HARNESSING INTERNET CONNECTIVITY TO ALLEVIATE POVERTY: EVIDENCE AND APPROACHES

Abstract

This paper explores the transformative potential of internet access, primarily through mobile phones, in alleviating poverty among the world's Bottom of the Pyramid (BoP) population. With nearly two billion BoP individuals having access to mobile phones, the impact of information and communication technologies (ICTs) on their livelihoods becomes a crucial subject of investigation. Studies have delved into the reasons behind mobile phone usage, the economic commitment of users, and the subsequent effects on income and poverty levels. For instance, a Peruvian study revealed a significant 19% increase in household income among internet users compared to non-users. Similarly, a comparative study in Kenya documented reduced poverty levels over five months in a village with free mobile and internet access. Despite these promising findings, many developing nations have yet to consider mobile phone and ICT access as key poverty reduction tools. This paper scrutinizes whether governments in developing countries should play a more active role in providing free or subsidized access to ICT services for impoverished households. It begins by highlighting the importance of the internet, its adoption through mobile phones, and its far-reaching impacts. Subsequently, it reviews existing research on ICT use and its influence on poverty. The paper then outlines barriers to internet adoption, profiles the offline population, and analyzes the feasibility of achieving universal internet access. Finally, the paper proposes a framework for ensuring equitable access and effective utilization of ICT for diverse needs, along with a plan of action for governments and industries to expand internet access and promote inclusivity in the knowledge society.