ABSTRACT
Though most studies of the impact of broadband on growth are on developed countries, there are a few that focus on less developed parts of the world. One of them, a World Bank study, is by Zhen-Wei Qiang et al. (2009: 45) and it comes to the conclusion that ‘the empirical findings here suggest that broadband’s benefits are major and robust for both developed and developing countries, although the significance is higher for the former, which have a longer track record of broadband diffusion’. This chapter seeks to argue, however, that the growth effect may be offset, partly or fully, by income distributional considerations that are inherent in an appropriate technology approach. For then high bandwidth becomes an inappropriate technology, suitable for developed but not developing countries (or at least most parts of them). Time plays an important part in the argument; in particular, time- and labour-saving innovations (such as the microwave oven and fast food) are pervasive in developed countries. But in developing countries time is not a scarce factor and time-saving innovations do not make much sense for the majority of the population. For this and other reasons a reduced bandwidth divide may not be automatically synonymous with increased welfare and vice versa. Elements of an alternative approach are then discussed. These consist for the most part in a number of small but important series of changes. Certainly a more subtle approach is needed than simply seeking to minimize the bandwidth divide as rapidly as possible.
