Abstract. Information and Communications Technology (ICT) can reduce poverty by improving poor people's access to education, health, government and financial services. ICT can also help small farmers and artisans by connecting them to markets. It is clear that in rural India -as well as in much of the developing world-realization of this potential is not guaranteed. This paper outlines a simple model to explain why a digital divide may exist between rich and poor. Low-cost access to information infrastructure is a necessary prerequisite for the successful use of ICT by the poor, but it is not sufficient. The implementation of ICT projects needs to be performed by organizations and individuals who have the appropriate incentives to work with marginalized groups. Furthermore, grassroots intermediaries and the involvement of the community are identified as the key factors that foster local ownership and the availability of content and services that respond to the most pressing needs of the poor.
The poverty-reducing potential of ICTThe World Development Report 2000/01: Attacking Poverty identifies three priority areas for reducing poverty: increasing opportunity, enhancing empowerment, and improving security. Opportunity makes markets work for the poor and expands poor people's assets. Empowerment makes state institutions work better for poor people and removes social barriers. Security helps poor people manage risk. In light of current experiences in rural India and elsewhere in the developing world, it is apparent that ICT -defined as the set of activities that facilitates the capturing, storage, processing, transmission and display of information by electronic means [32]-can be utilized to support poverty reduction strategies. The use of ICT applications can enhance poor people's opportunities by improving their access to markets, health, and education. Furthermore, ICT can empower the poor by expanding the use of government services, and reduce risks by widening access to microfinance.
ICT projects for poverty reduction in rural IndiaAlthough most of the rural poor in India are isolated from the information revolution, there are several examples in rural India where ICT is used to contribute to poverty reduction in the areas of opportunity,
A Note to the Reader This booklet attempts to pick out some of the highlights of the book World without End: Economics, Environment, and Sustainable Development. As will be seen from the book's table of contents, which appears at the end of this booklet, the book's coverage is comprehensive. It details theoretical aspects of environmental economics, and it shows how these theories can be applied to developing countries, tropical forestry and agriculture, energy and industry, population and poverty, international trade, and the "global commons." It is hoped that this summary provides a flavor of the many issues that are discussed at length, often at a more technical level, in the book. The authors are grateful to Alfred Imhoff for his assistance in preparing not only this summary, but also the book itself. * If purchase order is used, actual postage will be charged. If payment is by check or credit card, postage and handling charges are $3.50 per order.
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