Benefiting the BOP?


Posted on June 27, 2008  /  0 Comments

An article, co-written by Anu Samarajiva, and LIRNEasia researchers Ayesha Zainudeen and Harsha de Silva, has been published in the Information for Development (i4d) magazine, on the efficacy of telephones in expediting socio-economic development and buttressing accessibility.

Based on findings from the Teleuse@BOP study conducted in 2006, the article illustrates that while previous studies have provided strong evidence for the connection between phone access and development at a macro level, the link is less clearly visible at a micro-level, with low income users at the BOP failing to perceive the potential financial and economic benefits arising from access to telephony.

The PDF version of the article can be accessed HERE.

Results from the survey responses of 8,660 households do not manifest a strong correlation with the macroeconomic evidence that access to phones carries significant economic benefits. Where then is the disconnect coming from between what households perceive as the limited economic benefits of phone use, and the significant increases in macro-level output? One possibility is that many users at the bottom of the pyramid prefer face-to-face interactions in their business dealings (where perhaps the most obvious economic gains can be made), and access to phones will not quickly change the situation.

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