The Digital Provide: Mobile Phones and Economic Well-being

When I think about how access to technology can help to improve people's lives, computers and the internet are the first kinds of technology that come to mind. But this week I came across several intriguing projects that demonstrate that mobile phones may play a more important role than computers in improving economic well-being in developing countries.

"Digital Provide", a case study published in a recent edition of The Quarterly Journal of Economics, reveals the economic benefits achieved when fisherman in India use mobile phones to keep abreast of daily market demand for fish in their communities. The study confirms that improvements in information impact market performance and welfare.

In this case, the use of mobile phones pretty much eliminated price differences among fish offered by different fishermen, reduced waste, and increased fishermen’s profits and consumer welfare. The key is that with information, the fisherman were in touch with buyers, and therefore no longer had a situation of excess supply they had to toss back into the water. The fishermen were able to sell their entire catch. Consumers also had access to supply, and did not have to go home empty-handed. For more information on how access to necessary information translates into efficient markets, please visit The Quarterly Journal of Economics.

Another application of mobile technology that helps people in developing countries to improve their economic well-being is evidenced by a fantastic social venture in Africa called "Mobile4Good". In this example, mobile phones are used in Kenya to send employment, health, and community content via SMS (short message service). Through this service, disadvantaged people can learn about job opportunities. The mobile service empowers people and helps to bridge the "digital divide" through "digital provide".

Since mobile phones are less expensive and more accessible to people in developing countries than computers, information technology through mobile devices is expected to become the model for development in places like Africa, Latin America, Southeast Asia, and other developing regions.

For more info, please visit Mobile4Good.