Cashlessness in India: Vision,policy and practices

Over the past few years, an increasing convergence can be observed between international and Indian initiatives towards cashlessness, often involving a broad range of actors and influences. Despite this convergence, it is also clear that the conceptualization and implementation, or goals and outcomes of cashlessness can vary considerably, which indicates the need for a closer look at the Indian case. In this introductory note to the special issue on cashlessness in India, we outline the variety of institutions, stakeholders (regulatory, financial and technological actors), technologies and policies involved. As we have observed, digital payments and financial inclusion are two significant planks of cashlessness in India. Perhaps as a result, digital payments have been intentionally defined in a broad manner in India – ranging from anti-cash to less-cash and now contactless payments in the aftermath of Covid-19. Considering the variety of legal, economic, social and technological concerns involved, this special issue adopts 2 complementary foci to study cashlessness in India: technological visions and the systems undergirding it, and practices of end users. The special issue includes four papers. The first paper argues that the Digital India programme may lead to the commercialization of bias. The second paper historicizes the Indian demonetization of 2016 and examines its stated and unstated goals. The next paper provides a conceptual model on technology adoption in the context of digital payments. The final paper argues that users strategically switch between multiple payments media based on the context in which the transaction is taking place.     

Does the digital economy generate a gender dividend for female employment? Evidence from China

Using data from the China General Social Survey, the China Family Panel Studies, and a unique dataset of enterprises' online recruitment, this research examines the effect of the digital economy on female employment. The empirical results suggest that the digital economy significantly promotes female employment. Consistent with our theoretical analysis, the estimates indicate that this relationship holds because the digital economy promotes the formation of egalitarian gender perspectives, promotes the use of digital technology, and increases labor demand emphasizing the necessity for female-preference occupations. The dividend of the digital economy is tilted toward vulnerable groups in the labor market, including the low-skilled, older, and rural workforce, and only exerts an employment promotion effect on women without parenting burden. Further examination reveals evidence that digitalization has not led to a holistic improvement in the quality of female employment. Digitalization lengthens the working hours of severely underemployed female workers, and improves women's occupational status and job satisfaction; however, it has a minimal impact on protecting employees' rights and interests or reducing overtime workers' work intensity. Nonself-employed, full-time, and part-time workers all benefit from the development of the digital economy, while self-employed workers do not. In addition, a weakening effect of digitalization on the gender employment gap is not evident, which relates to the digital economy generating a female dividend in terms of promoting gender equality and increasing labor demand but resulting in a digital gender divide in the use of digital technology.     

The influence of digital divide frames on legislative passage and partisan sponsorship: A content analysis of digital equity legislation in the U.S. from 1990 to 2020

Government funding is essential for digital equity. Scholarship on policies to improve internet access often examines the funding mechanisms behind subsidies, or the quality and reach of services provided. However, a better understanding of the issues and constituencies to receive government support to date may help digital equity activists more strategically lobby for new digital divide policies in the future. To do this, we take a macro-level approach to Van Dijk's resources and appropriation theory and examine how the framing of all digital divide–related U.S. Congressional legislation introduced between 1990 and 2020 may be associated with a bill's passage or the political party of its sponsor. Content analysis revealed that bills highlighting privacy literacy programs, educational outcomes, and corporate transparency were more likely to be passed into legislation. Bills sponsored by Republicans were 422% more likely of being passed into legislation. Certain frames were also associated with partisan sponsorship: Republican-sponsored bills were more often framed around deregulation, privacy programs, corporate transparency, and rural access, whereas Democrat-sponsored bills were more often framed around digital skills such as digital literacy and educational outcomes. Findings serve as a historical record of digital equity priorities in the U.S. and highlight possible strategies for future policy design.     

