[UgaBYTES] Mobile Phones Narrow Poverty Gap in Emerging Markets - UN Report

[Mwathi Francis]

A  United Nations Conference on Trade and Development, (UNCTAD) report
states that use of modern ICT gadgets like the mobile phones and net
access are helping to narrow the digital bridge between the rich
nations and emerging economies.
The study finds that mobile telephones and telecentres support
livelihoods in developing countries.
"A decline in the cost of information and communication technology
(ICT) has extended its use by the poor, who capitalise especially on
information obtained by telephone to support livelihoods in
agriculture and various small businesses", the new UNCTAD report says.
The Information Economy Report 2007-2008 (1), released early this year
illustrates ICT contributions to poverty reduction by focusing on two
examples:
"The use of mobile telephones for conducting micro-business in Africa;
and the creation of telecentres for the benefit of poor communities."
"Mobile telephony is rapidly progressing in the developing world. In
Africa, there were 50 million new mobile subscribers in 2006, and in
2007 the total number of mobile subscriptions reached an estimated 200
million. This means an average of more than 20 active cell phones per
100 persons. Mobile telephony has practically replaced fixed lines in
many countries."
The reported noted that the flexibility and ease of mobile technology
has led to its widespread use in business transactions, most
particularly by very small firms or micro-businesses.
"Basic, up-to-date information on prices and the weather, for example,
often was not easily available in the past in Africa and Asia. Farmers
and fishermen in India and Senegal now use mobile phones to get
information on the weather and market prices which have a practical
effect on short-term decision-making, such as when and where to sell
produce. Small farmers in Uganda share their knowledge about
agricultural production, and micro-businesses in Kenya gain access to
credit by using mobile phones."
"An advantage both for the poor and for the developing countries they
live in is the relative lack of infrastructure required for mobile
phone systems.
Compared with fixed-line telephony, mobile networks can be quickly and
fairly inexpensively provided, as they do not depend on the
installation of physical cables. In addition, mobile telephony can be
based on prepaid subscriptions which do not require credit screening
and complicated accounting and billing systems. And the ability of
mobile phones to send short text messages expands the range of cheap
communication available to the poor." Rural areas continue to be less
well served in Africa
"Universal access to such phone service remains a challenge due to a
lack of commercial distribution channels. High rates of poverty can
make even less costly mobile phones too expensive, and low levels of
education can make cell phone use difficult. One response to these
challenges can come from government policies that encourage
competition and investment in mobile telephony, that ensure a stable
regulatory framework, and that take practical steps to spread ICT
benefits to the poor," the report states.
Telecentres - namely, public facilities where people can communicate
using phones, the Internet, and other forms of ICT, and where they can
develop digital skills- have helped extend social and economic
benefits to numerous poor. They are increasingly key programmes and
policy instruments used by governments.
Telecentres can support the livelihoods of the poverty-stricken by
providing access to important information, by extending the
development of technical and business skills, by giving better access
to government services and to financial resources, and by aiding the
activities of small entrepreneurs.
To understand how telecentres support livelihoods among the poor,
UNCTAD surveyed a number of telecentre networks in Bangladesh and
India. The survey assessed which services telecentres are providing,
who benefits from those services, and what are the key environmental
and institutional factors that enable telecentres to help the poor
raise living standards.
The results show that most telecentres are concentrating on providing
access to ICT and on developing basic ICT skills. In line with the
type of services offered, telecentres are primarily used for
information and education purposes. However, this is not sufficient
for supporting the livelihoods of people living in poverty.
For instance, few telecentres provide specific training on the use of
ICTs for the development of economic opportunities - such as
e-business training - or provide training to support the development
of business and/or occupational skills.
Based on these findings, the report suggests that policy makers and
managers of telecentres gear such institutions to provide better
support to the livelihoods of the poor. Among the study´s
recommendations are that governments promote relevant e-government
content and services, support the development of e-business skills,
and provide strategic financial support for telecentre networks.
The report also recommends that managers of telecentres offer
e-business skills training programmes; that they employ community
"infomediaries" to help the less-skilled use ICT services effectively;
and that they collaborate with other organisations that support
economic activities, such as business associations and micro-credit
institutions.

SOURCE:

www.itnewsafrica.com


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