Information and communications technology
Information and communications technology 1
ICT and Cashless Society 5
ICT and Evolution of the World Bank’s 7
ICT and Challenges 9
ICT and Policy Changes 9
Conclusion 10
Reference 12
Information and communications technology
ICT is the acronym of Information Communications Technology that ICT acts as an umbrella term for communication devices and applications, and its encompassing facilities. These facilities include televisions, radios, cellular phones, computers and their software appliances among others. Many countries around the world have incorporated technology into their established financial organizations. The widespread use of technology within global finance has led to better performance for companies able to take advantage of ICT.
Evolution of ICT
For the last three decades, significant changes in technology have been experienced. There have been chronological records of noteworthy technological advancements from the year 1980 to the present age. The technological advancement has been established in terms of the software and hardware. For instance, the personal computer was developed in the 1980s. Before this date, there were heavier and bulkier technological devices in the world. For instance, between the developments of ICT in the 1980s gave information and communications technology a chance to evolve. Numerous advancements in terms of operating systems, software’s such as ant viruses among other advancements. However, in the twentieth century, technology has played an important role in the development of different sectors of the economy. The World Bank Group (WBG) prepared an ICT strategy in the year 2000. It is after this that the intensive use of internet and computers in developing countries commenced. The use of computers in this era was communication. The internet that was developed enabled local communications to be carried out.
The primary use of information and communication technologies in the financial industry became dominant after technology can be better applied by the World Bank. The World Bank was the first financial institution to embrace technology. The transactions that were carried out by the use of technology included incorporation of all its data in a computer database. In the 20th century, the use of information and communications technology was embraced by the governmental financial departments and the private financial sectors. The major use of this system was to carry out computerized lending, advisory services and investment directives. This enabled the system to establish its roots within the central financial sector before being distributed to the entire system.
The use of technology development has enhanced economic growth within the financial system, as well as other systems. The World Bank has been able to promote human and social advancement globally by the use of information systems. The ICT connectivity has enabled financial transformation round the globe. In addition to the connectivity, the sustainable development network and the International Finance Corporation has enabled the World Bank to play its financial role effectively. Ideally, ICT has the ability to support private sector investment which has been developed in the twentieth century as a result of incorporation of information and communications technology. Involvement of the ICT sector in the financial industry has enhanced development of the same system in other economic sectors. Among these sectors are the health and industrial sectors. The smooth learning that has been witnessed in most financial and non-financial sectors is articulated to technological advancement.
ICT and Cashless Society
One of the advancement with the ICT is the cashless society. Maybe the most striking thing about the cashless society is that its firmness on making sure those things like the credit cards is used. Also, defining the future not by what it will contain, nevertheless by what it will not be able to comprise od which is the: cash. Have this new kind of society as the years went by was seen as explicitly as an image of a society that is new, instead of a description of a particular new type of technology by which that place would be created. However, this negative definition seemed to be more popular and continuing than more specific and prosaic replacements motivated on skills the future would cover, for instance the later “Electronic Funds Transfer At Point of Sale” (EFTPOS), or likely alternative names for the new world for example “electronic payments civilization.” Its lasting success proposes that it is easier to construct a broad union around a collective vision of what the future will not contain sooner than what it will enclose.
It is quite obvious that money has a very long history, and has been able to stimulate a rich historical literature. The connection of financial worth to particular physical personifications has sometimes been a theme of vast political position in the United States, demonstrated by the formation and devastation of the First and Second National Banks of the United States, majority eagerness for bimetallism in the late nineteenth century, and the enclosure into the 2012 Republican Party stage of a initiate to create a commission to inspect ways that will be able to fix the worth of the dollar in contradiction of a new gold standard.
Further research makes the point that the cashless society imaginaire has been mostly separate from these debates, primarily for the reason that it did not give much concern in regards of money or a certain exchange unit itself. Also, the historical figures that have been studied were not encouraged by financial ideas about containing inflation or inspiring the economy by being able to manipulate the supply of money. Instead their attention was with the mechanisms that permit a society to be able to exchange currency. Their determination to remove cash and substitute it with electronic expenditures could and did make anxiety among political figures and the general public, nevertheless within the banking industry, individuals were focused more on how these changes could cover the costs of handing out paper-based payments (as well as fraud).
Impact of ICT
Information and communications technology (ICT) has obviously turned into the main technology all during the course of the past decade. However, the fast circulation of the Internet, of mobile telephony and of broadband type of systems all shows how universal this technology has turned out to be. But then again, how exactly so does ICT been affecting the financial growth and the competence of businesses? Capital deepening by means of asset in ICT is important for financial development. It institutes the infrastructure for the utilization of ICT (the ICT systems) and delivers creative equipment and software to businesses. Information and communications technology investment in OECD nations increased from below 20% of total non-residential asset in the early 1980s, to among 16% and 40% in 2003.
Ever since investment automatically adds to the capital obtainable to workers, it donates to labour productivity development. Estimations show that it classically accounted for among 0.3 and 0.8 proportion points of development in GDP and labour output over the 1996-2002 era. Australia, the Netherlands, the United States, and Canada established the biggest increase; United Kingdom and Japan a more modest one; and Germany, Italy and France a much smaller one. Investment in software accounted for up to a third of the total involvement of Information and communications technology asset.