New insights from a multilevel approach to the regional digital divide in the European Union

This paper contributes to the literature on digital divide by analysing regional- and country level determinants of the regional digital divide in the EU, based on panel data and using the multilevel analysis- the three level random slope model. The results indicate that only a mix of effective regional and national measures could mitigate the regional digital divide in the EU. Stimulating regional economic growth, increasing the tertiary education attainments, boosting R&D expenditure, and discouraging early leaving from education are regional- and national level policy measures that are found to successfully reduce the regional digital divide in the EU.     

Does computer penetration increase farmers’ income? An empirical study from China

The diffusion and adoption of modern information technology provide new chance for China to close urban-rural income gap. This paper uses China's provincial panel data from 2002 to 2013 to investigate the effect of computer penetration on rural residents' income. A public program aiming to connect every village with broadband Internet and other rural facilities provides plausibly exogenous variation in rural residents' availability and adoption of the broadband Internet, which is used to explore the instrument variable for rural computer penetration. The results show that rural computer penetration tends to increase rural residents' income over time, but the average effect remains limited. The dynamic panel threshold effects model, which allows for both the threshold variable and other covariates to be endogenous, is further used to explore the constraints of the income-increase effect of rural computer penetration. It shows that the effect is at least doubled over the average effect estimated from instrument variables method, once the digital divide causes are removed. Our findings have important implications for the government to increase rural residents' income and reduce urban-rural income gap by encouraging rural computer usage and removing the digital divide.     

The role of epistemic communities in the “constitutionalization” of internet governance: The example of the European Commission High-Level Expert Group on Artificial Intelligence

In the last few years, digital constitutionalism has emerged as a novel, alternative, Internet Governance approach aiming at ordering and limiting the exercise of power by both states and private operators, as well as at promoting people's control over digital technology development.Although digital constitutionalism is encountering growing popularity, the prevalent non-binding nature of its initiatives, the discrepancy between the jurisdictional border and transnational digital processes, and the technological embedment of governance mechanisms, have hindered the effectiveness of its impact.This paper identifies epistemic communities as a crucial factor for the constitutionalization of the digital technologies since they have the necessary technical expertise and policy commitment to create norms and standards at transnational level, informing the policy choices of both state and non-state actors.In order to illustrate this nexus, the article performs an in-depth investigation on the case of the European Commission High-Level Expert Group on Artificial Intelligence (HLEG-AI). The analysis revealed that the HLEG-AI effectively gathered an epistemic community strongly committed with fundamental rights promotion and capable to influence the following policy-making activities of the European Commission, as well as of other non-state stakeholders, whose involvement is essential in order to embed digital constitutionalism principles within the design of AI systems.     

The telecommunications divide among Indian states

Using data for 16 major states in India from 2001 to 2015, this paper examines the patterns, distribution dynamics, and the drivers of telecommunications (telecom) services across different states. We apply both parametric and nonparametric econometric techniques to study the distribution dynamics of telecom services across the states. Further, we employ the generalised method of moment (GMM) to examine the determinants of telecommunications services in India. Our results indicate that the interstate gap in telecommunications services has been declining over time and there is a tendency for convergence in teledensity towards the national average. The regression analysis suggests that per capita income and network externality are significant determinants of teledensity across states in India. Furthermore, literacy rate and relative size of the service sector are independently significant predictors of teledensity. If we consider rural and urban areas separately, there are some important differences. For example, while the interstate gaps in telecom services in rural areas seem to have declined, there is little evidence of such a tendency in urban areas. However, the regression results with respect to the importance of per capita income and network externality for telecom services are robust to the rural-urban divide and to the inclusion of additional explanatory variables. The findings of this study have important policy implications.     

