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Advancing knowledge, shaping policy, inspiring practice www.odi.org.uk
Poverty, policy and the mobile revolution Dr. Claire Melamed, Head of Growth, Poverty and Inequality Programme 20 June 2011
Mobile phones, poverty and growth More efficient ways of doing what people are already doing Doing new things Boost economic growth 3
But...geography 4
But...literacy 5
But...money 6
The market can’t do it on its own Incentives to reach remote areas Other interventions: education, cash transfers Regulate competition Governments have a key role in making sure the benefits are spread as widely as possible  7
ODI is the UK’s leading independent think tank on international development and humanitarian issues. We aim to inspire and inform policy and practice to reduce poverty by locking together high-quality applied research and practical policy advice.The views presented here are those of the speaker, and do not necessarily represent the views of ODI or our partners. 111 Westminster Bridge Road, London, SE1 7JD T: +44 207 9220 300 www.odi.org.uk Initial.surname@odi.org.uk

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Africa gathering presentation odi

  • 1. Advancing knowledge, shaping policy, inspiring practice www.odi.org.uk
  • 2. Poverty, policy and the mobile revolution Dr. Claire Melamed, Head of Growth, Poverty and Inequality Programme 20 June 2011
  • 3. Mobile phones, poverty and growth More efficient ways of doing what people are already doing Doing new things Boost economic growth 3
  • 7. The market can’t do it on its own Incentives to reach remote areas Other interventions: education, cash transfers Regulate competition Governments have a key role in making sure the benefits are spread as widely as possible 7
  • 8. ODI is the UK’s leading independent think tank on international development and humanitarian issues. We aim to inspire and inform policy and practice to reduce poverty by locking together high-quality applied research and practical policy advice.The views presented here are those of the speaker, and do not necessarily represent the views of ODI or our partners. 111 Westminster Bridge Road, London, SE1 7JD T: +44 207 9220 300 www.odi.org.uk Initial.surname@odi.org.uk

Editor's Notes

  1. e.g. Markets: mobiles have been shown to reduce differences in prices between markets, helping both producers and consumers (though possibly a price paid by traders!).e.g. The new commercial opportunties, new possiblities opened up by money transfer (inc. By govs e.g. For cash transfer schemes)10% increase in mobile phone penetration = nearly 1% increase in economic growth.And not forgetting using for entertainment and enjoyment – a good in its own right!Hugely important – a public service like health, education.
  2. Map shows spread of coverage but still big gaps – geographical exclusionHuge cost to governments: 85% of cost of supplying access is in last 100m. Assumption that it has to be fixed lines, wireless much cheaper but capacity smaller – policy choices and technological development.
  3. Old inequalities also inhibit access to mobile tech (though mobile tech also being used to tackle them, e.g. Literacy).
  4. The cost – MPESA transfer in some parts of Kenya costs the same as a bag of maize.
  5. More competition does tend to lower pricesGovernments can impose conditions on providers to expand into remote areas as condition of license. But regulation is a hugely complicated issue and there are few pointers – the issues in developed and developing countries are very different (e.g. switch from fixed to wireless, cf. rollout of wireless)A lot of it is about what governments are doing already.