internationaltravel.

The Worldwide web is also crucial to scien-tific research and development efforts, many ofwhich yield tangible economic benefits. Commer-cial economic growth is enhanced by access to in-formation and improved contact with supportpersonnel. Although academic research institu-tions in advancing countries may be using the re-sources of the web for these purposes, very fewstudies have explored this phenomenon. A rareexception is a study by Jimba and Atinmo (2000),which found that Internet accessibility had nopositive impact on the number of publications infive research institutions in Africa. Jimba andAtinmo list several reasons for this surprising re-sult, such as low productivity in general, the con-tent of the electronic databases not being relevantto the researchers in question, and that Africanknowledge was not integrated with the services.

And as has been demonstrated in a numberof countries including Cameroon, the link be-tween the free flow of information and movement

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toward democratization cannot be downplayed.Access to information affects political democra-tization efforts at the global level as well as withinnations. In advancing economies where much ofthe media is controlled by the state, and individualaccess to the web is currently limited, the need todecentralize control over information and overnetworks themselves is clear in this regard.

2.2. Barriers and challenges fordeveloping and advanced economies

A major problem facing emerging economiesis the problem of information (in)accessibility.Though information is widely recognized as a cata-lyst for both personal and national development(IFLA, 1988), many people, especially in the de-veloping economies, are still unaware of the needfor information and fail to exploit it even wheninformation materials are available for free as inlibraries and information centres. This is becausethe availability of information does not necessar-ily mean its accessibility. The wealth of informa-tion available or in existence in the world today istremendous and the sheer volume of it, in a myriadformats, makes it impossible for one to have com-plete access to it.

Other obstacles to information accessibilityin developing economies as enumerated by Doob(1961), Schramm (1964) and Turner (1988), in-cludes illiteracy and lack of awareness of the needfor information; geographical distances; povertyand underdevelopment. These constraints hardlyexist in developed or advanced and industrializedeconomies, where basic infrastructures and facili-ties exist and the majority of the populace, about96 per cent according to UNESCO (1991), is lit-erate and educated and are able to exploit infor-mation resources systematically.

However, the developed economies consti-tute only about 20 per cent of the estimated sixbillion people who populate the world today(UNESCO, 1991). The rest, comprising about fourbillion people, live in developing economies. And70 per cent of these people are illiterate and can-not exploit the information stored in print andother media formats. These people are generallypeasant farmers, craftsmen and women who arein most cases, unaware of the need for informa-tion and live their lives routinely, using whateverlittle information they may stumble on, or ispassed to them orally by relatives, friends, col-leagues, community and religious workers.

Unemployment is also very prevalent charac-teristic of most advancing economies. And issuesof poverty tend to breed contempt in these soci-eties, which may lead to individuals wanting to

flee the system to find prosperity in advancedeconomies. While advanced economies such as theUK and USA can afford to spend over 10 percent of its national resources (GDP) on informa-tion services alone (Garfield, 2001), advancingeconomies often spend less than 1 per cent onthem. Much of their scarce funds is allocated toother social services like health, government, edu-cation, housing, agriculture, transportation, etc.,which are given priority over information systemssuch as libraries, documentation and informationcentres etc.

Poor communications and transportation fa-cilities, which are regular features of advancingeconomies, also constrain information transferand accessibility both locally and internationally.Poor infrastructure, transportation and postal andtelecommunications services are a great impedi-ment to the free flow of information, as Schram(1964) emphasized. Inefficient telecommunicationand transportation systems by air, sea and landsuch as unreliable telephone and postal facilities,as well as irregular train, airplane, bus/car services,will greatly hinder information dissemination.

In Cameroon, for instance, most of its popu-lation is scattered in numerous communities oftowns and villages often with great physical dis-tances between them. The free flow of informa-tion among and beyond the communities requiressound developmental infrastructures such as regu-lar electricity supply, good roads, vehicles, trains,aeroplanes, airports and steady postal and tele-communication services. Some of these amenitiesexist but their quantity and quality are generallyinadequate and poor.

