CRISIS AND CONNECTIVITY: TECHNOLOGICAL STRUGGLES IN EASTERN EUROPE AND CENTRAL ASIA DURING THE 2008-2009 CRISIS

This paper investigates whether the 2008–2009 global financial crisis influenced the trend in technology adoption among manufacturing and service sector firms in Eastern Europe and Central Asia. The analysis focuses on three key indicators of technology use: email for communication, company websites for product promotion, and access to high-speed internet. Drawing on data from the World Bank’s BEEPS surveys, the study first finds that manufacturing firms consistently demonstrate higher levels of technology adoption than service firms. Despite the economic shock of the global crisis, the upward trend in technology use continued across both sectors. For instance, the share of service firms using email rose from 70.89% pre-crisis to 79% post-crisis, while for manufacturing firms it increased from 80.04% to 89.19%. Similarly, website usage grew from 45.61% to 51.74% among service firms and from 58.83% to 67.42% among manufacturers. Data on high-speed internet access—available only for service sector firms—indicates an increase from 61.00% before the crisis to 78.25% after the crisis. Additionally, perceptions of telecom as a business obstacle improved: while firms initially viewed it as a “minor” to “moderate” issue, post-crisis, it was generally considered a “no” to “minor” obstacle. Overall, the findings indicate that the global financial crisis did not disrupt the positive trajectory of technology adoption in the region.