The role of information technology policies in promoting social and economic development: A case study of the state of Andhra Pradesh in India

This study employs a political economy framework, based on Karl Polanyi's concept of an interventionist state, to assess the role of information technology policies in promoting social and economic development in the Indian state of Andhra Pradesh. Analysis of the policies reveals the construction of a hybrid form of economy comprised of liberalization of market conditions and a continued attention to the problems of development and the public interest. The private information technology industry, apart from generating capital for reinvestment as well as tax revenue, has been targeted by the state as the leading sector in promoting entrepreneurship and new forms of employment for technically skilled and unskilled workers. To support the development of this industry the state has invested in the expansion of public and private institutions of advanced technical education, which provide skilled and technical labor capacity. At the same time the government has been compelled to restructure its own administrative institutions by means of information technology to provide more efficient and standardized services to both industry and its citizens. Thus the growth of the information technology sector in Andhra Pradesh has created a new infrastructure of education and efficient governance to support the sustained growth of information technology enterprises. However, access to opportunities of advanced scientific and technical education, necessary to participate in the information technology industry are limited to a very small percentage of Andhra Pradesh's citizens. This is not to suggest that conditions are definitive but rather point out that information technology policies and development goals may need to be reconstructed and redesigned to generate broader participation in Andhra Pradesh's economic development. This study offers recommendations toward that end paves the way for future research to assess and measure the ripple effects of information technologies, networks and industries for promoting economic growth and alleviating poverty.