Technology And Economic Development
Overview
In 2005 a small pilot scheme in Kenya set out to let microfinance customers repay their loans by text message. The customers had other ideas: they used it to send money to relatives, to store cash safely and to pay for things. The company redesigned the product around what people were actually doing with it, and mobile money became one of the clearest examples anywhere of a communications technology reshaping an economy.
This lesson looks at how mobile phones and internet connections change what is economically possible in developing countries, how they let services be traded across national boundaries and create whole new categories of work, and why the same technology that narrows some inequalities can widen others at the same time.
Objectives
- The links between communications technology and economic development in developing countries, including mobile phone banking and business use
- The role of communications technology in trade and investment across national boundaries, including new jobs and services
- The growing importance of communications technology in tackling inequality between and within communities
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Lesson Evaluation
Congratulations on completing the lesson on Technology And Economic Development. Now that youve explored the key concepts and ideas, its time to put your knowledge to the test. This section offers a variety of practice questions designed to reinforce your understanding and help you gauge your grasp of the material.
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Use this evaluation section as an opportunity to reinforce your understanding of the topic and to identify any areas where you may need additional study. Don't be discouraged by any challenges you encounter; instead, view them as opportunities for growth and improvement.
- M-Pesa, the widely studied mobile money service, was launched commercially in which country and year? A) Nigeria, 2003 B) Kenya, 2007 C) India, 2010 D) Bangladesh, 2012 Answer: B
- 'Leapfrogging' in the context of technology and development means: A) Moving production from one country to another to cut costs B) Skipping an expensive earlier stage of infrastructure and adopting a newer technology directly C) Copying a technology without paying for the licence D) Selling second-hand devices into a developing market Answer: B
- Which of the following best describes the 'usage gap'? A) People who live outside the range of any mobile broadband network B) People who own two or more mobile phones C) People who live within network coverage but do not use mobile internet D) The difference in data speeds between urban and rural areas Answer: C
- Business process outsourcing has become possible on a large scale mainly because: A) International air freight has become cheaper B) Undersea cables and satellite links made it cheap to deliver services across long distances C) Tariffs on manufactured goods were abolished D) Migration controls were relaxed worldwide Answer: B
- According to ITU figures for 2025, internet use in high-income countries compared with low-income countries was approximately: A) 94 per cent against 23 per cent B) 60 per cent against 50 per cent C) 75 per cent against 70 per cent D) 40 per cent against 35 per cent Answer: A
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