ict in developing countries

Information and communication technology (ICT) can
help developing countries tackle a wide range of health,
social and economic problems. By improving access to
information and by enabling communication, ICT can
play a role in reaching Millennium Development Goals
such as the elimination of extreme poverty, combating
serious disease, and achieving universal primary
education and gender equality. However the benefits of
ICT are not fully realised in many countries: ICT is often
out of reach of the poor and those in rural areas. This
POSTnote discusses how this problem is being
addressed, focusing on new ICT such as internet and
mobile phones. It discusses the role of the UK and
wider international community, and the effectiveness of
projects funded by international aid.
Background1
ICT is any technology that enables communication and
the electronic capture, processing, and transmission of
information. Radio, television and print media are vital in
many developing countries. In recent years ‘new’ ICT,
such as mobile phones and the internet (and associated
applications such as ‘VOIP’, transmitting telephone calls
over the internet) have become available to growing
numbers worldwide. The most rapid growth is in mobile
phone usage. Total (fixed and mobile) telephone access
in developing countries increased from 2% in 1991 to
31% in 2004. Internet usage has also grown rapidly:
from 0.03% of developing country inhabitants in 1994 to
6.7% in 2004. However, there are wide disparities
between developing countries (see next section).
Box 1 shows some examples of ICT for Development
(ICT4D) projects, in which the international community,
NGOs, the education sector, national governments and
industry all play a role. Such projects aim to realise the
benefits of ICT in a range of sectors, from health,
education, commerce and e-government to scientific
Box 1. Examples of ICT4D projects
• Health: The Keneya Blown telemedicine project aims to
provide an online network for all hospitals and health
districts in Mali. Physicians are the sole users of the
pilot site, but other healthcare workers are invited to
consult and contribute content. Medical tele-teaching
has also been initiated. Examples of consultations
include one between an expert in Geneva and a patient
in the Bamako, Mali; and a leprosy consultation
between an expert in Bamako and patient in Geneva.2

• Economic empowerment: The Grameen Bank NGO,3 a
village-based organisation in Bangladesh, offers women
low-cost loans to set up mobile phone exchanges in
villages where there are few landlines. The women
charge for the use of their Village Pay Phones, and earn
close to three times the annual average income. Their
earnings allow them to send their children to school and
enhance their status in the community. However the
scheme is threatened by the increasing availability of
cheaper phones for potential purchasers.
• Human rights: The Kubatana Trust in Zimbabwe aims
to strengthen the use of e-mail and internet strategies in
local NGOs and civil society organisations.4 Kubatana
makes human rights and civic education information
accessible to the general public from a centralised,
electronic source, and has become an important means
for disseminating information about the political
situation locally and internationally.
• Commerce:5 In Senegal, Manobi (a French private
telecommunications company) uses Wireless
Application Protocol (WAP)-enabled mobile phones to
obtain up-to-date market prices for Senegalese fruit and
vegetable farmers. The prices are updated in real time
via a central database by data collectors at various
markets, and offer transparency of prices inside the
market that many producers lack.

capacity building, gender empowerment and human
rights. However, the benefits of ICT are not fully realised
as many countries have inadequate infrastructure and
human capacity to support ICT.
postnote March 2006 Number 261 ICT in developing countries Page 2
The digital divide

There are wide disparities in the extent to which different
developing countries, and different socio-economic
groups within countries, benefit from ICT. The ‘digital
divide’ commonly refers to the gap between those with
access to ICT and those without; however, many factors
besides physical access contribute to these disparities.
Disparities within countries

Even in developing countries with relatively high net ICT
uptake, ICT is still out of reach of many groups due to:
• Lack of appropriate products: products are often not
designed to meet the needs of the poor, or those in
remote areas. These groups can face constraints such
as access to electricity (lacked by two billion people
worldwide).
• Cost: roughly half the world live on less than four
dollars a day. Many potential users are too poor to
afford any form of access to ICT.
• Education: even where there is physical access to ICT,
many people do not have the technical skills needed to
benefit from them.
• Language: Poor literacy is a problem with ICT such as
the internet. Of those who can read, many know only
a local language, while the internet is dominated by
English-language content.
• Human resources: As in many sectors, the migration
of skilled ICT professionals from developing to
developed countries contributes to a lack of human
resources to support ICT.
• Lack of robust regulatory framework for ICT can limit
uptake, as illustrated in Box 2.
Disparities between countries