Race,ethnicity, and telecommunications policy issues of access and representation: Centering communities of color and their concerns

This paper examines how and why activist groups representing marginalized communities of color are increasingly engaging in communications technology policy issues, particularly in relation to issues of digital access and representation. It explores three distinct but related case studies to disentangle the issues and concerns of a range of communities of color, and the challenges and opportunities for their advocates in navigating the highly technical communications technology policy arena: the first case study, which centers on the NAACP's original opposition to net neutrality, reveals the primacy of issues surrounding the “digital divide” to populations of color, and the difficulties of engaging in technical conversations surrounding Internet governance when issues of access persist. Meanwhile, the second case reviews the campaign by Free Press to promote set-top box liberalization as an issue of representation and diversity to both policymakers and citizens. The final case, which examines the work of the Tribal International Carrier to build an alternative internet service network for Native populations, highlights the precarity which organizations must strategically navigate in order to mitigate the influence of both the state and large corporations over Internet policy issues in order to both serve and represent their constituents. In all, this paper presents and extends upon a novel approach to communications policy research, foregrounding the need to integrate critical race frameworks and, relatedly, to center the breadth, depth, and lived experiences of communities of color, which can therein facilitate more inclusive digital media and communication environments and policy structures.     

Who is left behind? Exploring the characteristics of China's broadband non-adopting families

China has made significant progress in broadband development. As of September 2018, 95% of China's population was covered by 4G networks. However, our estimates show that nearly 30% of China's families did not use broadband that year. This study attempts to investigate the characteristics of China's broadband left-behind families. Overall, consistent with the findings for other countries, families with a lower socioeconomic status are more likely to be broadband non-adopters. In the information society, older, poorer, rural and less educated families are left behind. It is recommended that the Chinese government shift from a top-down investment-driven policy to a user-centered demand-driven policy to address the digital divide.     

Examining linkages between Smart Villages and Smart Cities: Learning from rural youth accessing the internet in India

The literature on Smart Cities has not as yet paid adequate attention to the rural sector, and the potential in villages for creating smart and sustainable solutions for the 21st century. This paper focuses on linking proposed smart city strategies to smart village policies to ensure that rural youth have improved opportunities for employment through ICT initiatives to ensure digital inclusion, using primary surveys undertaken in India. The motivation was to understand how mobile telephony could be a catalyst to create Smart Villages in India, where young people can chart out new pathways to realize their aspirations with regard to tertiary education and new avenues for diversifying into rural non-agricultural employment. We use data obtained from a household survey in villages in the states of Punjab and Tamil Nadu to examine the mobile phone usage preferences of rural educated youth to identify the way forward in improving the accessibility of services on the supply side. We make the case that where youth are using mobile phone access to increase their social information base it is indeed possible that the new social media groups formed by rural youth become a powerful conduit for generating new employment opportunities. The key to accessing this solution is to use a demand driven model for mobile services that would permit a bottom of governance model to generate sustainable growth of enterprises and improved human development of these villages.     

The digital divide problem: An economic interpretation of the Japanese experience

This study presents an economic analysis of Japan's attempt to address the geographical digital divide problem for broadband and mobile telephone services. To receive broadband service local inhabitants make voluntary contributions, which are matched by a municipal subsidy. The approach is effective in terms of economic efficiency and equity. Importantly, as fixed broadband service is provided locally the benefits are limited to local inhabitants. By contrast, mobile service is provided via a spectrum user fee system. That is, for mobile telecommunication services, no universal service fund exists. The underlying rationale is that subscribers are beneficiaries and commercial decision-making should be left to mobile operators.     

Digital divide and financial development in Africa

This paper analyses the influence of the digital divide on the new IMF financial development index on a panel of 34 African countries over the period 2005–2017. Using the instrumental variables technique, we arrive at the main result that ICT divide is a severe handicap for the financial systems development in Africa. The use of financial development sub-indices relating to financial institutions and financial markets, as well as their dimensions confirms the negative effect of the digital divide. Our result remains stable when we use alternative measures of financial development and ICT indicators. Furthermore, we found that the digital divide between countries is also a severe handicap for the financial development of countries lagging behind. On the other hand, countries with a technological lead or a digital dividend have relatively developed financial systems. Some recommendations have been suggested to promote digital penetration in Africa, as well as to improve the receptivity and flexibility of African financial systems.     

