Final Project (Sociology)

DR. RAM MANOHAR LOHIYA NATIONAL LAW UNIVERSITY,

LUCKNOW
2022-2023

SOCIOLOGY

TITLE OF THE PROJECT –

DIGITAL ECONOMY – A LEVELLER OR A SOURCE OF ECONOMIC
INEQUALITY

SUBMITTED BY- SUBMITTED TO-

SHIVAM SHUKLA DR. SANJAY SINGH

ENROLL NO. -220101141 PROFESSOR.
&
ANADI RAMAN (220101023)
COURSE – B.A.LL.B.
SEMESTER- 2ND

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 ACKNOWLEDGEMENT

Firstly, I would like to express my special thanks of gratitude to my Sociology

Professor, Dr. Sanjay Singh who gave me the wonderful opportunity and the
required independence to do this wonderful survey and project on the topic
“Digital Economy – A Leveller or a Source of Economic Inequality”. This helped
me in doing a lot of Research and through this I came to know about many new
things.

Secondly, I would also like to thank my friends who helped me a lot in this survey
and also acted as the respondents within the limited time frame.

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 CONTENTS

➢ INTRODUCTION

➢ PEOPLE ON DIGITAL ECONOMY

➢ DIGITAL DIVIDE – RURAL AND URBAN INDIA

➢ DIVIDE IN TERMS OF GENDER AND AGE

➢ DIGITAL DIVIDE – EDUCATION AND OCCUPATION

➢ DIGITAL ECONOMY AS A LEVELLER AND A WAY

FORWARD

➢ DIGITAL ECONOMY AS SOURCE OF ECONOMIC

INEQUALITY

➢ SUGGESTIONS AND CONCLUSION

➢ BIBLIOGRAPHY

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 INTRODUCTION

Click on the Zomato app and you will have your pizza delivered at your doorstep, one click on
the Uber will make you reach the airport in time and with just a single click, you can actually
plan your vacation in Mauritius. Thereby, going digital is no longer an option, it is the default.

Technology has evolved so much in today’s time that everyone has become tech savvy. A
student with access to internet can learn more than a child with no internet connectivity. A
trader can buy his work and sell it online on higher prices. A farmer can stay updated with real
time advisory.

Not just this, a young man or woman with internet skills is more likely to be hired at a
departmental store. One swipe of the ATM card resolves the issue of carrying cash and the list
goes on. It’s this digital world which has made every impossible thing possible.

Digital economy is a term coined in the mid-1990s which is considered as the by-product of
internet revolution. The digital economy is the worldwide network of economic activities,

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commercial transactions and professional interactions that are enabled by information and
communication technologies. Naming one thing where technology is not present is difficult.

Digital economy has evolved tremendously. Apart from the basic applications, many new
features and new areas have emerged such as Internet of things, 5G, data analytics robotics, 3D
printing, automatic vehicles, cloud computing, artificial intelligence, etc. It finds application in
education, entertainment, banking, science, healthcare, financial services, space, medicine,
agriculture and so on.

Digital technologies provide a level playing field, easy accessibility, affordability and services
to all. It’s a saying that in 21st century one cannot completely switch off!

But then the big question arises, “Whether the technology which was made to make this world
a better and a more ideal place has fulfilled its purpose or whether it has made the things worse
for the society?”

This project is hence aimed at answering this BIG QUESTION and knowing what the people
think about this and how do we see the future along with the digital economy

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 DIGITAL DIVIDE – RURAL AND URBAN INDIA

Rural People on the Digital Technology

Neutral In Favour Against

Most people responded positively with regards to the digital growth with many saying that this
has certainly brought the rural India closer to the urban areas. With weather prediction, farming
activities etc. being done much easier and better. Better agriculture management techniques
have also been brought. However, a large no. of people were still apprehensive of the digital
world saying that the urban areas have become the hub while leaving the marginalised areas
behind.

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 DIVIDE IN TERMS OF GENDER AND AGE

Digital Divide as per Gender

Yes No

The results are more or less consistent with earlier theories—of gender and age determining
the pattern of usage. For instance, as the complexity of applications and internet access
requirements increases from Group 1 to Group 4, the divide is sharper between men and women
and the young and old. Women often tend to feel being discriminated in their own houses
compared to their male counterparts. While what a person is also tend to be a thing of
significance in determining this.

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DIGITAL DIVIDE – EDUCATION AND OCCUPATION

Has Occupation been affected

Yes No

However, contrary to popular perception, education and occupation do not significantly affect
the feature-use divide. Hence, while we make a concerted push towards digitization, the
findings reveal mere access to smartphones wouldn’t help. What is needed, perhaps, are public
training modules to bridge the digital divide. Everyone must make the most of what they have
in their hands—and have paid so much money for.

