Is the Internet a Priority for Developing Countries?

Written by Anita Campbell
Published February 13, 2004

Recently while surfing through the World Bank's website properties, I stumbled upon an entire section devoted to initiatives to help small and medium enterprises in developing countries use the Internet.

That got me to wondering if small businesses in developing countries really need the Internet before they need other help — help such as decent health care, drinkable water, reliable transportation systems, access to business financing, etc.

Now, don't get me wrong, I am big believer in the power of the Internet for businesses, especially small and medium businesses. And I firmly believe in the Internet's benefits generally.

And it is certainly laudable that the World Bank is supporting businesses, to create a self-sustaining foundation for wealth growth in those countries.

Consider what the World Bank has to say about its Internet initiatives, and you decide:

The World Bank's Small and Medium Enterprise (SME) Department mission is to promote local small business growth in developing nations. As noted on the World Bank Group's website:

    "For an impoverished family in a developing country, establishing a small- or micro-enterprise often represents the first tentative step toward self-sufficiency. The SME sector as a whole can galvanize an entire economy, creating jobs and spurring growth.

    In much of the developing world, the private economy is almost entirely comprised of SMEs. In Ecuador, for example, 99 percent of all private companies have no more than 50 employees. Bottom line? SMEs are frequently the only realistic employment opportunity for millions of poor people throughout the world."

Out of the four key ways that the World Bank helps SMEs, one of them is through helping smaller enterprises obtain access to the Internet and information technology. The World Bank aims to help SMEs leverage technology and the Internet to discover market information, link up with suppliers and sell to global customers.

But back to my question: are most small businesses in developing countries really ready to do business using the Internet? Or do they have more pressing needs? I couldn't help but be reminded of the Gates Foundation, which announced in 1997 that it would donate computers to third world countries in an attempt to bridge the digital divide, only to change its priorities a few years later to focus on health care. Why? Because of Bill Gates' realization that third world countries had more immediate and urgent needs than access to computers and the Internet.


(Adapted from a post that first appeared on the author's weblog at Small Business Trends.)

Anita Campbell is the Editor of the award-winning Small Business Trends (www.smallbiztrends.com) website and host of her own talk radio program, Small Business Trends Radio, on the WSRadio.com Internet network.
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Is the Internet a Priority for Developing Countries?
Published: February 13, 2004
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Section: Sci/Tech
Filed Under: Sci/Tech: Internet
Writer: Anita Campbell
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Comments

#1 — February 13, 2004 @ 13:59PM — Gopi [URL]

Yes, the Internet is important for developing and underdeveloped countries.

It's a source of information, about health, hygiene, anything. Getting the information out is important, and the Internet is just a tool to help.

Any communication helps. Getting information in to the community, getting information out to the rest of the world, so they can take notice, whatever.

#2 — February 20, 2004 @ 15:19PM — Hal Pawluk [URL]

For individuals, the internet is over-rated even in this country.

I'm more interested in fixing the feces-covered floors and broken toilets in schools short on text books here in California before jamming computers and modems into the classrooms, for instance.

The Web is great, but I'm not sure there's anyplace it should be the primary focus. It's cool, but not exactly a major need like food, health, education and safety.

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