Improving Livelihoods and Incomes With Mobile Phones

Posted by KatrinVerclas on Apr 21, 2009

Telecom TV has a short report on “Market Intelligence: How Mobiles are Helping Farmers and Fishermen.” The reports covers KACE, the Kenya Agricultural Commodity Exchange. Of course, there is also a short segment on the famous fisherman of Kerala, studied in the seminal study by Robert Jensen that he conducted in Kerala from 1999 to 2001 in MIT's Quarterly Journal of Economics. The study definitively showed the increase in income for fishermen and decrease of consumer prices of fish upon the introduction of mobile phones.  The video is here.

Mira Slavova points out on her blog that the "availability of mobile phone communication, encouraged fishermen to make informed decisions about which port to land at and reduced the price dispersion among fish markets in different ports." She also notes that "behavioural changes and the welfare gains in Kerala were not the result of any subsidised mobile market information initiative. By contrast, the changes in Kerala were self-sustaining because they resulted from individual bhavioural adaptations to information availability."

KACE in Kenya is a commercial firm, founded in 1997, that uses ICTs for agricultural market price information. The short clip portrays Godrey Fwamba who collects prices from the local market traders in Nairobi. The price information is sent back via SMS to form part of the data stream of market and price information made available to farmers.

Mira Slavova again: "The role of enumerators is crucial for the successful implementation of mobile market information services. A dedicated network of extension workers is capable of collecting comprehensive price and availability information from local markets, thereby enabling ICT solutions to deliver relevant information with potential for changing the behaviour and choices of market suppliers"

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