A World Bank report has sought to analyze the impact of high speed Internet access on economic development in developing countries. The study found that ICT allows economies “to acquire and share ideas, expertise, services and technologies locally, regionally, and across the world.” ICT also contributes to integrating global economy.
Broadband accelerates knowledge transfer and technological diffusion and enhances the competitive advantages of fast-learning economies. Mobile phones based on wireless technology connect remote rural areas with the rest of the country. Their low costs make them affordable even for poorer sections of the community.
The increased connectivity enables not only sharing of information but also leads to increased economic activity. If people could conclude economic transactions with a phone call, instead of traveling long distances, economic activity becomes much easier and more frequent. It also becomes possible to deliver healthcare, education and other facilities to remote areas.
Rural business also benefits from the increased connectivity. Trading platforms such as Tradenet in Ghana enable rural farmers to sign up for SMS alerts for offers to buy or sell, connecting remote buyers and sellers. Information about up-to-date prices can also be obtained across all the markets covered.
Read the numerous other examples of how increased connectivity has benefited developing economies in the Information and Communication for Development (ICAD) report for 2009. The full report is available for purchase at World Bank Publications website.
Tags: economic development, information technology, rural economy, wireless communication
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