The impact of ICTs in the economy has undergone various phases, ranging from enthusiasm to realism and back to optimism. Each of these states is subjective and encompasses a wide range of perspectives. Initially, during a period of cyberoptimism, some were eager to immediately embrace ICTs, believing that waiting would be a disadvantage. In contrast, others believed that taking a cautious approach was the better strategy. Subsequently, scientists, particularly economists, relied on concrete evidence from reality to assess the situation. Their main finding was that the more money spent or invested in ICTs, the greater their impact on both the share and growth of GDP. This conclusion may seem obvious to many people, similar to how excessive spending on candy affects national budgets if half is allocated for sweet treats.
The advancement in data availability and analysis has led to the discovery of new information regarding the influence of ICTs on the economy. The provided table presents an overview of several positive effects that have been recognized. Nevertheless, it is crucial to acknowledge that these findings may not be universally applicable. Typically, the evidence pertains to specific circumstances such as countries, economies, and particular conditions.
Despite ongoing concerns about data availability, it is crucial to create a comprehensive list of impacts. Many of these impacts were predicted in advance before being quantified. Additionally, even if certain outcomes are specific to certain economic situations, they could potentially be reproduced in other environments like developing countries with the aim of attaining comparable outcomes.
Only a few papers discuss the negative effects of ICTs on the Economy, with some papers not explicitly addressing these impacts and instead focusing on the changes brought about by ICTs in the Economy. These changes encompass paradigm shifts, organizational changes, and disruptions in international markets. The presentation of these changes in these papers is neutral, acknowledging that their impact can be positive or negative depending on a firm or sector’s strength and position to benefit from or be affected by them. Nevertheless, both economic and sociological papers often express concern regarding employment as a potential negative consequence of ICTs.
Once more, it is important to note that although most authors anticipate a positive impact on employment, as illustrated in the table, there are some who warn of potential disadvantages associated with the integration of ICTs in the workforce. Greenwood (1999) and Castells (2000) are among those who express concerns. Greenwood describes a scenario where skilled workers will benefit from new technologies, while non-skilled workers must adapt and may experience decreased productivity, competitiveness, and earnings. Castells’ outlook is even more alarming, as he envisions a future where workers are divided along two axes: networked labor versus disconnected labor, and self-programmable labor versus generic labor.
Similar to Greenwood’s findings, the conclusions indicate that the future does not look promising for workers who are switched off or lack uniqueness. These conclusions have long-lasting effects that extend beyond the labor market, reaching into social and cultural realms.
