The next frontier in development

When the exodus of Ukrainian refugees began in late February, they were welcomed with open arms in neighboring countries, especially Poland, where by mid-March 2022 more than 1 million refugees had arrived. basic needs: food, housing, clothing and other basic needs. Often the most immediate support service was a SIM card, a phone charger and Internet access to be connected.

Today, Internet access is a basic necessity. The COVID-19 pandemic compounded this need and made the online access requirement too clear. Everyone needs a minimal internet package to connect with loved ones, check and write emails (for example, to apply for a job), read the news, or fill out the forms required for standard administrative procedures.

Broadening the definition of extreme poverty

The concept of “minimum Internet needs” is based on the global definition of poverty and is linked to the World Bank World Development Report 1990, when he created the definition of extreme poverty of $1 per day per person as a minimum level of spending necessary to meet basic human needs. Since then, the world community has measured extreme poverty in all its forms, leading to increasingly sophisticated research on the causes and consequences of poverty, as well as on ways to end it. A recent milestone in this new research on poverty was the award of the Nobel Prize in Economics in 2019 to Esther Duflo, abhijit banerjee, Y Michael Kremer for his experimental approach to analyzing poverty. This approach has led to significant improvements in the design of efficient policies to combat economic deprivation.

A new Internet Poverty Index can now adjust the actual cost of Internet services in each country to create standardized estimates of people living in Internet poverty around the world.

This definition of extreme poverty—initially set at $1/day and since 2011, at $1.90/dayIt comprises two fundamental elements. In the first place, it quantifies the minimum needs to survive (especially food, shelter and clothing). Second, it is based on the concept of purchasing power parities (PPP) so that the costs of these basic needs can be compared across time and space. The current definition is in the 2011 PPPs; In today’s US dollars, it’s about $2.20 (or about 2 euros).

However, people today also need access to a minimum package of Internet services as part of basic human needs. To extend the traditional method of measuring poverty, researchers from World Data Lab have identified and budgeted for a “minimum Internet basket,” which combines measures of quantity, quality, and affordability based on consultation with the Affordable Internet Alliance, ok, Y GSMA.

According to this expanded definition (see image below), a person is considered poor on the Internet if they cannot afford a minimum quantity (1 GB) and quality (10 GB). Mbps download speed) of internet services without spending more than 10 percent of their disposable income on these services. This minimum package of Internet services would allow a person to satisfy basic needs, such as accessing emails, reading news or using government electronic services. The core methodology of Internet poverty was initially introduced in mid-2021 and has undergone further improvements in identifying the number of Internet poor in almost all countries.

This is the definition of poverty on the Internet.Newly launched World Data Lab Internet Poverty Index you can now adjust the actual cost of internet services in each country to estimate what a standard mobile internet package from 1 GB to 10 MB/second would cost in that country. Then calculate how many people in the country could afford that package. If the cost of the standardized package is more than 10 percent of a person’s total spending, the person is considered poor internet. This allows us to create global estimates and share the number of people living in internet poverty globally, with available breakdowns by gender.

As with the extreme poverty threshold of $1.90, the key added value of the approach is not the threshold itself, but its consistent measurement across countries and over time. There may be legitimate discussion about the minimum package, just as there are now suggestions that higher poverty lines be used in lower-middle and upper-middle income countries. For now, however, we use the same package in all countries, which would correspond to approximately $6 per month ($0.19/day; 2011 PPP).

1.4 billion people live in internet poverty

There are two main findings when we put all the data together. First, there are about twice as many people living in Internet poverty as in extreme poverty; this highlights all the work that still needs to be done to close the gap and reduce poverty in general. There are nearly 1.4 billion people (18 percent of the world’s population) living in Internet poverty, compared to 675 million living in extreme poverty. Africa is home to 709 million (50 percent) of the Internet poor and Asia is home to another 457 million (nearly 33 percent). Many Asian countries that have been successful in reducing extreme poverty, such as China, India, Indonesia, and Pakistan, still have large numbers of Internet poor people.

Figure 1. Brazil, Nigeria, Democratic Republic of the Congo, India and China account for a third of global Internet poverty

Number of people in internet poverty on the 2022 map.

Source: World Data Laboratory projections.

Second, although the countries with the highest levels of poverty are often also the places with the highest levels of Internet poverty, there are stark differences between countries with similar income levels. For example, among rich countries, the US has an 85 percent higher cost for the same internet package compared to Germany. However, there is hardly any internet poverty in Economies of the Organization for Economic Co-operation and Development, since almost everyone can afford a basic internet package, even if it is expensive. In contrast, among less prosperous countries, prices drive internet poverty. In South Africa, a basic internet package costs more than twice as much as in Kenya and four times as much as in India. yes south africa if India Internet prices, Internet poverty would be reduced by more than 21 million people. When compared to Kenyan prices, the decrease would still be 17 million.

Figure 2. Ccountries in ssub-saharan africa say ohgo the highest fees of internet poverty

How strongly are countries affected by Internet poverty?  Map

Source: World Data Laboratory.

While Internet poverty remains high in 1.4 billon people, can be more easily addressed than extreme income poverty. Extreme poverty may be reduced once people reach highAhem income, which a gradual and long-term process. internet Poverty, Unlike, can be eradicated much faster if internet prices drop even further. yesSome emerging economies, including India, Kenya, and Colombia, have shown that this is possible.

Note: For the full ranking and additional information on the Internet Poverty Index, see https://internetpoverty.io.

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