The rapid spread of mobile phones in developing countries, coupled with recent advances in our ability to analyze big data through tools such as machine learning and artificial intelligence, has generated considerable excitement about the potential of ICT for development. How does the reality of ICT use for development stack up to this excitement? And, which institutional arrangements best promote the use of ICT for development? Michael Kremer begins to answer these questions by examining the case of mobile-phone enabled agricultural extension for smallholder farmers.
Recent changes in technology have made it possible to disseminate personalized agricultural information to smallholder farmers via their mobile-phones. In this lecture, Kremer explores the rapidly accumulating evidence on the impact of mobile-phone based agricultural extension. There appear to be at least some settings where farmers change their behavior and increase their yields in response to advice delivered via their mobile phones. Preliminary evidence suggests this may be highly-cost effective. However, due to market failures and asymmetric information private markets will typically undersupply this public good. Governments tend to fail as well due to design flaws that make their solutions difficult for farmers to understand. Kremer discusses potential hybrid solutions that incorporate elements of both private and public provision and argues that zero (or negative) pricing for such services is likely optimal. Finally, the lecture ends with a speculative vision of a “Netflix for Agriculture” in which farmers would provide information, knowing that this would allow the system to make better recommendations for them, and this would in turn improve the performance of the system in offering recommendations to other farmers.
This event is a Kapuscinski Lecture (@kapulectures). Kapuscinski Development Lectures is a series organised by the European Commission, UNDP and partner universities. The series is funded by the European Commission.
Michael Kremer is Gates Professor of Developing Societies, Harvard University. He is a Fellow of the American Academy of Arts and Sciences, a recipient of a MacArthur Fellowship and a Presidential Faculty Fellowship, and was named a Young Global Leader by the World Economic Forum. Kremer’s recent research examines education, health, water, and agriculture in developing countries. He has been named as one of Scientific American’s 50 researchers of the year, and has won awards for his work on health economics, agricultural economics, and on Latin America.
Oriana Bandiera (@orianabandiera) is Sir Anthony Atkinson Professor of Economics and Director of STICERD, LSE.
STICERD (@STICERD_LSE) brings together world-class academics to put economics and related disciplines at the forefront of research and policy. Founded in 1978 by the renowned Japanese economist Michio Morishima, with donations from Suntory and Toyota, we are a thriving research community within the LSE.
The Department of Economics (@LSEEcon) is one of the leading economics departments in the world. It is a large department that ensures mainstream areas of economics are strongly represented in research and teaching.
Twitter Hashtag for this event: #KAPTalks
A podcast of this event is available to download from Netflix for Agriculture? Digital Technology for Development.
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