Khan (2001) identifies the major causes ofpoverty in developing economies as the politicalenvironment, systemic discrimination based ongender, race, ethnicity, religion, or caste, politi-cal inclinations or affiliations, ill-defined prop-erty rights to agricultural land and other naturalresources, high concentration of land ownershipgiving unfair disadvantage to tenants, politicalcorruption and/or bureaucratic red tape, largefamily sizes resulting in high dependency ratios,and national economic and social policy biases.

Information poverty in such situations, is oneof the more significant and insidious obstacles toeffective exploitation of information processingand other types of technology. Lack of adequateinformation regarding developments in othercountries and other environments is often notnoticed, and in the absence of new information,old techniques and procedures are continued with-out conscious knowledge of alternatives. In addi-tion, even though developing nations may not behurt in an absolute sense by lack of information,

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they are certainly negatively affected by any rela-tive measure (Sadowsky, 1996).

In general, within developing-economic en-vironments, requisite specialized knowledge isoften either missing or in short supply. There isgenerally substantial competition for the scarce,more talented individuals within both the publicand the private sectors as well as between them.Emigration to better labour markets in the moreadvanced economies – the so-called ‘Brain DrainSyndrome’ – causes depletion of the resourcesnecessary to exploit technology, in the face ofcountries having a limited set of human resourceswith which to work. Most but not all developingeconomies are financially poor relative to devel-oped economies. They suffer from low levels ofboth Institutionalised financial assets and Na-tional income. Their economies are subject towide-ranging performance fluctuations due tofactors beyond their immediate control. Some arenot viable without sustained development assis-tance.

Increasingly many emerging economies arebenefiting from direct assistance in transferringtechnology to themselves. Involvement with pri-vate-sector firms in developed countries can havesubstantial benefits; with policies promoting do-mestic investment as well as taxation and profitrepatriation incentives, can encourage firms toenter local markets and provide benefits for theeconomy. Private foreign investment in high-tech-nology fields often brings with it significant flowsof information and training opportunities.

3. Evaluation of findings from SWOT

This section assesses the findings derived fromthe SWOT analysis as indicated in appendix 1.The evaluation is based on a cross section of thestrengths, weaknesses, opportunities and threatshighlighted and central to the criteria of thisstudy.

3.1. Labour

ICT is changing the labour market in devel-oping economies. The pace of ICT developmentand deployment in developing economies is leap-frogging while skills required to drive and sustainthis process seem to be relatively crawling. Trans-portation, outsourcing, subcontracting, accessibil-ity, equality and new investment opportunities areall strengths that are likely to facilitate socialprogress (Zachaman, 2004). These strengths ashighlighted by Zachamann had some bearing withour analysis. Untapped skills and capabilitieswithin developing economies, is a “gold mine” to

explore. This could have economic value whenproperly natured and cultivated. A recent initia-tive by the AICE foundation in Ghana is explor-ing this avenue as a means of tapping into thetechnical capabilities of graduates in the localeconomy. There is also the strength of cheaperlabour cost that could increase the demand foroutsourcing and delocalization of services.

3.2. Cost of transportation

Cost of transportation is an area that couldbe explored with effective implementation of ICTand cyber-communication. This could speed upthe transformation of rural communities amongdeveloping economies. Farmers in rural areascould take advantage of cyber-technology and ICTsystems to assess the need and feasibility of trans-porting food stuffs to urban communities. This isopportunity could be hampered by the lack oftechnological infrastructure in rural areas. Theapplication of wireless communication technolo-gies seem to becoming the panacea for address-ing this shortfall.

3.3. Moral and value system

The analysis shows that, high moral value isplaced on ICT systems among developing econo-mies. In contrast advanced economies do not placesuch moral value on ICT systems. This is drawnfrom the prevalence of internet and web pornog-raphy in advanced economies. However, one cannot be absolutely sure whether such cyber moral-ity adds any economic value. On the contrary thereis evidence that internet pornography yields eco-nomic value in advanced economies.

