Since Afghan Wireless Communication Company launched services in 2002, one of its central goals has always been to help build a better Afghanistan by enabling connection and communication among all Afghans.
Today, this goal is more important than ever, as numerous studies have revealed that connectivity, particularly in the form of Internet access, can provide significant economic benefits to developing nations and economies that can include helping to kick-start growth, boost productivity, and create unprecedented opportunities.
Following are some of the main benefits that increased Internet access can bring to developing economies, according to Deloitte, a leading global consulting and advisory firm.
Greater productivity and efficiency
The increased access and exchange of information that the Internet allows can help both employees and companies to become more productive and allow markets to function more efficiently. When information and data can be sent via the Internet and even through mobile phones, travel time and costs are reduced, organizational efficiency is increased, the spread of ideas is accelerated, and new research and technologies can be accessed more easily.
Furthermore, this boost in productivity and efficiency is not restricted to just a few economic sectors. A variety of sectors can benefit from increased mobile and Internet connectivity. For example, improved Internet access in the agricultural sector could help to provide farmers with essential, up-to-date information on critical issues such as weather conditions, disease control, and new techniques for maximizing crop yields. They could also enable better systems for tasks such as livestock tracking. Moreover, easier access to market and pricing information could help small-scale farmers to avoid costly intermediaries and instead access the markets directly themselves. Given that about 40% of the labor force in developing economies works in agriculture, these benefits to productivity could impact a large number of people.
Better support for entrepreneurship and innovation
Small and medium-sized enterprises (SMEs) are a major force in developing economies, and they are often the ones who can benefit the most from increased access to the Internet. The Internet allows SMEs to overcome the constraints of distance and other barriers to market entry, opening up broader markets and expanding the potential customer base. The financial impact of increased Internet access is striking, too: services such as online and mobile banking help SMEs to reduce the often high cost of traditional banking, to pay their suppliers more easily, to save time in performing banking transactions, and to store small amounts of money safely when needed.
In terms of innovation, expanded Internet access has been driving the creation of technology hubs across developing economies for many years, and these hubs in turn help new industries, innovators, and entrepreneurs to emerge and create significant value by increasing demand and opportunity for skilled labor and associated wages.
Higher employment levels
In developing economies, greater Internet access leads to more jobs, both directly and indirectly. Direct jobs are created by new technology-based enterprises demanding more skilled labor. In addition, indirect jobs are created through the wider ecosystem of companies that spring up to serve and support these technology-based enterprises, such as network maintenance providers or skill-based services such as accounting and advertising. What is especially important to note here is that without the Internet, these jobs would simply not otherwise be available. In addition, Internet access helps to increase worker autonomy and responsibility, as well as to bring about a shift toward higher-skilled labor and a greater emphasis on a knowledge-based economy.
Increased economic growth
When productivity and innovation increase throughout the economy as a result of improved Internet access, additional economic growth quickly follows. According to a recent study of developing economies by the World Bank, a broadband penetration increase of just 10% translates to a per capita GDP growth of 1.3%, which could have the effect of significantly increasing personal income levels. Deloitte further estimates that expanded Internet access could spark an average per capita increase in income of about 15%, or between $450 and $630 per year for individuals living and working in developing economies.
A reduction in extreme poverty
As a result of these potentially higher incomes, increased business and job opportunities, as well as expanded access to information, the Internet could have the power to make a critical impact on extreme poverty levels in developing economies. A number of studies estimate that extended Internet access could reduce the number of individuals living on less than $1.25 per day by up to one-third, lifting between 120 and 160 million people out of extreme poverty. The effects would have the most transformative impact on rural communities, which would additionally see increased employment opportunities, expanded access to wider markets, and an extended range of business services due to mobile and Internet-based applications.