I thought some of you folks might be interested in my first contribution
to the ILO/World Bank's ICT-JOBS panel...  You will note the heavy FW
influence on what I've presented...

Mikeg
 
---------- Forwarded message ----------
Date: Tue, 19 May 1998 12:26:15 -0300 (ADT)
From: Michael Gurstein <[EMAIL PROTECTED]>
To: ICT-JOBS --  [EMAIL PROTECTED]
Subject: ICT & Jobs:  Creator or Destroyer


[I'm Mike Gurstein...Director of the Centre for Community and Enterprise
Networking of the University College of Cape Breton, Nova Scotia, Canada
<http://ccen.uccb.ns.ca>]

-------------------------

ICT & Jobs: Creator or Destroyer

The issue whether ICT is a creator or destroyer of jobs is somewhat
clearer as "prediction" than in reality.  The logic of the discussion is that
ICT is being introduced to make work more efficient.  More efficient work
means more production with fewer jobs, therefore ICT should logically be
feared as a net job destroyer.

In practise the situation is much more complex.  ICT has created new
services, and arguably new goods.  An example is electronic mail which
not only replaces conventional mail but through its ease and
effectiveness is becoming a new communications medium...something new or
is it a "destroyer" of an existing service?  Well "yes" and "no". 

The same service (message delivery) was of course, available in
conventional form (mail, telephone) but the electronic version provides 
the opportunity for such a massive increase in message quantity AND
quality (file attachments, audio, video etc.) that conventional means with
whatever increase in employment in the sector could never have coped.

E-mail doesn't just replace conventional mail (or telephone calling) it is
a totally new form of communications service and while the volume of other
types of message communication may be decreasing it is likely that the
massive net increase in overall message communication is such as to
either directly or indirectly lead to an overall increase (though
massive redeployment) in employment associated with message "carriage". It
is likely that we will begin to see similar developments in the area of
electronic commerce and we are already beginning to see this emerge in the
area of GIS/GPS.  Meanwhile of course, the deployment from mail handling
to electronic messaging leads to job disruption and there is no easy
transition path from employment in one to the other and so on and so on.
 
This process of quantity of ICT-use morphing into qualitatively new
activities/services/products was not foreseen in the earlier "end of work
through ICT" analyses.  The result of this development in my country
Canada, and in the US is that rates of joblessness appear to be going down
overall and in the areas specifically linked to ICT--software development
and services, there is reportedly a net North American employee shortage
in the hundreds of thousands.  It has reached the point where various
political figures (Clinton/Chretien) have referred to this as an
"employment crisis" and are taking steps to respond by for example,
opening up immigration quotas.

However, while unemployment numbers are dropping in the high technology
and commercial/administrative centres, my own region of Cape Breton
Island, Nova Scotia continues to experience very high unemployment (in the
20-30% range officially and at least 10% higher unofficially--based on
much lower local than national participation rates).  This is accompanied
by continuous and even accelerating out-migration (.5-1% a year) and
precisely in the most productive age categories (17-35).  Thus the high
technology "boom" is selective in its impact.

In fact, ourselves and (based on anecdotal information) other similar
peripheral regions (I like to call them lagging regions in leading
economies--LRLE's) appear to be suffering precisely the type of "end of
work" phenomenon which was so widely discussed in the early 80s and then
again in the early 90s...  

The banks and utilities are closing up their local branches and
centralizing operations in regional centres;  the public sector is going
through similar consolidations and administrative centralization as it
cuts back on services such as schools, hospitals and social services;
retail distribution is being rationalized/centralized away from the
periphery and so on.  All of this is being facilitated and accelerated as
a more or less direct consequence of the capacity to manage and process
information from a distance, through ICT.

The alternative promise of ICT--that work could be done from
anywhere--rather than a solution for peripheral regions such as ours,
appears to be precisely the problem, in that if it can be done from
anywhere why would it be done from the periphery.  The few enterprises
which counter this trend (at least locally) are idiosyncratic and either
have very shallow root structures (those attracted by massive government
incentives or local life-style amenities) or are undercapitalized and
lacking the supportive infrastructure for success (those which are
home-grown).

Certainly there are opportunities for us in being able to work from
anywhere (and I'll describe some of our own experiences with this in
subsequent posts), but the realization of these opportunities requires a
depth of bureaucratic imagination and political will (and understanding)
which regrettably is lacking in these days of market mania.  Even with our
dramatically lower overhead costs, significantly lower labour costs, and
lifestyle amenities it appears to require an unachievable level of
political/bureaucratic effort and leadership to ensure any redistribution
of ICT oriented employment opportunities beyond the limits of existing or
emerging metropolitan catchment areas.

Mike Gurstein

Michael Gurstein, Ph.D.
ECBC/NSERC/SSHRC Associate Chair in the Management of Technological Change
Director:  Centre for Community and Enterprise Networking (C\CEN)
University College of Cape Breton, POBox 5300, Sydney, NS, CANADA B1P 6L2
Tel.  902-563-1369 (o)      902-562-1055 (h)      902-563-1336 (fax)
        [EMAIL PROTECTED]          http://ccen.uccb.ns.ca





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