The Economist Magazine did a cover story on the global digital divide, and I
found their article (see below) interesting.

I think their article has a lot of good points that to think about in the
global CTC movement, but even more important it has some points that we need
to respond to.  

The main points I take from their article are:
1. Cell phones may be more important than computers in addressing the global
digital divide.  
My Comments: I think this is something we really need to think about, and it
might be true.  I do think that they miss the point that there are a lot of
developing countries where computer related technology is very
helpful--especially in countries where there are significant office jobs
using computers as well as technology jobs.  

2. Addressing the digital divide is not as helpful with people who do not
have basic needs met like food, shelter and basic literacy.  
My Comments: I think that this point is extremely important, and we need to
be careful to listen to the needs of the community and respond to that
rather than saying that computers are the solution.  

3. The market with take care of everything.
My comments: I also think that their standard attitude (which is in all
their opinions) is that the market with take care of everything is very
na�ve.  Most of their case is based on the assumption that cell phones can
address the digital divide by themselves and are equivalent to computers.
This misses the fact that cell phones can address parts of the digital
divide (like access to information), but not other aspects of the digital
divide (like computer skills needed for jobs).  

Anyway, I would love to hear other's thoughts on this article.  

Andrew Sears
Executive Director
TechMission: Association of Christian Community Computer Centers
www.techmission.org
[EMAIL PROTECTED]     (617) 359-0394 (cell)��� 
(617) 282-9798 x4��(office)��       (617) 825-0313 (fax)
----
  
- AN ARTICLE FOR YOU, FROM ECONOMIST.COM - 

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THE REAL DIGITAL DIVIDE
Mar 10th 2005  

Encouraging the spread of mobile phones is the most sensible and effective
response to the 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.

THE LURE OF MAGIC
This is highly unlikely, because the digital divide is not a problem in
itself, but a symptom of deeper, more important divides: of income,
development and literacy. Fewer people in poor countries than in rich ones
own computers and have access to the internet simply because they are too
poor, are illiterate, or have other more pressing concerns, such as food,
health care and security. So even if it were possible to wave a magic wand
and cause a computer to appear in every household on earth, it would not
achieve very much: a computer is not useful if you have no food or
electricity and cannot read.

Yet such wand-waving--through the construction of specific local
infrastructure projects such as rural telecentres--is just the sort of thing
for which the UN's new fund is intended. How the fund will be financed and
managed will be discussed at a meeting in September. One popular proposal is
that technology firms operating in poor countries be encouraged to donate 1%
of their profits to the fund, in return for which they will be able to
display a "Digital Solidarity" logo. (Anyone worried about corrupt officials
creaming off money will be heartened to hear that a system of inspections
has been proposed.)

This sort of thing is the wrong way to go about addressing the inequality in
access to digital technologies: it is treating the symptoms, rather than the
underlying causes. The benefits of building rural computing centres, for
example, are unclear (see the article[1] in our TECHNOLOGY QUARTERLY in this
issue). Rather than trying to close the divide for the sake of it, the more
sensible goal is to determine how best to use technology to promote
bottom-up development. And the answer to that question turns out to be
remarkably clear: by promoting the spread not of PCs and the internet, but
of mobile phones. 

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
(see article[2]).

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. 

Phones are widely shared and rented out by the call, for example by the
"telephone ladies" found in Bangladeshi villages. Farmers and fishermen use
mobile phones to call several markets and work out where they can get the
best price for their produce. Small businesses use them to shop around for
supplies. Mobile phones are used to make cashless payments in Zambia and
several other African countries. Even though the number of phones per 100
people in poor countries is much lower than in the developed world, they can
have a dramatic impact: reducing transaction costs, broadening trade
networks and reducing the need to travel, which is of particular value for
people looking for work. Little wonder that people in poor countries spend a
larger proportion of their income on telecommunications than those in rich
ones.

The digital divide that really matters, then, is between those with access
to a mobile network and those without. The good news is that the gap is
closing fast. The UN has set a goal of 50% access by 2015, but a new report
from the World Bank notes that 77% of the world's population already lives
within range of a mobile network.

And yet more can be done to promote the diffusion of mobile phones.
Instead of messing around with telecentres and infrastructure projects of
dubious merit, the best thing governments in the developing world can do is
to liberalise their telecoms markets, doing away with lumbering state
monopolies and encouraging competition. History shows that the earlier
competition is introduced, the faster mobile phones start to spread.
Consider the Democratic Republic of Congo and Ethiopia, for example. Both
have average annual incomes of a mere $100 per person, but the number of
phones per 100 people is two in the former (where there are six mobile
networks), and 0.13 in the latter (where there is only one).

LET A THOUSAND NETWORKS BLOOM
According to the World Bank, the private sector invested $230 billion in
telecommunications infrastructure in the developing world between
1993 and 2003--and countries with well-regulated competitive markets have
seen the greatest investment. Several firms, such as Orascom Telecom (see
article[3]) and Vodacom, specialise in providing mobile access in developing
countries. Handset-makers, meanwhile, are racing to develop cheap handsets
for new markets in the developing world.
Rather than trying to close the digital divide through top-down IT
infrastructure projects, governments in the developing world should open
their telecoms markets. Then firms and customers, on their own and even in
the poorest countries, will close the divide themselves.

-----
[1] http://www.economist.com/displayStory.cfm?story_ID=3714058
[2] http://www.economist.com/displayStory.cfm?story_ID=3739025
[3] http://www.economist.com/displayStory.cfm?story_ID=3750606
 

See this article with graphics and related items at
http://www.economist.com/printedition/displaystory.cfm?Story_ID=3742817

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