U.N. Says Mobile Phones Can Help Alleviate Poverty

by Amar Toor on October 15, 2010 at 10:37 AM

The plight of poor countries is an issue that has always puzzled economists and policymakers, and one that has spurred a centuries-old debate. Some argue that the road to economic development begins with a solid public health system, others believe it begins at public education, and a handful of high-profile theoreticians claim that throwing enough money at a country will always be enough to "shock" its citizens out of poverty. According to a new report from the U.N., though, emancipating the world's poorest populations from the quicksands of poverty may be as simple as buying a cell phone.

The U.N. Conference on Trade and Development (UNCTAD) recently published its annual Investment Economy Report, which gives an overview of global trends related to information and communication technologies. This year, UNCTAD devoted special attention to the impact that mobile technology can have on alleviating poverty and improving livelihoods in the developing world. And, according to the report, that impact could be more significant than you'd imagine.

The immediate benefits of greater mobile penetration, at first glance, are self-evident. Cell phones, by definition, facilitate instant communication among large groups of people, businesses or organizations, thereby offering an immediate boost to any fledgling industry's infrastructure. Sophisticated mobile technology, moreover, offers users entirely new ways to access information and educate themselves.

Yet mobile phones also provide low-income countries with new, and potentially productive business opportunities. Many uneducated or unskilled workers, for example, can find work selling SIM cards or handsets on the streets, or could start their own small businesses around the mobile economy. In recent years, many microcredit organizations have even begun extending lines of mobile credit to impoverished cell phone users without bank accounts.

According to UNCTAD, 25 out of every 100 people in the Least Developed Countries now have a mobile subscription, up from just 2 per 100 a few years ago. In developing countries, meanwhile, 58 out of 100 now have access. Greater mobile penetration, of course, is probably not the elusive "silver bullet" that economists have pursued for years. And governments still must ensure that cell phones remain affordable, and that national cellular networks remain reliable. But, as the U.N. demonstrates, more widespread mobile technology can certainly get a mired economy moving in the right direction -- from the bottom up.

Tags: cellphones, developingworld, economics, microcredit, mobile, MobilePhone, network, poor, poverty, top, unctad, UnitedNations

source: Reuters

Comments

Dale HornOct 16th 2010 8:28PM

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What an inane article...... and what a stupid premis.

He said "According to UNCTAD, 25 out of every 100 people in the Least Developed Countries now have a mobile subscription, up from just 2 per 100 a few years ago. In developing countries, meanwhile, 58 out of 100 now have access."

So... why are they still poor and underdeveloped? Selling Sim cards on the street?

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usthatswho1Oct 16th 2010 9:49PM

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@(Unverified)

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Pat JusticeOct 16th 2010 8:44PM

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we can't all even get equitable cell phone service in the US, an having a good plan keeps us in poverty. To be able to get to talk with my grand children and children, sends current pics, message daily, read bedtime storieds, etc. I can only resort to this. I want them on my lape, but this is second best.

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rayOct 16th 2010 9:04PM

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I'm not surprised that the UN would be in cahoots with cell phone companies...liberal and glitzy with little substance. Prolly the most ridiculous thing the UN has said in years.

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WendyOct 16th 2010 10:11PM

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In recent years, many microcredit organizations have even begun extending lines of mobile credit to impoverished cell phone users without bank accounts.

Oh, right, just what impoverished cell phone users need: credit! How oxymoronic can that statement be?

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frankerinOct 16th 2010 10:12PM

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The UN ! These cultural and social theorists are the cousins of our ACORN Democrat Liberals. They see the world through rose colored glasses, actually blood mist from the warm and cozy poor people of those well known lands ( pick one) who are killing their neighbors. An Egyptian business man brought wireless phones at cost of billions and made billions more into IRAQ which were grabbed up by Muqtada and his shiit army, used to spy on the US and used to detonate thousands of IEDs. The Nigerians sell sim cards and phones all over that land with the obvious results being as here - constant chattering and trivia. The UN organization in this case as in the others is seeking attention, more money and influence with those governments who will use this paper to cover their less attractive goals, including ways of controling incountry communication and excountry communication including all internet access and the newer smart phones and social media methods. To force closure of phone and other systems, while dangerous and risky for their economies, recent circumstances foretell the likelihood that some nations (guess which ones) may need to as a last resort short of revolution and defeat.

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keysncoastOct 16th 2010 10:15PM

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This is absurd. I go to Uganda several times a year. At least 60% of the people there have cell phones because you can get a sim card for 3000 shillings (about $1.50) and used phones very cheap, and it's incredibly cheap to text. Plus the cell signals are actually very good. Where there's no power (most places) they have kiosks set up where you pay a nominal amount to charge your phone. The cell phones haven't made any difference in the poverty at all - this author (and the UN idiots who are suggesting this) have obviously not actually BEEN to poverty stricken nations.

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RichardOct 16th 2010 10:16PM

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Figures, more bogus "studies" from the UN. "...governments still must ensure that cell phones remain affordable..." Sure that'll work. My money's on the good old un-adulterated FREE MARKET SYSTEM!!!

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mycatsmomOct 16th 2010 11:27PM

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Throwing money at everyone in a poor country will just result in the recipients blowing it, just like they do in the U.S.
And buying them cell phones, certainly is not going to work. They'll probably just barter them for drugs.

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