3.4. Infrastructure

Infrastructure could serve as strength as wellas a weakness. This implies there are opportuni-ties that could be exploited given the fact thatmost technologies associated with mobile commu-nication in advanced economies also exists in de-veloping economies (Williams, 2004). This is alsodepicted by Figures 1, 2 and 3 from the Interna-tional Telecommunication Union report. Thereare however impediments that suffocate the useand application of them. This range from poorleadership and management style, cultural atti-tudes, the lack of political will and commitment,government regulation, lack of policies and stan-dards and inadequate know how as mentioned

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previously. Such weaknesses could lead to capitalloses that could cause economic collapse. ICT in-frastructure and cyber-communication systems lackthe security systems, policies and standards nec-essary in ensuring confidentiality, integrity andavailability of systems essential in boosting confi-dence amongst investors within the internationalcommunity. Government policies and regulationssometimes lack clarity among countries in devel-oping economies. Activities of service providersare not rigorously regulated. Most Systems are byV-SAT communication networks through ad-vanced economies. This becomes difficult to man-age. These issues threaten the survivability ofthese economies in the digital world and economy.Until developing economies resolves to addressthese issues they stand the danger of being rel-egated to economies that survive on the edges ofsurpluses from advanced countries. There is alsothe danger that advanced economies will be forcedto address these issues as a result of the nature ofthe global economy and its inherent principle ofeconomic, social and moral dependency.

Emerging economies generally face problems:that impact on the capability to manage infra-structure. There is low level of education and lit-eracy, and a wide gap between the disposable in-come of the relatively few “haves” and the morenumerous “have-nots.” Use of the ICT requires afairly complex set of skills that could be acquiredthrough training. At the very least, one must haveelectricity, a communications line, a terminal ca-pable of interacting across the communicationslines, and (in most cases) a reasonable fluency inEnglish (80 percent of the material on the web iswritten in English). All of these factors contrib-ute to existence and sustenance of the digital in-frastructure.

3.5. Capital funding and investment

Funding required in setting up ICT relatedbusinesses could be mobilized by SMEs in devel-oping economies. Recently there have a prolif-eration of Internet Café’s among countries inAfrica. This is not only due to the ability to mo-bilize capital fund. Awareness is also increasing,if not catapulting amongst these communities.This is creating a vehicle for creating partnershipsbetween advanced and developing economies. In2002 Ghana passed a bill governing Venture Capi-talism to provide a regulatory framework forSMEs. This indicates the recognition of role SMEsand their role and contribution towards domesticeconomic growth.

Figure 1. Depicts Fixed Line Penetration per 100 Inhabitants

Figure 2. Depicts Penetration of Mobile and CellularCommunication Subscribers per 100 Inhabitants

Figure 3. Depicts Penetration of Internet Users per 100Inhabitants

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3.6. Legal framework and legislation

Legal framework in emerging economies isweak. The judiciary can operate effectively as aresult of numerous reasons. Laws and by laws en-acted do not address legal current matters relatedto cyber communication. There is problem relatedto enforcement due to porous security systems andthe non existence of cyber policing. These are le-gal issues that have to be addressed domesticallyin order for emerging and developing economiesto adjust to the pace of electronic commerce andbusiness activities on going in advanced econo-mies. On the international scene legislation anddirectives within the European Union stifleecommerce activities in emerging economies.

