cell phones
India and China... 'Underhyped?'

India and China have been two of the most talked about up-and-coming economies of the the last decade. Predictions of their economic clout have them listed as one of the world superpowers by 2050. But Thomas Friedman of the New York Times wonders if all of the predictions don't yet come close to identifying their real potential. After recent trips to both India and China, Friedman is asks, "[w]hat if these sleeping giants are just finishing a 20-year process of getting the basic technological and educational infrastructure in place to become innovation hubs and that we haven’t seen anything yet?"
As India and China continue to vie for the top position, innovation does seem to follow. Both countries have widespread access to basic connective technology and have the know-how to support it. And both are exploiting this skill set. In India, Friedman found local kiosk owners acting as bankers. Transactions are made using cell phones, and in a country where 15 million people begin using a cell phone each month, kiosk owners are welcoming the new business.
Innovative ideas like these are designed to "to close the last mile — the gap where government services end and the consumer begins," Abhishek Sinha, the founder of the cell phone banking system in India explains to Friedman. It is in this last mile that business and innovation are flourishing in India, and perhaps Friedman is right — maybe we haven't seen anything yet.
Cell Phones Ultimately Provide Irrigation Answer for Indian Farmers
Santosh Ostwal saw a problem and spent half a lifetime trying to fix it until he finally found the solution in an unlikely place — his cell phone. According to an article in The Economist , as a boy, Ostwal would watch his grandfather walk miles a day, back and forth, to turn on and off the irrigation systems for his crops. The walks were dangerous. Alone at night, farmers faced muggings, wild animals and snakes in what Ostwal saw as an unnecessary journey.
Ostwal knew that life could be easier for Indian farmers and began devising a way to set the water pumps on a timer. In an interview with The Economist , he explains the need that he saw.
There are 3.1 million official connections of water pump sets in Maharashtra alone. The all-India figure is more than 1 billion. While farmers didn’t mind too much with the drill of walking up to the farm to switch on their motor pump sets and then head back home, I found that there was a strong resistance to walk back all the way to the farm to switch off their pump sets. A lot of water and electricity would be wasted.
The road to success was long and difficult. It began with a cheap alarm clock to trigger the system, which, according to The Economist, provided half an answer. It was possible to use the alarm clock to start the water pumps, but it couldn’t then be used to turn them off. While it certainly decreased the amount of walking, it did nothing to improve the water waste or soil erosion damaging crop outputs.
His next solution was to tap into existing radio frequencies using a remote control. This proved to be immensely expensive and difficult to get clearances to work on. Finally, after investing so much money that Ostwal, his wife, and two children were forced out of their apartment, he realized that he could instead tap into the wireless phone network. Within 15 minutes, Ostwal got the result for which he had been searching for nearly two decades.
The cell phone solution, which he has dubbed Nano Ganesh, provides the perfect answer. It uses already existing, cheap technology to start and stop the water flow from anywhere, sparing the farmers their long, dangerous walks. It also prevents soil erosion from excessive watering, which increases crop output for the more than 10,000 farmers across India. In fact, the technology has proven so useful that it is now being used in Egypt and Australia. And it's such a simple fix that it could continue to spread and ease the lives of farmers around the world.
For a full podcast interview with Santosh Ostwal, click here.
Where Cell Phones Are Required for Class

Roughly 44 percent of women in Pakistan are literate, according to 2008 figures from the Pakistani government. After leaving school many women have little opportunity to practice and struggle to retain the ability to read and write. But a literacy program recently profiled by NPR is working to help these women regain their skills by using text messages, rather than textbooks.
This program, started by the Bunyad Foundation in partnership with UNESCO, targets prospective mothers with the idea that the reading and writing skills they acquire will help at home and at work, as well as improve the likelihood that their own children will be literate.
Women enrolled in the Mobile Based Post-Literacy Programme first attend a class where they become at least semi-literate. Then, they're given a cheap cell phone, which they use to practice their writing skills over text messages. After they complete the program they are given the option to buy their cell phone at a discounted price.
The program’s achievements go far beyond its original goals, according to NPR. In rural areas of Pakistan, where women are often barred from society by patriarchal tradition, these women are taking a risk. They can face contempt from their family, which may not see the value of female education. Regardless of how their families feel, these women are proud, says the NPR correspondent.
They are clearly proud of their achievement and it is no surprise to me that every single one of them has brought [a certificate of completion] with them to show to us, not the cell phone, which has been immediately given up to others in the family.
The UN and development experts agree that positive correlations exist between female literacy, lower birth rate, lower infant mortality rate, and increased health, which proves just how important literacy is. The women in this program may be taking a risk, but they are the pioneers in their community that could improve both their lives and shape those of future generations.
Long-Distance Divorce: For Migrant Tajiks, It's As Simple as a Text
Countries: Malaysia, Tajikistan

