The impact of telecoms access on rural livelihoods

1. The impact of telecoms access on rural livelihoods DFID KaR study in India (Gujarat), Mozambique & Tanzania – Professor David Souter, Strathclyde University DSA conference, Milton Keynes, 7 September 2005 This document is an output from a project funded by the UK Department for International Development (DFID) for the benefit of developing countries. The views expressed are not necessarily those of the DFID.

2. To identify the impact of telephony (and other ICTs) on the livelihoods of people in rural communities in three research countries built on sustainable livelihoods approach Field survey of about 750 householdsper country, 2300 in all based on: clustered sampling focus group discussions extensive (one hour) individual questionnaires Focus on household heads and senior household members Purpose and methodology KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

3. Funded by: UK Department for International Development UK research team: ict Development Associates ltd (research coordination) Gamos Ltd (data analysis) Project Management: Commonwealth Telecommunications Organisation National research partners: India (Gujarat): Indian Institute of Management (Ahmedabad) Mozambique: Eduardo Mondlane University Tanzania: Commission on Science and Technology (COSTECH) Organisation of study KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

4. Research locations Tanzania India (Gujarat) Mozambique KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

5. Research samples KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

6. Research samples KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

7. ICT ownership and use

8. Frequency of use of ICTs - Tanzania KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

9. Frequency of use of ICTs - India KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

10. Telephone ownership growth rates KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

11. Distribution of telephone use India Tanzania Mozambique KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

12. Frequency of use of telephone types – India KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

13. Frequency of use of telephone types - Mozambique KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

14. Frequency of use according to telephone type and economic status Kiosks Mobile phones KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

15. Expenditure on telephony by economic status KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

16. Information and communication flows

17. Confidence in source of information - Tanzania KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

18. Importance of types of information and communication - India KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

19. Most used means of access - India KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

20. Weighted importance of means of communication - India KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

21. Importance of types of information and communication - Mozambique KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

22. Most used means of access - Mozambique KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

23. Weighted importance of means of communication - Mozambique KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

24. Perceived value of telephony

25. Primary, secondary & tertiary uses of telephony – Tanzania – telephone users KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

26. Highest valued benefits KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

27. Perceived benefits of telephony for livelihoods categories – three countries KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

28. Perceived benefits of telephony for livelihoods categories - Mozambique KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

29. Perceived benefits of telephony for livelihoods categories - Tanzania KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

30. Value of social benefits by economic status KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

31. Value of human capital benefits by economic status KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

32. Value of economic benefits by economic status KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

33. Perceived impact of telephony on aspects of life – summary of indicators KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

34. Valuation of economic benefits by educational status & frequency of use KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

35. Valuation of social and knowledge benefits by household occupation Social benefits Knowledge KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

36. Valuation of economic benefits by household occupational group KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

37. Perceived impact of telephony on financial capital - Tanzania KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

38. Impact of telephony on other means of communication KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

39. Changes in perceived need to travel KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

40. Experience of Internet use KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

41. Expressed investment priorities - Mozambique KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

42. Selected overview findings

43. Overview findings - 1 • Understanding communication flows is crucial to understanding the impact of communication media: • what and why are people trying to communicate? • what communications means are most effective for delivering their objectives? • face-to-face communication is preferred for many communications • Different ICTs are used for different purposes • Telephony is differently valued for different purposes. Important factors seem to include: • degree of knowledge of interlocutor • saliency of circumstance • habituation to telephone use KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

44. Overview findings – 2 • The telephone is: • of most value in reducing high vulnerability (emergencies) • highly valued for sustaining social capital in the family • less highly (but significantly) valued for other social networking • significantly valued for saving financial capital • less significantly valued for obtaining new financial capital • of more economic value to those of higher economic status than to those of lower economic status • very little valued for increasing human capital (information and knowledge) KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

45. Overview findings - 3 • It is not clear to what extent use of telephony represents additional expenditure or substitutes for existing expenditure: • substitution expenditure is where the telephone is used instead of an established alternative (e.g. travel): the impact on overall expenditure is likely to be neutral or there may be cost saving • additional expenditure is where the telephone is used to do something that would not otherwise be done: this is likely to increase overall expenditure KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

46. Overview findings - 4 • In a business context, the telephone is much more valuable (and valued) for saving money than for increasing earnings • In other words, it helps to reduce expenditure rather than to increase income • It is given low value as a tool for market-building • Higher status groups benefit more economically from telephony than lower status groups • Availability of the telephone may therefore tend to increase rather than decrease economic disparities between the advantaged and the marginalised within communities • Loss of the telephone is considered a significant factor: it is becoming a valued and valuable tool in this area, but not an essential one (as yet) except for a small high-volume user group KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

47. Overview findings - 5 • The telephone is regarded as of very little value for information-gathering • Broadcast radio is much the most important channel for general information such as news and weather • Face-to-face communication – with officials, business partners, peer groups and family members – is much the most important channel for specific information such as business-related information • ICD strategies should focus resources on enhancing established communication priorities rather than changing the technological basis for dissemination KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

48. Overview finding - 6 • The key uses of the telephone are in areas where it adds value that is not matched by other communications media, i.e. • immediacy • interactivity • communications at a distance • There is a significant group of higher status individuals that makes more intensive use of the telephone: these tend to be more educated, more prosperous, in higher status jobs • The Internet is not being used significantly by the population represented in the sample KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

49. Key policy implications • Strategies for developmental use of telephony should focus on its strengths – emergency access and social networking • Strategies for information dissemination should focus on communication flows that are used and valued by people for this purpose – broadcasting and face-to-face communication with opinion leaders and information intermediaries • The Internet does not yet offer a significant opportunity to impact on communications and information behaviour KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005

50. Contact points • David Souter • Visiting Professor, Strathclyde Business School • Managing Director, ict Development Associates ltd • david.souter@runbox.com • Nigel Scott • Director, Gamos Ltd • nigel@gamos.org KaR research project – Economic Impact of Telecommunications on Rural Livelihoods and Poverty Reduction Development Studies Association conference, Milton Keynes, 7 September 2005