Submitted by: Submitted by Romina
Views: 219
Words: 301
Pages: 2
Category: Business and Industry
Date Submitted: 11/06/2012 09:17 PM
Technology in all kinds have potential to drive economic growth
Tarek el masri is the managing director of the middle east office of mckenzian company,
He s going to share the highlights of the recent report that he conducted Few years ago with Dick Costolo CEO of Twitter on the interplay between the Internet and economic growth
The major question was wether the Internet is creating jobs and moving us along and promoting growth or the deflationary power associated with the Internet, the price pressure and the increase in productivity are negatively impacting on jobs creation and growth were worst.
Only 3% of GDP in developed countries and 2% in developing countries are created bcz of the internet
How does this affect for job creation?
We know the internet increases productivity that means fewer jobs
In the developed world, for every job that was reduced 1.6 jobs were created due to the internet
But in the developing world, the number is double, so the internet is creating more jobs in the developing world than it is in the developed world
One of the best ways to accelerate job creation and growth, is the role that government plays
The number in the middle east is misleading because the e-government index is misleading due to the mixture of hyper developed (UAE) and the less developed
What really creates the ease of the index
It is divided in 3 pieces:
-The ease of starting a new business
- the ease of financing a business
- and the internet accessibility
A lot of investments are happening on the internet accessibility and this can be found mostly in Qatar , UAE and Riyad
In conclusion, the internet is creating on average 3.1 jobs for every job reduced, so it is promoting growth and job creations.