How Do Digital Technologies Affect Household Welfare in Developing Countries?
How Do Digital Technologies Affect Household Welfare in Developing Countries?

Author: Carlos Rodriguez-Castelan

Publisher:

Published: 2021

Total Pages: 34

ISBN-13:

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Developing countries are implementing policies expanding the adoption and productive use of digital technologies to advance economic development and inclusion. Yet, systematic analyses of the welfare and distributional effects of digital technologies on households and individuals-especially broadband mobile internet-remain limited. To fill this knowledge gap, this paper proposes a simple analytical framework to offer insights on how more equitable access to digital technologies affects household welfare, which can be organized into four areas: (1) determinants of adoption of digital technologies; (2) distributional effects of increasing competition in the information and communication technology industry; (3) welfare and poverty effects of coverage and access to digital technologies; and (4) local economic effects of access to digital technologies. To illustrate the relevance and replicability of this framework across developing countries, the analysis is carried out for Senegal, a country that has recently experienced a rapid expansion in digital infrastructure.

Digital Senegal for Inclusive Growth
Digital Senegal for Inclusive Growth

Author: Marcio Cruz

Publisher: World Bank Publications

Published: 2022-05-27

Total Pages: 151

ISBN-13: 1464816875

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Senegal, like all African countries, needs better and more jobs for its growing population. The main message of Digital Senegal for Inclusive Growth is that broader use of productivity-enhancing technologies by households and enterprises can generate such jobs, including for lower-skilled people. Adoption of better technologies can support both Senegal’s short-term objective of economic recovery and its vision of economic transformation with more inclusive growth. But this is not automatic. This book leverages a novel survey instrument that measures adoption of technologies at the firm level. Results from this survey show that there is a large average technological gap in Senegal relative to firms in Brazil, in the range of 36 and 30 percent for extensive (whether firms use it at all) and intensive (the most frequently applied) uses of better technologies such as for business administration. Except for a small number of firms, enterprises still mostly use manual, analog technologies to perform general and sector specific business functions. Micro-size informal enterprises lag even further. The benefits from technology adoption are significant. Digital technologies are an enabler of economy-wide productivity and jobs growth by catalyzing adoption of complementary technologies, including many not accessible without digital infrastructure. For households, mobile internet coverage is associated with 14 percent higher total consumption, as well as a 10 percent lower extreme poverty rate—and jobs with higher earnings. Firms with better technologies have higher levels of productivity, generate more jobs, and increase the share of lower-skilled workers on their payroll, on average: an increase in technological sophistication across general business functions that the firm uses most intensively, such as using standard software rather than writing by hand for business administration, is associated with a 14 percent higher jobs growth rate. For these and other inclusive growth benefits to be realized, Senegal should focus on ensuring availability of affordable digital infrastructure and implementing targeted incentives to promote use by firms of better technologies as well as policies to narrow deepening digital divides across enterprises and households.

World Development Report 2016
World Development Report 2016

Author: World Bank Group

Publisher: World Bank Publications

Published: 2016-01-14

Total Pages: 359

ISBN-13: 1464806721

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Digital technologies are spreading rapidly, but digital dividends--the broader benefits of faster growth, more jobs, and better services--are not. If more than 40 percent of adults in East Africa pay their utility bills using a mobile phone, why can’t others around the world do the same? If 8 million entrepreneurs in China--one third of them women--can use an e-commerce platform to export goods to 120 countries, why can’t entrepreneurs elsewhere achieve the same global reach? And if India can provide unique digital identification to 1 billion people in five years, and thereby reduce corruption by billions of dollars, why can’t other countries replicate its success? Indeed, what’s holding back countries from realizing the profound and transformational effects that digital technologies are supposed to deliver? Two main reasons. First, nearly 60 percent of the world’s population are still offline and can’t participate in the digital economy in any meaningful way. Second, and more important, the benefits of digital technologies can be offset by growing risks. Startups can disrupt incumbents, but not when vested interests and regulatory uncertainty obstruct competition and the entry of new firms. Employment opportunities may be greater, but not when the labor market is polarized. The internet can be a platform for universal empowerment, but not when it becomes a tool for state control and elite capture. The World Development Report 2016 shows that while the digital revolution has forged ahead, its 'analog complements'--the regulations that promote entry and competition, the skills that enable workers to access and then leverage the new economy, and the institutions that are accountable to citizens--have not kept pace. And when these analog complements to digital investments are absent, the development impact can be disappointing. What, then, should countries do? They should formulate digital development strategies that are much broader than current information and communication technology (ICT) strategies. They should create a policy and institutional environment for technology that fosters the greatest benefits. In short, they need to build a strong analog foundation to deliver digital dividends to everyone, everywhere.

Information Lives of the Poor
Information Lives of the Poor

Author: Laurent Elder

Publisher:

Published: 2013-11-25

Total Pages: 107

ISBN-13: 9781552505748

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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. This book explores the impacts of this unprecedented technological change. Drawing on unique household surveys undertaken by research networks active in 38 developing countries, it helps to fill knowledge gaps about how the poor use information and communication technologies (ICTs). How have they benefited from mobile devices, computers, and the Internet? 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? The core of this book synthesizes the findings from groundbreaking research conducted with IDRC support in Africa, Asia, and Latin America. This research catalyzed policy changes that helped improve access to ICTs by all levels of society. Information Lives of the Poor compiles the evidence across regions and brings together regional perspectives on this important topic. It concludes by presenting policy recommendations and some directions for future research. More research results and analysis can be found on the companion website."

