Photo: chrisharrison.net

Many international development projects promote national Internet infrastructure with the assumption that increased connectivity will lead to economic growth which will in turn increase the quality of life for citizens in the recipient nations.  However, what is the measured impact of Internet penetration on economic growth?

  • The World Bank
    • 10% increase in Internet penetration leads to a 1% increase in GDP
  • ITU Broadband Commission
    • 10% increase in broadband penetration in China contributes to a 2.5% growth in GDP
    • 10% increase in broadband penetration in low and middle-income countries contributes to a 1.4% increase in economic growth
    • Access to broadband in Brazil has added approximately 1.4% to employment
    • Broadband will create 2 million jobs by 2015 in Europe
  • Kenyan Economic Update
    • Person to person mobile money transfers equated to about 20% of national GDP, with about two-thirds of adults engaging in transfers
    • ICTs are responsible for 0.9% of the 3.7% annual economic growth in Kenya over the past ten years.  In other words, ICTs accounted for one-fourth of the GDP growth in Kenya the past decade.

In addition to these statistics, the Broadband Commission released the following table on the impact of broadband on employment:

Table: Broadband Commission – A Platform for Progress

Despite these promising statistics, there are critics of broadband’s correlation with economic growth.  Charles Kenny from the Center for Global Development recently attacked the World Bank’s claim that 10% increase in Internet penetration leads to a 1% increase in national GDP.  Kenny argued that the study was not peer-reviewed or ultimately published (both of these claims are correct).

Overall, however, studies on national economies and Internet penetration seem to demonstrate a positive correlation between the two.  Hopefully, the ITU’s Broadband Commission will be able to produce more definitive studies in the future, though given their political stance in favor of broadband adoption, it may be more difficult for the ITU to be objective.

 

 

 

 

 

 

 

 

 

 

The UK Guardian’s Killian Fox recently described the rapid rate at which cellphones became ubiquitous (and are used) in Africa as a “mobile economic revolution”.

Some people easily dismissed this assertion as another hyperbolic pronouncement, but there’s truth to it. The expansion of mobile telephony services and access over the last decade did more than merely open up avenues for efficient social inter-action among Africans. It reinvigorated, structured and even cultivated a more efficient culture of enterprise, across banking, agriculture, healthcare, education and governance, in some countries.

But, if this “mobile economic revolution” is to be fully realized, much more ought to be done. Deeper integration of technology into commerce, and greater expansion of telephony access and service provision are two things to consider, among others like financing and marketing that I have looked at in other blogs. The fact is, a half of all Africans still do not have access to a cellphone, despite the rapid expansion observed. This means the enormous economic benefits mobile phones bring to less developed parts of the world is still untapped in much of Africa. According to the London Business School, “for every additional 10 mobile phones per 100 people in a developing country, GDP rises by 0.5%”. So, the expansion in GDP experienced on the continent in the last decade, due to telephony expansion, is, at the very least, half of what it could be.

Furthermore, the depth to which the instrument (cellphone) has been leveraged for commerce is still limited, which means the economic potential is much greater than what obtains. The success of Safaricom’s M-Pesa in bringing banking services to the previously unbanked, for instance, is still limited to a minority of Africans. Further to that, global mobile money transactions is slated to exceed a trillion dollars by 2015. African economies are likely to benefit from cheaper transfer of remittances, and reduced transaction costs across borders, but those benefits will be much greater if more people have access to mobiles. Therefore, boosting the number of people on the continent with access to mobile banking must be a priority for policymakers, to safeguard the “mobile economic revolution”.

The deepening of the “mobile economic revolution” should be contextual. The provision of mobile-enabled financial services such as micro-credit is great, but it doesn’t always function in the poor’s economic interest. The use of mobile phones to offer traditional options, such as layaways, to help the poor improve their entrepreneurial endeavors is negligible. KickStart, a nonprofit that sells human-powered irrigation systems to entrepreneurial farmers, seems to be an exceptional case. The organization introduced an SMS powered layaway program in Kenya that allows buyers to set aside tiny increments via M-Pesa.

KickStart‘s approach to aiding farmers to finance their entrepreneurial endeavors seems much more sustainable, compared to existing micro-finance options, although the time factor is a drawback. However, the main point here is that, the “mobile economic revolution” must never leave the poor behind. The ways in which the individual’s long term economic livelihood is affected is key, if the larger objective remains that of sustainable development.

