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Hello,

A message has been sent to the wsisyouthasia group from

  kevinysli@yahoo.com 

The message summary:
--------------------
FROM: kevinysli@yahoo.com 
DATE: Sat, 25 Jan 2003 00:08:05 -0000 
SUBJECT: Why the poor don't need Internet access 

Dear folks, 

I would like to share with you a good reflection article. 

Kevin ----- South China Morning Post Saturday, January 25, 
2003 

Why the poor don't need Internet access 

CHARLES KENNY 
--------------------

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Dear folks,

I would like to share with you a good reflection article.

Kevin
-----
South China Morning Post
Saturday, January 25, 2003

Why the poor don't need Internet access

CHARLES KENNY

Politicians, businesspeople, donors and the press have all proclaimed=20
the digital divide between the poor in the developing world and the=20
wealthy West as one of the century's most significant development=20
challenges. In Africa and South Asia, 99.6 per cent of the=20
populations did not use the Internet in 2000. "The digital divide=20
threatens to further marginalise the economies and peoples of many=20
developing countries," concluded the UN General Assembly in June last=20
year.=20

The Group of Eight industrialised nations declared in Okinawa in 2000=20
that "everyone should be able to enjoy access to information and=20
communications networks".=20

The best of motives may drive a concern to equalise global Internet=20
access, but not the strongest of logic. True, tools of communication=20
are important to the world's poorest, and one can also find many=20
examples of effective Internet use in developing countries. For=20
instance, the Internet has been used to inform farmers of crop prices=20
in Argentina, to register deeds in India, to educate children in=20
rural Uganda, and to sell woodcarvings and sandals in Kenya.=20

But it is a large leap to conclude that global Internet access is a=20
sensible goal. Uplifting anecdotes are not enough to justify the high=20
costs of universal Internet access, costs that would be at their=20
highest in the least developed countries.=20

One reason for the high cost of providing widespread Internet access=20
to low-income countries is that about 69 per cent of their population=20
is rural. Providing networked services like electricity and=20
telephones to rural areas is expensive - and because rural people are=20
largely poor, it is hard to justify that cost in terms of potential=20
revenues.=20

Solar power and satellite connections are a potential alternative,=20
but such technology further increases the cost of Internet access. In=20
one telecentre in Costa Rica, it cost US$10,000 (HK$78,000) to hook=20
up each computer to the Internet. By comparison, the average person=20
living on US$1 a day (and there are 1.5 billion such people=20
worldwide) spends about US$10 per year on communications when they=20
have access to it.=20

Subsidised public access is one answer. The subsidies would have to=20
be large, however. Ensuring one hour a week of access at a telecentre=20
such as the one in Costa Rica might cost as much as US$50 per year=20
per capita - or about 10 times public spending per capita on health=20
in low-income countries and 10 times discretionary spending per=20
primary student.=20

On this basis, the worldwide subsidy for everyone living on US$1 a=20
day to get one hour of access a week might reach US$75 billion -=20
considerably more than the global total of aid flows each year. Given=20
that providing widespread Internet access will be complex and=20
expensive, attempting to provide service everywhere will be a costly=20
mistake.=20

Some argue that access could be provided more cheaply - perhaps at=20
levels that only equal average health expenditures in low-income=20
countries. Nonetheless, costs of access would probably still outweigh=20
benefits because the digital divide encompasses far more than a=20
physical lack of access; it also relates to deficits in skills and=20
the broader economic environment.=20

Lack of education is a major barrier to productive Internet use, for=20
example. In Ethiopia, 98 per cent of Internet users in 1998 had a=20
university degree, yet 64.5 per cent of the overall population is=20
illiterate.=20

Worldwide, most people living on US$1 a day are illiterate. Further,=20
they usually speak a minority language in their own country - few=20
speak a major global language. For example, about 17 million people=20
in Nigeria speak Igbo.=20

My search for Web pages in Igbo turned up only five sites: a=20
translation of the Universal Declaration of Human Rights, a=20
translation of a document called "The Four Spiritual Laws"=20
(theological provenance undetermined), a translation of the food=20
pyramid, a two-page Igbo phrase book and a prayer manual.=20

There is not an Igbo translation service on the Web, so an Igbo=20
speaker would be limited to these five. None involved sound or video,=20
so the illiterate Igbo speaker would gain nothing.=20

Bridging the gaps in language and technical skills as well as basic=20
literacy will be difficult, considering the small per-student=20
spending available in the poorest countries' primary schools.=20

Even if poor people are lucky enough to be literate and conversant in=20
a major world language, their use of the Web for activities such as e-
commerce is likely to be limited by their lack of credit cards, not=20
to mention the challenge of persuading Federal Express and UPS to=20
start delivery services in their neighbourhoods.=20

Limitations in the relevant content and the ability to use that=20
content perhaps best explain why only 2.2 per cent of India's=20
Internet users have ever engaged in buying or selling over the Web.=20
Similarly, a survey of Tanzanian firms found that among the 30 per=20
cent of companies with access to the Internet, less than half use it=20
frequently and only 9 per cent rated it as a very effective tool for=20
promoting products.=20

Communications matter to the poor. A system of well-regulated,=20
competitive communications services will reduce costs and extend=20
access. In many cases, it may well be worth extending access to=20
telephony with limited, targeted, carefully designed subsidy=20
programmes.=20

But pursuing universal access to the Internet would be a=20
misallocation of considerable resources. To draw an analogy, another=20
technology boasts a 70-fold difference in access rates between the=20
United States and India, and economists link that technology to=20
increased productivity as well. But no one is setting up a UN=20
taskforce to overcome the Air Conditioner Divide.=20

Poor countries face many serious divides, including those in=20
education, health care and transport. The relevant question for the=20
poorest is, does the lack of access to a particular good provide a=20
significant barrier to becoming more wealthy? The answer is yes for=20
the tools of communication in general but no for the Internet in=20
particular.=20

Charles Kenny is an economist at the World Bank. This article first=20
appeared in Foreign Policy magazine. The views expressed are his own.=20

Published in the South China Morning Post. Copyright =A9 2003. All=20
rights reserved.=20




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