Despite crashes and global recessions, technology has made the average person better off today.
That was the word from economist Mike Schussler, of Economists.co.za, who presented during ITWeb Digital Economy Summit 2015 at The Forum, Bryanston, this morning.
According to Schussler, the average income per person has gone from $1 000 in 1900 to about $8 000 per annum currently, meaning the average person is now eight times richer.
"In the 1900s, there were no TVs, computers, cars, mobile phones, air travel and hardly electricity," he noted.
"Nearly all income groups are richer because of technology and now there is a booming global elite," Schussler pointed out.
Technology also means the world is getting more educated, he added, noting the global primary education completion rate is hovering around 92%; secondary school enrolment rate well above 70%; and tertiary enrolment rate at 32%, up from 10% in the 1970s.
In this age of technology, Schussler believes absolute poverty rates have declined while life expectancy levels have increased considerably.
He said that although the South African digital economy is below that of countries like South Korea, Poland and Chile, it is now catching up with Mexico and is above the likes of Thailand. "Our productivity is relatively okay but not improving fast. While the world average GDP per capita is $14 000, SA's is $12 000.
As at 2012, he said, ICT contributed about 2.9% to the South African economy. "Remember, however, that GDP is a value-added concept and ICT equipment is mainly imported, in SA.
"Put another way, total ICT output in the economy in 2012 was 7.4% but only 2.9% of GDP. So, for example, we imported 24.2 million cellphones in 2014 but their value is subtracted as it is an import and they were not created here."
A total of 5.2 million laptops, PCs, tablets and game consoles were also imported in 2014, Schussler said.
"SA is a good follower, but not a content or infrastructure leader," said Schussler.
The prices of telecoms services haven't fallen as expected in SA, he noted, and the country is faced with the challenge of balancing the need to deliver on speed and price vs achieving political objectives.
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