Since 2007, individual farmers in developing countries are estimated to have made up to $4000 in additional profits and saved twice as much – and it’s all thanks to SMS messaging.
First trialed in India, and now being rolled out in other emerging economies, Reuters Market Light (RML) has had a truly revolutionary impact on the lives of rural workers since being introduced. This noble scheme was designed to level the playing field for remote farmers operating in a globalized marketplace. The service acts as a watchdog-cum-information-hub for agricultural commerce, issuing crucial information to people who may not have internet access.
It’s a far cry from the sophisticated mobile marketing tactics employed in the western world, but RML has demonstrated just how powerful SMS messaging can be in the absence of smartphones and web connectivity. Thus far, millions of farmers all over the world have received vital updates throughout the season, with information tailored to the specific needs of an individual’s profile. Information like regional and global market rates for crops; local weather data and disaster alerts; advice on increasing productivity and reducing risk, and other information that could have an impact on operational costs.
The scheme is intended to safeguard vulnerable workers against exploitative middlemen who seek to undercut them. There’s no shortage of compelling testimony to the efficacy of the work being done by RML. One story tells of a grape farmer who began exporting produce to Russia after learning of the country’s higher prices. It’s estimated that a staggering 1.2 million farmers in India are using the program to improve their chances.
RML offers a moving demonstration of how the humble mobile phone can help some of the world’s poorest people without the bells and whistles of the smartphones which proliferate among the world’s richest. SMS messaging, it seems, is powerful enough to raise living standards and brings some semblance of equality to a globalized economy. Kenya has used SMS messaging payment programs to reduce robbery statistics, with an amazing 25% of the country’s GDP now flowing through the M-Pesa system.
Studies indicate that introducing ten cell phones per one hundred people in the developing world can boost economic growth by 1%. RML, M-Pesa, and others are truly improving the lot of some of the hardest-hit regions on earth, giving citizens cheaper services, better access to crucial economic data, and ultimately creating greater expectations about acceptable living standards.