The Economist on Friday had another timely
article about how the power of cellphones to improve the economic situation for people in developing countries:
Imagine a magical device that could boost entrepreneurship and economic activity, provide an alternative to bad roads and unreliable postal services, widen farmers' access to markets, and allow swift and secure transfers of money. Now stop imagining: the device in question is the mobile phone.
As stated in the March 10 article, the main issue with spreading the ownership of cellphones in developing countries is the cost - the Economist cites the example of a $50 cellphone being 14% of the
annual income of someone earning $1 day.
Thankfully, it seems the cellphone manufacturers are listening, if only because this is remaining place that they can hope to achieve growth in sales volume. According to an article in
Wired today, a trade group of the manufacturers have set up an
Emerging Market Handset Programme which is intended to help create a viable business to serve people who may only pay $5 a month.
But one other obstacle remains - the desire of the governments in these countries to impose import tariffs and other taxes on mobile phones, often with the affect of doubling the cost of the phone.
In a week where we have seen the G8 discuss increasing aid to Africa, this seems too good an opportunity to miss for the west to promote something that requires no aid or charity, but instead can promote all the things we claim we desire for Africa - boosting the economic conditions, increasing trade and narrowing the gap between rich and poor nations.
So we should encourage competition and low government interference in the cellphone markets, and in doing so, help these countries bridge the economic and digital divide we have, for too long, ignored.
