Towards a Viable Computer Industry in Developing Nations: The West Bank Case

Abstract

The scarcity of natural resources and the prevailing political conditions place severe restrictions on the economic development of the West Bank. On the other hand, certain characteristics of the West Bank economy such as the abundant and steadily increasing supply of highly educated technical workers make the creation of industries with substantial requirements in skilled human labor an attractive area of development to face future challenges in the eld of employment. Examples are high tech industries in general, and information-technology-based industries in particular. The latter include hardware and software development, computer controlled machinery, design of computerbased instructional materials, electronic publishing and data collection and distribution. However, in addition to the political situation, the insu cient infrastructure, limitations on funding opportunities, inadequate planning and the state of the existing economic structures have unfavorable in uence on this line of development. In this paper we investigate the possibilities of establishing viable information-technology-based industries in the West Bank. We discuss the factors favoring and those limiting this path. We outline the types of industries that can be most appropriate for the local conditions and point to the e ects of possible changes in the environment on the paths of development of these industries. We also o er suggestions to help create a more stimulating atmosphere for the development of such industries and point to the costs involved. The material presented here is based on the author's watch of the information technology market in the West Bank and on the study of the experiments of other nations in this eld