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17th August
2010
written by kevindonovan

In economic development, the micro-macro paradox refers to the observation that most projects and programs are reported as successes, but macro level indicators do not often reflect similar success. If USAID or some NGO is building a bunch of hospitals, training a bunch of workers and paving a bunch of roads, and these are all reported as successful individual projects, why don’t health indicators rise, productivity increase, and growth accelerate?

One of the most obvious explanations is that evaluation criteria for the micro level is inadequate. That is, those hospitals, workers and roads aren’t actually any better than before.1

A different dynamic seems to be at play in ICT4D, though. In contrast to the foreign aid macro literature, where aid’s effectiveness is brought into serious doubt2 , the ICT4D macro literature is fairly conclusive: more ICTs lead to higher growth. More mobiles, more growth.3 More broadband, more growth.4

However, at the micro level, the effectiveness of ICT4D is seriously questioned. Events like FailFaire have drawn attention to the on-the-ground realities that make successful ICT4D interventions so difficult. Among these issues are technical mishaps and social dynamics (such as trust, existing power structures, and simple lack of interest or buy-in).

So it seems that ICT4D has a micro-macro paradox, but it is the opposite of the foreign aid version: micro, ineffective; macro, effective. Why is this? Some might argue ICT4D is a field with better M&E; after all, the frank discussions that happen on blogs and at events like Failfaire seem to indicate a level of awareness that perhaps leads to good micro practices and therefore good macro results. This could be the case, but I actually highly doubt it.

More likely, I think, is that researchers and practitioners fall prey to a form of technological determinism. If you read the macro level ICT4D studies that derive growth from increased technological diffusion, you could be forgiven for believing that giving each child a laptop is a necessary and sufficient effort for development goals. Reasonable observers, of course, know that simply putting a phone in the pockets of more people will not magically lead to development – it’s about appropriate usage and an enabling environment.

Getting those right, however, is far from guaranteed, and I’m increasingly confident that ICT4D is successful not because of micro or macro initiatives, but mid-level, meso institutions and policies that mediate between the two extremes. But more on that soon.

  1. There are other possibilities suggested, for the record. []
  2. Riddell’s “Does Foreign Aid Really Work?” provides a comprehensive examination of the question. []
  3. Waverman, Meschi & Fuss 2005 (PDF) []
  4. WSIS points to 170 studies suggesting this. []
  • http://ictlogy.net ismael peña-lópez

    I also agree that the main impact of ICTs (in general and 4D in particular) are on meso institutions, especially in the field of Health, Education and Governance.

    In fact, if we believe (and I do) that ICTs are tools that act as catalysts, it should come just natural that their main impact is on institutions with a high multiplier/catalyst effect like health and educational institutions and governments.

    And, arguably, we could include in such institutions big (or “big enough”) firms that can also be a driver of change.

    I’ll wait for your “more on that soon” :)

  • http://blurringborders.com Kevin Donovan

    Interesting – I was actually trying to make a slightly different point: If we want ICTs to positively contribute towards development goals, we shouldn’t focus on the micro-level projects or macro-level indicators. Those are paradoxically in opposition, it seems. Instead, we should focus in between them, at the meso-level institutions which answer the contextualized questions about why success happens at the micro- or macro-level.

    That said, I think you’re right – using ICTs will likely be most effective (with bigger externalities) at mid-level institutions where the ramifications will flow both up and down.

  • http://ictlogy.net ismael peña-lópez

    BTW, if it is the inverse of the Micro-Macro Paradox, maybe you should call it the Macro-Micro Paradox ;)

  • http://twitter.com/prabhasp Prabhas Pokharel

    Okay, so here is the thing.
    The macro studies talk about _access_ to mobile and ICT technologies.
    ICT4D and M4D projects, (the micro-level bad ones, so to speak), are service on top of access, etc.

    You could make your argument stronger by pointing to studies that say more ICT *services* more growth. Which I’m sure is true in some cases like M-PESAs (or is it?) But esp. re: mobile, the papers that show growth (I’m thinking of the classis Jensen here) are about growth as a result of simple introduction of mobile tech. No?

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