The impact of the internet in rural India

A project funded by the Swiss National Science Foundation (SNSF) at the Faculty of Economics and Management is investigating the social impact of the introduction of broadband internet in rural India. The focus is on the consequences in terms of political accountability and interfaith cooperation.

Farmer using smart phone in paddy fields
Image: ©istock.com/Mayur Kakade

The rollout of new telecommunication technologies continues at a rapid pace, extending to rural communities in developing countries that have traditionally had limited access to media. However, there is still little understanding of the broader implications this shift holds for these communities. To better understand the effects of internet penetration, a newly launched research project led by Professor Simon Lüchinger will look at the impact of an ambitious government programme in India that aims to bring high-speed internet to all villages. For the first time, this programme provides the rural poor with access to the full spectrum of online content.

The study will focus on two key obstacles to the economic development of impoverished rural communities: a lack of political accountability and insufficient cooperation between social groups. The aim is to explore whether the spread of the internet helps address these issues or potentially worsens them. Specifically, the research examines how internet access affects political misconduct, the impact of such misconduct on re-election outcomes, and, more broadly, the state of local and regional democracy. Additionally, the study explores the effects of the internet on interreligious cooperation, including practices like neighbourly water sharing between Hindus and Muslims and their patterns of spatial segregation.

On the positive side, the internet could improve voter information and coordination, thereby strengthening political accountability. This, in turn, could reduce political misconduct and increase competitiveness among politicians. Enhanced voter knowledge through internet access might also boost citizens' political participation. On the negative side, however, the internet could distract citizens, diverting their attention away from local politics and weakening political accountability. Additionally, it has the potential to spread divisive content, which could harm inter-communal relations.

The phased rollout of broadband internet in rural India enables researchers to identify the causal effects of internet access by directly comparing similar areas with and without connectivity. This analysis is supported by extensive geographical data on the behaviour of local and state politicians, election outcomes, and details about agricultural land plots and their owners. The structured dataset will allow researchers across various fields to explore a wide range of questions about rural societies in India.

Project title: How the Internet is Reshaping Rural Society: The Impact of Fast Internet Rollout on Political Accountability and Interfaith Cooperation in India

Project leader: Professor Simon Lüchinger, Professor of Economics

Project participants: Dr Johannes Matzat, Postdoc

Project duration: 48 months

Approved funding: around CHF 631,000