 

Linda Raftree speaking at GBI Brown Bag Lunch

Photo Credit: Laurie Moy

Last Friday, GBI sponsored a Brown Bag lunch at USAID featuring Linda Raftree (@meowtree), Senior ICT4D Advisor at Plan International USA, to discuss her experiences on her digital participatory mapping project in Cameroon, lending insight on how the team got it off the ground.

Utilizing the mapping platform Open Street Map and crowd-sourcing tool Ushahidi, Raftree and Plan International’s Youth Empowerment through Technology, Arts and Media (YETAM) project, aims to reduce violence against children and increase youth participatory governance.

During her discussion last week, she referenced how digital community maps have replaced the need for paper-based diagrams since they can be shared or updated, to put rural areas like Ndop, Pitoa and Okola, “on the map”.

The more pragmatic purpose of being, “on the map,” Raftree alluded, is to see where infrastructure and services are being provided by local councils. Maps illustrate the uneven distribution of funding and services, and show what areas need more inclusion, holding governments to their development responsibilities.

Linda Raftree speaks at GBI Brown Bag Lunch

Photo credit: Laurie Moy

To ensure local participation and encourage youth empowerment for the three principal components of her project—maps, video, and art—Raftree advised some of these following elements:

  • Ask community leaders, and youth the information they want to put on the map. Raftree found that the youth wanted to know where all of the chieftain of the surrounding villages lived since traditionally greeting them first when arriving to a village is a respectful custom. What an international organization, or its stakeholders, want does necessarily line up with what the community needs or finds relevant.
  • Hire local ICT experts.  She had found a local GIS expert named Ernest on Twitter and through Limbe Labs (now Activspaces). Without him, Raftree admitted, the project would not have been nearly as successful, or predicted to be as sustainable. Local ICT experts know the language, law of the land, and projects can be easily supported by them teaching others in the community how to maintain the mapping systems long after outside organizations leave.
  • Engage decision makers.  There is usually a hierarchy within communities, so involving big players is imperative for successful deployment. Both to evade bribery—the team had youth carry around a letter signed by the local mayor stating it was okay for them to collect information—and to make leaders accountable for gaps in funding and services.
  • Record it. The Cameroonian youth went around with video camcorders, and recorded interviews they had with leaders of certain institutions, and members of the community. For example, they went around to schools and interviewed the headmasters about what resources they had at the school, and with women on why they did not register their newborn children. The benefit of this is two-fold. They raised the headmaster’s awareness on for the importance of keeping data on key indicators of the school (numbers of students, benches, attendance, teachers), Raftree stated, while making politicians accountable to the imbalanced circulation of disbursement.
  • Mix technology with non-technology. The art portion of the project, where the youth draw pictures of social issues existing within the community—such as alcoholism, drug use, and domestic violence—raised problems that were uncomfortable to record on film or talk about. Despite a lack of sound or words, art is still a powerful visual empowering the community to engage in a dialogue about taboo subjects.

The end result of all these steps in the 3 districts in Cameroon? Leaders acknowledged giving funds to central areas, and began to allow youth to take part budget meetings. The youth were given a voice in a place where they were never even part of the discussion.

Linda Raftree speaking to attendees after the event

Photo credit: Laurie Moy

Although Raftree covered a lot of problem areas that could have arisen in a community mapping project, she recognized that issues such as connectivity and ICT training, are still barriers to entry that need to be addressed for a project’s overall sustainability.

How about the next steps for the Plan International’s YETAM project in Cameroon?

Having youth continue to follow-up with database collection, making community councils accountable for their findings, and integrating information into Plan’s overall decision making.

 

For more information regarding upcoming events, subscribe to our newsletter, The Spectrum.

The Tandaa grant logo (in green), Kenya open data written below (in black)

Kenya openData

Nearly 150 company and individual submissions made the shortlist for Kenya’s Tandaa Digital Content Grants. The Tandaa Digital Content Grant competition, a campaign to unearth and finance web and mobile-phone apps developers, was unveiled last year by the Ministry of Information and Communication, through the Kenya ICT Board.

At its inception 15 grantees benefited—companies, individuals and groups of varying sizes. But this year the Kenyan government will double direct funding through grants.

The renewal of this successful initiative will see 30 awards being doled out to shortlisted candidates in varied categories. The Ministry of Information and Communication says the highly attractive Tandaa Digital Content Grant is worth up to US$50, 000 for companies, US$10, 000 for individuals and teams, plus a matching grant of US$150, 000 for established companies.

