New data compression systems are being developed. Fiber-optics and wireless communications techniques are constantly improving. Costs are dropping so rapidly that, within the next twenty years, the exchange of information may be practically a free commodity. Digitalization is causing a convergence of broadcasting, publishing and other information-based services and opens the possibility of universal networks with the world available at one's fingertips. For the emerging economies these changes present exciting opportunities and pose many challenges.
New technology allows countries to overcome some development constraints.
Distance education, for example, can become a viable complement to conventional schooling. Financing, operation and ownership of information infrastructure are becoming increasingly attractive to the private sector, thus reducing the burden on public sector finances. Governments of emerging economies need to take several steps to prepare for this shift to an information-led economy. Appropriate legal and regulatory environments need to be set in place as information infrastructure development requires moving away from traditional monopolies to an environment in which information services are provided on a competitive basis. In addition, a major effort in knowledge expansion is needed to ensure that productivity gains improve competitiveness.