Abstract

The effects of information and communication technology (ICT) on development have been studied primarily from the perspective of their contributions to a country's economic growth. However, ICT can offer individuals much more than just monetary income-it can improve many aspects of their quality of life. In fact, according to the human development paradigm, income is only one resource that helps individuals to satisfy their economic needs. Using the capabilities approach as a theoretical framework, this study applied data panel technique to a sample of 145 countries to investigate how the use and adoption of ICT, by individuals, enterprises, and governments, affects human development, as measured by the Social Progress Index and Human Development Index (HDI). The results show that regardless of a country's level of development, the individual use of ICT has a positive impact on human development; especially on the dimensions measured by HDI (having a long and healthy life, being knowledgeable, and having a decent standard of living). Furthermore, the use of ICTs for commercial purposes has a positive impact on human development at the global level, but if we make the analysis considering only developed countries, the relationship of this variable with human development is no longer significant. Regarding the impact of government use of ICT on human development, it has been verified that it is significant on developed countries. This study can be used as a tool by policymakers, especially in developing countries, to reinforce their intentions to support the use and implementation of ICTs.

Highlights

  • Since the second half of the 20th century, the discussions about countries’ development have been guided by different perspectives [1], that include: theories aligning development and economic growth [2]–[4], theories arguing that the origin of dependency and inequalities are characteristic to the capitalist system [5], and alternative approaches to development that recognize ecological, economic, and social goals [6]

  • The findings suggest that the individual use information and communication technology (ICT) have positive effects on human development (HD), as measured by the Human development Index (HDI), and Social Progress Index (SPI), which is calculated from 53 indicators classified into three dimensions of social progress: basic human needs, foundations of wellbeing, and opportunity

  • We propose the following hypothesis on the virtues of ICT as an instrument that fosters improvement in the quality of life: HYPOTHESIS 1 (H1): ICT adoption/use is positively related to HD, especially on the dimensions measured by Human Development Index (HDI) and SPI

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Summary

Introduction

Since the second half of the 20th century, the discussions about countries’ development have been guided by different perspectives [1], that include: theories aligning development and economic growth [2]–[4], theories arguing that the origin of dependency and inequalities are characteristic to the capitalist system [5], and alternative approaches to development that recognize ecological, economic, and social goals [6]. 3] to lead the type of life they have reason to value [8]. Development focused on economic growth is the capabilities approach (CA) proposed by Amartya Sen [1], [7], which defines development as ‘‘a process of expanding the freedoms that people enjoy’’ [8, p. Under this theory, economic growth and technologies are important as means for people to achieve and live a life they value [7], [9].

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