Technology, migrant labor, and patriarchy: three world systems that bring benefits to some have become a tragic combination for the Tajik women whose husbands are divorcing them remotely via text message, reports Radio Free Europe.
Tajikistan's struggling economy means that as many as one in seven Tajiks works abroad, often spending most of the year away. The country is also heavily dependent on the remittances that constitute half of its GDP. If migrant men decide to divorce their wives back home, some do so via cell phone by texting the word "talaaq," Arabic for "divorce." In Sunni Islam, saying the word three times is a recognized way for men to end their marriages.
Migrant Tajiks are largely beyond the reach of their country's laws. Neither text messages nor "talaaq" are legal methods of divorce there (unlike in other countries like Malaysia and Saudi Arabia, where courts have sanctioned the combination), but courts can't enforce this or other divorce proceedings — like alimony payments — on an absent husband.
These Tajik women are often left without homes or means of support when their marriages end. Respite may only come when they are fully integrated into the legal system — to match their immersion in the technology that has already deeply touched their lives.
Selling to the Poor, On Terms They Can Afford

Here's some conventional marketing wisdom: People who live on less than $2 per day simply aren't a worthwhile target demographic.
But recently, some Indian companies are challenging such ossified thinking with innovative products designed to fit the needs of India's poor, reports The Wall Street Journal:
Such inventions represent a fundamental shift in the global order of innovation. Until recently, the West served rich consumers and then let its products and technology filter down to poorer countries. Now, with the developed world mired in a slump and the developing world still growing quickly, companies are focusing on how to innovate, and profit, by going straight to the bottom rung of the economic ladder.
As the Wall Street Journal explains, Indian companies started to change the way they looked at impoverished consumers after they snapped up low-priced cell phones. Then companies began to design products that they hoped would find a similarly huge demand. Soon, Tata Motors released the Nano car, a small $2000 vehicle that made car ownership a possibility for a whole new slice of Indians since it sold for less than half the price of the next-cheapest car on the Indian market. Tata plans to export a more luxurious version of the Nano to Europe — providing an example of how the goods designed for local markets could increase global competition between Indian and Western companies.
There are several other examples of products redesigned with the poor in mind. Cheap battery-powered refrigerators are a huge help to families without electricity in their homes. The solar-powered cell phone base station won third place in The Wall Street Journal's Technology Innovation Awards earlier this year. And the introduction of mobile banking is revolutionizing banking and money transfers in rural areas via cell phones in many poor countries.
It's a newer way of thinking about poverty, and one driven by bottom-line concerns: How can firms sell the poor what they need now, rather than waiting until they have the money to buy what others already have?
Sending Money is Just a Text Away
Add banking to the growing list of things your cell phone can do.
A September special report in the Economist took a look at the expanding use of mobile banking in Africa and explained how it could play a large part in improving personal financial stability in the region. In essence, here's how it works:
You take your cash to a mobile banking agent and tell the agent that you want to send money to a friend or family member. They credit your mobile banking account. Once the funds are available, you transfer money by sending a text message to whomever you want. The recipient then goes to his or her local agent to access the transferred money. People can even pay utilities or pay for cab rides with the service.
There is a strong correlation between the increase in a developing nation's cell phone use and it's rise in GDP, notes the World Bank. Mobile money offers similar effects on the individual level. A study by researchers at the University of Edinburgh found that users of the Kenyan mobile money service M-PESA have seen a 5 to 30 percent increase in their incomes since the service began in 2007.
One reason for this is the increased convenience that M-PESA offers. Like many men in Kenya, Nairobi resident David Omuchilili used to have to take time off from work and pay for travel costs to deliver money to his family, whose village is nearly 200 miles away. With M-PESA, he is now able to avoid the traveling and can be more available for work, as he explains to Business Week.
Mobile money transfers also offers a safer, more reliable way to send cash. Citizens without the means for traveling no longer have to take the risk of giving an envelope full of cash to a middleman — like a bus driver — and telling him where to deliver it. In the aftermath of the 2008 Kenyan election, M-Pesa was used to send money to those trapped by the rampant violence.
One thing is for certain. As mobile banking continues to grow in popularity and scale, users will find opportunities for better financial stability.
South Africa's New Weapon against HIV

