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Tag Archives: economic development

Economic Development and World Religion

In a northern Thai village, Buddhist monks are no longer taking the traditional morning walk to collect food from their neighbors. Instead, they make a takeout call for a breakfast delivery. Further describing how Temple life is changing, one monk explained that on holy days most people go to the mall. They give money but not their time. In addition, with fewer boys becoming monks, Thai monasteries are looking to poorer nations like Myanmar for recruits.

What is happening?

Some say it is economic development. Called the secularization hypothesis, perhaps, as one researcher suggests, “The more pleasant this life, the harder it is to concentrate on the next…” Others disagree, though, saying it is much more complicated because religions might adapt to new technology or “cost” relatively less when people become more affluent.

A new report from The Pew Forum on Religion and Public Life presents the current status of world religions. As economic development brings more world affluence, might these graphs soon change?

Will Economic Development Impact World Religion?

Economic Development and Religion

Our bottom line: Assessing the impact of economic development on “religiosity” involves the same economic concepts we use to observe any other market. There is a market for religion with a demand and a supply side, extra units of religion have marginal utility and opportunity cost, and we can accumulate “spiritual capital.”

Sources and Resources: Here and here (above quote from S. Bruce on p. 2 of the McBride paper), are the two academic papers that I looked at and a NY Times article on the Buddhist decline in Thailand that started me wondering about the connection between religion and economic growth. The 81 page Pew Report on world religions, here, was fascinating.

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texting is 20 years old

Only 3 years ago in sub-Saharan Africa, more than two-thirds of all roads were unpaved, three-quarters of the population was without electricity, and there were 3 landline phones per 100 people.

Enter the cell phone.

As of 2010, in low and middle income economies, an average of 72 of every 100 people had a mobile phone subscription. In a 2010 article, economists Jenny Aker and Isaac Mbiti present wonderful examples of how cell phones can transform life. ”In Ghana, farmers in Tamale are able to send a text message to learn corn and tomato prices in Accra, over 400 kilometers away. In Niger, day laborers are able to call acquaintances in Benin to find out about job opportunities without making the US$40 trip. In Malawi, those affected by HIV and AIDS can receive text messages daily, reminding them to take their medicines on schedule.” (p. 207)

More generally, the impact of widespread mobile phone use could include:

  • increasing market efficiency
  • improving supply chain oversight
  • creating new jobs
  • reducing risk exposure through more communication
  • delivering necessary services (health, finance, education)

 

Still though, Aker and Mbiti conclude that we cannot be sure of the mobile phone’s impact. By contrast, development economist Jeffrey Sachs suggests that it will be a transformative technology.

Rewinding for a moment to the US economy, I keep thinking of our development sequence. Moving from the first 17th and 18th century roads to 19th century canals and railroads, by 1900, the US had a transportation infrastructure. Add to that the telegraph, telephone and spread of electricity. And now, mobile phones.

Today, instead, leapfrogging older communications technology,  will the mobile phone stimulate sub-Saharan economic development?

A Final Fact: During the week of March 1, 2012, China reached its 1 billionth mobile phone subscription. The Economist says China’s numbering system can generate 100 billion phone numbers.

Sources and Resources: The 2010 Aker/Mbiti article and the 2012 World Bank report provided my information on mobile phones through a wealth of ideas and detail. This Economist Daily Chart comparing mobile phones in China, India and the US is also interesting.

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The Tibetan town of Namche Bazaar has yaks, donkeys and cell phones. Located along the route to a Mt. Everest base camp, the town attracts local traders who provision climbers. With the former carrying products and the latter, market information, the animals and phones are an interesting combination.

Between 2001 and 2012, cell phone subscriptions in India and China have soared. Currently approaching one billion in these 2 BRIC countries, the increase far exceeds the minimal upward trend in developed nations like the U.S.

The Economic Lesson

By “moving” information, cell phones enable people to share prices and negotiate transactions. Cell phones have also become the foundation of mobile banking networks. Instead of cash, text messages are used to make purchases at local stores, to make deposits, and to transfer money. Because cell phones create information and financial infrastructures in 21st century developing economies, they propel economic growth.

Another growth yardstick? Beer consumption.

An Economic Question: In addition to facilitating market transactions, how might cell phones contribute to economic growth in an emerging economy?

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