Archive - Nov 2, 2008

Date

The Cell Phone Paradox

In some parts of Africa, cell phones are becoming essential tools for economic growth, bringing both information and prosperity. In the Democratic Republic of the Congo (DRC), however, cell phone technology is helping fuel a deadly, decade-long civil conflict that has sharply escalated in the past week.

There are plenty of examples of how cell phone technology benefits national economies. A 2007 study suggested that a country's economy grows 1.2 percent for every 10 percent increase in the number of cell phone users. An analysis from Niger reports that cell phones triggered a fall in grain prices and a 20 percent reduction in geographical differences in grain prices after they were introduced in 2001. The researcher concludes that cell phones allow grain traders to collect information about market prices without the time and expense of travel, allowing them to respond to market shifts cheaply and efficiently.

The war in the Congo, however, illuminates the dark side of this technological success. Part of the battle is over resources, including a rare mineral called coltan used to manufacture small electronics. Eighty percent of the world’s coltan is in the DRC, and the world's rabid demand for things like laptops and cell phones has made coltan extremely valuable.

According to OneWorld.net:

Armed militias from Rwanda, Uganda, and Burundi, along with local militias from the DRC, are exploiting most of the reserves and selling the product to multinational corporations that produce cell phones and other electronic devices.”

This battle over resources has led to rape, torture and death in the Congo. In introducing the history of this conflict, a reporter for The Independent admonishes, "No, this is not only a story about them. This — the tale of a short journey into the long Congolese war we in the West have fostered, fuelled and funded — is a story about you.”


Stories We're Watching

Time for Next Stage of Sustainable Business

Reuters - Fri, 03/12/2010 - 13:12
Corporate America needs to track its use of energy and resources as closely as it does its hiring and cash flow if it wants to keep pace with social concern about climate change and other sustainability issues, an investor group argues in a new report.

Rush for Patents May Hinder Transfer of New Climate-related Technologies

Policy Innovations - Fri, 03/12/2010 - 14:35
Mitigating overly rigorous intellectual property rights lies at the core of any meaningful international mechanism for facilitating sustainable technology transfer to developing countries.

Egypt to Secure $430 Million Loan for Wind Farm

Reuters - Fri, 03/12/2010 - 05:39
Egypt is set to secure a $430 million loan from Japan to fund a 220-megawatt wind farm as it tries to boost its renewable energy output.

Western U.S., Canada Go Own Way On Carbon Trading

Reuters - Thu, 03/11/2010 - 16:18
As U.S. prospects for a national climate change bill fade, five U.S. states and Canadian provinces are on track to start a cap-and-trade market for carbon dioxide in 2012, say officials who see fading federal momentum boosting regional efforts.

US Remittances Keep Haiti Afloat

IRIN News - Fri, 03/12/2010 - 07:44
Haiti's economy depends on the estimated $1.5 billion a year in remittances sent home by its million-strong diaspora. Dilip Ratha, lead economist at the World Bank said the figure could be even higher, accounting for perhaps half the national income.

Recent comments

  • "Esther, Wow! Thank you for commenting. One of the best things (among many) about applying these controlled random..."
    by Jill Scantlan
    on A 'Rising Star' in Economics
  • "Thanks for this article. One small correction though. What the post refers to as "my best known work" (the work on..."
    by Esther Duflo
    on A 'Rising Star' in Economics
  • "This is so sad, and at the same time so true. We talk so much about terrrorism on news that we forget about poverty and..."
  • "Microfinance is amazing. Allowing millions to send their children to university in order to "break the chain" and give..."
  • "UPDATE: Following an investigative report on BBC NewsNight, British Parliament has now passed a bill that will..."

Countries

An initiative of Mercy Corps
“You must be the change
you wish to see in the world”
Mahatma Gandhi
Learn more about Mercy Corps >

Efficiency

Over the last five years, more than 89% of Mercy Corps' resources have been allocated directly to programs

Excellence

America's premier charity evaluator gives Mercy Corps four stars in organizational efficiency. Click here to learn more.

High Value

Every dollar you donate to Mercy Corps helps us secure $11.16 in donated food and other critical supplies.

Mercy Corps — Dept. W — 45 SW Ankeny — Portland, OR 97204
All original content Copyright © 2009 Mercy Corps. Quoted and linked content is property of the creator(s). Mercy Corps will not sell, rent or trade your personal information.