Jenny Aker on mobile phones and economic development in Africa
Jenny Aker an Assistant Professor in the Economics Department and Fletcher School of Law and Diplomacy, Tufts University, provided an overview of the welfare impacts of mobile technologies and how current research is testing our assumptions about the benefits of mobile phones for individuals in developing countries.
Mobile phones are used by some of the poorest people in the world; even at the country ranked 160 in the UN's Human Development Index, levels of adoption of mobile phones are at 50%. There are few systematic studies looking at why people adopt mobile technology, but those that exist suggest there are correlations with higher income levels, trading professions and an urban location. Mobile phone coverage across Africa is now extensive. Research shows that roll out by mobile phone companies is determined by factors including the size of population, the costs associated with terrain, quality of road access and the operating environment (whether there exists a competitive liberalized market).
Identifying the positive impact of mobiles can be difficult because they have so many uses, making assessment of costs and benefits problematic. Mobiles are also only pseudo private goods since they are often shared and benefits extend beyond the owner. Despite these difficulties, a number of researchers have demonstrated the impact of mobile phones in the developing world. Robert Jensen's paper found that the introduction of mobiles into the fishing industry in Kerala, India resulted in reduced price discrepancies and significant welfare benefits in the form of increased profits for fishermen and reduced waste. Similarly, Jenny's own study of grain markets in Niger found that the use of mobile phones reduced price discrepancy and enhanced welfare through increased trader profits and reduced average consumer prices.
As well as these externalities from the IT sector, we are also seeing deliberate attempts to harness the potential of mobile phones, from private sector services (e.g. the provision of mobile money transfers such as M-Pesa) to non-profit development projects using mobiles in diverse contexts including health, governance and market information. Jenny is currently working on a project that will examine how mobiles can improve literacy in Niger. A pilot of Project ABC over the next three years will assess how access to mobile phones can complement traditional literacy lessons by giving people the chance to practice their literacy skills via SMS. Early results suggest significantly higher performance in literacy testing by groups using mobile phones.
If mobiles have genuine welfare impacts then ensuring access becomes a key policy concern. Jenny highlighted the importance of continuing liberalization of telecoms markets in Africa, maintaining fair and transparent legislation and reconsidering ICT taxes (in some countries mobiles are taxed as a luxury good). But while mobiles can enhance the delivery of and access to resources and information, we should be wary of viewing them as a development panacea since they cannot replace basic infrastructure investments such as power and roads.
Matt Halprin and Stephen King on using technology to catalyze large-scale social change
Matt Halprin is a Partner leading Omidyar Network's Media and Stephen King is the Director of Investments and is based in London. They introduced us to the work of Omidyar Network which invests in market-based efforts to give people the technology tools they need to improve their lives.
The network was set up in 2004 by Pierre Omidyar, founder of eBay, and his wife Pam. It comprises both a venture capital fund and a grant-making foundation. The network has a strong focus on individual empowerment and is committed to market-based solutions, believing that business is one of the best mechanisms for achieving sustainable social impact. Omidyar looks to invest in projects that have potential to impact large numbers of people and that show signs of real innovation - for example, new business models or new markets.
So far $307 million has been committed, with $138 million going to for-profit investments and $169 million to non-profit grants. There are two broad areas of focus:
- Access to capital: This encompasses projects around microfinance, entrepreneurship and property rights.
- Media, markets and transparence: This encompasses projects around social media, marketplaces and government transparency. Omidyar are particularly interested in the role of journalism in ensuring accountability of governments.
Projects in the Unities States include:
- The Sunlight Foundation - works to make information about Congress and Federal government more accessible and meaningful to citizens; created the first searchable site for all federal government contracts to monitor where money is going.
- Global Integrity - uses quantitative and qualitative analysis to provide a scorecard tracking governance and corruption in different countries.
