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​Quenching the Thirst for Innovation: Are subsidies just a drop in the sea?

Mariana Dahan's picture
As the world is rapidly moving towards recasting development financing to meet the pressing needs of the post-2015 development agenda, the question of subsidies’ efficiency comes to light (again).

Should subsidies still be supported by countries, with donor funding, to help maintaining and streamlining service delivery in critical sectors, such as agriculture, energy and telecommunications? Debates have been ongoing for more than a decade.
But a recently published research work points out that well-targeted subsidies in the early stages of mobile technologies diffusion can play a determinant role in their massive adoption, helping to overcome initial confidence barriers, leveraging economies of scale, and, in the longer-term, triggering macroeconomic positive feedback mechanisms.

Evidence shows that information and communications technologies (ICT)  especially mobile telecommunications services  can lead to sustained economic growth and human development. Mobile telecommunications, without any doubt, have triggered many positive changes and impact in the developing world. They are by far the leading area of growth in the ICT sector. Because of this central role, mobile technologies are increasingly used as a transformational tool to foster economic growth, accelerate knowledge transfer, develop local capacities, raise productivity, and alleviate poverty in a variety of sectors.

Mauritania Ramps up Broadband Internet by Stimulating Private Investment

Michel Rogy's picture

Also available in Français

The Mauritanian Minister of Economic Affairs and Development, Mr. Sidi Ould Tah, has just signed the WARCIP agreement (Mauritania Program for Regional Communications Infrastructure in West Africa), a program financed by the World Bank that aims to connect all  regions of the country to high-speed Internet by 2015 (for more details: This signature represents for me a new step toward achievement of this project on which I have been working for two years now.

Can you help me now?

Siddhartha Raja's picture

 The United States Institute of Peace will be webcasting an event live on June 24, 2010 from 9am to 1pm (EDT) entitled " Can You Help Me Now? Mobile Phones and Peacebuilding in Afghanistan."

This event will bring together experts on international peacebuilding and mobile phone technology to focus on the use of mobile phones in one of the most difficult conflict environments today: Afghanistan.