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Research concerning mobile phones and financial services in developing countries has undergone rapid growth in recent years. This paper seeks to improve understanding of this expanding research area and in so doing consider the potential for mobile phone applications for the delivery of financial services for the poor. The current state of knowledge is assessed by reviewing the content of 43 research articles drawn from both peer-reviewed academic journals and non-peer reviewed studies and other practitioner-orientated sources. A framework is developed that categorises and analyses the research according to a socio-technical spectrum, identifying levels of analysis and differentiating research activity according to a lifecycle model that incorporates financial needs, design and applications, adoption and adaptation, and impact. Positive aspects of research to-date are identified, most noticeably the high level of practitioner involvement in research publication and the strong links that have been forged between the mobile phone industry and the research community. This, however, has also caused research to become too narrowly defined and largely a- theoretical. Hence, research weaknesses and gaps are also identified suggesting that issues relating to financial needs and the measurement of impacts have been comparatively neglected, whilst application design and adoption have received greater attention. Emphasis tends to be on devices and new ways to deliver services, but ignores the broader context of financial services for the poor and tends to be technology-led. In order to correct this imbalance in research, the paper identifies key research gaps relating to concepts, methodologies, issues addressed and evidence presented and provides pointers to future research directions.

 

La telefonía móvil reduce la “distancia” entre los pequeños productores y las organizaciones locales, facilitando y haciendo más efectivo el intercambio de información y conocimientos. A través del uso del teléfono móvil, las redes sociales se fortalecen, los productores se empoderan y el costo de acceso a la información se reduce. Son inmensas las posibilidades que ofrecen los mensajes de texto SMS (hasta 160 caracteres) para compartir información a bajo costo y en forma instantánea. Con base en la información reunida durante mi participación en dos foros de la FAO sobre telefonía móvil y la revisión de algunas experiencias desarrolladas en África, Asia y América, sugiero una estrategia mediante la cual los pequeños productores podrían mejorar la comercialización de sus productos agrícolas al hacer un empleo efectivo de los mensajes de texto (SMS).

The paper reviews roughly 200 recent studies of mobile (cellular) phone use in the developing world, and identifies major concentrations of research. It categorizes studies along two dimensions. One dimension distinguishes studies of the determinants of mobile adoption from those that assess the impacts of mobile use, and from those focused on the interrelationships between mobile technologies and users. A secondary dimension identifies a sub-set of studies with a strong economic development perspective. The discussion considers the implications of the resulting review and typology for future research.

This paper focuses on how this intermingling of lives and livelihoods, as mediated by the mobile phone, figures into the micro-processes of economic development. It neither broadly elaborates the core contributions of mobile phone use to economic development (synchronizing prices, expanding markets, reducing transport costs, etc.), nor suggests that one kind of mobile use is more important than another. Instead, it argues simply for a perspective on work and on livelihoods that is broad enough to account for (and perhaps even take advantage of) the social processes surrounding these activities. Analysts, policymakers, and technologists interested in the application of Mobiles for Development (M4D) should not ignore the way mobiles blur livelihoods and lives; the developmental and nondevelopmental uses of the mobile are not in competition, nor are they always distinguishable. Instead, the uses of mobiles for developmental and non-developmental purposes are often interrelated and sometimes mutually reinforcing. The social functions of the mobile (in matters of connection and self-expression) are helping drive its widespread adoption, and these same functions inform the very behaviors that make the mobile a tool for economic development.

Cell phones are quickly transforming markets in low-income countries. The effect is particularly dramatic in rural areas of sub-Saharan Africa, where cell phones often represent the fi rst development in telecommunications infrastructure. The twelve million residents of Niger, a landlocked country in West Africa, had 20,000 landlines—an estimated 2 landlines per 1,000 people—when mobile phones were fi rst introduced in 2001. Now Niger has almost 400,000 cell phone subscribers. Although the country still has the lowest rate of cell phone adoption in sub-Saharan Africa, cell phone coverage has had important implications for grain markets and hence welfare in the country.