OECD countries have the highest access to new ICT,
followed by South Asian and some African countries.
Sub-Saharan countries fare worst (excepting South
Africa).6 In 2004 Zimbabwe had 3.5 mobile subscribers
per 100 people, compared with 4.3 for India, 36.3 for
Brazil and 102 for the UK. Although levels of access are
low in many African countries, growth over the previous
five years has averaged 60% a year. In 2004 Africa was
the region with the highest mobile phone growth rate.
Growth rates in India averaged 90% over the same
period, among the fastest in Asia. One reason for
differences between developing countries is the wide
variation in government policy on ICT (Box 2).
Tackling the digital divide
Many factors could contribute to bridging the digital
divide. National governments, NGOs, industry and
international donors all play a role, often working
together. However, assessing whether disparities are
increasing or decreasing is difficult because sales figures
give no indication of types of usage of the same ICT in
different countries.
Technological developments
New technologies, and changes in usage, can increase
access to ICT. For example, recent developments in
wireless local area network technologies are raising new
hopes for internet diffusion in parts of the developing
Box 2. ICT policies of different governments7,8
In Ethiopia 40% import tariffs on ICT equipment makes it
too costly for all but the elite. The incumbent public telecom
operator has a monopoly over all telecom services. Although
the number of mobile phone subscribers is growing, uptake
in Ethiopia is among the lowest in Africa. About 60% of
telephones and 94% of the 6,000 internet accounts are
concentrated in the capital, Addis Ababa. This is due to the
limited telecom infrastructure, low levels of computerisation
outside the capital and lack of human resources. However
the government’s attitude to ICT may be changing, with the
establishment of an Ethiopian ICT Development Authority,
and changes in management of the two key
telecommunications agencies.

In China, the number of internet subscribers increased from
33 million in 2001 to 94 million in 2004. This growth is
partly due to market forces, namely consumers’ increasing
desire to go online and competition among service providers.
It is thought that competition is possible because the
government views the ICT sector as an engine for economic
growth. Some analysts argue that most growth is in urban
areas, while ~60% of the population live in rural areas.
In Egypt a dynamic Ministry of Communications and
Information Technology has played a strong role in
catalysing ICT development in collaboration with the private
sector. For example, its transfer of internet subscription
charges from consumers to Telecom Egypt and internet
service providers (ISPs) coincided with a sharp rise in new
users: from ~9 users per ten thousand inhabitants in 2001,
to ~55 per ten thousand in 2004.1
world. Sharing of devices is common in developing
countries; it can also generate employment (see Boxes 1
and 4). Open Source Software (OSS) is also an expanding
area. Since there is no licensing fee attached to it, OSS
can be cheaper to acquire than proprietary software
(postnote 242). The ‘One Laptop Per Child’ project aims
to supply schools with cheap Personal Computers (PCs)
which run on OSS (Box 3).

Box 3. One Laptop Per Child project
This $100 laptop is a robust, open source based computer
that can be cranked into operation. It has been developed by
the non-profit One Laptop Per Child (OLPC) organisation at
the Massachusetts Institute of Technology (MIT), with
assistance from corporate members such as Google and
NewsCorp. It will be sold to governments by early 2007 and
issued to children by schools. Advocates say the laptops will
make the learning process more engaging and interactive.
Critics are concerned that the project is an attempt to exploit
a new mass market under the guise of ‘non-profitability’.
Some question whether the cost of teaching materials,
training teachers, and maintenance have been properly
taken into account.


