UNU-WIDER WIDER Development Conference on New Economy in Development

The world economy is undergoing a fundamental structural change driven by both globalization and the revolution in information and communication technology (ICT). Rapid improvement in quality and a sharp decline in the prices of ICT equipment and software, the convergence in communication and computing technologies and the swift growth in network computing are the driving forces of the ICT revolution. The superior economic structure expected to arise as an outcome of the new industrial revolution is called the 'New Economy' in the business press. The argument is, simply put, that a business firm, an industry or an economy which is able to successfully utilize these global trends will eventually outperform its rivals. And, indeed, the casual evidence for the New Economy was strong in the late 1990s. The stock market boomed, powered by ICT and 'dotcom' companies. GDP and labour productivity growth rates also accelerated in the United States, generally regarded as the leading New Economy.

But what empirical evidence is there to substantiate the benefits of the New Economy more generally? Now that the stock market has taken a dive and economic growth has slowed down in the United States and Europe, this question is of course important to people in the industrialized countries. But it is even more important to the billions of people living in countries that have yet to share in the benefits of the New Economy. Will there be any benefits, and if so, how can they be achieved? Is ICT becoming a factor contributing to the widening of income differentials between countries? Or was the New Economy just a bubble created by huge investment funds chasing too few investment opportunities?

Building on the recent debate, the WIDER conference will review what is presently known about the impacts of the New Economy. The conference seeks to attract contributions which analyze the impacts of the production and/or use of ICT on economic growth, productivity, income distribution, wages, employment, the stock market, location of production, organization of work, etc. Papers on the relevant policy issues, such as property rights, digital divide and regulation are also most welcome. Contributions documenting and analyzing the New Economy in developing and transition countries will be given special consideration.

Photo gallery

Publications arising from this conference.