Innovation and Economic Development The Impact of Information and Communication Technologies in Latin America
The Impact of Information and Communication Technologies in Latin America
Edited by Mario Cimoli, André A. Hofman and Nanno Mulder
Chapter 6: The Impact of Information and Communication Technologies on Economic Growth in Latin America in Comparative Perspective
6. The impact of information and communication technologies on economic growth in Latin America in comparative perspective Nauro F. Campos* INTRODUCTION 1 For the last 20 years or so, the world economy has witnessed spectacular rates of technological change. These rates seem to have been driven by a powerful new ‘general-purpose technology’, namely information and communication technologies (hereafter ICT). The impressive cost reduction in computing power has driven these innovations to spill over from manufacturing and services (where they made their first strides in the 1970s and early 1980s) to consumer goods more generally after that. The advent and fast diffusion of personal computers and mobile phones (which are also personal in a similar sense) have made these technologies ubiquitous and have dramatically changed day-to-day life even in the poorest economies of the world. Many examples have been provided about how useful mobile phones can be in developing countries as the lowering of the cost of information transmission and exchange can help integrate (or enlarge) markets and thus foster economic growth. Traditional (mid-1990s) examples tend to be, for instance, of fishing boats calling different ports to check on current catch prices. Five years or so ago, the strongest examples on the economic importance of mobile phones were of customers using prepaid airtime as a way of transferring money. But now we have ‘cellular banking’: The Economist (28 October 2006, p. 109) reports that ‘about half a million South Africans now use their mobile phones as a bank. Besides sending money...
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