3.7. Self imposed economic sanctions

Specifically, in Afghanistan and other coun-tries in the Middle East, government oppositionto ICT has been a major factor in limiting Internetaccess. Many Middle Eastern leaders view theInternet as a Western-based agent of moral andpolitical subversion. As a result, many countriesstrictly enforce limits on Internet connectivity.Whereas Egypt and Jordan have been relativelyprogressive in building Internet connections,countries such as Saudi Arabia have shown moreresistance to allowing widespread access to theNet. Internet access is very limited in Syria, andLibya and Iraq prohibit any kind of Internet ac-cess. Bahrain and Tunisia openly monitor Internettraffic, and the United Arab Emirates and Yemenuse proxy servers that can prevent users from ac-cessing “undesirable” sites. Iran allows access, butthe extent of the traffic monitoring in that coun-try is uncertain (Alterman, 2000).

Conclusions

The importance of expanding the access ofemerging economies to the Internet has beenrecognised by governments and international agen-cies with increasing consensus that the Internetand related telecommunications technologyshould be regarded as strategic national infrastruc-ture (Kenney, 1995; Mansell and Wehn, 1998).This has led to significant rates of increase in theregional distribution of Internet host connectionsover the last few years (ITU, 1999; Arreymbi andWilliams 2005; Williams, 2004).

The establishment of such strategic infrastruc-ture is considered critical for the survivability ofemerging economies where the marginal impactof improved network communications can lead to

improved economic productivity, governance,education, health and quality of life, particularlyin rural areas (Adam, 1996; Press, 1996). For ex-ample, in Africa, the growth of small scale, lowcost electronic networks has been influential inbuilding an academic and research communitywithin the continent that discusses and sharestopics of concern (Adam, 1996; Panos, 1998; Wil-liams, 2004).

Another example is the networking projectlaunched by the Commonwealth Secretariat in1990 called COMNET-IT. The project aims toimprove government collaboration within the com-monwealth group of countries using electronicnetworks to facilitate the sharing of data on ad-ministrative reform experiences (Qureshi andCornford, 1994). These suggest that wider con-nectivity within developing economies would im-prove the overall information infrastructure andtherefore promote positive changes in socio-eco-nomic and/or political development.

Despite increases in the provision of infor-mation services that are available through theInternet for users in emerging economies, thereis considerable scepticism regarding the potentialof the technology for socio-economic develop-ment. For example, most Internet diffusion sta-tistics, although impressive, does not do justiceto reports on Internet density and cyber commu-nication penetration among emerging economies.This is sometimes as a result of the methodologyapplied in the studies. The studies do not takeinto factors such as size of population in eachcountry or region in these economies.

The fear expressed in this paper is that thepoor financial, technical and human resources andweaknesses highlighted in the analysis in emerg-ing economies would perpetuate further ties ofdependency on advanced economies and perpetu-ate further fears and alienation. There are no sil-ver bullet type of answers to these weaknesses,but however believe that successful cases such asthe tiger economies could be emulated by otherscountries in trailing behind the economic ladder.Our future studies will explore strategies and busi-ness models that could transform the emergingeconomies falling behind.

However, this does not imply that the secu-rity of advanced economies depends on the ad-vancing economies. The two go hand in hand andmust work in collaboration to formulate viable andfeasible policies, adaptable to suit the variant lo-cal cultures of the world.

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sibl

e to

all

•A

ttra

ctiv

e go

ods/

serv

ices

•M

ostly

up-

to-d

ate

& h

igh

tech

nolo

gies

dep

loym

ent

•L

earn

bet

ter &

qui

ckly

from

cos

tlym

ista

kes o

f the

dev

elop

edec

onom

ies

•C

ellu

lar t

echn

olog

y is

trul

yde

moc

ratic

•Fa

ster

mov

emen

t of

com

mun

icat

ion

& in

form

atio

n•

Impr

ove

awar

enes

s & k

eepi

ng in

touc

h•

Seen

as a

stat

us sy

mbo

l or s

ocia

lst

atus

•C

ultu

re (S

erve

s as D

rivi

ng fo

rce)

