Affiliations: ECLAC, United Nations, Casilla 179-D, Santiago,
Chile. E-mail: scecchini@eclac.cl | Department of Economics, London School of Economics
& Political Science, Houghton Street, London WC2A 2AE, UK. E-mail:
c.d.scott@lse.ac.uk
Abstract: Information and Communications Technology (ICT) can reduce poverty
by improving poor people's access to education, health, government and
financial services. ICT can also help small farmers and artisans by connecting
them to markets. It is clear that in rural India -as well as in much of the
developing world- realization of this potential is not guaranteed. This paper
outlines a simple model to explain why a digital divide may exist between rich
and poor. Low-cost access to information infrastructure is a necessary
prerequisite for the successful use of ICT by the poor, but it is not
sufficient. The implementation of ICT projects needs to be performed by
organizations and individuals who have the appropriate incentives to work with
marginalized groups. Furthermore, grassroots intermediaries and the involvement
of the community are identified as the key factors that foster local ownership
and the availability of content and services that respond to the most pressing
needs of the poor.