Mobile Phones on Economic Development
In the 21st century, technology is of the important factors that influences the social, economic, as well political. As a matter of fact, the current trends and lifestyles show that the utilization of technology in our daily life’s is inevitable. Mobile phones are one of the technological advancement that is believed to influence economic development. Studies show that there is a correlation between data usage in a country and economic development, which is measured in terms of GDP. Mobile phones has revolutionized and infiltrated the modern world. Mobile phone impacts can be measured in many ways, but one of the significant ways to measure the impacts of mobile phones is through economic development and growth. In general perspective mobile phone has brought a lot of economic possibilities, changed the economic trends, but at the same time has negative impacts in the economy and society.
In every economy in the world, information is one of the powerful components. In the past, there was no quick means of communication as compared to today. Today, mobile phones have brought a solution to communication problem. It is worth noting that mobile phones are more accessible than any other Information and Communications systems. In most developing countries, many people are in a position to own a mobile phone (White & Bruton 2011). This means that the number of people who are exchanging information is high. In this case, people can communicate so easily with other on business and economic issues to avoid loss and promote growth. Mobile phone improves economic opportunities, especially in poor nations and promotes micro-economic growth.
The importance of mobile phone in economic development is focused on three main ways, namely, informational, operational and strategic. The mobile phone improves the economy in various ways such as incremental, transformational, and creative. When all these components are achieved then the country realized a significant economic development. The mobile phones lead to improvement in the economy through information (Sullivan, 2007). Those who have the resources to buy a phone and pay for its usage are in a position to give and obtain information when need arises. Such information is significant since it creates opportunities that will lead to change of employment status, increase in effectiveness and efficiency, and other income generating activities.
Mobile phones have proved to be more portable and affordable as compared to other technological tools. The fact that it is portable and has multiple-functionality it has proved to be the most efficient tool in economic engagements and process. It is used to acquire and provide information before business, during business, and after business. The entire process of economic engagement will require the minimal time possible; hence, saving a lot of time and resources. The incremental benefits of mobile phone are evident and well stated. The communication process through mobile phones saves time and increase the speed of business (Chang 2002). These include order requirements; source of raw materials, amendments of contract terms, and negotiations can be communicated and agreed upon with the required time. Therefore, these improvements in economic engagement will lead to economic development.
Research shows that mobile phones are important in economic development in the sense that it reduces cost of accessing information, as well as the uncertainty that comes with decision making. This is because there are no technical or pricing barriers that are involved in order to access information (Heeks and Jagun 2007). This implies that when accessibility of information in the world becomes easier, business people are in a position to make decisions based on information, which leads to improvement of market efficiency. The market transparencies will significantly increase, and the const of transaction will reduce. In such situations, one can clearly state that mobile phones are very important in economic development.
The mobile phones as created a crucial link between developed and developing economies in the globe. In the past, the knowledge between developed nations and developing nations was so wide, but the introduction of mobile phone has reduced the gap. The developing nations have a chance to share information with the developed economies and gain ideas on how to improve. It is evidence that this has lead to improved standard of living and reduction of the gap between the poor and the rich. In order for a nation to fiction well, information is very important. Therefore, mobile phone has led to proper functioning of society; hence, it is in a better position to produce and be productive in the economy.
Mobile phones are important tool in economic development because it has many transformational gains. Mobile phones help to improve of issues that have direct or indirect economic relevance. Mobile phones have replaced the traditional ways of undertaking activities, which are prone to dissatisfaction and errors. The mobile phone is also essential tool in economic development since it has improved the methods of payment. Businessmen should not go all the way to the bank to send or save money this can be done through mobile phones. This has reduced the need of travelling from the rural areas to deposit money in the bank. Perhaps, these changes lead to economic development (White & Bruton 2011).
Mobile phone in itself is a component of economic development. The mobile phone industries are in the rise, and the companies dealing with airtime and messaging services are in the rise. Therefore, mobile phone services are sources of revenue and job creation strategy. People are employed to sell recharge cards and other mobile accessories. It has also enhanced production and creativity in the economy. The introduction of mobile internet has become one of the economic boosters through information accessibility (Heeks and Jagun 2007). .
On the other hand the mobile phones have also negative impacts on the economy. The use of mobile phone in the economy has lead to increase in the number of bills. Studies show that most of the feature that people pay for in a mobile phone is underutilized. Hence, in an economic point of view this is a waste of crucial resources. In most cases, it is only a few elites in society who utilize the services they pay for in a mobile phone. The percentage of elites in society is very few, meaning many people are not in a position to maximize the resources.
The economy has also been affected negatively by the use of mobile phones due to increase in the auto insurance rates. There are many accidents and potential human resources have been lost on accidents, which is caused by mobile phones. Texting and receiving calls has one drives has been rated among the highest causes of accident today. The insurance companies have been forced to increase the premiums, meaning the consumer has to pay more leading to a reduction of expendable income (Chang 2002). These impacts hurt the economy tremendously. The economic development also depends on family life, when the families are in peace they are in a position to be productive and improve the economy. The introduction of mobile phones has infiltrated into the family life. The use of mobile phones has reduced the social life in families; hence, the families have little time to go out leading to less spending. When the families do not spend business are put at a risk of collapsing, which may hinder the economic growth.
Mobile phones also affect the economic development negatively through health problems. Mobile phones are believed to cause brain cancer, infertility, fatigue, as well as headache. This implies that the human resources that were supposed to help in developing the economy will be affected (White & Bruton 2011). In addition, there will be a lot of spending on health care and treatment of diseases. Economically, this will affect the economy negatively. Mobile phones have also increased insecurity in the transfer of money. As a matter of fact, mobile banking has increased money laundering and financing of terror activities. Money laundering is very risk to any economy since it causes inflation, which may impact negatively economic development. Security also is crucial components of economic development, when terror activities receive finances it means there will be more destruction of resources.
The mobile phones have created a new trend in doing business and other economic related activities. The mobile phones have improved the payment and communication trends in the world. Evidence show that this trends keeps on improving to the increase in the number of mobile phone users. In the coming years, mobile phone will be one of the major tools of economic development (Sullivan, 2007). The improvement of mobile phone features are directed towards the current economic demands. In general perspectives, mobile phones have led to many positive changes, and continue to improve the economy in the world.