Mobile phone a poverty reduction tool: UNCTAD

Mobiles help micro-entrepreneurs with little education and scant resources thrive, says a UNCTAD report

trithesh

Trithesh Nandan | October 14, 2010



Mobile phones can help drive out poverty in developing countries, a report by the United Nations Conference on Trade and Development (UNCTAD) says.

The report said, “In more and more low-income countries farmers, fishermen and entrepreneurs have used mobile phones and other forms of communication technology to improve their livelihoods.”

With examples of success from India as evidence, the report added that mobile phones have become critical tool for fishermen in efficient accessing of markets and improve livelihoods. According to the report, “In Southern India, for example, fishermen’s profits have increased by 8 percent thanks to better market coordination.”

The report, released on Thursday, also took note of high rate of success in the states like Rajasthan. It said that a new phenomenon known as ‘social outsourcing’ is helping poverty alleviation. “’Source for Change,’ a BPO services firm, is a socially responsible enterprise that employs poor women in rural Rajasthan.”

The enterprise which aims to employ 5,000 women in rural India by the end of 2012, according to the report, has helped women to generate higher incomes and improved social standing within their communities.

The report titled ‘Information Economy Report 2010’ also highlighted that personal-computer use in low-income countries is extremely low and virtually negligible in rural areas.

The report brings some cheer for India when it comes to assessing technology usage for development and economic inclusion. A recent study by Internet and Mobile Association of India (IAMAI) and market research firm IMRB has found that a high percentage of people in rural India are not aware of internet.

“Poor people often lack access to information that is vital to their lives and livelihoods, including weather reports, market prices and income-earning opportunities,” the UNCTAD report said highlighting how mobile phones are important for poor families in gathering information.

The report cited examples of some countries and how mobile technology is helping the poor there in improving their livelihoods. Some of the examples, the report discussed are:

• In Bhutan, mobile phone use has transformed the everyday lives of dairy farmers. The phones help farmers to get information about market prices and to stay in direct contact with their customers.

• The ‘village phone’ service developed by Grameen Phone in Bangladesh has allowed rural women to establish micro-enterprises.

• The cell phones have reduced transaction costs and better market prices of grain markets in Niger, dairy farmers in Bhutan and onion traders in Ghana.

• In Gambia, former street beggars have been offered the opportunity of working for a mobile telecom company, Gamcel, which resulted in higher incomes and improved social status for them.

The report predicted that mobile phone subscriptions will reach five billion in 2010, almost one per person on the planet. But the UNCTAD said that while developed countries have greater access to mobile phones, the developing countries have a long way to go.

“Penetration in developed countries is over 100 percent, with many people having more than one phone or subscription. In developing countries, the subscription rate is now 58 per 100 people, and rising rapidly, with the rate in the poorest Least Developed Countries (LDCs) up at 25 from only 2 per 100 a few years ago,” UNCTAD study said.

Noting the success of the lowest ‘prepaid’ prices in India, the UNCTAD suggested governments must make mobile technology affordable. “India has been a pioneer in reducing operational and investment costs which contribute to lower prices,” the report mentioned and asked other countries to follow it, “It would be desirable if the South Asian model spread also to low-income countries.”

The UNCTAD has also urged governments around the world to make better use of mobile phones in fight against poverty.

Comments

 

Other News

UPI completes 10 years of digital payments revolution

The Unified Payments Interface (UPI), launched on August 25, 2016 by the National Payments Corporation of India (NPCI) under the regulatory oversight of the Reserve Bank of India (RBI), has completed 10 years of transforming digital payments in India. UPI has emerged as the backbone of India’s digi

Here’s an I.D.E.A. for career growth and success

Success in today’s professional organisation is no longer solely determined by academic qualifications, technical expertise or years of experience. While these attributes do matter, organisations increasingly value individuals who demonstrate the right mindset and behavioural qualities. The ability

PM interacts with CEOs, founders of space startups

Prime minister Narendra Modi interacted with CEOs and Founders of 20 Space Startups at Seva Teerth on Friday.   CEOs of leading companies in the space sector working in diverse fields ranging from building rockets and reusable semi-cryogenic launch vehicles, avionics, satelli

From one cow to a dairy business

In 2012, Anita Dash wasn`t dreaming of building a dairy brand. She wasn`t studying business models or planning market expansion. Like countless mothers across India, her focus was on something much simpler: giving her children a better future.   At the time, her most valuable

Ethanol blending: The two sides of a story

India`s crude oil consumption is estimated to be around 88.5% imported from abroad. This one single figure is also responsible for why ethanol has become both an economic strategy and fuel policy at the same time. In an economy like India, which depends so heavily on foreign oil, any increase in internat

Food inflation: Not a macroeconomic statistic but a developmental indicator

India`s retail inflation shows a reassuring picture at first glance. According to the latest data, Consumer Price Index (CPI) inflation edged up to 4.38% in June 2026 from 3.93% in May 2026, but continued to remain within the Reserve Bank of India`s (RBI) target band of 4% (+/- 2%). However, beneath this

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter