Hope for Africa

Today's New York Times has an article on how capitalism and technology are helping to bring changes to the lives of people in Africa.

"But when African nations began to privatize their telephone monopolies in the mid-1990's, and fiercely competitive operators began to sell air time in smaller, cheaper units, cellphone use exploded."

In other words, when telephone companies are operated by businessmen and not governments, the motivation to make money creates an incentive for businesses to expand the network and lower prices.

"Although only about 60 percent of Africans are within reach of a signal, the lowest level of penetration in the world, the technology is for many a social and economic godsend.

One pilot program allows about 100 farmers in South Africa's northeast to learn the prevailing prices for produce in major markets, crucial information in negotiations with middlemen.

Health-care workers in the rural southeast summon ambulances to distant clinics via cellphone.

One woman living on the Congo River, unable even to write her last name, tells customers to call her cellphone if they want to buy the fresh fish she sells."

These are just a few examples of how new technology, made possible by the free market, are serving as a "life improvement multiplier" to improve the lives of poor people. The food distribution infrastructure improves as fishermen and farmers have better channels to sell their products. More reliable communication helps healthcare professionals save lives and improve longevity.

"Hamadoun Touré, development director for the International Telecommunication Union, said the economic blessings of cellphones were magnified in the developing world."