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  2. Digital divide is a term that refers to the gap between demographics and regions that have access to modern information and communications technology, and those that don't or have restricted access. This technology can include the telephone, television, personal computers and the Internet. (IWS, 2016) Well before the late 20th century, digital divide referred chiefly to the division between those with and without telephone access; after the late 1990s the term began to be used mainly to describe the split between those with and without Internet access, particularly broadband. (IWS, 2016) The digital divide typically exists between those in cities and those in rural areas; between the educated and the uneducated; between socioeconomic groups; and, globally, between the more and less industrially developed nations. Even among populations with some access to technology, the digital divide can be evident in the form of lower-performance computers, lower-speed wirelessconnections, lower-priced connections such as dial-up, and limited access to subscription-based content. (IWS, 2016)

  3. SOCIAL CAPITAL • Social capital is an economic idea that refers to the connections between individuals and entities that can be economically valuable. Social networks that include people who trust and assist each other can be a powerful asset. These relationships between individuals and firms can lead to a state in which each will think of the other when something needs to be done. Along with economic capital, social capital is a valuable mechanism in economic growth. (Business Dictionary, 2012)

  4. CONSEQUENCES OF THE DIGITAL DIVIDE ON SOCIAL CAPITAL • The politicians are quick to show us the divide between the races and between the social classes in our country. Maybe the other divide is the digital one. In an age where every person seems to have smart phone, we forget that maybe for some it is just for show. We forget that in reality there are still numerous illiterate persons. Especially for older people who do not see the need for being socially connected online. • This creates a divide in societies and in generations. It creates a group of connected people and disconnected people. The disconnected ones don’t know what the fuss is about and the connected ones are of the opinion that the others are missing out. • Having a barrier such as this can possibly create friction. A child growing up in a disconnected household will see the connection a friend has and be unhappy that he doesn’t have the same. His friend will have access to much more information for school projects and when he is doing job research one day. • There will be a breakdown in collaboration between the different sides due to this divide.

  5. KNOWLEDGE CAPITAL • Knowledge capital is an intangible asset that comprises the information and skills of a company's employees, their experience with business processes, group work and on-the-job learning. Knowledge capital is not like the physical factors of production - land, labor and capital - in that it is based on skills that employees share with each other in order to improve efficiencies, rather than on physical items. Having employees with skills and access to knowledge capital puts a company at a comparative advantage to its competitors. (Business Dictionary, 2012)

  6. CONSEQUENCES OF THE DIGITAL DIVIDE ON KNOWLEDGE CAPITAL • Since gender, age, racial, income, and educational gaps in the digital divide have lessened compared to past levels, some researchers suggest that the digital divide is shifting from a gap in access and connectivity to ICTs to a knowledge divide.  (Thomson Reuters, 2015) • A knowledge divide concerning technology presents the possibility that the gap has moved beyond access and having the resources to connect to ICTs to interpreting and understanding information presented once connected. (Thomson Reuters, 2015)

  7. HUMAN CAPITAL • Human capital is a measure of the economic value of an employee's skill set. This measure builds on the basic production input of labor measure where all labor is thought to be equal. The concept of human capital recognizes that not all labor is equal and that the quality of employees can be improved by investing in them. The education, experience and abilities of an employee have an economic value for employers and for the economy as a whole. (Selvyn, 2004)

  8. CONSEQUENCES OF THE DIGITAL DIVIDE ON HUMAN CAPITAL • Those who are not digitally inclined may have difficulties learning an organizations online programs. • It lowers the efficiency of the employee. • It lowers the economic value you of the employee, due to a lack in technological knowledge. • Low human capital as a whole, negatively affects the economic growth.

  9. RAMIFICATIONS OF DIGITAL DIVIDE • According to the 2012 Pew Report “Digital Differences,” only 62% of people in households making less than $30,000 a year used the internet, while in those making $50,000-74,999 that percentage jumped to 90%. (Medicology, 2007) • Smart phones have helped bridge the divide, as they provide internet access to populations previously at a digital disadvantage. Pew reports that, among smart phone owners, “young adults, minorities, those with no college experience, and those with lower household income levels” are more likely to access the internet primarily through their phones. (Medicology, 2007)

  10. There are still gaps in high-speed internet access. Only 49% of African Americans and 51% of Hispanics have high-speed internet at home, as compared with 66% of Caucasians. Internet speed has important effects on media access, especially when it comes to streaming video, so this gap is significant. (Medicology, 2007) • In a Pew survey of teachers, teachers of low income students tended to report more obstacles to using educational technology effectively than their peers in more affluent schools. (Medicology, 2007) • Among teachers in the highest income areas, 70% said their school gave them good support for incorporating technology into their teaching. Among teachers in the lowest income areas, that numbers was just 50%. (Medicology, 2007)

  11. Fifty-six percent of teachers in low income schools say that their students’ inadequate access to technology is a “major challenge” for using technology as a teaching aid. (Medicology, 2007) • Fifty-four percent of all teachers said their students had adequate internet access at school, but only 18% said their students had adequate access at home. Interestingly, urban teachers are more likely to say students have poor access to internet at school, while rural teachers are more likely to report that students have poor access at home. (Medicology, 2007)

  12. SOLVING THE ISSUES AROUND ACCESS 1 of 3 • Continue and expand Government programs and provide additional funding to resolve the Digital Divide. (UNFPA, 2012). • In order to combat the problem of the digital divide, continuing research, data collection and evaluation is important. Research teams should consistently assess community access to technology and engage the community in ways to solve access problems or to create better uses for existing access. (UNFPA, 2012). • Better technology can help increase the use of information technology tools. Minority owned companies, a growth in minority researchers, and an increase in policy-oriented employees will help to overcome content and cultural barriers. (UNFPA, 2012).

  13. SOLVING THE ISSUES AROUND ACCESS 2 of 3 • While the market approach is important to this Nation, it is necessary to realize that the market often fails to address issues of information inequality. Viable and sustainable economic development as well as training, data collection and research are critical to solving these market failures. (UNFPA, 2012). • A constructivist approach to teaching and learning is recommended. Using technology to educate is much more important than educating students about technology. Also, curricula must be made culturally relevant. Content is extremely important to communities–content should be relevant, culturally acceptable and of interest to the community. In higher education, there should be a major initiative to increase access in engineering and computer and information technology fields. (UNFPA, 2012).

  14. SOLVING THE ISSUES AROUND ACCESS 3 of 3 • Increase use of information technology tools and that the tools be used to solve existing community problems. It is imperative that solutions are culturally relevant and acceptable to the community involved. (UNFPA, 2012). • A national strategy will help to ensure coordinated efforts and widely dispersed benefits. While many distinct efforts are presently under way, piecemeal efforts would do little to alleviate this complex problem. (UNFPA, 2012).

  15. BIBLIOGRAPHY (2016) What Is Knowledge Capital? [Online] Available from: [Accessed: 29/05/2016]. (2016) What Is Social Capital? [Online] Available from: [Accessed: 29/05/2016]. ( 2016) Digital Divide - ICT Information Communications Technology. [Online] Available from: [Accessed: 29/05/2016]. Medicology, 2007, Digital Divide Simulator, [Online], Available: [Accessed: 29/05/2016]. Selwyn, N. (2004) Reconsidering Political And Popular Understandings Of The Digital Divide. New Media & Society [Online] 6.3: 341-362. Available from- [Accessed: 29/05/2016].