We review the state of information and communication technologies (ICTs) and their impact on agricultural development in developing countries, documenting the rapid changes that have taken place over the past decade. Although there remains a wide gap in access between rural and urban areas, the spread of mobile phones in rural areas has led to important changes in the agricultural sector. We find that access to mobile phones has generally improved agricultural market performance at the macro level; however, impacts at the micro level are mixed. Evidence regarding the impact of market information systems (MIS) delivered through mobile phones on farm prices and income is limited, but the evidence points to strong, heterogeneous impacts. Similarly, the rollout of extension programs though ICTs is still in an early stage, and little research is available regarding such programs’ impacts.
A key question in development economics is whether nutritional deficiencies generate intergenerational poverty traps by reducing the earnings potential of children born into poverty. To assess the causal influence on human capital of one of the most widespread micronutrient deficiencies, supplemental iron pills were made available at a local health center in rural Peru and adolescents were encouraged to take them up via classroom media messages. Results from school administrative records provide novel evidence that reducing iron deficiency results almost immediately in a large and significant improvement in school performance. For anemic students, an average of 10 100mg iron pills over three months improves average test scores by 0.4 standard deviations and increases the likelihood of grade progression by 11%. Supplementation also raises anemic students' aspirations for the future. Both results indicate that cognitive deficits from iron-deficiency anemia contribute to a nutrition-based poverty trap. Our findings also demonstrate that, with low-cost outreach efforts in schools, supplementation programs offered through a public clinic can be both affordable and effective in reducing rates of adolescent IDA.
The growing use of ICTs around the world, particularly cellular phone technology, provides a significant development opportunity. Under certain situations, ICTs can improve rural households’ agricultural production, farm profitability, job opportunities, adoption of healthier practices, and risk management. All these effects have the potential to increase wellbeing and food security in rural areas of developing countries. Several challenges to effectively scaling up the use of ICTs for development remain, however. Taking advantage of the opportunities provided by ICTs depends on increased connectivity of marginalized population groups, the content and usefulness of the information provided through ICTs, and the capacity of households in rural areas to understand and act on the information that they receive. We need innovative ways to bring together the public and private sectors to ensure that the three Cs (connectivity, content, and capacity) are addressed as a whole.
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