The surprising boom has led to widespread speculation — and hope — that cell phones could potentially transform the impoverished continent.
But new research by economists Isaac M. Mbiti and Jenny C. Aker finds that cell phones — while a useful and powerful tool for many people in Africa — cannot drive economic development on their own.
Mbiti, at Southern Methodist University in Dallas, and Aker, at Tufts University in Medford, Mass., say that while there is evidence of positive micro-economic impacts, so far there's limited evidence that mobile phones have led to macro-economic improvements in African countries.
"It's really great for a farmer to find out the price of beans in the market," says Mbiti, who has seen the impact of the cell phone boom firsthand while conducting research in his native Kenya. "But if a farmer can't get the beans to market because there is no road, the information doesn't really help. Cell phones can't replace things you need from development, like roads and running water."
Mbiti and Aker will publish their findings in the article "Mobile Phones and Economic Development in Africa" in the Journal of Economic Perspectives. The Washington, D.C.-based Center for Global Development, an independent nonprofit policy research organization, has published a working version of the paper online.
"Also needed are appropriate policies and regulations that can promote the development of innovative mobile phone-based applications such as mobile banking services that have the potential to positively impact the economic livelihood of Africans," Mbiti says.
The researchers also cite areas where more research is needed, such as the number of direct and indirect jobs created by the cell phone industry; whether mobile phones actually drive increases in gross domestic product; accurate mobile phone penetration rates; and whether cell phones are driving consumer surpluses due to increased market competition.
While there are some limited assessments of the impact by economists — in Niger, Uganda and rural South Africa, for example — more research by economists is needed, say Mbiti and Aker. They hope their study will spur economists to delve deeper into the long-term impact.Boom improves daily life
As a result, cell phones have had some dramatic effects, particularly in rural Africa, say the researchers: farmers can compare market prices for the grain they grow; fisherman are able to sell their catch every day and reduce spoilage and waste by locating customers; health workers remind AIDS patients to take their daily medicine; day laborers find job opportunities; Africans have an affordable way to easily and quickly transfer money; health clinics can collect, measure, monitor and share health data; families share news of natural disasters, conflicts and epidemics; people learn to read and write to send text messages; election campaigns are monitored to prevent cheating; and new jobs are being created, such as small shops that sell, repair and charge cell phone handsets, as well as sell pre-paid phone credits.Cell phones too costly for many Africans
In some countries, for example, as few as 2 percent of the population can get access to a cell phone, say Mbiti and Aker.
In Niger the cost of a one-minute call can run 38 cents a minute — 40 percent of a household's daily income. The cheapest mobile phone available costs the equivalent of enough millet to feed a family of five for five days. About 300 million Africans live on less than $1 a day, and 120 million live on less than 50 cents a day, say the researchers.Critical infrastructure lacking
In sub-Saharan Africa, say the researchers, only 29 percent of roads are paved, and barely 25 percent of people have access to electricity. While it's efficient for a manufacturer to take customer orders via mobile phone, their production is limited by the lack of a reliable power source and access to markets.
Mbiti is an assistant professor of economics in SMU's Department of Economics. He is a 2010-2011 MLK Visiting Professor at Massachusetts Institute of Technology. Aker is assistant professor of development economics, Fletcher School and Department of Economics at Tufts. She is also a non-resident fellow, Center for Global Development, Washington, D.C.
SMU is a private university in Dallas where nearly 11,000 students benefit from the national opportunities and international reach of SMU's seven degree-granting schools. — Margaret Allen
Margaret Allen | EurekAlert!
Europe’s Demographic Future. Where the Regions Are Heading after a Decade of Crises
10.08.2017 | Berlin-Institut für Bevölkerung und Entwicklung
Scientists reveal source of human heartbeat in 3-D
07.08.2017 | University of Manchester
Whether you call it effervescent, fizzy, or sparkling, carbonated water is making a comeback as a beverage. Aside from quenching thirst, researchers at the University of Illinois at Urbana-Champaign have discovered a new use for these "bubbly" concoctions that will have major impact on the manufacturer of the world's thinnest, flattest, and one most useful materials -- graphene.
As graphene's popularity grows as an advanced "wonder" material, the speed and quality at which it can be manufactured will be paramount. With that in mind,...
Physicists at the University of Bonn have managed to create optical hollows and more complex patterns into which the light of a Bose-Einstein condensate flows. The creation of such highly low-loss structures for light is a prerequisite for complex light circuits, such as for quantum information processing for a new generation of computers. The researchers are now presenting their results in the journal Nature Photonics.
Light particles (photons) occur as tiny, indivisible portions. Many thousands of these light portions can be merged to form a single super-photon if they are...
For the first time, scientists have shown that circular RNA is linked to brain function. When a RNA molecule called Cdr1as was deleted from the genome of mice, the animals had problems filtering out unnecessary information – like patients suffering from neuropsychiatric disorders.
While hundreds of circular RNAs (circRNAs) are abundant in mammalian brains, one big question has remained unanswered: What are they actually good for? In the...
An experimental small satellite has successfully collected and delivered data on a key measurement for predicting changes in Earth's climate.
The Radiometer Assessment using Vertically Aligned Nanotubes (RAVAN) CubeSat was launched into low-Earth orbit on Nov. 11, 2016, in order to test new...
A study led by scientists of the Max Planck Institute for the Structure and Dynamics of Matter (MPSD) at the Center for Free-Electron Laser Science in Hamburg presents evidence of the coexistence of superconductivity and “charge-density-waves” in compounds of the poorly-studied family of bismuthates. This observation opens up new perspectives for a deeper understanding of the phenomenon of high-temperature superconductivity, a topic which is at the core of condensed matter research since more than 30 years. The paper by Nicoletti et al has been published in the PNAS.
Since the beginning of the 20th century, superconductivity had been observed in some metals at temperatures only a few degrees above the absolute zero (minus...
16.08.2017 | Event News
04.08.2017 | Event News
26.07.2017 | Event News
22.08.2017 | Health and Medicine
22.08.2017 | Materials Sciences
22.08.2017 | Life Sciences