Macro Article Analysis
Information communication technology is one of the many tools being used to spur a slowing economic growth and hence, creation of new jobs. As many people around in the world engage on the online platform, economies are enhancing their ability to take advantage of emerging technologies and hence be more competitive. ICT sector has great economic impacts on countries whose focus is sustainable economic growth and development, and remaining afloat in an economic environment that is becoming increasingly volatile (Kvochko, 2013).
Job creation one of the effects that are being brought about by the new technologies. The ICT sector is becoming a major source of employment in major economies like US and Australia where many jobs are being added annually even though such growth is not even. The production of goods and services is also increasing and widening in line with the growth in world technology market (Kim, & Heshmati, 2014). Another major impact of the ICT sector expansion is a growth in the world economy. The economic growth of countries is measured through GDP, which refers to a rise in market value of services and goods after being adjusted for inflation over a given period of time. Research on the different countries is indicating that the adoption of ICT in economies leads to increased growth in GDP. In emerging markets like China, penetration of broadband is being related to over 2.5 percent growth in GDP and the main drivers include e-commerce. E-commerce refers to use of online platform in selling of goods or services (Cimoli, Hofman, & Mulder,2010). Hence, ecommerce is offering a platform where an array of products services can be traded through electronic interaction between parties and this enhances the transaction process.
A major impact of ICT is that it leads to emergence of new services and even industries though increased innovation. Not only has it led to growth of services industries, it has been a major factor that is driving economic growth in the production of goods in various industries. The ICT sector is also a major player in the transformation of public services as they increasingly become available through online platform and this enhances the regulatory framework that informs how business transactions are conducted. In fact, a key trend has been the switching of various public services into cloud computing platform and this has become a major basis of modernization of the economic activities. Different governments around the world such as Moldova are shifting their IT infrastructure into the cloud thereby enabling business and citizens can access the various services through their mobile phones (Kvochko, 2013). The overall effect is provision of conducive economic environment where innovations can thrive and hence, this leads to new service industries and enhancement of entrepreneurship. Such an enabling environment has lead to emergence of a totally new sector that includes major companies such as Facebook which create many jobs in the economy. Research indicates that Facebook apps which form a big part of these innovations resulted to creation of more than 182,000 jobs as at 2011 and this is expected to increasing moving forward (Kvochko, 2013). This indicates that innovations lead to improved production of goods and services, hence creation of jobs for the economies. The new job created through due to incorporation of ICT sector help in addressing various challenges experienced in the world market in relation to unemployment or underemployment of available labor.
In addition, business innovation has increased due to adoption of ICT meaning that more and more business are finding it important to have their presence in the online platforms. With the modernization of the world economies ICT makes it possible for entrepreneurs to start new businesses, expand local businesses and even move their operations to different parts of the global market. Competitiveness is major aspect that affects business operations and with adoption of ICT, organizations are able to gain competitive advantages which enable them to carry out their transactions both at the local and global market (Kim, & Heshmati, 2014). Internet offers new ways these organizations can reach out to existing and new customers and hence, gain larger market share. An important aspect has been the use of social media as an essential marketing tool to reach out to consumers of various goods or services provided. The business processes are becoming efficient and easier to streamline due to the use of ICT tools. Another area which is transformed by the ICT sector is the workforce that plays a key role in the growth of firms and economies. Division of labor is becoming easier through emerging microwork platforms that are developed by firms such as Amazon and oDesk (Kvochko, 2013). Various tasks can be divided into smaller components which can then be outsources to workers through contracts. Since cost associated with labor is a major player in profitability of firms, entrepreneurs can greatly reduce such cost or be able to access a qualified workforce at lower cost (Kvochko, 2013).. Such an economic environment makes it easier for entrepreneurs to come up with starts ups that face limited regulatory and legal handles since the public services are automated.
References
Kvochko, E., (2013). Five ways technology can help the economy. Retrieved from: https://www.weforum.org/agenda/2013/04/five-ways-technology-can-help-the-economy/
Kim, T.-Y., & Heshmati, A. (2014). Economic growth: The new perspectives for theory and policy. 230
Cimoli, M., Hofman, A. A., & Mulder, N. (2010). Innovation and economic development: The impact of information and communication technologies in Latin America. Cheltenham, UK: Edward Elgar.10-14