In the developing world, Omidyar looks to supports access to greater information and government transparency, which it views as key drivers of prosperity. The network is supporting global organizations, national partners in three African countries (Nigeria, Ghana and Kenya) and is establishing a pan-African mechanism for smaller grants. Current global projects include:
- Ushahidi - an open source platform to report and share data in the aftermath of a crisis. Omidyar will be working to help Ushahidi to build traffic to the site and to tackle the challenge of verifying reports.
- Infonet - a web portal that acts as an information hub for all national and devolved budgets in Kenya; currently used by NGOs, citizen groups and the media.
- Mzalendo - a one stop shop for citizens to track the activities of parliamentarians in Kenya.
- FrontlineSMS - a two way communication tool using laptops and mobile phones for organizations without internet access.
Toleration and Politics
Daniel Markovits is Professor of Law at Yale Law School. He works in the philosophical foundations of private law, moral and political philosophy, and behavioral economics. He has written articles on contract, legal ethics, distributive justice, democratic theory, and other-regarding preferences. Professor Markovits concentrates, in each area, on the ways in which legal orderings engage the human instinct in favor of sociality to sustain cooperation even among persons who pursue conflicting interests and endorse competing moral ideals. He finds respectful relations in surprising places, for example in contracts between self-interested buyers and sellers, litigation between adversary disputants, and political competition between partisan parties. In each case, Markovits argues, seemingly competitive interactions contain, in their immanent logic, forms of reciprocal recognition and respect. After earning a B.A. in Mathematics, summa cum laude from Yale University, Markovits received a British Marshall Scholarship to study in England, where he was awarded an M.Sc. in Econometrics and Mathematical Economics from the L.S.E. and a B.Phil. and D.Phil. in Philosophy from the University of Oxford. Markovits then returned to Yale to study law and, after clerking for the Honorable Guido Calabresi, joined the faculty at Yale.
Co-sponsored with Political Theory
Reuben W. Hills Conference Room
Character as Destiny: The Shah, and the roots of the Islamic Revolution in Iran
Abbas Milani is the Hamid and Christina Moghadam Director of Iranian Studies at Stanford University and a visiting professor in the department of political science. In addition, Dr. Milani is a research fellow and co-director of the Iran Democracy Project at the Hoover Institution.
Prior to coming to Stanford, Milani was a professor of history and political science and chair of the department at Notre Dame de Namur University and a research fellow at the Institute of International Studies at the University of California at Berkeley. Milani was an assistant professor in the faculty of law and political science at Tehran University and a member of the board of directors of Tehran University's Center for International Studies from 1979 to 1987. He was a research fellow at the Iranian Center for Social Research from 1977 to 1978 and an assistant professor at the National University of Iran from 1975 to 1977.
Milani received his BA in political science and economics from the University of California at Berkeley in 1970 and his PhD in political science from the University of Hawaii in 1974
Encina Ground Floor Conference Room
Abbas Milani
615 Crothers Way,
Encina Commons, Room 128A
Stanford University
Stanford, CA 94305
Abbas Milani is the Hamid and Christina Moghadam Director of Iranian Studies at Stanford University and a visiting professor in the department of political science. In addition, Dr. Milani is a research fellow and co-director of the Iran Democracy Project at the Hoover Institution.
Prior to coming to Stanford, Milani was a professor of history and political science and chair of the department at Notre Dame de Namur University and a research fellow at the Institute of International Studies at the University of California at Berkeley. Milani was an assistant professor in the faculty of law and political science at Tehran University and a member of the board of directors of Tehran University's Center for International Studies from 1979 to 1987. He was a research fellow at the Iranian Center for Social Research from 1977 to 1978 and an assistant professor at the National University of Iran from 1975 to 1977.
