Mobile Cell Phones and Poverty Reduction: Technology Spending Patterns and Poverty Level Change among Households in Uganda

Author(s): Kathleen Diga

Completion Date: December 2007

Abstract: This paper examines the spending behaviour of households with mobile phones in rural agricultural Uganda and whether such strategies such as substitutions have affected the well-being of these community members.  According to the findings, rural households are willing to make sacrifices such as travel expenses and store-bought food budget in order to address the expenses of mobile phone services.  While gender inequality through exacerbated asset control and mobile phone inexperience drive further digital divide in this village, the proliferation of small businesses development encourages phone ownership for women.  Such strategies to afford a mobile phone or mobile phone services are undertaken to help facilitate long-term asset accumulation.  For development studies, the analysis recommends a revised form of development thinking in a growing knowledge economy.

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