This report explores the ways in which non-
governmental organizations (NGOs) and
other groups deploy and use mobile
technology in their work to help solve some
of the world’s greatest problems. This study
is not meant to be exhaustive or definitive,
but rather to provide a view into how a
number of organizations are using mobile
technology to achieve social impact. The authors
selected case studies that enabled an
exploration of significant innovations,
opportunities, and emerging trends, as well
as the obstacles, in the use of mobile
technology to advance social goals.

Mobile telephony will be the world’s first ubiquitous communications platform and
is getting there faster than anyone expected. Its major path of growth is now in the
global South where the mobile is not just a phone but a global address, a transaction
device, and an identity marker for hundreds of millions of poor people. is holds
unprecedented opportunity for media in developing countries to engage their core
audiences more deeply, reach new audiences on the edge of their current footprint,
and provide interactive and customised information services that are both profitable
and life-improving. But the opportunity is also a threat to traditional media, just
as the Internet has been – and on a larger scale in developing countries. If media
don’t address the mobile as a viable information platform others will, and within the
space of a few years media players there will have lost a large measure of their market
share, ‘mind share’, and standing in society at large.
mobile

The ubiquity of the mobile phone in Africa, the accessibility, the usability and crucially, the
bottom-up nature of its growth, has challenged the traditional ICT for development analysis.
People with very little income are prioritising mobile phones and airtime, clearly convinced of
the value to their lives and livelihoods. People who are traditionally the targets of development
aid are mobilising themselves not only to access mobile phones but innovate new functions
and applications which meet their particular needs.1
But beyond the excitement about the potential for mobile phones some voices of caution are
emerging, highlighting gender differences in access and control, for example, or the tendency
for social and economic hierarchies to be reinforced. There is also recognition that the value of
projects using mobile phones, as with any other ICT, can only be as strong as the quality and
appropriateness of the content shared.
There are several examples of pilots and services using mobiles for development or social
change in Africa, though the group of champions is still fairly small. However, a review of
the literature shows some unique and powerful factors which point to mobiles as a key tool
in enhancing the communication capacity and information access of poor and marginalised
communities across Africa. Most of the projects and pilots that do exist grew out of creative
and innovative processes of matching opportunities to needs, so it seems that an understanding
of what mobiles can do, and a review of the types of support and advice out there for people
wanting to use them, could really enhance planning of all types of development activities and
relationships.
Given this situation, Plan Finland commissioned this research into the potential value of mobile
technologies to the type of child-centred community development work to which they are
committed. While the nature, scope and scale of any work involving mobile technologies
will depend entirely on the context, stakeholders and development objectives, this guide
provides:
• an overview of relevant and innovative examples of how mobile telephones have
been successfully integrated into development projects and processes; and
• a three stage process to help Plan staff and other development practitioners identify
the key social, economic and technical factors and issues they need to consider when
planning to use mobile technologies.
The information provided and analysed here is derived from a literature review and interviews
with people in the field. A list references is provided at the end of this guide. It is hoped that
this blend of examples, learnings and reflections will support Plan’s staff and partners to make
well-informed decisions about integrating mobile technologies into their work.

Use of information and communication technologies for international development is moving
to its next phase. This will require new technologies, new approaches to innovation, new
intellectual integration, and, above all, a new view of the world’s poor. The phase change from information and communication
technologies for international
development (ICT4D) 1.0 to ICT4D 2.0 presents
opportunities for informatics professionals
and offers new markets for ICT vendors.
It also brings new challenges to our established methods
of working and emphasizes the need for new expertise
and new worldviews. Harnessing digital technologies in
the service of some of our world’s most severe problems
requires understanding these changes. Before proceeding,
though, we must ask why we should give priority to
ICT application for the poor in developing countries.

