Mobile phones will not save the poorest of the poor



A recent post on impact of mobile phones on the poorest of the poor refers to multiple studies on information and communication technologies for development (ICT4D), linking increased mobile phone adoption with positive trends in economic and human development indicators.
Zimmerman and Meinrath (2012) showcase in their article new mobile phone-based money services like M-PESA to inform about an often ignored downside effect, as these mobile money services do not effectively reach the poorest of the poor. Beside infrastructure coverage they pinpoint high transaction fees as prohibitive to those living below the poverty line, stating “fee-based business models are geared toward maximizing revenue, which translates to a stunning level of resource extraction from poor communities.”

ICT4D and digital divide – an educational challenge

Although the technologies to dramatically lower the cost of connectivity already exist, it continues to be important to insist on policy makers and regulators pursuing action, in order to deploy innovative solutions and promote meaningful competition. Taking the case of a developing country like Mozambique, a third mobile operator alone will not necessarily result in low-cost mobile connectivity, nor reduce the risk of further digital divide.
Little is happening to address the educational dimension, putting challenges and opportunities new technologies bring along in context with local socioeconomic and socio-cultural realities. How to link development policies and strategies of “growth point”, “green revolution” and “community funds” with formal and informal education realities and needs. The readiness and useage of new technologies is not alone a question of infrastructure, nor one of transaction costs.

The poor and poorest of the poor face in their daily struggle even higher transaction and opportunity costs, depending on petty-purchases on a daily basis, mobility needs, and monetary services. In addition, they are not informed, lacking knowledge and skills. In the end it is an educational challenge?

According to a recent study, economically and academically disadvantaged young people in Mozambique show a positive technology identity, augmenting a keen interest in engagement with ICT (Zeininger, 2011). They are confident, act strategically, and make sacrifices in order to achieve their aims of becoming digital literate, hoping that it will enable them to be better positioned to gain future employment and therefore achieve a positive change in their lives. Such findings encourage a more positive view of the urbanised African youth as source of energy and talent.
Further research and evidence based on people’s real-life ICT experiences is needed to better understand the rural dimension of new technologies and poverty reduction, enabling examination of both the macro and micro elements. 

 Christian Zeininger