Home
/
RELIGION & LIBERTY ONLINE
/
Cell Phones, Microfinance, and Poverty
Cell Phones, Microfinance, and Poverty
Jan 14, 2026 6:39 AM

A recent report by the United Nations states that out of the world’s seven billion people, six billion have a mobile phone, but only 4.5 billion have a modern toilet. In India, there are almost 900 million cell phone users, but nearly 70 percent of the population doesn’t have access to “proper sanitation.” Jan Eliasson, the UN Deputy Secretary General has called this a “‘silent disaster’ that reflects the extreme poverty and huge inequalities in world today.”

Despite the lack of sanitation, most people are able to afford a mobile phone with a wide range available for [$15] or less and the price of calls reducing from [15c] a minute to [3c] a minute in the last decade.

This report focuses on the negative: the lack of sanitation for those in abject poverty, but it fails to note the extraordinary fact that people living in poverty have access to a device that was, until recently, a luxury item for wealthy Americans. Tim Worstall, a contributor on , addresses this report in a recent article:

It’s possible to be a little cynical about this phones versus thrones number though. Actual flush toilets aren’t in fact the problem. What is the provision of water to flush them and a sewage system to flush them into. Both of which are largely government provided. While mobile phone systems are largely pany provided. Whether you want to call it the lust for profit or the greater efficiency of the private sector, it won’t surprise the more right leaning of us that phones do have a greater market reach than toilets.

Andreas Widmer, president of The Carpenter’s Fund in Switzerland, has spoken a great deal about small businesses, aid, and investing in Africa. In an interview with PovertyCure, he explains causes of poverty:

Being poor has nothing to do with one or two dollars per day. Being poor has something to do with being excluded from networks of productivity and exchange, that means cell phones, internet, banks, financial systems, educational systems, trading systems to be allowed to trade, to have free trade, to have products from here that are produced here, to actually be allowed into other countries. If we’re not allowing that to happen, you can’t have entrepreneurs here grow panies properly

Cell phones are monplace in poverty-stricken countries because of the work of dedicated entrepreneurs. Cell phones have also given many people the means to create wealth for themselves and their families. Michael Joseph, the founder and former CEO of , the largest cell phone service provider in Kenya, gave an interview about foreign aid and the effect of mobile phone technology in Africa. He said:

Foreign aid changes people’s lives temporarily and that’s it, when it’s gone it’s gone. Mobile phones have made a huge impact in places like Kenya.

If you look at Africa in general, in the developing world in general, there is very little direct investment and very few jobs are created from the outside. People, particularly in Kenya, want to work, they need to work, they don’t just sit around and wait for people e and help them. People in Kenya tend to be quite industrious. The mobile phone has been almost perfect for that because it allows people now to create jobs for themselves. They don’t always have e to the city. There are now munications facilities throughout Kenya so it’s helping people create small businesses.

In Kenya 70 percent of our economy is in the informal sector. This means that a lot of the people are just doing small jobs, or are small-scale farmers, they’re just doing work on the side of the road, they sell things, they’re traders. And they’re all doing it because the mobile phone has allowed them to do it. I’ve said many times I think half the GDP growth in es because of the mobile phone revolution, not because of anything else. It has provided these people means munication.

Particularly things like money transfer, which we have been doing now for nearly two years, it has made a huge impact on people’s lives.

People no longer have to travel miles and miles to take money to people to buy goods and services. They can send the money by phone and the goods and services will arrive.

began a mobile banking service call M-PESA (which means “mobile money” in Swahili) a few years ago. This is a microfinancing service that allows anyone with a passport or national ID to transfer, withdraw, or deposit money. Users don’t need any kind of bank account, they simply need their mobile phones and then funds can easily be moved via SMS. This service has been tremendous for small businesses in Africa. It “has helped open opportunities for Kenyans and impacted many lives in many positive ways.M-PESA creates a feeling fort at the back of the mind of every Kenyan.”

Microfinancing has gone a long way to helping alleviate poverty. Muhammad Yunus, founder of the Grameen Bank, won the Nobel Peace Prize in 2006 for his work with microfinancing. Nobelprize.org summarizes Yunus’s work:

Banks in the traditional system have been reluctant to lend money to anyone unable to give some form or other of security. Grameen Bank, on the other hand, works on the assumption that even the poorest of the poor can manage their own financial affairs and development given suitable conditions. The instrument is microcredit: small long-term loans on easy terms.

When Grameen Bank was awarded the Peace Prize in 2006, more than seven million borrowers had been granted such loans. The average amount borrowed was 100 dollars. The repayment percentage was very high. Over 95 per cent of the loans went to women or groups of women. Experience showed that that ensured the best security for the bank and the greatest beneficial effect for the borrowers’ families.

Yunus began his work in Bangladesh in 1983; he was “fueled by the belief that credit is a fundamental human right.” He says that he “saw how people suffered for tiny little money, and they had to go to the moneylender to borrow the money and get started with their life and whatever activities they are involved with.” Now microfinancing occurs, not just in Bangledash through Grameen Bank, but all over the world. Services like M-PESA and the ease of buying and using cell phones has made it even easier for people to utilize microfinancing, start new businesses, and full themselves out of poverty. For a more detailed explanation of microfinancing, check out PovertyCure’s Microfinance page.

