POSSIBILITIES AND PROBLEMS OF DIGITAL DIVIDE MEASURING CASE OF SERBIA
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1 POSSIBILITIES AND PROBLEMS OF DIGITAL DIVIDE MEASURING CASE OF SERBIA Djordje MITROVIC Faculty of Economics, University of Belgrade Abstract The importance of information and communication technologies (ICT) for the development of information society (IS) and new economy (NE) is more than evident. But less obvious is their negative influence on the uneven economic development and rising differences between individuals, households, companies, or regions related to the access to and usage of ICT. This phenomenon is called digital divide and it is very important to develop corresponding system of measurement of its effect at national and international level. The aim of this paper is to review the existing concepts and systems of IS indicators and measurement of digital divide present in the economic theory. The paper attempts to analyze challenges, problems and opportunities for economic analysis and statistical monitoring emerging from the social and economic influence of digital divide. We conclude that the economic and statistical concepts and methodologies of research need to pay more attention to composite indexes over particular indexes. Only composite indicators can present adequate guides for creators of economic policy to reduce the social and economic digital gap during building and development of IS and NE in the country. Keywords: Digital divide, Statistical Methodology, Information society indicators 1 INTRODUCTION The development of Information Society (IS) and New economy (NE) became in the beginning of XXI century the most important priority in economic and government policy for all countries of European Union (EU). The most significant aspect of increasing of global competitive advantages for every developed country is its ability to completely use all possibilities offered by information and communication technologies (ICT) for the acceleration of economic growth and development. Therefore, this is one of the most important priorities for Serbia, which needs to make the classic process of transition and transfer to the market model economy and particularly transition towards the economy based on knowledge (i.e. Information Society) as well. However, the usage of ICT with all the positive effects it carries has several negative consequences the most important one is the presence of digital divide. The digital divide comprises unequal economic development in the country and between countries, as well as the growing economic and social differences between individuals, households, enterprises and regions concerning access and usage of ICT. Creating and implementing of adequate economic and policy of development of IS and NE depends on suitable system of measurement of extent and influence of digital divide on national and international level. The aim of this paper is to review existing concepts and systems of IS indicators for measurement of digital divide presenting in the economic literature. This paper analyzes challenges, problems and possibilities for the economic analysis and statistical monitoring of the social and economic effects of digital divide. We will show that economical and statistical concepts and research methodologies must pay much more attention to composite indexes than to single indexes. We are concluding that only composite indicators can be adequate guides to the creators of economic 666
2 policies for decreasing social and economic digital gap during construction and development of IS and NE. 2 DEFINITION OF DIGITAL DIVIDE In the context of traditional economics, developed (rich) countries and developing (poor) ones were mutually distinguished by opportunities to access and to dispose with raw materials, physical capital (machines, factories, ways) and human capital (educated labour force) which are essential for economic development. However, in the context of the new economy, we perceive a polarization between developed and less developed countries in sense of access to ideas, knowledge and ICT. Poor countries lack in ideas and knowledge normally used by industrially developed countries for creation of economic values. Gaps existing between countries in sense of access to raw materials and in sense of access to knowledge don t eliminate each other, but they can be complementary. The gap existing between countries, regions and individuals in sense of access to ICT in the literature is usually defined as digital divide or digital gap. However, the digital divide is much more than a simple division between individuals or households which have and the ones that don t have computers and Internet access. Van Dijk distinguishes four areas with factors of limitation in sense of access to basic elements important for use of ICT and four types of access which are limited by them: 1) lack of the elementary digital experience because of lack of interest, hostilities towards computers and unattractiveness of new technology mental access; 2) availability of computers and web connections material access; 3) lack of digital knowledge and skills because of inadequate education, insufficient user friendly of ICT or inadequate social support skills access; 4) lack of possibility to use ICT usage access.[1] When we consider the usage of Internet, Norris distinguishes three different levels of division: 1) global divide, which scopes the differences between developed and undeveloped countries, developing and countries in transition; 2) social divide, which points to inequalities between inhabitants inside the country, and 3) democratic divide, which points to differences between those which use and those which do not use ICT in order to join and participate in the public life.