Cyberspace, data superhighway, multimedia, for those who have seen the future, and the linking of computers, televisions and telephones will change our lives for ever. Yet for all the talks of a forthcoming technological utopia, little attention has been given to the implications of these developments for the poor. As for all the new high technology, the West concerns itself with the "how", while the question of "for whom" is put aside once again. Economists are only now realizing the full extent to which the communication revolution has affected the world economy. Information technology allows the extension of trade across geographical and industrial boundaries, and transnational corporations take full advantage of it. Terms of trade and exchange, interest rates and money movements are more important than the production of goods. The electronic economy made by information technology allows the haves to increase their control on global markets -- with a destructive impact on the havenots. For them the result is unstable. Developing countries which rely on the production of a small range of goods for export are made to feel like small parts in the international economic machine. As "futures" are traded on computer screens, developing countries simply have less and less control of their destinies. So what are the options of regaining control?One alternative for developing countries is to buy in the latest computers and telecommunications. Yet this leads to long-term dependency and perhaps permanent constraints ( ,) on developing countries' economies. Communication technology is generally exported from the US, Europe or Japan;the patents, skills and ability remain in the hands of a few industrialized countries. It is also expensive, therefore imported products and services must be bought on credit usually provided by the very countries whose companies stand to gain. Why does the author say that the electronic economy may have a destructive impact on developing countries?
Because it enables the developed countries to control the international market. Because it destroys the economic balance of the poor countries. Because it violates the national boundaries of the poor countries. Because it constrains the industrial growth of developing countries.