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DA4. Technology and Globalization

Statement

Based on this week’s reading, please answer the following questions:

  1. Do you believe that technology and globalization contribute to increasing the chances of inequality? If so, please provide reasons supporting your view. If not, please provide reasons supporting your opposing view. Please support your answer with examples from your personal experience.
  2. How does globalized technology impact your life?
  3. Why does M-Pesa work so well in Kenya?
  4. What are the positive impacts of Konza Technology City in Kenya?

Answer

Introduction

Technology is the main driver behind globalization. Advancements in communication, transportation, industrial, and information technologies have made it easier for people to connect and shortened trade routes. The economic growth augmented by technology and globalization in both developed and developing countries is clear and supported by economic numbers.

However, the benefits of technology and globalization are not evenly distributed. Developed countries are more prepared and have the capacity to take advantage of these advancements while developing countries are often left behind. This text will discuss technology’s contribution to inequality, examples of technology’s impact on people’s lives, and case studies of the successful experiment of Kenyan M-Pesa and Konza Technology City.

How Technology and Globalization Contribute to Inequality

There is a huge gap in the infrastructure, resources, and capacity to deal with technology between developed and developing countries (Lindsay, 2019). When the market was globalized, the skilled workforce in developing countries slowly migrated to the labor-hungry economies of developed countries. This migration of skilled labor has created a brain drain in developing countries, leaving them with a shortage of skilled workers.

This situation will only make things worse for developing countries as they will never be able to close technological gaps with no skilled workforce to drive innovation. The lack of access to technology also prevents people in developing countries from learning, innovating, and creating new opportunities for themselves which further widens the gap.

On the other hand, technology and globalization have created 100s of millions of jobs in developing countries such as India, China, and Bangladesh; however, those countries have strong governments that have built the basic infrastructure to support the technology industry. This is not the case in many African countries where political instability is a major issue.

Globalized Technology Impact on My Life

I personally grew up in a corrupt and war-torn country in the Middle East, where technology is not a priority and it goes against the state’s intention. The local knowledge base was not up to date and the local economy and skills market was not supportive. Luckily, I had access to the internet where I started learning English and computer programming.

I later worked as a freelancer software developer for companies based in developed countries. Later, when I moved to the United Kingdom, I was able to quickly integrate and find a permanent job, and the experience was not different from what I was experiencing while living in my home country.

This was a clear example of how technology and globalization can help people in developing countries improve their lives and find opportunities that are not available locally. However, it is still a lucky case as many people didn’t know that such opportunities exist, and their lives would be different if they had access to the same resources.

Why M-Pesa Works So Well in Kenya

Ndung (2017) explains that M-Pesa is a mobile phone-based banking product that has revolutionized financial inclusion in Kenya. The platform has reached over 75% of the population and increased financial access touchpoints. M-Pesa went through four stages of development: money transfers between users, expansion to include banks and other financial institutions, introduction of credit scores, savings and loans, and finally, cross-border and international transactions.

The success of M-Pesa is a result of many factors, including public acceptance, government support, lack of strong financial institutions, and the availability of cheap mobile phones and other technologies involved in the process.

Developed economies need digital financial services (DFS) to accommodate growth and connect to the global economy, and the lack of traditional banking infrastructure in Kenya meant that M-Pesa could fill the gap. The government’s response was positive and gave legal recognition to electronic money, which helped M-Pesa grow and expand.

Positive Impacts of Konza Technology City in Kenya

The main goal of Konza Technology City is to create a technology hub in Kenya that will attract local and international technology companies and create jobs for the local population. This also aims to stop the migration of digital talent to other countries and to attract foreign investment and talent (Ndung, 2017).

One of the planned projects is a national data center that both the government and private sector can use. There are also plans to build a university that will produce more talent. Such a city will also be a gateway that will connect Kenya and the rest of Africa to the global economy (Burbano, 2021).

Word Count: 739.

References

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