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The world is witnessing a new dawn with regard to the potential of information and communication technologies (ICTs) to contribute in the fight against poverty. For the first time, there are now realistic opportunities for inhabitants of remote locations in low-income countries to get connected via ICTs. Farmers, fishermen as well as entrepreneurs in urban areas are rapidly adopting mobile phones as a key tool to advance their commercial activities, and some poor people are finding new livelihoods on the back of this trend. Against this background, the Information Economy Report 2010 focuses on the nexus of ICTs, enterprises and poverty alleviation. Whereas the knowledge base needs to grow considerably, the evidence presented in this Report suggests that more attention should be given by policymakers and other stakeholders to this new set of opportunities.

The Report is organized into five chapters. Chapter I introduces a conceptual framework for the analysis that follows. Chapter II reviews recent connectivity and affordability trends to gauge the degree of access and uptake of different ICTs among the poor. Chapter III turns to the role of the poor in the production of ICT goods and services (the ICT sector). In chapter IV, the focus shifts to the use of ICT by enterprises, with emphasis on those that matter most for poor people, namely small and micro-enterprises in urban and rural areas. Finally, chapter V presents the main policy implications from the analysis.

Informational challenges—absence, uncertainty, asymmetry—shape the working of markets and commerce in many developing countries. For developing country micro-enterprises, which form the bulk of all enterprises worldwide, these challenges shape the characteristics of their supply chains. They reduce the chances that business and trade will emerge. They keep supply chains localized and intermediated. They make trade within those supply chains slow, costly, and risky.

Mobile telephony may provide an opportunity to address the informational challenges and, hence, to alter the characteristics of trade within micro-enterprise supply chains. However, mobile telephony has only recently penetrated.

This paper, therefore, presents one of the first case studies of the impact of mobile telephony on the numerically-dominant form of enterprise, based around a case study of the cloth-weaving sector in Nigeria. It finds that there are ways in which costs and risks are being reduced and time is saved, often by substitution of journeys.

But it also finds a continuing need for journeys and physical meetings due to issues of trust, design, intensity, physical inspection and exchange, and interaction complexity. As a result, there are few signs of the de-localization or disintermediation predicted by some commentators. An economizing effect of mobile phones on supply chain processes may therefore co-exist with the entrenchment of supply chain structures and a growing “competitive divide” between those with and without access to mobile telephony.