LibraryBusinessBusiness Management & Administration

Economic Democracy

Emerging Determinants of Economic & Social Prosperity

by Frank DiMeglio

e-Book PDF
Institution: Pace University
Advisor(s): Dr. Michael Szenberg; Dr. Pradeep Gopalakrishna; Dr. Robert Vambery; Dr. Abe Goldstein; Dr. Lall Ramrattan
Degree: Doctor of Professional Studies in Business
Year: 2004
Volume: 123 pages
ISBN-10: 1581123795
ISBN-13: 9781581123791


How a nation or region develops is infallibly linked to how well it can deliver ideas, information and data throughout its population. The greater the freedom to send, receive and synthesize information, the more likely a given country is to have a higher standard of living as measured by per capita income and other economic indicators. This study demonstrates that the economic development of a nation or region is connected to its ability to transport said intelligence in a highly expeditious and economic manner. Without this ability, technological development and the exchange / flow of ideas are intrinsically hampered and directly impacts economic development.

In order to demonstrate this thesis, nations were classified via their respective technology IQ’s or information quotient. This IQ is ascertained by several info centric technological variables that drive the flow of information and the freedom of market development / interaction. The information quotient’s interactive nature, demonstrated via its close association with business, educational and social development, earmarks it as a refined predictor of technology growth hence economic power. There are four major info centric determinants (variables) that make up a nation’s technology IQ:

1. Teledensity (Td) - the number of telephone lines (not phones) per 100 population. Teledensity represents fundamental communications, which is essential for the distribution of wealth and ideas. It is a consumer building block – via the development of markets and the creation of economic reach.

A telephone is useless unless connected to a network via a trunk. A trunk or service line can be explained as a portal to the outside world. Teledensity is not a metric of telephones but is a ratio of telephone stations to main lines.

2. Internet Density (Id) – the number of Internet users divided by population times 100. Remember, Internet users need access to the outside world via a phone line or other data link. By definition, Internet utilization / development follows telephony development.

This variable can be associated with increased business efficiency. It is a major factor to reducing costs within the business to business and e-commerce arena. This thesis invokes that Internet usage vastly increases consumerism outside national / regional boundaries thus expanding avenues of opportunity for growth and wealth creation on a global scale.

3. Cable Density (Cd) can bring broadband (high speed) capability to large segments of the populace and business communities. (Especially, small to medium sized business concerns). Cable is the life line of high speed interactive, secure communications. Its potential to bring accelerated growth to communities is exponential. Cd is calculated by taking the number of households divided by population times 100. Still it is important to issue a word of caution regarding cable density. In many less developed nations the cable infrastructure is old and used for one way CATV transmission. Upgrading to carry interactive voice and data could be prohibitive.

4. Finally, Wireless Density (Wd) represents number of cellular lines per 100 population. Unlike regular telephones, that can share a given line, each activated cellular phone, by definition, represents a line.

Wireless or un-tethered communications represents time and execution efficiency for both business and consumer segments. It can also provide fundamental communications for developing nations that do not have a regular telephone network. Cellular Density may be a strong indicator of quick start economic growth – but this remains to be seen. Cellular communication lacks speed, security, range and voice clarity.

Secure data mobility, in the future, can expand business efficiency and further reduce communication, travel and data content to utilization costs. It is the next step associated with interactive Internet utilization as businesses and consumers become increasing mobile and self sufficient producers.

When a nation has a higher relative level of Teledensity, Internet, Wireless and Cable density, it has a significant technological advantage. This advantage manifests itself by multiplying the impact of information transfer via speed, depth and the interaction of new ideas. So, if a nation’s technology IQ is low, its’ society is handicapped from advancing in other technological vectors and, in turn, its’ economic development is slowed.

In summary, the higher these info-centric variables are for a given nation or region, the greater the level of relative economic prosperity, pace of market / economic growth and corresponding standard of living. These indicators form the technological canopy under which an economic democracy can flourish.