Explaining geospatial variation in mobile phone ownership among rural women of Bangladesh: A multi-level and multidimensional approach

Despite significant progress in Information and communication technologies (ICTs), rural dwellers of Bangladesh are still less fortunate when it comes to availing the improved ICT facilities compared to their urban counterparts, and this digital divide is more evident in the case of women. Mobile phone ownership (MPO) can play a key role in bridging this digital divide and achieving the Sustainable Development Goals of “End poverty in all its forms everywhere”, “Achieve gender equality and empower all women and girls”, and “Ensure healthy lives and promote well-being for all at all ages”. Administrative district-level infrastructural and societal readiness to women's MPO in rural settings of Bangladesh may also influence the geospatial variation in their MPO status, which is still unexplained. In the context of rural Bangladesh, household heads substantially exert influence over women's decision-making process. However, the role of household heads' age and education on women's MPO is mostly unexplored. As in developing countries, women's MPO does not ensure its usage, investigating the possibilities of women's MPO on its usage has immense importance. Therefore, this study aims to revisit the correlates of rural women's MPO in Bangladesh and explain the administrative district-level geospatial variation in their MPO by controlling the effect of individual and household-level sociodemographic correlates of MPO. Further, this study attempts to investigate the possibilities of MPO on the extent of its usage. This study used the latest nationally representative cross-sectional data from Bangladesh Multiple Indicator Cluster Survey 2019. This study reveals that the district-level readiness was a potential source of geospatial variation in the prevalence of rural women's MPO in Bangladesh. The lowest level of readiness was noticed in north-western Bangladesh. Comparatively elderly women with better education and media exposure had a considerably higher chance of MPO. Elderly household heads, especially male and less educated heads, hindered the MPO of women. This study identified MPO as a key determinant of its extent of usage. Moreover, to increase the MPO by a faster pace, strategies should target less empowered women, particularly those who lived in districts of lower readiness.     

The social process of internet appropriation: Living in a digitally advanced country benefits less well-educated Europeans

We generalize and extend the sequential model proposed by the resources and appropriation theory to explain the digital divide in the European Union plus the United Kingdom (EU27+UK). We measure the theoretical constructs of the model with data provided by the EU and test the theoretical predictions using a partial least squares structural equation model. We find support for the hypothesized relationships but find that the effects vary depending on the digital development level of countries. While education overall is the primary determinant of the social production of digital inequalities, a country's digital development level is crucial for less well-educated Europeans. These findings have theoretical and practical implications: (1) they call into question the homogeneity of the effect of causal relationships and the assumption that individuals differ only in terms of motivation, access, and digital skills, and (2) they indicate that socially disadvantaged Europeans benefit from living in more digitally developed countries.     

The use of ICTs and income distribution in Brazil: A machine learning explanation using SHAP values

This study explores the complex relationship between information and communication technologies (ICTs) and socioeconomic characteristics. We employ a cutting-edge explainable machine learning approach, known as SHAP values, to interpret an XGBoost and neural network model, as well as benchmark traditional econometric methods. The application of machine learning algorithms combined with the SHAP methodology reveals complex nonlinear relationships in the data and important insights to guide tailored policy-making. Our results suggest that there is an interaction between education and ICTs that contributes to income prediction. Furthermore, level of education and age are found to be positively associated with income, while gender presents a negative relationship; that is, women earn less than men on average. This study highlights the need for more efficient public policies to fight gender inequality in Brazil. It is also important to introduce policies that promote quality education and the teaching of skills related to technology and digitalization to prepare individuals for changes in the job market and avoid the digital divide and increasing social inequality.     