[2] Wilson adds more elements to this classification by identifying four components of full access to ICT in society: 1) physical access possibility for potential user to have access to physical ICT infrastructure on determined geographic area; 2) financial access shows if users (whether individuals or whole communities) can afford the Internet connection; 3) cognitive access considers if individuals have skills to use Internet and to find and evaluate the type of information they need; 4) content access considers if there are enough available materials which can fulfil users needs (especially in their native language); 5) political access takes into account if users have approach to institutions which regulate technologies in use, i.e. if the population actively participates in the designing of projects which are in their own interest; 6) design access access to that form of communication (interface) between man and machine which is most appropriate for the user himself (in case of blind and illiterate people, etc.); 7) institutional access or access to the institutions it refers to the large number of different organizational forms and regulations which form and define the access to digital contents on the determined way; i.e. the number of users of ICT is drastically different if the access is possible only through households or through schools, libraries, institute, postal office...[3] In the similar way as Van Dijk, Warschauer argues that beside the physical access to ICT, other factors such as contents, language, literacy, education level and institutional structure must be considered as well during evaluation of the level of availability and usage of ICT in the society.[4] Mossberger, Tolbert and Stansbury argue that the problem of digital divide is not unambiguous and that under this concept in a larger sense we can consider multiple divides between individuals and households concerning the physical access (access divide); possession of knowledge and skills on usage of ICT (skills divide); possibility of ICT use for finding new jobs, use at work and constant learning (economic opportunity divide) and possibilities for ICT use in democratic processes (voting, for example) (democratic divide).[5] 667
3 From previous text we can conclude that there are many ways in which we can define and conceptualize the term of digital divide. Regardless of the theoretical framework which is used as the starting point, several methodological problems are always inevitably imposed during the empirical research. In this paper we will present a few methods which are significant for measurement of digital divide independently from domains in which it is observed. Analyses of these methods will show us that simple comparison between individuals, households or enterprises on, for example, level of the usage of Internet which often is prevailing in the literature, is not enough and sometimes can lead us to wrong conclusions. 3 INDIVIDUAL IS INDEXES Single indicators by which we measure the level of IS development and, respectively indicators by which we express smaller or larger level of existences of digital divide, in many cases lead us to different, even contradictory conclusions. As an example we will show the comparison between Serbia and Slovenia on the basis of three ICT indicators (the percent of households which have access to the Internet, the percent of users which use Internet every day and the percent of users which use computers every day). We can notice in figure 1 that the gap concerning accessibility to Internet between Serbia and Slovenia is very big (58 in Slovenia, while in Serbia the number is 26,3). We encounter similar situation regarding computer use (in Slovenia 74, while in Serbia the number is 41,2) and concerning the use of Internet (in Serbia 29,9 the user use Internet almost every day, with a different situation in Slovenia where this percent amounts to approx. 49). When we would use the simple arithmetic average like some kind of common index of three mentioned variables, we would notice that a very large gap exists between Serbia and Slovenia in ICT usages (in Serbia 32,47, while in Slovenia this average would be 6,33). In following pages of this paper we will notice that results presented by single indexes of IS development are very easily manipulated, because digital divide between these two countries is not so big if we consider and observe the equality of ICT usage inside countries Internet and Computer Usage in Serbia, Slovenia and EU-27, 27 Internet access Internet usage Computer usage Serbia Slovenia EU-27 Figure 1 4 COMPOSITE IS INDEXES As of lately, a very large number of indexes which measure the level of IS development has been developed, and which are very appropriate for measuring and expressing the existence and size of digital divide, i.e. which are very appropriate for mutual comparison between countries. Some of 668
4 them are Digital Access Index - DAI, Digital Opportunity Index - DOI, Networked Readiness Index - NRI, Technology Achievement Index - TAI, Information Society Index ISI etc.[6] In this paper we will analyze only one composite index with which in principle we can observe general characteristics of all previous mentioned indexes in the domain of measuring level of existence of digital divide. Digital Divide Index DIDIX has been developed in the framework of SIBIS project for measuring of the level of development of Information Society in countries of European Union. SIBIS indicators (Statistical Indicators Benchmarking the Information Society) present the group of indicators for measuring of IS development which have been proposed by University of Applied Sciences Solothurn Northwest Switzerland (FHSO) in the framework of the project Statistical measuring indicators for Information Society (ST SIBIS). This system of indicators comprises 133 indicators in total from which 34 have been separated as most important and most appropriate for monitoring development of Information Society. Indicators were constructed during the work on this project, but several indicators are from other different sources (other projects, national statistical services, Eurostat, Eurobarometers...). The importance of indicators has been determined according to politics of development of Information Society on the level of European Union.[7] DIDIX index has been developed in larger measure for needs of designing and managing of economic policy, and in much smaller measure for scientific purposes. But, regardless of this fact, this index is simple enough for constructing and it can help us as a good example on which we can observe all advantages of more complex composite indexes in respects to individual. DIDIX index presents the combination of four socio-demographic factors (gender, age, education and income) in respect to three ICT indicators. The initial composite indicator show us the relative level of ICT adoption and it is constructed on the basis of following elements: 1) percentage of computer users; 2) percentage of internet users; 3) percentage of computer users from home. [8] Index constructed in this way is further analyzed through four potentially deprived groups in the framework of the Information Society: 1) women; 2) people aged 5 and over; 3) the low education group (people who finished formal school education at the age of 15 years or below) and 4) the low income group.[8] The basic DIDIX indicator presents ratio between the compound ICT adoption indicator in a certain risk group and the value of the corresponding indicator in the total population. If the value of ICT indicator usage in a risk group is equal to that of the population average, then the corresponding basic DIDIX value should be equal 1. [9] 669