The role of industry
Left to market forces alone, some areas or societal groups
considered unprofitable to service might be left without
access to ICT. Some analysts question whether industry
will make a significant difference to the development
agenda. However, industry commentators suggest it is
playing a role. For example, in India, Intel is working to
address problems in rural areas, where PCs are affected
by heat, dust and unreliable power sources. Ericsson, in
partnership with the United Nations Development
postnote March 2006 Number 261 ICT in developing countries Page 3
Programme, is working towards improving mobile
coverage for rural users in the developing world. Many
industry commentators attribute the rapid increase in
mobile telecommunications in Sub-Saharan Africa to
private sector investment.
Box 4. Mobile phone line rental in Tanzania
Before liberalisation of the telecommunications sector in the
1990s, very few Tanzanians were able to access a
telephone. This was because monopoly landline prices were
high and services were poor, biased towards urban-centres
and sometimes required payment of a bribe to be connected.
With liberalisation, mobile phone subscriber rates in
Tanzania increased almost 90% a year from 1998 to 2003.
Airtime vouchers in low denominations cater for those who
can afford to pay for only one call, while other customers
without a handset can use huduma ya simu, a roadside line
rental service available in many developing countries.
Customers save on the costs of time and money used to
travel to a landline in town, while the operators gain income
and provide a service that reduces the digital divide.
The role of national governments
Box 2 shows that a range of government strategies, from
cutting taxes on devices such as mobile phones, to
liberalising markets, can increase ICT uptake. However, it
is argued that some policies increase only net ICT
access. For example, efforts to develop the “high tech”
end of the market, such as mobile phones with
multimedia exchange, tend to benefit the middle classes
rather than improving basic levels of access for all. It is
also argued that governments sometimes set overambitious
targets for ICT uptake, which have little hope
of being put into practice.
Some ICT4D commentators suggest developing country
governments should encourage uptake of technologies
such as mobile phones, which have proved popular
among the poor. They say this is better than promoting
ICT like the PC, uptake of which has been comparatively
slower. There is consensus that education and IT skills
training play a role in improving access to ICT. However
there is debate over how to raise awareness and generate
demand: some say donor-funded telecentres (which offer
a range of telephone, computing, internet and
information services) have a role to play in familiarising
people with basic ICT. Others suggest generating
consumer demand is more important, citing the growth
of the internet among middle-classes in China (Box 2).
ICT for Development (ICT4D)
The international community plays a key role in
stimulating access to ICT. Some major initiatives are
outlined in more detail below.
The Millennium Development Goals (MDGs)
The MDGs, agreed at the United Nations Millennium
Summit in 2000, aim to reduce world poverty and
improve lives by 2015. The UK Department for
International Development (DFID) has made the MDGs
the focus of its work. ICT is seen as a means of achieving
many MDG goals. One target specifically relates to ICT
aiming ’to make the benefits of ICT available to all’.
There has been progress in this area, although critics
argue that the target does not specify which ICT should
be made available, to whom, and by when. Others argue
the MDGs should place more emphasis on economic
growth: they suggest the MDG-inspired prioritisation of
ICT applications for micro- and small-scale firms ignores
medium- and large-scale firms that are key drivers of
wealth creation and competitiveness.
World Summit on the Information Society9 (WSIS)
WSIS, a two phase United Nations (UN) summit, aimed
at overcoming the digital divide and creating an allinclusive
Information Society. During the second phase
(November 2005), management of Internet infrastructure
particularly top level internet domain names (like .com or
.org), was a key area of debate. While WSIS did not
result in any major changes to arrangements in this area,
one outcome was the creation of the UN Internet
Governance Forum (IGF). The IGF will provide a platform
for discussing cross-cutting issues such as internet
security, although it will have no decision-making
powers. While WSIS brought together many actors in the
ICT4D field, some critics suggest that it lacked
representation from the ICT industry (particularly from
developing countries). They also point to a lack of
independent research and ‘big ideas’ beyond the $100
laptop (Box 3).
New Partnership for Africa’s Development (NEPAD)
NEPAD is an African-initiated strategic framework for the
continent’s revival. It identifies ICT development as a
priority action area. It focuses on two key areas: the rapid
development of ICT infrastructure, and dissemination of
ICT skills across the African population, by implementing
an e-schools programme across primary and secondary
schools. NEPAD has been widely praised for having
placed ICT on the development agenda although some
critics suggest it lacks the resources and infrastructure to
fulfil its goals.
Commission for Africa (CfA)
The CfA is a UK government initiative set up in 2004 to
stimulate development in Africa. The CfA report from
2005 recognises the importance of ICT in many areas,
including higher education, economic growth,
governance, culture, trade and finance. It urges donors to
increase funding to support a free media (including new
ICT such as internet broadcasting). Critics say that
although the commission proposes substantial increases
in funding to carry out its recommendations, it is not
clear how these funding increases will be delivered.
ICT4D in the UK


In the UK, the Information & Communication for
Development (ICD) team within DFID leads on ICT4D
activities. Between 2001/2002 and 2005/2006, ICD
expects DFID to have committed £40m on ICT4D
programmes, with a focus on Africa. A range of initiatives
are underway, in areas such as teacher training and
education; promotion of affordable access to ICT; and
promoting expansion of local internet content. DFID is
postnote March 2006 Number 261 ICT in developing countries Page 4
also responsible for the UK’s contribution to the ICT
elements of NEPAD, focussing on regional ICT
infrastructure. Currently the organisation of ICT activities
within DFID is changing and ICT is being integrated into
other DFID programmes. Some fear that this means
ICT4D activities will be wound down at DFID, possibly
jeopardising the UK’s expertise in ICT4D.
Controversy over ICT4D

