1. The Impact of Information and
Communication Technologies on
Social Welfare
Alexis Milo
Miami, Florida. December 5th, 2011

2. Impact of ICTs: Productivity
ICT Capital Contribution to Labor Productivity Growth, 2000 - 2009
(percentage points)
4.5
4.0 ICT capital Non-ICT related inputs
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
Switzerland
France
Korea
Japan
Sweden
Canada
Portugal
USA
Germany
UK
Ireland
Austria
New Zealand
Spain
Denmark
Finland
Netherlands
Belgium
Australia
2
Source: OECD.

3. Impact of ICTs: Education
Fixed Broadband Penetration and Wireless Broadband Penetration and
PISA Scores PISA Scores
(OECD countries) (OECD countries)
PISA score, PISA score,
2009 2009
600 Reading Science 600 Reading Science
Math Lineal (Reading) Math Lineal (Reading)
550 550
500 500
450 450
400 400
350 350
5 15 25 35 45 0 25 50 75 100
Fixed broadband penetration (%, 2010) Wireless broadband penetration (%, 2010)
3
Source: Own estimations based on OECD/PISA data.

4. Impact of ICTs: Health
• India. Through a
Radiocommunications
and email
Videoconference
SMS and Mobile Apps
• Peru. Health • Ghana. Through
centers in remote SMS, the broadband
areas have been “Childcount+” network
able to reduce the program facilitates specialists
number of detection and diagnose and
patients treatment of treat eye
channeled to severe deseases diseases.
emergency such as malaria.
rooms.
• Spain. The app
• Brazil. Personnel
“Dermamóvil” in health centers
allows receive training
dermatologists to and are able to
track treatment of contact
patients with skin specialists
affections. located in other
facilities.
4

5. Impact of ICTs
• Mobile services help rural producers (fishermen, farmers,
Rural etc.) to coordinate with the sales point, contributing to the
efficiency of rural markets.
areas • Examples: Burkina Faso, India, Niger.
Mobile • People without access to banks can get basic financial
services using their mobile phone.
banking • Examples: Philippines, Kenya, South Africa.
Business • Broadband fosters the development of new services.
• Example: United States.
opportunities
Property • The availability of broadband increases the value of real
estate assets.
value • Example: United States.
5

6. Impact of ICTs: Growth
Growth Effects of ICTs, 1980 - 2006
(percentage points increase in GDP per capita growth per
10 percentage points increase in ICTs penetration)
High-income economies 1.4
1.4
Low-and middle-income 1.2
1.2 1.1
economies
1.0
0.8
0.8 0.8
0.7
0.6
0.6
0.4
0.4
0.2
0.0
Fixed Mobile Internet Broadband
6
Source: Qiang (2009) as reported by the World Bank (2009).

7. ICT Penetration in Mexico
Fixed Phone Mobile Phone
(lines per 100 inhabitants) (subscriptions per 100 inhabitants)
25 100
20 80
15 60
10 40
5 20
0 0
2010 p/
1992
2002
2004
2000
2008
1990
1994
1996
1998
2000
2006
2008
1990
1992
1994
1996
1998
2002
2004
2006
2010 p/
Internet
(subscriptions per 100 inhabitants)
12
10
8
6
4
2
0
2000
2005
2001
2002
2003
2004
2006
2007
2008
2010 p/
2009 p/
p/ preliminary data. 7
Source: COFETEL.

8. Mobile Phone Rates* in Mexico
Average Mobile Phone Rates (prepaid)
mexican pesos per minute % change from february to november 2011
$4.0 0%
feb-11 nov-11
-10% -7%
$3.0
-20% -16%
$2.0 -30%
-40%
$1.0
-45%
-50%
-49%
$- -60%
$50 $120 $150 $300 $50 $120 $150 $300
Value of airtime card Value of airtime card
* Includes “frequent numbers” and “bonus minutes”. 8
Source: Own estimations using operators’ data.

9. 0.5
1.0
1.5
2.0
2.5
3.0
0.0
3.5
France
Poland
New Zealand
Belgium
Spain
Source: OECD Broadband Statistics.
Hungary
Switzerland
Luxembourg
Korea
Portugal
United Kingdom
Czech Republic
Austria
Japan
Mexico
Germany
Ireland
Italy
Slovak Republic
United States
Canada
Estonia
Slovenia
(subscriptions per 100 inhabitants)
Netherlands
Chile
Turkey
Norway
Australia
Change in Fixed Broadband Penetration, 2009 - 2011
Iceland
Denmark
OECD Average = 2.02
Israel
Sweden
Finland
9
ICT Penetration

10. Household ICT Availability
Change in Availability by Income Decile: 2006 - 2010
Mobile Phone Internet
(change in percentage points) (change in percentage points)
30 30
20 20
10 10
0 0
1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10
Income decile Income decile
10
Source: Own estimation based on INEGI data.

11. Household ICT Availability
Mobile Phone Availability in Households Internet Availability in Households
(% of households per income decile) (% of households per income decile)
EU ('10)*
90 Mexico ('10)
Spain ('11)
Mexico ('10) Ecuador ('09)
Chile ('06)
80
Brazil ('09)
EU ('08)*
Honduras ('07)
Greece ('10)
Costa Rica ('05)
100 70
Peru ('09)
Bulgaria ('10)
60
Bolivia ('05)
80
Paraguay ('00)
50
Colombia ('10)
Chile ('08)
El Salvador ('09)
Mozambique ('08)
60 40
Nicaragua ('09)
Namibia ('08)
Peru ('09)
40 30
20
20
10
0 0
1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10
Income decile Income decile
* Average of European Union (EU) countries. 11
Source: Own estimation based on ECLAC, Eurostat and INEGI data.

12. The Impact of Information and
Communication Technologies on
Social Welfare
Alexis Milo
Miami, Florida. December 5th, 2011