Micro, Macro and Scaling-Up Effects

This chapter covers much of the work that has been done on the economic impact of mobile phones in developing countries. It covers micro, macro and the transition that is sometimes made from the former to the latter level (that is, scaling-up). Research at the micro level is relatively plentiful and is concerned mainly with the improved communication and information in various markets, that mobile technology can help to bring about. Unfortunately, however, few of the studies at this level specifically refer to the poor and there is consequently a rather glaring research gap to be filled. There are, of course, exceptions to this general pattern and these tend, encouragingly, to reveal something of a bias in favour of the poor (such as for example the greater benefits that accrue to this group in the case of Village Pay Phones (VPPs) in Bangladesh. Similarly, at the macro level, three out of the four studies that were identified find a greater effect of mobile phones on growth, the lower is the presence of fixed-lines in a country. This favours the poorer countries, where the older technology tends to be at least in evidence. But here, as at the micro level, there is too little evidence to reach any firm conclusions. The final part of the chapter deals with three cases of successful scaling up of projects that began on a small scale. Yet, in this area too, scant attention is paid to the impact of the process on the poor, suggesting still another area for further research.