Information Communication Technology and Poverty Alleviation
Information Communication Technology and Poverty Alleviation

Author: Jack J. Barry

Publisher: Routledge

Published: 2018-07-24

Total Pages: 235

ISBN-13: 0429996195

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Despite global economic disparities, recent years have seen rapid technological changes in developing countries, as it is now common to see people across all levels of society with smartphones in their hands and computers in their homes. However, does access to Information Communication Technologies (ICTs) actually improve the day-to-day lives of low-income citizens? This book argues that access to the internet can help alleviate poverty, improve development outcomes, and is now vital for realizing many human rights. This book posits that good governance is essential to the realization of inclusive pro-poor development goals, and puts forward policy recommendations that aim to mitigate the complex digital divide by employing governance as the primary actor. In making his argument, the author provides a quantitative analysis of developing countries, conjoined with a targeted in-depth study of Mexico. This mixed method approach provides an intriguing case for how improvements in the quality of governance impacts both ICT penetration, and poverty alleviation. Overall, the book challenges the neoliberal deterministic perspective that the open market will "solve" technology diffusion, and argues instead that good governance is the lynchpin that creates conducive conditions for ICTs to make an impact on poverty alleviation. In fact, the digital divide should not be considered binary, rather it is a multifaceted problem where income, education, and language all need to be considered to address it effectively. This book will be useful for researchers/students of development, communication technologies, and comparative politics as well as for development practitioners and policy makers with an interest in how modern technology is impacting the poor in the developing world.

Economics of Household Technology Adoption in Developing Countries
Economics of Household Technology Adoption in Developing Countries

Author: Michaël Aklin

Publisher:

Published: 2018

Total Pages: 35

ISBN-13:

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Innovation is one of the most important drivers of economic development. Even in developing countries, households have access to a wide array of new technologies. However, factors affecting households' technology adoption decisions remain poorly understood. Using data on solar microgrid adoption from rural India, we investigate the determinants of household technology adoption. We offer all households identical solar products to avoid bias from product differentiation. Households pay a monthly fee for technology use, allowing us to abstract away from credit constraints as a barrier to adoption. The results show that household expenditures and savings as well as the household head's entrepreneurial attitude are strong predictors of adoption. In contrast, past fuel expenditures, risk acceptance, and community trust are not associated with technology adoption decisions. These findings suggest new directions for research on the microeconomics of household technology adoption, which is critical for sustainable development among the poor in developing countries.

Digitalization and Economic Development
Digitalization and Economic Development

Author: Mohamed Sami Ben Ali

Publisher: Taylor & Francis

Published: 2022-06-09

Total Pages: 226

ISBN-13: 1000574156

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This book analyses the impact of Information and Communication Technologies (ICTs) on economic development. It contains theoretical and empirical studies, including panel studies on various issues facing developing countries, such as education, corruption, economic growth, government expenditure, financial inclusion, foreign direct investment, infrastructure, economic and social welfare, and inequality. Each chapter offers a well-conceived analysis of the most recent trends in both theory and empirics and addresses numerous policy implications related to the different aspects dealt with in the volume. Overall, this book will be an excellent guide for global graduate students at the Master and PhD levels, as well as academics researching various issues related to economic development while analyzing the role of ICTs. It also addresses numerous policy implications related to economic development for policymakers, investors and stakeholders.

Breaking the Digital Divide
Breaking the Digital Divide

Author: Elena Murelli

Publisher: Commonwealth Secretariat

Published: 2002

Total Pages: 196

ISBN-13: 9780850926729

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This book presents the results of an extensive study of the digital divide, the growth of the internet, online education, health informatics, the net and the economy, regulation of the internet and much more. It is well researched, informative and authoritative. Individuals, organisations and governments with a specialist interest in the transition to an information society and/or knowledge economy will find this book timely. Published with SFI Publishing.

Measuring the Digital Economy
Measuring the Digital Economy

Author: International Monetary Fund. Statistics Dept.

Publisher: International Monetary Fund

Published: 2018-04-05

Total Pages: 49

ISBN-13: 1498307361

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"Digitalization encompasses a wide range of new applications of information technology in business models and products that are transforming the economy and social interactions. Digitalization is both an enabler and a disruptor of businesses. The lack of a generally agreed definition of the “digital economy” or “digital sector” and the lack of industry and product classification for Internet platforms and associated services are hurdles to measuring the digital economy. This paper distinguishes between the “digital sector” and the increasingly digitalized modern economy, often called the “digital economy,” and focuses on the measurement of the digital sector. The digital sector covers the core activities of digitalization, ICT goods and services, online platforms, and platform-enabled activities such as the sharing economy."

Digital Media and Wireless Communications in Developing Nations
Digital Media and Wireless Communications in Developing Nations

Author: Megh R. Goyal

Publisher: CRC Press

Published: 2019-09-16

Total Pages: 277

ISBN-13: 0429639422

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Digital Media and Wireless Communication in Developing Nations: Agriculture, Education, and the Economic Sector explores how digital media and wireless communication, especially mobile phones and social media platforms, offer concrete opportunities for developing countries to transform different sectors of their economies. The volume focuses on the agricultural, economic, and education sectors. The chapter authors, mostly from Africa and India, provide a wealth of information on recent innovations, the opportunities they provide, challenges faced, and the direction of future research in digital media and wireless communication to leverage transformation in developing countries. The volume provides important research on digital media and wireless communication within the context of developing countries that will be very useful for professionals from academia, government agencies, NGOs, technologists, entrepreneurs and investors, and others.