Mobile Phones - the Microcredit of the 21st Century

By Liz Wing on 10/12/2010 @ 04:00 PM

Mobile phones have been called the "microcredit of the 21st Century". This indicates the vast impact that mobile phones have on individuals, particularly women. Around the world, phones are used for more than just conversations. They are used to obtain health information, manage their business finances; they are even used to learn English.

I recently attended an informative conference hosted by the U.S. State Department on the advancement of mobile phones, and the impact they have on global communities. For women in particular, cell phones provide a sense of safety, they disperse pertinent medical care information (including prenatal and infant care) and they make business finance easy and accessible. Cell phones can change their lives.

However, women are 37% less likely than men to have a cell phone in South Asia, 24% less likely in the Middle-East, and 23% less likely in Africa. This is concerning both for women and for the global economy. Women are the key to unlocking the wealth of a country. 93% of women report feeling safer because of their mobile phone. 55% of female business owners report using a mobile phone for their business. Studies show that a 10% increase in mobile phone use results in a 1.5 increase in GCP.

There have been many innovative advancements with the mobile phone. A new phone has been developed that costs only $15(US). Many phones are also solar powered and include a browser function (so that users can manage their business finances and find health information). Currently there are over 5 billion mobile phone users worldwide.

So how does one use a mobile phone in an area with no electricity? Mobile phone companies find it to their advantage to bring electricity to these communities. This advancement brings options that go beyond mobile phone use to communities across the globe.

60% of mobile phones are owned by women and they tend to be more productive because of the devices. 1 out of 10 businesses that grow to the size of 15 employees are women, but data show that women-owned businesses don't often grow beyond 15 employees - are large cause is believed to be their lack of access to finance. The use of mobile phones expands access.

The expansion of mobile phone use results in better health, business growth and a stronger global economy. Much like microcredit loans were for the 20th century, mobile phones are the gateway to a better future in the 21st century.

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