Do new ICT technologies have the potential for reducing poverty? (Case:…
Do new ICT technologies have the potential for reducing poverty?
Case: the fishing community in the southwestern state of Kerala has adopted mobile phones in large numbers.---------View of Abraham(2007)
Benefits of using mobile phone at sea.---related to the conclusion/view of the author.
Natural resources: prevent unnecessary wastage of catch.
because fish is a highly perishable commodity: a common occurrence before the adoption of phones.
(At the marketing end) mobile phones help coordinate supply and demand.
markets become more efficient as risk and uncertainty are reduced.---- subject to easy access to capital, especially at the production end of the supply chain, without which the market remains less efacient than it could be.
price dispersion and price fluctuation are reduced
There is greater market integration
there are gains in productivity and in the Marshallian surplus (sum of consumer and producer surplus), refers to two related quantities: 1.Consumer surplus--obtained by consumers because they are able to purchase a product for a price that is less than the highest price that they would be willing to pay. 2.Producer surplus--- is the amount that producers benefit by selling at a market price that is higher than the least that they would be willing to sell for.
the quality of
life of the ashermen improves.
less at risk in emergencies
feel less isolated
fisher men: are able to respond quickly to market demand.
merchants and transporters: are able to take advantage of the free flow of price information by catering to demand in undersupplied markets.
less wastage of time and resources in all segments of the ashing community.
Methodology of the case study---- the structure
The field work
was conducted at 12 locations in the southwestern state of Kerala, over a 200-kilometer radius
It included focus groups and a purposive quota sample survey----conducted using a questionnaire of 20–25 questions, depending on fishing industry category being sampled
A total of 172 individuals, from across the ashing industry, were interviewed for the survey.
15 individuals were interviewed for a pilot study that preceded the anal survey.
Before the field work: interviews with more than 50 experts to set the stage for the aeld work
Mobile phone-- how it should work--Reuben Abraha's
role: as carriers and conduits of information
lessen the information asymmetries in markets---play a role in correcting large-scale information asymmetries and inefaciencies that exist in developing countries, especially in rural and unorganized markets.
thereby making rural and undeveloped markets more efficient.
Point: I started this research assuming that the use of mobile phones was mostly at the production end of the supply chain. In fact, I found that most of the usage occurred at the marketing end.
The situation in India
The Fishing Supply Chain in India
NB: The description of the supply chain here is very brief for want of space. This is the simplest possible description of the chain. In reality, the chain is a lot more complex and involves many more stages.
Telecommunications in India
There are now in excess of 200 million phones (landlines and mobiles combined) in India, making it the second-largest network in the devel- oping world behind China (Figure 1).
The main driver for this rapid growth has been the growth of the mobile phone industry. From fewer than a mil- lion subscribers less than 8 years ago, the market has grown to about 156 million subscribers today.
Despite these numbers, the teledensity remains an unhealthy 11 telephone lines per 100 people, which reveals the scope for growth.
Telecoms development in India: Only in the last six years—since the implementation of serious reform—has the sector been unshackled of its regu- latory and policy constraints, leading to telecoms be- coming the fastest growing infrastructure sector in the country.
In the past: the sector was never considered important enough for serious investment because it was con- sidered by policy makers to be a “luxury” that the vast majority of Indians had no use for.
Whether there is a connection between information and communication technologies ICTs and economic growth?----Little research on that.
Whether a connection can be established?
How it works?
Information is power.
There is an important point here that must be noted: people at the marketing end of the supply chain tend to be better off and more sophisticated than the ashermen at the production end.
we could argue that mobile phones may actually increase inequality in the short run, a conclusion shared by Forestier, Grace, and Kenny (2002)------people at the marketing end of the supply chain have better access to capital, which lets them leverage the use of mo- bile phones into real gains for themselves.
Unlike them though, I did find a significant improvement in quality-of-life variables since the introduction of mobile phones. Abraham (2006)
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