When information is limited or costly, agents are unable to engage in optimal
arbitrage. Excess price dispersion across markets can arise, and goods may not be
allocated efficiently. In this setting, information technologies may improve market
performance and increase welfare. Between 1997 and 2001, mobile phone service
was introduced throughout Kerala, a state in India with a large fishing industry.
Using microlevel survey data, we show that the adoption of mobile phones by
fishermen and wholesalers was associated with a dramatic reduction in price
dispersion, the complete elimination of waste, and near-perfect adherence to the
Law of One Price. Both consumer and producer welfare increased.

id21 insights is published 10 times a year and is online at www.id21.org/insights. Readers
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acknowledged
and informed. To subscribe, email insights@ids.ac.uk with your name and
address. id21’s website, www.id21.org, offers free access to over 4,000 research highlights
on development policy issues including health, natural resources, education and more. This issue focuses on micro-entrepreneurs in Nigeria, mobile ladies in Bangladesh, unequal gender relations in Zambia, getting beyond the three billion mark, mobile banking and poor households in Jamaica.

The positive implications of landline telecoms infrastructure and, more recently, of mobile communications on
economic growth in the developed world have long been acknowledged, with numerous studies analysing the
issue. Now that most of the developed world has reached high penetration levels of mobile phones, both current
growth patterns and future projections suggest that virtually all of the mobile industry’s new customers in the
coming years will come from developing countries. In fact, as of 2007, there were more mobile customers in
developing countries than in the entire developed world (ITU).
What impact are mobile phones having on developing countries and are user experiences and overall impacts
unique or similar to those of developed countries? While it might seem intuitive to just extrapolate from the results
of earlier studies in developed countries, the developing world is in fact leap-frogging the developed world when
it comes to mobile communication and its many uses. The implications of this technology on daily life in
developing countries appear to be more far-reaching than they were in the earlier developed country rollouts. For
example, studies have demonstrated that mobile technology is driving improvements in social links, the creation
of social capital, improved market information flows and productivity, as well as increases in GDP and Foreign
Direct Investment.
This report surveys recent research and highlights the top studies in this area based on content, relevance,
originality and credibility. While it is not an exhaustive and scientifically developed list, it illustrates the work that
we feel is most important at the moment and highlights key conclusions on the impact of mobile technology in
developing countries.
Further, while the existing research is valuable in understanding the impacts, the literature is still limited in its
coverage and scope. We therefore recommend additional research to expand evidence and knowledge, particularly
with respect to basic economic studies, prospective applications and the needs of users around financial services.
We also call on stakeholders such as mobile operators, governments, industry groups, foundations and
development organisations to play their part in improving information sharing, increasing research and driving
developments in these countries.
Finally, we provide information on additional research on impacts and policy issues, as well.

Internal control systems allow agricultural cooperatives
to monitor the growing practices of their members, ensuring
adherence to various standards for quality, and for meeting
external certification requirements. In this paper, we present
the motivation, design and evaluation of an automated mobile
data collection, evaluation and reporting tool for internal control
at a coffee cooperative. Our design goals were to improve the
efficiency of this process, and to increase the accountability of
various stakeholders. Based on a three-month pilot deployment,
we have demonstrated a 30% reduction in inspection time and
71% reduction in evaluation time, compared to the earlier paperbased
approach, which relied on several manual data collection
and information processing steps. We also present the results
of a qualitative evaluation of the system, including real field
experiences and the perceived benefits and drawbacks of the
automated system from the perspective of inspectors, farmers
and other stakeholders.

In this paper we detail the synergies we have observed be-
tween the features and limitations of mobile phones, and the
usability and accessibility requirements of rural developing
world users. This includes support for sequential interac-
tion, multimedia input and output, asynchronous messag-
ing and a universally familiar numeric keypad. However,
we argue that the WWW as currently conceived may be an
inappropriate model for delivering mobile information ser-
vices in this context. We highlight a number of tensions we
have observed between the traditional web model, and the
design synergies that we have uncovered. To demonstrate
an alternative framework, we describe CAM | a platform
for delivering mobile information services in the rural devel-
oping world. Supporting scripted execution, media-driven,
tangible interaction as well as an online usage model, CAM
is uniquely adapted both to rural accessibility requirements
and the inherent capabilities of mobile phones. By learning
from the CAM design, we can either improve the design of
existing mobile web standards and services, or implement a
more appropriate framework altogether.

What do you need to facilitate investment in mobile telecommunications?

