Section I: Introduction
8. New Zealand is experiencing significant changes in business, society and the economy due to the revolution in information and communication technologies (ICT). Changes that may not be as unambiguously positive as earlier technological advances, such as railways and automobiles, were. To realise the greatest benefit from the changes, we need to develop a clearer understanding of what these changes mean, and how ICTs impact on different groups and areas of New Zealand.
9. This paper examines why it is important that as many people and places as possible are positioned to benefit from ICT; who might not be able to do so; what the barriers are likely to be; other countries' strategies for addressing ICT social and economic inclusion; and if government were to take a leadership role to address this situation, what sort of strategy and options might best be employed for New Zealand.
Structure
10. This paper consists of two parts. The first part, following this introduction, is a section containing the problem definition: what access and e-literacy, and the digital divide, mean. The next section looks at why resolving these issues is important for economic growth and social cohesion and achieving other key government goals. Barriers to access and e-literacy are then explored, followed by possible options for addressing these. The paper concludes with options for progressing work in this area. The second part contains appendices with more information on the New Zealand situation vis a vis access to ICT, the digital divide in the United States, and other countries' strategies for improving access to ICT and e-literacy.
Background
11. This paper has been prepared in recognition of the importance to New Zealand's growth in new economic directions (facilitated by e-commerce), and improving social and economic inclusion, of as many people as possible developing e-literacy and being able to access ICT.1 It is possible to identify likely barriers to access to ICT and e-literacy, and certain groups and situations who experience limited access. However, at the moment, there is no comprehensive picture of the New Zealand situation in regard to how widespread lack of access to ICT and poor e-literacy are, or what is being done already to address it.
12. The importance of e-commerce to New Zealand's economy and society has been discussed in earlier papers from the then Ministry of Commerce, particularly Electronic Commerce: Strategic Importance, Key Issues and Way Forward.
13. A recently released Australian study on e-commerce suggested e-commerce could boost employment by 0.5 percent and drive up real wages by 3.5 percent. However, the same report noted it would also create unemployment, the need for retraining, and require an increase in those with ICT skills.2
14. To exploit fully the opportunities of the information age, and avoid the damaging consequences which structural adjustments to the economy can easily create (long term unemployment and widening regional inequalities), New Zealand needs a population which is aware of the power of ICT, particularly the Internet: willing and able to use them effectively. In other words, a population that is e-literate.
15. Given the value of connectivity, as illustrated by Metcalf's Law,linking as many people, communities, organisations and businesses as possible to the Internet creates a value far outweighed by the cost.3 Increasingly those unconnected to the network become significantly disadvantaged in social and economic terms.
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