The grant is further evidence of Kenya’s bold and thoughtful ICT policy framework, which is increasingly backed by solid initiatives. It will further stimulate ICT innovation and could spur greater economic growth. ICT already account for five cents in every dollar of Kenya’s annual income. The policy is solid to the extent that it tackles the key hindrance to the expansion of Kenya’s ICT sector: financing. Companies, particularly start-ups, that specialize in web and mobile solutions face major hurdles in their quest to access funding. The risky nature of their ventures, getting innovation to market successfully, also heightens the perception of risk in financial circles.

However, the challenge of financing mobile-innovation must be tackled in a more meaningful way: a sustainable solution, not simply grants. A mixture of subsidized loans, and targeted finance for micro and medium size technology firms is necessary for a potent long-term strategy to find a toehold. Grants have a place in the overall strategy, but they are not central to the long-term financing challenge.

For further information, please go here.

 

Magnus Mchunguzi, MD Ericsson SA

Ericsson is currently conducting Long Term Evolution (LTE) trials with a number of African mobile operators including Econet, Movicel and Unitel.

This is according Magnus Mchunguzi, Ericsson South Africa Managing Director.
“It is interesting that for the first time in Africa a lot of operators are asking for LTE, perhaps not on a large scale but as a trial offer. A lot of companies are trying to offer LTE on a network shared level,” says Mchunguzi.

“There is definitely a lot of movement in the LTE environment, he adds.”

Ease of deployment

Ericsson’s base stations have reduced the cost of deploying new broadband technology.

“One can get 2G, 3G, HSPA, and LTE on one base station. In the past if you wanted to offer new technology, you had to remove the hardware and install a new one. The cost of deploying new technology was very high. Today this will be driven purely by software updates. The platform remains the same and you simply update the software,” says Mchunguzi.

Ericcson is fully LTE ready according to Magnus: “Our new base stations, known as multi-standard radios, that are already offering 3G and HSPA have been deployed, we just need to update the software and they will be LTE ready.”

MTN pilot implementation

In early July 2011, MTN South Africa in partnership with Ericsson launched its LTE network in the Gauteng area of South Africa.
MTN SA’s Chief Technology Officer Kanagaratnam Lambotharan said the launch would give selected MTN customers a glimpse of the future.

“Being the first operator in Africa to launch an LTE pilot network of this scale is a reaffirmation of MTN’s vision to be the leading telecoms operator in emerging markets and emphasises our technology and innovation leadership in mobile communications.

On MTN’s investment in technology he says: “Full deployment of LTE in future will allow MTN to maximize its infrastructure investment to provide its subscribers with a quality experience that is richer, faster and with significantly more capacity than that provided currently.”

Bontle Moeng

New research predicts that the smart card market is to grow rapidly (image: stock.xchng)

New research predicts that the smart card market is to grow rapidly in coming years. The market research firm Frost and Sullivan released new research predicting that the smart card market in the Middle East and North Africa is to grow to $328.5 billion by 2014, according to the Middle Eastern News business service Bawaba.

The telecommunications industry will account for the majority of growth, comprising 64.4 percent of all smart card sales.

Smart cards are small microprocessors that hold information related to their user.  Most people are familiar with smart cards’ application in mobile phones, where they are mostly used to hold contact information.

In the period from 2011-2013, the Middle East and North Africa will see fast growth in the smart card market, with a compound annual growth rate (CAGR) of 10.8 percent, it still lags behind the global market that is estimated by Frost and Sullivan to grow at a CAGR of 12 percent.

Smart cards are also used in cell phones, insurance cards, credit cards, and debit cards, but Frost and Sullivan attributed the growth to demands for digital security. Smart cards can be used in national identity cards.

Jahd Khalil

 

Linda Raftree speaking at GBI Brown Bag Lunch

Photo Credit: Laurie Moy

Last Friday, GBI sponsored a Brown Bag lunch at USAID featuring Linda Raftree (@meowtree), Senior ICT4D Advisor at Plan International USA, to discuss her experiences on her digital participatory mapping project in Cameroon, lending insight on how the team got it off the ground.

Utilizing the mapping platform Open Street Map and crowd-sourcing tool Ushahidi, Raftree and Plan International’s Youth Empowerment through Technology, Arts and Media (YETAM) project, aims to reduce violence against children and increase youth participatory governance.

During her discussion last week, she referenced how digital community maps have replaced the need for paper-based diagrams since they can be shared or updated, to put rural areas like Ndop, Pitoa and Okola, “on the map”.