The impacts of Information and communications technology investment on financial growth have not disappeared with the stoppage. Research shows that over the years, technological development in the making of many types of computers, e.g. the release of progressively prevailing computer chips, is expected to endure for the predictable future. However, the same is supposed to be true for technologies in communications. As long as companies constructing these technologies are challenged with adequate competitive pressure, the (quality-accustomed) fees of these technologies will endure to weakening, heartening Information and communications technology investment and inspiring further productivity development. The level of Information and communications technology investment may well be lower than before 2000, nevertheless, as the 1995-2000 era was branded by some one-off investment heights, e.g. investments associated to Y2K and the dispersal of the Internet. In contrast, some nations may still have possibility for catch-up; by 2000, the European Union and Japan area had a part of entire investment in Information and communications technology comparable to that of the United States in the earlier and later part of 1980.
ICT and Evolution of the World Bank’s
Banking across the world has been undergoing some extensive changes thanks to the deep influence of trends and developments in information communication knowledge, risk management tactics and business cleverness. Even though banking has become easier and more appropriate for the consumer, the developments and particulars of evolving technologies have made banking operations all the more awkward. To appreciate the full meaning of the World Bank’s current thinking on industrial policy and ICT, it is best to begin with the Bank’s two important brochures. The two offer a comprehensive version of the Bank economists’ thinking on development issue and their conclusions on public strategy. Furthermore, the 1991 Growth Challenge is important for the motive that, by the words of the then Leader of the World Bank, Mr. Barber Conable, it ‘synthesizes and understands the lessons of forty years of growth experience’ by Bank economists. Furthermore, the importance of the 1993 East Asian Miracle lay in the element that the Bank economists always warranted their policy advice to emerging nations all over the world by reference to the experience of the continued fast growth of the East Asian markets.
However, in the new World Bank thinking the state has a totally different and highly positive role in financial growth when it comes to developing ICT over the years. This acknowledgment of the positive role of the state in financial development is a main step forward. Nevertheless, as time has moved on, new technology in the banking world, has advanced and made life easy in the banking world. The purpose of the state is to help companies and enterprises classify a republic’s existing comparative advantage and to guide creative activity in that direction. Mr. Lin’s ‘enabling state’ as a result is mainly concerned with serving the private sector explores its comparative benefit.
On the other hand, the two studies complement each other and need to be measured together. The first delivers the Bank’s general logical framework and its broad market-oriented method to development matters. The second argues that, nevertheless heavy government interference in East Asia, the involvement of these nations was still well-matched with the 1991 Report’s recommendation of a ‘market-friendly’ approach, and as a result did not require any important departures in the Bank’s policy information.
ICT and Challenges
In the early 2000s, these challenges with ICT and particularly with the banks included things such as the lack of independent regulation, economical telecommunication marketplaces, and privatization of workers. Reforms needed to put the emphasis on spectrum allocation, certifying of new operators in order to introduce competition, guaranteeing workable interconnection arrangements, and guaranteeing ICT admittance to the underserved and poor, among others. What's more, to be able to reap the profits of ICT development and its transformative potential,
governments needed in order to bring some kind of support to the development of Information and communications technology skills in their populations and accept ICT themselves for better distribution of things such as health, education, and other services and enhanced government efficiency and clearness.
ICT and Policy Changes
Research shows that compared with its traditional policy position with the World Bank’s new thinking makes a major new franchise on the part of the state in industrial expansion with ICT. On the other hand, the Bank’s appreciated injunction to emerging nations to get their prices right and to follow their comparative advantage remains complete. Research shows that the supposed drive of this injunction is to permit emerging nations to reap full assistances from economics free global trade and. In a current discussion with Ha-Joon Chang, Justin Lin outlines the World Bank’s new method to industrial policy very briefly as the following: ‘I shall contend that industrial advancement and technological advance are best endorsed by what I call a easing state – a state that enables the private sector’s aptitude to abuse the country’s parts of relative advantage the important thing is to make use of the nation’s current comparative advantage – not in the issues of invention that it may have some day, but in the issues of manufacture that it has now’.
Conclusion
It is clear that ICT has evolved over the years. A lot of this evolution takes place within the banking world. Although there have been many challenges with executing this new technology, the positives do indeed outweigh the negatives. However, it is safe to say that evolution of the ICT has made life much easier especially when it came to the banking system. Also, it is quite obvious that under the World Bank’s new industrial policy ICT is becoming more and more valuable, especially in emerging nations. ICT has become the economic advantage and the cutting edge of technology over the years, especially with poorer countries.
Reference
Batiz-Lazo, Bernardo, Joan Carles Maixé Altés, and Paul Thomes. Technological Innovation in Retail Finance International Historical Perspectives. New York: Routledge, 2011.
This source provides information on the historical advancements of Information and Communications technology over the last three decades.
Cimoli, Mario, André A. Hofman, and Nanno Mulder. Innovation and Economic Development: The Impact of Information and Communication Technologies in Latin America. Cheltenham: Edward Elgar, 2010.
This source provides supportive information of some innovations in the ICT that were carried out in the United States.
Ravi, Vadlamani. Advances in Banking Technology and Management Impacts of ICT and CRM. Hershey, PA: Information Science Reference, 2008.
This source gives a general introduction of the ways the ICT sector has been effective in the Banking system.
Singh, Ajit. "Comparative advantage, industrial policy and the World Bank: back to first principles." Policy Studies (2011)
This source provides information related to the initiative that the world bank adopted to enhance growth in ICTsector.
Valdivia, Angharad N. The International Encyclopedia of Media Studies Media History and the Foundations of Media Studies. Malden, MA: Wiley-Blackwell, 2013.
This source combines the history and impact of ICT in different economic sectors within the world.