•U

ntap

ped

reso

urce

s (H

uman

pow

er/la

bour

)•

New

mar

ket e

ntra

nts,

• R

eput

atio

n fo

r Out

sour

cing

, e. g

.A

SIA

Mar

ket (

Indi

a an

d C

hina

),A

fric

a

•In

adeq

uate

reso

urce

s ava

ilabl

e•

Lim

ited

use

of re

sour

ces (

digi

tal l

ibra

ry &

Inte

rnet

•A

dmin

istr

ativ

e bo

ttle

neck

s•

Poor

exi

stin

g In

fras

truc

ture

s•

Lac

k of

hum

an-p

ower

for t

echn

ical

prog

ram

min

g•

ICT

solu

tions

from

adv

ance

d ec

onom

ies d

ono

t alw

ays w

ork

in a

dvan

cing

eco

nom

ies

•Te

chno

logi

cal i

mpe

rial

ism

to so

me

exte

nt•

Lac

k of

pol

itica

l will

•A

bsen

ce o

f ade

quat

e kn

ow-h

ow•

No

stru

ctur

al p

olic

ies i

n pl

ace

•D

evel

opm

ent p

lans

not

ade

quat

ely

follo

wed

(inc

onsi

sten

cies

)•

Lim

ited

disp

osab

le in

com

e/pu

rcha

sing

pow

erpa

rity

/low

per

cap

ita in

com

e•

Few

fina

ncia

l ins

titut

ions

to su

ppor

t str

uctu

ral

adju

stm

ents

•L

imite

d ac

cess

ibili

ties t

o fu

ndin

g•

Low

cap

ital i

nves

tmen

ts•

Inse

curi

ty o

f the

dom

ains

•L

eade

rshi

p, R

ole

of G

over

nmen

t (Po

licy

and

Reg

ulat

ory

Rol

e)•

Non

-Eff

ectiv

e Im

plem

enta

tion

of L

egis

latio

n•

Tax

syst

ems

•L

egal

fram

ewor

k (D

omes

tic)

•In

fras

truc

ture

•N

on st

anda

rd S

yste

ms p

oorl

y ac

cred

ited

•N

o ev

iden

ce o

f Cer

tific

atio

n of

Sof

twar

e an

dH

ardw

are

•Po

or a

ttitu

des t

o bu

sine

ss•

Poor

Gov

erna

nce

•R

eput

atio

n of

Mar

ket p

lace

(Afr

ica)

•L

egis

latio

n, e

. g. E

U d

irec

tives

and

oth

erle

gisl

atio

n on

Dev

elop

ing

econ

omie

s mar

ket

(Afr

ica

and

som

e pa

rts o

f ASI

A)

•Pr

oces

ses a

nd in

form

atio

n sy

stem

s•

Cos

t of M

anpo

wer

Cri

teri

aSt

reng

ths

Gap

s in

capa

bilit

ies?

Lac

k of

com

petit

ive

stre

ngth

?R

eput

atio

n, p

rese

nce

and

reac

h?F

inan

cial

s?O

wn

know

n vu

lner

abili

ties?

Tim

esca

les,

dea

dlin

es a

ndpr

essu

res?

Cas

hflo

w, s

tart

-up

cash

-dr

ain?

Con

tinui

ty, s

uppl

y cha

inro

bust

ness

?E

ffect

s on

cor

e ac

tiviti

es,

dist

ract

ion?

Rel

iabi

lity

of d

ata,

pla

npr

edic

tabi

lity?

Mor

ale,

com

mitm

ent,

lead

ersh

ip?

Acc

redi

tatio

ns, e

tc?

Pro

cess

es a

nd s

yste

ms,

etc

?M

anag

emen

t co

ver,

succ

essi

on?

Cri

teri

aW

eakn

esse

s

Johnnes Arreymbi

App

endi

x 1.

Page 9: HOW SECURED ARE ADVANCED ECONOMIES IF ADVANCING …

15

Thr

eats

Mar

ket

deve

lopm

ents

?C

ompe

titor

s’ v

ulne

rabi

litie

s?In

dust

ry o

r life

styl

e tr

ends

?Te

chno

logy

dev

elop

men

t and

inno

vatio

n?G

loba

l inf

luen

ces?

