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Information Technologies (ICTs) and Development

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Why Does the bottom of the pyramid use Mobile Phones?
Efficiency of daily activities : 4.2
Ability to earn or save : 3.7
Family and Social relations : 4.4
Ability to act in an emergency : 4.6

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Information Technologies (ICTs) and Development

  1. 1. ICTs and DevelopmentICTs and Development Laurent ElderLaurent Elder International Development Research CentreInternational Development Research Centre (IDRC)(IDRC)
  2. 2. ““the cell phone is thethe cell phone is the single mostsingle most transformativetransformative technology fortechnology for development.”development.” Jeffrey SachsJeffrey Sachs
  3. 3. What has IDRC learnedWhat has IDRC learned about the impact of ICTsabout the impact of ICTs on socio-economicon socio-economic development?development?
  4. 4. Presentation structurePresentation structure  Who uses ICTs and why in developingWho uses ICTs and why in developing countries?countries?  What’s the evidence of impact in variousWhat’s the evidence of impact in various development areas?development areas?  What are new and current issues?What are new and current issues?  ConclusionsConclusions
  5. 5. Mobile Usage and AccessMobile Usage and Access  BOP used a phone in the preceding 3 months Pakistan India Sri Lanka Philippines Thailand 98% 94% 92% 93% 95%
  6. 6. Mobile Usage and AccessMobile Usage and Access  BOP Spending on mobile phones as % of incomeBOP Spending on mobile phones as % of income BrazilBrazil ArgentinaArgentina India and SriIndia and Sri LankaLanka 3.2%3.2% 6.3%6.3% 6%6%
  7. 7. Why Does the Bottom of theWhy Does the Bottom of the Pyramid Use Mobile Phones?Pyramid Use Mobile Phones?  Perceived impact of mobile access for the poor?Perceived impact of mobile access for the poor?  1= worsened, 5= improved1= worsened, 5= improved Efficiency of daily activitiesEfficiency of daily activities 4.24.2 Ability to earn or saveAbility to earn or save 3.73.7 Family and Social relationsFamily and Social relations 4.44.4 Ability to act in an emergencyAbility to act in an emergency 4.64.6
  8. 8. Impact on Economic GrowthImpact on Economic Growth
  9. 9. Impact on Economic GrowthImpact on Economic Growth  Kenya: ICTs responsible for 25% of GDPKenya: ICTs responsible for 25% of GDP  Peru: household incomes of Internet users 19%Peru: household incomes of Internet users 19% higher than non-usershigher than non-users  very poor with access to ICTs were able tovery poor with access to ICTs were able to spend $21 more a month than those withoutspend $21 more a month than those without accessaccess
  10. 10. Impact on Rural LivelihoodsImpact on Rural Livelihoods
  11. 11. Direct Production 85% Transaction costs 15% Cost of information in the agricultural production value chainCost of information in the agricultural production value chain Total Cost of Good Impact on Rural LivelihoodsImpact on Rural Livelihoods
  12. 12. Costs linked to information 70% Cost of information in the agricultural production value chainCost of information in the agricultural production value chain Total Transaction Costs Impact on Rural LivelihoodsImpact on Rural Livelihoods Other (30%)
  13. 13.  11-12% of the value of an agricultural good is11-12% of the value of an agricultural good is linked to informationlinked to information  Mobiles are seen as the principal means ofMobiles are seen as the principal means of reducing those costsreducing those costs Impact on Rural LivelihoodsImpact on Rural Livelihoods
  14. 14. Impact on HealthImpact on Health
  15. 15. Impact on EducationImpact on Education
  16. 16. Governance and Digital ActivismGovernance and Digital Activism
  17. 17. New issuesNew issues
  18. 18. Open DataOpen Data
  19. 19. Crowd SourcingCrowd Sourcing
  20. 20. Crowd Sourcing: HarassmapCrowd Sourcing: Harassmap
  21. 21. It’s not all good news • The internet is largely unaffordable to most • Many governments and NGOs see apps or ICTs as a silver bullet solution • Communities are littered with ineffective ICT4D projects
  22. 22. Getting in touch with me: lelder@idrc.ca www.idrc.ca www.crdi.ca

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