“Broadband gap” hinders economic growth in least developed countries

October 21, 2009

Broadband Internet is an essential tool to connect participants in global business. It allows for open communication, trade and marketing. Yet in the least developed countries Internet access in any capacity is limited and where available is often unreliable and slow. Most African countries rely on dial up Internet connection, which is a much less efficient tool. This limits their ability to participate competitively in e-commerce, presenting a challenge for economic growth.

The UN Conference on Trade and Development recently published a report documenting the effects of the global economic downturn on developing countries. While some technologies are continuing to gain wider use, such as mobile phones, there is a yawning “broadband gap” as developed countries continue to increase broadband access while developing countries lag far behind. Currently a person living in a developed country is 200 times more likely to use broadband Internet than someone living in a least developed country.

Mali is one of the least developed countries and less than 1 percent of the population had access to the Internet in 2008. Dougnon Levy, Director of the Centre Local d’Information et de Communication (Community Learning and Information Center) in Djenné, Mali, describes how the “broadband gap” affects Malians. “We have enormous difficulty accessing the Internet because it is too expensive especially for Malians in the interior [rural areas] of the country. Often there isn’t even the possibility of connecting to the Internet. The consequences of this inaccessibility are enormous. First that means that we are behind others in our training and communication. We are also less informed, so we spend too much time on each activity.”

An earlier report by the UN Conference on Trade and Development explains that improvements in Information and Communication Technology (ICT) brings improved performance and market share, particularly if the technological improvements are paired with improved skill by workers. This demonstrates the importance of Internet access for substantial economic growth. The emphasis on skill building along with access reveals a broader issue in the broadband gap. Not only are businesses lagging in infrastructure, they also lack skilled workers to use accessible technology.

High speed Internet is directly beneficial for companies, but it is also an important learning tool for students. For most efficient use, Internet must be accessible to many sectors of society. Improved access to broadband contributes to business growth and allows students as future entrepreneurs and technicians to develop skills to effectively participate in the global marketplace.

Mobile phones are more accessible to developing countries due to pre-paid plans designed for low-income users. 88 percent of mobile phone users in developing countries use such plans, and mobile phone access continues to increase despite the global economic downturn. This demonstrates the readiness of these communities to take advantage of technology available to them. Mobile phones can be used to facilitate economic growth by connecting formerly isolated communities to information and business opportunities. Yann Burtin is a senior operations officer for the Information and Communication Technologies Department of the World Bank Group, which has projects in place to address issues of technology access. He explains, “ICTs, such as radio, telephone, and email, can be of great value in bringing people together, bridging geographic distances, and providing relevant information to the poor.” Just as affordable mobile phones have become essential business tools in developing countries, affordable broadband is an important tool for economic growth.

Already Africans are taking advantage of the limited Internet sources available to them. Dougnon Levy explains, “Internet is very important for Malians because it permits them to access the world. With the Internet, communication has become easier. Local Artisans in Djenné are now able to sell their goods on the Internet.”

The inaccessibility of broadband is a pressing issue for least developed countries. Without fast Internet, business and education are hindered. Yet given the spread of mobile phones and the quick adaptation of local businesses where Internet is available it is clear that these countries are ready to take advantage of technological improvements and increased access.