The central point of Castells' information economy is that the inherent logic of the system is exclusionary, and the gap is increasing (Gerstner, 1999). Castells (2000a) defines the global
economy as still-capitalism
, since the purpose of production in the new economy is still for profit and the economy system is still based on property rights (p. 373). Castells
(2004) states: Capitalism has not disappeared, but it is not, against the ideologically suggested perception, the only source of value in the global town
(p. 39).
Castells suggests that Africa, as the fourth world, is dropping further and further behind the global economy with each leap forward by the techno-elite
(Gerstner, 1999). This
is not because of political purposes, but because of the inherent nature of technology. Why does the inequality increase if tremendous technological advancements are supplied to society? New
networks and communication technologies enable people or nodes to build relations with others. However, the decision of making relations is up to the comparative value of each node. Thus,
Africa, which has no legacy from an industrial era, is composed of less valuable segments, which remain isolated or utilized for cheap wage labor in the new economy. Poor children in Africa and
Latin America are still exploited at work by global business organizations.
The inequality occurs in information consumption. Alvin Toffler and Nicolas Negroponte believed that the new information technologies would lead a radical, positive change in the economy. Castells foresees that technical changes are not equally beneficial to everyone in the global economy. His attention is focused on the digital divide, which refers inequitable distribution or access to information. Wireless communication, Broadband cable, and other new technologies made it possible to hyperlink instantly among multiple spots. However, the majority of the populations remain unwired. According to Castells, information, like the capitals in industrial economy, is always insufficient to all the people.
Since Castells considers the new techno-economic paradigm in network society a socially embedded process, not as an exogenous factor affecting society,
he can be categorized as
a technology determinist. However, he has never blamed the technology itself, even if he thinks that the nature of modern technology increases the inequity of glob al societies. Castells
states: This is not an opinion. It's an empirical observation. However, this is not the fault of technology, it is the way we use it.... Unequal, undemocratic, exclusionary
societies, on the contrary, will see the power of technology dramatically increases social exclusion
(Gerstner, 1999).
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