Searching for Hidden Connections Between the Evolution of Poverty in Developing Countries and Information Technology

Abstract

In today’s economy, information technology is present in all aspects of life and has the potential to be used for the development of society. The study aims to find hidden connections between the evolution of poverty in developing countries and information technology. The methodology of the study is based on the monitoring of statistical data from the world atlas Knoema, which characterizes the economic development of countries and the level of poverty, as well as data from the International Telecommunication Union, which characterizes the level of development of information technology in countries around the world. As a result of the study, the evolutionary changes of gross domestic product and the development of information technology were traced, with the subsequent establishment of a relationship between them, confirmed on the basis of the method of rating scores. Finally, a comparative analysis was made to identify the causal links between the evolution of poverty and information technology through the precise indicators that Knoema and the International Telecommunication Union collect to trace the regulatory environment within a country such as the affordability of ICT services, ICT literacy, and the poverty rate. It was found that despite the availability of information technology price policy in developing countries and the uneven growth of GDP mainly in post-Soviet countries, except for the period of the COVID-19 crisis, gaps were identified in the form of low or no ICT literacy at poverty thresholds of 3.8–9.8%. This demonstrates the hidden links between poverty and population’s practical knowledge of information technology, and may constrain the socio-economic development of developing countries. The findings can be used by policymakers as a tool to combat poverty, and are also useful to scholars and economists who work on the digitalization of the population and inclusive education.