Low-cost computing

There was an outpouring of philanthropy and corporate generosity a few years ago. Leading providers of computer hardware and software came together to design and manufacture a cheap, hardy, and no-frills PC for poor people.

XO Laptop from MITXO Laptop from MIT

In a project titled, "One Laptop Per Child", Nicolas Negroponte of the Massachusetts Institute of Technology introduced the $100 laptop in 2006 called the XO. Computer chip manufacturer AMD also unveiled a cheap Personal Internet Communicator (PIC) that same year.

Classmate PC laptop

And again in 2006, AMD's arch-rival Intel showcased its $250 Eduwise Laptop labeled the Classmate PC, also meant for the poor in the developing world.

Before you express your awe and gratitude at such unselfish generosity or rush to buy one of these gadgets for your pen-pal in Rwanda; know that all three projects have failed. When given to a sample population these low-cost computers were promptly returned because of their minimal functionality.

MIT's laptop constantly required a hand-operated crank to power itself, the PIC did not have most Windows features, and the Eduwise was too expensive for the very basic functions it performed. In fact the poor, for whom these devices were meant, "survive on less than a dollar a day" as we are constantly told....why would such people shell out hundred hard-earned bucks for a barely usable device?

At a conference the hand-cranked MIT laptop was showcased to delegates from the Third World.....each member was given the device free. But at the end of the conference the delegates left these devices behind since they had minimal functionality.

Simputer

If only they had seen the earlier example of the Simputer (Simple Computer) in India....a locally manufactured low-cost computing device launched some years ago. Basically a hand-held device, which sought to give communication services and basic computer functionality to India's rural population. No big company was behind this device but the result was the same.....better communication services at cheaper rates were provided by the cell phone



Western corporations have also realized that poor people would prefer to own a cell phone, because of its ease of use, and the effective communications services.

But what about Internet connectivity?

Again let's turn to rural India. The Simputer sought to provide information on the weather, fertilizer availability, and the best commodity prices in different markets, to farmers. However each of these can be learnt with greater ease by making a simple (and cheap) cellular call. For more detailed information the Internet is needed.....but here a single state-of-the-art PC placed in a local cyber café can provide such information to the entire village. No need for a farmer to diddle with his Simputer for this.


But the manufacturers (Pico Peta Simputers) of the Simputer have not given up. Version two of this device, called Amida, is in the market with models ranging in price from $200 to $400. It can connect to a PC, a cell phone, and a digital camera, while allowing the user to edit Word documents. Wireless connectivity to the Internet is sweetened by the ability to play video games! This device is still focused on the rural market.

Other options

Second-hand PCs can be used for effective low-cost computing. They're cheap, hardy, and are many times more functional than the low-cost devices. The only drawback with second-hand electronic goods is the constant need for servicing and repair.

It is far better to recycle used computer parts to the Third World and let local manufacturers assemble low-cost PCs for the people there. This creates jobs and helps the local economy while also being beneficial to the environment.

Motives

The manufacturers of the low-cost computing devices are big corporations with their eyes set on the poor in the developing world. But these are not eyes of benevolence or charity....their motives are surprisingly material and businesslike:

The manufacturers in the west are banking on the aspirations of the poor in the Third World. Their objective is to advertise these "very cheap" devices and create a captive market.....of the 5 billion poor if only 1% bought these $100 devices that would still give revenue of $5 billion!

As the poor people acquire a taste for computing and surfing the web, they will rely on the brand they currently use and are familiar with to upgrade. This will allow the big corporations to do brand building in new markets.

In most countries the corporations are banking on Third World governments to provide the cash to finance their "benevolent" scheme. These governments can be pressured into doing something for the education of their people....and out of their education budgets be persuaded to shell out cash in order to provide these devices to their poor populace. Or they can be persuaded to take a loan for financing this scheme.....in either case the corporations end up making a financial windfall!