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Will the New Apple iPhone Cause Poverty?

There is a na?ve belief that, as the rich get richer, they consume more of the world's resources and - in so doing - leave an ever dwindling amount of stuff over for the poor. In which case, purchasing the new Apple iPhone must lead to poverty.

As those from Naomi Klein, to UK-based Enough, to members of the far left, delight in continually saying, "The USA alone, with only 6% of the world's population, consumes 30% of its resources."

I did mention that they were na?ve.

At worst the iPhone will have no material impact on the lives of refugees from the conflict in Darfur or those suffering under the dictatorship in Zimbabwe. They are not involved in its production and none of the materials required for its manufacture are sourced from hopelessly impoverished nations.

At best the iPhone will result in a globally improving standard of living. Consider the phone in isolation. To come into existence required the work of designers, materials manufacturers, software coders, factories and assembly lines. The iPhone may become as iconic as the iPod; in which case - on its own - it will result in the creation of thousands of new jobs simply to produce it.

Consider now the iPhone's impact on other phone manufacturers. If, as is to be expected from Apple, the phone is a technological leap ahead of its competitors, then they too will have to invest in their own products just to keep up. More designers, materials manufacturers, software coders, factories and assembly lines will be required. This will create even more new jobs.

More importantly, though, is the change to the overall standard of living. The base level of technology will rise. Our base expectations from the products we buy increases. In other words, even though - initially - the iPod will only be affordable by the wealthiest societies in the world, the ultimate effect will be that the new technology will spread everywhere.

Mobile phones were first the exclusive purvey of the very rich. As they became commoditised they spread to all reaches of society. Now, even a war zone like Somalia with no real government, has mobile phone access.

There are places in the world where it is completely uneconomical to offer formal banking services. Dangerous places where cash can easily be stolen. The ready availability of cellular technology has allowed sophisticated banking services to be offered in developing countries at a price that the poor can afford. MTN Banking, in South Africa, replaces a physical bank with a mobile phone, and requires only a phone call to subscribe.

Cellular phones have improved the livelihoods of millions of poor subsistence farmers by allowing them to contact buyers and learn what consumers want. Daniel Mashva, a rural farmer in South Africa, uses his phone to dial a virtual trading platform and sells his produce direct from his small thatched hut on the fringe of the vast Kruger National Park. "I check the prices for the day on my phone and when it's a good price I sell. I can even try to ask for a higher price if I see there are lots of buyers."

It is consumerism which has resulted in the technological revolution that created cheap telecommunications. And it is this rising standard of living that is improving the lives even of the poorest in the world.

So, congratulations Apple, we wish you every success in saving the world. Even if that wasn't your original intention.

Gavin Chait is a director of, South African-based, Whythawk Ratings, (white-hawk) who promote economic development by impartially measuring and rating the effectiveness of the health, welfare and poverty relief interventions of development organisations and charities. Whythawk also conducts research on behalf of donors to investigate regional development needs and assist in ongoing surveillance and vigilance of their interventions thereafter.
http://www.whythawk.com/

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