Although the Internet is the backbone of the knowledge economy, only one out of every three people have online access.
Facebook, acting for Internet.org, commissioned Deloitte to assess the economic and social impact of extending Internet access in the developing world, and found that the internet offers unprecedented opportunities for economic
growth in developing countries.
In developing countries where agriculture represents on average 40% of economic activity, mobile telephony and the internet enable access to market pricing information, weather forecasts, disease control information and livestock
tracking.
The positive effects are potentially greater than in developed economies due to the reduced quality of physical and administrative infrastructure to support the functioning of markets. Small and medium size enterprises (SMEs) in
developing countries are amongst the biggest winners from receiving access to the internet.
By reducing transaction costs and the constraints of distance, throughout the world the internet has reduced barriers to market entry and allowed SMEs to innovate and reach a broader market.
Deloitte estimates that the resulting economic activity could generate $2,2-trillion in additional GDP, a 72% increase in the GDP growth rate, and more than 140-million new jobs.
A number of policy and business actions aimed at reducing administrative burdens for SMEs and supporting investment can complement the success of these applications to unlock further economic benefits and support the
development of local businesses.
Access to the internet can improve health conditions by reducing the incidence of diseases through better information for both patients and health practitioners. In addition to extending access to medical information, the internet has
the potential to improve medical behaviours for patients and healthcare professionals as well as the delivery of medical services.
Internet-enabled devices are already transforming the way healthcare professionals operate in developing countries by allowing remote diagnosis and more efficient ways of treatment.
The internet also plays a pivotal role in extending access to educational resources and in accelerating knowledge sharing. Access to the internet improves access to education by providing students with learning opportunities and
materials online.
Deloitte estimates that by extending internet penetration another 640-million children may be able to access the internet and the wealth of information it makes available while they study.
ICT technologies have long been recognised for promoting and facilitating social inclusion, such as the participation of individuals and groups in society’s political, economic and societal processes. One way in which ICT technologies
expand inclusion is through effective public services that rely on ICT infrastructure and through digital inclusion, such as the ability of people to use technology.
These three aspects are deeply intertwined, and they span dimensions as diverse as disaster relief, food security, and the environment, as well as citizenship, community cohesion, self-expression and equality.
Governments should recognise the importance of the internet in complementing the delivery of healthcare, education and other social services and should promote investment in the development of innovative solutions in these areas
targeted to their communities.
Internet.org is an international partnership that hopes to harness resources around the world to understand and solve the challenges of this connectivity gap.