Mobile telecommunications has become the silver bullet du jour of international
development. And, beyond the hype and alongside some exacerbation of inequities, it
can be seen delivering both social and economic development outcomes (Heeks &
Jagun 2007). Yet at least half the world's population lack access to this development
tool (Kelly 2007).

Many developing country governments and developing agencies are focusing on extending telecommunications services into rural areas, as they seek to alleviate poverty, encourage economic and social growth, and overcome a perceived ‘digital divide’. However, relatively little is known about how rural communities benefit from modern telecommunications services and what impact it is having on their lives and livelihoods. This paper endeavors to redress the balance, by examining the role of mobile telephones in sustainable poverty reduction among the rural poor.

Collaboration supported by mobile devices has brought advantages for users and also challenges for software developers and mobile computing devices manufacturers. Every kind of device used to support mobile collaboration has strengths and weaknesses depending on the work context where it is used. The idea is to use a specific device when advantages are most relevant and disadvantages do not affect team work. This paper proposes an evaluation framework that helps developers to identify the type of device that can be used to support mobile collaboration in specific work contexts. In addition, three mobile collaborative applications are analyzed using the evaluation framework. The results of the analysis are then compared with the empirically observed suitability.

This HPG Briefing Paper reports on a study into
the role that remittances play in crises. This
work explored how affected people use
remittance income to survive and recover from
crises, the effect that crises can have on
remittance flows and the way that humanitarian
responses consider the role of remittances. The
study was based on a review of relevant
literature, as well as detailed case studies in
Haiti, Pakistan, Somaliland, Sudan, Indonesia
and Sri Lanka. The study concludes that, while
remittances should not be seen as a panacea or
substitute for humanitarian action, there is clear
potential for humanitarian actors to do more to
explore the complementarities between
emergency relief and people’s own efforts to
support friends and family in times of crisis.

In much literature on social capital, it has been a widely held assertion that networks of informal relations is beneficial for the development of local regions as well as larger nations (Fukuyama 1995; Putnam 2000; Woolcock 2001). Regional areas with a well developed network of informal connections and communities are believed to produce benefits leading to increased regional competitiveness, economic growth and prosperity. The last decade mobile communication tools have rapidly saturated several emerging markets in Asia and Africa (Donner 2008; Kumar and Thomas 2006). As a tool that is mainly used to connect individuals across space and time; mobile phones appears to have qualities that can spur social capital development for private persons as well as enterprises and larger regions. In line with this, some recent studies have found support the argument that mobile phones is beneficial for regional and local development (Goodman 2007; Jensen 2007). Still, others has been more reluctant and critical towards the “network effect” coming out of mobile phone usage among small enterprises (Chowdhury 2006) and some studies has found that private ties, rather than business relations are strengthened through the implementation of mobile phones (Donner 2004).
This paper addresses the question of mobile telephony usage and local development by looking at how mobile voice dialogues and SMS (text messages on mobile phones) are used by small enterprises in Malaysia. More explicitly, the study explores the kind of relations that are supported by these tools during the work day, as well as their physical proximity and perceived importance for business development. The study is based on in-depth studies of 12 small enterprises (between 5 and 20 employees) operating within agriculture, retail and financial services in the Selangor district. The paper presents initial findings, indicating differences in mobile phone usage between the three sectors, and highlighting general trends cutting across all sectors. Methodologically the study draws on quantitative social network techniques (to map mobile calls and SMS messages during a week), as well as qualitative interviews with managers and a sample of employees in the enterprises.

Mobile technology lets the users implement several strategies in order to minimize their spending. This paper documents the study of the determinants of the use of different strategies for a sample of users surveyed during May 2007 in developing countries as Argentina, Brazil, Colombia, Mexico, and Peru. This survey is focused in low income people and includes about 5500 people. The methodology used includes two steps. First, the study of the determinants of use of each strategy by means of a probabilistic model. It was found that educative level and age are important determinants of the use of the alternatives. Second, the use of a Poisson regression model to capture the intensity of use of these set of strategies. The findings differ among countries.