The more pragmatic purpose of being, “on the map,” Raftree alluded, is to see where infrastructure and services are being provided by local councils. Maps illustrate the uneven distribution of funding and services, and show what areas need more inclusion, holding governments to their development responsibilities.

Linda Raftree speaks at GBI Brown Bag Lunch

Photo credit: Laurie Moy

To ensure local participation and encourage youth empowerment for the three principal components of her project—maps, video, and art—Raftree advised some of these following elements:

  • Ask community leaders, and youth the information they want to put on the map. Raftree found that the youth wanted to know where all of the chieftain of the surrounding villages lived since traditionally greeting them first when arriving to a village is a respectful custom. What an international organization, or its stakeholders, want does necessarily line up with what the community needs or finds relevant.
  • Hire local ICT experts.  She had found a local GIS expert named Ernest on Twitter and through Limbe Labs (now Activspaces). Without him, Raftree admitted, the project would not have been nearly as successful, or predicted to be as sustainable. Local ICT experts know the language, law of the land, and projects can be easily supported by them teaching others in the community how to maintain the mapping systems long after outside organizations leave.
  • Engage decision makers.  There is usually a hierarchy within communities, so involving big players is imperative for successful deployment. Both to evade bribery—the team had youth carry around a letter signed by the local mayor stating it was okay for them to collect information—and to make leaders accountable for gaps in funding and services.
  • Record it. The Cameroonian youth went around with video camcorders, and recorded interviews they had with leaders of certain institutions, and members of the community. For example, they went around to schools and interviewed the headmasters about what resources they had at the school, and with women on why they did not register their newborn children. The benefit of this is two-fold. They raised the headmaster’s awareness on for the importance of keeping data on key indicators of the school (numbers of students, benches, attendance, teachers), Raftree stated, while making politicians accountable to the imbalanced circulation of disbursement.
  • Mix technology with non-technology. The art portion of the project, where the youth draw pictures of social issues existing within the community—such as alcoholism, drug use, and domestic violence—raised problems that were uncomfortable to record on film or talk about. Despite a lack of sound or words, art is still a powerful visual empowering the community to engage in a dialogue about taboo subjects.

The end result of all these steps in the 3 districts in Cameroon? Leaders acknowledged giving funds to central areas, and began to allow youth to take part budget meetings. The youth were given a voice in a place where they were never even part of the discussion.

Linda Raftree speaking to attendees after the event

Photo credit: Laurie Moy

Although Raftree covered a lot of problem areas that could have arisen in a community mapping project, she recognized that issues such as connectivity and ICT training, are still barriers to entry that need to be addressed for a project’s overall sustainability.

How about the next steps for the Plan International’s YETAM project in Cameroon?

Having youth continue to follow-up with database collection, making community councils accountable for their findings, and integrating information into Plan’s overall decision making.

 

For more information regarding upcoming events, subscribe to our newsletter, The Spectrum.

Photo: Institute for Money, Technology, and Financial Inclusion

We all use money everyday.  Cash, checks, credit, debit… mobile?  Outside of the U.S. people are making payments on their mobile phones daily.  What you wouldn’t guess is how ingenious they are at inventing new ways of using money.  What do the innovative uses of money mean for banks, regulators, and nations?  Does mobile money restructure the role of money in society altogether?

Bill Maurer, from University of California-Irvine’s Institute for Money, Technology, and Financial Inclusion, spoke at a USAID sponsored Microlinks event yesterday, July 25, 2011.  I attended the event and was intrigued by Maurer’s anthropological approach to mobile money, a subject dominated by economists.  Maurer emphasized the cultural complexities of money in all its forms, and then spoke especially about mobile money.

To summarize, Maurer first explained that money is perceived differently in different cultures of the world.  In Nigeria, family members engage in money spraying, tossing money at brides during the wedding dance.  In East Asia, mothers send their children on long trips with money inside of small hand sown pockets, believing that the money will protect them, and that they can use it to get settled once they arrive.

Photo: Institute for Money, Technology, and Financial Inclusion

The various uses of mobile money are equally diverse.  For one, those who make mobile money transfers using SMS technology skip traditional banks altogether, as their telecommunication service providers act also as banks.  Second, what about people who own multiple mobile phones or SIM cards in order to maintain different accounts?  Some hide certain accounts from others; others separate the accounts for organization.  Third, there are some cross-border money transfers.  Often, if the service provider is the same, then the transfer may be made.  Fourth, there is a possibility of mobile money remittances, as Ericsson launched two weeks ago?  Still others trade their money from one currency to another to another, eventually “getting to the dollar,” and ensuring the value of their money.  All of these actions change relationships between banks, individuals, government regulators, and telecommunication service providers.