New

mar

kets

, ver

tical

,ho

rizon

tal?

Nic

he ta

rget

mar

kets

?G

eogr

aphi

cal,

expo

rt, i

mpo

rt?

New

USP

’s?

Tact

ics:

e.g

, sur

pris

e, m

ajor

cont

ract

s?B

usin

ess a

nd p

rodu

ctde

velo

pmen

t?In

form

atio

n an

d re

sear

ch?

Part

ners

hips

, age

ncie

s,di

strib

utio

n?Vo

lum

es, p

rodu

ctio

n

• V

ast m

arke

t pot

entia

ls•

Em

pow

erin

g pe

ople

with

too

ls &

tech

niqu

es•

Com

mun

aliz

atio

n•

Lar

ge &

une

xplo

ited

popu

latio

n•

Ext

rem

ely

poor

peo

ple

will

ing

tom

ake

sacr

ific

es i

n or

der

to h

ave

acce

ss (e

.g. s

ome

peop

le w

ill p

refe

rai

rtim

e to

foo

d w

ith t

heir

wag

es –

Opp

ortu

nity

cos

ts).

• L

ow c

ost

inve

stm

ents

wit

h hi

ghre

turn

s•

Aw

aren

ess

is in

crea

sing

at

a fa

ster

than

usu

al ra

te co

mpa

red

to w

este

rnec

onom

ies

• D

igita

lisat

ion

is b

ring

ing

the

wor

ldev

er m

ore

clos

er th

an e

xpec

ted

• Im

prov

e &

inc

reas

ing

num

ber

ofac

cred

itatio

ns•

Man

y pl

ayer

s co

min

g in

to

give

cons

umer

s mor

e ch

oice

• C

apita

l lev

erag

e•

Opp

ortu

nity

for d

ista

nce/

e-le

arni

nged

ucat

ion

• G

loba

l vi

llag

e fo

r re

sour

ces

&in

nova

tion

• D

ista

nce

and

e-le

arni

ng•

New

Mar

ket,

Che

aper

and

mor

eef

fici

ent

mea

ns o

f di

ssem

inat

ing

mar

ket i

nfor

mat

ion

• A

dver

tisin

g•

Low

er C

apita

l Fun

d•

Tour

ism

• In

tern

et P

ublis

hing

• In

vest

men

t and

New

ven

ture

s

•Po

litic

al in

stab

ility

•In

adeq

uate

lega

l fra

mew

ork

to su

ppor

tbu

sine

ss•

Em

bedd

ed b

urea

ucra

tic sy

stem

s•

Cor

rupt

adm

inis

trat

ors/

finan

cier

s•

Inad

equa

te in

sura

nce

to c

over

for f

inan

cial

/ot

her c

apita

l los

ses

•Sl

uggi

sh IC

T d

eman

d an

d/or

aff

orda

bilit

y•

Lac

k of

mot

ivat

iona

l/inc

entiv

es to

lear

n/pe

rfor

m•

Seve

re/a

dver

se e

nvir

onm

enta

l con

ditio

ns, e

. g.

heav

y ra

infa

ll•

Inad

equa

te m

arke

t pen

etra

tion/

upta

ke o

fte

chno

logy

• L

imite

d re

sour

ces t

o m

eet d

eman

d or

impr

ove

situ

atio

ns•

Seri

ous c

ultu

ral d

imen

sion

s•

Lac

k of

loca

l con

stra

ints

• M

any

trap

in p

over

ty•

Failu

re to

bri

dge

digi

tal d

ivid

e m

ay in

tim

e co

stth

e w

orld

so m

uch

loss

es•

Wor

ld T

rade

Sys

tem

s ser

ves a

s tra

de b

arri

er•

Self-

impo

sed

econ

omic

sanc

tions

(Chi

na,

Kor

ea e

tc.)

