From the latest issue of The Economist.... -ac


The real digital divide

IT WAS an idea born in those far-off days of the internet bubble: the worry that as people in the rich world embraced new computing and communications technologies, people in the poor world would be left stranded on the wrong side of a “digital divide”. Five years after the technology bubble burst, many ideas from the time—that “eyeballs” matter more than profits or that internet traffic was doubling every 100 days—have been sensibly shelved. But the idea of the digital divide persists. On March 14th, after years of debate, the United Nations will launch a “Digital Solidarity Fund” to finance projects that address “the uneven distribution and use of new information and communication technologies” and “enable excluded people and countries to enter the new era of the information society”. Yet the debate over the digital divide is founded on a myth—that plugging poor countries into the internet will help them to become rich rapidly.

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Plenty of evidence suggests that the mobile phone is the technology with the greatest impact on development. A new paper finds that mobile phones raise long-term growth rates, that their impact is twice as big in developing nations as in developed ones, and that an extra ten phones per 100 people in a typical developing country increases GDP growth by 0.6 percentage points.

And when it comes to mobile phones, there is no need for intervention or funding from the UN: even the world's poorest people are already rushing to embrace mobile phones, because their economic benefits are so apparent. Mobile phones do not rely on a permanent electricity supply and can be used by people who cannot read or write.
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http://www.economist.com/opinion/displayStory.cfm?story_id=3742817

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Andy Carvin
Program Director
EDC Center for Media & Community
acarvin @ edc . org
http://www.digitaldivide.net
http://www.tsunami-info.org
Blog: http://www.andycarvin.com
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