The political economy of information in a changing international economic order

The central focus of economic activity in post-industrial societies is shifting from the manufacturing of objects to the handling of information and knowledge. The power of major transnational firms now rests as much upon their capacities to marshal information and knowledge as upon their traditional role in directly productive activities. There is every indication that the sharpest aspect of competition in the future may be based more on the efficient use of specialized knowledge, information, and new technological capacity for its communication and use than on more traditional factors. Information handling capacity already offers industrialized countries and firms considerable economic and political leverage in North-South interaction. Information vital to developing countries is frequently concentrated in the capitals of the North.