Each day, one million South Africans get a text message that reads something like this:
Frequently sick, tired, losing weight and scared that you might be HIV positive? Please call AIDS Helpline 0800012322.
It's part of Project Masiluleke — which means “hope” and “warm counsel” in Zulu — a plan to use mobile phones to encourage South Africans to test for HIV. It is believed to be the largest mobile communication campaign for health promotion ever attempted.
South Africa has an estimated six million people infected with HIV, according to the United Nations. And almost 90 percent of South Africans have mobile phones with plans that include free “please call me” text messages.
Encouraging people to get tested is a challenge in a country where stigma and shame accompanies a positive diagnosis. Project Masiluleke will offer South Africans discretion and privacy to get tested, treatment options and counseling.
Initial results have been encouraging. During three weeks of usability testing in October, Project Masiluleke helped increase daily call volume to the National AIDS Helpline in Johannesburg by nearly 200 percent, according to National Geographic.
As CNET reports, "This isn't the first time cell phones have been employed in the battle against AIDS. In August, a catchy 'condom, condom' ringtone made its debut as part of a three-year ad campaign aimed at making condom use more socially acceptable in India."
Project Masiluleke is another good demonstration of how mobile phones can be used for the public good. Let's hope it encourages South Africans to take control of their health and pursue the care they need.
The Cell Phone Paradox
In some parts of Africa, cell phones are becoming essential tools for economic growth, bringing both information and prosperity. In the Democratic Republic of the Congo (DRC), however, cell phone technology is helping fuel a deadly, decade-long civil conflict that has sharply escalated in the past week.
There are plenty of examples of how cell phone technology benefits national economies. A 2007 study suggested that a country's economy grows 1.2 percent for every 10 percent increase in the number of cell phone users. An analysis from Niger reports that cell phones triggered a fall in grain prices and a 20 percent reduction in geographical differences in grain prices after they were introduced in 2001. The researcher concludes that cell phones allow grain traders to collect information about market prices without the time and expense of travel, allowing them to respond to market shifts cheaply and efficiently.
The war in the Congo, however, illuminates the dark side of this technological success. Part of the battle is over resources, including a rare mineral called coltan used to manufacture small electronics. Eighty percent of the world’s coltan is in the DRC, and the world's rabid demand for things like laptops and cell phones has made coltan extremely valuable.
According to OneWorld.net:
Armed militias from Rwanda, Uganda, and Burundi, along with local militias from the DRC, are exploiting most of the reserves and selling the product to multinational corporations that produce cell phones and other electronic devices.”
This battle over resources has led to rape, torture and death in the Congo. In introducing the history of this conflict, a reporter for The Independent admonishes, "No, this is not only a story about them. This — the tale of a short journey into the long Congolese war we in the West have fostered, fuelled and funded — is a story about you.”
Cubans Swarm to Cell Phones

In a span of just ten days, 7,400 Cubans signed new mobile phone contracts. On April 14, President Raul Castro lifted a ban restricting ordinary citizens from purchasing personal cell phones. The number of contracts is impressive, the BBC reports, considering that a cell phone in Cuba costs six times the average monthly salary.
Under Raul's brother Fidel, only government officials and people working for foreign firms were allowed to own cell phones. In addition to lifting the ban on personal cell phones, Raul Castro has lifted restrictions on DVDs, car rentals and other goods.
What more changes in Raul Castro's Cuba lie ahead?
The Future of the Internet in the Developing World

Want to know a surprising statistic? Approximately 3 billion people (about half the world's population) own cell phones. Even more surprising? More than half of those subscribers live in poor countries. The Economist offers a look at the role technology plays in the lives of those living poverty and the future of the internet in the developing world. However, the question remains: will this trend in cellular telephones be mimicked in the internet industry?
The article concludes that the internet isn't likely to hold the same hope as the cell phone industry for providing a global connection to the world's poor. This is due to both high costs and the unlikelihood that private enterprise will undertake the task. I might argue that this article underestimates the speed of technological innovation. It may just be a matter of time for an internet infrastructure based on optical-fibre lines to develop in such places as Central Africa. Who would have guessed the current reach of cell phones fifty years ago?
High-tech Leapfrog
In last week's print edition of The Economist, it is suggested that lavatories must come before laptops in the leapfrogging of technologies. The article suggests that most new technologies need to follow a traditional path when diffusing into emerging markets. Basic infrastructure is still a primary concern in these countries and the introduction of high-tech products does not directly address the core issues. "Most of the time, to go high-tech, you need to have gone medium-tech first." Cell phones may prove to be the exception of a rapid technological advance in the developing world.
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