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`

People on Digital Economy

Is the Way Forward Is Leading to Economic Inequality Neutral

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 DIGITAL ECONOMY AS A LEVELLER AND A WAY FORWARD

In the survey, most of the people sounded optimistic about the digital revolution in recent times.
They were of the opinion that one should look at the positive side of the coin and further
advocated for a better reach of this revolution. They said that with advent of apps such as Uber,
Zomato etc. more employment has been created for the underprivileged while apps such as
Paytm, Swiggy etc. has helped the roadside vendors in increasing their reach, thus reducing so
called inequality. Most of the opinions that appeared in the forefront were:

“Was not man apprehensive when computers had first arrived? Was not joblessness provoked
as a fear at that time? Similarly, with the fast pacing and globalised world, man is again
doubtful about the possibility of these technologies replacing men or brushing gender equality.”

Starting from our own households, digitization has shaped our lives such as smart electricity,
LED TVs, smartphones, I-pads, automatic cars and what not. The problem of cash transactions
during availing banking services, health care services, payment of fees, shopping etc. has been
eradicated through digital payment modes like net banking, credit/debit cards, Paytm, Phone
Pe etc. Technology finds numerous applications outside of the households such as in the
production sector where digitization has seen spur in innovation which is engine of growth.
Many e-commerce companies, cloud computing, ITES, smart grid etc. have availed these
technological advancement opportunities for producers and sellers.

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 DIGITAL ECONOMY AS SOURCE OF ECONOMIC INEQUALITY

On the other hand, an unpopular opinion correspondingly appeared which was backed by a few
stats as well. Some people were critical of the way the digital economy has superseded and
how it acted as a means of increasing the already ever rising economic inequality. The views
of the people regarding the same has been comprehended as follows:

“Technology is sometimes also treated as a driver of economic inequality due to globalization,

organizational and situational factors. Many inequalities are observed such as in terms of
income difference which eventually breeds inequalities among people.”

Change of such a kind requires change of people’s attitudes because it’s very hard to transform
the culture and workforce to the digital world if all of the processes are stuck in the traditional
world. If people do no adapt themselves to the fast- changing world, then they will log behind
most others and will not be able to compete.

Large firms are in concentrated markets where executives are paid exorbitantly compared to
the rest of the areas. But these are exceptions and is not so always. There is some difference
among the gender usage of technology such as per the Digital Economy Report, in around 2/3rd
of countries women using internet are less than men.

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 SUGGESTIONS AND CONCLUSION

It is a harsh reality that many disparities remain there in the system but our focus should be on
to eradicate them and focus on a more balanced future where can also optimally utilise the
digital growth. For this people were asked about their suggestions and UNCTAD
recommendations were also studied. What came out was FOUR major things out of it which
have been aimed at enhancing e-commerce radius in an equitable manner where firms and
people create value through digital economy.

First step would be formulation of appropriate strategy through establishment of a leading

ministry to enhance focus on digital technology, awareness generation towards importance of
digital empowerment, engagement into public-private partnership dialogues. Just as PPP model
has been proved to be effective in the construction of highways, bridges etc. similar model can
be applied in the digital technology as well.

Second, creations of ICT infrastructure such as fast, affordable, reliable internet services and
last mile connectivity especially connecting the rural population those in inaccessible
hinterlands. PPP model can serve as national backbone infrastructure for access to internet
bandwidth.

Third step would involve creation of legal and regulatory framework to regulate the e-
commerce firms and digital economy and laws aimed at consumer protection, data protection,
Intellectual property right etc. This would also include stringent provisions in ease of violation
of laws and rules.

Fourth, would include development of skills i.e. making the workforce eligible for high-skilled
or expertise requiring tasks through reskilling and upskilling. This can take place through
vocational training by providing incentives such tax holidays, tax breaks/grants to employer.
Recognition of training provided by informal training institutes such as in various diploma
courses or distance education courses. One such initiative is of Ministry of Tribal Affairs to
impart training to tribal girls (5000) by mentoring them on weekly basis in collaboration with
Facebook. Empowering women in the digital economy is a prerequisite for upward mobility of

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women and making them financially empowered. ‘Wireless Women for Entrepreneurship and
Empowerment’ is a program in India which is women driven ICT based micro social
enterprises.

At the end, fostering digital entrepreneurship and innovation through large scale ‘talk-shop’
conferences such as i4 Policy initiative in Africa incorporates hub managers for policy
dialogues. Many such initiatives like these will help in making digital economy as a leveller
and not as a source of economic inequality. In a nutshell what we can conclude from this
experiment is that we need to realise that times are changing and are bound to change; it
depends on us how we adjust ourselves to the changing times.

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 BIBLIOGRAPHY

Survey done on Digital Inequality

Economic Times - Editorial

www.livemint.com

rauiasacademy.in

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