5 Source: Author s calculations A Coputers () TOTA L B Internet () TOTA L C Internet from home () TOTAL SUBINDEX,5*A+,3*B+,2*C Usage total 41,2 =1, 29,9 =1, 22,69 =1, Aged 55+ 7,99 19,39 4,19 14,1 3,8 16,75 17,25 Women 36,7 89,8 24,5 81,94 18,45 81,31 85,38 Education < 15 24,9 6,44 15,9 53,18 11,96 52,71 56,71 Unemployed 31,6 76,7 19,7 65,89 15,1 66,15 71,35 SUBINDEX 61,4 53,75 54,23 57,67 Figure 2 and table 1 present the basic DIDIX indicator values for four risk groups, as well as total DIDIX index value which was calculated as the arithmetic mean of the basic DIDIX indicators measured in the framework of four mentioned segments. However, because of inexistence of total data for Serbia for three indicators in the framework of group of poorest inhabitants, we will analyze group of unemployed (under the simplified assumption that just unemployed persons in Serbia have lowest incomes). [1] Figure 2 67
6 Table 1 DIDIX values, Serbia and Slovenia, 27 DIDIX Income Education Gender Aged Slovenia Serbia As shown in table 1 and figure 2, for example, the basic DIDIX index value concerning the education in Serbia in 27. is 56,71, means that individuals which have not continued education after 15 years of life acquire ICT on that level which is 57 of the level reached by the total population. From presented data we can also notice that the value of digital divide index for the population aged 55 year and older is 17,25, which means that in this risk group the digital divide is very expressed. In other words, people aged 55 and over use ICT on the level smaller than 1/5 of total usage level of ICT in country. When we analyze the total DIDIX index for Serbia in 27., we can see that its value has reached 57,67, which means that earlier mentioned four risk groups of population use ICT on the level which is smaller than 2/3 of total ICT usage in the country. When this data is compared with Slovenia we can see that in Serbia digital divide is still not so expressed as in Slovenia. That is, the total DIDIX index value in Slovenia is 32,5, which means that four risk groups in this country use Internet only on the level from 1/3 of total usages. Previous analyses of single indicators, in the first place the usage of Internet, show us that situation in Serbia concerning the ICT usage is very dire. However, composite index as DIDIX has discovered that although in Serbia people use the Internet in smaller measure, availability and usage of Internet is much equitable, i.e. the corresponding value of total DIDIX index is closer to 1. This is especially expressed in risk groups like unemployed persons, people with low incomes and people with low education. Of course, value of DIDIX index is not to be taken as given size and unique parameter during the analysis of digital divide, because it is very possible that it will be lower as the computer market will develop in Serbia along with the increased use of more expensive and sophisticated software and hardware solutions (along the decreasing of piracy). 5 CONCLUSION The research made in this paper show us that DIDIX index (and consequently any other composite index) allows an effective analysis on aggregate levels. In relation to single indexes, we can measure more aspects of relatively more complex concepts and by doing so make the comparison between countries on different levels. Literature usually distinguishes, as one of the biggest lacks of composite indexes, the oversimplified correlation between appearances and process, where the digital 671
7 divide comes down to one number which can, in some cases, be distant from reality. However, composite indicators are a very good mean for presentation of reached level in IS development and present level of digital divide to people which are out of the scientific community, before all to creators of economic and other politics and strategies on the state level. In fact, in this way people who haven t enough skills in scientific methodology in a very clear and concise way get the insight in the actual state and future directions of actions during the IS development. Acknowledgement: This paper was writing during author s work on the project Supporting the reform in Serbian economy growth, employment and competitiveness, 14947, supported by the Ministry of Science and Environmental Protection, Republic of Serbia. REFERENCES [1] VAN DIJK, J., HACKER, K. The Digital Divide as a Complex and Dynamic Phenomenon. In The Information Society. ISSN , Sep/Oct 23, Vol. 19, Issue 4, pp [2] NORRIS, P. Digital Divide: Civil Engagement, Information Poverty and the Internet in Democratic Societies. Cambridge University Press, New York, 21, 32 p., ISBN-1: [3] WILSON, E. J. The Information Revolution and Developing Countries, The MIT Press, Cambridge, 26, 447 p., ISBN-1: [4] WARSCHAUER, M. Reconceptualizing the Digital Divide. In First Monday, 22, Vol. 7, Number 7, [5] MOSSBERGER, K., TOLBERT, C. J., STANSBURY, M. Virtual Inequality Beyond the Digital Divide, Georgetown University Press, Washington D.C., 23, 192 p., ISBN [6] DAUGELIENE, R., KRIŠČIUNAS, K. The Assessment Models of Knowledge-Based Economy Penetration. In Engineering Economics, ISSN , 26, Volume 5, Number 5, pp [7] European Commission. SIBIS New eeurope Indicator Handbook, 23. [8] HÜSING, T., SELHOFER, H. DIDIX: A Digital Divide Index for Measuring Inequality in IT Diffusion. In IT & Society, Spring/Summer 24, Volume. 1, Issue 7, pp [9] VEHOVAR, V., SICHERL, P., HÜSING, T., DOLNICAR, V. Methodological Challenges of Digital Divide Measurements. In The Information Society, ISSN , Nov/Dec 26, Vol. 22 Issue 5, p [1] STATISTICAL OFFICE OF THE REPUBLIC OF SERBIA. Usage of Information Communication Technologies in the Republic of Serbia, 27, Belgrade, ICT_27_saopstenje_knjiga.pdf 672
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