Technology gap between rich and poor nations remains large

By Christy van der Merwe, Engineering News, 09/01/2008

Technological advancements in developing countries have shown strong growth the Global Economic Prospects 2008: Technology Diffusion in the Developing World report, released on Wednesday, showed.

The report commented on the advancement of technology in developing countries since the 1990s, and revealed, on the one hand, that technological progress in developing countries has been much faster than in high-income countries-reflecting increased exposure to foreign technology. Technological progress increased 40% to 60% faster in developing countries than in rich countries.

On the other hand, the technology gap between rich and poor countries remains large, and the domestic factors that determine how fast technologies spread often stunt progress, especially among low-income countries. The level of technology used developing countries is only one quarter of that employed in high-income countries.

Use of some new technologies, such as mobile phones, has risen quickly, however, some technologies have spread very slowly. About 75% of low-income countries have fewer than 15 personal computers for every 1 000 people.

For developing nations to continue catching up it was recommended by the World Bank that they strengthen educational achievement, governance, basic infrastructure, and links to migrant groups.

"Weak basic infrastructure systems limit the range of technologies that can be employed in many countries. Policies should ensure that critical enabling services such as roads and electricity are widely available, whether delivered by the private or public sector. In Sub-Saharan Africa, just 8% of the rural population has access to electricity," noted World Bank lead economist Andrew Burns.

The report said that governments should strengthen domestic technology dissemination channels, such as transport infrastructure and research and development capacity, as a high priority.

The report also said that improving capacity to absorb foreign technology is critical in low-income countries that have exploited low-wage comparative advantages, rather than strengthened domestic competencies.