Progress of e-development in China since 1998

In this paper, a holistic analytical framework for tracing and understanding the progress of e-development is developed and adopted in an empirical case study of China’s e-development since 1998. In particular, the progress is analyzed systematically by benchmarking various ICT infrastructure and e-devices, the composition of Internet users, and the key dimensions of e-government, e-working, e-commerce, and e-networking. In addition, the questions of whether the geographical digital divide in the country has been narrowed is examined. Our findings show that (1) China has made noticeable progress in the e-development since 1998; yet, progress varied in different dimensions; (2) based on the overall performance, 2004 can be considered as the watershed for China to move from the formative stage to the developmental stage; (3) during the e-development, digital disparities in China have dramatically decreased at the provincial level, however, the urban-rural digital gap widened. We suggest that other than promoting affordable ICT possession, the wider and more diversified e-applications for different walks of life will be important for China to move towards the mature stage.     

The gap not only closes: Resistance and reverse shifts in the digital divide in Russia

The reduction of the digital divide due to the availability of the Internet and the improvement of skills is accompanied by reverse and resistance trends associated with the influence of socio-demographic and economic characteristics of users. In this paper, we estimate the volume and dynamics of the digital divide in access and use of the Internet in Russia by key social groups according to a longitudinal survey for 2008–2018. We found that along with the reducing of the digital divide, its gaps still remain. The greatest polarization is associated with the income, age, and type of residence of the respondents. The most vulnerable social groups on access to ICTs and Internet use are the low-income, the elderly, citizens with disabilities, and those living in rural areas. The reverse shifts in the digital divide were recorded mainly in relation to the Internet usage by age between the middle-age and youth and by gender. In addition, we pointed out the most resistance social groups to reduce the digital divide in the period under review, in particular, by income and type of residence of the respondents. The findings contribute to an understanding of the dynamics and social consequences of the digital divide and can be taken into account in social policy and measures.     

Strategic development of third-party logistics providers (TPLs): “Going under the floor” or “raising the roof”?

Contemporary (third-party logistics providers) TPLs are in danger of being stuck in the middle, unable to perform customer adaptation as well as before and unable to achieve sufficient economies of scale. This conceptual paper aims to explore challenges facing the strategic development of TPLs within a context of increased digitalization, e-commerce and servitization.There are two apparent strategic paths. Under circumstances of strong price pressure, there is demand for standardized TPL services offering simplicity, minimalism and functionality based on digitalization, e-commerce and servitization. Alternatively, with market developments responsive to supply chain complexity, digitalization, e-commerce and servitization enable development towards innovation and change.We conclude that these developments do not invalidate existing frameworks for TPL strategies but contribute alternative strategies. We formulate three propositions for each strategic path. To avoid being stuck in the middle, TPLs are encouraged to either develop efficient services through servitized logistics chains and digital solutions or develop advanced solutions to integrate the consumer into the logistics network system through competencies to control increased levels of complexity.     

The end justifies the definition: The manifold outlooks on the digital divide and their practical usefulness for policy-making

Based on the theory of the diffusion of innovations through social networks, the article discusses the main approaches researchers have taken to conceptualize the digital divide. The result is a common framework that addresses the questions of who (e.g. divide between individuals, countries, etc.), with which kinds of characteristics (e.g. income, geography, age, etc.), connects how (mere access or effective adoption), to what (e.g. phones, Internet, digital TV, etc.). Different constellations in these four variables lead to a combinatorial array of choices to define the digital divide. This vast collection of theoretically justifiable definitions is contrasted with the question of how the digital divide is defined in practice by policy makers. The cases of the United States, South Korea, and Chile are used to show that many diverse actors with dissimilar goals are involved in confronting the digital divide. Each of them takes a different outlook on the challenge. This leads to the question if this heterogeneity is harmful and if countries that count with a coherent national strategy and common outlook on digital development do better than others. It is shown that the effect of a coherent vision is secondary to tailor-made sector-specific efforts. On the contrary, a one-size-fits-all outlook on a multifaceted challenge might rather be harmful. This leads to the conclusion that it is neither theoretically feasible, nor empirically justifiable to aim for one single definition of the digital divide. The digital divide is best defined in terms of a desired impact. Since those are diverse, so are the definitions of the challenge. The best that can be done is to come up with a comprehensive theoretical framework that allows for the systematic classification of different definitions, such as the one presented in this article.