Dr. Milani is the author of Eminent Persians: Men and Women Who Made Modern Iran, 1941-1979, (Syracuse University Press, Syracuse, NY, 2 volumes, November, 2008); King of Shadows: Essays on Iran's Encounter with Modernity, Persian text published in the U.S. (Ketab Corp., Spring 2005); Lost Wisdom: Rethinking Persian Modernity in Iran, (Mage 2004); The Persian Sphinx: Amir Abbas Hoveyda and the Riddle of the Iranian Revolution (Mage, 2000); Modernity and Its Foes in Iran (Gardon Press, 1998); Tales of Two Cities: A Persian Memoir (Mage 1996); On Democracy and Socialism, a collection of articles coauthored with Faramarz Tabrizi (Pars Press, 1987); and Malraux and the Tragic Vision (Agah Press, 1982). Milani has also translated numerous books and articles into Persian and English.
Milani received his BA in political science and economics from the University of California at Berkeley in 1970 and his PhD in political science from the University of Hawaii in 1974.
Leveraging Familiar Technologies for Citizen Journalism, Education, and Healthcare in India
While information technologies have transformed our way of life in rich countries, in developing regions there remain many barriers to adopting new technologies, including high costs, unreliable power and network infrastructures, and lack of real or perceived benefits. Consequently, technology ownership and usage in resource-poor environments is often limited to a small number of near-and-dear devices, which may include a television, video player, or mobile phone. Devices that are unfamiliar are unlikely to be used.
In this talk, I will describe three projects that seek to adapt or apply familiar technologies to advance new goals in socio-economic development:
- A new platform for citizen journalism that enables tribal communities to record and share audio newscasts over a mobile phone,
- A new platform for interactive educational content using ordinary TVs and DVD players, and
- A new system for monitoring and improving healthcare delivery by using off-the-shelf biometric technologies.
While all projects are in their early stages, they have each been deployed in India; I will relate our experiences gained and highlight recurring themes at the intersection of technology and development.
Bill Thies is a researcher at Microsoft Research India, where he is a member of the Technologies for Emerging Markets Group. His research focuses on creating appropriate information and communication technologies to promote socio-economic development, as well as the description and automation of biology protocols on platforms such as microfluidic chips. Bill was trained as a computer scientist and received all of his degrees from the Massachusetts Institute of Technology, completing his Ph.D. in 2009. His graduate research focused on programming languages and compilers for parallel computing.
Wallenberg Theater
Ten Myths of Technology and Development
Abstract
In the same world where there are 1.4 billion Internet users, a very different 1.4 billion people live below the World Bank's poverty line. As if in sudden recognition of this gap, the past decade has seen incredible interest in applying information and communication technologies for global development, an endeavor often abbreviated "ICT4D." How do you design user interfaces for an illiterate migrant worker? Can you keep five rural schoolchildren from fighting over one PC? What value is technology to a farmer earning $1 a day?
Interventionist ICT4D projects seek to answer these kinds of questions, but the excitement has also generated a lot of hype about the power of technology to solve the deep problems of poverty. In this talk, I will present 10 myths of ICT4D which continue to persist, despite increasing evidence to the contrary. My hope is to temper the brash claims of technology with realism about its true potential.
Summary of the Seminar
Kentaro identified a number of myths that surround the field of ICT4D and argued that these can confuse our thinking about the proper role for technology in addressing development problems.
Myth 1: Technology x will save the world: The history of writing on technology shows that each new advance tends to be greeted with unbridled enthusiasm about its potential impact. Where once people were convinced television could solve all social and political problems, today we are putting that burden onto mobile phones.
Myth 2: Poor people have no alternatives: We can often assume that technology is the only way that poor people will be access certain goods. In reality, there are usually non-technological routes to information and services that are free and therefore preferable.
Myth 3: ‘Needs' are more pressing than desires: A high proportion of the income of the very poor goes on what Western observers might view as ‘luxury' items: (music, photos, festivals & weddings) rather than ‘basics' such as healthcare.
Myth 4: ‘Needs' translate into business models: Building a business model around the needs of poor communities is possible, but there are significant barriers. Poor populations are harder to reach, and they may not want to pay for the services you provide, even if their value seems obvious to you.
