Title: A Response to "A Dialogue on ICTs, Human Development, Growth and Poverty Reduction"
Author: Michael Spence
Source: Publius Project
Publisher: Berkman Center for Internet & Society at Harvard University
Date (published): 15/09/2009
Date (accessed): 28/09/2009
Type of information: essay
Language: English
On-line access: yes (HTML)
Abstract:
There has been great progress in identifying important services (informational and financial and other) that affect the ability of the poor and indeed large parts of developing country populations to conduct transactions at reasonable cost and to start and run businesses. That said there is evidence that this progress is far from complete.

The role of ICT in expanding the opportunity set and lowering costs as predicted in 2003 has in fact turned out to be very large. The progress in the implementation of safe savings channels, secure and low cost transfer of funds, microfinance borrowing and more has been impressive. It is also fairly clear that mobile phone and data technology has formed the infrastructure underpinning for much of this.

That said there is a long way to go. Costs need to come down and service provision needs to expand. There is extensive evidence that financing for poorer people continues to have a high cost as evidenced by the high rates of return on investments that do get made.