• Se

greg

ated

Com

mun

ities

(Inf

orm

atio

n H

aves

and

Hav

e-no

ts)

• E

lect

roni

c C

rim

e•

Uns

tabl

e/Po

or G

over

nanc

e an

d im

pact

on

inve

stm

ents

, Eco

nom

ic C

olla

pse

• So

cial

exc

lusi

on fr

om th

e E

-Soc

iety

• Se

greg

atio

n an

d fr

om C

yber

Mar

ket p

lace

Cri

teri

aO

ppor

tuni

ties

Polit

ical

effe

cts?

Leg

isla

tive

effe

cts?

Env

iron

men

tal e

ffect

s?IT

dev

elop

men

ts?

Com

petit

or in

tent

ions

–va

rious

?M

arke

t dem

and?

New

tech

nolo

gies

, ser

vice

s,id

eas?

Vita

l con

trac

ts a

nd p

artn

ers?

Sust

aini

ng in

tern

alca

pabi

litie

s?O

bsta

cles

fac

ed?

Insu

rmou

ntab

lew

eakn

esse

s?L

oss

of k

ey s

taff?

Sust

aina

ble

finan

cial

back

ing?

Eco

nom

y –

hom

e, a

broa

d?Se

ason

ality

, wea

ther

effe

cts?

Cri

teri

a

How secured are advanced economies if advancing economies are less secured?

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16

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How secured are advanced economies if advancing economies are less secured?

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opment: Exploring the Interaction, Journal of In-formation Technology & People, Vol. 13, No. 2, p.85–101.

AR PAÞENGUSIOS EKONOMIKOS YRA SAUGIOS, JEIGU SIEKIANÈIOS PAÞANGOSEKONOMIKOS YRA MAÞIAU APSAUGOTOS?

Johnnes ArreymbiKompiuterijos ir technologijø mokykla

Rytø Londono universitetas, Jungtinë Karalystë

Santrauka. Globalizacijos sàlygomis ðiuolaikinei ekonomikai iðkyla daug grësmiø, nuo kuriø negali apsaugotijokios valstybiø sienos. Šios grësmës neiðvengiamai veikia atskirø ðaliø ir pasaulio ekonomikà. Straipsnyje aptariamiklausimai, susijæ su ekonomika ir jos plëtote, atsiþvelgiama á tai, kad ðiandien në vienos ðalies ekonominë sistemanegali bûti nepriklausoma. Vienas ið svarbiausiø ðiuolaikinës ekonomikos augimo veiksniø, autoriaus nuomone, yrajos kompiuterizacija ir kibernetiniai ryðiai, taigi ir jos elektroninis saugumas, todël straipsnyje daugiausia dëmesioskiriama tokiam netechnologiniam veiksniui kaip elektroninis ekonomikos saugumas, kuris, autoriaus nuomone,dabar didþiausià átakà daro ekonominei plëtrai. Autorius straipsnyje apþvelgia pagrindinius rezultatus, paskelbtusávairiose publikacijose, kuriose kalbama apie elektroniná ekonomikos saugumà ir plëtotæ.

48. Zachaman, R. 2004. ICTs and the World of Workweaving a Bright New Fabric or a Tangled Web?Information Technologies and International De-velopment MIT Press.

Johnnes Arreymbi

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Johnnes Arreymbi – senior lecturer at the School of Computing and Technology of University of East London(United Kingdom). Research interests include: modelling service delivery systems, multimedia, network security,analysis of economic growth and development of information communication technology.

Rytø Londono universiteto Kompiuterijos ir technologijø mokyklos vyresnysis lektorius (Jungtinë Karalystë).Moksliniø interesø sritys: paslaugø teikimo sistemø modeliavimas, daugialypë aplinka, tinklø saugumas, ekonominioaugimo ir informaciniø komunikaciniø technologijø vystymo analizë.