The Legal Amazon is the most isolated region in Brazil. Reducing this isolation and improving the economic ties between the Legal Amazon and other parts of the world is key to boosting the region’s economy and creating jobs and income for the local population. Traditionally, investment in logistics infrastructure, and particularly in roads, was the primary initiative for improving the accessibility of isolated areas. However, technological progress and changes in workplace organization (for example, working remotely, outsourcing services such as call centers, etc.) have made investing in phone and high-speed internet services an important part of improving the accessibility of areas such as the Amazon.
Expanding access to phone and high-speed internet services is strategic for the Amazon for two reasons. First, phone and internet services allow for a significant increase in accessibility without the socio-environmental risks associated with investing in traditional logistics in the region.1 Secondly, broadband infrastructure has the potential to increase income and job opportunities for local workers and entrepreneurs. This is especially significant given the region’s weak economy and rising unemployment.2
This document discusses how expanding access to phone and high-speed internet services has the potential to boost the economy in the Legal Amazon. This brief summarizes the available evidence on the impact of information and communication technologies on businesses and workers with an emphasis on the effects observed in both the rural and urban sectors. Next, it discusses how access to this technology in the region, as well as improvements to this access, can boost the economy of the Legal Amazon.
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