The Digital Divide, Economic Growth and Potential Poverty Reduction: The Case of the English Speaking Caribbean By

This paper examines the issue of the gap in access to telecommunications known as the digital divide and its linkages to economic growth in the context of the Caribbean. In particular, it seeks to ascertain how the adoption of computer and Internet technology can enhance the growth prospects for Caribbean countries, and thereby have a significant impact on the reduction of poverty in the region. First, the current debate over the existence and significance of the digital divide is explored. For example, one view holds that the digital divide once corrected can lead to enhanced economic growth and hence to poverty reduction in developing countries. On the other hand, some argue that there is no digital divide and, therefore, policy reforms aimed at correcting it are misguided. Second, the arguments linking growth, technology and potential poverty reduction are presented. Third, an analysis of the current situation in the region is carried out. Further, some means by which Caribbean countries can benefit from technological absorption are explored. Finally, a summary with some policy recommendations is presented.