Information Lives of the Poor: Fighting Poverty with Technology

"Information and communication have always opened opportunities for the poor to earn income, reduce isolation, and respond resiliently to emergencies. With mobile phone use exploding across the developing world, even marginalized communities are now benefiting from modern communication tools."

Drawing on household surveys undertaken by research networks active in 38 developing countries, this IDRC in_focus book is designed to help fill knowledge gaps about how the economically poor use information and communication technologies (ICTs). Questions driving this endeavour include: What insights can research provide to promote affordable access to ICTs so that communities across the developing world can take advantage of the opportunities they offer? How have they benefited from mobile devices, computers, and the internet?

The first section of the book explores some of the insights that research can provide to help promote affordable access to ICTs. It also introduces a network of developing country researchers who are working to ensure that all communities benefit from the opportunities offered by modern communication tools and information networks. The regional networks that conducted the surveys include:

1. Research ICT Africa (RIA) - RIA undertook a series of demand-side surveys of ICT access and use in an effort to better understand how ICT services are being used in Africa. In 2004, surveys were carried out in 10 countries, involving 12,000 households. In 2007-2008, 23,000 households in 17 countries were canvassed (including fleshing out details through focus group studies in 5 countries that specifically addressed gender issues). In 2011-2012, RIA undertook a third survey of about 14,000 households in 11 African countries. The surveys were conducted in person. To further investigate the links between ICT access and poverty alleviation, IDRC supported Poverty and ICTs in Urban and Rural Eastern Africa (PICTURE Africa) to conduct qualitative and quantitative data gathering in Kenya, Rwanda, Tanzania, and Uganda in 2007 and 2010.
2. Learning Initiatives on Reforms for Network Economies Asia (LIRNEasia) - Four surveys between 2005 and 2011 tracked individuals and households of those whose earnings put them in the bottom of the economic pyramid in South and Southeast Asia. The surveys have focused on people who made or received a phone call within the previous 3 months. Qualitative studies have also been conducted.
3. Diálogo Regional sobre la Sociedad de la Información (DIRSI) - As part of a project called Mobile Opportunities, DIRSI interviewed more than 7,000 people from economically poor neighbourhoods about their use and expenditures related to ICTs, with a particular focus on mobile telephony. The interviews were conducted in Argentina, Brazil, Colombia, Jamaica, Mexico, Peru, and Trinidad and Tobago. Mobile Opportunities was followed by a second project that examined specific development opportunities associated with the widespread adoption of mobile telephony.

The next section of the report synthesises findings from this research conducted in Africa, Asia, and Latin America. A few examples include:

• The results in LAC and Asia suggest that mobile phone use by the economically poor provides economic impact through social factors such as strengthened networks and improved coordination of informal job markets. In economically poor settings, social relationships are intrinsically linked to economic issues and are difficult to separate. For example, jobs or loans are often from family and friends.
• Across all 3 regions, the economically poor view mobile phones as a necessity rather than a luxury - that said, the price of mobile phones and services was a major issue limiting access and use. DIRSI research found that affordability helped to predict whether a country has high mobile phone penetration. Business models failed to address the way economically poor people use the phones; for example, most tend to opt for pre-paid plans to better control spending, yet these plans tend to cost more. High ICT-related expenditures in low-income households resulted in either low use or financial burdens. "These findings highlighted the need to rethink policy and regulation to reflect the reality of use so that affordability could be addressed."
• The PICTURE-Africa study shed light on some of the positive and negative aspects of ICTs. Data showed that, during periods of economic recession, enhanced use of ICTs was a key factor in improved incomes. Development outcomes included social improvements in communication with family and friends, as well as improved safety and cost savings through mobile banking and reduced travel. Negative outcomes included: mobile phones being used for crime, job losses for those unskilled in ICTs, and high maintenance costs diverting resources from other essential household expenses.

The penultimate section of the report is designed to provide lessons that highlight how government, civil society, and the private sector can play a role in ensuring greater social inclusion in the benefits of ICT access. Discussion is aligned by the following thematic areas:

• ICTs play a positive role in poverty alleviation.
• A case can be made for breaking up monopolies amongst telecommunications operators.
• Issuing new licences to telecommunications can foster healthy competition.
• Telecommunications operators should be encouraged and enabled to release information on ICT use so that researchers trying to understand ICT use at the bottom of the socio-economic pyramid can do their work.
• Governments can play many roles in increasing ICT access - for instance, by investing in technology through their departments of education. These departments "can play a vital role in training people in basic computer literacy and the skills needed to fulfill job requirements."
• In the case of the internet, literacy and the ability to navigate complex interfaces are required.
• "Governments putting together ICT plans must think beyond just providing the technology. They have to encourage and enable people to build popular and useful content."
• ICT "solutions must be adapted to local conditions if they are to succeed."

The final section focuses on "the future". It notes that the "open movement" offers promise, such as is demonstrated by initiatives that strive to increase civil democracy on the internet and facilitate opportunities for learning, scientific collaboration, and free enterprise. Crowdsourcing is also discussed, with examples such as the platform Ushahidi, which illustrates "how open calls can elicit a response to humanitarian crises, corruption, or electoral fraud" through text message, email, or the internet - turning data into a visual image (e.g., a timeline or map). There are also threats in an increasingly networked world, described here as related to the categories of: new forms of exclusion; creative destruction, innovation, and intellectual property; the rise of cyber warfare; and threats to privacy.

In conclusion, IDRC announces that it will continue to support research to address questions such as:

• Do open educational resources help improve the quality of learning as well as access to education?
• How are entrepreneurs in developing regions making use of open business models?
• How will legislators balance opportunities for increased security and business ventures with the protection of privacy?

Click here for the 107-page report in PDF format.

More research results and analysis can be found on the companion website.

The following video emerges from the initiative described above.