It is broadly agreed that ICT can play a part in bridging
developmental disparities between and within countries.
There is less agreement over how high a priority it should
be, in relation to other developmental concerns. Some
suggest that the introduction of ICT in developing
countries will rapidly improve wealth as well as social
and personal well-being. They say it should be treated as
a matter of urgency, since any delay puts developing
countries at risk of being further marginalised. Others
question the relevance of spending development aid on
improving access to ICT, arguing that basic services
should be prioritised. However it is increasingly
acknowledged that the two approaches are linked, since
ICT can improve access to basic services, such as health
and education.


Aid sceptics say many ICT4D projects are financially
unsustainable in the long term, and question the extent
to which many projects are demand-led. Telecentres and
projects involving subsidised public access to the internet
have been dubbed ‘rusting tractors for the 21st century’
by some.10 However, proponents argue that, if run
properly, such projects could contribute to local
communities just as public libraries do.11 Supporters of
ICT4D accept that there is little empirical evidence that
ICT4D projects actually result in poverty reduction, but
argue that, because ICT is a multi-purpose tool, it is
difficult to demonstrate a simple cause and effect.
Other impacts of ICT
It is difficult to demonstrate that increasing access to ICT
has a positive impact on development, when looking at
the broader picture rather than at specific case studies.
There is limited research in this area. Although such links
have been established in developed countries (where, for
example there is evidence of a link between telecoms
development and economic growth) it is too early to
observe this effect in developing countries. ICT has many
social, environmental and economic impacts:
• Cultural: In many cases culture adapts to fit
technological development, and not vice versa.
• Intellectual Property Rights: ICT can help disseminate
indigenous knowledge (such as herbal medicine).
However, by publishing such information on the
internet the knowledge of the economically poorer may
be exploited with no benefit to them.
• Employment: ICT can take jobs from those who have
previously benefited from their specialised knowledge,
such as agricultural middlemen who know market
prices. ICT does create new jobs, although they are
likely to be quite different from the disappearing jobs.
• Environment and health: ICT devices often contain
toxic substances, particularly ‘reconditioned’ (but
sometimes obsolete) ICT hardware donated to
developing countries. Increased use of ICT presents
challenges for managing electronic waste as well as
energy consumption.


ICT and freedom of speech
There is debate over the extent to which ICT will lead to
increased freedom of speech in states where censorship
of traditional media is widespread. Filters, blocks and
tracking devices can be used to control information
distributed with ICT. However, many commentators
argue that in the long term, the nature of the
technologies may make censorship unfeasible.
Overview

• Information Communication Technology (ICT) is
increasingly seen as a means of enabling other
developmental needs rather than as an end in itself.
• However there are wide disparities in access to ICT,
with many new technologies out of reach of the poor.
Reasons include cost, inappropriate design, lack of
infrastructure, education, human resources and
support from government.
• Technological developments and changes in the way
new ICT are used (e.g. sharing devices) can help
bridge this ‘digital divide’.
• The importance of ICT in achieving development goals
is increasingly recognised in international initiatives
such as the Millennium Development Goals; however
there is debate over the effectiveness of ‘ICT for
Development’ (ICT4D) projects.
• NEPAD and the Commission for Africa are both
notable for placing ICT on the development agenda.
Endnotes
1 Statistics sourced from www.itu.int, unless otherwise stated.
2 www.keneya.net
3 www.grameentelecom.net
4 www.kubatana.net
5 www.manobi.net
6 The Digital Divide: ICT Development Indices 2004, United Nations
Conference on Trade and Development, 2005
7 G Feller, ‘ICT Policy of Ethiopia: changing positively’, Information for
Development (I4D), vol3 no6 (2005), pp 28-29
8 G Liang, ‘Surveying Internet Usage and Impact in Twelve Chinese
Cities’, Chinese Academy of Social Sciences, 2003
9 R Heeks, ‘WSIS: What did it achieve for ICTs and development?’
DIG eDevelopment Briefing, no.11 (2005), IDPM, Manchester
10 R Heeks, ‘ICT and the MDGs: on the wrong track?’ I4D, vol.3, no.2
(2005) pp 9-12
11 S Ferreiro, ‘Information Literacy: A Perspective from Chile’. White
paper prepared for UNESCO, presented at the Information Literacy
Meeting of Experts, Prague, July 2002