Photo: Institute for Money, Technology, and Financial Inclusion

In a way, the elimination of banks from money transfers makes it appear that transfers should be a “public good,” freely and widely available.  The policy implications for regulators, then, are immense.  Who can take a cut of transaction costs?  What rules should be in place about currency transfers?  How are regulatory agencies from different nations going to communicate with each other?  These questions, with a host of others, set the stage for mobile money’s impact on the global economy.

Though I was thoroughly engaged by Maurer’s presentation, I could not help but wonder what the policy implications were.  When Maurer responded to one attendee request for a summary of the lessons learned about mobile money, he originally responded, “I have shied away from the lessons learned because I am open as to what they may be.”  Thankfully, though, he followed up this response with three key regulatory innovations that he recommended for policymakers: proportionate due diligence, non-bank e-money issuance, and non-bank deposit taking.

USAID and other international organizations, then, should be careful in their rollout of mobile money projects.  Though over 80% of the world has access to a mobile phone, the impacts of mobile money programs are far-reaching—they affect the financial, political, and social sectors, either for the better or the worse.  If nothing else, the anthropological research by Maurer shows the complexities of mobile money.  Before a list of best practices and lessons learned can be compiled, policymakers should tread carefully, but they should still step forward.  As evidence and data is gathered through experiments, best practices can be ascertained.  Once best practices are identified, then USAID and other aid organizations should scale mobile-based development projects.

 

Photo Credit: chinaview.cn

A research group led by scientists in Brazil has developed software that tracks outbreaks of dengue fever using the social media outlet twitter. This software was created thanks to coordination between two Brazilian National Institutes of Science and Technology, led by Wagner Meira, a computer scientist at the Federal University of Minas Gerais.

The software is designed to detect the word “dengue” in tweets and information about the sender’s location. The software analyzes the sentence structure and wording to determine if tweets are appropriate for dengue surveillance. Tweets that are deemed spurious or unrelated to dengue fever are filtered out.

During the testing phase, the researchers examined 2,447 tweets about dengue fever sent through the social networking portal between January and May 2009. They found a strong correlation between personal experience tweets about dengue and official data on outbreaks from the Brazilian Ministry of Health.

The research team now plans to analyze 181,845 tweets sent between December 2010 and April 2011, but are waiting for the ministry’s 2011 data before they do so. They also plan to incorporate other key words, mostly symptoms of dengue fever, into their detection scheme to gather more tweets.

Photo Credit: Twitter

This is the first time social media has been used for dengue fever surveillance, but it is not the first time social media has been used for real-time epidemic surveillance. Twitter was used to follow the 2009 swine flu pandemic. Furthermore, it is the first attempt to gather information on people tweeting about their personal experience of a disease.

Google also introduced Google Dengue Trends last month, which records spikes in web searches for dengue fever. Therefore, using social media for surveillance is not a new practice, and nor is tracking dengue using technology. However, Meira’s method is an innovative and efficient way to track dengue fever.

Dengue fever, which can cause hemorrhagic deaths, plagues Brazil ever year. Moreover, every year it emerges in different locations than before. Most Brazilians know how to control and even eradicate the disease, but the majority of citizens don’t take any precautions against it.

On top of that, outbreak notifications take several weeks to process and analyze which impedes officials from assisting citizens. Using Twitter messages could mean a much faster response, says Meira. “It isn’t predicting the future but the present,” he says. “This means we aren’t weeks behind like we used to be.”

AnyJunk, an on-demand rubbish clearance firm in the UK, launched the first iPhone app for waste collection earlier this month. The solid waste management innovation allows users to record videos of their garbage and specify when they want it collected. “The app then automatically picks up their location through the iPhone’s GPS and send an email request to AnyJunk to quote for the clearance.”

Jason Mohr, founder of the cutting-edge waste disposal company, says “the big attraction of the app is it allows customers to get a much more precise quote without having to wait for a truck team to visit in person beforehand.”

The user-friendly app boasts a welcome screen with a button that once touched will enable the recording of a video of your garbage; users are then allowed to select convenient collection times. The more flexible the garbage collection request, the cheaper the service will be.

Despite its efficiency and flexible cost structure, which augurs well for its sustainability, this innovation’s potency, with respect to waste management, is limited to contexts where smart-phones are readily available and public services are high on the agenda.

Learn more about the ‘Junk Removal’ app.

 

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