What exactly is the role of ICT in any economy?

Deeshaa : Directions for India's Development

Atanu Dey asks, and attempts to answer this central question. What is thje role of ICT in an economy?

I think his answer "It reduces transaction costs" is a very good approximation to the truth. It is worth remembering that in fact, in most cases, this is exactrly what ICT's are supposed to do. MAke it quicker, easier, more efficient to go through the transactions necessary to live a life.

There are other advantages of ICT systems, only marginally related to a reduction in transaction costs, such as the transparency provided by a tamper-proof financial system, or the ability to share experiences and knowledge that would otherwise be beyond your reach.

Nevertheless, it is important to remember that ICT's in development projects should support and improve existing information flows and transactions.

It is worth pondering this question: What exactly is the role of ICT in any economy?

This week, I would like to address myself to that question in detail. The answer can be succinctly stated as: It reduces transaction costs. It will take a pretty long time to explore that answer. But first a few personal experiences to set the stage would be appropriate.