Myth 5: If you build it, they will come: Spending is not always rational. An eye hospital in India offers extremely high quality cataract operations for free and covers all related costs. 10% of those offered the service will still refuse to have the operation.
Myth 6: ICT undoes the problem of the rich getting richer: In contexts where literacy and social capital are unevenly distributed, technology tends to amplify inequalities rather than reduce them. An email account cannot make you more connected unless you have some existing social network to build on.
Myth 7: Hardware and software are one-time costs: Kentaro estimates that the average One Laptop per Child will in fact cost $250 per child per year to cover breakage, connectivity, power, maintenance and training.
Myth 8: Automated is always cheaper and better: Where labor is cheap and populations are illiterate, automated systems are not necessarily preferable. Greater accuracy may be another reason to favor voice and human mediated systems.
Myth 9: Information is the real bottle-neck: Those in the ICT4D world are prone to overestimate the significance of information gaps. Even if you connect a farmer to an agricultural expert via a PC, there are a host of other barriers to be overcome before he can actually increase his yields, including: literacy, poor transport links, and a lack of volume buyers for seeds, pesticides etc.
Kentaro contends that when technology makes a difference in development, it is always as much to do with the input of committed and competent individuals and organizations. Despite this, the focus when reporting ICT4D projects quickly slips into extolling the virtues of the technology itself, not the human component. This says much about the seductive quality of technology. Myths about its potential persist because we have a strong desire to see the triumph of clever ideas and ingenuity, and to believe that one time catalytic investments can have such an impact. The reality is always more complex.
Kentaro Toyama is a visiting scholar at the School of Information at the University of California, Berkeley.
Until 2009, he was assistant managing director of Microsoft Research India, which he co-founded in 2005. At MSR India, he started the Technology for Emerging Markets research group, which conducts interdisciplinary research to understand how the world's poorer communities interact with electronic technology and to invent new ways for technology to support their socio-economic development. He co-founded the IEEE/ACM International Conference on Information and Communication Technologies and Development (ICTD) to provide a global platform for rigorous academic research in this field.
Prior to his time in India, Kentaro did computer vision and multimedia research at Microsoft Research in Redmond, WA, USA and Cambridge, UK, and taught mathematics at Ashesi University in Accra, Ghana. Kentaro graduated from Yale with a PhD in Computer Science and from Harvard with a bachelors degree in Physics.
Wallenberg Theater
China in the 1990s: Turning the Corner
The Stanford China Program in cooperation with the Center for East Asian Studies will host a special series of seminars to mark 60 Years of the People's Republic of China (PRC). Over the course of the winter and spring terms, we will have six leading scholars, each examining one of the six decades of the PRC's history. Our premise is that history matters. The speaker on each decade will characterize their decade, note shifts within that time, identify the pivotal events, and discuss how the decade shaped what happened afterwards.
Barry Naughton is an authority on the Chinese economy, with an emphasis on issues relating to industry, trade, finance, and China's transition to a market economy. Recent research focuses on regional economic growth in the People's Republic of China and the relationship between foreign trade and investment and regional growth. He is also completing a general textbook on the Chinese economy. Recently completed projects have focused on Chinese trade and technology, in particular, the relationship between the development of the electronics industry in China, Taiwan and Hong Kong, and the growth of trade and investment among those economies. His book, Growing Out of the Plan: Chinese Economic Reform, 1978-1993, which was published in 1995, is a comprehensive study of China's development from a planned to a market economy that traces the distinctive strategy of transition followed by China, as well as China's superior growth performance. It received the Ohira Memorial Prize in 1996. Naughton is the author of numerous articles on the Chinese economy and is editor or co-editor of three other books: Reforming Asian Socialism: The Growth of Market Institutions, Urban Spaces in Contemporary China, and The China Circle: Economics and Technology in the PRC, Taiwan and Hong Kong. Naughton joined IR/PS in 1988 and was named to the Sokwanlok Chair in Chinese International Affairs in 1998.
Philippines Conference Room