It is certainly a terrible thing that there are almost three billion people in the world living without proper sanitation. Nevertheless, that does not mean it’s a bad thing that all but one billion people have a working cell phone. Hard working and creative individuals are bettering the lives of millions. Microfinancing coupled with mobile phone technology is providing countless opportunities for people living in poverty to better themselves and provide for their families.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
The Virtue of Liberalism
Today, Law & Liberty published the text of my lecture for the Philadelphia Society in October: “Why Economic Nationalism Fails.” The topic for the panel was “Conservatism and the Coming Economy.” Since I’m not a determinist and doubt my own powers of prediction, I focused on what political economy conservatives ought to support in the future, despite worrying trends in the present: Conservatives ought to reaffirm the good of economic liberty, both domestically and internationally. Free markets and free trade,...
Trade war hits home: How tariffs disrupt American businesses
Despite the “America-first” claims of trade protectionists and economic nationalists, we continue to see the ill effects of the Trump administration’s recent wave of tariffs—particularly among American businesses, workers, and consumers. Alas, while such controls may serve to temporarily benefit a select number of businesses or industries, they are just as likely to distort and contort any number of other fruitful relationships and creative partnerships across the economic order—at home, abroad, and everywhere in between. In a recent article for...
Wilhelm Röpke on liberalism and Catholic social teaching
This week’s Acton Commentary, adapted from my preface to the newest Acton Institute publication The Humane Economist: A Wilhelm Röpke Reader, illustrates what makes Röpke such an interesting and vital economist: Röpke saw his project in holistic terms involving intersecting and interdependent spheres or orden that to be fully appreciated and understood scientifically must be examined in their economic, social, and moral dimensions. mitments to mainline economic analysis, the importance of social institutions, and the moral and religious framework of...
Samuel Gregg: Charles de Gaulle could have prevented the Brexit debate
The integration of Europe in the postwar era continues to roil politics continent-wide, most notably taking center stage in this week’s UK general election. Yet Acton Institute Director of Research Samuel Gregg writes that Charles de Gaulle could have spared Europe this future. Gregg traces the history of European supranationalism from Immanuel Kant to Jacques Maritain’s Christian Democratic ideas in a new essay posted today at Law & Liberty. De Gaulle, although far from an isolationist, understood the reality of...
The road to London Bridge is paved with self-loathing
The day after Thanksgiving, the world saw a murderous terrorist prevented from maximizing his death toll by desperate people armed with nothing more than personal courage, a narwhal tusk, and a fire extinguisher. As I write at The Stream, unless the West jettisons its paralyzing doubt of itself and its historic faith, that scene threatens to e an “epoch-defining event.” Naively believing that all religions are alike, and that Western capitalism is uniquely exploitative, renders European culture incapable of understanding...
Brian Tierney, rest in peace
The world of medieval history suffered a great loss on November 30 with the death of Professor Brian Tierney. Widely recognized as a leading scholar of medieval Western Christianity and how church law and institutions affected the broader culture of Europe, Tierney wrote widely but also deeply on topics ranging from the origins of papal infallibility to how religion shaped the development of constitutionalism. Born in 1922, the formative experience for Tierney was, like for most of his generation, the...
An encyclical on China and the US?
Sen. Marco Rubio’s recent speech on capitalism and mon good, taking its point of departure in Rerum Novarum, has gotten a good bit of coverage. Yesterday he delivered remarks at the National Defense University and opened with these words: This morning I am honored to speak here at the National Defense University to discuss the defining geopolitical relationship of this century: the one between the United States and China. Unfortunately, I was unable to find a papal encyclical on this...
How reason and faith complement each other
Faith and reason are mutually reinforcing. When faith and reason bined, faith is kept from metastasizing into irrationality and reason is kept from ing overly materialistic. bination of faith and reason is the foundation of Western Civilization. In a new review of Samuel Gregg’s book, Reason, Faith, and the Struggle for Western Civilization, Gene Veith of Patrick Henry College notes that “[t]he scholastic theology of Roman Catholicism, grounded as it is in Aristotelian philosophy, does indeed integrate faith and reason,...
Hugo Chavez and Jack London on why socialism kills
In an emotional story in the January 2020 issue of Reason, Jose Cordiero relays how “socialism killed my father” – through economic scarcity. His article highlights the life-and-death stakes of wealth creation. Cordiero writes that he was working in Silicon Valley when he got a call that his father had experienced kidney failure in Caracas. Yet even traveling to Bolivarian Venezuela became virtually impossible. The economic collapse ushered in by Hugo Chavez’s socialist policies dried up demand: Indeed, the number...
Video: David Hebert on how ice got to India
The 2019 Acton Lecture Series wrapped up last week Thursday with a lecture by David Hebert,assistant professor of economics and director of the Center for Markets, Ethics, and Entrepreneurship at Aquinas College. Hebert told the story of Frederick Tudor, a Boston entrepreneur who in the early 1800s set about finding a way to transport ice to Cuba, believing that given the opportunity, Cubans would pay handsomely for the resource. It wasn’t easy, but in the end he was right, and...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved